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Township Twenty -one (21) S., Range Sixty -two (62) W. From said headgate said Canal extends <br />and runs southeasterly on the north side of said Arkansas River to the west line of Otero County; <br />thence easterly, and northeasterly into and through Otero County, Colorado; and water will be <br />conducted from said Colorado Canal to Lake Meredith Reservoir by means of lateral ditches and <br />a pipe line connecting said Canal with the reservoir; said the Colorado Canal, lateral ditches and <br />pipe line being already constructed and in operation. <br />The point or place at or near which the water is to be taken out of Lake Meredith reservoir is at or <br />near the northwest corner or the Northeast quarter (NE 1/4) of the Northeast quarter (NE 1/4) of <br />Section One (1), in Township Twenty -two (22) S., Range Fifty -seven (57) W., in Otero County, <br />Colorado. From said outlet from the reservoir a canal extends southwesterly through Sections <br />one (1), two (2), Eleven (11), Fourteen (14), Fifteen (15), Twenty -two (22) and Twenty -seven <br />(27), in said Township Twenty -two (22) S., Range Fifty -seven (57) W„ which canal is already <br />located on the ground and its construction nearly completed; and at a point in the Northwest <br />quarter (NW 1/4) of the Southwest quarter (SW 1/4) of said Section Twenty -seven (27) the canal <br />terminates on the north bank or said Arkansas River. This canal is to be used in drawing off water <br />from said reservoir for the purpose of exchanging the same as herein before specified. <br />(Original article) <br />NINTH: The general management of the business of the Company shall be <br />vested in said Board of Directors, who shall have full power and authority to do all things <br />necessary to carry into effect the powers specified in these Articles and in any amendments that <br />may hereafter be made thereto; and, in general, to manage the property and transact the business <br />of this company in such manner and upon such conditions as they, said Board or Directors, may <br />deem expedient and beneficial to the best interests of the Company; and said Board of Directors <br />shall have full power and authority to regulate the use of the water among said stockholders, not <br />only as to time but as well as to the quantity of water which each stockholder may be entitled to, <br />Lake Meredith Res. Co. 3/7/03 <br />Feasibility of Outlet Channel Page 7 <br />