Aurora: Anadarko scores 1,500 acre-feet of fully reusable effluent for oil and gas operations

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From the Aurora Sentinel (Sara Castellanos):

“We’ve always looked at where our supplies are, where our projected demand is going to be, and where we have windows of opportunity. Where we think we have additional supply, we’ll go ahead and lease it,” Stibrich said.

The Anadarko leasing deal was especially high profile because the city agreed to lease water to the company for hydraulic fracturing purposes — a contentious issue that some Aurora residents have vehemently opposed.

But leasing deals have existed long before then, Stibrich said. Those include a 7,000 acre-foot lease to the Central Colorado Water Conservancy District, a 4,340 acre-foot lease to Rocky Mountain Energy Company, now owned by Xcel Energy, and leases that are currently being negotiated for the WISE project that will eventually grant water to 11 water providers in Douglas and Arapahoe counties in times when Aurora has additional water…

As of now, Aurora’s water supply is in good shape. The city stores water in 16 reservoirs — of which they own five: Quincy, Aurora, Rampart, Spinney Mountain and Jefferson Lake. The rest of the reservoirs are shared with other cities, for example, Homestake Reservoir stores water for Aurora and Colorado Springs. The reservoirs have a total water storage capacity of 156,000 acre feet of water. An acre foot is 326,000 gallons, or enough water to serve two typical households per year. The amount of storage capacity the city has is three times more than the city’s actual need.

The city uses about 50,000 acre feet annually, and the reservoirs were about 85 percent full in May.

The city is continually looking at more opportunities for water storage. Between 2012 and 2014 the city will be working on land easements and begin pre-permitting activities for the development of the Box Creek Reservoir, which they hope will be online and storing water by 2030…

Under the Anadarko water lease, Anadarko is planning to pay Aurora Water to use 1,500 acre feet of “effluent” water per year over five years. The company will be paying four times the market rate for the city’s effluent water, or water that has already been used and treated that would otherwise flow downstream and out of the state. That equals to about $1,200 per acre foot, whereas the market rate is about $350 per acre foot. Anadarko will pay Aurora about $9.5 million over five years for the water.

Back on August 15 an Aurora City Council committee made sure that the city didn’t lease potable water to Anadarko. Here’s a report from Sara Castellanos writing for the Aurora Sentinel. Here’s an excerpt:

City council members had the discussion after the city received two requests from parties interested in the possibility of acquiring drinkable, or potable, water for oil and gas drilling purposes.

The people interested were not named in city documents or at the Infrastructure and Operations Policy Committee meeting, but committee members said potable water shouldn’t be sold to any entity.

The requests involved using water from city fire hydrants to fill water tankers for use at oil drilling sites, potentially both inside and outside Aurora city limits. The city’s water officials recommended to members of the policy committee that they deny their requests and any future requests for potable water and keep with the city’s current policy against using fire hydrants for any purpose other than fire suppression and system maintenance.

Councilman Brad Pierce said he didn’t think that was an appropriate use of the city’s water…

The discussion comes about a month after council members agreed to lease 1,500 acre feet of “effluent” or used water to Anadarko Petroleum Corp. for $9.5 million over five years. Effluent water is water that has already been used and treated that would otherwise flow downstream and out of the state. The water is sanitary but not potable or made available for public use.

More Aurora coveage here and here.

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