Northwest Pipe Co. is major supplier for the Southern Delivery System #ColoradoRiver

Southern Delivery System construction celebration August 19, 2011 via The Pueblo Chieftain
Southern Delivery System construction celebration August 19, 2011 via The Pueblo Chieftain

From The Denver Post (Aldo Svaldi):

Orders at the Northwest Pipe Co. plant in Denver were drying up in 2010 when bid requests started coming for a massive water project linking the Pueblo Reservoir and Colorado Springs called the Southern Delivery System.

“The start of the SDS project couldn’t have come at a better time,” Northwest’s vice president of sales Eric Stokes said.

At a cost of $841 million, the water project is the largest the region has seen in decades. Starting in 2016, it will pipe water held in the Pueblo Reservoir to consumers in Colorado Springs, Pueblo West, Security and Fountain.

“This is our water security for many years to come, 50 years into the future,” said John Fredell, program director of the water services division for SDS.

Northwest Pipe’s Denver plant won almost all the contracts to supply 50 miles of steel pipe, and the company celebrated the completion of the last piece Thursday afternoon. Northwest produced 7,000 pieces of the pipeline, each averaging 50 feet in length and 66 inches in diameter. The orders allowed Northwest’s employment in Denver to grow from 116 full-time workers to more than 231 at the peak of manufacturing.

Of about $500 million spent so far on the project, $359 million has gone to 333 Colorado businesses, including more than 75 based in metro Denver, Fredell said.

Northwest Pipe alone received about $110 million, including $23 million spent on payroll. Given that the next closest competitor was in California, Stokes said Northwest had a distinct advantage.

“Proximity was part of it,” Fredell said.

Back in 1997, Northwest Pipe, which is based in Vancouver, Wash., acquired Thompson Pipe & Steel Co., a manufacturer with Denver roots going back to the late 1800s. For decades, Thompson built pipes in the Curtis Park area that continue to help move water across much of the state. Thompson moved its plant to a 45-acre facility at 6030 Washington St., where workers continued to convert steel coil arriving by rail car into water pipes shipped out on trucks.

Once formed, the pipes are pumped full of water and pressure-tested to ensure there are no leaks. They are moved into a cavernous ⅛ – mile-long warehouse where they are rotated rapidly while concrete is poured inside to make a lining designed to last for decades. In a third building, the pipes are primed, painted and prepared for shipping.

“It is nice to know you have finished on time,” said Jason Cheng, a welder from Westminster who joined Northwest in October to work on the SDS order.

Cheng and other workers lined up to sign the last piece of pipe, undeterred as the rain poured down Thursday afternoon. Their signatures, in white ink, quickly smeared down the bright-blue pipe.

“We want the water on the inside of the pipe, not the outside,” one person commented.

From the Denver Business Journal (Cathy Proctor):

Northwest Pipe, (Nasdaq: NWPX) is based in Vancouver, Washington. Its Denver manufacturing plant had a $110 million contract to build the project’s 50 miles of pipeline to carry the water. It was the biggest contract for materials under the project.

Northwest Pipe started making its 50-foot sections of pipe for the project, each section 66 inches in diameter, in 2011.
And the last pieces are now coming off the manufacturing line and awaiting a truck for transport to the project site.

“This is one of the largest programs that we’ve seen,” said John Moore, manager of Northwest Pipe’s manufacturing plant at 6030 N. Washington St. in north Denver.

During peak production, as many as 25 trucks a day left Northwest Pipe’s manufacturing facility.
Being in Denver meant trucking costs were less and Northwest Pipe could submit a more competitive bid for the project, Moore said.

And the project meant jobs for Northwest Pipe, which ramped up to 231 people during peak production, from a low of 116 people prior to work on the project, said John Moore, the plant manager. The company currently has 131 people on staff.
Northwest Pipe, which supplies pipes to carry water and waste water, has delivered pipes to other big water providers, including Denver Water and Aurora.

More Southern Delivery System coverage here.

The Southern Delivery System has been a long time coming

Southern Delivery System route map -- Graphic / Reclamation
Southern Delivery System route map — Graphic / Reclamation

Here’s part one of an in-depth look at the Southern Delivery System from John Hazlehurst writing for the Colorado Springs Business Journal. Click through and read the whole article. Here’s an excerpt:

Contending that the denial [of Homestake II] had been arbitrary and capricious, the two cities [Aurora and Colorado Springs] appealed the decision to the courts. In a comprehensive description of the city’s water system and possible future sources of supply given to City Council in 1991, CSU managers said that “extensive litigation is expected to continue.”

Denied by the Colorado Court of Appeals and the Colorado Supreme Court, the cities appealed to the U.S. Supreme Court, which declined to hear the case.

City officials were stunned. They couldn’t believe that a coalition of Western Slope “enviros” and ski towns had prevented them from developing water to which the city had an undisputed right. They had believed the Environmental Protection Agency’s 1990 decision to scuttle Denver’s proposed Two Forks Dam near Deckers on the South Platte River was an outlier, not a sign of things to come…

Slow to recognize that mountain communities now had the power to kill their water development plans, Utilities officials looked at another alternative. Instead of taking water directly from the wilderness area, the city proposed to build a dam on the mainstem of the Arkansas at Elephant Rock, a few miles upstream of Buena Vista.

A grassroots rebellion against the project was soon evident, as hand-lettered signs appeared along U.S. Highway 24, which parallels the Arkansas. The signs carried a simple message: “Don’t Let Colorado Springs Dam this River!”

It soon became clear that Chaffee County commissioners would not issue a construction permit for any such project, dooming it before the first planning documents were created…

If trans-mountain diversions or dams on the Arkansas were no longer feasible, that left a single alternative for developing the city’s water rights. CSU would have to let its water flow down to Pueblo Reservoir, construct a diversion structure on the dam, and pump it uphill to Colorado Springs.

It would be, water managers believed, the easiest project to build and permit.

“It was just a pipeline,” said CSU water resources manager Gary Bostrom, who has worked 35 years for Utilities. “What could go wrong?”[…]

“We didn’t really understand the importance of partnering with and involving the public in decision-making,” said [Gary Bostrom], “until the Southern Water Project.”[…]

The plan for the Southern Delivery System was presented to City Council in 1992. Among the material submitted to councilmembers was a comprehensive description of the city’s existing water system. Water managers made sure Council was aware of the importance of the task before them.

“The massive scope of this project,” CSU staff noted, “requires a very long lead time to allow for complexities of numerous permitting processes, land acquisition, litigation, design, financing and construction.”

Of all the variables, CSU managers and elected officials gave the least weight to those that may have been the most significant…

“We weren’t worried about hydrology,” said Bostrom. “The years between 1980 and 2000 were some of the wettest years on record. The water was there for the taking. Shortages on the Colorado weren’t part of the discussion.

“We knew about the Colorado River Water Compact of 1922 (which allocated Colorado River water between Mexico and the upper and lower basin states), but it wasn’t something we worried about.”

Then as now, 70 percent of the city’s water supply came from the Colorado River. SDS would tap the city’s rights on the Arkansas, diversifying the portfolio.

“We have to plan for growth,” said Bostrom. “That’s what history tells us. We know that it will be expensive, but the cost of not building a system well in advance of need would be much greater. People complained about the cost of the Blue River (trans-mountain diversion) project in the 1950s, but we wouldn’t have a city without it — we wouldn’t have the Air Force Academy.”

But even as the project moved slowly forward, the comfortable assumptions of a wet, prosperous future began to unravel.

“Exactly 15 years ago today (April 29, 1999),” said Bostrom, “we were in the middle of a flood — remember? We didn’t know it, but that was the day the drought began.”

More Southern Delivery System coverage here and here.

“…we have a lot of communities on a diminishing aquifer” — Eric Hecox

rueter-hessplans

From The Denver Post (Steve Raabe):

The shimmering surface of Rueter-Hess reservoir seems out of place in arid Douglas County, where almost all of the water resources are in aquifers a quarter-mile under ground.

Yet the $195 million body of water, southwest of Parker, is poised to play a crucial role in providing water to one of the fastest-growing metropolitan areas in the U.S.

As recently as a few years ago, developers were content to tap the seemingly abundant Denver Basin aquifer to serve the thousands of new homes built each year along the southern edge of metro Denver.

But a problem arose. As homebuilding in Douglas County exploded, the groundwater that once seemed abundant turned out to be finite. Land developers and utilities found that the more wells they drilled into the aquifer, the more grudgingly it surrendered water.

“Now we have a lot of communities on a diminishing aquifer,” said Eric Hecox, executive director of the South Metro Water Supply Authority, a consortium of 14 water suppliers that serve 300,000 residents.

As water pressure in the Denver Basin steadily declines, developers and water utilities that rely on the aquifer are being forced to drill more wells and pump harder from existing wells.

Enter Rueter-Hess. The massive storage facility — 50 percent larger in surface area than Cherry Creek reservoir — aims to help developers wean themselves from groundwater by shifting to other sources.

The reservoir anchors a multifaceted water plan for the south metro area that includes the purchase of costly but replenishable surface water, reuse of wastewater and a greater emphasis on conservation.

Douglas County, long a magnet for builders enticed by easy access to Denver Basin aquifers, is taking the water issue seriously.

A new proposal floated by the county government would give developers density bonuses — up to 20 percent more buildout — for communities that reduce typical water consumption and commit to using renewable sources for at least half of their water.

“In the past, the county had not taken an active role in water supplies because groundwater was sufficient,” said Douglas County Commissioner Jill Repella. “But we understand that we cannot continue to be solely reliant on our aquifers. What we’re doing today will help us plan for the next 25 years.”

Parker Water and Sanitation District launched construction of Rueter-Hess in 2006 and began gradually filling the reservoir in 2011, fed by excess surface and alluvial well flows in Cherry Creek.

Partners in the project include Castle Rock, Stonegate and the Castle Pines North metropolitan district. Parker Water and Sanitation district manager Ron Redd said he expects more water utilities to sign on for storage as they begin acquiring rights to surface water.

The chief source of new supplies will be the Water Infrastructure and Supply Efficiency partnership, or WISE, in which Denver Water and Aurora Water will sell an average of 7,250 acre-feet a year to 10 south-metro water suppliers beginning in 2016. Most of them are expected to purchase storage for the new water in Rueter-Hess. An acre-foot is generally believed to be enough to serve the needs of two families of four for a year

Parker Water and Sanitation also is exploring ways to develop recreational uses at the dam — including hiking, camping, fishing and nonmotorized boating — through an intergovernmental agreement with other Douglas County entities.

Even three years after opening, the reservoir’s stored water has reached just 13 percent of its 75,000-acre-foot capacity. Yet Rueter-Hess is the most visible icon in Douglas County’s search for water solutions.

At stake is the ability to provide water for a county that in the 1990s and early 2000s perennially ranked among the fastest-growing in the nation. The number of homes in Douglas County has soared from 7,789 in 1980 to more than 110,000 today, an astounding increase of more than 1,300 percent.

The building boom slowed after the 18-month recession that ended in June 2009. Growth rates that had reached as high as 10 percent to 15 percent a year during the 1990s ratcheted down to about 1 percent to 2 percent.

But as the economy has begun recovering, Douglas County is once again “seeing high levels of demand” for new residential development, said assistant director of planning services Steve Koster.

One of the biggest Douglas County projects in decades is Sterling Ranch, a proposed community of 12,000 homes south of Chatfield State Park.

The 3,400-acre ranch sits on the outer fringes of the Denver Basin aquifer, making it a poor candidate for reliance on the basin’s groundwater.

As a result, the project developer will employ a mixed-bag of water resources, including an aggressive conservation and efficiency plan; surface-water purchases from the WISE program; well water from rights owned by Denver billionaire Philip Anschutz; and a precedent-setting rainwater-collection program.

Sterling Ranch managing director Harold Smethills described the Rueter-Hess concept as “brilliant,” even though his development has not yet purchased any of the reservoir’s capacity.

“You just can’t have enough storage,” he said.

More Rueter-Hess Reservoir coverage here and here. More Denver Basin Aquifer System coverage here.

Pure Cycle Corporation Announces Second Fiscal Quarter 2014 Financial Results

waterfromtap

Here’s the release from Pure Cycle Water:

Pure Cycle Corporation (NASDAQ Capital Market: PCYO) today reported financial results for the six months ended February 28, 2014. Basic and diluted loss per share decreased 38% from a loss of $.08 per share in last year to $.05 per share this year.

“During the second quarter we continued to see our business grow and develop driving long- term shareholder value” commented Mark Harding, President of Pure Cycle Corporation. “We are very excited to have record water sales and deliveries and are continuing to add value to our Company through monetizing our valuable water assets.”[…]

Revenues increased approximately 51% during the our six months ended February 28, 2014 compared to our six months ended February 28, 2013 primarily as a result of increased water sales used for fracking.

More infrastructure coverage here.

Noble Energy looks to the Denver Basin Aquifer System for non-tributary groundwater for operations

Denver Basin Aquifers confining unit sands and springs via the USGS
Denver Basin Aquifers confining unit sands and springs via the USGS

From The Greeley Tribune (Eric Brown):

Many water needs in the region have been met by buying supplies from farmers and ranchers, but a Noble Energy manager said Tuesday the oil and gas industry could and should stop being a part of that problem, and explained what his company is doing to get water. The large energy developer is looking to use deep groundwater wells — drawing “non-tributary water” — to meets its needs down the road, said Ken Knox, senior adviser and water resources manager for Noble, during his presentation at the Colorado Farm Show in Greeley.

Farmers and others who pump groundwater typically draw water that’s less than 100 feet below the Earth’s surface — water that’s considered to be “tributary,” because it’s connected to the watershed on the surface and over time flows underground into nearby rivers and streams, where it’s used by farmers, cities and others. Wanting to avoid water that’s needed by other users, Knox said Noble is looking to have in place about a handful of deep, non-tributary groundwater wells that draw from about 800 to 1,600 feet below the Earth’s surface. Digging wells that deep is considered too expensive for farmers, Knox and others said Tuesday, and the quality of water at that depth is typically unusable for municipal or agricultural uses.

One of Noble’s deep groundwater wells is already in place, and the company is currently going through water court to get another four operating in the region down the road, Knox said. Along with digging deeper for water, Knox explained that Noble across the board is “strategically looking” to develop water supplies that don’t put them in competition with agriculture or cities.

Oil and gas development, according to the Colorado Division of Natural Resources, only used about 0.11 percent of the state’s water in 2012 — very little compared to agriculture, which uses about 85 percent of the state’s supplies. But in places like Weld County — where about 80 percent of the state’s oil and gas production is taking place, and where about 25 percent of the state’s agriculture production is going on, and where the population has doubled since 1990 and is expected to continue growing — finding ways for an economy-boosting energy industry to not interfere with the water demands of farmers, ranchers and cities is critical.

The growing water demands of the region is coupled with the fact that the cheapest way to build water supplies is to purchase them from farmers and ranchers who are leaving the land and willing to sell. Those factors leave the South Platte Basin, which covers most of northeast Colorado, potentially having as many as 267,000 acres of irrigated farmland dry up by 2050, according to the Statewide Water Supply Initiative Study, released by the state in 2010.

With that in mind, the Colorado Farm Show offered its “Water Resources Panel: Agriculture, Urban and Oil and Development Interactions.”

Joining Knox on the panel were John Stulp, who is special policy adviser on water to Gov. John Hickenlooper; Dave Nettles, division engineer with the Water Resources Division office in Greeley; and Jim Hall, resources manager for the city of Greeley. The panel was moderated by Reagan Waskom, director of the Colorado Water Institute at Colorado State University.

Knox also spoke Tuesday of Noble’s and other energy companies’ efforts to recycle the water they use in drilling for oil and gas — a hydraulic fracturing process, or “fracking,” that involves blasting water, sand and chemicals into rock formations, about 7,000 feet into the ground, to free oil and natural gas. The average horizontal well uses about 2.8 million gallons of water. Some water initially flows out of the well, but another percentage flows back over time. Knox stressed it is cheaper for companies to dispose of that returned water and buy fresh water for drilling purposes than it is to build facilities that treat used water. But, seeing the need to make the most of water supplies in the region, Noble is willing to invest in water-recycling facilities and other water-efficiency endeavors.

Hall noted that the city of Greeley, which leases water to both ag users and oil and gas users, has seen a decrease in the amount of water it leases for energy development. With improved technology and improved drilling techniques, also decreasing is the amount of land oil and gas development is using, and the number of water trucks on rural roads.

Knox said oil and gas companies — once requiring about 8 acres for one well site — can now put four to eight wells on just 3 acres, meaning the impact on farm and ranch land is less than it once was. By becoming more water efficient, he said Noble has decreased its water truck loads by 1.65 million annually, and reduced its carbon dioxide emissions by 264,000 tons.

More oil and gas coverage here and here.

The winter 2014 ‘In the pipeline’ newsletter from United Water is hot off the presses

United Water's operations north of I-70
United Water’s operations north of I-70

Click here to read the newsletter. Here’s an excerpt:

Officials from United Water and Sanitation District joined state and local government dignitaries and leaders of area water districts on October 18 to dedicate Arapahoe County Water and Wastewater Authority’s (ACWWA) Chambers Reservoir and celebrate ACWWA taking initial renewable water deliveries from its ACWWA Flow Project.

United played a key role in development of both the Chambers Reservoir and the ACWWA Flow Project, building the reservoir for ACWWA and acquiring the 4,400 acre-feet of renewable water that is the keystone of the ACWWA Flow Project.

More South Platte River Basin coverage here.

CSU, Noble Energy and DNR partner on groundwater monitoring project in the Wattenberg field

Groundwater monitoring well
Groundwater monitoring well

From The Greeley Tribune (Sharon Dunn):

Like the crime scene investigators on television, researchers in northern Colorado will be taking an intense look at water wells throughout the oil patch in a demonstration study in the coming months to determine changes in the water over time. Conducted through Colorado State University in partnership with Noble Energy, the Colorado Water Watch demonstration project will soon begin water table monitoring in test wells at roughly 10 Noble production sites in a real-time look at how the water changes.

“It was conceived not so much as a research project but as a tool to provide information to the public,” said project lead researcher Ken Carlson, an associate professor Civil and Environmental Engineering at CSU. “The oil and gas industry is taking the initiative here to provide some visibility.” Continue reading