(a) As used in this section:
(i) "Commission" means the Wyoming water development
commission;
(ii) "Sponsor" means the city of Gillette, Wyoming;
(iii) "Project" means the Gillette Madison pipeline
project as described in subsection (b) of this section;
(iv) "Account" means the Gillette Madison pipeline
account into which all funds appropriated by this section shall
be deposited. Funds in the account shall be reserved for the
project. All unexpended funds appropriated by this section
shall be transferred to the account.
Source notes for subsection (a): (Laws 2009, Ch. 103, § 1;
2011, Ch. 61 § 1.)
Source notes for subsection (a): (Laws 2009, Ch. 103, § 1;.)
(b) Description: Design, groundwater exploration and
drilling, permit procurement, project land procurement,
construction engineering and construction of municipal wells,
transmission pipelines, pump stations and appurtenances
necessary to make the project function in the manner intended.
Source notes for subsection (b): (Laws 2009, Ch. 103, § 1.)
(c) Purposes: The designated project purposes are
municipal and rural domestic water supply.
Source notes for subsection (c): (Laws 2009, Ch. 103, § 1.)
(d) General authorization: The following shall apply:
(i) The commission shall contract with the sponsor
for the design, groundwater exploration and drilling, permit
procurement and project land procurement for the project in a
manner consistent with this section and to administer the
contract on behalf of the state of Wyoming;
(ii) Upon execution of the contract outlined in
paragraph (i) of this subsection, the sponsor may complete
design, groundwater exploration and drilling, permit procurement
and project land procurement for the project in a manner
consistent with the terms and conditions outlined in the
contract.
Source notes for subsection (d): (Laws 2009, Ch. 103, § 1.)
(e) 2009 Project financing: The following shall apply:
(i) 2009 Project budget:
(A) Total project budget: Two hundred seventeen
million six hundred thousand dollars ($217,600,000.00);
(B) Partial budget authorized by this section:
Sixteen million seven hundred fifty thousand dollars
($16,750,000.00).
(ii) 2009 Project grant: The state of Wyoming shall
grant to the sponsor from the budget reserve account through the
commission for the design, groundwater exploration and drilling,
permit procurement and project land procurement for the project
an amount not to exceed eleven million two hundred twenty-two
thousand five hundred dollars ($11,222,500.00) or sixty-seven
percent (67%) of the actual costs, whichever is less;
(iii) 2009 Project loan: The state of Wyoming shall
loan to the sponsor from the permanent Wyoming mineral trust
fund through the commission for the design, groundwater
exploration and drilling, permit procurement and project land
procurement for the project an amount not to exceed five million
five hundred twenty-seven thousand five hundred dollars
($5,527,500.00) or thirty-three percent (33%) of the actual
development costs, whichever is less, for a term of five (5)
years from the date the commission determines project benefits
accrue to the sponsor, at an annual rate of four percent (4%);
(iv) 2009 Appropriations and funding:
(A) There is appropriated from the budget
reserve account to the commission eleven million two hundred
twenty-two thousand five hundred dollars ($11,222,500.00) or as
much thereof as is necessary to carry out the purpose of this
section. Unexpended funds appropriated under this subparagraph
shall revert to budget reserve account on July 1, 2015;
(B) The state treasurer shall make available
from the permanent Wyoming mineral trust fund to the commission
five million five hundred twenty-seven thousand five hundred
dollars ($5,527,500.00) or as much thereof as is necessary to
carry out the purpose of this section.
Source notes for subsection (e): (Laws 2009, Ch. 103, § 1;
2010, Ch. 115, § 1; 2011, Ch. 61, § 1.)
(f) General conditions: The following shall apply:
(i) Except as otherwise specifically provided, the
project identified in this section shall be subject to the
following general conditions:
(A) The sponsor shall offer security for the
project loan as deemed adequate and acceptable to the attorney
general;
(B) The commission shall establish repayment
schedules for project loans in accordance with the conditions
prescribed in this section;
(C) The sponsor shall establish a sinking fund
for repair and maintenance of the project as deemed appropriate
by the commission;
(D) The sponsor shall supervise the design and
construction of the project and submit all requests for payment
to the commission for approval;
(E) The sponsor shall not make any construction
funding commitment until after the commission has reviewed and
approved the construction budgets and construction plans;
(F) The commission shall make payments directly
to the sponsor;
(G) The sponsor shall be responsible for
operation and maintenance of the project;
(H) The sponsor shall be responsible for all
project expenditures in excess of the total project
appropriation;
(J) If the commission determines that the
sponsor has, without good cause, abandoned completion of the
project, the sponsor, in addition to being required to repay the
loan, shall be obligated to immediately repay the full amount of
all grant funds actually expended plus interest as established
by the state auditor in an amount equal to the interest that
would have accrued on the expended grant funds in the account
from the date of expenditure;
(K) Repayments of principal on the loan shall be
deposited in the permanent Wyoming mineral trust fund and
interest payments made in repayment of loans shall be deposited
into the general fund;
(M) There shall be no lease, sale, assignment or
transfer of ownership of water from the project for purposes
other than the designated project purpose without prior written
approval of the commission and the state engineer or board of
control. If such a transaction is approved, the revenues
generated by the lease, sale, assignment or transfer of
ownership of water from the project shall be utilized to retire
principal on the project loan. After that loan is paid in full,
the sponsor shall receive a proportionate share of the revenues
generated by the lease, sale, assignment or transfer of
ownership of water from the project equal to the percentage of
the project loan and the state of Wyoming shall receive a
proportionate share of the revenues generated by the lease,
sale, assignment or transfer of ownership of water from the
project equal to the percentage of the project grant;
(N) There shall be no lease, sale, assignment or
transfer of ownership of the project until the project loan is
paid in full, and until prior written approval is obtained from
the commission. If these conditions are met, the sponsor shall
receive a proportionate share of the revenues generated by the
lease, sale, assignment or transfer of ownership of the project
equal to the percentage of the project loan and the state of
Wyoming shall receive a proportionate share of the revenues
generated by the lease, sale, assignment or transfer of
ownership of the project equal to the percentage of the project
grant. Before the sponsor may lease, sell, assign or transfer
ownership of the project, the state of Wyoming shall be given a
one (1) year first right of refusal option to purchase the
sponsor's interest in the project for an amount equal to the
principal, interest, maintenance and replacement costs incurred
by the sponsor at the date the option is exercised;
(O) After the project loan is paid in full, the
sponsor may purchase the position of the state of Wyoming, as
described in subparagraphs (K) and (M) of this subsection, for
the amount of the project grant plus the interest that would
have accrued on the grant amount in the account from the date
the project was substantially completed as defined by the
commission. The interest that would have accrued on the grant
amount shall be established by the state auditor;
(P) Any revenues generated by the state from the
lease, sale, assignment or transfer of ownership of any project
or project water shall be deposited in the account.
Source notes for subsection (f): (Laws 2009, Ch. 103, § 1;
2011, Ch. 61, § 1.)
(g) General authorization: The following shall apply:
(i) The commission shall contract with the sponsor
for the construction engineering and construction of the project
in a manner consistent with this section and to administer the
contract on behalf of the state of Wyoming;
(ii) Upon execution of the contract outlined in
paragraph (i) of this subsection, the sponsor may complete
construction engineering and construction for the project in a
manner consistent with the terms and conditions outlined in the
contract.
Source notes for subsection (g): (Laws 2010, Ch. 115, § 1;
2011, Ch. 61, § 1.)
(h) 2010 Project financing: The following shall apply:
(i) 2010 Project budget:
(A) Total project budget: Two hundred seventeen
million six hundred thousand dollars ($217,600,000.00);
(B) Partial budget authorized by this section:
Twenty-four million five hundred thousand dollars
($24,500,000.00).
(ii) 2010 Project grant: The state of Wyoming shall
grant to the sponsor from water development account III through
the commission for the construction engineering and construction
for the project an amount not to exceed sixteen million four
hundred fifteen thousand dollars ($16,415,000.00);
(iii) 2010 Project loan: The state of Wyoming shall
loan to the sponsor from the permanent Wyoming mineral trust
fund through the commission for the construction engineering and
construction for the project an amount not to exceed eight
million eighty-five thousand dollars ($8,085,000.00) or thirty-
three percent (33%) of the actual development costs, whichever
is less, for a term of five (5) years from the date the
commission determines project benefits accrue to the sponsor, at
an annual rate of four percent (4%);
(iv) 2010 Appropriations and funding:
(A) There is appropriated from water development
account III to the commission sixteen million four hundred
fifteen thousand dollars ($16,415,000.00) or as much thereof as
is necessary to carry out the purpose of this section. From
available surplus funds, the governor shall make a
recommendation in the supplemental budget request to reimburse
water development account III for any amount expended from that
account for this project;
(B) The state treasurer shall make available
from the permanent Wyoming mineral trust fund to the commission
eight million eighty-five thousand dollars ($8,085,000.00) or as
much thereof as is necessary to carry out the purpose of this
section.
Source notes for subsection (h): (Laws 2010, Ch. 115, § 1;
2011, Ch. 61, § 1.)
(j) 2011 Project financing: The following shall apply:
(i) 2011 Project grant: The state of Wyoming shall
grant to the sponsor from the account through the commission for
the construction of the project an amount not to exceed six
million nine hundred sixty thousand four hundred thirty dollars
($6,960,430.00);
(ii) 2011 Budget appropriation: The 2011
supplemental budget authorized a separate grant to the
commission for the construction of the project from the state of
Wyoming's share of abandoned mine land funds from the Surface
Mining Control and Reclamation Act Amendments of 2006, section
411(h)(i) pursuant to 2007 H.R. 6111 in the amount of twenty-
five million four hundred two thousand seventy dollars
($25,402,070.00) which shall be expended for the construction of
the project;
(iii) 2011 Project loan: The state of Wyoming shall
loan to the sponsor from the permanent Wyoming mineral trust
fund through the commission for the construction of the project
an amount not to exceed fifteen million nine hundred thirty-nine
thousand seven hundred thirty-nine dollars ($15,939,739.00), for
a term of five (5) years from the date the commission determines
project benefits accrue to the sponsor, at an annual rate of
four percent (4%);
(iv) 2011 Appropriations and funding:
(A) There is appropriated from the general fund
to the account for the commission six million nine hundred sixty
thousand four hundred thirty dollars ($6,960,430.00) to carry
out the purposes of this section. Unexpended funds appropriated
under this subparagraph shall revert to the budget reserve
account on July 1, 2017;
(B) The state treasurer shall make available
from the permanent Wyoming mineral trust fund to the commission
fifteen million nine hundred thirty-nine thousand seven hundred
thirty-nine dollars ($15,939,739.00) or as much thereof as is
necessary to carry out the purposes of this section.
Source notes for subsection (j): (Laws 2011, Ch. 61, § 1.)
(k) Continuing funding for fiscal years 2012-2014:
(i) Additional project grants: From available surplus
funds, the governor shall make a recommendation for the
following funding levels for the project:
(A) For fiscal year 2012 project grant: Thirty
million dollars ($30,000,000.00);
(B) For fiscal year 2013 project grant: Thirty
million dollars ($30,000,000.00);
(C) For fiscal year 2014 project grant: Twenty-
five million seven hundred ninety-two thousand dollars
($25,792,000.00).
(ii) Additional project loans: In the event that the
legislature appropriates the project grant amounts set forth in
paragraph (i) of this subsection from any source, the state of
Wyoming shall loan to the sponsor from the permanent Wyoming
mineral trust fund through the commission for the construction
of the project the following loans, each for a term of five (5)
years from the date the commission determines project benefits
accrue to the sponsor, at an annual rate of four percent (4%):
(A) For fiscal year 2012 project loan: Fourteen
million seven hundred seventy-six thousand one hundred nineteen
dollars ($14,776,119.00);
(B) For fiscal year 2013 project loan: Fourteen
million seven hundred seventy-six thousand one hundred nineteen
dollars ($14,776,119.00);
(C) For fiscal year 2014 project loan: Twelve
million seven hundred three thousand five hundred twenty-two
dollars ($12,703,522.00).
Source notes for subsection (k): (Laws 2011, Ch. 61, § 1.)