An April 4 community open house in Vernal, Utah, brought out as many as 300 area residents voicing their opposition to plans by an Agrium Inc. subsidiary to test for phosphate ores on state school trust leases 13 miles northwest of this eastern Utah town.

“The biggest concern is that they could be blasting on top of the cavern or conveyance that may destroy the only water source for Vernal,” warned David Hatch, manager for the area’s water and sewer district. “A lot of people also were concerned about destroying the hillside, and in some cases the mine would come right up to their property.”

Hatch explained that the water in the spring sinks into a subterranean limestone formation before resurfacing, and that because phosphate mining typically involves blasting it could affect the limestone formation and compromise the water supply for about 10,000 people.

Paul Poister, spokesman for Agrium’s Utah Phosphate Co. (UPC), said UPC recently completed the purchase of state phosphate leases outside Vernal previously owned by Ashley Creek Properties. He said the transfer of the leases only means that UPC can move forward on conducting its own testing and due diligence regarding the phosphate resource on the property. Information provided at the meeting indicated that plans call for drilling between 10 to 15 test holes on the property to determine the depth, quality, and physical properties of the phosphate. This phase is scheduled to be completed this summer. Until this is completed a decision on the type of development, if any, would be premature. Those at the meeting also were advised that among the many factors that will be considered are environmental protection, financial viability, transportation, and economic impact – and that if a new development were to be constructed, it would provide jobs, tax revenue, and economic growth to the region.

Agrium said it would also be assessing prior drilling at the site, and that it will assure that drilled areas are remediated to state and Agrium standards.

Agrium said that determining the viability of the mine, preparing environmental assessment studies, permitting, and eventual construction is a very long process with many decision stages. If at the end of the stages the company opts to fully develop the resource, the earliest a mine would be operational would be well into the next decade. Agrium reiterated that community involvement and feedback will be requested at every stage.

“The main thing I don’t think they have worked out is they don’t have water rights or even water availability for the property,” said Hatch. He said all the water on Ashley Creek or Dry Fork, where the mine would be located, has been allocated. "The only possible source would be the Green River or the Red Fleet reservoir, which is probably 15 or 20 miles away," he reported. He agreed this would be a major stumbling block if Agrium wanted to develop those resources.

Poister told Green Markets that the purchased leases include the phosphate mineral rights owned by Utah’s School and Institutional Trust Lands Administration (SITLA), as well as surface access rights where SITLA owns the surface rights. “No other rights were acquired by this transaction,” said Poister. “We recognize that water is a critical resource in Uintah County and across the West. Identifying water requirements and potential water sources is an important part of the project feasibility phase.”

He noted that UPC bought three SITLA phosphate mineral leases from Ashley Creek. While these leases have transferred to UPC, the sale agreement includes a phased payment schedule over several years, with the ability for UPC to return the leases prior to the final payment.

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