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'I. I I , The Amity Mutual Irrigation Company 1::"1'; President's Report To The Stockholders Of The Amity Mutual Irrigation Company Ladies & Gentlemen, Eastern Colorado is a country where you are promised the most and receive little, or everything looks bad and Mother Nature turns things out great. It seems as though the old story about Amity Canal held true again this year. We started the year with very low snow pack and approximately one and a half runs of water stored in John Martin Reservoir. However, a late heavy snow storm in the Arkansas River watershed and eastern foothills created good river and stream flows. This enabled us to run on our priorities through much of the summer. Later when no water was available from the river, we stilll1ad a little water in storage which ran into September 1990. It appeared we wouldn't have any more water to finish the season. Once again, till1ely rains over the valley produced river flows, which completed our water year. The rehabilitation program on the main canal is continu- ing. The area targeted this year was the Sandcreek Division and west of Highway 50 south of the feedlot. The Fort Lyon Canal Company is in the process of rebuilding their main dam and sluice ways on the river. This is a large project which is costing approximately $300,000. over a two-year period. The Amity is obliged to pay for 20% of the cost of this work, pursuant to the 1944 and other mutual agreements. This additional cost to the Amity has prevented the building of any structures on our system this year. The Board has continued to try to reduce the 35% storage charge on water stored in John Martin. Everyone is welcome for dinner at the 1.0.0.F. Hall. I wish to thank all the Stockholders, members of the Board, office personnel and crew for their support and cooperation. Let us pray the war in the Gulf will end soon and our troops return safe. I wish you all a happy and prosperous year. Respectfully, Paul Frank, President Page 3