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Tethys Enterprises Terminates Water Contract with Anacortes

Skagit Valley Herald, Mount Vernon, Wash.

Posted: Thursday, October 3, 2013 6:15 am | Updated: 1:38 pm, Thu Oct 3, 2013.

By Mark Stayton

ANACORTES — Tethys Enterprises recently terminated its water contract with Anacortes, cutting the last ties to a long and controversial project to build a 1 million square-foot bottling plant there.

Tethys notified Anacortes that it would stop pursuing the proposed plant on Sept. 9, Anacortes Mayor Dean Maxwell said previously.

In a letter dated Oct. 1 to Maxwell, Tethys vice president and general counsel Philip Bastian said the firm was terminating its water service agreement with the city, effective immediately. Maxwell acknowledged the termination in a letter the next day to Tethys principal Steve Winter.

The contract, signed Oct. 1, 2010, had stipulated that the city would provide up to 5 million gallons of water per day to the plant through 2050, provided Tethys secured the rights to at least 30 acres of land within the Anacortes urban growth area that had access to rail lines.

Since then, the community has been divided on the proposal at public meetings — voicing concerns about the environment and water resources, as well as questions about the facility and governmental transparency against the need for industry and jobs in the region.

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Note from Defending Water

A letter of termination, dated Oct. 1, 2013, from Philip Bastian, Vice President/General Counsel, to Mayor Dean Maxwell included the following:

Tethys Enterprises, Inc. (Tethys) on Sept. 10, 2013 sent you an e-mail with an attached letter. In that correspondence, we advised that Tethys has ceased operations on the proposed facility in Anacortes and the decision is effective immediately. At this time, Tethys is terminating the Water Service Agreement between the City of Anacortes and Tethys Enterprises, Inc., dated Oct. 1, 2010, and the First Amendment dated Sept. 26, 2011.

Mayor Maxwell’s response to Tethys on Oct. 2, 2013, included the following:

The City of Anacortes acknowledges your correspondence, received by the City on Oct. 1, 2013, in which you are terminating the Water Service Agreement between the City of Anacortes and Tethys Enterprises, Inc., dated Oct. 1, 2010, and the First Amendment dated Sept. 26, 2011.

The City therefore considers the Oct. 1, 2010, agreement regarding Water Service and the First Amendment dated Sept. 16, 2011, to be officially terminated and of no further force and effect.

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