There Will Be Water

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Pickens at his Mesa Vista ranch in 2003 David Bowser/Black Star

Pickens as a boy in an undated photo

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In all, Pickens, CRMWA, and Amarillo have spent about $150 million to buy up nearly 80% of the water rights in Roberts County, undermining and outbidding one another along the way. One unsurprising effect of their competition is that the price of an acre of water has in some places doubled, to $600. That's something in which Pickens takes pride. Much as he did in the 1980s, when he went after big oil companies he believed weren't doing right by their shareholders, Pickens now talks about creating value for Roberts County landowners. They make money from selling their water while continuing to live, run cattle, and hunt on their property. "I told them I was going to raise the value of the land, and I accomplished that. The landowners are all tickled to death. I made our water worth something. And anybody with any sense would sell it."

Not all Roberts County landowners wanted to do business with him, though. Pickens intended to pull water from an aquifer that is pretty much the sole source for the Panhandle, and that isn't refilled quickly, and sell it to a place like Dallas, whose water use is the highest of any city in Texas. This seemed ludicrous, even reckless, to some. C.E. Williams runs the Panhandle Groundwater Conservation District, which is responsible for managing the competing demands on the region's share of the Ogallala. He puts it this way: "As a district, we cannot pick and choose where the water goes. But personally I am concerned. I have a son who is an irrigated farmer, and I have grandkids, and I want to make sure that they can conduct commerce when they want to."

Pickens has a way of dismissing the complexity of a situation, sometimes even the possibility of an opinion contrary to his own. In this case, any opposition to his plan from anyone who is not a Roberts County landowner, who is not essentially a shareholder in this venture, he deems irrelevant. Williams, he points out, doesn't himself have any property. "Water is a commodity," he says. "Heck, isn't it like oil? You have to come back to who owns the water. The groundwater is owned by the landowner. That's it." When it comes to potential buyers, Pickens cares about only one thing: how much they're willing to pay. "Do I care what Dallas does with the water? Hell no."

Republican State Representative Warren Chisum is a Roberts County rancher who owns 12,000 acres next to Pickens and sold his water to Amarillo in 2001. He would seem to be a natural ally. He's not. "My water will remain local," he says. "It's controversial to ship it out of the Panhandle. When we run out, we're done. The long-term value is to keep it here. That's contrary to what Pickens wants to do. It's his water. But he won't be here in 50 years."

In 2002, Pickens began approaching several of Texas' sprawling cities, all of which share one defining feature: Their populations are growing so quickly that they are constantly in need of new supplies of water. But with water, as with so much else, location is critical. And Pickens' water is far, far away from anyplace that might buy it. Pickens knew he'd have to build a pipeline, and to do so at anything resembling a reasonable cost, he'd need the power of eminent domain—the right of a government entity to force the sale of private property for the public good. Water utilities have that right. If Dallas agreed to buy Pickens' water, it could extend such authority to him. But Dallas deemed Pickens' price too high and declined to do a deal. So Pickens and his executives tried to create a Fresh Water Supply District—a government entity that would have that power. But they couldn't get it through.

Over the next several years, Pickens continued accumulating water rights and began to lease other land, this time with the idea of creating the world's biggest wind farm. "One of the great wind areas is right up where we are," says Robert L. Stillwell, Pickens' general counsel. "You can set it right on top of where the water is." And since, one day anyway, Dallas may well buy both, Mesa could use a single right-of-way for the water pipeline and the electric lines.