Wyoming landowner rejects reservoir deal; $80 million project considers eminent domain for final land

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. 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. According to the Basin Republican-Rustler, Hughes said the 2022 offer was the only one he had ever received.The dispute has turned a local water project into a broader test of property rights, public infrastructure, and the limits of eminent 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.What the reservoir would doThe proposed Alkali Creek Dam and Reservoir would impound 8,000 acre-feet of water from Medicine Lodge and Paint Rock creeks. Its primary purpose is to provide late-season irrigation for 35 irrigating families in the region.The project has been under discussion for about 15 years. It has also become increasingly expensive,...