Lawsuit filed to halt use of Olympic Club well

                  By Melissa T. Miller, Special to the Independent
                  June 27, 2001

                  The Olympic Club has been forced to wait longer to begin implementing their plans to
                  operate a new water well on their property, after an environmental group sued to have
                  them stopped while legal questions about such projects are resolved.

                  The Committee to Save Lake Merced petitioned the San Mateo Superior Court to
                  issue a temporary restraining order to stop the Olympic Club from drilling a well that
                  was approved within a day of a precedent-setting case ruling against the California
                  Golf Club in South San Francisco that could change the way the county's health
                  department issues water well permits. A San Mateo County judge allowed the
                  Olympic Club to drill and test the new well, but told the Olympic Club not to operate
                  the well until questions regarding the permitting process were resolved in court.

                  This is the latest development in the Olympic Club's pursuit to build a second
                  well on their property - which the club says is a replacement for a well that was
                  retired and dismantled earlier this year - and is necessary to their award-winning golf
                  club operations. The second well is necessary in case their primary well fails, so that
                  a continuous water source can be guaranteed to keep their greens in the condition
                  that has made it one of the top PGA tour sites in the country.

                  This legal action follows on the heels of rising criticism from environmental
                  groups who have been fighting to have water levels restored at Lake Merced, which
                  have been declining sharply over the last several years. Though the Olympic Club
                  and two nearby private golf courses - which include the Lake Merced Golf Club and
                  the San Francisco Golf Club - use only 10 percent of the total water being pumped
                  out of the underground aquifer that also provides about 50 percent of Daly City and
                  San Bruno's drinking water, environmentalists argue the golf clubs proximity to Lake
                  Merced has a disproportionate effect on the lake's declining water levels. The lake
                  currently holds approximately half of its historical volume, and by some estimates,
                  may become a mudflat in less than 10 years, and going down the drain with it is a
                  decades-long history of being one of the nation's premier urban trout fisheries, habitat
                  for threatened and endangered species, and is a popular walking and picnicking
                  destination for both San Francisco and San Mateo residents.

                  The Olympic Club's coastal property straddles the San Francisco-San Mateo county
                  line. In February, the Olympic Club tried to drill a well on the San Francisco portion of
                  its property, in an area known to be productive for wells. However, within days of the
                  California Coastal Commission beginning an investigation and the San Francisco
                  Independent's questions as to whether or not the new well would fall within the
                  California Coastal Zone and thus to be subject to permitting process beyond the San
                  Francisco Health Department, the Olympic Club said that test well site was too
                  sandy and that it may damage their pumping equipment, and subsequently decided
                  to abandon the site, though the Olympic Club failed to make public their drilling logs
                  which would have substantiated their statement.

                  The Olympic Club, about one month later, applied for a water well permit in San
                  Mateo County, and along with their application, submitted a letter from a private
                  survey firm that attested the new well site selected was not in the Coastal Zone.
                  However, the permitting process for this site has been slow because of pending
                  litigation against a South San Francisco golf club and the San Mateo Health
                  Department for failing to follow California Environmental Quality Act laws.

                  "We really don't want to turn the Olympic Club's grass brown," said Jerry
                  Cadagan of the Committee to Save Lake Merced. "It's fair to say that we are trying to
                  encourage San Francisco and San Mateo counties to build water recycling plants to
                  provide water to irrigators. On top of that, the County of San Mateo has simply
                  ignored their responsibilities under CEQA, and there is this growing risk of salt water
                  intrusion into the water supply. We hope to make them comply with the law, and put
                  pressure on all parties concerned to get some recycled water facilities built so
                  irrigators won't be depleting the aquifer."

                  The legal question to be settled in the case is if there should be CEQA
                  environmental review before permission is granted to the Olympic Club to use the
                  new well on their property. The Olympic Club argues that their project is exempt from
                  CEQA review because the new well is meant to be a replacement to a well that was
                  dismantled earlier this year.

                  The Committee to Save Lake Merced said there are two reasons why they believe
                  they will prevail against the county, and why the Olympic Club will may face further
                  delays in the approval of their well application. Their first legal argument is that the
                  county failed in their responsibility look to the overall effects of the Olympic Club's
                  application - as mandated by CEQA - when it failed to consider the current project in
                  the context of another Olympic Club water well application currently pending in the
                  County's Planning Department for a retroactive Coastal Permit for their only
                  operational well that happens to be in the state coastal zone. According to the legal
                  argument, a coastal permit should have been issued before that well went into
                  operation in 1994. Also, the committee argues the County Health Department should
                  also consider the cumulative effects of other irrigation well projects currently pending
                  in the area, such as the California Golf Club's application for a new well to irrigate
                  greens in South San Francisco, as well as a Colma developer's application to expand
                  a golf course on top a former landfill that will inevitably use more water. Also, both
                  the City of Daly City and the San Francisco Zoo have also recently installed new
                  wells.

                  "We were pleased when the court refused to stop the construction project," said Bob
                  Maddow, an attorney representing the Olympic Club. "The Olympic Club is seeking
                  to install a well to replace half of its water supply that was lost when an existing well
                  failed in the year 2000. We intend to litigate the matter vigorously, and we expect to
                  prevail."

                  San Mateo Chief Deputy Counsel Michael Murphy said that he does believe the
                  Olympic Club is entitled to a CEQA exemption for their current well project. Also, his
                  department is still considering if they will appeal a ruling made last month in the case
                  of the California Golf Club where a judge ruled that the health department's previous
                  policy of approving all water well applications without any regards to environmental
                  impacts was in violation of CEQA. Previously, the health department only checked
                  new wells to make sure the water it was producing was of sufficient good quality, and
                  that there is no risk of contamination entering the well. The health department
                  currently does not perform inspections of water wells once they are approved, nor do
                  they monitor the amount of water each individual well is extracting, according to
                  Dean Peterson, director of Environmental Health in the San Mateo County Health
                  Department.

                  Peterson said he has been instructed by the County Counsel's office to halt issuing
                  any new water well permits until legal questions regarding how the health department
                  is to apply CEQA rules has been resolved. The county health department is,
                  however, issuing permits to municipalities to drill monitoring wells that will measure
                  ground water quality and quantities, but will not be used production.

                  San Francisco is still years away from building a recycled water plant. Daly City has
                  applied for funds to build a recycled water plant to deliver irrigation-quality water to
                  the Olympic Club, the San Francisco Golf Club and the Lake Merced Golf Club, but
                  is still haggling over finances with the San Francisco Public Utilities Commission, the
                  golf clubs and with the state to get funds for the project.

                  The hearing on the Olympic Club's application is scheduled for July 19 in San Mateo
                  Superior Court, with Judge Judith W. Kozloski presiding.