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<br />Annual Report For /966 <br /> <br />Other than the above suit we are not im'ol ved in any other litigation <br />at this time in which we are either a plaintiff or defendant. However your <br />company, along with various other surface users are Intervenors in the <br />FeUhauer well suit in ",'hleh The People of the State of Colorado is <br />Plaintiff and Roger Fellhauer is defendant. In essence this suit is a suit <br />to test the constitutionalitj' of Chapter 318, Session Laws of ~9~~1 which <br />law provides that the State Engineer shall execute and administer the laws <br />of the state relative to the distribution of the surface waters at' tl1e state <br />including the underground waters tributary thereto in accordance with <br />the right of priority or appropriation. Other parts of the law provide Cor <br />enforcement. penalties and sets up a rebuttable presumption that a well <br />is not materially injuring the vested rights of other appropriators if the <br />well in question was in existence prior to the time of the passage of the <br />1965 law and has been used continuously since that date and is not located <br />in the subsurface channel of a continuously flowing stream. <br /> <br />The .supreme Court of Colorado will of course determine whether <br />or not this law is constitutional if Ute decision of the District Court which <br />upherd the law Is appealed. <br /> <br />It is believed the president's report may deal with this matter <br />in some aspects. <br /> <br />Once again we would like to thank the stockholders, members of. <br />the Board of Directors, Superintendent and staff for their cooperation <br />with us in connection with our duties. <br /> <br />He spectrully submitted. <br /> <br />ALLOTT AND ROGERS, Attorneys, <br />By <br /> <br />Robert G. Rogers. <br /> <br />Page 8 <br />