EXHIBIT 1-D

Notice of Preparation of Environmental Impact Report

MPWMD Aquifer Storage and Recovery Project

December 13, 2004

TO RESPONSIBLE AGENCIES AND INTERESTED PARTIES:

The Monterey Peninsula Water Management District (MPWMD) is proposing an aquifer storage and recovery (ASR) project that will allow for changes in water supply operations in the Carmel River and Seaside Groundwater Basins that will benefit the natural resources of the Carmel River and the groundwater resources of the Seaside Groundwater Basin. The project includes both near-term and long-term modifications to MPWMD’s existing test-scale ASR project located on former Fort Ord lands overlying the coastal subunits of the Seaside Groundwater Basin. The ASR project would continue and expand diversions of excess winter flows from the Carmel River under specified conditions and store this water in the Seaside Groundwater Basin coastal subareas. A portion of this stored water would be available for extraction and use through the California American Water (Cal-Am) existing distribution system during dry periods in lieu of pumping water from the Carmel River Basin. A smaller portion of the injected water would remain in the Seaside Groundwater Basin to facilitate recovery of water levels from over-pumping in the Basin.

The MPWMD is the lead agency for this project under the California Environmental Quality Act (CEQA), and has determined that an Environmental Impact Report (EIR) will be prepared to evaluate the environmental effects of the ASR project and its alternatives (See attached Notice of Preparation). The MPWMD needs to know your views regarding the scope and issues that should be evaluated in the EIR. The MPWMD requests that written comments be submitted as early as possible but no later than Monday, January 17, 2005. Written comments and questions should be sent to:

Henrietta Stern, Project Manager e-mail: henri@mpwmd.dst.ca.us

MPWMD

PO Box 85 phone: 831/658-5621

Monterey, Ca 93942-00085 fax: 831/644-9560

Two scoping meetings will be held to solicit public and agency input to the planning process and impact assessment for the ASR project. Two meetings will be held at the MPWMD office as follows:

Wednesday, January 12, 2005 MPWMD Conference Room

3:00 pm - 4:30 pm (first session) 5 Harris Court, Building G (Ryan Ranch)

6:30 pm - 8:00 pm (second session) Monterey, CA 93940

Documents and files related to the proposed project can be reviewed at the above address. Thank you in advance for your interest in the ASR project and timely response to this Notice.

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