Texas Speculators Invest in Lower Arkansas Valley Water and Farms

We’ve recently learned of a significant out-of-state investment and speculation in water and farmland in Bent and Prowers Counties. Select Water Solutions, Inc., a $1.5 billion, Texas-based company traded on the New York Stock Exchange (WTTR), has purchased a 35% stake in AV Farms, LP for $62 million. AV Farms, LP was recently formed through the consolidation of 10 other companies owned, in part, by Karl Nyquist and C&A Companies out of Englewood, CO.  AV Farms’ assets include significant land and water assets under the Fort Lyon Canal and Lamar Canal companies, as well as 5,324 shares in the Lower Arkansas Water Management Association (LAWMA).

 At an investor conference in March, Select Water Solutions revealed their plans for this investment, stating:

“Select Water Solutions has announced a strategic investment of $62 million to expand into the municipal and industrial water markets in Colorado. …By 2050, the Arkansas River Basin within Colorado, which supports the southern Denver and Colorado Springs metro areas, is expected to have a ~50-100k acre-feet gap in supply annually. …Multiple municipal water buyers with projected demand gaps identified, including near term visibility into demand in excess of 50k AF that is a fit for this asset”

They further outline plans to:

“Contribute up to an additional $84 million for acquiring water rights and developing infrastructure, contingent upon securing long-term contracts. In doing so, we anticipate transitioning to a majority (~56%+) ownership position over time.”

This profit-driven speculation from a billion-dollar, publicly-traded Texas company on Lower Arkansas Valley water resources is deeply concerning. It threatens not only our water security but also the communities, culture, and way of life that we work so hard to preserve.

 The Lower Arkansas Valley Water Conservancy District is closely monitoring the extent of this purchase and will provide updates as they become available. We urgently call on others across the Lower Arkansas Valley and the state of Colorado to join us in opposing this type of water speculation in our region that threatens our communities.

 If you’d like to learn more and discuss these issues, please don’t hesitate to reach out or visit our website at lowerark.com.