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Cowboy State Daily is Wyoming’s largest newspaper with Wyoming’s most experienced journalists. 

<title>You Still Here? Friday, October 28, 2022 | Cowboy State Daily</title>

That's the last time I take care of your cats, Bob!!

You Still Here? Friday, October 28, 2022

Headshot of Cowboy State Daily's general assignment reporter, Clair McFarland.

Clair McFarland

Government & Politics

A federal judge declined Thursday to make Wyoming and Nebraska irrigation districts open a competitive bid for the sake of a drilling company that missed out on the chance to bid a $100 million job on the Goshen County tunnel project.

But the judge also ruled that Drill Tech Drilling & Shoring Inc. 

, at this phase, in claiming that the Wyoming-based Goshen County Irrigation and Nebraska-based Gering-Fort Laramie Irrigation Districts violated their states’ public-records laws by not giving information the company had requested.

[{"type":"text","marks":[{"type":"bold"}],"text":"Lock In"}]

Drill Tech Drilling & Shoring Inc. filed a federal lawsuit against both districts in May.

The lawsuit asked U.S. District Court Judge Scott Skavdahl, of Wyoming, to intervene in what Drill Tech called an unlawful bidding process that cut it out of the opportunity to win a job on the massive tunnel repair.

One of the two 119-year-old tunnels suffered a catastrophic failure in 2019. The other is reportedly in dire need of a rebuild.

The districts assigned Atkinson Construction LLC as construction manager at-risk (CMAR) over the project, which means Atkinson can oversee and work with subcontractors, court documents say.

Drill Tech alleged that for the $100 million drill project it had sought to perform, the irrigation districts should have held — and didn’t hold — a competitive bidding process. The districts gave the job instead to their CMAR, Atkinson, court documents say.

[{"type":"text","text":"In his Thursday order, Skavdahl countered. "}]

He said the laws of both Wyoming and Nebraska appear to support the CMAR’s authority to self-perform this kind of work. Drill Tech has not shown substantially that it has a right to enter a competitive bidding process for this project, he added.

Skavdahl wrote that requiring the districts to pause or backtrack their work and hold that bidding process could harm the agricultural community by stalling the long-awaited repairs even longer — and he declined to do that.

The public has an interest in government entities abiding by the open bidding process, wrote Skavdahl.

“On the other hand, the Irrigation Districts are right that ensuring irrigation water to the thousands of acres of farmland served by the tunnels is also in the public interest,” he added. “In light of Drill Tech’s failures (to show it deserves court intervention) as well as the serious risks to the farmers and public from another tunnel collapse following any delay in this construction project, the preliminary injunction requested by Drill Tech is more contrary to the public interest than in support of it.”

Drill Tech had waited several months to sue, though it had reportedly learned it had been cut out of the job last summer, Skavdahl noted.

He declined to let that delay kill the case altogether, but he factored the delay into his decision not to order the open bid.

The judge’s order doesn’t end the case. It just denies Drill Tech’s request to have Skavdahl intervene in this early phase.

Skavdahl gave his early conjectures that Drill Tech isn’t likely to win on the bidding question, only for the purposes of declining to compel the districts to change course immediately.

[{"type":"text","marks":[{"type":"bold"}],"text":"Might Win That One"}]

Drill Tech had also accused both irrigation districts of violating their states’ open meeting laws and assigning the job in secret.

[{"type":"text","text":"Skavdahl said the company looks unlikely to win that challenge as well."}]

But, the judge wrote, Drill tech appears likely to win two of its claims: that the Wyoming irrigation district and the Nebraska one both violated their states’ public-records laws by not giving Drill Tech information it had requested.

[{"type":"text","marks":[{"type":"bold"}],"text":"Background"}]

The complaint says the two districts contracted Atkinson to be the construction manager at risk and provide oversight for the Fort Laramie Canal Tunnel 1 and 2 rehabilitation project.

That project is expected to benefit more than 100,000 acres of farmland across eastern Wyoming and western Nebraska.

 that the U.S. Department of Interior has chosen to use $100 million of its $889 million One Big Beautiful Bill appropriation on the tunnel project.

The tunnel collapsed July 17, 2019, cutting off irrigation water to the region and flooding fields. The infrastructure was more than a century old.

Temporary repairs restored most of the system’s capacity in time for the 2021 season, but it still needs long-term solutions. Repairs to Tunnel 2 also are in the works so that it doesn’t suffer the same catastrophic failure.

During the bidding process, Drill Tech’s complaint alleges, the two irrigation districts confirmed Atkinson would have to comply with Wyoming and Nebraska laws, and that it may be able to self-perform the construction work in the project, but would competitively bid that work.

But 18 months after Atkinson became the project manager, the districts “fundamentally changed the (manager’s) agreement to allow Atkinson to self-perform all the construction work for the Project under the guise of a contract amendment,” the complaint alleges.

This transformed the contract into a standard prime contract for the massive project “with no competition for the construction work,” says Drill Tech’s complaint. 

The project manager no longer had to open competition to the public bidding process, it adds.

Drill Tech Drilling and other interested parties were cut out of the process, the complaint says.

[{"type":"text","marks":[{"type":"bold"}],"text":"Asking For Documents"}]

Drill Tech didn’t ask to become the project manager because it wanted to work on the tunnel rehabilitation work packages instead, the complaint says, adding that Drill Tech has experience with the method that project requires.

On July 25, 2025, Drill Tech sent a letter to the two districts, the U.S. Bureau of Reclamation and one of the project designers, HDR Inc., to raise concerns that Atkinson was no longer required to bid projects competitively and in public.

Drill Tech noted in that letter that it had been monitoring the project for two years, waiting for the bid advertisement.

Nearly a month later, the Goshen County Irrigation District’s attorney acknowledged the district had received the letter and thanked Drill Tech for its “continued interest in the Project,” court documents say.

That December, Drill Tech submitted public-records requests to both districts under the public-records laws of each state, the complaint says, asking for all post-award modifications and amendments regarding the project manager’s agreement, and for a copy of the procurement plan.

The Nebraska-based district never responded to that request, the complaint says. The Wyoming-based district reportedly responded two months later, Feb. 10, 2026.

Goshen District’s public records yield was “heavily redacted,” says Drill Tech’s complaint. The district claimed those redactions were justified as trade secrets, privileged information, confidential commercial, financial, geographical or geophysical data.

The complaint disputes that. It shows a side-by-side comparison of the same page of the scope of the project manager’s services.

The page that was publicly released in the request for proposal, and the page Drill Tech received in its public records request, are vastly different, with the latter about 75% or more redacted.

“Reactions such as these were pervasive” throughout the agreement, the complaint says.

[{"type":"text","marks":[{"type":"bold"}],"text":"Transparency"}]

Copies of the changes to that agreement also had “pervasive redactions,” it adds.

Still, says the document, Drill Tech learned that the agreement was amended before Drill Tech’s July 25, 2025, letter requesting information about whether public bids were still required.

The complaint says the district knew the agreement had already been changed to edge out competitive bidding, but didn’t tell Drill Tech that when the company asked.

The complaint also says the district didn’t provide notice of an important public meeting.

By Feb. 20, 2025, the Goshen district board voiced concerns about HDR’s original maximum price estimate of $87 million swelling to more than $120 million, the complaint relates from the meeting minutes.

HDR proposed a confidential guaranteed maximum price proposal and non-disclosure agreements so there would be “no worry about (Atkinson) getting underbid,” the document alleges.

There was, the complaint says, no documented vote for Atkinson to self-perform the task they were discussing without publicly bidding the work packages, but the district did vote to approve changing the design plan.

It’s “entirely” unclear what role the Nebraska-based district played here because it didn’t respond to Drill Tech’s public records requests, the complaint alleges.

The document says that on July 8, 2025, the Goshen district and Atkinson signed an amendment to change the agreement, so that the latter was no longer required to advertise bids or publicly open them.

In the July 17, 2025, meeting minutes, “Atkinson was already apparently working with a vendor for the digger shield, but there was no indication that Atkinson has publicly bid or competitively awarded the subcontract for the digger shield.”

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<title>Judge Says $100M Goshen Tunnel Project Won’t Stop For Company That Couldn't Bid | Cowboy State Daily</title>

A federal judge declined Thursday to pause the $100 million Goshen Tunnel project for a company that missed out on a chance to bid on the work. He also ruled the company has a valid case against two irrigation districts in charge of the tunnel.

Judge Says $100M Goshen Tunnel Project Won’t Stop For Company That Couldn't Bid

Kolby fedore

Kolby Fedore

Crime & Courts

Courts

A Florida woman who owned a behavioral health clinic in Cheyenne has been ordered to pay back more than $870,000 to Wyoming Medicaid for bilking the federal agency with fraudulent claims.

Federal prosecutors say her daughter helped carry out the scheme by assisting with billing and falsifying service documentation while working for the clinic.

Tera Marie Campbell, 47, of Maitland, Florida, owned The Olive Branch LLC, a behavioral health clinic that provided autism services in Cheyenne and Minot, North Dakota, the U.S. Attorney’s Office for the District of Wyoming said Thursday in a statement announcing the women’s sentences for conspiracy to commit health care fraud.

Campbell used the business to submit fraudulent Medicaid claims over several years, including claims for services provided by employees who lacked required certifications, claims that were upcoded to higher-paying services and bills for appointments that never occurred, according to the U.S. Attorney’s Office.

Investigators said some of those claims were submitted for dates when the clinic was closed and even while Campbell was out of the country on vacation.

Campbell's daughter, Tayler Ann Krauss, 27, of McDavid, Florida, worked as the clinic's medical biller between December 2020 and October 2022. She was instrumental in providing service documentation used to support fraudulent claims.

The investigation concluded the clinic relied extensively on untrained employees, falsified certification and supervision records, and knowingly billed Wyoming Medicaid for services that did not meet Medicaid requirements, according to prosecutors.

[{"type":"text","marks":[{"type":"bold"}],"text":"Joint Investigation"}]

The case was investigated by the Wyoming Attorney General's Office Medicaid Fraud Control Unit, the Federal Bureau of Investigation and the U.S. Department of Defense's Defense Criminal Investigative Service.

U.S. Attorney Darin Smith said in a statement that Medicaid fraud "steals taxpayer dollars from programs that millions of Americans depend on and undermines care for vulnerable patients.

"I am committed to holding accountable those who exploit these programs for personal gain."

Smith said his office will continue working with federal and state partners to investigate and prosecute health care fraud, saying the effort is aimed at protecting public resources and preserving confidence in the healthcare system.

Wyoming Attorney General Keith Kautz added in the statement that the prosecution and conviction of Campbell and Krauss demonstrates the value of cooperation between state and federal law enforcement agencies and praised the work of his office's Medicaid Fraud Control Unit.

Smith nor Kautz responded to Cowboy State Daily's request for an interview beyond the prepared statements released by the U.S. Department of Justice on Thursday. 

[{"type":"text","marks":[{"type":"bold"}],"text":"Sentence Handed Down"}]

U.S. District Judge Kelly H. Rankin sentenced Krauss on Monday and Campbell on Tuesday in federal court in Cheyenne.

Campbell and Krauss were indicted May 21, 2025, and both pleaded guilty April 9 to conspiracy to commit health care fraud.

Campbell was sentenced to 36 months in federal prison followed by three years of supervised release. Krauss was sentenced to two years of home confinement.

The judge ordered the women to jointly pay $735,717.63 in restitution to Wyoming Medicaid. Campbell was also ordered to repay $135,890.91 to the military's Tricare health care program.

The court ruled Krauss is jointly responsible for up to $71,509.44 of that amount.

Campbell was separately sentenced in January in a related North Dakota Medicaid fraud case.

In that case, she received a three-year suspended sentence, three years of supervised release and was ordered to repay an additional $225,000 to North Dakota's Medicaid program.

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<title>Florida Woman, Daughter Ordered To Pay Back $870K They Stole From Wyoming Medicaid | Cowboy State Daily</title>

A Florida woman who ran a Cheyenne behavioral health clinic, and her daughter, have been ordered to pay back more than $870,000 they stole from Wyoming Medicaid. They funneled fraudulent claims through the clinic for years, say federal prosecutors.

Florida Woman, Daughter Ordered To Pay Back $870K They Stole From Wyoming Medicaid

Politics

 the Wyoming Board of Equalization last month for its refusal to implement the state’s property tax increase caps, the board sued back Monday.

The board is asking Laramie County District Court Judge Nathaniel Hibben to declare that a state law capping residential property tax increases at 4% annually is unconstitutional, and to block its enforcement. 

This cap violates the Wyoming Constitution’s requirement that property taxes be assessed at their full value and uniformly within property classes, the board alleges in its 

Monday filing, through Davis and Cannon attorneys Amanda Esch and Cat Young. 

Gov. Mark Gordon, on behalf of the state, scored a minor win in this fight June 19, when Hibben ordered the Board of Equalization to proceed with its summertime property tax certification processes in a way that obeys the cap laws. 

These laws passed in 2024. Two members of the state Board of Equalization, Chair E. Jayne Mockler and Vice-Chair Martin Hardsocg, were gearing up to challenge the laws earlier this year, but the governor scuttled the effort, says a report the board issued last month. 

In that same report, Mockler and Hardsocg indicated they could not certify counties’ property tax assessments with the cap in place due to their constitutional concerns. 

Gordon’s office challenged the board’s refusal via the Wyoming Attorney General’s office, in a June 16 filing in Hibben’s court. 

Though Hibben indicated the state looks favored to win this constitutional battle, he’s set another hearing for July 6 to contemplate the issue – and whether he’ll keep ordering the board to honor the cap – in more detail. 

If the board loses at that hearing as well, it’ll be ordered to honor the cap as long as this case is ongoing, or unless the Wyoming Supreme Court contradicts Hibben on appeal. 

If the board wins at that hearing, then Hibben will let it disregard the cap, and the county assessors may have to rework their residential property tax assessments without it. 

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<title>Wyoming Board Of Equalization Asks Judge To End Property Tax Cap  | Cowboy State Daily</title>

The Wyoming Board of Equalization is suing Gov. Mark Gordon back after he rejected its claims that the state's property tax caps are unconstitutional. The board is asking a judge to end Wyoming’s 4% cap on property tax increases. 

Wyoming Board Of Equalization Asks Judge To End Property Tax Cap 

Heinz mark

Mark Heinz

Around Wyoming

Lake Powell, a key reservoir on the Colorado River, is shrinking toward "dead pool," which means water won't flow downriver anymore — and that could in turn pinch Wyoming’s municipal and industrial water supplies with more demand from Flaming Gorge Reservoir.

Lake Powell, on the Utah-Arizona state line, is in dire condition, 

By next spring, it’s expected to fall into “minimum power pool,” meaning having barely just enough water to generate hydroelectric power at Glen Canyon Dam.

If it falls even farther, that could put the reservoir at “dead pool,” or unable to generate hydroelectric power, according to reports.

That's despite roughly 1 million acre-feet expected to be 

[{"type":"text","marks":[{"type":"textStyle"},{"type":"bold"}],"text":"‘Paper Water Rights’"}]

Dead pool is considered only a worst-case scenario among water managers.

But if it happens, it could lead to some stark choices, said Wyoming state Sen. Larry Hicks, who served on the Legislature’s Select Water Committee.

In such a scenario, “power generation is subservient” to irrigation water rights, he told Cowboy State Daily.

“Power Generation is important, but it’s not as important as maintaining peoples’ livelihood,” Hicks said. 

The looming dilemmas over Colorado River water rest in the fact that water management is rooted in “paper water rights,” he said.

Many of those are tied to the 1922 Colorado River Compact, which includes seven states, Mexico and numerous Native American Tribes.

[{"type":"text","marks":[{"type":"textStyle"},{"type":"bold"}],"text":"Just Not Enough Water"}]

In Wyoming, many farmers’ and ranchers’ water rights predate the 1922 Compact, going as far back as the 1880s.

That means if spats break out over Compact water rights as the river’s supply dwindles, farms and ranches along the Green and Little Snake rivers would be largely unaffected, Hicks said.

The Compact designates roughly 15 million acre-feet per year, supposedly evenly split at 7.5 million acre-feet between the Upper Basin and Lower Basin.

The Upper Basin states are Wyoming, Colorado, Utah and New Mexico. Arizona, Nevada and California comprise the Lower Basin.

River flows in recent years have been as low as about 10 million acre-feet, Hicks said.

If the Lower Basin states made an emergency “call on the river” for more access to the Upper Basin allocation, Wyoming’s farmers and ranchers wouldn't catch the brunt of it, he said.

“The Trona industry and big municipalities in Wyoming” would be most at risk of losing vital water, he said.

For instance, even though Cheyenne isn’t physically connected to the Colorado River system, it still depends upon of it because of water-exchange agreements on the North Platte River.

“Arizona is the state that’s most likely to litigate and say, ‘We’re entitled to this water; you need to send it to us’,” Hicks said.

The growing crisis on the Colorado River “is a concern for Cheyenne and our board of public utility,” Mayor Patrick Collins told Cowboy State Daily.

The city gets about “two-thirds of our water” from sources tied to the Colorado River water contract exchange agreements, he said.

Cheyenne has been preparing for potential water shortages, Collins said.

“If they make a call on the river, it’s going to take a while to take effect,” he said, adding that Cheyenne has a roughly four-year backup storage supply.

Cheyenne has been frugal with its water, typically using about half of its full allocation, Collins added.

Despite growth, the city is using about the same amount of water it was 10 years ago, he said.

In the long term, Cheyenne also hopes to break away from Colorado River dependency.

“We have good leads on replacement water from other areas,” he said, without going into detail.

“There is an irrigation district that we’ve been working with, and some industrial users on the Platte River,” Collins said.

Rock Springs mayor Max Mickelson said the city has some water rights dating to 1871, and is therefore immune to any effects tied to the 1922 Colorado River Compact.

“Our system has never overdrawn its allocation the way the Lower Basin has. The current diversion data our Joint Powers Water Board presented to council shows zero deficit under today's conditions. 11,011 acre-feet of annual demand against roughly 2,413 acre-feet available on average, showing no shortfall in any month,” he stated in an email to Cowboy State Daily.

“That's not luck. That's a century of municipal water management that lived within its means. While states downstream built entire metro economies on water that was never really there in average years.” 

The local economy has felt the effects of increasing pressure on Flaming Gorge from the Lower Basin, Mickelson said. The city doesn’t draw from it directly, but is tied to the recreation economy.

“Our recreation, fishing, and marinas economies will all take a hit,” he said. "Our exposure so far has been to the regional environment and economy, not to the water coming out of our faucets.” 

[{"type":"text","marks":[{"type":"textStyle"},{"type":"bold"}],"text":"‘It’s A Concern’"}]

If Lake Powell hits dead pool, that would be a concern for Rock Springs, Mickelson said, noting the federal response to the crisis at Lake Powell is to pull from Flaming Gorge.  

“The Bureau of Reclamation's own modeling, presented to council this May, shows a projected shortfall of 2.0 to 2.3 million acre-feet by March 2027,” Mickelson wrote.

“So, yes, it's a concern, but it is fundamentally about fairness. The Flaming Gorge Reservoir is filled by our river and is treated as insurance for a 1922 compact built on flow numbers that were too generous from the start. We watch Powell's elevation because every foot drop is another argument for draining more from our basin,” he said.

Rock Springs, and Wyoming in general, has been proactive, passing voluntary conservation legislation while keeping underlying water rights protected, Mickelson said.

The Upper Basin should continue in that vein, he added.

“Wyoming has a seat at the table and needs to demand a storage agreement that lets Upper Basin states bank conserved water. We need an explicit federally acknowledged agreement that Wyoming, Utah, and Colorado hold unused apportionment under the original compact. We did not overbuild its claim,” Mickelson wrote.  

Lake Powell Weather Channel 3 7 1 26

<title>Lake Powell Water Critically Low; Wyoming Expects More Demand On Flaming Gorge | Cowboy State Daily</title>

Already at critically low levels, Lake Powell is close to being "dead pool," which means water won't flow downriver anymore. That has Wyoming cities and industries worried that will mean more demand for water from Flaming Gorge Reservoir.

Lake Powell Water Critically Low; Wyoming Expects More Demand On Flaming Gorge

One More For The Road

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