County may tax mining firm for exporting water

EUREKA -- Eureka County Commissioners are considering imposing a tax on Newmont Gold Co. for exporting water from the county if a district court judge upholds their right to charge such a fee on Barrick Goldstrike Mines.

The county requested a court ruling on a Barrick water export agreement in October 1997 after the Nevada Attorney General's Office issued an opinion that said the fee would be illegal.

Eureka County is protesting Newmont's application to discharge water from the proposed Leeville mine.

Eureka County Commission Chairman Pete Goicoechea said if the company wants to pump mine water out of the basin, "the statute allows for a mitigation agreement."

Barrick signed an agreement in November 1996 agreeing to pay Eureka County at least $100,000 per year in export fees and an additional $4 per acre-foot if the amount of water exported exceeds 250,000 acre-feet over 10 years. Barrick has a permit to discharge up to 70,000 gallons of water per minute from the mines.

In a related matter, Eureka County Natural Resources Manager John Balliette expressed concern over an amendment inserted into a Nevada Senate bill at the request of mining companies, exempting mine dewatering from a prohibition on interbasin transfers. The bill has passed the Senate Natural Resources Committee.

Consultant Mike Baughman, president of Intertech Services Corp., said he has prepared further amendments to counter the bill in the Nevada Assembly.

"When they submit an application for mine dewatering, it's usually a temporary application that is not an application for an interbasin transfer because the place of use is typically in the same basin as the point of diversion," Baughman said.

"Our concern is, while that technically may be true, once the mine starts dewatering and then seeks to manage that mine dewater, if they put it in the river and it flows outside the basin of origin it clearly becomes interbasin transfer."

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