Settlement reached in messy Nevada lithium mine water dispute

Associated Press

5 days ago

The developer of what could be the world's largest lithium mine and a private landowner have reached a settlement following a flurry of lawsuits and appeals over water rights the company says are critical to the construction of the mine.
As part of the settlement, Lithium Americas has purchased water rights from Northern Nevada rancher Edward Bartell, a vocal opponent of the mine who had claimed its construction, and the water it would require, would harm his ranching operation.
The years of legal wrangling between Bartell and Lithium Americas culminated this spring, when a lower court agreed with Bartell that the Nevada state engineer did not fully determine the effects of the company's pumping on the rancher's operations. The court's ruling forced the state to reexamine its decision, but the company continued pumping water while the state was doing so, prompting the state to issue a cease-and-desist letter.
Bartell and Lithium Americas reached a settlement July 31, although neither has provided any details. Limited information on the settlement is included in an Aug. 5 motion by Bartell seeking a dismissal of his prior cases against Lithium Americas.
Bartell told The Nevada Independent that 'we're still finalizing things.'
But the settlement ensures the company can move forward with production and awards the rancher 'other promises and consideration' in exchange for agreeing to the settlement.
'These mutual promises resolve the need for this litigation,' according to the Aug. 5 motion.
The State Supreme Court has agreed to dismiss the appeal and cross-appeal filed by Bartell and Lithium Americas. Now it awaits for the Sixth Judicial District Court to give its approval, which is expected shortly, according to a spokesperson for the company.
'The Company has resolved or secured judicial dismissal of all legal and regulatory actions and proceedings,' Lithium Americas stated Thursday in its second quarter report. It added that the resolution did not affect the company's financial position or construction schedule. Phase one of the project is expected to be completed in late 2027.
No more lawsuits to come
The battle between Bartell and Lithium Americas over water rights and the mine heated up in 2020 when the company sought state approval to move permitted water rights it had obtained in the Quinn River Valley, which sits at a lower elevation than the mine site, closer to Thacker Pass.
Ultimately, the state engineer granted the company's request to relocate its water rights if the company agreed to keep them in the valley. The company adapted to that limitation by transferring the rights to a property closer to the mine site, then constructing an 8-mile-long pipeline to move the water uphill from the valley to the construction site.
Thacker Pass is the largest known lithium resource and reserve in the world. The company needs about 200 acre-feet of water per year during construction, which will continue through 2027. An acre-foot of water is enough to cover roughly a football field with water 1 foot deep or to supply roughly two urban households with indoor and outdoor water needs for a year.
Once in production, the company will require about 2,600 acre-feet of water per year.
The company's request drew objections from Bartell, who protested that the change application would conflict with his water rights. Bartell filed a petition for judicial review in 2023, but the matter didn't receive an oral hearing until February of this year. Following the hearing, the Sixth Judicial District Court of Nevada reversed a previous decision by the state engineer and returned two of the disputed five water rights to application status.
In a flurry of ensuing activity, the state found that Lithium Americas was still pumping water while the issue was being examined, and the state ultimately issued a cease-and-desist letter to the company ordering it to stop pumping. The state engineer, however, also issued extensions allowing Lithium Americas to keep pumping.
'We've been operating normally, status quo,' Tim Crowley, vice president of government and external affairs at Lithium Americas, told The Nevada Independent.
As outlined in the Aug. 5 motion, with the settlement, Bartell can no longer protest the company's pumping or claim that effects from the pumping west of the Quinn River would harm his ranch. He also agreed that the company's pumping does not affect his water rights on the east side of the river and he would not dispute any future transfer applications from the company unless Lithium Americas seeks to drill a new well in a certain area east of the river.
As of June, there were approximately 300 workers employed in construction of the mine and that number is expected to grow to 1,000. At peak construction, slated for summer 2026, around 1,800 workers are expected to be on site.
The company previously received a $2.26 billion loan from the Department of Energy for construction of the mine. It expects to make the first draw on that loan later this year.
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This story was originally published by The Nevada Independent and distributed through a partnership with The Associated Press.