January 26, 2015

Mr. Lach

questioned the need for the Water Board to even review applications at this stage. John MacLaughlin noted that a monitoring well was required to make sure no chemical contaminants were seeping into the aquifer. Mr. Lach felt that the Water Board should review all applications before they are heard by the BOCC since there was nothing to be gained after BOCC approval. Mr. Schinhofen related that Water Impact Plans should be reviewed by the Water Board before MME Licenses are granted. There was agreement that policy needs to be in place before future MME applications could be considered. Greg Dann made a motion to accept the Water Impact Plans for Agenda Items 9, 10 and 11 as presented to the staff and Water Board. Dave Hall seconded the motion. James Eason noted that in Item 9 the establishment is not within the scope of the Water Board jurisdiction since this will be serviced by a private utility and is only subject to PUC regulation. Michael Lach expressed the same sentiment. The motion failed with a vote of 3-3. Michael Lach, James Eason and Jim Weeks voted nay. Michael Lach made a motion that for Item 9 the Water Board leaves water issues up to the jurisdiction of UICN to follow mandates of the state for this Medical Marijuana Establishment; and as long as the BOCC has already given approval, the Water Board shall approve Agenda Item 9. James Eason seconded the motion. Darrell Lacy noted that the Water Board can approve additional requirements, such as a monitoring well as long as they do not conflict with those set by the regulating authority. Michael Lach restated his motion to state that we approve Item 9; that the applicant follows rules and regulations that the state mandates; and we understand that they will not be putting a monitoring well on their property. James Eason seconded the motion and noted that waste will be captured by the utility company. The motion was approved with a vote of 5-1 in favor. Greg Dann cast the only nay vote. 3 Nye County Water District Governing Board January 26, 2014 Michael Lach made a motion to approve Items 10 and 11 as presented. James Eason seconded the motion. The vote was approved unanimously with a vote of 6-0 in favor.

Mr. Wichman

noted that this would be only one of many tools to be used to help bring the basin back into balance. Darrell Lacy suggested that more discussion is needed on this subject and that it would be narrowly applied to a limited number of water right holders. John Bosta felt that water banking was a tremendous problem especially as it applies to the local utility companies. In response Mr. Bosta’s comments, Oz Wichman explained that many of the water rights held by utility companies are backed by very old certificated agricultural water rights that have been transferred to be used by the public utilities. Kenny Bent felt that the intent of water law needs to be considered in the decision making process. Banking water rights is against the intent of the water law since all water belongs to the public not just a privileged few. Greg Hafen replied that it is not the intent of this proposal to create speculation in water rights. Michael Lach felt that Mr. Wichman should continue to pursue this idea even though it may not be perfect. He questioned what the definition of 4 Nye County Water District Governing Board January 26, 2014 “beneficial use” might be. Greg Dann felt that beneficial use was non-wasting of water and that the DWR has not been doing much to find abusers. Dave Hall thought that this was a necessary tool and needs to be investigated further. One member of the public stressed that water belongs to the public and not the land. Pete Goicoechea and Jason King are now in the process of reviewing this proposal. John MacLaughlin wished to discuss Item J-3 which concerns connection of homes with domestic wells to a public utility and waiving the connection fees. He noted that the cost of abandoning wells must also be a consideration. Gregory Hafen discussed Item J-2 which deals with the extension of backbone infrastructure lines to areas where there is no utility service. Financing for this type of project was an area of concern. James Eason commented on Item A-3 which concerns the importation of water. Oz Wichman related that with regards to Item E-1, during discussion with Jason King, State Engineer, it was learned that the DWR does have the authority to require metering on all new domestic wells. Greg Dann felt that there should be curtailment on new domestic well drilling. There was general agreement by the board to meter future domestic wells in order to gather data to help with future decisions. John MacLaughlin expressed concerns with the fact that there may be many domestic wells in the valley that are currently being used for commercial purposes and need to be metered as per state law. Darrell Lacy noted that Planning is currently working on this issue. Oz Wichman felt that this was an issue that should be handled by the DWR. Michael Lach thought that this could be tied in with the issuance of business licenses. He requested that the metering issue be placed on the agenda for the next Water Board meeting. Mr. Wichman related that he will be having talks with Jason King during the next few days and go over this idea. There was a suggestion that perhaps the Town of Pahrump could get involved with oversight of commercial metering. Education of the public in these matters was important. During public discussion, Theresa Pillman had concerns that current domestic well owners may eventually be forced to put meters on their wells too. Another person was concerned that the expense of installing a meter may be an economic burden for some well owners. Ken Searles questioned the definition of “new” wells. Oz Wichman related that a new well could be defined by when a drilling company files an intent to drill card with the State Engineer. There was discussion of a requirement by the state that requires metering devices on “permitted” water. Domestic wells do not utilize permitted water. Dan Schinhofen wished to obtain an opinion from the District Attorney on the metering requirement. John MacLaughlin felt that wells that are already drilled but have never been pumped would fall into the “new” well category. There was concern expressed by Kenny Bent that deepening or replacing an old well may be considered “new” and require metering. Oz Wichman related that the State has the authority to enforce this requirement. Greg Dann would like to see replacement wells be considered exempt from metering. Greg Hafen asked the board if there were any other items they wished to include in discussions for inclusion in the Groundwater Management Plan. Darrell Lacy noted that some of the items up for consideration are already being addressed by staff. Mr. Hafen related that all of his utility customers within the Pahrump Utilities tariff area are required to have meters due to a tiered rate structure required by the PUC. Robert Wyckoff, longtime Pahrump resident, discussed some of his ideas relating to metering of water, minimum lot sizes and the taxation of water rights. He encouraged the development of greenhouses in the valley to develop a local food supply and provide jobs. Judith Holmgren had concerns about tiered rate structures in utility districts. 5 Nye County Water District Governing Board January 26, 2014

Mr. Lacy

felt this proposal was important to help reduce the number of future of homes being built. By offering lots to landowners at a reduced rate, this could encourage merging of smaller lots into larger parcels that can meet minimum requirements for a domestic well. James Eason questioned why there was even a Groundwater Committee formed to address water problems if, as Mr. Dann said, the BOCC is the only entity that should be dealing with this issue. Mr. Eason felt that this could be one more viable tool to help with reaching the goal of reducing water consumption. James Eason then made a motion to accept this proposal and allow staff to look at acquiring parcels that meet certain criteria. Staff will work with board members to develop criteria. Also, funding shall be drawn from Water District budget monies allocated for the purchase of water rights. Dave Hall seconded the motion. During public comment John Bosta related that, in his opinion, the Water District had no authority to purchase real estate. James Eason amended his motion to include, as per NRS 361.603, the intent of the Water Board is to acquire land to help reduce water consumption through new well applications; to help mitigate flood control and to be used for right-of-ways, etc. Staff may also come back and ad more criteria to the proposed program. Staff will present all of their ideas regarding this proposal to the Water Board for approval. Darrell Lacy will bring back a list of the properties that may be considered for purchase to the next meeting and also provide clarification of who has the authority to approve such purchases. James Eason noted that under auspices of NRS 361.603 municipalities throughout the state have been purchasing land for many years in protection of the public interest. John Bosta still questioned the purchasing authority of the Water District. James Eason noted that if the Water District were to purchase properties for public purposes, then no back taxes can be collected on them. Mr. Bosta commented that the Water District cannot purchase real estate using money that has been budgeted for the purchase of water rights. During continued discussion it was noted that any monies collected above the amount required to pay delinquent taxes are reimbursed to the person that forfeited the property. If the Water District purchases properties they will not be denying the County revenue should a property sell for more than the amount of back taxes. Michael Lach stressed that the entire purpose of this proposal is to decrease future water consumption. Kenny Bent liked the premise but felt it needs further discussion. James Eason asked whether the BOCC may be interested in handling this proposal instead of the Water District. BOCC liaison, Frank Carbone responded with the thought 7 Nye County Water District Governing Board January 26, 2014 that this subject should be addressed by the Groundwater Management Committee. With that, Mr. Eason withdrew his motion in order to leave this issue up to the committee for a decision. Dave Hall rescinded his second to the motion. Darrell Lacy will compile a list of properties that should be considered for purchase and will present this to the Groundwater Committee. He noted that all properties on the tax sale list have been delinquent for a minimum of 3 years.

Ms. Fanning

was not present to give a report. b. Board Reports I. LVVWD/SNWA – Darrell Lacy . None c. Staff Reports: I. Darrell Lacy

Mr. Lacy

announced that he and Oz Wichman will be attending the annual NWRA Conference this week. He will be giving a presentation dealing with the Groundwater Management Plan at a conference panel discussion. II. Oz Wichman

Mr. Wichman

related that a study of approximately 1200 wells in the vicinity of the Humboldt River in northern Nevada showed that a well further than 2500 ft. from a river did not draw any more than 10% of its water from that river. The connection between surface and groundwater is fairly limited. This information and the surface ground to water connection issue, as a whole, may be meaningful for Nye County in the future. He encouraged the Board to carefully read through SB’s 65 and 81 so that any concerns they may have can be addressed by staff and members of the legislature. He discussed briefly the state water plans from Arizona, California and Utah that were included in the back-up packets. III. Levi Kryder None IV. John Klenke None d. Project Status Report Darrell Lacy briefly commented on the status of the Water Resources Plan which will be produced by an outside contractor due to staff time constraints. Staff is currently gathering cost estimates from different contractors. Upon questioning it was noted that the Water District will pay all costs associated with this project. John MacLaughlin questioned the status of the Nitrate Study. e. Board Liaison Report 8 Nye County Water District Governing Board January 26, 2014 I. Frank Carbone f. Report from other individuals, groups and or agencies regarding water-related issues: For informational purposes only. It was noted by Darrell Lacy that prior to removing delinquent tax sale properties from a sale, the Water District needs to obtain approval from the BOCC. This will have to be agendized and discussed during a public meeting. Greg Dann briefly related to the public that he is still doing water level measurements for domestic well owners at no cost. Michael Lach thanked the public for showing concern and taking the time to attend this meeting. He encouraged people to put in writing their concerns and submit them to Water District Staff and Water Board Members.