IC Potash Corp. said June 12 that it received a formal purchase offer from H20 of Lea County for the Capitan Reef complex aquifer water rights.
H20's offer has the potential for US$4 million to US$6 million in annual revenue.
H20 will commit to building the required infrastructure, as well as providing the equipment costing about US$2 million.
Meanwhile, the ongoing operations and related monthly cost of electricity, labor, maintenance and process chemicals will be carried out by H20.
The proposal was submitted to the board and is valid until July 10.