K2 Documents Related to Brooke, PSWID, and the ACC
The documents are grouped in the following categories:
Brooke Funding of K2 [New 3/15/2009]
Joint Well Development Agreement
Denouncement of K2 Agreement
Recommendation to Approve Encumbrance
Brooke Request to Withdraw Encumbrance Action
Letters About Board's Support for the K2 Agreement
Brooke Funding of K2
March 12, 2009 Filing with ACC for Borrowing Approval. Brooke requests permission to borrow $2,690,000 from WIFA to drill the K2 well and to acquire an existing water source.
[Back To Top]
Joint Well Development Agreement
Joint Well Development Agreement. This is the agreement that was entered into between the PSWID board and Pine Water Company to develop the K2 well.
[Back To Top]
Denouncement of K2 Agreement
October 24, 2008 Letter From Brooke Responding to K2 Well Agreement Denouncement by Board. The letter invokes the arbitration clause in the K2 agreement and names Brooke's choice for arbitrator. Discusses why the extension of the schedule does not require the districts approval. Discusses why the district will be liable for misrepresentation if the agreement is found to not be legal. Discusses that the K2 agreement does not require proof of compliance with bidding statutes. Discusses why the eight items listed by the district as constituting a breach on PWCo's part are not supported by fact or law. Discusses why the reasons that the district gave for denouncing the agreement are not supported by fact or law. [New 10/27/2008]
October 17, 2008 Letter From PSWID Rescinding the K2 Well Agreement. Provides PSWID's side of the story on the meeting that didn't happen. States that the district is not liable if the agreement is declared legally invalid. States that there is no evidence of compliance of Brooke's part that the contract bidding process has been followed. States that PSWID will resist any disbursement of funds from the escrow account. Lists areas where PSWID thinks that Brooke is in breach of the contract. States that PSWID is denouncing the contract and that it is no longer valid and demands the return of the escrow funds. [New 10/24/2008]
October 10, 2008 Letter From Brooke About Proceeding with K2 Well. This is a letter that indicates that Brooke is exercising their right under the agreement to extend the time to complete the project due to unforeseen regulatory delays. It also addresses that they will proceed with a drilling contract in January 2009. Discusses the ways in which the board is breaking the agreement by opposing Brooke at the ACC. Points out that Mr. Gliege's statements to the ACC that the board has money for the acquisition are not supported by facts. [New 10/13/2008]
[Back To Top]
Recommendation to Approve Encumbrance
December 17, 2008 Procedural Order. ACC placed a stay on the encumbrance action. Requires both sides to file status reports every three months and one within 10 days of the arbitration decision. [New 12/22/2008]
December 12, 2008 PSWID Status Report. Lists the actions that the district has taken since the September ACC meeting. Filed condemnation, participating in arbitration, filed motion to have Brooke's CC&N revoked, engaged financial consultants to find financing, applied to WIFA for funding, and hired an interim general manager. Complained that Brooke went to WIFA to challenge their status as being eligible to access WIFA funds. Complains about Brooke pursuing arbitration on the JWDA, not being cooperative about condemnation, and for excessive discovery by Brooke. Has the letter that Brooke sent to WIFA as an attachment. Lays out what Brooke thinks the factual errors are in the district's application for WIFA funds. [New 12/22/2008]
December 12, 2008 Brooke Status Report. Addresses the denouncement of the JWDA by the district, the filing of the condemnation by the district, and the filing of the request to withdraw this action. [New 12/22/2008]
September 11, 2008 Response to Judge Nodes Recommendation by Mr. Gliege. This is Mr. Gliege's response on behalf of the Rim Country Water intervenors urging the Commissioners to ignore Judge Nodes recommendation.
September 5, 2008 Recommendation by Judge Nodes to ACC Commissioners to Approve K2 Encumbrance. This document provides an excellent summary of the events that have taken place, the arguments that were made for and against the granting the encumbrance, and the reason that the encumbrance should be granted. Judge Nodes found that most of the claims made by the Rim Country Water intervenors to be outside the jurisdiction of the ACC or not supported by the law.
[Back To Top]
Brooke Request To Withdraw Encumbrance Action
The ACC disapproved the request to withdraw at their December 16, 2008 meeting.
Brooke's Response to Objection to Withdrawal Request. Addresses the claims made in the district's objection. Makes the argument that since the district has denounced the JWDA, that this action is not required until after arbitration sorts out the status of the agreement. Discusses Mr. Gliege's conflicts with representing both the district and the intervenors. [New 12/22/2008]
PSWID's Objection to Withdrawal Request. Makes the argument that the action has come so far and a big expenditure of resources on everyone's part that the process should be allowed to finish. Claims that Brooke is doing this because they are worried about the negative impact of a decision by the ACC that is not in their favor on the upcoming arbitration. [New 12/22/2008]
Brooke's Motion To Withdraw Encumbrance Request. This request is to end the encumbrance action with the ACC. Brooke indicates that this was a requirement for the transfer of the $300,000 into the escrow account. Since that requirement was waived by the prior board and the transfer was done, this is no longer needed. [New 11/30/2008]
[Back To Top]
Letters About Board's Support for the K2 Agreement
May 14, 2008 Letter from Brooke to PSWID: In this letter, Brooke asks that the PSWID board affirm their intention to go forward with K2. They point out that Mr. Gliege has a conflict of interest because he represents the PSWID board, which per the agreement is supposed to provide support for the agreement, and he represents Mr. Greer and Mr. Krafcykz in their efforts to invalidate the agreement. They indicate that this is an indication that the board is not serious about supporting the agreement and that this forms the basis for legal action for breaching the contract. This was provided by Brooke.
May 19, 2008 Letter from PSWID to Brooke: This letter states that the PSWID board can not respond to Brooke's request because information on whether article 34, chapters 2 and 3 have been complied with. This was provided by the PSWID board.
Arizona Revised Statutes Title 34 Chapter 2
Arizona Revised Statutes Title 34 Chapter 3
May 27, 2008 Letter from Brooke to PSWID: This letter responds to the May 19 letter from PSWID. This points out that the question of Mr. Gliege's conflict of interest has not been addressed. The letter points out that the information that PSWID said hadn't been provided had indeed been provided and they send it along again. This was provided by Brooke.
K2 Project RFP: The RFP for drilling K2. This was provided by Brooke.
K2 Publication Affidavit: The affidavit that the RFP notification was published. This was provided by Brooke.
K2 ADT Proposal: The proposal by ADT for drilling the K2 well. This was provided by Brooke.
K2 Project Bid Evaluation: The evaluation of the K2 bid by ADT. This was provided by Brooke.
[Back To Top] |
