State struggles to get Alkali Creek Reservoir project back on the rails

The Wyoming Water Development Office asked for and received a one-year extension on their designer’s contract for the heavily delayed Alkali Creek Reservoir project in Hyattville, but the Select Water Committee expressed failing confidence during their Nov. 4 meeting.

“The truth is, I think we ought to be pushing to go faster, not slower,” said Sen.  Ogden Driskill, R – Campbell, Crook and Weston counties. He continued to support the contract extension but pointed out that nearly all the WWDO projects – West Fork Dam in Carbon County is also in the hot seat – had doubled in cost and lawmakers were contributing to inflation by allowing them to continue. 

Alkali Creek Reservoir was originally proposed at $35 million in 2017, a third of the $113 million it was estimated at last year. In September, WWDO estimated the 2025 price would be around $80 million. 

The legislature has only earmarked $59 million for the project’s construction. 

“That’s not enough money, we know that,” WWDO Director Jason Mead told the committee. After receiving a reversion date extension earlier this year, the project will now expire in July of 2026. This session, Mead said he planned to ask for an extension until July 2027 to acquire necessary funds and easements. 

WWDO will also seek $1.5 million more to investigate option agreements for holdout landowners that have declined signing easements for the project. Designer Trihydro already completed 50% of designs for the original project, but now, with the state throwing in the options of a ditch-to-pipe approach, pivots, and stock watering on adjacent BLM lands to entice holdouts, they need a rewrite. 

“Assuming the legislation approves that additional money for Trihydro’s design, next year we would complete the design work on all the mitigation projects, get that stuff lined up, and the final design on the dam itself. Then we would know how much we are short with the $59 million Level 3 construction money,” Mead said. 

The project would need the 2027 legislature to allot more funding. It wouldn’t be bid out until 2028. 

On top of funding issues, the state currently only has permission to build on about 86% of property lining the affected length of Anita Ditch. About $1.4 million has already been spent on easements and land acquisitions and $5 million on planning, permitting and design work. 

WWDO has maintained their promise to farmers to fund all but $2.1 million, which will be covered by an estimated 33 landowners over the period of a 50-year loan to the Nowood Watershed Improvement District.

“In general, I’m cautiously optimistic that we’ll be able to come to an agreement with those different landowners,” Mead said. “I think the key is that when we put together option agreements that we have enough detail in those that includes the things we’re talking about with each landowner, if they feel comfortable with that. We’ve at least got verbal feedback that if all those things can happen, then they’re willing to sign option agreements when they’re put in front of them.”

Committee members expressed frustration at being “held hostage” by a minority of landowners. NWID, the group facilitating easements, has previously stated they will not use eminent domain to complete negotiations. 

“We’ve been doing this since 2017; we keep extending this contract because we’re being held subject to these people’s demand that they want to have (the ditch) put into pipe… So my first question is, what is the $1.5 million that we’re going to see next?” committee member Liisa Anselmi-Dalton asked. 

She added that she would vote yes on this $1.5 million, but the next would likely be a no.