WASHINGTON – A new company is reaching out to tribes to help them monetize their settled water rights by negotiating deals with municipalities and other entities.
The company, called Native American Water Management, was formed in late 2008. Its team is made up of several Native Americans, including Ron Andrade, former executive director of the National Congress of American Indians; Gavin Clarkson, a professor at the University of Houston Law Center; and Gwendolyn Packard, who has worked for NCAI and the National Tribal Chairmen’s Association.
The president of the venture, Walter Hillabrant, has worked on various Indian country economic development, health and education projects for about 30 years.
“Water is the new gold, or the new oil,” said Hillabrant, a member of the Potawatomi Nation. “It’s an important resource that tribes have long had to fight for – and are still fighting for.”
Officials with the group said they are in the process of working with a handful of tribes in the West that have achieved settled water rights via the legal system.
They believe it is a field that has much untapped potential, since approximately 70 percent of the United States’ water supply runs through or near tribal lands.
The process of getting such rights is often complicated as localities and other interests have long fought tribes that have pursued rights. Some tribes have successfully navigated the waters, while many more have expressed interest, or have begun down pathways to do so.
Leaders with NAWM expect increasing numbers of tribes to have success. The company is currently compiling a list of tribes with settled water rights.
When tribes achieve success, the group’s leaders want NAWM to be a top resource for tribal leaders to help secure fair deals with outside parties that may want to buy or lease tribal waters.
Why shouldn’t a tribe go out on its own to negotiate water sale arrangements?
It largely boils down to expertise, NAWM’s leaders said. Beyond the knowledge of individual team members, the group has a relationship with a major player in the water asset management industry. That company has experience in managing water and other deals with a variety of players and a strong understanding of the field.
Officials said they are more than willing to reveal the name of the water management player to tribes they work with, but they did not want to publicize the entity in the press for business reasons.
While Hillabrant is a staunch advocate of Indian self-determination, he said it sometimes makes sense to hire an expert who can save time and help maximize revenues.
Leaders chose not to provide exact figures on NAWM’s fees, but said tribes are given detailed information before business agreements are made.
A few tribes are in the early stages of working with the group, and the organization keeps all of its tribal business clients’ records private.
When a tribe enters into a relationship with the company, its team first assesses the quantity and type of surplus water available, then determines the best strategy to fully value the asset. Finally, it aims to structure a deal that offers optimal outcomes for the tribe, and then places a transaction.
Hillabrant said a top goal is to ensure the tribal assets are fully valued, while creating wealth for tribal customers and NAWM at the same time.
The group also aims to structure deals that minimize risks to a tribe. Leaders said a key part of conducting surplus water transactions is including the ability for a tribe to modify or terminate the lease in the event of unexpected changes in its water supply, such as droughts, loss of a reservoir, or increased consumption.
Given the infancy of the company, the complete business plan has not been carried out to date, although a few tribes are in the early stages of the process.
Hillabrant said he expects by the end of 2009 to have a minimum of three tribes signed up with the firm and have negotiated leased or purchased water agreements in place. He envisions gains of at least $1 million for that small number of tribes combined.
Officials said the company’s long-term growth will be largely determined by successfully gaining the trust of tribal leaders.
They also said that they know not all tribes will be interested in monetizing water rights, as water is viewed as culturally and spiritually sacred in many communities.
“We respect those beliefs,” Hillabrant said. “But in Indian country, many of our needs are so great, it almost feels like an obligation to put unused water to good use. Why allow it to flow down the drain or down the river for someone else to use without paying for it? If it’s our water, then it is our right to collect those revenues.”
