Agriculture
Last Update: 9/26/2008 9:45:06 PM CST

Testimony is light on integrated management plan; bond sale for water purchases now in limbo


    By Russ Pankonin
    The Imperial Republican
     The proposed integrated management plan (IMP) for the Upper Republican Natural Resource District (URNRD) drew little testimony during a hearing held Thursday, Nov. 1.
     Less than 30 people attended the hearing held in Imperial.
     Speaking on behalf of the Bureau of Reclamation, Area Director Aaron Thompson of Grand Island said they are concerned about the viability of their projects in the Republican Basin.
     They also questioned the ongoing availability of water in the future from the projects for delivery to customers.
     Two patrons in the district, Ted Tietjen of Grant and Kurt Bernhardt of Champion, also offered testimony.
     They expressed concerns about the reduction in acreage versus a reduction in allocation.
     URNRD Manager Jasper Fanning said those particular issues will be dealt with in the rules and regulations rather than the IMP.
     The record was kept open until Tuesday for anyone wanting to submit written testimony.
     Fanning expected the board to discuss the IMP again during their regular meeting, which was held Tuesday, Nov. 6. He expected the board to act on the IMP at the December meeting.
     He didn't expect any draft of the new rules and regulations for board review until the December meeting, at the earliest.
    Lawsuit puts bond sale in limbo
     For the past several months the URNRD and other basin NRDs have been focusing on developing IMPs acceptable by the state's Department of Natural Resources.
     Now, the NRDs face an even more difficult situation-paying for surface water leased or purchased this past summer.
     A group based primarily in McCook, called Friends of the River, filed suit to challenge the constitutionality of property tax assessment in LB 701.
     The group originally filed the suit with the Nebraska Supreme Court, but the high court rejected it. As a result, the suit was filed late last week in Lancaster County District Court.
     With the litigation pending, Fanning said there is no way the bond company will issue bonds to pay for the surface water purchases this past summer.
     LB 701 gave NRDs the right to levy up to 10 cents per $100 of valuation to help pay for surface water leases and purchases.
     In addition, the bill also allowed the NRDs to assess a per-irrigated-acre fee of up to $10 per acre to help pay for the water.
     Claude Cappel of McCook, who helped organize Friends of the River, said they believe the state is responsible for paying for the surface water as part of compact compliance with Kansas.
     They also assert that allowing a property tax levy to pay for a state obligation is unconstitutional.
     Cappel said Monday the group wished the Supreme Court would have taken the case, "because that's where it's going to end up anyway," he said.
     He speculated that whichever party loses the suit will appeal it.
     Fanning said the suit has stopped the issuance of bonds to pay the surface water irrigators.
     Cappel said they hope the suit is heard soon because they realize that surface water irrigators are waiting to be paid for their water.
     Fanning said the cost of the water and related interest costs will run about $8.7 million.
     He said Monday the NRDs are exploring other alternatives to bonding to get the money to the surface water sellers.