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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 374.850.0%Nov 20 4:00 PM EST

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From: Elroy Jetson5/22/2015 1:09:38 AM
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Hawkmoon

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Lake Mead at Hoover Dam on the Colorado River, this month set a record low — the first time since it was filled in 1936 that its surface dropped under 1,080 feet.

This level is far below its 1,221.4 ft capacity, holding 28 million acre feet of water, but things get interesting if the water level recedes another 5 feet.

Once the water level in Lake Mead recedes to the 1,075 foot level, the 2007 interstate water sharing law requires Arizona and Nevada to cease using any Colorado River water. The Colorado River is the sole source of water for Las Vegas, Nevada — a city which already recycles its sewage outflow and storm drain run-off with a reverse-osmosis system. Southern California has senior water rights which allows us to continue taking our full allocation.

Meanwhile back in Northern California, starting May 22 farmers holding century-old water rights in the San Joaquin River watershed will be ordered to cut back.

Farmland with senior water rights sell at a huge premium, with the understanding they’d never have to conserve water, unlike neighboring farmers who've seen their water supply cut-off. Many with senior rights invested in high-value orchards that require water year-round, with that same understanding in mind.

Now that’s all about to change. The water district has to rely on the honor system and complaints from neighbors to ensure that the restrictions are being adhered to, they have new power to impose penalties on those caught diverting water, including up to $10,000 per day fines.

South Delta Water Agency, said some are almost certain to attempt to block them in court while a second group of senior water rights holders are trying to broker a deal with the government: they’re offering to voluntarily reduce their water use by 25 percent, in exchange for being spared mandatory cutbacks. Officials say they’ll announce their decision about that on Friday as well.
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