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IID Board of Directors Approved Water Supply Agreement with Mineral Company

-Editorial

The Imperial Irrigation District Board of Directors approved an agreement with a company that wants to expand in Imperial Valley at the May 2nd meeting. 

EnergySource Minerals, LLC, a Delaware limited liability company, including its wholly owned subsidiary ESM ATLIS LLC, proposes to construct and operate a commercial minerals extraction and production facility for the extraction and processing of lithium, hydroxide, manganese, and zinc from the brine resourced from the neighboring Hudson Ranch Power, an existing 49.9-megawatt geothermal power generating plant. 

EnergySource proposes to use property within two parcels subject to a purchase agreement with River Ranch, Inc., and shared facilities in a third parcel owned by the Hudson facility. These two projects are located within the water service territory of IID, in Imperial County, California.

The EnergySource project will operate under and is more specifically described in a 30-year conditional use permit approved by the County of Imperial on September 30, 2021, and recorded on Oct. 18, 2021. 

The Hudson Ranch facility is currently operating under a conditional use permit and the geothermal facility has an existing water supply agreement with IID to deliver up to 1,980 acre-feet per year. No changes to the Hudson Ranch water supply agreement are proposed. The existing Hudson Ranch facility receives water service from the “O” Lateral, Gate 32.

EnergySource is requesting water service for this project and IID staff has developed the attached Water Supply Agreement to provide up to 3,400 acre-feet per year of water necessary to operate the Project for the mineral extraction and production operation. The project is to be located on portions of land to be subdivided through the County of Imperial. A secondary gate from the “N” Lateral, Gate 35, is proposed to be constructed and sued when the “O” Lateral is unable to accommodate the combined demand of the existing Hudson Ranch facilities and the EnergySource project.

Under the proposed Water Supply Agreement, EnergySource Minerals, LLC will pay a Reservation Fee of $496,340, due no later than forty-five days after the effective date of the agreement. IID will receive an annual Water Supply Development Fee of approximately $1,985,339 once the project is operational for the development of water supply projects, such as water conservation projects, water shortage, and water augmentation project programs. 

This fee will be adjusted annually per the Consumer Price Index for All Urban Consumers and shall be paid on or before Dec. 31 of each subsequent calendar year. Water deliveries to the EnergySource Project will be billed at the industrial water rate up t the maximum of 3,400 Acre Feet.

 

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