MT. VERNON — The city will sell its treated waste water to Triple S. Water Supply LLC for use in coal mines in Hamilton County.
“They plan to sell the water to the mines, the new one and any others in Hamilton County,” explained City Manager Ron Neibert. “They will make a $9 million investment and put in a 17 miles water line from our plant to Hamilton County.”
The new company has two years to generate the contracts for the waste water with the mines, and to put in the distribution, under terms of the agreement which has been approved by the city.
Neibert said the city produces 3 million gallons per day of treated waste water, which is released into Casey Creek at this time.
“It’s now a valuable asset for us,” Neibert said. “Triple S Water Supply has a goal to provide treated waste water to three mines. The agreement is for them to purchase the water from us which will bring the city between $200,000 and $6,000 in new revenue per year.”
As negotiated, the company has two years to build the pipeline and to
get its contracts in place with the mines. During that time frame, the city will receive $5,000 per quarter from Triple S. Water Supply.
“There are no capital costs involved with this on the city’s part,” Neibert said. “We just continue doing what we are doing. If they get the contracts and the line put in, we receive money. If they don’t, we aren’t out any funds.”
In addition, the city is leasing the property where the company will put its pump and tap onto the treated waste water line.
Neibert said the agreement has been two years in the making.
“They approached us about two years ago, and we started doing research,” Neibert said. “In addition to mine uses, there are fracking uses for the treated waste water. If we choose to sell it for fracking, Triple S. has the right of first refusal, which would involve another contract for that purpose. This agreement only covers for the mines.”
The city will charge 50 cents per 1,000 gallons for the first million gallons of treated waste water; 55 cents per 1,000 gallons for the second million gallons and for the third million gallon and higher, the charge is 75 cents per 1,000 gallon.
The company is prohibited from selling the treated waste water to any other organization or to a water district under terms of the contract.
The agreement approved is for a term of 20 years.