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Officials update appropriations committee on NAS regional water project progress, timeline for lake-water delivery

2175504 · January 30, 2025
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Summary

Department of Water Resources officials told the Appropriations — Education and Environment Division that most NAS (Northern Area State) contracts are ongoing or complete, that delivery of lake water is expected once equipment delays and a permanent intake permit are resolved, and that the executive budget requests roughly $107 million for next

Department of Water Resources officials gave the House Appropriations — Education and Environment Division an update on the NAS regional water project’s construction, permitting and budget request tied to House Bill 1020.

Key point: the department said the NAS project has several major contracts complete or near completion and that lake-water delivery depends on finishing the Biota (biofilter) water-treatment work, completing procurement and construction work in the Snake Creek Pumping Plant, and finishing the discharge pipeline. Officials said temporary intakes will allow interim delivery but that a permanent intake requires an Army Corps 408/404 review and associated permits.

Sindhuja S. Palai Granoz, Water Development Division director at the Department of Water Resources, told the committee the NAS project will serve an estimated project area of about 81,000 people and that the city of Minot provides a 35% local share for NAS through a 1% sales tax. She said the final financing agreement between the State Water Commission and the city of Minot was updated and finalized in 2024.

Officials outlined the items remaining to deliver lake water to customers: completion of the Biota water treatment plant (delayed by manufacturing defects in a filter underdrain), procurement and installation of switchgear and variable-frequency drives for Snake Creek Pumping Plant contracts, and completion of the discharge pipeline testing and site restoration. When asked for a timeline, officials said they hoped to begin lake-water delivery in 2025 using a temporary intake and that the permanent intake could be bid and awarded in mid‑2025 if the Army Corps permit and public-notice steps proceed on schedule.

On budget, Granoz said the executive budget includes a request of roughly $107 million for NAS work in the coming biennium, comprised of $72.7 million from the resources trust fund, $52.1 million from the City of Minot sales-tax fund, and $4.22 million in federal MRNI funding (these numbers were presented in testimony as the department’s budget request components). With that request, she said the department expects to complete most remaining NAS contracts except for one Bayard (Bayer/Biota) water-treatment phase noted as still needing an additional phase.

The committee pressed the department on permit timelines for the permanent intake; Granoz said the Army Corps of Engineers missed a public-notice step and placed the permit review on hold, which may affect a May 2025 target and could shift the intake schedule. She emphasized that the temporary intake will allow lake-water delivery if the permanent intake is delayed, and that additional procurement delays (notably switchgear and drives) have pushed some equipment delivery dates.

The department also requested one full-time operator position for NAS operations; Granoz said the position would be paid from NAS water rates (not the resources trust fund) and argued the workload and number of facilities (38 facilities and more than 240 miles of treated distribution pipeline) justify the staffing addition for 24/7 operational coverage.

No committee votes were recorded during the update; members asked for continued coordination on Corps permitting, procurement delivery, and project timelines.