At DSR 5:30 PM

Board members present:Ý Phil Hall, Larry Baer, Nyle Willis, Larry Clarkson, Lee Bellar.Ý Art Ortolani absent.

Others present:Ý Dale Clarkson, Val Cram, Taylor and Barbara Button, Tony Holden, and Larry Murphy.

Reviewed the July 9, 2004 minutes.Ý Phil suggested some changes.Ý Accepted with changes.

Barbara reviewed the status of our budget.Ý We are on track to meet the financial obligations we have.Ý Barbara showed the board where she projects the money will be coming in from and where we will still have more outgoing monies.Ý The picture looks good.Ý She asked the board to approve the water system water line from the 40,000 gallon water tank down to the existing water tanks and line.Ý We have three members that want to participate and so that puts the project within our reach financially.Ý Phil made a motion to proceed with the design of the water line and pump house and the trenching of the water line, staying within the budgeted amounts. Lee seconded.Ý All in favor.

Water line in Crawford Area

Phil Hall stated that he has been approached by several members to connect on to his certified well.Ý He asked the Boardís thoughts on running a water line down the Crawford Canyon Road.Ý Do the easements in the Bylaws include the established road?Ý After much discussion, Lee Bellar made a motion to allow a water line installation in the roadway on the following conditions:Ý Trench to be refilled within 48 hours, deep depth at possible future culverts to allow culvert installations, install several shutoffs to isolate any leaks, install less laterals.Ý Larry Clarkson seconded.Ý All in favor.

Airport fence

Phil asked the board to consider installing a fence starting at the west cattle guard at the entrance to headquarters, proceeding up the hill on the north side of County Road, crossing the Meadow Canyon/Broad Hollow Road east of the airstrip, and proceeding down the hill to tie into the existing fence at the bottom of the hill along Deer Springs Wash.Ý This fence would serve several purposes:Ý Keep cattle away from the cabins and headquarters area, keep hunters out of DSR private areas, and keep traffic off the airstrip.Ý Phil offered to pay for the fence (approx $10K) under the conditions that the ranch reimburse him in the next few years.Ý The board felt that the fence was not a priority at this time.Ý Phil will use his own money to secure the ends of the runway now.

Water Rights

Phil HallÝ researched the Ranch water rights on the internet site for the Utah Division Of Water Rights.Ý He told the Board of the 49 entries for different fillings made in the name of the Ranch.Ý Since he had assigned Larry Clarkson as Board member in charge of non- domestic water rights with his father Dale Clarkson as committee chairman this last spring, he asked them to look the filings over and advise the Board as to any needs to keep secure the Ranches rights. Larry Clarkson and Dale Clarkson agreed to take the packet of information and identify the domestic water rights versus the non-domestic water rights.Ý They will inform the board and Barbara as to the water rights that need to be proved up on and when.

Phil Hall presented the Board with the rough draft and information it had been promised about the proposed Bylaw and Protective Covenants changes.Ý He reviewed the counsel given by the attorney ( Bruce JenkinsóSt. George)Ý over the past few months to himself and Barbara, as he reviewed our documents and draftedÝ them in compliance with Utah Law for non-profit corporations like ours.Ý Phil admonished the Board to read them over immediately and within the next week make any suggestions or corrections they felt might be appropriate or necessary.Ý He stated that in order to present the general membership with a corrected draft for the annual meeting mailing and come as close as possible to having a good document, there input was needed.Ý Dale Clarkson, Val Cram, and Larry Murphy were in attendance and also given a copy and invited to give input. It was suggested that Larry Walters, because of his expertise in this area, also be given a copy and that the Board gather advise from as many other members as possible for their input.Ý Most changes made in the draft were according to code but some were for the sake of organization between bylaws, protective covenants, and the rules and regs. of the Ranch. Phil reported that the cost to date for the research on the potential sale of Lot #1, the information concerning association membership, and the redrafting of the association legal documents, was under $4,000.Ý All agreed to review the documents and send their suggestions to Phil.Ý

Sale of Lot #1and Association Memberships

Phil informed the Board that the Attorney says the Association can sell Lot #1 if the membership votes to do so.Ý Phil gave the Board a letter by the Attorney stating that every lot has a membership.Ý It is plainly stated in the Protective Covenants Item #2.Ý In 2005, ALL lots should be assessed the annual dues.Ý A discussion proceeded regarding how best to inform the lot owners of the four lots that currently believe they do not have memberships and do not need to pay dues. A letter written by the attorney was approved with certain changes and approved by the Board to be sent to those lot owners involved (approximately 4).Ý The Board further agreed that these lot owners would not be held accountable for past assessments owned but would be billed with the rest of the members in December 2004 for the 2005 season. The above members in question would be invited to attend the annual meeting and be sent the annual meeting mailing and told they could vote if they paid their 2004 assessments by the prescribed deadline before the meeting..ÝÝ

Director NominationsÝ The deadline for nominations is Sunday, August 1, 2004.Ý At the time of the meeting, nine people had been nominated.

Annual Meeting Logistics

Dale Clarkson will bring 20 chairs.Ý Tony will gather the deck chairs around the ranch (approx 40).Ý Barbara will get blank name tags.Ý Larry Baer is in charge of door prizes.Ý Nyle is in charge of the sound system.Ý The Social Committee will be asked to cook the dinner.Ý Everyone is asked to help clean up.

Meeting adjourned.