July 16, 1990

Mr. Paul Peterson


175 Federal Street

Boston, MA 02110


Dear Paul:

                Re: Frye Island Incorporated


As I told you on the phone a few moments ago, we have received in the mail our proposed order which was submitted to the Justice of the Superior Court some considerable time ago with our Application. The Order has been signed as proposed and is dated May 7, 1990. The Justice did not bother to have a hearing or notify anyone to that effect. And so, for the moment the case seems to be closed - and successfully.


The letter from the Attorney General dated June 14 which I forwarded you now appears as a bit of a mystery. We can only assume that the Attorney General was unaware of the Court's Order when he wrote that letter, as we were. Enclosed please find our simple response to him. I know not what the next chapter will be. For now, we appear to be where we want to be.




John J. Flaherty



cc: Mr. Vic Richards



                                                                                                                July 16, 1990

Bruce N. Shibles, Esq.

Assistant Attorney General

Department of Attorney General

96 Harlow Street, Suite A

Bangor, ME 04401


Dear Bruce:


Re:          Portland Water District v. Leisure Living communities, Inc., et al., Docket No. 1201


This will acknowledge receipt of yours of June 14, 1990. On the chance that you have not previously received it, I enclose a copy of Judge Brody's Order adopting the "Consent Agreement" dated May 7, 1990.


Sincerely yours,




Edward R Benjamin, Jr.





STATE OF MAINE                                                                                                             SUPERIOR COURT

Kennebec, ss.                                                                                                                       Civil Action

                                                                                                                                                Docket No. 1201

STATE ex rel. ATTORNEY GENERAL                             )

and PORTLAND WATER DISTRICT,                             )

                                                Plaintiffs                                                )




v.                                                                                                   )                               ORDER




INC., ET AL.,                                                                        )

                                                Defendants                                           )


                Upon Defendants' Application, it is Ordered that the Consent Agreement attached as Exhibit A to the Application is hereby adopted. Any party to this Consent Agreement may apply to this Court for enforcement of its terms pursuant to this Order.



Dated: 7 May 1990                                                                                               Justice, Superior Court