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Honorable!Sean!Reyes!! ! ! ! ! ! March!15,!2018!
Attorney!General!
Capitol!Building,!Suite!230!!
Utah!State!Capitol!Complex!
Salt!Lake!City,!Utah!84114!!
!
Honorable!John!W.!Huber!
U.S.!Attorney!
111!South!Main!Street!
Suite!1800!
Salt!Lake!City,!Utah!84111!

I. Introduction+
!
We!are!writing!to!request!that!your!office!conduct!an!investigation!into!the!actions!and!
conflicts!of!interests!of!Representative!Michael!E.!Noel,!who!has!served!since!2003!as!a!
member!of!the!Utah!State!House!of!Representatives!for!District!73,!and!who!also!serves!
as!the!Executive!Director!of!the!Kane!County!Water!Conservancy!District.!!In!addition!to!
serving!in!these!official!capacities,!Mr.!Noel!is!a!Southern!Utah!landowner!and!real!estate!
developer!with!interests!in!real!property!in!Kane!County!totaling!somewhere!between!
$4V9!million.!!+
Over!the!past!12!years,!Mr.!Noel!has!been!a!steadfast!proponent!and!unregistered!
lobbyist!for!one!of!the!largest!capital!spending!proposals!in!the!State!of!Utah1,!the!Lake!
Powell!Pipeline!(LPP),!which!is!estimated!to!cost!the!Utah!taxpayers!$2!to!$3!billion.!Mr.!
Noel!has!secured!a!position!on!the!fourVperson!Management!Committee!overseeing!the!
project.!!!
Mr.!Noel’s!heavy!advocacy!for!and!participation!in!the!project!is!highly!suspect.!!Based!
on!our!research,!it!appears!the!LPP!may!provide!Mr.!Noel’s!lands!in!Kane!County,!which!
total!750!acres2,!with!publiclyVfinanced!water!far!in!excess!of!the!projected!needs!for!the!
area.!!Since!Utah!taxpayers!are!being!asked!to!foot!the!bill!for!the!LPP,!a!thorough!review!
of!Noel’s!personal!interests!in!the!project!for!which!he!has!so!faithfully!lobbed!is!merited.!!!

More!specifically,!we!are!requesting!a!review!of!the!multiple!ways!in!which!Mr.!Noel!has!
used!his!dual!positions!as!a!legislator!and!government!employee!to!advance!funding!and!
state!and!federal!permitting!for!the!proposed!LPP.!As!set!forth!below,!we!believe!that!Mr.!
Noel’s!conduct!is!in!violation!of!Utah!law!and!the!ethical!standards!governing!state!
legislators!and!employees.!!This!review!should!include!an!assessment!of!the!extent!to!
which!Mr.!Noel’s!wealth!may!increase!in!financial!value!as!a!function!of!his!appointed!
and!elected!government!offices.!!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
1!https://le.utah.gov/~2006/minutes/HNAE0125.htm!
2!Kane!County!Recorder!website !

1055 East 2100 South, Suite 201 ! Salt Lake City, UT 84106 ! 801-486-4776 ! utahrivers.org 1!
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Regardless!of!what!one!‘believes’!about!the!proposed!LPP,!it!appears!that!Mr.!Noel!may!
benefit!financially!from!the!development!and!completion!of!the!LPP.!!Mr.!Noel,!through!
his!companies,!owns!substantial!interests!in!hundreds!of!acres!of!land!to!which!the!LPP!
may!deliver!additional!water,!despite!the!proven!lack!of!any!need!for!LPP!water!in!the!
area!through!at!least!2060.!!Mr.!Noel!has!not!disclosed!this!potential!financial!benefit!or!
all!of!the!related!conflicts!of!interest,!despite!the!requirements!of!Utah!law.!!Mr.!Noel’s!
extensive!personal!water!rights!in!Kane!County!may!also!constitute!a!conflict!of!interest!
that!needs!to!be!investigated.!!!!

Both!Mr.!Noel’s!failure!to!disclose!all!of!his!conflicts!of!interest!and!his!extensive!
lobbying!for!the!LPP!may!represent!improper!efforts!to!secure!personal!financial!
benefits!from!the!LPP.!!Indeed,!Mr.!Noel!continues!to!advocate!for!the!LPP!in!spite!of!his!
knowledge!that!the!current!water!supply!is!adequate,!and!in!spite!of!his!knowledge!that!
the!project!will!impose!a!massive!tax!burden!on!his!constituents!that!will!require!major!
increases!in!water!rates,!property!taxes!and!impact!fees!in!the!future.!!Mr.!Noel’s!
promotion!of!the!LPP!may!suggest!that!he!has!plans!for!his!property!beyond!its!current!
uses!for!agricultural!and!ranching!purposes,!which!he!recently!helped!carve!out!of!the!
Grand!Staircase!Escalante!National!Monument!by!urging!the!Trump!Administration.!
Due!to!his!longstanding!political!prominence!and!forceful!personality,!Mr.!Noel’s!
conduct!has!escaped!scrutiny!to!date.!However,!the!connection!between!Mr.!Noel,!The!
LPP,!and!any!personal!financial!benefits!that!may!arise!needs!to!be!investigated!to!
determine!whether!or!not!the!public!interest!is!being!served.!Accordingly,!we!implore!
you!to!commence!a!thorough!investigation!based!on!the!facts!and!law!discussed!in!detail!
below.!

II. Statement+of+Facts+

A. The+Lake+Powell+Pipeline+
!
The!Lake!Powell!Pipeline!(LPP)!is!a!controversial!proposal!to!pump!28!billion!gallons!of!
Colorado!River!water!across!140!miles!to!Kane!and!Washington!Counties.!!In!Kane!
County,!the!water!from!the!LPP!would!be!contracted!to!and!thus!managed!by!the!Kane!
County!Water!Conservancy!District,!of!which!Mr.!Noel!is!the!Executive!Director.!!The!
District!will!be!indebted!with!LPP!cost!repayment!obligations!that!are!forecast!to!exceed!
their!ability!to!repay.!3!Mr.!Noel!earns!$120,492!annually4!as!the!Director!of!the!Water!
District,!making!him!among!the!highestVpaid!government!employees!in!Kane!County.!!In!
addition,!as!detailed!below,!the!only!area!in!Kane!County!that!will!receive!water!from!
the!LPP!is!in!Johnson!Canyon,!where!Mr.!Noel!owns!hundreds!of!acres!of!land.!!In!fact,!it!
appears!that!Mr.!Noel!owns!a!majority!of!the!land!in!Johnson!Canyon!serviced!in!
irrigation!by!the!Kane!County!Water!District.!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
3!2013!Kane!County!LPP!Repayment!Analysis!
4!Utahsright.com!

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1. The+LPP+Water+Is+Not+Needed+in+Kane+County+
+
The!Kane!County!Water!District!–!headed!by!Mr.!Noel!–!has!requested!4,000!acreVfeet!of!
water!from!the!LPP5.!!Although!the!water!district!appears!to!collect!property!taxes!from!
taxpayers!across!the!entire!county,!it!actually!serves!just!a!small!portion!of!the!county,!
as!evidenced!in!part!by!the!existence!of!several!other!special!service!district!water!
suppliers!in!Kane!County6.!In!fact,!the!majority!of!Kane!County!residents!do!not!receive!
water!from!the!Kane!County!Water!District!because!they!live!outside!of!the!water!
district!delivery!area.!!This!is!evidenced!by!the!Division!of!Water!Resources!LPP!
Application!to!FERC:!!!
“KCWCD&is&a&new&water&conservancy&district,&formed&in&1992.&&It&has&a&very&limited&
customer&base&and&limited&supply&sources&at&present.&&The&only&substantial&
community&in&Kane&County&–&the&City&of&Kanab&–&has&developed&its&own&water&
supply&system&over&time,&and&may&continue&to&meet&the&needs&of&M&I&customers&
within&its&current&city&boundaries,&and&within&future&annexation&areas&as&well.”7&
&
!“Most&water&users&within&the&county&are&not&served&by&the&[Kane&County&Water]&
District&(e.g.&Kanab&City)”8&
!
The!vast!majority!of!the!Kane!County!population!is!not!slated!to!receive!water!from!the!
proposed!LPP!because!additional!water!is!unnecessary,!even!accounting!for!robust!
growth!in!the!future.!!Kane!County!already!has!an!abundance!of!water!to!serve!the!
growth!of!its!population!centers!from!now!until!the!year!2060,!as!is!clear!from!the!
Division!of!Water!Resources’!study!of!the!LPP:!
“The&difference&between&the&projected&KCWCD&2060&demand&of&5,850&acRft./yr.&and&
the&existing&supply&of&4,040&acRft./yr.&is&1,810&acRft./yr.&&For&all&four&subbasins,&a&
combination&of&existing&and&new&ground&water&supplies&is&sufficient&to&meet&all&
future&needs&within&the&planning&horizon.&&Thus%based%strictly%on%water%need,%
LPP%supplies%are%not%needed%in%the%KCWCD%service%area%within%the%2060%
planning%horizon.”9&

This!study!further!clarified!that!even!converting!agricultural!water!isn’t!necessary!to!
meet!the!county’s!future!needs,!which!further!indicates!the!lack!of!any!water!need!from!
the!LPP:!!
“For&all&four&subRbasins,&a&combination&of&existing&and&new&ground&water&supplies&is&
sufficient&to&meet&all&future&needs&within&the&planning&horizon.&Of&the&two&largest&subR
basins,&Kanab&Creek&and&Johnson&Canyon&a&maximum&of&60&percent&of&the&available&ground&
water&supply&will&be&needed.&Thus&based&strictly&on&water&need,&neither&agricultural&
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
5!2016!LPP!Water!Needs!Assessment.!Page!1V6!
6!2017!Kane!County!Master!Plan,!Chapter!4!!
7!2008!LPP!Water!Needs!Assessment,!Page!4V47!
8!2008!LPP!Water!Needs!Assessment,!Page!2V12!
9!2011!LPP!Water!Needs!Assessment,!Page!ESV24 !

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conversion&nor&LPP&supplies&are&needed&in&the&KCWCD&service&area&within&the&2060&
planning&horizon.”&10&

The!water!demand!forecasts!for!the!population!of!Kane!County!by!2060!generated!by!
the!Utah!Division!of!Water!Resources!rely!on!outdated!population!data.11!These!
outdated!projections!come!from!population!data!from!the!Division!of!Water!Resources!
in!2009.!Using!these!population!projections!and!assumed!conservation!estimates,!the!
total!projected!water!demand!reaches!5,850!acVft./yr.!in!2060,!based!on!a!2060!
population!of!17,280!residents.!

However,!based!on!current!2017!population!projections,!as!referenced!by!the!
Governor’s!Office!of!Management!and!Budget!and!provided!by!the!Kem!C.!Gardner!Policy!
Institute,!the!projected!water!demand!is!significantly!lower!than!predicted!by!the!
Division!of!Water!Resources.!The!graph!below!shows!that!the!Division!overestimated!
water!demand!for!Kane!County!by!nearly!56%!because!the!current,!revised!forecast!for!
the!population!of!Kane!County!in!2060!is!just!11,093!people.!!

Using!Kane!County!Water!District’s!water!use!estimates,!the!updated!population!
projections!show!that!the!current!available!water!supply!is!sufficient!to!meet!demand!
for!the!projected!population!growth!to!2060!and!beyond.!!The!available!water!supply!of!
4,039!acVft./yr.!and!yearly!assumed!conservation!estimates!from!the!Division!of!Water!
Resources!2011!Water!Needs!Assessment!were!used.!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
10!2011!LPP!Water!Needs!Assessment,!Page!6V13!
11!2016!LPP!Water!Needs!Assessment !
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2. Johnson+Canyon+Appears+to+be+the+Only+Area+of+Kane+County+
Slated+to+Receive+LPP+Water+
+
The!Division!of!Water!Resources’!FERC!application!for!the!LPP!demonstrates!that!the!
only!area!in!Kane!County!that!clearly!stands!to!receive!LPP!water!is!in!Johnson!Canyon!
where!Mr.!Noel!owns!over!750!acres!of!real!property.!More!recently,!the!2016!Water!
Needs!Assessment!indicates!Kanab!could!receive!LPP!water,!but!this!claim!isn’t!well!
substantiated!with!demonstrable!needs!for!this!water!and!conflicts!with!statements!in!
the!same!version!of!this!document,!and!in!conflicting!recommendations!from!the!2008!
and!2011!versions.!Three!of!the!other!four!Kane!County!Subbasins!won’t!receive!LPP!
water.!!Additional!detail!about!the!areas!that!will!not!receive!LPP!water!are!included!in!
Appendix!A.!
KCWCD+Johnson+Canyon+Service+Area+and+Kanab+Municipal+Boundary+

±
KCWCD Johnson Canyon Service Area
Kanab Municipal Boundary

£
¤89

£
¤ 89

0 1 2 4 Miles

Boundaries!are!approximate,!for!discussion!purposes!only!
The!map!above!shows!the!area!of!Kane!County!slated!to!receive!water!from!the!LPP.!!
The!area!shown!in!blue!is!the!city!boundary!of!Kanab!City12,!which!is!the!population!hub!
of!Kane!County,!with!over!62%!of!the!county’s!population,!and!which!has!its!own!water!
supply!sufficient!to!meet!its!needs!well!into!the!future!without!LPP!water.!!!

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12!AGRC,!State!and!Local!Government!Partners,!State,&County&and&Municipal&Boundaries,!(Municipal!

Boundaries:!File!Geodatabase).!Salt!Lake!City,!UT:!Automated!Geographic!Reference!Center,!2017.!Web.!
Accessed!28,!Feb!2018.!https://gis.utah.gov/data/boundaries/citycountystate/!

1055 East 2100 South, Suite 201 ! Salt Lake City, UT 84106 ! 801-486-4776 ! utahrivers.org 5!
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The!area!in!red!is!the!Johnson!Canyon!service!area!of!the!Kane!County!Water!District13,!
which!is!the!only!area!in!Kane!County!clearly!slated!to!receive!water!from!the!proposed!
LPP.!!The!Johnson!Canyon!service!area!had!a!population!of!just!227!people!in!2010!and!
is!forecasted!to!see!just!342!new!residents!by!the!year!2060,!for!a!total!of!569!people.14.&
Johnson!Canyon!currently!has!a!water!supply!of!96.3!acreVfeet!per!year!for!existing!
uses15.!!In!addition,!Johnson!Canyon!has!an!abundant!existing!water!supply!that!is!far!in!
excess!of!what!is!needed!to!meet!its!future!growth!requirements:!
“There&was&a&total&of&approximately&8,100&acRfeet&per&year&of&undeveloped&ground&
water&between&the&four&subbasins&that&would&be&available&for&development&in&the&
future,&with%the%greatest%amount%of%available%ground%water%in%the%Johnson%
Canyon%subbasin%(4,100%acGfeet%per%year).”16%

Based!on!these!figures,!the!additional!4,000!acVfeet!of!LPP!water!requested!by!the!Kane!
County!Water!District!from!the!LPP!is!both!unnecessary!and!wildly!excessive!for!the!
area’s!future!needs.!!With!the!existing!96!acre!feet!and!the!additional!4,100!acre!feet!that!
is!already!available!from!the!Johnson!Canyon!subbasin,!the!requested!LPP!water!would!
bring!the!total!available!water!in!Johnson!Canyon!to!8,200!acreVfeet.!!That!amount!of!
water!could!easily!supply!sufficient!annual!usage!for!a!municipal!population!of!between!
32,800!–!41,000!people’s!annual!water!usage,!depending!upon!the!per!person!water!use.!!
The!Johnson!Canyon!population!is!predicted!to!reach!just!over!560!people!by!2060,!
raising!major!questions!about!why!expensive!LPP!water!would!be!delivered!to!this!area.!
The!2008!and!2011!Water!Needs!Assessments!document!that!Kane!County’s!
participation!in!the!LPP!is!auxiliary!to!its!water!needs.!!Both!documents!indicate!that!
Kane!County!could!participate!in!the!LPP!simply!because!the!Pipeline!route!crosses!
through!Kane!County17:!
“The&LPP&will&traverse&Kane&County&on&its&way&to&Washington&and&Iron&Counties.&
Therefore,&there&is&an&opportunity&for&KCWCD&to&participate&in&the&LPP&simply%out%
of%convenience.”&

Since!Kanab!is!the!largest!population!center!in!Kane!County,!its!future!water!needs!are!
paramount!to!whether!LPP!water!is!needed!in!the!county.!!The!Division’s!LPP!Water!
Needs!Assessments!are!clear!that!Kanab!has!an!abundance!of!water!and!is!unlikely!to!
need!LPP!water!in!the!future.!!!In!fact,!many!residents!of!Kanab!are!concerned!about!the!
debt!and!expected!future!water!rate!increases!if!they!participate!in!the!LPP.18!
Personal!communication!with!residents!of!Kanab!and!Kanab!City!stakeholders!revealed!
that!Kanab’s!groundwater!pumping!system!has!an!abundance!of!supply!available!for!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
13!Utah!Department!of!Natural!Resources,!Retail&Culinary&Water&Suppliers,!(File!geodatabase).!Salt!Lake!

City,!UT:!Automated!Geographic!Reference!Center,!2015.!Web.!Accessed!28,!Feb!2018.!
https://gis.utah.gov/data/utilities/retailVculinaryVwaterVsuppliers/!
14!2011!Water!Needs!Assessment,!Table!3V4,!Page!3V9!
15!2011!LPP!Water!Needs!Assessment,!page!4V87!
16!2011!LPP!Water!Needs!Assessment,!Page!4V87!
17!2011!Lake!Powell!Pipeline!Water!Needs!Assessment,!Page!6V13!
18!http://www.sunews.net/article.cfm?articleID=813!

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future!use.!!City!stakeholders!have!indicated!their!belief!that!the!city!could!double!in!
population!size!without!requiring!additional!groundwater!wells!to!be!drilled.!!!
Kanab!has!recently!entered!an!agreement!with!the!KCWD!to!construct!a!“backup”!water!
line!to!serve!as!an!additional!source!of!supply.!!However,!our!research!reveals!Kanab!is!
purchasing!this!pipeline!from!the!KCWD!with!annual!cash!payments.!!!!

B. Mr.+Noel+May+Personally+Benefit+from+the+LPP+
1. Mr.+Noel+Owns+Hundreds+of+Acres+of+Land+in+Johnson+Canyon+
!
According!to!the!Kane!County!Recorder’s!website,!Mr.!Noel!owns!about!750!acres!of!
land!in!Kane!County,!primarily!in!the!lower!Johnson!Canyon!area19.!Mr.!Noel’s!property!
holdings!are!listed!under!the!names!of!two!separate!entities:!Noel!Properties!LLC!(Noel!
Properties),!and!CSM!Agriculture!LLC!(CSM).!!Some!of!Noel’s!property!in!the!same!
region!is!held!jointly!in!the!name!of!Mr.!Noel!and!his!wife,!Sherry!Noel.!!According!to!the!
records!of!the!Utah!Division!of!Corporations!and!Commercial!Code,!Mr.!Noel!and!his!wife!
are!listed!as!the!sole!managers!of!Noel!Properties,!and!it!is!likely!that!the!Noels!are!the!
sole!owners!of!the!company.!!The!Articles!of!Organization!for!CSM!list!Mr.!Noel,!Samuel!
Kent!Noel,!and!Clayton!Bruce!Williams!as!the!company’s!only!members.!Mr.!Noel’s!
landholdings!are!documented!in!detail!in!Appendix!B.!!!!
The!Kane!County!Water!District,!of!which!Mr.!Noel!is!the!Executive!Director,!reportedly!
serves!997!acres!of!irrigated!land!in!the!Johnson!Canyon!basin20.!!Mr.!Noel’s!ownership!
of!approximately!750!acres!in!that!same!area!means!that!his!properties!receive!water!
supplied!by!the!district.!
Mr.!Noel’s!properties!have!an!assessed!value!of!$4,181,55821.!!The!market!value!of!his!
properties!is!likely!significantly!higher.!!Because!some!of!Mr.!Noel’s!land!is!classified!
under!greenbelt!status,!the!Kane!County!Assessor’s!valuation!does!not!reflect!the!actual!
developable!value!of!the!land.!!Based!on!current!real!estate!listings!and!county!valuation!
data!for!the!area,!the!value!of!Mr.!Noel’s!land!holdings!could!range!anywhere!from!$4!to!
$9!million!dollars.!
According!to!the!FERC!License!Application!for!the!LPP!submitted!by!the!Utah!Division!of!
Water!Resources,!the!section!of!the!LPP!bringing!the!water!sought!by!the!Kane!County!
Water!District!to!Kane!County!would!terminate!near!Mr.!Noel’s!property!in!lower!
Johnson!Canyon.22!!
&“The&pipeline&would&cross&under&Highway&89&and&run&north&parallel&to&the&Johnson&Canyon&
Road,&terminating&at&the&site&of&a&future&water&treatment&facility&at&ground&level&elevation&

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
19!Kane!County!Recorder!website:!https://eagleweb.kane.utah.gov/eaglesoftware/taxweb/search.jsp!
20!2011!LPP!Water!Needs!Assessment.!Page!4V94!
21!Kane!County!Recorder!website:!https://eagleweb.kane.utah.gov/eaglesoftware/taxweb/search.jsp!!
22!DWRe!License!Application.!16!Vol!1!–!Exh!E!Part9!Chap!5!Figures!(page!18)!

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5,160&feet&MSL.&&This&(Kane&County&section&of)&pipeline&would&be&approximately&6.96&miles&
long.”23&

The!map!below!depicts!the!LPP’s!terminus!in!Kane!County!in!the!Johnson!Canyon!area!
and!shows!Mr.!Noel’s!land!holdings!in!lower!Johnson!Canyon.24!!This!was!determined!in!
part!from!the!Division’s!LPP!Submissions!to!FERC:25!!

“The&pipeline&would&cross&under&Highway&89&and&run&north&parallel&to&the&Johnson&Canyon&
Road,&terminating&at&the&site&of&a&future&water&treatement&facility&at&ground&level&elevation&
5,160&feet&MSL.”!!!

Kane!County’s!participation!in!the!LPP!appears!to!be!to!pump!very!expensive!LPP!water!
into!the!ground!because!it!would!not!be!needed!for!anyone’s!use26:!
“KCWCD&would…use&it&to&recharge&ground&water&aquifers&such&as&in&the&Johnson&Canyon&
area&to&extend&the&life&of&the&ground&water&basin.”&

Boundaries!are!approximate,!for!discussion!purposes!only!
&

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
23!Exhibit!E!3V54!of!the!LPP!License!Application!
24!AGRC!and!Local!Government,!Utah&Parcel&Data,!(Kane!County!data!files).!Salt!Lake!City,!UT:!Automated!

Geographic!Reference!Center,!2017.!Web.!Accessed!28,!Feb!2018.!
https://gis.utah.gov/data/cadastre/parcels/!
25!LPP!License!Application!16!Vol1!–!Exh!E!Part!9!Chap!5!Figures!(pg.18)!
26!2011!Lake!Powell!Pipeline!Water!Needs!Assessment,!Page!4V93!

! 8!
!

!
!
!
!
The!proposed!delivery!of!LPP!water!to!this!area!of!Johnson!Canyon,!even!if!‘only’!used!
for!groundwater!injection!“as!a!matter!of!convenience”!is!very!likely!to!have!the!effect!of!
improving!the!existing!groundwater!withdrawal!conditions!of!Mr.!Noel’s!personal!land!
holdings.!!Simply!by!raising!the!groundwater!level!via!new!LPP!water!sources,!Mr.!Noel’s!
land!holdings!could!be!increased!in!value!through!the!LPP.!&
2. Mr.+Noel’s+Ownership+of+Substantial+Water+Rights+in+Johnson+
Canyon+May+Constitute+A+Conflict+of+Interest+
+
Mr.!Noel’s!real!estate!investments!in!Kane!County!are!not!limited!to!land!holdings.!!
According!to!the!Division!of!Water!Rights’!website,!Mr.!Noel!owns!a!substantial!amount!
of!agricultural!water!rights!in!Kane!County,!located!primarily!in!the!lower!Johnson!
Canyon!area.27!!These!agricultural!water!rights,!which!are!documented!in!detail!in!
Appendix!B,!constitute!approximately!272!acreVfeet!of!water,!which!is!puzzling!
considering!that!the!LPP&Water&Needs&Assessment!claims!there!is!96!acreVfeet!of!water!
being!used!in!Johnson!Canyon.!!!
According!to!a!September!2017!article!in!Southern&Utah&News!Mr.!Noel’s!Water!District!
is!a!shareholder!in!the!Kanab!Irrigation!Company,!with!a!10!percent!ownership!in!the!
Company.28!!The!Kanab!Irrigation!Company!does!not!maintain!current!records!with!the!
Division!of!Water!Rights!or!the!Department!of!Commerce,!so!we!were!not!able!to!contact!
a!representative!from!the!Company.!!We!were!also!not!able!to!find!a!list!of!shareholders!
in!the!Company.!!!
Mr.!Noel!may!also!be!a!major!agricultural!water!customer!of!the!Kane!County!Water!
District,!his!employer.!!Not!only!does!the!District!provide!water!service!in!Johnson!
Canyon!where!his!property!is!located,!but!according!to!the!Division!of!Water!Rights!
website,!it!appears!some!of!Mr.!Noel’s!own!water!rights!may!have!been!segregated!from!
larger!water!rights!held!by!the!District.29!!We!cannot!determine!the!chain!of!title!transfer,!
if!any,!between!the!Kane!County!Water!District!and!Mr.!Noel’s!personal!holdings!and!or!
private!property.!

Additionally,!Mr.!Noel!has!entered!into!agreements!with!the!District!regarding!right!of!
way!easements!and!new!water!infrastructure!construction.!!Minutes!from!the!May!2009!
Kane!County!Water!District!Board!Meeting!indicate!the!board!voted!to!approve!a!water!
connection!on!Mr.!Noel’s!property!at!an!additional!cost!to!them!beyond!the!$4,000!the!
District!already!owed!him.30!!The!specific!detail!of!Mr.!Noel’s!arrangement!with!his!
employer!is!unclear.!!!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
27!Utah!Division!of!Water!Rights!website:!https://waterrights.utah.gov/cgiVbin/wrindex.exe!
28!Brunner,!Dixie.!KCWCD&fluidity&celebrates&25&years,!Southern!Utah!News,!9/21/2017.!!

http://www.sunews.net/article.cfm?articleID=2247!
29!See!Appendix!B!
30!KCWD!website!link!to!Board!Meeting!minutes….!

1055 East 2100 South, Suite 201 ! Salt Lake City, UT 84106 ! 801-486-4776 ! utahrivers.org 9!
!
!

!
The!District’s!involvement!in!the!Kanab!Irrigation!Company!could!also!be!related!to!
recent!legislation!Mr.!Noel!coVsponsored!which!could!limit!an!irrigation!company’s!
ability!to!transfer!unused!surplus!water!to!municipal!uses.!During!the!2017!legislative!
session,!Mr.!Noel!was!the!House!Sponsor!for!SB!63,!which!made!it!harder!to!transfer!
water!out!of!a!small!water!company,!like!the!Kanab!Irrigation!Company.!!During!his!
speech!on!the!floor,!Mr.!Noel!did!not!disclose!to!his!fellow!legislators!that!his!employer,!
the!KCWD,!is!a!major!shareholder!in!the!Kanab!Irrigation!Company.!!Nor!did!he!disclose!
his!own!personal!water!rights,!which!may!be!affected!by!this!legislation.!

In!lobbying!his!fellow!legislators!in!support!of!the!bill!on!the!floor!of!the!house,!Mr.!Noel!
said!the!bill:!
“Keeps&intact&those&small&water&companies&that&need&and&require&that&surety,&such&
that&if&a&transfer&is&made,&water&would&remain&in&the&ditch,&and&they&would&still&
have&to&continue&to&pay&their&shares.”31&

The!2008!and!2011!LPP&Water&Needs&Assessments!stated!that!surplus!agricultural!water!
conversion!should!be!pursued!to!expand!Kane!County!municipal!water!supplies!before!
considering!LPP!water,!because!LPP!water!is!the!most!expensive!water!source.!!This!
could!create!a!conflict!between!Kane!County!taxpayers!and!the!Kanab!Irrigation!
Company!and!possibly!Mr.!Noel!himself.!
3.++ Mr.+Noel+Has+a+History+of+Real+Estate+Development+in+Kane+
County+
According!to!the!Kane!County!Recorder’s!website,!Mr.!Noel!has!developed,!subdivided,!
and!sold!several!properties!in!and!around!the!Kanab!area!over!the!last!15!years32.!One!of!
these!real!estate!developments!is!the!Kanab!Creek!Ranchos!subdivision!inside!the!Kanab!
City!limits.!!Interestingly,!Mr.!Noel’s!employer,!the!Kane!County!Water!District,!extended!
water!service!to!that!subdivision!in!201133.!Mr.!Noel!has!also!subdivided!and!sold!land!in!
the!Lost!Spring!Ranch!subdivision!east!of!Kanab,!to!which!his!water!district!also!
extended!service,!this!time!from!the!Johnson!Canyon!area.34!!Mr.!Noel’s!involvement!in!
real!estate!development,!combined!with!his!efforts!to!obtain!more!water!than!is!needed!
in!Johnson!Canyon,!justifies!the!inference!that!he!may!have!development!plans!for!the!
Johnson!Canyon!property.!!!
!
!
!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
31!House!Floor!Video,!3/1/2017:!

http://utahlegislature.granicus.com/MediaPlayer.php?clip_id=21444&meta_id=687163!
32!Kane!County!Recorder!website:!

https://eagleweb.kane.utah.gov/eaglesoftware/eagleweb/docSearchResults.jsp?searchId=0!
33!Brunner,!Dixie.!KCWCD&fluidity&celebrates&25&years,!Southern!Utah!News,!9/21/2017.!!

http://www.sunews.net/article.cfm?articleID=2247!
34!Brunner,!Dixie.!KCWCD&fluidity&celebrates&25&years,!Southern!Utah!News,!9/21/2017.!!

http://www.sunews.net/article.cfm?articleID=2247!

! 10!
!

!
!
!
!
C. Mr.+Noel’s+Activities+in+Support+of+the+LPP+
+
1. Mr.+Noel+Has+Actively+Lobbied+in+Favor+of+and+Pursued+
Legislation+and+Funding+for+the+LPP+
During!numerous!committee!meetings!at!the!Utah!Legislature!over!the!last!12+!years,!
Mr.!Noel!has!repeatedly!emphasized!what!he!describes!as!the!dire!need!for!the!LPP.!!He!
has!also!advocated!for,!lobbied!on!behalf!of,!and!authored!legislation!to!advance!the!LPP,!
including!to!secure!funding!for!the!LPP.!!In!violation!of!Utah!law!and!the!ethical!
standards!applicable!to!state!legislators!and!government!employees,!Mr.!Noel!has!
engaged!in!these!activities!–!both!on!his!own,!personal!behalf!and!on!behalf!of!the!Kane!
County!Water!District!V!without!total!disclosure!as!to!the!personal!benefits!he!may!
receive!from!the!project.!!

During!the!2018!legislative!session,!for!example,!Mr.!Noel!sponsored!HB!135,!
Extraterritorial!Jurisdiction!Amendments.!!This!bill!would!have!allowed!water!suppliers!
to!impose!a!oneVdollar!tax!on!all!Utahns’!water!bills.!!Part!of!that!revenue!would!have!
gone!to!fund!the!LPP!through!the!Water!Infrastructure!Restricted!Account.!!+
Mr.!Noel!also!delivered!official!testimony!about!the!LPP!at!a!meeting!of!the!Legislative!
Water!Development!Commission!on!August!22,!2017.!!In!addition!to!being!a!member!of!
the!Utah!House!of!Representatives!and!Chairman!of!the!House!Rules!Committee,!Mr.!
Noel!is!a!member!of!the!Water!Development!Commission.!!In!the!meeting,!Mr.!Noel!
testified!about!the!purported!demand!for!water!from!the!proposed!LPP,!with!the!intent!
of!convincing!legislators!that!the!LPP!and!taxpayer!spending!to!fund!it!are!necessary:!
!
“The&fact&that&we&need&this&project&that&it’s&essential&is&absolutely&true.”35&
!
In!his!testimony,!Mr.!Noel!not!only!failed!to!disclose!his!conflict!of!interest!as!a!
landowner,!he!also!presented!inaccurate!and!misleading!information!to!the!Commission.++
Mr.!Noel!implied!his!community!is!running!out!of!water!to!illustrate!the!purported!need!
for!water!in!Kane!County!from!the!LPP:!!!
!
“The&growth&that’s&happening&in&this&area&is&astronomical.&&We&need&to&look&at&a&
future&for&these&children…All&of&these&communities&in&southern&Utah&are&growing&
and&the&key&component&is&that&we’ve&got&to&have&the&water…We&absolutely&need&it,&
we&need&it&because&of&these&kids&you&see&on&this&picture&right&here….Having&this&
additional&4,000&acre&feet&of&water&come&in&is&absolutely&needed.”36!
!
During!the!2016!session,!Mr.!Noel!lobbied!heavily!in!favor!of!SB!80,!which!provided!for!
nearly!$40!million!of!annual!sales!tax!revenues!over!time!to!fund!the!LPP.!!With!just!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
35!Meeting!of!the!Legislative!Water!Development!Commission,!August!22,!2017!(audio!minute!2:10:00)!
36!Meeting!of!the!Legislative!Water!Development!Commission,!August!22,!2017!(audio!minute!2:10:00)!

1055 East 2100 South, Suite 201 ! Salt Lake City, UT 84106 ! 801-486-4776 ! utahrivers.org 11!
!
!

!
hours!left!in!the!session,!right!before!the!House!was!to!vote!on!SB!80,!Mr.!Noel!gave!an!
impassioned!speech!on!the!floor!of!the!House:!
!
“….We’ve&got&to&have&a&vision,&right&here&today,&we’ve&got&to&vote&for&this,&the&
allocation&of&it&will&work&out.&&I&urge&you&to&support&this&bill.”37&
!
SB!80!passed!through!the!House!of!Representatives!on!the!last!day!of!the!session.!!
!
During!the!2015!legislative!session,!Senator!J.!Stuart!Adams!and!Representative!Don!
Ipson!proposed!SB!281!to!establish!the!Water!Infrastructure!Restricted!Account!to!hold!
funds!to!be!used!for!two!large!water!development!projects,!one!of!which!was!the!LPP.!
Mr.!Noel!lobbied!his!fellow!House!members!to!support!the!bill!when!on!the!secondVtoV
last!day!of!the!session!he!spoke!on!the!House!Floor,:!
!
“…I&think&this&is&a&good&bill&and&we&should&support&it.”38&
!
During!his!speeches!in!support!of!SB!281!and!SB!80,!Mr.!Noel!did!not!orally!disclose!that!
he!is!the!Executive!Director!of!the!Kane!County!Water!District,!one!of!just!two!agencies!
slated!to!receive!water!from!the!LPP.!!Nor!did!he!orally!disclose!that!he!owns!land!in!
Johnson!Canyon,!which!may!receive!water!from!the!LPP.!
Finally,!during!the!2006!legislative!session,!Mr.!Noel!voted!for!the!Lake!Powell!Pipeline!
Development!Act!(LPPDA).!!The!LPPDA!authorized!the!project!and!created!the!LPP!
Management!Committee.!!As!noted,!Mr.!Noel!is!one!of!four!members!of!the!Management!
Committee.!
2.+++Mr.+Noel+Sought+to+Reduce!the!Grand+Staircase+Escalante+
National+Monument+to+Aid+Federal+Approval+for+the+LPP& !

Since!its!creation!in!1996,!Mr.!Noel!has!been!a!leading!critic!of!the!Grand!Staircase!
Escalante!National!Monument!(GSENM),!and!has!actively!lobbied!federal!politicians!to!
eliminate!or!reduce!the!size!of!the!Monument.!!On!December!4,!2017!Mr.!Noel!got!his!
wish!when!President!Trump!signed!an!executive!order!reducing!the!size!of!GSENM!and!
the!newly!created!Bear’s!Ears!National!Monument.!!!
This!is!significant!because!the!LPP’s!impacts!on!the!GSENM!were!one!of!the!more!
difficult!hurdles!for!Pipeline!proponents!to!clear!on!the!way!to!federal!approval!for!the!
Project.!!The!Bureau!of!Land!Management!(BLM),!the!agency!that!administers!the!
GSENM,!submitted!some!of!the!most!critical!agency!comments!for!the!License!
Application!for!the!LPP!in!2016,!when!the!Pipeline!entered!the!federal!permitting!
process.!!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
37!House!Floor!Debate,!(minute!2:13:14)!3/9/2016!

http://utahlegislature.granicus.com/MediaPlayer.php?clip_id=20216&meta_id=629198!!
38!House!Floor!Debate,!(minute!2:50:01)!3/11/2015!

http://utahlegislature.granicus.com/MediaPlayer.php?clip_id=18896&meta_id=552458!

! 12!
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!
!
!
!
The!creation!of!the!GSENM!had!significant!benefits!for!local!water!users!because!the!
Andalex!Company!donated!nearly!30,000!acreVfeet!of!water!rights!directly!to!the!Kane!
County!Water!District!–!7!times!the!quantity!of!LPP!water!slated!for!Kane!County.!

According!to!a!February!2018!report!by!the!Western!Values!Project,!Mr.!Noel!was!
intricately!involved!in!redrawing!the!boundaries!of!GSENM,!a!change!that!could!possibly!
benefit!himself!in!several!ways.!!According!to!the!report,!the!western!edge!of!the!new!
GSENM!boundary!contains!a!peculiar!cutout,!which!goes!directly!around!a!parcel!of!Mr.!
Noel’s!land,!removing!it!from!the!Monument’s!interior.!!The!new!southern!boundary!of!
the!GSENM!was!also!moved!north!so!that!the!proposed!alignment!of!the!LPP!no!longer!
cuts!through!the!Monument.!

D. As+Executive+Director,+Mr.+Noel+is+Creating+Substantial+Financial+
Impacts+to+Kane+County+Residents+from+Delivering+LPP+Water+to+Johnson+
Canyon+!
!
The!Lake!Powell!Pipeline!Development!Act!(Utah!Code!73V28V402)!mandates!the!entire!
project!cost!be!repaid!to!the!State!of!Utah!with!interest.!!!The!specific!financing!
mechanism!is!for!construction!and!financing!costs!to!be!paid!by!Utah!taxpayers!through!
bond!issuance,!then!a!50Vyear!loan!will!be!established!in!which!Kane!County!residents!
repay!their!portion!of!the!loan!with!interest.!
The!2008!Water!Needs!Assessment!expressly!recommends!that!LPP!water!be!
considered!the!last!source!of!future!water!supply!because!this!water!is!so!expensive:!
“Development&of&new&ground&water&supplies&and&agricultural&conversion&are&the&
most&viable&and&cost&effective&options,&with&ground&water&production,&having&less&
impact&on&the&local&economy,&being&implemented&first.&&Because%the%LPP%has%
specific%technical/environmental%concerns%and%is%significantly%more%
expensive%than%the%other%two%potential%supplies,%it%is%listed%last%in%the%order%of%
implementation.”39%
!!
“There&are&three&alternatives&considered&for&future&supply.&&Maximizing&
development&of&local&ground&water&resources&to&the&limit&allowed&by&the&State&
Engineer&is&the&leastRcost&option&and&should&be&exhausted&before&other&projects&are&
pursued.&&Conversion&of&agricultural&supplies,&either&through&conversion&of&
agricultural&rights&associated&with&urbanizing&land&or&through&“buy&and&dry”&
program,&is&the&second&alternative&listed.&&This&alternative&would&be&lower&in&cost&
than&the&LPP&for&lands&that&are&near&urbanizing&areas.”40&

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
39!2008!LPP!Water!Needs!Assessment,!Page!6V11!
40!2008!LPP!Water!Needs!Assessment,!Page!6V12!

1055 East 2100 South, Suite 201 ! Salt Lake City, UT 84106 ! 801-486-4776 ! utahrivers.org 13!
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!

!
A!common!practice!in!utility!planning!is!to!implement!the!next!cheapest!supply!source!
first!to!avoid!unwanted!commodity!rate!increases!in!the!future.!These!financial!concerns!
regarding!the!expensive!nature!of!LPP!water!were!prominently!publicized!by!a!group!of!
economists!who!researched!the!expected!debt!upon!Kane!County!residents!if!they!
participated!in!the!LPP.!!The!economists!prepared!a!lengthy!analysis!of!the!impacts!of!
the!LPP!debt!upon!Kane!County!residents.!!They!noted:!
“Unless&the&District&increased&its&property&tax&rate,&water&rates,&impact&fees,&or&
revenue&from&other&sources,&KCWD’s&cumulative&debt&would&grow&to&$663&million&
by&the&end&of&the&project&repayment&period,&even&assuming&its&property&tax&revenue,&
water&sales&revenue,&and&impact&fee&revenue&all&rise&with&its&projected&rate&of&
population&growth.”&&

The!economists!also!noted!that:!
“Although&one&potential&source&of&revenue&to&repay&Kane&County’s&portion&of&the&debt&would&
be&payments&commencing&on&the&completion&of&the&proposed&Green&River&Nuclear&Power&
Plant,&no&nuclear&power&plant&has&been&constructed&in&the&United&States&since&1977,&and&
this&plant&faces&strong&opposition.&Counting&on&this&plant&being&built&may&be&imprudent.&!

Moreover,&even&if&this&nuclear&power&plant&is&constructed,&KCWD&will&be&forced&to&raise&
property&taxes,&water&rates&or&impact&fees&significantly&to&repay&its&LPP&debt.&For&example,&
our&analysis&indicates&that&if&one&assumes&that&the&proposed&nuclear&power&plant&is&
constructed&by&2024,&one&way&for&KCWD&to&repay&its&debt&would&be&to:&!

Raise&impact&fees&344%,&to&an&average&of&$28,577&per&connection;&together&with&Raising&
water&rates&by&538%;&together&with&Raising&property&tax&rates&by&61%.”!

One!way!for!KCWD!to!repay!its!debt!would!be!to:!!
“Raise&impact&fees&344%,&to&an&average&of&$28,577&per&connection;&together&
with&Raising&water&rates&by&538%;&together&with&Raising&property&tax&rates&by&
61%.”41!
However,!the!economists!observed!that!Kane!County!Water!District!does!not!have!a!
repayment!plan,!which!is!problematic:!
“According&to&Section&11R36aR301&of&Utah&Code,&districts&that&assess&impact&fees&
with&service&area&populations&greater&than&5,000,&as&of&the&latest&US&census,&must&
prepare&an&Impact&Fee&Facilities&Plan&(or&General&Plan&that&covers&the&impact&fee&
schedule)&to&determine&the&public&facilities&required&to&serve&development&resulting&
from&new&development&activity.42&&KCWD&has&not&made&such&a&plan&available&to&the&
public&despite&collecting&impact&fees&on&a&service&area&population&of&approximately&
7,125&people43from&2685&accounts44&in&2010.”&

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
41!See!Appendix!C!
42!http://le.utah.gov/code/TITLE11/htm/11_36a030100.htm!
43!2010!US!Census:!http://quickfacts.census.gov/qfd/states/49/49025.html. !
44!Page!7!of!“Kane!County!Water!Conservancy!District!Financial!Statements!With!Other!Government!
Reports!For!the!year!ending!June!30,!2012!and!2011.”!

! 14!
!

!
!
!
!
III.++ Conflict+of+Interest+Violations+
A. Violations+of+the+Utah+Public+Officers’+and+Employees’+Ethics+Act+

Mr.!Noel!owns!hundreds!of!acres!of!land!worth!millions!of!dollars!in!the!Johnson!Canyon!
area,!an!area!expected!to!be!the!only!or!at!least!the!primary!region!that!will!receive!
water!from!the!LPP.!!In!his!capacity!as!the!appointed!Executive!Director!of!the!Kane!
County!Water!District,!one!of!the!recipients!of!water!from!the!proposed!Pipeline,!Mr.!
Noel!is!a!“public!officer”!as!defined!by!the!Utah!Public!Officers’!and!Employees’!Act![the!
Act],!and!as!such!he!is!subject!to!the!Act’s!requirements.!Utah!Code!Ann.!§!67V16V3(13)!
(defining!“public!officer”);!id.!§!67V16V11(2)(a)!(The!Act!is!applicable!to!“all!public!
officers.”).!Certain!of!the!Act’s!provisions!also!apply!to!Mr.!Noel!in!his!role!as!a!state!
legislator.!!Mr.!Noel’s!conduct!visVàVvis!the!LPP!violates!several!provisions!of!the!Act.!
Among!other!things,!the!Act!prohibits!both!public!officers!and!legislators!from!using!or!
attempting!to!use!their!official!positions!to!“further!substantially!the!officer’s!.!.!.!
personal!economic!interest.”!!Utah!Code!Ann.!§!67V16V4(1)(c)(i).!!By!lobbying!in!favor!of!
and!otherwise!supporting!the!LPP,!Mr.!Noel!could!be!using!his!official!position!to!secure!
personal!economic!benefits!and!violating!the!Act.!!Since!LPP!water!is!likely!to!only!serve!
the!Johnson!Canyon!subVbasin,!where!Mr.!Noel,!his!wife,!and!his!companies,!Noel!
Properties!and!CSM,!own!750!acres!of!land,!his!strident!advocacy!for!the!proposed!LPP!
as!the!Executive!Director!of!the!Kane!County!Water!District!raises!serious!concerns.!!
Even!if!the!Pipeline!water!is!not!delivered!to!Mr.!Noel’s!surface!properties!but!instead!is!
used!to!recharge!the!groundwater!resources!in!Johnson!Canyon,!the!value!of!Mr.!Noel’s!
properties!is!likely!to!substantially!increase.!
Mr.!Noel!is!also!in!violation!of!the!provision!of!the!Act!that!proscribes!“personal!
investments!in!any!business!entity!which!will!create!a!substantial!conflict!of!interest!
between!his!private!interests!and!his!public!duties.”!!Utah!Code!Ann.!§!67V16V9.!!Mr.!
Noel’s!ownership!interests!in!Noel!Properties!and!CSM!constitute!personal!investments!
in!business!entities,!and!those!ownership!interests!could!create!a!substantial!conflict!of!
interest!for!Mr.!Noel.!!In!his!role!as!a!public!officer!for!the!Kane!County!Water!District,!
Mr.!Noel!is!bound!to!serve!the!interest!of!the!public!and!to!fulfill!the!multiple!purposes!
of!the!Utah!Water!Conservancy!District!Act,!which!include!providing!for!“the!greatest!
beneficial!use!of!water!within!the!state,”!and!promoting!“the!greater!prosperity!and!
general!welfare!of!the!people!of!the!state.”!!Utah!Code!Ann.!§!17BV2aV1002.!!Securing!
water!in!excess!of!the!needs!for!the!region!that!could!benefit!his!own!lands,!would!be!
inconsistent!with!the!intent!of!the!Water!Conservancy!District!Act!and!what!should!be!
the!goals!of!the!Kane!County!Water!District.!!
Finally,!Mr.!Noel!is!the!owner!of!substantial!interests45!in!Noel!Properties!and!CSM,!both!
of!which!are!in!the!Kane!County!Water!District’s!service!area!and!thus!“subject!to!the!
regulation”!of!the!district!by!which!Mr.!Noel!is!employed.!!Utah!Code!Ann.!§!67V16V7(1).!!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
45!The!Act!defines!!

1055 East 2100 South, Suite 201 ! Salt Lake City, UT 84106 ! 801-486-4776 ! utahrivers.org 15!
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!

!
Accordingly,!Mr.!Noel!is!required!by!law!to!“disclose!any!such!position!held!and!the!
precise!nature!and!value!of”!his!interests!in!his!companies.!!Id.!!This!disclosure!must!be!
made!at!the!time!the!person!first!becomes!a!public!officer,!and!must!be!made!again!
whenever!his!interest!the!business!entities!or!its!value!changes!significantly.!!Id.!!The!
disclosure!must!be!made!in!the!form!of!a!sworn!statement!filed!with!the!State!Attorney!
General!and!made!available!to!the!public.!!Id.&§!67V16V7(2).!!We!contacted!the!Attorney!
General’s!Office!and!confirmed!they!have!no!such!statement!on!file!from!Mr.!Noel!from!
2006!through!the!present.46!!We!hereby!request!your!office!conduct!a!complete!
investigation!of!Mr.!Noel’s!compliance!with!this!Act.!
The!penalties!for!knowingly!and!intentionally!violating!the!Act!are!serious.!!Utah!Code!
Ann.!§!67V16V12(1)V(2).!!These!penalties!are!severe!for!a!reason;!they!are!designed!to!
promote!the!purpose!of!the!Act,!which!is!“to!promote!the!public!interest!and!strengthen!
the!faith!and!confidence!of!the!people!of!Utah!in!the!integrity!of!their!government.”!!Id.&
§!67V16V2.!
B. Violations+of+the+Ethics+Requirements+Governing+Legislators+
Title!JR6!of!the!Joint!Rules!Governing!General!Legislative!Organization!and!Process!sets!
forth!the!ethics!requirements!for!members!of!the!Utah!Senate!and!House!of!
Representatives.!!Mr.!Noel’s!conduct,!as!detailed!above,!indicates!possible!violations!of!a!
number!of!provisions!in!Title!JR6.!!!
1. JR6W1W102(2)(b)

Section!JR6V1V102(2)(b)!provides!that!legislators!may!not!be!paid!to!“lobby,!consult,!or!
to!further!the!interests!of!any!legislation!or!legislative!matter.”!!The!facts!set!forth!above!
reveal!that!Mr.!Noel!has!lobbied!extensively!in!favor!of!the!LPP,!which!may!benefit!both!
Mr.!Noel!personally!and!his!employer,!the!Kane!County!Water!District.!!Mr.!Noel,!as!
Executive!Director!of!the!Kane!County!Water!District,!is!paid!a!substantial!salary!to!
further!the!water!district’s!interests.!!It!follows!that!Noel’s!lobbying!and!advocacy!for!the!
LPP!are!paid!lobbying!on!behalf!of!the!water!district,!which!is!prohibited!by!Section!JR6V
1V102(2)(b).!
2. JR6W1W102(2)(g)+
!
Under!JR6V1V102(g),!legislators!may!not!use!“their!official!position!to!secure!privileges!
for!themselves!or!others.”!!Mr.!Noel’s!use!of!his!position!as!a!state!legislator!to!lobby!in!
favor!of!the!LPP!may!represent!an!effort!to!secure!privileges!for!the!water!district!and!
possibly!himself!and/or!his!companies.!!Because!the!water!delivered!by!the!LPP!may!
possibly!benefit!Mr.!Noel,!his!companies,!and!the!water!district!of!which!he!is!the!
director,!Mr.!Noel’s!use!of!his!position!to!further!LPPVrelated!legislation!and!funding!may!
be!in!violation!of!this!provision.!
!
!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
46!Phone!and!email!communication!with!the!State!Agency!Council!Division!of!the!Attorney!General’s!
Office,!3/15/2018.!

! 16!
!

!
!
!
!
3. JR6W1W102(2)(h)+and+JR6W1W201

Section!JR6V1V102(2)(h)!requires!legislators!to!disclose!“any!conflict!of!interest!on!any!
legislation!or!legislative!matter”!while!the!legislature!is!in!session.!!Disclosure!must!be!
made!in!accordance!with!JR6V1V201.!!In!turn,!JR6V1V201!provides!that!legislators!must!
“file!a!financial!disclosure!form!in!compliance!with!Utah!Code!Section!20AV11V1603!and!
according!to!the!requirements!of!this!section.”!!JR6V1V201(2).!!The!disclosure!form!must!
be!filed!“on!the!first!day!of!each!general!session!of!the!Legislature”!and!made!available!to!
the!public.!!JR6V1V201(4).!
!
In!addition,!if!a!legislator!has!a!conflict!of!interest!that!is!not!set!forth!in!the!financial!
disclosure!form,!the!legislator!must!“orally!declare!to!the!committee!or!body!before!
which!the!matter!is!pending!(i)!that!the!legislator!may!have!a!conflict!of!interest;!and!(ii)!
what!that!conflict!is.”!!JR6V1V201(5)(a).!!
!
Mr.!Noel’s!financial!disclosures!are!not!in!compliance!with!these!provisions.++While!Mr.!
Noel!has!disclosed!that!he!is!an!employee!of!the!Kane!County!Water!District!and!has!
ownership!in!CSM,!he!has!failed!to!fully!disclose!his!ownership!interests!in!Noel!
Properties!LLC!as!well!as!his!water!rights!holdings.!!As!discussed!above,!because!his!land!
and!companies!may!receive!water!from!the!LPP,!these!financial!interests!may!create!a!
conflict!of!interest!with!respect!to!his!lobbying!in!favor!of!the!LPP,!which!conflict!of!
interest!must!be!disclosed.!!
!
C.++ Violations+of+the+Lobbyist+Disclosure+and+Regulation+Act+

For!over!a!decade!Mr.!Noel!has!been!the!chief!advocate!for!the!proposed!LPP!at!the!Utah!
Legislature,!repeatedly!lobbying!his!fellow!legislators!in!support!of!funding!the!project.!!
As!a!legislator,!Mr.!Noel!is!allowed!to!urge!his!fellow!legislators!to!vote!yes!or!no!on!any!
particular!bill.!!However,!because!Mr.!Noel!is!also!a!government!officer,!landowner,!and!
real!estate!developer,!his!lobbying!work!on!LPPV!related!legislation!is!subject!to!the!
requirements!of!the!Lobbyist!Disclosure!and!Regulation!Act.!!Although!government!
officers!are!not!required!to!register!as!lobbyists!with!the!state,!they!are!still!lobbyists!
and!subject!to!the!same!accountability!and!oversight!as!registered!lobbyists!who!are!not!
public!officials.!
!
Moreover,!even!though!Mr.!Noel!is!not!required!to!register!as!a!lobbyist!in!his!capacity!
as!a!government!officer,!Mr.!Noel!arguably!should!be!subject!to!the!lobbyist!registration!
requirements!applicable!to!members!of!the!public.!!As!noted,!Mr.!Noel!has!acted!as!a!
lobbyist!for!legislation!that!could!possibly!benefit!his!own!personal!interests!and!those!
of!his!companies,!Noel!Properties!and!CSM.!!!Because!Mr.!Noel!may!receive!
compensation!from!his!private!companies!that!hold!land!in!the!Johnson!Canyon!area,!
and!which!may!receive!water!from!the!proposed!LPP,!he!should!be!required!to!register!
as!a!lobbyist!acting!on!behalf!of!Noel!Properties!and!CSM.!

1055 East 2100 South, Suite 201 ! Salt Lake City, UT 84106 ! 801-486-4776 ! utahrivers.org 17!
!
!

!
!
Mr.!Noel!is!also!in!violation!of!the!provision!of!the!Lobbyist!Disclosure!and!Regulation!
Act!that!prohibits!the!intentional!communication!of!any!false!information!to!public!
officers!that!materially!relates!to!matters!within!the!officials’!responsibility.!!Utah!Code!
Ann.!§!36V11V303.!!Mr.!Noel!has!intentionally!presented!inaccurate!and!misleading!
information!to!Utah!legislators!in!the!course!of!asserting!the!purported!need!for!the!LPP!
in!Kane!County.!!Specifically,!in!his!official!testimony!during!an!August!22,!2017!meeting!
of!the!Legislative!Water!Development!Commission,!of!which!he!is!also!a!member.+Mr.!
Noel!misrepresented!Kane!County’s!growth!to!justify!his!argument!that!LPP!water!is!
crucial!to!meet!the!county’s!demand:!
!
“The&growth&that’s&happening&in&this&area&is&astronomical.&&We&need&to&look&at&a&
future&for&these&children…All&of&these&communities&in&southern&Utah&are&growing&
and&the&key&component&is&that&we’ve&got&to&have&the&water…We&absolutely&need&it,&
we&need&it&because&of&these&kids&you&see&on&this&picture&right&here….Having&this&
additional&4,000&acre&feet&of&water&come&in&its&absolutely&needed.”47!
!
The!discrepancies!between!Mr.!Noel’s!statements!and!the!actual!data!regarding!the!
growth!and!water!needs!of!Kane!County!is!disturbing!and!reveals!a!pattern!of!
intentional!misinformation!being!delivered!by!Mr.!Noel!and!his!employer,!the!Kane!
County!Water!District.!&
!
Most!Utah!legislators!presume!the!purpose!of!the!LPP!for!Kane!County!is!to!deliver!
water!to!a!growing!population!facing!a!future!water!shortage,!in!large!part!due!to!Mr.!
Noel’s!lobbying!and!advocacy!for!the!LPP.!!However,!this!is!simply!not!the!case!–!the!
water!to!be!delivered!by!the!LPP!to!Kane!County!is!not!needed!to!meet!the!area’s!needs.!!
Because!of!Mr.!Noel’s!decade!of!lobbying!activities!at!the!Utah!Legislature,!few!Utah!
legislators!are!aware!that!the!water!from!the!LPP!will!be!delivered!to!a!relatively!
unpopulated,!rural!area!of!Kane!County!known!as!Johnson!Canyon,!which!has!a!
population!of!fewer!than!300!people48.!Fewer!legislators!still!know!that!Mr.!Noel!owns!
between!$4V9!million!of!land!in!the!area!slated!to!receive!water!from!the!proposed!LPP49.!
In!short,!by!deliberately!misleading!his!fellow!legislators!and!the!Kane!County!Water!
District!about!Kane!County’s!water!needs,!all!in!order!to!gain!support!for!funding!the!
LPP,!Mr.!Noel!is!violating!the!Lobbyist!Disclosure!and!Regulation!Act.!
!
D.++ Possible+Violations+of+the+Lake+Powell+Pipeline+Development+Act+
It!also!appears!that!Mr.!Noel!has!substantially!downplayed!the!fact!that!the!LPP!
Development!Act!requires!the!taxpayers!of!the!Kane!County!Water!District!to!repay!the!
debt!that!will!arise!from!the!construction!and!financing!of!the!LPP.!!As!Executive!
Director!of!the!Kane!County!Water!District,!Mr.!Noel!is!fully!aware!that!the!LPP!debt!will!
be!massive,!and!that!its!repayment!will!require!the!imposition!of!significant!increases!to!
water!rates,!impact!fees,!and!property!taxes!in!the!future.!!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
47!Meeting!of!the!Legislative!Water!Development!Commission,!August!22,!2017!(audio!minute!2:10:00)!
48!LPP!Water!Needs!Assessment,!2011.!Page!3V9!
49!https://eagleweb.kane.utah.gov/eaglesoftware/taxweb/results.jsp!

! 18!
!

!
!
!
!
As!Executive!Director!of!the!Kane!County!Water!District,!Mr.!Noel!is!bound!to!ensure!
that!the!District’s!participation!in!any!project!is!financially!sound!and!not!based!on!
wishful!thinking.!!The!determination!of!whether!Kane!County!residents!can!repay!the!
LPP!debt!is!not!a!complicated!matter.!!Extensive!analyses!of!the!impacts!of!LPP!debt!
upon!Kane!County!residents!has!been!conducted,!including!the!Division’s!Water!Needs!
Assessments,!which!indicate!that!LPP!water!is!the!most!expensive!future!water!source!
for!Kane!County.!!Yet!Mr.!Noel!and!the!Kane!County!Water!District!have!not!done!the!due!
diligence!to!evaluate!the!affordability!of!LPP.!!Since!repaying!the!LPP!costs!will!require!
draconian!increases!to!Kane!County’s!water!rates,!impact!fees!and!property!taxes,!Mr.!
Noel!is!abandoning!his!duty!to!implement!the!least!expensive!water!supply!source!for!
Kane!County.!

The!fact!that!Mr.!Noel!is!so!heavily!involved!in!Johnson!Canyon!real!estate!holdings!
which!may!possibly!receive!water!from!the!LPP!makes!this!observation!worthy!of!
investigation!because!it!appears!that!Mr.!Noel!may!be!placing!his!own!personal!interests!
above!those!of!Kane!County!residents!and!the!constituents!within!his!legislative!district.!
!
IV.+ Conclusion+
As!outlined!above,!Mr.!Noel!may!be!in!violation!of!multiple!provisions!of!Utah!Law.!!
Given!these!serious!concerns,!we!respectfully!request!that!the!Utah!Attorney!General’s!
Office!and!the!U.S.!Attorney’s!Office!investigate!Mr.!Noel’s!potential!conflicts!associated!
with!the!Division!of!Water!Resources’!proposed!Lake!Powell!Pipeline.!!Thank!you!for!
your!consideration!of!this!matter.!
+
+
Sincerely,!
!

Zachary!Frankel!
Executive!Director+ +

1055 East 2100 South, Suite 201 ! Salt Lake City, UT 84106 ! 801-486-4776 ! utahrivers.org 19!
!
!

!
Appendix+A+
Three+of+Four+Kane+County+Subbasins+Won’t+Receive+LPP+Water+

The!proposed!Lake!Powell!Pipeline!would!have!a!limited!service!area!within!KCWCD.!
Although!the!table!below!shows!population!growth!forecasts!for!other!areas!of!what!is!
described!as!“KCWCD!Subbasins,”!most!of!these!residents!do!not!receive!water!from!the!
Kane!County!Water!District,!nor!are!they!likely!to!receive!water!in!the!future!from!the!
proposed!LPP.!!
!
“Although&KCWCD&encompasses&all&of&Kane&County,&much&of&the&county&will&not&be&served&by&the&
Lake&Powell&Pipeline.&&Existing&KCWCD&water&supply&customers&include&rural&developments&
located&in&the&Cedar&Mountain&and&Johnson&Canyon&areas.&&KCWCD&owns&and&operates&wells&in&
the&Johnson&Canyon&area&to&meet&these&demands.”50!

!
!&
According!to!the!2011!Water!Needs!Assessment,!existing!KCWCD!customers!are!rural!
developments!located!in!the!Cedar!Mountain!and!Johnson!Canyon!areas.!However,!due!
to!its!distance!from!the!proposed!pipeline,!Cedar!Mountain!developments!will!not!
receive!any!project!water51:!
“Duck&Creek&is&an&area&in&the&northwest&corner&of&Kane&County&on&Cedar&Mountain&
that&is&served&by&KCWCD.&However,&it&will&not&be&served&by&the&Lake&Powell&Pipeline&
due&to&its&remote&location.&

i. East+Fork+Virgin+River+Won’t+Receive+LPP+Water+
There!is!no!need!for!water!from!the!Pipeline!in!the!East!Fork!of!the!Virgin!River,!the!
areas!including!both!Orderville!and!Glendale:!!!
“Although&extremely%unlikely,&KCWCD&could&conceivable&construct&a&pipeline&from&
the&LPP&to&the&Orderville/Glendale&area&to&meet&future&demands&in&that&region&of&

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
50!2016!LPP!Water!Needs!Assessment,!Page!1V5!
51!2011&Lake&Powell&Pipeline&Water&Needs&Assessment,!Page!5V25 !
! 20!
!

!
!
!
!
the&County.&&The&Lake&Powell&Pipeline&would&never&serve&the&Sevier&River&Basin&
because&of&its&remote&location&relative&to&the&pipeline&alignment.”52&

ii. Kanab+Creek+is+Unlikely+to+Receive+LPP+Water+

There!is!an!abundance!of!groundwater!available!to!satisfy!future!population!growth!for!
the!area!in!Kanab,!in!addition!to!the!future!conversion!of!agricultural!water!as!will!occur!
when!growth!encroaches!upon!irrigated!farmlands.!!Many!residents!of!Kanab!are!
concerned!about!the!debt!and!expected!future!water!rate!increases!if!they!participate!in!
the!LPP.!
The!2008!and!2011!Water!Needs!Assessments!document!that!Kane!County’s!
participation!in!the!LPP!was!auxiliary!to!its!water!needs.!!Both!documents!indicate!the!
implication!that!Kane!County!could!participate!simply!because!the!Pipeline!route!
crosses!through!Kane!County53.!!This!can!be!seen!in!the!following:!
“The&LPP&will&traverse&Kane&County&on&its&way&to&Washington&and&Iron&Counties.&
Therefore,&there&is&an&opportunity&for&KCWCD&to&participate&in&the&LPP&simply&out&
of&convenience.”&

In!addition,!the!city!of!Kanab,!which!constitutes!the!majority!of!Kane!County’s!
population!with!60V70%!of!it!residents,!has!ample!water!to!satisfy!future!growth!needs.!!
The!2008!LPP!Water!Needs!Assessment!reiterates!the!lack!of!need!inside!the!city!of!
Kanab!to!participate!in!the!LPP!in!the!future54:!
“The&only&substantial&community&in&Kane&County&–&the&City&of&Kanab&–&has&
developed&its&own&water&supply&system&over&time,&and&may&continue&to&meet&the&
needs&of&M&I&customers&within&its&current&city&boundaries,&and&within&future&
annexation&areas&as&well.”&

Personal!communication!with!residents!of!Kanab!and!Kanab!City!stakeholders!revealed!
that!Kanab’s!groundwater!pumping!system!has!an!abundance!of!supply!available!for!
future!use.!!City!stakeholders!have!indicated!their!belief!that!the!city!could!double!in!
population!size!without!requiring!additional!groundwater!wells!to!be!drilled.!!!
Indeed,!up!until!Iron!County!withdrew!from!the!LPP,!as!described!below,!all!of!Kane!
County’s!participation!in!the!LPP!appears!to!be!to!pump!very!expensive!LPP!water!into!
the!ground!because!it!would!not!be!needed!for!anyone’s!use55:!
“KCWCD&would…use&it&to&recharge&ground&water&aquifers&such&as&in&the&Johnson&
Canyon&area&to&extend&the&life&of&the&ground&water&basin.”&

&
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
52!2016!LPP!Water!Needs!Assessment,!Page!4V32!
53!2011!Lake!Powell!Pipeline!Water!Needs!Assessment,!Page!6V13!
54!2008!Lake!Powell!Pipeline!Water!Needs!Assessment !
55!2011!Lake!Powell!Pipeline!Water!Needs!Assessment,!Page!4V93!

1055 East 2100 South, Suite 201 ! Salt Lake City, UT 84106 ! 801-486-4776 ! utahrivers.org 21!
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!

!
&

iii. Wahweap+Creek+Won’t+Receive+LPP+Water+

The!Wahweap!Creek!Subbasin!will!not!receive!water!from!the!LPP!because!it!isn’t!
needed!and!can’t!be!economically!delivered!to!this!area!of!Kane!County:!
!
“A&combination&of&existing&and&new&groundwater&supplies&is&sufficient&to&meet&
future&needs&beyond&the&planning&horizon&for&the&Wahweap&Creek&subbasin.”56&
!
Roughly!half!of!KCWD!customers!are!in!the!Duck!Creek!Area!of!Kane!County,!listed!in!
the!area!above!as!Wahweap!Creek,!who!will!not!receive!water!from!the!LPP:!!
!
“Duck&Creek&is&an&area&in&the&northwest&corner&of&Kane&County&on&Cedar&Mountain&
that&is&served&by&KCWCD.&&However,&it&will&not&be&served&by&the&Lake&Powell&Pipeline&
due&to&its&remote&location.”57&
&
+

+
+
+
+

+
+
+

+
+
+
+

+
+
+ +

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
56!2016!LPP!Water!Needs!Assessment,!Page!ESV4!
57!2016!LPP!Water!Needs!Assessment,!Page!5V18 !
! 22!
!

!
!
!
!
Appendix+B+
Mr.+Noel’s+Property+&+Water+Rights+Ownership+in+Kane+County!

Land+Holdings+
Noel+Properties+LLC!(284+acres)!
PO!Box!301!!
Kanab,!UT!84741!
!
1)!Account!#!0059348!
Parcel!#!3V4.5V18V1!
40.00!acres!
Property!has!a!right!of!way!for!water!works!
https://eagleweb.kane.utah.gov/eaglesoftware/taxweb/account.jsp?accountNum=0059
348!
!
2)!Account!#!0059405!
Parcel!#!3V4.5V20V1!
40.00!acres!
https://eagleweb.kane.utah.gov/eaglesoftware/taxweb/account.jsp?accountNum=0059
405!
!
3)!Account!#!0060148!
Parcel!#!3V5V24V5!
52.00!acres!
805!N!Johnson!Canyon!Rd.!
https://eagleweb.kane.utah.gov/eaglesoftware/taxweb/account.jsp?accountNum=0060
148!
Easement!to!KCWD:!
https://eagleweb.kane.utah.gov/eaglesoftware/eagleweb/viewDoc.jsp?node=DOC661S
75!
!
4)!Account!#!0073026!
Parcel!#!4V5V6V2!
1.50!acres!
https://eagleweb.kane.utah.gov/eaglesoftware/taxweb/account.jsp?accountNum=0073
026!
!
5)!Account!#!0073091!
Parcel!#!KV16V22VANNEX!
74.30!acres!
https://eagleweb.kane.utah.gov/eaglesoftware/taxweb/account.jsp?accountNum=0073
091!

1055 East 2100 South, Suite 201 ! Salt Lake City, UT 84106 ! 801-486-4776 ! utahrivers.org 23!
!
!

!
!
6)!Account!#!0073109!
Parcel!#!4V6V12V1!
74.327!acres!
https://eagleweb.kane.utah.gov/eaglesoftware/taxweb/account.jsp?accountNum=0073
109!
!
7)!Account!#!0136880!
Parcel!#!3V5V13V7!
2.14!acres!
https://eagleweb.kane.utah.gov/eaglesoftware/taxweb/account.jsp?accountNum=0136
880!
!
Michael+&+Sherry+Noel!(213+acres)!
850!N.!Johnson!Canyon!Rd.!
Kanab,!UT!84741!
!
1)!Account!#!0059397!
Parcel!#!3V4.5V19V5!
213.50!acres!
Market!value!$1.4!million!
https://eagleweb.kane.utah.gov/eaglesoftware/taxweb/account.jsp?accountNum=0059
397!
!
CSM+Agriculture+LLC+(253+acres)+
PO!Box!301!
Kanab,!UT!84741!
!
1)!Account!#!0059355!
Parcel!#!3V4.5V19V1!
169.61!acres!
https://eagleweb.kane.utah.gov/eaglesoftware/taxweb/account.jsp?accountNum=0059
355!
!
2)!Account!#!0059652!
Parcel!#!3V4.5V30V3!
49.50!acres!
https://eagleweb.kane.utah.gov/eaglesoftware/taxweb/account.jsp?accountNum=0059
652!
!
3)!Account!#!0060130!
Parcel!#!3V5V24V4!
33.90!acres!
https://eagleweb.kane.utah.gov/eaglesoftware/taxweb/account.jsp?accountNum=0060
130!
+
+

! 24!
!

!
!
!
!
Water+Rights++
(Totals!of!271.51!acre!feet)!
Noel,+Michael+E+and+Sherry+M+
!
1)!85V131!
Amount:!234.5!acreVfeet!
Location:!Johnson!Canyon!
!
2)!85V127!
! Amount:!.002!cfs!(.54!acVft.!for!1!domestic!unit)!
! Location:!Johnson!Canyon!
!
3)!85V128!
! Amount:!.002!cfs!(1.45!acVft.)!
! Location:!Johnson!Canyon!
!
4)!85V87!
! Amount:!.045!cfs!(2.8!acVft.!=!100!livestock!units!x!.54!acVft.)!
! Location:!Outside!of!Johnson!Canyon!–!Lost!Spring!Dr.!
!
5)!85V225!!
Diligence!Claim/Proposed!Determination!
!
6)!85V226!!
Diligence!Claim/Proposed!Determination!
!
7)!85V129!!
Diligence!Claim/Proposed!Determination!
!
8)!85V130!
Diligence!Claim/Proposed!Determination!
!
9)!a8584!
+ Change:!Segregated!to!current!water!rights!
!
10)!85V140!
Diligence!Claim/Proposed!Determination!
!
11)!85V141!!
Diligence!Claim/Proposed!Determination!
+
+
+

1055 East 2100 South, Suite 201 ! Salt Lake City, UT 84106 ! 801-486-4776 ! utahrivers.org 25!
!
!

!
CSM+Agriculture:+
!
1)!85V1128!
! Amount:!22!acreVfeet!
! Location:!Johnson!Canyon! !
!
2)!85V406!
! Amount:!.011!cfs!(1.08!acVft.!=!.54!acVft./person!x!2)!
! Location:!Johnson!Canyon!
!
3)!85V407!
! Amount:!.011!cfs!(1.08!acVft.!=!.54!acVft./person!x!2)!
! Location:!Johnson!Canyon!
!
4)!85V30!
! Amount:!0.015!cfs!(10.86!acVft.)!
! Location:!Johnson!Canyon!
!
5)!85V1061!
+ Change:!Segregated!to!current!water!rights!
!
6)!85V329!
! Change:!Segregated!to!current!water!rights!
!
7)!a36172!
! Change:!segregated!to!current!water!rights!
!
8)!a28132a!
Change:!Segregated!to!current!water!rights!
!
9)!a22616!
! Change:!Rejected!by!UDWRi!
!
10)!85V408!
Diligence!Claim/Proposed!Determination!
!
11)!85V409!
Diligence!Claim/Proposed!Determination!
+ +

! 26!
!

!
!
!
!
+
+

+
+
+

+
Appendix+C+
+

2013+Kane+County+LPP+Economic+Analysis+
+
!

1055 East 2100 South, Suite 201 ! Salt Lake City, UT 84106 ! 801-486-4776 ! utahrivers.org 27!
!
!

!
Honorable)Governor)Herbert)
Utah)State)Capitol)Complex)
350)North)State)Street,)Suite)200)
PO)Box)142220)
Salt)Lake)City,)Utah)84114E2220)
)
Honorable)President)Niederhauser)
Utah)State)Senate)
320)State)Capitol)
PO)Box)145115)
Salt)Lake)City,)Utah)84114)
)
Honorable)Speaker)Lockhart)
Utah)House)of)Representatives)
350)North)State,)Suite)350)
PO)Box)145030)
Salt)Lake)City,)Utah)84114)
)
October)7,)2013)
)
Over)the)last)several)years)there)has)been)extensive)discussion)about)the)proposed)
Lake)Powell)Pipeline)(“LPP”))and)the)consequent)repayment)obligations)of)the)
taxpayers)of)Washington)County.))The)Kane)County)Water)Conservancy)District)
(“KCWD”))has)also)expressed)an)interest)in)participating)in)the)LPP,)despite)water)
from)the)LPP)not)being)needed)for)Kane)County’s)growth)to)2060)based)on)the)2011)
Water)Needs)Assessment)of)the)Utah)Division)of)Water)Resources.))We)have)
conducted)an)initial)analysis)of)the)indebtedness)to)the)KCWD)and)the)taxpayers)of)
Kane)County)by)virtue)of)their)participation)in)the)LPP.))The)following)pages)
summarize)our)initial)findings,)based)on)public)documents)made)available)by)
various)Utah)agencies.)
)
Based)on)this)analysis,)we)have)major)concerns)about)the)ability)of)the)KCWD)to)
repay)debt)associated)with)the)LPP.))If)the)Kane)County)Water)District)receives)its)
desired)5.5%)share)of)the)LPP’s)water)and)of)the)LPP’s)roughly)$1)billion)cost,)then)
assuming)an)interest)rate)of)4%)and)a)50Eyear)repayment)period,)the)KCWD)will)
have)to)repay)$2.5)million)of)LPP)costs)every)year)($344)for)every)man,)woman,)and)
child)currently)in)the)county),)in)addition)to)its)existing)debt)schedule.))Unless)the)
District)increased)its)property)tax)rate,)water)rates,)impact)fees,)or)revenue)from)
other)sources,)KCWD’s)cumulative)debt)would)grow)to)$663)million)by)the)end)of)
the)project)repayment)period,)even)assuming)its)property)tax)revenue,)water)sales)
revenue,)and)impact)fee)revenue)all)rise)with)its)projected)rate)of)population)
growth.)
)
Although)one)potential)source)of)revenue)to)repay)Kane)County’s)portion)of)the)debt)
would)be)payments)commencing)on)the)completion)of)the)proposed)Green)River)
Nuclear)Power)Plant,)no)nuclear)power)plant)has)been)constructed)in)the)United)
States)since)1977,)and)this)plant)faces)strong)opposition.))Counting)on)this)plant)
being)built)may)be)imprudent.)
)
Moreover,)even)if)this)nuclear)power)plant)is)constructed,)KCWD)will)be)forced)to)
raise)property)taxes,)water)rates)or)impact)fees)significantly)to)repay)its)LPP)debt.))
For)example,)our)analysis)indicates)that)if)one)assumes)that)the)proposed)nuclear)
power)plant)is)constructed)by)2024,)one)way)for)KCWD)to)repay)its)debt)would)be)
to:)
)
• raise)impact)fees)344%,)to)an)average)of)$28,577)per)connection;)together)
with)
• raising)water)rates)by)538%;)together)with)
• raising)property)tax)rates)by)61%.)
)
Of)course,)increasing)water)rates)this)much)would)significantly)decrease)Kane)
County)residents’)demand)for)water,)making)the)LPP’s)water)even)more)superfluous)
than)the)Division)of)Water)Resources)currently)calculates)it)to)be.))Furthermore,)if)
the)proposed)nuclear)power)plant)is)not)constructed)by)2024,)these)increases)in)
water)rates,)impact)fees)and)property)taxes)will)fall)short)of)what)will)be)needed)to)
make)the)debt)payments.)
)
We)conclude)from)our)initial)analysis)that)these)debt)obligations)raise)serious)
questions)about)the)KCWD’s)participation)in)the)LPP.))The)State)should)not)facilitate)
Kane)County’s)acquisition)of)this)debt)without)a)careful)and)thoroughly)detailed)
study)of)whether)Kane)County)residents)have)the)capacity)to)repay)it.)
)
Thank)you)for)the)opportunity)to)contribute)to)this)discussion.)
)
Sincerely,)
)
Gail)Blattenberger) Delworth)Gardner)
Associate)Professor)Emeritus) Professor)Emeritus)
Department)of)Economics) Department)of)Economics)
University)of)Utah) Brigham)Young)University)
) )
Gabriel)Lozada) Professor)Arthur)Caplan)
Associate)Professor) Professor))
Department)of)Economics) Applied)Economics))
University)of)Utah) Utah)State)University)
) )
Thomas)Maloney) ) Kenneth)Jameson) )
Professor)and)Chair) Professor)Emeritus) )
Department)of)Economics) Department)of)Economics) )
University)of)Utah) University)of)Utah)
) )
Richard)Fowles) Gunseli)Berik)
Associate)Professor) Professor)
Department)of)Economics) Department)of)Economics)
University)of)Utah) University)of)Utah)
) )
Anne)Yeagle) Haimanti)Bhattacharya)
Lecturer) Assistant)Professor)
Department)of)Economics) Department)of)Economics)
University)of)Utah) University)of)Utah)
) )
Korkut)Erturk) Rudiger)Von)Arnim)
Professor) Assistant)Professor)
Department)of)Economics) Department)of)Economics)
University)of)Utah) University)of)Utah)
) )
Hans)Ehrbar) Steve)Reynolds)
Associate)Professor) Professor)
Department)of)Economics) Department)of)Economics)
University)of)Utah) University)of)Utah)
) )
Lance)Girton) Minqi)Li)
Professor) Associate)Professor)
Department)of)Economics) Department)of)Economics)
University)of)Utah) University)of)Utah)
) )
Cihan)Bilginsoy) Mark)Thomas)
Professor) Clifton)Consulting))
Department)of)Economics) Salt)Lake)City,)UT)
University)of)Utah) )
)
Codrina)Rada)
Assistant)Professor)
Department)of)Economics)
University)of)Utah)
)
)
)
)
)
)
)
)
)
)
)
)
Lake%Powell%Pipeline%Feasibility%for%Kane%County%Water%District%
%
The$following$summarizes$concerns$about$the$ability$of$the$Kane$County$Water$Conservancy$
District$(KCWD)$to$repay$debt$issued$by$the$State$of$Utah$for$their$financial$obligation$for$
participating$in$the$proposed$Lake$Powell$Pipeline.$$The$Lake$Powell$Pipeline$(LPP)$
Development$Act$(Utah$Code$73H28H402)$mandates$the$entire$project$cost$be$repaid$to$the$State$
of$Utah$with$interest.$$
$
1.%Kane%County%Water%District%(KCWD)%Questionable%Water%Needs.$$The$Governor’s$Office$of$
Planning$and$Budget$2012$Baseline$Population$Projections$estimates$Kane$County$will$grow$by$
11,375$residents$by$the$year$2060.1$$Based$on$this$growth,$projected$water$demands$indicate$no$
need$for$additional$water$in$Kane$County$from$the$Lake$Powell$Pipeline,$according$to$the$2011$
Water$Needs$Assessment$prepared$for$the$Utah$Division$of$Water$Resources$(DWRe):2$
$
“The%difference%between%the%projected%KCWCD%2060%demand%of%5,850%ac>ft/yr%and%the%existing%supply%of%
4,040%ac>ft/yr%is%1,810%ac>ft/yr.%%For%all%four%subbasins,%a%combination%of%existing%and%new%ground%water%
supplies%is%sufficient%to%meet%all%future%needs%within%the%planning%horizon.%%Thus%based%strictly%on%water%
need,%LPP%supplies%are%not%needed%in%the%KCWCD%service%area%within%the%2060%planning%horizon.”%(Page%
ES>24)%
$
If$KCWD$does$not$receive$water$from$the$LPP$it$will$still$have$10,810$acreHfeet$of$additional$
supply$in$2060$from$“likely$projects,”$and$they$will$only$have$need$for$1,810$acHft/year$of$that.3$$
Kane$County$clearly$has$no$need$for$LPP$water.$
$
According$to$the$2011$DWRe$Water$Needs$Assessment,$KCWD$uses$420.3$gallons$per$capita$per$
day$(“GPCD”;$p.$ESH7)$and$had$0%$water$conservation$savings$from$2000H2009$(p.$ESH10).$$If$
KCWD$encouraged$residents$to$get$closer$to$the$national$average$of$171$GPCD,$estimated$by$
USGS,4$or$state$average$of$295$GPCD,$estimated$by$the$Utah$Division$of$Water$Resources,5$the$
district$could$extend$their$water$supply$even$further$into$the$future.$
$
2.Estimate%of%Existing%Revenues%vs.%Debt%Service%for%KCWD.$
$
One$important$question$is$whether$or$not$local$taxpayers$can$support$Kane$County’s$repayment$
obligation$for$the$LPP.$$A$review$of$the$KCWD’s$revenue$streams$is$warranted,$based$on$the$2012$
Audited$Financial$Statement$Prepared$for$KCWD,$the$“2012$KCWDAFS”.6 $
%

Water%Sales%Revenues.%%KCWD$received$$713,865$in$water$sales$revenue$(page$9$of$the$
2012$KCWDAFS):%
%
%
%
%
%

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
1$http://governor.utah.gov/DEA/projections.html,$2012$Baseline$Projections,$“Population$and$Households$by$Area.”$$

Available$as$governor.utah.gov/DEA/ERG/ERG2012/Households%20by%20Area.xlsx.$
2$http://citizensfordixie.org/wpHcontent/uploads/2012/04/19DraftWaterNeedsAssessmentReportH1.pdf$
3$Pages$ESH27$and$6H12,$2011$LPP$Water$Needs$Assessment.$
4$USGS,$http://pubs.usgs.gov/sir/2012/5163/.$
5$Utah$baseline$per$capita$water$use:$http://state.awra.org/utah/sites/default/files/AdamsMillisHWaterNeeds.pdf.$
6$“Kane$County$Water$Conservancy$District$Financial$Statements$With$Other$Government$Reports$For$the$year$
ending$June$30,$2012$and$2011.”$
%Property%Tax%Revenues.%%In$2012$KCWD$collected$$769,298$from$property$taxes$(see$
the$source$in$the$next$paragraph).$$Its$levy$rate$was$0.000621$times$the$taxable$value$(p.$
7$of$the$2012$KCWDAFS). $
%

Impact%Fee%Revenues.$$KCWD$collected$$259,042$in$impact$fees$in$2012$(page$9$of$the$
2012$KCWDAFS):$
$$

%
%
%
%
%
%
%
%
Existing%Debt%Service%by%KCWD%(not%including%LPP).The$KCWD$has$$1,160,969$in$annual$debt$
service$for$previous$obligations$for$FYE$2013,$not$including$debt$from$the$Lake$Powell$Pipeline,$
as$shown$on$the$2013$row$of$the$District’s$debt$service$schedule$(p.$17$of$the$2012$KCWDAFS).$$
This$nonHLPP$debt$service$increases$annually$through$2037$before$being$extinguished$in$2052,$
totaling$$34.6$million.$
$

$
$
3.%Estimate%of%Additional%Debt%Service%on%KCWD%from%the%Lake%Powell%Pipeline%
%
50PYear%Repayment%Obligation%for%Lake%Powell%Pipeline%by%Kane%County%Taxpayers.$$The$
following$is$the$calculation$of$total$annual$debt$service$to$the$KCWD$to$participate$in$the$LPP.$
The$KCWD$has$announced$they$intend$to$receive$5.5%$of$the$project$water7,$meaning$they$will$
be$required$to$repay$5.5%$of$the$roughly$$1.0$billion$cost,8$although$some$believe$project$costs$
will$be$higher.$$The$KCWD$can$therefore$expect$to$pay$$55$million$in$capital$costs$(or$more).$$

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
7$4000$af$/$73,000$af,$Page$ESH5,$2011$LPP$Water$Needs$Assessment.$$(For$the$CICWCD$see$“Iron$County$pulls$out$of$

Lake$Powell$pipeline$project,”$Salt$Lake$Tribune,$March$22,$2012.)$
8$http://www.water.utah.gov/LakePowellPipeline/projectUpdates/default.asp$says$“The$Division$of$Water$

Resources'$current$cost$estimate$(June$2008)$for$the$entire$project$is$$1.064$billion”$(accessed$9/24/2013).$
$
2$
Assuming$a$50Hyear$repayment$period,$the$annual$debt$service$varies$with$the$interest$rate$as$
follows9 $

%
Annual%Debt%Service%Payments%
$
by%the%Kane%County%Water%Conservancy%District%
Interest$Rate$
Repayment%Cost% 0.03% 0.04% 0.05% 0.07%
$55$Million$ $$2,137,602$ $$2,560,261$ $$3,012,720$ $$3,985,292$
$
In$other$words,$the$repayment$obligation$from$the$LPP$will$add$between$$2$and$$4$million$in$
additional$annual$debt$burden$onto$KCWD’s$existing$debt$service.$
$
A$reasonable$assumption$for$a$50Hyear$interest$rate$is$4%,$meaning$an$additional$$2.56$million$
in$new$annual$debt$payment$due$to$the$LPP,$shown$in$the$attached$spreadsheet’s$Column$F.$$In$
addition$to$its$debt$obligations,$KCWD$has$operating$expenses$that$are$assumed$to$grow$
proportionally$to$the$number$of$new$households$in$the$county,$shown$in$Column$I.$$This$is$a$
conservative$estimate$because$no$operating$and$maintenance$costs$have$been$included$as$part$of$
LPP$participation.$$It$is$likely$there$will$be$additional$operation$and$maintenance$costs$associated$
with$longHterm$management$of$KCWD’s$portion$of$the$LPP.$$Our$estimates$of$KCWD$Total$
Expenses$are$shown$in$Column$J.$
$
Based$on$the$expected$growth$of$existing$revenue$streams$due$to$population$increase$in$the$
county,$KCWD’s$revenues$can$be$projected$over$the$next$50$years,$as$shown$in$Column$K.$$The$
deficit$schedule$for$the$repayment$period$can$be$seen$in$Columns$O$and$P.$$These$columns$show$
that$the$District’s$revenues$fall$significantly$short$of$the$District’s$expenses$for$every$year$of$the$
50Hyear$repayment$schedule.$$Unless$the$District$has$an$increase$in$revenues,$KCWD’s$
cumulative$debt$would$grow$to$$663$million$(cell$P73)$by$the$end$of$the$project$repayment$
period.$$Clearly,$participation$by$the$KCWD$in$the$LPP$will$require$significant$increases$in$
property$taxes,$impact$fees$and/or$water$rates.%
%
4.%Repaying%Debt%Through%Revenues%from%Proposed%Green%River%Nuclear%Power.%$KCWD$
has$entered$into$a$contract$with$Blue$Castle$Holdings$to$lease$29,600$acreHfeet10$of$water$for$a$
proposed$nuclear$power$plant$in$Green$River,$Utah.$$The$water$for$this$lease$will$come$from$the$
water$supply$of$the$Green$River,$not$out$of$Kane$County’s$water$delivery$system.$The$contract$
stipulates$Blue$Castle$Holdings$would$pay$KCWD$$1,000,000$per$year$once$the$plant$comes$
online$and$$100,000$per$year$while$the$project$goes$though$the$permitting$process11.$$The$$1$
million$in$revenues$are$contingent$upon$nuclear$power$plant$construction,$which$is$problematic$
since$a$new$nuclear$power$facility$has$not$been$constructed$in$the$U.$S.$since$197712.$
$
This$raises$the$probability$that$if$the$nuclear$facility$is$not$licensed,$KCWD$would$have$to$find$
another$way$to$pay$a$major$portion$of$their$debt$service.$$In$our$analysis$we$assumed$KCWD$

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
9$N15—N18$of$the$attached$spreadsheet.$
10http://www.deseretnews.com/article/705393416/NuclearHpowerHplantHinHUtahHFirstHstepHisHsecuringHwaterH
rights.html?pg=all$
11$http://www.bluecastleproject.com/files/news_items/60H35353680.pdf$
12Of$the$104$reactors$now$operating$in$the$U.S.,$construction$was$started$on$all$of$them$in$1977$or$earlier.$$The$two$

plants$in$operation$that$broke$ground$in$1977$are$River$Bend$Nuclear$Generating$Station$in$Louisiana$and$Wolf$
Creek$Generating$Station$in$Kansas.$$http://www.eia.gov/nuclear/reactors/stats_table3.html$
$
3$
would$begin$to$receive$$1$million$annually$from$the$plant$beginning$in$2024,$which$is$generous$
due$to$the$length$of$time$it$takes$for$nuclear$power$plants$to$go$though$permitting$and$
construction.$$This$is$shown$in$Column$M.$$If$the$nuclear$power$plant$is$licensed$on$this$timeline,$
but$impact$fees,$water$rates,$and$property$taxes$are$kept$at$their$current$level,$the$KCWD$will$
run$a$deficit$every$year$of$their$operation,$totaling$a$$566$million$deficit$in$2062$$(Columns$Q$and$
R;$cell$R73).$$Clearly,$then,$revenues$from$nuclear$power$alone$will$not$be$sufficient$to$avoid$
financial$difficulty.$
$
5.%Tax,%Water%Rate%and%Impact%Fee%Increases%Required%to%Repay%Debt%
%
The$fundamental$question$is$whether$the$KCWD$can$make$these$debt$payments$via$an$increase$
in$revenue,$and$if$so$how$they$will$raise$this$revenue.$
$
Increasing%Property%Taxes.%%Water$conservancy$districts$in$the$Lower$Colorado$River$Basin$
may$not$tax$higher$than$0.001$per$dollar$of$taxable$value$of$taxable$property$in$the$district.13$$If$
KCWD$increased$taxes$on$homeowners$and$businesses$to$the$highest$possible$rate$of$0.001,$they$
would$collect$$1.24$million$in$2012$tax$dollars$(($769,298/.000621)$*$.001)$(based$on$2012$
values;$see$spreadsheet$Column$B).$$This$represents$a$61%$increase$in$property$taxes$on$Kane$
County$homeowners$and$businesses$to$fund$the$LPP.$$However,$even$with$this$increase$in$
property$taxes,$KCWD$revenues$would$fall$short$of$their$expenses$by$many$millions$of$dollars$
each$year,$cumulating$to$a$deficit$of$$560$million$dollars$at$the$end$of$the$50Hyear$repayment$
period,$if$the$proposed$nuclear$power$plants$are$not$constructed$(Columns$S$and$T;$cell$T73).$$If$
the$nuclear$power$plants$are$constructed$by$2024$and$property$taxes$are$raised$to$the$maximum$
levy$amount,$KCWD$would$still$experience$large$deficits$annually$and$a$cumulative$deficit$of$
$463$million$at$the$end$of$the$50Hyear$repayment$period$(Columns$U$and$V;$cell$V73).$
$
Increasing%Water%Rates.%%Although$one$might$think$the$KCWD$could$simply$increase$water$
rates$to$raise$revenues,$raising$water$rates$will$result$in$a$decrease$in$total$water$demand.$$
Because$the$debt$is$relatively$large,$in$order$for$water$sales$to$cover$the$debt$obligations$of$the$
project,$water$sales$revenues$would$need$to$increase$by$305%$(spreadsheet$cell$B10),$even$if$
property$taxes$were$increased$to$the$maximum$allowable$rate$and$the$District$received$revenue$
from$the$Green$River$Nuclear$Plant.$$This$would$still$require$the$KCWD$to$shoulder$significant$
deficits$over$time,$but$would$result$in$a$balance$of$essentially$zero$in$2062$(Columns$W$and$X;$
cell$X73).$$Due$to$the$fact$that$the$price$elasticity$of$demand$for$water$is$conservatively$estimated$
to$be$H0.5,$repayment$though$water$sales$alone$would$require$rate$increases$of$1542%$(cell$B12).$$
This$enormous$increase$in$water$rates$would$lead$Kane$County$water$users$to$demand$in$2060$
about$a$quarter$(cell$B13)$of$the$water$they$demanded$in$2010.$
$
Increasing%Impact%Fees.%There$has$been$some$discussion$about$making$debt$payments$through$
an$increase$in$impact$fees,$the$fee$new$development$pays$to$hook$up$to$the$water$system.$$
Currently$KCWD$has$an$average$impact$fee$of$$6,43814$and$if$the$District$chose$to$repay$debt$
using$impact$fees,$revenues$from$impact$fees$would$need$to$go$up$by$688%$(cell$B15),$requiring$
an$average$impact$fee$of$over$$50,000$(cell$B17),$even$if$property$taxes$were$increased$to$the$
maximum$allowable$rate$and$the$District$received$revenue$from$the$Green$River$Nuclear$Plant$
(Columns$Y$and$Z;$cell$Z73).$
$
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
13Utah$Code,$Section$17BH2aH1006.$$See$http://le.utah.gov/code/TITLE17B/htm/17B02a100600.htm.$

14$2010$and$2011$KCWD$“Certification$of$Impact$Fee$Report”$(Form$CIFHCERTH1H2010).$$Reports$(Note:$KCWD$has$
made$the$2012$Impact$Fee$Report$available$to$the$public.)$
$
4$
The$massive$impact$fees$required$would$be$among$the$highest$in$the$nation,15$likely$deterring$
new$growth$in$the$county$and$significantly$lowering$property$values.$$Both$effects$would$add$
even$more$problems$for$KCWD’s$repayment$obligations:$the$first$would$lower$the$amount$of$
impact$fees$collected,$and$the$second$would$lower$property$values$and$thus$lower$the$total$
property$taxes$collected$by$the$district.$$Our$analysis$did$not$compensate$for$these$factors.$
$
Combination%of%Increased%Water%Rates%and%Impact%Fees.%%The$significant$debt$to$participate$
in$the$LPP$will$quite$likely$lead$KCWD$to$raise$property$taxes$to$the$maximum$allowable$by$law.%%
The$District’s$only$real$flexibility$in$raising$revenues$for$its$debt$payments$comes$from$deciding$
the$proportion$of$increased$revenues$which$will$come$from$increased$water$rates$versus$from$
increased$impact$fees.$$KCWD$could,$for$example:$
$
• raise$impact$fees$344%$(cell$B21),$to$an$average$of$$28,564$per$connection$(cell$
B22);$together$with$
• raising$water$rates$538%$(cell$B20),$when$considering$H0.5$elasticity;$together$
with$
• raising$property$tax$rates$by$61%.$
$
If$one$assumes$the$proposed$nuclear$power$plant$will$be$constructed$by$2024,$Columns$AA$and$
AB$of$the$spreadsheet$(and$cell$AB73)$show$that$these$increases$would$eliminate$KCWD’s$debt$
by$2060$(though$it$would$carry$substantial$deficits$for$much$of$the$repayment$period).$$If$the$
proposed$nuclear$power$plant$is$not$constructed$by$2024,$these$increases$in$water$rates,$impact$
fees$and$property$taxes$would$need$to$be$larger.$$In$addition,$the$538%$increase$in$water$rates$
means$that$Kane$County$water$users$would$demand$in$2060$less$water$than$they$demanded$in$
2010.16$
$
6.%Kane%County%Water%District%does%not%have%a%repayment%plan.%%According$to$Section$11H
36aH301$of$Utah$Code,$districts$that$assess$impact$fees$with$service$area$populations$greater$
than$5,000,$as$of$the$latest$US$census,$must$prepare$an$Impact$Fee$Facilities$Plan$(or$General$Plan$
that$covers$the$impact$fee$schedule)$to$determine$the$public$facilities$required$to$serve$
development$resulting$from$new$development$activity.17$$KCWD$has$not$made$such$a$plan$
available$to$the$public$despite$collecting$impact$fees$on$a$service$area$population$of$
approximately$7,125$people18from$2685$accounts19$in$2010.$
$

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
15$2012$National$Impact$Fee$Survey,$Duncan$Associates:$

http://www.impactfees.com/publications%20pdf/2012_survey.pdf$
16$This$is$because$cell$B20$is$larger$than$cell$B8.$
17$http://le.utah.gov/code/TITLE11/htm/11_36a030100.htm$
18$2010$US$Census:$http://quickfacts.census.gov/qfd/states/49/49025.html. $
19$Page$7$of$“Kane$County$Water$Conservancy$District$Financial$Statements$With$Other$Government$Reports$For$the$
year$ending$June$30,$2012$and$2011.”$
$
5$
Bibliography,
,
1. Future,Water,Needs,7,Page,ES727,,Page,6712,7,2011,LPP,Water,Needs,
Assessment.,http://citizensfordixie.org/wp7
content/uploads/2012/04/19DraftWaterNeedsAssessmentReport71.pdf,
2. Intent,to,receive,5.5%,project,water,7,Page,ES75,,2011,LPP,Water,Needs,
Assessment.,
3. Project,Cost,Estimate,7,
http://www.water.utah.gov/LakePowellPipeline/projectUpdates/default.as
p,
4. Green,River,Nuclear,Water,Lease,quantity,7,
http://www.deseretnews.com/article/705393416/Nuclear7power7plant7in7
Utah7First7step7is7securing7water7rights.html?pg=all,
5. Green,River,Nuclear,Contract,7,
http://www.bluecastleproject.com/files/news_items/60735353680.pdf,
6. Of,the,104,reactors,now,operating,in,the,U.S.,,construction,was,started,on,all,
of,them,in,1977,or,earlier.,,The,two,plants,in,operation,that,broke,ground,in,
1977,are,River,Bend,Nuclear,Generating,Station,in,Louisiana,and,Wolf,Creek,
Generating,Station,in,Kansas.,,
http://www.eia.gov/nuclear/reactors/stats_table3.html,
7. Of,the,104,reactors,now,operating,in,the,U.S.,,construction,was,started,on,all,
of,them,in,1977,or,earlier.,,The,two,plants,in,operation,that,broke,ground,in,
1977,are,River,Bend,Nuclear,Generating,Station,in,Louisiana,and,Wolf,Creek,
Generating,Station,in,Kansas.,,
http://www.eia.gov/nuclear/reactors/stats_table3.html,
8. Maximum,property,tax,levy,for,a,Lower,Colorado,Basin,Water,District,7,Utah,
Code,,Section,17B72a71006.,http://le.utah.gov/UtahCode/title.jsp,
9. Average,Impact,Fee,7,2010,and,2011,KCWD,Certification,of,Impact,Fee,
Reports,(Note:,KCWD,has,made,the,2012,Impact,Fee,Report,available,to,the,
public.),
10. Would,be,one,of,the,highest,impact,fees,in,the,nation,7,2012,National,Impact,
Fee,Survey,,Duncan,Associates,7,
http://www.impactfees.com/publications%20pdf/2012_survey.pdf,
11. Capital,facilities,plan,or,general,plan,required,7,Utah,Code,,Section,11736a7
301,7,http://le.utah.gov/UtahCode/title.jsp,
12. KCWD,Census,population,–,2010,US,Census,7,
http://quickfacts.census.gov/qfd/states/49/49025.html,
13. GOPB,Population,Projections,
http://governor.utah.gov/DEA/projections.html,
,
,
+ , - . / 0 1 2 3 4 5 6 7 8 9

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