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The most influential player in the Wendover/Newmont water dispute could be a soft spoken Las Vegas business man who has tangled legally with both the mining industry and the city of West Wendover.
Ray Koroghli, the third of three owners the Johnson Springs water right has good reason to smile these days while the other two owners: the cities of West Wendover and Wendover, Utah; and the Newmont Mining Corporation struggle to reach an agreement on the precious water source.
Last month the mining company rejected out of hand a draft proposal from the Wendover Water Working group calling it a nonstarter.
Apart from asking for an annual half a million dollars in cash from the mining company for the life of the mine, the Group also asked the company to fund the search and development of new water sources, guarantee the loan of the Johnson Spring Pipeline and various other demands.
According to Newmont Director External Relations Mary Korpi the company’s engineers estimated price tag for the entire laundry list was pegged it at around $40 million. Newmont’s figure is within shouting distance of the Working Group’s own estimated at just under $30 million according to sources.
But even the lower figure is considered a non starter by the mining company.
“I don’t know why but a lot of cities don’t get the fact that private enterprise has to turn a profit,” said an real estate developer the Advocate asked to examine the Working Group’s Proposal. “These demands make the project unprofitable that is why the company dismissed them. From what I understand they were so far out in left field that there is absolutely no common ground to negotiate from. The Water Working Group probably lost all credibility with Newmont as a serious partner.”
“Newmont was surprised on Friday, June 22, when we received a detailed proposal regarding a variety of financial and non-financial considerations under which the Cities would be the beneficiary.” Korpi said echoing comments made two weeks ago by Newmont’s local liaison Pamela Smith that the demands were simply not realistic.
Through its acquisition of the Big Springs Ranch property, Newmont owns one third of the water rights of Johnson Springs with the remaining one third owned jointly by the cities of West Wendover and Wendover, Utah and one third owned by Koroghli.
Koroghli and partners purchased the Big Springs Ranch over ten years ago and then separated the property in and around Wendover from the land eventually purchased by Newmont in the Pequop Mountain range.
Fronteer Gold, Newmont’s predecessor in the Long Canyon mine and Koroghli went through a nasty and public court fight over the property that was only resolved last year.
Koroghli has also fought with West Wendover on a variety of issue from rights of way to zoning.
“Koroghli is in a pretty good position right now,” said one observer close to the dispute. “Its a three way ownership and two of the players could be fighting with each other. How he goes could be a major factor in the end. Right now he is probably very popular and will probably be wooed by both.”
