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Hobbs approves five-year effluent reuse agreement with Excalibur Oilfield Services
Summary
The commission authorized a five-year agreement to sell treated effluent reuse water to Excalibur Oilfield Services for winter-season agricultural and oilfield use, specifying 1 million gallons per day minimum delivery and a paid monthly fee; commissioners approved the resolution unanimously.
The City Commission of Hobbs authorized a five-year agreement on May 19 to sell treated effluent reuse water to Excalibur Oilfield Services LLC for use on property south of Nadine and east of Keith Lane, with deliveries limited to the city's winter months and a minimum daily delivery target.
Tim Woomer, Hobbs' utilities director, said the contract would run five years, renewable for five additional years by mutual consent, and limit deliveries to September through April. He said the city intends to deliver a minimum of 1,000,000 gallons per day during those eight months and that additional water would be priced at $0.10 per 1,000 gallons. Woomer told the commission the proposed agreement would raise $9,000 per month during the eight-month delivery window, or $72,000 annually, before any additional-volume charges.
Woomer told commissioners that treated effluent from the wastewater reclamation facility is a disinfected, Class B product requiring a permit for application. "The effluent is what we're delivering and it's a high quality Class B product that does require a permit to apply," Woomer said. He added that the water is "not potable" and would require additional treatment to be used for human consumption.
Edgar Ontiveros, president of Excalibur Oilfield Services, was present and the city's staff said Excalibur has obtained the permitting required from the New Mexico Environment Department and engaged engineers to design the pipeline and appurtenances for delivery. Woomer told the commission the city currently discharges about 3,000,000 gallons per day from the treatment plant and that diversifying delivery points helps manage that volume.
Commissioner Calderon moved to adopt Resolution No. 76-19 authorizing the mayor to execute the agreement; Commissioner Mills seconded. The measure passed on a roll call vote with all commissioners and the mayor voting yes: Mills yes; Fields yes; Calderon yes; Penick yes; Girth yes; Mayor Cobb yes.
The agreement restricts water application to the winter months to protect existing delivery contracts (S & H Farms holds summer delivery priority) and requires Excalibur to maintain required permits and construct delivery infrastructure at its expense.
