From The Colorado Sun (Andy Mueller, Bob Wolff, Jim Lochhead, CEO, Brad Wind, Marshall Brown, Earl Wilkinson III, Seth Clayton, Kevin Lusk, James Broderick):
We may not always agree on the particulars of water policy and water use in the Centennial State, but we all recognize the importance of the Colorado River to our statewide economy and our Colorado way of life. The Colorado River is arguably the single most important natural resource to the State of Colorado. It powers economies on both sides of the Continental Divide. It provides food and fiber to the nation and the world from both sides of the Divide. And its fate will determine our own.
Colorado’s constitution and our state’s laws have long recognized one simple truth: The waters that originate in our great state are the property of the public. The people of Colorado have the right to appropriate and use that water for beneficial uses, such as municipal, irrigation, industrial and recreation. Long excluded from the list of beneficial uses of water is holding water for speculation. Our state supreme court has ruled unconstitutional any scheme that “would encourage those with vast monetary resources to monopolize, for personal profit rather than for beneficial use…”
Recently we have seen a series of articles and opinion pieces discussing and even advocating for the potential influx of financial capital from out of state investment funds to buy water from Colorado’s vibrant farms and ranches with the apparent aim of “solving” Colorado’s drought problems.
This is not the first time we have seen venture capital eyeing our state’s water resources. This time around, however, the investors and their representatives are posturing to portray themselves as the only solution to a climate change driven reduction in the flows of our rivers. We have come together to set the record straight on this misguided concept.
Our organizations and the water users we represent are working collaboratively with the State of Colorado to examine solutions to the threat of water shortages brought on by a changing climate and prolonged overuse of the River’s water by downstream states. Together, we are exploring a multi-faceted effort to secure our state’s water supply and protect irrigation for food product, our thriving communities and the environment that depend on this water. Among these approaches is the feasibility of a proposed “demand management” program to temporarily compensate water users in Colorado and other Upper Basin states to reduce their use of water to assure that we are able to meet our obligations under the Colorado River Compact.
Demand management is complex. It is controversial. But we are approaching these conversations in good faith because we recognize that we must work together to protect the economies and livelihoods supported by the Colorado River throughout the entire state. Since solutions to our water challenges must be undertaken for the benefit of the state as a whole, these efforts must be led by the state. The Colorado Water Conservation Board articulated a set of guiding principles for this process in November 2018, principles with which we agree.
One thing is clear. There is no place for private for-profit interests in this process. Moreover, private sector entities do not have the legal ability or authority to manage water across state lines or through federally owned reservoirs. This can be done only by the states and the federal government. Colorado state government has a long history of opposing interstate marketing and transfers of water by private interests, and that opposition should continue.
The introduction of private investors in our statewide water planning efforts will only serve to further exacerbate the water divisions that exist between our urban areas and our irrigated agricultural communities on both sides of the Continental Divide. Our state must stand strong together to protect our Colorado way of life.
Andy Mueller, general manager of the Colorado River District
Bob Wolff, president, Southwestern Water Conservation District
Jim Lochhead, CEO, Denver Water
Brad Wind, general manager, Northern Water
Marshall Brown, general manager, Aurora Water
Earl Wilkinson III, chief water services officer, Colorado Springs Utilities
Seth Clayton, executive director, Pueblo Water
Kevin Lusk, president, Twin Lakes Reservoir and Canal Co.
James Broderick, executive director, Southeastern Colorado Water Conservancy District
From The Durango Herald (Jonathan Romeo) via The Cortez Journal:
In recent weeks, much attention has been focused on an issue not new to officials in the water world: private interests or hedge funds purchasing water rights from agricultural communities and diverting that water to cities.
An open letter from almost 10 water officials from across the state, including the local Southwestern Water Conservation District, lashes out against the practice, saying, “waters that originate in our great state are the property of the public.”
“The people of Colorado have the right to appropriate and use that water for beneficial uses, such as municipal, irrigation, industrial and recreation,” the letter, sent Thursday, says.
The open letter is largely in response to a Jan. 3 article in The New York Times called “Wall Street Eyes Billions in the Colorado’s Water,” which says private investors may become more of a force in the political water world.
The article cites several examples of private investors purchasing water rights from ranches, and then diverting it to cities to feed new developments or subdivisions in drought-strapped places.
Several private equity owners argue the practice could be one of the solutions to curb the impacts of climate change that has resulted in drought and less available water throughout the West.
In one stance, Greenstone, a private investment firm, bought most of the water rights in Cibola, Arizona, and then sold the rights to a suburb of Phoenix known as Queen Creek, 175 miles away.
“One of the things I think we’ve learned over time is that a resource like water is best allocated through kind of a combination of market forces and regulatory oversight,” Grady Gammage, a spokesman for Greenstone, said in the article…
The practice has been more common in urban areas along the Front Range or near Phoenix, and the issue hasn’t reared its head quite yet in Southwest Colorado, according to several water officials interviewed for this story.
Robert Genualdi, Colorado Division of Water Resources Division 7 engineer, which covers Durango, said there are several key distinctions why the hedge funds of Wall Street haven’t set their sights on local waterways.
For one, in most places along the Front Range where it is happening, the waterways are over-appropriated and there is not enough water to go around to serve new developments or subdivisions.
As a result, entities looking for water for urban areas seek out farm and ranch owners who may be interested in selling their rights. Then, the developers use that water for their projects and let the farms go fallow, known as “buy and dry.”
On the other hand, most waterways in the region, like the Animas River, are not over-allocated, meaning water rights can still be bought, Genualdi said.
“In our corner of the state, it’s probably not as prevalent as it might be in other parts of the state because of the water availability down here,” he said.
Also, Genualdi pointed out that much of the water is stored in Bureau of Reclamation projects – like Vallecito, Lake Nighthorse and McPhee reservoirs – which bring some level of federal protections against the practice.
“Those projects were built for specific things, so it’s more of a task to get water use changed,” he said. “You’d have to go to Congress for a change.”
While not currently an issue in Southwest Colorado, efforts should be made to prepare for private interests in water, said Amy Huff, a water attorney recently appointed to the Southwestern Water Conservation Board…
Mike Preston, former manager for the Dolores Water Conservancy District, said several water districts in the region have set up restrictions for people to sell off to private companies.
“They’ve done what they can to protect themselves,” he said. “That water is all tied up to the land.”
Ed Tolen, general manager of the La Plata Archuleta Water District, said his water right holders shouldn’t have to worry because it’s all domestic water use, not for irrigation.
But still, he said there is concern among the agricultural community that some ranchers and farmers may have to send their water to lower basin states to meet water compacts…
“One thing is clear. There is no place for private for-profit interests in this process,” the open letter said. “Colorado state government has a long history of opposing interstate marketing and transfers of water by private interests, and that opposition should continue.”