Sitka bulk water company looks to extend contract

SITKA — A company looking to export water in bulk from Alaska to dryer climates is looking to extend its contract with Sitka for the borough’s water rights.

The Gary Paxton Industrial Park will consider a three-year extension of its current agreement with Alaska Bulk Water Inc. at the board’s meeting Thursday, the Daily Sitka Sentinel reported. The company’s existing three-year agreement is set to expire in December.

Alaska Bulk Water paid $1 million in 2012 to secure the rights to the water. Under the agreement, the company was required to ship 50 million gallons by December of this year to retain the exclusive rights. The company has installed some infrastructure for loading water, but has yet to send a shipment out of the park.

If approved, the new deal would again be for $1 million and provide Alaska Bulk Water with another three years to move the 50 million gallons of water. It would also award the company a slightly smaller volume of water to make more available for several other bottling companies.

The $1 million counts as credit toward future exports. Money from the sales will go into a bulk water fund, which City Administrator Mark Gorman said is used to support other bulk water interests in the park.

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