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        4                STAKEHOLDERS EVALUATION GROUP

        5

        6                           MEETING

        7                             OF

        8                        JULY 10, 2007

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       12               MIGHTY EIGHTH AIR FORCE MUSEUM

       13                       POOLER, GEORGIA

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        1

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        3                          I N D E X

        4

        5

        6     OPENING REMARKS AND INTRODUCTIONS -------------   3

        7

        8     UPDATE PRESENTATIONS

        9         Model Update - Bill Bailey ----------------  18

       10         Economic Analysis Update - Hope Moorer ----  18

       11         Milestones Update - Hope Moorer -----------  21

       12         Chloride Update - Bill Bailey -------------  46

       13         Injection System Update - Hope Moorer ----- 107

       14         Operating Guidelines Update - Will Berson - 114

       15

       16     COMMITTEE REPORTS ----------------------------- 137

       17

       18

       19     CERTIFICATE ----------------------------------- 145

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        1     MODEL UPDATE

        2              (THE REPORTER:  I am appearing here today

        3         on behalf of my employer, Tom Crites &

        4         Associates.  My office was requested by Georgia

        5         Ports Authority's office to provide a court

        6         reporter today at 9:00 a.m. at this address.

        7              Pursuant to the laws of Georgia, as well

        8         as the instructions of my employer, I wish to

        9         disclose that, other than accepting to serve as

       10         your reporter, we have not entered into any

       11         other contractual agreement with any party

       12         involved in this case.)

       13              MR. DYSART:  Good morning.  As we speak,

       14         the agendas are being copied, will be here

       15         momentarily.  Let's call the meeting of the

       16         Stakeholders Evaluation Group to order, and the

       17         first thing I'd like to do is have

       18         introductions.

       19              If you would go around the room and give

       20         your name and your affiliation, that would be

       21         appreciated.  Bill, why don't you start?

       22              MR. BAILEY:  Bill Bailey, Corps of

       23         Engineers.

       24              MR. FARMER:  Bill Farmer, self.

       25              MR. EUDALY:  Ed Eudaly, Fish and Wildlife




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        1     MODEL UPDATE

        2         Service.

        3              MR. ROBINETTE:  John Robinette, Fish and

        4         Wildlife Service.

        5              MS. GRIESS:  Jane Griess, Fish and

        6         Wildlife Service.

        7              MS. MOORE:  Kelie Moore, Georgia

        8         Department of Natural Resources, Coastal

        9         Resources Division.

       10              MS. RADA:  Melissa Rada, South Carolina's

       11         Coastal Resources.

       12              MR. JOYNER:  Curtis Joyner, same division

       13         of DHEC.

       14              MR. KYLER:  Dave Kyler, Center for a

       15         Sustainable Coast.

       16              MR. BARRETT:  Tim Barrett, Georgia DNR.

       17              MS. VAUGHN:  Cathy Vaughn, Georgia Ports

       18         Authority.

       19              MR. REES:  Morgan Rees, consultant for

       20         GPA.

       21              MR. SCHALLER:  David Schaller, Georgia

       22         Ports Authority.

       23              MR. KEEGAN:  Larry Keegan, consultant for

       24         GPA.

       25              MS. MOORER:  Hope Moorer, Georgia Ports




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        1     MODEL UPDATE

        2         Authority.

        3              MS. CALVIN:  Elizabeth Calvin, Georgia

        4         DNR.

        5              Mr. Fleming:  Joel Fleming, Georgia DNR,

        6         Coastal Resource Division.

        7              MR. BERSON:  Will Berson, The Georgia

        8         Conservancy.

        9              MR. DYSART:  Ben Dysart, SEG Facilitator.

       10              MR. SCANLON:  Bob Scanlon, City of

       11         Savannah.

       12              MS. BOWERS:  Gail Bowers, League of Women

       13         Voters.

       14              MR. WRIGHT:  Tom Wright, Georgia citizen.

       15              MS. COLLINS-RAHN:  Lucille Collins-Rahn,

       16         georgia Sierra Club.

       17              MS. JENNINGS:  Judy Jennings, Georgia

       18         Sierra.

       19              MR. DYSART:  Okay.  Welcome.  We have a

       20         nice turn-out this morning, and as the copying

       21         is being done at this moment, fortunately, Bob

       22         Scanlon has printed up a copy and has one here.

       23              Let me suggest that we work on the record

       24         or the transcript from the May meeting.  It has

       25         been posted.  You've had the opportunity to




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        1     MODEL UPDATE

        2         review it, and are there any suggestions, or

        3         changes, or corrections, that need to be made

        4         on the record?

        5              Seeing none and knowing of none, we will

        6         consider that the transcript, as posted, of the

        7         May meeting stands correct and approved by this

        8         body.

        9              Let's kind of adapt here a little bit, and

       10         we will assume that there's not going to be a

       11         lot of consternation about wanting to change

       12         the agenda, when it gets here in a couple of

       13         minutes, and the first thing that's been

       14         recommended for presentation to the group today

       15         is the model update by the Corps.  Bill, are

       16         you going to presenting that?

       17              MR. BAILEY:  I guess so, yes.  Let's see,

       18         we are still -- still running the models,

       19         primarily looking now at mitigation options and

       20         the effects of those.

       21              That work is -- we met with the agencies,

       22         and we'll probably talk about that in a little

       23         bit, but met with agencies last month to review

       24         where we were, the information we've got so

       25         far, and they gave us some guidance on some




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        1     MODEL UPDATE

        2         other information they would like.

        3              So we are running the models to produce

        4         that information.  So it's still a work in

        5         progress.  I'm not sure there's much more I can

        6         say.

        7              MR. DYSART:  Okay.  Any comments or

        8         questions, Judy Jennings, please.

        9              MS. JENNINGS:  I heard the not much more

       10         you can say part, but is there really nothing

       11         else you can say, because this is kind of like

       12         what we've been doing all this time?

       13              I mean, I had a call or two from people

       14         last week who don't come to the meetings.  I'm

       15         at an absolute loss to be able to say, you

       16         know, if we deepen to 45 feet the striped bass

       17         may be better, or here's a way to make them

       18         better, or they might not be hurt.

       19              You know I'm -- you know, we've had the

       20         pictures.  But, you know, very specifically I'm

       21         still pretty much in the dark about impacts at

       22         various depths, and the mitigation options, and

       23         what the impacts of those mitigation options

       24         would be.

       25              And I'm wondering where the M to M glitch




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        1     MODEL UPDATE

        2         got, and are we totally comfortable that we

        3         understand what the salinity across the marsh

        4         would look like under all the scenarios?  I

        5         mean, I just got a string of questions just

        6         start there.

        7              MR. BAILEY:  Just to start there, okay.

        8         We --

        9              MS. JENNINGS:  I'm clueless, I'm really

       10         pretty clueless.

       11              MR. BAILEY:  We have reports.  The impact

       12         reports are in the process of being posted to

       13         the public website, and I don't know the status

       14         of that.  I know I haven't put everything up

       15         there yet for Larry to work on.

       16              MR. KEEGAN:  That's all I need is the last

       17         few files and then we'll have that ready to be

       18         done.

       19              MS. MOORER:  That's what I had my card

       20         ready for.  Judy, all those are being worked on

       21         getting posted on the public website.  And no

       22         interpretation, essentially, of those, just the

       23         reports that have the runs, and you can look at

       24         the runs, essentially, and what they show.

       25         Okay.




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        1     MODEL UPDATE

        2              MR. BAILEY:  The information that we

        3         shared with the agencies, and those agencies

        4         talked about last month, that's going to be up

        5         on the public site within the next week anyway.

        6              MS. MOORER:  Yeah.  Larry's trying to

        7         format them and get them up there.  They're

        8         huge reports, so --

        9              MR. BAILEY:  So that's the information of

       10         impacts, and the effects of the mitigation

       11         plans that we've looked at so far.

       12              The agencies gave us suggestions of

       13         another -- either other ways to look at the

       14         data that they want to see it, or other what I

       15         would consider to be tweaks in the models,

       16         other tweaks in flows and things that we --

       17         that was suggested that we look at.

       18              It may help, it may not, but we can run

       19         it through the model and see.  I don't know if

       20         that helps some of your questions you have.

       21         I'll try and address all of them.

       22              MS. JENNINGS:  Has there been any changes

       23         to this schedule, in terms of the model runs?

       24              MR. BAILEY:  We're still trying to produce

       25         them as fast as we can.  They always take




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        1     MODEL UPDATE

        2         longer than we want.  So I'm not sure, in that

        3         sense, there's been a change.

        4              We're trying to produce, trying to get to

        5         the end as soon as we can, but doing all the

        6         work we need to do -- doesn't help a whole lot.

        7              You asked about M to M.  I think, I guess

        8         as far as I'm concerned, that decision has been

        9         made, and we're -- we're not using the M to M

       10         to look at mitigation plans that reroute flows,

       11         because the M to M just didn't handle that

       12         well.

       13              MS. JENNINGS:  Okay.  Isn't that a change

       14         from the answer we had last meeting?

       15              MR. BAILEY:  I don't think so.

       16              MS. JENNINGS:  I thought you decided last

       17         time, that even though that that didn't -- that

       18         there was a glitch that you were going ahead to

       19         use it.  The glitch wasn't big enough to stop

       20         it.

       21              MR. BAILEY:  We said we'd look at the M to

       22         M, what the M to M predicted without

       23         mitigation, and use that, and then compare it

       24         to what he hydrodynamic model predicted without

       25         mitigation.  But once you got into looking at




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        1     MODEL UPDATE

        2         mitigation things, the M to M doesn't work

        3         well.

        4              MR. DYSART:  Do you have any follow-ups,

        5         Judy?

        6              MS. JENNINGS:  No.  I think I might have a

        7         lot of questions, if I had, you know, access to

        8         some give and take, after looking at the impact

        9         reports.

       10              MR. BAILEY:  Okay.

       11              MR. DYSART:  Hope.

       12              MS. MOORER:  I also think, Judy, on the

       13         website they have posted those scenarios of

       14         mitigation plans.  Those are on there.  Look at

       15         those too, and all these reports that Bill is

       16         having posted up there.  That will probably

       17         help you in knowing what to ask Bill too, you

       18         know, because it's a lot of data that we're

       19         trying to get out there.

       20              The agencies wanted to see it first, and

       21         then we're trying to get it out there for the

       22         public now.  You also asked about the schedule

       23         of things that changed.  As you know, at the

       24         interim SEG meeting --

       25              MS. JENNINGS:  But I was thinking that




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        1     MODEL UPDATE

        2         question was very specifically aimed at impact,

        3         input feedback on the model runs about impact.

        4              MS. MOORER:  Right.

        5              MR. DYSART:  Were you through, Hope?

        6              MS. MOORER:  Yes.

        7              MR. DYSART:  I thought you got right in

        8         the middle of a sentence.

        9              MS. MOORER:  I was.  That's okay.

       10              MR. DYSART:  Okay.  I like periods at the

       11         end.  Other questions, comments about -- John

       12         Robinette.

       13              MR. ROBINETTE:  Yeah.  Judy you were

       14         asking about schedule changes.  There has been

       15         one schedule change.  The coordination act

       16         report has been -- the deadline has been moved

       17         up from January to November.

       18              So our comments will -- that period has

       19         been shortened on that.  I don't know if DNR is

       20         aware of that, but we'll have to get it --

       21              MS. JENNINGS:  What -- how much of a

       22         change was that, John?

       23              MR. ROBINETTE:  What was it, Ed, three

       24         months?

       25              MR. EUDALY:  About three months.




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        1     MODEL UPDATE

        2              MR. FLEMING:  That's the --

        3              MR. DYSART:  Go ahead.

        4              MR. FLEMING:  That's the comments on the

        5         mitigation?

        6              MR. ROBINETTE:  Correct.

        7              MR. FLEMING:  Okay.

        8              MR. DYSART:  Judy.

        9              MS. JENNINGS:  Okay.  I'm just trying to

       10         get a time line here.  I'm sorry, this might

       11         have been on the front page of the newspaper.

       12         I apologize for wasting peoples' time, but the

       13         agency meeting you mentioned, when was that?

       14         You said agency guidance, when did you -- how

       15         much give and take is there?

       16              MR. BAILEY:  The 20th and 21st of June.

       17              MS. JENNINGS:  Of June.  Okay.  Why was

       18         there -- I mean, I don't know.  I mean, I just

       19         know the agencies are pretty busy and not

       20         enough people ever for all they might want to

       21         do.  Was there a reason for that, that change?

       22              MR. BAILEY:  I'm not sure.

       23              MS. JENNINGS:  Well, one of the reasons

       24         that I ask about the impact reports is I think

       25         they're important to the SEG, because I'm not




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        1     MODEL UPDATE

        2         in that room, but in this room the experts are

        3         here.

        4              You know, I'm just curious.  Joel, you

        5         asked about that change.  You know, do you feel

        6         -- do you feel, I mean, do the agencies feel

        7         comfortable with this time frame for feedback?

        8              MS. MOORER:  Before you go on, the

        9         schedule changes, to answer one question.

       10         We're done, after following IPR, and I had a

       11         part on here to talk about schedule changes,

       12         the milestone changes.

       13              The in-progress review, which will be

       14         reported on in the meeting, it's on the agenda,

       15         the memorandum for record, which is the

       16         official minutes of the meeting have not been

       17         completed yet.

       18              Based on that it will change -- make

       19         changes to our schedule because of at what

       20         point the Corps wants to see the document, and

       21         how much the review the document has to go

       22         through, before it's released to the public.

       23              So we're trying to work the schedule

       24         according to that new memorandum for record

       25         that will coming out finalized.




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        1     MODEL UPDATE

        2              In addition to that, trying to keep the

        3         schedule in a time frame as good as we can to

        4         meet what we had previously.  Because of the

        5         changes of sequence, of what the Corps was

        6         looking for in their process, having the ASB

        7         when the report was 90% complete instead of

        8         when the report was 50% complete, it adds a lot

        9         of time into the schedule.

       10              It could add reviews in front of that,

       11         reviews after that, all for process.  So the

       12         schedule is not finalized.  It's a work in

       13         progress.

       14              And the schedule that came out was one for

       15         the PDT, the project delivery team, to review

       16         to see if we could meet that schedule.  So we

       17         are still working on the schedule.

       18              And if the agencies cannot meet it, I mean

       19         this is a goal.  This is something we're trying

       20         to do.  If the agencies have a problem and

       21         cannot meet it, that's why that schedule was

       22         put out there for discussion.

       23              We're just trying to be as efficient as we

       24         can with the schedule, while meeting all the

       25         requirements that we have to meet from the




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        1     MODEL UPDATE

        2         Corps, from the agencies, and from everyone

        3         else.

        4              So no it's not final.  It's not some new

        5         big change.  If you look at the previous

        6         schedule, it's about the same one.  After the

        7         ITR pushed it out an additional year, we're

        8         looking at ways to manage the Corps process,

        9         and push it back to where it was previously,

       10         the index.

       11              MS. JENNINGS:  The IPR stands for what

       12         exactly?

       13              MS. MOORER:  In-progress review.

       14              MR. DYSART:  Ed.

       15              MS. JENNINGS:  I though independent peer

       16         review -- in-progress review.

       17              MR. EUDALY:  Yeah, we'll do the best we

       18         can to meet the requested schedule.  But, you

       19         know, a lot of that is contingent on completing

       20         the model runs.

       21              I think the current schedules shows all

       22         the mitigation runs being completed by late

       23         July, early August, somewhere in that time

       24         frame.

       25              It's going to be a tight schedule, and




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        1     MODEL UPDATE

        2         we're just going to do the best we can.  I

        3         mean, we've been involved in this for a long

        4         time which helps.  You know, we do have to

        5         coordinate with the states, our reports, before

        6         we give it to the Corps, so that will give us

        7         another little constraint there to deal with.

        8              But it has been moved up some.  We're

        9         going to do the best we can to meet it.  As I

       10         said, the main factor is getting the

       11         information we need in time.  If that -- if

       12         that becomes delayed, then our report becomes

       13         delayed too.

       14              Until we see that, it's hard to know

       15         exactly what we're dealing with.  We've seen

       16         some of it but not all of it.  But I will, you

       17         know, I acknowledge the schedule changes

       18         frequently both directions.  So right now it's

       19         a moving target, I guess you would say.

       20              MR. DYSART:  Okay.  Thank you.  Further

       21         comments?  Okay.  You've had an opportunity now

       22         to look at the agenda.

       23              If there's anything that you wish to

       24         change or to move around in the schedule, or to

       25         add, or what not; let's discuss that now.




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        1     ECONOMICS ANALYSIS UPDATE

        2              Seeing no request to do so, we'll consider

        3         that the agenda, as now circulated, is

        4         acceptable for conduct of the meeting today and

        5         we'll move on.

        6              Next economic and analysis of -- economic

        7         analysis update.  Bill Bailey.

        8              MR. BAILEY:  Except for that, there's no

        9         one here, from the Corps, that can give an

       10         economics analysis update.

       11              MR. DYSART:  Okay.  So we'll just move

       12         that forward to the next meeting.  Okay.  Hope.

       13              MS. MOORER:  I saw Alan late yesterday

       14         afternoon.  He was going to try to get here.

       15         He's having some problems with the air

       16         conditioning equipment in his house.

       17         Obviously, he didn't make it, so he would have

       18         been the one to have gotten the update from the

       19         Mobile District.  So I'm sorry about that, but

       20         he will be the one to provide that.

       21              Of course, Mobile will be here when --

       22         they're still in data collection mode.  We just

       23         finished another year's analysis of data

       24         collection and going to send that to them.  So

       25         there's one more year to go.




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        1     ECONOMICS ANALYSIS UPDATE

        2              They are in the process of inputting data

        3         into the model still.  So -- and I can mention

        4         a little bit about the passing lanes.  This is

        5         another -- this is another requirement, out of

        6         that in-progress review, and something that

        7         could impact the schedule depending on how long

        8         it takes to assemble the data for this model.

        9              What it is is in looking at areas that --

       10         these aren't really so much passing lanes

       11         because passing lanes are really much longer --

       12         they're like meeting areas.

       13              The channel right now, a post-Panamax

       14         vessel and a Panamax vessel can pass, meet, and

       15         get by each other.  But two post-Panamax

       16         vessels cannot pass.

       17              And so they were evaluating areas, within

       18         the channel, the pilots requested that areas be

       19         evaluated where two post-Panamax vessels could

       20         pass.  That would -- additionally, the Corps

       21         has to look at incremental justification,

       22         whether the cost of those meeting areas is

       23         justified by the benefits that you gain from

       24         them.

       25              And so that's what this analysis is about.




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        1     ECONOMICS ANALYSIS UPDATE

        2         Morgan, correct me if I'm not explaining it

        3         properly, because Morgan knows much more than I

        4         do.  But that's what the analysis is about.

        5              The Mobile district right now is --

        6         there's one already included in the design,

        7         that they're having to analyze, and there's one

        8         other area the pilots requested looking at

        9         close to the turning basin as well.

       10              And they're having to -- they use a model

       11         called Harbor-Sim.  And they build into this

       12         model, the Corps does, the entire harbor,

       13         length across, docks, how a boat -- what kind

       14         of traffic comes to each dock, and the number

       15         of ships that call on the port.

       16              It takes a while to input this data in.

       17         That's what the Mobile District is working on

       18         now, inputting this data for this model and

       19         collecting data for this model.

       20              Then they will do an analysis to see if

       21         that -- if the passing lane is justified on an

       22         economic standpoint.

       23              MR. DYSART:  Any questions on Hope's

       24         update?  John.

       25              MR. ROBINETTE:  Yes.  Did you say they had




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        1     MILESTONES UPDATE

        2         Another year -- they're going to gather another

        3         year's worth of data for the economic analysis?

        4              MS. MOORER:  No.  We've been working on

        5         that update for a while.  The economic analysis

        6         ended, that was contracted to GEC, the company

        7         that did the economic ended in 2003.  Since

        8         this report, it's taken a lot longer than 2003

        9         to complete.  The Corps has to have recent data

       10         into the economics.

       11              With the Panama Canal changes, that's

       12         being updated into it as well.  So Cathy Vaughn

       13         and myself have been gathering ship movements,

       14         number of ships movements, what size ships,

       15         where they're going to, putting that into a

       16         database to send to the Corps to put into the

       17         benefits, from the pilot's part.  So --

       18              MR. DYSART:  Hope, why don't you just

       19         continue and let's move on to the schedule

       20         milestone updates.

       21              MS. MOORER:  Okay.  I've kind of touched

       22         on that.  As I said, the in-progress review --

       23         oh, I'm sorry.

       24              MR. DYSART:  Judy had her card up.

       25              MS. JENNINGS:  And I want to hear Hope's




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        1     MILESTONES UPDATE

        2         report.  Looking at the agenda, I'm not sure I

        3         see any other place to ask this question.

        4              But I think, I guess it does get plugged

        5         into the economics somewhere.  Has the Corps

        6         made a decision about how it intends to deal

        7         with the Jasper port proposal?

        8              I mean, I realize it probably doesn't fit.

        9         I guess it's got to be in economics somewhere.

       10         I know the part we were waiting on, we were

       11         waiting on Washington to make a decision on

       12         that.

       13              MR. BAILEY:  Yeah.  What's your guess on

       14         how well that worked out?

       15              MS. JENNINGS:  Bet you haven't heard from

       16         Washington yet.

       17              MR. BAILEY:  I think we can talk about it

       18         in about new business in-progress review,

       19         because we did talk about it during that

       20         meeting.

       21              MS. JENNINGS:  Okay.  That's a good place.

       22              MR. DYSART:  Hope.

       23              MS. MOORER:  Schedule milestones?

       24              MR. DYSART:  Please.

       25              MS. MOORER:  In-progress review that




                                                                23



        1     MILESTONES UPDATE

        2         Bill's talking about, and what we discussed

        3         at the interim SEG meeting a little bit is that

        4         a lot of directives that were coming out of

        5         that meeting from the Corps' headquarters,

        6         according to new policy at headquarters or

        7         leadership opinion, that certain things had to

        8         be done, how we approach the Jasper terminal.

        9              The passing lane analysis has to be done.

       10         At the alternative formation briefing, which is

       11         another step you have to go through before you

       12         release your report, they wanted to see it at

       13         a certain percent complete, instead of at an

       14         earlier stage in the whole report process.

       15              And so all of these things, we're waiting

       16         on a final memorandum for record, or the final

       17         approved minutes of that meeting for the

       18         guidance, to determine okay, how does this

       19         impact the schedule.

       20              And that's what we've been working around

       21         with the schedule trying to work with it,

       22         guessing what will be in those final minutes,

       23         trying to determine how it impacts the

       24         schedule, where we should add time, where we

       25         should try and make up time.




                                                                24



        1     MILESTONES UPDATE

        2              Essentially so right now with the

        3         milestones, we should have that hopefully -- we

        4         were supposed to have that a couple of weeks

        5         ago, the final minuets, but we should have

        6         those minutes soon.

        7              We'll update the milestones, post a pdf

        8         version of the updated schedule according to

        9         those final minutes.  If you would like, we can

       10         even send an e-mail out so that everybody knows

       11         it has been posted.  That's easy enough.  We

       12         can do that so you know to go look for it.

       13              MR. DYSART:  Steve.

       14              MR. WILLIS:  I don't know if this has been

       15         addressed some other time, but the LNG

       16         development plans, my understanding is that,

       17         you know, the traffic not only will potentially

       18         be larger ships, with the new turning basin

       19         area, lots more activity, but the ships could

       20         be like daily instead of like once or twice a

       21         week.

       22              And if that happens, considering the

       23         special handling that LNG ships require, it

       24         seems that's like going to have a huge impact

       25         on the economic analysis, and traffic analysis,




                                                                25



        1     MILESTONES UPDATE

        2         everything.

        3              It just seems like that -- that would be

        4         like required overhaul of all the work that's

        5         been done.

        6              MS. MOORER:  Can I answer that, Ben?

        7              MR. DYSART:  Sure.

        8              MS. MOORER:  Part of the updates, as I

        9         said with the economics being completed,

       10         contracted much earlier than 2003 and completed

       11         in 2003, most of the GEC work on fleet forecast

       12         and things like that, commodities forecast and

       13         things like that, a lot has happened since that

       14         time just in the world of shipping and in the

       15         industry.

       16              So that's one of the things in Savannah

       17         that will impact traffic and cargo.  And so the

       18         Corps hired, and we reported on this before, I

       19         think, the Corps hired the New England District

       20         to do the LNG analysis, how that impacts the

       21         economics.

       22              And so the New England District has done

       23         the update of that, the analysis of that.  They

       24         have done the analysis, I think, the New

       25         England District on Boston Harbor too.  That's




                                                                26



        1     MILESTONES UPDATE

        2         why they were selected to do the analysis.

        3              MR. WILLIS:  They're doing it?

        4              MS. MOORER:  Uh-huh.  That would be part

        5         of economics, an update kind of on the Panama

        6         Canal, because the Panama Canal expansion vote

        7         took place in October.

        8              They approved the expansion of the canal

        9         to handle different classes, larger classes of

       10         ships.  That would impact the East Coast trade

       11         as well, which does impact our economic

       12         analysis.

       13              That had been completed, so the Mobile

       14         District is updating, looking at that, how does

       15         that impact the East Coast trade.

       16              But you're right.  A lot of economics had

       17         to be updated over the past year, two years.

       18              MR. WILLIS:  Seems like the traffic impact

       19         would be extremely significant.

       20              MS. MOORER:  It impacts traffic, but it

       21         also -- the way it impacts traffic now is that

       22         there's a very small window at which the LNG

       23         vessels can travel.

       24              So with tidal limits and restrictions on

       25         the vessels, if you have lesser tidal




                                                                27



        1     MILESTONES UPDATE

        2         restrictions on vessels, you have more times at

        3         which other ships can travel.  So there are

        4         impacts, but they're -- go down bad when you

        5         have more vessels traveling -- it can be bad.

        6              If you can get a deep channel, then you

        7         have more times at which other ships can

        8         travel.

        9              MR. DYSART:  Judy.

       10              MS. JENNINGS:  This is a snicklet.

       11         Actually, I was listening to CNN one day last

       12         week, and Anderson Cooper did a show on LNG.

       13         The Coast Guard is not here today, are they --

       14         no, but they featured Commander Jim McDonald.

       15         Oh, I got so excited, when I knew they were

       16         going to interview the Corps -- that's got to

       17         be Jim McDonald.  He's the captain of the port

       18         in Boston now.  So they interviewed him rather

       19         extensively about LNG in Boston.

       20              Anyway, Commander James McDonald, and I'm

       21         going that's Jim, that's Jim.  Boston clearly

       22         is a somewhat different situation than

       23         Savannah.  It's so exciting to see our old

       24         friend Jim on CNN -- just a snicklet.

       25              MR. DYSART:  Did you have further




                                                                28



        1     MILESTONES UPDATE

        2         information on the update, so forth, Hope?

        3              MS. MOORER:  No.  I think if anybody has

        4         any questions, what we can do, since it's still

        5         such in flux, hopefully it still looks like we

        6         could get a draft report out after the first of

        7         the year, depending, of course, on when the

        8         model runs and analysis are complete.

        9              It looks likes, hopefully, we could do

       10         that.  That's the goal.  And then on from there

       11         for signatures and such, so --

       12              MR. DYSART:  Joel.

       13              MR. FLEMING:  Just for clarification, I

       14         may have heard incorrectly.  Did you say

       15         they're going to do an alternative analysis

       16         again.

       17              MS. MOORER:  No.  It's called -- I'll let

       18         Morgan talk about it -- it's called an

       19         alternative formulation briefing.  It's a step

       20         in the Corps process of when you are writing,

       21         and this is my interpretation.  I'll let Morgan

       22         finish it.

       23              When you are writing the report, it's to

       24         get the blessing of Corps' headquarters that

       25         you have everything, in your draft report,




                                                                29



        1     MILESTONES UPDATE

        2         before you release it to the public.

        3              MR. REES:  That's a good bottom line.

        4         It's to make sure that you've taken a hard look

        5         at each of the reasonably potential

        6         alternatives to your plan.

        7              MR. FLEMING:  We go back to the report

        8         that was issued several years ago, the

        9         alternatives --

       10              MR. REES:  Project alternatives --

       11              MS. MOORER:  That would be --

       12              MR. FLEMING:  Those things, obviously,

       13         those figures have, obviously, changed to a

       14         great extent.

       15              MR. REES:  They just want to be sure you

       16         don't put out a report, and somebody says,

       17         well, you didn't look at this.  This could work

       18         as well.  So it's, essentially, a headquarters'

       19         blessing you have looked at everything.  Don't

       20         ask me why they call it an alternative

       21         formation briefing.

       22              MR. FLEMING:  Okay.

       23              MR. REES:  That term came along after I

       24         left the organization, so I don't know why that

       25         term.




                                                                30



        1     MILESTONES UPDATE

        2              MR. FLEMING:  The only reason I ask is

        3         going back to the alternatives report, those

        4         mitigation costs have dramatically increased by

        5         10 fold, in some areas.  I didn't know if those

        6         are going to be reevaluated or not.

        7              I mean, I think for striped bass, at one

        8         point in time, that cost was extremely low in

        9         some of the alternative -- in that alternative

       10         report when you looked at mitigation cost,

       11         dredging at certain depths, to the plan report

       12         versus some of the others.

       13              And that's -- I know we were talking about

       14         Jasper County port and those types of things.

       15         Those really weren't that far off.  With an

       16         increase in mitigation costs, they certainly

       17         could make a difference in the overall

       18         alternative report.

       19              MR. BAILEY:  I'm not sure -- we can go

       20         back and look at those again.

       21              MR. DYSART:  Will Berson.

       22              MR. BERSON:  I've been sitting here

       23         thinking about the dumbest question I could

       24         possibly ask today and I've come up with one.

       25         There may be somebody else who wants to know




                                                                31



        1     MILESTONES UPDATE

        2         the answer too, so --

        3              MR. DYSART:  We will withhold judgment

        4         until the end.

        5              MR. BERSON:  When in all of this is it

        6         decided, and when will we know; are we talking

        7         44, 46, 48, because all the mitigation stuff

        8         flows out of that decision.  And I've never

        9         really been clear when that happens.

       10              MR. BAILEY:  I -- my answer is the Corps

       11         makes that decision when the last person at the

       12         Corps signs his name on the document.  That's

       13         -- up until then, people are -- you're

       14         accepting different peoples' opinions.

       15              MR. BERSON:  So It's not until the DEIS is

       16         released that we'll know what the depth is of

       17         the project?

       18              MR. BAILEY:  The draft EIS will contain an

       19         evaluation of all the depths.  There will be

       20         mitigation plans for all the depths, each of

       21         the depths.

       22              MR. BERSON:  But there won't be any

       23         discussion about your choice until that

       24         document is released; we'll have to go get it

       25         and read it?




                                                                32



        1     MILESTONES UPDATE

        2              MR. BAILEY:  We're talking now, we've been

        3         talking for years.

        4              MR. BERSON:  I know we have.  I have no

        5         idea when --

        6              MS. MOORER:  It's hard to follow in the

        7         schedule too, because you have mitigation plan

        8         development on one, you have plan formation,

        9         which is the economics, and the comparison of

       10         the depth and all.

       11              It's looking like about October on this

       12         schedule.  This will give some idea, like

       13         mitigation plan finished in August.  The NED

       14         plan selection two months later in October.

       15         Then it's got -- and then there's a public

       16         meeting between like where the mitigation plan

       17         is drafted, essentially, when it is kind of

       18         coming down to what the mitigation plans looks

       19         like going to be.

       20              It's about that same time that there will

       21         be a public meeting to show impacts and

       22         mitigation.  That's been in the schedule.

       23         okay.  And then the NED plan selection is

       24         around that time as well, because the economics

       25         feeds into that too.




                                                                33



        1     MILESTONES UPDATE

        2              Unfortunately, what we see with the

        3         schedule is if anything pushes out that NED

        4         plan selection pushes out, they all feed into

        5         that.  That will be done prior -- when the

        6         draft comes out, it will all be in there.

        7              MR. BERSON:  Okay.  So then when you do

        8         the public meeting, it will be sort of Chinese

        9         menu, under 44, under no project this, 44 is

       10         this, 46 is this, and 48 is that, but no

       11         choices will be indicated.

       12              MR. BAILEY:  There will be a tentatively

       13         recommended plan.

       14              MR. BERSON:  At the public meeting?

       15              MR. BAILEY:  In the draft, the draft EIS.

       16              MR. BERSON:  If the draft isn't coming out

       17         until the first of the year, and the public

       18         meetings are before that --

       19              MR. BAILEY:  There is -- that is --

       20         there's a public meeting.  There's a normal

       21         public meeting that's held during the period of

       22         review of the draft document.

       23              MR. BERSON:  Yes.

       24              MR. BAILEY:  For this project, we're

       25         having another public meeting before the draft




                                                                34



        1     MILESTONES UPDATE

        2         document.  At that point I'm not sure if we'll

        3         -- how well things will come together, but

        4         we'll have the different plans, and the impacts

        5         for each plan, figured out and be able to say

        6         what they are.

        7              We may not have the economics, and the

        8         costs, the financial costs figured out yet.  I

        9         don't know.  I don't know if we are going to

       10         have a tentatively recommended plan at that

       11         first public meeting.

       12              MS. MOORER:  From what I understood, that

       13         was the plan with Mobile to put it so there was

       14         still time for input into mitigation, and what

       15         impact runs were showing.  So before it went

       16         into selection, there was going to be a meeting

       17         to show what impacts at different depth, and

       18         mitigation plans at different depths, before

       19         you went into final plan selection, to provide

       20         an opportunity for does anybody see anything

       21         else, anything wrong with it.

       22              MR. BERSON:  Somehow that's kind of -- I

       23         mean, I would have expected to have known what

       24         the project was, prior to January, and in a

       25         sense we won't.




                                                                35



        1     MILESTONES UPDATE

        2              MS. MOORER:  I -- I don't know.

        3              MR. BERSON:  See, I told you it was a dumb

        4         question.

        5              MR. DYSART:  Morgan.

        6              MR. REES:  This goes back to just a brief

        7         comment back to Joel's question earlier about

        8         the changes in mitigation costs and all.  I

        9         hope everybody realizes that what is being

       10         worked on is a GRR, general reevaluation report

       11         which means everything in the previous reports

       12         is being reviewed, changed as needed, and

       13         there's nothing in the old report that's being

       14         adopted, unless it's been scrutinized and said

       15         yes, this still applies.

       16              If it doesn't apply, like in the economics

       17         back to square one and all that sort of thing.

       18         So don't be influenced by the old report,

       19         because it doesn't apply any longer, unless

       20         there was a conscious decision made yes, this

       21         is still good information.  Like a lot of the

       22         technical boring data, all that stuff, it still

       23         applies, but anyway, clarify that.

       24              MR. DYSART:  Thank you.  Judy.

       25              MS. JENNINGS:  Well, if -- if that was the




                                                                36



        1     MILESTONES UPDATE

        2         dumbest question, I think I was asking it to

        3         start with and just didn't phrase it as well

        4         you did.

        5              It's part of what I'm asking, is that all

        6         this time I thought part of what we were doing

        7         was getting us to a point where we knew what

        8         the impacts were.

        9              Like for instance, I'm sorry, Joel just

       10         walked out of the room, but I was going to pick

       11         on striped bass just for instance, what are the

       12         impacts on striped bass at any given depth,

       13         when would we know that?

       14              At interagency meetings, I'm assuming Joel

       15         has adequate opportunity to comment.  We had a

       16         huge laundry list of issues.  You know, I'm

       17         still trying to get at -- and I guess that kind

       18         of goes back to Operating Guidelines issues,

       19         and one of the roles of the SEG was to -- one

       20         of actions of the SEG was to have a role in the

       21         mitigation plan.

       22              You know, impacts, impacts on all these

       23         various biological issues -- when, I mean,

       24         we've already had July the 4th and we're

       25         looking at the draft, you know, in less than




                                                                37



        1     MILESTONES UPDATE

        2         six months.  How's all that going to get

        3         crammed into that time or is it not?

        4              MR. DYSART:  Hope.

        5              MS. MOORER:  Again, the reports are going

        6         to be posted, so you will be able to see what

        7         the impacts are very soon, according to the

        8         model runs, just according to model runs.  At

        9         least you can call up people, Joel, what do you

       10         think about this.  John, you know, I don't

       11         understand this run.  Bill Bailey, why did we

       12         look at this.

       13              You'll also have an opportunity to, at

       14         that public meeting, understand why, how you

       15         got to this depth and this mitigation plan,

       16         this depth and this mitigation plan.  When the

       17         economics feed into that, that's how -- that's

       18         when the final depth is chosen.

       19              We don't know whether economics will be

       20         done at that point.  I think Mobile will be

       21         making those calls as to the timing, when the

       22         meetings will happen, and things like that.

       23              I think it's very good they're going to

       24         hold that meeting, with the impacts and the

       25         mitigation, because that's not a normal public




                                                                38



        1     MILESTONES UPDATE

        2         meeting that they hold.  It's after the draft

        3         report is completed, done.

        4              And I thought it was a good, cooperative

        5         gesture on Mobile and the Corps to try to help

        6         us get to that mitigation meeting.  And I

        7         understand that SEG was here to work on that

        8         and they need to do that, but it's another

        9         opportunity for input from the SEG.

       10              After all the analyses have been done, and

       11         it's been determined what the impacts are, and

       12         what the mitigation plan would be for each

       13         depth.  The first thing, the first question you

       14         had were impacts, when will we see them.

       15         Hopefully, as soon as Larry can get it together

       16         and get it posted.

       17              MR. KEEGAN:  If I get the final files, it

       18         will be up by Friday.

       19              MR. DYSART:  Okay.  David.

       20              MR. KYLER:  I can't let Will throw down

       21         that gauntlet without responding, regarding the

       22         stupidest question, and I'm not sure after what

       23         Judy said, the best articulated stupidest

       24         question or most poorly worded.

       25              But you have to excuse me.  I'm not sure




                                                                39



        1     MILESTONES UPDATE

        2         whether this is something I should know and

        3         forgot, or having missed three meetings it says

        4         here, have missed altogether prior to this one,

        5         regarding mitigation, obviously salinity is a

        6         major part of what is the concern regarding

        7         this project.

        8              I am wondering if in the identification of

        9         mitigation alternatives, the restoration of the

       10         wetlands functions, in the lower Savannah

       11         River landscape, has been discussed as a way of

       12         offsetting both drought and higher salinity

       13         caused by the project?  Is that way beyond

       14         mitigation alternatives or is it part of the

       15         menu?

       16              MR. DYSART:  Does anyone have a response

       17         on that?

       18              MR. BAILEY:  I guess I'm not sure exactly

       19         what you mean.

       20              MR. KYLER:  We are converted to believe,

       21         based on information we've been assessing now

       22         since the Center was founded 10 years ago,

       23         based some analysis of major out-takes that

       24         were proposed at the time, 1997, and historic

       25         data leading up to that, since a lot of




                                                                40



        1     MILESTONES UPDATE

        2         ditching and draining of the forested areas of

        3         the watersheds was done some 30 years ago,

        4         we've drastically compromised the ability of

        5         the landscape to retain and slowly release

        6         freshwater into the river system.

        7              So to the extent that that previous

        8         capacity could be restored by allowing ditches

        9         to fill in on their own, or actually go back

       10         and fill them to allow to wetlands to be

       11         restored, that seems to me to be both an

       12         environmentally and economical way of

       13         offsetting increasing salinity, which is an

       14         issue both because of drought, as we all know,

       15         and an issue because of this project.

       16              MR. BAILEY:  Okay.  I think what this

       17         project is looking at is first defining the

       18         impacts, and then trying to mitigate for

       19         impacts, make those impacts go away.

       20              MR. KYLER:  Yeah.

       21              MR. BAILEY:  And the impacts that we are

       22         seeing, are expected and are seeing, are

       23         impacts to tidal freshwater wetlands, which are

       24         I think are different.  I think what you're

       25         talking about is impacts to wetlands more in




                                                                41



        1     MILESTONES UPDATE

        2         upland areas, wetland impacts.

        3              MR. KYLER:  Within the watershed that flow

        4         downstream.

        5              MR. BAILEY:  I think this project, since

        6         we don't -- don't see this project as impacting

        7         those anymore, I guess we're not pursuing

        8         restoring those types of wetlands.

        9              MR. KYLER:  Of course the point is not

       10         that this project is impacting them, but they

       11         are impacting factors of interest to this

       12         project.

       13              They could be, it seems to me at least, a

       14         potentially rich area of exploration for

       15         increasing the freshwater flow, and offsetting

       16         the effects of drought and higher salinity

       17         caused by this project in the lower Savannah

       18         River.

       19              MR. BAILEY:  Yes, potentially, but it's

       20         not.

       21              MR. KYLER:  That's not on the table right

       22         now?

       23              MR. BAILEY:  That's not what our models

       24         are showing.

       25              MR. KYLER:  But your models wouldn't, as




                                                                42



        1     MILESTONES UPDATE

        2         far as I understand it, the construction of the

        3         models, the models would not be built with data

        4         prior to these landscape alterations being done

        5         to reflect the effects of those, and therefore

        6         the models wouldn't show what would happen if

        7         the landscape alterations were restored.

        8              MR. BAILEY:  What I was thinking about

        9         when I said that was, in the models, we are

       10         looking at different river flows, droughts,

       11         average, high flows.  So when we have looked at

       12         high river flows, which I guess is where I was

       13         making the link to that, that would be closer

       14         to what your envisioning of more -- more water

       15         coming off, coming off later.

       16              What we've got so far is more water coming

       17         down the river.  It doesn't produce less

       18         impacts for this project.

       19              MR. KYLER:  But not that this necessarily

       20         modifies the relevance of that statement you

       21         just made, I guess everyone knows the effect --

       22         the hydrograph of the landscape produced by

       23         alterations to the landscape doesn't change

       24         average flow.

       25              It changes the peaks and the valleys and




                                                                43



        1     MILESTONES UPDATE

        2         the duration of a flow.  And that is not

        3         necessarily the same thing.  So, in other

        4         words, average flows is the same under given

        5         levels of precipitation versus drought, as they

        6         were prior to the landscape alterations, the

        7         difference is water leaves the landscape much

        8         quicker and is not slowly released after the

        9         precipitation falls as it used to be.

       10              So the dry periods are dryer, the wet

       11         periods have higher flow, average is the same

       12         compared to what they used to be.

       13              MR. DYSART:  Steve.

       14              MR. WILLIS:  My question is very much in

       15         line with that.  That is, there's two

       16         proposals.

       17              Very likely one or both of them will

       18         happen, and one is inner basin transfer where

       19         Atlanta's insatiable need for water is going to

       20         be drawing off water, probably in the future

       21         from the Savannah River impoundments.

       22              The other thing is the Plant Vogel

       23         expansion.  My understanding is that could

       24         reduce the flow, depending on the flow at any

       25         given time by as much as half, half of the flow




                                                                44



        1     MILESTONES UPDATE

        2         of the Savannah River.

        3              Because if that nuclear reactor is built,

        4         a huge amount of water is taken out and lost

        5         through evaporation, which would be -- taken

        6         together, those two activities could reduce the

        7         flow of the river dramatically, especially in

        8         periods of drought.  I just wonder if both or

        9         either of those are being considered in the

       10         model?

       11              MR. DYSART:  Comments from any modelers?

       12              MR. BAILEY:  I think short answer is no,

       13         they're not specifically being looked at, at a

       14         given -- Plant Vogel, withdrawals from there

       15         have not been factored in.  We don't know how

       16         much -- how much they want, when it may go

       17         online, if it would be approved, lots of

       18         unknowns.

       19              The longer answer is, you know, we are

       20         looking at different amounts of river flow.  So

       21         we are looking at drought flows, so we can see

       22         the effects of that.  I guess what that -- if

       23         more water was removed from the river, either

       24         inner basin transfer or another specific

       25         project like Vogel, you may approach those




                                                                45



        1     MILESTONES UPDATE

        2         drought flows more often.

        3              So that -- but the modeling should tell

        4     us what those effects are, what we wouldn't

        5     know is how frequent.  In the future, they may

        6     happen more frequently.

        7              MR. WILLIS:  I guess from a modeling point

        8         of view, if those things happen, we would have

        9         to consider, you know, a frequent or possibly

       10         almost constant drought situation.  You have to

       11         consider what that would do to the lower

       12         Savannah River basin.

       13              MR. DYSART:  Judy.

       14              MS. JENNINGS:  Just to follow-up with the

       15         question, Bill.  You said more water coming

       16         down the river doesn't change the salinity from

       17         this project.  Is that something we know or

       18         something the modelers have said or --

       19              MR. BAILEY:  It doesn't change the

       20         impacts.  That's what the model results are

       21         showing us.

       22              MS. JENNINGS:  So the models?

       23              MR. BAILEY:  Uh-huh.

       24              MR. DYSART:  Further questions, comments?

       25         Okay, Bill next is the chloride report.




                                                               46


        1     CHLORIDE UPDATE

        2              MR. BAILEY:  Okay.  Today you'll get to

        3         see the presentation that you got spared from

        4         seeing last time.  I want to tell you about

        5         what we've got chloride modeling and chloride

        6         impacts.  Thank you.

        7              We have produced -- we've got two reports

        8         now.  We have a model development report and a

        9         kind of an impact report.  Those will be --

       10         those will be available soon also.

       11              Background issues, primarily around the

       12         City of Savannah's municipal industrial water

       13         intake, the city takes water from there and

       14         supplies industries -- supplies the industries.

       15              Those industries run it through their

       16         boilers and those boilers can be affected by

       17         the level of chlorides.  The general threshold

       18         is around 12 milligrams per liter.  I guess the

       19         perspective of seawater is in the range of

       20         32,000, 35,000.

       21              So 12 is a much smaller number in

       22         seawater.  On the bottom, the drinking water

       23         standard is about 250, so this is not a

       24         drinking water contamination issue.

       25              It is -- it's an issue for industrial use




                                                               47


        1     CHLORIDE UPDATE

        2         of the water.  With that threshold, that's kind

        3         of -- that's not a hard and fast number, that's

        4         kind of guidance number, we're already -- the

        5         city's already at that, over that number, a

        6         good amount of time, between 50, 90% of the

        7         time.

        8              MR. BERSON:  Is that the city's number, 12

        9         milligrams per liter is the city is standard?

       10              MR. BAILEY:  Yeah, between the city's and

       11         the industries.  It's kind of a guidance.  This

       12         is where it is, just upstream from Highway 95.

       13         If you are taking a boat, you go under the

       14         bridge, take your first left is Abercorn Creek.

       15              Up there a little ways the city has a

       16         pumping station.  The city takes water out up

       17         there.  And the concern is that as the harbor

       18         is deepened, the salt moves further up in the

       19         estuary, and then the salt -- the concern is

       20         salt would get to this intake.  Basic, basic

       21         issue.

       22              The city raised this issue during Tier I.

       23         GPA included some money, in the recommended

       24         project at that time, to relocate the city's

       25         water intake further upstream.




                                                               48


        1     CHLORIDE UPDATE

        2              In Tier II, GPA collected data at the

        3         intake and around there for chlorides.  The

        4         normal equipment that you measure salinity

        5         with won't give you -- doesn't give you good

        6         results for chlorides, because they're at such

        7         different levels.  Measuring, again, the

        8         salinity in ocean waters, 32,000.  An

        9         instrument that will measure those levels

       10         doesn't do well measuring single digits, the

       11         10, 10 or 12.

       12              The instruments don't measure that full

       13         range well.  So you have to have a second set

       14         of instruments out there to measure the low end

       15         of the spectrum.

       16              We have taken the hydrodynamic model, the

       17         agencies approved, adapted that to predict

       18         chloride levels at the city's intake.  We have

       19         a report, modeling report dated last November

       20         for how they -- how we did that.

       21              The contractor used the city's data, city

       22         measures chlorides in the water that they pull

       23         in.  They measure that once a day everyday.  So

       24         we took the city's data, took the data from the

       25         USGS gauges, data from the 1999 sampling, and




                                                               49


        1     CHLORIDE UPDATE

        2         also other data from further upriver.

        3              So they used everything they could put

        4         their hands on, which was like a modeler never

        5         has enough, but they used a lot of different

        6         sources.

        7              So these are the some of the results.  I'm

        8         sure it's all very clear, and since it's so

        9         clear I'll let Judy explain it all.

       10              MS. JENNINGS:  I deserved that.  I

       11         deserved that.

       12              MR. BAILEY:  We'll see here we've got

       13         chloride levels on this side ranking from zero

       14         up to 40 something.  We've got a line here, and

       15         that's the 12, the threshold.  We've got two

       16         lines up here.  This is the chloride level at

       17         the I95 bridge, and lower is the chloride level

       18         at the city's intake.

       19              So, now this side is river flow, and that

       20         one starts at the top and comes down.  So as

       21         here, as it comes down here, this is more water

       22         coming down the river as this comes down.

       23              So this is -- these are all measurements,

       24         okay, no modeling.  These are the measurements.

       25         These are data from the field.  So just one of




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        1     CHLORIDE UPDATE

        2         the things to look at, as the river flow

        3         increases, comes down, as the river flow

        4         increases, the chloride level decreases at

        5         I-95.

        6              It also decreases at the city's intake.

        7         The river flow backs off, chloride levels come

        8         up again, but it's not -- it's not a mirror

        9         image.

       10              So things that happen here, there is not

       11         an exact duplicate down here.  What happens at

       12         I95 doesn't exactly happen at the city's

       13         intake, and neither of those is an exact

       14         duplication of river flow.  So it is affected

       15         by river flow, but there's other stuff going on

       16         too.  I think that's it for that one.

       17              MR. FARMER:  The horizontal scale is weeks

       18         or months or days?

       19              MR. BAILEY:  January, this is a full year

       20         in '03.

       21              MS. MOORER:  Bill, what you said, there

       22         are other things going on, what are the other

       23         things besides flow?

       24              MR. BAILEY:  We'll get into that.

       25              MS. MOORER:  Okay.




                                                               51


        1     CHLORIDE UPDATE

        2              MR. ROBINETTE:  Bill, the flow up there on

        3         the right-hand side, where is -- I can't read

        4         those numbers.  What does that say -- average

        5         flow; does that say average flow opposite that

        6         one?

        7              MR. BAILEY:  Cubic meters per second, so

        8         the average was around 500, the first line

        9         coming down is 500 cubic meters per second.

       10              MR. ROBINETTE:  Okay.  That's about an

       11         average flow?

       12              MR. BAILEY:  Yeah.

       13              MR. ROBINETTE:  Okay.  You said that

       14         currently those standards of 12 milligrams per

       15         liter are being exceeded 50% of the time during

       16         average flow?

       17              MR. BAILEY:  Yeah.

       18              MR. ROBINETTE:  And 90% during the

       19         drought?

       20              MR. BAILEY:  Yeah.  On this particular

       21         year, it looked like they were below the

       22         threshold most of the time.

       23              MR. ROBINETTE:  Okay.

       24              MR. BAILEY:  So, the modelers worked up an

       25         equation with all that data, and so they used




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        1     CHLORIDE UPDATE

        2         river flow plus the salinity level at I95, and

        3         did some math for how they put that together,

        4         how they developed those relationships.

        5              So they have two components in there, in

        6         this separately little model that they

        7         developed, to predict chloride levels.  So it's

        8         based on river flow, primarily, but then also

        9         they added in something just from the amount of

       10         chlorides at I95, just kind of what's coming.

       11              So it is determined by both what is coming

       12         down the river and also what's coming up from

       13         the harbor.  Will.

       14              MR. BERSON:  I'm offering another dumb

       15         question.  Is the last value in the equation

       16         conductivity?

       17              MR. BAILEY:  Yes.

       18              MR. BERSON:  Yeah I understood something,

       19         about as far as I go.

       20              MR. BAILEY:  There are questions at these

       21         low levels about the conversions between

       22         conductivity and salinity and measuring those

       23         levels.

       24              When you are measuring salinity, you're

       25         measuring chlorides plus a bunch of other stuff




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        1     CHLORIDE UPDATE

        2         in there, chlorides, bromides, can be a number

        3         of things that make up salinity.

        4              Conductivity, I think, is the actual thing

        5         they go out and measure.  In most cases, like

        6         if they're measuring salinity at I95 or down in

        7         the -- they actually measuring conductivity and

        8         then convert it back.

        9              MR. BERSON:  Back --

       10              MR. BAILEY:  -- back to a salinity level.

       11              MR. BERSON:  Well, that's much clearer.

       12              MR. SCANLON:  I think I can clarify that

       13         for you, Will.  When you are measuring

       14         salinity, when you have the very high numbers,

       15         it really doesn't matter.  You're measuring a

       16         very large number, and your salinity is your

       17         major component of it, so you've got a good

       18         relationship.

       19              The issue that we have with measuring

       20         chlorides at very low levels is you're

       21         measuring just conductivity.  Conductivity is

       22         measuring all the ions in the water.

       23              If the major one is salinity, you've got

       24         a good measurement.  If you have got, when you

       25         are measuring very low levels, you have got




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        1     CHLORIDE UPDATE

        2         other ions, other minerals, it could be any

        3         number of things in there, it's not as

        4         reliable.

        5              That's the issue we have.  When you are

        6         dealing with very low levels, then what you're

        7         looking at is a smaller portion of the total

        8         ions that are in the water.  So that's the

        9         reason that it's -- there's not a direct

       10         relationship.

       11              MR. DYSART:  More of a correlation.

       12              MR. SCANLON:  Correct.

       13              MR. BAILEY:  So now we've got -- on this

       14         one is the city data and the model's

       15         predictions.  So the dark bars are the city's

       16         data, the yellow ones are the model.

       17              The model does not duplicate the city, the

       18         city's data.  It's not an exact representation.

       19         I guess a couple things from this, one is that

       20         he yellow, the model, is generally to the right

       21         of the city's data, which in this case means

       22         it's predicting higher, higher values.

       23              However, if you look at individual

       24         numbers, from this range 9 -- 9 to 12, the

       25         model is below the city's data.  So it's low on




                                                               55


        1     CHLORIDE UPDATE

        2         this end, it's higher on this end out here.

        3              MR. BERSON:  What happened in the 6 to 8

        4         range?

        5              MR. BAILEY:  The model doesn't predict

        6         numbers that low.

        7              MR. BERSON:  Oh.

        8              MR. WILLIS:  What does the bottom scale

        9         mean?

       10              MR. BAILEY:  The Bottom scale is the

       11         chloride level chloride values.  So to the

       12         right is higher chloride levels.

       13              So the model under-predicts some and

       14         over-predicts in others.  In general, it

       15         over-predicts -- in general it's

       16         over-predicting.  The whole thing is skewed --

       17         the yellow is skewed to the right.

       18              So we went to review that, review of this

       19         product.  We had USGS do an external review of

       20         it.

       21              MS. JENNINGS:  Go back to that last --

       22         Bob, either of you, can you explain, I mean to

       23         me it looks like the model is just, you know,

       24         on an exponential rise, and that's not exactly

       25         the data at all.  I mean, can you explain?




                                                               56


        1     CHLORIDE UPDATE

        2              I know we're dealing with small numbers at

        3         that level.  I mean, that is what you're

        4         measuring.  It hardly matters whether you're

        5         dealing with small numbers or not.

        6              I mean, can you explain why there is such

        7         a variation between the model and the

        8         measurements and the city?

        9              MR. SCANLON:  I believe it's going back to

       10         the same issue I just raised.  The model is

       11         measuring something different than what the

       12         city is actually measuring.

       13              The model is measuring total basically

       14         conductivity.  The city is actually measuring

       15         specific chloride ions which is part of what is

       16         going in there.  But it's really not modeling

       17         exactly the same thing.  We're not measuring

       18         exactly the same thing that's being modeled.

       19         It's not rising exponentially because you  see

       20         it drops back down.

       21              MS. JENNINGS:  Yeah, but I didn't know

       22         that was whether that was an anomaly or not.

       23              MR. SCANLON:  I couldn't say either.

       24              MR. BAILEY:  It does drop back down.

       25              MR. SCANLON:  We have concerns.  The city




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        1     CHLORIDE UPDATE

        2         has concerns about the predictability as well.

        3              MS. JENNINGS:  I can see why.

        4              MR. BAILEY:  One of the difficulties, from

        5         the modeling perspective, from the -- well, we

        6         talked about the some of the difficulties.

        7              With the city's data, the city collects

        8         one sample a day.  It's basically a time,

        9         you collect a sample of that 10:00 o'clock

       10         everyday.  A guy goes in, he's going to collect

       11         a sample.

       12              But from a modeling perspective, that's

       13         collected then over you don't know what tide

       14         cycle that's on.  You only have one value for

       15         the entire day.

       16              So you don't whether that was the peak for

       17         the day, whether that was the low for the day,

       18         where that fit in.  The model calculates all

       19         those numbers.

       20              And I guess you have to assume that over

       21         time, the city's data represents the average

       22         daily.  The model -- the model will calculate

       23         lots of numbers and then it will average them

       24         together to get an average value for the day.

       25              Then you have to assume that the city's




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        1     CHLORIDE UPDATE

        2         will also average out, but you don't know that.

        3         So that's another source of difference between

        4         the two.  You really are not sure.  It's just

        5         another source.

        6              MR. DYSART:  Joel.

        7              MR. FLEMING:  Just real quick to make sure

        8         I understand this correctly.  Isn't that just

        9         showing under natural or under current

       10         conditions that's there's a more variation?

       11              You know, your percentage of sample

       12         distribution is just spread out over a greater

       13         area, not to mention the mean is much less.  It

       14         is saying the mean increases, it looks like

       15         dramatically there.  It also decreases your

       16         variance.

       17              MR. BAILEY:  This is not a project impact.

       18              MR. FLEMING:  But it is a model impact.

       19              MR. BAILEY:  The model trying to replicate

       20         existing -- replicate the city's data.

       21              MR. FLEMING:  Okay.

       22              MR. BAILEY:  Haven't gotten to put a

       23         project onto it yet.

       24              MR. DYSART:  Steve.

       25              MR. WILLIS:  This is a question probably




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        1     CHLORIDE UPDATE

        2         more for Bob.  What percentage of the city's

        3         water needs do they satisfy out of Abercorn

        4         Creek.

        5              MR. SCANLON:  All of the industrial

        6         requirements, and that's where this is so

        7         critical.  The issue, from my previous life,

        8         being one of the critical customers, if you get

        9         chlorides up above the 10, 15 parts per million

       10         level, chloride is very corrosive in high

       11         temperatures in a boiler, and you do wind up

       12         developing pin holes in boilers.

       13              So you have to keep very low chlorides.

       14         That's the reason the city has their specs so

       15         low for the industrial water supply, and that

       16         is really it's a requirement of the industrial

       17         users.  And the industrial users have been,

       18         since the 1940s, really been pushed over to

       19         surface water rather than groundwater, which

       20         again because of the aquifer issues, that's

       21         where we're pushing people more and more to

       22         chlorides.

       23              So I think it is a very important issue to

       24         the city that we do maintain these low levels,

       25         and it is primarily for the industrial users




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        1     CHLORIDE UPDATE

        2         who have been the primary users of surface

        3         water.

        4              MR. DYSART:  David.

        5              MR. KYLER:  What is the greater

        6         constraint, industrial use or environmental

        7         requirements of salinity?  Is there a general

        8         observation or conclusion you can make?

        9              In other words, does industrial

       10         requirements for low salinity trump

       11         environmental effects of salinity or not?

       12              MR. BAILEY:  I guess we wouldn't predict

       13         any environmental impacts at these low levels,

       14         these changes.

       15              MR. KYLER:  So I assume one mitigation

       16         proposal would be to treat water for industrial

       17         use to reduce the salinity?

       18              MR. BAILEY:  Yes.  We had a model.  We

       19         gave it to USGS to do an external review.  The

       20         city also looked at it.  They both came back

       21         with questions about the ability to predict at

       22         these low levels.

       23              So we essentially -- everyone had that

       24         same -- has the same -- is in the same

       25         position.  Well, how -- kind of how good is




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        1     CHLORIDE UPDATE

        2         good enough.  Somebody has got to make a

        3         decision.

        4              So in the Corps, they have somebody who is

        5         assigned that responsibility, so the managers

        6         for the engineering division have that

        7         responsibility.  They looked at the city's

        8         -- city's comments.  They looked at the

        9         external reviewer's comments.  They looked at

       10         the model results.

       11              Their conclusions were that the model is

       12         as good as it can be, for the data that's

       13         available.  There is uncertainty about the

       14         predictions.  They recommend that if the

       15         project is constructed that we should monitor

       16         to quickly identify any unforeseen impacts.

       17              This was before we actually looked at the

       18         effects of deepening.  This is just how, the

       19         model as a tool.  So that was their

       20         conclusions.  Go ahead, Will.

       21              MR. BERSON:  Yeah.  Could you go back to

       22         the graph?  Day for dumb questions -- it looks

       23         to me like this model is a very pool tool,

       24         simply put.

       25              It's got the trend going in the wrong




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        1     CHLORIDE UPDATE

        2         direction to the right.  Your model predicts

        3         it is going up when the actual values show it

        4         is going down.  And in the mid range, it's also

        5         going in the wrong -- it's going in a confused

        6         direction.

        7              My question is if it can't -- if you can't

        8         calibrate to this data, then what use is it to

        9         predict what will happen with project

       10         conditions?

       11              MR. BAILEY:  I don't agree with your

       12         conclusion at the end.

       13              MR. BERSON:  If it is not predicting data

       14         points you can identify right now, why should

       15         there be any confidence it will do better when

       16         you put in theoretical conditions?

       17              MR. SCANLON:  I don't think that was the

       18         conclusion at all.  I think the conclusion was

       19         -- I think what was stated was we monitor post

       20         -- post expansion monitor what happens.

       21         I thought that was the conclusion that was

       22         reached by the city --

       23              MR. BERSON:  Because the model can't tell

       24         you anything.

       25              MR. SCANLON:  That's right.  It's no




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        1     CHLORIDE UPDATE

        2         longer a modeling question.  Their suggestion

        3         was --

        4              MR. BERSON:  We're just going to wing it.

        5              MR. SCANLON:  Exactly.  I just want to say

        6         that is a grave concern to us, because if the

        7         problems do show up, and we do start to see the

        8         problem we expect to see from high chlorides,

        9         the time it would take to go back and correct

       10         the situation after the fact --

       11              MR. BERSON:  You mean by moving the

       12         intake?

       13              MR. SCANLON:  By moving the intake, we

       14         could, in fact, put a lot of industrial

       15         customers out of business during that lag time.

       16         That is a concern that we have.  That's just

       17         for the record.

       18              MR. DYSART:  Ed.

       19              MR. EUDALY:  This goes back partially to a

       20         statement you made earlier, Bill, that I think

       21         needs some clarification.  It relates to this

       22         somewhat in that there is clear relationship

       23         between flow and chloride levels, you know,

       24         based on their equation, based on the data.

       25              You said that flow down the river doesn't




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        1     CHLORIDE UPDATE

        2         change impacts, based on the model.  I think

        3         that's kind of a broad statement.  I don't

        4         think it's exactly correct.

        5              I just want to clarify or give my opinion

        6         on that.  There's plenty of data that shows

        7         flow down river does have significant impact on

        8         salinity levels.  Certain model results do show

        9         as flow reduced salinity increases.

       10              There are certain aspects of the modeling,

       11         maybe because of the way the analysis was

       12         formulated, that maybe not show that clearly.

       13         I just want to point out the flow is a major

       14         determiner of salinity levels.  Impacts, I

       15         think, will change based on flows, even if our

       16         models don't always show that.

       17              I just wanted to get my opinion out there.

       18         I'm not sure what you were trying to say, but

       19         to me it didn't tell the whole story.

       20              MR. DYSART:  Judy and then David Kyler.

       21              MS. JENNINGS:  Right.  Ed, thank you

       22         because I asked that question and Bill's

       23         response to me was that's what the model had

       24         shown.

       25              The conclusion about this is that we'll




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        1     CHLORIDE UPDATE

        2         just we'll watch it.  You know, this is just

        3         sort of a broad statement.  The city might have

        4         a solution to it.  You might could move your

        5         pipe and solve your problem.  But it, you know,

        6         might not be as easy to fix some other parts of

        7         the project.  Just, I mean, is this good enough

        8         for the city?

        9              MR. SCANLON:  No.  That was the comment I

       10         just made.  No, it's not.

       11              MS. JENNINGS:  I guess my point is that I

       12         think your problem would be one of the easiest

       13         to solve, of all the ones we might encounter.

       14         I mean, that's my personal opinion -- not to

       15         minimize your problem, but simply to say it

       16         might be one of the easier ones to fix after

       17         the fact -- not that it would be easy, but

       18         comparatively speaking.

       19              MR. SCANLON:  My point is though it may be

       20         too late also.

       21              MS. JENNINGS:  Right.  I agree.

       22              MR. SCANLON:  I think, technically, I

       23         think it probably is one of the easiest

       24         technical problems to solve.  But if it's not

       25         solved beforehand, we could wind up with a




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        1     CHLORIDE UPDATE

        2         number of the customers, our customers, who are

        3         relying on low chloride water being out of

        4         business as a result of high chloride water.  I

        5         think it's the risk, that's our concern.

        6              MS. JENNINGS:  I agree.

        7              MR. DYSART:  David and John Robinette.

        8              MR. KYLER:  The point Ed made, freshwater

        9         flowing down the system will affect the

       10         salinity is the one I was trying to make

       11         before.

       12              I thought the response from Bill was that

       13         the modeling salinity effects of the project

       14         being so much greater than the natural effects

       15         of flow, or even artificial effects due to

       16         landscape alteration, as runoff affects the

       17         freshwater coming down the system affects

       18         salinity in the lower river.

       19              I thought the project impact was so much

       20         greater that that marginalized those effects.

       21         Isn't that the gist of your response, Bill?

       22              MR. BAILEY:  My response was from looking

       23         at the wetland impact information that we've

       24         got, and fisheries impact information, that was

       25         what I was thinking when I answered that.




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        1     CHLORIDE UPDATE

        2         Those numbers are showing the greatest impacts

        3         at average flows.

        4              MR. KYLER:  I don't understand.

        5              MR. BAILEY:  There are less impacts during

        6         a drought, less impacts on high flows.  With a

        7         deeper channel, less impacts on those

        8         conditions than you do on average flows.

        9              That's what the models are showing us.

       10         Some of that is because of -- I believe some of

       11         that is because of the non-linearity within the

       12         estuary.

       13              Things don't move up equal distances, when

       14         you make a change.  The ground is not one

       15         uniform slope.  The river bottom is not a

       16         uniform slope upriver.  So if you make a

       17         change, you can't say well, it's going to move

       18         a quarter mile here, so therefore it will move

       19         a quarter mile for another equal change.  It's

       20         not equal response.

       21              MR. KYLER:  I understand that point, but

       22         I'm not sure how that relates to the question I

       23         originally asked.

       24              MR. BAILEY:  With flows, it seems that at

       25         this level, this amount of deepening, this




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        1     CHLORIDE UPDATE

        2         level, this amount of saltwater intrusion into

        3         the estuary, further deepening has the most

        4         effect on average flows.

        5              MR. KYLER:  So doesn't that confirm?  Is

        6         that another way of corroborating my

        7         interpretation?  I summarized when I asked the

        8         question, increasing the natural runoff of

        9         freshwater from the landscape, according to

       10         your analysis using the model, would be a

       11         relatively minor effect compared to the effects

       12         of deepening on salinity in the realm we're

       13         analyzing -- in the domain we're analyzing.

       14              MR. BAILEY:  I'm not sure I can agree with

       15         just because I'm not sure exactly what you are

       16         saying.  It's not that you're not clear.  It

       17         conflicts.

       18              MR. KYLER:  It's a matter of whether

       19         you're misunderstanding the question, or not

       20         understanding the question, or whether the

       21         model does not answer the question, or our

       22         knowledge to this date does not answer the

       23         question.

       24              And I'm trying to understand.  Do we know,

       25         if we restored a good part of the landscape's




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        1     CHLORIDE UPDATE

        2         ability to restore freshwater flow in the lower

        3         Savannah range, that would have a compensating

        4         effect worth considering a mitigating factor on

        5         the project?

        6              MR. BAILEY:  We don't know that.  Like you

        7         said, we're using flows over the entire year,

        8         but we don't know what would happen if those

        9         flows are changed during the course of the

       10         year.  If -- if rainfall events are spread out

       11         more --

       12              MR. KYLER:  Right.

       13              MR. BAILEY:  -- we don't know what effect

       14         that would have on the estuary.

       15              MR. KYLER:  I for one think that is worth

       16         examining for a lot of reasons.

       17              MR. BAILEY:  We -- okay.

       18              MR. DYSART:  Let me -- I notice that cards

       19         are popping up like mushrooms here, and it's

       20         about break time.  I have -- I'm going to

       21         declare a 10 minute break.  We've got the order

       22         of questions following John, Will, Ed, Hope,

       23         Will, Bob and Joel.  Let's take a 10 minute

       24         break starting now.

       25                             (Short Break)




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        1     CHLORIDE UPDATE

        2              MR. DYSART:  Okay.  Let's reconvene,

        3         please.  And the first thing I want to do is

        4         Steve, why don't you state, for the record,

        5         your name and affiliation since you came in a

        6         little bit late.

        7              MR. WILLIS:  I'm Steve Willis.  I'm the

        8         owner of a company called Blue Planet Projects,

        9         and it's --

       10              MR. DYSART:  Okay.  Thank you.  I believe

       11         that no one else came in after we did

       12         introductions.

       13              MR. BAILEY:  Did Gail come in?

       14              MS. BOWERS:  No, I made it this time.

       15         That's okay, Bill.

       16              MR. DYSART:  Let's proceed now, and two or

       17         three people have made humorous comments about

       18         who was asking the dumbest question.  It's

       19         obvious there have not been any dumb questions

       20         asked.

       21              My experience, over a lot of years, has

       22         been when somebody thinks there's a dumb

       23         question, it's a question worth throwing on the

       24         floor, getting responses to, and developing a

       25         better understanding and insight into what is




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        1     CHLORIDE UPDATE

        2         going on, and the challenges and difficulties.

        3              And this is a challenging situation.

        4         Sometimes the answers aren't quite as clear as

        5         everybody might like for them to be.  But, as I

        6         understand, one of the goals of this

        7         organization, Stakeholders Evaluation Group, in

        8         doing its work is to raise its thoughts, give

        9         its views for the benefit of all the parties

       10         here.

       11              And I think that the discussion this

       12         morning so far has been very much in that line.

       13         I appreciate that.  Next John, John Robinette.

       14              MR. ROBINETTE:  Yes.  Bob with the

       15         conclusion being that we should monitor after

       16         construction and then identify unforeseen

       17         impacts; is that acceptable to the city?

       18              MR. SCANLON:  No.  That was the point I

       19         was trying to make.  We don't believe that

       20         that's a good conclusion.  We have serious

       21         concerns about that.

       22              MR. ROBINETTE:  So you would say no to

       23         this project based on that?

       24              MR. SCANLON:  Yeah -- we still have

       25         serious concerns.  I don't know we would say




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        1     CHLORIDE UPDATE

        2         no.  We have serious concerns.

        3              MR. ROBINETTE:  Is there an ability to get

        4         the data that you need to make this a more

        5         accurate model?  You're looking at salinity and

        6         comparing it to chlorides.

        7              Can you take water samples at those areas

        8         and -- and do -- I don't know how to test for

        9         chlorides.  I've tested for salinity many

       10         times, and do the chloride measurement and get

       11         the data you need to get a tool that would be

       12         effective?

       13              MR. SCANLON:  I would say the answer to

       14         that question is probably yes.  How we do that

       15         is an unknown.  I think -- can I go ahead and

       16         say what I was going to say, because I think

       17         it's an appropriate response to that?

       18              I'll remind you of something, sitting in a

       19         lot of these modeling meetings, Paul Conrad did

       20         a lot of modeling development for USGS, used to

       21         constantly remind us that just remember folks,

       22         all models are wrong.  Some are useful.

       23              MR. ROBINETTE:  Correct.

       24              MR. SCANLON:  And you have to remember a

       25         model is only as good as the date used to




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        1     CHLORIDE UPDATE

        2         calibrate and develop it.

        3              And this is a case where we're actually

        4         trying to infer something, using one thing,

        5         when we're actually measuring something

        6         different.

        7              MR. ROBINETTE:  Correct.

        8              MR. SCANLON:  And there should be a

        9         correlation between the two.  There's a logical

       10         correlation between the two, and that should be

       11         able to be modeled.

       12              But I don't think we have found the proper

       13         model for that.  And this is a very, very

       14         complex system, because the source of Abercorn

       15         Creek, part of the source, is -- Ed reminded me

       16         of the name of the creek -- Bear Creek.

       17              That comes in off the Savannah further

       18         upstream, which kind of drains into and creates

       19         a wetland which drains into Abercorn Creek.

       20              MR. ROBINETTE:  Correct.

       21              MR. SCANLON:  It's very complex.  There

       22         are other source of chlorides along the way.

       23         So it's -- if we had all the right data, I'm

       24         confident we could create a model, but I'm not

       25         confident that we know if we could even create




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        1     CHLORIDE UPDATE

        2         all the right data, know all the right data to

        3         say or put into the model.

        4              I think it's very complex.  It's beyond me

        5         personally.  I'm sure there are folks that

        6         could figure it out.  But I don't think we're

        7         there.  I think this is one of those models

        8         that falls into that not usable category to

        9         apply this model to answer this question.

       10              It doesn't say anything about the

       11         reliability of the model for others things, but

       12         only with this specific question, it's really

       13         not answering the specific question that needs

       14         to be answered for this.

       15              MR. ROBINETTE:  The solution then would be

       16         if it does have a major impact, the solution

       17         would be to move the intake or move the plant,

       18         correct?

       19              MR. SCANLON:  That's probably -- I would

       20         guess that would probably be the most

       21         economical solution.  To try to treat the

       22         volumes of water, I mean, we're talking

       23         probably 25 million gallons a day to these

       24         critical -- 20 to 25.  I don't think that's a

       25         feasible solution is to try to treat that




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        1     CHLORIDE UPDATE

        2         water.

        3              MR. ROBINETTE:  Where would you put the

        4         plant?

        5              MR. SCANLON:  Probably just further

        6         upstream.  I'm not sure where.  I think in the

        7         -- there was a plan, in the original

        8         environmental assessment back 10 years ago to

        9         move it.  I don't recall, off the top of my

       10         head, where the plan was to move it.

       11              There was a cost that was actually put

       12         into the project, and it was moved further

       13         upstream.  I'm not sure if it was further up

       14         the Savannah River or further up Abercorn

       15         Creek.  Bill, do you recall that?

       16              MR. BAILEY:  It was further up the

       17         Savannah River.

       18              MR. ROBINETTE:  I think it was.  I think

       19         it was up there.  It was going to come across

       20         -- the pipe was going to come across the refuge

       21         and that stuff.

       22              We've been working with you for years on

       23         this problem, and during the 1135 project to

       24         put more water down Bear Creek, jet spray

       25         dredging on Abercorn Creek to try to improve




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        1     CHLORIDE UPDATE

        2         that because there was so much sediment and

        3         stuff in there, and trying to reduce the tannic

        4         acid loads at that time, which were giving you

        5         a fit.

        6              I hope we've improved that.  We tried to

        7         come up with a win win solution, but I don't

        8         think there's any way we would approve a pipe

        9         coming across the refuge.

       10              The impacts from this project, you know,

       11         just keep piling up on the Savannah National

       12         Wildlife Refuge.  Before you go there, and

       13         before you select a site, I think it would be

       14         beneficial for you to know that we would object

       15         to a pipe coming across that refuge.

       16              MR. SCANLON:  It's good to know.  I think

       17         we would definitely want -- we wouldn't

       18         envision trying to force something on somebody.

       19         I can't imagine that happening.

       20              MR. ROBINETTE:  No, but I just --

       21              MR. SCANLON:  It would have to be a

       22         process similar to what we're going through

       23         here.

       24              MR. ROBINETTE:  I think it's valuable for

       25         you to know that up front instead of farther




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        1     CHLORIDE UPDATE

        2         down the road.  I just don't we'd even consider

        3         that, so --

        4              MR. DYSART:  Will.

        5              MR. BERSON:  I think I understand most of

        6         these.  I guess taking a slight step backwards,

        7         what does the Corps propose to do with these

        8         results?  What happens from here on this sort

        9         of investigation?

       10              MR. BAILEY:  So far you're talking about

       11         the development of the tool.  I've got some

       12         slides about that that just talk through the

       13         impacts that the tool predicts.  And then --

       14         which it basically predicts very little impact

       15         from further deepening, so we're not sure where

       16         we're going after that.

       17              MR. BERSON:  I thought I was on until just

       18         then.  You said you haven't modeled the with

       19         project then, so --

       20              MR. BAILEY:  At the point of this slide,

       21         at the point these people made determinations

       22         of acceptability of the model, we had not run

       23         impacts.

       24              MR. BERSON:  But you have.

       25              MR. BAILEY:  We have now, yes.  They made




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        1     CHLORIDE UPDATE

        2         that determination, you know, earlier this year

        3         in the spring -- I'm not sure when.  So when we

        4         get all the questions answered, we'll move on

        5         to those impacts.

        6              MR. DYSART:  Ed.

        7              MR. EUDALY:  This goes back to kind of a

        8         follow-up on David's discussion, and there's a

        9         couple of factors that come into play on how

       10         the model was used.

       11              You know, that was a good lead-in talking

       12         about the models.  The FDC had a lot of time

       13         and money spent on it.  It's a good product, I

       14         think it's the best we can reasonably do.

       15              There are still limitations in any model,

       16         and then how it's used also.  To kind of

       17         explain, I think, what one of the reasons the

       18         impacts show higher at the average flows is

       19         that during low flows, there's already --

       20         salinity already moves far up the river without

       21         deepening.

       22              Part of that is because of cumulative

       23         impacts of previous harbor deepening.  That big

       24         channel, salinity is already moving up there.

       25         So when it flows, you already show a high




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        1     CHLORIDE UPDATE

        2         salinity in the marshes.

        3              So when you deepen, those are already

        4         showing salinity impacts, so you don't get much

        5         change.  You know, an average flow, you show

        6         more of an impact.  So that's kind of an

        7         explanation for that.

        8              You know, another factor in the Savannah

        9         River, is the base flows are higher than they

       10         would be -- or low flows are anyway, because

       11         of the regulation.

       12              You've got three large Corps' reservoirs

       13         upstream, so that kind of modifies the

       14         hydrology.  The base flows are up, high flows

       15         are down.  It's all changed.

       16              That's kind of an explanation for some of

       17         the things Bill was talking about.  I hope it

       18         might clarify stuff a little bit.  But your

       19         idea, you know, that's certainly an interesting

       20         idea to look at.

       21              I don't know how it would fit in

       22         mitigation.  It would be hard to show a direct

       23         link.  I think it would be hard to quantify,

       24         but certainly support those kind of efforts

       25         through various projects.




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        1     CHLORIDE UPDATE

        2              MR. DYSART:  Hope.

        3              MS. MOORER:  Okay.  I got a couple of

        4         questions.  Bob raised a point about whether

        5         we'd be able to get the data, or whether that

        6         model could do it.  Is there a model out there,

        7         for a system like this, that could make

        8         predictions?  From what I understand, it's very

        9         difficult to predict at those low levels.

       10              MR. SCANLON:  Only -- I'd say that's only

       11         because of the limitations of the data that was

       12         used to develop the model.  I think my response

       13         was, I'm sure that you could develop a model,

       14         given all the right data.  I said I don't know.

       15         I couldn't sit here and say what the data would

       16         be that's required.

       17              I'm sure there is some modeler, if you

       18         give an infinite checkbook, to do it.  So I

       19         don't know.  I see this right now as a dilemma.

       20              I don't have a solution.  I don't know

       21         what the solution is.  We have concerns.  I

       22         think the whole issue has to be visited.  I

       23         think it's going to have to be vetted among our

       24         various customers as to what all happens with

       25         this.




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        1     CHLORIDE UPDATE

        2              There are other pressures on some of them.

        3         The cheapest solution might be to buy them out.

        4         I don't know.

        5              MS. MOORER:  The other question was

        6         because right now it's exceeding, did you say

        7         50% of the time --

        8              MR. BAILEY:  Yes.

        9              MS. MOORER:  -- 12 milligram per liter?

       10              MR. BAILEY:  Yes.

       11              MS. MOORER:  What are we planning to do

       12         now, if it's exceeding 50% of the time?

       13              MR. SCANLON:  I don't -- I don't -- I have

       14         not had the conversation with John Sawyer who

       15         operates the plant.  That number surprised me

       16         when Bill said it.  So I don't know any answer

       17         to that question.  I'm also -- I don't know

       18         that's accurate.  I'm not may be understanding.

       19         I don't know.

       20              MS. MOORER:  The other question is, is

       21         there a reason why, is it because of a

       22         long-term chloride impact is what causes, or

       23         long-term chloride changes is what causes

       24         impact is why it is measured only once a day?

       25              I mean, I would think that like the tidal




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        1     CHLORIDE UPDATE

        2         cycles and all that, I'm trying to understand

        3         how -- you don't know?

        4              MR. SCANLON:  I don't know the answer to

        5         that either.  If you had asked me what was

        6         done, if it was sampled once a day, I thought

        7         it was a continuous sample taken and daily

        8         composite.

        9              I may be incorrect on that.  That's what I

       10         thought was being done.  It was actually being

       11         deposited and sampled once a day, but I don't

       12         -- I'm not sure how that's done.

       13              MS. MOORER:  Okay.

       14              MR. SCANLON:  The other explanation Bill

       15         gave is reasonable, in that over time if you

       16         sample once a day, over years, statistically

       17         it's going to even out, but you do miss -- if

       18         you have got a very coarse data point like

       19         that, and then you are trying to fine tune

       20         around a model, that data may not be the best

       21         data for calibrating a model.  So I don't know.

       22              MS. MOORER:  The other question, Bill,

       23         that I have is if you use this monitor, you

       24         should -- nothing's finalized.  You're going to

       25         see impacts are from that model, but nothing




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        1     CHLORIDE UPDATE

        2         has been finalized or decided -- well, there's

        3         absolutely no impact.  I mean, the model shows

        4         this.  There's a lot of uncertainty around it.

        5         Has the Corps made any decision.

        6              MR. BAILEY:  That's as far as we've

        7         gotten.

        8              MS. MOORER:  Right.

        9              MR. SCANLON:  In the Corps' defense, I'll

       10         offer up and probably should not -- I have a

       11         tendency to do this type of thing -- that is

       12         the thing that is the common change is that you

       13         are contributing to bringing more chlorides

       14         further upstream with the deepening.

       15              So their approaching, you know, seems to

       16         be a coarse modeling standpoint recently, but

       17         it appears that we really haven't achieved what

       18         we're trying to achieve.  Do we have a better

       19         approach; can I offer a better approach; no.

       20              Can somebody; probably, but it's going to

       21         be with very, very deep pockets probably.  I

       22         don't have the answer.

       23              MR. DYSART:  Joel.

       24              MR. FLEMING:  Real quickly, going back to

       25         the flow discussion that Ed was talking about




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        1     CHLORIDE UPDATE

        2         earlier.  Ed did come up with some, you know,

        3         he spoke about confounding factors that

        4         attribute directly to not seeing changes in

        5         salinity with increases in flow in some areas.

        6              There's also -- I think everyone needs to

        7         understand there's criteria and thresholds

        8         established for particular species, in these

        9         models, that have on some of them a salinity

       10         range we were looking for.

       11              So if it doesn't exceed one of those

       12         thresholds, that doesn't necessarily mean

       13         there wasn't a change.  It might not be --

       14         might not have negative impacts on those

       15         species.

       16              What it means by critical threshold, that

       17         we said we would look at, if we met the

       18         threshold for striped bass, for example in

       19         egg survival, then we would not have survival

       20         past those points to a high degree of

       21         certainty, going back and looking at this

       22         thing, certainly I think we've seen some of

       23         like what Ed discussed, the changes that have

       24         happened historically, under, you know, current

       25         conditions that exist.




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        1     CHLORIDE UPDATE

        2              And you know, to a great extent, some of

        3         the habitat or a lot of habitats have already

        4         been degraded.  I think we're looking at

        5         criterias masking that, to some extent.

        6              The other thing I was saying -- I had to

        7         say about this in particular, you alluded to

        8         the fact you guys had some ideas of what may be

        9         causing the model to not react properly.

       10              Could one of those be the simple fact the

       11         drainage of Abercorn Creek is separate from the

       12         Savannah River, to some extent?

       13              I understand it is formed -- it runs

       14         somewhat like a flowing ox bow.  There's also

       15         its own drainage area that receives rainfall

       16         locally.

       17              Has any attempt been made to try to pull

       18         some of the data?  Almost clearly back to the

       19         first slide, I followed it actually pretty

       20         well in some portion of that time frame.  But

       21         initially, it looked like you were reading

       22         here, but there was a reading way up here.

       23              That's what I didn't follow.  I was

       24         wondering if anyone went back and looked?  Did

       25         we have a huge rainfall event during that




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        1     CHLORIDE UPDATE

        2         period of time?

        3              MR. BAILEY:  Modelers used all the

        4         information they could get their hands on.

        5              MR. FLEMING:  But it was flow, mostly flow

        6         information, right?

        7              MR. BAILEY:  Flow, chloride and salinity.

        8              MR. FLEMING:  We're looking at the

        9         Savannah River proper flow.  Abercorn Creek

       10         certainly has its own watershed.

       11              MR. BAILEY:  There aren't any other gauges

       12         or stuff.  That's halfway up the creek, in

       13         between halfway and further up Abercorn Creek,

       14         between the city's intake through Bear Creek

       15         and up to, you know, back where it reconnects

       16         with the river.

       17              There's nothing up there that's maintained

       18         to give either rainfall or chloride levels.  It

       19         could be picking up chlorides, as John talked

       20         about, tannic acid levels coming through the

       21         river, a problem in the past.  It could be

       22         picking up something that comes through the

       23         wetland area.

       24              MR. FLEMING:  Stands to reason we could go

       25         back and almost become qualitative, to some




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        1     CHLORIDE UPDATE

        2         extent.  You could be supplied with data during

        3         rainfall events in Abercorn Creek.  It doesn't

        4         necessarily get to the question you're getting

        5         at, is it going to exceed the threshold you

        6         guys are looking for, but you could determine

        7         what the impacts are going to be, at least at

        8         some -- at -- at least to local rainfall

        9         periods.  I just wondered if anybody --

       10              MR. BAILEY:  They looked at the data every

       11         way they could think of.

       12              MR. FLEMING:  I don't think -- I don't

       13         think -- I don't think you can include

       14         additional data.  I think you can exclude some

       15         data.

       16              MR. DYSART:  David Kyler.

       17              MR. KYLER:  A couple comments.  I'll work

       18         in reverse order of how they occur to me.

       19         Regarding some of the comments Joel made, to

       20         what extent this is common knowledge, you know,

       21         we've had discussions in the press about marsh

       22         die back, and that's been correlated with

       23         drought conditions, increasing salinity, any

       24         activity including the project, an increase in

       25         salinity would have some risk contributing to




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        1     CHLORIDE UPDATE

        2         marsh die back.

        3              For the same reason I said before, it

        4         restores landscapes, freshwater over longer

        5         periods.  The other river system, along the

        6         coast, would have to compensate for higher

        7         salinity adverse impacts.

        8              The other thing about the thresholds,

        9         that Joel referred to in the living resources,

       10         obviously we're not just concerned about

       11         survival of the species, but to help the

       12         species.  In the case of the blue crab, for

       13         example, I think it's been pretty well shown by

       14         research that the blood disease blue crab have

       15         been suffering from is related to higher

       16         salinity.

       17              It doesn't kill them outright, but it

       18         makes them more -- more susceptible to

       19         opportunistic microbial activity.  It is very

       20         complex and there are number of variables.

       21              On the landscape alteration point, it

       22         seems to me even below, we're the next lowest

       23         downstream reservoir on the system, however

       24         upstream the last reservoir is, you know, but

       25         Thurmond is about 30, 40 miles above that.




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        1     CHLORIDE UPDATE

        2         That's the big one.

        3              It stands to reason hundreds, possibly

        4         1,000 square miles of drainage area is below

        5         that.  If you restored enough, and it's

        6         feasible restoring the landscape to attain the

        7         benefits of wetlands in those areas, some of

        8         the effects of this project, and many other

        9         competing uses for the river, could be

       10         supported by that sort of mitigation, including

       11         demands on both sides of the river, South

       12         Carolina and Georgia, as well the environmental

       13         effects I mentioned earlier.

       14         Again, I think, all those reasons support more

       15         exploration of that alternative.

       16              MR. DYSART:  Steve.

       17              MR. WILLIS:  If I was going to be in this

       18         room for a long time, and somebody said they

       19         were going to make sure I had an adequate,

       20         average amount of oxygen for me to breathe over

       21         a period of months or years, any particular

       22         week or day they would have oxygen to me, I

       23         would be interested in extremes rather than the

       24         average.

       25              And I think that's what we're dealing with




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        1     CHLORIDE UPDATE

        2         in this whole project, but in this particular

        3         case especially.  The average salinity is

        4         affected the most by the average, you know.

        5              Okay.  That's interesting.  That's good to

        6         know.  It may be important, but really

        7         important is the outliers.  What happens even

        8         if it's only a relatively small percentage of

        9         change, the highest level of salinity at the --

       10         at the -- what will be the repercussions and

       11         what are the chances?

       12              It's these things we don't expect like a

       13         terrible drought in the wettest place in the

       14         world, South Georgia.  For months and months

       15         nobody predicted, nobody expected that to

       16         happen -- total outlier.

       17              The consequences are tremendous.  That's

       18         the way things were.  It's the outliers that

       19         get you.

       20              I think that it's only judicious and

       21         reasonable to really focus on what will be the

       22         repercussions, at the maximum outlying level

       23         you can imagine happening.  That will, sooner

       24         or later, happen.

       25              MR. DYSART:  That is -- I think in all




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        1     CHLORIDE UPDATE

        2         this why we look at intensity, duration and

        3         frequency, the three dimensions there.  Okay.

        4         I don't see anymore -- Hope.

        5              MS. MOORER:  I had one that was kind of

        6         what raised my question.  Why take a daily

        7         number if it is average that impacts the

        8         system, the municipal system?

        9              Is it some extreme two day event?  Is it

       10         average?  It would seem to me taking an

       11         average, it must be a daily reading that might

       12         produce an average.

       13              Again, I don't know exactly, but that was

       14         my question.  In this instance, is there spikes

       15         or is it long-term?  And for each resource you

       16         have to ask that same question, what are the

       17         impacts of the spikes, what are the impacts of

       18         long-term change?

       19              I think that's what is trying to be done

       20         here, in all of the instances.  We're trying to

       21         look at that, or at least consider it -- at

       22         least considering that.

       23              MR. DYSART:  Bill, looks like we've got

       24         the questions and comments on this.  Was that a

       25         comment or a question?




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        1     CHLORIDE UPDATE

        2              MS. MOORER:  That was a comment.

        3              MR. BAILEY:  I'll just move on.

        4              MR. DYSART:  Okay.  We've got to take a

        5         break and let Bill present.

        6              MR. BAILEY:  Okay.  So we had that tool.

        7         I looked at it under three different scenarios;

        8         low river flow, average flow, and then lower

        9         than flow, a severe drought.

       10              I looked at it under those conditions.  I

       11         looked at it over the low flow period of the

       12         summer months.  It ends up being six or seven

       13         months out of the year.  I looked at the

       14         existing channel, and some alternate depths,

       15         and also looked at some of the mitigation plans

       16         that we have.

       17              So we are looking at the different flows.

       18         The basic evaluation which was on low flows,

       19         which was essentially repeated about every

       20         eight years, some of the severe droughts, those

       21         flows are about every 20 years, so that was

       22         what was evaluated.

       23              MR. WILLIS:  Like we can't be having one

       24         every 20 years -- since we had one in 2001, you

       25         say severe drought, we're not due until --




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        1     CHLORIDE UPDATE

        2              MR. BAILEY:  Okay.  If you live 1,000

        3         years, on age that's what it come out.  Like I

        4         said, that's averages.

        5              MR. WILLIS:  That's misleading.

        6              MR. BAILEY:  Okay.  On lower flows, the

        7         deepening would have no effect on chloride

        8         levels.  Average flows shows a small effect

        9         with a six foot deepening.  Severe drought,

       10         there's slight increases, with all the depths,

       11         and the maximum increase .85 with a six foot

       12         deepening.

       13              So the maximum increase is less than one

       14         on that range of 12, that threshold of 12.

       15              So with the mitigation plans, plan one was

       16         no different.  Plan two, the highest increase

       17         went up a little bit more.  Plan three went up

       18         the same amount, but also showed an increase at

       19         a couple -- two of the other flow conditions.

       20              Plans four and five, again, the maximum

       21         increase goes up a little more.  Plan four ends

       22         up a little higher than plan five.

       23              So our conclusions, we've got an

       24         acceptable tool to predict impacts of chloride

       25         at the city's intake.  The impacts are under




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        1     CHLORIDE UPDATE

        2         average low flows are less than one milligram

        3         per liter.

        4              Severe drought, there are minor impacts.

        5         The maximum concentration is about 10% higher.

        6         The conclusion is we should monitor chloride

        7         levels, if the harbor deepening occurs.

        8              So I think that was the bottom line.  You

        9         were wanting to know what it was.  That's where

       10         we are right now.

       11              MR. BERSON:  Okay.  I'll jump in.

       12              MR. DYSART:  Will.

       13              MR. BERSON:  It seems to me if the

       14         baseline model couldn't be correlated to the

       15         existing data set, then you're adding two

       16         degrees of separation, at least, by putting in

       17         project conditions.

       18              If you are not sure the model is working

       19         in the first place, if you graft on different

       20         depths and then take it the second step, and --

       21         and I just don't see how you have -- if you

       22         can't make the model work, based on existing

       23         data of uses, are these prognostications?

       24              MR. BAILEY:  I guess the Corps doesn't

       25         agree with your first statement that -- that




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        1     CHLORIDE UPDATE

        2         the model can't make predictions.  We think the

        3         model is acceptable for that.

        4              MR. DYSART:  Other comments.

        5              MR. BERSON:  I've got one.  I think

        6         there's a disagreement.  I think you're in

        7         serious deep water here.  And I don't think you

        8         can see -- I say that because you say it's

        9         okay.  It's okay.

       10              There are serious problems with this.  I

       11         guess I'm asking, what are you proposing to do

       12         about it?  Are you just going to pretend that

       13         these numbers are okay?

       14              MR. DYSART:  Sounded like a

       15         straightforward question to me -- a little

       16         humor.

       17              MR. BERSON:  I'm sorry.  I don't mean to

       18         slaughter the messenger here.  I'm asking, what

       19         do you propose to do?  We're talking about

       20         potable water for the City of Savannah, kind

       21         of.

       22              MR. BAILEY:  No.  That's not what we're

       23         talking about --

       24              MR. KEEGAN:  Industrial use, water used

       25         for manufacturing.




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        1     CHLORIDE UPDATE

        2              MR. BERSON:  We're talking about

        3         industrial use water and trying to shift

        4         everyone over so we don't use the aquifer as

        5         much.  That's the primary water use the city is

        6         pursuing.

        7              MR. KEEGAN:  I'm sorry.  I've got to jump

        8         in.  Very early in Bill's presentation, he

        9         showed the level at which we were trying to

       10         predict versus the level of potable water.

       11              We're talking 12 ppm -- 12 milligrams per

       12         liter is what we are interested in for

       13         industrial use.  The limit set by EPA, for

       14         potable water, is 250 ppm.  We're no where near

       15         that level.  This is not a potable water issue.

       16              We should not be getting excited thinking

       17         it is.  This is industrial use only.  It's

       18         based around a 12 milligram level.  Am I

       19         correct, Bob?

       20              MR. SCANLON:  I agree with what Larry is

       21         saying.  I tried to make it clear, this is

       22         purely an industrial level.  It has to do with

       23         how chlorides react in the boilers.

       24              MR. BERSON:  I stand corrected, but

       25         nonetheless, we're still in a situation where




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        1     CHLORIDE UPDATE

        2         we are predicting results, critical to the

        3         city, on a model that is clearly faulty on its

        4         face, or let me just say I think that -- I

        5         think that my message to the Corps would be --

        6         message from me to you, you need to show us it

        7         is a better model than what it appears on its

        8         face.

        9              Based on what you have showed us today, I

       10         think that you have an issue going forward if

       11         you can't.

       12              MR. BAILEY:  Okay.  Thank you.  I would

       13         point out this part of this graph showing the

       14         model is predicting higher at levels above 13,

       15         predicting higher than the city's data.

       16              If you are worried about high numbers, the

       17         model is over-predicting on the high end of the

       18         scale.  So one could argue that the model will

       19         over-predict.

       20              MR. BERSON:  I'm just kind of interested

       21         in accurate models.  That's sort of the bottom

       22         line.  I think everyone should be.

       23              MR. BAILEY:  You can give him the line

       24         USGS uses, all models are wrong.

       25              MR. BERSON:  Agreed.  Usually, after you




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        1     CHLORIDE UPDATE

        2         apply them to the circumstances you're trying

        3         to model, not in calibration.

        4              MR. BAILEY:  No, that's in calibration.

        5              MR. SCANLON:  I think really this is an

        6         issue and there's going to be a lot more

        7         discussion.  I know the dialogue going on with

        8         John Sawyer who runs the plant.

        9              I'm comfortable leaving it at that point.

       10         We're not talking about something -- we're not

       11         talking about potable limits.  We're talking

       12         about a very specific issue.

       13              I think there is dialogue underway

       14         addressing that specific issue.  Just for the

       15         record here, I want to say that that dialogue

       16         needs to continue.  I think that's the point

       17         I'm making.

       18              How this gets resolved, I don't have the

       19         answer.  I don't think anybody, in this room,

       20         has the answer right now as to how it's going

       21         to get resolved.  I think the dialogue is

       22         continuing.  I'm comfortable with that.

       23              MR. DYSART:  David Kyler.

       24              MR. KYLER:  Is there still a modeling

       25         technical review group -- there used to be




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        1     CHLORIDE UPDATE

        2         during the first model?

        3              MS. MOORER:  It was reviewed by USGS too.

        4         I mean, the modeling technical group was set up

        5         to try to -- if I remember correctly -- I

        6         wasn't involved at that point, but to try to

        7         assist in creating the very first model for the

        8         harbor that we were trying to come up with.

        9              MR. KYLER:  Yeah.  So is there any

       10         existing review group that's evaluating the

       11         sufficiency of this model, outside the Corps?

       12              MR. BAILEY:  The modeling technical review

       13         group that the SEG established doesn't exist

       14         any longer.

       15              MR. KYLER:  There is no other group that's

       16         checking or evaluating this model, outside the

       17         Corps?

       18              MR. BAILEY:  Besides USGS that we paid to

       19         to look, no.

       20              MR. KYLER:  Yeah.  Do we have any

       21         non-technical ability to translate that -- the

       22         standards for such modeling -- into what the

       23         average person would understand as to the

       24         accuracy or sufficiency?  I'm trying to get at

       25         a concern Will was raising.




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        1     CHLORIDE UPDATE

        2              MR. BAILEY:  I don't know.

        3              MR. DYSART:  Bob.

        4              MR. SCANLON:  I think that you can't

        5         necessarily be critical of the entire model

        6         because of this one aberration.  I mean, this

        7         is one specific thing where recall, we're

        8         trying to model something which is not the same

        9         thing that's being measured.  That in itself

       10         creates a multitude of complexities trying to

       11         model.

       12              We're trying to model a correlation to

       13         something which is what modeling is all about.

       14         To get to your specific point of, you know, is

       15         the model technically reviewed, that's

       16         basically what all the resource agencies are

       17         doing now is looking at the results of the

       18         data.

       19              I think that is -- they're performing the

       20         function.  I think your concern is missing

       21         that.  In fact, what they are doing is looking

       22         at the results.

       23              They have all looked and said yeah, we

       24         believe that this model is as good as we can

       25         get or as good as we can reasonable expect to




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        1     CHLORIDE UPDATE

        2         have.  Now we're going to look at the

        3         predictions that are made based on that.

        4              Again, all models are wrong.  Some are

        5         useful at some point.  All of this, no one -- I

        6         don't think anybody believes that you are going

        7         to be able to predict exactly what's going to

        8         happen in the future.

        9              There's always some variable that got

       10         missed.  It's just -- all the model does is

       11         increase our level of confidence in the

       12         decision you're making is right.

       13              They're only as good as the data and what

       14         went into it to create them.  You can have all

       15         kinds of things that appear to correlate.  It

       16         may be that they only appear to correlate.

       17         It's an inexact science.  By definition, it's

       18         an inexact science.

       19              MR. KYLER:  Let me respond with one

       20         statement; in other words, there are universal

       21         standards to compare the accuracy of one model

       22         as compared to another, in recognizing both are

       23         imperfect?

       24              MR. SCANLON:  I don't know whether there

       25         are or not -- any modelers here?




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        1     CHLORIDE UPDATE

        2              MR. DYSART:  Steve, Judy.

        3              MR. WILLIS:  It seems to me this is not

        4         just about the amount of chloride in the water,

        5         at the point of the Savannah intake.  Maybe I

        6         just don't understand this.

        7              It seems to me what we're really talking

        8         about is measuring saltwater intrusion in

        9         general.  That's really the issue.  If we can't

       10         predict and measure what might likely happen,

       11         and what the consequences would be at this one

       12         point on Abercorn Creek, you know, what about

       13         everywhere else?

       14              It seems like we were talking about

       15         saltwater intrusion, basically, and if we have

       16         such a high level of uncertainty at this one

       17         point, it makes me wonder what about all the

       18         other points.

       19              MR. BAILEY:  I think the issue is

       20         saltwater changes.  Water changes those low

       21         levels, seawater is 32 to 38,000 here.  You

       22         want to know what happens at 10, does 10 change

       23         to 11.

       24              The instruments -- I'm not sure how far

       25         the instruments go down.  The instruments don't




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        1     CHLORIDE UPDATE

        2         go down -- the instruments don't go down very

        3         much below 10.

        4              I think the city is getting -- does their

        5         stuff with a lab, chemistry, so that's

        6         different than a field instrument.  It's hard

        7         to measure at those levels.  And if you can

        8         measure it, it's hard to be accurate, hard to

        9         get repeated measurements at the -- of the same

       10         number.

       11              So because something is -- because this is

       12         an add-on model, which is an add-on to the

       13         basic hydrodynamic model, the add-on has

       14         uncertainties in it, which it does -- I don't

       15         necessarily think that that's -- that you can

       16         say well then, the basic hydrodynamic model is

       17         unacceptable.  That's a big leap.

       18              MR. WILLIS:  No.  I'm just saying it --

       19         I'm not suggesting it, in and of itself, says

       20         that.

       21              I'm just saying if, with using real data

       22         and a real testing situation, this one point,

       23         if there's this level of uncertainty, it does

       24         sort of you make you kind of wonder well,

       25         what's the real final result going to be at all




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        1     CHLORIDE UPDATE

        2         the points we're interested in measuring.

        3              I'm not saying it necessarily does that.

        4         I know you're talking about two different

        5         models.

        6              MR. BAILEY:  Yes.

        7              MR. WILLIS:  But it does seem like the two

        8         different models would ultimately correlate

        9         with each other.

       10              MR. BAILEY:  Part of that may go to

       11         adaptive management and monitoring afterwards.

       12         You make the best evaluations and best

       13         predictions of what's going to happen, and then

       14         if you -- based on those, if you think the

       15         project is acceptable, then you still try to

       16         monitor afterwards.  Well, we're -- does what

       17         actually happens, is that what we thought was

       18         going to happen, or did we miss something, are

       19         there larger effects than what we thought?

       20              That's one of the reasons that we'll be

       21         doing post-construction monitoring.  I'm not

       22         sure how else to address that.

       23              MR. DYSART:  Judy.

       24              MS. JENNINGS:  About the comment about the

       25         drinking water standard and potable water




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        1     CHLORIDE UPDATE

        2         standards, I know we're talking about

        3         industrial.

        4              In terms of my issues, on the very

        5         surface, I really don't care whether Abercorn

        6         Creek is 11, 12, 13, 14 or 250, but we've spent

        7         a decade or two, you know, moving industry out

        8         of the aquifer and on to surface water.

        9              And to any extent industry loses

       10         confidence in Bob's ability to deliver

       11         industrial quality water to them, it is a

       12         bigger issue, because I don't want to reopen

       13         the debate about well, I got out of the aquifer

       14         and did this because I had that option.

       15              I don't want people -- it would become a

       16         much larger debate, if the confidence level

       17         from industry in that source were to be

       18         reduced.

       19              MR. SCANLON:  Your concern there the

       20         aquifer has a higher mineral content than the

       21         river water, from that standpoint the surface

       22         water is preferred for this particular

       23         application.

       24              I don't think you need to be concerned

       25         this is going to drive people back to the




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        1     CHLORIDE UPDATE

        2         aquifer.  That's not --

        3              MS. JENNINGS:  If you say that.

        4              MR. SCANLON:  EPD is not going to let that

        5         happen period.  It's not likely to happen.

        6         Really, there is no reason for it to happen.

        7         We're talking about a very, very, very low

        8         number and a very specific application.

        9              I don't think we can jump to say just

       10         because we have a problem, with this particular

       11         thing, that we've got a problem with all of it,

       12         the whole modeling effort.

       13              It's just we are trying to really, really

       14         fine tune.  We're down at the area where it is

       15         very difficult to do that.  I mean the numbers,

       16         just usually when people talk about salinity

       17         they talk parts per thousand and now we're

       18         talking 12 parts per million.

       19              It's a -- I think we're making too much of

       20         this for our concerns here, but it is a

       21         concern.  It's a very specific concern.  Like I

       22         said, I'm confident we're going to come to some

       23         resolution.

       24              MR. DYSART:  Seeing no more comments, the

       25         next item on the agenda -- thank you, Bill.




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        1     INJECTION SYSTEM UPDATE

        2         Hope.

        3              MS. MOORER:  For those of you who don't

        4         know, we're doing the injection system.  That

        5         is what is being looked at right now as

        6         mitigation for the project, for any reduction

        7         of DO in the water, and GPA has a suggestion.

        8              Maybe a demonstration project would be in

        9         order to answer questions, alleviate concerns,

       10         look at how the system will operate in the

       11         river.

       12              We have -- the system is on order.  It

       13         should be the cones, the Speece Cones as they

       14         are called, should be arriving this month.  The

       15         water quality, continuous water quality

       16         monitors are installed and operating at the GPA

       17         docks, the Corps' dock, and on the dock that is

       18         near where they will be located -- right out

       19         where they will be located, the cones

       20         themselves, for the temporary project.

       21              Last week the contractor began the in

       22         water sampling, the horizontal and vertical

       23         profile up and down the channel, in that

       24         section that it is believed the oxygen may

       25         disburse, so they're trying to get the baseline




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        1     INJECTION SYSTEM UPDATE

        2         prior to operation of the cone.

        3              The cone goal date for start-up is July

        4         30th, and that is contingent on us getting the

        5         transformer installed in time to run these,

        6         because we needed power there to run them, an

        7         additional amount than what is being used

        8         currently over there on Hutchinson Island.

        9              The contractor has contacted me.  We've

       10         got to get together about some dates.  She was

       11         out of the country, my project manager, so

       12         we're going to get some dates.

       13              I'll e-mail them out to you for you to

       14         visit the site, if you would like to.  It would

       15         have to be limited, any one date for numbers of

       16         folks at any one time.  We'll have a couple of

       17         dates available, so you can go out and see how

       18         it operates, look up close.

       19              You won't see much because it would be

       20         down in the water.  You can look at the cones,

       21         hear it, ask questions about it, you know, see

       22         how it is set up.  There will be two cones on

       23         one barge, so you can go to the site.

       24              We'll e-mail out the dates to everyone, at

       25         that time when I'm able to talk to her, and set




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        1     INJECTION SYSTEM UPDATE

        2         those up.

        3              MR. DYSART:  Okay.  David Kyler.

        4              MR. KYLER:  You may recall the last time

        5         we discussed this, or one of the last times, I

        6         was pointing to energy cost savings --

        7              MS. MOORER:  Energy costs for the

        8         demonstration project will be much higher than

        9         energy costs at operation.  The reason for that

       10         is they will temporarily be mounted on a barge,

       11         above water level, and that's not where they're

       12         recommended to be operated.

       13              They're recommended to be operated at or

       14         below water level.  These energy costs are not

       15         what are normal.  The company has these in

       16         operation in other places, so the company has

       17         energy costs that you can gather from other

       18         operations --

       19              MR. KYLER:  Yeah --

       20              MS. MOORER:  -- and that bill can be used,

       21         within the EIS, and looked at.  That will

       22         disclose what the energy costs are.

       23              For this project, this demonstration

       24         project, they will be higher because of the

       25         power required to pump the water up into the




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        1     INJECTION SYSTEM UPDATE

        2         cones and back out.

        3              MR. KYLER:  I just remind everyone that I

        4         am talking about developing the aspect of the

        5         impact, that I was pointing out not so much

        6         costs as demand, and what that implies for how

        7         the energy is provided and the environmental

        8         impact of that energy.

        9              MS. MOORER:  Right.  I don't know if

       10         cellular power, later on, is an option.  It may

       11         be the pumping requirements are too high for

       12         what's available in cellular power at this

       13         time.

       14              I don't know.  I'm sure that can be

       15         answered by Dr. Speece, who developed these.

       16              I'm putting together -- we'll have

       17         brochures that will be available.  I have --

       18         just have to get the final sign-off.  They will

       19         be available when you visit.  I have a fact

       20         sheet.  We'll post extras on the Internet so

       21         you can see them.

       22              I have the one pager.  It's a little more

       23         technical than the public brochure.  I'm going

       24         to try to get those to businesses along River

       25         Street about the monstrosity sitting on the




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        1     INJECTION SYSTEM UPDATE

        2         barge.  People will ask questions and they will

        3         be able to answer them.  It is a little more

        4         technical version, the one pager information

        5         sheet, that we've sent around to maritime

        6         interests right now.

        7              Because the monitors actually look like

        8         they're boxes with wires coming out of them, so

        9         they don't look good sitting on a dock

       10         somewhere.

       11              We had a lot of coordination with the

       12         Coast Guard and the pilots and folks like that,

       13         so they understand what these are.  And that

       14         one pager is a little more technical in

       15         explaining what the units are, what they do.

       16              We'll post it as soon as we get the

       17         brochure approved.  I'll do that one pager

       18         today, give that to Larry.  I'd send it out,

       19         but the size of it is a little larger than some

       20         e-mails will accept.

       21              MS. JENNINGS:  The monitors, they're

       22         measuring the amount of dissolved oxygen at a

       23         spot and --

       24              MS. MOORER:  Then the boat, Monday and

       25         Tuesday, will be going out in the channel and




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        1     INJECTION SYSTEM UPDATE

        2         monitoring up and down channel, vertical and

        3         horizontal profiles throughout the column of

        4         ph, and salinity, and temperature, and DO,

        5         yeah.

        6              We tried to get feedback from the

        7         agencies, and actually Jim Greenfield, who

        8         works with EPA gave us some input on what would

        9         be useful for the bigger issue, the TMDL issue

       10         as well, because this is all being considered

       11         for that problem as well.

       12              So I'm trying to make this test project as

       13         useful as we can, it being a very short-term

       14         demonstration project, we're trying to make it

       15         as useful as we can for all the agencies.

       16              MS. JENNINGS:  So I think I've asked this

       17         before, I realize that's the kind of

       18         information we're getting; do any of the

       19         biology agencies want to know about the

       20         behavior that they might be seeing from the

       21         seas, I mean like, you know, a really rich

       22         environment?

       23              What if you get a lot of concentrations of

       24         fish getting high on oxygen?  They could

       25         actually get too much.




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        1     INJECTION SYSTEM UPDATE

        2              MS. MOORER:  I've asked the question and

        3         I've gotten feedback from DNR about what

        4         questions they have about the operation of this

        5         system, and how it might impact the species.

        6              I'm also working with Amanda Meadows of

        7         the Nature Conservancy.  They're working on a

        8         project with South Carolina DNR with the

        9         short-nose sturgeon.

       10              They want to put radio tags on sturgeon or

       11         radio monitors on sturgeon or different

       12         monitors out in the channel.  It's GPS-like,

       13         they know where all of them are, but when they

       14         pass by a certain radio monitor, then they know

       15         that fish has gone by.  It's in this area.

       16              So we're sharing data with them of when

       17         this is starting, and what are the levels of

       18         oxygen, and they're going to share data with us

       19         to see if it has any impact on that species for

       20         one.

       21              Right now, they're hanging out above the

       22         Houlihan Bridge, she said.  I don't know if it

       23         will -- the oxygen will disburse that far and

       24         get up there, they will find it and come down,

       25         what have you.




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        2              I've heard that you might want to take

        3         your fishing pole and go down near where the

        4         oxygen is coming out, at the time, but other

        5         than that, besides getting feedback and then

        6         having a final report to share with the

        7         biologist, I think that's where we are with

        8         trying to get involvement.  We tried, yeah, and

        9         have gotten feedback, so --

       10              MR. DYSART:  Okay.  Thank you.  Next item

       11         on the agenda, Operating Guidelines report,

       12         Will.

       13              MR. BERSON:  Am I still acting?  I am

       14         still acting.

       15              MR. DYSART:  No stars on your shoulders.

       16              MR. BERSON:  Y'all have to approve me

       17         before I'm not acting.  The Operating

       18         Guidelines Committee met on June 10th, I think.

       19              And in addition to discussing whatever, I

       20         should serve as chair, we looked at the Beach

       21         Erosion Committee's request to approve the

       22         beneficial use of -- to do renourishment on

       23         Tybee.

       24              Since that time, I've circulated the

       25         minutes, and Bill Farmer came back with some




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        1     OPERATING SYSTEM GUIDELINES REPORT

        2         fairly appointed points about what we had

        3         decided.

        4              The group, in its discussion, had come to

        5         the conclusion that the SEG is sort of in the

        6         business of delineating what ought to be looked

        7         at, and seeing if it's actually done, and less

        8         in the business of endorsing elements of a

        9         project.

       10              I'm going to use the prerogative of acting

       11         chair.  It's been sort of a long meeting

       12         already.  If y'all want to discuss it in the

       13         open right now, we can do that.

       14              If we can get Bill to come and talk to the

       15         Operating Guidelines Committee, at the next

       16         interim meeting, we can handle that.  I'm

       17         amenable to both.

       18              It's going to be a fairly protracted

       19         discussion, I have a feeling.  I even left my

       20         notes at home, just to make it easier for

       21         myself.

       22              I'll leave it to you.  I know we're under

       23         a time constraint to address this at this

       24         meeting.  If I'm wrong, somebody please -- in

       25         terms of the schedule of the project, I don't




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        1     OPERATING SYSTEM GUIDELINES REPORT

        2         think there's anything particularly pressing.

        3              I think the larger issue, just to sort of

        4         frame it, what is the SEG's role in evaluating

        5         reports from committees; is it to sort of check

        6         it off that it has been done, is it to go

        7         deeper and look at the adequacies, or as in

        8         this particular case, the Beach Erosion

        9         Committee has suggested that the SEG endorse

       10         renourishment.

       11              And so the initial sort of discussion was

       12         that that was not what the SEG was going to do.

       13         It wasn't going to be endorsing elements of the

       14         project in isolation.

       15              I am happy to hear discussion today or if

       16         it would be more beneficial to do it sidebar,

       17         at the next interim meeting which everyone is

       18         invited to the interim meeting, which is better

       19         for you.  If you come, I know it's such fun,

       20         please keep that in mind.

       21              I'm not trying to move the conversation

       22         away from the main group.  In the interest of

       23         time, I wanted to offer the alternative.

       24              MR. DYSART:  It would seem to me you've

       25         got knowledgeable parties, Bill representing




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        1     OPERATING SYSTEM GUIDELINES REPORT

        2         the Beach Erosion Committee, and y'all

        3         obviously have spent time on this.  If this

        4         surfaced very recently, there needs to be some

        5         substantive discussion among the people who are

        6         well-informed, as opposed to our simply

        7         listening and being observers; does that make

        8         sense to you, Bill?

        9              MR. FARMER:  The -- not really.  I think

       10         the basic discussion is what is the role of the

       11         SEG.  I'm sort of amazed that we'd be

       12         addressing that this late, you know, eight

       13         years into the project.

       14              But the Operating Guidelines were written,

       15         and we're fairly clear as to what the role of

       16         the SEG was, and it had a couple of components

       17         to it.  And it's time now to implement one of

       18         the components that has not, thus far, been

       19         implemented.

       20              I think the SEG committee tried to do

       21         that.  We really want to do that as the SEG.  I

       22         don't know -- are you recommending a change to

       23         Operating Guidelines, Will?

       24              MR. BERSON:  No, I mean we actually --

       25         it's my impression that we looked at that same




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        1     OPERATING SYSTEM GUIDELINES REPORT

        2         material and decided that that was not what was

        3         required of us.

        4              You, I know, from the e-mail feel

        5         differently about that.  I'm more than willing

        6         to listen or open it up to the field, whatever

        7         the pleasure is.

        8              MR. DYSART:  Larry.

        9              MR. KEEGAN:  As I recall the discussion of

       10         the Operating Guidelines Committee meeting, it

       11         started to and eventually revolved around

       12         should the SEG evaluate whether work or

       13         studies, that were done, were done in

       14         accordance with the scope -- the work was done

       15         that was asked for, and rather than the SEG

       16         approving the conclusions of the study.

       17              That seemed to be a point of discussion,

       18         was the SEG supposed to say we accept the

       19         conclusions; was the SEG supposed to say yeah,

       20         the work that was asked for was done

       21         appropriately, met the scope and the technical

       22         requirements and all.

       23              So there's a difference there, what is it

       24         the SEG is accepting, is it the conclusions or

       25         is it the way the work was done; do I




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        1     OPERATING SYSTEM GUIDELINES REPORT

        2         understand that correctly, from what you

        3         remember, Will?

        4              MR. BERSON:  The other part is, in this

        5         instance, we're being asked to essentially

        6         endorse an element of the project.  That's

        7         another -- in addition to do we like the

        8         conclusions, in addition to comparing the

        9         product, how it was specified, how it was done,

       10         the Beach Erosion Committee is asking the SEG

       11         to endorse the beach renourishment as a

       12         component of harbor deepening, which is an

       13         extra step in my opinion.

       14              MR. DYSART:  Morgan.

       15              MR. REES:  If I may, having been pretty

       16         heavily involved in the development of the

       17         Operating Guidelines, I'm sympathetic to

       18         Bill's observations in his e-mail, and I don't

       19         want to say I disagree with them.

       20              I'm just not sure we're all on the same

       21         semantic wavelength.  Some of you may recall

       22         the semantics police, when we were developing

       23         the guidelines and trying sort out whether we

       24         are all using the same definition for the same

       25         terms.




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        1     OPERATING SYSTEM GUIDELINES REPORT

        2              I think we might be, at this point,

        3         because frankly in the Operating Guidelines

        4         Committee meeting, and I agree with Will's

        5         little report he wrote up, I think he

        6         characterized correctly what we had in mind.

        7              Why, is that a violation of the Operating

        8         Guidelines, as I think you did.  So I think we

        9         need to work out the semantics among those who

       10         have this keen interest.

       11              I don't think we tried to do anything

       12         different from what the Operating Guidelines

       13         Committee or the Operating Guidelines

       14         themselves call for.

       15              And if you think we did, Bill, then we

       16         need to figure out why you think that and why

       17         we don't.

       18              MR. FARMER:  All right.  Just thinking of

       19         it in a broad brush, take the chloride issue

       20         here.

       21              It was determined, by the SEG, that the

       22         corps should study and model the chloride

       23         issue.  They went off and did that and came

       24         back with the results, and the city, they

       25         weren't happy, entirely, with the results.




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        1     OPERATING SYSTEM GUIDELINES REPORT

        2              And therefore, it's an issue that is not

        3         resolved.  Okay.  So there was feedback from

        4         SEG members, based upon what the Corps had

        5         done.  Now, the SEG had organized, in addition,

        6         the individuals being SEG inputters.  They

        7         established these committees to be inputters to

        8         the SEG also, rather than just an individual or

        9         a company or an entity.

       10              So we established all these committees to

       11         really concentrate on a few little fish, beach

       12         renourishment, and the committee concentrated

       13         on beach renourishment.  Anyway, the Corps went

       14         off and did studies.  They published the

       15         studies.  The studies came to committee to see,

       16         on behalf of the SEG, whether the committee

       17         liked the results or agreed to it, whatever

       18         like that, you know.

       19              So the committee did that, and we wrote a

       20         report to the SEG of what the committee

       21         thought.

       22              And the SEG's Operating Guidelines are

       23         fairly clear.  It says that all committee work

       24         products will be subject to approval and

       25         acceptance by the full SEG.




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        1     OPERATING SYSTEM GUIDELINES REPORT

        2              Now, let me repeat that, all committee

        3         work products will be subject to approval and

        4         acceptance by the full SEG.

        5              So after our committee looked at the

        6         results of what the Corps did, we came to a

        7         conclusion, and we're making that conclusion

        8         known to the SEG for approval and acceptance,

        9         as per the Operating Guidelines.  So the issue

       10         basically is, is that sentence clear, or should

       11         it be in there at all, or should we take it

       12         out.

       13              I don't see a reason to take it out.  Now,

       14         as far as whether it's beneficial to Beach

       15         Erosion to keep it in, keep it out, I don't

       16         think that's relevant.  I think there's a state

       17         law that got passed that the Corps is

       18         responding to.  I don't think the outcome of

       19         what's in the Operating Guidelines is going to

       20         physically alter what happens, but on a

       21         theoretical basis, why do we have all the

       22         committees still in existence?

       23              They have recommended studies to be done

       24         and the Corps' off doing them, so we should

       25         disband the committees -- I mean, if they're




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        2         not going to review the output of the Corps,

        3         there's no reason to have committees any

        4         longer, is there?

        5              MR. DYSART:  David Kyler and then Hope.

        6              MR. KYLER:  This is just, you know, off

        7         the top of the head thinking.  It seems to me

        8         this is a bit analogous to some of the things

        9         we talked about in the way of evaluating the

       10         model, and the impacts the model is trying

       11         allegedly attempt to address.  That is the

       12         systemic nature of these and use of the

       13         product.

       14              In the statement Bill read, the product

       15         could be an analysis product, could be a report

       16         with a recommendation.  I think that's the

       17         source of the semantic ambiguity here, but it

       18         could be any number of committee's "products"

       19         would be accepted, but when taken in their

       20         entirety, because of compounding interpretive

       21         effects of multiple recommendations, the

       22         project -- some aspect of the project, some

       23         aspect of the recommendations, those various

       24         committee reports represent, would not be

       25         acceptable.




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        2              MS. MOORER:  That's exactly what we

        3         discussed at the meeting, is that in a lot of

        4         other reports it was data collecting, collect

        5         this data, or make a model, or give us your

        6         opinion on where the fish are what time of the

        7         year -- go study that.

        8              Those were studies -- and how much beach

        9         sand will be lost to the deepening, that report

       10         does include, I think, in the coastal erosion

       11         additional analysis, there is included that

       12         determination, the harbor deepening will have

       13         this impact.

       14              But what -- with the placement issue, what

       15         we discussed, it crossed over the line of a

       16         report back of impacts, and kind of moved into

       17         what you're going to do for the project for

       18         mitigation, for basically for mitigation, what

       19         are you going to do for the project, where are

       20         you going to place the sand.

       21              And a problem that we discussed was can

       22         you tell -- can you really tell if that's

       23         acceptable, when you don't have the bigger

       24         picture of the entire mitigation plan

       25         available.  And that's what kind of you're




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        2         talking about.

        3              MR. KYLER:  Exactly.

        4              MS. MOORER:  This is a small component.

        5         How can you endorse a small component, if you

        6         don't know what exactly it would have in the

        7         bigger picture component.  That was kind of the

        8         issue.

        9              What we talked about was it wasn't

       10         necessarily the acceptance of the report.

       11         Everybody thought that was a part of our role

       12         was accepting the report back, but it was what

       13         the report stated, and it went to the bigger

       14         picture of the final project.

       15              We study fish two years.  They move here,

       16         here, here.  We study the marsh.  This is what

       17         we found.  It's not -- it didn't move into

       18         we're going to put a new cut here, fill in this

       19         cut -- do you accept that?

       20              Until you know the whole project picture,

       21         you can't accept that one little piece.  That

       22         was part of the concern, I think, that people

       23         had.

       24              It wasn't necessarily -- it was a bigger

       25         picture as well as do we really -- should we




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        2         really accept that recommendation, at this

        3         point of the project?

        4              MR. FARMER:  That comes -- might become a

        5         question too, when and not if -- if.  I think

        6         the recommendation of the committee was to say

        7         no to the if, and not a no to the when.

        8              I think the Operating Guidelines say two

        9         things.  In the very first paragraph, first of

       10         all it says that one of the deliverables or the

       11         outputs is for the SEG to approve the scope and

       12         content of the studies, okay, and then the

       13         committee agrees.

       14              That's one function the SEG should do.

       15         Number two, deliverable is to agree the SEG is

       16         to agree to impacts of the project and the

       17         resulting appropriate mitigation actions.

       18              MS. MOORER:  Right.

       19              MR. FARMER:  Now, as far as Beach Erosion,

       20         they have determined what the impacts are, and

       21         they have also determined what the mitigation

       22         ought to be, in the report.

       23              So as far as the ocean side of beach

       24         renourishment, they are sort of done.  So the

       25         Beach Erosion Committee said okay.  You're




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        2         done.  We evaluated what they concluded.  We

        3         like what they concluded.

        4              Therefore, we're recommending to the SEG

        5         they agree too.  It might be a valid point to

        6         say well, we don't -- we shouldn't approve it

        7         now.  Maybe we should wait until the very final

        8         month of the whole project to see if there's

        9         not something else that might affect that.

       10              That might be a valid point.  The point is

       11         still the basic point whether the SEG should

       12         approve it at all.

       13              I think the committee has concluded that

       14         they should not, and the Operating Guidelines

       15         appear to say that the SEG should, because the

       16         function of the SEG is clear, in the Operating

       17         Guidelines, to be an advisory to GPA.

       18              If we are going to say we're not going to

       19         give them that advice, then we need to rewrite

       20         the Operating Guidelines and not do it.  That's

       21         up to the group here, whether we want to give

       22         advice, or whether we want to have a public

       23         forum and chit chat, you know.

       24              Again, it comes down to what is the basic

       25         function of the SEG?  Is it to be a public




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        2         forum only, or is it to be an advisory body to

        3         GPA as written?

        4              MR. DYSART:  Larry, please.

        5              MR. KEEGAN:  As I recall the discussion,

        6         unfortunately I wasn't part of the e-mail chain

        7         and the notes, but as I recall the discussion

        8         in the Operating Guidelines Committee meeting,

        9         part of that discussion was trying to deal with

       10         the specific wording of the recommendation from

       11         the Beach Erosion Committee.

       12              And there was some talk, as I recall,

       13         about perhaps if the wording were different,

       14         then you know people would feel more

       15         comfortable with it.

       16              There was no question, that I gathered,

       17         about the acceptability of the way the work was

       18         done or the conclusions, but I had the

       19         impression that part of the concern was because

       20         of the way -- the specific wording of the

       21         recommendation of the Beach Erosion Committee

       22         was a bit beyond the guidelines of the SEG.

       23              I think we should not lose sight of that

       24         fact.  This may not be something that needs to

       25         be dealt with by reexamination of the basic




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        2         Operating Guidelines.  Perhaps, a reexamination

        3         should look at the wording of the

        4         representations to be approved by SEG.

        5              MR. BERSON:  In any case, if we decide

        6         that the SEG needs to pass judgment on these

        7         sort of things, there are other studies we're

        8         going to have to go back and do that about.

        9              MR. KEEGAN:  Many.

       10              MR. BERSON:  Just to sort of -- there are

       11         implications of how we do not only going

       12         forward, but retroactively as well, and I'm

       13         answering here to other folks thinking about

       14         I'm glad we're having the discussion.  That's

       15         just as well.

       16              MR. DYSART:  Let's -- it's about 12:20.

       17              MS. VAUGHN:  We only have the room until

       18         1:00 o'clock.

       19              MR. DYSART:  The views seem to be very

       20         clear.  On Bill's views, on behalf of the

       21         committee, views have been expressed.  I think

       22         there needs to be some discussion, and I think

       23         there needs to be a decision about do you want

       24         to spend the next 40 minutes, in lieu of what

       25         is on here, or would it be more profitable for




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        2         the principals to have this discussion off

        3         channel, and bring it back, as opposed to

        4         people who are not terribly invested in the

        5         nuances here simply spending 40 minutes

        6         listening?

        7              MS. MOORER:  I would agree with you and

        8         suggest maybe we have the Operating Guidelines

        9         Committee bring a resolution, and bring it back

       10         to the SEG.

       11              I would also ask that I know Georgia DNR

       12         has a concern with the wording, and the way

       13         it's written, and voting to endorse something

       14         at this point.

       15              I don't know if other agencies do as well.

       16         I would ask that if other agencies would

       17         participate, in the Operating Guidelines

       18         Committee, to express views about the

       19         importance with a vote, which is a consensus

       20         vote essentially, but it is endorsing

       21         something, at this point, as opposed to later

       22         on.

       23              The agencies have another formal role, but

       24         if you can't participate in this part here, I

       25         think it would be important to have those views




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        2         as well.

        3              MR. DYSART:  My view is that there needs

        4         to be further discussion, before we continue on

        5         this.  I suggest that for the consideration of

        6         the body.

        7              Is there a consensus on that?  Is there

        8         support for having the discussions outside of

        9         this meeting, and bringing it back with a

       10         report next time to the full SEG?

       11              MR. SCHALLER:  Yes.

       12              MS. JENNINGS:  I agree with Hope that we

       13         need -- if we take it offline, we need more

       14         people than we had at the last conversation,

       15         because we're not going to be able to move any

       16         further than we did the last time without more

       17         voices being at that table.

       18              MR. DYSART:  This body would obviously

       19         recommend all interested parties be there, be

       20         part of this discussion, and seeing no serious

       21         objection to that, I recommend we do that, and

       22         that's I would suggest.

       23              MR. BERSON:  To advance this conversation,

       24         what I would propose is that Larry, I'll copy

       25         you on this.  I'm sorry you didn't have it




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        2         somehow.  I went awry with your e-mail.

        3              If you would post it, if you are not able

        4         to make the meeting, I would be pleased to hear

        5         from you just in an e-mail what your thinking

        6         is based on that.

        7              MS. MOORER:  Bill -- if you could, post

        8         Bill's response.

        9              MR. WILLIS:  If that's okay.

       10              MR. FARMER:  Sure.  That's fine.  I think

       11         the basic question is what is the function of

       12         the SEG?  Either the words are not clear or we

       13         want to change the words.  I think we ought to

       14         address that issue with all interested parties,

       15         you know.

       16              MR. BERSON:  Please look for that, on the

       17         website, in the next day or two.  I assume

       18         when we get down to scheduling the next

       19         meeting, we want to talk about Operating

       20         Guidelines at the next interim.

       21              That seems to work pretty well.  If it

       22         causes a problem for anyone, let me know.  We

       23         can rethink that.

       24              MR. KEEGAN:  This sounds like the

       25         discussion could take some time.  I wonder if




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        2         we should piggyback -- would it compromise an

        3         SEG meeting?

        4              MR. DYSART:  Two thoughts here, one is

        5         it seems to be a generic issue here, seems to

        6         be something that needs to be worked out, and

        7         it's appropriate that it be brought here.

        8              The second thing is, I think, it is

        9         important to recognize the importance of the

       10         committee work, that the committees have done

       11         lots of work, and there are several, one of

       12         which is Beach Erosion, one which is Economics,

       13         one which is Aquifer, so forth.

       14              I think there's something here that

       15         warrants more attention than we can afford to

       16         give it right here today.  So, we look forward

       17         to a significant, substantive discussion and

       18         recommendation next time.

       19              MR. BERSON:  One final note, if I may,

       20         based on the outcome of that discussion, you're

       21         going to have to vote whether I'm acting or

       22         the real chair of the committee --

       23              MR. FARMER:  I would move --

       24              MR. BERSON:  -- until I.

       25              MR. FARMER:  -- that needs to be




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        1     OPERATING SYSTEM GUIDELINES REPORT

        2         suggested.  I just move you become the real one

        3         rather than the acting one.

        4              MR. BERSON:  We can wait on that.

        5              MR. DYSART:  Any other active candidates,

        6         Morgan?

        7              MR. REES:  I concur in Mr. Farmer's

        8         suggestion.

        9              MR. DYSART:  The smiles of board approval

       10         around the table indicate we have reached a

       11         consensus on that.  We demote Will from being

       12         acting chair to full chair.

       13              MR. FARMER:  And his salary should be

       14         doubled.

       15              MR. DYSART:  Committee reports, Aquifer.

       16         Bob Scanlon indicates he has nothing to report

       17         today.  Bill.

       18              MR. FARMER:  The only thing I report is we

       19         have a pending motion, and recommendation, from

       20         the committee to the SEG which will be delayed

       21         until some future meeting.

       22              MR. DYSART:  Okay.  Dredging and Disposal.

       23         okay.  Judy, Economics Working Group.

       24              MS. JENNINGS:  Just waiting on the Corps

       25         to be able to share things --




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        1     OPERATING SYSTEM GUIDELINES REPORT

        2              MR. DYSART:  Okay.

        3              MS. JENNINGS:  -- with those who are

        4         interested.  I do have one little question

        5         though about -- I'm just assuming that all of

        6         the economics were -- will be finished,

        7         analyzed, and everything that goes into it

        8         before the draft.

        9              MR. BAILEY:  Yes.

       10              MS. JENNINGS:  Okay.  And that the

       11         economics is an input into the action, the

       12         alternative selection -- the selection of an

       13         alternative.

       14              MR. BAILEY:  Correct.

       15              MS. JENNINGS:  I guess I'm wondering is

       16         there anywhere in between?  I mean, you know,

       17         this is our July meeting, right -- is it August

       18         -- okay, so somewhere in the summer.

       19              Where, in there, is there an opportunity

       20         for people to have -- well, for instance, as

       21         we're just going along here talking about the

       22         beach erosion, the economics is so extremely

       23         large.

       24              I don't think there's anybody, in the

       25         Economics Working Group, that could ever do




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        1     OPERATING SYSTEM GUIDELINES REPORT

        2         anything other than say sure does look like

        3         they did all the work.  But I still think there

        4         needs to be an opportunity, because we had the

        5         Economics Working Group meetings and they were

        6         well-attended by a broad variety of people.

        7              I'm wondering, is there going to be a

        8         point, before the economics is used, to input

        9         into the decision?  Is there going to be a

       10         point at which people can give input, feedback,

       11         into the economics, before it becomes a major

       12         driver into the choice of an alternative, into

       13         the recommendation of the draft?

       14              MS. MOORER:  Judy, all I can say is I will

       15         request that time, but right now they are just

       16         in the data input collection mode, updating,

       17         and I will request that, that once they come to

       18         a resolution, on some of this data, that we get

       19         a meeting before when the planned selection may

       20         be.

       21              MS. JENNINGS:  It goes back to talking

       22         about the SEG and whether or not we ever   said

       23         gee, we approve, recommend, whatever.

       24              If we have never had a chance to look at

       25         it, ask questions, and even be sure.  I




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        2         remember a time, not too long ago, when we were

        3         assuming the Panama Canal wasn't going to

        4         change.

        5              If there is something like that, certainly

        6         people who are interested need to be able to

        7         look at it, before it becomes an ingredient in

        8         a final draft.

        9              MS. MOORER:  I will request that.

       10              MR. BERSON:  Interim Ad Hoc Committee

       11         which is me, I don't have any report, zero.

       12              MR. DYSART:  Good.  Striped Bass,

       13         Operating Guidelines Committee, we've already

       14         heard about, and Striped Bass, Will -- oh no,

       15         that's you.

       16              MR. FLEMING:  That's me for right now.  We

       17         have not met and I don't have anything to

       18         report.  I would -- I just found out we can

       19         change chair people, and it seems like right

       20         now I do need to resign from that committee, at

       21         least as committee chair.

       22              I kind of got appointed to that because

       23         the division and the management group, that I

       24         was associated with, with the WRD Fishery was

       25         responsible for striped bass.




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        1     COMMITTEE REPORTS

        2              I've since left that division and have

        3         gone to Coastal Resources.  I would like to

        4         resign from that chair at this point.

        5              MR. FARMER:  Why, just because you moved?

        6              MR. FLEMING:  I've moved divisions and my

        7         responsibilities have changed, so my function

        8         has changed, and I will not be closely

        9         associated with striped bass like I used to be.

       10              MR. BERSON:  He's bigger than them now.

       11              MR. FARMER:  Have you trained a

       12         replacement?

       13              MR. FLEMING:  I don't know how it needs to

       14         go -- sounds like we voted you in, let's vote

       15         me out.

       16              MR. DYSART:  We could do it that way or we

       17         could let the particular agency people, others

       18         particularly interested in this come up with a

       19         consensus recommendation, unless you have one.

       20              Why don't we task the people interested in

       21         that area to bring us a recommendation.  Thank

       22         you.  Congratulations moving on.  Okay.  New

       23         business, what about the utility crossing,

       24         Bill?

       25              MR. BAILEY:  I'm not sure exactly what was




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        1     COMMITTEE REPORTS

        2         being asked on this one.  I will say that the

        3         Corps has tried to get information about

        4         utility crossings, pipelines or cables, or

        5         something like that that may be under the

        6         river, just as part of our evaluation of the

        7         project.

        8              We want to make sure that we know all of

        9         the impacts of the deepening.  We have written

       10         letters to people.  We put out a -- we put out

       11         a public notice.

       12              I guess the bottom line is if you haven't

       13         contacted -- if you do own a utility, that

       14         crosses the river, and you haven't been

       15         contacted by the Corps, then please talk with

       16         us.  That's about it.

       17              MR. DYSART:  What about the IPR which

       18         could stand for just most anything you want it

       19         to today -- in-progress review?

       20              MS. MOORER:  I would suggest that we defer

       21         this discussion until the next meeting when the

       22         memorandum for record is finalized.  Hopefully,

       23         it will be better because it's impacting us.

       24              I would suggest that to the group.  Until

       25         that is finalized, we won't know exactly what




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        1     COMMITTEE REPORTS

        2         headquarters there has decided upon.

        3              MR. KEEGAN:  Once we have that final MFR

        4         we can post that.

        5              MR. BAILEY:  Yes.

        6              MR. KEEGAN:  We'll put it on the Internet

        7         so people can see it.  Maybe it will make more

        8         sense to have the discussion then.

        9              MS. MOORER:  At the IPR, it was addressed,

       10         like Jasper County was addressed, some

       11         economics, like passing lanes was addressed.

       12              When we had the alternative formation

       13         briefing, all these things were addressed in

       14         there.  There was a lot of discussions.  Until

       15         headquarters agrees on the wording of what it

       16         contains, we don't have any final answer at

       17         this point.

       18              MR. DYSART:  Okay.  Let's see, how about

       19         next meeting date?  We need to meet a month

       20         from now, two months from now; what's the flow

       21         of new information coming in?  What are the

       22         matters of your knowledge that need to come

       23         before this body?

       24              MS. MOORER:  I don't know of anything that

       25         will come available by August 7th.  I'd suggest




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        1     COMMITTEE REPORTS

        2         that we have the Operating Guidelines

        3         Committee, and the Interim Committee meeting on

        4         that day.  And if -- if, for some reason, the

        5         Operating Guidelines Committee discussion runs

        6         long, we can send back out a notice saying that

        7         the Interim is going to be another day.

        8              I think the discussion could be held on

        9         the 7th, and maybe the following month an SEG

       10         meeting.

       11              MR. DYSART:  Let's say tentatively

       12         September 11th, and we'll await guidance from

       13         Operating Guidelines or the Interim Committee.

       14              Before everybody runs out, I wanted to

       15         make one very brief comment.  My comment

       16         earlier about Will's question that it was --

       17         seemed to be a fairly straightforward question,

       18         as you know, many of you know, I have a very

       19         dry sense of humor.  I hope that came through.

       20              The important point I was making was that

       21         this body has a history, in recent years, of

       22         being able to discuss things very candidly.

       23         And there is enough mutual trust and respect

       24         and openness, so forth, within the body that

       25         somebody can ask a very straightforward




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        1     COMMITTEE REPORTS

        2         question, with little corners on it, as opposed

        3         to dancing around on the heads of pins.

        4              As I sometimes do, I was using Will's

        5         participation as commending it, as typifying if

        6         you have a question, ask it.  Make it nice and

        7         clear so somebody can give a clear response.

        8              So there was not any kind of other

        9         nuances.  Nobody is talking about this in the

       10         interim, but I wanted to make that very clear.

       11              I think some of you, who have been coming

       12         around a long time, know there was a time when

       13         we couldn't have a broad discussion based on

       14         trust, mutual respect, and so forth.

       15              That is, to me, a positive comment

       16         concerning how this body deliberates, and

       17         people who are answering questions will give

       18         straight answers to their best ability, based

       19         on the facts that you know, and we can keep on

       20         having good, meaningful discussions.  Bill

       21         Farmer, you've got a tent up there.

       22              MR. FARMER:  Right.  There's another

       23         suggestion that we all go to the website and

       24         look at the draft of the final report of the

       25         SEG.




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        2              At present, the final report draft is

        3         three pages long with several appendices.  I

        4         finally got around to looking at that a couple

        5         of weeks ago.

        6              I talked to Larry at the break.  He said

        7         my comments may be the only comments that are

        8         received back on the initial draft, which I

        9         believe was posted a half a year ago, which

       10         means basically, maybe, no one else has noticed

       11         it there.

       12              It comes down to again what's the basic

       13         function of the SEG; what is our final report

       14         going to look like; what should be in there;

       15         what shouldn't be.

       16              I wanted to mention -- suggest everyone

       17         look at that.  Come up with input.  That goes

       18         back to Will, because he's editor and chief of

       19         the final report.

       20              MR. DYSART:  That's why he gets paid twice

       21         as much as you do.

       22              MR. FARMER:  Right.

       23              MS. MOORER:  One question, the September

       24         meeting dates are tentatively the 11th, 4th or

       25         -- the 11th -- the 11th?  I wanted to make sure




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        1     COMMITTEE REPORTS

        2         for the announcement we send out.  Thank you.

        3              MR. DYSART:  Any other questions?  Seeing

        4         no hands up, what not, I declare the meeting

        5         adjourned.  Thank you for all your

        6         participation.

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        3                    C E R T I F I C A T E

        4     G E O R G I A  :

        5     CHATHAM COUNTY :

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        7              I hereby certify that the foregoing

        8     transcript was taken down, as stated in the

        9     caption, and the questions and answers thereto were

       10     reduced to typewriting under my direction; that the

       11     foregoing pages 1 through 144 represent a true and

       12     correct transcript of the evidence given upon said

       13     hearing, and I further certify that I am not of kin

       14     or counsel to the parties in the case; am not in

       15     the regular employ of counsel for any of said

       16     parties; nor am I in anywise interested in the

       17     result of said case.

       18              This the 6th day July, 2007.

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       20                        _______________________________

       21                        Kathleen Dore, Certified Court

       22                        Reporter, B-2041

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