Pipeline failure carries high price tag

Staff Writer

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At the Eastern New Mexico Water Utility Authority Quarterly Workshop Thursday, engineers with CH2MHILL made the financial impact of the ENMWRS Ute Pipeline Project clear – there will be a huge cost if it doesn’t happen.

Barbara Crockett of CH2MHILL said if it doesn’t happen it would cost $1.5 billion over 60 years as the participating communities would “chase water” by building more well fields; construct pipeline infrastructure from well fields to communities; and pay for land, easements and water rights.

Crockett said the cost would be three times the cost of the ENMWRS project and the groundwater would not be sustainable.

Crockett also presented information about the economic impact of losing water supply in the region. She said the current gross domestic product is $2.85 billion with employment of 34,700. If limited water supply reduced local growth rates over 10 years by one percent, the region would lose $28.5 million annually or $300 million compounded over 10 years, and if growth was reduced by two percent the region would lose $57 million annually or $1.4 billion compounded.

The engineers also updated the crowd with the progress and funding overviews of the project.

Phase I is nearly complete, which is the intake station at the Ute Reservoir.

The next step in construction is Phase II, which is an interim groundwater project that will include building the Elida pump station and 39 miles of pipeline to deliver water to Cannon AFB, Portales and Clovis. This phase delivers water to 95 percent of users and represents 40 percent of the total pipelines. Phase II will take 10 years and cost roughly $105.1 million not including inflation.

Phase III is the Ute Reservoir supply project, which will continue lateral pipelines to Texico, Elida, Melrose, water treatment facilities and pump stations. This phase will take 15 years to complete and cost roughly $432.2 million not including inflation.

The presentation showed the project funding is 75 percent federal, 15 percent state and 10 percent local.

Overall, the project has an estimated 25 years remaining to completion and will cost $537.3 million.

“There is a need to create… refresh a sound financial strategy,” Crockett said. “There has been one in the past, this really is about refreshing it and also really look at a much shorter project completion, going out to 25 years is really stretching it out there and it adds a lot of cost.”

“This project is possible, it has been done before,” Crockett added. “It seems like a lot of money, but this is kind of the way of the west.”

“We believe that it absolutely will happen,” Brumfield said. “And I think that the next phase of the interim pipeline is critical to where we are at this juncture.”

Local business owner Stacy Martin, Grady Mayor Wesley Shafer and County Commissioner Wendell Bostwick all expressed their support for the project during the public input section of the workshop.

But Mayor Robert Lumpkin of Tucumcari said “they are concerned” that drought, change in climate, and pumping at the reservoir could impact the jobs and financial interests of residents in Quay County.

“The interim pipeline system is a great idea and I think it's well worth the effort...the rest is subject to what the climate does, which we don’t know,” Lumpkin said. “I’m fighting for my constituents, and my families, and my friends in my area.”

Brumfield said the reservoir is one of the largest watersheds in the state.

“I understand your concern,” Brumfield said. “It’s always been a benefit to us to make sure everyone’s concerns are out there.

“We believe with the studies that have been going on for the past 50 years, 20 years, and studies that are going on right now…there is enough water generated that it will be sustainable, that it will go even through droughts,” Brumfield said. “There may be some times that we may not be able to pull our full allocation, and that’s why we work with groundwater and reuse and things like that – it is a portfolio.”