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nor for approval. Governor Romer approved a loan of $1,000,000 for OMID to rehabilitate MML on May 4, 1995, under House Bill 95-1155 about 15 months before feasipility study completion. Comment: CWCB allowing OMID to preparing this study subsequent to loan approval suggests aiding and abetting. October 3, 1996 OMID board passed a resolution to form a water activity enter- prise entitled Mutual Mesa Lateral Enterprise (MMlE). The resolution states the purpose of MMLE is to contract with lenders for funds to complete MML; to con- tract for goods, services and materials, and labor required to complete the MML project; to own the new structures and facilities installed and constructed as a part of the MML project during the life of the loan (30 years); and to perform maintenance and repairs on that portion of MML piped or improved (about one third) by the MML project. This October 3 resolution gives MMLE the power to issue bonds. notes or other obliQations payable from revenues derived for providino services, and to set rates. fees and charoes for these services. MMLE shall not have the power to levy any tax, or to direct OMID to exercise its taxino powers. This resolution states the purpose of forming MMLE is to benefit landowners within OMID's service area by reducing seepage and potential future liabilities, and because CWCB would not loan OMID funds for this project. OMID attorneys Flint Ogle and Bill Frey were present at this October 3rd OMID board meeting. October 8, 1996, Jan lilian, eWCB Contract Administrator faxed OMID attorney Flint Ogle a draft copy of the loan contract for his review. Jan noted in this fax that Linda Bassi is the CWCB attorney handling this contract. October 11, 1996, Joe Harrison, Contract Specialist, NRCS advised Charles l. Campbell by letter that the acting Deputy Chief for NRCS programs was Larry Clark, PO Box 2890, Washington DC 20013. Although OMID had assigned it's contract rights to MMLE by resolution on Octo- ber 3, Board member Norman Friend moved at its October 16, regular meeting to award a contract to Mendez Inc. to place the third of MML across Chepita Golf Course in closed pipe for the bid price of $770,218.84. October 24, 1996 Jeff Burwell, Resource Conservationist, NRCS wrote Flint Ogle a letter responding to a request by Ogle for OMID's eligibility and technical feasibility to improve MMl. This letter states: . ASCS determined in 1992 that MML was eligible for CRSCP financial as- sistance. 7 ~