In 1913 the United States Government Land Office (GLO) intervened. California was on a major verge to overhaul water rights, yet that was of little concern to the GLO. At issue, at least with the GLO, was the State’s law was vague and failed to state whether water from a lake with no outlet could be appropriated. Until that issue was resolved, the GLO had no choice but to revoke Standish Water Company’s rights-of-way of its canals across federal lands. In essence the Company was forced to cease and desist, thereby forfieting revenue from water sales to recover its initial investment. This issue with the State was not to be resolved in a timely manner. In November 1914, the voters of California were presented with an initiative to overhaul the State’s water right system. It was approved and the Department of Water Resources was created. This new agency had complete control over the issuance of water appropriations, which previously was done at the county level. It was necessary reform, since the counties recorded water right claims but had no authority to determine concerning multiple applicants over a single water source.

Those issues were of no solace for the Standish Water Company, now on the verge of bankruptcy. In 1915, the water right issue was resolved. However, GLO still withheld the rights-of-way until another issued was settled. The GLO was concerned the lake’s water with its mineralization content might be harmful to the land. After a chemical analysis was completed it was determined the water could indeed be used for irrigation.

In the meantime, the Standish Water Company sold to Rosendal Minister. In 1916, Minister formed the Farmer’s Land Company. It was his intention to form a colony of people of Scandanavian descent. He subdivided the properties into 40-acre tracts and sold them for $45 to $65 per acre. Minister’s enterprise was short-lived as he abandoned the project in 1917. Not only did he leave the area, but left his creditors holding a lot of unpaid bills.

The abandoned pumping plant could no longer be used, due to the lack of water. The lake level had receded to the point where the intake to the plant was high and dry. In October 1918, there was a scarcity for machinery from the effects of due World War I. At this time, the United States Government seized the pumping plant’s machinery, where it was first dismantled and shipped to San Francisco. From there it shipped to Siberia to generate power.

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