From Northern Water:
A key element of NISP, the “Water Secure” program represents a shift away from “buy-and-dry” and is instead an outside-the-box approach to meeting the future water needs of Northern Colorado’s growing communities while also preserving our vital ag industry and environment.
From The Fort Collins Coloradoan (Jacy Marmaduke):
Northern Water will have to buy “dozens and dozens” of Larimer and Weld county farms to lock down enough Poudre River water to fill a proposed reservoir for the planned Northern Integrated Supply Project.
The unprecedented approach could substantially raise the price of NISP, a $1.2 billion storage and delivery project funded by the 15 Northern Colorado municipalities and water districts that will use the water. Northern Water leaders say the approach will also prevent the dry-up of thousands of acres of farmland in Larimer and Weld counties because the agency won’t strip the properties of water.
Instead of taking the buy-and-dry route of diverting a purchased property’s water rights to a new use, Northern Water plans to trade its South Platte River water rights for the farms’ Poudre River water rights. That means Northern Water will divert water from the Poudre River to store in the proposed Glade Reservoir and give the farmers a slightly larger portion of South Platte water from the proposed Galeton Reservoir.
Northern Water’s newly minted Water Secure program addresses a giant question mark that has lingered on the NISP road map for more than 15 years: The agency only has about half of the Poudre River water it needs for NISP. But it does have a lot of water from the South Platte River, which is less-suited for drinking than Poudre water and more expensive to treat.
This problem has never been a secret, but until now, Northern Water’s public plans included the assumption that farmers would willingly trade their water with the agency for free.
Those voluntary exchanges aren’t off the table, but Northern Water now plans to secure much of the water it needs by buying farms in two irrigation ditch systems — the New Cache la Poudre Irrigating Co. and the Larimer and Weld Irrigation Co. Once Northern Water owns those farms and their water, the agency will essentially be trading water with itself.
“We’ve just become the most willing shareholder on the ditch,” said Greg Dewey, a Northern Water water resources engineer and Water Secure project manager.
How we got here
Shares of Poudre River water in the New Cache la Poudre and Larimer and Weld ditches are coveted because they’re senior water rights, which means their owners have first dibs for usage. That becomes important during dry years when there isn’t enough water for everyone who’s claimed a slice of an overallocated pie.
Senior water shares are crucial for NISP because Northern Water’s current Poudre River supply (known as the Grey Mountain right) is a junior water right that will only be useful during wet years.
Dewey called Water Secure’s approach a “risk management strategy” born during negotiations with the two ditch companies. He said it became clear that the farms Northern Water was eyeing for trades are vulnerable to buy-and-dry, a controversial practice that has fed Colorado population growth at the expense of irrigated farmland.
“If that happens over the long-term, that jeopardizes our ability to exchange water with those systems,” Dewey said. “So this is a way to help preserve that exchange and also (address) a common interest we have with those companies to keep water in the system.”
Northern Water unveiled the Water Secure program in February after closing a deal on its first farm, a 28-acre property northeast of Greeley. The farm cost $330,000 and came with 30 acre-feet of Poudre River water. Northern Water will need to buy “dozens and dozens” of farms to secure about 25,000 acre-feet’s worth of water exchanges for NISP, spokesman Brian Werner said. An acre-foot of water meets the annual needs of about three or four urban households…
[Brian] Werner said staff is still evaluating how Water Secure will affect the price of NISP. He said the cost impact will depend on the ratio of farm purchases to willful water exchanges — and how much money Northern Water makes when it eventually sells the farms back to farmers.
Northern Water plans to pursue legal contracts that permanently bind the water to the farmland regardless of its owner, which would shield the farms from buy-and-dry and protect the agency’s water exchange agreements. The water provider plans to lease the land to the original owner or another farmer until selling it to another entity that would be required to keep the South Platte River water on the property.
“If we buy a farm and establish that water agreement, then we’ll be looking to sell it back into private hands,” Northern Water spokesman Jeff Stahla said. “Our goal is not to be the major landowner up there.”
The legal agreements, likely conservation easements or covenants, would be the first of their kind in the region if not the state. Boulder County leaders have found success with a similar approach for preserving open space, Werner said.
He argued more federal review is unnecessary because Northern Water has included the water exchanges in its NISP planning documents since at least 2004. Northern Water’s water court decree for the South Platte River water allows the trades.
Dewey, a Kersey native and former farmer, is Northern Water’s “boots on the ground” for the program, Werner said. Dewey said Water Secure is getting positive feedback from farmers who’ve watched irrigated agriculture dwindle in Larimer and Weld counties.