California’s heat-wave continues, and so does the drought. With water becoming more and more scarce, the topic of water supply and how to value water rights is becoming a key issue in California. If you’re interested in these issues, International Right of Way Association Chapter 57 is hosting is fall seminar this Friday, October 14, titled “Water Supply & Impacts.” There are some great speakers lined up to discuss California’s water supply, how to value flowage and drainage easements, and how water can impact a property’s highest and best use.
And if you’re interested in a scholarly discussion of valuing water rights, particularly in the eminent domain or regulatory takings context, check out William Wade’s article, “Liquid Gold or Water for Pecans? Valuation of Groundwater in Regulatory Takings Law.” Bill is an expert in regulatory takings, and he has a great discussion about how the regulation of ground water can expose public agencies to potential liability under Penn Central’s regulatory takings law, and how to value such water rights through a discounted cash flow analysis when they impact an ongoing business. He concludes that simply valuing the land itself with and without water rights may be insufficient (i.e., a “before” and “after” valuation), but instead it may be more appropriate to look at the loss of income produced by the business operating on the property.
If you’re heading out to IRWA Chapter 57’s Water Supply & Impacts seminar, I look forward to seeing you there.