hawaii - commission on water resource managment - keepers of the public trust

18
STATE COMMISSION ON WATER RESOURCE MANAGEMENT (CWRM) The Honorable Suzanne D. Case, Chairperson Commissioner William D. Balfour, Jr. Commissioner Kamana Beamer Commissioner Michael G. Buck Commissioner Neil Hannahs Commissioner Milton D. Pavao Commissioner Virginia Pressler Re: Alexander & Baldwin – Hawaiian Commercial & Sugar Company – East Maui Irrigation Dear Chairwoman Case, Commissioner Balfour, Commissioner Beamer, Commissioner Buck, Commissioner Hannahs, Commissioner Pavao and Commissioner Pressler, The following research and analysis is provided to the Commission for its deliberations on the application filed by A&B/HC&S/EMI for water allocation for diversified agriculture. “Never, ever, have HC&S, A&B, EMI had to establish how much water they need. There’s a difference between need and use.” - Moses Haia “[I]f the Commission proceeds, with this knowledge, that they are knowingly not acting and therefore, violating the law with knowledge of the law that they have and that subjects them to personal liability, in other words they can be personally sued and, and damages collected against them for any actual harm that occurs to Hawaiians.” - Alan Murakami Thank you very much Aloha Respectfully, Clifton M. Hasegawa President and CEO Clifton M. Hasegawa & Associates, LLC 1322 Lower Main Street A5 Wailuku, Hawaii 96793 Telephone: (808) 244-5425 Email: [email protected] LinkedIn: https://www.linkedin.com/in/cliftonhasegawa - January 19, 2017 -

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Page 1: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

STATE COMMISSION ON WATER RESOURCE MANAGEMENT (CWRM)

The Honorable Suzanne D. Case, Chairperson

Commissioner William D. Balfour, Jr.

Commissioner Kamana Beamer

Commissioner Michael G. Buck

Commissioner Neil Hannahs

Commissioner Milton D. Pavao

Commissioner Virginia Pressler

Re: Alexander & Baldwin – Hawaiian Commercial & Sugar Company – East Maui Irrigation

Dear Chairwoman Case, Commissioner Balfour, Commissioner Beamer, Commissioner Buck, Commissioner

Hannahs, Commissioner Pavao and Commissioner Pressler,

The following research and analysis is provided to the Commission for its deliberations on the application

filed by A&B/HC&S/EMI for water allocation for diversified agriculture.

“Never, ever, have HC&S, A&B, EMI had to establish how much water they need.

There’s a difference between need and use.” - Moses Haia

“[I]f the Commission proceeds, with this knowledge, that they are knowingly

not acting and therefore, violating the law with knowledge of the law that they

have and that subjects them to personal liability, in other words they can be

personally sued and, and damages collected against them for any actual harm

that occurs to Hawaiians.” - Alan Murakami

Thank you very much

Aloha

Respectfully,

Clifton M. Hasegawa

President and CEO

Clifton M. Hasegawa & Associates, LLC

1322 Lower Main Street A5

Wailuku, Hawaii 96793

Telephone: (808) 244-5425

Email: [email protected]

LinkedIn: https://www.linkedin.com/in/cliftonhasegawa

- January 19, 2017 -

Page 2: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

ALEXANDER & BALDWIN (A&B) HAWAIIAN COMMERCIAL & SUGAR

COMPANY (HC&S) SUGAR PRODUCTION FROM 1996 TO 2015

YEAR ACRES HARVESTED RAW SUGAR MOLASSES NOTES

(TONS) (TONS)

1993 16,726 224,128 61,954 1

1994 16,457 204,067 58,997 1

1995 17,661 197,803 63,339 1

1996 17,183 201,041 65,525 2

1997 17,005 198,037 77,960 3

1998 17,210 216,188 80,915 4

1999 17,278 227,832 92,246 5

2000 17,266 210,269 70,551 6

JULY 22, 2001 - PETITION TO AMEND INSTREAM FLOW STANDARD - EAST

MAUI FILED

YEAR ACRES HARVESTED RAW SUGAR MOLASSES NOTES

(TONS) (TONS) 2001 15,101 191,500 71,200 7

2002 16,557 215,900 74,300 8

2003 15,660 205,700 72,500 9

2004 16,890 198,800 65,100 10

2005 16,639 192,700 57,100 11

2006 16,950 173,600 55,900 12

2007 16,895 164,500 51,700 13

2008 16,961 145,200 52,800 14

2008 - 2009 CWRM FACT FINDING, SITE VISITS, PUBLIC HEARINGS, USGS, DNLR

YEAR ACRES HARVESTED RAW SUGAR MOLASSES NOTES

(TONS) (TONS)

2009 15,028 126,800 41,700 15

OCTOBER 18, 2010 - CWRM DENYS NA MOKU `AUPUNI o KO`OLAU HUI (NA

MOKU) PETITION FOR CONTESTED CASE HEARING

YEAR ACRES HARVESTED RAW SUGAR MOLASSES NOTES

(TONS) (TONS)

2010 15,488 171,800 52,800 16

2011 15,063 182,800 53,100 17

Page 3: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

NOVEMBER 30, 2012 - HAWAII INTERMEDIATE COURT OF APPEALS VACATES

CWRM ORDER DENYING NA MOKU `AUPUNI o KO`OLAU HUI (NA MOKU)

PETITION FOR CONTESTED CASE HEARING

YEAR ACRES HARVESTED RAW SUGAR MOLASSES NOTES

(TONS) (TONS)

2012 15,900 178,300 50,500 18

2013 15,400 191,500 54,800 19

2014 14,200 162,100 53,200 20

2015 21, 22

Source: Alexander & Baldwin Annual Reports and SEC Form 10K

NOTES

1. Reduction in yield due "most significantly the unusual lack of rainfall in 1995."

2. Improvement in yield over 1995 "improvements in cultivation practices."

3. Decreased Production to offset increased cost to produce - personnel reductions

4. Yield increase over 1997 "due to changes in farm and factory practices."

5. Decrease in cost to produce and improved farm practices resulted 5% increase in production

6. Decrease in molasses production due to "improved sugar recovery."

7. Higher operating costs, unexpected factory problems. weather delays, later-than-expected

factory start up in 2001 resulted decrease in acres harvested.

8. Increase in production "was due primarily to an extended harvestin season, combined with

improved factory efficiency."

9. "The decrease in production was due primarily to an extended drought on Maui. The rainy

weather late in the year, and the arson of 900 acres of cane. The decrease in areas harvested was

due primarily to weather related slowdowns. The increase in cost per ton was attributable to

lower sugar production and higher operating costs."

10. "The decrease in production was due primarily to rainy weather early in the year that

affected planting, harvesting and milling operations; and to yield losses attributable to significant

drought during the first year of crop growth and the reappearance of leaf scald disease, which

had been dormant for years. The increase in cost per ton was attributable to lower sugar

production."

Page 4: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

11. "The decrease in production was due primarily to rainy weather early affecting planting,

harvesting and milling operations; and to yield losses attributable to significant drought during

the first year of crop growth and the reappearance of leaf scald disease, which had been dormant

for years. The increases in cost per ton was attributable to lower sugar production."

12. "The decrease in production was primarily due to yield losses from a drought during

growing months, a lower crop age, and fertilizing and other farming issues."

13. "The decrease in production was due to a number of reasons, including adverse weather

conditions, the age of the crop, and various farming practices."

14. "The primary reason for the decline in sugar production has been the unprecedented drought

conditions affecting the island of Maui. In 2008 HC&S had the lowest East Maui water

deliveries on record since the Company first began recording deliveries in 1925. Moreover, the

two-year period beginning in 2007, and extending through 2008 marked two consecutive years

of the lowest rainfall recorded. A chronic lack of water that has extended throughout the crop's

lifecycle has had serious adverse impacts on crop yields. HC&S harvested 16,961 acres in 2008

(compared with 16,895 in2007). Yields averaged 8.6 tons of sugar in 2008 (compared with 9.7

in 2007)."

15. "The primary reason for the decline in sugar production has been the conditions affecting the

island of Maui in 2007 and 2008. In 2008 HC&S had the lowest East Maui water deliveries on

record since A&B first began recording deliveries in 1925, and 2007-2008 marked two

consecutive years of the lowest rainfall recorded. The two-year crop harvested in 2009 suffered

from lack of water throughout its lifecycle, which significantly reduced crop yields. HC&S

harvested 15,028 acres of sugar cane in 2009 (compared with 16,961 in 2008). This reduction in

harvest acres was designed to improve future-year yields by increasing the average age of the

crop. Yields averaged 8.4 tons of sugar per acre in 2009 (compared with 8.6 in 2008)."

16. "The primary reasons for the increase in production were improved yields on the plantation

due to better agronomic practices, a higher average age of the crop at harvest, and increased

delivery of irrigation water. HC&S harvested 15,488 acres of sugar cane in 2010 (compared with

15,028 in 2009, Yields averaged 11.1 tons of sugar per acre in 2010 (compared to 8.4 in 2009)."

17. "The primary reasons for the increase in production were improved yields on the plantation

due to better agronomic practices, a higher average age of the crop at harvest, and increased

delivery of irrigation water. HC&S harvested 15,0623 acres of sugar cane in 2011 (compared

with 15,488 in 2010, Yields averaged 12.1 tons of sugar per acre in 2011 (compared to 11.1 in

2010."

18. "The primary reasons for the decrease in production were lower yields on the plantation due

to increase in fields harvested as green cane, which suppresses yields, and drier conditions

resulting in water deliveries to the crop. HC&S harvested 15,900 acres of sugar in 2012

(compared with 15,063 in 2011). Yields averaged 11.3 tons of sugar per acre in 2012 (compared

to 12.1 in 2011)."

Page 5: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

19. "The primary reasons for increase in production were on the plantation due to improved

farming practices and water deliveries. HC&S harvested 15,400 acres of sugar in 2013

(compared to 15,900 acres in 2012). Yields averaged 12.4 tons of sugar per acre in 2013

(compared to 11.3 tons of sugar per acre in 2012)."

20. "The primary reason for the decrease in production was wet weather during the harvesting

season, which limited HC&S’s ability to harvest the planned acreage and efficiently process the

harvested cane. HC&S harvested 14,200 acres of sugar cane in 2014 (compared with 15,400

acres in 2013). Yields averaged 11.4 tons of sugar per acre in 2014 (compared to 12.4 tons of

sugar per acre in 2013). As a by-product of sugar production, HC&S also produced

approximately 53,200 tons of molasses in 2014 (compared to 54,800 tons in 2013)."

21. DESCRIPTION OF BUSINESS AND PROPERTIES. Business Segments. D. Agribusiness

(1) Agribusiness Operations

"A&B’s current Agribusiness and related operations consist of: (1) a sugar plantation on the

island of Maui, operated by its Hawaiian Commercial & Sugar Company (“HC&S”) division,

(2) renewable energy operations on the island of Kauai, operated by McBryde Resources, Inc.

(“McBryde”), (3) Kahului Trucking & Storage, Inc. (“KT&S”), which provides several types of

trucking services, including sugar and molasses hauling on Maui, mobile equipment maintenance

and repair services on Maui, Kauai, and the Big Island, and self-service storage facilities on

Maui and Kauai, and (4) Hawaiian Sugar & Transportation Cooperative (“HS&TC”), an

agricultural cooperative that provides raw sugar marketing and transportation services solely to

HC&S. HS&TC owns the MV Moku Pahu, a Jones Act-qualified integrated tug barge bulk dry

carrier, which is used to transport raw sugar and molasses from Hawaii to the U.S. West Coast

and coal from the U.S. West Coast to Hawaii.

"On December 31, 2015, the Company determined that it would cease its sugar operations at

HC&S (the "Cessation"), which will result in the eventual layoff of over 650 employees. The

sugar operation is expected to be phased out by the end of 2016, and the transition to a new

diversified agriculture model will occur over a multi-year period.

"The Company currently projects recording total pre-tax book charges related to the Cessation in

the range of $112 million to $133 million ($68 million to $81 million, net of taxes), which

consists of $23 million to $28 million of employee severance and related benefit charges, $69

million to $76 million of accelerated depreciation and asset write-offs, and $20 million to $29

million of property removal, restoration and other exit-related costs. Of the $112 million to $133

million of total pre-tax book charges mentioned above, approximately $69 million to $76 million

will be non-cash charges and approximately $43 million to $57 million will be cash outlays,

primarily related to employee severance and compensation benefits and property removal,

restoration and other exit-related costs. Net of tax benefits, the cash outlays related to the

Cessation will range from approximately $11 million to $21 million. However, the total net cash

outlays related to the Cessation are projected to be offset by cash proceeds generated from the

final harvest, based on current production estimates and sugar prices.

Page 6: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

"(2) Marketing of Sugar

Approximately 92 percent of the sugar produced by HC&S in 2015 was bulk raw sugar

purchased by C&H Sugar Company, Inc. (“C&H”), based in Crockett, California.

C&H processes the raw cane sugar at its refinery at Crockett, California and markets the refined

products primarily in the western and central United States. Pursuant to a supply contract with

HS&TC, the raw sugar is sold to C&H at forward price contracts equal to the New York No. 16

Contract settlement price at the time of executed market trades, or mutually agreed upon pricing

also based on current New York No. 16 Contract prices.

"The remaining sugar produced by HC&S was specialty food-grade sugars, which are sold by

HC&S to food and beverage producers and to retail stores under its Maui Brand® label, and to

distributors that license our trademarks or repackage the sugars under their own labels. HC&S’s

largest food-grade sugar customers are Cumberland Packing Corp., which repackages HC&S’s

turbinado sugar for its “Sugar in the Raw” product line, and Sugar Foods Corporation, which

licenses HC&S’s Maui Brand® label for exclusive use outside of Hawaii.

"(3) Land Designations and Water

"The HC&S sugar plantation consists of 43,300 acres, with approximately 36,000 acres

under active sugar cane cultivation." [Emphasis Supplied]

Compare: Acres Harvested, above, vs. “acres under active sugar cane cultivation”. See

also Note 22.

"On Kauai, approximately 3,000 acres are cultivated in coffee by Massimo Zanetti Beverage

USA, Inc., which leases the land from A&B. Additional acreage is cultivated in seed corn and

used for pasture purposes.

"The Hawaii Legislature, in 2005, passed Important Agricultural Lands (“IAL”) legislation to

fulfill the state constitutional mandate to protect agricultural lands, promote diversified

agriculture, increase the state’s agricultural self-sufficiency, and assure the long-term availability

of agriculturally suitable lands. In 2008, the Legislature passed a package of incentives, which is

necessary to trigger the IAL system of land designation. In 2009, A&B received approval from

the State Land Use Commission for the designation of over 27,000 acres on Maui and over 3,700

acres on Kauai as IAL. These designations were the result of voluntary petitions filed by A&B.

A&B holds rights to an irrigation system in West Maui, which provided approximately

13 percent of the irrigation water used by HC&S over the last ten years. A&B also owns 16,000

acres of watershed lands in East Maui, which supply a portion of the irrigation water used by

HC&S. A&B also held four water licenses to another 30,000 acres owned by the State of Hawaii

in East Maui, which over the last ten years have supplied approximately 56 percent of the

irrigation water used by HC&S. The last of these water license agreements expired in 1986, and

all four agreements were then extended as revocable permits that were renewed annually. In

2001, a request was made to the State Board of Land and Natural Resources (the “BLNR”) to

replace these revocable permits with a long-term water lease.

Page 7: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

"Pending the conclusion by the BLNR of this contested case hearing on the request for the long-

term lease, the BLNR has renewed the existing permits on a holdover basis, which has been the

subject of litigation.

"In January 2016, the state court ruled that the BLNR lacked legal authority to keep the

revocable permits in holdover status beyond one year. The court has allowed for an immediate

appeal of this ruling. For information regarding legal proceedings involving A&B’s irrigation

systems, see “Legal Proceedings” below."

"ITEM 3. LEGAL PROCEEDINGS

"Legal Proceedings and Other Contingencies: A&B owns 16,000 acres of watershed lands in

East Maui that supply a significant portion of the irrigation water used by Hawaiian Commercial

& Sugar Company ("HC&S"), a division of A&B that produces raw sugar. A&B also held four

water licenses to another 30,000 acres owned by the State of Hawaii in East Maui which, over

the last ten years, have supplied approximately 56 percent of the irrigation water used by HC&S.

The last of these water license agreements expired in 1986, and all four agreements were then

extended as revocable permits that were renewed annually. In 2001, a request was made to the

State Board of Land and Natural Resources (the "BLNR") to replace these revocable permits

with a long-term water lease. Pending the conclusion by the BLNR of this contested case hearing

on the request for the long-term lease, the BLNR has kept the existing permits on a holdover

basis. Three parties filed a lawsuit on April 10, 2015 (the “4/10/15 Lawsuit”) alleging that the

BLNR has been renewing the revocable permits annually rather than keeping them in holdover

status. The lawsuit asks the court to void the revocable permits and to declare that the renewals

were illegally issued without preparation of an environmental assessment (“EA”). In December

2015, the BLNR decided to re-affirm its prior decisions to keep the permits in holdover status.

This decision by the BLNR is being challenged by the three parties. In January 2016, the court in

the 4/10/15 Lawsuit ruled that the renewals were not subject to the EA requirement but that the

BLNR lacked legal authority to keep the revocable permits in holdover status beyond one year.

The court has allowed the parties to take an immediate appeal of this ruling.

"In addition, on May 24, 2001, petitions were filed by a third party, requesting that the

Commission on Water Resource Management of the State of Hawaii ("Water Commission")

establish interim instream flow standards ("IIFS") in 27 East Maui streams that feed the

Company's irrigation system. The Water Commission initially took action on the petitions in

2008 and 2010, but the petitioners requested a contested case hearing to challenge the Water

Commission's decisions on certain petitions. The Water Commission denied the contested case

hearing request, but the petitioners successfully appealed the denial to the Hawaii Intermediate

Court of Appeals, which ordered the Water Commission to grant the request. The Commission

then authorized the appointment of a hearings officer for the contested case hearing and

expanded the scope of the contested case hearing to encompass all 27 petitions for amendment of

the IIFS for East Maui streams in 23 hydrologic units. The evidentiary phase of the hearing

before the Commission-appointed hearings officer was completed on April 2, 2015. On January

15, 2016, the Commission-appointed hearings officer issued his recommended decision on the

petitions."

Page 8: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

"The recommended decision would restore water to streams in 11 of the 23 hydrologic units. A

final decision on the petitions from the Commission is not expected until at least the second

quarter of 2016.

"If the Company is not permitted to use sufficient quantities of stream waters, it would have a

material adverse effect on the Company’s sugar-growing operations in 2016 and the Company’s

pursuit of a diversified agricultural model in subsequent years."

Note 21. Source: ALEXANDER & BALDWIN, INC. Annual Report Form 10K.

Filed on 02/29/2016 Web Accessed: January 19, 2017. http://phx.corporate-ir.net/phoenix.zhtml?c=85663&p=irol-SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTEwNzc5MzYyJkRTRVE9MCZTRVE9MCZTUURFU0M9U0VDVElPTl9FTlRJUkUmc3Vic2lkPTU3#sE8191659D7355765842091970A21A4C4

_______________________

Clarification to Note 21

DCCA STATE OF HAWAII (Abbreviated)

Downloaded on January 19, 2017.

Business Information

MASTER NAME HAWAIIAN SUGAR & TRANSPORTATION COOPERATIVE

BUSINESS TYPE Agriculture/Fish Co-op

FILE NUMBER 46508 A2

STATUS Active

PURPOSE PRODUCING, ASSEMBLING, MARKETING, BUYING OR SELLING

AGRICULTURAL PRODUCTS (INCLUDING BUT NOT LIMITED TO

LIVESTOCK AND/OR FOWL) OR HARVESTING, PRESERVING, DRYING,

PROCESSING, MANUFACTURING, BLENDING, CANNING, PACKING,

GINNING, GRADING, STORING, WAREHOUSING, HANDLING,

SHIPPING, OR UTILIZING THE PRODUCTS; (SEE AMENDMENT FILED

11/10/2016)

PLACE

INCORPORATED Hawaii UNITED STATES

INCORPORATION

DATE Feb 2, 1981

MAILING

ADDRESS P O BOX 1056

PUUNENE, Hawaii 96784

UNITED STATES

TERM PER

AGENT NAME CHRIS BENJAMIN

Page 9: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

____________________

Coast Guard Vessel Documentation (1 of 1)

Vessel Name: MOKU PAHU

USCG Doc. No.: 649569

Vessel Service: TOWING VESSEL IMO Number: 7932202

Trade Indicator: Coastwise Unrestricted, Registry Call Sign: WBWK

Hull Material: STEEL Hull Number: 943

Ship Builder: * Year Built: 1982

Length (ft.): 133.5

Hailing Port: HONOLULU HI Hull Depth (ft.): 34.6

Owner:

HAWAIIAN SUGAR &

TRANSPORTATION

C/O AMERICAN SHIP MANAGEMENT

LLC 1320 WILLOW PASS ROAD SUITE

485

CONCORD, CA 94520

Hull Breadth (ft.): 81.9

Gross Tonnage: 1454

Net Tonnage: 988

Documentation Issuance Date: May 24, 2016 Documentation Expiration Date: June 30, 2017

Previous Vessel Names: No Vessel Name Changes

Previous Vessel Owners:

HAWAIIAN SUGAR & TRANSPORTATION

HAWAIIAN SUGAR & TRANSPORTATION

HAWAIIAN SUGAR & TRANSPORTATION

HAWAIIAN SUGAR & TRANSPORTATION

HAWAIIAN SUGAR & TRANSPORTATION

HAWAIIAN SUGAR & TRANSPORTATION

HAWAIIAN SUGAR & TRANSPORTATION

HAWAIIAN SUGAR & TRANSPORTATION

Emotional Send-Off for MV MOKU PAHU On Last Sugar Run

International Organization of Masters, Mates & Pilots (IOMMP) December 28th 2016

http://bridgedeck.org/latest/emotional-send-off-for-mv-moku-pahu-on-last-sugar-run/

Web Accessed: January 19, 2017

Page 10: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

22. UNITED STATES DEPARTMENT OF AGRICULTURE

NATIONAL AGRICULTURAL STATISTICS SERVICE

PACIFIC REGION FIELD CROP REVIEW

PACIFIC REGION FIELD CROP REVIEW – HAWAII Released: January 21, 2014 · Frequency: Monthly ·

(USPS 598-270) VOL. 2 NO. 1

FIELD CROP ACREAGE, YIELD, AND PRODUCTION

HAWAII – Crop - Sugar Cane - 1,000 Acres

Area Planted Area Harvested

2012 2013 2012 2013 (Estimate)

--- --- 17.4 17.5

[Emphasis Supplied]

Source: United States Department of Agriculture National Agricultural Statistics Service Pacific Region

Field Crop Review. Web Accessed: January 19, 2017. httpshttps://www.nass.usda.gov/Statistics_by_State/Hawaii/Publications/Sugarcane_and_Specialty_Crops/Sugarcane/2014/201401fldrv.pdf

______________________

ALEXANDER & BALDWIN, INC. Form 10-K Filed February 28, 2013 Web Accessed: January 19, 2017.

http://phx.corporate-ir.net/phoenix.zhtml?c=85663&p=IROL-

secToc&TOC=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9vdXRsaW5lLnhtbD9yZXBvPXRlbmsmaXBhZ2U9ODc2MTgxMiZzdWJzaWQ9NTc%3d&ListAll=1&sXBRL=1

C. Agribusiness (1) Production

HC&S harvested 15,900 acres of sugar cane in 2012 (compared with 15,063 in 2011).

[Emphasis Supplied]

______________________

PACIFIC REGION FIELD CROP REVIEW – HAWAII Released: September 23, 2014 · Frequency: Monthly ·

VOL. 2 NO. 9

FIELD CROP ACREAGE, YIELD, AND PRODUCTION

HAWAII – Crop - Sugar Cane - 1,000 Acres

Page 11: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

Area Harvested

2013 2014 (Forecast)

17.7 19.0

[Emphasis Supplied]

Source: United States Department of Agriculture National Agricultural Statistics Service Pacific Region Field Crop

Review. Web Accessed: January 19, 2017.

https://www.nass.usda.gov/Statistics_by_State/Hawaii/Publications/Sugarcane_and_Specialty_Crops/Sugarcane/2014/201409fldrv.pdf

______________________

ALEXANDER & BALDWIN, INC. Form 10-K Filed March 3, 2014

http://phx.corporate-ir.net/phoenix.zhtml?c=85663&p=irol-

SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTk0MzUwNjQmRFNFUT0wJlNFUT0wJlNRREVTQz1TRUNUSU9OX0VOVElSRSZz

dWJzaWQ9NTc%3d

D. Agribusiness (1) Production

HC&S harvested 15,400 acres of sugar cane in 2013 (compared with 15,900 acres in 2012.

[Emphasis Supplied]

______________________

NOTES, SUPPLIED

A. The September 23, 2014 Pacific Region Field Crop Review is the most current available through

the Hawaii Department of Agriculture, Agricultural Development Corporation (ADC).

B. “Area Planted” is a category on the January 21, 2014 Pacific Region Field Crop Review for years

2012 and 2013.

C. “Area Planted” is not a category reported on the September 23, 2014 Pacific Region Field Crop

Review.

D. By the United States Department of Agriculture National Agricultural Statistics Service Pacific Region Field Crop Reviews, HC&S did not plant sugar cane past 2013, HC&S continued to harvest sugar cane maturing in 2013, 2014, 2015, and 2016.

Page 12: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

RAINFALL & WATER

NOTE 14, above. "The primary reason for the decline in sugar production has been the unprecedented drought conditions affecting the island of Maui. In 2008 HC&S had the lowest East Maui water deliveries on record since the Company first began recording deliveries in 1925. Moreover, the two-year period beginning in 2007, and extending through 2008 marked two consecutive years of the lowest rainfall recorded. A chronic lack of water that has extended throughout the crop's lifecycle has had serious adverse impacts on crop yields. HC&S harvested 16,961 acres in 2008 (compared with 16,895 in2007). Yields averaged 8.6 tons of sugar in 2008 (compared with 9.7 in 2007)." [Emphasis Supplied] NOTE 15, above. "The primary reason for the decline in sugar production has been the conditions affecting the island of Maui in 2007 and 2008. In 2008 HC&S had the lowest East Maui water deliveries on record since A&B first began recording deliveries in 1925, and 2007-2008 marked two consecutive years of the lowest rainfall recorded. The two-year crop harvested in 2009 suffered from lack of water throughout its lifecycle, which significantly reduced crop yields. HC&S harvested 15,028 acres of sugar cane in 2009 (compared with 16,961 in 2008). This reduction in harvest acres was designed to improve future-year yields by increasing the average age of the crop. Yields averaged 8.4 tons of sugar per acre in 2009 (compared with 8.6 in 2008)." [Emphasis Supplied]

_______________________

Page 13: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

Giambelluca, T.W., Q. Chen, A.G. Frazier, J.P. Price, Y.-L. Chen, P.-S. Chu,

J.K. Eischeid, and D.M. Delparte, 2013:

Online Rainfall Atlas of Hawai`i. Bull. Amer. Meteor. Soc. 94, 313-316,

doi: 10.1175/BAMS-D-11-00228.1.

Web: http://rainfall.geography.hawaii.edu/downloads.html

Web Accessed: January 17, 2017

Page 14: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

Clif Hasegawa <[email protected]>

Request for Assistance - Atlas of Hawaii - Rainfall Maps 2014, 2015, 2015

Abby Frazier <[email protected]> Wed, Jan 18, 2017 at 12:32 PM To: Clif Hasegawa <[email protected]> Cc: Thomas Giambelluca <[email protected]>

Hi Clif, Tom just sent me the attachment you sent him in the first email - those images are mean maps, that is - the average rainfall from 1978-2007. They are not showing rainfall for the year 2013. The citation for those maps should be our Rainfall Atlas citation (which was in 2013) - please see our How To Cite page (http://rainfall.geography.hawaii.edu/howtocite.html):

Giambelluca, T.W., Q. Chen, A.G. Frazier, J.P. Price, Y.-L. Chen, P.-S. Chu, J.K.

Eischeid, and D.M. Delparte, 2013: Online Rainfall Atlas of Hawai‘i. Bull. Amer.

Meteor. Soc. 94, 313-316, doi: 10.1175/BAMS-D-11-00228.1. Please let us know if you need further clarification. Thanks! Abby Abby G. Frazier, Ph.D. Research Geographer USDA Forest Service Pacific Southwest Research Station Institute of Pacific Islands Forestry (IPIF) email: [email protected] https://sites.google.com/a/hawaii.edu/abby_frazier/ [Emphasis Supplied]

____________________________________________

Note, Supplied.

Dr. Tom Giambelluca is Professor, Department of Geography at UH Mānoa specializing in

climate, climate change, and ecohydrology. Dr. Giambelluca is Principal Investigator and

Team Leader for Rainfall Atlas of Hawai`i.

_________________________________________________

Page 15: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

MAUI RAINFALL

YEAR

ANNUAL

INCHES

1920 64.82

1921 83.75

1922 76.82

1923 104.26

1924 85.86

1925 72.32

1926 49.28

1927 103.43

1928 67.06

1929 89.07

1930 95.77

1931 71.82

1932 82.84

1933 54.47

1934 70.76

1935 63.52

1936 85.59

1937 105.29

1938 91.09

1939 85.75

1940 74.39

1941 77.42

1942 86.83

1943 67.79

1944 63.65

Page 16: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

1945 56.34

1946 85.65

1947 68.82

1948 100.1

1949 55.5

1950 100.77

1951 77.35

1952 68.45

1953 41.8

1954 79.71

1955 77.32

1956 87.28

1957 81.09

1958 77.55

1959 72.97

1960 73.11

1961 76.45

1962 49.99

1963 80.85

1964 77.97

1965 90.9

1966 64.3

1967 99.87

1968 101.13

1969 102.5

1970 82.1

1971 70.95

Page 17: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

1972 62.93

1973 57.52

1974 73.08

1975 58.95

1976 57.83

1977 62.84

1978 77.7

1979 88.09

1980 99.91

1981 61.93

1982 120.83

1983 54.62

1984 49.22

1985 78.19

1986 86.11

1987 89.69

1988 82.04

1989 107.78

1990 102.82

1991 68.06

1992 70.26

1993 65.54

1994 83.68

1995 49.55

1996 78.12

1997 84.99

1998 56.15

Page 18: HAWAII - COMMISSION ON WATER RESOURCE MANAGMENT - KEEPERS OF THE PUBLIC TRUST

1999 60.89

2000 61.58

2001 55.37

2002 72.97

2003 55.99

2004 88.12

2005 80.58

2006 76.01

2007 62.27

2008 51.39

2009 60.63

2010 48.41

2011 53.71

2012 37.97

Source: Giambelluca, T.W., Q. Chen, A.G. Frazier, J.P. Price, Y.-L. Chen, P.-S. Chu,

J.K. Eischeid, and D.M. Delparte, 2013: Online Rainfall Atlas of Hawai`i.

Bull. Amer. Meteor. Soc. 94, 313-316, doi: 10.1175/BAMS-D-11-00228.1.

NOTES, SUPPLIED

A. The foregoing Chart is abbreviated to illustrate that 2007 and 2008 were not the lowest

rainfall periods in Maui History as stated in NOTES 14 and 15.

B. The Mean Annual Rainfall Maps from Rainfall Atlas of Hawai`i identify the East Maui

Region as one of two wettest areas on Maui having substantial rainfall.

C. Mean Annual Rainfall 1978 – 2007 for East Maui Irrigation (EMI) Region

1) 330.0 inches to 404.4 inches

2) 280.0 inches to 330.0 inches

3) 230.0 inches to 280.0 inches