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so as implementing the Guidelines for West Hawaii Coastal Monitoring Task Force 1992? Should I address those questions to you, or we have other -. BAIL: Why don’t you address them to me? I may need to call on other people who are here today to assist me with response, but let us know what your questions are. IWASHITA: Well, I guess in reviewing this study, which was done in April or the report was done in April 2006, it raises concerns in my mind about the nexus question that Mr. Yuen talked about in terms of the increase in nitrogen or the nutrients. And I guess this review finds that there has been increase in these nutrients. And this report talks about the potential being increased in West Hawaii; if I want to quote here, “suggesting the conditions in West Hawaii may be developing for extreme environmental degradation possibly resulting in algae blooms like those in West Maui.” And I suppose those are the same ones that Mr. Yuen referred to. So the recommendations of this study and report are that, as it would be related to this project, that the Guidelines for West Hawaii Coastal Monitoring Task Force 1992, you know, that those need to be adhered to and enforced, revised, so forth, and that the Guidelines for Environmental Reports need to be provided to the developers – presumably such as yourself – prior to application or implementation. So I guess my question is whether or not your companies have received the Guidelines for Environmental Reports for West Hawaii Coastal Monitoring Task Force 1992. BAIL: The anchialine and all the monitoring that we do at the Resort complies with the West Hawaii Coastal Monitoring protocols from 1992, and that is stated in our th February 5 submission on Page 9. IWASHITA: Okay. And the suggestion also is that this monitoring continue, so that we can keep more information and possibly take a corrective action or preventive action, so that we don’t increase the degradation that may result in an algae bloom. So what position do the applicants take about this conclusion in this report that there is a nexus or there may be a nexus between what they describe as the degradation of the water quality and the possibility of triggering an algae bloom? BAIL: Well, let me address that in several ways. I want to first of all give everybody assurances that not only the existing SMA but also the existing Land Use Commission Decision and Order do require extensive monitoring on an on-going basis. So far, to date I believe there has been more than 30 years of sampling since 1977 under the obligations of both the SMA and the Land Use Commission Order that sampling will continue. With regard to the anchialine pond area that is designated at the Resort, we are under the oversight of the Army Corps of Engineers for the various monitoring programs that we conduct there, and we comply with their directives. To date there are more than 1,600 water quality samples on an on- going basis; there are more than 120 samples collected each year. Those range from ground water samples to anchialine pond water quality sampling and continuing out into the ocean environment. IWASHITA: What is the applicant’s position regarding -. Because I guess now we have conflicting positions scientifically: The ones referenced by Mr. Brock and now this one which basically takes the opposite position. So is the Applicant’s position still that there is no nexus EXHIBIT C 4