SMID Surplus Water Rights Auction Results
Selah-Moxee Irrigation District (SMID) Surplus Water Rights Auction Results
June 28, 2023
AUCTION RESULTS
As a neutral, third-party provider, Western Water Market designed, launched, marketed, and managed the largest water rights auctions in Washington‘s history for the Selah-Moxee Irrigation District (SMID) in 2022. WWM utilized its existing marketing channels and additional custom marketing strategies to generate interest and gain bidder participation.
The first auction was open to SMID patrons. The second was open to the public and included 15 bids from 10 diverse bidders, totaling $6.9 million. Accepted purchase bids ranged from $9,000/acre-foot consumptive use to $14,000/acre-foot consumptive use, and accepted leases ranged from $275 to $350/acre-foot/year consumptive use.
The Ripple Effect Episode 132: Selah-Moxee Irrigation District Water Auction
With Emily E. Lewis, Clyde Snow Attorneys at Law
In this episode, Dan Haller, Principal Engineer at Aspect Consulting, and Kristina Ribellia, Founder and President of Western Water Market discuss their recent efforts to help the Selah-Moxee Irrigation District execute a multi-party water auction.
ABOUT THE AUCTION
Through conservation upgrades, the Selah-Moxee Irrigation District (SMID) has surplus water that is now being made available for sale and lease. In this auction, SMID is offering a total of 382 acre-feet for sale and 5,950 acre-feet for lease (short-term, long-term, drought-year, and non-drought-year) as specified by the bidder).
This auction is open to any party who can physically access water from the District’s canals, or from surface water downstream of SMID (generally Selah), including from the Yakima River and Columbia River, or from groundwater in continuity therewith, and subject to the Department of Ecology’s approval.
The auction starts on October 1, 2022 and runs through November 15, 2022. Bids are due at 5:00 pm on November 15th.
ABOUT THE WATER RIGHTS
The District has a surplus of 8,783.11 acre-feet/year, as approved by the Department of Ecology in 2021. It obligated 18.06 acre-feet in a previous auction which was open only to District landowners earlier in 2022 at a purchase price of $9,000/acre-foot.
The District’s water rights have a priority date of January 26, 1887, are senior rights in the Yakima Basin, and are not curtailed in drought years. The surplus water rights are available for irrigation and other purposes. SMID physically supplies water from 4/1 to 10/31, but a longer season of use may be possible through the Department of Ecology if the bidder has their own source.
This water can be used within and outside of the District’s service area, including from surface water downstream of SMID (Yakima River, Columbia River), or from groundwater in continuity therewith. The user will need to demonstrate hydraulic continuity as part of their application for a groundwater mitigation permit from the Department of Ecology. It will be the bidder’s responsibility for obtaining the means to deliver the water to their property.
HOW TO SUBMIT A BID
All bids must be submitted electronically through Western Water Market by 5:00 pm on November 15, 2022.
In order for bids to be valid, a one-time non-refundable application fee of $500 must be postmarked to SMID within 5 business days. Please send checks to Selah-Moxee Irrigation District, P.O. Box 166, Moxee, WA 98936. Alternatively, the one-time application fee can be submitted using the drop box at the SMID office, located at 113 E. Moxee Ave, Moxee, WA 98936. Only one $500 fee is required per bidder irrespective of the number/type of bids placed as long as it is for the same proposed property. For example, the same bidder can place bids for both a purchase and a lease so long as the proposed property where the water will be used is the same.
Bidders will be notified of the outcome of their bid by December 15, 2022.
ADDITIONAL TERMS & CONDITIONS
SMID reserves the right to reject any offer of the use of surplus water if it conflicts with SMID’s goals regarding risk and revenue generation; if the offer is not reflective of fair market value; or any other reason.
The surplus water will be awarded to the highest bidders at SMID’s discretion and meet qualifying auction criteria unless the bidder's proposal is found to be defective.
If a bid is accepted, the bidder will be required to pay SMID 10% of the purchase or lease price within 30 days and then will receive a Draft Mitigation Certificate to reserve water for the transaction. Bidders must diligently put their water to use and cannot indefinitely hold water or speculate in SMID rights. A Final Mitigation Certificate will be issued following payment of the remaining 90% bid and confirmation the project received Ecology approval (if required). If SMID cancels a Draft Mitigation Certificate under the terms of its District Resolution or these Terms and Conditions, it will refund half of the 10% initial purchase or lease price. The balance is not refundable and will be retained by SMID to cover District costs associated with the transaction.
The auction ended on November 15, 2022 at 5:00 pm.
If you need assistance, please contact Western Water Market at (509) 906-1070 or
at support@westernwatermarket.com