20191118Application.pdf

i:rC EIVED
Preston N. Carter (lSB No. 8462)
Charlie S. Baser (lSB No. 10884)
Givens Pursley LLP
601 W. Bannock St.
Boise. ID 83702
Telephone: [phone]
Facsimile: (208) 388- 1300
[e-mail]
IN THE MATTER OF'fHE
APPLICATION OF CEM STATE
WATER COMPANY. LLC FOR
APPROVAI, OF ACQUISITION OF
THE ASSETS OF THE WATER
BUSINESS OF HAPPY VAI-LEY
WATER SYSTEM INC. AND
BITTERROOT WATER CO., INC.
il! ii0Y lB PH 3: 37
Bf,FORE THE IDAHO PUBLIC UTILITIES COMMISSION
Case No. ttSw - u.l- tq-o t
APPLICATION OF GEM STATE
WATER COMPANY, LLC FOR
APPROVAt. OF ACQUISITION OF
THE ASSETS OF THE WATER
BUSINESS OF' HAPPY VALLEY
WATER SYSTEM INC. AND
BITTERROOT WATER CO., INC,;
AMENDMENTOF CPCNS: AND
REQUEST FOR MODIFIED
PROCEDURE
Gem State Water Company, LLC ("Gem State Water") seeks the ldaho Public Utilities
Commission's ("Commission") approval of Gem State Water's acquisition of the assets of the
water supply and disribution systems (the "Water Businesses") of Happy Valley Water System
Inc. ("Happy Valley'') and Bittenoot Water Co., Inc. ("Bitterroot"), in accordance with the Asset
Purchase Agreement dated and effective as of September I 1, 2019 (the "Ageement"). Cem
State Water also requests that the Certilicates ofPublic Convenience and Necessity ("CPCNs")
of Happy Valley (No. 390) and Bitterroot (No. 319) be transferred to Gem State Wa1er, and that
this Application be processed by modified procedure.
Please serve all notices and communications with regard to this Application upon:
OEM S] A'I'E WATER'S APPLICATION FOR APPROVAL OI ACQTJISITION - I
O RIGINAL
[e-mail]
14860195_4 docx !3988-51
Auorneys for Gem State Water Company, LLC
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BACKGROUND AND PRoCEDURAL HISToRY
Gem State Waler Company
l. Gem State Water, located in Coeur d'Alene, ldaho, is an Idaho limited liability
company created to own and operate water utilities in ldaho. Cem State Water is a wholly
owned subsidiary of NW Natural Water of ldaho, LLC (NW Natural Water of ldaho"), which is
in turn wholly owned by NW Natural Water Company, LLC ("NW Natural Water"). An
organizational chart is attached to the accompanying testimony ofJustin Palfreyman, the
President of Gem State Water, NW Natural Water of Idaho, and NW Natural Water.
2. Gem State Water, NW Natural Water of Idaho, and NW Natural Water are
members of a family of companies held by Northwest Natural Holding Company ("NW Natural
Holdings"), which was created during a recent corporate reorganization of Northwest Natural
Gas Company and its affiliates. Northwest Natural Gas Company is a 160-year old natuml gas
utility serving customers in the Pacific Northwest.
3. NW Natural Holdings and NW Natural Water have financial resources and access
to capital markets to sufficiently capitalize Gem State Water so that it can provide safe and
reliable water utility service and proactively address the infrastructure needs ofthe utility. ,See
Palfreyman Testimony at 3. Additionally, Gem State Water will benefit from its parent
companies' and affiliates' core competencies in constructing and maintaining infrastructure,
CEM STATE WA.TER'S APPLICATIoN FoR APPRovALoF ACQUISITIoN . 2
Preston N. Carter
Charlie S. Baser
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: (208) 388-l 300
Drestoncarter@ givensDursley.com
charl [e-mail]
[e-mail]
Eric W. Nelsen
Senior Regulatory Attorney
NW Natural
220 Nw 2nd Ave.
Portland, Oregon 97209
Telephone: [phone]
[e-mail]
providing exemplary customer service, and effectively managing regulated utilities. /d. NW
Natural Water and its subsidiaries recently acquired water utilities in ldaho, Oregon and
Washington. 1d at 4. These acquisitions and the continued operation ofthese water utilities were
seamless, with no disruptions to customers' service. Id Gem State Water also recently acquired
several water utilities in ldaho, and has provided a seamless transition in ownership. 1'his
experience will carry over to Gem State Water's acquisition of Happy Valley and Bitterroot. 1d.
Happy Valley llaler Syslem Inc. and Bittenoot llater Co., Inc,
4. Happy Valley is a regulated water utility that serves approximately 27 residential
customers in and around Kootenai County, Idaho in accordance with CPCN No. 390. The area
currently served by Happy Valley is in the same vicinity as the lerritory served by Gem State
Water. Palfreyman Testimony at 5.
5. Bitterroot is a regulated water utility that serves approximately 160 residential
customers in and around Kootenai County, Idaho in accordance with CPCN No.3l9.l The area
currently served by Bitterroot is in the same vicinity as the teritory served by Gem State Water.
Palfreyman Testimony at 5.
THE TRANSACTToN
6. Gem State Water and the selling parties (Happy Valley, Bitterroot, Catherine L.
Rickel, and Kenneth W. Rickel) entered into the Agreement. The Agreement and the actions it
contemplates, to the extent related to this Application, are referred to as the "Transaction." The
Agreement, attached to Mr. Palfreyman's testimony, is conditioned upon the Commission's
approval.2 Agreement 'll 5(b).
' On April9,20l8, the Commission issued Order No.34027, which consolidated Bitterroot Water System, Inc. and
Rickel Water Company into Bitterroot Water System, Inc.; authorized service to customers under CPC\ No. 319:
and cancelled CPCN No. 324. See Order No. 34027, Case NO. RIC-W- l7-01 (April 9. 2018).
2 The Agrccment has been hled as "Confidential" under Commission's rules.
GEM STATE WATER,S APPLICATION TOR APPROVAL OT ACQUISIIION . 3
7. If approved, under the Agreement Gem State Water will acquire the selling
parties' assets related to the Happy Valley and Bitterroot Water Businesses (collectively, the
"Water Business Assets"). Palfieyman Testimony at 7.
8. Happy Valley and Bitterroot employ Kenneth and Catherine Rickel and contract
with an outside accountant (Susan Jacobson), Ifthe Transaction is approved, Gem State Water
employees will assume the roles previously undertaken by Happy Valley's and Bitterroot's
current employees. Palfreyman Testimony at 5.
9. Leslie Rayner, the licensed water system operator for Gem State Water. will serve
as the licensed water system operator for the Happy Valley and Bitterroot Water Business
Assets. Leslie Rayner holds license number DWD3-21515 (Class 3), and her business address is
250 Northwest Blvd., Suite I I l, Coeur d'Alene, Idaho 83816. Id.at7.
10. Gem State Water is not requesting any change to rates, rate structure, or other
charges in this Application. Any future changes will be based on prudently incurred capital
expenditures and other accepted ratemaking principles. Palfreyman Testimony at 6.
I L If the Transaction is approved, Gem State Water will work with Commission
Staff to update its tariffs to reflect its addition of the Happy Valley and Bitterroot Water Business
Assets and the retention ofthe existing rates, rate structure, and other charges for current
customers of Happy Valley, Bitteroot, and Gem State Water. 1d.
12. Gem State Water intends to work with Commission Staffbefore and during future
rate proceedings to consider consolidation of rates, rate structure, and other charges as
reasonable and appropriate for current Cem State Water, Happy Valley, and Bittemoot
customers. Id. at 8-9.
GL:M STATE wATER's Appl-tcATroN FoR AppRovAL oF AcetjtstIoN - 4
13. Gem State Water submits that the lransaction is in the public interest. The
Transaction will provide access to capital that is not currently available to Happy Valley or
Bitterroot. Gem State Water and its parent companies will offer expcrtise in operating regulated
utilities. Gem State Water also will maintain the existing rates, rate structure, and other charges
and will maintain or improve the level of scrvices currently provided.
14. Gem State Water. NW Natural Water of Idaho. NW Natural Water. and thcir
affiliates have financial resources and access to capital markets to suflciently capitalize Gem
State Watcr so that it can provide sat'e and reliable water utility service and proactively address
the infrastructure needs ofthe Water Business Assets now owned by Happy Valley and
Bitterroot. ld. at 3-4.
15. Additionally, the systems currently owned by Happy Valley and Bitterroot will
benefit from Gem State Water's, and its affiliates', core competencies in constructing and
maintaining infrastructure, providing exemplary customer service, and effectively managing
regulated utilities. Cem State Water has the ability to make needed improvements to each water
system. 1d. at 4-5.
16. Gem State Water employees, who are based near Happy Valley's and Bitterroot's
current localions, have the business experience and water system expeftise to operate and
maintain the Happy Valley and Bitterroot Water Business Assets. /d at 5.
17. Cem State Water has not definitively identified any specific capital expenditures
or improvements for the Happy Valley and Bitterroot Water Business Assets. Preliminarily,
Gem State Water has noted that well sites and related equipment may need to be improved. /d at
6. Ifthe Transaction is approved, Gem State Water will begin the process of creating a water
CF]M STATE WA'IER's Appt-tcA'lroN r,oR APPROVAL oli AcQrJrsrrrcN - 5
master plan that will identify and prioritize needs of the Happy Valley and Bitterroot Water
Business Assets. /d- at 9.
REQUEST To AMEND AND TRANSFER CPCN
18. Happy Valley currently holds CPCN No. 390 and Bittenoot curently holds
CPCN No.319.
I9. As described above, Gem State Water intends to provide service to Happy Valley
and Bitterroot customers. Accordingly, Gem State Water respectfully requests that CPCN Nos.
390 and 3 l9 be transferred to Gem State Water.
20. The transfer ofthe CPCNs is necessary 1o effectuate the Transaction and to
realize the public benefits discussed above. The transfer ofthe CPCNs is generally in the public
interest for the same reasons as the Transaction.
ADDITIoNAL INFoRMATIoN
2l . Additional information that may facilitate the Commission's consideration of the
Transaction is identified below.
22. Transaction-related costs related to the acquisition have been incuned by NW
Natural Holdings, not by Gem State Water, related to activities including due diligence,
environmental consultants, research, legal, travel and negotiations. The costs will not be passed
to Gem State Water and will not be included in any rate case filings. Palfreyman Testimony at
8-9.
23. Ifthe Transaction is approved, accounting, financial, and customer records will be
kept in the local office of Gem State Water, 250 Northwest Blvd., Suite I I l, Coeur d'Alene,
Idaho 83816. Gem State Water's local oflice also will be the location for former Happy Valley
and Bitterroot customers to pay bills, make requests, and otherwise correspond with Cem State
Water. Id. at 10.
CIM STA'] g WAl t-.R's ,AppLrcAItoN foR APPROVAL ot AcQt.lsfftoN - 6
24. Happy Valley and Bitterroot meters are currently read on a monthly basis from
April through September, and customers are currently billed on a monthly basis throughout the
year. Gem State Water intends to maintain this schedule for the foreseeable future. 1d.
25. Cem State Water provides 24-hour response to repairs or water quality issues.
Cuslomers can call the Gem State Water office phone number, [phone], and the call will
be forwarded to an answering service after hours or whenever the line is not able to be answered
during office hours. 1d
26. The most recent sanitary survey from the Idaho Department of Environmental
Quality for Ilappy Valley was completed in Spring 2018. However, Happy Valley has not
received a final report summarizing the sanitary inspection from ldaho DEQ.
27. The most recent sanitary survey from the ldaho Department of Environmental
Quality for Bitterroot is aftached as Attachment I .
28. The most recent drinking water reports from IDEQ for each company are attached
as Attachment 2 (Happy Valley) and 3 (Bitterroot).
29. Gem State Water intends to publish a notice to customers in the local newspaper,
in the form of Attachment 4 to this Application, regarding the Transaction and the Application,
although no notice is required because Gem State Water is not proposing any changes to rates.
Id. at l0; IDAPA 31.01 .01.125.
30. Cunently, Kenneth and Catherine Rickel are Happy Valley's and Bitterroot's
only employees. Monthly invoicing, account reconciliations, and annual reporting are performed
through an independently contracted bookkeeper. Gem State Water anticipates that Kenneth and
Catherine Rickel will assist through the transition; howeveq Gem State Water will not retain
them as employees after the acquisition and transition are complete. Palfreyman Testimony at 6.
GEM STATE WATER'S APPLICATION TOR APPROVAI- ()F ACQUIS1TION . 7
31. Gem State Water has no1 identified any particular opportunities to add new
customers to Happy Valley or Bitterroot at this time. However, undeveloped lots, both with and
without connections currenlly exist within and around the area currently served by Bitterroot. If
lots are developed, it provides a potential for new customers to the system. 1d at 10.
32. System maps and information regarding components ofthe Happy Valley and
Bitterroot Water Business Assets are attached to Mr. Palfrelman's testimony. Gem State Water
intends to obtain additional information regarding the system through the water master planning
process. Z/. at 9.
33. Happy Valley's water system does not include fire prevention.
34. Bitterroot's water system is configured to provide fire protection. Bitterroot is
located in the Timberlake Fire Protection District, which can be reached at [phone]. The
Fire Chief is Brandon Hermenet.
35. Well logs for the wells used by Happy Valley and Bitterroot's water systems are
attached to Mr. Palfreyman's testimony.
36. There will be no change to Happy Valley and Bitterroot's Commission-approved
rates and charges as the result of this transaction.
37. Water rights information for Happy Valley and Bitterroot are attached as
Attachments 5 and 6, respectively.
MoDIFIED PRoCEDURE
38. Gem State Water believes a hearing is not necessary to consider the issues
presented in this Application and respectfully requests that it be processed by modified
procedure, using written submissions rather than a hearing, under the Commission's Rules of
Procedure 201 through 210.
CLM SIATE WATER'S APPL]CA'I'ION FOR APPROVAL O} ACQTIISITION . 8
CoNCLUS|oN
Gem State Water respectfully requests that the Commission enter an order:
L Authorizing this matter to be processed by modified procedure.
2. Approving the Transaction, finding: that it is consistent with the public interest,
that the cost and rates for supplying service will not be increased by reason ofthe Transaction,
and that Gem State Water has the bona fide intent and financial ability to operate and maintain
the Happy Valley and Bitterroot Water Business Assets in the public service.
3. Granting such other reliefas the Commission deemsjust and reasonable.
DATED: November 18, 2019.
GIVENS PURSLEY LLP
2 ------=---
Preston N. Carter
Charlie S. Baser
Givens Pursley LLP
Attorneys.for Gem Slate Wuter Company, I,LL'
CEM STATE WATER'S APPI,ICATIoN FoR APPRoVAL ()F ACQUISI'fION - 9
./
ATTACHMENT 1
GEM STATE WATER COMPANY
Sanitary Survey - Bitterroot Water Co.
(12 PAGES)
STATE OF IDAHO
DEPARTMENT OF
ENVIRONMENTAL QUALIry
C. L. 'Butch" Otter, Govemor
Jsss Byme, lnterim Director
June 16, 2015
Re: Sanitary Survey of PWS #1280260 Bitterroot Water Company
Dear Mr. Rickel:
Thank you for your assistance in conducting the inspection ofthe Bitterroot Water Company on
May27,2015. I found the water system to be well built, properly maintained, and mostly in
compliance with the ldaho Rules for Public Drinking Water Systems.
The following deficiencieVrequirements were noted during the survey:
I . The system has had a history of constructing on the water system without DEQ approval.
This is a violation of ldaho Code 39-l l8 and any further incidents may result in a Notice of
Violation and fine. Any future changes to the configuration ofthe existing water system
must have prior DEQ Engineering Departrnent approval.
2. The water lines leading from the wells to the reservoir are in the process of being replaced
with a 4-inch line, an increase from the previous 2-inch line. This replacanent line is going
directly from the well to the reservoir and will need to have approved backflow protection
installed.
3. The two 15 hp booster pumps need to have an automatic cut offinstalled to prevent the
pumps from buming out in the event that the reservoir cannot recharge quickly enough.
4. The over flow pipe screen located on the east side ofthe reservoir needs to be replaced as it
had holes in the screen that could allow insects to enter the reservoir and possibly
contaminate their water.
5. All threaded taps located in the well and pump houses that have the potential to be
connected to a hose must be equipped with atmospheric vacuum breakers.
Please submit a plan ofcorrection (POC) for these deficiencies within 30 days ofthe receipt of this
letter that will list the dates when compliance will be achieved. The POC is a simple narrative
document that lists the deficiencies and additional requirements, how they will be corrected, and the
date by which conections will be completed. Please allow yourself adequate time to address the
problems so that time extensions will not be necessary.
ATTACHMENT I TO APPLICATION
GEM STATE WATER
Page t of 12
21 1 0 lronv,ood Parkway, Coeur d'Alene. lO 83814 lrul 769-1422
Mr. Ken Rickel, Owner
Bitterroot Water Company
PO Box 2306
Hayden, ID 83835
l.
2.
3.
Bittenoot i 2015 Survey Report
June 16, 2015
Page 2
Also noted during the survey were recommendations for your water system. They are:
The Department recommends the reservoir be inspected and cleaned every five years.
DEQ recommends the valves in distribution be exercised annually.
DEQ recommends an operation and maintenance manual be provided for the drinking water
system. Operation and maintenance manuals should include daily operating instructions,
trouble shooting, operator safety procedures, location ofvalves and other key components
and system features, parts list order form, and information for contacting the water system
operator.
Ifyou have any questions regarding this survey, please do not hesitate to contact me at the DEQ
in Coeur d'Alene. We are located at 2l l0Ironwood Parkway; phone [phone].
Sincerely,
)eorn4*"^-
Jean Felker
Drinking Water Analyst
Jean.t'elker(i,idaho.cov
Enclosures: Survey Narrative, Photo Log
File in TRIM: ID1280260
ATTACHMENT I TO APPLICATION
GEM STATE WATER
Page 2 of 12
Name of Facility: BITTERROOT WATER COMPANY
lnspector(s): FELKER & MOODY
lnspection Date: Wednesday, May 27, 2015
Purpose of lnspection: SANITARY SURVEY
Photographic Docu mentation
Publish Date: Friday 5 June 2015
ATTACHMENT I TO APPLICATION
GEM STATE WATER
Page 3 of 12
ldaho Department of Environmental Quality
Photographic Documentation For BITTERROOT WATER CoMPANY
Table of Photographs:
Photograph 1: Well 1-west well, newly installed 4" line leading from well 1 to reservoir
PhotoBraph 2:,
Photograph 3: Screened vent on well 1
Photograph 4:......
Photograph 5:Well l well tag E0O05551
Photograph 6: lnside well house looking out toward well 1
Photograph 7: Flow meter..-..............
Photograph 9: Pressure gauge & pressure switches for hydropneumatic tanks located in well house 1 ................
Photograph 10: Sample taps (new) for well 1 & 2, newly installed 4" line from wells to reservoir
Photograph 11: Sample taps for wells 1 & 2
Photograph 12: Reservoir booster pump (15hp) located inside well house 1......
Photograph 13: Reservoir booster pump..............
Photograph 14: Electric panels inside well house 1
Photograph 15: Valves leading out to distribution
Photograph 16: Reservoir floats viewed from hatch
Photograph 17: View inside reservoir....................
Photograph 19: Reservoir roof view, vent on far right (east) end
Photograph 20: Cracks on reservoir roof.......
Photograph 21: Reservoir overflow, screen needs to be replaced to prevent entry of contaminants
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Photograph 18: Reservoir flow to waste...............
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Photograph 22: Reservoir roof looking east..........
Photograph 23: Well 2 (east well), vent installed and screened............
Photograph 24: FIow meter and valves inside well house 2..................
Photograph 25: Pressure tank inside well house 2
Photograph 26: Pressure relief valve, pressure gauge, valves
Photograph 27: previous well 2 sample tap.,..,....
Photograph 28: Pressure relief valve on pressure tank
Photograph 29: Flow to waste for well 2
Photograph 30: Provides make up air pressure for pressure tank..
Photograph 31: Electric panel ........
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2 ATTACHMENT I TO APPLICATION
GEM STATE WATER
Page 4 of 12
ldaho Department of Environmental Quality
aphic Documentation For BITTERROOT WATER COMPANY
Photograph 1: well l-west well, newly inttalled 4" llne leadinS
froln well 1 to reservoit
Phototiaph 2: well l-west well, newly inst.lled 4" line leading
from well 1 to reservoi.
ATTACHMENT I TO APPLICATION
GEM STATE WATER
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Photograph 5i Well l welltat EOq)5561
ldaho Department of Environmental Quality
raphic Documentation For BITTERROOT WATER COMPANY
Photograph 4: : Screened vent on well 1
Photograph 5: ln.ide wellhouse looking out toward well 1
ATTACHMENT I TO APPLICATION
GEM STATE WATER
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Photograph 7: Flow metet
Photograph 9: Pr$sure gaute & pressure swhches tor
hydropneumatiE tanks located in well houi€ 1
Photograph 10: sample tapi (new) ,o, well 1 & 2, newly installed
4" line from welli to.e5ervolr
Photograph 12: R$ervoir boorter pump (15hp) lo.ated l.side
well house I
5 ATTACHMENT I TO APPLICATION
GEM STATE WATER
Page 7 of 12
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Phototraph t3: Reservoir booster pump Photograph 14r Electri. panels inside well houre I
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Photo8raph 15: Valves leading out to di.trlbution
6 ATTACHMENT I TO APPLICATION
GEM STATE WATER
Page 8 of 12
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Photofaph l7l View inside reservoir
Photograph 18: Rerervoir flow to waste
photograph 19: Reservoir rool view, vcnt on far ritht laart) end Phototraph 20: Cracks on reselvoir ,oof
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ATTACHMENT I TO APPLICATION
GEM STATE WATER
Page 9 of l2
ldaho Department of Environmental Quality
raphic Documentation For BITTERROOT WATER COMPANY
PhotoSraph 21: Rerervoir overflow, icreen needi to be replaced
to prevent entry ol contaminants
Phototraph 22: Reservoi. roof lookint east
PhotoSraph 23: Well 2 (east welll, vent installed and screened Photograph 24: Flow meter and valves inside well house 2
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Photo&aph 26r Pressure relief valve, pressure gaute, valves
ATTACHMENT I TO APPLICATION
GEM STATE WATER
Page l0 of 12
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Photograph 28: Preslure relief valve on presrure tank
Photograph 27: p,evious well 2 sample tap
Phototraph 29i Flow to waste ,o. well 2 Photo8raph 30: Provlde5 make up air pressure tor pressure tank
ATTACHMENT I TO APPLICATION
GEM STATE WATER
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ATTACHMENT I TO APPLICATION
GEM STATE WATER
Page 12 of 12
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ATTACHMENT 2
GEM STATE WATER COMPANY
Drinking Water Report - Happy Valley Water System
(6 PAGE)
20lE Drinking Water Supply Report
Idaho Department of Environmental Quality
System: Happy Valley Water System
PWS #: IDI280220
County: Kootenai
Date ofSurvey: April 2,2018
System Representatives Present at Survey: Ken Rickel, Responsible Charge Operator
Surveyed by: Suzanne Scheidt Miller, Senior Drinking Water Analyst
Source: Well
Water System Type: Community
Population: 60
Service Connections: 25 residential metered connections
System Overview
The Happy Valley community public drinking water system (system) is privately owned and
administered by Happy Valley Water System, Inc. The system is supplied by one well, located on a
0.38 acre lot (parcel 5lN04W-17-6650), north ofthe intersection ofHayden Avenue and Happy
Trails Lane, and owned by the system. The well lot is bordered by agricultural fields; application of
herbicides and pesticides is prohibited within a 50 foot radius ofthe well.
The well is enclosed within a dog house structure attached to the well building. Five
hydropneumatic bladder tanks ride on well discharge to tamper pressure transients to distribution
main.
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ATTACHMENT 2 TO APPLICATION
GEM STATE WATER
Page I of6
Well
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The system is not equipped with alarms or auto-dialers, nor is a pigtail receptacle for a portable
generator provided. The system does not share an emergency intertie with neighboring purveyors.
Back-up power or an emergency intertie is a strongly recommended to provide system redundancy.
The water system was not designed to provide fire flow.
Well f (f,0005370) and Discharge Appurtenances
DEQ records indicate the system was first inspected in 1986. The inspection report notes the 8-inch
cased well supplying the system was drilled at an unknown date to a depth of 3 l0 feet. Static water
level was recorded at 270 feet as per DEQ records. A drillers report was not located on the ldaho
Department of Water Resources website nor saved to DEQ files. It is unknown if the well was
constructed with a surface seal. In order to continue to protect the well tiom potential
contamination, cracks in concrete adjacent to well casing were identified as a deficiency and sealed
by the operator. A gap in the joint ofthe well casing and cap was identified lrom photos taken at
the time ofthe survey and also sealed by the operator. Whilethe casingand cap had separated, a
rubber gasket below the well cap provided a seal to protect the source from contamination. Photos
ofrepairs are included in the photo log.
The well is equipped with a 25 hp (3 phase) submersible pump set at 300 feet and discharging
between 100 and 125 gallons per minute (gpm). Well actuation is regulated by a 40-68 psi pressure
switch on well discharge (the service area is of similar elevation to the well). Well discharge
appurtenances include an instantaneous and totalizing flow meter, isolation valves, pressure gage,
and sample tap. The well is plumbed to discharge to waste outside the well building. A pressure
reliefvalve is installed on well discharge and plumbed to exhaust to atmosphere at 75 psi, the outlet
was equipped with 24-mesh screen following the survey (photo-documentation is included in the
photo log).
The well casing is not vented. As per the 2013 survey, IDAPA 58.01 .08.5 I I requires the well cap
be vented ilwaterable drawdown exceeds l0 feet at maximum pump capacity. The 2013 survey
indicated the system operator did not anticipate well draw down to exceed l0 feet as the well draws
from the Rathdrum Prairie Aquif'er. It is strongly recommended the well casing be equipped with a
vent protected with a 24-mesh screen to prevent damage to casing and electrical conduit. A vent
will be required in the event coliform contamination is attributed to the source.
Five hydropneumatic bladder tanks ride on well discharge; each tank may be isolated and drained.
Tanks were last tested in August 2017 (tested every three years) and did not sound water logged at
the time of the survey.
Source Water Assessments have been completed by DEQ, potential contaminant inventories were
last updated in March 2013. Detailed findings may be reviewed and updated at:
http://aoos.deo.idaho. gov/water/swaonline/
ATTACHMENT 2 TO APPLICATION
GEM STATE WATER
Page 2 of 6
2
Idaho Public Utilities Commission regulates the privately owned water system.
Distribution Summary
Record drawings indicate looped distribution main is constructed of2-inch and 4-inch class 160
PVC main; the operator reported some main may be as small as I %-inch PVC. lt is unknown if the
system holds easements for distribution main.
Plans also indicate one dead end main was constructed within the southwest zone ofdistribution.
However, the operator excavated the area following the 2013 survey and reported the dead end main
extension was not constructed; rather the main terminates at the service meter.
It is recommended that flushing hydrants be installed to allow lor flushing in the event of
contamination of the distribution system.
The operator indicated there are no air vacuum reliefvalves installed on distribution main.
As the system receives electrical power lrom Kootenai Electric Cooperative, energy savings rebates
are available from the Bonneville Power Energy Sman Industrial Program. Rebates may go toward
cost of leak detection and repair as well as pump replacement. For more information, please contact
Layne McWilliams with the Energy Smart lndustrial Program in Coeur d'Alene at
[e-mail] or at 971-244-8581.
Required Depressurization Responsc
The ldaho Rules for Public Drinking Water Systems require the lollowing response to distribution
depressurization (pressure below 20 psi) as per IDAPA 58.01 .08.552.01 .b.ii. I -2: during unplanned
or emergency situaliorc, when water pressure within the system is krutwn to have decreased below
20 psi, lhe water supplier must notifi DEQ, provide public notice to affected customers within 24
hours andflush and/or disinfecl the system. l|'hen sampling and correclive procedures have been
corulucted, lhe water supplier malt re-notify the affected customers that water is safe for
consumption. During planned mointenance or repair situations, when waler pressure is expected to
fall below nuenty (20) psi, the water supplier musl provide public notice lo the affecled customers
prior to planned maintenance or repair activity and shall ensure that the water is safe for
consumplion.
Cross Connection Control Implementation
As per ldaho Rules, the water system purveyor is responsible fbr implementation ofa Cross
Connection Control Program. The water system purveyor is defined in the Rules as, the person,
company, or association who provides or intends to provide drinking wdler to the customers and is
ultimately responsible for the public water system oryration. The purveyor is ultimately considered
responsible for implementation of the program.
IDAPA 58.01.08 .552.06.a-e lists the minimum requirements of a Cross Connection Control
Program:
Cross Connection Conlrol Program - Communily Water Systems. The waler purveyor i.s responsible
through its cros.s connection control program Io take reasonable and prudent measures to prolect
the water system against contaminalion and pollutknfrom cntss conneclions lhrough premises
3
ATTACHMENT 2 TO APPLICATION
GEM STATE WATER
Page 3 of6
isolation, inlernal or in-plant isolation, fixlure prolection, or some combinalion ofpremises
isolatbn, intetnal isolation, and fixture proteclion. Pursuant to Section 543, all suppliers ofwater
for community water syslems shall implemenl a cross connection control program lo prevenl the
enlrance lo the system of materiuls known lo be toxic or hazardous. The water pumeyor is
responsible to enforce the syslems cross connection control program. The program will at a
minimum include:
I . An inspection program to locate cross connections and determine required suitable
protection. For new connections, suitable protection must be ih\talled priot to providing
water service.
2. Required installation and operation of adequale backJlow prevention assemblies.
Appropriate and adequale backflow prevention assembly types for various facilities,
fixtures, equipment, and uses of water should be selectedfrom the AWWA Pacific Northwest
Section Cross Connection Control Manual, the Unifurm Plumbing Coele, the AWWA
Recommended Practice for Backflow Prevention ond Cross Connection Control (Ml4), the
USC Foundation Manual ofCross Connection Control, or other sources deemed acceptable
by the Department. The assemblies must meel the requirements ofSection 543 and comply
with locdl ordinances.
3. Annual inspections and testing ofall installed backflow prevention assemblies by a tester
licensed by a licewing authority recognized by the Department. Tesling shall be done in
accordance with the test procedures published by the University ofSouthern California
Foundationfor Cross-Connection Control and Hydraulic Research. See the USC
Fourulation Manutl of Cross-Connection Control referenced in Sub.section 002.02.
4. Discontinuance of service to any structure, facility, or premises where suitable backflow
protection has not been providedfor a cross connection.
5. Assemblies that cannot pass annual tests or those found to he defective shall be repaired,
replaced, or isolated within ten (10) business days. IJ the failed assembly cannot be
repaired, replrced, or isolated wilhin ten (10) business days, water service to lhe failed
assembly shall be discontinued-
A copy ofthe system ordinance providing purveyor authority to implement the program was
provided following the 2013 survey. The document appears to provide purveyor authority to
actively implement the Cross Connection Control program. The operator reported the system has
initiated program implementation through service connection inspections and required installation of
backflow prevention assemblies where required. As an additional requirement to the survey, the
system must continue to implement the program by inspecting all connections, requiring installation
ofbackflow prevention devices and assemblies where applicable, and tracking annual testing of
backflow prevention assemblies by an ldaho licensed backflow assembly tester.
ATTACHMENT 2 TO APPLICATION
GEM STATE WATER
Page 4 of 6
4
Monitoring Summary
The system is operating in compliance with all current monitoring requirements and actively
participates in DEQ's monitoring waiver program. Source water quality currently meets all
regulatory drinking water standards. The table below summarizes current monitoring requirements
for the system. The monitoring schedule may also be accessed at: http://www.deq.idaho.sov/water-
qualitv/drinkins-water/pws-switchboard.aspx
Distribution
taminsnt uenI sample per month In accordance with coliform
sampling plan
Total coliform
Lead and Copper 5 samples every 3 years Assigned sampling locations
ll/ell
sam ear
uenntamtnant
itrate
I lsam lc 9
samlum
Trsenic
I sample per 6 yearsUranium
I sample per 9 years
rum sam rS
lum sam
Re lated IOC Contam Inants sam r rS
Nitrate levels have historically ranged ( 1986 to present) from I .4 to 2.8 mgll- with 201 7 results at
2.61 mg/L. Historic arsenic levels have been consistently below minimum detection levels.
Lead and copper monitoring results from the last round offive samples collected in September 2016
ranged from 0.0016 to 0.0022 m{L for lead, with copper levels ranging ftom 0.0137 to 0.0769
mg/L. The lead action level is 0.015 mg/L and copper action level is L3 mg/L. Lead and copper
monitoring will be due again between June I and September 30, 201 9 and are to be collected from
home sampling locations identified as per system lead and copper site selection criteria.
As a community water system, monthly monitoring for total coliform in distribution is required to
represent water quality throughout distribution. A review of monthly sampling history between
March 2017 and February 2018 reflects samples are collected in accordance with the sampling plan.
Sampling locations include 9961 Huetter,5948 Emmanual,589l Hayden,494l Hayden,5876
Emmanual, and 10087 Huetter. Total colifbrm samples collected from the well building will not be
credited for future compliance.
Administrative and Operational Oversight
The system is classified as a Very Small Water System under direct oversight ofresponsible charge
licensed operator, Ken Rickel, who holds a Very Small Distribution License (DWDVSWS-12995)
due for renewal September 8,2018. Back-up operation is provided by Robert Wachter. Mr.
wachter holds a distribution one license (DwDl-12905) due lor renewal on December 17,2018.
Administrative oversight of the water system is provided by a two member Board. Ken Rickel
serves as President, Catherine Rickel serves as Secretary.
Please complete the enclosedfinancial and managerial forms and relurn lo the DEQ Coeur d'Alene
Regional Ofice within j0 days of receipt.
ATTACHMENT 2 TO APPLICATION
GEM STATE WATER
Page 5 of6
f
Conclusion
The system is considered to be operating in compliance with the Rules. Below please find a
summary of requirements and recommendations for optimization of luture system operation,
Requirements
I . The application of herbicides or pesticides is prohibited within a 50-foot radius of the
well.
2. A well casing vent will be required in the event coliform contamination is attributed to
the source.3. In the event distribution pressure decreases below 20 psi, appropriate follow up action in
accordance with the Rules must be followed, as stated on page 5 of this report.
Requirements include providing notification to affected customers within 24 hours,
notificalion to DEQ and collection ofwater quality samples to verify integrity ofthe
water supply.
4. The cross connection control program is required to be fully implemented.
5. Total coliform samples collected from the well building will not be credited for
compliance in the future.
6. Please complete and retum the enclosed financial and managerial tbrms within 30 days of
receipt of this report.
Recommendations
I . Back-up power or an emergency intertie with a neighboring purveyor is strongly
recommended to provide system redundancy.
2. It is strongly recommended the well is equipped with a vent protected with a 24-mesh
screen to prevent damage to well casing and electrical conduit upon well actuation. A
vent will be required in the event coliform contamination is attributsd to the source.
3. It is recommended that flushing hydrants be installed on looped distribution main to
allow for flushing in the event of system contamination.
4. It is recommended hydropneumatic tanks continue to be routinely tested for potential
bladder failure.
5. lt is recommended all system valves are exercised on an annual basis.
6. [t is recommended that an Operation and Maintenance Manual be drafted for the water
system if not already available.
ATTACHMENT 2 TO APPLICATION
GEM STATE WATER
Page 6 of6
6
ATTACHMENT 3
GEM STATE WATER COMPANY
Drinking Water Report - Bitterroot Water Co.
(5 PAGE)
IDAHO DEPARTMENT OF ENYIRONMENTAL QUALITY
201 5 Drinking Water Supply Report
PWS NUMBER: ID1280260
SYSTEM: Bitterroot Water Company COUNTY: Kootenai
OWNERSHIP: Public Utility
INFORMATION OBTAINED FROM: Ken Rickel
LOCATION: Brunner Rd and Clagstone Rd, Athol, lD
INSPECTOR: Jean Felker & Anna Moody DATE OF SURVEY: May 27,2015
POPULATIONSERVED: 383 NUMBEROFCONNECTIONS:153
FIf,LD SURVEY DATA
The Bitterroot Water Company (Bitterroot) water system is a small privately owned community
system located south ofAthol. The system serves approximately 153 connections, I l6 from the
Bitterroot Water Sltem and 37 from the Rickel Water System. The water system is owned and
operated by Ken Rickel and is regulated by the ldaho Public Utility Commission.
The Bitterroot water system was constructed in 1994 to serve the 33-lot Silver Meadows
development. The original water system consisted of a single well, well house, and distribution
mains serving the development. Construction ofthe water system was approved by DEQ with
the contingency that the water system would obtain a second source before the development
reached 25 connections. In May of 1995, an agreement between Bitterroot and the nearby 8 Mile
Prairie water system was reached, and the two systems were interconnected to accommodate tire
flows. Water infrastructure for the 3'd Addition of the development was completed in 1996. This
phase added an additional 64 lots to the development. The 4th Addition infiastructure was
completed in I 997 and added an additional 29 connections to the water system. A 100,000
gallon reservoir and booster pumps were added to the water system in 1997. In 1998, Bitterroot
installed an interconnection to another nearby water system owned by Ken Rickel in order to
fulfill the requirement of having two wells. Phase 2 of the development was constructed in 2005
and included the addition of l9 residential connections and a connection to a school.
A System Capacity Analysis was completed in 2006 by lnland Northwest Consultants. The
conclusion ofthe analysis was that the system has the capacity to serve a maximum of 176
connections. The analysis recommended installing larger pumps in the wells and backup power.
The 2008 sanitary survey noted recent improvements to the water system include the addition of
a new booster pump in the reservoir, and a stand-by power generator. 'l-hese improvements were
completed without DEQ approval ofplans and specifications.
Sources
Bitterroot utilizes two wells drilled over the Rathdrum Prairie-Spokane Valley Aquifer to serve
its users. The original Bitterroot well (Well #l - west well) is located at Township 53 North,
Range 3 West, Section 29 near the intersection of Brunner Road and Clagstone Road. This well
was drilled in April of 1994 by Ponderosa Drilling and Development, Inc. The well casing isan
8-inch steel casing that extends to a depth of464 feet below ground surface (bgs). The bentonite
ATTACHMENT 3 TO APPLICATION
GEM STATE WATER
Page I of5
surface seal extends to a depth of50 feet bgs. Thewell is capable of pumping at a rate of 130
gallons per minute (gpm). The west well is housed inside the well house. Thewell house
contains six hydropneumatic tanks that maintain pressure in the distribution system, The
pressure gauge at the time ofsurvey was reading approximately 50 psi. The well has the
capability ofby-passing the reservoir and pumping directly into the distribution system while
maintenance is performed on the reservoir.
The water is no longer chlorinated in this well house prior to entering the 100,000 gallon
reservoir. The chlorine storage tank has been removed from the well house, although the feeder
pump remains in case of temporary need to chlorinate due to contamination.
The water lines leading from the wells to the reservoir are in the process ofbeing replaced with a
4-inch line, an increase from the previous 2-inch line. This replacement line is going directly
from the welI to the reservoir and will need to have backflow protection installed. lt was
discussed with Mr. Rickel that any future changes to the configuration ofthe existing water
system must have prior DEQ engineering approval.
The second well (Well 2- east well) serving the Bitterroot system was originally drilled to serve a
water system owned by Ken Rickel. Per Ken Rickel, these two water systems have been
combined. This well is located on Brunner Road east ofthe railroad tracks separating the two
wells.
The east well was drilled in 1993 by H2O Well Service. The well casing is l0 inches in diameter
down to 200 feet bgs, and I inches to 447 feet bgs. The well is capable of pumping at I l5 gpm.
Well 2 has a properly screened and downturned vent installed as required on the previous
sanitary survey. The well pumps to the nearby reservoir and has the capability ofpumping
directly to distribution. The well house contains a bladderless hydropneumatic tank.
Both wells have flow to waste capability and are securely fenced and locked to prevent
unauthorized access.
Storage
The water system contains a 100,000 gallon concrete reservoir. The reservoir is partially buried
with only the roof above grade. Water from the two wells is pumped into the reservoir and
controlled by floats to initiate and stop water production. Water from the reservoir is pumped to
distribution via two l5 hp motors; a third, 30 hp motor accommodates peak use and provides fire
flow. The two I 5 hp booster pumps need to have an automatic cut off installed to prevent the
pumps from buming out in the event that the reservoir cannot recharge quickly enough.
The sample tap for the reservoir is located inside the well house building. lt has an AVB and it
was discussed that it should be removed prior to taking a coliform sample. The flow to waste
valve was weeping inside the building and needs to be repaired. The hatch is located inside the
well house building and is protected fiom the weather. The hatch lid gaskets were in good
condition. The reservoir vent is located on the east end ofthe reservoir and was in good
condition and met current standards.
)_ATTACHMENT 3 TO APPLICATION
GEM STATE WATER
Page 2 of 5
The reservoir roof has signs ofcracking and previous repairs are chipping from weather and
wear. It is recommended that an approved sealant be considered to protect the rooffrom further
deterioration and to protect the water fiom the chance of contamination through cracks. The over
flow pipe screen located on the east side of the reservoir needs to be replaced, as it had holes in
the screen that could allow insects to enter the reservoir and possibly contaminate their water.
Distribution
The system serves approximately 153 connections. Distribution mains consist mainly of6- and
8-inch pipe. There are several fire hydrants on the system and an interconnection between
Bitterroot and the Eight Mile Subdivision water system for emergency use such as to help
provide fire flows. The interconnection valve is located at the comer of Clagstone Road and
Brunner Road at the well house driveway and is accessible to both water systems. There are no
booster stations within the distribution system.
Floats regulate the water level in the reservoir to initiate the wells to produce water and to shut
down. The reservoir sample tap provides a combined source sample fiom the well field. To
sample the individual wells the newly installed smooth nosed sample taps are located just prior to
the flow meters on the entry lines into the reservoir that are to be located inside the pump house
at the reservoir.
The Bitterroot Water Company has established a formal cross connection control program. A
cross connection control program and by laws related to its enforcement are in efl'ect as required
by the Rules (IDAPA 58.01 .08.552.06). The water system must ensure that cross connections do
not exist or are isolated from the potable water system by an approved backflow prevention
assembly. Backflow prevention assemblies shall be inspected and tested annually for
functionality by an ldaho licensed tester, as specified in Subsection 552.06.c. Annual backflow
testing ofall backllow assemblies installed on underground sprinkler systems within distribution
is required. Per the owner, the homeowners are in compliance with annual back flow testing
requirements.
A conservation program is in effect based on seasonal demand and supply. Ken Rickel indicates
when water use increases and places demand on storage capability, water users are required to
water even or odd days and not during the hottest time ofthe day.
Monitoring
Lead and Copper 5 samples per 3 years
Inorganic Contaminants - I sample per 9 years
Volatile Organic Contaminants I sample per 6 years
Arsenic I sample per 9 years
Nitrate I sample per year
Nitrate I sample per 9 years
Radionuclides I sample every 9 years
Sodium I sample every 3 years
Fluoride - I sample every 9 years
-3-ATTACHMENT 3 TO APPLICATION
GEM STATE WATER
Page 3 of 5
The Bitterroot water system has established a coliform sampling program that is representative of
the distribution system. The locations ofthe routine monthly samples are varied throughout set
locations within distribution. The chemical sampling point is located atthe reservoir which is
representative oithe wellfield (wells I and 2).
Source Water Assessment Report
The Source Water Assessment describes the public drinking water wells, the well recharge zones,
and potential contaminant sites located inside the recharge zone boundaries for a public water
supply. This assessment, taken into account with local knowledge and concerns, should be used
as a planning tool to develop and implement appropriate protection measures for the public water
system.
The Bitterroot Water Company Source Water Assessment was completed on March 14, 2002.
The reports are available online at the following web address:
http ://www2.deq. idaho.gov'walcnbtryalQn line/Se4rctrSrrya-as!x.
The water system does not appear to have a Drinking Water Protection Plan prepared by the
Department or Idaho Rural Water Association. Source water protection (synonymous with the
term drinking water protection) is a voluntary effort a community can implement to help prevent
contamination of the source water that supplies its public water system. The drinking water
protection plan outlines the management tools local committees can use to protect drinking water
sources, and describes the implementation ofregulatory andior non-regulatory management
practices. The Drinking Water Protection Plan builds upon the work completed in the Source
Water Assessment-
l) Regulatory tools include items such as zoning ordinances, overlay districts, or site plan
review requirements;
2) Non-regulatory tools include items such as educational or pollution prevention activities
and implementation of Best Management Practices;
3) Every plan should also include a public education and information component.
Administration
The Bitterroot Water Company is owned and operated by Ken Rickel. and is classified as a very
smallwater system. Ken is licensed at the appropriate level tbr the system bythe ldaho Bureau
of Occupational Licensing as a DWDVSWS-12995, which expires in September20l5. The
system is regulated by the ldaho Public Utilities Commission (PUC). Rate structure is currently
under review for a proposed rate increase by the PUC. The current water rate is $24.91 tbr the
first 15,000 gallons, and $1.73 / 1000 gallons over. The operator stated that at the current water
rate, the water system is unable to save enough money to allow improvements to be made to the
water system.
Conclusions and Recornmendations:
The Bitterroot Water Company water system appears to be well maintained and operated and is in
Substantial Compliance with the ldaho Rules for Public Drinking Water Systems (Rules). The
following improvements are required in order for this system to be in compliance with the Rules:
ATTACHMENT 3 TO APPLICATION
GEM STATE WATER
Page 4 of 5
-4-
For more inflormation, please contact Anna Moody at the DEQ oflce at 208-769-1422.
Requirements:l. The system has had a history ofconstructing on the water system without DEQ approval.
This is a violation ofldaho Code 39-l l8 and any further incidents may result in a Notice
of Violation and fine. Any future changes to the configuration ofthe existing water
system must have prior DEQ Engineering Department approval.
2. The water lines leading fiom the wells to the reservoir are in the process ofbeing replaced
with a 4-inch line, an increase from the previous 2-inch line. This replacement line is
going directly from the well to the reservoir and will need to have approved backflow
protection installed.
3. The two I 5 hp booster pumps need to have an automatic cut off installed to prevent the
pumps from buming out in the event that the reservoir cannot recharge quickly enough.
4. The over flow pipe screen located on the east side ofthe reservoir needs to be replaced as
it had holes in the screen that could allow insects to enter the reservoir and possibly
contaminate the water.
5. All threaded taps located in the well and pump houses that have the potential to be
connected to a hose must be equipped with atmospheric vacuum breakers.
Recommendations:
I . DEQ recommends the reservoir be inspected and cleaned every five years.
2. DEQ recommends the valves in distribution be exercised annually.
3. DEQ recommends an operation and maintenance manual be provided for the drinking water
system. Operation and maintenance manuals should include daily operating instnrctions,
trouble shooting, operator safety procedures, location ofvalves and other key components and
system fbatures, parts list order form, and information for contactingthe water system operator.
5 ATTACHMENT 3 TO APPLICATION
GEM STATE WATER
Page 5 of 5
ATTACHMENT 4
GEM STATE WATER COMPANY
Notice to Customers
(l PAGE)
HAPPY VATLEY WATER SYSTEM INC. & BITTERROOT WATER CO., INC.
CUSTOMER INFORMATION
Dear customers,
ln September 2019, Gem State Water Company, a subsidiary of NW Natural Water, entered into an
agreement to acquire the water utilities of Happy Valley Water System lnc. (Happy Valley) and Bitterroot
Water Co., lnc. (Bitterroot).
After the sale is approved, the utilities will continue to be operated locally with the oversi8ht of Gem
State's North ldaho team made up of professionals from the Coeur d'Alene area. Gem State Water,
Happy Valley, and Bitterroot expect that the transition will be seamless to customers.
About NW Natural Water
NW Natural Water provides water distribution service, or will provide water distribution service upon
closing of pending acquisitions, to approximately 45,000 people through 18,000 connections in the
Pacific Northwest. NW Natural Water is a subsidiary of NW Natural Holdings (NYSE:NWN) and is
headquartered in Portland, Oregon.
More information
lf you have questions about the transaction and transition to Gem State Water, please contact Happy
Valley, Bitterroot, NW Natural Water, or the IPUC using the following infor,r'alion. (Note: this is for
informotion obout the transdction. Pleose continue to contoct Hdppy Volley or Bitterroot for customer
billing ond service inlormotion,)
NW Natural Water
Attn: Melissa Moore
220 N.W. Second Ave., Portland, OR 97209
Email: [e-mail]
503.226.421L
ldaho Public Utilities Commission
11331 W. Chinden Blvd
Building 8, Suite 201-A
Boise, lD 83714
208.334.0300
ATTACHMENT 4 TO APPLICATION
CEM STATE WATER
Page I of I
The ldaho Public Utilities Commission (lPUc) is currently reviewing the transaction. To follow the
regulatory process, check the Commission's website at W!y!!.:p!!I!a[9r89y or use the contact
information listed below.
Happy Valley & Bitterroot
Attn: Kenneth and Catherine Rickel
Bitterroot Water Co., lnc.
P.O. Box 2305
Hayden, lD 83835
Email: [e-mail]
208.683.8105
ATTACHMENT 5
GEM STATE WATER COMPANY
Water Rights - Happy Valley Water System
(4 PAGES)
State of Xdaho
DEFAR.T'MENIT OF WAT'ER. R.ESOI.IR.CIES
Northern Rcgion, 7600 Mlnerel Drive. Suite l(X), Coeur d'Aleoe, Idaho 83815
Phone: [phone]fi) I'AX: [phone] www.idwr.ideho.gov
C.L'ETTTOI" OTTER
Govarnor
May 14,2015 GARY SPACKITIAN
Dlrector
HAPPY VALLEYWATER SYSTEM INC
PO BOX 2306
HAYDEN ID 83835
License No. 95-13815
lssuance of License
Dear Water Right Holde(s):
The Department of Water Resources has issued the enclosed Water Right License
confirming that a $,ater right has been established in accordance with your permit.
Please be sure to thoroughly review the conditions of approval and remarks listed on
your license.
The license is a PRELIMINARY ORDER issued by the Department pursuant to section
67 -5243,ldaho Code. lt can and will become a final order without further action by the
Department unless a party petitions for reconsideration or files an exception and/or
brief within fourteen (14) days of the service date as described in the enclosed
information sheet.
Please note that water right owners are required to report any change of water right
ownership and/or mailing address to the Department within 120 days of the change.
Failure to report these changes could result in a $100 late filing fee. Contact any ofiice
of the Department or visit the Department's homepage on the lnternet to obtain the
proper forms and instructions.
lf you have any questions, please contact me at 208-762-2800.
Sincerely,
Ke E. Franklin
P ram Manager
Enclosure(s)
cc: KEN RICKEL & CATHY RICKEL ATTACTIMENT 5 TO APPLICATION
GEM STATE WATER
Page I of4
RE:
Prlority: September 10, 2010
State of ldaho
Department of Wator Resourcss
Water Right License
WATER RIGHT NO. 95.13815
Maximum Diversion Rate:
Maximum Diversion Volume:
0.41 CFS
28.8 AF
It is hereby certilied that HAPPY VALLEY WATER SYSTEM INC
PO BOX 2306
HAYDEN lD 83835 has complied with the terms and
conditions of the permit, issued pursuanl to Application for Permit dated September 10, 2010; and has
submitted Proof ot Beneficial Use on March 05, 20'!2. An examination confirms water is diverted from:
SOURCE
GROUND WATER
and a water right has been established as follows:
AEIUI
DTVERSION VOLUME
28.8 AF
BENEFICIAL USE
MUNICIPAL
PERIOD OF USE
o1lo1 b 12J31
DTVERSION RATE
0.41 CFS
LOCATION OF POINT(SI OF DIVERSION:
GROUND WATER SE'lr4SW1/4 Sec. 17, Twp 51N, Rge 04W, B.M. KOOTENAI County
CONDITIONS OF APPROVAL
'1. Place of use is within the area served by the public water supply system 1D1280220 of Happy Valley
Water System lnc. Th6 place of use is g6nerally located within Section 17, Township 51 North,
Range 4 West.
2. A map depicting the place of use boundary for this water right at the time of this approval is attached
to this document br illustrative purposes.
3. This right authorizes lhe diversion of ground water within tha Rathdrum Prairie cround Water
Management Area (RPGWMA). Use of water under this right shall be subject to the provisions ot
the management plan approved by the director for the RPGWMA.
4. After specific notification by the Oepartment, the right holder shall install a suitable measuring
device or shall enter into an agreement with the Department to use power records to determine the
amount of water diverted and shall annually report the information to the Department.
5. This right does not grant any right-of-way or easement across the land of another
This license is issued pursuant to the provisions of SBction 42-219, ldaho Code. The water right
confirmed by this licenge is subject to all prior water rights and shall be used in accordance with ldaho
law and applicable rules of the Oepartment of Water Resources.
sisned this J 4 aav ot A(,-i \ ,zots.
SPACKMAN
ENT 5 TO APPLICATION
GEM STATE WATER
/r1
A
Happy Valley Water Systom lnc
95-13815
Service Area
04w
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IJ'
E \ rater SeMce Area Boundary
Townships
PLS Sections
Ouarter Quarters
ATTACHMENT 5 TO APPLICATION
CEM STATE WATER
N
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Water Right License
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CERTIFICATE OF SERVICE
I hereby certify that on May 14, 2015 I mailed a true and conect copy, postage
prepaid, of the foregoing PRELIMINARY ORDER(Approved License) to the
person(s) listed below:
RE: WATER RIGHT NO.95-13815
CATHY RICKEL & KEN RICKEL
PO BOX 2306
HAYDEN ID 83835
HAPPYVALLEY WATER SYSTEM INC
PO BOX 2306
HAYDEN ID 83835
Dianne Ball
Administrative Assistant
ATTACHMENT 5 TO APPLICATION
GEM STATE WATER
Page 4 of 4
J^;-**- /L-r-
ATTACHMENT 6
GEM STATE WATER COMPANY
Water Rights - Bitterroot Water Co.
(2 PAGES)
c7 /21/20LO
IDAfiO DAPA.RTIIENT OT TAIER RESOT'RCES
RECO IIENDED iIATER RIGIiTS ACQUIRED I'NDER STATE LAI{
RIGH? |fU['BER:
NAXE AND ADDRESS :
95-96,11
BITTERROOT I{A?ER CO INC
PO aOI 2!05
HAYDEN LAKE ID 8]835
sorrRca:
OUAI{TITY :
GROt'ND I.AAER
o. ?50 cFg
!.92. O0 AFY
PRIORITY DATE:
POITT OF
DIVERSION:
01/Lr/1994
T53l RO3W S29 5IS$ Xj,thin I@OTEI{AI Counly
T93[ R03ll s29 sxsr Eichln xOO!EI|AI County
Thi! right does not grlnE any right-of-say or aaseEenl across lhe land o!
PT.IRPOSE AND
PERIOD OF USE:
EBESEE-OE-UIiE
'IRE PNMECTION
MgNI Cl PAL
FERIOD OP USE OSNTTT?Y
o)./ol L2131 0, ?50 CES
or/ot 12/3], 0. ?50 cFs
192 - O0 AFY
fire pror.ction ulre und€r Ehis righ! excepl tottarer 6ha11 not bc div.rted forflgh! or repel an exiBtlng fire
PLICE OF USE:
Place ol uae lB uj.rhln rhe area 3.rvcd by lhc public rater rupply ayscem ofEiiterroot. tl.Ler co Inc. Th€ !,Iacc ot uae is g€nerally locatcd ril.hinaovnahlp 53X, Ea.Ege 0311, SectloBs 20, 28, 29, 30, 32 and 33.
OTIIER PROVISIOI{s I{ECSSSARY FOR DEFIIIITIOI{ OR ADIIIIIISTS.ATION OF THIS ,'ATER RIGBT:
This parlial decrae is subjsct !o such general pEovlBlon6 n€ce8dary forth€ definiLioo of lhc righEa or for lhe efficilnl adllniatsration of the relcrrighEs ar ray bc ullioaEaly dGterhined by the court at a polnt in tlna noIaE.r th.n thc cntry of s final unllied decrcc. Sectlon l2-1,tr2(6), Idaho
code.
EXPTAATORY iIATERUJ.: BASIS OF CI.AIH - Licenae
After ap.cific notificat.ion by Eh. Departn€n!, lhc righl holder 6haII inalall6ullable aeagurj.ng devlcc or shall cnler into an agreeoen! rlth thaoet)elllllen! !o use por.r recordS to deEe!fiinc the ahount of vater aliverted
and Eha1l annually repor! che informallon to lhe oeparlcenE.
The raLer .yslem described in this right has be.n assigned Publi.c latersupply tD1280250 by rhe Idaho oeparthcnr of Envlronmeotal Qual.ity.
Eario 95 Part 1 Director'! Report fo! Recomendcd Cl.in! 1451
ATTACHMENT 6 TO APPLICATION
CEM STATE WATER
Page I of2
TRIBIIIARY:
01/21/20rA
-IOAI{O OEPARIflENT OF V|ATER RESOURCES
RECOi{MEIIDED IIATER RIGIITS ACQOIFED T'NDER STATE LAII
RIGI}T MfiAER:
NA!nE AND ADDRSSS:
,5-9644
RICKEL IIATER CO
PO BOX 1261ltaYDEI t AKE tD tltt5-1261
souRcE:
QUAT?ITY:
GROL'ND TAAFR
0-2t0 cPs,r5.90 AFY
PRIORITIDATE: 08/ll/r99t
POII{T OF
DIVETSIOT:TslN R03r. S29 SrSfl tlj.rhin XOOIEr|A! Counry
T53N Rolx S29 S{Sr rilhin XOdIBIAI Counly
This rlgbE doe6 noc arant any rlght-ol-ray or cascnrenl acroas Eba Iand ofano!har.
PURPOSE AND
PERIOD OF USE:
PT]RPOSE OF USE
TUNICI PAL
P]'PIOD OF US]E
otlot t2/)7
qaElg.
0 .280 cFsr15.90 AFY
PI.ACE OF UsE:
Place of use ia wlihln lhe ar.a servedRickel ll.lcr CoaP.ny. The place of usaby rhe publlc ya!6r aupply syalem ofis generally localed rirhidrovnship 53 lforrh, Range 3leat, Secliona 20,28,29,30, 32 and 13.
OTHER PROVISIONS NECESSAIY FOR DEPINITION OR ADI"II}IISARATION OF TIiIS TATER RIGTT:
?hj.s p.rlial alecree ls Bubject to lruch gcneEal provl5ion6 necersary lorEh! definition of the rlght5 or lor lhe effici.nc .dminiarralion o! rhe v.terrighls aB may be ultinately dclerrrneal by lhe Courr at . poin! in rla€ no1a!cr Ehan lhc enlry ol a final unified decrec. SecElon {2.1{t2(6), Idaho
Cod€.
EXPIJAIIATORY I{ATERIAL: BaEIS OF CLIIU - Lic.nlc
The rratcE Eystern dclcribcd in thi6 right. hrs b.er ar.ign.d Public 8a!€rsupply rD128O25O by Ehe rdaho Departften! of Environnental ouallly,
alcer apccillc notiaiceiion by th. lrcparcflllnr, Ehc right holdcr shall Ia.l.ll a6uitable nea5uring devicc or shall enlcr inlo an agreenelr! rith th€Lrrpartlen! to use porer rccorda co deLenrine Lhc alnoullt ol ratar divart,ed
alrd shall anrNa]Iy rcport thr infofinalion qo lhe Dep.rtnanE.
1452
ATTACHMENT 6 TO APPLICATION
GEM STATE WATER
Page 2 of 2
Basin 95 Part 1 Dir.clor'! ReporE lor R€comnended Clains
TRIBUTARY: