The 1979 irrigation season was one of the best in the writer's memory. Except

(1)

-+--"'1--t -

I

^~UN.

THE NORTH POUORE IRRIGATION COMPANY

1979

(2)

DIRECTORS

DIRECTORS

Harlan Seaworth ... Wellington, Colorado Duane Aranci ... Fort Collins, Colorado Philip Schnorr ... Fort Collins, Colorado Albert Ackerman ... Wellington, Colorado Manuel Pineda ... Fort Collins, Colorado

OFFICERS

Harlan Seaworth ... President Duane Aranci ... Vice President Ben Dumler ... Secretary-Manager

ORDER OF BUSINESS

According to the By-Laws

The order of business of the stockholders meeting shall be as follows:

1. Meeting called to order by the chairman at 10:00 A.M.

2. Appointments of three stockholders of the company as a credentials committee

3. Registration of proxies with credentials committee 4. Report of credentials committee

5. Annual report

6. Nomination of directors

7. Opening of polls for election of directors 8. Old business

9. New business

(A.) Vote on assessment for the year

(3)

PRESIDENT'S REPORT The irrigation season

The 1979 irrigation season was one of the best in the writer's memory. Except

for a few sugar beets, there was no need to irrigate for seed germination. It was about June 15 before we had much call for 1rrigation water. From the last week in June to the

first week in August the demand for water was very strong. In fact, i t began to look as if we were going to run short.

On August 8 i t started to rain and i t continued every few days for the rest of the month. The demand for water was light for the rest of the season which ended September 29.

It was reported to me by the Water Commissioner that during this 1979 runoff season on the Poudre River, 151,000 acre feet of water went over our Fossil Creek diversion dam and on to the Platte River. This should point out the fact that we need to hav.e our storage reservoirs improved in order to store our full decrees. I t also reminds us there

should be additional storage built on the Poudre.

No. 3 Reservoir improved

No. 3 Reservoir rehabilitation was

completed and water was stored in the 1979

season. The total cost for this project was

approximately $280,000.00. The dam and

spillway have been inspected and approved by

the State Engineer.

(4)

PRESIDENT'S REPORT

Boxelder Flood Control Project approaches completion

All easements and rights-of-way have been acquired for Dam B 2. We anticipate the construction should begin sometime in 1980. It is estimated i t will take 2 years to build it. All other

str~ctures

on the project are completed. North Poudre

~s

one of the sponsors for this important project.

Platte River Power Authority and North Poudre We have put in many hours this year planning and negotiating with P.R.P.A. An agreement was signed with them in November which grants to P.R.P.A. the right to use the Fossil Creek inlet ditch and to borrow water from Fossil Creek Reservoir at times when i t will not affect North Poudre's operation or North Poudre's water supply. North Poudre's compensation for this agreement which generally covers 45 years is $250,000.00, of which

$100,000.00 has been paid and $150,000.00 will be paid by December 1, 1980. A copy of this agreement may be inspected and read by any North Poudre stockholder at the company office in Wellington.

Priorities for 1980 reservoir rehabilitation To continue our rehabilitation

program as fast as we believe the stockholders can afford it, the Board recommends that in 1980:

1. North Poudre purchase right- of-way for an additional spillway for Fossil Creek Reservoir.

2. That North Poudre extend the

outlet tube in No. 5 Reservoir.

(5)

3. That North Poudre develop a rock quarry for riprap in the vicinity of the North Poudre tunnel north of Livermore.

We do not have any precise cost estimates at this time. We believe that the

$100,000.00 from assessments for rehabilita- tion, plus the $150,000.00 to come from P.R.P.A., should cover a fair portion of these projects . .

I hope each stockholder will attend the annual meeting. We will attempt to

answer any questions you may have and desire your suggestions.

Respectfully submitted,

Harlan Seaworth, President

(6)

NOTES

(7)

RECOMMENDED BUDGET FOR 1980 items per share

$ 7.00 29.50 2.00 3.00 3.50 10.00

$55.00

for water assessment

for operation and

m~intenance

and weed control

for loan retirement for new equipment

for right-of-way acquisition for reservoir rehabilitation

$35.00 per share due and payable April l, 1980, interest at

^1~%

per month charged after May l, 1980.

$20.00 per share due and payable October l, 1980, interest at

1~%

per month charged after November l, 1980.

Total amount owing must be paid prior to water delivery.

Total assessments of $55.00 per share due

April l, 1980, on two shares or less.

(8)

SOURCE OF WATER

SOURCE OF WATER

Storage to January 1,78 Storage to April 1,78 Storage After April 1,78 Total

Direct flow Horse tooth Total

DISTRIBUTION

North Poudre Stockholders Fossil Creek Stockholders Carryover October 1,79 Loss in storage and distribution

Total

DIVIDENDS

May 9, 1979 June 6, 1979 July 6, 1979 August 8, 1979

ACRE FEET

4.0 1.0 1.5

• 2

6.70 ACRE FEET 20,613

5,427 10,182 36,222

29,010 24,000 89,232

42,105 3,450 26,440 17,237 89,232

PERCENTAGE 23.1

6.08 11.41 40.59

32.51 26.9 100.00

47.18

3.87

29.63

19.32

100.00

(9)

MANAGER'S REPORT

MANAGER'S REPORT

Looking back, 1979 was a busy and unusual year. Recuperating from the November 1978 auto accident I had was bearable, because I took into consideration what could have happened.

Maintenance activities for 1979 included the following.

Tree Cutting. Some were taken down at the junction of the #15 reservoir supply ditch and the Waverly Main.

A great number were removed from inside Hinkley Reserv0ir on the south west portion close to the outlet.

Some were removed from inside #9 Reservoir next to the outlet.

In Sec.33-T7-R68, trees adjacent to the Fossil Creek Reservoir Feeder Canal were re- moved. This is the section north of the Harmony-Timnath road.

Concrete Structures and Repairs

Repairs inaluded a concrete floor in the canal at #15 outlet; structure repair on the upper #10 lateral; and a portion of the #1 Tunnel Floor on the Munroe Canal. Various minor concrete repairs were also made.

A new headgate was installed in the Main for the Softwater Lateral and filler ditch to

#3 Reservoir; one on the Cowan Lateral for the

Dalke pipeline; and a combination check and

headgate on the Cowan for the Game & Fish. A

new section to the structure on #3 lateral at

the reservoir #4 inlet was also made. One of

the drop structures on the Buckeye Main was

removed, and two drop checks were installed.

(10)

MANAGER'S REPORT

CANALS. Sloping and graveling canal banks was done on a good portion of the Main Canal, and on the lower portion of the Cowan. Raising the bank, sloping and graveling on the Fossil Feeder Canal is also being done at this time, the project stopped however because of snow.

The Cheyenne Lateral was changed on the lower end through the Art Pirnie property, to get away from narrow high ditch banks. A rock slide between the Livermore #1 and #2 tunnels was also removed.

At the Munroe Canal Diversion, a new chain link fence was installed around the gate house and around the #1 tunnel entrance. The fence was also installed around the mouth of #1 tunnel and the inlet to the Poudre River

Syphon. .

NEW EQUIPMENT: New equipment consisted of a 1980 I.H.C. truck in January, and a Case Excavator in October.

On January 10, 1980, The Four States Irriga-

tion Council honored President Harlan Seaworth

with the Head Gate Award. Congratulations.

(11)

ANNUAL PRECIPITATION IN INCHES

YEAR WELLINGTON CACTUS HILL BUCKEYE LIVERMORE

1936 7.93

1937 11.63 10.63

1938 16.38 12.10

1939 7.20 6.13 6.21

1940 13.00 11.93 11.38

1941 19.77 16.10 18.58

1942 20.45 14.09 16.70

1943 10.73 7.24 incomplete

1944 11.49 8.88 8.21

1945 16.97 13.93 15.07

1946 16.29 8.94 12.98

1947 17.18 13.80 14.46

1948 8.61 7.06 7.81

1949 15.85 13.23 14.78

1950 13.89 8.08 9.39

1951 21.59 15.83 15.02

1952 11.87 14.01 8.82

1953 12.10 7.79 13.11

1954 8.30 7.10 7.90

1955 12.84 13.48 10.20

1956 15.84 9.44 13.41

1957 19.48 12.90 16.67

1958 17.99 15.70 14.21

1959 14.58 12.61 12.61

1960 8.84 9.61 7.67

1961 24.95 19.38 18.51

1962 13.90 9.76 13.18

1963 12.10 9.70 11.84

1964 5.64 4.51 5.21

1965 16.50 11.55 15.46

1966 8.21 4.74 8.10

1967 22.52 18.28

1968 10.26 9.18 8.49 4.80

1969 15.39 15.80 14.83 15.82

1970 11.48 14.22 9.61 13.71

1971 13.27 13.04 10.57 12.45

1972 13.5 15.02 10.87 11.22

1973 10.90 15.11 11.10 14.64

1974 8.84 10.65 9.56

1975 11.13 11.90 7.48

1976 10.39 7.00 10.77

1977 10.35 9.72 13.88

1978 10.25 12.87 11.70 15.03

1979 19.59 20.78 16.27 21.50

(12)

5 Yr. Av. 5 Yr. Av.

Assmt. Ac. Ft. Cost Per Per Ac .Ft.

Year per shore per shore Ac. Ft. Cost Interest

1909 s 5.00 22,029.05

1910 5.00 26,533.46

1911 4.00 21,351.13

1912 5.00 3.09 1.61 21,137.50

1913 6.00 2.87 2.09 26,683.07

1914 7.00 3.44 2.03 35,698.51

1915 7.00 3.09 2.26 2.00 39,715.38

1916 7.00 2.29 3.05 37,843.74

1917 7.00 3.15 2.22 33,341.79

1918 7.00 2.41 2.90 39,510.20

1919 8.00 1.14 7.01 38,383.15

1920 11.00 2.98 3.69 3.77 37,483.88

1921 8.00 3.74 2.13 36,672.49

1922 6.50 1.83 3.55 37,269.08

1923 6.50 4.31 1.50 38,713.11

1924 9.50 4.59 2.07 42,899.56

1925 12.00 2.52 4.76 2.80 42,232. Hi

1926 5.00 4.63 1.08 40,525.92

1927 8.00 3.92 2.04 41,175.17

1928 8.50 4.59 1.85 37,054.95

1929 8.25 4.43 1.86 33,242.45

1930 8.25 3.09 2.66 1.90 31,879.06

1931 7.50 2.60 2.88 30,510.11

1932 7.00 1 .37 5.10 29,314.38

1933 4.50 2.87 1.56 28,702.10

1934 5.00 1.37 3.64 28,773.75

1935 4.25 3.16 1 .34 2.90 28,716.25

1936 6.00 2.07 2.89 28,863.61

1937 5.75 1.22 4.77 23,692.80

1938 6.75 3.21 2.10 23,626.89

1939 7.75 2.61 2.98 25,655.98

1940 7.25 .75 9.60 4.47 21 ,808.42'

1941 4.00 2.00 2.00 19,102.96

1942 6.25 3.90 1.60 18,030.56

1943 8.00 4.19 1.90 17,423.15

1944 7.25 3.07 2.35 16,208.69

1945 7.25 2.10 3.45 2.26 14,149.96

1946 7.25 2.00 3.64 12,668.32

1947 9.00 3.30 2.72 11,266.32

1948 13.00 2.16 6.10 11,420.83

1949 12.00 3.00 4.00 8, 956.62

1950 12.00 1.80 6.66 4.63 8,735.28

1951 12.00 2.62 4.58 6,457.13

1952 12.00 3.20 3.75 5,077.05

1953 14.40 4.51 3.21 4,366.54

1954 18.60 3.40 5.47 2, 860.71

1955 18.00 3.20 5.62 4.53 1,950.61

1956 16.00 3.40 4.71 1,564.16

1957 9.00 6.50 1.39 116.10

1958 15.00 6.00 2.50

1959 14.50 5.80 2.50

1960 14.50 5.30 2.73 2.77

1961 14.50 6.00 2.42

1962 14.50 7.00 2.07

1963 14.50 5.50 2.64

1964 15.00 5.30 2.83

1965 16.00 5.00 3.20 2.63 96.66

1966 16.50 5.00 3.30 172.51

1967 17.00 4.50 3.50 216.81

1968 20.00 6.30 3.17 120.81

1969 20.00 5.50 3.64 1' 164.37

1970 20.00 7.00 2.86 3.29 273.78

1971 20.00 8.00 2.50

1972 2l.Dq 5.00 4.20 2,667.00

1973 21.00 6.00 3.50 2.877.00

1974 22.00 7.00

1975 26.00 7.00 3.71 3.33

1976 35.00 6.00 5.83 5,262.00

1977 45.00 4.80 9.38 8,267.00

197R 45.00 6.35 7 08 8,161.00

1979 45.00 6.70 6.71 13,852.00

Principal Indebtedness 1936- $610,000.00 Total Interest Paid $1,232,574.00 Total principal indebtedness paid off December 6, 1956

(13)

ATTORNEY'S REPORT

HILL AND HILL

ATTORNEYS AT LAW A PROFESSIONAL CORPORATION FORT COLLINS, COLORADO 80522

During 1979 I attended the twelve regular monthly meetings of the Board of

Directors as well as other meetings on matters affecting North Poudre.

Much time was spent on matters pertaining to subdivisions and requests for exemption from the County Subdivision Regula- tions. When a subdivision is involved and i t will affect a North Poudre reservoir or

ditch, the matter is usually followed with appearances before the Larimer County Planning Commission or the County Commissioners, or both. North Poudre has enjoyed good cooper- ation from most owners and developers in its efforts to protect boundaries and rights-of- way and to deal with other legal problems which

~re

involved as more people move into this area and land is subdivided.

Hewlett-Packard and Medema Homes

worked with North Poudre last year to make

arrangements for runoff water to enter Fossil

Creek inlet ditch. The problem of developers

wanting to use irrigation ditches to receive

some storm runoff water is a problem that

will be around until an overall governmental

plan is developed. The County and the City

are reported to be working on a long-range

(14)

ATTORNEY'S REPORT

plan.

The demands of the State Engineer continue to take considerable time of the Board of Directors, the engineers employed by the company, and the undersigned. Examples are demands for a study of the Halligan Reservoir Dam and for a larger spillway at Fossil Creek Reservoir. Continuing reports are supposed to be made as to future plans for reservoir improvements. This is all related to an active state program in the area of dam safety.

Many hours were spent in acquiring the land rights necessary for the construction of the final earthen dam known as B 2 of the Boxelder Control Project. It does not

appear that any condemnation proceedings will be necessary. The end of time we spend on this project is in sight.

The lawsuit started by North Poudre as Trustee and in its corporate capacity with regard to the termination of the North Poudre Oil and Gas Royalty Trust is still pending.

Also, North Poudre began a lawsuit in 1979 to prohibit interference with a company right- of-way and an action was brought against North Poudre claiming that a parcel of land owned of record by North Poudre has been lost by adverse possession. Both actions are

pending in the District Court of Larimer County.

Reviewing the paperwork on some

stock transfers for North Poudre stock and

the preferred rights of Fossil Creek Reser-

voir takes quite a few hours each year. Many

times the papers submitted to transfer stock

(15)

NORTH POUDRE IRRIGATION CO.

are incomplete or a stock certificate has been lost. A stockholder will save time and expense by making certain that stock certifi- cates are kept in a safe place. Proper

written notice of a lost certificate may avoid the necessity of a bond if the pro- visions of Colorado Revised Statutes 1973 7- 42-113 through 7-42-117 are complied with.

Stock certificates should not be left with the company for safekeeping.

Occasional protests with regard to water filings and the preparation of miscella- neous contracts and leases regularly require the spending of time. Time was spent with regard to the agreement made with the Platte River Power Authority, which agreement is mentioned in the President's Report.

We enjoy the opportunity to work for and represent The North Poudre Irrigation Company.

Respectfully submitted, HILL & HILL, P.C.

By: Alden V. Hill

(16)

NOTES

(17)

ACCOUNTANT'S REPORT

~ n ~BROCK

^WATKINS^&^SCHOMMER

~ CERTIFIED PUBLIC ACCOUNTANTS 1220 11TH AVENUE, SUITE 200

GREELEY, CO 80631

JAMES A. BROCK LEE WATKINS DAN SCHOMMER

January 15, 1980

Board of Directors

North Poudre Irrigation Company Wellington, Colorado

We have examined the balance sheet of the North Poudre Irrigation Company as of December 31, 1979 and 1978 and the related statements of operations and changes in financial position for the years then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

In our opinion, the accompanying financial statements present fairly the financial position of the North Poudre Irrigation Company as of December 31, 1979 and 1978 and the results of its operations and changes in financial position for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis.

Respectfully submitted,

!J~d ,ld;d/k ¥ Jc/wrl#!M_

Brock, Watkins and Schommer Certified Public Accountants

(18)

NORTH POUDRE IRRIGATION CO.

NORTH POUDRE IRRIGATION COMPANY Wellington, Colorado

Balance Sheet December 31, 1979 and 1978

Current Assets

~h on Hand and in the Bank Assessments Receivable Other Accounts Receivable Note Receivable (Note 2)

Total Current Assets Pr~erty Assets (Note l)

Land

ASSETS

Priorities, Water Rights and Easements Ditches and Reservoirs

Buildings and Improvements Radio and Office Equipment Machinery and Equipment Transportation Equipment

Total

Less: Accumulated Depreciation I_otal Proper~ssets

Investments

Stoc~or Other Companies (Note 1)

Total Assets

1979 33,094

9,601 6,214 48,909

107,665 660,935 4,369,971 17,016 83. 774 124,985 42,430 5 ,40b;77b 1,545,268

~508 3,104

3.913 521

1978 130,682

ll, 653 290 7,250

---r49 -.-srs

90,690 639,154 4. 369.971 17,016 83. 774 130,635 29,030 5. 360.-320 1,501,153

m:rn

2,701

4 011 743

The accompanying notes are an integral part of these financial statements.

Exhibit A - - - -

17

(19)

LIABILITIES

Current Liabilities Trade Accounts Payable

Accounts Payable - Water Purchase Current Portion of Long-Term Debt Accrued Payroll Taxes and Other Expense Accrued Wages

Total Current Liabilities Long-Term Debt (Note 3)

Notes Payable

Less: Current Portion Reflected Above Total Long-Term Debt

Total Liabilities

STOCKHOLDERS' EQUITY Paid in Capital

Common Stock, $50 Par Value, 10,000 Shares Authorized, 10,000 Shares Issued, 9,978 Shares Outstanding

Additional Paid in Capital Total Paid in Capital Retained Earnings

~eginning Ba~?~

Revenues in Excess of Expenditures for the Period

Ending Balance

Total Paid in Capital and Retained Earnings

Less: Treasury Shares, 22 Shares @ Cost Total Stockholders' Equity

Total Liabilities and Stockholders' Equity

Equity Per Share

Exhibit A

1979 12,877 60,000 52,350 6, 791 4,767 136,785

977,257 (52,350) 924,907 1,061,692

500,000 3,450 503' 450

2,468,462

(119~ 273) 2,349,189

2,852,639 810 2,851,829

3.913.521 285.81

1978 12,510 60,000 45,500 3,603 3,244 I24,""B51 961,284 (45,500) 915.784 1,040,641

500,000 3,450 503,450

2,402,943 65,519 2,468,462

2,971,912 810 2,971,102

4 011 743 297 77

(20)

~~ating Revenue Assessment Water Sales

Leases - Hunting, Pasture, Etc.

Stock Transfer Fees

Easements and Miscellaneous Buckeye Reimbursement Grable Reimbursement

Platte River Power Authority I_otaL_O~~~-~e_~~~~

~rati_J-l_g_Expens~

Repairs and Maintenance - Buildings Repairs and Maintenance - Ditches and

Reservoirs (Note 5)

Repairs and Maintenance - #3 Reservoir (Note 5)

Repairs and Maintenance - Equipment Boxelder Flood Control (Note 4) Hachine Hire

Gas and Oil

i~eed Control

Water Purchased and Assessments Engineering Fees

Salaries and Wages Payroll Taxes Insurance

Ditch Riders Expense Office and Other Expense Vehicle and Other Taxes Directors Fees and Expense Utilities and Telephone Mileage

Legal and Accounting Employee Benefits Depreciation

Total OperatinJi~~nse

Income (Loss) on O~erations

Other Income

Gain (Loss) from Sale of Assets Interest Income

Dividend Income (Oil and Gas Units) Total Other Income

Other Expense Interest

Excess (Deficit) Revenues Over Expenditures

1979 449,606

6. 331 21,860 5,840 5,598 789 818 100,000 590~842

3,186 39,091 242, 706 22,647 179 15,894 6,810 66,107 34,604 131' 736 11' 501 9,610 5,979 10,502 3,070 6,091 6,687 6,925 19,751 3,4 78 66,263 if2~-8u (121.~75)

(1, 002) 3,169 14. 38 7 1b,53"Z;

13,852

ClJ_2_._~U)

1978 449,606

1,125 25,353 4,890 4,479 1, 787 400 487.640

3,668 40,979 41,743 28,036 6,175 289 11,917 4,512 66,607 8,567 114' 513 9,636 8,918 5,195 8, 372 6,475 5, 350 6,622 14,661 1,951 63,760 45/,946 -29;094

27,660 6,782 9,547

~gsg-

-~l_~

_ ?2

5J___2_

Exhibit B - - - --

(21)

NORTH POUDRE IRRIGATION COMPANY Wellington, Colorado

Statement of Changes in Financial Position For The Years Ended December 31, 1979 and 1978

FINANCIAL RESOURCES WERE PROVIDED BY

Excess (Deficit) Revenue Over Expenditures Add Back Items Not Requiring Resources

Depreciation

Total Resources Provided by Operations Notes Payable for Equipment and Land

Book Value of Assets Sold Decrease in Working Capital

Total Resources Provided

FINANCIAL RESOURCES WERE APPLIED TO Purchase of Additional Property Assets:

Neilson Land and Easements (Boxelder) Land #5 Reservoir

Vehicles and Equipment Boxelder Easements Other Land

Total

Payment of Long-Term Debt

Purchase of Oil and Gas Royalty Units Increase Current Portion of Long-Term Debt Increase in Working Capital

Total Resources Applied

1979 (119,273)

66,263 (53' 010) 105,488

46,006 112,894 211 378

75,850 21,781 16,979 IT4,tiio 89,518 400 6,850

Components of Increase (Decrease) in Working Capital Cash

Assessments Receivable Other Accounts Receivable Notes Receivable

Accounts Payable

Current Portion of Long-Term Debt Accrued Expense

Increase (Decrease) in Working Capital

(97,588) (2,052) (290) (1' 036) (367) (6,850) (4,711) (112 894)

1978 65,522 63,760 IT~

40,400 793

30,400 26,742 13,670

70,812 31,508 610 15,000 52,545 1_70 475

65,847 736 290 7,250 (6,121) (15,000)

~) 52 545

Exhibit C

(22)

NORTH POUDRE IRRIGATION COMPANY Wellington, Colorado Notes to Financial Statements

December 31, 1979

Note 1 - Significant Accounting Policies:

A) Property Assets - Property assets are recorded at cost.

Depreciation is being taken by the straight-line method over the following useful lives:

Item Ditches and-Reservoirs Buildings and Improvements Radio and Office Equipment Machinery and Equipment Transportation Equipment

Life 100----years

20 years 10 years 10 years 4-5 years B) Investments - Stock in other companies is recorded at

cost.

C) Income Taxes - The company is incorporated under the laws of the State of Colorado as a tax exempt corporation;

therefore, no provision for Income Taxes has been made.

Note 2 - Note Receivable Detail:

Balance Rate Security

Steamboat Ltd. ~17+ 8% Land (Fossil Creek) Note 3 ^- Long-Term Debt Detail:

Eguipment Notes

Annual

Balance Rate Payment Security First National Bank

Lease Purchase Agreements 102,492 5 1/2 - 24,8 77 Vehicles and

6 3/4% Equipment

Other Long-Term Notes

Bureau of Reclamation 826,735 Var. 15,600 Dams and Reservoirs

Neilson 31,970 8'7. 7,600 Land

Stephenson 8,060 8'7. 2,434 ^Land

Ackerman ~ 8% ^Land

Total Long-Term Debt 977 257

(23)

NORTH POUDRE IRRIGATION COMPANY Wellington, Colorado Notes to Financial Statements

December 31, 1979

Note 4 - Boxelder Flood Control Costs

The following amounts are the companys cost for the Boxelder Flood Control Project during the past four years:

1979 21' 781

1978 36,575

1977 7,237

1976 11' 899

Total 77.492

Note 5 - Breakdmm on Reservoir Repairs and Maintenance

The following is a breakdown of expenses charged to the account "Reservoir Repair and Maintenance."

113 Reservoir Fossil Creek Various Maintenance

and Repair

242,706 7,995 31,096 281 797

(24)

ACCOUNTANT'S REPORT- OIL & GAS ROYALTIES

~ n fY2

BROCK WATKINS & SCHOMMER

~ CERTIFIED PUBLIC ACCOUNTANTS

1220 11TH AVENUE, SUITE 200 GREELEY, CO 80631

JAMES A. BROCK LEE WATKINS DAN SCHOMMER

January 15, 1980

Board of Directors

North Poudre Oil and Gas Royalty Units Wellington, Colorado

We have examined the balance sheet of the North Poudre Oil and Gas Royalty Units as of December 31, 1979 and 1978 and the related statements of operations and changes in financial position for the years then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

The trust has not filed federal or state fiduciary income tax returns since its formation. The legal and financial effect of the failure to file income tax returns can not be reasonably determined at this time.

In our opinion, except for the effect of the matters described in the preceding paragraph, the accompanying financial statements present fairly the financial position of the North Poudre Oil and Gas Royalty Units as of

December 31, 1979 and 1978 and the results of its operations and changes in finan~ial position for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis.

Respectfully submitted,

!f~a~»~ f Scknmf,<__-

Brock, Watkins and Schommer Certified Public Accountants

MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

(25)

NORTH POUDRE OIL AND GAS ROYALTY UNITS - - - -Wellington, C_olorado

Balance Sheet December 31, 1979::::aftd 1978

ASSETS

Current Assets

Cash ~n Bank and Savings Account Accounts Receivable

Total Assets

LIABILITIES - - - - -- Current Liabilities

Accrued Dividends Payable (Note 2) Total Liabilities

- - - --

OWNERS' EQUITY 500,00 Units Authorized,

494,675 Units Issued and Outstanding Retained Earnings (Exhibit B)

Total Liabilities and Owners' Equity

1979 10,093

!Q_! 0_21

_?:._,_697 2,697

1978 9,108

100 9.208

2,608 2,608

Exhibit A

(26)

NORTH POUDRE OIL & GAS ROYALTIES

NORTH POUDRE OIL AND GAS ROYALTY UNITS Wellington, Colorado

Statement of Operations and Changes in Retained Eagnings For The Years Ended December 31, 1979 and 197

Revenue

---orr-and Gas Royalties and Leases Interest Earned

Total Revenue Operating Expense

Audit and Legal Fees Bank Charges

Total Operating Expense

Net Profit

Retained Earnings Beginning of Year Less Dividends Paid

1979 15,898

449 lb", 34 7

749 - 7/T 22

15,576

6,600 (14,780)

1978 13,127

477 13' 604

1,256 ----r,L50

12,348 4,150 (9 '8~§) Retained Earnings End of Year _7 39_§_ =6_,6_0_Q_

Exhibit B

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Statement of Changes in Flnancial Position For The Years Ended December 31, 1979 and 1978

1979 FINANCIAL RESOURCES PROVIDED BY

Net Profit for the Period 15,576 Total Resources Provided 15 57...Q

FINANCIAL RESOURCES APPLIED TO

Increase in Working Capital 796

Dividends Paid 14,780

Total Resources Applied 15.576

1978 12,348 12.348

2,450 9,898 12 348

Exhibit C

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NORTH POUDRE OIL & GAS ROYALTIES

Notes to Financial Statements December 31, 1979

Note l - The North Poudre Oil and Gas Royalty Units is a common law trust approximately 98.1% owned by the North Poudre Irrigation Company.

Note 2 - Accrued Dividends Payable

Legal council for the trust has made an accounting of the accrued dividends payable to unit holders of the trust who have died or for which no current address or information is known. This accounting indicates a balance owing to these shareholders of $1,548. Previous accounting records, for which there is no substantiation, indicates a balance due of $2,697 or a difference of

$1,149.

Note 3 -Action No. C-78-445 is currently pending in the District Court of Larimer County, Colorado to terminate the trust.

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