[HollyMutual-Announce] System repair update

[Mark Derbyshire]

All:

Since I last wrote, we have been stuck waiting for a repair estimate
from our excavator. That appeared yesterday afternoon and the board has
approved it. The excavator will need to obtain the necessary permits and
schedule the work, but we are back to making progress on the major leak
that prevents us from using the Whitehall Well and prevents 20% of our
shareholders from getting water from Holly Mutual.

The board has elected to make a surgical repair to reconnect the
Whitehall Well to the main pipeline loop without having to tear up
Whitehall Dr, under which the leak is located. We do not anticipate any
disruption to our existing partial service during the repair. This
approach has the disadvantage of at least temporarily breaking the full
pipeline loop across Whitehall Dr, but is less than half the cost of the
only other viable option. At some future time we can still choose to
reconnect the full loop, which would require cutting across Whitehall
Dr. However we can do that in the off-season, when excavating is less
costly and our operations won't be affected.

We have very high confidence this will restore the Whitehall Well to
operation, allowing us to double our capacity, and at the minimum
restoring service to the properties north of Whitehall Dr. We're also
hoping this will restore service to the remaining four properties on the
west side of the Holly Mutual pipeline, between Plateau and Whitehall
Dr. We have found indirect evidence of a second leak in our testing, and
the repair is designed to consider that possibility. Unfortunately we
won't know until the pipeline is exposed.

I will keep everyone posted as we make progress.

Cheers,
Mark