A well-connected metro Denver water developer, backed by former Colorado Governor Bill Owens, Front Range real estate interests, and absentee ranchers who themselves control huge amounts of water here, is proposing to export millions of gallons of water out of this drought-stricken, scrappy place for delivery to fast-growing Douglas County.

Jerd Smith

Colorado Water Education

Denver developer, former governor make $118M play for San Luis Valley water

Henry, Colo.: As the sun sets at the Colorado Farm Brewery, a light breeze plays over a deep green rye field that borders the patio. As they do most Thursday nights, nearly two dozen people have wandered into this scenic, rural bar 250 miles southwest of Denver to relax and visit with neighbors.

The brewery is part of a 300-acre farm which grows grains and hops, and which also operates a malting company. Wayne Cody, the farm’s 61-year-old patriarch, has just come in from hours of work, roasting malt, examining fields, and preparing to plant buckwheat the next day.

As he visits with customers, it’s clear that most people in this bar tonight know that something almost unholy is in the works here in the San Luis Valley.

A well-connected metro Denver water developer, backed by former Colorado Governor Bill Owens, Front Range real estate interests, and absentee ranchers who themselves control huge amounts of water here, is proposing to export millions of gallons of water out of this drought-stricken, scrappy place for delivery to fast-growing Douglas County.

Sean Tonner, who once served as deputy chief of staff for Owens, is leading the group, which has proposed spending $118 million to acquire water from the farmers here. That sum includes a $50 million community fund to help bolster the poverty-stricken region.

Tonner’s company, known as Renewable Water Resources, is at least the fourth in a stream of developers who’ve beaten a path to this remote region in the past 50 years, intent on harvesting its water. All, up until now, have been decisively turned back.

In February, at a water conference in Alamosa, just up the road from Henry, a man suggesting that Tonner’s proposal had merit was booed.

Former U.S. Senator Ken Salazar’s family has farmed here for generations. Salazar also spoke at the conference and reassured the 200-plus people in the packed auditorium that no water would ever flow out of the valley into the metro area.

“Over my dead body,” he said to cheers and applause.

In a minute

For Wayne Cody, it isn’t nearly that clear cut. He and his sons, an energetic, muscular lot, are pouring everything they have, including beer, into saving their family farm.

Cody’s grandparents bought the farm in the 1930s, and the family has grown alfalfa profitably, then raised dairy cows, again profitably, for some 80 years. But as farm costs rose, and dairy prices dropped, they turned to a new industry, brewing, with Coors and others as customers.

In 2008, they started the Colorado Malting Company and last year they opened the Colorado Farm Brewery on County Road 12 South. Its custom beer snifters urge guests to “Drink Like A Farmer.”

Until a corporate malting company entered the valley two years ago, the Cody clan was selling 1 million pounds of malt a year, but they haven’t been able to compete well with the big operation, and so this year they have contracts to sell just 600,000 pounds of malt, Wayne Cody said.

Last month, the family laid off a full-time and part-time employee. Still they’re pushing ahead, hoping to make inroads into California’s malt market.

In the interim, the notion of selling some of their water each year to generate additional cash has a certain appeal.

“I would hate to see the water leave the valley,” Cody said, “but would I sell some? In a minute.”

Unequivocally no

Eight miles north, in Alamosa, Cleave Simpson runs the Rio Grande River Water Conservation District, an agency created by state law in 1967 to manage the Rio Grande River. It serves roughly 1,000 farm entities in the valley. Simpson and others are deeply worried about the export plan because the valley’s water supplies are already under severe stress.

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