Quarterly report pursuant to Section 13 or 15(d)

WATER AND LAND ASSETS

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WATER AND LAND ASSETS
 9 Months Ended
May 31, 2018
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 2017 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, 2018.

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, 2018 and August 31, 2017:
 
   
May 31, 2018
    
August 31, 2017
  
   
Costs
    
Accumulated
Depreciation
and Depletion
    
Costs
    
Accumulated
Depreciation and
Depletion
  
Rangeview water supply
  
$
14,805,500
    
$
(12,100
)
  
$
14,529,600
    
$
(10,600
)
Sky Ranch water rights and other costs
    
7,342,400
      
(523,100
)
    
6,725,000
      
(436,300
)
Fairgrounds water and water system
    
2,899,900
      
(1,040,900
)
    
2,899,900
      
(974,800
)
Rangeview water system
    
1,652,400
      
(247,700
)
    
1,639,000
      
(207,000
)
WISE partnership
    
3,114,100
      
-
      
3,114,100
      
-
  
Water supply – other
    
1,177,700
      
(486,700
)
    
944,800
      
(401,300
)
Wild Pointe service rights
    
1,631,800
      
(251,400
)
    
1,631,700
      
(213,000
)
Sky Ranch pipeline
    
4,697,800
      
(156,600
)
    
4,700,000
      
(39,200
)
Construction in progress
    
1,006,400
      
-
      
673,800
      
-
  
Totals
    
38,328,000
      
(2,718,500
)
    
36,857,900
      
(2,282,200
)
Net investments in water and water systems
  
$
35,609,500
            
$
34,575,700
          

Capitalized terms in this section not defined herein are defined in Note 4 – Water and Land Assets in Part II, Item 8 of the 2017 Annual Report.

Depletion and Depreciation

The Company recorded depletion charges of $4,300 and $100 during the three months ended May 31, 2018 and 2017, respectively. The Company recorded depletion charges of $5,300 and $600 during the nine months ended May 31, 2018 and 2017, respectively. During the three and nine months ended May 31, 2018, the depletion was related entirely to the “Lowry Water Supply.” The Lowry Water Supply is defined as the “Rangeview Water Supply” and described in detail in Note 4 – Water and Land Assets in Part II, Item 8 of the 2017 Annual Report.

The Company recorded $211,000 and $148,400 of depreciation expense during the three months ended May 31, 2018 and 2017, respectively. The Company recorded $554,700 and $406,000 of depreciation expense during the nine months ended May 31, 2018 and 2017, respectively. These figures include depreciation for other equipment not included in the table above.