SJW owns a million shares (I think that is the number) of another publicly traded water company California Water Services (which provides water to portions of SJ, and adjacent cities). The Santa Clara Valley Water District is a special district (countywide water district) that is the wholesaler of water to SJW. I'm not sure who actually collected the extraction fee, I'm pretty sure it was the District. This shouldn't be an issue for for SJW. Often if you are an ag operator you are pumping from your own well and then charged a fee by the Water District directly. It is the legality of this pump (or extraction) fee (or tax) without voter approval that is the issue.