Policies

Replacement Headgate Policy (adopted at 2009 annual shareholders meeting)

The Dry Creek Lateral Ditch Company (the “Ditch Company”) maintains all headgates on the ditch as necessary to deliver water to its shareholders, including repair or replacement of headgates as needed. However, when a shareholder proposes to move a headgate, or to install a new or different headgate when such change is not needed to accomplish the historic delivery of water, the shareholder may install the headgate, at the shareholder’s own expense, only in compliance with the specifications and location approved by the Board of Directors.

When any shareholder applies to the Board of Directors to approve the installation of a headgate, the shareholder must pay all reasonable costs and fees incurred by the Ditch Company, including reasonable expenses of the Directors, a charge for time spent by the Directors and by the Ditch Company’s employees, and a charge for reasonable time spent by the Ditch Company’s contractors, including engineers and attorneys, in analyzing the proposed headgate. Before considering the headgate application, the Directors shall require a deposit equal to the Directors’ estimate of the Ditch Company’s costs. The deposit amount shall be adjusted once final costs have been determined. Any amount of the deposit remaining shall be returned to the applicant shareholder, or the applicant shareholder shall pay any costs not covered by the deposit.

The shareholder shall then have the headgate constructed in accordance with the plans approved by the Directors. The shareholder shall pay all costs of the construction. When the construction is complete, the shareholder shall apply to the Board of Directors for acceptance of the headgate by the Ditch Company. The Directors, or a committee thereof, will inspect the headgate construction as soon as practicable, and shall notify the shareholder of any deficiencies in the construction. The shareholder shall correct any deficiencies and again apply for acceptance of the headgate. No new headgate shall be put into use until final acceptance by the Board of Directors.

Shareholder Expense Policy (adopted at 2010 annual shareholders meeting)

If any action which affects the ditch or its easement is initiated by a shareholder, or an agent, tenant, director, officer, employee, parent entity, subsidiary entity, or affiliate of the shareholder, and such shareholder action requires expenditures by the Board of Directors of the Ditch Company, the Board may bill the shareholder for that expense and may assess the expense exclusively against such shareholder’s stock. The Board, at its discretion, may require payment of a deposit equal to the estimated costs of the matter before proceeding with the matter.