February 21, 2008
SNWA Considers Pipe Plant in Caliente

By Dave Maxwell, Staff Writer

Speaking at the February 11 regular meeting of the Lincoln County Power District (LCPD), General Manager Mick Lloyd said the Southern Nevada Water Authority (SNWA) has expressed a desire to build a pipe coating plant in Caliente. Lloyd said SNWA believes Caliente would be a central location for manufacturing the pipe to be used in the proposed water pipeline to Las Vegas through White Pine and Lincoln Counties. Marc Jensen, SNWA Director of Engineering, in Las Vegas said in a telephone interview that, “They are exploring options in Caliente, but have not committed to anything as yet.”

Lloyd said SNWA has talked with the LCPD about the needed upgrades to supply electricity to the manufacturing plant, which will probably be located in the Meadow Valley Industrial Park.

Bredero-Shaw, a Texas-based pipe-coating company, last fall took out a lease on 62-acres in the Meadow Valley Industrial Park, with a “right of first refusal,” meaning they would have the right to counter offer any bid on the property made by someone else. Caliente City Councilman Tom Acklin reported that the lease is good through the end of March, 2008, although Bredero-Shaw has the option of asking the City for an extension.

If SNWA decides to locate a pipe manufacturing plant in Caliente, they would probably bid it out to a pipe mill and allow the pipe mill to subcontract the coating facilities to a company of their choice that meets the specifications of SNWA, Acklin said.

However, Marc Jensen said that does not mean that Bredero-Shaw would be that subcontractor. In fact, Bredero-Shaw does not fit into SNWA’s plans right now he said. “Their taking a lease out has no bearing on our decision. At this point in time,” Jensen said, “we don’t see that they have any particular advantage for us. Bredero-Shaw is a very specialized coating process and currently we are not anticipating that process to be part of our pipe requirements. Bredero-Shaw took the lease out on the land in the Meadow Valley Industrial Park hoping to get the bid to do the pipe coating.

Lloyd said the engineers working with Lincoln County Power, are presently examining how much upgrade on transmission lines would be needed to increase from 69KV to 138KV from the Tortoise Substation at the Reid-Gardner power plant to the Antelope substation in Caliente. Upgrades on lines within the Caliente city limits will also be needed to supply power to the manufacturing plant. He said the engineers have been told to plan for about 10 megawatts, similar to the current power usage in Pioche, Caliente and Panaca. The Bredero-Shaw pipe coating plant has said it would need about 5 megawatts, which is approximately the usage in the entire Pahranagat Valley.

A new transformer at the Antelope Station to handle the 138KV line would cost SNWA about $1 million and delivery of the line usually comes about one year after being ordered, Lloyd said.

Jensen said SNWA questioned pipe manufacturers about Caliente as a location for a pipe manufacturing facility. “Most of them have been supportive, but some do have concerns about certain issues, he said. Concerns such as, is there enough labor and/or housing in the area to support their plant?” Jensen thought SNWA might make a final decision on the Caliente site by April.