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About The daily Astorian. (Astoria, Or.) 1961-current | View Entire Issue (Nov. 2, 2019)
B5 THE ASTORIAN • SATuRdAy, NOvEmbER 2, 2019 Water: ‘We don’t know what’s going to happen in five to 10 years’ Continued from Page b2 River, whose mission is to aggressively pur- sue water solutions and find new supply for the basin, approved the company’s original trust water rights agreement in 2016. Peterson credited Tom Tebb, the office’s leader, for helping develop his concept. “We’re trying to facilitate the movement of water to its highest, best use,” Tebb said. Other parts of the agency have closely scrutinized Crown’s water transfers, over- turning local water decisions that were favor- able to Crown. Ecology also opposed par- ent company Crown West Realty in court when it attempted to place millions of dol- lars of water into trust from wells at another of its real estate holdings, a Spokane indus- trial park. Crown’s activities have stirred internal debate within Ecology. “Overall, I think it is not a good sign that our Trust/Banking programs attracted Wall Street attention,” wrote Ying Fu, of the agency’s Spokane office, in an email thread about Crown Columbia’s Methow deal. Fu expressed concern that profits would be made on water held in “state sponsored ‘banks.’” Dave Christensen, Ecology’s water resources policy and program development manager, last winter commissioned the Uni- versity of Washington’s Evans School of Public Policy to study water marketing. “We are hearing (and have) concerns that continued aggressive acquisition and market- ing will cross the threshold into outright spec- ulation (if it hasn’t already gotten there),” Christensen wrote in a memo to staffers. Christensen said in August the agency was investigating whether the trust water-rights program was contributing to potential spec- ulation or being used for purposes outside of the Legislature’s original intent to improve stream flows and to allow water-rights real- location. The department also is evaluating water banking, he said, and would make pol- icy recommendations on the programs next year. Jewell, the policy adviser for Washing- ton’s counties, said he grew concerned over how water markets were operating in his last job as a Kittitas County commissioner. In his county about a decade ago, as develop- ment boomed, local, private water markets were able to command high prices without much competition. Jewell helped the county start its own water bank to compete and lower prices. He said the Ecology Depart- ment needs to be more proactive as compa- nies acquire and consolidate resources. “Ecology has really been a spectator in watching these water markets develop, and I honestly think pretty naive, in not tak- ing a more active role in managing the sys- tem,” Jewell said. “If they don’t get ahead of this developing market, they could find themselves on the outside looking in pretty quickly.” She had worried for years that outsiders would come for the valley’s water. Crown’s draft application, published online, sought to transfer the ranching fam- ily’s water right to trust and allow for future water use from the Chewuch River, near Win- throp, to the mouth of the Columbia River, more than 500 miles downstream. The Lundgren Limited Family Partner- ship’s claim dates back to 1907, according to the legal notice. A 1910 agreement with the Chewuch Canal Co. allows the Lundgren partnership to transport water using the company’s canal, which snakes across the landscape for more than 13 miles and delivers water to about 185 shareholders with farms, ranches and homes in the Winthrop area. The draft application sought to place in trust the right to as much as 97 percent of the canal’s flow at any one point in time. After the local paper, the Methow Val- ley News, published stories about the poten- tial deal, “it was the talk of the town, at least in my circles,” said canal shareholder Betsy Smith, of Winthrop. Those circles have changed for Smith, who is a veterinarian and the matriarch of a sheep-ranching family. The construction of Highway 20 in the late 1970s, which spills past granite spires in the North Cascade mountain range, now connects the valley with Washington’s urbanized west side. A migration of money and burst of sec- ond-home construction amid the Methow’s dry Ponderosa pines followed, changing the complexion of the bucolic valley. The Methow has become a hub for climb- ers and skiers. In summer, tourists swarm the streets of Winthrop, carrying ice cream cones between the saloons and general stores fash- ioned as an homage to the American West. “The economy now isn’t necessarily based on agriculture,” said Casey Smith, 27, son and scion of BCS Livestock, the sheep-ranching operation. “It’s based on rec- reation and tourism. But it’s beautiful here because it’s a green landscape.” Still, many livelihoods depend on irrigation. An early May visit found those who work the land in the throes of “frantic springtime,” as Roger Rowatt, the president of the canal company, called the beginning of the irriga- tion season. Days before, Rowatt, a miller, farmer and cabinetmaker who sports a white ponytail and an arrowhead goatee that points to his chin, kicked off the frenzy when he opened a sluice gate on the Chewuch River, allow- ing water to flow into the canal and down to shareholders. “It’s a dry year,” said Brian Larson, a local orchard manager scrambling to fix a water pump before new trees arrived for planting. Dust settles in the Methow “Water is everything.” A few miles away, the Smiths were coax- Perhaps it’s the Methow’s beauty that has ing sheep into a neighbor’s pasture. protective valley residents spoiling for civic “We graze on all irrigated pasture. Without showdown. that, we wouldn’t have food for the sheep,” “There’s a history in the Methow of orga- nizing,” said Rob Crandall, a canal share- Casey Smith said. To him, water is a community resource. It holder who operates a nursery for native galls him that someone would try to remove plants. “You’re not going to steamroll us.” the “lifeblood” from the place he loves. “That’s their happy place,” Peterson said “We don’t know what’s going to hap- with an eye roll. pen in five to 10 years. Having water will be The community has doomed many a increasingly valuable as the climate here gets development project with serious financial warmer, drier and hotter,” he said. “One of backing, perhaps because the projects had the things that surprises me is that anybody serious financial backing. that would be from this community, and In the 1970s, valley residents fought embraces their com- plans for a ski resort. munity, would try to Over decades, oppo- ‘THE ISSuE IS nents wore down the sell their water rights Aspen Ski Co., ran a to someone far away.” NOT OvER. CROWN Like others, Rowatt Bellevue group out of fears water sold away $12 million and town, COLumbIA ANd will be removed from too, and then boxed PEOPLE LIKE THEm the Methow forever out a developer who because it’s more valu- had pivoted the ski ARE TRyING TO buy able for agriculture in project to a 560-home prime growing areas resort and golf course. uP EvERy dROP OF that can produce a The project was WATER THEy CAN higher yield for each ultimately doomed acre. over water rights. ANd mOvE IT OuT “To sell out water Once again, and dry out an agricul- Methow residents ral- OF THE vALLEy.’ lied. Dozens turned tural community to line Roger Rowatt | president out to local meetings the pockets of invest- of Chewuch Canal Co. ment bankers, yeah, about the Lundgren that bothers me,” he transfer. The canal said. company hired a Har- Water, a public resource, shouldn’t neces- vard-educated Winthrop lawyer, Natalie sarily go to the highest bidder, Rowatt said. Kuehler, to object for her “fiercely protec- Peterson says the community tive” community. misunderstood. Kuehler found the Lundgrens’ origi- The application reflected the Lundgrens’ nal claim was not filed with Ecology until historic water claim, not the amount of flow 1998. She wrote to the department, arguing Crown hoped to utilize, he said. Leaving the claim was junior to the canal and the riv- water in the stream would help Chewuch er’s instream flow rule, which is essentially River fish, he said. Water deposited with a water right for the river itself. Ecology agreed, making the water claim Crown could be leased or purchased by val- ley residents, too. much more likely to be restricted. “If they wanted to preserve a community “The monetary value took a deep dive,” asset, this is the way to do it,” he said. Kuehler said. He balked at concerns over Crown’s pri- This August, more than 14 months after vate-equity backing. Crown applied to put the Lundgren water “To say that somebody coming from New right into trust, Crown pulled out. York with money must inherently be a bad “The Chewuch Canal Company did win thing ignores the realities of everyday life this battle,” Rowatt said. “The issue is not anywhere in America,” he said. over. Crown Columbia and people like them Earlier this year, Don Lundgren, who are trying to buy up every drop of water they was attempting to sell the water right, told a can and move it out of the valley.” reporter he did not understand the interest in McCrea is now pursuing statewide legis- his water deal and declined to make further lation to restrict the ability to transfer water out of local watersheds, which could fore- comment. close Peterson’s dreams of a water market ‘Aggressive acquisition’ spanning much of the state. As Crown pursued water, the Ecology As the climate warms, few forecast water Department grappled with its acquisitions. decreasing in price. 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