From: SG in Green Valley 85614                Date: Fri, August 17, 2007 3:19 pm

Dear Mr. Gabaldón,

First let me thank you for your hard work and efforts.

The prospect of having the CAP pipeline extended certainly would alleviate water worries.  However, I am not convinced that the cost would only be seven to fourteen million dollars, and the Augusta mining firm certainly does not appear to be volunteering more money, if necessary.

Moreover, I sincerely believe this region does not need yet another open pit mine. We have ongoing issues with the existing mines and their contamination of our water supply. Why don't we change the 1872 law that allows foreign companies to come in and take advantage of our wilderness areas. It is just too much for our growing (residential) community to contend with. Clouds of dust off the tailings regularly fill the air. I do not think they are good for our health. (And, of course, the mines are eyesores.) Hopefully we can find a different means to gain access to CAP water, rather than joining forces with a mining operation.

Sincerely, SG

Dear SG,

Thank you for your email about the pipeline project, your interest in water issues is appreciated. You raised some important points that I will try to address here. I apologize in advance for the length of this reply but the issues are complicated.

You had asked about the cost estimates. Within the last two years your water co-op has installed over seven miles of transmission mains to move water from the replacement wells to our reservoirs. The price of this pipe is consist with our experience and is based on estimates provided by a highly reputable engineering firm that has worked with us for many years. The staff of your co-op has been installing pipe since the 1960's. Your co-op has reliably operated the water system since 1977, and maintains over 130 miles of pipe in its existing water delivery system. I am confident that the estimates are reasonable.

The board of your co-op has been actively involved in the local water issues since it was formed 30 years ago as a not-for-profit co-op and has been carefully monitoring the aquifer situation. They have been proactive in protecting your interests by securing alternative water supplies, supporting and encouraging water planning, and keeping our members informed on the subject through our annual report to the members, many public meetings and countless newsletters.

There seems to be a misconception that Augusta Resources had approached the utility with some kind of deal. This is simply not the case. Your board instructed management to investigate and report on any developments that would impact our water supplies. Working to protect the interest of our customers and members, working with our consultants we approached Augusta after a careful study of the 1872 mining laws and learning that they were going to draw the water within a few miles of our existing wells. Your senators and congressional representatives are the ones responsible for any changes to the 1872 mining law.

In our discussions with Augusta we made clear that recharging water in Marana, about 30 miles downhill, was unacceptable, so we asked that they consider recharging locally. The benefit of local recharge is obvious.

Through careful negotiations they agreed that Community Water would receive cash up front for any construction projects, and Community Water would build and operate the water delivery system. In return, Community Water will make its CAP allocation available for local recharge in our area, a benefit to us because it puts our allocation to use. Augusta will also bring to the area excess CAP water that they planned to recharge in Marana. Community Water is not obligated to say anything about the mine. The cost of the project is not yet determined; we are still investigating the various options for the water delivery and recharge system.

Where are our elected representatives in the support of water to our area? The lack of leadership to foster the development of a realistic long-term strategy for a sustainable water supply in the entire Green Valley/Sahuarita area is the major water problem that has plagued the Green Valley/Sahuarita area for years.

If we fail to gain support for a pipeline to bring in renewable water supply when it is free, it will be harder to accomplish it when people will have to pay for it. Yet this pipeline is a key element for Community Water's strategic long-term plans for its sustainable water needs. We should not wait for our well to dry before we consider solutions.

As a member of the co-op your support is critical right now. This pipeline is a step in the right direction; it is a key element of our long-term strategy plan for a sustainable water supply.

Start today by making calls to your GVCCC HOA President and your Pima County Supervisor and encourage them to support the proposed pipeline project. Let them know that supporting a water delivery system can only help Green Valley residents with the environmental and economic benefit of a sustainable water source. Also, let your Governor and State representatives know that you consider water to Green Valley a priority that should have their attention and support.

Critics of the proposed extension argue that the building of the pipeline somehow “enables” the Rosemont Mine; this is absolutely false. Augusta Resource is currently under no legal obligation to recharge water anywhere in the Tucson area. They also already have the rights and the land to pump groundwater. They do not need this project to move forward for their mine to be approved. If someone can point to any regulatory requirement that will be met by Augusta funding the pipeline project, we would love to see it.

The bottom line is that this project does not assist the mine in gaining their needed approvals in any way, it is necessary for the health of our aquifer, and the project will be completed whether the Rosemont mine is approved or not. And no one has produced any evidence to the contrary. The consequences of the pipeline project not happening are that the mine will still draw an estimated 100,000 acre feet from the Green Valley/Sahuarita area and the mine will go back to its original plan and replenish 105,000 acre feet of water in Marana.

Sincerely,

Arturo Gabaldón President

Community Water Company of Green Valley