It is important for a Ditch Company to ensure that nothing interferes with the operation of the Ditch or hinders the access necessary to operate, maintain, repair and replace the Ditch. Any proposed crossing of the Ditch, whether by bridge, pipeline, cable, wire, walkway, tile, or any other structure, whether permanent or temporary, above or below ground, has the potential to interfere with the Company's operation of the Ditch and could create a dangerous condition to Company personnel. It is therefore appropriate that no crossing occur except upon the express approval of the Board of Directors in accordance with a Ditch Company's Policy.

Review of proposed crossings presents administrative, legal and engineering expense to the Ditch Company. It is appropriate for the party proposing to cross the Ditch to pay this fee, not the Company's stockholders, because the crossing is for the benefit of the Applicant. Similarly, Ditch Companies agree that Applicants should fully indemnify the Company against all costs or claims of any kind arising out of the crossing.

Once the Company is assured that Applicant will pay all reasonable associated attorney fees, engineering fees and administrative costs, the Company will begin negotiation and review the plans and specifications and begin to discuss an agreement with the Applicant. Please understand that at this time the Company is neither granting the Applicant permission to begin construction nor to interfere with the Canal easement, nor do they guarantee that they will enter into an agreement to approve the proposed construction affecting or crossing the Canal.