I would be disturbed, also.
I have never heard of this type of agreement before where a range's 'bullet landing area' is on other peoples' property! This should be rectified immediately if not sooner. I hope that with the NRA's help, that the range can be made safe for the residents in the area as well as for the water resevoir. There is no excuse for unsafe range practices. We have enough of a PR problem without this kind of thing going on.