Loan approved for IGWA to purchase trout farm

Published 11:08 am Wednesday, November 25, 2015

BOISE — Idaho groundwater users may have to pay up to $1.2 million more than they originally budgeted to purchase a Hagerman trout farm as part of a mitigation plan resolving the Rangen, Inc., water call.

On Nov. 19, the Idaho Water Resource Board approved a $3.2 million short-term loan to Idaho Groundwater Appropriators, Inc. — equal to the appraised price of the state-owned Aqualife fish hatchery.

IGWA has agreed to purchase the hatchery to turn over to SeaPac of Idaho, which had been leasing Aqualife from the Idaho Department of Water Resources. In exchange, SeaPac is providing IGWA up to 10 cubic feet per second of pristine spring water from its Magic Springs facility to pipe to Rangen.

Idaho Department of Water Resources Director Gary Spackman ruled during the winter of 2013 junior well irrigators in the Eastern Snake Plain Aquifer owe Rangen the water to offset affects of their pumping on Rangen’s spring flows.

Funds to purchase Aqualife will be wrapped into an existing loan the board made to help IGWA finance construction of the Rangen pipeline, bringing the total loan amount to $7.2 million. IGWA has until September of 2016 to repay the loan, providing time for the organization to find longterm financing and determine the appropriate length of repayment, said Lynn Carlquist, a Hazelton farmer who serves as chairman of the North Snake Groundwater District. IGWA has until the end of the year to purchase Aqualife and transfer the title to SeaPac. The pipeline has been operational since last winter, and IGWA has been leasing Aqualife for SeaPac’s use in the interim.

Carlquist explained a judge granted IGWA the right to incur $15 million in debt about a year ago to resolve water calls, including Rangen, in the Hagerman area. Some of the funds are also available to resolve additional water calls that may be on the horizon downstream from Rangen on Billingsley Creek.

“Every time the groundwater pumpers turn around, someone else wants a piece of our hide,” Carlquist said.

IGWA originally budgeted $2 million of that total toward purchasing Aqualife and 17 acres of surrounding land. He said IGWA later increased its budget estimate to $2.7 million when SeaPac indicated it would need 110 acres of surrounding land for biosecurity reasons.

Carlquist said IGWA believes the state’s appraisal, conducted by LeMoyne Appraisal in August 2015, came in too high.

Water Board Chairman Roger Chase said the appraisal was done by leading experts and the board has no authority to accept less than an appraised amount.

IGWA Executive Director Lynn Tominaga said his organization has asked the appraiser to reconsider the amount, factoring in deed restrictions on land use and the water right.

IDWR Planning Bureau Chief Brian Patton said the board has asked its appraiser to revisit its estimate, with IGWA’s issues in mind, and he should have an answer within a couple of weeks.

Marketplace