Writer Patrick Goldin on October 2 wrote in Gurufocus.com about whether the time is right to invest in water supplies in relatively dry metropolitan areas.
He suggested that “If one believes that the value of water rights will rise in the near future, the best way to gain exposure to this upcoming trend would be to buy water rights located near a major metropolitan area with a limited supply of water at a cheap price. However, for a small investor, the only way to gain exposure to water is to purchase shares in a company that would benefit from a water bull market.”
Water is low in New Mexico this year, and a water company has gotten an emergency allowance to use additional water in the Clovis area.
According to New Mexico American Water:
On March 31, 2010, the New Mexico Office of State Engineer approved an emergency authorization relating to New Mexico American Water’s application to combine water rights for wells producing potable water for the Clovis water system. New Mexico American Water filed the application on July 30, 2008 and anticipated the need for emergency authorization at that time in anticipation of possible water shortages in the Clovis area as a result of the depletion of the Ogallala Aquifer in eastern New Mexico.
New Mexico American Water has water rights for over 51,000 acre feet of water and uses about 7,100 acre feet annually to supply Clovis. Each of the 59 wells that currently supply water to Clovis has a set water right assigned to it. Some of these wells are no longer capable of pumping the full amount of the water right assigned to the well, other wells have more water capacity available, but are limited by the water rights currently assigned to that well.
“Ten years ago, it took 29 wells to supply Clovis. This summer it will take 62 wells to produce about the same amount of water,” said Kathy Wright, New Mexico American Water’s general manager. “Managing our water rights comprehensively will help offset the drop in the Ogallala.” Continue Reading »
A Colorado firm reported in February that it is developing a cooperative arrangement with Colorado State University in the area of water conservative research. From its statement:
Regenesis Management Group, LLC, a company that focuses on the efficient use of finite natural resources through the development of innovative techniques, software and instrumentation, announced today that it has entered into a long-term research and development arrangement with Colorado State University to facilitate water conservation research.
The arrangement involves the Warner College of Natural Resources at Colorado State University along with faculty from the Colleges of Agricultural Sciences and Engineering. It is designed to provide for interdisciplinary research in the areas of agricultural crop optimization and will result in tools designed to assist in management of the water budget for farms and protect the rights of downstream water users. This is the first arrangement of its type designed to bring “above-the-surface” and “sub-surface” technical competencies together to track overall water usage, while managing proper accounting of irrigation return flows. The goal is to allow water users to better utilize their water resources for agriculture, while optimizing their consumptive use for alternative applications. The agreement also allows Regenesis Management Group to assume certain intellectual property rights as a result of the research for applications in the private sector. Continue Reading »
Suppose a private company is set up mainly to deliver water to a private homeowners association, but is later bought out by the local city which wants to divert water toward its general city needs. Does the homeowners association have rights to that water?
This question is going to court in California, where the city of Perris (southeast of Riverside) has bought the McCanna Ranch Water Company. That company was set up (in 2003) to serve a housing development called Villages of Avalon, which includes about 1,200 houses. Some of the company’s water is being diverted to other parts of Perris, and the Villages residents suggest that nearly amounts to theft of water – or at least of their water rights.
The development filed a lawsuit on the matter on March 27.