Teton Co-Operative Canal Company

“Part III - Statement of Primary Purpose”

“Teton Co-operative Canal Co. is an irrigation co-operative which distributes irrigation water to its members during the summer months for irrigating approximately 6,000 acres of farm and pasture land. Under normal operating procedures, the ditch riders turn on the flow of water to the stockholders according to the Board of Directors. Our normal operating season is from April 15th to October 15th each year. Water is divided among the stockholders according to how many shares each stockholder has. Regular assessments of $200.00 per share are assessed twice a year for normal operating expenses and a special assessment of at least $50 per share once a year, which is put into a CD to be used to replace the outlet pipe out of the 5,500 acre feet reservoir. The outlet pipe out of the 5,500 acre feet reservoir. The reservoir was 70 years old and the Department of Natural Resources indicated that the pipe needed to be replaced which is being done in phases. Phase I was completed in 2012. Also, engineering inspections of the reservoir must be conducted every 5 years because the reservoir is at a higher elevation than the town of Choteau. The inspections must be made by an engineering firm to make sure the reservoir is safe. Many people use the reservoir lake to fish and recreate. Presently, additional assessments of our members have been required to help with the additional legal fees. The reservoir is located 5 miles North of Choteau section 31T24NR5W.”

“Liability Ins 1600.”

“Interest 5076.”

“OFFICE & POSTAGE 99.”

“Depreciation 13372.”

“ADVERTISING 94.”

“REIMBURSMENTS 250.”

“WATER FEES 8515.”

“Rebuilt Outlet & Repirs - net of Accum Dep 129310. 115938.”

“DNRC loan at 3.6% 125326. 104668.”