Dear Stockholders

A shareholder who sells his land can, and usually does, transfer his shares of stock to the purchaser of that land (There is an implied connection between the shares of stock and the land for which they provide water).  This kind of a transfer involves the preparation of new stock certificates (two or several).  At the time of such a transaction, the old certificate is relinquished to the Company in exchange for the new stock certificates. For more information on this, see the Stock Transfers section of this website.

All shareholders are liable for the Annual Maintenance Fee.  It is essential, so that the Company can maintain the ditches that deliver the water.  The amount levied against a shareholder’s stock is put in the mail by March 15 of each year and is due then.  There is a minimum Annual Maintenance Fee of $60.00, for example in the case of one share.

A shareholder who does not pay the ANNUAL MAINTENANCE FEE that is levied against his shares is not eligible to use the Company water, nor vote at the annual meeting.  Prior to the resumption of the use of the water from Company ditches, the delinquent shareholder must pay in full each of the Annual Maintenance Fees for the years they are in arrears.

Upon the sale of the land, unpaid fees remain as a LIEN against the shares and must be paid before the new owner may commence use of the water.  It can be seen that the shares enhance the value of the land when the fees associated with them are paid in full.

The annual shareholders meeting of the Clallam Ditch Association shall be held at Sequim Prairie Grange , 290 Macleay Rd, Sequim, WA, unless the place shall be otherwise stated, during the month of May or June, annually.