Community Water Company

Water Delivery System

Pipeline Extension FAQ’s

Community Water Company members have asked many questions regarding our planned pipeline extension project. We’re dedicated to answering all of your questions. To that end we’ve compiled some of the most frequently asked and provided answers below.

Q: How much does this project cost, and who is paying for it?

A: It will cost between $9-15 million depending on the method chosen for water recharge. Augusta Resource will completely finance the project. There will be no cost to Community Water members.

Q: What does the project consist of?

A: The key elements of the project are a pipeline from the end of the CAP aqueduct (at Pima Mine Road) to Community Water’s Well 11 near Duval Mine Road, and at least one recharge project.

Q: Who will own the project?

A: Community Water will own the project from its inception. Augusta will pay for it according to the requirements of our regulatory agency, but will never have an ownership interest.

Q: What is a Letter of Intent?

A: A Letter of Intent (LOI) captures the major points of agreement between the parties and specifies a process and timetable for arriving at a final binding agreement. The LOI between Augusta and Community Water provides for 120 days to finalize the necessary agreements.

Q: Why an LOI instead of the final, binding agreements?

A: Three reasons. First, we needed the opportunity to communicate with our customers before finalizing the agreements. Second, we have work to do to identify the recharge locations and pipeline alignment and to complete engineering cost estimates before the final agreements are signed. Third, the form and terms of the final agreements must be approved by our government regulators before they can be approved.

Q: What would be the cost to each Community Water member if the company paid for the Project?

A: About $1,500.

Q: Does this pipeline extension project eliminate all concerns for our aquifer?

A: No, not even close. But having a reliable outside supply of water is an important first step towards a sustainable water supply for our community. Additionally, water recharge in our area will help mitigate the spread of groundwater contaminants, such as the sulfate plume from the local tailing ponds.

Q: Why does Community Water want the project completed within two years?

A: A shortage declaration on the Colorado River becomes increasingly likely with each passing year. If we are not making use of our CAP allocation at the time a shortage is declared, it is possible we could lose access to our allocation.

Additionally, we would like the project to be completed before Augusta Resource’s application for their mine in the Santa Ritas reaches a decision point.

Q: What happens if Augusta’s Rosemont mine isn’t approved and developed?

A: The pipeline will be completed anyway. But we want the project completed quickly to guarantee that. The LOI provides that all necessary funding will be escrowed by Augusta before the first trench is dug.

Q: Does Augusta Resource need this project to develop the Rosemont mine?

A: No. Augusta is under no obligation to recharge water at all. Not in Marana and not here. Augusta’s success in obtaining permits to mine on the east side of the Santa Ritas will not be impacted by this project one way or the other.

Q: Is the source of water for Augusta’s Rosemont Mine dependent on this project?

A: No. They plan to use groundwater, which, as a mining interest, they have every legal right to do. Community Water Company has no influence over Augusta’s mining water use plans.

Q: Is the mine likely to receive needed approvals regardless of the water situation?

A: It seems likely. Although the Environmental Impact Statement and Forest Service approval process may take two years or more, it appears the only thing that can stop the mine from moving forward is significant federal legislation altering the Mining Act of 1872.

Q: What are the consequences if the project is not completed?

A: The removal of an additional 100,000 acre feet of water from our aquifer over twenty years without any mitigating influence would have a measurable impact on the Green Valley/Sahuarita area aquifer. More important to Community Water, though, would be the loss of strategically situated recharge that would reduce the likelihood of contamination plumes impacting Well 11, and that would reduce the rate of decline in the aquifer under our service area.

At the northern end of our aquifer, where there is the highest projected drop in the water table, there is significant risk of land fissuring and subsidence. Subsidence is when land surface sinks where the water table below has significantly dropped. Fissuring occurs when large cracks open at the ground surface, sometimes in residential and commercial areas, typically due to uneven subsidence. Fissuring is a safety threat and devastates property values in affected areas.

Q: Why were discussions so private before the public announcement?

A: Business negotiations must often be conducted in private to best facilitate the completion of an agreement. Negotiating in the media is almost always detrimental to the process. Community Water takes its obligation to keep its members informed very seriously, and the public was notified at the earliest opportunity. One of the reasons an LOI form of agreement was chosen was to allow this time for discussion of the project by our members before anything is finalized.

Q: What can Community Water Company members do to support this project?

A: Talk to us about any additional questions or concerns you may have. Talk to your neighbors and explain to them how important this water sustainability project is for our community, and that it is not dependent on any mine approvals. Also, write letters to the editors of local newspapers helping to explain this complicated but important issue.

Q: Who do I talk to about my questions and concerns?

A: Call Arturo Gabaldón, President of Community Water, at 625-8409 or email him at arturo@communitywater.com.