|     The contract provides that Eagle 
									Water shall offer a reasonable preferred 
									opportunity to purchase water to 
									municipalities, public water utilities and 
									public water districts, and commercial and 
									industrial entities in Eastern North 
									Carolina within the 15 counties of the 
									proposed CCPCUA before offering water 
									to parties outside of the CCPCUA; provided 
									Eagle Water may discuss the possibility of 
									offering water with such parties outside the 
									CCPCUA while it is offering such opportunity 
									to parties within the CCPCUA.  
									If sufficient contracts for water cannot be 
									implemented in a reasonable time period with 
									parties within the CCPCUA, then Eagle Water 
									will offer water to municipalities and 
									public water utilities customers outside the 
									CCPCUA.  We are currently 
									actively pursuing potential customers 
									outside this area, including municipalities 
									in the Raleigh area. Eagle Water's 
									twenty-year agreement with PCS (which is 
									indefinitely renewable) contains provisions 
									to ensure that a high-quality, long-term and 
									uninterupted water supply will be maintained 
									for our customers.  The projected life 
									of the mine is in excess of 70 years  
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