Friday, May 26, 2006 | 7:15 a.m.
CARSON CITY - White Pine County has rejected a $12 million offer to drop its opposition to a plan to pump millions of gallons of water from eastern Nevada into the fast-growing Las Vegas area, but will continue talks on a potential settlement.
John Chachas, vice chairman of the White Pine County Commission, said Thursday the first offer by the Southern Nevada Water Authority "doesn't hold water," adding that the authority "should stay out of White Pine County."
At a three-hour public hearing in Ely on Wednesday, the majority of those who spoke favored maintaining the protests that the county filed against the applications of the Water Authority for a pipeline to Clark County.
White Pine County Commissioner Gary Perea said there was "overwhelming sentiment" from the public not to drop the protests but to continue the negotiations. More talks between the county and Southern Nevada officials are set for today.
The Water Authority has proposed setting aside the first 5,000 acre-feet of water pumped each year for use in future development in Spring Valley, east of Ely.
The offer, Water Authority official Kay Brothers said, includes an environmental protection program and plans to monitor wells to assess whether the water table is decreasing.
If negative effects appear, an additional 5 percent of the water could be used to offset any environmental damage, she said.
Overall, the Water Authority wants to draw more than 91,000 acre-feet of water (326,000 gallons) a year from Spring Valley.
Brothers stressed that this was the "first step" in the negotiations with White Pine County on Spring Valley. The state engineer's office will begin hearings on the applications Sept. 11.
Chachas said the Water Authority wants White Pine to drop its protests before any settlement is signed. That is unacceptable, he said, and could stymie any talks.
"That doesn't break my heart," he added.
County Commissioner Ken Heinbaugh said the Water Authority's proposal "is not a good offer" and would end up costing White Pine money in the long run.
Jo Anne Garrett of Baker also is among those who oppose dropping the protests but favor continuing the talks.
"We should hold the line," Garrett said, calling the Water Authority's offer "paltry."
Perea said the Southern Nevada Water Project has offered $12 million, with $1 million to be received upon signing the 75-year agreement. Another $5 million would be placed in a trust fund for mitigation for such things as drilling deeper wells in Spring Valley if the water table drops because of the pumping, and $300,000 would go to White Pine County annually for 20 years, he said.
Over the life of the contract, he estimated that White Pine County would end up losing $20 million because of expenses it would incur under the proposed settlement.
"I have a hard time getting past" the proposed 75-year settlement, Perea said. Seventy-five years ago, White Pine County had more residents than Clark County, he noted. "Once they take the water it puts a big squash on White Pine for development," he said.
But Brothers explained that this was a $2 billion project that needs a long-term agreement.
Heinbaugh warned that the $5 million contingency fund could be consumed by one ranch in Spring Valley being forced to close because of a lack of water.
White Pine County, Heinbaugh added, also would have to hire a hydrologist at an estimated cost of $100,000 a year.
"We would end up in the hole and still have to continue monitoring," he said.
Chachas said the Water Authority should concentrate on getting water from Lincoln and Nye counties, which might be willing to negotiate. Test pumping could be conducted in those two counties to see "what commitment the authority has to the environment," he said.
"The proving grounds could be Lincoln and Nye counties," Chachas said.
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