Mattie Z. Farrington, Albert D. Young, River Valley Ranch, LLP, Bear Creek Ranches, LLC

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C. Bruce Loblc Chief Water Judge Montana Water Court PO Box 1389 BozemanMT 59771-1389 (406) 586-4364 1-800-624-3270 (IN-STATE) FAX: (406) 522-4131 IN THE WATER COURT OF THE STATE OF MONTANA ALBERT D. YOUNG, Plaintiff, ) CASE NO. WC-2005-02 ) ) Certified From: ) Fifth Judicial District Court V. ) Cause No. 576 MATTIE Z. FARRINGTON ) ) (Red Rock River) FILED Il-I-U ) Defendants. APR 0 4 2006 ) ) Montana Water Court ORDER DISMISSING RIVER VALLEY RANCH CLAIM 41A 94608-00 AND ORDER DELETING DECREE EXCEEDED ISSUE REMARK ON BEAR CREEK RANCHES CLAIM 41A 94627-00 On Thursday, October 20, 2005, the Water Court held an evidentiary hearing to resolve a water right distribution controversy involving the ownership of an existing water right claimed by two parties. Plaintiff and claimant River Valley Ranch, LP (hereinafter "River Valley") was represented by attorney Katherine Baker. Defendant and claimant Bear Creek Ranches, LLC (hereinafter "Bear Creek") was represented by attorneys John Bloomquist, Max Hansen, and Patti Rowland. Ted Schmidt was present for River Valley. Don and Sheila White were present for Bear Creek. River Valley is the owner of water right claim 41A 94608-00. Bear Creek is the owner of water right claim 41A 94627-00. By this Order, River Valley water right claim 41A 94608-00 has been terminated. After at least 30 days have elapsed, the Water Court will return its decision and tabulation to the Fifth Judicial District Court, pursuant to § 85-2-406(2)(b), MCA. For the reasons set forth in the Findings of Fact and Conclusion of Law filed April 4, 2006, it is hereby ORDERED that the River Valley water right claim 41A 94608-00 is TERMINATED and DISMISSED and any abstract of the claim that appears in any subsequent decree issued in Basin 41A shall so indicate; ORDERED that the following remark be placed on the abstract of claim 41A 94608-00: THIS CLAIM WAS DISMISSED BY ORDER OF THE WATER COURT ON APRIL 4, 2006 IN CERTIFICATION CASE WC2005-02 ORDERED that the decree exceeded remark on the Review Abstract of Bear Creek water right claim 41A 94627-00 (which the Bear Creek claim was sharing with River Valley claim 41A 94608-00) be DELETED. ORDERED that a Review Abstract of Water Right Claim 41A 94608-00 be served with this Order to confirm that the remark set forth above has been added to the Review Abstract of the River Valley terminated claim and to confirm that the TERMINATED status of the claim is properly identified in the state's centralized record system. -2- ORDERED that a Review Abstract of Water Right Claim 41A 94627-00 be served with this Order to confirm that the decree exceeded issue remark has been deleted from the Review Abstract of Bear Creek claim 41A 94627-00 and to confirm the deletion of the decree exceeded issue remark in the state's centralized record system. DATED this V day of April, 2006. C. Bruce Loble Chief Water Judge -3- CERTIFICATE OF SERVICE I, Anna M. Burton, Clerk of Court of the Montana Water Court, hereby certify that a true and correct copy of the above ORDER was duly served upon the persons listed below by depositing the same, postage prepaid, in the United States mail. Katherine A. Baker, Attorney Duffner Ranches Debbie Meyer PO Box 6580 Attn: Les Duffner PO Box 96 PO Box 278 Lima Bozeman MT 59771-6580 Lima MT 59739 Jim Munday John E. Bloomquist, Esq. Santana Ranch POBox 1185 Helena MT 59739 MT 59624-1185 3475 Beaverhead Lane Attn: Dean/Robert Dixon Dillon MT 59725 POBox 121 Patti L. Rowland, Esq. Lima MT John P. Murphy 59739 207 W. Wood Street POBox 1418 Dillon MT 59725-1418 Willows Keith Fairbank CA 95988-2528 1600 Bond Road Max A. Hansen, Esq. Dillon MT Wayne Potter 59725 PO Box 53 POBox 1301 Dillon MT 59725-1301 Dell Ross Hansen MT 59724 PO Box 48 Courtesy Copies: Dell MT R & D Ranch 59724 Attn: Dave Adams Frederick B. Gray, Commissioner Hess Land & Cattle Co. POBox 117 Dell MT 59724 Attn: Steve Hess Lima MT 59739 Glen M. Sylvester POBox 112 Lima MT PO Box 207 59739 Lima Wilbur G. Gilbert, III, Atty PO Box 345 Dillon MT MT 59739 Leo Keppner 59725-0345 Turner Ranches PO Box A Lima MT 2205 Red Rock South 59739 Dillon Buhler Land & Cattle Attn: Rulon Buhler 4600 Carrigan Lane 59725 LaCense Ranch PO Box 204 MT Lima MT 59739 Dillon MT Nettie Welborn 1125 Lovers Leap Road 59725 Dillon MT 59725 Canyon Ranch Lee Martinell Co. River Bend Ranch Attn: Byron and Allen David Wellborn PO Box 50305 Martinell 11775 Hwy 324 Idaho Falls ID 83405 Dillon PO Box 77 Dell MT MT 59725 59724 Draggin Y Cattle Co. Wolfe Hereford Ranch 6000 Hwy 324 PO Box 65 Dillon Dell MT 59725 DATED this day of April, 2006. Q MT 59724 Anna M. Burton, Clerk of Court -4- Page 1 of 2 April 3, 2006 Review Abstract 41A 94608-00 REVIEW ABSTRACT OF WATER RIGHT CLAIM IMPORTANT NOTICE AN ASTERISK (*) HAS BEEN PLACED NEXT TO EACH ITEM CHANGED IN ACCORDANCE WITH THE SUPREME COURT RULES GOVERNING THE EXAMINATION OF THIS CLAIM. Owners: 41A 94608-00 STATEMENT OF CLAIM Version Status: Water Right Number: TERMINATED RIVER VALLEY RANCH LP PO BOX 10175 BOZEMAN.MT59719 0175 ¦Priority Date: JUNE 1,1888 Enforceable Priority Date: JUNE 1, 1888 Type of Historical Right: DECREED Purpose (use): IRRIGATION Irrigation Type: Flow Rate: FLOOD 8.00 CFS THE WATER RIGHTS LISTED FOLLOWING THIS STATEMENT ARE FILED ON THE SAME FORMERLY DECREED WATER RIGHT. THE SUM OF THE CLAIMED FLOW RATES EXCEEDS THE 320 MINER'S INCHES DECREED IN CASE NO. 576 , BEAVERHEAD COUNTY. 41A 94608, 41A 94627. Volume: Climatic Area: 5-LOW Maximum Acres: 320.00 Source: RED ROCK RIVER Source Type: SURFACE WATER *Point of Diversion and Means of Diversion: ID Rge County 31 13S 7W BEAVERHEAD 31 13S 7W BEAVERHEAD NWSENW 31 13S 7W BEAVERHEAD HEADGATE 3 Diversion Means: Twp HEADGATE 2 Diversion Means: Sec NESENE 1 Diversion Means: Qtr Sec NWNENE Govt Lot HEADGATE Period of Diversion: MAY 15 to SEPTEMBER 15 Period of Use: MAY 15 to SEPTEMBER 15 Page 2 of 2 April 3, 2006 41A 94608-00 Review Abstract *Place of Use: ID Acres Govt Lot Qtr Sec Sec Twp Rge County 1 123.00 S2 31 13S 7W BEAVERHEAD 2 18.00 S2SE 25 13S 8W BEAVERHEAD 3 162.00 36 13S 8W BEAVERHEAD 35 13S 8W BEAVERHEAD 4 Total: 17.00 N2SE 320.00 Remarks: THIS CLAIM WAS DISMISSED BY ORDER OF THE WATER COURT ON APRIL 4, 2006 IN CERTIFICATION CASE WC-2005-02. NOTICE OF WATER RIGHT TRANSFER RECEIVED 05/08/92. NOTICE OF WATER RIGHT TRANSFER RECEIVED 02/07/89. NOTICE OF WATER RIGHT TRANSFER RECEIVED 10/25/90. NOTICE OF WATER RIGHT TRANSFER RECEIVED 03/30/98. NOTICE OF WATER RIGHT TRANSFER RECEIVED 01/29/99. NOTICE OF WATER RIGHT OWNERSHIP UPDATE RECEIVED 10/08/99. WATER RIGHT OWNERSHIP UPDATE RECEIVED 10/03/00. WATER RIGHT OWNERSHIP UPDATE RECEIVED 11/08/00. REVIEWED BY : BRUCE LOBLE DATE: Page 1 of 2 April 3, 2006 41A 94627-00 Review Abstract REVIEW ABSTRACT OF WATER RIGHT CLAIM IMPORTANT NOTICE AN ASTERISK (*) HAS BEEN PLACED NEXT TO EACH ITEM CHANGED IN ACCORDANCE WITH THE SUPREME COURT RULES GOVERNING THE EXAMINATION OF THIS CLAIM. Water Right Number: STATEMENT OF CLAIM Version Status: Owners: 41A 94627-00 ACTIVE BEAR CREEK RANCHES LLC PO BOX 240040 DELL, MT 59724 0040 Priority Date: JUNE 1,1888 Enforceable Priority Date: JUNE 1, 1888 Type of Historical Right: DECREED Purpose (use): IRRIGATION Irrigation Type: FLOOD 8.00 CFS Flow Rate: Volume: Climatic Area: 5-LOW Maximum Acres: 690.00 Source: RED ROCK RIVER Source Type: SURFACE WATER Point of Diversion and Means of Diversion: Twp Rge County 24 13S 9W BEAVERHEAD 32 13S 8W BEAVERHEAD Twp Rge HEADGATE 2 Diversion Means: Sec NENWNW 1 Diversion Means: Qtr Sec NESWSE Govt Lot ID HEADGATE Period of Diversion: APRIL 1 to NOVEMBER 1 Period of Use: APRIL 1 to NOVEMBER 1 *Place of Use: ID Acres Govt Lot Qtr Sec Sec County 1 15.00 swsw 10 13S 9W BEAVERHEAD 2 50.00 NWNW 15 13S 9W BEAVERHEAD 4 20.00 SWNE 15 13S 9W BEAVERHEAD 9 185.00 S2 15 13S 9W BEAVERHEAD 10 25.00 SWSW 14 13S 9W BEAVERHEAD 11 80.00 E2NE 22 13S 9W BEAVERHEAD 5.00 NWNE 22 13S 9W BEAVERHEAD BEAVERHEAD BEAVERHEAD 12 13 5.00 SWNE 22 13S 9W 14 40.00 NWNW 23 13S 9W Page 2 of 2 April 3, 2006 41A 94627-00 Review Abstract *Place of Use: ID Acres 15 16 17 Total: Govt Lot Qtr Sec Sec Twp Rge County 25.00 NENW 23 13S 9W 80.00 S2NW 23 13S 9W BEAVERHEAD 160.00 SW 23 13S 9W BEAVERHEAD BEAVERHEAD 690.00 Remarks: AUTHORIZATION TO CHANGE POINT OF DIVERSION COMPLETED 01-07-77. SEE G094622-41A NOTICE OF WATER RIGHT TRANSFER RECEIVED 10/15/87. NOTICE OF WATER RIGHT TRANSFER RECEIVED 05/17/90. NOTICE OF WATER RIGHT TRANSFER RECEIVED 12/12/97. NOTICE OF WATER RIGHT TRANSFER RECEIVED 06/04/98. REVIEWED BY : BRUCE LOBLE DATE:

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