[HollyMutual-Announce] Another update

[Mark Derbyshire]

All,

Yesterday we worked with Colorado Water Well on further tests to isolate
the source of our leak. We didn't expect this would lead to an immediate
return to service, and that turned out to be the case. However we now
know more:

1. We now have a much better understanding of the isolation valves on
the east side of our main pipeline. Previously when we tried isolating
the leak, we unexpectedly also isolated out everyone on the east south
to Charrington Dr. Yesterday we worked our way north and successfully
flowed water out of our old fire hydrant at the corner of Whitehall and
Greenbriar Dr. We now have a much higher confidence that properties on
the east will be able to get water if and when we partially restore service.

2. We are one step closer to isolating the leak, partly thanks to a
number of documents and maps uncovered by several shareholders.
Previously we assumed the leak was under Whitehall Dr near the well, but
both the test yesterday and a week ago both suggest the leak may
actually be south of Whitehall Dr. Unfortunately when water starts
appearing in such tests, it takes hours to clear, effectively halting
any further testing on that day.

3. The board is now considering our next steps. Our original plan to dig
into Whitehall Dr has been suspended because of contrary evidence. There
are two options on the table (1) run another test and (2) install a new
isolation valve. We may choose to do both in parallel, as the objectives
of each are somewhat complementary. The latter option gives us the
highest probability of restoring service to most, if not all, active
users of Holly Mutual while we hunt down and repair the leak. The
results of the next test would advise us which isolation valves would
need to be actuated.

4. We have heard back support from a number of shareholders to schedule
a shareholders' meeting in the near future, as was previously mentioned
to this mailing list. The board expects this will be a virtual meeting
and we need time to figure out the best way to accomplish this. Per our
corporate policies/by-laws, we need to mail the announcement of any such
meeting 30 days in advance. The board has not yet scheduled a meeting
because we are overwhelmed with the leak, but it is high on our next agenda.

Cheers,

Mark Derbyshire