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<br />1328 <br /> <br /> <br />U.S.NEWS <br /> <br /> <br />"" , <br />........'-"" <br />~~< <br />~~~ <br />Jeans bought Oil ranch 10 raise cattle, then found the water more valuable <br /> <br />A lucky landowner can make a killing in the coming shortage <br />The accidental water baron <br /> <br />. <br /> <br />Only after Franklyn Jeans paid $2 <br />million for the Fi"h Springs Ranch <br />ncar Nevada'" Pyramid Like did he <br />di"",o\'cr that the water underneath <br />was worth at leasl $27,5 million, <br />Jeans's good fortune came last <br />month when Washoe: County, a <br />fasl-growing area Ihal Includes <br />Reno. agr~d (0 buy the rights fo <br />ground" waler from his ranch- <br />327.000 acres of sagebrush. alfalfa, <br />mountains. callie and growling wa. <br />ter wclh. Jeans will recei..c: S2.5 mil. <br />lion for an option on the: waler and <br />then up to S27.5 million over the <br />neX! 10 ye:us if the: (OUnI)' uses the <br />water. Wa..hoe County Commis:<.ion <br />ChaIrman Gene McDowell calls the: <br />purchase "insuranct-" MJ that the <br />area can grow. <br />Worth mOfa than farmll'lQ. Jeani ii <br />one of a new breed of W~tern water <br />entrt-preneut'J who '>ell their waler <br />rights to hard-presM'd cities. Only a <br />"handful" of such ~pt"Culalot\ "real- <br />ly makt- a Ii'..ing off inve~ting:' ac- <br />cording to waler-policy consultanl <br />Steve Shupe. But with the days of <br />d,lm bUilding over, he claims thai <br />growing cities have hllk choice bur <br />fO huy righls to e;(bting ..ourc~ of <br />w:ller-mo~t of which belong to <br />farmer.... "Water is wonh bIg bucks <br />here," sa}'s Nevada Slahl climatolo- <br />gl\t John James. "It's wonh a hell <br />of a lot more th:1I1 farming and <br />working your~df to death." <br /> <br />22 <br /> <br />Yet, mo,>t times, ~elling water is <br />nOI a way 10 get nch quick. Legal <br />hassles and polilics make waler <br />lramfen a risky busine,>s. Some <br />Wcslern legislators are pushlllg <br />bills-12 were intrlXluced in the Ar- <br />izona Legislature alone this ses- <br />sion-Io SlOp Ihe Iransfers from ru- <br />ral counlies to cities. And an <br />invOitmenl in waler can be devalued <br />quickly ifit rains. <br />Before Jeans ever SCC\ the S27.S <br />million from Wa~h()(' Coun!Y. he <br />must surmount a number of hurdles. <br />The biggest is 10 calm fears of farm- <br />ers in neighboring Lassen County. <br />Calif.. that he will be draining water <br />from their propeny. They are likely <br />10 try to block the Iran~ction if a <br />U.S. Geological Survey sludy_deter_ <br />mines that the deal involving Jeans's <br />ranch on Ihe Nevada ~ide of Hont-y <br />Lakt- Valley would deplele waler on <br />tht- California ...ideofthe valley. <br />Says Lassen County Supervi<,or <br />Helen Williams: "We don'l wanl to <br />hecomt- another Owens Valley," re- <br />fernng to a caulionary ~Iory of how <br />furn-of-Ihe-ct-nlury Los Angeles <br />bought up water from nearby Ow- <br />ens Valley, Those transactions <br />hdpc:d build Ihe clly, bul some say <br />Ihey also led 10 the de....astalion of <br />the thri....ing agricultural valley. <br />"Water i~ nOI 3 great capilal ri~k," <br />says Jeans. "I(,s so highly polHical <br />because it's a nece~sily here," <br /> <br />seUlhe rights to their waler allotments. <br />In many places. il has nOl gone smoothly, <br />because emotions run high. <br />Consider the case ofThornlon, Colo., a <br />fast-growing suburb of Denser. Two <br />year... ago, Mayor M3rgarer Carpenter <br />had the cilY shellllut $60 million to buy <br />21.(XX) acres of farmlanJ-JustlO get the <br />rights 10 ils allotmenl for irngallon. It <br />seemt"d like for~ighl, but it W3S Jlso a <br />high.risk gamble that now has nCI~hbor <br />squarc-d off agamst neighbor. lit-fore <br />Thornlon re5idenls ever tasle any (If the <br />waler, the transaCllon must be aprroved <br />by Colorado's unique Water Court-a <br />rrocess Ihal could take a decade. <br />In addition, \\ ~ile Ihe farmers who <br />sold Ihelr land 10 the cily are cOlllent 10 <br />reI Ire on Iheir prolits, other farmt'r~ in <br />rural Weld County are fighting the sale <br />for fear il iSJu..tlhe ..tarl of a raid on their <br />waler. Opponents led by the Northern <br />Colorado Waler Conservancy Di..lnct, a <br />regional waler agency thai serves ..e....en <br />agril;ultural coUnllt"i, are chaJlengwg lhe <br />contract and will seck 10 halt C(ln~truc- <br />lion of a 50-mile pIpeline neceS~:iry to <br />carry Ihe water to Thornlon. Meanll.hile, <br />Thornlon has hiked its waler ralt."S 30 <br />percenlsince the sale, in large part !Opay <br />for the farmland. Says Larry Simpson, of <br />the waler agency: "The cillztns of <br />Thornlon were fed a lme. They thought <br />Ihey were gelling acheap watcr supply." <br />MllagfO beanfletds. For small farmers, <br />it's nOI a mallt-r of urban vs. rural priori- <br />ties bUI a fight forsurvi\'al. Why,th~.>' ask, <br />..hould they forfeil water so thai cilY <br />dwellers-living in a desert region-ean <br />havt- green lawns and full ,>wlmmmg <br />pt.1OIs? In New Mell.ico, lIi"panic sub..is- <br />tencefarmersarefightlng"MilagroOean- <br />fidd War"-slyle bailie.. agam"l cHics and <br />de....e1oper... AI "lake i.. control of the <br />water in irrigation ditches, called ace- <br />quia.., which are e....en blesst-d by pne\ts al <br />)'early cleansing rituals. Says Fred Wall1., <br />an attorney represenling small farmers <br />against state alfempts to di....ert more of <br />the water for development: "If they 10<.(' <br />their water, Ihey 10<.(' their farm.... They <br />lose their way of life." <br />The new national water war ..urdy will <br />claim \'icllms, and that'!Io what makes it '>0 <br />heated-and so tragic. "We run on a <br />'hydro-illogical' cycle," ..ays Gilbert <br />Cochran, a Umverslly of Nevada hydrol- <br />ogist. "When there's ph:nty, there's apa- <br />lhy; with shorlagC'i,lhere\ panic," Coch. <br />ran and 01 her water ell.p(:rts say that it's <br />an open quesllon \\hether this war's <br />drought wlil fnrcecommunilie..1O f~~'e up <br />10 the tough logical I;hoice\ neCt,",sary 10 <br />manage beller an incrca~lIlgly prC1:lous <br />and Sl:arce re~()urce. . <br /> <br />byJosepnP ShaP<t'o""nIAI>Cf.ll c...o"o <br />,,,SlInF'anc'!.CO,J,,'ryM,,II'''y,nN,,*vor_ <br />a"<lJul,,,r+a,'S1on,,,Allanl;l <br /> <br />US NEWS" wORLD REPORT, M;l1 30. 19811 <br />