Eureka Commissioners seek ruling on export fee

Wednesday, Oct. 8, 1997 | 2:24 a.m.

Barrick signed a document in November agreeing to pay Eureka County at least $100,000 a year in water export fees and an additional $4 per acre-foot if the amount of water exported exceeds 250,000 acre-feet over 10 years.

The fee was levied because Barrick planned to discharge up to 70,000 gallons of water per minute into the Humboldt River.

Commissioners disregarded the advice of Deputy District Attorney Zane Miles who said the state attorney general's opinion has no legal effect, and is "no different from my advice to you guys. You're free to ignore it."

"Attorney general's opinions are advisory. They do not carry the weight of judicial authority," Eureka County water rights attorney Karen Peterson agreed. But she added, "It is not something to be ignored."

Commission Chairman Pete Goicoechea urged a court ruling on the matter to stave off the possibility that a mining company could file charges of oppression under color of office against the county.

He said, however, that the commission will continue negotiating with Newmont Mining Co. regarding a similar water export fee.

The attorney general's ruling states the Legislature's intent in enacting a statute allowing a water export fee was to compensate rural counties losing water to growing urban areas.

But in the case of mine dewatering, the economic benefits of the use of the water accrue to Eureka County, the attorney general's office said. Therefore, no compensation is justified.

Goicoechea said if plans by the Nevada Division of Wildlife to use water pumped from mining operations to irrigate the Argenta Marsh project in Lander County take place, that will put the county water export agreement on steadier ground, since the water being exported would be put to a beneficial use downstream.

Miles disputed the attorney general's ruling that a county has only those powers granted to it by the Legislature and said Eureka County Commissioners have all the powers to regulate water use of a normal general improvement district.

Goicoechea said the $100,000 payment Barrick made this year is being used to fund the Eureka County Natural Resources Department and the Humboldt River Basin Water Authority. But Peterson recommended the county hold off on spending any of the money until the issue is resolved.