Humboldt delays water deal

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April 10, 2012 - 12:00 AM

HUMBOLDT — Sale of at least 32 million gallons of raw water a year for oil field use was put off by Humboldt Council members Monday night until they and City Attorney Fred Works have a firmer understanding of what the deal would mean.

Advanced Aquatics of Kansas proposed to purchase the raw water at $1 per 1,000 gallons for the next 20 years. Advanced Aquatics is a water broker that deals with oil companies. The water is used for hydraulically fracturing rocks, or fracking. 

Works said the company’s original proposal of 20 years was too long of a commitment, that the city should consider an agreement of three to five years with opportunities to renegotiate what was paid for the water. Also, he said an agreement should contain provisions for Advanced Aquatics to have a financial role in maintaining pumping equipment and roads, which could take a beating from heavy water trucks using them frequently enough to carry away millions of gallons of water.

Humboldt has rights to take up to 164.247 million gallons from the Neosho River each year, of which the city usually processes a little over 102 million gallons. Advanced Aquatics’ proposal is to have dibs on all in excess of what Humboldt processes — about 62 million gallons — with the 32 million gallons guaranteed.

Works noted the company had approached several other cities and that “we need to get more definitive before we go any further.” He mentioned drought, other uses for local water and better deals that might crop up as reasons to explore a contract carefully before signing on.

Works pointed out Humboldt “may want to include a payment for the right (of Advanced Aquatics) to purchase water,” which would infringe on Humboldt’s rights to the water.

Works and City Administrator Larry Tucker will talk further with the company before proposing an agreement for council members to consider.

COUNCIL MEMBERS agreed to pay Shafer, Kline & Warren, Iola engineering firm, $6,650 from the city’s Community Development Fund to plan and engineer improvements to camping facilities in Camp Hunter Park, at the southwest corner of town.

Joe Works of B&W Trailer Hitches will pay for the improvements, expected to cost about $50,000. They will involve construction of eight state-of-the-art camping sites with full utilities. The engineering work will center on installation of sewer facilities, and is required by the Kansas Department of Health and Environment.

Existing camping sites will be upgraded with utilities and concrete parking pads and adjacent patios.

IN OTHER business, council members:

— Approved having the swimming pool open 1 to 8 p.m. daily May 19 to Aug. 22, and then on weekends through the Labor Day holiday. Charge for all pool parties will be $100. Because of concerns about loss or damage, use of electronic devices, such as cell phones, will be discouraged in the pool area.

— Tabled a decision on striping Bridge Street and the bridge over the Neosho River. A bid for the work was $2,123. Works was asked to research legal necessity of striping the street and bridge.

— Purchased a one-ton flatbed diesel-powered truck from Twin Motors, Iola, for $31,600, the lowest of three bids. Money will come from the Equipment Reserve Fund, which has a balance of $88,724.

— Were told signs have been placed along U.S. 169 to tell passersby that Humboldt has camping facilities. The Kansas Department of Transportation paid for the signs.

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