By Russ Pankonin
    The Imperial Republican
     Two companies seeking to build ethanol plants in Chase County will likely need to offset 50 percent of their water allocation.
     Company representatives from Mid-America Renewable Fuels and Central Bio-Energy, LLC met Nov. 14 with the variance committee of the Upper Republican Natural Resource District.
     Mid-America has proposed a plant just west of Wauneta, while Central Bio has proposed a plant on the southeast edge of Imperial. Both are projected to produce 100 million gallons of ethanol per year.
     Both of the plants are requesting allocation of 500 million gallons annually. However, both noted they will probably use less than that after actual operation begins.
     Members of the variance committee which met earlier in the day Nov. 14, shared their findings with the full URNRD board at the regular meeting that night.
     Board member Terry Martin said the variance committee sought to have the plants offset or retire up to half of their proposed use, or approximately 250 million gallons.
     Since their actual use will not be known until plant operation begins, the committee proposed the plants offset or retire 75 percent of the 250 millions gallons, with a review to follow after three years of operation.
     Manager Jasper Fanning and board member Dean Large suggested that 60-70 percent may be sufficient.
     If it is not, they said the plants could add to the offset after the review period.
     The variance committee suggested that the Wauneta plant, which lies within a quick response area, try to retire wells in quick responses areas, anywhere within the district to the Colorado state line.
     The committee suggested the Imperial plant, which is out of the quick response area, try to retire wells within the floating township of their location, which would provide a six-mile radius.
     Each plant would require retiring about 500 acres to meet the proposed offset.
     Any irrigation wells on the proposed sites could be used toward the offset, Fanning said last week after the meeting.
     Fanning said the companies could acquire the offsets by purchasing irrigated ground and converting the allocation to an industrial allocation, or by leasing the water long-term and converting the use to industrial.
     Representatives from both companies said they saw these options as workable.
     Mid-America indicated they would return some discharge water to the Frenchman. The variance committee recommended some type of credit if the water is returned to the river.
     Fanning, the variance committee and representatives from each company will work on the specifics of the proposal for expected action at the December meeting.
    Steve Grams applies for vacancy
     Steve Grams of Imperial applied for the subdistrict 5 vacancy created by the resignation of Ron Milner, also of Imperial.
     Since the agenda did not specifically address appointing a new member, the board opted to address the issue at the December meeting.
     The executive committee of the board will insure that Grams is an eligible candidate according to statute and then forward the application to the full board.
     The board adopted a motion to accept Grams' application and forward it to the executive committee, along with any other applications received before the December meeting, for verification.
     Statute recommends a vacancy be filled within 45 days if possible unless there is a good cause not to.
    Legal Counsel Joel Burke suggested that lack of applications prior to Grams' application constitutes good cause.
     Board member Kerry Bernhardt noted that according to policy, the board acted incorrectly when it appointed Ron Milner to the subdistrict 5 vacancy in 2005.
     Policy of filling the vacancy was reviewed by the board, with action on Grams' application expected next month.
    Building project
     Board members voted to have Fanning and the building committee begin interviewing architectural firms to complete the first phase of a building project.
     The board has budgeted funds for the construction of a new headquarters building.
     The architectural firm chosen will assess feasibility of the project, provide cost estimates and complete initial drawings.
    EQIP/CRP updates
     Nadine Bishop, with the Natural Resource Conservation Service in Imperial, updated the board on the use of the Environmental Quality Incentive Program (EQIP) and the Conservation Reserve Program (CRP).
     She said this marks the 10th year of the EQIP program. During that time, NRCS has approved 449 contracts covering 301,000 acres in the URNRD, with a cost-share influx of more than $4 million.
     She said there are 1,447 CRP contracts in the district covering almost 86,000 acres. She said the rental payments to owners of the properties enrolled total nearly $4 million annually.