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LIM: The condition that I’m reading is in part pulled directly from the <br />settlement agreements. So whether we pull it out or not, it’s -. I think that in terms of us we <br />don’t know if the R-2 effluent can be used cause we haven’t tested that. And if we find that it <br />has to go to R-1 that would require us to pay for upgrade of the wastewater treatment plant and <br />all the other facilities in that; and that’s where we get into that commercially reasonable issue. I <br />think at this point all we can say is that, you know, that’s why we have those caveats in there, is <br />because we’re trying to do the right thing but we don’t know if we can yet. And I think that we <br />have enough heavy weights like the Mauna Lani Resort Association looking over our shoulder <br />that, you know, they’re going to make sure we give it a good try. <br />BOWMAN: And to follow-up if I can. And the other resorts don’t use the effluent for <br />their golf courses? <br />LIM: That’s correct. I believe that’s what Mr. Nance said. <br />BOWMAN: They use -? <br />NANCE: No, they do, they do -. <br />BOWMAN: They do? I need confirmation on that. <br />NANCE: Waikoloa up until about three months ago was using all of the beach resort <br />effluent for the two golf courses as a supplement to brackish irrigation water. DOH, and they <br />had been grandfathered in, it was R-2 quality water. And DOH three months ago said you can’t <br />do that any more, you need to convert to R-1. So at the moment that effluent is going into pit <br />disposal until means can be put in place either to convert to R-1, which is going to take a little <br />while, or to send the effluent to their disposal well. <br />BOWMAN: And -? <br />NANCE: At Mauna Kea R-2 effluent is used on their golf courses. <br />BOWMAN: And these are overhead or drip? <br />NANCE: They’re not drip, they’re spray. In both cases the effluent is not the major <br />component of the irrigation supply. It’s a relatively small amount compared to the total golf <br />course irrigation. <br />BOWMAN: And if Mauna Lani has to go to R-1, is that what you said could possibly <br />be an alternative? <br />NANCE: Well, if that was to go to the golf course or something that would utilize <br />spray it would have to be R-1. <br />BOWMAN: But that’s cost prohibitive? <br />EXHIBIT C <br />21 <br /> <br />