The Water Report Nov 2005

• Year: 2005
• Title: The Water Report
• Author: Envirotech Publications
• Description: Issue #21
• Publications - Doc Type: Other

Issue #21 The Water Report
THE NOTICE OF ARBITRATION STATES:
Takings.
"From 1992 to 2002, Mexico captured, seized, and diverted to the use of Mexican farmers, an
investment (approximately 1,013,056 acre -feet of irrigation water) located in Mexico and owned
t by Claimants. By diverting Claimants' water to Mexican farmers, Mexico dramatically increased
Claim Against $ its irrigated agricultural production on the Mexican side of the Rio Grande, while the crops of
Mexico United States farmers in the Rio Grande Valley shriveled. Mexico thus treated the investments of
United States investors less favorably than it treated its own investors with respect to the
establishment, acquisition, expansion, management, conduct, operation, and sale or other
a. disposition of investments in violation of Article 1102 of NAFTA. Mexico also nationalized or
', expropriated Claimants' investment within Mexico, or took a measure tantamount to
nationalization or expropriation of such an investment, unfairly and without compensation and due
s' process in violation of Article 1110 of NAFTA."
The arbitration is expected to commence early in 2006.
Lower Rio Grande Valley _
Service Area of Irrigation
H d @lgo County I _
arsuw
Texas
s.urna
lNllecy County
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y
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Mexico
npr. Inv aaee,.9,r a: c«x <,:ure�rehwti
n >nsA a.ee<atdsysig<b - �a�.roa
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CONCLUSION
Cameron Cetmt�
j
Water allocation is increasingly a zero -sum game with winners and losers in the competition for this
scarce resource. Although water districts and water users may not be able to stop governments (domestic
or foreign) from appropriating their water, districts and water users may have damages remedies based on
the US Constitution, contract, or (in one case) international treaties. This is a quickly developing field of
law which water users should follow closely.
FOR ADDITIONAL INFORMATION:
ROGER MARZULLA, Marzulla & Marzulla (Washington, DC) 202/ 822 -6760 or email: roger @marzulla.com
Roger J. Marzulla is one of the nation's leading authorities on constitutionally protected rights in property. He is a partner in the Washing-
ton, DC law firm of Marzulla & Marzulla, where his practice includes complex takings litigation in state and federal courts, environmental and
water use issues, regulatory compliance, and natural resources policy. Mr. Marzulla served as Assistant Attorney General in charge of the US
Justice Department's Land and Natural Resources Division, where he was responsible for all environmental, condemnation, and natural re-
sources litigation on behalf of the federal government. He is author of the book "Property Rights and Environmental Regulation."
Copyright© 2005 Envirotech Publications; Reproduction without permission strictly prohibited.