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Is a water war brewing between West Wendover and Newmont Gold?
Comments from the company’s local spokeswoman Pamela Smith could be an indication that all is not well between the city council and the gold mining company.
Speaking, uncharacteristically in the public comment portion of Tuesday’s city council meeting Smith very politely told the council that the latest proposal from the working water committee was “… a great surprise to us and that we really don’t see coming to an agreement on at this time..”
Through its acquisition of the Big Springs Ranch property, Newmont owns two thirds of the water rights of Johnson Springs with the remaining one third owned by the city of West Wendover.
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.
Click Link For Newmont Notes
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.
Newmont executives have pointed to the company’s 50 year history in western Elko and Eureka County developing the Carlin trend and its extremely good if not sterling relationships with the cities of Carlin and Elko and the ranching industry as proof not only of the company’s good intentions but upon their delivery.
But past performance and assurances from Newmont that Wendover need not fear have apparently not been enough for the water working group. Smith’s comments Tuesday apparently did result in some action.
Wednesday an emergency meeting of the working water group was convened and according to some attendees no action was taken and the group decided to wait for Newmont to make the next move.
While Newmont does own two thirds 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.
“I don’t think it would ever come down to that,” said West Wendover Mayor Donnie Anderson. “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.”
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. Smith’s comments may have been a signal that while her company was interested in maintaining good relations a line was being drawn.
While there may be friction in Wendover, the city of Wells, located just as far west from the proposed mine as Wendover is east, is rolling out the carpet to Newmont.
In a glowing story in the Nevada Business Weekly, reporter Ron Sabo wrote; “Residents of the small community 50 miles east of Elko are eyeing the opening of Newmont Mining Corporation’s Long Canyon mine in the nearby Pequop Mountains with eager anticipation. Among the mine’s projected benefits to Well’s 1,400 residents: increased employment opportunities and an influx of new businesses providing much-needed goods and services…
Investors have begun buying land in anticipation of growth in Wells. Paul Bottari, co-owner owner of Bottari Realty with his wife, Lori, says that parcels of vacant land within city limits have been selling quickly over the past six months as investors snap up land that’s sure see a price spike once construction of the mine begins. Lots within city limits range in size from 8,600 to 12,000 square feet and cost between $15,000 to $20,000 depending on location and availability of utility hookups.
“These lots are relatively cheap, and that’s going to be the first thing people are looking for,” he says.
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Wells can accommodate about 1,000 additional residents with its current sewer and water capacity, Bottari says. Raw land in the surrounding valleys has yet to see a real spike in price, Bottari notes. Land in the greater Wells vicinity can be found for about $12,000 an acre, and some parcels are even selling for as little as $7,200 an acre.
An influx of people and businesses wouldn’t detract from the quality of life in Wells, residents say. In fact, they say, growth would benefit everyone because an increase in population could convince some national retailers that expanding to Wells would be economically viable. Currently, residents must do their retail shopping in Elko, Salt Lake City, Twin Falls, Idaho or Reno.
“Most people know we need some growth here before we get some more commercial services,” Paul Bottari says. “We don’t have a lot of things this community would like. Until you get more people you are not going to have it. We are lucky to have Burger King, McDonald’s, Subway and Quiznos. We really don’t fit their numbers criteria — the only reason we do is because of the interstate.”
Many of those new workers are expected to call Wells home and will either rent rooms by the month in one of the town’s small motel properties or park a trailer at one of its RV parks. That’s just fine with Stephen Wright, owner of the Angel Lake RV Park.
Wright, 81, built the park seven years ago. He expects occupancy to be at full capacity — 48 spaces — just like it was for nine months when workmen for the Ruby Pipeline came through northeastern Nevada from October of 2010 through June 2011.”
While a boon to Wells the Ruby Pipeline was mostly a bust to Wendover.
“They made a lot of noise about coming here,” said one wendover trailer park owner. “But in the end we had only a hand full, Wells for whatever reason got most of the business. Maybe their city was just friendlier.”
