STATEMENT BY JUDY SANCHEZ,
DIRECTOR OF CORPORATE COMMUNICATIONS,
UNITED STATES SUGAR CORP.
REGARDING THE INDIAN RIVER LAGOON PROJECT

Source: U.S. Sugar Corp.
Printed: Tuesday, May 29, 2003

CLEWISTON — May 29, 2003 — As a stakeholder in the Everglades region, we strongly support the Comprehensive Everglades Restoration Program. We support the restoration of the Indian River Lagoon as well. We certainly have no interest in delaying or in any way interfering with the success of this project.

The United States Army Corps of Engineers is responsible for the planning and approval process of each individual CERP project. After the local Corps office proposes a project, the Jacksonville District in this case, it is sent to the Corpsı Washington headquarters for review and approval.

Part of the approval process involves the Chiefıs office sending out requests for comment on the proposed project report to all stakeholders. In that capacity, a consultant in Washington for many agriculture interests, who used to work for the Corps and is considered an expert, reviewed the Indian River Lagoon project proposal. Based on his experience and expertise, he noted several significant problems in the proposal.

These problems were technical in nature, not involving whether it was or was not a good project to do, but rather problems in the process of preparing the project and completing the requirements in such a way that it would get congressional approval and that it would accomplish its original project goals. This is the same type of review the Corpsı internal engineering team performs.

As the comments made by our consultant were submitted nearly a year ago, it is presumptuous to think that we are responsible for a delay in the project. It is our understanding that the Corpsı internal team and Chiefıs review of projects of this magnitude, costing nearly $1 billion, often take considerable time, especially if there are ³problems² to be resolved. According to recent newspaper articles, the Corps and the South Florida Water Management District are considering breaking the proposal into several smaller components to resolve these issues.

In fact, according to the latest ³Monthly Progress Report,² the Indian River Lagoon Project has been delayed (coded yellow) until the H/Q (Headquarters) comments are addressed and resolved. This report can be found on the joint Corps/South Florida Water Management District Everglades website: www.evergladesplan.org.

The Indian River Lagoon Project is the first CERP project that is being developed. As such, it will set precedent for how all subsequent projects will be regarded and accomplished. That makes this particular project very important to everyone who is or will be involved in CERP projects in the future. The first project must be completely successful in order to validate the credibility of the entire restoration plan.

The Indian River Lagoon Project review is being handled and controlled by the U.S. Army Corps of Engineers. What they will or will not do in terms of the timing or budgeting of the project is up to them, not the sugar industry. Be assured, we are committed to this subsequent CERP projects and will work in partnership to ensure they succeed.

Judy Sanchez
Director of Corporate Communications
U.S. Sugar Corporation
863-902-2211 (telephone)
863-983-8181 (fax)