A large Canterbury water permit has attracted two potential buyers and is expected to sell for around $600,000.The permit, listed with the Hydro Trader brokerage website, allows 55 litres per second to be taken from the Selwyn-Waimakiriri groundwater zone
A large Canterbury water permit has attracted two potential buyers and is expected to sell for around $600,000.
The permit, listed with the Hydro Trader brokerage website, allows 55 litres per second to be taken from the Selwyn-Waimakiriri groundwater zone for irrigation use until 2040.
Hydro Trader director Tony Davoren expected negotiations to conclude over the next few weeks, but stressed that the sale was subject to regional council approval.
“Even once you’ve secured water, there’s still some hoops to jump through before you get it up and operating on your land,” he said.
The purchasing applicant must be within the same groundwater zone as the seller and seek written approval from neighbours within two kilometres of the new take site.
If written approval is withheld, the applicant must pay up to $15,000 for an aquifer test to prove that no localised interference will occur.
Mr Davoren told NBR that applying for a transfer is much easier and cost effective than applying for new consent, as the water in question has already been allocated.
“For a new consent, you have to go to a hearing and fight your case vehemently to prove that taking more water from the groundwater zone or river will not have any adverse effects,” he said.
Resource lawyer Greg Milner-White made a strong case in favour of water rights trading last month, but former Environment Canterbury councillor Eugenie Sage believes a market for water is premature.
She told NBR that “trading should be approached with considerable caution”, as applicants may be encouraged to apply for more water than they actually needed.
Mr Davoren told NBR that the extra Selwyn-Waimakiriri allocation became available after the seller decided not to develop the remainder of their farm.
The sale of water permits is permitted under the Resource Management Act and Environment Canterbury’s Natural Resources Regional Plan.
