Quarterly report pursuant to Section 13 or 15(d)

WATER AND LAND ASSETS

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WATER AND LAND ASSETS
 3 Months Ended
Nov. 30, 2019
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 three months ended November 30, 2019.

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 November 30, 2019 and August 31, 2019:

   
November 30, 2019
    
August 31, 2019
  
   
Costs
    
Accumulated
Depreciation
and Depletion
    
Costs
    
Accumulated
Depreciation
and Depletion
  
Rangeview Water Supply
  
$
14,827,000
    
$
(15,000
)
  
$
14,823,800
    
$
(14,700
)
Sky Ranch water rights and other costs
    
7,452,100
      
(811,500
)
    
7,371,500
      
(757,400
)
Fairgrounds water and water system
    
2,899,800
      
(1,173,000
)
    
2,899,800
      
(1,151,000
)
Rangeview water system
    
5,644,200
      
(425,900
)
    
5,617,800
      
(372,300
)
Water Supply – Other
    
4,761,200
      
(916,400
)
    
4,758,200
      
(860,100
)
Wild Pointe service rights
    
1,631,800
      
(489,800
)
    
1,631,800
      
(489,800
)
Sky Ranch pipeline
    
5,727,200
      
(459,300
)
    
5,723,700
      
(411,600
)
Lost Creek water supply
    
3,342,600
      
—
      
3,324,000
      
—
  
Construction in progress
    
9,507,000
      
—
      
8,176,600
      
—
  
Totals
    
55,792,900
      
(4,290,900
)
    
54,327,200
      
(4,056,900
)
Net investments in water and water systems
  
$
51,502,000
            
$
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.

Construction in progress primarily consists of the Sky Ranch water reclamation facility. The Company anticipates the facility will be placed in service during the second quarter of 2020.
 
Depletion and Depreciation

The Company recorded depletion charges of $300 and $600 during the three months ended November 30, 2019 and 2018, respectively. The depletion was related entirely to the Rangeview Water Supply.

The Company recorded $303,800 and $238,700 of depreciation expense during the three months ended November 30, 2019 and 2018, respectively. These figures include $84,800 and $88,000 of depreciation expense for other equipment not included in the table above in the three months ended November 30, 2019 and 2018, respectively.