Carlsbad, New Mexico

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In mid-September, Dr. Dorothee Muhl, Deputy Director General Manger of Germany’s Ministry of Economics and Technology, travelled to Carlsbad, N.M. to sign a MOU to facilitate the sharing of information about radioactive waste storage. The location was of high importance because of what is known as WIPP, the U.S. Department of Energy’s (DOE) underground repository for the disposal of nuclear waste.

Two weeks later, on September 28, the U.S. Department of Energy announced WIPP’s 10,000th shipment of transuranic waste, marking an “important milestone in the DOE’s mission to clean up the country’s Cold War legacy.”

This piqued our interest in this beautiful town in the southeast corner of New Mexico on the Chihuahuan Desert. Besides 360 days of sunshine a year, Carlsbad’s location is recognized for its ideal conditions for the safe disposal of nuclear waste which uses the areas natural salt formation to help seal in the waste. Located 26 miles outside of Carlsbad, WIPP, of Waste Isolation Pilot Plant, attracts international attention as an alternative to traditional waste storage facilities, which typically seal away the waste in above-ground vaults and pose a certain risk of leakage over the long term.

“Our naturally occurring salt has been excavated to provide a platform for the disposal for transuranic waste,” says city administrator Harry Burgess.

“At present, it is the associated waste with the development of nuclear weapons (such as plutonium) but the gloves, the wrenches, and equipment used in that industry has been in contact with elements that are above the atomic scale of uranium.”

In operation for 12 years, WIPP has is a model for underground radioactive waste disposal, and has an excellent safety record and allows for the cleanup of 21 of the 27 federal nuclear facilities.

Accordingly, the DOE is the major employer in Carlsbad. “The federal presence is very important,” says Burgess.

The WIPP is a source of great pride in Carlsbad. “The transuranic waste is trucked here and buried underground. At the depth of burial (2,150 feet below the surface), the salt turns to an impermeable plastic and seals itself up and in effect you build a hole and over time it collapses on itself through
natural forces and then seals the waste inside of the salt.”

Enviable economy

For a town of less than 30,000 people,

Carlsbad’s economy is enviably diverse.

The geography that cases the natural salt deposits also overlays a rich oil and gas producing formations of the Permian Basin and contains the largest potash production in the country.

Potash

“Yes, we are very familiar with resource-based economies,” says Burgess. Carlsbad’s potash industry has a 60-year history and is expanding every year.

Currently with two existing major participants—The Mosaic Company and Intrepid Potash Inc.—companies are applying daily to start up production in the area.

“Potash has been doing very well on the world price lately so that is a strong influence on our local economy,” says Burgess. “And, as the price rose on gas over $70 per barrel, it prompted domestic production. We have had a very large growth in that industry more recently with fracking technology. There is a big play on the southern end of the state, of which are the closest municipality. As I understand it, we are looking through 6,000 permits that have been filed, and expect to see significant action over the next 10 years based in that area.”

Oil and gas

Burgess says that between the oil and gas and potash industries, land has long been highly sought after “It has been somewhat a historic battle between potash and oil and gas interests. Because oil and gas can be located beneath potash reserves, we have two industries competing for some of the same lands.” he confirms.

Carlsbad has benefitted from the oil and gas industry for nearly a century and it is one of the major employment drivers in the area. The industry is a vital part of Carlsbad’s economic landscape, with over 200 firms supporting the local industry.

“The DOE is the largest employer in town, with over 1,500 employers,” says Burgess. “Potash employs 800 people. Oil and gas is harder to track because of so many independents that operate here and larger national corporations, but presently, our unemployment as of the end of August was 3.7 per cent, well below the national average by about two-thirds.”

The diversity of Carlsbad’s economy sheltered the town from the economic crisis of 2008, leaving the town with no layoffs during the recession nor a reduction in force through attrition. “We continued to provide services consistent with, or greater than, 2008,” says Burgess. “In fact, our largest revenue cheque for Gross Receipt Tax was written at the end of 2010 and our July and August cheques were the second and third largest in the history of the city—so we are seeing a very strong performance, better than ever.”

In order to capitalize on the attractiveness of Carlsbad, city council has set a goal to double the city’s population to 50,000 by 2040. Implemented in 2008, the $60 million infrastructure improvement plan allots for additional water and wastewater resources to accommodate potential growth.

The city has also engaged a firm to produce what is known as the Greater Carlsbad Comprehensive Plan, which “completed in 2003, identified a number of housing issues and established goals and objectives for providing quality residential environments. The Housing Analysis and Strategic Plan quantifies housing needs and sets out a strategic plan of achievable actions to improve housing in the Greater Carlsbad area.”

“The study has allowed us to seek developers to come into town,” says Burgess. “We also instituted a reimbursement program for these developers so we would repay them 10 per cent of their infrastructure cost should they develop here. Those two items have prompted two new developers; one has three subdivisions, the other has a 400-unit apartment complex under construction. That is really going to answer some of our concerns.”

With multiple economic drivers, increased housing, and a beautiful setting, Carlsbad is positioned to be an area for growth in the southwest for a long time to come.

Burgess concludes, “We are set up nicely for the future.”  

www.cityofcarlsbadnm.com