Metropolitan Water Company, L.P.

The first well (PW-1) drilled in the Project is capable of producing 3,600 gallons per minute (gpm) of very high quality water. PW-1 was tested at rates between 1,200 gpm and 3,600 gpm, the maximum production capability of the test pumping equipment. PW-1 was drilled and completed by Layne Texas in October 2003 and is operated by Cross County Water Supply Corporation for Blue Water. The well construction and development criteria used resulted in excellent production characteristics of the well and essentially no sand present in the water produced from PW-1. The formation around the well is exceptionally productive with a transmissivity of 105,000 gallons per day per foot (gpd/ft) and a hydraulic conductivity of 378 gpd/ft². This is one of the highest hydraulic conductivities measured in the Simsboro aquifer in Texas to date. The tests conducted indicate prolific conditions capable of supporting large well yields and the ability to construct large capacity wells with excellent sanding characteristics.

Production Characteristics of PW-1
Description	Results
1-Hour Drawdown @ 3,000 gpm (ft)	91
1-Hour Specific Capacity @ 3,000 gpm (gpm/ft of DD)	33
15 minute settleable solids @ 3,000 gpm (ml/4l)	Trace
Approximate Transmissivity (gpd/ft)	105,000
Approximate Hydraulic Conductivity (gpd/ft²)	378
(Note: DD indicates drawdown)

Water Quality Characteristics of PW-1

Water quality from the Simsboro at the site was obtained from PW-1 near the conclusion of the 72-hour pump test conducted at approximately 3,000 gpm. Specific conductance, temperature and ph were monitored throughout well development, step testing and constant rate testing of the well. The temperature, specific conductance and ph were generally consistent through the step test and constant testing of the well. Temperature varied based on length of time pumped and pumping rate but generally stabilized at approximately 101 degrees Fahrenheit after sufficient pumping to generally stabilize the heat flux from the water to the casing, cement and formation around the well. The following is a brief summary of the analytical results of the water from PW-1:

Constituent	Concentration	Drinking Water Standard (mg/l)
Total Dissolved Solids (mg/l)	247	1000
Sulfate (mg/l)	<3.00	300
Chloride (mg/l)	17.7	300
Sodium (mg/l)	78.6	None
Alkalinity (CaCO3) (mg/l)	189	None
Iron (mg/l)	0.19	0.3
Manganese (mg/l)	0.0203	0.05
Hardness (CaC03) (mg/l)	37	None
Hydrogen Sulfide (mg/l)	0.0125	0.05
Field pH (units)	7.58	>7.0
Field Temperature (F)	101	None

This water is well within the State and Federal drinking water standards with no treatment required. As with any municipal water supply, this water will contain the required disinfection.

Click here for a complete and detailed listing of the analytical results for PW-1