Author Archives: Rodney T. Smith

About Rodney T. Smith

Rodney T. Smith, Ph.D., President of Stratecon Inc.—an economics and strategic planning consulting firm—advises public and private sector water users on the acquisition, sale and leasing of water rights and water supplies in the western U.S. He is routinely involved in economic valuation of water rights, water investments, and negotiation of water acquisition and transportation agreements and has served as an expert witness in the economic valuation of groundwater resources, disputes over the economic interpretation of water contracts, economics of water conservation and water use practices, and the socio-economic impacts of land fallowing. For more information, see www.stratwater.com.

Can’t Mexico and Texas Get Along on the Rio Grande?

Hard times stress relationships.  The situation on the Rio Grande River is no exception.  Texas is amidst severe drought.  Texans wants Mexico to release more water into the Rio Grande to ease the economic losses from the current multi-year drought http://hydrowonk.com/blog/2013/09/11/water-supply-in-texas-a-two-part-series-on-the-ongoing-challenges-the-lone-star-state-faces.  Texan political leadership’s growing frustration with inadequate water supplies on the Rio Grande has prompted thoughts of cutting funding for the implementation of Minute 319.

Rather than bickering, Texas and Mexico can be better served by collaboration.  After discussing the current situation, I outline the basics of a “grand bargain” between Mexico and Texas. Continue reading →

Hydrowonk’s Take on the BDCP

Time to step back and collect the key points of this 8-post series on the Bay Delta Conservation Plan.  There were many themes relevant to the BDCP or, for that matter, any other water project.  By following them, one can have an accurate assessment of the economics, risks and choices related to a venture.  Ignoring them will be a recipe for disappointment if not outright failure. Continue reading →

Guinness: An Irish Water Rights Story

Byline: Kilronan Castle, Ireland

The water crowd should visit the Guinness Storehouse in Dublin, Ireland.  The legacy will strike a familiar theme:

established water rights lead to business development and economic expansion

Continue reading →

What would be California’s Water Supply Situation without the BDCP and What It Means for Tunnels

There is a significant “risk factor” about the Bay Delta Conservation Plan that merits attention:

What would be California’s Water Supply situation without the tunnels?

Over the past couple of weeks, I have heard about alternatives to the no BDCP scenario defined by DWR.  What proves true will have a substantial impact on the cost of BDCP water.  Under alternative “no tunnel” scenarios, the best case for the cost of BDCP water would be well over $1,000/AF for a non-firm water supply.  There are some scenarios where the BDCP investment may yield even a lower water supply.  In those circumstances, the BDCP investment in tunnels would become the “bridge to nowhere” in waterworld.

Whatever one’s views about the BDCP, in the end we are rolling the dice on what is, in fact, the future world with and without the tunnels.

Dice Image Continue reading →