Central Nevada Regional Water Authority

Churchill County Elko County Esmeralda County Eureka County

Lander County Nye County Pershing County White Pine County

Meeting Minutes

The Central Nevada Regional Water Authority (Authority) held a public meeting at 10:00 a.m., December 2, 2016 in conference room 102, Churchill County Administration Complex, 155 North Taylor Street, Fallon, Nevada. In attendance were:

Directors:

Churchill County: Norman Frey, Commissioner Pete Olsen and Bjorn Selinder

Elko County: Commissioner Demar Dahl

Esmeralda County: Commissioner Ralph Keyes

Eureka County: Jim Gallagher and Jake Tibbitts, Eureka County Natural Resources Manager

Lander County: Commissioner Patsy Waits and Frank Whitman

Nye County: Joni Eastley, CNRWA Chairwoman, Midge Carver and Commissioner Dan Shinhofen

Pershing County: Roger Mancebo and Commissioner Carol Shank

White Pine County: Commissioner Gary Perea and Bill Butts, White Pine County Water Advisory Board

Others:

Steve Bradhurst, Executive Director, CNRWA

Wilma Mansfield, Executive Assistant, CNRWA

Michael Johnson, Churchill County Planning Director

Don Gustavson, Nevada State Senator

Dale Bugenig, Eureka County hydrology consultant

Eleanor Lockwood, Churchill County Manager

Susan Joseph-Taylor, Deputy Administrator, Nevada Division of Water Resources

Laurel Saito, Nevada Water Program Director, The Nature Conservancy

Mark Sivazhan, Nevada Division of Water Resources, Water Rights Section Chief

Ed James, Carson Water Subconservancy District

Chris Wessel, Western Regional Water Commission

Vahid Behmaram, Washoe County Community Services Department

Chaunsey Chau-Duong, Las Vegas Valley Water District, Management Analyst

Elmer Waits, Lander County resident

Philip Gardner, USGS

Kip Alander, USGS

Bob Harrington, PhD, Director, Inyo County Water Department

Marlene Brissenden, Humboldt County Commissioner

Susan Lynn, Great Basin Water Network

Kristin VanderMolen, Desert Research Institute

Rob McDougal, Pershing County Commissioner-Elect

Rex Steninger, Elko County Commissioner

Mike Dunbar, P.E., General Manager, Emerald Bay Service District

Steve Erickson, Utah Coordinator, Great Basin Water Network

Call to Order. Chair Joni Eastley called the meeting to order at 10:03 a.m. A quorum of the Board was determined to be present.

Public Comment. There was no public comment.

Approval of Agenda. There were no changes to the agenda. Steve Bradhurst mentioned the cover document on the board’s agenda packet was the meeting agenda, and next to agenda items are page numbers for information that pertains to agenda items. Gary Perea made a motion to approve the agenda. Norman Frey seconded the motion which carried unanimously.

Approval of Minutes. Motion was made by Roger Mancebo to approve the minutes for the September 16, 2016 Authority meeting. Jim Gallagher seconded the motion, which carried by unanimous vote.

Discussion on Possible Water Legislation in the 2017 Nevada Legislature – Recommendation to receive information from State Senator Pete Goicoechea and others on possible water legislation in the 2017 Nevada Legislature. Chair Joni Eastley said State Senator Pete Goicoechea couldn’t join the meeting, and therefore he will not participate in the discussion, but Senator Don Gustavson was present, and he will contribute to the discussion. Steve Bradhurst directed board members to the staff report for the agenda item. He mentioned that the Legislative Commission’s Subcommittee to Study Water completed its work during the 2015-2016 legislative interim with five bill drafts requests and three position statements for the 2017 Nevada Legislature. Mr. Bradhurst reviewed a document prepared by the Subcommittee to Study Water that contains information on the five bill draft requests and the three position statements. He also reviewed a November 18, 2016 document from the Nevada Legislature’s website that lists all water-related bill draft requests as of November 18th. Mr. Bradhurst mentioned four of the State Engineer’s bill draft requests are now in bill format, and they are Senate Bills 47, 51, 73 and 74. Mr. Bradhurst discussed briefly the contents of the four State Engineer bills, with the assistance of Susan Joseph-Taylor, Deputy Administrator of the Nevada Division of Water Resources. Regarding SB47, he mentioned there is at least one controversial provision in the bill, and it is in Section 3. The controversial provision pertains to the current requirement that a water resource inventory be conducted by the State Engineer or his designee on a water basin that is the subject of an application or applications that would move more than 250 AF/Y of groundwater from that basin to another basin. The proposed change in Section 3 calls for a water resource inventory be conducted for the water-losing basin if the amount of groundwater to be moved from that basin to another basin is more than 25 percent of the water-losing basin’s perennial yield or 1,000 AF/Y, whichever is less. Susan Joseph-Taylor stated the applicant has to pay for the water resource inventory. She mentioned that the State Engineer feels SB47 is a housekeeping bill making some minor cleanups. Mr. Bradhurst noted that in the past there was an effort by the State Engineer to change the 250 AF/Y trigger for the water resource inventory, and Senator Goicoechea expressed concern with the proposed change. Susan Joseph-Taylor said SB51 focuses on modernizing the adjudication statutes which haven’t been updated since 1919. Steve Bradhurst said SB73 is important since it deals with new language in legislative declarations regarding Nevada water policy, as well as changes in critical management area language and groundwater management plans. Mr. Bradhurst said SB74 deals with collecting rainwater, drought declaration, and the creation of an advisory committee on water planning and drought. It was noted that the contents of SB74 are for the most part recommendations from the Governor’s Drought Forum. Steve Bradhurst recommended members review the four State Engineer bills. He said they are accessible on the Nevada Legislature’s website. There was some discussion of SB21, a bill from the Nye County Board of Commissioners calling for the abolishment of the Nye County Water District. Chair Joni Eastley said in her opinion SB21 is a very bad idea. Chair Eastley said she feels every county needs a water board, Nye County most of all. Gary Perea said he hopes the Legislature will look at all water bills in terms of how the bills will be enforced and the costs to individual water right holders. Senator Don Gustavson stated the public needs to provide input to legislators and legislative committees in the 2017 legislative session.

Presentation on Nevada State Engineer Water Resources Issues – Recommendation to receive a presentation from Susan Joseph-Taylor, Deputy Administrator, Nevada Division of Water Resources, on State Engineer water resource issues, including pit late evaporation; the Diamond Valley curtailment lawsuit; the remand hearing on the Southern Nevada Water Authority groundwater applications in Spring, Dry Lake, Cave and Delamar Valleys; and lithium water issues in Clayton Valley. Steve Bradhurst said the Authority has been fortunate over the years to have a good working relationship with the State Engineer, and when asked, the State Engineer, or his designee, have attended Authority meetings to discuss water issues. He introduced Susan Joseph-Taylor, Deputy Administrator, Nevada Division of Water Resources. She introduced Mark Sivazhan, Water Rights Section Chief, with the Nevada Division of Water Resources. Ms. Joseph-Taylor started her presentations by stating she was astounded by the misinformation that was being spread around Nevada about possible legislation dealing with domestic wells. She said there was a petition regarding possible legislation pertaining to domestic wells that was filled with inaccuracies. Susan Joseph-Taylor then addressed the pit lake evaporation issue. She mentioned the Pershing County Water Conservation District lawsuit that deals with the connection between surface water and groundwater in the Humboldt River Basin, and the concern that groundwater that would normally flow to the Humboldt River is captured by groundwater pumping, as well as by pit lake evaporation. She said the pit lake evaporation issue is whether or not a water right is required for the amount of water that evaporates from a pit lake every year. Ms. Joseph-Taylor said the State Engineer is working with the mining community on the issue. She said on November 1, 2016 the State Engineer sent a letter to the President of the Nevada Mining Association re the pit lake evaporation issue. The letter informs the mining community on the manner in which the State Engineer will account for evaporation from a pit lake. For example, all new mining operations that extend below the water table creating a pit lake after cessation of mining will be required to relinquish a water right to account for the annual evaporation from a pit lake. Ms. Joseph-Taylor said the State Engineer is also encouraging the mining industry to voluntarily relinquish a water right for existing pit lake evaporation. She said for those pit lakes that were not required to have a water right, the State Engineer is going to establish a new manner of use in his data base for evaporation, counting the evaporated water from the pit lake as part of the committed water resource of a basin. Susan Joseph-Taylor then discussed water issues in Diamond Valley. She said Diamond Valley is so far the only Nevada water basin designated a critical management area by the State Engineer. She said the Diamond Valley Groundwater Management Plan Advisory Board prepared a draft Diamond Valley Groundwater Management Plan, and submitted the plan to the State Engineer in November 2016. She said the draft plan has some novel concepts, including the Australian system of shares; that is, water rights would be converted to shares. Also, there would be flexibility to move groundwater in Diamond Valley, hence, uncoupling water from a place of use. The plan also proposes a Diamond Valley groundwater authority to administer and enforce the Plan. The Authority would be comprised of four individuals. The members would include the State Engineer or his deputy, a water manager (an employee of NDWR), a Federal Agency representative having groundwater management resource expertise, and a member from a state agency other than NDWR with groundwater resource management experience. And, a member of the Diamond Valley Groundwater Authority cannot have a financial interest in Diamond Valley groundwater. Jake Tibbitts stated mining rights that have an irrigation base right will be part of the system. He further added that the Diamond Valley Groundwater Management Plan Advisory Board’s Diamond Valley Groundwater Management Plan is based on lessons learned in Australia, but the Plan does not adopt the Australian Model. Commissioner Dahl asked if the Plan has buy-in from senior water right holders in Diamond Valley, and Jim Gallagher, an Authority member and a member of the Diamond Valley Groundwater Management Plan Advisory Board, said yes. Susan Joseph-Taylor then discussed the Sadler Ranch, LLC petition to the Nevada Seventh Judicial District Court to curtail groundwater pumping in Diamond Valley. On July 15, 2016 Nevada Seventh Judicial District Court Judge Gary Fairman issued an Alternate Writ of Mandamus on the Sadler Ranch case that commands the State Engineer begin the required proceedings to order curtailment of groundwater pumping in Diamond Valley on the basis of priority, or, the State Engineer is to show cause why he has not complied with the command. A show cause hearing was scheduled for November 21st and 22nd in the Eureka County Courthouse. Ms. Joseph-Taylor said the show cause hearing was moved to late January or early February, 2017. Ms. Joseph-Taylor also mentioned the State Engineer is currently determining the relative rights to all waters, both surface and underground, located within Diamond Valley. Ms. Joseph-Taylor then mentioned the State Engineer created a Humboldt River Working Group that is in the process of 1) drafting regulations that address the surface water/groundwater connection, and 2) figuring out if there is a conflict between groundwater pumping and surface water rights in the Humboldt River Basin, and if such a conflict exists, how to resolve it. She said a draft regulation will be available for public review the first quarter of 2017. She also said meetings are scheduled in the Humboldt River basin beginning January 2017 to inform the public on the status of the groundwater capture model, predicted water supply and other general information. Susan Joseph-Taylor then addressed the groundwater controversy regarding lithium mining in Clayton Valley. Lithium is mined from the brine aquifer in Clayton Valley. Ms. Joseph-Taylor said Clayton Valley hosts the only commercially producing lithium mine in North America, and there is significant interest on the part of a number of mining companies to mine lithium in Clayton Valley. She said the interest in mining lithium is due in large part to the high demand for lithium batteries. Ms. Joseph-Taylor said a water issue in Clayton Valley is the possible impact of additional lithium mining in Clayton Valley on existing water rights. Also, there has been a controversy over whether or not an exploratory bore hole is a well diverting groundwater; hence, requiring a permit from the State Engineer. Ms. Joseph-Taylor then provided information on the status of the Southern Nevada Water Authority applications to appropriate groundwater from rural Nevada in order to implement the SNWA Groundwater Development Project. On March 22, 2012 the State Engineer issued four rulings granting SNWA the right to pump up to 83,988 AF/Y of groundwater from four eastern Nevada valleys. The rulings were appealed, and on December 10, 2013 District Court Judge Robert Estes rendered a decision on the appeal. He ordered the rulings or orders be remanded to the State Engineer to address specific deficiencies. The State Engineer and SNWA appealed Judge Estes’s decision to the Nevada Supreme Court, and the Nevada Supreme Court ruled Judge Estes’s ruling was not appealable since the State Engineer’s four rulings were remanded back to the State Engineer. Ms. Joseph-Taylor said on September 14, 2016 the State Engineer held a status conference on Judge Estes’ ruling, and the State Engineer decided to reopen the hearing on the SNWA applications. She reported the hearing will start the last week of September 2017, and likely run into the first week of October 2017. Chair Eastley thanked Susan Joseph-Taylor for participating in the Authority meeting, and she also thanked Jason King, State Engineer, for his work with the Authority.

Presentation on A) The Purpose and Implementation of the California Sustainable Groundwater Management Act of 2014, and B) Issues Associated with Groundwater Basins Shared by Inyo County, California and the State of Nevada – Recommendation to receive a presentation from Bob Harrington, PhD, Director, Inyo County Water Department, on a) the purpose and implementation of the California Sustainable Groundwater Management Act of 2014, and b) issues associated with groundwater basins shared by Inyo County and Nevada. Chair Eastley welcomed Bob Harrington, Director of the Inyo County Water Department, to the meeting.