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Arizona’s precious water factor

Posted by: Maven on August 9, 2009 at 7:19 am

From the Arizona Republic, this commentary by Robert Glennon, author and professor of law at the University of Arizona:

“To understand the future of water in Arizona, one must first understand its value.

Consider the story of a Utah steel corporation. Built during World War II and located just outside Provo, Utah, Geneva Steel enjoyed a prosperous 20th century. But plagued by declines in the steel industry, the company eventually went bankrupt and, in 2005, liquidated its assets to pay off creditors.

Fortunately, it had substantial assets. Geneva Steel sold 1,750 acres of prime, developable real estate for $46.8 million. The company peddled the plant’s machinery and equipment to a Chinese steel company, which paid $40 million. A mining company purchased Geneva Steel’s iron-ore mine for $10 million. It was also able to sell its air-pollution-emission credits for $4 million. Collectively, these substantial assets totaled $100.8 million.

Then, Geneva Steel sold its water rights – for $102 million.

That’s right: The water rights were more valuable than all its other assets combined. …”

Read more from the Arizona Republic by clicking here.

August 9, 2009 · Filed Under Colorado River & the Southwest

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