On December 19th, 2007, Monica Real Estate Holdings shredded an entire parcel of fifty acres of citrus in Borrego Springs, thereby “capping” the annual water use on the property by 190 Acre Feet Per Year. The Borrego Water District purchased and retired 150 Acre Feet. An additional 40 Acre Feet are available for cap and trade with developers seeking to offset new development in Borrego Springs. By virtue of mandatory 1:1 offsets from the County, the Borrego Water Exchange has captured the first true and independent transaction for cap and trade in water in the State of California. The Borrego Water Exchange is the State's first Independent Water Intermediary dedicated to fair and equitable transfers, cap and trade, and rational water policy protecting agriculture, communities, and districts from unsustainable water practices including unmanaged growth.

The transaction consummates months of negotiation preserving the cap and trade option for Monica Real Estate Holdings. Robb Frank, of Frank and Burke, negotiated on behalf of the Seller. Allison Burns negotiated on behalf of the Borrego Water District. Lane Sharman of the Borrego Water Exchange mediated the transaction for all parties and set the terms and conditions leading to the purchase and the cap and trade mechanism. The property used to dewater the sole source aquifer at the rate of 170,000 gallons per day. Since there are 4,000 acres under agricultural development in Borrego, several golf courses and a growing population, the savings is a small but important step towards avoiding collapse from overdrafting. Running at the rate of 14,000 Acre Feet Per Year, overdrafting threatens the viability and economy of Borrego. New water and demand reduction are essential and urgent if a failure of the community is to be avoided.

“Thanks to the efforts of the Borrego Water District and the Borrego Water Exchange, I feel really good about the water savings and the potential for more” said Rudy Monica on the day before the shredding operation.

ABOUT THE BORREGO WATER EXCHANGE:

The Borrego Water Exchange, as an Independent Policy Advocate, seeks water security and reliability throughout the West by making it mandatory that there be a 1:1, NO NET LOSS purchase of water for all new water uses including commercial, industrial and residential developments of any size. It is not fair to put a new straw into a water supply in any location without replacing the water. Water is not a renewable resource. It is finite. Global warming is compounding a century of water follies in the West. And, in particular, Southern California continues to waste water without any form of regulation on new water use. Inefficiency and unmanaged population growth threaten established farms, businesses and the stability of the State's citizenry, infrastructure and environment.

The Borrego Water Exchange is a 501(c)3 Not-For-Profit accredited in the State of California and sustained by grants and donations from individuals and foundations. We welcome your comments and participation in our mission.