Click Link Below For Full Water Group Demand Letter
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$30 million to $60 million is the estimated price tag the Wendover Water Working Group demanded of Newmont for the sister cities’ support of the Long Canyon Mine and to which Newmont executives dismissed as a nonstarter.
A verified copy of the ‘confidential’ proposal was obtained by the High Desert Advocate last week and is published in this edition.
Apart from asking for an annual half a million dollars in cash from the mining company for the life of the mine, the Group also asked the company to fund the search and development of new water sources, guarantee the loan of the Johnson Spring Pipeline and various other demands.
According to Newmont Director External Relations Mary Korpi the company’s engineers estimated price tag for the entire laundry list was pegged it at around $40 million. Newmont’s figure is within shouting distance of the Working Group’s own estimated at just under $30 million according to sources.
But even the lower figure is considered a non starter by the mining company.
“I don’t know why but a lot of cities don’t get the fact that private enterprise has to turn a profit,” said an real estate developer the Advocate asked to examine the Working Group’s Proposal. “These demands make the project unprofitable that is why the company dismissed them. From what I understand they were so far out in left field that there is absolutely no common ground to negotiate from. The Water Working Group probably lost all credibility with Newmont as a serious partner.”
“Newmont was surprised on Friday, June 22, when we received a detailed proposal regarding a variety of financial and non-financial considerations under which the Cities would be the beneficiary.” Korpi said echoing comments made two weeks ago by Newmont’s local liaison Pamela Smith that the demands were simply not realistic.
Through its acquisition of the Big Springs Ranch property, Newmont owns one third of the water rights of Johnson Springs with the remaining one third owned by the city of West Wendover and another individual.
The spring and the wells supply a major part of West Wendover’s and Wendover Utah’s water supply and the development of the Johnson Springs system and pipeline proved crucial to the Wendover boom in the 1980’s.
With current mining processes water intensive an underlying fear among some Wendover officials and casino industry executives is that a major source of Wendover water could dry up.
As early as two years ago West Wendover city councilwoman Emily Carter voiced her concerns about the ‘water situation’ and how West Wendover needed to protect itself.
While Newmont does own a third of the Johnson water rights, the mine is in a very precarious phase of the permitting process with the federal government with the project’s Environmental Impact Statement only now being prepared. While legally the company could use its water rights, it needs the mine approved. If one or both Wendovers formally oppose the mine a permit would certainly be delayed or even killed depending on how much opposition the cities can muster.
Next Monday an emergency meeting of the West Wendover city council will be held over the city’s endorsement or rejection of the project as part of that process.
“I don’t think it would ever come down to that,” said West Wendover Mayor Donnie Anderson two weeks ago. “Everyone I have talked is totally for the mine. It means growth and good paying jobs. And anyone who has been to Elko or Carlin knows that Newmont is a great company with good relations with the community. I am sure that we can come to an agreement that is good for Newmont and for Wendover.”
Anderson’s sentiments were repeated by Wendover, Utah Mayor Mike Crawford. While a member of the working group Crawford distanced himself from the confidential proposal when interviewed Wednesday.
“My number one concern is that the water system is not threatened,” Crawford said. “But we in Wendover, Utah want to see this project go through. West Wendover can write whatever kind of comment they want but they won’t be speaking for Wendover, Utah or for the water system which we are a 50 percent partner.”
The project is enormously popular in Wendover and it is likely that any official publicly opposing it would be committing political suicide especially this election year.
Privately some concede that the water working group may have over reached, lulled into a false sense of security by previous Newmont largesse to Wendover. Since coming to the Nevada/Utah border town last year Newmont has become one of the largest if not the largest contributor to local government, schools and charities.
“As the proposed Long Canyon mine and facilities would be adjacent to Big Spring and the mining operations could have the potential to impact the spring, Newmont has been working collaboratively with the cities of West Wendover and Wendover to identify and construct water development measures.” Korpi added. ”Our efforts are to ensure that the Cities are kept whole with regards to water to ensure long-term sustainability for all parties involved. Newmont has proposed to provide the Cities with an alternative source of water and supporting infrastructure to be used during the mining activities.”
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Further damaging the relationship between the potential employer of hundreds of local workers is what Korpi characterized as undisclosed negotiations between West Wendover and the BLM concerning the project.
“We also learned recently that an alternative plan requiring modification to various Long Canyon project components and major facilities was discussed between the Cities and the BLM. During the preparation of the Plan of Operations Newmont had relocated facilities based on requests from the Cities and had been told that these changes were acceptable.” She added. ”Based on the need to clarify these recent requests, Newmont submitted a letter to the Mayors and City Managers of the Cities requesting ongoing dialogue so that the needs of both the Cities and Newmont can be resolved.”
Wow I wonder who gave the advocate a confidential copy of this agreement. Let’s see, not Councilwoman Carter, Not Councilman Briggs, Not Councilman Gorum, Not Councilman Miera, who else does this leave?? I wonder!!!! Mayor Anderson ?????? Councilman Guiterrez??????
Remember that folks when you vote in November. I wouldn’t be surprised if it was the mayor(not saying it was but strongly suggesting it). If it was him then shame on him, but this isn’t the first time he has behaved unethically!!! If it was him then he violated attorney-client privilege. Bravo!!!!!
Who says that someone in the West Wendover camp had to give the letter to the advocate? It could just have easily come from someone in Wendover Utah or even someone from Newmont. They also would have had access to this letter. And another question, why is this even “confidential”? Shouldn’t the community be aware of what their elected officials are doing? I feel that we should know that West Wendover city (or at least some of them) are looking to keep Newmont from opening. Would this be because the Peppermill is concerned about losing employees and their financially hold over the city? Gotta wonder.