McKinley County Water Board

M I N U T E S

August 11, 2004 – revised 10.12.2004—REVIEW COPY

McKinley County Commission Chambers

 

MEMBERS PRESENT:

Michael Daly White Cliffs MDWUA

Charley Long Thoreau Navajo Chapter

              Loline Hathaway Yah-ta-hey WSD

Rhonda Berg  Rehoboth-Red Mesa Foundation

Sherry Botkin Thoreau WSD                       

 

FACILITATORS/STAFF:

Larry Winn               Board President, McKinley Soil & Water Conservation District

Marc DePauli            DePauli Engineering, McKinley County

Evan Williams         Associate Planner, Northwest New Mexico Council of Governments

 

         GUESTS:

Benjamin A. House        HRI

Mark S. Pelizza       HRI

Nancy Stanley     Jamestown, Whispering Cedars MDWUA

          Matthew Metzler     Jamestown, Whispering Cedars MDWUA          

               Carol Saunders               Greer Subdivision

I.                   OPENING.  The meeting began at 9:15 and was facilitated by Evan Williams and Larry Winn. 

II.                MINUTES OF 7/14/04.  Evan Williams presented minutes from the May 19, June 9 and July 14, 2004 meetings.  There were no additions; Sherry Botkin moved to approve all sets of minutes; Charley Long seconded this motion, and the group voted all in favor to approve the minutes.

III.             NEW BUSINESS

A.             G-22 White Paper Announcement and Handout.   Matt Metzler and Nancy Stanley spoke to the group regarding the issues concerning “G-22” project.  On May 19th, Lance Allgood had presented in McGaffey to local groups; based on this meeting Matt, Nancy, and other concerned citizens formed a group called “Citizens for Water Rights”.

Major Issues:

Under one planning scenario, City of Gallup’s plan would create a pipeline and use water from the Mt. Taylor, which would cause basin water to run out of water in 40 years.  “Citizens for Water Rights” are concerned about the amount of water they are entitled to and for how long that water would be secured to their citizens.  Also, they are concerned about real estate issues and the worth of land that may now be in jeopardy of water rights past 40 years.  Matt also talked about the disclosure of this knowledge and the effect on resale of their land.

“Citizens for Water Rights” were also concerned with the vague information the City of Gallup was able to disclose and about the exact effect of water replacement to the aquifer, as well as about the effect of this proposed project and the indirect/direct effect to other County citizens’ water rights in other areas.

“Citizens for Water Rights” were also perturbed by the lack of knowledge of the process and the lack of cooperation the City of Gallup was provided to them. They described that they have not been able to obtain copies of reports including but not limited to hydrologist reports.

Pending Action: “Citizens for Water Rights” would like to give a full presentation to the Water Board in September. 

 

Water Board Comments:

o Sherry Botkin was concerned for the well-being of Thoreau citizens and any adverse effects to the Bluewater Basin.

o Evan Williams suggested that maybe they could we get someone from City to give a report.  Matt Metzler told the Board that the City staff said that they cannot give an update because it is a legal matter and was referred by Lance Allgood to Jay Stein, lawyer for the City because of the legal issues.

o Evan Williams suggested maybe someone from State or from Zuni could give a non-biased overview of the processes involving adjudication and water rights issues.

o Matt and Nancy stated it would be helpful to understand the process and how they go about reporting their objections without knowing all the facts, how relevant these objections needed to be and how they needed to be spelled out.

 

B.             ICIP – Water Project Prioritizing Process.  Evan Williams presented and passed out a list of County water projects that were either on the County’s current Infrastructure Capital Improvement Plan (ICIP) or were known and necessary projects in the County.  Marc DePauli facilitated a process of prioritizing this list in accordance of urgent need and readiness to construct.  Mr. DePauli also stated again to the Board that proving a declaration of water rights is the first and most essential step for any project.  The immediate goal of this process was to recommend to the Commission the top water/wastewater project that should be chosen for Community Development Block Grant (CDBG) funding for the 2005 cycle.

 

Issues:

(1)          How do we deal with funding of Chapter projects?

(2)          Need to have funding sources (USDA, RUS, NMFA, etc.) come in and have proposals of projects?  We don’t want to write an application if its not going be funded?

(3)          The County Commission needs to appropriate the EGRT funding in a strategic manner, by which, the County is able to leverage this funding source in the most effective way for the projects deeded to be an urgent need and ready for construction.

 

ACTION: Consensus Recommendation to County Commission:  Water is the largest crisis facing rural communities in McKinley County. The McKinley County Water Board recommends that a CDBG application should be written to provide funding to the water/wastewater project that showcases the greatest need and readiness.  Further, it was decided by consensus on this date, August 11, 2004, that the “Williams Acres Wastewater Project” is the number one priority of McKinley County due to its urgent need, matching funds, and immediate need to clear itself from violations with EPA.

 

ACTION: Evan Williams will create and pass out a prioritized list of projects at the next Water Board meeting with a funding strategy for the top priorities.

IV.             OLD BUSINESS. 

A.             Governor Richardson’s Water Innovation Fund.   Evan Williams reported that he had submitted an application to the State, requesting funding for a “McKinley County Regional Rural Water Associations Infrastructure Plan”.  Mike Daly also sent in an application for White Cliffs. 

V.                HRI PRESENTATION on Uranium Mining in McKinley County

DISCLAIMER: The following are rough notes from the presentation by representatives from Hydro Resources, Inc. (HRI).  Water Board Members who attended have additional handouts and more complete information concerning this very interesting presentation.

 

Uranium Resources Projects: NM, TX

-       none using conventional methods (important)

-       most are in Northwestern New Mexico.

-       new projects – Benevides, Longoria, Rosetta, Vasquez, TX (online in a week)

-       McKinley – (NM – HRI) – huge uranium source, mineralized properties (175 million lbs in the ground that can be mapped) – trying to distance from United Nuclear Corporation (UNC), but purchased their resources, properties, also Santa Fe Railroad.

 

3 sites (part of FEIS) – Unit 1, Crownpoint, Churchrock

-          Mustard building southern most point– UNC Section 8

-          Crownpoint – west of CP (98% of controversy), water issue

-          Unit 1 – 8 9 allotment lands

-          Market driven – to start production (price has gone up from $7 to $19), expected to go to $30.

-          Technical expertise needs to be development (2007-Churchrock)

-          All development is timelined so that they are ramped up

Churchrock – testing and demonstration project (important for that reason); 700 feet to ore field. 

Better Areas:

Rocahonda –3 substations

New Mexico is the “Kuwait of Uranium”.  350 lbs of uranium produced to date, in Grants Uranium Region – all conventional mining methods in San Juan Basin – 70s and 80s – this was the infrastructure in place and the technique.

*Per McMlemore and Chenoweth report – known resources in NM are 588,314,700 lbs.

- using low cost in situ leaching method, about 289 million could be extracted

Company has been busy buying up rich uranium sites.

Local Economic Value

*Each pound produced would result in $15 spent in local economy.

*Production facility with a capacity of one million lbs per year – would result in $15 million locally on jobs, taxes, goods, and services

*A production facility with capacity of one million lbs per year would result in 60 vocational jobs.  HRI plans include three of these facilities in McKinley.

The mining operation proposed for Churchrock would have a 14-year life until fully exhausted.

HRI would work with CIT – on training programs, providing employment for students.

Uranium mining hasn’t happened at large in the past because it was not cost-effective.

Electricity Generation, Locally Produced

*20% - Nuclear, half of that we will consume through Russian nuclear warheads.

*Government Enrichment Corps – enriching uranium for weapons grade

*There was a reduction in production

Inventory dependence, dismantled weapons on both sides – reduced price of uranium in 2000-2001.

But now with energy demands rising on a world stage (China and India), and supply curve chart.  Gap only filled with new production.  Economic Opportunity.

Origin of New Mexico Uranium Deposits:

1.      Trend Ore

2.      Redistributed *

* San Juan Basin – Westwater Canyon SS – recharge of groundwater.

HRI business – injection/extraction - adds oxygen (50-300 ft)– make soluble and pump out.  In situ Uranium Leaching Process in book.

Circulate groundwater into system – ore zone – re-circulated into ore zone, some oxygen, and little to some bicarbonate (only if necessary).  Closed loop system – takes groundwater out, oxidizes it, and re-circulates it.  There would be some water loss – about 650 acre-feet per year; but it will be a temporary use (not forever, until 2042), and in reality they will use only 10% of that, or 65 acre-feet, because of recycling.

Neutral at 7.8-pH level (between 7-8) – must restore water

Effect on earth

Conventional mining – tailing, ore paths, miners underground, trucks, open pit mining. (leave behind -unclaimed solution mine)

Non-conventional mining – must reclaim the water, all plastic tubing, site is released for non-restricted use after reclamation, drying design – zero emissions.

 

COMMON Objections:

Water contamination

Regional water contamination

Inability to control leach solution

Mitigation is addressed in detail in the FEIS and is implemented in HRI’s NRC licenses.

VI.             NEXT MEETING:  Continuing on the second Wednesday of the month meeting schedule, September 8, 2004 at Gallup-McKinley County Schools at 10-12 AM.

VII.          ADJOURNMENT:            Mike Daly moved, and Rhonda Berg seconded, to adjourn.  The meeting adjourned at 12:30 PM.

                                                                            Respectfully submitted,

                                                                                        Evan Williams, Associate Planner

                                                                               Northwest New Mexico Council of Governments

 

 

REVISED PER INPUT RECEIVED: ________________________________  DATE: October 12, 2004

                                                Jeff Kiely, Deputy Director

                                                       Northwest New Mexico Council of Governments

                                                                                               

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