Section 99-3-1405 - Gillette Madison pipeline project; definitions; description; purposes; authorization; finances; conditions(a) As used in this section: (i) "Commission" means the Wyoming water development commission;(ii) "Sponsor" means the city of Gillette, Wyoming;(iii) "Project" means the Gillette Madison pipeline project as described in subsection (b) of this section;(iv) "Account" means the Gillette Madison pipeline account into which all funds appropriated by this section shall be deposited. Funds in the account shall be reserved for the project. All unexpended funds appropriated by this section shall be transferred to the account. Source notes for subsection (a): (Laws 2009, Ch. 103, § 1; 2011, Ch. 61 § 1.)
Source notes for subsection (a): (Laws 2009, Ch. 103, § 1;.)
(b) Description: Design, groundwater exploration and drilling, permit procurement, project land procurement, construction engineering and construction of municipal wells, transmission pipelines, pump stations and appurtenances necessary to make the project function in the manner intended. Source notes for subsection (b): (Laws 2009, Ch. 103, § 1.)
(c) Purposes: The designated project purposes are municipal and rural domestic water supply. Source notes for subsection (c): (Laws 2009, Ch. 103, § 1.)
(d) General authorization: The following shall apply:(i) The commission shall contract with the sponsor for the design, groundwater exploration and drilling, permit procurement and project land procurement for the project in a manner consistent with this section and to administer the contract on behalf of the state of Wyoming;(ii) Upon execution of the contract outlined in paragraph (i) of this subsection, the sponsor may complete design, groundwater exploration and drilling, permit procurement and project land procurement for the project in a manner consistent with the terms and conditions outlined in the contract. Source notes for subsection (d): (Laws 2009, Ch. 103, § 1.)
(e) 2009 Project financing: The following shall apply: (i) 2009 Project budget: (A) Total project budget: Two hundred seventeen million six hundred thousand dollars ($217,600,000.00);(B) Partial budget authorized by this section: Sixteen million seven hundred fifty thousand dollars ($16,750,000.00).(ii) 2009 Project grant: The state of Wyoming shall grant to the sponsor from the budget reserve account through the commission for the design, groundwater exploration and drilling, permit procurement and project land procurement for the project an amount not to exceed eleven million two hundred twenty-two thousand five hundred dollars ($11,222,500.00) or sixty-seven percent (67%) of the actual costs, whichever is less;(iii) 2009 Project loan: The state of Wyoming shall loan to the sponsor from the permanent Wyoming mineral trust fund through the commission for the design, groundwater exploration and drilling, permit procurement and project land procurement for the project an amount not to exceed five million five hundred twenty-seven thousand five hundred dollars ($5,527,500.00) or thirty-three percent (33%) of the actual development costs, whichever is less, for a term of five (5) years from the date the commission determines project benefits accrue to the sponsor, at an annual rate of four percent (4%);(iv) 2009 Appropriations and funding: (A) There is appropriated from the budget reserve account to the commission eleven million two hundred twenty-two thousand five hundred dollars ($11,222,500.00) or as much thereof as is necessary to carry out the purpose of this section. Unexpended funds appropriated under this subparagraph shall revert to budget reserve account on July 1, 2015;(B) The state treasurer shall make available from the permanent Wyoming mineral trust fund to the commission five million five hundred twenty-seven thousand five hundred dollars ($5,527,500.00) or as much thereof as is necessary to carry out the purpose of this section. Source notes for subsection (e): (Laws 2009, Ch. 103, § 1; 2010, Ch. 115, § 1; 2011, Ch. 61, § 1.)
(f) General conditions: The following shall apply:(i) Except as otherwise specifically provided, the project identified in this section shall be subject to the following general conditions: (A) The sponsor shall offer security for the project loan as deemed adequate and acceptable to the attorney general;(B) The commission shall establish repayment schedules for project loans in accordance with the conditions prescribed in this section;(C) The sponsor shall establish a sinking fund for repair and maintenance of the project as deemed appropriate by the commission;(D) The sponsor shall supervise the design and construction of the project and submit all requests for payment to the commission for approval;(E) The sponsor shall not make any construction funding commitment until after the commission has reviewed and approved the construction budgets and construction plans;(F) The commission shall make payments directly to the sponsor;(G) The sponsor shall be responsible for operation and maintenance of the project;(H) The sponsor shall be responsible for all project expenditures in excess of the total project appropriation;(J) If the commission determines that the sponsor has, without good cause, abandoned completion of the project, the sponsor, in addition to being required to repay the loan, shall be obligated to immediately repay the full amount of all grant funds actually expended plus interest as established by the state auditor in an amount equal to the interest that would have accrued on the expended grant funds in the account from the date of expenditure;(K) Repayments of principal on the loan shall be deposited in the permanent Wyoming mineral trust fund and interest payments made in repayment of loans shall be deposited into the general fund;(M) There shall be no lease, sale, assignment or transfer of ownership of water from the project for purposes other than the designated project purpose without prior written approval of the commission and the state engineer or board of control. If such a transaction is approved, the revenues generated by the lease, sale, assignment or transfer of ownership of water from the project shall be utilized to retire principal on the project loan. After that loan is paid in full, the sponsor shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of water from the project equal to the percentage of the project loan and the state of Wyoming shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of water from the project equal to the percentage of the project grant;(N) There shall be no lease, sale, assignment or transfer of ownership of the project until the project loan is paid in full, and until prior written approval is obtained from the commission. If these conditions are met, the sponsor shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of the project equal to the percentage of the project loan and the state of Wyoming shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of the project equal to the percentage of the project grant. Before the sponsor may lease, sell, assign or transfer ownership of the project, the state of Wyoming shall be given a one (1) year first right of refusal option to purchase the sponsor's interest in the project for an amount equal to the principal, interest, maintenance and replacement costs incurred by the sponsor at the date the option is exercised;(O) After the project loan is paid in full, the sponsor may purchase the position of the state of Wyoming, as described in subparagraphs (K) and (M) of this subsection, for the amount of the project grant plus the interest that would have accrued on the grant amount in the account from the date the project was substantially completed as defined by the commission. The interest that would have accrued on the grant amount shall be established by the state auditor;(P) Any revenues generated by the state from the lease, sale, assignment or transfer of ownership of any project or project water shall be deposited in the account. Source notes for subsection (f): (Laws 2009, Ch. 103, § 1; 2011, Ch. 61, § 1.)
(g) General authorization: The following shall apply: (i) The commission shall contract with the sponsor for the construction engineering and construction of the project in a manner consistent with this section and to administer the contract on behalf of the state of Wyoming;(ii) Upon execution of the contract outlined in paragraph (i) of this subsection, the sponsor may complete construction engineering and construction for the project in a manner consistent with the terms and conditions outlined in the contract. Source notes for subsection (g): (Laws 2010, Ch. 115, § 1; 2011, Ch. 61, § 1.)
(h) 2010 Project financing: The following shall apply: (i) 2010 Project budget: (A) Total project budget: Two hundred seventeen million six hundred thousand dollars ($217,600,000.00);(B) Partial budget authorized by this section: Twenty-four million five hundred thousand dollars ($24,500,000.00).(ii) 2010 Project grant: The state of Wyoming shall grant to the sponsor from water development account III through the commission for the construction engineering and construction for the project an amount not to exceed sixteen million four hundred fifteen thousand dollars ($16,415,000.00);(iii) 2010 Project loan: The state of Wyoming shall loan to the sponsor from the permanent Wyoming mineral trust fund through the commission for the construction engineering and construction for the project an amount not to exceed eight million eighty-five thousand dollars ($8,085,000.00) or thirty-three percent (33%) of the actual development costs, whichever is less, for a term of five (5) years from the date the commission determines project benefits accrue to the sponsor, at an annual rate of four percent (4%);(iv) 2010 Appropriations and funding:(A) There is appropriated from water development account III to the commission sixteen million four hundred fifteen thousand dollars ($16,415,000.00) or as much thereof as is necessary to carry out the purpose of this section. From available surplus funds, the governor shall make a recommendation in the supplemental budget request to reimburse water development account III for any amount expended from that account for this project;(B) The state treasurer shall make available from the permanent Wyoming mineral trust fund to the commission eight million eighty-five thousand dollars ($8,085,000.00) or as much thereof as is necessary to carry out the purpose of this section. Source notes for subsection (h): (Laws 2010, Ch. 115, § 1; 2011, Ch. 61, § 1.)
(j) 2011 Project financing: The following shall apply: (i) 2011 Project grant: The state of Wyoming shall grant to the sponsor from the account through the commission for the construction of the project an amount not to exceed six million nine hundred sixty thousand four hundred thirty dollars ($6,960,430.00);(ii) 2011 Budget appropriation: The 2011 supplemental budget authorized a separate grant to the commission for the construction of the project from the state of Wyoming's share of abandoned mine land funds from the Surface Mining Control and Reclamation Act Amendments of 2006, section 411(h)(i) pursuant to 2007 H.R. 6111 in the amount of twenty-five million four hundred two thousand seventy dollars ($25,402,070.00) which shall be expended for the construction of the project;(iii) 2011 Project loan: The state of Wyoming shall loan to the sponsor from the permanent Wyoming mineral trust fund through the commission for the construction of the project an amount not to exceed fifteen million nine hundred thirty-nine thousand seven hundred thirty-nine dollars ($15,939,739.00), for a term of five (5) years from the date the commission determines project benefits accrue to the sponsor, at an annual rate of four percent (4%);(iv) 2011 Appropriations and funding:(A) There is appropriated from the general fund to the account for the commission six million nine hundred sixty thousand four hundred thirty dollars ($6,960,430.00) to carry out the purposes of this section. Unexpended funds appropriated under this subparagraph shall revert to the budget reserve account on July 1, 2017;(B) The state treasurer shall make available from the permanent Wyoming mineral trust fund to the commission fifteen million nine hundred thirty-nine thousand seven hundred thirty-nine dollars ($15,939,739.00) or as much thereof as is necessary to carry out the purposes of this section. Source notes for subsection (j): (Laws 2011, Ch. 61, § 1.)
(k) Continuing funding for fiscal years 2012-2014:(i) Additional project grants: From available surplus funds, the governor shall make a recommendation for the following funding levels for the project:(A) For fiscal year 2012 project grant: Thirty million dollars ($30,000,000.00);(B) For fiscal year 2013 project grant: Thirty million dollars ($30,000,000.00);(C) For fiscal year 2014 project grant: Twenty-five million seven hundred ninety-two thousand dollars ($25,792,000.00).(ii) Additional project loans: In the event that the legislature appropriates the project grant amounts set forth in paragraph (i) of this subsection from any source, the state of Wyoming shall loan to the sponsor from the permanent Wyoming mineral trust fund through the commission for the construction of the project the following loans, each for a term of five (5) years from the date the commission determines project benefits accrue to the sponsor, at an annual rate of four percent (4%):(A) For fiscal year 2012 project loan: Fourteen million seven hundred seventy-six thousand one hundred nineteen dollars ($14,776,119.00);(B) For fiscal year 2013 project loan: Fourteen million seven hundred seventy-six thousand one hundred nineteen dollars ($14,776,119.00);(C) For fiscal year 2014 project loan: Twelve million seven hundred three thousand five hundred twenty-two dollars ($12,703,522.00). Source notes for subsection (k):
Amended by Laws 2011 , ch. 61, § 1, eff. 2/22/2011.