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Hutchinson approves $10 million contract to acquire Sunoco water rights and place them in conservation bank
Summary
After months of due diligence that included water‑quality testing and legal and technical review, the council approved a $10 million purchase of Sunoco’s water rights; staff will transfer rights into the state Division of Water Resources conservation bank to protect them and to allow future municipal use.
The Hutchinson City Council voted Dec. 16 to approve a contract to purchase Sunoco’s water rights for $10,000,000 and to work with the Kansas Division of Water Resources (DWR) to move the rights into the conservation bank upon transfer.
Erin Patterson, project manager with the utilities group, summarized the city’s due diligence: test sampling of multiple Sunoco wells and nearby irrigation wells, regulatory discussions with KDHE and DWR, and title review by outside water‑rights counsel. Patterson said Sunoco’s water rights are “in good standing” and that because the rights were previously industrial they are eligible for a 100% conversion to municipal use.
Patterson told council KDHE informed staff the existing Sunoco well infrastructure would not be permitted as municipal supply without reconstruction and that the city does not need to acquire Sunoco’s physical well infrastructure to acquire the water rights. The city’s plan is to own the rights and, when needed, drill municipal wells in acceptable locations and treat the water at the existing treatment facility; staff confirmed lab tests showed water quality that the city could treat.
Technical and legal advisors (including consultant David Barfield and outside counsel) confirmed that the rights could be transferred and that DWR supports placing acquired rights in the conservation bank to protect against non‑use claims and to allow staged withdrawals for future municipal growth.
The council approved a motion to execute the purchase contract and authorized the mayor to sign all necessary documents to close the transaction. Staff emphasized the transaction had been budgeted across multiple years in the capital plan and said moving the rights into the conservation bank will allow Hutchinson to “store” the water rights and perfect additional unperfected rights as the city grows.
Next steps: city staff will close the purchase, work with DWR to move rights into the conservation bank, and plan for future well siting and potential conversions when additional municipal demand arises.
