STORM LAKE, IOWA — The City of Storm Lake, Iowa, agreed to provide Tyson Foods Inc. water for the next 20 years.
The city has been supplying Tyson with water since 2002. With the terms of the previous agreement ending on Aug. 15, 2023, the city and the company entered negotiations to continue their partnership.
Under the new agreement, the City of Storm Lake will ensure a minimum of 2.5 million gallons of water per day to Tyson. Tyson has agreed not to consume more than 2.6 million gallons on any calendar day.
Initially, Tyson will pay $3.30 per 1,000 gallons of water consumed, but the city is permitted to change this rate, subject to limitations.
If Tyson uses less than 40 million gallons of water in a month, it will pay a fee between $172,000 and $3.4 million depending on which month the shortage occurs.
Alternatively, Tyson may opt to pay the city a monthly water charge at the current rate then in effect for each month consumption drops below 40 million gallons.
Part of the agreement stipulates that Tyson installs a back flow preventer on both the 10-inch and 6-inch water lines serving its facilities. They will be inspected annually to ensure compliance with American Water Works Association standards.
The city plans to build a water tower that will in part serve Tyson. The processor will not be responsible for planning, construction, operation, maintenance or liabilities of the new development.
Tyson opened a new $50 million feed mill a year ago to supplement its turkey operations in Storm Lake. More than 3,000 Tyson employees work at the Storm Lake facilities.