Santa Fe Paying More For Leasing Water Rights

SANTA FE, N.M.(AP) – The city of Santa Fe is paying more than 1.5 million dollars a year to lease water from the Jicarilla Apache Nation. And the cost is slated to rise.

The city has had a 50-year agreement with the tribe since 2005 to deliver the water to the city via the Rio Grande.

The city started using and paying for the full amount of the contracted water for the first time last year.

But beginning this year, the contract calls for annual lease payments to include inflation adjustments.

Next year’s payment will include inflation and market value adjustments to reflect the increasing price of water rights.

(Copyright 2008 by The Associated Press. All Rights Reserved.)