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Ground Water in Vermont: Current Revenue: Vermont has no structure in place to glean economic rent for this asset, so it goes without saying that Vermont’s.

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Presentation on theme: "Ground Water in Vermont: Current Revenue: Vermont has no structure in place to glean economic rent for this asset, so it goes without saying that Vermont’s."— Presentation transcript:

1 Ground Water in Vermont: Current Revenue: Vermont has no structure in place to glean economic rent for this asset, so it goes without saying that Vermont’s rent payment on groundwater equals zero at the present time. Vermont has no structure in place to glean economic rent for this asset, so it goes without saying that Vermont’s rent payment on groundwater equals zero at the present time.

2 Current Management Structure: Unlike the majority of states in the country, Vermont does not have an overall water use program that addresses withdrawals of surface water, groundwater, and water from springs. [1] [1] We have adopted the Correlative Rights “Doctrine” [Statute] [1][1] VNRC Memorandum, Groundwater Study Committee: Overview of GW Issue in VT, 12/07/07, Jon Groveman pg 2 [1]

3 Oil and Water Comparison: Extremely low overhead compared to a similar institutional model 24-Ounce Bottle Water Calculator 24-Ounce Bottle Water Calculator Cost of one acre foot of water (An acre foot of water is 43,560 cubic feet or roughly 326,000 gallons) $1,630.00Cost of Bottling$0.10Selling Price of 1 Bottle $0.85 GROSS PROFIT: ONE ACRE FOOT SOLD $1,300, Cost of one acre foot of water (An acre foot of water is 43,560 cubic feet or roughly 326,000 gallons) $1,630.00Cost of Bottling$0.10Selling Price of 1 Bottle $0.85 GROSS PROFIT: ONE ACRE FOOT SOLD $1,300, information/waterprofit.php information/waterprofit.php information/waterprofit.php information/waterprofit.php documents/education.pdf documents/education.pdf

4 Future Economic Rent Revenue: Currently an average household consumes about 200 gallons of water per day. [2] [2] For example, Clear Source is (on average) withdrawing 78,427 gallons per day. This withdrawal amount is approximately 28, over the limit of the Vermont resident usage At a penny a gallon over the 50,000 G residential limit, the difference would be 284 dollars and 27 cents a day paid to the state or distributed to residents of Vermont for the use of their water. 240 (approximate week days per yr.) X = 240 (approximate week days per yr.) X = $ 68,224 a year from Clear Source alone [2][2] (Power Point Presentations: Air, Water, Chemicals) [2]http://www.uvm.edu/~gflomenh/GRN-TAX-VT-PA395/

5 Future Suggestions for Management Structure: Support (Senate Bill 304) – or future bills like it - which would give citizens of Vermont a “public trust” designation. Such a designation is a crucial step [3] in the eventual direction of creating an infrastructure for economic rent Support (Senate Bill 304) – or future bills like it - which would give citizens of Vermont a “public trust” designation. Such a designation is a crucial step [3] in the eventual direction of creating an infrastructure for economic rent [3] Under such law: Not only could bottle water companies afford the aforementioned rent payment of a penny on any gallon beyond the Vermont residential use, since they are still producing (at least in the example from Maine in the last slide) approximately 89% net profit. A withdrawal cap placed in addition to a standard percentage of 2% (known as a Preservation Fee) could be collected from surplus profits (“rent”) and it would have little to no effect on the cost of their operation Under such law: Not only could bottle water companies afford the aforementioned rent payment of a penny on any gallon beyond the Vermont residential use, since they are still producing (at least in the example from Maine in the last slide) approximately 89% net profit. A withdrawal cap placed in addition to a standard percentage of 2% (known as a Preservation Fee) could be collected from surplus profits (“rent”) and it would have little to no effect on the cost of their operation [3] [3] “The state’s water quantity laws are much weaker than its regulations regarding water quality.” Jon Groveman (the chief architect of S. 304) as quoted by Mike Ives in Seven Days Journal article “Groundwater Rising”, Feb. 27-March 05, 2008 edition [3]


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