Basin Water wins contract for nitrate, perchlorate removal

• High-efficiency, packaged treatment system will achieve compliance with state and federal guidelines while increasing well productivity by over 30%

RANCHO CUCAMONGA, CA, Sept. 24, 2007 -- Basin Water Inc. announced today that it has been awarded a contract by the East Valley Water District of San Bernardino County, CA. The contract authorizes Basin Water to provide a system for the removal of nitrate and perchlorate at the district's Well #107 in east San Bernardino.

As part of a 10-year agreement that features guaranteed performance and guaranteed costs, Basin Water will provide patented technology, equipment, installation, system maintenance, and waste disposal services in accordance with agreed-upon throughput volume and reduction of contaminant levels to meet regulatory requirements. In addition, the District is expected to benefit from an increase of over 30% in output from the well, due to the treatment efficiency of the Basin Water system. Fabrication and installation of the new treatment facility is expected to begin almost immediately and should be completed by the end of 2007, with the facility coming online by the first of the new year. The facility will be designed to deliver a total of 2.5 million gallons a day of quality drinking water to the District's customer base of approximately 65,000 people.

According to Orlando Carreno, Vice President, Western Region of Basin Water, the new agreement offers another example of the company's commitment to providing its drinking water customers with reliable drinking water solutions. "In this region of California, as in many places in the country, making groundwater viable for drinking water supplies is an essential part of a long-term strategy to ensure the continued growth of communities. This installation represents our second agreement with the district," he said. "It is significant not only for its removal of dual contaminants with a minimal footprint, but also for the expansion of the district's capacity without costly changes in infrastructure. By providing an efficient system design with low life-cycle costs and backing guaranteed costs with a pay for performance agreement, we can help our clients deliver dependable and affordable quality drinking water for years to come," he said.

Perchlorate and nitrate a concern for California communities
Perchlorate is a toxic component of rocket and missile fuel and is also present in fireworks, ammunition, safety flares, matches, automobile air bags and is naturally occurring in certain fertilizers. This contaminant has generated increasing concern in recent years for its presence in drinking water supplies in 25 states and its effect on human health, and is particularly prevalent in this region of California. In 2006 the US EPA issued a "Cleanup Guidance" of 24.5 parts per billion (ppb) for perchlorate. On Sept. 19, the state of California established a guideline that set the MCL for perchlorate in drinking water at 6 ppb. The new regulation is set to become effective October 18th of this year.

Nitrate is a substance widely found in the environment as a byproduct of fertilizers, septic systems and groundwater recharge, and thus migrates easily into drinking water supplies. The federal government has set a maximum contaminant level (MCL) for nitrate at 45 parts per million (ppm). It is estimated that approximately 8,200 groundwater wells nationally exceed the MCL for nitrate.

Currently, the output at East Valley Water District's Well #107 contains nitrate around 50 ppm and perchlorate levels of 7-9 ppb. The treatment system designed by Basin Water for this location is expected to remove nitrate and perchlorate well below required regulatory levels. This treatment efficiency should allow the District to blend an additional 400 gpm of untreated water with the 1300 gpm throughput from the treatment system, achieving a finished water quality with nitrate and perchlorate below regulatory guidelines. This approach should increase the well's capacity by more than 30%.

The Basin Water ion exchange system that will be fabricated for this site will consist of two treatment paths housed in separate on-site containers, along with three ancillary tanks for resin regeneration and waste brine storage. The entire installation will fit on a 52' x 52' concrete pad to be built at the site by the District.

According to Robert Martin, General Manager for the East Valley Water District, the new facility should allow the District to add capacity to the system without extensive capital outlay and represents a 'lowest cost' solution for the District's customers. "With the Basin Water approach, the East Valley Water District adds a significant amount of reliable, quality drinking water to our system -- rapidly -- and does so without significant infrastructure development. This will help us maintain our level of service to the community at the best cost," he said.

Basin Water Inc. is a provider of reliable, long-term process solutions for a range of clients, which includes designing, building and implementing systems for the treatment of contaminated groundwater, wastewater, waste reduction and resource recovery.

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