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Proposed Protocol Demonstrating the Presence, or Absence, of Adverse Aquifer Impact to Senior Water Right Holders Resulting from Ralph Naylor Farms, LLC Groundwater Withdrawal September 15, 2004 BACKGROUND The Cities of Moscow, Idaho and Pullman, Washington (PROTESTANTS) protested Idaho Department of Water Resources (IDWR) application for water right (IDWR Application Number 87-10022, Ralph Naylor Farms LLC) on October 18 and 21, 2002, respectively. Pursuant to IDWR protest acknowledgement letters, the PROTESTANTS, joined by Palouse Basin Aquifer Committee (PBAC), met with Ralph Naylor Farms LLC (APPLICANT) on several occasions attempting to resolve the protests. During initial discussions, APPLICANT described interest in utilizing supplemental water sources such as reclaimed water and impounded surface runoff. PROTEST ANTS agreed that these supplemental water sources hold promise for additional water supply for the Palouse, but acknowledged that developing these potential water supplies is not practical at this time. Both agreed that progress towards developing supplemental water supplies for the Palouse should continue and that evaluation of groundwater extraction was the most practical approach for APPLICANT at this time. APPLICANT has detailed the need for making the family farm financially viable. PROTEST ANTS have described their need for providing stewardship relative to regional groundwater resources. PROTESTANTS and APPLICANT acknowledge that any APPLICANT actions that harm senior water right holders likely preclude APPLICANT from obtaining a right for appropriating groundwater. PROTEST ANTS detailed their desire for creating a science based approach to evaluating groundwater response to APPLICANT pumping. APPLICANT and PROTESTANTS agree that a consistent, unbiased science based protocol will be a valuable tool for evaluating this and future water right applications. As a direct result from these discussions, the PROTESTANTS have prepared this protocol for APPLICANT and IDWR process consideration. OBJECTIVE It is the objective of the PROTESTANTS, through this protocol, to describe the process wherein the applicant shall demonstrate the presence, or absence, of adverse impact to senior water right holders resulting from APPLICANT groundwater pumping regardless of the proposed volume of withdrawal. It is presumed that establishing connectivity between APPLICANT groundwater pumping and area senior wells is sufficient demonstration of probable adverse impact. Providing connectivity is not established between APPLICANT groundwater withdrawal and area senior wells, it is presumed that APPLICANT will proceed with obtaining a water right pursuant to IDWR process. 2004-45 ---PAGE BREAK--- NAYLOR protocol September 15, 2004 Page2of5 PROTOCOL DESCRIBED Where possible, action items appear in chronological sequence: I. NOTICE OF ACTIVITIES: APPLICANT shall notice PROTEST ANTS fourteen (14) days prior to any field and testing activities, including drilling and test pumping, and shall coordinate data collection with PROTESTANTS. 2. WELL SITING: APPLICANT shall drill a well on APPLICANT property of sufficient diameter so that production pump testing can take place. If multiple wells are being considered for installation under this water right application, the most southwesterly well shall be installed first. The location of the well shall be determined by APPLICANT considering comments by PROTESTANTS and/or their agents. 3. WELL COMPLETION: The APPLICANT shall select a qualified driller with demonstrated experience of installing wells with specifications similar to the APPLICANT's welL The well shall be continuously cased to the top of the production zone and cemented into place. Well termination will be determined by APPLICANT considering input from PROTESTANTS. The well shall be constructed and sealed pursuant to current Idaho construction standards. A hydrogeologist licensed for practice in the State of Idaho shall provide oversight of all drilling activities to ensure compliance with this protocol and applicable regulations. 4. WELL LOGGING: APPLICANT shall provide PROTESTANTS the opportunity to observe well construction. APPLICANT shall provide for cuttings sampled and recorded for each change in strata and at every five feet of well depth. Additionally, APPLICANT shall conduct supplemental well logging by a geologist licensed for practice in the State ofldaho, including but not limited to: lithologic and geo-physical logs. 5. PUMPING TEST PLAN: PROTESTANTS shall develop a pumping test plan (PLAN) including specific protocols step-rate test parameters, pumping rate, duration, observation wells, etc.) and monitoring device specifications. The pumping test shall be conducted at a rate of no less than 90% of the well capacity. The PLAN will also specify the schedule of the pumping test, which is anticipated to be restricted to periods of low municipal demand. PLAN may include all area wells and senior water right holders, utilizing well information supplied by others. The PROTESTANTS anticipate that up to 10 area wells (single family residential) shall require monitoring during various aspects of protocol implementation. The exact number of wells will be specified in the PLAN. APPLICANT shall solicit assistance from the PROTESTANTS in assessing local well monitoring needs. PROTESTANTS and APPLICANT shall share the cost of deploying PLAN. APPLICANT shall be responsible for area well monitoring and PROTESTANTS shall be responsible for monitoring senior water right locations wells operated under administratively issued water rights). PROTESTANTS define senior water right locations (SWRL) as being minimally identified by wells currently managed by the following water right holders: City of Moscow, City of Pullman, University of Idaho and Washington State University, administratively issued water rights, and ---PAGE BREAK--- NAYLOR protocol September 15, 2004 Page 3 of5 beneficial use groundwater rights located in Latah County. APPLICANT shall solicit for PLAN thirty (30) days ahead of well test pumping. Once PLAN is deployed, APPLICANT's well shall be production test pumped. 6. WATER QUALITY SAMPLING: APPLICANT shall provide the opportunity for PROTESTANTS to collect water quality samples during the pumping test. APPLICANT shall install a water tap on the pumping test discharge pipe that shall allow the collection of unaerated samples. PROTEST ANTS shall conduct sample collection and perform desired analysis. PROTEST ANTS shall provide analytical results to APPLICANT. 7. DEFINITION OF CONNECTIVITY: Connectivity between the APPLICANT well and SWRL shall be established under the following conditions: a) There is a measurable change in water levels in SWRL wells in response to pumping of the APPLICANTS wells; or, b) There is a measurable change in water levels in APPLICANT wells in response to pumping of SWRL wells. PROTEST ANTS acknowledge that if preliminary connectivity is determined to exist between APPLICANT well and City of Palouse, PROTESTANTS and City of Palouse will consult on the appropriate course of action and/or response to IDWR. 8. PUMPING TEST ANALYSIS: After the APPLICANT well has been test pumped, the APPLICANT and PROTEST ANTS shall evaluate data from PLAN. If connectivity is established between the APPLICANT well and SWRL, APPLICANT shall withdraw any further application for water. 9. ONE YEAR PASSIVE MONITORING: If connectivity between the APPLICANT well and SWRL is not established from the initial pumping test, APPLICANT well shall be fitted with continuous recording devices. APPLICANT well shall be placed into remote data collection mode for a period up to one year. During this period, SWRL shall be test pumped in coordination with APPLICANT well and the data archived. The cost of data collection and management at APPLICANT well shall be borne by APPLICANT. The cost of data collection and management at SWRL shall be borne by PROTESTANTS. If connectivity is established between the APPLICANT well and SWRL, APPLICANT shall withdraw any further application for water. ---PAGE BREAK--- NAYLOR protocol September 15,2004 Page 4 ofS 10. LONG TERM MONITORING: Providing connectivity between APPLICANT well and SWRL during the one year pumping test is not determined, PROTESTANTS shall notify IDWR of said finding and request a determination regarding any future pumping from the site. PROTESTANTS will develop a long term monitoring plan for consideration by IDWR as a condition of a permit, should one be issued. Parameters of the plan will include data collection and management. If a permit is issued and connectivity between the APPLICANT well and SWRL is subsequently established, this shall form the basis for PROTESTANTS requesting cancellation of the permit to IDWR. II. TECHNICAL REVIEW: In the event of disagreement between the APPLICANT and PROTESTANTS on the analysis and interpretation of the data, and/or determination of connectivity or lack of determination of connectivity, an independent technical reviewer shall be retained to provide a professional opinion. The independent technical reviewer shall be mutually selected by the APPLICANT and PROTEST ANTS, and shall be registered for professional practice of geology in the State of Idaho. The cost of independent technical review will be shared equally between the APPLICANT (50%) and PROTESTANTS In the event that APPLICANT and PROTESTANTS cannot agree on the independent technical reviewer, IDWR shall make a recommendation to the parties involved. 12. ARBITRATION: In the event PROTESTANTS and APPLICANT cannot agree on the interpretation and or the application of this protocol (excepting Section 11 the parties agree to binding arbitration pursuant to the following conditions: the parties will agree to a single arbitrator who will make a binding decision. If PROTESTANTS and APPLICANT cannot agree on the arbitrator, PROTESTANTS shall select an arbitrator of PROTESTANTS choice and APPLICANT shall select an arbitrator of APPLICANT'S choice and thereafter the parties respective arbitrators shall select a third arbitrator. The panel of three arbitrators shall then issue a decision that binds the PROTESTANTS and APPLICANT. Approved and Accepted: Ralph Naylor Farms, L.L.C. By: City of Moscow By: ---PAGE BREAK--- NAYLOR protocol September 15, 2004 PageS of5 City of Pullman By: By: