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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: clifhasegawa@gmail.com
LinkedIn: https://www.linkedin.com/in/cliftonhasegawa
- January 19, 2017 -
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
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."
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)."
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.
"(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.
"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."
"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
____________________
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
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
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.
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]
_______________________
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
Clif Hasegawa <clifhasegawa@gmail.com>
Request for Assistance - Atlas of Hawaii - Rainfall Maps 2014, 2015, 2015
Abby Frazier <abbyf@hawaii.edu> Wed, Jan 18, 2017 at 12:32 PM
To: Clif Hasegawa <clifhasegawa@gmail.com>
Cc: Thomas Giambelluca <thomas@hawaii.edu>
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: abbyf@hawaii.edu
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.
_________________________________________________
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
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
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
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

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

  • 1. 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: clifhasegawa@gmail.com LinkedIn: https://www.linkedin.com/in/cliftonhasegawa - January 19, 2017 -
  • 2. 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
  • 3. 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."
  • 4. 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)."
  • 5. 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.
  • 6. "(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.
  • 7. "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."
  • 8. "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
  • 9. ____________________ 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
  • 10. 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
  • 11. 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.
  • 12. 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] _______________________
  • 13. 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
  • 14. Clif Hasegawa <clifhasegawa@gmail.com> Request for Assistance - Atlas of Hawaii - Rainfall Maps 2014, 2015, 2015 Abby Frazier <abbyf@hawaii.edu> Wed, Jan 18, 2017 at 12:32 PM To: Clif Hasegawa <clifhasegawa@gmail.com> Cc: Thomas Giambelluca <thomas@hawaii.edu> 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: abbyf@hawaii.edu 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. _________________________________________________
  • 15. 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
  • 16. 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
  • 17. 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
  • 18. 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