KOHALA RANCH WATER COMPANY NOTIFICATION

As a follow-up to our November 18, 2008 notice concerning the failure of Well No. 1, Kohala Ranch Water Company’s (KRWC) only remaining operating well (i.e., Well No. 2) unfortunately also failed on Saturday, November 22, 2008.  While we are still assessing the situation, our initial analysis indicates that the failure may be related to a problem with the impellers (aka, rotors) that push water from the bottom of the well to the surface, which is generally not repairable. 

Since the problem was identified on Saturday, Dan Bowles, our operations manager and his crew (Elsworth Emeliano and Dave Arbon) have been working around the clock to make sure we can continue to provide water service to you.  We appreciate your cooperation and positive response to their requests to limit water use. 

As a precautionary measure and in order to ensure that there is sufficient water for domestic or household uses by our customers, we immediately initiated the hauling of water from Kawaihae to the service area.  This water is being pumped into our reservoirs so water service can continue to be delivered to you through our distribution system.  We will continue this water hauling service until we have a well back in service. 

However, the amount of water that we can haul is extremely limited.  Therefore, in accordance with KRWC’s Rule III.2 (a copy of Rule III is enclosed), we will immediately begin instituting MANDATORY CONSERVATION measures including prohibition of the following activities:

1.                  watering of livestock;

2.                  irrigation of commercial crops;

3.                  landscape irrigation;

4.                  recreational uses (i.e., filling of swimming pools, spas, etc.); and

5.                  other uses, including vehicle washing.

KRWC will be strictly enforcing these conservation measures including, without limitation, initiating a program to read meters every two (2) to three (3) days or until water usage stabilizes at sustainable levels.  Customers that do not comply with the mandatory conservation measures may have their water shut off (without notice in times of emergency), pursuant to KRWC’s Rule III.3. 

Upon request and on a case by case basis, we will consider allowing the watering of livestock and irrigation of commercial crops consistent with the priority order set forth in KRWC’s Rule III.2, provided prior written authorization is secured from KRWC and we have determined that there is sufficient water to support such activities without adversely impacting the health and safety of the public.  Please contact Bill Moore, KRWC’s Vice President, if you feel you have special needs in this regard.

We are taking every effort to bring at least one of the wells (i.e., Well No. 1 or Well No. 2) back into service as soon as possible.  Until that time, the conservation measures, described above, will remain in effect.  We will provide updates to you as we obtain more information. 

We are working on a definitive schedule to get a well back into service.  There are a number of options, including:

1.                  Determining if the existing equipment in Well 1 is repairable; 

2.                  Expediting the replacement equipment that we already have on order, including air freighting the pump and motor from the manufacturing plant to Hawaii.

On Saturday, we mobilized a rig and began work on pulling the Well No. 1 equipment out of the well.  Once the equipment is out of the well, we will be able to determine if it is repairable.  If so, we will immediately initiate repairs and get the well back into operation as soon as possible. We will know if this option is viable by Wednesday, November 26, 2008. In addition, the pulling of the existing equipment out of the well will ensure that there will be no delays in installing the new motor and pump once it arrives. 

With respect to the equipment that we have on order (Option 2), in July 2008, KRWC decided that it was prudent to have a backup pump and motor on hand in the event of a problem with one of the existing wells.  Accordingly, it solicited competitive bids and on September 3, 2008, KRWC entered into a contract to purchase a pump, motor and related equipment.  In ordering the replacement equipment, we specified that it must be landed in Hawaii by mid-December 2008 or approximately 3-1/2 months from placing the order.  For your information, pumps and motors for deep wells - generally over 1,000 feet in depth - are custom built by the manufacturer and generally require four (4) to six (6) months to complete. 

We have been working with the manufacturer to expedite completion of the motor and pump.  Based on discussion with the manufacturer, the assembly and testing of the equipment could be completed as early as next week.  At that time, if the existing Well No. 1 pump and motor is not repairable, we will air freight the pump and motor to Hawaii. 

We have also explored the option of “borrowing” equipment from other water providers, including the County of Hawaii, Department of Water Supply.  However, at this time, there are no viable options available to us from these water providers.

As soon as we have more information on the status of the reparability of the existing Well 1 equipment, we will provide you with a status update.

We recognize that this unfortunate situation has caused a tremendous inconvenience to you, especially during the start of the holiday season.  Again, we will be and are doing everything possible to ensure that water will continue to be available for your domestic or household needs and to bring a well back online as soon as possible.  We appreciate your understanding and cooperation in working with us.  Your response has been incredibly positive as we work through these difficult times. 

Please feel free to call Bill Moore at (808) 987-7336 or email him at if you have any questions or require any further information on this matter.