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Gold/Mining/Energy : Arcon Energy (MIDL Presently) The Ultimate Sleeper

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To: jeffrey rainey who wrote (1575)5/29/1998 11:02:00 PM
From: Sheri  Read Replies (1) of 4142
 
Friday May 29, 8:24 pm Eastern Time

Company Press Release

Water Agencies Call for Action to Protect California's Drinking
Water from Gasoline Additive MTBE

SACRAMENTO, Calif.--(BUSINESS WIRE)--May 29, 1998--California water leaders today agreed to
comprehensive efforts to protect the state's drinking water from contamination by a component of gasoline
added to reduce air pollution known as MTBE (methyl tertiary butyl ether).

In a policy adopted today, the Association of California Water Agencies (ACWA) Board of Directors said
there's an urgent need for research on the health effects of MTBE and how to remove it from contaminated
water sources. ACWA members agreed that water agencies and their customers should not be forced to pay
the costs associated with MTBE contamination, including the cost of replacement water. In addition, they
called for legislation requiring regulatory agencies to evaluate the environmental impacts of any fuel additives
before they are approved for use.

The action comes in response to the growing instances of contamination by MTBE in the state's drinking
water. MTBE was added to California gasoline beginning in 1992 to help the state reduce pollution and meet
federal Clean Air Act standards, but has contaminated groundwater and surface water in California, primarily
as a result of leaking underground storage tanks and pipelines and the use of motorized watercraft on lakes
and reservoirs.

The additive is a possible carcinogen and gives water a bad taste and odor even at low levels. Water agencies
are pursuing ways to recoup the cost of cleaning up already-contaminated sites and protect water sources that
have not yet been polluted.

''ACWA members are concerned about the potential for widespread contamination of California's water
sources by MTBE,'' said ACWA Executive Director Stephen K. Hall. ''This policy will help water agencies
respond to MTBE contamination issues and help us find solutions that protect water sources and drinking
water consumers from the impacts of MTBE use.''

''We cannot afford any erosion in the public's confidence,'' Hall said. ''California's water agencies have spent
billions of dollars to provide the safest, most healthful water in the world and MTBE threatens to undermine
that investment.''

In the policy adopted today, water utilities agreed to:

-- Support legislation providing funding for research into

MTBE treatment, occurrence, health effects and source

protection strategies

-- Support efforts to ensure that the costs associated

with MTBE contamination are paid by those responsible

-- Support efforts to improve monitoring of underground

storage tanks, prevent leaks and accelerate cleanup

-- Support legislation providing flexibility to California

to meet air quality goals without the use of oxygenates

such as MTBE which pose a threat to drinking water sources

-- Support federal legislation for better regulation of

interstate pipelines to prevent contamination by MTBE

and other gasoline additives

-- Support efforts to examine recreational practices

on reservoirs and ensure that there are adequate controls

on motorized watercraft and fueling operations that may

contribute to surface water contamination

-- Engage in efforts to use funding under the 1996 Safe

Drinking Water Act amendments to help protect water

sources

-- Support efforts by industry and regulatory agencies

to ensure proper handling, transport and storage

of gasoline

-- Support legislation requiring state regulatory agencies

to identify and evaluate all impacts on the environment,

including water resources, that could result from any

fuel specification proposed or established by the State Air

Resources Board, and disapprove their use if adverse

impacts are likely.

ACWA is a statewide, nonprofit association representing more than 440 public water agencies who
collectively manage and deliver 90 percent of the state's urban and agricultural water. Over 30 million
Californians rely on ACWA members to provide a safe and reliable supply of drinking water to their homes,
schools, businesses and farms.

Contact:

ACWA
Jennifer Persike-Becker/Erin Curtis, 916/441-4545
After hours: 916/441-4509 ext. 114
www.acwanet.com
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