SENATE BILL REPORT

SB 6217

BYSenator Benitz

Requiring the department of ecology to sell its interest in the Prosser well at the Washington State University research center.

Senate Committee on Agriculture

Senate Hearing Date(s):January 28, 1988; January 29, 1988

Majority Report:  That Substitute Senate Bill No. 6217 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Barr, Chairman; Bailey, Halsan, Hansen, Rinehart.

Senate Staff:John Stuhlmiller (786-7446)

                  January 29, 1988

AS REPORTED BY COMMITTEE ON AGRICULTURE, JANUARY 29, 1988

BACKGROUND:

During the drought of 1977, an $18 million drought relief measure was passed by the legislature.  With funds from this measure the Department of Ecology joined with the Washington State University research center at Prosser to drill a well to provide emergency irrigation water.  The research center has a 26 percent interest in the well with options for more water if conditions warrant it.  The Department of Ecology has the remaining ownership of the well and sells water to help recover the capital and operating costs.  The original cost of the well was $241,528, with the remaining amount owed estimated to be $167,151.

The well is capable of irrigating 520 acres, but because it is used for emergency purposes only and is very costly to start up and operate, the well has not been very active.  The Department does not use its 74 percent share of the well, and the research center cannot afford to start the well for its own use, so both the Department and the research center rely on farmers in the area to purchase water to help defray the costs associated with operating the well.

The Department, the research center and the farmers in the affected area have met and are not opposed to the sale of the Department of Ecology's interest in the well.

SUMMARY:

The Department of Ecology shall sell its interest in the Prosser well located at the Washington State University research center.  The well shall be sold for fair market value with proceeds deposited in the Emergency Water Project Revolving Account.

EFFECT OF PROPOSED SUBSTITUTE:

The name of the account into which funds from the sale of the Prosser Well are to be deposited is the State Emergency Water Project Revolving Account.  The Department of Ecology shall, to the extent possible, expedite the sale of the well to accommodate the needs of all concerned parties for the 1988 irrigation season.  As a prerequisite to sale, the parties who agree to purchase the Prosser Well shall agree to be bound by any existing agreements between the Department of Ecology and the Washington State University Research Center at Prosser regarding the operation and maintenance of the Prosser Well.  The parties agree that the sale of the Department of Ecology's interest in the Prosser Well will require compliance with RCW 90.44.

Appropriation:    none

Revenue:    yes

Fiscal Note:      requested January 20, 1988

Senate Committee - Testified: George Krill, Department of Ecology; Bud Morris, Washington State University