Jun 09, 2011

New Mexico American Water Announces Water Leasing Program

Company seeks expressions of interest from local well owners

New Mexico American Water announced that it intends to supplement its existing Clovis-area water supplies by entering into water leases with area well owners. The company is requesting expressions of interest from well owners in the Clovis area. The plan is to use leased water to help ensure a reliable water supply for Clovis customers in the face of continual declines in the Ogallala Aquifer.

Since 2003, the static water levels in New Mexico American Water’s wells in the Ogallala Aquifer have declined an average of 3 ft per well every year. Annual well production rates are decreasing, on average 16 gal per minute per well, which amounts to a 10% decrease in annual output. The company is continuing to add to its production capability as its pumping capacity declines.

“New Mexico American Water is working hard to ensure a stable water supply for our customers in Clovis,” said Daniel Bailet, vice president of New Mexico American Water. “Water conservation, well rehabilitation and supplemental wells are all parts of our efforts, and we expect that leasing water from existing sources will provide additional supplies in a cost-effective manner.”

New Mexico American Water wants to hear from Clovis-area well owners with an interest in leasing water to the company. The water leases are expected to help bridge the period until the Ute pipeline is constructed and operational.

“I encourage interested parties to contact us and learn more about the program,” Bailet said. “This is another example of the community working together to solve the challenges we face.”

New Mexico American Water is beginning to collect the names of interested parties and basic information about their wells. Over the coming months, the company expects to gather more data, select wells, enter into contracts and ultimately purchase water on a per-thousand-gallon basis under the leasing program.

New Mexico American Water has additional information on the web at www.newmexicoamwater.com, at the local office at 1005 Norris St., Clovis, or by calling Jake Lenderking at 623.445.2410.

New Mexico American Water is a wholly owned subsidiary of American Water that provides water and related services to approximately 60,000 people.