Water co-op unveils deal with Augusta

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Under terms of a letter of intent disclosed Thursday, Community Water Company of Green Valley will benefit many ways from mining company Augusta Resource’s plans to build a 20-inch pipeline to deliver Central Arizona Project water to this area.

According to the letter of the intent, Augusta “wishes to finance the Community Water Company of Green Valley’s water delivery system and to procure water for delivery and recharge” by June 2009.

Augusta plans to build a copper mine at Rosemont on the east slope of the Santa Rita Mountains east of Green Valley.

For its mining operations, it will take water from what’s known as the Rosemont Well Site, a 53-acre parcel on Davis Road in Sahuarita. That water will be piped to the mine site.

And although mining companies aren’t required to replace the water they pump for operations, Augusta will put back replacement water it’s taking out, according to documents released by Arturo Gabald—n, Community Water president.

Gabald—n released a letter of intent and a supporting document. He announced plans for an open house at 9:30 a.m. Tuesday at West Center to discuss the deal.

Also on Thursday, Arizona Corporation Commission member William Mundell, who will hold a hearing on the agreement here, was to release the same documents.

The CAP water will be delivered to the area of Community Water’s Well No. 11, on Green Valley’s northeast side.

Said the letter of intent, “ARC (Augusta) will pay all costs required to purchase the water that ARC will transport and recharge through the WDS,” the water delivery system.

The agreement is good for the estimated 15-year-life of the mine. At the end of the agreement, Community Water will begin purchasing the CAP water for recharge, or possible direct use.

Originally, Augusta Resource planned to recharge water at a site near Marana, north of Tucson, an alternative that was acceptable to the Arizona Department of Water Resources.

In an accompanying confidential document, Augusta Resource, using water piped from the CAP terminus at Pima Mine Road, will recharge to the aquifer a total 105,000 acre-feet of water until 2025.

An acre-foot of water amounts to 325,900 gallons, about what two urban families of four use in a year.

Plans call for Community Water also to take water from the Pima Mine road terminus.

Supporters of the Community Water - Augusta plan say they hope it will prevent subsidence, when the earth settles because the groundwater has been pumped out.

jlamb@gvnews.com | 520-547-9749

Details
Editorial: Releasing the CAP agreement will lead to a better, more productive dialogue between residents, customers and Community Water. A6.

On www.gvnews.com: Go to our Web site to download a copy of the letter of intent.