% North Fork Accounting

PO Box 414

Paonia, CO  81428


Fax 970-527-3023


January 11, 2007


The annual meeting of the board of directors of the Fire Mountain Canal and Reservoir Company was called to order by President Houseweart at 7:45 pm.  Directors present were Arvin Stahl, Dixie Luke, and John Stroh.  Also present were Merritt Denison and Paul Schmucker.


Everybody present at the meeting introduces themselves.


Merritt Denison’s Report:

Merritt reviews the 2006 maintenance performed at the Paonia Dam.


Snowpack figures: McClure 97%, Overland 100%, West End Grand Mesa 68%.


While Secretary Randy Fisher tallied the number of shares attending the meeting for quorum purposes, Bill Houseweart and Merritt Denison spoke to the shareholders and gave brief overviews of ditch operations for the past year.


No Quorum 106,451 shares present/proxy, need 110,078 for quorum.


Bill Houseweart discusses board and ex-officio vacancies and announces the board has appointed John Burgevin as an ex-officio member, Wes Spore as a director, and Dave Stiller as a director.  General discussion on board meetings, second Tuesday of the month.


Randy Fisher, secretary/treasurer, reviews the financial statement and answers a question regarding augmentation income.  Merritt goes into more detail regarding augmentation water.


Merritt Denison discusses West Elk water filings.


Bill Houseweart discusses that augmentation income will spent on ditch lining and dam repair.


Dixie Luke discussion water filings at East Beckwith, conditional decree at court, and objection from National Forest Service.


Jere Hollembeak asks question about fence at waterplant siphon.  Merritt answers that we are gradually working on siphon fences.


Question about Bowie Mine gob pile, what if pile slides into the ditch?  Dixie Luke discussion on how FMC, Bureau of Reclamation, and State Mine inspector monitor that gob pile.


Dan Bolton question regarding grant money for ditch lining.  Merritt responds by saying most grants won’t cover maintenance.  Dixie Luke responds by saying grant money available for Leroux Creek dump gate and sedimentation; also NFWCD has reimbursed FMC for certain dam maintenance items.


Bill Houseweart and Merritt Denison discuss that we have been successful in flushing sediment from reservoir at high water times.


General discussion on dredging, lack of feasibility of dredging; raising spillway is a possibility “make up” for lost storage.



Annual meeting adjourned at 9:00 pm.



Randall W. Fisher, Secretary