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April 28, 2007

Is Buying Surface Water Alone Enough?

The red line, in this Chart, shows that Nebraska would have been in compliance each year since 1981 if it eliminated all surface irrigation in critical years. The critical years were 1991, 2000, 2002, 2003, 2004, 2005, and probably 2006. In order for Nebraska to get full credit for the elimination of consumptive use caused by surface irrigation, it must purchase or lease all surface water from any particular reservoir. One reason is that between 33% and 50% of the surface water consumptive use is caused by evaporation from the reservoirs. Nebraska believes that it can pass all of the costs of evaporation to Kansas if Nebraska uses none of the surface water.

Considerations:
• Consumptive Use caused by groundwater pumping is increasing at a rate of about 2,000 acre feet a year.

• Surface water consumptive use ranges between 39,000 acre feet and 140,000 acre feet each year.

• About half of the irrigation ditches have had water during the driest of the last several years.

• Eliminating surface water consumptive use would be enough to keep Nebraska in compliance on an annual basis if groundwater consumptive use does not grow and/or the allocation increases.

• Purchasing or leasing all of the surface water in 2007 will not eliminate the existing accumulated overages.

Conclusion

The purchase or lease of surface irrigation rights are necessary. Control of the surface water rights will usually keep Nebraska in compliance. However, during periods with very low allocations, as we have had during 2000 through 2006, it will probably be necessary to supplement the stream with additional water. This is because depletions caused by groundwater will continue to grow unless there is a significant reduction of irrigation near the stream from groundwater wells in addition to control of all surface irrigation. Small reductions in allocations have a very limited benefit according to the computer simulation

LB 701 gives the NRDs the authority to raise funds to make long-term purchases or leases of surface water or quick response wells. The price it pays for those rights will be negotiated with the owners. The total cost and, hence, the cost to the taxpayers is dependent on the rates negotiated by the NRDs. Those negotiations between the NRDs and the irrigation districts are legitimate uses of the closed session provisions of the open meetings act.

If the NRDs can successfully control surface water, if Kansas agrees to eliminate evaporation as a charge to Nebraska, if the NRDs put in place a way to augment the stream in case of prolonged dry periods, then groundwater irrigation in the Republican River Basin should be able to continue with no reductions in allocations to the individual irrigators. However, the Upper Republican NRD is likely to cause lower groundwater allocations because of concerns over the aquifer, even though such reductions will have very minimal benefit to the stream. Permanent control of surface water rights is probably much less expensive than year to year control. However, there are a number of surface water users that do not want to transfer that control on a permanent basis even if they are paid a significant premium.

As an alternative to augmenting the stream during prolonged dry periods, the NRDs could choose to reduce pumping by the wells close to the stream. Because of the delayed effect of such reductions, the NRDs would have to overcompensate. The conservationist-oriented board members will prefer the reduction in allocation approach rather than the augmentation approach. Those that want a stronger economy and to use all water that can be legally used will prefer the augmentation approach. The conservationist approach will cause large amounts of water to be unused in wet years, and that water will go to Kansas with no benefit to Nebraska.

Because of huge economic ramifications of these policy decisions, the NRDs are now the primary managers of the economy of the Basin.

April 27, 2007

Augmenting the Stream

The reason that I have been saying LB 701 does not fix the fundamental problem is that just buying surface water alone is not enough. To keep the State in compliance, surface irrigators cannot divert water out of the stream when allocations are low, and the stream must be supplemented with extra water during the worst of times.

WaterClaim has long advocated the transfer of water from the Platte to the Republican River Basin as being the most cost-effective. However, it is possible to achieve similar results by drilling wells within the Republican River Basin and pumping that water into the stream. It just depends on where those wells are placed. There are signs that the NRDs and the DNR are realizing that is what needs to be done.

A public statement by the NRDs of what they now intend to do would go a long way toward relieving some of the fears and would help their own public relations. Perhaps they will do that someday. Once they provide the details, they might find that we, the people -- their employers -- can support what they are doing.

April 26, 2007

Harlan Inflow Graph Updated

View Graph

WaterClaim Comments on LB 701

WaterClaim has long said that Nebraska must act to protect the State and the Basin from the consequences of a bad agreement with Kansas. The Legislature’s response was to give the NRDs a blank check that can be written on the account of the residents of the Basin. We hope this money will be spent in a way that protects the State and the Basin. We are concerned that some of the planned projects will be an ineffective use of the money. There are still some major problems with the agreement and the computer simulation that the policy makers need to consider before they make a multi-year and multi-million dollar commitment on behalf of the taxpayers.

LB 701 does not solve the problem nor does it put in place the mechanisms that will make sure Nebraska stays in compliance in the future. Unless the water allocations allowed to Nebraska increase via either increased precipitation or corrections in the computer simulation, the Republican River Basin will continue to have a water crisis that is largely political in nature.

Governor Heineman to Sign LB 701 on May 1

(Lincoln, Neb.) Gov. Dave Heineman issued the following comment regarding the Legislature’s passage of LB 701. The bill provides for the funding of the state’s water-related priorities and includes the creation of a Water Resources Cash Fund.

Gov. Heineman said, “I’m pleased to see that the Legislature has passed this comprehensive water legislation and I look forward to signing this bill into law. LB 701 will help our state make substantial progress in our goal of achieving sustainable water use throughout Nebraska.

“I want to applaud the work of our State Senators. By addressing both our short-term issues in the Republican River Basin and by creating a framework addressing our long-term water challenges, this legislation will help our state move forward as we work to become better stewards of our most valuable natural resource.”

The Governor is scheduled to hold a bill signing ceremony on Tuesday, May 1.

LB 701 passes

LB 701
The Legislature voted to suspend its rules which require any bill which impacts the budget to pass after the budget bill is approved.

Speaker Flood said the reason for the immediate passage of LB 701 is to, “Inch us closer to compliance and to show good faith to Kansas.”

The Bill passed the Legislature at 10:22am Thursday April 26, 2007, on a vote of 43 for and 6 not voting.
Unless the Governor vetoes this bill it becomes law. It was passed as emergency legislation which means it takes effect immediately.

April 25, 2007

Inflows into Harlan County Reservoir

There has been a lot of rain in the Republican River Basin in the recent weeks. This chart shows what the inflows to Harlan Reservoir are so far this year. The 2007 number will increase as the year goes by. But this is where we are at so far.

Inflows into Harlan for most of April have been about 300 acre feet a day. On the 24th they jumped to 1,129 for the day. That increased inflow will probably stay high for a while.

View 2007 Chart

View 25 Year Chart

April 24, 2007

Open Letter

Dear Senator

You are about to pass LB 701. There is one huge item the bill does not address that is of great importance to the guy at the end of the line.

Nebraska’s accumulated overage on its water allowance for the Republican River Basin is 136,000 acre feet. According to the agreement with Kansas, that overage must be erased by the end of 2007. There is nothing in LB 701 that gives any direction regarding this accumulated overage. That means the Legislature, which is responsible for setting policy, is ignoring the issue and letting the Governor and NRDs decide how to handle the issue. Neither of those parties are giving any indication of what they might do.

At the end of the day, it is the individual who will make the adjustment in the amount of water they use. It is the individual that will pay whatever tax burden that is placed on them. We would like to have an idea of what to expect.

We have no way of causing the Governor or the NRDs to answer the question or even giving us a hint. How will the existing overage be addressed? Will the State pay 100% of the damages and that will be the end of it? Will the State pay damages and ask the NRDs to use less water as punishment? Will we all wait for a judge to make the decision for us? Or will the Governor impose one of many other possible scenarios?

We ask that the Legislature, which has oversight over the DNR and the NRDs and who is responsible for making policy, at least mention the subject.

April 23, 2007

WaterClaim on LB 701

A lot of people assume that the new water bill is something that WaterClaim supports or caused to happen because we supported Mark Christensen in his election bid and because Mark Christensen was an employee of WaterClaim.

WaterClaim did support Mark Christensen in his successful election bid. We did pay Mark a salary, both before and after the election. We did draft the first two versions of the water bill, LB 701.

However, Mark Christensen is no longer an employee of WaterClaim. He resigned from WaterClaim on April 1st.

The third version of the bill and the one that the Legislature heard and passed was a bill drafted by the NRDs and was very different from what Senator Christensen campaigned for and what WaterClaim supported. The NRD version, which Senator Christensen ended up adopting and supporting, is much more expensive and moves water out of the Basin instead of bringing it in.

The good news is that the NRD version of LB 701 has a chance of resolving the problem. WaterClaim has long said it is important for Nebraska to take action to avoid letting a Federal judge decide our fate. However, WaterClaim strongly preferred a different way of resolving the problem than what the NRDs and Senator Mark Christensen ended up choosing.

The public elected the NRDs. Our elected representatives asked for the authority to dramatically raise taxes, to spend the money, and to choose how to keep Kansas happy. The Legislature agreed to give them that authority.

WaterClaim respects the authority of our elected representatives to make the decisions. That doesn’t mean we like how or what they are doing. But we, like everyone else, have only one practical way to change what is happening, and that is through the ballot box.

WaterClaim will do what we can to help the NRDs successfully implement the policies they have chosen. The job the NRDs now have will not be easy. Buying surface water alone may not be enough. How much money they pay for the surface water may determine if they have enough money to do the other things that must also be done.


April 21, 2007

Buyouts Not Enough

A story in the Sterling Journal Advocate reports that buying out irrigation acres will not be enough in Colorado.

WaterClaim has been reporting that buyouts alone will not work in Nebraska either. Nebraska has the luxury of being able to do things that Colorado cannot. The question is, will the NRDs do more than just buyout surface irrigation? If not, then the problem will persist.

April 20, 2007

How Nebraska Water Policy Decisions Are Made

This is a very long write up but the very short version of how water policy was made. Someday, I may write up more of the details of exactly how the process works and what some of the motivations behind those decisions might be. I will try to avoid names.

When the 2007 Legislative session began, the NRDs did not have any suggestions for the Legislature. Nor did the DNR, which acts on behalf of the Governor, bring anything other than a minor technical bill. Neither brought a bill to the Legislature for consideration. The recommendation, at the beginning of the session, by lobbyists from the NRDs, was to wait until 2008 to take action and only commission a study for 2007.

Senator Christensen decided that it was better to have a solution in 2007. He introduced LB 701 as his suggestion on how to do that. LB 701 is an attempt to resolve the water problem in the Republican River Basin. The first two drafts were written by WaterClaim, in close association with Senator Christensen. In the winter of 2006, the Senator and WaterClaim sat down with the managers of each of the Republican River Basin NRDs and several of the board members from each NRD. The group brainstormed together on what a bill should have in it and how it should work. The first draft of LB 701 included all of the NRD suggestions, and their suggestions made it a better bill.

WaterClaim and the Senator then sat down with the surface irrigation districts. This included the managers and many of the board members. The Senator is both a groundwater irrigator and surface water irrigator and is very familiar with both types of systems. LB 701 used many of the Senator’s ideas for the bill.

The first draft included the idea of a committee made up of mostly NRD representatives. It was called the BAC. The idea was for the BAC to set the allocation for each NRD and for the DNR (controls surface water allocation), and to conduct basin wide projects such as imports, surface water buys, vegetation management, and land retirement. It would then be up to each agency to set the allocation for their users to make sure things stayed within the allocation for the agency. This concept was written up and submitted as a bill in early January.

Over the next month, the NRDs decided that they didn't like the BAC idea after all. They each were afraid that the other NRDs would outvote them and set the amount of water they could use at a low level. The more they thought about it, the more the NRDs decided they trusted the DNR more than each other.

They began to let the Senator know that they would like the BAC to disappear. The problem with removing the BAC is that the entire structure of the bill fell apart. If the BAC was removed, then the DNR would be given the money and tell the NRDs how to spend it. Because the head of the DNR wants much less irrigation, we felt that removing the BAC would give the DNR the financial leverage to force a major reduction in allocations, as the DNR suggested in December 2006 at a meeting in McCook.

But, the NRDs began to not only just dislike the BAC but they decided they had a better idea. The executive board of the Upper Republican NRD led this change. They felt that, because of the relationship between WaterClaim and the Senator as well as our position that the BAC needed to exist, the only solution was to find another Senator with whom to work.

For a variety of reasons, they chose a Senator out of northeast Nebraska who agreed to help them develop their plan without the knowledge or participation of the Senators in the Republican River Basin. During March, the Republican NRDs, the Association of NRDs (NARD), and legal counsel for the Natural Resources Committee, in cooperation with special counsel for the Attorney General's office and the DNR, crafted a new idea.

The essence of the NRD idea was to allow the NRDs to collect a new tax. The NRDs would be given the money and the authority to spend it as they saw fit. The local tax money would be supplemented with some State money for the first two years. After that, the NRDs would be on their own to make sure they kept the State in compliance with the State's obligations to Kansas.

The NRD plan was developed in secret without the participation of anyone who disagreed with the framework of what they wanted to do. The advantage of their approach is that they could move fairly quickly because each of the parties generally agreed with each other in principle. The disadvantage of their approach is that a small closed group is prone to make mistakes. Because competing ideas were excluded during the development of the process, the end product reflects only their ideas.

The NRDs portrayed what they developed as having wide support. The Governor was on board because most of the cost, over 90% of the long-term costs, is paid for by a tax that doesn't come out of his budget. The surface irrigators were on board because they were being paid at a rate they couldn't refuse while retaining their ability to irrigate from groundwater wells if they had them and retaining their ability to sell the water again in future years, at the high rate. The NRDs were on board because they developed the plan and it put them in control. Yes, they had to pay a very high tax, which most of them would also have to pay personally, but they also got the ability to continue to irrigate at what they hope is nearly the same level they have been.

At the end of March, this group then came to the Senators with a water bill and said, “Here is what we want to do. We have all of the key players on board: NRDs, surface irrigators, DNR, and the Governor. True, at the beginning of the session, we didn't have any ideas; but now, we do. And, we will use your bill (LB 701), Senator Christensen. Please gut what you have in LB 701 and let us insert our language.”

On March 27, 2007, Senator Christensen decided it was better to adopt the language that the NRDs crafted and jettison what he had been working on and advocating. The argument the NRDs used was that if Senator Christensen didn't cooperate, another bill would be found, and, if he didn't cooperate with that, he would be responsible for the failure of the economy of the Basin. They also insisted that WaterClaim be excluded. The pressure came from all levels. It was well organized and intense.

The Senator felt that it was in the best interest of the people that he not only adopt the NRD version but to become its champion. WaterClaim was excluded from involvement with the creation of the NRD’s version of LB 701, which now sits at a stage in the Legislative process where it will likely become law.

The Senator's decision alienated many of the people who voted for him and who helped him win the election. Some of the individuals on the NRD boards in his District had campaigned against the Senator in his election bid, yet the Senator decided that it was best to adopt the NRD proposal as his.

The Senator should be commended for being willing to make a stand, even if it disagrees with his key supporters and agrees with those who worked against his election. It was not an easy decision. He is also aware that a sense of betrayal is intense in the District. The reason the anger is so great by his closest supporters is that they feel that he could have achieved a different outcome that was more in line with his original proposed solution if he had chosen to. His supporters knew it would not be easy for him in Lincoln. But, they had built up their hopes on the promises he made during his campaign. It really is a matter of perception. The supporters know he tried. But, what they feel they will never know is whether or not if he had tried just a bit more, could he have succeeded. They wanted him to try. He was seen as strong-armed by a group of water policymakers and having switched sides without ever presenting a "better" solution to the full Legislature.

At the same time, the adoption of any bill, even if it is not liked, is supported by many farmers. Most feel that any bill, even one that has huge new taxes, is better than being shut off. That doesn't mean the bill is the best version or even one that has the support of the people. It means that it is probably better than nothing.

Right now, the residents of the Basin are having a gun held to their head and told that, “if you don't drink the cup of poison, you will die now.” A rather persuasive argument. So, you drink the poison and hope the antidote is nearby. At least you bought yourself some time, maybe. There was a move to require a vote of the people as to whether they support a bond or not. But again, such doesn’t seem like a real choice. “Choose the prescribed poison, or lose all of your water and let the District die.” A vote, in this circumstance, would have only allowed the elected officials to shift responsibility from themselves to the voters. A more fair solution would have been to present the public with various ideas and let them have input on the solutions they prefer to make happen with their tax dollars. It is a matter of power. Who gets to determine the make up of the offered drink? Providing the public with only one option allows for much more control than to let the public choose from several different options.

The primary differences between the NRDs and the supporters of the original water bill (LB 701, as originally written) are philosophical. How does the process work? Should ideas be crafted in secret with little public input, or should they be developed in the open where everyone can point out the flaws and make it a better policy? The closed process won the day. The NRDs agreed to provide large amounts of cash to the surface irrigators; and the State agrees to allow this process, since it doesn't have to make any major financial contribution unless the plan fails.

If this plan works, it is largely to the credit of the Republican River NRDs and, specifically, to the URNRD executive board for their ability to craft a solution that might work. If the plan fails, it is also the NRDs that deserve the credit.

We will not know for a year or two, or potentially even more, if this works or doesn't. Each NRD is on its own. Each NRD can succeed or fail on its own. If they fail, the entire State fails and they will drag every NRD in the State down with them. If they succeed, then they will do so without much glory, as the route they have chosen will have very high taxes, the purchase of water rights from people who didn't want to sell, and a continued reduction of allocations for irrigators.

The reason officials prefer the closed process is that it reduces the amount of criticism they take. It reduces the number of people they have to listen to. It reduces the opposition. It makes it possible to change one’s mind without being ridiculed. It makes it possible to do things without someone holding you accountable. The desire for secrecy is common, all the way from a local community board to the highest office in the Nation. It is the way humans work. But, just because individuals prefer to hide, it doesn't make it the best way to do things.

Another reason for secrecy and package deals is that many elected officials do not believe the masses are educated enough to make an informed decision. And, it is true in some circumstances. Many people don't attend meetings. They don't participate in the discussion until after the decisions are made. Sometimes, they don’t comprehend the subject because they don’t like to read or because they haven’t attended informational meetings. From the elected official’s viewpoint, after repeating yourself too many times, it does become very tempting to just ignore the public and do what needs to be done. Yet, for the sake of the Republic, it is necessary to go through the process properly so that everyone has a chance to participate if they want to.

At the same time, it goes the other way, too. Here, the NRDs didn't believe the Senators cared enough or had enough time to understand all of the details. So, they brought a package deal to the Legislature. What Senator would want to understand the intricacies of commingled wells; carryover; why there are 2 year, 3 year, or 5 year averages that overlap; etc? The only problem is if one of those people who don't share the agenda of the "in group" dares to speak up. Doing so might unravel the entire package. The “carefully-crafted compromise” is put at risk by anyone who points out some of the problems that were "overlooked" in the development of the plan. By doing things in secret and excluding those who don't share the agreed-upon agenda, there is a high risk that one of these outside parties will speak up and cause problems.

So, how is that uncontrolled party tamed? It depends on how strong the party is. If they are strong enough, they have to be brought into the group and their concerns have to be incorporated into the package, such as what happened when concerned Senators were brought into the group on April 18th, just before the NRD version of LB 701 came up in Select File on the Floor the next day. If the uncontrolled party is not seen as strong enough, they can be excluded, as WaterClaim was. Yet, even one person speaking the truth can cause a lot of problems for a prepackage deal. So, the parties of the agenda paint anyone who doesn't agree with them as the problem: “Their numbers are bad. They are radicals. Nothing they say can be trusted. They will never compromise.” It is a whisper campaign where they attempt to tarnish the credibility of those who don't agree with them. It is how politics is played. It is dirty; it is ugly; and, it is done even by people who sit on the NRD boards.

Even though the NRDs, in close cooperation with several State employees, created this last version of LB 701, it will be Senator Christensen's name that is on it for years, just as Senator Schrock's name is associated with LB 962. Today, Senator Christensen has his name on this bill. He knows it is not popular, especially with the people who voted for him, but he feels that this was the solution for the District’s sake. In my opinion, LB 701 is not now the least expensive nor the most efficient solution. It is, however, the solution that the elected representatives of the Basin chose.

LB 701 shifts the power to the NRDs. Their budgets will multiply. Their authority will multiply. The NRD seat will become one of the most important elected seats in the region. The policies the NRDs set will have far-reaching economic consequences. Some towns will thrive and others will lose, depending on how the NRDs decide to do things.

While the NRDs have been dominated by irrigating farmers, that may change. The increase in responsibility will attract people with different interests. District boundaries will become very important and will likely change to protect certain people. Election procedures, which are very different from NRD to NRD, will play a factor.

Reviewing the process of the water bill, one can see that the decision on water policy was not made by the Legislature. It was made by a subset of the NRD board members in the Republican River Basin that obtained support for their version of the solution from the Governor and the surface irrigators by structuring the money in a way they could support. That was, then, brought to the Legislature as a package deal, which the Legislature was asked to approve. When almost all of the water policy makers are saying, “Please do this,” the Legislature isn't likely to refuse them. The key to getting any legislation passed is to get all of the "players" on board.

If you like or don’t like what has happened, then just keep in mind that who you elect is of extreme importance. It isn’t so much what they say they will support or not support. What matters is their personality and how they make decisions. It is who they surround themselves with and who they listen to. Elections matter. Letting your voice be heard, at the local and State level, is important. And, continue to do so. Don’t give up. Strengthen your voice by joining with others with similar beliefs and work together to make things happen the way you think they should happen. Politicians tend to listen to groups more than they do individuals. And, if you don’t feel like your elected officials are listening, then let them know you will elect someone you think will do so and continue to do so once in office. Yes, you will be burned by politicians, but we have a better form of government than most countries. We have the ability to vote and to communicate with them, in a variety of ways, once they are in office.

April 19, 2007

LB 701 Passes 2nd Round

Mark Christensen's water bill LB 701 passed the second round today on a voice vote. It must also pass final reading and be accepted by the Governor but both of those things are highly likely to happen.

The Amendment

Point 1 tries to make it clear that the Legislature has no intention of having this set a precedent regarding compensation for reductions in water allocations. This is economic aid only and is not done because it is required. It is an act of support only.

Point 2 requires the NRDs to answer within 45 days any questions the Natural Resource Committee might have as to the NRD plans.

Point 3 requires that any acres that can be irrigated with both surface water and groundwater wells be restricted on their groundwater allocation if their surface water is purchased. This goes into effect after the 2007 irrigation season.

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The Legislation allocates 4 million dollars to vegetation control. How the money will be spent will be decided by a task force. The NRDs or others can apply for a grant that will allow them to use to manage vegetation.

The most important part of the bill is the authority given to the NRDs to levy a property tax and occupation tax and the authority to float bonds. That tax can be collected beginning May of 2008. It allows for both a $0.10 per hundred dollars increase in property tax and a new occupation tax on irrigated land of up to $10 an acre. The bonds can be used to commit to large multi-million dollar projects.

The DNR has made it clear that it will seek additional allocation reductions for the next Integrated Management Plan that also begins in 2008. The NRDs have publicly agreed to make unspecified reductions.

The Legislation does not address the existing accumulated overages of 136,000 acre feet. It assumes that this will be sufficient money for the NRDs to keep the State in compliance on an annual basis.

The NRDs and the DNR now have the authority to raise funds to work on the problem via other methods besides just reducing the amount of irrigation. The Republican River Basin NRDs have been given great authority and responsibility. Most of LB 701 was drafted in secret without public input or review. Because that method worked well, there is a fair chance that the integrated management plans and the negotiations between the NRDs and the surface irrigation districts will also be done in secret. It is likely that hearings will be held only after most of the decisions have been made.

The people receiving most of the benefits will pay the vast majority of the costs. The cause of the problem has not been addressed nor does it appear that it will be addressed.

The NRDs now run the show. If you don't like what they do, then you need to get elected to the NRD board. It is about the only way you can affect what happens.

April 18, 2007

Water Bill Already Decided

About seventeen Senators met today to go over the water bill and discuss how the debate will proceed on Thursday. The Thursday debate on water will likely be of everyone complementing everyone on how hard they worked to put the compromise together.

There will be minor adjustments to the existing bill. Oversight will be added in the form of directing the Natural Resources Committee to do what it is already charged with doing. There will be a couple of studies done this summer. Studies are the Legislature’s way of saying they will delay a decision on something. You can usually tell if there is any intention of doing anything real by who gets appointed to the study group, so keep watch of that.
The NRDs will be given the authority to buy irrigated land and retire the irrigation.

The NRDs wrote this bill. The NRDs have portrayed what they developed as having wide support. The Governor was on board because most of the costs, over 90% of the long-term costs, are paid for by a tax that doesn't come out of his budget. The surface irrigators were on board because they were being paid at a rate they couldn't refuse while retaining their ability to irrigate from groundwater wells, if they had them, and retaining their ability to sell the water again in future years. The NRDs were on board because they developed the plan and it put them in control. Yes, they had to pay a very high tax, which most of them would also have to pay personally, but they also got the ability to continue to irrigate at what they hope is nearly the same level they have been. Note that Ann Bleed has repeatedly stated that lower allocations will be required. Few irrigators want to believe her.

If this plan works, it is largely to the credit of the Republican River NRDs and, specifically, to the URNRD executive board for their ability to craft a solution that might work. If the plan fails, it is also the NRDs that deserve the credit.

We will not know for a year or two, or potentially even more, whether or not this works. Each NRD is on its own. Each NRD can succeed or fail on its own. If they fail, the entire State fails, and they will drag every NRD in the State down with them. If they succeed, then they will do so without much glory, as the route they have chosen will have very high taxes, the purchase of water rights from people who didn't want to sell, and a continued reduction of allocations for irrigators. I figure the reductions will possibly be in the neighborhood of ½ to 1 inch less water for the next three year period. But that will be decided by the IMP process over the next several months.

The NRDs are the new power brokers in town. LB 701 shifts the power to the NRDs. Their budgets will multiply. Their authority will multiply. The NRD seat will become one of the most important elected seats in the region. The policies the NRDs set will have far-reaching economic consequences. Some towns will thrive and others will lose, depending on how the NRDs decide to do things.

How can the citizens be involved now? Make sure the NRDs are going the direction you want them to go with your tax dollars. Give them feedback. If you don’t feel like you and your neighbors are being listened to, work to replace Board members. Also, write/call those assigned to oversee their actions. Work together, as citizens with a unified voice, via organizations such as WaterClaim. Learn the facts and help to educate your friends and family on these serious water issues. One of the best sayings on our Capitol building is this one: "The salvation of the state is watchfulness in the citizen."

April 17, 2007

Carryover

The Upper Republican NRD (URNRD) has, for years, encouraged water conservation by allowing something called, “carryover.” The idea is that a farmer will use less water in total if he knows he is rewarded for saving water. The reward is the ability to access that water when it is needed.

For example, you have a budget of 100 units a year. If you lose everything that you don't spend, then you have a strong incentive to use all 100 units, even if you don't need to. If, however, you are permitted to store your savings for a time when you really need them, you will use less in total.

The concept has proven to be very successful at reducing total water usage. Many farmers are very conservative and like to save. Many farmers have worked hard to reduce water usage by rotating crops, by stressing the crop early by giving it less water, by immediately turning off the water when it rains, by using more efficient distribution systems, and by utilizing many other water saving techniques. So, over time, many farmers have used much less than their allocation and built up large carryovers.

Some people look at the large carryovers and see them as a potential liability that must be removed. In reality, their fears are misplaced and more water will probably be used if the carryover mechanism is removed. The carryover concept has allowed the URNRD to use less water, as a percentage of crop need, than any other NRD in the State.

Carryover is an extremely valuable tool that should remain in use. It is not abused for several reasons. One, is because it would be very expensive to do. Two, it isn't responsible. Three, farmers are in this for the long term. Farms usually pass from generation to generation. Having a reserve to call on in droughts is essential.

Because pumping from wells does not have an effect on the stream until many years after the water is pumped, the amount of water pumped in any one year has little relationship to Nebraska’s ability to comply.

The very large amount of carryover water that is on credit in the URNRD is a testimony to how successful farmers have been at using less than their allocation. Very little of that carryover will ever be used. Removing the carryover process will increase the water usage because you have removed one of the most important incentives that farmers have to use less; and he will, instead, be encouraged to use his full allocation each year.

The chart shows the amount of water pumped by groundwater irrigators in the Republican River Basin, according to the DNR. It also shows the depletions to the stream charged to groundwater irrigation, according to the computer simulation that is used to measure Nebraska’s compliance. The depletions are what matters. As can be seen, the amount of water pumped has little relationship to Nebraska’s ability to comply. Thus, allocation reductions are nearly meaningless until many years later. 1993 is the best example. It was a very wet year with little irrigation needed. Even though pumping was dramatically less, the depletions to the stream caused by irrigation were not effected in a way that can be seen for decades. At least that is what the computer simulation says.

View chart

April 15, 2007

The Problem Summarized

This is a word document that you can download and read. I will try to get it up in a PDF format sometime as well. It is a long write up but if you take the time to read it you will probably have a pretty good idea of what has to be done to fix the problem and what allocations for the farms will need to be to make things work. You may need to zoom in to read the graphs.

The Problem Summarized

LB 701 Second Hearing Testimony

This is the official copy of the hearing testimony

April 14, 2007

The Obvious

It may seem obvious to most people that the amount of water pumped from the ground by an irrigator is related to how much rain fails. However, you will often hear someone complimenting the irrigators for how much they have done to reduce usage, how they are doing their part. They should actually be thanking the good Lord. Farmers pump the water they need, nothing more. It is too expensive to waste water. The amount of water that was pumped in the last three years was down because there was more rain at the time the crop was growing. If there is less rain in future years when the crop is growing, there will be more water pumped and that doesn't mean the farmer is or isn't doing his part to help. The amount of water needed is controlled by the weather.

View Chart

April 13, 2007

Chambers on Water

There is an excellent blog called PagingPower. I am impressed by the work they do. I encourage you to visit their web site.

Paging Power captured and spliced clips of Ernie Chambers on the subject of water. It is worth listening to.

Video Clip

April 12, 2007

Water Transfers from Canada

Apparently, there are some people in the US Government that believe we need to import water from Canada into the US to help replenish the Ogallala Aquifer.

Story in the National Post

Over and Under Our Allowance

This presents a different way of looking at how much trouble Nebraska is in. Notice that there were multiple years that saw a large enough allocation to eliminate the existing accumulated overages.

View image

It is very important to note that the drought is blamed for the existing drop in allocation but consider this chart carefully before you make that conclusion.

Kansas Comments on Republican River

The Blue Valley Sun reports on Kansas Attorney General comments on the Republican River

200,000 acre feet

You will often hear a 200,000 acre feet number quoted in the press about how much Nebraska is or might be over by end of the 2007. The below numbers are more accurate.

Amount Nebraska is over its allocation

Year___Overage___Note
2003___(25,420)
2004___(36,640)
2005___(42,325)_____Not finalized, in dispute over 500 Acre Feet
2006___ (32,324)____Unofficial, preliminary results
Total__ (136,759)____Four year accumulated overage

There is also an 8,700 AF error that Nebraska believes is in its favor. If it can persuade Kansas to agree that will be credited to Nebraska. The error was also present in prior years but the DNR does not believe that it can get credit for the previous years because it has already agreed to the final numbers with Kansas.

It is important to note that the error was brought to the attention of the DNR a couple of years ago but it was not until recently that the DNR agreed that the error was present.

This means that Nebraska may not try to get credit for the error present in the 2003 or 2004 numbers. It probably will try for the 2005 and 2006 years because those are still open.

April 11, 2007

701 Wednesday

LB 701 was voted on today and passed the first step. It goes from General File to Select File. There are two more steps. These are Select File and then Final Reading. If it passes those next two steps and the Governor does not veto it, then it becomes law.

Senator Flood and Christensen said on the floor today that they expected amendments to deal with accountability, co-mingled wells, the price paid for surface water, and a clear statement of what the Legislature intends to do and to point out that the State could take the water without compensation but that it is providing or allowing compensation because it wants to help keep southwest and south central Nebraska alive.

Select File debate will happen in a few days, perhaps some time next week. I expect that debate will be much more interesting than what has been heard so far.

Senator Chambers said that he didn’t believe the farmers had a right to the water. The water is owned by the State and that the farmers are stealing it from the State. He believes the water should be sent to Kansas without compensation because the gaters are bad abusive people for putting a burden on the State and then expecting a hand out. That is the short version of his dislike of irrigators. He obviously misunderstands some things.

The good news is that a lot of urban Senators recognize the problem and want to help. Their willingness to help is very appreciated.

It is my belief that a water bill must pass this Legislative session. While I do not like the current version of LB 701, I believe that if it is amended to include some of the things that we have suggested, such as accountability, assurances that the NRDs will cooperate for a long term solution, that the problems we have found in the Model are rectified, and that good reports and forecasts are made public, that we can support the Legislation.

If the Legislature fails to take action this year, I believe the consequences for the State and the residents of the Basin could be catastrophic. Even bad Legislation may be better than no Legislation.

In 2005 Colorado paid Kansas $35 million on a water dispute similar to the Nebraska/Kansas dispute. That amounted to $82 an acre foot for the water plus interest. Inflation would push that cost higher.

Nebraska is currently 136,000 acre feet over the amount of water it is allowed to use. Deciding what dollar amount to multiply the 136,000 acre by to guesstimate the amount Nebraska might owe is difficult. The Court could use any of a number of different rates. In 2006 Nebraska paid Bostwick Irrigation District $960 an acre foot for water. If that number is used, then the cost could be as high as $103 million. If the CO/KS number of $82 is used, then the amount might be as low as $11 million. But even more important than the damage dollars is the economic costs if a judge orders the shutdown of some or all irrigation wells. The input costs on irrigated corn are about $625 an irrigated acre depending on a lot of variables. The input costs for dryland wheat are about $150 an acre. Converting from irrigation to dryland removes about $470 an acre in economic activity of which about $200 of that would have stayed in the local community. Most of the economy is based on the economic activity associated with irrigation. Remove irrigation without compensation by an order of the Legislature or the Judge and there are wide scale bankruptcies not only of individuals but of public institutions.

It is important that Nebraska take aggressive steps toward solving this problem and reducing the future economic costs. It is important for both the Basin and for the State. Both have a great deal at risk.

April 10, 2007

Tuesday – The water debate began.

Tuesday – The water debate began.

Mark Christensen did not vote for LB 701 to come out of committee because he felt that the things he needed to be in the bill were not in it. On Tuesday, he proposed an amendment to address his concerns. The Legislature voted to adopt his amendment 957 today. This amendment includes everything that Mark says he needs to be satisfied with the bill. Amendment 957 says that the NRDs cannot issue new bonds after the year 2023.

Mark Christensen now asks the Legislature to support the NRD amendment and asks that the Legislature adopt their version of 701.

The Committee Amendment, which is what the NRDs wrote, was divided into four pieces. This allowed four different Senators to carry the bill or to specialize in each of those four sub-areas.

Open Christensen
Amd 962 Flood - deals with per acre fees and bonding
Amd 963 Heidemann - taxing
Amd 964 Louden - DNR cleanup and surprise moratorium
Amd 965 Carlson - vegetation
Close Christensen

All parts need to pass to have the Bill go forward.

The Legislature adopted 962
The Legislature debated 963.
964 and 965 are slated for Wed discussion.

It appears to me that the NRD version of 701 is likely to pass the first round without modification. The second round is called Select File. There will probably be several serious amendments at that time. I have an idea of what some of the Senators want, but am not sure what the actual amendments will be.

There is a lot of verbal support for the idea of having the NRDs be accountable for the new taxing authority and causing them to cooperate; but I get the sense that the Legislature will trust the NRDs to deal with the problem with the understanding that, if they fail, the consequences will not be pretty.

From what I can tell, the effects of conservation, the problems in the Model, the percentage split between the State and the Basin, accountability, the requirement that there be a long term solution, etc are not being addressed in the current version of 701.

WaterClaim Suggestions

This is a copy of what WaterClaim has given to the Senators for their consideration.

This opens as a MS Word document

April 09, 2007

Showdown

On Tuesday, the Legislature takes up the debate on water Legislation. The Speaker has set aside up to eight hours for debate of the issue. There may be a number of amendments. There may not be. There are a large number of new Senators with almost no experience in water issues. Most have not even seen the Bill nor the Amendment until Easter weekend. Most will read the Bill and amendments on the floor during debate.

One of the first things 49 Senators will do is vote to decide whether they should adopt the Committee Amendment. The focus will be on Senator Mark Christensen. He didn’t vote for the Amendment as it came out of Committee, and everyone will want to know why. They will want to know what he wants in order to make the Bill acceptable.


The answers he gives to these questions will determine the direction and fate of the Bill. There are some who are hoping that he will simply decide to accept the Amendment that was written without his input or involvement. There are many in the District who hope he will work toward changes to it.

Being able to watch from here in Lincoln, it appears to me that the Committee Amendment was written by Dean Edson (representative of all NRDs in the State), Jasper Fanning (representative of the executive board of the Upper Republican NRD), Dan Smith (manager of the Middle Republican NRD), Jody Gittins (legal counsel for the Natural Resources Committee), Dave Cookson (Special Counsel to the Attorney General’s Office), Senator Langemeier, and Governor Heineman and his agent, Ann Bleed, director of the Department of Natural Resources. There were several other people who had occasional input, but these are the primary writers of the Amendment. This Amendment was written in secret and not shown to Senator Christensen until March 29 th, when it was posted for the public to see on the Legislature’s web site.

Since that date, Senator Christensen has attempted to incorporate a few changes, such as a sunset of two years on bonding authority if a long term surface water buyout is not in place by then. He has asked for the language be removed that gives the DNR authority to set the depletions allowed by each NRD . He has asked for there to be a limit to the amount of money via property taxes and per acre fees to be collected to the equivalent of $10 per irrigated acre. There were several other requests as well. The writers of the Amendment rejected his requests.

This puts Senator Christensen in a very difficult political position. His political life and the economic future of the Basin is very dependent on what he says on Tuesday. Will he be able to cause or persuade the Legislature to agree with any of the things he wants to see in the Bill or will the writers of the Amendment be able to push through their version of how things will work?

Senator Christensen is under a tremendous amount of pressure. I have described it as 50 people with guns to his head, all telling him that if he doesn’t vote the way they want, they will pull the trigger. No matter how he votes, someone is not going to be happy.

It is his job to represent the people of the Basin as he sees fit. I have my opinions on how we got to this point and what I would have done to change the path that got us here. I am a believer in an open process. I think there is better acceptance of difficult things and decisions when the public is allowed to participate each step of the way. Currently, the NRDs and the DNR do not agree that is how things should work. They prefer to come up with their solutions and then go get public comment as the law requires. Not that the public input means much at that point. But, at least the formalities were followed, and there is the potential that someone might have an idea that could be incorporated.

If you want the process to change, then you have to vote for people who believe in an open process, at the NRD level as well as other positions.


LB 701 Second Hearing Testimony

For those that want to know what was said during the second hearing on LB 701.

Hearing Notes

April 06, 2007

WaterClaim on 701

WaterClaim believes that there needs to be several significant revisions to Amendment 938 to Senator Mark Christensen’s water bill LB 701 before we can support it. WaterClaim will work with the Senators to find adjustments that can make the amendment workable. Amendment 938 is a committee amendment and was written by the DNR and NRDs. The amendment was adopted by the Natural Resources Committee on April 4. Senator Christensen did not vote for this amendment and will work to change and improve this amendment that he did not write.

Amendment 938 combines several water related bills into one. It includes Senator Carlson’s vegetation bill, the DNR technical cleanup bill, permits surprise well moratoriums, and most importantly, bonding and taxing authority for the NRDs.

WaterClaim has proposed a number of feasible solutions that are less expensive and less disruptive than permanently buying surface water. Buying out surface water on a year to year basis may work but will be very expensive and could potentially fall short of achieving compliance. While WaterClaim does not like this solution because it puts almost the entire burden on the local basin and is much more expensive than the solutions WaterClaim has supported, it may be the only option that is politically acceptable at this time. The NRDs rejected the less expensive solutions which would have included much greater State financial support and required them to work together.

Amendment 938 is what each of the three Republican River Basin NRDs have voted to support. It gives the NRDs maximum flexibility and the ability to raise enough funds to potentially solve the problem without State support. They feel this is the best route because they do not believe we can trust the State of Nebraska to contribute any significant financial amount toward achieving compliance with the Settlement Agreement that Nebraska made with Kansas.
There are still many unknowns. The NRDs haven’t decided if they want to do a surface water purchase, pump water into the stream, cut down trees, or shut off irrigation close to the stream. The NRDs appear to prefer a year to year purchase of surface water, followed by the development of well fields within the Basin that could pump water into the stream – potentially lowering the aquifer in those areas and increasing the problem for a future generation. They call it retiming.

It is possible that the NRDs will choose to do a long term lease of surface water. At the moment, they are not sharing their intentions with the public so that they may more easily maintain all options.

The share of the financial contribution by each party depends on the time frame one looks at. Under the NRD amendment, in year one, the State would contribute 8 million and the Basin would contribute nothing; however the Basin would impose a tax to be collected in 2008 that could raise as much as $14 million. In year two, the State would contribute about $6 million and the Basin up to another $14 million. From then on, the Basin would contribute almost all of the money. If a long term, 20 year bond is floated, then the Basin would repay that bond with the per acre fees and property taxes they are allowed to collect, making the basin’s total contribution in the neighborhood of $200 million vs. Nebraska’s contribution of about $15 million. The NRDs will report about a $60 million dollar purchase, but that does not include twenty years of irrigation district operations and maintenance or interest or well field operational costs.

Some numbers that might help put this into perspective. If the NRDs collected the full taxes allowed, $10 an irrigated acre and $0.10 per one hundred on property taxes, then a 1,000 acre irrigated farm would pay about $12,000 new taxes. A 1,000 acre dryland farm would pay about $500 in new taxes. A $100,000 home would pay about $100 in new taxes.

WaterClaim believes that the State should pay a much higher percentage but realizes that it may be impossible to force the State to do that. It will be especially hard for Senator Christensen and Carlson to persuade the State to pay more when the Basin NRDs have offered to pay at such a high level. The NRDs wrote this amendment without the involvement of the Senators and did not let them see it until a week ago.

In defense of the NRDs, most of the farmers that irrigate have said they would be willing to pay the high taxes in exchange for seeing the problem go away. Indeed, irrigated farmers will pay far more than everyone else; however, there is no guarantee that the problem will go away. In fact, the DNR has said lower allocations will be required, even with these large scale projects. In order to get the bond, the people who are willing to write the check for $60 million say they will only accept payment from taxes collected via property taxes because they have never seen a per acre tax before and want at least two years of history of per acre fees before they will accept that form of payment.

WaterClaim has many concerns about the NRD amendment. One critical concern is that we think the NRDs must work together for the benefit of everyone in the Basin. The NRDs promise to do so but have a history of doing otherwise. We would like assurances that they will work as a team. We believe they must be accountable, and they need to demand written assurances that what they do will solve the problem long-term.

WaterClaim has found errors in the Model. We think there are several significant errors. We are asking for an audit by an independent party to look at the problems we have found. We are asking that conservation be addressed. We are asking for better reports and forecasts. The NRDs and DNR chose to exclude those things from their amendment.

The NRDs, the Governor, the DNR, the Attorney General’s office, and Farm Bureau are working together with multiple lobbyists to persuade the Legislature to adopt amendment 938. WaterClaim is lobbying for amendments to include some of the protections and assurances that would better represent the interests of the Republican River Basin.

April 05, 2007

Water debate

On Tuesday morning, April 10, the Legislature will begin to debate LB 701. You can watch the debate online via webcast. Session starts at 10am central time. You cannot start watching early.

For those of you that have the time, I expect it will be very interesting. Hopefully, the State's servers can provide a stream to everyone that wants to watch.

April 02, 2007

CNPPID prepares for legal action

Central Public Power and Irrigation District voted today to begin preparation of administrative actions against the North Platte NRD regarding groundwater irrigation effects on surface water flows. The actions will not be directed at individual groundwater irrigators yet. CNPPID will wait until its June 2 meeting to decide whether to file suit.

LB 701 Amendment 872

WaterClaim believes that there needs to be several significant revisions to Amendment 872 to Senator Mark Christensen’s water bill LB 701 before we can support it. WaterClaim will work with the Senators on the committee to point out those problems and will work to find adjustments that can make the Amendment workable. Amendment 872 was written by the DNR and NRDs and being proposed under senator Louden's name.

In general, the problems with the Amendment include the following:

1. There is no provision to assure that, even with all of the money the tax payers of the Basin are being forced to pay, this will resolve the problem with Kansas. The NRDs are not held accountable for how they spend the largest tax increase in the history of the Basin. It is possible that they can spend the money on things that will not fix the problem.

2. Over the 20 year bond period, the cost to the Basin will be somewhere in the neighborhood of about $200 million and to the State about $15 million.

3. Ann Bleed has said that, under all scenarios, the irrigators of the Basin will be required to reduce their allocations. It doesn’t matter how much water is purchased, irrigators must still reduce allocations on top of all of the other things they have done and are doing.

4. The NRDs of the Basin are encouraged to fight each other for lower costs and a greater share of the water. The amendment should work to reduce or eliminate problems, not create new ones.

5. There are major unanswered questions in the computer simulation that is used to govern the Basin. We believe these questions highlight probable flaws in how the simulation was designed. If the flaws are corrected, everything this bill allows to happen will become moot and may even create more problems.

6. There is nothing to stop new declines in run off to the stream by new conservation practices that the State helps facilitate.

7. The residents in the Basin have done everything the State has required of them and yet they are being asked to pay more than 90% of the costs plus make significant changes which reduce their ability to pay.

WaterClaim believes that there is yet time to address these major shortcomings and create a bill that will satisfy the requirements we have to Kansas.