After more than a year of haggling the cities of Wendover, Utah and West Wendover, Nevada signed off on a water deal with the Newmont Mining Company this week.
The letter of understanding (reprinted below) removes perhaps the most significant obstacle in the development of the Long Canyon Mine. Newmont’s newest venture is located in the Pequop Mountains 30 miles west of Wendover and 30 miles east of Wells.
The short letter caps an often times acrimonious year Long negotiations that had at one point this summer had Newmont publicly reject in total Wendover’s first proposal by labeling it a nonstarter.
While the earlier proposal was estimated to cost between $30 million to $60 million no cost estimate was given for the one agreed to this week.
“Newmont has signed it and we are hopeful that all three signatures will be on it tomorrow. As it is a framework at this point the next step will be the detailed document that will define the specifics and projected costs.” said Newmont executive Mary Korpi Wednesday.
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There are however some very specific costs outline in the letter of understanding the first being a one time payment of $2.178 million from Newmont to West Wendover earmarked to pay down the loan the city took out from the United States Department of Agriculture to build the Johnson Springs Pipeline.
According to City Manager Chris Melville the Newmont payment will be about half of what is currently owed on the project.
In addition to that payment Newmont also agreed to pay the two Wendover $310,000 a year for ten years for the water right of the old Victoria mine Wendover received from anaconda more than a dozen years ago.
That water right, Melville explained, was limited only to mining and/or milling uses.
The mining company also agreed to develop two new water wells for the city usage.
If a final agreement develops from the letter there will be very little if any opposition to the project.
The project is enormously popular in Wendover and it is likely that any official publicly opposing it would be committing political suicide.
first proposal rejected: newdemands
Privately some concede that the water working group may have over reached in its first proposal, 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. Smith’s comments may have been a signal that while her company was interested in maintaining good relations a line was being drawn.
While this agreement may go a long way to returning to good relations between Newmont and the Wendovers, it may create new troubles for all three parties from the Victoria’s mine current owner Glenn Taylor.
“I didn’t think I would have found out about from a newspaper,” he said Wednesday. “It does directly affect my property and my investment. Wendover may have the water right but I don’t think they have any right to get on my land. Looks like I and my lawyers have some reading to do this week.”
