Bostwick Purchase
The Beatrice Sun is reporting that the State is offering Bostwick Irrigation District $5.6 million dollars to not irrigate with surface water. Those with both groundwater and surface water will be able to continue to irrigate with the groundwater for 2007. If another deal is made in 2008, the new law would prohibit the irrigation via any method if the surface water was purchased. The NRDs oppose this clause in the law because they believe it will raise the price of water.
The price paid per acre foot of water is twice as much in 2007 as compared to 2006. $320 an acre foot as compared to $167 an acre foot last year. As the NRDs and DNR have chosen to ignore any alternative ways of staying in compliance the surface irrigation districts are in a position to set the price at whatever rate they please. The only risk they run by setting too high of a price is that the NRDs choose not to pay and hence running the risk that the State will fail to comply and that they would be shut off. So far, the NRDs have indicated that they are willing to pay much more than the surface irrigation districts are demanding.
The surface irrigators don't want to make a permanent sale and hence kill their golden goose. The State doesn't want to force the sale. As a result the NRDs will pick up the check for whatever the surface irrigators decide to set the price of water at. The NRDs have the authority to raise much more money than what is required by the surface irrigators at this time meaning that they can set the rate higher next year if more water is needed and there is little the groundwater irrigator can do other than pay.