FIRE MOUNTAIN CANAL & RESERVOIR CO.

P.O. BOX 414

PAONIA, CO 81428

(970) 527-3662

FAX (970) 527-3023

July30, 2009

A special meeting of the board of directors of the Fire Mountain Canal and Reservoir Company was called to order by President Luke at 7:30 pm. Directors present were Bill Houseweart, John Stroh, Dave Stiller, and Wes Spore. Also present were Trey Denison, Robert Madden and Dan Bolton.

Trey would like a letter sent to two Fire Mtn Extension shareholders who are violating the policy on closed gates; Hildebrand and Stechert are closing and/or chaining shut gates making Scott and Trey’s job more difficult. The Bylaws are very clear on this matter: gates must remain open. Trey and Randy will write a letter as soon as possible.

Randy Fisher, secretary/treasurer, gives a general overview of financial position of the company and the budgeted expenditures for the rest of the year. Randy gives his opinion that the assessment should be $.80/share for the general budget plus $.35/share to recoup the cost of the Barrow Mesa ditch repair (a total of $1.15/share).

After general discussion, Wes motions to set the 2009 assessment at $1.15/share with a $35/shareholder user fee, Dave seconds the motion. Bill amends the motion to increase the user fee to $45/shareholder, Wes and Dave approve the amendment; the motion carries 3-1 with John voting no.

The board would like a note included with the assessment explaining the reason for the increase in assessments from prior years.

After general discussion, Bill motions the board approves Dave to proceed with Harwell Irrigation/Marcel Orton on preliminary discussions regarding lining/piping the ditch as long as FMC has $0 dollars out of pocket, Wes seconds the motion and the motion carries.

Meeting adjourned at 9:15 pm

Respectfully submitted,

Randall W. Fisher

Secretary-Treasurer