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Good story Jeff! There seems to be a pattern here where people that were going to recover caches made a point of letting everyone know what they were looking for and where it was located before they started the search. Not a great idea!
As I understand it, Mud Lake is the property of the local irrigation district. I do not think they would appreciate it when people do any unauthorized digging.
I doubt anybody would ever notice, provided you didn't mess with the irrigation water. As far as the treasure...it probably sank to irretrievable depths in the mud a long time ago....LOLJim