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<SEC-DOCUMENT>0001125282-06-005055.txt : 20060815
<SEC-HEADER>0001125282-06-005055.hdr.sgml : 20060815
<ACCEPTANCE-DATETIME>20060815131415
ACCESSION NUMBER:		0001125282-06-005055
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20060814
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060815
DATE AS OF CHANGE:		20060815

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ARTESIAN RESOURCES CORP
		CENTRAL INDEX KEY:			0000863110
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER SUPPLY [4941]
		IRS NUMBER:				510002090
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-18516
		FILM NUMBER:		061034202

	BUSINESS ADDRESS:	
		STREET 1:		664 CHURCHMANS RD
		CITY:			NEWARK
		STATE:			DE
		ZIP:			19702
		BUSINESS PHONE:		3024536900

	MAIL ADDRESS:	
		STREET 1:		664 CHURCHMANS RD
		CITY:			NEWARK
		STATE:			DE
		ZIP:			19702
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>p414543_8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Prepared and filed by St Ives Financial</TITLE>
</HEAD>
<body bgcolor="#ffffff" style='font-family:"Times New Roman"'>
<page>



<div style="border:none;border-bottom:solid .05em;padding:0in 0in 1.0pt 0in">
<div style=" border:none;border-bottom:solid .25em;padding:0in 0in 1.0pt 0in"><p></p></div></div><BR>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>UNITED STATES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Washington, D.C. 20549</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=4>FORM 8-K</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>CURRENT REPORT</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Date
      of Report (Date of earliest event reported): August 14, 2006</font></b></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font size="4">ARTESIAN
  RESOURCES CORPORATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of registrant as specified in its charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<table width="100%" cellspacing=0 cellpadding=0>
    <tr>
        <td width="50">&nbsp;</td>
                    <td align=center valign=top width="280"><b><font size=2>Delaware</font></b><br>
<font size=2>(State or other jurisdiction of</font><br>
<font size=2>incorporation)</font><br></td>
        <td align=center valign=top  width="280"><b><font size=2>000-18516</font></b><br>
            <font size=2>(Commission</font><br>
<font size=2>File Number)</font><br></td>

    <td align=center valign=bottom  width="280"> <font size=2><b>51-0002090</b></font><br>
<font size=2>(IRS Employer Identification No.)</font><br></td>
        <td width="50">&nbsp;</td></tr></table>

<table width="100%" cellspacing=0 cellpadding=0>
    <tr>
        <td width="50">&nbsp;</td>
                    <td align=center valign=top  width="280"><font size=2>&nbsp;</font><br></td>
        <td align=center valign=top  width="280"><br></td>

        <td align=center valign=top   width="280"><br></td>
                    <td width="50">&nbsp;</td></tr></table>

<table width="100%" cellspacing=0 cellpadding=0>
    <tr>
        <td width="50">&nbsp;</td>

    <td align=center valign=top  width="300"><b><font size=2>664
      Churchmans Road, Newark, Delaware</font></b><br>
<font size=2>(Address of principal executive offices)</font><br></td>
        <td align=center width="280">&nbsp;</td>

    <td align=center valign=top width="300"><b><font size=2>19702</font></b><br>
<font size=2>(Zip Code)</font></td>
        <td width="50">&nbsp;</td></tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2><b>Registrant&#146;s
  telephone number, including area code:</b></font><b><font size=2> 302-453-6900</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Not Applicable</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Former name or former address, if changed since last report.)</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><img src="emptybox.gif"><font size=2> &nbsp;Written communications pursuant to Rule 425 under the Securities Act </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><img src="emptybox.gif"><font size=2> &nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><img src="emptybox.gif"><font size=2> &nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><img src="emptybox.gif"><font size=2> &nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act</font></p>

<div style="border:none;border-bottom:solid .25em;padding:0in 0in 1.0pt 0in">
<div style="border:none;border-bottom:solid .05em;padding:0in 0in 1.0pt 0in"><p></p></div></div><BR>
<p align="center"><Font size="2" face="serif"></font></p>

<HR noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>

<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>


      <td width="69" valign=top style='padding:12.0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Item
          1.01</font></b></p>
      </td>


      <td valign=top style='padding:12.0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Entry into a Material Definitive Agreement.</font></b></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Artesian Resources Corporation (the &#147;Company&#148;) entered into another indemnification agreement with KPMG LLP (&#147;KPMG&#148;), the Company&#146;s former independent registered public accounting firm, dated as of August 14, 2006 (the &#147;Indemnification Agreement&#148;), pursuant to which the Company agreed to indemnify and hold KPMG harmless against and from any and all legal costs and expenses incurred by KPMG in its successful defense of any legal action or proceeding that may arise as a result of its consent to include or incorporate by reference its audit report on the Company&#146;s consolidated financial statements as of December 31, 2004 and for each of the years in the two-year period ended December 31, 2004 in the Company&#146;s Registration Statement on Form S-3 (Registration Statement No. 333-136184) filed with the Securities and Exchange Commission on July 31, 2006 as amended August
15, 2006. The Indemnification Agreement also provides that KPMG shall not be indemnified, and shall refund to the Company, any amounts paid to KPMG pursuant to the Indemnification Agreement in the event there is court adjudication that KPMG is guilty of professional malpractice, or in the event that KPMG becomes liable for any part of the plaintiff&#146;s damages by virtue of settlement. In addition, the Indemnification Agreement provides that, in the event that KPMG is requested pursuant to subpoena or other legal process to produce its documents relating to the Company in judicial or administrative proceedings to which KPMG is not a party, the Company is required to reimburse KPMG at standard billing rates for its professional time and expenses, including reasonable attorney&#146;s fees, incurred in responding to such requests.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The foregoing is a summary description of certain terms of the Indemnification Agreement and is incomplete. It is qualified in its entirety by the Indemnification Agreement, which is attached hereto as Exhibit 99.1 and is incorporated herein by reference. </font></p>



<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>


      <td width="69" valign=top style='padding:12.0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Item
          9.01</font></b></p>
      </td>


      <td valign=top style='padding:12.0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Financial Statements and Exhibits.</font></b></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The following exhibit is furnished with this report:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;'><b><font size=1>Exhibit</font></b><br>
          <b><font size=1>Number</font></b></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=1>Exhibit
          Title</font></b><u></u></p>
      </td>
    </tr>
    <tr>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <HR noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <HR noshade width="100%" color="Gray" size="1">
      </td>
    </tr>
    <tr>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;' width="12%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;'><font size=2>99.1</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Indemnification
          Agreement, dated as of August 14, 2006, between Artesian Resources Corporation
          and KPMG LLP</font></p>
      </td>
    </tr>
  </table>
</div>


<p align="center"><Font size="2" face="serif"></font></p>

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<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>SIGNATURES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font SIZE=2>ARTESIAN RESOURCES CORPORATION</font></p> </td> </tr>
    <tr>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="55%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><br>
           <font size=2>Date:  August 15, 2006</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="3%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="3%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>By:&nbsp;</font></p>
      </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'><p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><br>
<font size=2>/s/ David B. Spacht</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<HR noshade width="100%" color="Gray" size="1"> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>David B. Spacht</font><br> <font size=2>Chief Financial Officer</font></p> </td> </tr></table>
</div>


<p align="center"><Font size="2" face="serif"></font></p>

<HR noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>INDEX TO EXHIBIT</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;'><b><font size=1>Exhibit</font></b><br>
          <b><font size=1>Number</font></b></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=1>Exhibit
          Title</font></b><u></u></p>
      </td>
    </tr>
    <tr>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <HR noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <HR noshade width="100%" color="Gray" size="1">
      </td>
    </tr>
    <tr>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;' width="12%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;'><font size=2>99.1</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Indemnification
          Agreement, dated as of August 14, 2006, between Artesian Resources Corporation
          and KPMG LLP</font></p>
      </td>
    </tr>
  </table>
</div>


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<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>p414543_ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
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<TITLE>Prepared and filed by St Ives Financial</TITLE>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:right;'><font SIZE=2>EXHIBIT 99.1</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>[KPMG Letterhead]</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>August 11, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Artesian Resources Corporation</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>664 Churchmans Road</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Newark, DE 19702</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Attention: Dian C. Taylor, Chair of the Board, CEO and President </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Artesian Resources Corporation (the &#147;Company&#148;) has requested that we consent to the incorporation by reference of our report on the Company&#146;s consolidated financial statements as of December 31, 2004 and for each of the years in the two-year period ended December 31, 2004 in the registration statement on Form S-3  filed on July 31, 2006 as amended Augsut 15, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>By agreeing to the terms of this letter, you agree to indemnify KPMG LLP (&#147;KPMG&#148;) from certain risks inherent in incorporating by reference our audit report on the Company&#146;s consolidated financial statements as of December 31, 2004 and for each of the years in the two-year period ended December 31, 2004 in the registration statement on Form S-3 filed on July 31, 2006 as amended Augsut 15, 2006.</font><b><font size=2>.  </font></b><font size=2>Specifically, you agree to indemnify and hold KPMG harmless against and from any and all legal costs and expenses (including reasonable fees and expenses of attorneys, experts and consultants) which we may incur in connection with our successful defense of any legal action or proceeding that may arise as a result of our consent to the incorporation by reference of our report on the Company&#146;s consolidated financial statements in the registration
statement on Form S-3 filed on July 31, 2006 as amended Augsut 15, 2006., whether brought under the federal securities laws or other statutes, state statute, or common law, or otherwise. In the event KPMG incurs legal costs or expenses indemnified hereunder, you agree to reimburse KPMG for those costs as incurred on a monthly basis. KPMG shall not be indemnified, and shall refund to you, any amounts paid to it pursuant to this indemnification in the event there is court adjudication that we are guilty of professional malpractice, or in the event that KPMG becomes liable for any part of the plaintiff&#146;s damages by virtue of settlement. In the event KPMG is requested pursuant to subpoena or other legal process to produce its documents relating to the Company in judicial or administrative proceedings to which KPMG is not a party, the Company shall reimburse KPMG at standard billing rates for its professional time and expenses, including reasonable attorney&#146;s fees, incurred in
responding to such requests.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Please indicate your acceptance of these terms by signing and returning a copy of this letter to me.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Very truly yours,</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font SIZE=2>KPMG LLP</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<font size=2>/s/ Carl E. Hertrich</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><i><font size=2>Partner</font></i></p> </td>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font SIZE=2>ACCEPTED:</font></p>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Artesian Resources Corporation</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<font size=2>/s/ Dian C. Taylor</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><i><font size=2>Chair of the Board, CEO and President</font></i></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><br> <font size=2>August 14, 2006</font><i></i></p> </td>

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