Norton council declines to waive readings on Norton Energy Storage mine amendment amid liability, inspection concerns

Norton City Council on Dec. 15 considered an amendment to an agreement with Norton Energy Storage LLC that would extend the period before a subsurface mine deed transfers to the city if no successful development occurs by the contract expiration.

Staff attorney Markey told the council the existing agreement would transfer the subsurface mine to the city by Dec. 31 if the developer had not completed a qualifying development; the proposed amendment would extend that deadline by one year to give more time for planning. Markey told the council the city currently does not own the mine and that NES, as owner, currently holds property liability and insurance responsibility.

Councilors pressed staff on several points: whether the city would receive the mine for $1 if the transfer occurs, whether NES retained liability before transfer and whether the city could obtain permission to inspect subsurface conditions. One councilor said residents who live near the property have had uncertainty about ownership for decades and urged the city to protect neighbors by taking control of the mine. Others warned the city could inherit unknown environmental and structural liabilities if it accepted the mine without an investigation.

Markey said the agreement’s recitals are background language and that NES, as property owner, currently carries the liability; he also said the council could seek written amendments only by mutual agreement with NES. He added that if the council did not pass related legislation before Dec. 31, title to the mine would transfer under the current schedule unless the council held a special meeting before year‑end.

A motion to waive the second and third readings of ordinance 1 19 20 25 (the NES amendment) failed on roll call when several members voted no, so the council did not adopt the amendment that night. Council members suggested next steps including trying to obtain insurance and inspection information from NES, seeking outside consultants if permission to investigate is granted, or proposing a shorter extension (for example, six months) while a study is arranged.

The council did not take further formal action on the amendment after the failed waiver. Staff advised that the transfer timeline remains unchanged by the failed waiver and that a special meeting before Dec. 31 would be necessary to alter the outcome by mutual agreement with NES.

What happens next: staff said they will follow up with NES about insurance information and explore whether investigative access to the subsurface can be obtained; any new proposed extension or amendment would return to council for additional readings and a formal vote.