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Cedar City council splits over how much to pay driller after Martin’s Flat test well misses target
Summary
After the Martin’s Flat test well reached about 2,100 feet without hitting the target Navajo Sandstone, staff told the council continuing (including casing and further testing) could cost about $5.9 million; council directed staff to return next week and debated whether to pay a small abandonment fee (~$29k) or reallocate larger remaining funds requested by the driller.
City engineering staff updated the council on the Martin's Flat test well, reporting the driller had reached roughly 2,100 feet but had not encountered the Navajo Sandstone the project sought. Jonathan Stath, city engineering, said the formations encountered above the Navajo included gypsum and salt and that "everything we're seeing up above ... is, at least above the Navajo Sandstone, is we don't have good water quality." Stath advised that continuing—by casing and further testing—would be costly. "We're looking at about $5,900,000 just to case it and be able to ... run test," he said.
Councilmembers debated options. Several members urged stopping further drilling and putting the matter on next week's action agenda for a formal decision; that procedural motion passed to place it on next week's action calendar. Council then discussed a driller request to reallocate remaining contract funds to cover extra drilling time. Staff outlined the contract accounting: original contract ~$604,000 and amounts paid-to-date of roughly $270,000, leaving outstanding billable work of about $433,000; abandonment/capping costs for two wells were estimated in the $21,000–$29,000 range depending on scope. A majority of council expressed reluctance to reallocate the larger balance to cover contractor losses; several recommended authorizing only the abandonment/capping work (and paying the ~30k) and returning with a formal action item on cost allocation next week.
Council asked staff to secure required paperwork if the driller elects to cap the wells now and to bring a finalized recommendation and proposed motion for the next meeting.
