Water Rights

[Aggrad02]

http://www.theeagle.com/stories/061207/texas_20070612039.php

This article is from my local newspaper. I talks about the coming water shortage in west Texas (and most of the west for that matter).

Texas considers the water underneath a property (groundwater) to be apart of the property. This has led to formations of water marketing companies who buy up the "water rights" (same as mineral rights, but for water instead of oil and gas), and plan on pumping and selling the water once it becomes too scarce. Texas passed 'capture' rights more than 100 years ago, which allows property owner to pump unlimited amounts of water below their property. Some of these companies have vast rights over the Ogallala Aquifer (the world's largest including 8 states) and the Gulf Coast Aquifer.

So here is the problem.

One one hand, property rights state that the companies can pump unlimited amounts of water. And they have paid for this property. So should they be allowed to capitalize on their investment and start pumping as much water as they can to the highest bidder?

On the other hand, when these water laws where passed, there was no scientific evidence that water is limited or determination about its origins. Since the passing of these laws we have learned that water in these aquifers is limited and that even though they renew themselves, they are not renewing themselves at the current rate of extraction, which means at the current rate (and increased rate once these marketing companies find a buyer) the water will eventually run out. Also, does the unlimited pumping rights of the people in Texas infringe on the water rights of other people from other states that may not use as much water. If the companies in Texas pump extraordinary amounts of water, this will be "taking away" from the water under other people's property.

Would a law that limits the annual amount of extraction of water to a ratio between annual renewal volume of the aquifer and acreage of land over an aquifer, be seen as infringing on the rights of the companies that have invested under the old rules.

Also whether these companies are able to keep their pumping rights or not, how are they going to handle the negative public opinion of increasing water prices? People would go out of their mind if they had to pay as much for water as they do for gas. And if farmers in Kansas and Nebraska couldn't pump anymore water because of the unlimited pumping of the water marketers how would that effect the economy?

Let me know your thoughts,

Dustan