EXHIBIT 3-B
	2004 MEMORANDUM OF AGREEMENT
	Carmel River Reservoirs: Diversion and Release Schedule Assuming Below Normal Inflow Conditions
	(All Values in Acre-Feet, except as indicated)
		Oct-03	Nov-2003	Dec-2003	Jan-04	Feb-04	Mar-04	Apr-04	May-04	Jun-04	Jul-04	Aug-04	Sep-04	Oct-04	Nov-04	Dec-04		Totals WY 2004									Acre-Feet
	Los Padres Reservoir																					Oct-98	Nov-98	Dec-98	Jan-99	Feb-99	Mar-99	Apr-99	May-99	Jun-99	Jul-99	Aug-99	Sep-99	Oct-99	Nov-99	Dec-99
	Inflow	269	477	3,121	3,487	9,268	5,475	1,956	973	462	235	114	54	142	401	1,460		25,892			1982	211	235	2,400	5,700	9,600	12,017	10,610	6,000	3,000	1,500	750	325	200	750	1,500		34202
	Outflow
	Evaporation	18	18	15	7	28	25	28	37	41	40	31	27	12	7	6		315
	Spillage	0	0	1,505	2,865	8,665	4,835	1,333	321	0	0	0	0	0	0	0		19,525
	Release (Fish Ladder)	491	463	492	615	575	615	595	615	500	455	350	345	314	297	461		6,110
	Release (Outlet)	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0		0
	Release (Notch)	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0		0
	Total Storage
	Beginning of Month	704	464	460	1,569	1,569	1,569	1,569	1,569	1,569	1,491	1,231	964	646	463	559
	End of Month	464	460	1,569	1,569	1,569	1,569	1,569	1,569	1,491	1,231	964	646	463	559	1,552
	Between  Reservoirs																										Assumed Losses for Riparian ET and Private Pumping
	Inflow	27	17	518	1,006	4,372	2,578	489	243	116	59	29	14	36	100	365		9,467									526	58.5
	Outflow																					Oct-95	Nov-95	Dec-94	Jan-95	Feb-95	Mar-95	Apr-95	May-95	Jun-95	Jul-95	Aug-95	Sep-95	Oct-97	Nov-97	Dec-97
	Evapotranspiration	28	20	16	21	26	37	53	74	63	68	58	53	37	21	16		516			ET	37	21	16	21	26	37	53	74	63	68	58	53	37	21	16
	Private Usage	5	-18	2	2	2	2	25	7	8	8	8	6	5	2	2		59			Pumping	5	-18	2	2	2	2	5	7	8	8	8	6	5	2	2
	San Clemente Reservoir
	Inflow	485	478	2,497	4,463	13,584	7,989	2,339	1,098	544	437	313	300	308	374	808		34,528			Galante	4	2	2	1	1	2	4	5	6	6	6	5				45
	Outflow																				Dormody		-20				0	0									20
	Evaporation	7	2	8	3	4	9	5	6	7	7	6	5	3	2	1		67
	Spillage	0	0	1,466	3,907	13,063	7,427	1,799	0	0	0	0	0	0	0	0		27,663
	Diversion (Filter Plant)	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0		0
	Release (Valve)	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0		0
	Release (Six Ports)	417	418	615	0	0	0	0	1,070	477	369	246	235	246	59	307		3,846
	Release ( Fish Ladder)	0	0	307	492	460	492	476	0	0	0	0	0	0	253	438		2,227
	Leakage	61	59	61	61	58	61	59	61	59	61	61	59	61	59	61		726
	Total Storage
	Beginning of Month	71	71	71	110	110	110	110	110	71	71	71	70	71	68	69
	End of Month	71	71	110	110	110	110	110	71	71	71	70	71	68	69	69
	Total Release	478	477	2,450	4,460	13,580	7,980	2,334	1,131	537	430	307	295	307	372	807		34,461
	Mean Daily Release in cfs	7.8	8.0	39.9	73	236	130	39	18	9.0	7.0	5.0	5.0	5.0	6.3	13.1
	Mean Daily Diversion in cfs	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
	Mean Daily Diversion in cfs (Russell Wells)	0.4	0.2	0.4	0.4	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	1.4	1.4	1.4
	Notes:
	1.  The minimum pool requirements at Los Padres and San Clemente Reservoirs are 91 acre-feet @ elevation 980 ft and 71 acre-feet @ elevation 515 ft, respectively.
	2.  Projected inflow for the May through December 2004 period is based on the expectation that unimpaired flows at San Clemente Dam will equal approximately 75% of the median unimpaired flows (WY1902-1996).
	3.  Calculated inflow to San Clemente Reservoir is distributed 80% above Los Padres Dam and 20% between Los Padres and San Clemente Dams.
	4.  Estimated evaporation is based on average monthly reservoir surface area and gross monthly evaporation rates developed by  US Army Corps of Engineers (1981).
	5.  Releases and diversions are consistent with terms of the 2001 Conservation Agreement between the NOAA Fisheries and California-American Water Company, the conditions in SWRCB Order WRO  2002-0002, and the approved operations for the 2004 Interim Drawdown Project at San Clemente Reservoir.
	6.  Current estimated capacity in San Clemente Reservoir is 110 acre-feet @ elevation 525 ft. (Fred Feizollahi, personal communication).