In 2022, Wyoming landowner Paul Hughes rejected a proposal offering $3,600 per acre for an easement connected to the proposed Alkali Creek Reservoir near Hyattville.
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Hughes → reject → Hyattville
Four years later, the Nowood Watershed Improvement District, which is developing the roughly $80 million project, is considering eminent domain to secure the remaining land rights it needs.
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it → develop → rights
According to the Basin Republican-Rustler, Hughes said the 2022 offer was the only one he had ever received.
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he → accord → Rustler
The dispute has turned a local water project into a broader test of property rights, public infrastructure, and the limits of eminent domain.
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dispute → turn → domain
The reservoir is intended to store water for late-season irrigation, but landowners who have not signed easement agreements say the project would benefit downstream users while placing burdens on those whose land lies above the reservoir site.
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land → intend → site
What the reservoir would do
The proposed Alkali Creek Dam and Reservoir would impound 8,000 acre-feet of water from Medicine Lodge and Paint Rock creeks.
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Dam → propose → creeks
Its primary purpose is to provide late-season irrigation for 35 irrigating families in the region.
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purpose → provide → region
It has also become increasingly expensive, with cost estimates rising from an initial $20 million to as much as $113 million, while legislators have appropriated $59 million so far, as per the report.
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legislators → become → report
The Wyoming Water Development Office and Commission have spent about $8 million on the project, but construction has not begun.
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construction → spend → project
The main obstacle is the lack of completed easements from a small number of neighbouring landowners.
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obstacle → complete → landowners
The easements still needed
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easements → need → ?
Only 13 acres of permanent easements and 34 acres of temporary easements remain outstanding, according to state Senator Dan Laursen.
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acres → remain → Laursen
Those relatively small areas have nonetheless stalled a project that has been planned for years.
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that → stall → years
Easements do not necessarily transfer ownership of the land.
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Easements → transfer → land
They can give a project developer the right to build, operate, maintain, or access infrastructure across a property, often in exchange for payment or other negotiated terms.
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They → give → payment
For the Alkali Creek project, the easements would include a permanent right of way to operate the Anita Ditch as a pipeline feeding the reservoir.
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easements → include → reservoir
They would also include temporary construction easements needed during building work.
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They → include → work
Hughes rejected the 2022 offer
Paul Hughes rejected the $3,600-per-acre easement proposal in 2022.
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Hughes → reject → 2022
According to the Basin Republican-Rustler, he said it was the only proposal he had received for the project.
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he → accord → project
His rejection matters because the reservoir project cannot move forward without the necessary land rights.
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project → matter → rights
The fact that a small number of landowners have declined to sign has left the Nowood Watershed Improvement District with a limited number of options.
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number → decline → options
The dispute has also raised questions about whether the initial offer reflected the value landowners place on their property, access, privacy, and future control.
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landowners → raise → property
For rural landowners, an easement can affect more than a single acre because construction, maintenance, and access may alter how land is used over time.
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land → affect → time
Eminent domain enters the discussion
The Nowood Watershed Improvement District has told at least two ranch owners that it expects to begin eminent domain proceedings if they decline a final easement offer.
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they → enter → offer
The letters gave recipients 15 days to respond and proposed easements across seven acres for a total of $19,255, subject to an updated appraisal.
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letters → give → appraisal
Eminent domain, also called condemnation, allows a government or authorised public entity to acquire private property rights for public use, generally with compensation.
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government → call → compensation
It remains one of the most controversial tools in infrastructure development because it can override a landowner’s refusal to sell.
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it → remain → refusal
Wyoming Water Development Office Director Jason Mead described condemnation as the “nuclear option”, as per the report.
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Mead → describe → report
That language reflects how politically sensitive the issue has become, even among supporters of the reservoir.
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issue → reflect → reservoir
A project with growing costs
The Alkali Creek project has drawn criticism because its cost has increased sharply over time.
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cost → grow → time
Legislators have appropriated $59 million, while estimates have ranged from $20 million to as much as $113 million.
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estimates → appropriate → million
The Wyoming Water Development Commission has spent roughly $8 million on the project without construction beginning.
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construction → spend → project
The Nowood Watershed Improvement District has also spent $1.6 million in state funds on property and easements at the Mercer ranch, where the dam and reservoir would be located.
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dam → spend → ranch
The state legislature set a July 1, 2027, deadline for securing the easements.
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legislature → set → easements
Lawmakers who opposed the project wanted a stricter deadline and attempted to prohibit the use of eminent domain for the project, but those efforts failed, as per reports.
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efforts → oppose → reports
Why landowners are pushing back
Some landowners say the reservoir’s location creates an unfair distribution of benefits and burdens.
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location → push → benefits
Those who have not signed easement agreements are located above the reservoir site and would not be able to use the water it stores.
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it → sign → water
Landowner representative Shirran summarised the concern by saying, as per the report, “You can’t put water back upstream.”
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You → summarise → water
The comment captures the central objection: landowners above the dam may lose land rights or face construction impacts without receiving the irrigation benefits that downstream users would gain.
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users → capture → that
It is also about whether a project designed to serve a specific group of irrigators should be allowed to use eminent domain against neighbours who do not directly benefit from it.
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who → design → it
…and 6 more, not listed.