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WSP00062
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Last modified
1/26/2010 12:12:36 PM
Creation date
10/11/2006 9:30:25 PM
Metadata
Fields
Template:
Water Supply Protection
File Number
8276.140
Description
Grand Valley Unit-Colorado River Basin Salinity Control Project
State
CO
Basin
Colorado Mainstem
Water Division
5
Date
11/14/1986
Title
Evaluation and Recommendations Concerning the Authority of the Grand Valley Irrigation Company to Undertake Salinity Control Measures Pursuant to the Colorado River Basin Salinity Control Act
Water Supply Pro - Doc Type
Report/Study
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<br />r- <br />,,~ <br />en <br /> <br />( -: <br /> <br />'.:'") <br />.::;> <br /> <br />Fourth, and finally, we raise a concern with respect to the <br /> <br />assessment on classes of shares, and in particular Class C <br /> <br />shares. Class C shares were issued to each member of the Fruita <br /> <br />Land & Canal Company which owned and operated the Kiefer <br /> <br />Extension Ditch. These shares were issued at the time the Fruita <br /> <br />Land & Canal Company merged into the Company. Class C shares do <br /> <br />not represent the right to use water, but only represent the <br /> <br />right to use the Kiefer Extension Ditch. The Company's Articles <br /> <br />provide that Class C shares are assessed under CL formula which is <br /> <br />based upon the historic relationship between assessments on the <br /> <br />Company's Class A and B shares, and the operation and maintenance <br /> <br />costs of the Kiefer Extension Ditch. <br /> <br />Assuming the Company <br /> <br />contracts with the United States to undertake salinity control <br /> <br />measures and assesses its shareholders for activities in that <br /> <br />regard, then the historic relationship between Class A and B <br /> <br />shares and Class C shares cannot be observed for assessment <br /> <br />purposes. <br /> <br />Accordingly, there would have to be an amendment to <br /> <br />the Articles to change the formula by which Class C shares are <br /> <br />assessed. <br /> <br />Our concerns with assessments on shares to fund salinity <br /> <br />control activities leads us to conclude that the United States <br /> <br />must consider full funding of lateral maintenance and operations <br /> <br />and pay all funds pertaining to salinity control in advance or <br /> <br />currently to defray costs and expenses. Such a policy, which may <br /> <br />entail amendments to the Salinity Control Act, will make salinity <br /> <br />control more palatable to the Board and the shareholders. It <br /> <br />16 <br />
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