Archives for category: water marketing

Water Marketing: Frenchtown Technology Center, Montana

April 8, 13 //

For the past year +, I’ve had the fortunate opportunity to work with Green Investment Group, Inc. at their Missoula, MT Frenchtown Technology Center. The former pulp mill includes 25,000 acre feet of documented historic industrial/power generation use and extensive irrigation water rights. Together, it’s the largest industrial water rights portfolio in the Middle Clark Fork Basin by over 4x. In a basin with groundwater restrictions (35 gpm, 10AF per year) , this portfolio provides an obvious source of water for future demands.

This recent interview with KVGO highlights some of the assets and marketing opportunities. Additional information is available upon request.

Using

February 25, 13 //

I appreciate the use of digital media and design to educate a potential customer and tell a story. Well played and worth sharing.

The Unfiltered Truth About Water

Why water markets aren’t everywhere: lessons from New Mexico

February 1, 13 //

I recently completed some market research for a client in New Mexico. This work confirmed my thoughts that markets aren’t everywhere. In fact, they’re few are far between. New Mexico does have active water markets (Rio Grande, Lower Pecos), although this project wasn’t in one of them.

Reflecting on this work, I identified 7 reasons why New Mexico water marketing is not everywhere.

Privacy. Water rights transactions tend to remain private in nature. Thus, uncovering private deals is easier said than done.
Record Keeping. The record keeping and tracking of potential transactions remained a challenge in the specific basin.
Political Opposition. New Mexico allows acequias or qualifying ditch companies to adopt bylaws requiring their approval as a condition to surface water transfers. Although this law does not specifically pertain to groundwater, the political opposition to trade still exists.
Administrative Cost. The administrative cost to change a water right in New Mexico can be high with great uncertainty of success. This creates a barrier to trade.
Water Sharing. Water right holders in New Mexico often informally share water within irrigation institutions, thus decreasing the need for trade. This “legal” sharing occurs in districts where the State Engineer has appointed a water master.
Exempt Water Use. Small “domestic” groundwater exemptions still exist in New Mexico in annual volumes up to 3 AF per household. The limited domestic demand that existed in this basin allowed for groundwater exemptions to meet demands and further reducing the need to trade
Economic Growth/Decline. Larger economic principles drive growth and a demand for water. Although this basins was closed, economic metrics showed a zero or negative economic growth in recent years.

Although specific to an undisclosed basin in New Mexico, these observations are common across the West.

Montana Water Rights Application Reform: My Thoughts

September 16, 12 //

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As expressed in my previous post, I had the fortunate opportunity to present at the Montana Water Law conference last. I also took some important lessons and observations away from this conference. Because my work focuses on “marketing,” my biggest excitement centered around the new application process for water rights that will go into effect on October 10, 2012. The topic was informally referred to as “reform” at the conference. This new approach will involve regional offices performing much of the work associated with new permits and change applications.

In no particular order, here are my initial thoughts:

1. Bring on the reform. As no surprise, the critics are already mumbling. We should know by now, it is not the critic that counts. The reality is the old system needed help and this “reform” is designed to fix this process. Here’s to the courage and foresight to bring this to life.

2. Increased efficiency is key. The basis for this application reform is to increase efficiency, by having regional offices conduct much of the permit and change work. The biggest concern is this will create a bottleneck instead of a superhighway. Washington has faced similar challenges I acknowledged here, and we all hope this is not the case. Only time will tell.

3. Transparency. Transparency. Transparency. HB40 brought greater transparency to the change and permitting process. The “reform” appears to make this process that much more transparent. Starting with the first meeting, the emphasis on communication and reaching the end object, should make for a better process.

4. Headed in the right direction. Since the introduction of HB40 the average processing time for a new appropriations drop by an order of months. This is a vast improvement and shows this process is headed in the right direction, I expect the water rights application reform to carry this momentum.

5. Change is tough (as recognized here), I salute the leadership and vision of those bringing this change. Even if they get pieces of the puzzle wrong, the willingness to change can correct these mistakes and march forward. This excites me.

As we head into a new world of Montana Water Rights Appropriations, I’m reminded of this quote by Teddy Rossevelt.

In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.

3 water rights observations from the Eastern Snake River Plains

September 3, 12 //

I’ve started working on my first project in the Eastern Snake River Plains and immediately made three observations I felt inclined to share:

Groundwater is exempt to priority–at least initially. The Eastern Snake River Plains is fighting a battle I previously recognized regarding groundwater’s potential exemption to priority.
This basin possesses all the characteristics that drives water markets.
Markets provide solutions to water problems, even in the Easter Snake River Plains.

colorado water trust’s request for water

April 27, 12 //

One of the many benefits of water markets is their ability to rapidly adapt to changes on short notice. Enter the Colorado Water Trust (CWT) and their implementation of “REQUEST FOR WATER 2012.” Faced with a 38% of average snowpack, this Denver-based nonprofit is actively pursuing short-term instream flow leases in priority basins. I’m obviously a fan of this market response to an anticipated water challenge and had the chance to ask CWT Executive Director, Amy Beatie, a couple of quick questions. Questions and answers are as follows:

1. It appears the Engineer must approve each loan, do you know how long this approval process will take? THE STATUTE DOESN’T PROVIDE TIMEFRAMES FOR SOME ACTIONS, SO WE DON’T EXACTLY KNOW. WE HAVE WORKED VERY CLOSELY WITH THE STATE ON THIS, THEY KNOW LEASES ARE COMING, AND THEY KNOW, AND APPRECIATE, THAT THE IDEA IS TO GET WATER QUICKLY INTO RIVERS. SO, WHILE THERE ARE NO DEADLINES, THEY ARE PREPARED TO MOVE FAST AND SO ARE WE.

2. At 38%snowpack how will CWT ensure they are targeting water rights that won’t be called by senior users? WE’VE ASKED IN THE INITIAL OFFER FORM FOR THE WATER USER TO LET US KNOW IF THEY HAD WATER AVAILABLE IN 2002. THAT’S THE BEST WAY FOR US TO DETERMINE WITHOUT MORE ANALYSIS IF THE WATER RIGHT WILL HAVE WATER AVAILABLE THIS YEAR. IF WE HAVE QUESTIONS ABOUT AN OFFERED WATER RIGHT’S RELIABILITY, WE HAVE ALSO BUILT A TEAM OF TECHNICAL EXPERTS (CONTRACTORS AND VOLUNTEER ENGINEERS AND HYDROLOGISTS) TO HELP US PROCESS THE OFFERS, SO THAT WE DON’T LEASE “PAPER WATER.” THEY ARE ALL ON CALL FOR TWO WEEKS STARTING ON MONDAY, MAY 14 RIGHT AFTER THE INITIAL OFFER FORM SUBMISSION DEADLINE TO HELP US PROCESS THE TECHNICAL ELEMENTS OF THE OFFERS FOR LEASES.

3. What is the ultimate goal for this request in CFS or AF? NONE. WE ARE STILL RAISING THE MONEY SO WE WILL LEASE AS MUCH WATER AS WE HAVE MONEY TO, AS LONG AS THE WATER OFFERED MEETS THE STATUTORY REQUIREMENTS. BEFORE WE PUT OUR REQUEST FOR WATER OUT, WE THOUGHT MAYBE TWO OR THREE LEASES WOULD BE A SUCCESS. WE’RE THERE ALREADY SO WE WOULD CONSIDER THIS A SUCCESS NOW IF WE COULD, SAY, ENTER INTO ONE IN EVERY BASIN? WE DON’T KNOW. THIS IS THE FIRST TIME WE’VE DONE ANYTHING LIKE THIS. MAYBE THE NEXT TIME WE’LL HAVE A GOAL. WE JUST WANT THE PROGRAM TO BE AS SUCCESSFUL AS POSSIBLE THIS SUMMER.

Montana Water Rights Handbook adds Marketing

April 25, 12 //

One of my all time favorite Montana Water Right references is the Water Rights in Montana Handbook. Revisions to this publication closely follow the latest legislative session and the changes that it brings. This year of course, the state passed the the “Marketing” bill (AKA: My favorite bill ever). Here’s what the handbook has to say on this subject:

Marketing for Aquifer Recharge or Mitigation

The 2011 Legislature allowed existing water rights holders to change all or part of an appropriation for use as aquifer recharge or mitigation (section 85-2-420, MCA). Part of the appropriation may be marketed (e.g., leased) or sold. The appropriator may continue the authorized beneficial use until the change in use is completed.

The appropriator’s flow rate and volume at the point of diversion would then equal the initial beneficial use minus the amount sold or marketed. Changes to an appropriator’s right must be completed within 20 years. The appropriator must notify the department within 30 days each time a portion of change is completed.

The water purchaser or leasee would still be required to submit an Application for Beneficial Water Use Permit.

In short, the book was released today and I felt inclined to share.

Where to go for information on water markets

April 19, 12 //

I’m frequently asked a simple question:

I want to learn more about water markets, what are your recommendations?

In response to this question, I’ve decided to create a hyperlink list of my favorite resources. Some of these resources don’t solely focus on this this topic, but have provided valuable great water market content from time to time. As these markets are continually evolving and emerging, I imagine this list will do the same.

Feel free to email or submit in the comments of resources you enjoy and I missed.

Academia

Books

Web

And, strategic use of digital media searches. Actually, digital media is my most powerful tool to aggregate information on the market.

Farm Water Conservation Water Infographic

March 23, 12 //

I assume my water “marketing communication” pulse is being felt, as I’m receiving an increasing # of emails on this subject. The latest was the following Farm Water Conservation Infographic, thanks to Killer Infographics. Although, I slightly disagree with the statistics and framing regarding efficiency, I find the graphic a compelling means to tell this story and position the message of farm water conservation.

Infographic by Seametrics, a manufacturer of water flow meter technology that measures and conserves water.

a unique view from under the surface

March 14, 12 //

I’ve always found water visually enjoyable. Two photo galleries, I’ve recently stumbled across, have reminded me of the beauty of this medium. These artists have chosen a view from under the surface as their blank canvas. The first gallery is “Underwater Dogs by Seth Casteel” and the second is Undewater Sculptures by Jason de Caires Taylor. These hyperlinks provide more examples of this work from the innovators themselves. Below, I’ve shared 3 of my favorites from each. Enjoy.