Water District Puts $300,000 In Escrow

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The Pine Strawberry Water Improvement District has put $300,000 in an escrow account to drill an exploratory well in Strawberry (the K2 site). The PSWID board approved the deposit and construction escrow instructions at a special meeting Jan. 30.

Part of the funds will be used to pay an expert consultant, HydroSystems Inc., to look after the district's interests in its agreement to drill the well in partnership with Pine Water Company, said Gary Sherlock, chairman of PSWID.

"The funds for HSI are not to exceed $22,056," Sherlock said.

HSI of Phoenix specializes in well drilling. It will review the project plans and specifications, expedite the permit process and handle technical issues.

The remaining money will be paid from the escrow company to the well driller of the exploratory well at the K2 site. Pine Water Company will select the driller through a bid process, Sherlock said.

"Pine Water Company has signed the lien on the K2 site we requested in the Joint Well Development Agreement and given it to us. But until the corporation commission makes a decision on allowing it, the lien can't be recorded," Sherlock said.

He explained the lien protects the PSWID, in case Pine Water Company goes bankrupt.

"Going to escrow at this time provides the best chance of having additional water for this summer (2008)," Sherlock said.

The escrow instruction document will be posted on the PSWID Web site, pswid.org, as soon as the district's attorney processes it, Sherlock said.

Additional information on the project will be presented at the regular meeting of PSWID at 6:30 p.m., Thursday, Feb. 21 at the Pine Cultural Hall. Sherlock said there would also be a presentation on goals and the recently completed Pine Valley survey for other likely spots for wells.

The PSWID Board's mission is to represent the interests of the communities and to secure long-term and reliable sources of water. To accomplish this, the board is to:

  • Investigate current and potential sources of water, as well as the costs associated with maintaining or expanding present and potential sources
  • Formulate a plan or plans for improving present water sources of the communities
  • Formulate a plan or plans for funding such improvements
  • Implement and formulate plans, as necessary, to provide long-term available water to communities

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