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Via: Daily Kos

You've seen the ads right? T. Boone Pickens, former oilman, now reformed character going to sell windpower cause he has seen the light?

Sounds great? Right?

T. Boone Pickens wants your water

By Timothy P. Carney
Examiner Columnist | 8/21/08 7:10 PM Texas oil billionaire T. Boone Pickens is about to make a killing by selling water he doesn’t own. As he does it, it will be praised as a planet-friendly wind project. After he pulls it off, the media will deride it as craven capitalism. In truth, it is one the most audacious examples of politics for profit, showing how big government helps the biggest business steal from the rest of us. The plotline behind Pickens’ water-and-wind scheme is almost too rich to believe. If it were a movie script, reviewers would dismiss it as over-the-top.

The basic story amounts to this: Pickens, thanks to favors from state lawmakers whose campaigns he funded, has created a new government whose only voters are two of his employers; this has empowered Pickens to more cheaply pump water from an aquifer and, by use of eminent domain, seize land across 11 counties in order to pipe the water to Dallas. To win environmentalist approval of this hardly “sustainable” practice, he has piggybacked this water project onto a windmill project pitched as an alternative to oil.

Pickens’ scheme is a perfect demonstration of why it’s worth asking cui bono — who benefits — from regulatory and environmental initiatives. Last week, this column pointed out that Pickens, before his current lobbying blitz for increased federal support of wind power, built the largest wind farm in the world.

I received dozens of responses from environmentalists and Pickens fans objecting to my implication that Pickens’ profit from expanding wind subsidies ought to cast suspicion on his call for more wind subsidies. “Why should I care if someone’s getting rich?” was the general gist, “windmills are good, and we need more of them.”

This objection is grounded in a good instinct: The profit motive, far from being evil, is the driving force behind most of our society’s advances. But, especially when it comes to government plans involving your tax dollars, asking cui bono helps us unearth less desirable aspects of the scheme. MORE

There is, of course, more...

There Will be Water

If water is the new oil, T. Boone Pickens is a modern-day John D. Rockefeller. Pickens owns more water than any other individual in the U.S. and is looking to control even more. He hopes to sell the water he already has, some 65 billion gallons a year, to Dallas, transporting it over 250 miles, 11 counties, and about 650 tracts of private property. The electricity generated by an enormous wind farm he is setting up in the Panhandle would also flow along that corridor. As far as Pickens is concerned, he could be selling wind, water, natural gas, or uranium; it's all a matter of supply and demand. "There are people who will buy the water when they need it. And the people who have the water want to sell it. That's the blood, guts, and feathers of the thing," he says.

In the coming decades, as growing numbers of people live in urban areas and climate change makes some regions much more prone to drought, water—or what many are calling "blue gold"—will become an increasingly scarce resource. By 2030 nearly half of the world's population will inhabit areas with severe water stress, according to the Organization for Economic Cooperation & Development. Pickens understands that. And while Texas is unusually lax in its laws about pumping groundwater, the rush to control water resources is gathering speed around the planet. In Australia, now in the sixth year of a drought, brokers in urban areas are buying up water rights from farmers. Rural residents around the U.S. are trying to sell their land (and water) to multi- national water bottlers like Nestlé (BW—Apr. 14). Companies that use large quantities of the precious resource to run their businesses are seeking to lock up water supplies. One is Royal Dutch Shell, which is buying groundwater rights in Colorado as it prepares to drill for oil in the shale deposits there.

Into this environment comes Pickens, who made a good living for a long time extracting oil and gas and now, at 80, believes the era of fossil fuel is over. So far he has spent $100 million and eight years on his project and still has not found any city in Texas willing to buy his water. But like many others, Pickens believes there's a fortune to be made in slaking the thirst of a rapidly growing population. If he pumps as much as he can, he could sell about $165 million worth of water to Dallas each year. "The idea that water can be sold for private gain is still considered unconscionable by many," says James M. Olson, one of America's preeminent attorneys specializing in water- and land-use law. "But the scarcity of water and the extraordinary profits that can be made may overwhelm ordinary public sensibilities."

...

In January, 2007, the Texas Legislature convened in the grand statehouse in Austin. The 80th session turned out to be very productive, and one person who kept busy during that time was J.E. Buster Brown, a former state senator and one of the most powerful lobbyists in town. Among Brown's clients is Mesa Water. "My job is primarily defensive," Brown says of his work for Pickens. "I'm watching to make sure there is no legislation passed that creates obstacles to Pickens doing what he wants to do. I'm supposed to make sure nothing bad happens."

Brown did more than that: He helped win Pickens a key new legal right. It was contained in an amendment to a major piece of water legislation. The amendment, one of more than 100 added after the bill had been reviewed in the House, allowed a water-supply district to transmit alternative energy and transport water in a single corridor, or right-of-way. "We helped move that along," says Stillwell. "We thought it would be handy and helpful to everyone."

After the bill passed, Tom "Smitty" Smith, Texas director of Public Citizens, an advocacy group, says several legislators were drinking coffee and reading through it. "Uh-oh," one said. They'd just realized the amendment would help Pickens build his pipeline. "Many legislators were watching for this play," Smith says, "and it still snuck by." State Senator Robert Duncan, a Republican who represents Lubbock, says: "It probably should have raised our suspicions, but we were moving a lot of bills. And it would have been hard to hold up this one even if we'd discovered the amendment."

Pickens still needed the power of eminent domain if he was going to build his pipeline and wind-power lines across private land. And by happy coincidence, the legislators passed a smaller bill that made that all the easier. The new legislation loosened the requirements for creating a water district. Previously, a district's five elected supervisors needed to be registered voters living within the boundaries of the district. Now, they only had to own land in the district; they could live and vote wherever. The bill, as it happens, was put forth by two legislators from Houston; Brown says he and Mesa had nothing to do with it. "That wasn't our bill," says Brown. "I wish I could take credit for it."

Pickens moved quickly to take advantage of the new rules. Over the summer of 2007, he sold eight acres on the back side of his ranch to five people in his employ: Stillwell, who resides in Houston, two of his executives in Dallas, and the couple who manage his ranch, Alton and Lu Boone. A few days later, Mesa Water filed a petition to create an eight-acre water-supply district with those five as the directors and sole members. On Nov. 6, Roberts County held an election to decide whether to form the new district. Only two people were qualified to take part: Alton and Lu Boone. The vote was unanimous. With that, Pickens won the right to issue tax-free bonds for his pipeline and electrical lines as well as the extraordinary power to claim land across swaths of the state. MORE

And of course, we could ask the esteemed oilman some even more POINTED questions