Here’s the release from Aurora Water (Greg Baker):
Water rights purchase provides environmental benefit
Aurora Water has finalized the purchase of water rights associated with the London Mine, located near Alma, in Park County. 1,411 acre feet (af) of water has been acquired at price of $22,000 per af, with additional costs of $2 million for an option to acquire additional water rights as they are developed and $1M for an easement. An acre foot of water is 325,851 gallons, enough water to serve 2.5 households on average. The seller of the rights is MineWater Finance, LLC and No Name Investors, both Colorado companies. The total value of this initial purchase is $34,042,000. The sellers are confident that the source of the rights could ultimately result in additional water that Aurora has the exclusive option to purchase for $21,500 per acre foot.
The source of this water is from a basin that is recharged from snowmelt on London Mountain. A geologic fault contains the water underground and prevents it from discharging into South Mosquito Creek, a tributary of the South Platte River. This water is pumped from the basin to a water tunnel in the London Mine and from there, discharged into South Mosquito Creek, which is upstream of Aurora’s Spinney Mountain Reservoir. Since this water is not naturally connected to the streams, it is decreed under Colorado Water Law as non-tributary. This has special meaning as this water is fully reusable and can be recaptured utilizing Aurora’s Prairie Waters system, a potable reuse system.
Aurora Water has been a national leader in water efficiency, including an acclaimed Prairie Waters water reuse system, and a nationally recognized water conservation program. Water acquisition is still necessary to meet future demands.
“Looking for new water supplies in the arid west requires innovative thinking,” said Marshall Brown, Director for Aurora Water. “This is a supply that historically has not been tapped by water providers, but the easier supplies are gone.”
The environmentally positive aspects of purchase have resulted in praise from organizations such as the Boulder-based Water Resource Advocates (WRA).
“New water supplies in Colorado are extremely limited and, at the same time, nearly 2,000 miles of streams in Colorado are polluted by mines,” Laura Belanger, Water Resources and Environmental Engineer with WRA stated. “We commend Aurora Water for taking a leadership role in finding this inventive and environmentally beneficial solution to meeting its customers’ water needs.”
Aurora Water completed substantial due diligence prior to this initial closing. Additional water rights under the option provision will be purchased as they are adjudicated and decreed through Colorado’s Water Courts.
Aurora Water is only purchasing the water rights. MineWater will continue to be responsible for the mine property, wells and associated permits. Questions regarding the mining operations, including the permits, should be directed to the MineWater contact listed above.
Click here to read the London Mine Purchase and Sale Agreement Fact Sheet.
Click here to read the mine water attachments to the release.
From The Aurora Sentinel (Kara Mason):
From 1874 until the 1940s, the London Mine was one of the top-producing gold mines in the state. It also produced lead, silver and zinc. In 1991 the mine eventually closed, but a fault within the mountain created a natural reservoir, one that fills with snowmelt.
In the nearly three decades since the mine has been closed, the state health department and U.S. Environmental Protection Agency have had their eye on the mine and its previous owners. In 2009, 2011 and 2013 CDPHE cited the mine for violating the discharge permit. A treatment plan for the mine was created, but it failed. And in 2016 CDPHE slapped the owner previous to MineWater with a $1.1 million fine.
Water officials and MineWater have studied the water, and will continue to do so, to make sure it’s a safe source.
MineWater, which has completely reworked the plumbing of the mine, will still continue its operations and hold all mine permits. Aurora water is only purchasing the water rights.