The Cheyenne Public Services Committee on Nov. 17 recommended that the City Council adopt a resolution authorizing an outside-user water service agreement between the Cheyenne Board of Public Utilities and Wyoming Kingold Mining Company, allowing the company to purchase water from Crystal Reservoir.

Frank Strong of the Board of Public Utilities said a prior plan to develop a well field and pipeline became infeasible due to cost and easement issues; the new agreement would let the mining company purchase treated water directly from Crystal Reservoir for construction and operation of the mine. Strong said the clause preventing curtailment that existed in an earlier draft was removed; Kingold would be subject to curtailment like other customers if the system is constrained. The city is working to secure additional water rights, Strong said.

On pricing and fees, Strong told the committee the outside user would pay 1.5 times the raw-water rate. He estimated the system-development or tap fee in the range of $5 million to $6 million (he stated the figure from memory and offered to verify the exact number). Committee members asked whether the tap fee would fund infrastructure for the mine's projected 600 gallons-per-minute demand; Strong said the mining company is required to construct the infiltration gallery, pump station and pipeline and that the system-development fee paid to the city would be reserved for system expansion (purchasing water rights, increasing treatment capacity, transmission mains or storage), not to pay for the mine's private infrastructure.

Committee members asked about post‑mining mitigation and Strong said he would confirm whether the agreement contains clauses requiring restoration to pre‑mining condition prior to City Council consideration.

A motion to approve the resolution carried in committee and the matter will be forwarded to the City Council for final action.