Santa Claus Council votes down MOU with Riverview Energy

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By Don Steen

The front page of this week’s edition includes a story on the Santa Claus Water Board’s approval of a revised memorandum of understanding on how the town could potentially provide water for Riverview Energy’s proposed coal-to-diesel project. That agreement essentially stated the town would welcome a hydrological study and preliminary engineering report on the work necessary, on the condition that no financial commitment be incurred by the town. The town council took up that measure at its Monday, October 10 meeting and ultimately voted against approving even that early step forward by a vote of 3-2.

Voting against were council members Kevin Burke, Tricia Vaal and Seth Windell. Vaal has been an outspoken critic of the project since its inception, but other concerns have since arisen. One issue raised among opponents in the audience centered on a revision in the MOU to allow a third party, possibly a state entity, to front the money for the study in place of Riverview Energy. Critics noted the company has shown little financial commitment, and argued the town should not be seen to support Riverview Energy even tangentially. 

Some questioned whether the state would use funds from the Inflation Reduction Act to help Riverview Energy’s project. While supportive of a hydrological study to assess the town’s ability to boost water service, opponents of the Riverview Energy project said that study does not need to be tied to the company. Rather, the town could directly apply for funding on the grounds that it might be necessary if the town becomes part of a regional water district.

The failure of the MOU throws into question how Riverview Energy could source the raw water needed for its operations, though it is not necessarily the end of the matter. Further updates can be expected from tonight’s Dale Town Council meeting. More details on the October 10 meeting of the Santa Claus Town Council meeting will be available in next week’s edition of the Leader.