On October 14, 2022 The City received official notice to proceed with appropriations up to $8,000,000 in a Funding Agreement between the New Mexico Interstate Stream Commission (ISC) and the City of Gallup for the completion of two (2) groundwater production wells for the City to help bridge its water supply pending the completion of the NGWSP.
Under Formal Bid 2304: The City of Gallup will design and drill two (2) wells under Office of the State Engineer G-80 permits within the City's Yah-Ta-Hey well field near existing water wells. The existing wells are completed in the Gallup Sandstone aquifer and the new wells will be completed in the Dakota/Westwater formation which is much deeper. The impermeable Mancos Shale formation separates the Gallup Sandstone from the Dakota/Westwater. The sites have electrical power and water lines already in place and there is no need for utility extension to the wells. The proposed wells will be drilled to a depth of approximately 3,500 feet.
This project is located within the SW 1/4 of Section 17, T16N, R18W N.M.P.M. and SE 1/4 of Section 19, T16N, R18W N.M.P.M. McKinley County, New Mexico. The scope to be done under this Agreement includes, but may not be limited to: Engineering, design, and bidding assistance; Drilling, casing, and equipping two groundwater wells; Interconnecting the wells to the City's existing water supply system; Construction oversight, surveying, reporting; work to be performed under this project: the furnishing of all labor, material, transportation, tools, supplies, plant, equipment, fuel, maintenance, and appurtenances necessary to complete the specified work. The work consists of drilling, geophysical logging, installation of casing and pressure cementing, installation of blank casing and well screen, alignment surveys, well disinfection, development, and testing of two groundwater supply wells for the City of Gallup.
Formal Bid 2304 resulted in three (3) bid submittals;
Stewart Brothers Drilling Company of Milan, NM was the lowest bidder in the amount of $6,114,487.03 including New Mexico Gross Receipts Tax. However, after further discussions between Stewart Brothers and DePauli Engineering & Surveying LLC, Project Engineer, it was discovered there were costly omissions and important items left out of the bid proposal that would have left the company at a financial disadvantage. Stewart Brothers Drilling Company has formally requested to withdraw their bid for this project, in which the City has accepted.
United Drilling, Inc of Albuquerque, New Mexico was the next lowest bidder in the amount of $7,732,775.06 including New Mexico Gross Receipts Tax.
Funding for these two wells is from the Funding Agreement between the New Mexico Interstate Stream Commission (ISC) and the City of Gallup for Water Wells Construction reimbursement in the not to exceed amount of $8,000,000 and to be expended by the City as of June 30, 2025. Additional funding matches are the Water Smart Grant in the amount of $2,000,000 and Water Trust Board Fund #5424 in the amount of $3,576,408 (Grant - $2,145,845 / Loan - 1,430,563)