Ethanol

I prepared a memorandum to our employees last week which was put in their pay envelopes. Here are my comments.
Given the amount of discussion on the Ethanol Plant, I thought I should give you an update of what I know about of the plans to build an Ethanol Plant in Concordia.
It was publicly announced September 8th that developers have acquired options to purchase a site identified east of Concordia and just south of the fairgrounds for the purpose of building the plant. Their plans depend upon availability of water.
In regard to the City’s involvement in the project, we have been asked to provide effluent from the Waste Water Treatment Plant. We may be involved with the supply of potable water to the plant but that will be using water resources that the developer is securing. The following paragraph was cited in the public announcement:
Everton Energy has retained Kansas’ leading ground water hydrologist and a Kansas water rights attorney. This project team will work closely with the City of Concordia in determining and securing appropriate and ample sources of water while maintaining or increasing the City’s current water rights cushion for its citizens and businesses. If the City can cost effectively provide the needed water to the ethanol plant, Everton Energy will request annexation of its ethanol plant property into the City limits of Concordia.
Those in the water department may recognize the ground water hydrologist as someone we have worked with for several years – Bob Vincent. Bob is a native Concordian and has state wide credentials and is well known for work done in Concordia in the past.
The other point in the announcement that needs reaffirmation is the intent of the developer to secure additional water capacity (which means above and beyond what we currently have) to meet the production requirements of the plant. Comments the developer has made in meetings here in Concordia indicate he intends to make sure the existing water situation is improved for the City.
I sat in a meeting last Friday with Bob Vincent and Keith Stewart, (Assistant Water Commissioner, DWR, Stockton office) where we talked about the ethanol developer looking for and securing water rights for his project. Several issues came up that were pertinent to the water issue

New water rights will be sought in the “Dakota formation.” It is the body of underground water outside the influence of the Republican River Basin. We heard from Vincent and DWR that NO MORE water can be pulled from the Republican River Basin

One of the more interesting facts I learned was that the Republican River is NOT contributing to the volume of water in the Republican River Basin, it is actually extracting it. Recharge come from flooding or high water flows following a rain storm.

Vincent said the water level in the Dakota formation is not falling. Contrary to what is happening in Western Kansas, water levels are staying fairly stable. The practice of taking water in Western Kansas is called “mining” or taking more than is being recharged. In Central and Eastern Kansas the practice is “harvesting” or taking what is being added back to the aquifer.

Once the additional water rights are secured and the plant is constructed, the City will annex the 160 acre property. It has been interesting hearing that the City’s intent is to annex a five mile radius around the town. This claim is so far fetched! The chief reason is that state statute requires that a utility plan be provided for a proposed annexation area if utilities are not already present. By the time annexation occurs, water, sewer and effluent systems will be in place. The rumor about the five mile radius is unreasonable because we cannot possibly afford to provide utility service nor has there been a feasibility study to determine whether any area has practical affordability.
The next step in our process to nail down this opportunity is to draft and have approved a development agreement with Everton Energy. The development agreement will outline the things the City will do or provide as well as what the developer will do or provide. Examples of things that could be included are water services and at what rate they will be paid, where we are in the fire protection process, a statement regarding annexation as well as other points.
This plant will have a positive impact on Concordia. I hope that in the process of seeing it develop, you will feel free to ask any question about the development. I will do my best in answering the questions.