Yerington committee reviews proposed 500-acre-foot water lease to Libra Solar

On Jan. 5, 2026, the City of Yerington Public Works Committee reviewed a draft Water Lease Agreement under which the city would lease up to 500 acre-feet of water per year to Libra Solar LLC to support construction of the Libra Solar Project, a proposed 700-megawatt renewable-energy facility in Lyon and Mineral counties. The committee heard the written terms and supporting traffic plan and may forward a recommendation to the full City Council for consideration.

The draft agreement proposes a Reservation Fee of $1,250 per acre-foot annually (equal to $625,000 per year if the full 500 acre-feet is reserved), payable in advance in quarterly installments of $156,250. In addition, the lessee would pay a Pumpage Fee of $750 per acre-foot actually used, billed quarterly. The agreement conditions the parties’ obligations on approval by the State Engineer of one of three Change Applications (nos. 94666T, 94749 or 94750).

The document requires Libra Solar to meter any on-site wells at its expense and to provide monthly reports to the city specifying actual water used. It also caps reimbursement of the city’s third-party legal fees for drafting and related work at $20,000, subject to invoice support.

The lease includes a curtailment clause that allows the city to suspend the lessee’s use if the recorded water level in the city’s water reserves falls to 20 feet or less; the curtailment would remain in effect until reserves return to a standard operating depth of 30 feet. The agreement explicitly prioritizes the city’s residential water service over the lessee’s use in exigent circumstances. It also states that the leased water "may fall below drinking water standards" and that the city is not responsible for delivering water that meets any particular health or quality standard.

Term and termination provisions in the draft set the lease through June 30, 2028. Either party may terminate on one year’s written notice; the lessee may terminate on 90 days’ written notice after it has paid the Reservation Fee for the first four calendar quarters. The agreement permits Libra to assign the lease to an affiliate or to pledge it as collateral for financing, but prohibits assignments that would effectively resell, lease or wheel the city’s water to third parties.

An attached "Libra Solar Water Truck Traffic Plan" identifies two city access points for water: the city J-Stand northwest of the intersection of Alt 95 and Nevin Way (coordinates 38.996447, -119.116314) and a city fire hydrant south of Cremetti Lane between SR 208 and MacKenzie Lane (coordinates 38.953941, -119.150999). The plan lists two primary truck routes from each access point and indicates an aerial map will be provided.

The draft also specifies Nevada law as governing and designates the Third Judicial District Court in Lyon County for venue. It contains standard contract provisions on representations and remedies, including an express right for a prevailing party to recover attorney fees in litigation and a provision allowing the lessee to seek injunctive relief in certain circumstances.

The committee packet and the draft lease were posted in accordance with state open-meeting requirements; Michele Larson, Public Works Chief, certified the posting. The transcript of the meeting does not record any formal vote on the agreement. Any committee recommendation would proceed to the City Council for possible approval at a future public meeting.