Kanosh officials discuss selling overflow water to geothermal developer

Town staff and councilors discussed a proposal from Zanskar, a geothermal energy firm seeking to test a potential site in Meadow, to buy overflow water from Kanosh for drilling.

A staff speaker introduced Zanskar’s proposal and said company representatives had met with town leadership to explain plans to map and drill a hot spot. The speaker said Zanskar may begin drilling in a few months and asked whether the town would be willing to sell overflow water for the drilling process. "They... met with us to ask if we'd be willing to sell water to them for their drilling process," the introducing speaker said.

Staff and council members raised operational concerns. One staff member told the council that the town currently sits near the margin between having overflow and not, noting cemetery and ball‑field sprinkler use affects whether overflow is available. The same staff member recommended establishing a bulk‑water rate if the council intends to sell water in future. Council members also asked whether a public hearing or rate change would be required before selling municipal water; staff responded that a public hearing might be needed depending on the approach and that the town had sold water in the past but would need to confirm rate procedures and any required notice.

Potential revenue discussed in the meeting was substantial relative to other items: a staff member estimated proceeds on the order of $50,000 for the amount the company requested. Council members generally said they would not act immediately: they preferred to wait until the company confirmed timing and the town assessed overflow availability and rate-setting requirements. No motion or vote occurred at this meeting.

Next steps: staff will verify whether a bulk water rate exists or must be set, confirm whether a public hearing is required, and wait for the company’s timeline before bringing a formal proposal back to the council.