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There are those who say fresh water may be the "oil" equivalent in the 21st century, due to population pressures, and rising temperatures/ increasing dessication in key areas of the world (example: current Australian drought). Some international corporations are already making water grabs.
Boone Pickens is, I believe, an early trend-setter and a very predatory one at that. I've lived in Texas over 30 years, and remember him as an early apostle of shareholder value in the early 1980's when he sponsored leveraged buy-outs in the oil patch, irregardles of the impact on the local communities or employees (also known as people). As we know, LBO's or Private Equity as they're called today, are essentially asset-stripping operations for the insiders driving the play.
God help if people like Boone Pickens start buying out water rights, the bills US citizens now pay for their mortgages, gasoline, food, etc. might pale in comparison compared to what they are charged for water.
And the neat trick Boone has executed here are the use of tax-exempt bonds and eminent domain.
Nov. 2, 2007, 3:24PM
Counting vote won't take long
Two hold key to $2.5 billion water pipeline in Panhandle
By MARK BABINECK
Copyright 2007 Houston Chronicle
MIAMI, Texas — Oilman Boone Pickens has been trying for seven years to move billions of gallons of water from underneath the northeastern Panhandle to urban Texas. On Tuesday, Alton and Lu Boone should put him one step closer to pulling it off.
Alton Boone manages Pickens' ranch in the region, and Lu is his wife. They're the only voters registered to approve Roberts County Fresh Water Supply District No. 1 and a $101 million bond issue in what may be the state's most unique election next week.
The plan by Pickens' company, Mesa Water, is simple: Purchase 400,000 acres in water rights, get a friendly supply district installed on a remote eight-acre plot in Roberts County that Pickens deeded to the Boones and three other employees, find a buyer for more than 65 billion gallons of water per year and build a pipeline to that customer.
The water rights are in hand, but the district is key to the $2.5 billion project because it can issue tax-exempt revenue bonds and use eminent domain to buy land anywhere in Texas.
Link:
http://www.chron.com/disp/story.mpl/...o/5266952.html
Boone Pickens is, I believe, an early trend-setter and a very predatory one at that. I've lived in Texas over 30 years, and remember him as an early apostle of shareholder value in the early 1980's when he sponsored leveraged buy-outs in the oil patch, irregardles of the impact on the local communities or employees (also known as people). As we know, LBO's or Private Equity as they're called today, are essentially asset-stripping operations for the insiders driving the play.
God help if people like Boone Pickens start buying out water rights, the bills US citizens now pay for their mortgages, gasoline, food, etc. might pale in comparison compared to what they are charged for water.
And the neat trick Boone has executed here are the use of tax-exempt bonds and eminent domain.
Nov. 2, 2007, 3:24PM
Counting vote won't take long
Two hold key to $2.5 billion water pipeline in Panhandle
By MARK BABINECK
Copyright 2007 Houston Chronicle
MIAMI, Texas — Oilman Boone Pickens has been trying for seven years to move billions of gallons of water from underneath the northeastern Panhandle to urban Texas. On Tuesday, Alton and Lu Boone should put him one step closer to pulling it off.
Alton Boone manages Pickens' ranch in the region, and Lu is his wife. They're the only voters registered to approve Roberts County Fresh Water Supply District No. 1 and a $101 million bond issue in what may be the state's most unique election next week.
The plan by Pickens' company, Mesa Water, is simple: Purchase 400,000 acres in water rights, get a friendly supply district installed on a remote eight-acre plot in Roberts County that Pickens deeded to the Boones and three other employees, find a buyer for more than 65 billion gallons of water per year and build a pipeline to that customer.
The water rights are in hand, but the district is key to the $2.5 billion project because it can issue tax-exempt revenue bonds and use eminent domain to buy land anywhere in Texas.
Link:
http://www.chron.com/disp/story.mpl/...o/5266952.html
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