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interest in the water, the public resource that this aquifer holds, is that taken into consideration by <br />the permitting agency before they would actually issue a permit or when does that consideration <br />normally get taken? <br />NANCE: I let me tell you what the process is because I can't answer your question exactly. <br />We file a well construction/pump installation permit with the commission. It's processed purely <br />administratively although it gets noticed in the Water Commission's bulletin. We will have to <br />have passed any EIA, EIS, or SMA requirements before the permit will be issued. They'll <br />process the permit, but they won't issue it until we've got all the other approvals in line. But, <br />that approval of the permit, to my knowledge, does not take into account the public trust <br />doctrine. It takes into account the design of the well if it matches their standards, the potential <br />impact on other users, that kind of thing, but as far as my experience with the Water Commission <br />since it was created is that public trust issue does not come up in that process. <br />FUKE: And, so to supplement that, so maybe, it may be the role of the Planning Commission <br />and so, we've had discussions with your staff, you know, specifically on this issue, and that's the <br />reason why you know I had to ask Mr. Nance about like what percentage of water is this project <br />going to consume, you know, from the overall aquifer system, be it the Onomea system or the <br />Hilo, you know, aquifer system, and as was kind of pointed out, it's infinitesimally small. And, <br />so, if it were like, you know, they're taking about 50 percent of the overall resource, then I think <br />there would be some amount of concern, but this is way less that even one percent—you know, it <br />doesn't even reach one percent. <br />CLARKSON: I understand that. I'm justso, you're saying that basically the Planning <br />Commission is the one to decide whether the public, to look after the public interest, the public <br />trust, with regard to this water. There are no—let me just be clear—there are no withdrawal fees, <br />permit fees, ongoing fees where money would flow from the extractor of the water to the State <br />for the privilege of taking this water out of the ground. <br />NANCE: There are no such—there's a fee for the permit, and once you've done the well, you <br />must file a well completion report. No fee for them to review that. They will issue a pump <br />installation permit. As I said, we may have a free-flowing well. We may not need to install a <br />pump. But, the extraction, there is no fee paid to the State or County. <br />CLARKSON: No royalties? <br />NANCE: No, there's just an obligation to report what you're doing in terms of the amount <br />extracted and water quality parameters, but no fees. <br />CLARKSON: Thank you. Any further questions? <br />REPLOGLE: I it's not a question, but it's a statement I guess. So, it's my feeling and many <br />others that what you're doing is you're making use of an ecosystem service, like Mr. Fuke <br />pointed out that the water's going to come from the forest, percolate down into the well. The <br />people who are charged with taking care of those forests and preserving them and keeping, <br />keeping them healthy so they keep producing water are drastically underfunded if I might say, <br />EXHIBIT B <br />9 <br />