DUKE W. DUN BAR ATTORNEY EN ERAL
E-
611r. ftttis of Totorabo
DEPARTMENT OF LAW
OFFICE OF THE ATTORNEY GENERAL DENVER 2
May 18, 1955
Mr. H. G. Keown, Secretary
The Montezuma Valley Irrigation Company Cortez, Colorado
FRANK E. HICKEY
DEPUTY ATTORNEY GENERAL OMER L. GRIFFIN
FIRST ASSISTANT ATTORNEY GENERAL ROBERT F. CARS NORMAN H. COMSTOCK PETER L. DYE FLOYD B. ENGEMAN JOHN M. EVANS SAMUEL R. FREEMAN RONALD J. HARDESTY JOHN P. HOLLOWAY PATRICIA H. MALOY WILBUR M. PRYOR, SIR. DONALD B. ROBERTSON WILBUR ROCCHIO WENDELL P. RAVERS WILLIAM T. BECOR NEIL TASHER HENRY E. ZARLENGO
ASSISTANT ATTO RN EYEI GENERAL
Re: The Montezuma Valley Irrigation Co. and
The Montezuma Valley Pub. Irr. Dist. Dear Mr. Keown:
I have your letter of May 11, enclosing a copy of the proposed agreement referred to therein. A quick examination leads me to the conclusion that your rights would not be jeopardized. However, since no question is involved which concerns this office, may I suggest that a private attorney be consulted.
V ry truly •urs,
E W. DUNBAR Attorney General DWD:L
DUKE W. DUNBAR ATTORNEY GENERAL
#tair
Totorahn
DEPARTMENT OF LAW
OFFICE OF THE ATTORNEY GENERAL DENVER 2
March 22, 1955
Mr. H. G. Keown, Secretary
Montezuma Valley Public Irrigation District
Cortez, Colorado
Dear Mr. Keown:
FRANK A. WACHOB
DEPUTY ATTORNEY GENERAL OMER L. GRIFFIN
FIRST ASSISTANT ATTORNEY GENERAL ROBERT F. CARS NORMAN H. COMSTOCK PETER L. DYE JOHN M. EVANS SAMUEL R. FREEMAN JOHN P. HOLLOWAY JACK E. KENNEDY PATRICIA H. MALOY W. H. MOULTON WILBUR M. PRYOR. JR. DONALD B. ROBERTSON WILBUR ROCCHIO WENDELL P. SAYERS WILLIAM T. SECOR NEIL TASHER HENRY E. ZARLENGO
ASSISTANT ATTORNEYS GENERAL
Re: The Montezuma Valley Public
Irrigation District.
Receipt is acknowledged of your letter concerning the above
District. we have not been able to give the matter the
im-mediate attention it deserves, and will not be able to do so
until after the adjournment of the Legislature.
I would appreciate in the meantime receiving the views of the
corporation's own attorney in this matter.
The office of the Secretary of State advised me that there are
no articles of incorporation of the District on file. As you
know, the statutes contain several acts concerning public
irri-gation districts, such as: The Irriirri-gation District Law of 1905
(149-1 CRS '53); the Irrigation District Law of 1921 (149-2 supra);
general provisions concerning irrigation districts (149-3 supra), and
the Public Irrigation District Law of 1935 (149-4 supra).
It would be helpful to know under which statute your district was
organized.
Upon receipt of the above information, I shall have my staff
in-vestigate the matter further, if we can be of assistance to your
attorney.
OG:ml
liS5 (fccL
Very truly yours,
D KE W. DUNBAR
Attorney General
11 E Mt
WI UTEt 11 1
REHABILITATION PROGRAM
July 27, 1955 Towaoc, Colorado
Mr. Harold Cowan
Montezuma Valley Irrigation Dist. Cortez, Colorado
Enclosed please find a copy of the agreement for the sale of 200 shares of water to the Ute Mountain Tribe as per your request. I trust this will complete your files.
Thank you. Lt1.ci obert B. White, 3r. Rehabilitation Director gBWJr:kp Enclosure
ACIR11110131T FOR TIM SAUL at Writ SHAPES
. 1
4mwm
of
THIS AMMON,
Wade and entered into thiA.2
"
1.di
Lay 4
1955 tir and between The Montesuma Valley Irrigation
Oempas,
of Cortes, Colorado, first party, hereinafter referred to
as the Company, and The Ute Mountain Tribe of Ute Indians by and
through it. duly elected Chairman of the Tribal Council, second
party, hereinafter referred to as the Tribe,
WTTNESSETH:
WHEFEAS„ The Coapany is a mutual ditch oampany organised
and existing under and by virtue of the State of Colorado and has rights
to the use of water as evidenced by Decree of the District Court of
Montezuma County, Colorado, in the amount of 534 second feet of water
from the Dolores aver and in addition thereto own certain storage and
conditional rights and the water evidenced ter said rights has been
distri-buted for irrigation and domestic purposes to the shareholders of The
Montesuma Valley Irrigation company, and
WHEREAS, The hontesuma Valley Public Irrigation District owns and
possesses certain storage water which is distributed through the ditch
grates of the Company and that all the lands now being irrigated by the
shareholders of the Company are included within the confines of the
Monteath's' Valley Public Irrigation District, and
WHEREAS, lands of the Tribe have not heretofore been furnished with
apy water whatsoever from the Dolores River and said Tribe is in need of
water for domestic purposes and a sufficient amount is not available or
obtainable from surface or sub-surface sources and the Tribe has exhausted
possibilities of obtaining an adequate domestic water supply from surf**
water or sub-surface water within its area and has requested the Company
to make available to it water for domestic use, and
WHEaAS, the Company through its duly elected Board of Directors in
willing to furnish water to the Tribe for domestic purposes and has expressed
a willingness to cooperate with the Tribe to the extent that it will make
available to members of the Tribe residing in the town of lawaoc and those
residing in the immediate area around Towaoc, a certain amount of water,
NMI TIODIEFOU, in consideration of the sum of money to be paid the
Company by the Tribe as more specifically hereinafter set forth, and in
the further consideration of the mutual oovemants of the parties to be by
them faithtallylatpt and performed it is agreed as follows
FIRST
Compaq,' agreed to sell and the Tribe agrees to purchase two hundred
(200) shares of the capital stook of the Company for which the Tribe agrees
to pay a sum equal to fifty ($50.00) dollars per share, said sum to be paid
Company by the Tribe and upon payment to the ‘'ompany, the Company agrees to
authorise its proper officers to issue to the Tribe a certificate for said
two hundred (200) shares.
SECOND
It is expressly understood and af:reed between both parties hereto
that the water to be delivered by the Company to the Tribe as hereinafter
set forth shall be by the Tribe used only for domestic purposes, and it is
further understood and agreed that the amount of water which may be delivered
by the Company to the Tribe shall very with the amount of 'water for
-distribution to all of its stockholders, and during certain protions and times
of the year no water whatsoever will be available through the laterals of
the Compeer and the Tribe agrees to provide at its own cost and expense
sufficient storage facilities to Elton, water obtained as shareholders from
the Company's eystem so that the same will be available to meet the domestic
demands of the Tribe during that portion and time of year water is not being
transported through the ditches and laterals of the Company.
THIRD
The water represented by the tvo hundred (200) shares of stock shall
te by the Company deltvered to the Tribe at a measuring device to be placed
at the lower end of the UM,
Mountain Lateral, being a part of the system
owned
br
the Company, and the Tribe agrees to defrey the oost of installing
at the lover end of said Ute hountain Lateral a measuring device to be set
at that point by the Company or under the direct supervision of the Company,
said device shall be a Parshall Neasurimg Flume. It is mutually understood
that Company's obligation to cleaver water shall be oonsidered discharced
and fully fulfilled upon delivery of said inter at said Parabola Eeasuring
Flume and the Tribe assumes the duty and responsibility of conveying said
water beyond the said measuring flume to the point of oonsumption.
yovrm
In the event it should become necessary to enlarge the said Ute
Mountain Lateral and ono certain flumt thereon in order to carry the said
two hundred (200) shares of water, euoh eilargement shall be the
responsi-tility of the Tribe and the Tribe agrees to bear any such expense made
neeliSsery by the enlargement.
-FIFTH
It is mutually understood and agreed by the parties hereto that if at
a future date additional water for domestic purposes is required by the
Tribe, then such additional shares of stodk so required must be purchased
from the Company; provided, however, that if Tribe desires to pruchase
stock from some third party other than the Company such sale and transfer
must be first approved in writing thy the Board of Directors of the Company,
failing such approval said transfer shall not be binding upon the ‘;ompany
and Coopany shall not be required to deliver additional water represented
by stock acquired from third party by the Tribe.
SIrR
Nothing oontainsd in this agreement shall be taken or oonetrued as
conferring upon the Tribe any of the rights of the Company to adjudicated
water owned by the Company or water filed upon and claimed
by
the Cempepro
and the Tribe further agrees that it has no rights to water of the Dolores
aiver other than the amount represented by the two hundred (200) shares
pordhseed from the Company at this time.
It is expressly understood and agreed that the Tribe
be subject
to the same restrictions as to the amount of water to be delivered during
periods of water shortage and to the same restrictions during 'winter months as
other shareholders in the Compam. And it it, understood that the Tribe
shall pay all assesaments in the some amount per share6pd in the same
manner as are paid by all other shareholders, and in the event of late
pigment of assessments by the Tribe it shall be subject to the same
interest penalties as other stockholders of the Company.
Shares of stook involved inp this agreauent are being sold to the Tribe as a matter of convenience to the Tribe, ito members and residents on the Ute Indian Reservation, and the Tribe agrees that ownership oir stook shall not be transferred to other persons, individuals, associations or body politic, nor shall the water evidenced by such shares be distributed other than to the area of the Ute Indian Aeoervation aforementioned for domestic
purposes.
It is mutually understood that the covenants and aereements herein contained shall extend to and be binding upon the successors and assigns of the parties hereto and that this contract shall be subject to the approval for and on behalf of the Tribe of the Indian Area Office.
IN WITNESS WHZ SOF the parties hereto have set their hLnds and seals on six executed copies the day and years first above written.
THE MONTEZUMA V LLEY IRRIGATION COMPANY
ATTEST:
Secretary
APPa0VED:
THE UTE MOUNTAIN
Trim
OF IRE INDIAN.the
Tribal Council
For the Area Offioe
Duplicate pages
not scanned
See originals in folder
Water Resources Archive
7
HATFIELD CHILSON
CHILSON and McCREARY
ATTORNEYS AT LAW
First National Bank Bldg. Phone Loveland 160 Loveland, Colorado
May
17, 1955
Mr. N. E. Carpenter President
Montezuma Valley Irrigation Company Cortez, Colorado
Dear Mr. Carpenter:
ROBERT M. McCREARY
Your company has requested my opinion of the legality of a proposed agreement to be entered into between the Montezuma Valley Irrigation Company and the Ute Mountain Tribe of Ute Indians. A copy of the proposed agreement was furnished to me, and I attach a copy thereof to this opinion for reference.
I am informed that the Montezuma Valley Irrigation Company is a mutual ditch company which has decreed rights for the diversion of 5381 second feet of water from the Dolores River. In addition thereto, I am informed that the company has the right to receive and distribute to its stock-holders certain waters stored in Ground Hog Reservoir, which reservoir is owned by the Montezuma Valley Public Irrigation District, which was organized under the Act of
1935.
The waters to which the Montezuma Valley Irrigation Company is entitled are distributed by the company on a pro rata basis to its stockholders, and these waters are used largely for irrigation purposes.I have been advised that the authorized capital stock of the Montezuma Valley Irrigation Company is 33,000 shares, of which 32,800 are now outstanding, leaving 200 shares which are authorized but unissued.
By the proposed agreement with the Utes, the company would issue and sell to the Ute Tribe these 200 shares of stock, subject to certain conditions and restrictions set forth in the agreement. The Utes intend to use the waters
represented by these 200 shares of stock to supply the domestic needs of the Tribe in the vicinity of Towoac.
Does the company have the right to sell the 200 shares of stock not now issued and outstanding?
The answer is yes. The articles of incorporation of the company authorize the issuance of 33,000 shares. Only 32,800 shares are now issued and outstanding, leaving 200 shares which are authorized to be issued. It is the general rule
HATFIELD CHILSON
CHILSON and McCREARY
ATTORNEYS AT LAW
First National Bank Bldg. Phone Loveland 160 Loveland, Colorado
May 17,
1955
Er. N. E. Carpenter---2
ROBERT M. McCREARY
of law that the directors may issue and sell the amount of
stock authorized to be issued by the articles of incorporation. Can the use of the waters formerly diverted for irriga-tion purposes be changed to a domestic use?
The Colorado Supreme Court has held many times that a water right which has been initiated and used for irrigation purposes may be changed to
a
domestic use (see Ironstone Ditch Company vs. Ashenfelter,57 Colo.
31, and cases therein cited; also Brighton Ditch Company vs. Englewood, 124 Colo. 366,decided in 1951). The right to change the use from irrigation to domestic purposes is subject to the condition that such change shall not injure a junior appropriator on the stream. The test of injury has been held to be whether or not the change in use increases the burden upon the stream. Cache
La Poudre Irrigation Company vs. The Larimer and Weld Reservoir Company, 25 Colo. 144; Fort Lyon Canal Company vs. Chew,
33
Cob. 392.
Under the proposed contract there appears to be no in-creased burden upon the stream. The agreement specifically provides that the Utes will not be entitled to water except when water is available in the ditch. The agreement does not require that the company extend the time of its diversions
from the river, nor does the agreement provide that the company shall increase the amount of its diversions from the river
beyond its decreed priorities.
In other words, under the agreement the Utes will be entitled only to their pro rata share of the water which the company may legally divert and supply through its ditch.
It is therefore my opinion that the proposed use of the waters represented by the 200 shares of stock is valid and legal.
Will the acquisition of this stock by the Utes give them any preferences over the other stockholders or any preferred rights in the water rights of the company?
Article XVI, Section
6,
of the Colorado Constitution states in part as follows: "Those using the water for domestic purposesHATFIELD CHILSON
CHILSON and McCRE.ARY
ATTORNEYS AT LAW
First National Bank Bldg. Phone Loveland 160 Loveland, Colorado
Nay
17, 1955
Mr. N. E. Carpenter----3
ROBERT M. McCREARY
shall have the preference over those claiming for any other purpose." The Colorado Supreme Court has construed this clause of the Constitution and held that this Constitutional provision gives no preferred rights to a domestic user over a user for any other purpose, but does give the domestic user the power of condemnation of uses for other purposes. See Sterling vs. Pawnee Company,
42 Colo. 421;
Nevins vs. Smith,86 Colo. 178.
Consequently, the acquisition of this stock by the Utes to use the water represented thereby for domestic purposes, gives no preference to the Utes over the stockholders using the waters for other purposes.
It would appear, however, that whether the Utes acquire this stock or whether they do not acquire this stock, they still have the power of condemnation to acquire a water right for their domestic uses. This power of condemnation could be exercised as against the water rights of your company or
against any other water rights on the river. It would include the power to acquire a means of delivery of the water from the river to the place of 'use, either by way of new ditch rights of way or by the use of existing ditches. Of course, in the event of condemnation the Utes would be required to pay for the water rights acquired and to pay for the means of transportation of the water from the river to the place of use.
However, it is my opinion that the Utes' power of con-demnation is neither increased nor decreased by virtue of the acquisition of these 200 shares of stock, nor will the ownership of this stock give the Utes any preference over the other stockholders using the water for other purposes.
The agreement provides certain conditions upon which the water is to be furnished to the Utes. These conditions are as follows:
1. Delivery of the water to the Utes at the lower end of the Ute Mountain Lateral. (Agreement Paragraph Third).
,-iATFIELD CHILSON
CHILSON and McCREARY
ATTORNEYS AT LAW
First Notional Bank Bldg. Phone Loveland 160 Loveland, Colorado
Nay 17,
1955
Mr. N. E. Carpenter---4
ROBERT M. McCREARY
flume at the point of delivery. (Agreement Paragraph Third). 3. The Utes assume the responsibility of transporting the water from the measuring flume to the point of consump-tion. (Agreement Paragraph Third).
4.
The Utes will provide at their o,in expense storage facilities to meet their needs during the portion of theyear that water is not being transported through the ditches and laterals of the company. (Agreement Paragraph Second).
5.
Should enlargement of the Ute Mountain Lateral and a flume thereon be necessary to carry the Ute water, the Utes are to bear the expense of the enlargement. (Agreement Paragraph Fourth).6.
The Utes are subject to the same regulations,re-strictions and assessments as other stockholders. (Agree-ment Paragraph Sixth).
All of the above are reasonable conditions and are similar to conditions that have been imposed under certain circumstances by other mutual companies. In my opinion, these conditions are reasonable, legal and valid.
In Paragraphs Fifth and Sixth of the Agreement are certain provisions attempting to restrict the tribe in the acquisition of additional shares of stock, and restricting the sale and conveyance of the stock to other persons.
These restrictions are of doubtful validity. The Colorado Supreme Court has held that a water right is a property right in the nature of real estate. Gutheil Park Investment Company
vs. Town of Montclair, 32 Colo. 420; 2 Kinney on Irrigation and Water Rights, Second Edition, page 1328.
The law does not look with favor upon restrictions on the sale and disposition of property. 26 C.J.S. 145, page 477; Chandler vs. Ziegler,
88 Colo. 1.
Consequently, it is my opinion that the attempts to pro-hibit the Tribe from selling or disposing of its stock or to
HATFIELD CHILSON
CHILSON and McCREARY
ATTORNEYS AT LAW
First National Bonk Bldg. Phone Loveland 160 Loveland, Colorado
May 17,
1955
Mr. N. E. Carpenter---5
ROBERT M. McCREARY
prohibit it from acquiring other stock are of doubtful validity. However, in view of the powers of condemnation which a
domestic user has under the Constitution, it appears to me that it is relatively unimportant as to whether or not these restrictions are valid.
In any event, even though these restrictions are invalid, that fact would not, in my opinion,affect the validity of the other provisions of the agreement.
Very truly yours,
AGREEMENT FOR THE SATR OF WATER SHARES
THIS AGREEMENT, Made and entered into this day of
,
1955
by and between The Montezuma Valley Irrigation Company of Cortez, Colorado, first party, hereinafter referred to as the Company, and The Ute Mountain Tribe of Ute Indians by andthrough its duly elected Chairman of the Tribal Council, second party, hereinafter referred to as the Tribe,
WITNESSETH:
WHEREAS, The Company is a mutual ditch company organized
and existing under and by virtue of the State of Colorado and has rights to the use of water as evidenced by Decree of the District Court of
Montezuma County, Colorado, in the amount of 5381 second feet of water from the Dolores River and in addition thereto own certain storage and conditional rights and the water evidenced by said rights has been distri-buted for irrigation and domestic purposes to the shareholders of The
Montezuma Valley Irrigation Company, and
WHEREAS, The Montezuma Valley Public Irrigation District owns and possesses certain storage water which is distributed through the ditch system of the Company and that all the lands now being irrigated by the shareholders of the Company are included within the confines of the Montezuma Valley Public Irrigation District, and
WHEREAS, lands of the Tribe have not heretofore been furnished with any water whatsoever from the Dolores River and said Tribe is in need of water for domestic purposes and a sufficient amount is not available or
obtainable from surface or sub-surface sources and the Tribe has exhausted possibilities of obtaining an adequate domestic water supply from surface water or sub-surface water within its area and has requested the Company to make available to it water for domestic use, and
WHEREAS, the Company through its duly elected Board of Directors is to furnish water to the Tribe for domestic purposes and has express-ed a willingness to cooperate with the Tribe to the extent that it will
make available to members of the Tribe residing in the town of Towoac and those residing in the immediate area around Towoac, a certain amount of water,
NOW THEREFORE, in consideration of the sum of money to be paid the Company by the Tribe as more specifically hereinafter set forth, and in the further consideration of the mutual covenants of the parties to be by them faithfully kept and performed it is agreed as follows:
FIRST
Company agrees to sell and the Tribe agrees to purchase two hundred (200) shares of the capital stock of the Company for which the Tribe agrees
to pay a sum equal to fifty ($50.00) dollars per share, said sum to be paid Company by the Tribe and upon payment to the Company, the Company agrees to authorize its proper officers to issue to the Tribe a certificate for said two hundred (200) shares.
SECOND
It is expressly understood and agreed between both parties hereto that the water to be delivered by the Company to the Tribe as hereinafter set forth shall be by the Tribe used only for domestic purposes, and it is further understood and agreed that the amount of water which may be delivered
distribution to all of its stockholders, and during certain portions and times of the year no water whatsoever will be available through the
laterals of the Company and the Tribe agrees to provide at its own cost and expense sufficient storage facilities to store water obtained as share-holders from the Company's system so that the same will be available to meet the domestic demands of the Tribe during that portion and time of year water is not being transported through the ditches and laterals of the
Company.
THIRD
The water represented by the two hundred (200) shares of stock shall be by the Company delivered to the Tribe at a measuring device to be placed at the lower end of the Ute Mountain Lateral, being a part of the system owned by the Company, and the Tribe agrees to defray the cost of installing at the lower end of said Ute Mountain Lateral a measuring device to be set at that point by the Company or under the direct supervision of the Company, said device shall be a Parshall Measuring Flume. It is mutually understood
that Company's obligation to deliver water shall be considered discharged
and fully fulfilled upon delivery of said water at said Parshall measuring
Flume and the Tribe assumes the duty and responsibility of conveying said water beyond the said measuring flume to the point of consumption.
FOURTH
In the event it should become necessary to enlarge the said Ute
Mountain Lateral and one certain flume thereon in order to carry the said two hundred (200) shares of water, such enlargement shall be the responsi-bility of the Tribe and the Tribe agrees to bear any such expense made necessary by the enlargement.
FIFTH
It is mutually understood and agreed by the parties hereto that if at a future date additional water for domestic purposes is required by the Tribe, then such additional shares of stock so required must be purchased from the Company; provided, however, that if Tribe desires to purchase stock from some third party other than the Company such sale and transfer must be first approved in writing by the Board of Directors of the Company, failing such approval said transfer shall not be binding upon the Company and Company shall not be required to deliver additional water represented by stock acquired from third party by the Tribe.
SIXTH
Nothing contained in this agreement shall be taken or construed as conferring upon the Tribe any of the rights of the Company to adjudicated water owned by the Company or water filed upon and claimed by the Company, and the Tribe further agrees that it has no rights to water of the Dolores River other than the amount represented by the two hundred (200) shares purchased from the Company at this time.
It is expressly understood and agreed that the Tribe shall be subject to the same restrictions as to the amount of water to be delivered during periods of water shortage and to the same restrictions during winter months as other shareholders in the Company. And it is understood that the Tribe shall pay all assessments in the same amount per share and in the same manner as are paid by all other shareholders, and in the event of late payment of assessments by the Tribe it shall be subject to the same
• •
interest penalties as other stockholders of the Company.
Shares of stock involved in this agreement are being sold to the Tribe as a matter of convenience to the Tribe, its members and residents on the Ute Indian Reservation, and the Tribe agrees that ownership of
stock shall not be transferred to other persons, individuals, associations or body politic, nor shall the water evidenced by such shares be distrib-uted other than to the area of the Ute Indian Reservation aforementioned for domestic purposes.
It is mutually understood that the covenants and agreements herein contained shall extend to and be binding upon the successors and assigns of the parties hereto and that this contract shall be subject to the approval for and on behalf of the Tribe of the Indian Area Office.
IN WITNESS WHEREOF the parties hereto have set their hands and seals on six executed copies the day and years first above written.
THE MONTEZUMA VALLEY IRRIGATION COMPANY
By: ATTEST:
Secretary
APPROVED:
President
THE UTE MOUNTAIN TRIBE OF UTE INDIANS
By:
For the Area Office
-5
Duplicate pages
not
scanned
See originals in folder
Water Resources Archive
Mr. Duke Dunbar Attorney General
state Capitol 73uilding Denver,Colorado
Dear
January ;21,1955
Re: The Montezuma Valley Public Irrigation District
The 1-.iontezurna Valley Public Irrigation District appreciate advice from your of rice concerning the roll, -wing problem.:
The Montezuma Valley Public Irrigation District was organized about 1935 and owns certain storage property consisting principally of Groundhog Reservoir. The water is distributed from the reservoir through the laterals of The Montezuma Valley Irrigation Company and mutual ditch eomrardes. The nontezuma Valley Irrigation Company holds decreed rights on the Dolores River for, among others, 536 second feet of water. Some 33,000 shares of stock are outstanding.
The Ute 'cluntain Tribe of Ute liountain Indian Reservation
deuirea to purchase approximately 300 shares of stock and to obtain water at a headgate near the end of one of the main laterals v4h1ch is within the confines of the District. They to build and maintain ditch from reservation line to point of delivery or approxirately two miles of ditch. The Uto Reservation has never been heretofore served by water from the Dolores River and no part of it was included in the district that was dissolved in 1920 and the assets turned to The Montezuma Valley Public Irrigation District.
The Indiana claim they need this water principally for domestic use. Certain of the directors have objected to allowing the Indins to purchase the water and the By—laws make no reference to the distribution except to the stocithelders, as does the Articles of Incorporation.
.e will appreciate any advice which you may see fit to give us in this regard,
Very truly yours,
THE MONTEZUMA VALLEY PUBLIC IR,IGATION DI3TRICT
By
H.G. Keown Secretary
The Montezuma Valleq Public Irrigation District
Mr. Duke Dunbar Attorney General
State Capitol Building Denver, Colorado
Dear Sir:
CORTEZ, COLORADO
January 21, 1955
Re: The Montezuma Valley Public Irrigation District
The Montezuma Valley Public Irrigation District will appreciate advise from your office concerning the following problem:
The Montezuma Valley Public Irrigation District was organized about 1935 and owns certain storage property consisting prin-cipally of Groundhog Reservoir. The water is distributed from the res-ervoir through the laterals of the Montezuma Valley Irrigation Company and mutual ditch companies. The Montezuma Valley Irrigation Company holds decreed rights on the Dolores River for, among others, 538L- second feet of water. Some 3300 shares of stock are outstanding.
The Ute Mountain Tribe of Ute Mountain Indian Reserva-tion desires to purchase approximately 300 shares of stock and to obtain water at a headgate near the end of one of the main laterals. The Ute Reservation has never been heretofore served by water from the Dolores River and no part of it was included in the district that was dissolved in 1920 and the assets turned to Montezuma Valley Public Irrigation District.
The Indians claim they need this water principally for domestic use. Certain of the directors have objected to allowing the Indians to purchase the water and the By-laws make no reference to the
distribution except to the stockholders, as does the Articles of Incorporation. We will appreciate any advise which you may see fit to
give us in this regard.
Very truly yours,
Herald Keown, Secretary lg
May 11,1955
Mr. Duke Dunbar In Re: The Montezuma Valley Irrigation Co.
Attorney General and
Capitol Building The Montezuma Valley Pubarr.Dist. Denver,Colorado
Dear 1:x.Dunbar
Under date of last J-Inuary 21st. we wrote you requesting advice concerning the legality of water delivery by a mutual ditch company to its stockholders, for domestic use only, for use outside the confines of the irrigation system. H u
Under late of rch 22nd. you replied asking for additional informntion among Which was for the views of our attorney concerning the matter, also for the statute under :thiCh our corporation -7”3 organIzod.
As mentioned in our former letter the proposed sale of Snares is to the Ute Mountain Tribe of Ute Indians residing in and arntmd the vi1la7e of Towaoc, Colorado. Inasmuch as our attorneypan Milenski, represents both parties.he has asked to be excused from entering into the matter in any manner, it therefore leaves us without the services of an attorney. de are advised however, that the Irrigation District Law of 1935 .plies in our case.
Can advise that the Tribe has s-ent a huge sum in drinirg for water,drilling has not proved successful and its people are neRrly desperate for a necessary supply of domestic water. Since the Tribe has become more prosnerous many nice homes have been constructed in the :-,rea and our syJtem is the only available source.
Tribe proposes to build ample storage facilities whereby it will ony on necessary for it to take delivery from us at times when there is an abundant water supply. Under the terms of the 2ro17;osed agrzement v; zrp to ,7111 wYoer for Tribe at a certain point on our syctea and Tribe is to construct ditch iron its point of consumption to the point where we spill the water.
Enclosed is copy of the proposed agre,=!nent for the sale of water shares which ;'lease study. 4e are patticularly interested in finding out whether or not in the event sale of Shares is compi.ctcd -:Te would be jeopardizing our adjudicated rights to w ter on the Dolores River. Under our by-laws 200 shares e uali; two and one/half second feet.
Can advise that this agreement has been approved by attorneys for the Tribe and also by the Tribal Council. Our Board wishes to cooperate in the matterobut does not want to enter into anything that would jeopardize our adjudicated rights.
An opinion from you will be appreciated very much by all parties concerned. Very truly yours
