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&lt;p style="margin-top: 18px; margin-bottom: 0px;"&gt;&lt;font style="font-family: Times New Roman;" class="_mt" size="2"&gt;&lt;b&gt;Note 10: Environmental Matters &lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="margin-top: 6px; text-indent: 4%; margin-bottom: 0px;"&gt;&lt;font style="font-family: Times New Roman;" class="_mt" size="2"&gt;The Company's water and wastewater operations are subject to federal, state, local and foreign requirements relating to environmental protection and as such the Company periodically becomes subject to environmental claims in the normal course of business. Remediation costs that relate to an existing condition caused by past operations are accrued when it is probable that these costs will be incurred and can be reasonably estimated. Remediation costs accrued amounted to $6,730 and $7,947 at September&amp;nbsp;30, 2010 and December&amp;nbsp;31, 2009, respectively. Included in the balance of the accrual was $6,600 at September&amp;nbsp;30, 2010 and $7,700 at December&amp;nbsp;31, 2009 related to a conservation agreement entered into by a subsidiary of the Company with the National Oceanic and Atmospheric Administration ("NOAA") requiring the Company to, among other provisions, implement certain measures to protect the steelhead trout and its habitat in the Carmel River watershed in the state of California. The Company has agreed to pay $1,100 annually from 2010 through 2016; the 2010 payment was made in June. The payments will be used to improve habitat conditions for the steelhead trout in the Carmel River Watershed and will end upon a regional desalinization plant becoming operational and the subsidiary's diversions from the Carmel River coming within permitted limits. The Company pursues recovery of incurred costs through all appropriate means, including regulatory recovery through customer rates. The Company's Regulatory assets at September&amp;nbsp;30, 2010 include $11,026 related to the NOAA agreement, including an additional $3,500 granted for recovery during the three months ended September&amp;nbsp;30, 2010. &lt;/font&gt;&lt;/p&gt; &lt;/div&gt;</NonNumbericText>
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The Company's water and wastewater operations are subject to federal, state, local and foreign requirements relating to</NonNumericTextHeader>
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 -Publisher AICPA
 -Name Statement of Position (SOP)
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
 -Publisher SEC
 -Name Staff Accounting Bulletin (SAB)
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