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Staff Activity Report August 16, 2025 GWC Meeting Page 7 of 7 • Staff continues to work with the Upper Black Squirrel Creek GWMD ("UBSC District") and Falcon Marketplace consultants to address the groundwater-related issues at Falcon Marketplace commercial site. Staff and the UBSC District will be performing a field inspection in August to discuss next steps. The contractors working on the mitigation efforts have indicated they plan to install a dewatering system. Staff has explained that well permits and a Commission-approved replacement plan will likely be required for any dewatering system. • Wells 1-8 (as defined in case no. 15GW15) and Well 18(as defined in the Negotiated Settlement and Order in Case No. 91 GW01 ) are large capacity wells owned and operated by the Cherokee Metropolitan District ("Cherokee"). In 2024, these large capacity wells pumped over the acre-foot allocations allowed under their respective authorizations. Cherokee self-reported the violations to the UBSC District in April 2025. In June, Commission Staff sent Cherokee a notice of violation letter addressing the 2024 overages and requiring monthly reporting of the wells so that we might track the wells' use and ensure no overages occur in 2025. Cherokee has been directed to cease pumping of the subject wells upon reaching the authorized allocations for 2025. If the UBSC District or Commission Staff identify overages during the calendar year, we will pursue additional enforcement action, which may include cease and desist orders. • Clint and Jennifer Dillie operated a large-capacity well (permitted for irrigation use only) in violation of its permit, selling water to a company called "National Underground". The owners quickly responded to our correspondence, acknowledging the violations and agreeing to cease the unpermitted uses. Staff also reached out to National Underground to advise them of the matter and discuss the importance of verifying legal water supplies for their use.