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Labyrinth Canyon may gain new roads — for exploratory potash drilling

Environmental advocates worry the proposal could harm the same landscapes a recent BLM plan sought to protect.

(Douglas B. Yager | USGS) Moab-based Intrepid Potash uses solar evaporation ponds to mine for potash. American Potash Corporation says they do not plan to use this method and will instead use new “closed-loop” technology that does not consume as much water.

A recent controversial Bureau of Land Management travel management plan closed over 300 miles of motorized routes near Moab with the intention of protecting riparian areas, wildlife habitats and cultural sites.

But despite these efforts to preserve the unique landscape between the Green and Colorado rivers, a potash drilling proposal could result in new road construction and according to environmental advocates, harm the very landscapes the travel plan sought to protect.

Canada-based American Potash Corporation has proposed drilling four holes on BLM land to explore potential potash and lithium deposits. The company also has claim to four drilling sites on nearby Utah Trust Lands Administration, formerly the Schools and Institutional Trust Lands Administration (SITLA).

Southern Utah Wilderness Alliance Staff Attorney Landon Newell called the proposal “counterproductive.” He said the proposal is “unfortunate, because … just three months ago the BLM took some really important steps to protect this same region.”

The holes will be drilled to depths of 8,000 to 9,000 feet — over a mile and a half below the surface.

The environmental assessment for the four holes on federal land proposes two miles of road construction and upgrades, six new road turnouts and 13 acres of drill pad construction. It estimates that the drilling and coring of each hole will require 2.9 to 3.8 million gallons of water.

The holes fall between Spring Canyon and Ten Mile Wash, adjacent to the Green River and within the area of the BLM’s Labyrinth Rims/Gemini Bridges Travel Management Plan, which closed 28% of motorized routes in the area and has drawn scrutiny from motorized recreation advocacy groups like the BlueRibbon Coalition, who view the closures as “excessive” and “completely unnecessary.” The group, along with other plaintiffs, has commenced a legal battle to fight the closures.

Potash is primarily used for fertilizer, and lithium is an essential element of electric vehicles and mobile devices.

The public comment period of the environmental assessment process concluded Dec. 18, and the project now awaits full approval from the BLM to move forward.

The proposal

Jonathan George, the CEO of American Potash, said that each of the company’s four holes on federal land have undergone “rigorous” review by the BLM.

He said the company plans to begin by drilling two or three exploratory holes, from which they will be able to ascertain if there is an “inferred resource” present — potash or lithium at a high enough quantity and grade for profitable mining.

He said he has reason to believe that there is. He said he is aware of 31 nearby historic holes with a “decent grade” of potash not far from the proposed sites and Australia-based Anson Resources holds mining claims for lithium in several nearby locations.

The holes are designed to test for both potash and lithium at the same time.

Each hole takes 35 to 40 days to drill and about the same amount of time to sample, he said. Studies to determine whether mining is economically viable may take two years and permitting will take several more years. He estimated that it could be eight years before the company is ready to produce potash or lithium.

Environmental concerns

The proposal has attracted the attention of environmental advocates, who are perhaps most troubled by the large amounts of water required to drill for and extract potash.

Beyond the millions of gallons of water used for exploratory drilling, potash is usually mined using surface evaporation ponds. The method uses water or brine to dissolve minerals deep in the earth, which is then pumped to surface-level ponds. When the ponds’ water evaporates, potash is left behind.

“The reason why I fight this is there isn’t enough water for this,” said John Weisheit of Living Rivers and Colorado Riverkeeper.

George said that American Potash, however, plans to employ new “closed-loop” vaporization technology that removes the evaporation stage from production and returns water and brine to the ground.

“That’s the key for the future,” said George. A presentation on the company’s website states that the technology will reduce water-use by 90% compared to evaporation pool processing.

He said the patent for the technology has been purchased from Utah State University, by the company Avara Purestream, but it has not yet been tested for large-scale potash extraction. “We wouldn’t mind being the guinea pig at all,” he said.

“…Not only is it a massive benefit to the environment, [but the] speed to get the potash to market is really fast … you don’t need much water any more to do this properly,” said George.

Newell is skeptical. He noted that the BLM’s environmental assessment compares the project to Moab-based Intrepid Potash, a company that uses evaporation ponds. It notes that the company uses 350 million gallons of water from the Colorado River each year.

“Either the BLM is not understanding what the company is proposing or the company is [being] misleading,” he said.

George said the company plans to use municipal water supplies for the exploratory drilling phase of the project.

Weisheit said he is opposed to the company using water from local aquifers. “[They’re] taking our groundwater, which we already know is in short supply,” he said.

Newell noted that use of municipal water supplies effects the Colorado River Basin’s water resources, which are stressed by extended drought and overuse.

“This is not a minor issue … when the Southwest … is stuck in a decades long drought due to the climate crisis,” he said.

He said the BLM’s environmental assessment has “fallen short” by failing to consider the proposal’s cumulative impacts to water and wildlife, a requirement under the National Environmental Policy Act.

He said that while impacts to wildlife, including bighorn sheep, were considered in-depth in the recent travel management plan, the assessment fails to analyze the impact of new drilling sites on wildlife.

The assessment acknowledges that bighorn sheep may be present in the area. It also notes potential impacts to kit fox, bat, prairie dog, nesting birds and raptors but does not analyze the impact of mining development on them.

Effect on agriculture

American Potash was formed in 2006 with the aim of shoring up the United States’ domestic potash supply. “We believe the long-term benefits of potash are immense for farmers in the Midwest,” George said. He said that currently the potash industry is a “bit of a bottleneck,” which results in higher prices for American farmers.

The United States accounts for just 1% of global potash production, according to a 2023 report from the U.S. Geological Survey. Canada leads the world in potash production, followed by China, Russia and Belarus.

The price of potash rose significantly in 2022 due to economic sanctions on Belarus and Russia, which account for over 40% of worldwide potash production.

American Potash was granted permits for exploratory drilling for potash in the same area in 2012, but let their permits lapse due to a lack of funding. “The potash market was extremely soft,” said George.

Since then, the company has shifted its focus to include lithium. However, he said that while most other companies are focused on lithium, the company is invested in the long-term benefits of potash for farming in the United States.

Newell said he can’t argue with the fact that potash is an important mineral for domestic agriculture. However, “some areas are simply too special to develop,” he said. “We’re talking about the Labyrinth Canyon region. This is one of the crown jewels of Utah public lands.”