October 28th, 2014 Is WAWS "too big to fail"? Over the last few months, we've tried to bring to your attention a state government project that has f

      Web Version   Preferences   Unsubscribe  
North Dakota Watchdog Network Logo
***

October 28th, 2014

***

Is WAWS "too big to fail"?

***

Over the last few months, we've tried to bring to your attention a state government project that has far exceeded its original scope.

Today, the latest article regarding the Western Area Water Supply Authority (WAWS) raises the question of whether there is any hope to reining in a project designed to provide water for residents, but has instead focused primarily on competing with private industrial water providers.

According to the article in the Bismarck Tribune's Bakken breakout, the project backers are already planning to expand this project to nearly a half billion dollars:

The Western Area Water Supply Authority was originally a $150 million regional water supply project approved during the 2011 session. A total of $110 million was provided at that time through a Bank of North Dakota loan. The authority was to come back in 2013 for the remaining $40 million.

In 2013, lawmakers approved the final $40 million along with an additional $79 million to be used for more rural water projects planned as part of the build-out.

Wirtz said, beyond the 2015-17 funding request, additional requests anticipated over the following two biennia put the total project cost at about $460.5 million.

We know that the vast majority of the water being sold is going to industrial water sales for use as fracking water. These are sales that, in a free-market system, as one would expect North Dakota Republicans to support, that should be supplied by the private sector.

Before legislators accept the track this project is on, they should demand that a study of whether this is impacting the long term sustainability of the private industrial water sales. If the state is going to massively expand a new socialist state-owned and managed industry, then the public deserves to know what the impact on private businesses will be.

The public also deserves to know what WAWS will do to protect itself from competition in the future.

Will they try to tax private water sales, as they attempted in 2013?

That idea was defeated by only 12 votes in a Republican dominated House.

Will they try to create exclusive zones where only state-socialized industry can exist, as they tried in 2013?

The state, via direct funding and loan guarantees, is banking heavily on this project, and the public deserves to know how far the state will go to protect it - before it goes there.

***

-Dustin Gawrylow, Managing Director

North Dakota Watchdog Network

***
Paypal Button
1px