THE WORTH OF WATER
Water is a commodity that cannot be replaced, exhausted, or substituted. All the water that was on the planet millions of years ago remains today. Man’s settlement locations, diversion, pollution, and transfer of water dictate whether water becomes a scarce commodity. As with any commodity, the forces of supply and demand dictate value of the resource. The person that has abundant water fails to understand the worth of water.
PMN is often called to value water resources for purposes of collateralizing debt, marketing water resources, due diligence for property acquisitions, or investment. Appraisers seldom venture into water resources. This is largely the result of individual state laws, local practices, and the impact of location and stream regime on value. The title, or Deed tendered, may recite an ownership, but that does not necessarily mean the water can be used or transferred.
PMN has extensive experience is reviewing water resources and valuing them. PMN has analyzed and valued over one billion dollars in water resources. Having a firm with that is capable of verifying investment is critical for business, banking, industry, investment, and homeowners.
Drought and Conservation:
Drought is largely cyclical and a natural phenomenon. Whether the drought is cyclical, long term or merely where demands exceed supply, it is how the provider plans for drought that determines whether it becomes an inconvenience or devastating event. Proper water resource planning assumes drought and develops measures to mitigate its impact. At PMN, we develop comprehensive drought management practices and plans for industry, municipalities and ranchers which ease the impacts of drought.
The Current Drought Monitor:
Moderate drought: SE Florida, Arizona, Central and Eastern NV
Severe to Extreme drought: Oregon, Washington, Idaho, Western Montana
Exceptional drought: California, Western Nevada
Kevin Patrick recently served as an expert witness to provide expert witness valuation testimony for over $300 million in oil shale water rights in a securities lawsuit.