O C T O B E R2 0 0 1


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tel: 231-882-4723
fax: 231-882-7350
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In cooperation with:

www.mecprotects.org

The Michigan Land Use Institute gratefully acknowledges the Wege Foundation for making possible MLUI’s work on Great Lakes water issues.

Front cover: Lower Herring Lake outlet to Lake Michigan in Benzie County.

All photos by Patrick Owen.

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IV. POLICY PROGRESS
Michigan and other Great Lakes governments took a major step forward in water policy when they completed negotiations in 2001 on a common policy for preserving and protecting the region’s unique and vital supplies of fresh water. On June 18, 2001, governors from the basin’s eight states, along with the premiers of Ontario and Quebec, signed Annex 2001. The agreement commits Great Lakes governments to promoting water conservation, obtaining better information about Great Lakes hydrology for supply management, and developing a common policy for handling proposals to export and sell the region’s water.

The challenge now is for Michigan and the other governments involved to put the regional policy goals into practice at home. Michigan’s unwillingness to do so when faced with the Perrier Group’s proposal demonstrates the need for the Legislature to resolve the water ownership and management issues that the water bottler has prompted.

Michigan’s Engler administration has worked hard to encourage the Perrier Group to set up its bottling operation. Before the DEQ approved the Perrier Group’s two well permits on Aug. 15, 2001, the Michigan Economic Development Corporation offered the company $9.6 million in tax abatements and other assistance.

The state’s warm welcome for the Perrier Group conflicts, however, with the tough public posture Gov. Engler has taken on overall Great Lakes water security as a leader in the basin-wide Annex 2001 initiative to protect the region’s water supply.

ìToday we need to guard that water like gold,” Gov. Engler told a group of voters during the summer of 2001 in Muskegon. But issuing a blanket well drilling permit to the Perrier Group ó giving the company free commercial use of the state’s groundwater with virtually no regulatory oversight after the well is drilled ó is not the way Mr. Engler agreed to do it under Annex 2001.

Under the agreement, no state or province will allow a new or increased withdrawal unless the proposal:

ï Includes implementation of all reasonable and appropriate water conservation measures.

ï Does not, individually or cumulatively, cause significant adverse impact to the quantity or quality of the waters and water-dependent natural resources of the Great Lakes basin.

ï Results in an improvement to the waters and water-dependent natural resources of the Great Lakes basin.

ï Complies with all applicable laws.

Michigan has not demonstrated that the Perrier Group would meet this ìnet improvement” standard or that the company’s wells, together with other users, would not harm the region’s aquatic resources. That’s because the state’s permitting process and knowledge about its groundwater supplies are inadequate to prove that the Perrier Group’s operation is a reasonable use of public waters that will cause no harm to surrounding property owners and the local ecology.

Annex 2001 sets a high standard against degradation and diminishment of Great Lakes waters. It also extends protection to all water users, including ecological resources, such as fish, wildlife, and wetlands. Great Lakes governments will judge proposed withdrawals not simply by their potential to cause harm to the water resources and the living creatures that depend on water, but also by their ability to show improvement to the related aquatic environment. The agreement modernizes the region’s water policy by moving beyond the benefits of water for individual land parcels to allocating a water right to the broader, interconnected environment.

Special Report: More >>

Emerging Global
Water Markets

Water is the planet’s most valuable resource. It is also the most endangered as wasteful consumption and pollution deplete supplies in many parts of the world. According to the United Nations, more than one billion people already lack an adequate supply of fresh drinking water. High demand combined with growing scarcity is creating incredible opportunities for companies that can tap water in one area and sell it to people elsewhere.

The potential for commercial water exploitation is not a futuristic notion but a real and present danger. The Global Water Corporation, for example has announced plans to ship up to five billion gallons a year of glacier water from Alaska by tanker to the Middle East. And despite rejection three years ago from Great Lakes governments, representatives of the Ontario-based Nova Group told a Canadian newspaper in 2001 that they plan eventually to resubmit the company’s request to ship tanker loads of Lake Superior water to Asia.

International economic treaties, such as the North American Free Trade Agreement, have the potential to support and promote such investors’ claims on water if governments fail to manage pure water as a public good with clear, consistent, and unbiased principles. Once nations or states allow commercial exports of water, they could trigger global trade provisions that protect investors’ rights in relation to “tradable goods.” International treaties could then obligate states to license water export schemes or compensate those companies they deny.

Competition for increasingly scarce water resources is also a concern, with problems ranging from desperate riots in China and other countries to intense water battles among several U.S. states.

Great American rivers like the Colorado and the Rio Grande now trickle into the ocean because of overconsumption. Large-scale crop irrigation in arid regions and the rapid spread of green suburban lawns on land more suited to cacti stress the region’s water resources. Yet despite water scarcity, population in southwestern states is expected to increase 30 percent over the next 25 years. Rather than address water waste, leaders are looking for ways to ship desert cities and their suburbs more water. In July 2001, U.S. President George Bush, for example, announced his desire to talk with Canada about exporting water to the arid southwest.

Even water-rich areas, such as the southeastern United States, feel the water supply pressure with Georgia, Alabama, and Florida fighting since the late 1990s over a formula for allocating water from the Chattahoochee River. And in the summer of 2001, the Great Lakes cities of Chicago and Detroit both suffered water shortages as suburban growth outpaced the government’s ability to build and pay for new water lines.
 

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