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<br />Annual Report for 1988 <br /> <br />Attorney's Report <br /> <br />To <br /> <br />The Shareholders and Directors <br />The Amity Mutual Irrigation Company <br />Holly, Colorado 81047 <br /> <br />Dear Ladies and Gentlemen: <br /> <br />Last year, I reported that Amity had participated, as an <br />objector, to the separate applications of Holbrook and Di <br />Rezza to store water in Cheraw Lake. The first question the <br />water judge had to determine was which applicant had started <br />work to use the reservoir for this purpose. A trial was held <br />before the water Judge, John R. Tracy, on May 17, 1988. I <br />attended the trial because I wanted to learn what, if anything, <br />either applicant did and whatlhe plans were for the use of the <br />reservoir. <br /> <br />The evidence for Mr. and Mrs. Di Rezza indicated that they <br />first thought of the idea in about June of 1984, and consulted a <br />lawyer and a surveyor to check into the matter; the surveyor <br />had set stakes on the south side of the lake on March 15, 1985 <br />as a means of determining the head, for pumping purposes, <br />between the levels established at the surface of the lake and <br />that of the ditch which applicants proposed to use. Some third <br />party owned the ditch. They filed their applications on <br />December 27, 1985. <br /> <br />Holbrook, on the other hand, had evidence which indic- <br />ated it passed a resolution to purchase the reservoir as early as <br />1929, and that it obtained an engineer's report on its potential <br />use in 1950. 1\ had obtained a deed to the reservoir site in 1965, <br />but had not recorded its deed. In April, 1985, Holbrook authoriz- <br />ed an engineering facility study on filing for the water, and on <br />June 27, 1985 filed the application in the court. <br /> <br />Page 4 <br />