LAS CRUCES - It's been a shade over six months since the Las Cruces City Council adopted a resolution authorizing the condemnation of Moongate Water Co. through eminent domain.
But lawyers for both the city and Moongate say not much has happened since Aug. 2.
"We're not aware of anything changing," Steve Hamilton, a Santa Fe lawyer representing Moongate said this week. "We believe an appraiser has been retained by the city. That would be the procedure, for the city to conduct an appraisal of the utility and then make a (purchase) offer. But no offer has been made to this point."
Marcia Driggers, senior assistant city attorney, said the city is in the process of completing an appraisal.
"We are still waiting for that appraisal," City Manager Robert Garza said. "Clearly, that is the basis for any further discussion and negotiations that could take place. Once we know what that appraisal will be, we can have more serious, more substantive discussions."
The appraisal would likely serve as the baseline for possible negotiations between the city and Moongate. But if negotiations break down, or never get started, the city could begin the legal process to try to acquire
Any legal action taken by the city would only add to the list of ongoing lawsuits between the city and Moongate. Kurt Wihl, an Albuquerque lawyer hired to represent the city in legal matters dealing with water, has said the city and Moongate are in no less than seven lawsuits. In the past four years the city has spent more than $1 million to defend itself in those lawsuits.
In adopting the resolution, officials said Las Cruces needs to acquire Moongate's "perfected, unperfected and applied-for water rights for public health or safety purposes, to more expeditiously accomplish the city's goal of preserving the Jornada (del Muerto) Sub-Basin on the East Mesa as a drought reserve."
Several other factors, which include a reduction in "expensive and time-consuming litigation," were also cited in the resolution as reasons for seeking condemnation.
But in a news release issued the day after the council approved the resolution, Moongate officials said the city, not their company, was the biggest threat of depleting the Jornada Basin.
"In 1996, the city sought to drill large production wells in the Jornada Basin to export water into the city," a portion of Moongate's release said. "Through Moongate's efforts, the city's ability to mine the Jornada Basin for use in downtown Las Cruces was limited. Still, between 1996 and 2007, the city has drilled six large production wells in the Jornada Basin, with plans for seven more, and (Las Cruces) pumps more water from the Jornada Basin than all other water providers combined."
Numerous objections about the city's proposed action have been made by some Moongate customers, most of those who do not live within the city limits. Some have said they have little, if any, trust in city government, while others have said they would have no representation in the matter because they are not city residents.
Steve Ramirez can be reached at (575) 541-5452.
Condemnation update
•The city is awaiting an independent appraisal of Moongate Water Co. before continuing its efforts to condemn the private water company, on the city's East Mesa.
•City Council adopted a resolution in early August to authorize the condemnation of Moongate Water through eminent domain.
•Attorneys for Moongate have said they will legally challenge the city's plans for condemnation.
•Some Moongate customers, many who live outside city limits, are opposed to a potential city takeover of the utility.
•Moongate Water Co. has been serving East Mesa residents since 1971, and currently serves more than 14,000.




Font Resize



