Ag Land Trust

(formerly Monterey County Agricultural and Historic Land Conservancy)

August 12, 2011

California Coastal Commission

Pale Blue and Brown — potential sea water wells and pipeline locations as extracted from Coastal Water Project FEIR Revised Figure 5-3

Yellow — Ag Land Trust (Monterey County Agricultural and Historic Land Conservancy) properties.

NOTE: EIR Revised Figure 5-3 provides only a generalized representation of the sea water well areas with no references to properties included within their boundaries. Precise spatial data was not provided by the applicant or available from the EIR preparer. This document was professionally prepared by a GIS Professional, using spatially accurate imagery, known physical features and property lines to provide a reliable representation of the Conservancy properties as they relate to the proposed sea well areas. Lack of access to the spatial data, if any, used in Revised Figure 5-3, has required some locational interpretation, which was performed using professional best practices.

The proposed construction and testing of this slant well is a

key component of a Water Purchase Agreement among the

three entities proposing the RDP. That agreement requires

that, prior to issuance of the Authorization of Construction for the

RDP to be issued by the California Public Utilities Commission,

MCWRA is to drill at least one vertical and one test slant well to

determine water quality and to help select the particular

combination of wells that will maximize seawater intake most

cost-effectively.2

Coastal Development Permit No. E-l 1-019 - Test Slant Well

July 28, 2011Page 10 of 32

2 See December 2, 2010 Water Purchase Agreement between Marina Coast Water District, Monterey County Water Resources Agency, and California-American Water Company, as approved by the California Public Utilities Commission.

Combined Staff Report

It is the position of MCWRA that the WPA, the Settlement Agreement dated April 6, 2010 by and among Cal-Am, MCWD and MCWRA and the ancillary agreements executed in connection with the WPA (including but not limited to the "Regional Desalination Project Management Agreement” dated January 11, 2011) are void

pursuant to California Government Code § 1090 et seq. and other applicable law as the result of the conduct of former MCWRA director Stephen Collins. The relevant factual and legal background pertaining to Mr. Collins' conduct is set forth in the "Summary of Preliminary Findings Regarding Director Stephen Collins' Business Relationship with RMC Water and Environment and Marina Coast Water District“ dated June 21,2011 issued by the law firm Remcho, Johansen & Purcell, LLP ("Remcho Report“).

July 7, 2011Pages 1 and 2

Letter from Monterey County Water Resources Agency attorneys Downey Brand

Water rights and associated agreements: The proposed wells would intersect an aquifer in an overdrafted groundwater basin. Please describe whether MCWRA or other entity will need to acquire water rights to use water from this source. If water rights are needed, please provide evidence demonstrating that MCWRA has obtained such rights or that it has the ability to acquire such rights (e.g., through eminent domain or other means). If water rights are needed but cannot be obtained, please describe how absence of those rights would affect this project- e.g., changes to the proposed well locations, designs, or operations, whether there are other feasible means to obtain source water, etc.

“The applicant shall provide proof of groundwater rights prior to development. Such proof shall be a recorded binding agreement showing legally valid groundwater rights, a recorded judgment, or a recorded settlement from a court or other appropriate body with the authority to establish or adjudicate groundwater rights.”

Additional condition requested by Ag Land Trust:

Section 922.132 Prohibited or otherwise regulated activities.

a. Except as specified in paragraphs (b) through (e) of this section, the following activities are prohibited and thus are unlawful for any person to conduct or to cause to be conducted:

4. Drilling into, dredging, or otherwise altering the submerged lands of the Sanctuary; or constructing, placing, or abandoning any structure, material, or other matter on or in the submerged lands of the Sanctuary, except as incidental and necessary to:i. Conduct lawful fishing activities;ii. Anchor a vessel;iii. Conduct aquaculture or kelp harvesting;iv. Install an authorized navigational aid;v. Conduct harbor maintenance in an area necessarily associated with a Federal Project in existence on January 1, 1993, including dredging of entrance channels and repair, replacement, or rehabilitation of breakwaters and jetties;vi. Construct, repair, replace, or rehabilitate a dock or pier; orvii. Collect jade pursuant to paragraph (a)(1) of this section, provided that there is no constructing, placing, or abandoning any structure, material, or other matter on or in the submerged lands of the Sanctuary, other than temporary placement of an authorized hand tool as provided in paragraph (a)(1) of this section. The exceptions listed in paragraphs (a)(4)(ii) through (a)(4)(vii) of this section do not apply within the Davidson Seamount Management Zone.

UNITED STATES CODE OF FEDERAL REGULATIONSTITLE 15, PART 922

NATIONAL MARINE SANCTUARY PROGRAM REGULATIONS