1. June 13, 2003 Status Report

2. Project Summary n Project to provide new 27.5 MGD blended supply to El Paso n Cooperative effort between Fort Bliss and EPWU n Presentation today is an update on project progress

3. Facilities included in Project n 12-15 MGD Desalination Plant n Rehabilitate 15 Existing Wells – 18 MGD n 12 MGD of new well supply (est. 16 Wells) n Brine Disposal Facilities n Pipelines n Water resources Learning Center

4. Facilities included in Project

5. Work Accomplished n Brine Disposal Study n Evaluation of existing well facilities n Test and Monitoring Well program n Deepwell Disposal site investigations n Pilot Studies n Preliminary Design of Desalination Facilities

6. Natural Evaporation Enhanced Evaporation Brine Disposal Option Study Brackish Water Supply From Existing EPWU Wells And Proposed Ft Bliss Wells Permeate to Transmission / distribution Brine Reject ROplant Deep Well Injection Solar Gradient Ponds Brine Concentr ator

7. Natural Evaporation Brine Disposal Option Study Brackish Water Supply From Existing EPWU Wells And Proposed Ft Bliss Wells Permeate to Transmission / distribution Brine Reject ROplant Deep Well Injection Brine Concentr ator

8. Existing EPWU Wells - Assessment and Needs Analysis

9. Test and Monitoring Well Program

11. Deep Well Injection Report

14. RO Pilot Plant Operations

15. Brine Concentrator Pilot Plant Operations

16. RO Plant Report

18. Value Engineering Session n Conducted December, 2002 n Outside Technical Review

19. Milestones n Commenced Design of Well Improvements –May, 2003 n Commence Design of Desalination Plant – July, 2003 n Ongoing Deepwell Testwell Program n NEPA Studies

20. Total Capital Cost, $x1000 Ammortized Capital Cost, $x1000 1 Ammortized Capital Cost, $/kgal blended total Annual O&M Costs, $x1000 Total Ammortized Capital and O&M Cost, $/kgal blended total Total Cost - 27.5 MGD RO $ 67,059 $ 67,059 $ 5,381 $ 5,381 $ 0.55 $ 10,183 $ 10,183 $ 1.58 $ 1.58 16 New Brackish Wells, Inc. Collector Lines $ 25,920 $ 25,920 $ 2,080 $ 2,080 $ 0.21 $ 0.21 $ 2,101 $ 2,101 $ 0.42 $ 0.42 Existing Well Facilities (Rehab) 3 $ 5,767 $ 5,767 $ 463 $ 463 $ 0.05 $ 0.05 $ 3,239 $ 3,239 $ 0.38 $ 0.38 27.5 MGD RO Facitlity $ 23,468 $ 23,468 $ 1,883 $ 1,883 $ 0.19 $ 0.19 $ 2,804 $ 2,804 $ 0.48 $ 0.48 7.5 MGD Pump Station $ 1,380 $ 1,380 $ 111 $ 111 $ 0.01 $ 0.01 $ 1,284 $ 1,284 $ 0.14 $ 0.14 Finished Water Transmission Line $ 828 $ 828 $ 66 $ 66 $ 0.01 $ 0.01 $ 5 $ 5 $ 0.01 $ 0.01 Brine Disposal by Deep Well Inj., Includiing Pipeline $ 9,696 $ 9,696 $ 778 $ 778 $ 0.08 $ 0.08 $ 750 $ 750 $ 0.16 $ 0.16 1 Based on 20 year life, 5.0% interest, A/P Factor = 0.08024 Cost Estimates