Eastern New Mexico Rural Water System | 25-1Water Matters!

Eastern New Mexico Rural Water System(Ute Pipeline Project)

The Ute Pipeline Project (Project), officially known as theEastern New Mexico Rural Water System (ENMRWS),is a 151-mile-long pipeline project to provide a

sustainable municipal and industrial water supply for severaleastern New Mexico communities and a military base. Waterwill be pumped from Ute Reservoir to the cities and towns ofClovis, Portales, Melrose, Texico, Grady, and Elida, as well as toCannon Air Force Base and Curry and Roosevelt counties (seemap). The entities involved in the Project have a combinedpopulation of about 73,000.

“Anticipating the potential waterneeds in eastern New Mexicoand in the interest ofmaximizing New Mexico’s useof water from the CanadianRiver stream system, the N.M.Interstate Stream Commissioncompleted construction of UteDam and Reservoir in 1962 at apresent-day cost of over $125million.”

N. M. State Engineer John D’Antonio Jr., (2003–2011)

Eastern New Mexico Rural Water SystemBy Jerold Widdison for the Utton Transboundary Resources Center.

Status Bar 2014• Eastern NM Water Utility Authority• Legislative Finance Committee completed the programevaluation of the Water Trust Board, and found that the Boardwas correctly funding large regional projects such as theENMWUA and the Navajo Gallup projects.

• Huge rains in September 2013 added 28,000 acre-feet to theUte reservoir.

• An evaluation of alternatives by a geohydrologist for Portalesfound that the Ute Pipeline remains the best option but thatongoing conservation efforts are necessary until the pipeline iscompleted. Portales residents have reduced their consumptionto 150 gallons per capita per day.

• Efforts have been undertaken to improve the watershed. Acompleted draft water quality plan has been submitted toNMED.

• The federal appeals court in Denver denied the city of Logan'srequest for an injunction pending a decision. The court hasheard the city’s challenged to the Project, and the parties arewaiting for its decision.

• The Project received $2.1M from the Bureau of Reclamation

• The Water Trust Board awarded 3.2M to the project for thisfunding cycle.

25-2 | Water Matters! Eastern New Mexico Rural Water System

The Congress authorized major federalfunding for the Ute Pipeline in the OmnibusPublic Land Management Act of 2009. Thisimportant milestone for the project wasreached after about 45 years of effort.Attention now shifts to myriad detailsinvolved in actually constructing, financing,and administering the project.

BackgroundNew Mexico created Ute Reservoir bydamming the Canadian River near Logan inQuay County. The reservoir stores theState’s share of the Canadian as allowedunder the Canadian River Compact amongNew Mexico, Texas, and Oklahoma. Thepurpose of the reservoir was to create asustainable water supply for communitiesthat rely on the Ogallala aquifer, a watersupply that is diminishing in both qualityand quantity. Withdrawals from the aquiferin the service area are estimated at 249,000acre-feet per year (afy) and recharge isestimated at 40,000 afy. The productivity ofmany wells has dropped dramatically andmunicipalities have turned to increasing thenumber of wells to maintain productionlevels. It is projected that the Ogallalaaquifer as a water source for the area will last10 more years.

Construction of the dam was completed inMay of 1963, and an organization known asthe Ute Dam Municipal Water Associationwas formed in September to move theproject ahead. It included cities fromTucumcari south to Artesia. Congressauthorized feasibility studies in 1966. A neworganization, the Ute Reservoir WaterCommission (URWC), was formed througha joint powers agreement in 1987. TheN.M. Interstate Stream Commission (ISC)manages the water in the reservoir and isrequired to market it. In 1994, the ISCestimated the “firm annual yield” to be24,000 afy except in extreme drought years.The firm annual yield represents the yearlyamount of water that can be dependablysupplied from the raw water sources of agiven water supply system. In 1997, the ISCgave the URWC a first right of refusal on

that 24,000 acre-feet of water for $36,000annually through December 31, 2008. Thatdate has now been extended, in view of theprogress being made on the pipeline project.Had the date not been extended, the URWCwould have been obligated to purchase up tothe same amount of water for $25 per acre-foot, or about $600,000.

In 2001 with State approval, the eightentities in Curry and Roosevelt countiesformed the Eastern New Mexico Rural WaterAuthority (ENMRWA) to plan, design,fund, and oversee the construction of thepipeline. The U.S. Bureau of Reclamation(Reclamation) works with ENMRWA ontechnical matters. In 2003, ENMRWAadded members from Quay County,Tucumcari, Logan, and San Jon. Two yearslater those members withdrew but retainedtheir share of reservoir water (about 7,550afy) for future purposes, including supplyingwater for the “Ute Lake Ranch” communitydevelopment on the south side of thereservoir. The pipeline project is thuscommitted to the future delivery of 16,450afy to the remaining participants.

The Project as PlannedThe Project consists of an intake facility onthe south shore of the reservoir, a main waterpipeline, and treatment, pumping, anddelivery facilities. The pipeline will runalmost due southward from Ute Reservoir asfar as Portales. A number of “laterals” off themain line will bring water to Clovis, theother participating communities, and tosome outlying areas of the counties. Theplan is to pump the water from the reservoirto the 4,500-foot rim of the Caprock, andthen to a water treatment plant near Grady.The treatment plant will serve the entiresystem. From the water treatment plant, thesystem will operate primarily by gravity flow,although three booster pump stations will beneeded. Each participating entity will pay ashare of the construction costs and theoperation and maintenance costs of thepipeline and facilities. Each will also pay forthe water itself, based upon the amount ofwater each entity has reserved in the Project.

Eastern New Mexico Rural Water System | 25-3Water Matters!

Aside from construction costs, the benefitedentities can expect to receive water at about$31 per acre-foot.

The cost estimate for the full Project was$500 million at the time of the 2009 federalauthorization. According to Paul vanGulick, an engineer and Project programmanager, there have been a number ofstudies regarding future water supplystrategies for eastern New Mexico. Of these,the Ute Project shows the greatestbenefit/cost ratio. The Project is necessarybecause of anticipated depletion of theOgallala aquifer on which Project membersrely and the consequent need for analternative supply.

There is, however, some controversy.Opponents, especially in the Logan area,believe that when the fully operational Projectwill damage their lake/recreation-basedeconomy. Logan relies on its seasonal resortof summer homes and tourism that arecentered on the Ute Reservoir. Opponentsargue that if the lake levels drop, thoseunderpinnings of their economy willdisappear. Reservoir levels have dropped overthe last three years from 190,000 in 2010 to118,000 acre-feet in August of 2013. By theend of December of 2013, the water level hadrecovered to about 143,000 acre-feet due tothe late summer and fall rains. Still, theconcerns about the effects of drought and thepipeline on the local economy remain.

Funding is a part of the debate. Opponentspoint out that the federal funding, whileauthorized, is largely unappropriated andassert that that Congress will never take thenecessary action. They argue that theexpenditures to date have been a waste ofstate monies and less expensive alternativesshould be employed, such as purchasingwater rights from agricultural users.

Some do not want the project to stop butwould like some accommodation. Onecommentator asked that the municipalmembers of the Project turn to groundwaterpumping during times of drought, thuspreserving the recreational pool in the lakethat Logan relies upon.

Project proponents have confidence thatCongress will fund the Project, and thepipeline will be built to ensure the long-termviability of their municipal water supplies.The Ute Project is viewed as critical for thewater future of Clovis and other towns. It isalso important to the future of Cannon AirForce Base, and failure to build the watersystem could spell the departure of the base.

Legislation and FundingNumerous projects of this kind in otherstates have been paid for largely by federalfunds. Here, the authorized cost allocation issimilar to other federally supported waterprojects: the federal government is to pay 75percent, the State will cover 15 percent andthe ENMRWA members will take care of 10percent. The Project costs were estimated atabout $436 million in 2008 dollars.

Federal: Initiatives to authorize and fullyfund the Ute Project began to accelerate inthe mid-2000s. By 2009, Senator Bingamanhad incorporated the Ute Project bill andmany other bills into the Omnibus PublicLand Management Act (Act). The Act wassigned into law on March 30, 2009. TheAct authorized $327 million as the federalshare of the funding. The federalauthorization included a provision forindexing; that is, the actual amountappropriated will be adjusted to reflect futurechanges in federal indices for constructioncosts. It was anticipated that the projectwould be constructed in phases.

The other provisions of the 2009 Actpertaining to the Ute project are simplewhen compared with provisions for theNavajo-Gallup project and the Aamodtsettlement (for more information see theAamodt Adjudication and Navajo-GallupWater Supply Project articles in this edition

Each participating entity will pay a share of theconstruction costs and the operation and

maintenance costs of the pipeline and facilities.

25-4 | Water Matters! Eastern New Mexico Rural Water System

of Water Matters!), because the project doesnot involve water rights settlements or courtapprovals. Nonetheless, the Act containsseveral federal requirements regarding projectfinancing and engineering design. During2010, the member entities made goodprogress on the requirements. It isimportant to realize that the Ute Project isnot a federal project. It will be built, owned,and operated by participating localgovernments.

In years prior to project authorization,federal funds to support planning and designwork were obtained by congressional “write-in requests.” For example, SenatorBingaman’s requests yielded $260,000 in2009. Since the 2009 Project approval,annual funding is managed through federalbudget processes with funds administered bythe U.S. Bureau of Reclamation(Reclamation). The 2010 Energy and WaterAppropriations Bill appropriated $1 million

for design and initial construction of theintake facility at Ute Reservoir. Subsequentfederal grants included $1.3 million in FY2012 and $1.8 million in FY 2013. The2014 Reclamation budget contains a$649,000 for the Ute pipeline.

The Project is relying on the passage ofSenate Bill 715—the Authorized RuralWater Projects Completion Act to provide afunding stream from the federal government.The Act would provide mandatory fundingfor six authorized rural water projects at alevel that would allow their completionwithin 20 years. The bill was introduced inApril of 2013 and subsequently referred tothe Senate Committee on Energy andNatural Resources. On November 21, 2013,the Committee ordered that the bill bereported favorably with amendments.

State: At the state level, the New Mexicolegislature has provided Project money ineach year from 2006 to the present. In2006, $1.25 million was appropriated. In2007, then Governor Richardson’s “Year ofWater” initiatives included $5 million for theProject, of which only $1 million wasdirectly appropriated. As expected, however,the legislature also approved a $2.3 millioncapital outlay request for the project throughthe N.M. Water Trust Board (Board). In2008, the legislature approved $4.5 million,

Ute Reservoir on the

Canadian River

During 2010, the member entities made goodprogress on the requirements. It is important torealize that the Ute Project is not a federal project.It will be built, owned, and operated byparticipating local governments.

Eastern New Mexico Rural Water System | 25-5Water Matters!

also through the Board. These lastappropriations required 20 percent localparticipation in accordance with Boardpolicy; that is, the local entities must pay 20percent of the amounts as specified by thelegislature. In 2009, another $4.4 millionwas appropriated, and the local participationamount was reduced to 10 percent. Thelegislature provided $2.9 million in 2010,$4.4 million in 2011, $3.8 million in 2012.Also in 2012, the ENMRWA received apreliminary award of $4.0 million. In total,the legislature has provided $32.55 millionfor front-end planning, engineering services,and construction. These monies will countas part of the state’s 15 percent participation.

Water Trust BoardIncidentally, the creation of the WaterTrust Fund and Board in New Mexico isowed in no small part to the earlyplanning and fact-finding efforts on theUte project, dating back to 2000–2001.A team from eastern New Mexico visitedother states having similar regional andrural water projects to investigate andlearn from their experiences. Othersuccessful state models includedsignificant investment to leverage localand federal funds to implement large-scalerural regional projects that could nototherwise be completed. The teambrought these ideas back to New Mexico,and the eastern New Mexico legislators ofthe time, Pat Lyons and Joe Stell inparticular, used this information toexpand and give substance to the UteProject plans. Over the next two years theWater Trust Fund and its managing Boardbecame realities. For more information,please see the chapter “Water Trust Board”in this edition of Water Matters!.

Pre-Construction ActivitiesSince project approval in 2009, the UteProject has been gathering momentum. TheProject’s sponsors presented draft legislationto the 2010 session of the legislature, seekingto transition responsibility for the projectfrom the ENMRWA (which was formed by a

joint powers agreement) to a new EasternNew Mexico Water Utility Authority(Authority). The legislation passedunanimously, establishing the Authority as apolitical subdivision of the state. TheAuthority is a formal and stable organizationthat enables the participating localgovernments to begin setting up specificprocedures for their financial participation,such as revenue bonding procedures and userrate schedules. It provides the necessaryorganization for the Project’s bonds to beoffered in financial markets.

The Authority has a seven-member Boardappointed by the Project area’s communitiesand county governments. The Board hasbonding authority rather than taxingauthority. The Board became official on July1, 2010 and adopted a financing plan onJuly 15. An umbrella Memorandum ofAgreement between the Board andReclamation concerning financing has beencompleted. Individual cooperative fundingagreements for each phase of constructionwill follow as needed.

As for project planning and engineering, thestandard “30 percent design” was completedin 2009, followed by a “value engineering”process. Reclamation completed a DesignEstimates and Constructability (DEC)review. In parallel, it proceeded for overthree years with federal environmentalcompliance activities including thepreparation of an Environmental Assessment(EA), a Biological Assessment, and theissuance of a “Finding of No SignificantImpacts” (FONSI). With these activitiescompleted in early 2011, the groundbreakingceremony for the first phase of the projecttook place in August 2011.

Incidentally, the creation of the Water Trust Fund and Board in New Mexico isowed in no small part to the early planning andfact-finding efforts on the Ute project, dating

back to 2000–2001.

25-6 | Water Matters! Eastern New Mexico Rural Water System

Meanwhile, the Albuquerque consulting firmof CH2M HILL was authorized to conducta feasibility study for a wind energy plantthat could generate revenues to offset someof the pipeline costs. This study indicatedthat a commercially operated wind farm of200 megawatts capacity would be needed topay for itself and to pay down a reasonablefraction—perhaps one-third—of the pipelineproject cost. Currently, however, no marketexists for the power that would need to besold, inasmuch as other power-generating

entities have met their alternative-sourceobligations. Moreover, existing transmissionlines in the region are at capacity.

Generation of hydropower was also consid-ered. It might be possible to drop Projectwater down the Caprock through turbinesand sell the power at peak times, then pumpthe water back up in off-peak times. Butcapital costs would increase, and profit mar-gins associated with the peaking factor mightbe too small. Therefore, hydropower is cur-rently thought to be too expensive.

Tucumcari

Grady

LEGENDSaturated Thickness

2055 (ft)0-1414-3030-5050-7575-100

Melrose

Elida

Portales

NE

W M

EX

ICO

TE

XA

S

N

Projected Aquifer Saturated Thickness Based on Current Pumping Trends

Redrafted from CH2M Hill Technical Memorandum: Fresh and Brackish Groundwater Resources in the ENMRWS Project Area

Clovis

Construction ActivitiesConstruction bidding wasdelayed for one year while theProject acquired additional landneeded for improved access tothe intake facility. Another delaywas encountered when thevillage of Logan filed a lawsuit infederal district court in April of2012 challenging theenvironmental FONSI andseeking to enjoin construction.In January of 2013 the federaldistrict court denied the motionfor an injunction. The nextmonth, a full notice to proceedwas issued to ASI Constructors,Inc. Logan has appealed thelower court decision to theTenth Circuit of Appeals.

Intake Facility: Construction ofthe intake facility is expected totake 22 months. Design ofPhase I of the intake facility wascompleted and construction wasbegun in early 2013. By March2013, workers began work on a$15 million intake station on thesouth shore of Ute Lake that isto be completed in July 2014.

Interim Groundwater Pipeline:To meet the needs ofcommunities running out ofmunicipal groundwater, theProject will be built in phases inareas where the need it greatest,

Projected AquiferSaturated Thickness

Redrafted from CH2MHill TechnicalMemorandum

by C. Kenesson forWater Matters!

Eastern New Mexico Rural Water System | 25-7Water Matters!

rather than beginning at the reservoir andbuilding south. The Authority will obtainthe interim water supply by leasing orpurchasing agricultural water rights until theproject extends to the reservoir.

The contract engineering firm, CH2MHILL, is currently advancing design of theUte pipeline trunk and laterals from CannonAFB on south. This design phase of theProject is called the Interim GroundwaterPipeline (IGWP). The IGWP is intended toprovide Eastern New Mexico Water UtilityAuthority members with an interim regionalsolution to localized problems fromdeclining well production. The IGWP is adistinct set of components forming the“backbone” of the water system that can beconstructed in phases to deliver groundwaterto the member communities and CannonAir Force Base (CAFB) several years beforewater is delivered from Ute Reservoir. Thisapproach is necessary because thegroundwater supply in many areas isprojected only to be productive another 10years and the construction of the entiresystem is estimated to take 20 years.

The purpose of the IGWP is to build firstthose portions of the project in proximity tomember communities and CAFB to mitigateongoing water supply quantity and qualityproblems. The remainder of the pipelinewill be built in future phases. Presently,members are constrained to existing wellfields that are near their municipal water

transmission infrastructure. The Projectpipeline passes through outlying areas wherewater production is expected to persistlonger as indicated by the distribution ofblue and green cells shown in theaccompanying graphic to the right. Thesecells represent remaining saturated thicknessafter fifty years of pumping based on currentpumping trends. The IGWP will cost anestimated $88 million.

ConclusionConstruction of the Eastern New MexicoRural Water System is moving ahead. TheNew Mexico legislature has steadily providedfunding and Congress is working legislationto provide the 75 percent federal share of thefunding. The Project has become a flashpoint over water between the economiesbuilt around the reservoir as a recreationallake and those economies planning todepend on the reservoir as a municipal watersupply. The construction schedule anddesign have been adapted to meet the needsof communities with wells that are becomingless and less reliable. The livelihoods ofmany thousands of people depend on howthese conflicts, both local and congressional,are resolved.

By Jerold Widdison (2007)

Latest Update by Paul van Gulick.ENMRWS Project Manager (July 2013)

Darcy Bushnell, Esq. (Dec. 2013)

25-8 | Water Matters! Eastern New Mexico Rural Water System

Statutes

NMSA 1978, § 73-27-1, et seq., EasternN.M. Water Utility Authority Act.

Omnibus Public Land Management Act,Pub. L. No. 111-11, § 9103, (Eastern NewMexico Rural Water System Project, N.M.),123 Stat. 991, 1300 (2009).

Other

Pete Domenici, U.S. Sen. (R-N.M.), PressRelease on Eastern N.M. Water Pipeline Bill(June 17, 2004).

EASTERN NEW MEXICO RURAL WATERSYSTEM PRELIMINARY ENGINEERING REPORT(2006).

Eastern New Mexico Rural Water Systemwebsite, www.enmrwa.com

Thomas Garcia, Project Leaders: Ute LakeIntake Structure Could Be Completed in July,Quay County Sun (Dec. 23, 2013),http://www.qcsunonline.com/2013/12/23/project-leaders-ute-lake-intake-structure-could-be-completed-by-july/

Legislative Interim Water and NaturalResources Committee, Report (2004).

N.M. Office of the State Engineer/InterstateStream Commission, Glossary of Water Terms(“firm annual yield”), http://www.ose.state.nm.us/water_info_glossary.html#F

Pipeline Should Satisfy Everyone, Opinions,Clovis News Journal (Mar. 10, 2012),http://www.cnjonline.com/2012/03/10/pipeline-should-satisfy-everyone/

S.715 - Authorized Rural Water ProjectsCompletion Act, 113th Congress (2013–2014), http://beta.congress.gov/bill/113th-congress/senate-bill/715 (lastvisited Dec. 29, 2013).

U.S. Bureau of Reclamation,

Budget for Water and Related Resources,Bureau Highlights 2014, http://www.doi.gov/budget/appropriations/2014/highlights/upload/BH039.pdf

Robert Quint, Director of Operations,Statement on HR 5710 Eastern NewMexico Rural Water Project Act, (presentedto Natural Resources CommitteeSubcommittee on Water and Power U.S.House of Representatives, May 8, 2008),http://www.usbr.gov/newsroom/testimony/detail.cfm?RecordID=1243

Press Release, Reclamation Finds NoSignificant impact for Eastern New MexicoRural Water System Project (Feb. 3, 2011),http://www.usbr.gov/newsroom/newsrelease/detail.cfm?RecordID=35022

U.S. Geological Survey, Ute Reservoir nearLogan, N.M. Reservoir Storage—Acre-Feet,National Water Information System: WebInterface (Dec. 30, 2013), http://waterdata.usgs.gov/usa/nwis/uv?07226800

Olivier Uyttebrouck, Pipeline or PipeDream?, Albuquerque Journal (Sep. 2. 2013),http://www.abqjournal.com/256718/news/plan-would-tap-ute-lake-water-for-clovis.html

Contributors

Sarah Armstrong, University of New MexicoSchool of Law, Class of 2015

Stefanie Beninato, Ph.D., J.D.

Paul van Gulick, P.E., Program Manager,ENMWUA

Scott Verhines, P.E., Former ProgramManager, ENMWUA

Sources and Contributors