The Cheyenne City Council on Nov. 24 approved an outside-user water service agreement between the Board of Public Utilities and Wyoming Kingold Mining Company Inc. Council considered a substitute amendment that adds remediation requirements obligating the mining company to remove or remediate improvements at the end of the lease term unless the Board of Public Utilities elects otherwise.

Frank Strong of the Board of Public Utilities described the substitute amendment as reflecting committee comments; council members said the PPU board had approved the change and the amendment passed before council’s final approval. Council discussion noted the agreement’s estimated term of 10 to 12 years and that proponents expect it to generate hundreds of jobs and revenue for the city and region while including protections for ratepayers.

Several council members expressed general reservations about outside-user agreements but supported this particular deal because the substitute makes the remediation obligations and restrictions reciprocal. The council approved the agreement as amended by voice vote.

Staff noted that the city previously considered alternate pathways when easements were not secured for the original plan to serve the mine, including use of Crow Creek/Crystal Reservoir water through an outside-user arrangement. The agreement will move to implementation by the Board of Public Utilities with the added remediation condition.