APPCOR10457 - Laserfiche WebLink

Home Browse Search

Mr. Dan Mathews Page 2 There are a total of 6,720 shares outstanding of Class I and Class II stock in the Deer Trail Ditch Company. Terror Creek Company owns 960 of said shares or 14.28571 percent. Percentage ownership is important in the distrib- ution of additional water rights owned by the ditch company. These additional rights are adjudicated by water decree numher 29, dated June 30, 1893, from the Hubbard Creek Drainage of the North Fork of the Gunnison River Drainage Basin and allow Terror Creek 14.28571 percent of an additional 1.8 second feet. 14.28571% of 1.8 second feet = 125 gallons per minute The Deer Trail Ditch flows and is maintained the entire year as certain of the stockholders obtain domestic and stock water from the ditch. The ditch company is, of course, owned by the shareholders and is administered by a Board of Directors. At the last Board of Directors meeting on March 29, 1983, I had the privilege, as a representative of Terror Creek Company, to be elected Treasurer of the Deer Trail Ditch Company. It is estimated that water usage for dust control during screening and loading operations will require no more than 20 gallons per minute or approx- imately a maximum of 19,200 gallons per day. Water truck usage can be expected to require a maximum of approximately 20,000 gallons per day for a total maximum usage of 39,200 gallons per day. The figures given herein for water usage are maximums with actual usage expected to be substantially less; however, it is evident that the two water right decrees mentioned previously, totaling 186 gallons per minute or more than 267,000 gallons per day, will be more than sufficient to handle the needs of the Terror Creek Company. On another subject, recent conversations between David Sturges and Fred Banta have brought up the possibility of immediate acquisition of a Reclamation Bond by Terror Creek. I understand that such bond acquisition would be looked upon favorably by the Division in light of the questions involved regarding applicability of Permitting requirements and of the normal delays in the Permit process. In an effort at cooperation with the Division, Terror Creek Company is willing to pursue acquisition of a Reclamation 9ond in the amount of $37,195.00 (this amount is as percalculations supplied to the Division in my letter and data dated March 31, 1983). The acquisition of a bond is with the stipulation that if subsequent developments and/or policy changes make such bonding unnecessary, Terror Creek will cause cancellation of any such bond by notice of cancellation to the bonding company. I have one last item to bring to the attention of the Division. The address of the Terror Creek Company is Post Office Box 117, Paonia, Colorado 81428. I realize that until recently correspondece was to have been directed to our California office or to ACZ, Inc, Steamboat Sorings, but with start of