Quarterly report pursuant to Section 13 or 15(d)

WATER AND LAND ASSETS

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WATER AND LAND ASSETS
 6 Months Ended
Feb. 29, 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 six months ended February 29, 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 February 29, 2020 and August 31, 2019:

   
February 29, 2020
    
August 31, 2019
  
   
Costs
    
Accumulated
Depreciation
and Depletion
    
Costs
    
Accumulated
Depreciation
and Depletion
  
Rangeview Water Supply
  
$
14,827,200
    
$
(15,100
)
  
$
14,823,800
    
$
(14,700
)
Sky Ranch water rights and other costs
    
7,477,900
      
(865,500
)
    
7,371,500
      
(757,400
)
Fairgrounds water and water system
    
2,899,800
      
(1,195,000
)
    
2,899,800
      
(1,151,000
)
Rangeview water system
    
15,895,300
      
(509,000
)
    
5,617,800
      
(372,300
)
Water Supply – Other
    
7,423,400
      
(975,700
)
    
4,758,200
      
(860,100
)
Wild Pointe service rights
    
1,631,800
      
(620,200
)
    
1,631,800
      
(489,800
)
Sky Ranch pipeline
    
5,727,300
      
(507,100
)
    
5,723,700
      
(411,600
)
Lost Creek water supply
    
3,356,800
      
—
      
3,324,000
      
—
  
Construction in progress
    
768,300
      
—
      
8,176,600
      
—
  
Totals
    
60,007,800
      
(4,687,600
)
    
54,327,200
      
(4,056,900
)
Net investments in water and water systems
  
$
55,320,200
            
$
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 depletion charges of $0 and $200 during the three months ended February 29, 2020 and February 28, 2019, respectively, and $300 and $800 during the six months ended February 29, 2020 and February 28, 2019, respectively . The depletion was related entirely to the Rangeview Water Supply.

The Company recorded $478,300 and $251,300 of depreciation expense during the three months ended February 29, 2020 and February 28, 2019, respectively. These figures include $95,600 and $90,400 of depreciation expense for other equipment not included in the table above in the three months ended February 29, 2020 and February 28, 2019, respectively.

The Company recorded $782,100 and $490,000 of depreciation expense during the six months ended February 29, 2020 and February 28, 2019, respectively. These figures include $180,400 and $178,400 of depreciation expense for other equipment not included in the table above in the six months ended February 29, 2020 and February 28, 2019, respectively.