New Mexico's Deep Ground Water Rush: It Still Flows to Money

So why would I think otherwise? More fun times in the Land of Entrapment.

I've posted about the rush to tap into New Mexico's deep (nontributary) ground water several times in the past few months: 30 December; 4 November; 13  November; and 26 November; and  17 August. I've broached some of the "unintended consequences."

Until now, most of the focus tapping this resource was the Rio Puerco Basin west of Albuquerque. But now, the 'gold rush' has spread to the Santa Fe-Española  area.

Here is Staci Matlock's story from the Santa Fe New Mexican. She reports:

On Monday [26 January 2009], five companies with undisclosed ownership notified the State Engineer that they intend to drill deep wells in the Santa Fe area and pump out up to 24 billion gallons a year [about 74,000 acre-feet per year].

In the last year, 18 companies have notified the state of plans to drill 190 deep wells and pump up to 345,000 acre-feet of water per year.

Wow! That's a lot of water!

A bill by Rep. Mimi Stewart (D-Albuquerque) is pending in the legislature to give the State Engineer authority to regulate these deep aquifers. Matlock reports:

While the state engineer is charged with managing New Mexico’s water, state law contains an exception — wells that tap into aquifers that start at least 2,500 feet below the land’s surface, contain briny water and are disconnected from upper aquifers.

The Santa Fe New Mexican opines about the issue and supports more authority for the State Engineer to regulate these new sources.  I agree.

They also warn:

There's already language in our laws protecting potable-water aquifers from being drained from below. But are there teeth in those provisions? Will deep-well legislation actually protect our state's most valuable resource, or will it turn into cosmetic reform? Rep. Stewart and her legislative colleagues must make sure it's the real thing.

The editorial also notes that of the five companies angling to drill in the Santa Fe-Española area, only one's true identity is known. The other four are hiding behind a New Mexico law that allows them to do so. Not good, folks.

Here is a flyer announcing a forum, Desalination: Silver Bullet or Pipe Dream?, to be held in Albuquerque on 21 February 2009 (thanks to Elaine Hebard).

Download Desal_meeting

"...It's time for transparency. Meanwhile, New Mexicans might freely suspect that these guys are sprawl promoters and water brokers, prepared to literally salt their drill holes like Old West mine-claimants were known to "salt" their diggings with specks of gold." -- Santa Fe New Mexican editorial, 28 January 2009 

Comments

[Michael]

Dear Paul and CJ,

Thanks for commenting.

I no longer recall what water goes for in the Albuquerque area. In 2005, when I was on the advisory committee of the Albuquerque-Bernalillo County Water Utility Authority, the ABCWUA had a standing offer to purchase water rights for about $6,000 per AF. That amount was generally believed to be too low.

Bill Turner, a local consultant, says that water now goes for $17,000 - $18,000 per AF.

One reason that developers are willing to risk all the uncertainties (costs) that will accompany desal is that pumping this deep ground water will not require one to purchase/lease surface water rights to offset the pumping. In New Mexico, SW and GW are managed conjunctively and all shallow (under 2,500 feet deep) GW is assumed to be tributary to SW.

So despite the current downturn in the economy, the developers still assume that there is an upside to growth, and the "go-go" days will return, so one's claim must be staked. I'm not so sure.

My concerns are the inevitable unintended consequences - not just the contamination and waste disposal issues, but of possible connections to SW/shallow GW that may not manifest themselves for some time after the onset of pumping.

[PAUL F MILLER]

Deep pocket$ do not only follow deep water in New Mexico those pocket$ are alive and doing exceedingly well in Arizona and I suspect throughout the West in particular. As I believe the author is aware – WATER – is the new oil, black gold, Texas Tea or whatever or colloquialism one might choose. Just as pursuit of oil profits exacerbated man’s aberrant behavior and exercise of greed, declaration and acceptance that – water – is only a commodity will provide that same venue.

[Chris Brooks]

I guess if NM had an ocean within reach they would talking about seawater desal to boost local water supplies, as we are here in Ariz.
What seems striking to me is the fact that everyone seems to be getting so excited about the speculators racing to exploit this resource who simply must be regulated in some way, when the only reason anyone is racing to exploit anything is because of the threat of impending regulation. If the state applies prior appropriation rules to this water those early applications might actually be valuable (will there be a brackish water bubble?).
But if left to the market, very little brackish water would be developed, if any, because of the cost and other factors - other sources are simply so much more cost effective (maybe I should check the current market for water rights in NM first, but I don't think I'm going too far out on a limb here).
What the state can, and should, do is carefully regulate the process of drilling into these deep aquifers to protect overlying aquifers; and regulate the desal and disposal process to protect other resources. That should drive the cost up sufficiently to make this water source uncompetitive with water transferred from other uses or gained by other efficiency measures.
This is not a cheap source of water that will be exploited in the near future if left unregulated - it's pure speculation on the part of some and the response of NM legislators is merely feeding that speculation.