Yakima River Tributary Reverse Water Right Auction

The Washington Department of Ecology is seeking to buy or lease confirmed water rights in tributary streams in the Yakima River basin, beginning with the 2008 irrigation season. The reverse water-right auction program is part of Ecology’s efforts to enhance stream and tributary flows in the Yakima Basin.

The auction is for water rights in tributaries above Sunnyside Dam near Parker.

Water rights acquired by Ecology through this auction will be managed as part of the Washington Trust Water Rights Program (TWRP). The water rights from the tributary streams will be protected as instream flow water rights from the historic point of diversion downstream to the confluence of the Columbia River with the Pacific Ocean.

Washington Rivers Conservancy (WRC) and Washington Water Trust (WWT), non-profit organizations that focus on cooperative agreements to transfer water to instream flow, will assist Ecology in the transactions.

Ecology is offering willing water right holders the opportunity to lease or permanently sell their water rights to the Trust Water Right Program. Ecology’s preference is to purchase water rights. However, two kinds of leasing opportunities are available in this auction:

Split-season lease option: A split-season lease is for a portion of the irrigation season beginning August 1 and continuing through the end of the irrigation season defined by Yakima County Superior Court’s Conditional Final Order (CFO). The lease would begin with the 2008 irrigation season and the minimum term of the lease is 5 years.
Dry-year lease option: A dry year lease would give Ecology the option to lease of a water right in years when Yakima Project water rights are prorated to 75% or less of a full supply. The lease option would be for a term of minimum of 10 to a maximum of 20 years. Under such an agreement, Ecology would make a one-time payment of $10 per acre-foot of consumptive use multiplied by the number of years of the option agreement to secure an option to lease the water right in water-short years. Ecology would also pay the accepted bid price in water-short years when the option is exercised.

Bid forms were directly mailed to approximately 650 water users on April 27, 2007.

Calendar of Events - 2007

Calendar of Events 2007

Request Letter

Reverse Bid Auction Request for Bids - Copy of the letter mailed to water users

Bid Conditions and Terms

Auction Bid Conditions and Terms

Bid Forms

Common Questions

Reverse Auction Questions and Answers

Bid Evaluation Procedure and Reserve Prices

Procedure for evaluation 2007 Yakima Reverse Auction Bids

Bids Received

May 31, 2007
- Split-Season Lease Bid - Claim 08983

Post-Auction Survey of Invited Bidders

The auction produced only a single bid. This outcome was somewhat unexpected based on the response to the 2005 auction. The 2007 auction was different from the 2005 auction in many ways, so Ecology, WWT, and WRC decided that a post-auction survey would be warranted. Ecology contracted with Anchor Environmental, who then sub-contracted with Strategic Research Associates of Spokane, WA to survey water right holders who were invited to bid. Strategy Research convened 2 focus groups and prepared the following report.

Post-Auction Survey: 2007 Reverse Auction

Contacts

Questions about Ecology’s reverse auction can be directed to Bob Barwin with Ecology at (509) 457-7140, Lisa Pelly with WRC at (509) 888-0970, or Kelly McCaffrey with WWT at 509-844-4146.