Private water development criticized

Thursday, April 3, 2003 | 10:09 a.m.

CARSON CITY -- A bill that would allow rural counties to contract with private companies for the development of their water resources was sharply criticized by a Las Vegas senator Wednesday.

Senate Bill 487 would permit counties under 400,000 to sign contracts with private companies to explore and develop underground water for economic development. It was drafted to clear up legal questions raised after then-Attorney General Frankie Sue Del Papa last year issued an opinion that a contract between Lincoln County and Vidler Water Co. was illegal.

Vidler is the largest private landholder in Nevada and has been negotiating with some counties that can't afford the exploration and development costs.

But Sen. Warren Hardy, R-Las Vegas, during a hearing before the Senate Government Affairs Committee said he has serious concerns about the bill.

Hardy said it bothered him that the bill would apply to every county except Clark

. "This has significant seeping effects on water law," Hardy said. "This has the effect of legalizing water speculation. It would make water an instrument of commerce.

Lincoln County Commissioner Tim Perkins told the Senate Government Affairs Committee he could not overstate the importance of the bill. The county does not have the money to start exploration and development projects.

Vidler is working on developing water to serve a proposed major power plant in Lincoln County, which would be a major taxpayer for the local government.

Perkins said the partnership "is something we need to grow Lincoln County."

Mark Fiorentino, an attorney representing Lincoln County, and Steve Hartman, Vidler's lawyer, rejected suggestions by committee members that the water might be sold outside the state.

Lincoln County and the Southern Nevada Water Authority, which supplies water to most Clark County users, recently came to an agreement to settle conflicting rights for ground water, which will allow each county to 40,000 to 50,000 additional acre-feet of water. An acre-foot is 326,000 gallons.

The Water Authority had filed claims on water rights in Lincoln County to meet future water needs in the Las Vegas Valley.

Still, Hardy said, "My problem is interjecting a middleman whose purpose is to make money by selling a resource of this state."

Michael Winters, general manager of the Virgin Valley Water District, and George Benesch, attorney for the district, also opposed the bill. Benesch complained the bill would "sanction speculation by a for-profit entity."

The Virgin Valley Water District abuts Lincoln County, and Winters is worried about serving customers in the growing community of Mesquite in Clark County.

The committee did not take any action.

Senate Minority Leader Dina Titus, D-Las Vegas, asked Lincoln-Vidler officials if there was any connection to Coyote Springs, which is being developed as a recreational community by lobbyist Harvey Whittemore.

"We have had discussions," Hartman said. "A fairly large portion of Coyote Springs lies in Lincoln County."