WHAT
IS WATER WORTH January 18, 2017Water
just like air is critical to our existence; we cant live without it. Good
potable groundwater is a quality of life essential. As a commodity its value varies
with its scarceness. Water laws governing water varies from state to state and
country to country. People fight over water, states fight over water, and countries
fight over water. Generally the rule for groundwater is that it is a defacto property
right, if located under your land. In New Mexico the state controls groundwater
through a permitting system by regulating the amount of withdrawal. However, if
there are too many landowners vying for a limited amount of water the water
is apportioned by need or a water master. So by its scarcity it has become more
valuable. Groundwater
as a commodity should be more valuable than minerals, including oil and gas, since
it is a requirement for life. Bottled water is often more costly per gallon than
refined gas products. The state under its oil and gas lease program collects money
from leases because of it s intrinsic value. Municipal water companies collect
money from its customers for the distribution and treatment of the water and not
just the value of the commodity. For years the federal government has tried to
change the 1872 mining law so that miners have to pay a royalty on the minerals
that are extracted. It is ironic that no such fee is collected for groundwater
extraction. Large private landowners such as the Augustin Plains Ranch, LLC can
apply for permits from the state that would extract many thousands of acre-feet
of water to do with, as the market will bear. But they do not have to pay a cent
for the water itself. Any adjacent landowners who could be adversely affected
by such a withdrawal have to suffer the consequences by either having to lowering
their wells or get in-lieu water. This type of impairment should not have to be
endured by anyone. The
State Engineer has made a suggestion that maybe a severance compensation levy
should be put in place to help offset potential damage or impairment to adjacent
land owners. The request by the Augustin Plains Ranch, LLC to extract 54,000 acre
feet of groundwater annually from the plains will over time mine out what is now
considered excess water. So if there is a severance compensation levy applied
to that pumping who is going to benefit from this fund? Does the Augustin Plains
Ranch, LLC put into this fund or is it a tax that is funded through your tax dollars?
Who is the recipient of these funds the counties or the adversely affect
landowners? How is the damaged to be assessed? If your well goes dry is it the
beneficial use o f that well that set the damage value? If your well is used only
for domestic consumption is the damage assessment going to be different than if
your well is for the support of a cattle operation? The real problem is that not
only has your well gone dry but your land value has dropped significantly as well
as the local economy. This adversely a ffects both Socorro and Catron Counties.
How is severance compensation going to address this impact? Is severance compensation
going to become the states equivalence to the federal PILT (Payment in Lieu
of Taxes) program to help support counties that have large federal land ownership
holdings? Does
the development of the LLCs water for commercial use make it more valuable
because the water is sold under contract to the highest bidder ? When there is
no more water to be extracted, because the aquifer is basically pumped dry, how
is this water transfer going to be a benefit to area receiving the water? Where
is the next source of water coming from, will it be your back yard? These are
hard questions to answer and this is why we need a state water plan that actually
addresses the supply and demandissues that face this state. Shovel ready projects
are not the answer to water planning for future needs of this state. The
OSE (state engineers office) is guided by some antiquated water laws and
policies, which have little or no bearing on how groundwater should be managed
for the people of the state. The state needs to take a realistic look at the future
needs of groundwater to support the people of this state. The states water permit
system should be revamped to help met our future goals of adequate water. If
the population of the state thinks it is in their best interest to have groundwater
controlled by corporations then they can expect to give up on reasonable water
rates and water quality. If they think that the state should be the only controlling
body they may ultimately wind up with the same circumstances under the current
management climate. A policy of reasonable beneficial use and flow meters may
be the only way to control future withdrawals. At our current rate on pumping
in this state we are mining our resource to a point of non-sustainability. With
the current population growth and perceived demand for groundwater resources in
this state, it puts the State Engineers Office in a position that it needs to
address real water planning, because as a commodity the value of water will ultimately
increase dramatically. Water
is life. Control the one and you control the other. Dennis Inman |