Ok, I finally got called back by the TWDB (Texas Water Development Board) ... that's who this worksheet is for.
I was right. I was doing it correctly and it was giving me a number that was unrealistic. Here's the deal;
This is a government form and (FOR ANY DUMMIES LURKING PAY ATTENTION) they didn't give me the whole formula!
Compare the formula I gave above to what I was just told on the phone;
(5.41Lm x 365 x p) + (.15Nc x 365 x p) / 1,000,000 = UARL
To top it off that section of the worksheet doesn't apply to our system because we don't have enough connections.

On the plus side ... the guy who called me back was apologetic and helpful.
Thanks y'all. I'm back to work.
KC