William N. Kellahan, Jr. and Alice H. Kellahan - Page 3




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          tract of land in Clarendon County, South Carolina, near Lake                
          Marion.  Mr. Hardy’s tract abutted land owned by H. F. Oliver.              
          Mr. Oliver had dug a canal on his land.  The canal was connected            
          to Lake Marion and thus provided access to the lake.  Mr. Oliver,           
          who was a land surveyor, had subdivided his property and sold               
          lots around his canal.  The canal on Mr. Oliver’s property                  
          terminated at Mr. Hardy’s tract, and Mr. Oliver persuaded Mr.               
          Hardy to dig a canal and subdivide in similar fashion.  So Mr.              
          Hardy arranged to have a canal (the Canal) dug on his tract,                
          starting from the point where Mr. Oliver’s canal terminated, and            
          had Mr. Oliver survey and subdivide his tract into 28 lots                  
          surrounding the Canal.  He commenced selling the lots in March              
          1975 and sold the last one in August 1985.                                  
               The deeds conveying the 28 lots recited the various land               
          boundaries of each lot and further stated that each lot was bound           
          “by waters of Lake Marion [i.e., the Canal]”.  The property plat            
          showing the subdivision of Mr. Hardy’s tract, which was                     
          referenced in the deeds conveying the lots as providing a “more             
          particular description” of the lots, indicated that the lots                
          terminated at the “high water mark” of the Canal.  The plat made            
          no reference to a low water mark or to any land between high and            
          low water mark.  When Mr. Hardy offered the lots for sale, it was           
          his understanding that the lots extended to the center of the               
          Canal rather than terminating at the water’s edge, and he                   





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