Good afternoon to everyone in DCNR.  I’m sorry the Director’s Report is late this month.  Last week there were three interim legislative committee hearings (Energy, TRPA Oversight and Public Lands.)  It was almost like the legislature was in session!  Please excuse the delay.

State budget update

Let me begin, as it seems I always do, with the fiscal situation.

Nevada’s economy is still showing signs of weakness.  While there have been indications of an economic recovery in some areas of the country it has yet to materialize in Nevada.  Economic projections suggest this will continue well into 2010 and maybe 2011.  The latest statewide gaming numbers show the 21st month of decline at almost 9%.

In October there was speculation on the part of some legislators that a special session would not be needed this year as a result of some fiscal manipulations of the budget and the use of certain credit lines.  More recently there has been renewed talk of the need to call the legislature back into session and address the ongoing budget shortfall.

What does this mean to us, state employees?  That answer is unknown at this time.  Legislators and others have speculated about the political wisdom of raising taxes prior to an election.  Some of these same individuals have speculated on the need for additional furloughs, across the board salary reductions and/or operational cuts.  Keep in mind at this point that is all this is speculation.  It is not clear if or when the Governor will call for a special session or what the agenda may be (only he can call for a special session and he sets the agenda.)  Similarly, we don’t know how the lawmakers will respond.

As I have repeated many times before it is difficult, if not impossible, to predict the outcome of the legislative process.  The best we can do for now is monitor the situation and plan and strategize to the extent we can based upon the facts that we know.  As the economic situation plays itself out I will keep you informed and what it may mean to DCNR.

Kay Scherer is recovering from surgery

Deputy Director Kay Scherer had surgery earlier this month and is home and resting comfortably.  She should return to work after Thanksgiving.  I know you will join me in wishing Kay a speedy and complete recovery.

Snake Valley negotiations

In 1989 the Las Vegas Valley Water District filed a number of applications for unappropriated water in Spring, Dry, Delamar, Cave and Snake Valleys in eastern Nevada.  The intention is to export ground water to Las Vegas to augment the existing supply from the Colorado River.  This has been one of the most controversial water resource issues in the history of our state.

In 2004 Congress mandated a water allocation agreement be in place between Nevada and Utah for any shared water resource prior to exportation.  At present this includes the Snake Valley.

For the last four years DCNR has taken the lead in negotiating an agreement with Utah.  In August the details of the agreement were released to the public in a series of public meetings in Baker and Las Vegas, Nevada and Delta and Salt Lake City, Utah.  A 30 day comment period was also initiated to give the public the opportunity to weigh in.

Almost 250 comments were received and the negotiating teams from both states are responding to those concerns and modifying the agreement as necessary.

This has been a fascinating process from technical, resource and political perspectives.  It was made even more interesting when the Governor of Utah was named Ambassador to China, and the Lt. Governor took over as Governor.

The response to comments and a modified agreement should be out later this month.  Stay tuned for the next chapter.

NDEP settles with Queenstake

The Nevada Division of Environmental Protection (NDEP) announced in October the completion of an agreement with Yukon-Nevada Gold Corp. Queenstake Resources USA Ltd. (Queenstake) that addresses environmental compliance at the Jerritt Canyon Mine. The consent decree, signed by NDEP and Yukon-Nevada Gold, was submitted to the Elko County District Court Oct. 12.

The consent decree requires Queenstake to correct all environmental non-compliance issues and make extensive environmental improvements. It also requires provisions for stipulated penalties should the company not meet deadlines included in the decree. Queenstake has also agreed to pay a $550,000 settlement. More information is available here.

I want to applaud DEP and their hard work in making this agreement a reality.  It is a win-win situation for the environment as well as the economy in northeastern Nevada.

State Parks float cleans up at the Nevada Day Parade

The Division of State Parks once again came out the big winner at the Nevada Day Parade in Carson City.  Huge congratulations to everyone involved, especially to Jay (Honest Abe) Howard.  See photos of the float here:  http://www.flickr.com/photos/nevadadcnr/sets/72157622736024564/show/

Stimulus funds update

The Department has received federal stimulus funds through the American Reinvestment and Recovery Act (ARRA) in two divisions; Forestry and Environmental Protection.  These two agencies have been very proactive in receiving the money and getting it out to the communities to create and retain jobs.  I am very proud of the efforts of these two agencies and they have been recognized both statewide and nationally as examples of how ARRA funds should be managed.  The best place to get more information on ARRA funds in Nevada (and specifically those of DCNR) is the state ARRA website at:  http://www.nv.gov/recovery/

State Lands accepting applications for grants to support the Mt. Charleston area

The Nevada Division of State Lands has announced the second round of grants from the Mt. Charleston License Plate Program with $125,000 in funds available. Applications for suitable projects are being accepted now through January 29, 2010. Application information can be obtained by going to the Division’s website at www.lands.nv.gov.

State Parks offering cash prize for poster contest

The Nevada Division of State Parks is celebrating its 75th anniversary throughout 2010.

Nevada’s state park system was authorized by the 1935 legislature on the same day that the first four state parks were officially established, on March 26. These included Valley of Fire, Cathedral Gorge, Kershaw-Ryan and Beaver Dam State Parks.

As part of the celebration, State Parks is sponsoring a poster contest for school-aged children. A $100 cash prize is being offered for each first place winner in three age groups: elementary school grades K-5, middle school grades 6-8, and high school grades 9-12. Second and third prizes will also be offered for each grade category. More information is here.

Water allocation and alternative energy hot topics at Conservation District meeting

Allocation of water and alternative energy sources were just two of the topics on the agenda at this month’s annual meeting of Nevada’s Conservation Districts.

The meeting, held Nov. 3-4 at the Fallon Convention Center, included Assemblyman Pete Goicoechea, Jason King from the State Engineer’s Office and Steve Bradhurst from the Central Nevada Regional Water Authority speaking on ground water allocation. Other topics include endangered species and the Great Basin Lands Initiative. Awards were presented for excellence in rangeland management and distinguished service.

Have a great November and Thanksgiving holiday.

Allen

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