Pensus Lake Berryessa Properties LLC

Public Statement

For Immediate Release: January 8, 2013

Pensus Appeals Reclamation Decision Asking for Contract Reinstatement

Lake Berryessa, California: On January 7, 2013, Pensus Lake Berryessa Properties, LLC (Pensus) filed an administrative appeal and a request for a stay of the December 6, 2012, adverse decision of a U.S. Bureau of Reclamation (Reclamation) Contracting Officer that could terminate the Concession Contract between Pensus and Reclamation for the provision of recreational services at Lake Berryessa in Napa County, California. Pensus asked the U.S. Department of Interior's Office of Hearings and Appeals to vacate the decision letter and remand it to Reclamation with an order directing the reinstatement of the Concession Contract and further directing Reclamation's good faith compliance with the terms of that Contract and governing authorities. Pensus is entitled to a stay to preserve the status quo during hearing of its appeal because, among other things, Reclamation deliberately breached the Concession Contract; acted arbitrarily, capriciously and contrary to law in its administration of the Concession Contract; failed to address, in any substantive way, Pensus's good-faith efforts to cure all purported violations of the Concessions Contract; and, failed to adhere to a good faith standard in administering the Concession Contract.

Pensus continues to be committed to providing outstanding recreation and visitor services at Lake Berryessa.

Pensus will have no other public statement during the pendency of the appeal.