Compass Minerals on March 7 announced that it has agreed to a term sheet with the Utah Division of Forestry, Fire and State Lands (FFSL) outlining voluntary water conservation and other commitments the company will be making in an effort to help preserve the long-term sustainability of the Great Salt Lake.
Compass and FFSL are currently crafting a binding voluntary agreement based on the framework established within the term sheet.
“We recognize that a healthy Great Salt Lake is essential to both the environmental and economic well-being of the region,” said Edward C. Dowling Jr., Compass President and CEO. “We are proud to be pursuing this voluntary agreement with FFSL and are committed to actively contributing to the health and preservation of this vital natural resource.”
Compass’ Ogden facility has operated on the Great Salt Lake for over half a century, producing sulfate of potash, salt, and magnesium chloride from the lake’s mineral-enriched brine. The Ogden operation currently provides nearly 400 local jobs and representatives of Compass participate on multiple policy and advisory groups focused on ensuring a healthy lake ecosystem.
As part of its regulatory authorities, FFSL is responsible for managing Utah’s sovereign lands, including the beds and banks of navigable rivers and lakes within the state.
“This agreement provides a framework where critical minerals can be extracted when the lake is at appropriate levels, and water is conserved as lake levels decline,” said Jamie Barnes, FFSL Director and State Forester. “We are pleased that Compass Minerals has actively pursued an agreement with FFSL, which will be the first of its kind for Great Salt Lake.”
During the 2024 legislative session, the Utah Legislature passed House Bill 453 (H.B.453), “Great Salt Lake Revisions,” which amends and expands current state statute governing mineral extraction on the Great Salt Lake, including but not limited to new severance taxes and a requirement for the state to develop a mandatory water distribution plan for mineral extractors on the lake.
Also
included within H.B.453 were provisions allowing mineral companies to enter
into voluntary agreements with FFSL, thereby enabling severance tax relief,
protections against potential eminent domain actions, and the ability to
proactively negotiate voluntary water conservation commitments.