The Hawai`i Commission on Water Resource Management --- A Good Steward, A Good Shepherd

Clifton M. Hasegawa
President and CEO
Clifton M. Hasegawa & Associates, LLC
1044 Kilani Avenue 12
Wahiawa, Hawaii 96786-2243
Telephone: (808) 498-8408
Email: clifhasegawa@gmail.com
Internet: http://www.linkedin.com/in/cliftonhasegawa
VIA EMAIL
September 20, 2014
The Commission on Water Resource Management
William M. Tam, Deputy Director
Commissioners
William J. Aila, Jr., Chairperson
Linda M. Rosen, M.D., M.P.H.
Kamana Beamer
Michael G. Buck
Milton D. Pavao
Jonathan Starr

RE: Petition to Amend the Interim Instream Flow Standard for 27 Streams in East Maui by
Na Moku ‘Aupuni o Ko’olau Hui (Na Moku), Beatrice Kepani Kekahuna, Marjorie Wallet,
and Elizabeth Lehua Lapenia
Dear Chairperson Aila, Commissioner Rosen, Commissioner Beamer, Commissioner Buck,
Commissioner Pavao and Commissioner Starr,
Thank for your invitation to submit my concerns in regard to arguments advanced
by Alexander & Baldwin (“A&B”) and Hawaiian Commercial Sugar Company (“HC&S”)
stating their agricultural needs and legitimate entitlement to more stream water from the
East Maui Watershed to sustain its plantations, agricultural and farming operations.
From information filed with the United States Securities & Exchange Commission
from 1996 through 2014 by Alexander & Baldwin (A&B), individually, in behalf of its
division Hawaiian Commercial Sugar Company (“HC&S”), the growing of sugar cane,
harvest, milling operations, the tonnage of raw sugar and molasses produced is influenced
by availability of ditch water. The availability of water from the East Maui Watershed
transported by flumes, ditches, tunnels, pipelines and diversion channels is not the sole
impacting factor that A&B and HC&S have represented to the Commission on Water
Resource Management. Please refer to the enclosed attachments (2).
The chronology established from information filed with the United States Securities
& Exchange Commission from 1996 through 2014 by Alexander & Baldwin (A&B),
individually, in behalf of its division Hawaiian Commercial Sugar Company (“HC&S”) and
through information published by the Commission on Water Resource Management
establish a series of events that raise the specter of manipulative conduct. To the extreme
would be a finding questioning the truthfulness, accuracy and completeness of the
information filed with the United States Securities & Exchange Commission from 1996
through 2014 by Alexander & Baldwin (A&B), individually, in behalf of its division
Hawaiian Commercial Sugar Company (“HC&S”), to include information secured from
East Maui Irrigation Company, Ltd. (EMI, a subsidiary of Alexander & Baldwin (A&B).

The Commission on Water Resource Management by and through extensive studies,
analyses, extensive public hearings involving the Commission staff, the U.S. Geological
Survey, the Hawaii Division of Aquatic Resources (DAR), the Maui Department of Water
Supply (Maui DWS), the Bernice Pauahi Bishop Museum has thoroughly investigated
water availability from the East Maui Watershed.
Water is a precious resource. Water is not to be wasted, horded, and converted to
other than agricultural purposes unless permitted by the Commission on Water Resource
Commission. Water to sustain cultural, historic practices and use by the people are
paramount.
The decision of the Hawaiì Intermediate Court of Appeals, In Re Petition To
Amend Interim Instream Flow Standards for Waikamoi, Puohokama, Haipuaena,
Punalau/Kolea, Honomau, West Wailuaiki, East Wailuaiki, Kopiliula, Puakaa, Waiohue,
Paakea, Kapalua & Hanawi Streams, the Honorable Daniel R. Foley, Presiding Judge, the
Honorable Katherine G. Leonard, Associate Judge, the Honorable Alexa D.M. Fujise,
Associate Judge is instructive. The Court stated,
“Nā Moku demonstrated through unrefuted testimony that its
members were native Hawaiians with traditional and customary
rights, appurtenant water rights, and/or riparian rights to waters
from the streams for among other tings, the cultivation of taro.
Article XII, §7 of the Hawaiì Constitution protects such rights
to waters from the streams for, among other things, the cultivation
of taro. Article XII, §7 of the Hawaiì Constitution protects such
rights, and Nā Moku’s members demonstrated injury because their
ability to exercise these rights has been adversely affected by the
streamflow within the ahupuaà.”
Nā Moku has established a prima facie case.

The burden of proof has shifted to Parties objecting to the Nā Moku Petition for
release of instream water to make their cases.
In a hearing of a contested case, the standard of evidentiary proof is by a
preponderance of the evidence.
See: United States Coast Guard Decision and Order. Docket Number 2013-0190.
Enforcement Activity No. 4596583. Date Issued: September 10, 2014. Issued By:
Honorable Bruce Tucker Smith, Administrative Law Judge.
http://www.uscg.mil/alj/decisions/2014/SR-2014-14_Hopper.pdf
Additional reference: Hawaii Office of Administrative Hearings.
Alexander & Baldwin (A&B) and Hawaiian Commercial Sugar Company
(“HC&S”) are required to establish by a preponderance of evidence their needs and
requirements for instream water from the East Maui Watershed for their agricultural and
farming operations.
Thank you very much for this opportunity to present my concerns to the State of
Hawai`i Commission on Water Resource Commission.
Respectfully,
Electronically Signed
Clifton M. Hasegawa
Enclosures: 1. A&B – HC&S Production 1996 to 2014
2. A&B – HC&S Sugar Production 1996 to 2014

ALEXANDER & BALDWIN (A&B)
HAWAIIAN COMMERCIAL & SUGAR COMPANY (HC&S)
SUGAR PRODUCTION FROM 1996 TO 2014
YEAR ACRES
RAW
SUGAR MOLASSES NOTES
HARVESTED (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
RAW
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
RAW
2009 15,028 126,800 41,700 15
OCTOBER 18, 2010 - CWRM DENYS NA
MOKU ÀUPUNI o KOÒLAU HUI (NA MOKU)
PETITION FOR CONTESTED CASE HEARING
YEAR ACRES
RAW
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 ÀUPUNI o KOÒLAU HUI (NA MOKU)
PETITION FOR CONTESTED CASE HEARING

YEAR ACRES
RAW
2012 15,900 178,300 50,500 18
2013 15,400 191,500 54,800 19
2014
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 harvesting 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 acreas harvested was due primarily to weather-related
slow downs. 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 increase 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)."

SUGAR PRODUCTION – 1996 TO 2014
ALEXANDER & BALDWIN (A&B) - HAWAIIAN COMMERCIAL & SUGAR
COMPANY (HC&S)
A&B / HC&S / Matson. Form 10-K Annual Report. Filed: March 3,
2014
http://phx.corporate-ir.net/phoenix.zhtml?c=85663&p=irol-
SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1s
P2lwYWdlPTk0MzUwNjQmRFNFUT0wJlNFUT0wJlNRREVTQz1TRUNUSU9OX0
VOVElSRSZzdWJzaWQ9NTc%3d
A&B has been engaged in the production of cane sugar in Hawaii since 1870. 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 its McBryde
Resources, Inc. (“McBryde”) subsidiary, and (3) its Kahului Trucking & Storage, Inc.
(“KT&S”) subsidiary, which provide 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 from Hawaii to the U.S. West Coast and coal from the
U.S. West Coast to Hawaii.
HC&S is Hawaii’s only producer of raw sugar, producing approximately 191,500 tons of
raw sugar in 2013 (compared with 178,300 tons in 2012). The primary reasons for the
increase in production were higher yields on the plantation due to improved farming
practices and water deliveries. HC&S harvested 15,400 acres of sugar cane in 2013
(compared with 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). As a by-product of sugar production,
HC&S also produced approximately 54,800 tons of molasses in 2013 (compared to 50,500
tons in 2012).

A&B / HC&S / Matson. Form 10-K Annual Report. Filed: Feb 28, 2013
http://phx.corporate-ir.net/phoenix.zhtml?c=85663&p=irol-
SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1s
P2lwYWdlPTg3NjE4MTImRFNFUT0wJlNFUT0wJlNRREVTQz1TRUNUSU9OX0V
OVElSRSZzdWJzaWQ9NTc%3d
A&B has been engaged in the production of cane sugar in Hawaii since 1870. 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 its McBryde
Resources, Inc. (“McBryde”) subsidiary, (3) its Kahului Trucking & Storage, Inc.
(“KT&S”) and Kauai Commercial Company, Incorporated (“KCC”) subsidiaries, which
provide 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 from
Hawaii to the U.S. West Coast and coal from the U.S. West Coast to Hawaii.
decrease in production were lower yields on the plantation due to an increase in fields
harvested as green cane, which suppresses yields, and drier conditions resulting in lower
water deliveries to the crop. HC&S harvested 15,900 acres of sugar cane 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). As a by-product of sugar production, HC&S also produced approximately
50,500 tons of molasses in 2012 (compared to 53,100 in 2011).

http://investor.matson.com/secfiling.cfm?filingID=3453-12-26&CIK=3453
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 15,063 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). As
a by-product of sugar production, HC&S also produced approximately 53,100 tons of
molasses in 2011 (compared to 52,800 in 2010).
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). As
a by-product of sugar production, HC&S also produced approximately 52,800 tons of
molasses in 2010 (compared to 41,700 in 2009).

A&B / HC&S / Matson. Form 10-K Annual Report. Filed: Feb 26, 2010.
HC&S is Hawaii’s largest producer of raw sugar, producing approximately 126,800 tons of
raw sugar in 2009, or about 72 percent of the raw sugar produced in Hawaii for the year
(compared with 145,200 tons, or about 75 percent, in 2008). The primary reason for the
decline in sugar production was the unprecedented drought 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). As a by-product of sugar production, HC&S also produced
approximately 41,700 tons of molasses in 2009 (compared with 52,200 in 2008).
(compared with 164,500 tons, or about 80 percent, in 2007). The primary reason for the
decline in sugar production has been the unprecedented continuing 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 of sugar cane in 2008 (compared with 16,895 in 2007). Yields averaged 8.6 tons of
sugar per acre in 2008 (compared with 9.7 in 2007). As a by-product of sugar production,
HC&S also produced approximately 52,200 tons of molasses in 2008 (compared with
51,700 in 2007).

(compared with 173,600 tons, or about 81 percent, in 2006). The decrease in production
was due to a number of reasons, including adverse weather conditions, the age of the crop,
and various farming practices. HC&S harvested 16,895 acres of sugar cane in 2007
(compared with 16,950 in 2006). Yields averaged 9.7 tons of sugar per acre in 2007
(compared with 10.2 in 2006). As a by-product of sugar production, HC&S also produced
approximately 51,700 tons of molasses in 2007 (compared with 55,900 in 2006).
HC&S is Hawaii's largest producer of raw sugar, producing approximately 173,600 tons of
(compared with 192,700 tons, or about 76 percent, in 2005). 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. Total Hawaii sugar production amounted to
approximately 3 percent of total U.S. sugar production in 2006. HC&S harvested 16,950
acres of sugar cane in 2006 (compared with 16,639 in 2005). Yields averaged 10.2 tons of
sugar per acre in 2006 (compared with 11.6 in 2005). As a by-product of sugar production,
HC&S also produced approximately 55,900 tons of molasses in 2006 (compared with
57,100 in 2005).

HC&S is Hawaii's largest producer of raw sugar, having produced approximately 198,800
tons of raw sugar in 2004, or about 77 percent of the raw sugar produced in Hawaii
(compared with 205,700 tons, or about 79 percent in 2003). 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 a significant drought during the first
year of crop growth and the reappearance of leaf scald disease, which had been dormant for
years. Total Hawaii sugar production, in turn, amounted to approximately three percent of
total U.S. sugar production. HC&S harvested 16,890 acres of sugar cane in 2004 (compared
with 15,660 in 2003). More acres were harvested in 2004 to compensate for the yield losses
noted above. Yields averaged 11.8 tons of sugar per acre in 2004 (compared with 13.1 in
2003). The average cost per ton of sugar produced at HC&S was $435 in 2004 (compared
with $422 in 2003). The increase in cost per ton was attributable to lower sugar production.
As a by-product of sugar production, HC&S also produced approximately 65,100 tons of
molasses in 2004 (compared with 72,500 in 2003).
A&B / HC&S / Matson. Form 10-K Annual Report. Filed: Mar 8, 2005
(compared with 205,700 tons, or about 79 percent in 2003). 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 a significant drought during the first
year of crop growth and the reappearance of leaf scald disease, which had been dormant for
years. Total Hawaii sugar production, in turn, amounted to approximately three percent of
total U.S. sugar production. HC&S harvested 16,890 acres of sugar cane in 2004 (compared
with 15,660 in 2003). More acres were harvested in 2004 to compensate for the yield losses
noted above. Yields averaged 11.8 tons of sugar per acre in 2004 (compared with 13.1 in
2003). The average cost per ton of sugar produced at HC&S was $435 in 2004 (compared
with $422 in 2003). The increase in cost per ton was attributable to lower sugar production.
As a by-product of sugar production, HC&S also produced approximately 65,100 tons of
molasses in 2004 (compared with 72,500 in 2003).

(compared with 215,900 tons or about 79 percent in 2002). The decrease in production was
due primarily to an extended drought on Maui, rainy weather late in the year, and arson to
nearly 900 acres of cane. Total Hawaii sugar production, in turn, amounted to
approximately 5 percent of total U.S. sugar production. HC&S harvested 15,660 acres of
sugar cane in 2003 (compared with 16,557 in 2002). The decrease in acres harvested was
due primarily to weather-related slowdowns. Yields averaged 13.1 tons of sugar per acre in
2003 (compared with 13 in 2002). The average cost per ton of sugar produced at HC&S
was $371 in 2003 (compared with $332 in 2002). The increase in cost per ton was
attributable to lower sugar production and higher operating costs. As a by-product of sugar
production, HC&S also produced approximately 72,500 tons of molasses in 2003
(compared with 74,300 in 2002).
(compared with 191,500 tons or about 70 percent in 2001). The increase in production was
due primarily to an extended harvesting season, combined with improved factory
efficiency. Total Hawaii sugar production, in turn, amounted to approximately four percent
of total United States sugar production. HC&S harvested 16,557 acres of sugar cane in
2002 (compared with 15,101 in 2001). The increase in acres harvested was due primarily to
a later-than-expected factory startup in 2001. Yields averaged 13.0 tons of sugar per acre in
2002 (compared with 12.7 in 2001). The average cost per ton of sugar produced at HC&S
was $332 in 2002 (compared with $371 in 2001). The decrease in cost per ton was
attributable to higher sugar production, partially offset by higher operating costs. As a by-product
of sugar production, HC&S also produced approximately 74,300 tons of molasses
in 2002 (compared with 71,200 in 2001).

HC&S is Hawaii's largest producer of raw sugar, having produced 191,512 tons of raw
sugar in 2001, or about 70% of the raw sugar produced in Hawaii, compared with 210,269
tons of raw sugar in 2000. The decrease in production was due primarily to an extended
drought. Total Hawaii sugar production, in turn, amounted to approximately four percent of
total United States sugar production. HC&S harvested 15,101 acres of sugar cane in 2001,
compared with 17,266 acres in 2000. The decrease in acres harvested was due primarily to
a later-than-expected factory startup in 2001 and unexpected factory problems and weather
delays toward the end of the 2001 harvesting season. Yields averaged 12.7 tons of sugar per
acre in 2001, compared with 12.2 tons per acre in 2000. The average cost per ton of sugar
produced at HC&S was $371 in 2001, compared with $331 in 2000. The increase in cost
per ton was attributable to higher operating costs and lower sugar production. As a by-product
of sugar production, HC&S also produced 71,207 tons of molasses in 2001,
compared with 70,551 tons in 2000.
HC&S is Hawaii's largest producer of raw sugar, producing 210,269 tons of raw sugar in
2000, or 70% of the raw sugar produced in Hawaii, compared with 227,832 tons of raw
sugar in 1999. Total Hawaii sugar production, in turn, amounted to approximately four
percent of total United States sugar production. HC&S harvested 17,266 acres of sugar cane
in 2000, compared with 17,278 acres in 1999. Yields averaged 12.2 tons of sugar per acre
in 2000, compared with 13.2 tons per acre in 1999. The decrease reflects the negative
impact of a two-year drought on Maui. The average cost per ton of sugar produced at
HC&S was $331 in 2000, compared with $360 in 1999. The decrease in cost per ton is
primarily attributable to lower operating costs. As a by-product of sugar production, HC&S
also produced 70,551 tons of molasses in 2000, compared with 92,246 tons in 1999. The
decrease in molasses production is attributable to improved sugar recovery. In response to
the drought-reduced yields and historically-low raw sugar prices, in September 2000,
HC&S closed one of its two sugar mills and consolidated all processing at the remaining
mill. Neither the number of acres in sugar cane nor the total sugar production is expected to
be affected by such action.

sugar in 1998. Total Hawaii sugar production, in turn, amounted to approximately four
in 1999, compared with 12.7 tons per acre in 1998. The average cost per ton of sugar
produced at HC&S was $360.00 in 1999, compared with $373.89 in 1998. The decrease in
cost per ton is attributable to the five percent increase in sugar production and to improved
farming practices. As a by-product of sugar production, HC&S also produced 92,246 tons
of molasses in 1999, compared with 80,915 tons in 1998.
sugar in 1997. Total Hawaii sugar production, in turn, amounted to approximately five
in 1998, compared with 11.6 tons per acre in 1997, due to changes in farming and factory
practices. The average cost per ton of sugar produced at HC&S, including the cost of power
production, was $373.89 in 1998, compared with $446.92 in 1997. The decrease in cost per
ton is attributable to the nine percent increase in sugar production and to aggressive cost
reduction efforts, including personnel reductions, that had been initiated in January 1998.
As a by-product of sugar production, HC&S also produced 80,915 tons of molasses in
1998, compared with 77,960 tons in 1997.
1997, or 55% of the raw sugar produced in Hawaii. Total Hawaii sugar production, in turn,
amounted to approximately five percent of total United States sugar production. HC&S
harvested 17,005 acres of sugar cane in 1997, compared with 17,183 acres in 1996. Yields
averaged 11.6 tons of sugar per acre in 1997, compared with 11.7 tons per acre in 1996.
The average cost per ton of sugar produced at HC&S, including the cost of power
production, was $446.92 in 1997, compared with $410.31 in 1996. The increase in cost per
ton is attributable in part to decreased sugar production. An aggressive cost reduction effort,
including personnel reductions, has been undertaken, and is expected to improve
performance in 1998. As a by-product of sugar production, HC&S also produced 77,960
tons of molasses in 1997, compared with 65,525 tons in 1996.

HC&S harvested 17,183 acres of sugar cane in 1996, compared with 17,661 acres in 1995.
Yields averaged 11.7 tons of sugar per acre in 1996, a 0.5 ton per acre improvement over
1995 levels. The improvement in yield reflects the early beneficial impact of a number of
improvements in cultivation practices taken to deal with a reduction in yield in 1995. The
average cost per ton of sugar produced at HC&S, including the cost of power production,
was $410.31 in 1996, compared with $429.50 in 1995. Continuing cost reduction programs
have been successful in minimizing total cost increases. As a by-product of sugar
production, HC&S also produced 65,525 tons of molasses in 1996, compared with 63,339
tons in 1995. In its last harvest, McBryde harvested 3,898 acres of sugar cane and produced
8,754 tons of molasses in 1996, compared with 3,237 acres and 9,219 tons in 1995. The
average yield at McBryde in 1996 was 5.2 tons of sugar per acre, down from 7.4 tons in
1995.
HC&S harvested 17,661 acres of sugar cane in 1995, compared with 16,457 acres in 1994
and 16,726 acres in 1993. Yields averaged 11.2 tons of sugar per acre in 1995, the lowest
level in ten years, compared with 12.4 in 1994 and 13.4 in 1993. The reduction in yield in
1995 was due to a number of factors, most significantly the unusual lack of rainfall in 1995.
A number of steps have been taken to deal with the situation, based upon the results of a
rigorous evaluation by HC&S and industry experts of HC&S's cultivation practices and
growing conditions. These steps are expected to provide some benefit to the 1996 harvest,
but the full impact is not expected to occur until the 1997 harvest, since sugar cane is grown
on a two-year cycle. As a by- product of sugar production, HC&S also produced 63,339
tons of molasses in 1995, compared with 58,997 tons in 1994 and 61,954 tons in 1993.

A Brief History of Hawaiian Water Rights
The Honorable Antonio Perry, Associate Justice of the
Supreme Court of Hawai`i
June 15, 1912
Annual Dinner of the Hawaiian Bar Association

HAWAIIAN WATER RIGHTS --- A BRIEF HISTORY
A history, however brief, of the water rights of Hawai`i is a forcible
reminder of the material progress of these islands. The causes and the
results of the development of those rights on the one hand and the
growth of agricultural production and the increase of prosperity on the
on the other, bear close relation to each other. Water like land is one of
the elements contributing prominently to the wealth of a country and
certainty and security of titles to each are always sought but not always
obtained without a struggle. Due very largely to the generosity and
the wisdom of a King, Hawai`i has been fortunate in having had
individual titles to its land developed, defined and rendered secure at
an early day, the transition from the ancient state of affairs when the
King was the owner of all the land in the Kingdom, through a period
when titles in individuals were in embryo, undefined and almost
indefinable, to the present condition of clear definition and absolute
certainty, occupying in the aggregate scarcely more than a decade. So,
to, the titles to the water were rendered secure by the same act of King
Kamehameha III but the process of ascertaining and defining the
precise extent and limits of those rights has not been as brief and
decisive as was that relating to land.

In furtherance of the relinquishment by the King of great bulk of the
lands in his Kingdom to his chiefs and to the common people the Land
Commission was by Act of April 27, 1846, created to receive, hear and
pass upon the claims of all those who, under the terms of the royal gift,
deemed themselves entitled to portions of the land. . . . The act creating
the land commission contained a provision that the decision of the
board should be “in accordance with the principles established by the
Civil Code of this Kingdom in regard to prescription, occupancy,
fixtures, native usages in regard to landed tenures, water privileges
and rights of piscary” and other specified rights, but the commission
did not deem it to be part of its duty to hear claims to water or
determine or define the rights of persons or lands to water; no
adjudications were made by it on this subject. As far as that body and
that period were concerned, the whole matter was left for future
investigation and determination, --- with this qualification only, that as
is apparent from a long line of subsequent judicial decision, the water
rights, whatever they were, in existence at the time the awards of the
land commission were passed to the awardees as appurtenant to the
land. . . .

Water rights are destined to play an important part in the future of
Hawai`i as they have in its past.
The growth of urban communities and agricultural development of the
territory render inevitable the conservation and use in an increasing
degree of the available waters, with probable consolidation of some
rights and new distributions of others.
Source: Perry, Antonio. “A Brief History of Hawaiian Water Rights”.
S.1.: s.n., 1912. Read at the annual dinner of the Hawaiian Bar
Association, June 15, 1912 by Antonio Perry, Associate Justice of the
Supreme Court of Hawai`i.

The Hawai`i Commission on Water Resource Management --- A Good Steward, A Good Shepherd

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