Quarterly report pursuant to Section 13 or 15(d)

WATER AND LAND ASSETS

v3.20.2
WATER AND LAND ASSETS
 9 Months Ended
May 31, 2020
WATER AND LAND ASSETS [Abstract]  
WATER AND LAND ASSETS
NOTE 3 – WATER AND LAND ASSETS

The Company’s water rights and current water and wastewater service agreements are more fully described in Note 4 – Water and Land Assets in Part II, Item 8 of the 2019 Annual Report. There have been no significant changes to the Company’s water rights or water and wastewater service agreements during the nine months ended May 31, 2020.

Investment in Water and Water Systems

The Company’s Investments in Water and Water Systems consist of the following costs and accumulated depreciation and depletion at May 31, 2020 and August 31, 2019:

   
May 31, 2020
    
August 31, 2019
  
   
Costs
    
Accumulated
Depreciation
and Depletion
    
Costs
    
Accumulated
Depreciation
and Depletion
  
Rangeview Water Supply
  
$
14,827,200
    
$
(15,200
)
  
$
14,823,800
    
$
(14,700
)
Sky Ranch water rights and other costs
    
7,486,200
      
(926,400
)
    
7,371,500
      
(757,400
)
Fairgrounds water and water system
    
2,899,800
      
(1,216,900
)
    
2,899,800
      
(1,151,000
)
Rangeview water system
    
15,905,500
      
(648,500
)
    
5,617,800
      
(372,300
)
Water Supply – Other
    
7,542,500
      
(1,036,600
)
    
4,758,200
      
(860,100
)
Wild Pointe service rights
    
1,631,800
      
(677,300
)
    
1,631,800
      
(489,800
)
Sky Ranch pipeline
    
5,727,300
      
(554,700
)
    
5,723,700
      
(411,600
)
Lost Creek water supply
    
3,372,500
      
—
      
3,324,000
      
—
  
Construction in progress
    
1,076,300
      
—
      
8,176,600
      
—
  
Totals
    
60,469,100
      
(5,075,600
)
    
54,327,200
      
(4,056,900
)
Net investments in water and water systems
  
$
55,393,500
            
$
50,270,300
          

Capitalized terms in this section not defined herein are defined in Note 4 – Water and Land Assets in Part II, Item 8 of the 2019 Annual Report.

The Rangeview water system includes the Sky Ranch water reclamation facility. The Company placed the facility in service during February 2020.

Construction in progress primarily consists of additional water facilities at Sky Ranch. The Company anticipates the additional facilities will be placed in service during the fourth quarter of fiscal 2020.

Depletion and Depreciation

The Company recorded an immaterial amount of depletion charges during the three and nine months ended May 31, 2020 and 2019. The depletion was related entirely to the Rangeview Water Supply.

The Company recorded $471,200 and $322,700 of depreciation expense during the three months ended May 31, 2020 and 2019, respectively. These figures include $85,600 and $97,800 of depreciation expense for other equipment not included in the table above during the three months ended May 31, 2020 and 2019, respectively.

The Company recorded $1,253,200 and $812,700 of depreciation expense during the nine months ended May 31, 2020 and 2019, respectively. These figures include $265,900 and $276,200 of depreciation expense for other equipment not included in the table above during the nine months ended May 31, 2020 and 2019, respectively.