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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 />