In September 1885, James W. Shanklin constructed the first reservoir for irrigation and stock purposes at his ranch in Grasshopper Valley. That dam was 25 feet high and 300 feet across. Over the years it had numerous owners. In 1934, it was purchased by George Heath, who became the owner of this reservoir as well as one on nearby Slate Creek. As early as 1929, the State Department of Water Resources stated neither dam was in compliance and requested that spillways be constructed for each reservoir. The winter of 1937-38 was one of the wettest on record for the 20^th century and, in Susanville, 33.68 inches of precipitation was measured. On May 8, 1938, the dam at Said Valley breached and caused considerable flood damage. On August 24, 1939, Heath sued Percy L. Castro for $50,000 in damages that were caused by dam failures. It was Heath’s contention that, since Castro leased the reservoirs and his Grasshopper Ranch, it was his duty to install the spillways that the Department of Resources requested. However, during the Department of Water Resources investigation, it was noted that even if the proper spillway had been installed at Said Valley, it would still have failed because of defects in the dam’s original foundation. The court ruled in favor of Castro and stated it was Heath’s responsibility and ordered Heath to pay Castro’s court costs. The dam was rebuilt, albeit on a smaller scale.