Archives for category: wetland mitigation banking water rights

water rights and ecosystem markets

May 2, 11 //
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Water rights play a critical role in western ecosystem markets. Unique to the West, a water right must underlie all new water use for ecosystem services. This requires reallocating or acquiring the water rights necessary for your project (i.e. wetland development). Lotic has had the fortunate opportunity to work with mitigation bank developers across the West. The mission for most of these banks aligns perfectly with Lotic’s vision of turning blue into green. As a result, this is work we enjoy and actively pursue.

To show our support and eagerness to further engage in this market, Lotic sponsored the National Mitigation and Ecosystem Banking Conference. We have also developed a slidedeck (below) that highlights our services in this market.

Similarly, Lotic will be presenting at the Ecosystem Markets Conference in Madison, Wisconsin. This presentation will highlight the importance of water rights in western ecosystem markets and explore additional opportunities that exist with water markets. The abstract for this presentation is provided below. We hope to see you there.

Abstract

In the West no water right means no water. Ecosystem services are no exception when it comes to the importance of water rights. Securing water rights is a critical component of establishing mitigation banks. This session will demonstrate the importance of water rights in mitigation bank development and will help you to recognize additional market opportunities that these water rights assets provide.

Asset Management

Mitigation banks in the West require appropriate consideration of existing water rights. Researching and taking inventory of all water rights and determining how to reallocate them is critical to the overall success of mitigation bank development. Furthermore, securing valid water rights for a mitigation bank can increase its return on investment and decrease its legal risk of water rights. Having valid water rights can also lead to additional market opportunities.

Market Opportunities

Pressure to reallocate water rights from agriculture to urban and environmental use is driving water quantity markets across the West. With increasing thirst and decreasing supply, this arid region needs an efficient system to distribute water rights among competing users. The answer lies in private water quantity banking. Water banks provide private market opportunities to mitigate groundwater development. Stacking water quantity banks with other mitigation banks offers additional profits for mitigation bank development.

 

Securing Wetland Assets for Mitigation Banks

November 1, 10 //
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The U.S. now boasts over 400 approved wetland banks. Many of these banks are located in the water rich East. Two of these wetland banks are located in the arid State of Montana. The most recent bank to emerge in Montana is the Running Colter Ranch Mitigation Bank. Located in the heart of the state’s fastest growing county; Gallatin County.

Water rights are king in Gallatin County, Montana and these private rights direct all water use. Understanding this simple principle, Lotic LLC and Trout Headwaters, Inc. (THI) worked with the Montana State Department of Natural Resources and Conservation (DNRC) to obtain ground water certificates for wildlife purposes for five wetlands associated with the mitigation bank.

Like many western states, Montana provides an exemption for groundwater development under a specific threshold (35 gallons per minute and 10 acre -feet). Most of these exempt groundwater certificates are associated with groundwater wells to meet domestic water needs. The state’s exempt groundwater wells are estimated at greater that 70,000. This use has lead to multiple controversies and the DNRC is currently taking comments regarding a declaratory ruling on this controversial topic.

What doesn’t appear controversial is using this exemption to protect the state’s wetland and wildlife. Through extensive monitoring, THI documented a direct groundwater connection to five of the Running Colter Ranch’s mitigation wetlands and utilized this data to file and secure the wetland groundwater certificates through the DNRC.

In the world of wetland mitigation banks and water markets, this is a win-win scenario for the state of Montana and mitigation banks; wetlands and wildlife are protected and critical water resources for mitigation banks are also legally protected. This relatively small milestone in mitigation banking provides a new baseline for ecological lift and asset management.

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Provided below are before and after photos for one RCR wetland. Once again, this wetland is recognized, allocated, and protected by a wetland water right.