Desert Developer's Woes Buffet Reid [Coyote Springs about 50 miles from Bundy's ranch]

Six years ago, Senate Majority Leader Harry Reid celebrated what he called a "love fest" of government support for the construction of a proposed 150,000-home community in the Nevada desert and the lobbyist-turned-developer behind it, Harvey Whittemore.

Last week, a federal grand jury charged Mr. Whittemore with making illegal political contributions to Mr. Reid, a Democrat. Even before the indictment, Mr. Reid and other politicians had begun to distance themselves from Mr. Whittemore—long one of Nevada's most powerful lobbyists—by pledging to charity money to offset donations they had gotten from him.

The allegations against Mr. Whittemore stem from a dispute over the project feted by Mr. Reid six years ago—Coyote Springs, a city of as many as 400,000 to be built about 60 miles north of Las Vegas. The venture collapsed amid the recession, sparking a legal battle between Mr. Whittemore and his former business partners.

The unraveling of Coyote Springs and Mr. Whittemore's legal troubles "touches every part of Nevada politics, Nevada economy and Nevada power society," said Eric Herzik, a professor of political science at the University of Nevada, Reno.

Mr. Whittemore's connections and ability to navigate Nevada's government helped as he shifted from lobbying in the late 1990s to undertaking the development of a new city in the desert that would need approvals and special provisions at county, state and federal levels.

Mr. Reid became aligned with the project, helping to pass through Congress in 2004 a measure to remove an easement for power lines on the Coyote Springs land, in effect freeing up land for the development. Mr. Reid's has said he supported Coyote Springs because it would benefit the state.

~~snip~~

"We were given bonuses or gifts and he asked that we would consider as a result making a donation," Ms. Mamer said. "He was very specific that you don't have to do it and nothing will happen if you don't do it. He would never ask anyone to commit a felony."

~~snip~~

The Los Angeles Times reported in 2006 that after an Environmental Protection Agency regional office expressed concerns about a federal permit the project was seeking, Reid staffers and Sens. Reid and John Ensign spoke with officials at the EPA about the project. Mr. Whittemore and the EPA separately worked out an agreement that offered more environmental protections, and the EPA withdrew its objections, the newspaper said. Mr. Reid's office then spoke in support of the Coyote Springs venture. His spokesman on Sunday declined to comment further on the EPA question.

The project later received an environmental award from the EPA.

Reid also had to do some dealing with the BLM on this:

http://www.blm.gov/nv/st/en/prog/planning/groundwater_projects/water_rights_home/coyote_spring.html

Coyote Spring Valley Water Rights

Background

Both the Southern Nevada Water Authority (SNWA) and Coyote Springs Investment, LLC (CSI) hold water rights applications in Coyote Spring Valley totaling 135,000 acre feet per year (afy). The Nevada State Engineer (NSE) held hearings on these applications in July and August 2001. In 2002 the NSE issued Order 1169. The Order held in abeyance carbonate-rock aquifer system groundwater applications pending or to be filed in Coyote Spring Valley and several adjacent basins. It also required the Las Vegas Valley Water District, SNWA, CSI, Nevada Power Company, and Moapa Valley Water District to participate in a study to pump a portion of the water rights over a specific timeframe. These entities have permitted water rights and/or pending applications in Coyote Spring Valley. The NSE typically issues Orders when insufficient information is available to make a ruling, and the Orders usually require the applicant(s) to provide additional data (such as pumping, monitoring, modeling, etc) prior to issuing a ruling. The study required by Order 1169 is on-going.

Terms of Order 1169

The agencies listed above are required to conduct a study to provide information on the effect of pumpage of those water rights which have already been issued from the carbonate-rock aquifer.
The study must cover a 5-year minimum period during which at least 50% of the water rights currently permitted in the Coyote Springs Valley groundwater basin are pumped for at least two consecutive years.
Stipulated Agreement

Prior to the hearings in 2001, the BLM, National Park Service, Fish and Wildlife Service, and SNWA negotiated a Stipulated Agreement. The Agreement had the common goal to manage the development of the carbonate aquifer as a water resource without causing unreasonable adverse impacts to the federal rights and resources. Groundwater and the effects of pumping will be monitored and managed to avoid adverse impacts within the Area of Interest. The parties also identified a need to conduct studies of the aquifer’s response to pumping stresses through incremental development of reasonable quantities of groundwater.

Stipulated Agreement Monitoring Plan

The Monitoring, Management, and Mitigation Plan was appended to the Coyote Spring Valley Stipulated Agreement (Exhibit A). The main points are summarized below:

Monitoring Requirements

SNWA is required to collect discharge and water level data at their production wells in Coyote Spring Valley.
SNWA, in consultation with the parties, is required to locate and construct additional monitoring wells.
SNWA will equip and maintain surface water measurement sites in the Muddy Springs Area, Jones Spring, Baldwin Spring, Pederson Springs, Plummer (Iverson Spring), Rogers Spring, and Blue Point Spring.
SNWA is required to conduct a detailed elevation survey of SNWA wells in the Muddy Springs Area, as well as develop and implement a plan to determine elevation of all major spring orifices and monitoring and production wells in the Muddy Springs Area, and Rogers and Blue Point spring complex.
SNWA will collect and analyze water quality samples for major ions at two surface water measurement sites in the Muddy Springs Area.
Links of Interest:

NSE Order 1169
Coyote Spring Valley Stipulated Agreement

http://www.blm.gov/nv/st/en/info/newsroom/state_office_news/2005/02/patent_issued_to_coyote.html

NEVADA STATE OFFICE NO. 2005-18
FOR RELEASE: February 18, 2005

PATENT ISSUED TO COYOTE SPRINGS

Reno, NV – In order to provide better habitat for desert tortoise, the Department of the Interior, Bureau of Land Management (BLM) issued a corrective patent on Feb. 18 to Coyote Springs Investment, LLC (CSI) for conveyance of public lands in southern Nevada. The lands in the patent are northeast of Las Vegas in Clark County. U.S. Highway 93 borders the lands on the west side.

The U.S. Fish and Wildlife Service (FWS) asked BLM in 2001 to consider a change in the lease boundary to maintain desert tortoise habitat connectivity with the Mormon Mesa Critical Habitat Unit, while allowing CSI to proceed with their planned development.

“The proposed adjustment will alleviate our immediate concerns relative to maintaining desert tortoise habitat connectivity within the Mormon Mesa Critical Habitat Unit,” said Bob Williams, field supervisor of the FWS office in Reno.

The initial conveyance under the Nevada Florida Land Exchange Authorization Act of 1988 conveyed 29,000 acres of public land to Aerojet-General Corporation to build facilities related to the MX missile. In addition, approximately 14,000 acres, which were surrounded by the private lands, were leased to Aerojet for an initial term of 99 years with a 99-year extension. Concerns about conservation of the desert tortoise and other wildlife values were the basis of the law’s direction to lease the lands in the core center of the area, rather than convey through a patent. CSI purchased the lands in 1996 and acquired the lease. The modifications of the leased and conveyed land at CSI through issuing the corrective patent is not likely to affect the desert tortoise or result in adverse modification of critical habitat.

A copy of the map showing the configuration of the private and leased lands is attached as in PDF format. Map attachment.

-BLM-

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