Money can’t always buy water, even in cash-poor New
Mexico.
Intel Corp., the world’s largest computer
chip manufacturer, has lost a $1.5 million bid to buy water rights
from southern New Mexican farmers near rural Socorro. The company’s
1994 water-use permit requires that it buy water rights, then
retire them to offset 4 million gallons a day of groundwater that
the Intel plant uses in Rio Rancho (HCN, 12/26/94). State Water
Engineer Tom Turney denied Intel’s request Nov. 15, saying the land
where the rights apply has not been irrigated since 1941, and
landowners no longer owned the rights they wished to sell. He said
the water rights had reverted back to public
ownership.
Intel’s request highlighted the debate
over water use in the West, and particularly New Mexico, where the
company has clout in one of the country’s poorest and driest
states. Last year Intel paid more income taxes to New Mexico’s
treasury – $41 million – than any other
entity.
Attorney Doug Wolf, who opposed Intel on
behalf of local water boards and the Southwest Organizing Project,
called the turndown for Intel “amazing. They usually get whatever
they want,” he said.
Advocates for rural water
rights had hoped the state engineer’s decision would clarify state
law that says water must be protected for public welfare. Critics
say the state law avoids making judgments about rural vs.
industrial uses of water. But the hearings never progressed beyond
whether the rights were valid.
Intel’s strategic
operations manager, Donald Hutchinson, said his company may appeal
the decision to state district court. “It’s really not his call,”
he said of the state engineer. “It’s really up to the courts.” –
Jason Lenderman
This article appeared in the print edition of the magazine with the headline Intel Corp. denied desert water rights.

