This Thursday, I’m presenting at the Seminar Group’s 12th Annual Montana Water Law Conference in Helena, MT. The topic is valuing “water” and the presentation will focus on research conducted for the Montana Trust Lands Management Division. The reports supporting this work are found at the following links, and I’ve been told they make great bedtime reading Enjoy!
I hope to see you there.
I’m frequently asked about water rights prices and hired to estimate water rights values. For the past week, my daily bicycle commute has passed the “Quick Shade Canopy” pictured above. The price began at $75, then $65, and now $50– a 33% reduction in value. As I pass this canopy, I’m reminded of the difference between an asking price and market value.
Water Rights are no exception. For example, these Tenmile Creek water rights have been listed at $9,600 an acre-foot for over two years.
This begs the question: Is this the market value or the asking price?
Just ask the seller of the “Quick Shade Canopy?” the substantial difference between the two.
On December 12 & 13 of 2011, I had the fortunate opportunity to attend the Innovative Water Transfer III workshop put on by the Western Governors’ Association and the Western States Water Council. All of the meeting proceedings can be found here. I enjoyed the meeting and was, once again, reminded how localized and fragmented these markets really are. Although there was one summary presentation, from Carlee Brown of the Western Governors’ Association, I found particularly interesting. This presentation summarized survey results from western state water resource managers (presentation embedded above). It’s good to hear their thoughts, as they’ll play a decisive role in these markets. None of this content is revolutionary, but is good to see on a western scale. The summarized version is as follows:
1. Legal requirements: Agencies rule over the water rights changes, but not the actual monetary deal.
2. Mitigation: Most states consider impacts to other water users and environment.
3. Market Drivers: Urban/Suburban Growth
4. Most Common Barrier: Public Opinion
5. Informal Agreements: Increasingly common circumvent regulatory process.
I also like the use of PREZI of course.
Tomorrow, I’m moderating and presenting at the Water Rights Sales and Transfers in Montana conference hosted by Lorman. The event will be held at the Crowne Plaza in downtown Billings, MT. Additional information is provided on the brochure posted below or available at this link.
I hope to see you there!
Lorman: Water Rights Sales and Transfers
Lotic is a sponsoring this weekend’s “Run for the Rivers” in Bozeman, Montana. Proceeds benefit the Bluewater TaskForce, Greater Gallatin Watershed Council, and the Montana Water Course. Lotic’s happy to support all three. Lotic also likes community 5ks and the spirit of running. Have a great run!
I want to take a step out of the confines and complexities of the water market. I want to go back to the basics: the joy of water. As a child, my favorite memories were splashing on the banks of Barron Fork Creek, or running full speed into the waters of Flint Creek. I still enjoy the exhilaration of a great streamside rope swing. As a teenager, my fondest memories were fishing in these same waters. I chose the University of Montana, because of the clear, crisp, free flowing waters that make Montana… well, Montana. I studied water and now work with water. I still find it refreshing to wade into water. I also smile when I watch water flow. It moves with a rhythm. The only constant is change. Water cuts a relentless path across the landscape as if it is going somewhere, but has no apparent end or destination. It brings life and new opportunities.
This is the joy of water.
First, thanks to David Zetland for recognizing this article on Aquanomics. I’d also like to thank David for not giving it the attention I thought it deserved, so I could repost it here.
Western Resource Advocates published the Every Drop Counts Report in January, 2011.
A good summary is provided here, but if you decide to read the entire 65 page document, you’ll also note that almost every section concludes with the same findings…. Policy and application vary from state to state and within different geographic regions. In other words, these markets are highly fragmented and localized. This is great if you are familiar with the local market, but an obvious barrier to trade and challenge facing the larger water market.
Personally, my cry is for STANDARDS–just for starters.
As a side, I also question the accuracy of some of the water prices presented, but I’ll save that discussion for a separate post.
