PROJ00223

• Contract/PO #: C153723
• Contractor Name: Orchard Mesa Irrigation District
• Contract Type: Loan
• Water District: 0
• County: Mesa
• Bill Number: HB 95-1155
• Loan Projects - Doc Type: Feasibility Study

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transfer by deed. OMID is confident that it holds title to an easement for the
use, operation and maintenance of the Mutual Mesa Lateral by virtue of adverse
possession, the doctrine of executed license, or both.

1. History of Lateral.

The present-day Mutual Mesa Lateral includes portions of two pre-existing
ditch systems, the Rose Point Power Irrigating Canal and the Lee & Shores
Ditch. In addition, new construction was necessary to connect the portion of
those two structures incorporated into the lateral, and to connect the lateral to
OMID's Canal No. 1.

According to a 1917 U.S. Reclamation Service "Report on the Orchard Mesa
Irrigation District" (the "1917 Report"), the Rose Point system was originally
constructed in 1889. This system apparently served lands in the eastern
portion of the area served by the Mutual Mesa Lateral, as well as other lands
no longer served by the Mutual Mesa Lateral. According to the 1917 Report,
this system was purchased or taken over by the Mutual Mesa Lateral Irrigation
Company, which Colorado Secretary of State records indicate was formed
March 17, 1890.

As noted in Chapter IT above, by agreement dated June 8, 1909, OMID
contracted to purchase the water rights, ditches and rights-of-way of the Mutual
Mesa Irrigation Company. While we have been unable to find documentary
evidence of the final closing of this contract, the fact that OMID has operated
and maintained the Mutual Mesa system since shortly after that time strongly
suggests that the sale was in fact consummated.

The Lee & Shores Ditch, according to the 1917 Report, was constructed in the
early 1900's to serve lands in the western portion of the area currently served
by the Mutual Mesa Lateral. By an April 11, 1907 "Contract" (copy included
in Appendix E), M. M. Shores and Frank Lee conveyed the right to use,
enlarge and maintain the Lee and Shores Ditch for conveyance of water.
While this document is designated a "Contract," it contains language indicating
that Lee and Shores "grant, bargain, sell, convey and confirm unto [OMID]"
the rights recited. Under Colorado law, this language is sufficient to constitute
a conveyance of a right-of-way to use and enlarge the Lee and Shores Ditch.

In addition to the portions of the Mutual Mesa Irrigation Company and Lee
and Shores systems incorporated into the Mutual Mesa Lateral, the present-day
configuration of the ditch indicates that OMID also constructed a new section
of ditch to connect the pre-existing ditches and to connect the whole system to
OMID's Canal No. 1. According to OMID records, the OMID canal system
was completed and constructed in 1910's and 1920's, and was fully operational
in its present-day form no later than 1926. There is no indication in the

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