Arizona Corporation Commission rejects Grand Canyon developer’s effort to provide water service!

The Arizona Corporation Commission evidently agrees that the developers proposing a mega-development outside the south gate to Grand Canyon National Park are incapable of providing a sustainable water source.

The text of the Commission’s decision to no longer consider their application for a new water delivery system is below:

BEFORE THE ARIZONA CORPORATION COMMISSION

COMMISSIONERS

BOB STUMP -Chairman
GARY PIERCE
BRENDA BURNS
BOB BURNS
SUSAN BITTER SMITH

IN THE MATTER OF THE APPLICATION OF

DOCKET NO. W-20828A-II-0475
TUSAYAN VENTURES, L.L.C., AN ARIZONA
LIMITED LIABILITY COMPANY, FOR A
CERTIFICATE OF CONVENIENCE AND
NECESSITY TO PROVIDE WATER SERVICE
IN COCONINO COUNTY, ARIZONA.

PROCEDURAL ORDER

BY THE COMMISSION:

On December 28, 2011, Tusayan Ventures, L.L.C. (“T Ventures”) filed with the Arizona
Corporation Commission (“Commission”) an application for a Certificate of Convenience and
Necessity (“CC&N”) to provide water service in Coconino County, Arizona.

Since that time, the Commission’s Utilities Division (“Staff’) has issued an Insufficiency
Letter; T Ventures has provided some ofthe requested information to Staff, but has also several times
requested additional time to provide information; and Staff has directed T Ventures to submit all
remaining information by June 1, 2013. In addition, a number of comments in opposition to the
application have been filed, and the Grand Canyon Trust (“GCT”) and the Center for Biological
Diversity (“Center”)1 have been granted intervention without objection.

On June 12, 2013, the Center2 filed a Motion to Terminate Commission Proceedings
Regarding the Granting of a Certificate of Convenience and Necessity to Tusayan Ventures, L.L.C.
(“Motion to Terminate”). In the Motion to Terminate, the Center asserted that T Ventures will never
be able to provide the Commission with the information necessary to secure a CC&N because T
Ventures will never be able to provide proof of availability of water to which T Ventures has legal
access. The Center stated that the success of T Ventures’ proposed endeavor would require use of

water belonging to the Grand Canyon National Park and the Havasupai Tribe, which is protected by
federal reserved water rights and unavailable to T Ventures. The Center asserted that the
Commission should terminate this matter without delay.

Also on June 12, 2013, T Ventures filed a letter to Staff requesting that Staff provide it
another 60-day extension. In the letter, T Ventures stated that it would not have filed its CC&N
application had it not been required to do so by the terms of a development agreement between its
affiliate Stilo Development Group USA (“Stilo”) and the Town of Tusayan (“Town”); that T
Yentures understoruLit could~not-presentlyprovide the information necessary to-~€C&N
application to sufficiency; that negotiations were ongoing to remove the CC&N application
requirement from the development agreement; that the negotiation and revision process was expected
to take less than 60 days; and that T Ventures would docket a request to withdraw its CC&N
application once the CC&N application requirement had been removed.

On June 14, 2013, the Town Attorney filed a letter to Staff stating that the Town was
negotiating an amendment to the development agreement with Stilo and that the Town Attorney was
confident that an agreement would be reached to relax the CC&N application requirement.

On July 9, 2013, Staff filed a Memorandum recommending that this docket be
administratively closed in light ofthe information in the June 12,2013, T Ventures letter.

On July 11,2013, T Ventures filed a letter to Staff stating, inter alia, that T Ventures would
be filing a motion to withdraw without prejudice. On the same date, T Ventures filed a Notice of
Withdrawal without Prejudice requesting that this docket be administratively closed.

No filings have been made in response to T Ventures’ Notice of Withdrawal.

In light of T Ventures’ desire to cease pursuing a CC&N at this time, T Ventures’ apparent
inability to meet the application requirements for a CC&N at this time, and the lack of objection from
the other parties to this matter, it is reasonable and appropriate to allow T Ventures to withdraw its
CC&N application. Further, it is reasonable and appropriate to close this docket.

IT IS THEREFORE ORDERED that Tusayan Ventures, L.L.C.’s application for a
Certificate ofConvenience and Necessity is hereby deemed withdrawn.
IT IS FURTHER ORDERED that Docket No. W-20828A-ll-0475 is hereby
administratively closed.
DATED this 22nd day ofJuly, 2013.

SARAH N. HARPRING, ADMINISTRATIVE
LAW JUDGE

1 In the Procedural Order granting intervention to the Center, Dr. Robin Silver was authorized to represent the Center before the Commission in this matter.

2 Although the Center is not expressly mentioned in the Motion filed by Dr. Robin Silver on June 12,2013, the Motion must have been filed by Dr. Silver on behalf of the Center because Dr. Silver has not been granted intervention as an individual.

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About Protect Grand Canyon

Sierra Club's Restore and Protect the Greater Grand Canyon Ecoregion Campaign. Looking out for the 11,400 species that live in & love Grand Canyon!

Posted on July 25, 2013, in Uncategorized. Bookmark the permalink. Leave a comment.

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