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By Tom Nicolette
Director of Media Services
A claim has been filed by 17 Texas irrigation districts, 29 independent water rights holders and the North Alamo Water Supply Corporation in the Lower Rio Grande Valley against Mexico for up to a half billion dollars in damages. The $500 million claim addresses Mexico's failure to deliver more than 1 million acre-feet of Rio Grande River water to the Texas Valley between 1992 and 2002.
"By diverting claimants' water to Mexican farmers, Mexico dramatically increased its irrigated agricultural production on the Mexican side of the Rio Grande. (Meanwhile) the crops of United States farmers in the Rio Grande Valley shriveled," said Nancie Marzulla, counsel for the claimants.
Mexico thus treated the investments of U.S. growers less favorably than it treated its own investors, she added.
Marzulla was one of several people who participated in an Austin news conference Aug. 27 at the State Capitol. The irrigation districts, farmers and water supply company are represented by Marzulla & Marzulla, a Washington, D.C.-based law firm specializing in complex water rights and property rights litigation.
Under the terms of a 1944 treaty, Mexico was allocated two-thirds of the water from the Rio Grande River and the U.S. was allocated one-third. The U.S. has complied with the treaty provisions while Mexico has not since 1992. Beginning 12 years ago, Mexico systematically failed to deliver the average minimum annual amount of 350,000 acre-feet of water it was required to give to the U.S. By the end of a 10-year period (1992-2002), Mexico's total water debt escalated to 1,476,181 acre-feet.
The claim falls under the North American Free Trade Agreement. Under NAFTA, Mexico has 90 days to agree to pay the claim. Otherwise, the claim will be submitted to a three-person international panel for binding arbitration. If necessary, the claimants rights will be vigorously pursued by Marzulla & Marzulla through enforcement of a judgment in a U.S. federal court.
The Texas Commission on Environmental Quality is the state agency responsible for the administration of the water rights.
"The state has long been frustrated that there has been no legal remedy for us to directly challenge Mexico for their failure to comply with the treaty. Yet, Texas and the individual water rights holders of Texas are really the only entities directly impacted by Mexico's failure to comply with the treaty," said TCEQ Chairman Kathleen White.
One of the claimants is Hidalgo County Farm Bureau member Jimmie Steidinger.
"My losses from 1992 to 2002 just on 180 acres of citrus was a little over $200,000," said the Donna producer, who subsequently had to lay off his workers because of the water shortage.
Overall, the Rio Grande Valley has sustained a loss of 30,000 jobs and $1 billion in decreased business activity related to the failure to receive more water from Mexico.
Another claimant is Cameron County Irrigation District Number 2.
"We've already suffered sufficient damages. We have to put a stop to it so that it won't continue. I think we have gotten to the point where we have lost too many farmers, and we can't afford to lose any more," the irrigation district's General Manager Sonia Kaniger emphasized.
Satellite aerial photos of Mexico show the country does have sufficient water right now to make repayments to the Valley claimants.
"Mexico owes us today 737,000 acre-feet (of water). Their storage volume is increasing dramatically. The question for anybody is, why aren't they paying?" said Texas Agriculture Commissioner Susan Combs.
Mexico's soil moisture profile is way up and their farmers' irrigation season is over. This is the absolute ideal time for them to make water payments, Combs stressed.
