Tuesday, October 14, 2008 : 10:30 a.m.

Unitization: Renewing a Well-Oiled Approach to Nonrenewable Ground Water

W. Todd Jarvis, Ph.D., Oregon State University and John W. Jarvis, Certified Professional Landman (retired)

“Non-renewable groundwater” is controversial because it refers to groundwater resources where present-day replenishment is limited but aquifer storage is large, where replenishment is very long (100s to 1000s of years) relative to the time-frame of human use, or where the use of groundwater storage is at a rate much greater than the renewal rate, essentially “mining” the groundwater, or where groundwater resources are essentially “decoupled” from the hydrologic cycle due to changes in the climatic conditions in the watershed.  Compartmentalization of groundwater by faulting and folding may also decouple the non-renewable groundwater resources from the hydrologic cycle.  Declining water levels on the order of tens to hundreds of meters are the usual metrics designating excessive access to groundwater resources that are “non-renewable”.

 

Excessive access and drawdown in petroleum “reservoirs” has led to premature depletion and, in some cases, irreversible damage to the storage characteristics of reservoirs.  In the case of oil and gas reservoirs, government-mandated “unitization”, or the single ownership and management, of the oil and gas reservoirs is one solution to the problem of access and related drawdown to the common pool resources. Economists and legal scholars in property rights suggest unitizing some situations associated with groundwater development as one means to mitigate the inefficiency of a possession or use-based system of groundwater along with the inefficiencies associated with joint access to groundwater.  Under a non-renewable groundwater scenario, a single “unit operator” could extract from and develop the reservoir with other parties tapping the non-renewable groundwater resource share in the net returns as share holders. This arrangement eliminates the “race to the pump” and directs extraction toward maximization of the economic value of the entire reservoir or aquifer, rather than trying to meet the unreachable star of maintaining the “sustainable” water rights held by individual parties tapping non-renewable groundwater.

W. Todd Jarvis, Ph.D., Oregon State University Associate Director

John W. Jarvis, Certified Professional Landman (retired) John W. (Bill) Jarvis worked as a professional landman for major and independent exploration and land companies for over 30 years. He specialized in leasing federal lands.


The NGWA International Conference on Nonrenewable Ground Water Resources — Sociotechnological Aspects of Nonrenewable Ground Water Resources: Half-Empty, Half-Full, Top-Down, Bottom-Up, and Some Paths Forward