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<br /> interlocal cooperation to get that lake to become a reality. As part of our Upper Neuse Basin Study recently,
<br /> we did realize that that upper flat lake could provide some water quality benefits for Lake Mickey, so there
<br /> might be some reasons for doing a lake above Lake Mickey just to provide water supply and water quality
<br /> benefits. And then we have a very, very long-range study we are doing with Raleigh, Cary and Granville
<br /> County, looking at Kerr Lake as a possible future water supply. If you can imagine what the inter-basin
<br /> transfer issues were with Jordan Lake and multiply that by a factor of about 10 or 100, I'm not sure which it
<br /> would be, that's not going to be a simple task to accomplish. Virginia Beach worked on it for about 20 years,
<br /> I think, before they finally accomplished theirs. It won't come without a lot of work.
<br /> One of our most pressing concerns is that I don't want to repeat last year. I hope we're not going
<br /> to repeat last year, but we're certainly not planning any more work on Little River Lake, so we're not going to
<br /> be pulling the lake down for anymore maintenance. Because they are not full yet, we are concerned about
<br /> the coming year. This is a shot I threw in for your benefit of what Little River looked like on January 9, 2002.
<br /> This is the very upper end of it near 501 bridge. It looks pretty bad at that point.
<br /> Our most pressing concerns really deal with the feasibility of the Teer Quarry and the permitting
<br /> and construction of that. We included that in our Jordan Lake allocation request, and that was considered by
<br /> the State. And I think they assumed we would be able to accomplish that. So that's part of the reason why
<br /> we didn't get but 10 million gallons when we requested 20. So it's pretty important to us to have the
<br /> combination of Teer Quarry and Jordan Lake. So we have a feasibility study underway on that, and we just
<br /> don't have any permits yet. So we still have to work on that part. Assuming we can get all the necessary
<br /> permits, we could develop that as a water supply. And then Jordan Lake allocation and how best to
<br /> accomplish that, we've had some discussions with Chatham County as a possible partner in developing
<br /> Jordan Lake. And we've had some discussions about partnering with OWASA and Chatham County on the
<br /> development of Jordan Lake. We could do some interim things, possibly, with Chatham and with Cary to
<br /> initially get some of the water from Jordan Lake through a pass through their system. So there are some
<br /> short-term things that we could do. Long term, we're probably talking about another water supply intake and
<br /> water treatment facility on Jordan Lake to meet our long-term needs there. And then, of course, the feasibility
<br /> of upper flat and Kerr Lake alternatives. Whether those are possible or not, we don't know.
<br /> So that's basically the water supply situation in Durham. I'd be glad to answer any questions that
<br /> anybody might have at this point. I forgot to mention we are interconnected with Hillsborough, OWASA,
<br /> Cary, and Orange Alamance through Hillsborough. And we have contracts with Orange Alamance,
<br /> Hillsborough, Cary, Morrisville, and Chatham County. We also have a direct connect with Chatham County.
<br /> We are working on a contract and interconnection with Raleigh. We don't have that yet, but we're talking
<br /> about it. We also have discussions underway with-Granville County on a possible interconnect with them.
<br /> So pretty soon we'll be interconnected with everybody on all sides.
<br /> Ed Harrison: He.asked about the slide before the lake level graphs. Is there a relationship in
<br /> terms of sums between the reuse column and the projected demands of conservation, and can you talk about
<br /> each of those, why the amounts are about where you think they are?
<br /> Terry Roland: Well, I can't vouch for the math. That's right out of our Jordan application. Well,
<br /> it's pretty obvious they don't add up, but I can't explain why they don't except for rounding possibly. That's
<br /> the only explanation I have there. That was one of the requirements that as we looked at our projected
<br /> needs, we did have to look at the potential for conservation and reuse, and we're assuming a six percent
<br /> reduction in the total demand due to conservation. You have to keep in mind, we've had a pretty strong
<br /> conservation program underway in Durham for quite a long time now, and so given the magnitude of these
<br /> numbers and the fact that the State has enacted low-flow toilets and shower heads and a lot of the other
<br /> things that were sort of the low hanging fruit in the past for conservation, we think that even six percent is
<br /> pretty optimistic in terms of what we might be able to achieve. But we hope to be able to achieve those
<br /> levels. The reuse is really a function of our ability to capitalize and build that system. The biggest problem
<br /> with the reuse system is building the distribution system that it takes to get that water to the customers.
<br /> Ed Harrison: Is it programmed yet?
<br /> Terry Roland: It is not programmed in our CIP right now. We've sort of been waiting on some
<br /> big industry to come along that needed the water and they would help us with the capital side of that. So we
<br /> haven't programmed that. Given the current budget situation, we are not likely to program it until things get
<br /> better.
<br /> Don Cox: Terry, your scenario of activating the Teer Quarry—what are your plans for filling that?
<br /> Terry Roland: Well, we have three potentials there. Because of its location, Teer Quarry is,
<br /> adjacent to our raw water line that comes from Lake Mickey and Little River. It's interconnected to both. So,
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