| Rules
Governing Our Operation Under
the federal Surface Water Treatment Rule, surface supplies such as that used by
the City of New York require filtration unless certain rigid requirements can
be met. New York City's filtration avoidance of its Catskill-Delaware supply was
renewed in November 2002. This filtration avoidance is ongoing and is anticipated
to remain in effect into the future. This filtration avoidance applies to the
Shaft 22 aqueduct connection. Despite
the fact that the Water Works considers that it meets all filtration avoidance
criteria at Rye Lake, New York State initiated an enforcement action against the
Water Works in September, 1999. That action seeks to require the Water Works to
build a filtration plant for the Rye Lake supply. The
enforcement action is based on the premise that the Water Works did not meet filtration
avoidance criteria in 1991, and therefore must now build a filtration plant, irrespective
of the quality of the water. However, both the Environmental Protection Agency
and various states in a number of cases have allowed water systems to avoid filtration
after 1991, even though the system had not previously been in full compliance
with the Surface Water Treatment Rule. The
Water Works continues to contest the lawsuit brought by the State, but has authorized
the design of a treatment plant in accordance with a previous agreement with the
State. 
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