A potash company wants to renegotiate a deal to purchase Regina’s wastewater for use at a proposed solution mine southeast of the city.

Western Potash was to have purchased nearly all of Regina’s treated effluent but the mine is being redesigned to use significantly less water.

The existing contract comes with a $500,000 penalty for not following through by Jan. 1. The mining company is asking that the penalty be waived and that a new deal be struck.

City administration is recommending council approve the waiver because currently there are no other potential customers.

Western Potash is proposing a scaled down pilot project which is slated to begin production in 2020.

In the meantime, the city is looking for other industrial firms to buy its treated effluent, which currently flows into Wascana Creek.