The water company and government agencies appear close to solving a problem that has stumped officials—and stranded fish—for more than a decade.

Cal Am executives, along with state and federal agencies, confirmed this week that they are currently negotiating a way to remove the San Clemente Dam on the Carmel River.

Cal Am Manager Steve Leonard says there have been “significant discussions” between the water company and the California Coastal Conservancy, a state agency that partners with other groups to preserve, protect and restore coastal areas.

“There’s a ways to go yet,” Leonard says, adding that Cal Am and the Coastal Conservancy have gotten to the point of pinning down the project’s costs—which could exceed $70 million. Leonard says there are also concerns about the liability once the dam has been removed—“if it does get removed.”

“We’re still in the positive-but-exploratory phase,” Leonard says.

Late last month, the Coastal Conservancy approved a plan to spend up to $500,000 for studies on removing the obsolete dam, which is so glutted with sediment that it no longer stores water.

The dam, located about 20 miles upstream from the mouth of the Carmel River, is a safety hazard in the event of an earthquake, and a huge obstacle to the endangered steelhead trout.

The Coastal Conservancy staff met in closed session last month to talk about acquiring the property around the dam. Cal Am, a private company, owns the dam and surrounding property. But public ownership of the structure would likely ease project financing by making state and federal money available.

Leonard says Cal Am would be amenable to an arrangement that transfers ownership of the dam to a public entity. “I think we’ve always looked at the land as part of the solution to make the deal work,” he says.

Trish Chapman, the project manager for the Coastal Conservancy, says she can’t comment on the details of property acquisition talks. “The fact that we’re putting in $500,000 of studies is indicative of the fact that we’re pretty optimistic,” Chapman says. “But it’s a complicated project and there are definitely some complicated issues yet to be worked out—with project design, and how to actually implement such a large project as a cooperative effort.”