Browsing by Author "Lacewell, Ronald D."

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Economic and Conservation Evaluation of Capital Renovation Project: Hidalgo County Irrigation District No. 2 (San Juan) - Relining Lateral A – Preliminary
(Texas Water Resources Institute, 2003-05) Popp, Michael C.; Robinson, John R.C.; Sturdivant, Allen W.; Lacewell, Ronald D.; Rister, M. Edward
Initial construction costs and net annual changes in operating and maintenance expenses are identified for a single-component capital renovation project proposed by Hidalgo County Irrigation District No. 2, (a.k.a. San Juan) to the North American Development Bank (NADBank) and Bureau of Reclamation. The proposed project involves relining “Lateral A” with a geomembrane and shotcrete cover. Both nominal and real estimates of water and energy savings and expected economic and financial costs of those savings are identified throughout the anticipated useful life for the proposed project. Sensitivity results for both the cost of water savings and cost of energy savings are presented for several important parameters. Annual water and energy savings forthcoming from the total project are estimated, using amortization procedures, to be 2,542 ac-ft of water per year and 551,738,646 BTUs (161,705 kwh) of energy per year. The calculated economic and financial cost of water savings is estimated to be $74.49 per ac-ft. The calculated economic and financial cost of energy savings is estimated to be $0.0003698 per BTU ($1.262 per kwh). In addition, expected real (vs nominal) values are indicated for the Bureau of Reclamation’s three principal evaluation measures specified in the United States Public Law 106-576 legislation. The initial construction cost per ac-ft of water savings measure is $57.76 per ac-ft of water savings. The initial construction cost per BTU (kwh) of energy savings measure is $0.0002661 per BTU ($0.908 per kwh). The ratio of initial construction costs per dollar of total annual economic savings is estimated to be -14.29.
Economic and Conservation Evaluation of Capital Renovation Projects: Brownsville Irrigation District – 72" and 48" Pipeline Replacing Main Canal – Final
(Texas Water Resources Institute, 2003-10) Lacewell, Ronald D.; Robinson, John R.C.; Sturdivant, Allen W.; Popp, Michael C.; Rister, M. Edward
Initial construction costs and net annual changes in operating and maintenance expenses are identified for a single-component capital renovation project proposed by Brownsville Irrigation District to the North American Development Bank (NADB) and Bureau of Reclamation (BOR). The proposed project involves constructing a 72" and 48" pipeline to replace 2.31 miles of the “Main Canal.” Both nominal and real estimates of water and energy savings and expected economic and financial costs of those savings are identified throughout the anticipated 49-year useful life for the proposed project. Sensitivity results for both the cost of water savings and cost of energy savings are presented for several important parameters. Annual water and energy savings forthcoming from the total project are estimated, using amortization procedures, to be 1,872 ac-ft of water per year and 318,479,103 BTUs (93,341 kwh) of energy per year. The calculated economic and financial cost of water savings is estimated to be $27.98 per ac-ft. The calculated economic and financial cost of energy savings is estimated at $0.0001933 per BTU ($0.660 per kwh). In addition, expected real (rather than nominal) values are indicated for the Bureau of Reclamation’s three principal evaluation measures specified in the United States Public Law 106-576 legislation. The initial construction cost per ac-ft of water savings measure is $58.60 per ac-ft of water savings. The initial construction cost per BTU (kwh) of energy savings measure is $0.0003444 per BTU ($1.175 per kwh). The ratio of initial construction costs per dollar of total annual economic savings is estimated to be -1.53.
Economic and Conservation Evaluation of Capital Renovation Projects: Brownsville Irrigation District – 72" and 54" Pipeline Replacing Main Canal – Preliminary
(Texas Water Resources Institute, 2003-07) Robinson, John R.C.; Lacewell, Ronald D.; Sturdivant, Allen W.; Popp, Michael C.; Rister, M. Edward
Initial construction costs and net annual changes in operating and maintenance expenses are identified for a single-component capital renovation project proposed by Brownsville Irrigation District to the North American Development Bank (NADB) and Bureau of Reclamation (BOR). The proposed project involves constructing a 72" and 54" pipeline to replace 2.29 miles of the “Main Canal.” Both nominal and real estimates of water and energy savings and expected economic and financial costs of those savings are identified throughout the anticipated 49-year useful life for the proposed project. Sensitivity results for both the cost of water savings and cost of energy savings are presented for several important parameters. Annual water and energy savings forthcoming from the total project are estimated, using amortization procedures, to be 1,844 ac-ft of water per year and 313,797,977 BTUs (91,969 kwh) of energy per year. The calculated economic and financial cost of water savings is estimated to be $24.70 per ac-ft. The calculated economic and financial cost of energy savings is estimated at $0.0001740 per BTU ($0.594 per kwh). In addition, expected real (rather than nominal) values are indicated for the Bureau of Reclamation’s three principal evaluation measures specified in the United States Public Law 106-576 legislation. The initial construction cost per ac-ft of water savings measure is $56.74 per ac-ft of water savings. The initial construction cost per BTU (kwh) of energy savings measure is $0.0003335 per BTU ($1.138 per kwh). The ratio of initial construction costs per dollar of total annual economic savings is estimated to be -1.46.
Economic and Conservation Evaluation of Capital Renovation Projects: Cameron County Irrigation District No. 2 (San Benito) – Infrastructure Rehabilitation – Preliminary
(Texas Water Resources Institute, 2003-07) Popp, Michael C.; Robinson, John R.C.; Sturdivant, Allen W.; Lacewell, Ronald D.; Rister, M. Edward
Initial construction costs and net annual changes in operating and maintenance expenses are identified for a five-component capital renovation project proposed by Cameron County Irrigation District No. 2, (a.k.a. San Benito) to the Bureau of Reclamation (BOR). The proposed project involves rehabilitating 42+ miles of canals, laterals, and pipelines. Both nominal and real estimates of water and energy savings and expected economic and financial costs of those savings are identified throughout the anticipated useful lives for all five components of the proposed project. Sensitivity results for both the cost of water savings and cost of energy savings are presented for several important parameters. Annual water and energy savings forthcoming from the total project are estimated, using amortization procedures, to be 19,580 ac-ft of water per year and 2,151,277,209 BTUs (630,503 kwh) of energy per year. The calculated economic and financial cost of water savings is estimated to be $45.60 per ac-ft. The calculated economic and financial cost of energy savings is estimated at $0.0004399 per BTU ($1.501 per kwh). In addition, expected real (vs nominal) values are indicated for the Bureau of Reclamation’s three principal evaluation measures specified in the United States Public Law 106-576 legislation. The aggregate initial construction cost per ac-ft of water savings measure is $46.98 per ac-ft of water savings. The aggregate initial construction cost per BTU (kwh) of energy savings measure is $0.0004275 per BTU ($1.459 per kwh). The aggregate ratio of initial construction costs per dollar of total annual economic savings is estimated to be -9.04.
Economic and Conservation Evaluation of Capital Renovation Projects: Cameron County Irrigation District No. 2 (San Benito) – Interconnect Between Canals 39 and 13-A1 and Replacement of Rio Grande Diversion Pumping Plant
(Texas Water Resources Institute, 2003) Ellis, John R.; Popp, Michael C.; Robinson, John R.C.; Sturdivant, Allen W.; Lacewell, Ronald D.; Rister, M. Edward
Initial construction costs and net annual changes in operating and maintenance expenses are identified for the capital renovation project proposed by the Cameron County Irrigation District No. 2 (a.k.a. San Benito) to the North American Development Bank (NADBank) and Bureau of Reclamation. Both nominal and real, expected economic and financial costs of water and energy savings are identified throughout the anticipated useful lives for both components of the proposed project (i.e., a lined interconnect between Canals 39 and 13-A1 and replacement of the Rio Grande diversion pumping plant). Sensitivity results for both the cost of water savings and cost of energy savings are presented for several important parameters. Expected cost of water savings and cost of energy savings for both components are aggregated into a composite set of cost measures for the total proposed project. Aggregate cost of water savings is estimated to be $41.26 per ac-ft and energy savings are measured at an aggregate value of $0.0001586 per BTU (i.e., $0.541 per kwh). In addition, expected values are indicated for the Bureau of Reclamation’s three principal evaluation measures specified in the United States Public Law 106-576 legislation. The aggregate initial construction cost per ac-ft of water savings measure is $157.07 per ac-ft of water savings. The aggregate initial construction cost per BTU (kwh) of energy savings measure is $0.0001777 per BTU ($0.606 per kwh). The ratio of initial construction costs per dollar of total annual economic savings is estimated to be -3.80.
Economic and Conservation Evaluation of Capital Renovation Projects: Edinburg Irrigation District Hidalgo County No. 1 - 72" Pipeline Replacing Delivery Canal and Multi-Size Pipeline Replacing Delivery Canal
(Texas Water Resources Institute, 2002-11) Ellis, John R.; Popp, Michael C.; Robinson, John R.C.; Sturdivant, Allen W.; Lacewell, Ronald D.; Rister, M. Edward
Initial construction costs and net annual changes in operating and maintenance expenses are identified for the capital renovation project proposed by Edinburg Irrigation District Hidalgo County No. 1 to the North American Development Bank (NADBank). Both nominal and real, expected economic and financial costs of water and energy savings are identified throughout the anticipated useful lives for both components of the proposed project (i.e., 72" pipeline replacing a segment of delivery canal along the "Curry Main" and multi-size pipeline replacing a segment of delivery canal along the "North Branch / East Main"). Sensitivity results for both the cost of water savings and cost of energy savings are presented for several important parameters. Expected cost of water savings and cost of energy savings for both components are aggregated into a composite set of cost measures for the total proposed project. Aggregate cost of water savings is estimated to be $29.87 per ac-ft and energy savings are measured at an aggregate value of $0.0000595 per BTU (i.e., $0.203 per kwh). In addition, expected values are indicated for the Bureau of Reclamation's three principal evaluation measures specified in the United States Public Law 106-576 legislation. The aggregate initial construction cost per ac-ft of water savings measure is $50.90 per ac-ft of water savings. The aggregate initial construction cost per BTU (kwh) of energy savings measure is $0.0000777 per BTU ($0.265 per kwh). The ratio of initial construction costs per dollar of total annual economic savings is estimated to be -2.01.
Economic and Conservation Evaluation of Capital Renovation Projects: Harlingen Irrigation District Cameron County No. 1 � Canal Meters and Telemetry Equipment, Impervious-Lining of Delivery Canals, Pipelines Replacing Delivery Canals, and On-Farm Delivery-Site Meters
(Texas Water Resources Institute, 2002-10) Ellis, John R.; Popp, Michael C.; Robinson, John R.C.; Sturdivant, Allen W.; Lacewell, Ronald D.; Rister, M. Edward
Initial construction costs and net annual changes in operating and maintenance expenses are identified for the capital renovation project proposed by Harlingen Irrigation District Cameron County No. 1 to the North American Development Bank (NADBank). Both nominal and real, expected economic and financial costs of water and energy savings are identified throughout the anticipated useful lives for each of the four components of the proposed project (i.e., canal meters and telemetry equipment, impervious-lining of delivery canals, 24" pipelines replacing delivery canals, and on-farm delivery-site meters). Sensitivity results for both the cost of water savings and cost of energy savings are presented for several important parameters. Expected cost of water savings and cost of energy savings for each of the four components are aggregated into a composite set of cost measures for the total proposed project. Aggregate cost of water savings is estimated to be $31.37 per ac-ft and energy savings are measured at an aggregate value of $0.0002253 per BTU (i.e., $0.769 per kwh). In addition, expected values are indicated for the Bureau of Reclamation’s three principal evaluation measures specified in the Public Law 106-576 legislation. The aggregate initial construction cost per ac-ft of water savings measure is $26.87 per ac-ft of water savings. The aggregate initial construction cost per BTU (kwh) of energy savings measure is $0.0001603 per BTU ($0.547 per kwh). The amount of initial construction costs per dollar of total annual economic savings is estimated to be -1.30.
Economic and Conservation Evaluation of Capital Renovation Projects: Hidalgo County Irrigation District No. 1 (Edinburg) - Curry Main - Final
(Texas Water Resources Institute, 2003-09) Robinson, John R.C.; Lacewell, Ronald D.; Sturdivant, Allen W.; Popp, Michael C.; Rister, M. Edward
Initial construction costs and net annual changes in operating and maintenance expenses are identified for a single-component capital renovation project proposed by Hidalgo County Irrigation District No. 1 to the Bureau of Reclamation and North American Development Bank. The proposed project involves installing 1 mile of 72" pipeline to replace a segment of the Curry Main canal. Both nominal and real estimates of water and energy savings and expected economic and financial costs of those savings are identified throughout the anticipated 49-year useful life for the proposed project. Sensitivity results for both the cost of water savings and cost of energy savings are presented for several important parameters. Annual water and energy savings forthcoming from the total project are estimated, using amortization procedures, to be 2,258 ac-ft of water per year and 1,092,823,269 BTUs (320,288 kwh) of energy per year. The calculated economic and financial cost of water savings is estimated to be $24.68 per ac-ft. The calculated economic and financial cost of energy savings is estimated at $0.0000598 per BTU ($0.204 per kwh). In addition, expected real (rather than nominal) values are indicated for the Bureau of Reclamation’s three principal evaluation measures specified in the United States Public Law 106-576 legislation. The initial construction cost per ac-ft of water savings measure is $27.49 per ac-ft of water savings. The initial construction cost per BTU (kwh) of energy savings measure is $0.0000568 per BTU ($0.194 per kwh). The ratio of initial construction costs per dollar of total annual economic savings is estimated to be -2.84.
Economic and Conservation Evaluation of Capital Renovation Projects: Hidalgo County Irrigation District No. 1 (Edinburg) - North Branch / East Main - Final
(Texas Water Resources Institute, 2003-10) Robinson, John R.C.; Lacewell, Ronald D.; Popp, Michael C.; Sturdivant, Allen W.; Rister, M. Edward
Initial construction costs and net annual changes in operating and maintenance expenses are identified for a single-component capital renovation project proposed by Hidalgo County Irrigation District No. 1 to the Bureau of Reclamation and North American Development Bank. The proposed project involves installing 4.83 miles of multi-size pipeline to replace a segment of the North Branch / East Main canal. Both nominal and real estimates of water and energy savings and expected economic and financial costs of those savings are identified throughout the anticipated 48-year useful life for the proposed project. Sensitivity results for both the cost of water savings and cost of energy savings are presented for several important parameters. Annual water and energy savings forthcoming from the total project are estimated, using amortization procedures, to be 5,838 ac-ft of water per year and 3,293,049,926 BTUs (965,138 kwh) of energy per year. The calculated economic and financial cost of water savings is estimated to be $15.58 per ac-ft. The calculated economic and financial cost of energy savings is estimated at $0.0000392 per BTU ($0.134 per kwh). In addition, expected real (rather than nominal) values are indicated for the Bureau of Reclamation’s three principal evaluation measures specified in the United States Public Law 106-576 legislation. The initial construction cost per ac-ft of water savings measure is $30.68 per ac-ft of water savings. The initial construction cost per BTU (kwh) of energy savings measure is $0.0000544 per BTU ($0.186 per kwh). The ratio of initial construction costs per dollar of total annual economic savings is estimated to be -1.58.
Economic and Conservation Evaluation of Capital Renovation Projects: Hidalgo County Irrigation District No. 2 (San Juan) – 48" Pipeline Replacing Wisconsin Canal – Preliminary
(Texas Water Resources Institute, 2003-05) Robinson, John R.C.; Sturdivant, Allen W.; Rister, M. Edward; Lacewell, Ronald D.; Popp, Michael C.
Initial construction costs and net annual changes in operating and maintenance expenses are identified for a single-component capital renovation project proposed by Hidalgo County Irrigation District No. 2, (a.k.a. San Juan) to the North American Development Bank (NADBank) and Bureau of Reclamation. The proposed project involves constructing a 48" pipeline to replace the “Wisconsin Canal.” Both nominal and real estimates of water and energy savings and expected economic and financial costs of those savings are identified throughout the anticipated useful life for the proposed project. Sensitivity results for both the cost of water savings and cost of energy savings are presented for several important parameters. Annual water and energy savings forthcoming from the total project are estimated, using amortization procedures, to be 977 ac-ft of water per year and 372,892,700 BTUs (109,289 kwh) of energy per year. The calculated economic and financial cost of water savings is estimated to be $70.97 per ac-ft. The calculated economic and financial cost of energy savings is estimated at $0.0002124 per BTU ($0.725 per kwh). In addition, expected real (vs nominal) values are indicated for the Bureau of Reclamation’s three principal evaluation measures specified in the United States Public Law 106-576 legislation. The initial construction cost per ac-ft of water savings measure is $75.29 per ac-ft of water savings. The initial construction cost per BTU (kwh) of energy savings measure is $0.0001973 per BTU ($0.673 per kwh). The ratio of initial construction costs per dollar of total annual economic savings is estimated to be -3.12.
Economic and Conservation Evaluation of Capital Renovation Projects: Maverick County Water Control and Improvement District No. 1 (Eagle Pass) – Lining Main Canal – Final
(Texas Water Resources Institute, 2004-04) Popp, Michael C.; Robinson, John R.C.; Sturdivant, Allen W.; Lacewell, Ronald D.; Rister, M. Edward
Initial construction costs and net annual changes in operating and maintenance expenses are identified for a capital renovation project proposed by Maverick County Water Control and Improvement District No. 1 to the Bureau of Reclamation and North American Development Bank. The proposed project involves lining 3 miles of the “Main Canal” with a urethane lining and a concrete anchor and ballast system. Both nominal and real estimates of water and energy savings and expected economic and financial costs of those savings are identified throughout the anticipated 49-year useful life for the proposed project. Sensitivity results for both the cost of water savings and cost of energy savings are presented for several important parameters. Annual water and energy savings forthcoming from the total project are estimated, using amortization procedures, to be 8,084 ac-ft of water per year and 2,041,095,338 BTUs (598,211 kwh) of energy per year. The calculated economic and financial cost of water savings is estimated to be $33.37 per ac-ft. The calculated economic and financial cost of energy savings is estimated to be $0.0001322 per BTU ($0.451 per kwh). In addition, expected real (rather than nominal) values are indicated for the Bureau of Reclamation’s three principal evaluation measures specified in the United States Public Law 106-576 legislation. The initial construction cost per ac-ft of water savings measure is $25.97 per ac-ft of water savings. The initial construction cost per BTU (kwh) of energy savings measure is $0.0001029 per BTU ($0.351 per kwh). The ratio of initial construction costs per dollar of total annual economic savings is estimated to be -13.65.
Economic and Conservation Evaluation of Capital Renovation Projects: Maverick County Water Control and Improvement District No. 1 (Eagle Pass) – Lining Main Canal – Preliminary
(Texas Water Resources Institute, 2004-01) Popp, Michael C.; Robinson, John R.C.; Sturdivant, Allen W.; Lacewell, Ronald D.; Rister, M. Edward
Initial construction costs and net annual changes in operating and maintenance expenses are identified for a capital renovation project proposed by Maverick County Water Control and Improvement District No. 1 to the Bureau of Reclamation and North American Development Bank. The proposed project involves lining 3 miles of the “Main Canal” with a urethane lining and a concrete anchor and ballast system. Both nominal and real estimates of water and energy savings and expected economic and financial costs of those savings are identified throughout the anticipated 49-year useful life for the proposed project. Sensitivity results for both the cost of water savings and cost of energy savings are presented for several important parameters. Annual water and energy savings forthcoming from the total project are estimated, using amortization procedures, to be 8,084 ac-ft of water per year and 2,041,095,338 BTUs (598,211 kwh) of energy per year. The calculated economic and financial cost of water savings is estimated to be $33.37 per ac-ft. The calculated economic and financial cost of energy savings is estimated to be $0.0001322 per BTU ($0.451 per kwh). In addition, expected real (rather than nominal) values are indicated for the Bureau of Reclamation’s three principal evaluation measures specified in the United States Public Law 106-576 legislation. The initial construction cost per ac-ft of water savings measure is $25.97 per ac-ft of water savings. The initial construction cost per BTU (kwh) of energy savings measure is $0.0001029 per BTU ($0.351 per kwh). The ratio of initial construction costs per dollar of total annual economic savings is estimated to be -13.65.
Economic and Conservation Evaluation of Capital Renovation Projects: United Irrigation District of Hidalgo County (United) – Rehabilitation of Main Canal, Laterals, and Diversion Pump Station – Final
(Texas Water Resources Institute, 2006-03) Sturdivant, Allen W.; Lacewell, Ronald D.; Rister, M. Edward
Initial construction costs and net annual changes in operating and maintenance expenses are identified for a three-component capital renovation project proposed by the United Irrigation District to the U.S. Bureau of Reclamation (USBR). The proposed project involves: installing 4.66 miles of pipeline in the Main Canal and Lateral 7N, installing 13.46 miles of pipeline in several laterals and sub-laterals, and rehabilitating the District’s Rio Grande diversion pumping plant. Both nominal and real estimates of water and energy savings and expected economic and financial costs of those savings are identified throughout the anticipated useful lives for all three components. Sensitivity results for both the cost of saving water and the cost of saving energy are presented for several important parameters. Annual water and energy savings forthcoming from the total project are estimated, using amortization procedures, to be 1,522 ac-ft of water per year and 3,520,302,471 BTUs (1,031,742 kwh) of energy per year. The calculated economic and financial cost of saving water is estimated to be $341.51 per ac-ft. The calculated economic and financial cost of saving energy is estimated at $0.0001574 per BTU ($0.537 per kwh). In addition, real (vs. nominal) values are estimated for the USBRs three principal evaluation measures specified in the U.S. Public Law 106-576. The aggregate initial construction cost per ac-ft of water savings measure is $359.42 per ac-ft of water savings. The aggregate initial construction cost per BTU (kwh) of energy savings measure is $0.0003468 per BTU ($1.183 per kwh). The aggregate ratio of initial construction costs per dollar of total annual economic savings is estimated to be -3.551.
Economic and Financial Costs of Saving Water and Energy: Preliminary Analysis for Hidalgo County Irrigation District No. 2 (San Juan) – Replacement of Pipeline Units I-7A, I-18, and I-22
(Texas Water Resources Institute, 2007-06) Rister, M. Edward; Lacewell, Ronald D.; Sturdivant, Allen W.
Initial construction costs and net annual changes in operating and maintenance expenses are identified for a three-component capital renovation project proposed by Hidalgo County Irrigation District No. 2. The proposed project primarily consists of replacing aged mortar-joint pipe in pipeline units I-7A, I-18, and I-22 with new rubber-gasketed, reinforced concrete pipe. Both nominal and real estimates of water and energy savings and expected economic and financial costs of those savings are identified throughout the anticipated useful life for the proposed project. Sensitivity results for the cost of saving water are presented for several important parameters. Annual water and energy savings forthcoming from the total project are estimated, using amortization procedures, to be 485 ac-ft of water per year and 179,486,553 BTUs {52,604 kwh} of energy per year. The calculated economic and financial cost-of-saving water is estimated to be $385.46 per ac-ft. The calculated economic and financial cost-of-saving energy is estimated to be $0.0010735 per BTU {$3.663 per kwh}. In addition, expected real (vs. nominal) values are provided for the U.S. Bureau of Reclamation’s three principal evaluation measures specified in U.S. Public Law 106-576. The aggregate initial construction cost per ac-ft of water saved measure is $510.92. The aggregate initial construction cost per unit of energy saved measure is $0.0013798 per BTU {$4.708 per kwh}. The aggregate ratio of initial construction costs per dollar of total annual economic savings is estimated to be -2.53.
Economic Effect of Energy Price and Economic Feasibility and Potenhal of New Technology and Improved Management for Irrigation in Texas
(Texas Water Resources Institute, 1982-05) Hardin, D. C.; Whitson, R. E.; Petty, J. A.; Lacewell, Ronald D.
Irrigation is a major contributing factor in crop production on the Texas High Plains. It is responsible for greatly increasing crop production and farm income for the region. Two factors, a declining groundwater supply and increasing production costs, are of primary concern because they impact on farm operations and producer economic viability. Recursive linear programming models for a typical Texas High Plains irrigated farm were developed to evaluate expected impact of energy and crop price changes, tenure and new technology. The model includes a Fortran sub-routine that adjusts irrigation factors each year based on the linear programming solution of the previous year. After calculating new pumping energy requirements, well yield, and pumping lift, the Fortran component updates the linear programming model. This procedure continues automatically to the end of a specified planning period or to economic exhaustion of the groundwater, whichever occurs first. Static applications of the model, in a deep water situation, showed that a natural gas price increase from $1.50 to $2.20 per thousand cubic feet (mcf) would result in reductions in irrigation levels. Irrigation was terminated when the price of natural gas reached about $7.00 per mcf. In a shallow water situation, much higher natural gas prices were reached ($3.60 per mcf) before short-run adjustments in farm organization began to occur. Under furrow irrigation, irrigation was terminated when the natural gas price reached $7.00 per mcf. Increased natural gas prices impact heavily on returns above variable costs (up to 15 percent reductions) for a 60 percent natural gas price increase. The effects of rising natural gas prices over a longer period of time were more significant. Annual returns (above variable and fixed costs) were reduced by as much as 30 percent, and the present value of returns to water was reduced by as much as 80 percent as the natural gas price was increased annually by $0.25 per mcf (from $1.50 per mcf). The economic life of deep groundwater was shortened by as much as 18 years. Renter-operators are even more vulnerable to rising natural gas prices than are owner-operators. With rising natural gas prices, profitability over time for the renter is low. As natural gas prices continue to increase, the greater will be the incentives for renter-operators to seek more favorable rental terms such as a sharing of irrigation costs. With the problem of a declining groundwater supply and rising natural gas prices, an economic incentive exists for producers to find new technologies that will enable them to make more efficient use of remaining groundwater and of natural gas. Substantial economic gains appear feasible through improved pump efficiency. Increasing pump efficiency from 50 to 75 percent will not increase the economic life of the water supply, but can improve farm profits over time; e.g., the present value of groundwater was increased 33 percent for a typical farm with an aquifer containing 250 feet of saturated thickness and 15 percent for 75 feet of saturated thickness. Improved irrigation distribution systems can help conserve water and reduce irrigation costs. Results indicate that irrigation can be extended by 11 or more years with 50 percent improved distribution efficiency. In addition, the increase in present value of groundwater on the 1.69 million irrigated acres of the Texas High Plains was estimated to be $995 million with 50 percent improved efficiency. New technology opportunities were expanded to include analysis of the economic feasibility of wind assisted irrigation pumping. Two wind machines were analyzed, with rate outputs of 40 to 60 kilowatts (KW). Each was applied to the Northern and Southern Texas High Plains over a range of land and water resource situations. Breakeven investment was estimated at discount rates of three, five and ten percent. Cropping patterns on the Southern High Plains were dominated by irrigated cotton and were insensitive to changes in crop or electricity prices. On the Northern High Plains, irrigated corn and grain sorghum were the major crops, with acreage reverting to dryland wheat at the higher electricity prices. The cropping patterns in this area were impacted heavily by labor restrictions. Considerations of wind power had little effect in determining optimal cropping patterns. When wind power was applied to an irrigated farm on a static basis, the set of crop prices applied had little effect on the annual value of a wind system. Value of wind power was increased, but by smaller proportions, in response to increases in the price of electricity. Each machine size had a greater value when operated on the larger of the two applicable land units (100 acres for the 40 KW machine and 144 acres for the 60 KW system). The 60 KW system was also tested on the 100 acre unit but returned less per KW than the 40 KW system. Available wind power in the temporal analysis was less than in the static analysis, thus temporal estimates of wind system value should be regarded as conservative. On the Southern High Plains, breakeven investment was decreased slightly from the static analysis. However, in some situations on the Northern High Plains, breakeven investment increased. This indicates that the value of wind power could increase as the aquifer declines in some situations. Breakeven investment increased by up to 80 percent when the price of electricity was increased by $.005 per KWH per year. The most significant effect of wind power was that it allowed the maintenance of irrigation levels which, without wind power, had been made uneconomical. These results indicate that, at least in the future when wind system costs decrease and stabilize, wind-assisted irrigation could be an economically viable alternative for Texas High Plains producers. The results are limited by the need for future research regarding the effect of irrigation timing on crop yield as well as some of the long-term characteristics of wind system operation, such as durability and the requirements and costs for system repairs and maintenance.
Economic Impact of Withdrawing Specific Agricultural Pesticides in the Lower Rio Grande Valley
(Texas Water Resources Institute, 1993-01) Bremer, John E.; Sparks, Alton N.; Norman, John W.; Robinson, John R.C.; Lacewell, Ronald D.; Bryant, Kelly J.
The Air, Pesticides, and Toxics Division of the Environmental Protection Agency (EPA) has encouraged all states to develop a plan to manage the use of pesticides to prevent application that would result in unreasonable risks to human health and the environment from contamination of ground water. In February, 1988, EPA proposed a strategy where by they would regulate certain pesticides by prohibiting their use in areas vulnerable to leaching unless a state develops and implements a management plan acceptable to EPA. However, banning the use of a pesticide in a region is the worst case scenario available to the TWC for managing water quality. The Texas Water Commission (TWC) assessed the State for areas vulnerable to leaching and found the Lower Rio Grande Valley (LRGV) to be a highly vulnerable area. This study examines three pesticides (atrazine, dicrotophos, and aldicarb) currently used in the LRGV that were identified by the TWC as potential contaminants of ground water. Alternative methods of controlling pests in this region were identified, and the economic impacts of withdrawing one or all three of these pesticides from the study area were estimated. Regional impacts on gross receipts (sales), variable costs, and net returns were determined. If atrazine use were banned in the LRGV, corn and sorghum sales would decrease by approximately $1 million, variable costs to produce corn, sorghum, and sugarcane would increase by almost $2 million dollars, leaving farmers in the region with a $3 million dollar 1088 in net income per year. If dicrotophos use were prohibited in the LRGV, variable cost to produce cotton would increase by over $600,000 for the region as a whole. Banning aldicarb use in the study area would reduce citrus sales by almost $3 million, increase variable costs to produce citrus by over $200,000, and reduce farmer net income by over $3 million annually.
Economic Methodology for South Texas Irrigation Projects - RGIDECON
(Texas Water Resources Institute, 2002-10) Ellis, John R.; Robinson, John R.C.; Sturdivant, Allen W.; Lacewell, Ronald D.; Rister, M. Edward
A mathematical discourse is provided, documenting the economic and financial methods used in RGIDECON, an Excel spreadsheet capital investment evaluation model focused on irrigation district-level pumping and delivery systems. These methods and the spreadsheet are the basis to ascertaining several measures of performance for the capital improvement investments proposed by irrigation districts relying on the Rio Grande River for their supplies of agricultural irrigation, municipal and industrial water. Both the approach developed by Texas Agricultural Experiment Station and Texas Cooperative Extension agricultural economists and the procedures used to calculate the required indicators mandated in Public Law 106-576 are presented. Attention is also directed to the process of selecting the discount rate to be used in the analyses for individual irrigation districts' proposed projects.
Economies of Size in Municipal Water-Treatment Technologies: A Texas Lower Rio Grande Valley Case Study
(Texas Water Resources Institute, 2010-07) Boyer, Christopher N.; Rister, M. Edward; Rogers, Callie S.; Sturdivant, Allen W.; Lacewell, Ronald D.; Browning, Charles Jr.; Elium III, James R.; Seawright, Emily K.
As the U.S. population continues to increase, the priority on planning for future water quantity and quality becomes more important. Historically, many municipalities have primarily relied upon surface water as their major source of drinking water. In recent years, however, technological advancements have improved the economic viability of reverse-osmosis (RO) desalination of brackish-groundwater as a potable water source. By including brackishgroundwater, there may be an alternative water source that provides municipalities an opportunity to hedge against droughts, political shortfalls, and protection from potential surfacewater contamination. In addition to selecting a water-treatment technology, municipalities and their associated water planners must determine the appropriate facility size, location, etc. To assist in these issues, this research investigates and reports on economies of size for both conventional surface-water treatment and brackish-groundwater desalination by using results from four water-treatment facilities in the Texas Lower Rio Grande Valley (LRGV). The methodology and associated results herein may have direct implications on future water planning as highlighting the most economically-efficient alternative(s) is a key objective. In this study, economic and financial life-cycle costs are calculated for a “small” conventional surface-water facility (i.e., 2.0 million gallons per day (mgd) Olmito facility) and a “small” brackish-groundwater desalination facility (i.e., 1.13 mgd La Sara facility). Thereafter, these results are merged with other, prior life-cycle cost analyses’ results for a “medium” conventional surface-water facility (i.e., 8.25 mgd McAllen Northwest facility) and a “medium” brackish-groundwater desalination facility (i.e., 7.5 mgd Southmost facility). The combined data allow for examination of any apparent economies of size amongst the conventional surface-water facilities and the brackish-groundwater desalination facilities. This research utilized the CITY H20 ECONOMICS and the DESAL ECONOMICS © © Excel® spreadsheet models developed by agricultural economists with Texas AgriLife Research and Texas AgriLife Extension Service. The life-cycle costs calculated within these spreadsheet models provide input for work which subsequently provides the estimations of economies of size. Although the economies of size results are only based on four facilities and are only applicable to the Texas LRGV, the results are nonetheless useful. In short, it is determined that economies of size are apparent in conventional surface-water treatment and constant economies of size are apparent in brackish-groundwater desalination. Further, based on modified life-cycle costs (which seek to more-precisely compare across water-treatment technologies and/or facilities), this research also concludes that reverse-osmosis (RO) desalination of brackish-groundwater is economically competitive with conventional surface-water treatment in this region.
Estimated Benefits of IBWC Rio Grande Flood-Control Projects in the United States
(Texas Water Resources Institute, 2004-09) Villalobos, Joshua I.; Srinivasan, R.; Sheng, Z.; Staats, Chris; Robinson, John R.C.; Morrison, Wendy; McGuckin, James T.; Madison, W. Tom; Jacobs, Jennifer H.; Freeman, Roger; Eriksson, Marian; Assadian, Naomi; Rister, M. Edward; Michelsen, Dr. Ari; Lacewell, Ronald D.; Sturdivant, Allen W.
The International Boundary and Water Commission (IBWC) is responsible for maintaining a series of flood-control projects beginning in New Mexico and extending along the Rio Grande’s international border dividing the United States and Mexico. A review by the USIBWC indicate that, over time, the flood-control capability of the levees has been compromised, possibly to the point where the level of protection is below original-design capacities. Prior to investing federal monies in the rehabilitation of major flood-system infrastructure, the U.S. Office of Management and Budget requires an economic analysis of expected benefits, or losses avoided with implemented protection measures. Recent flood events along the international border, resulting in significant economic damages and loss of human life, emphasized the need for a timely assessment of impacts of potential flood-control failure. Given a short project time line mandated by IBWC and the large geographic extent of the river- and floodway-levee system, innovative methods were developed to conduct a rapid and preliminary economic assessment of the flood-control infrastructure. Estimates for four major project areas relating only to the U.S.-side of the border only (stretching from Caballo Reservoir in New Mexico to the Rio Grande’s mouth, near Brownsville, TX.) comprise the study’s focus. Millions populate the cities and towns along these economic reaches of the Rio Grande where extensive housing, commerce, industry, tourism, and irrigated agricultural production exist. Areas susceptible to flooding, along with land-use, were identified and quantified through high-resolution map imagery. Estimates of representative residential, commercial, and industrial property values and agricultural production values were developed from property assessment records, economic development councils, crop enterprise budgets and cropping patterns, census data, previous U.S. Army Corps of Engineers’ flooding studies, etc. Gross economic values of flood-control benefits for a sample of each of the land-use types were determined and extrapolated to similar land-use areas in the flood zone. This analytical method provides a rapidassessment of potential flood-control benefits for a single event for each of the four IBWCdesignated flood-control project areas. An aggregate estimate arrived at by summing the potential benefits across all four project areas assumes avoidance of, or protection against, a simultaneous breach in all areas. Baseline economic benefits for agriculture and developed property along the Rio Grande Canalization project are estimated at $13.7 million (basis FY 2004). Comparable estimates for the Rio Grande Rectification project are $139.1 million, while those for the Presidio Valley Flood Control project amount to $2.9 million. The Lower Rio Grande Flood Control project is estimated to provide $167.2 million in flood-control benefits. Combined, the four project areas provide $322.9 million in flood-control protection benefits in the baseline analysis. When preliminary estimates of $183.0 million in other costs (i.e., emergency, roads, utilities, and vehicles) are added to the baseline estimate, the total floodcontrol protection benefits provided by the four project areas increases to $506.0 million.
Estimated Farm Level Benefits of Improved Irrigation Efficiency
(Texas Water Resources Institute, 1984-06-10) Reneau, Duane R.; Ellis, John R.; Lee, John G.; Lacewell, Ronald D.
There are about 15 million acres of cropland in the U.S. that are irrigated from aquifers which are incurring declining water levels (sloggett). This is primarily in the Great Plains Region where irrigation water is pumped from the Ogallala Aquifer. Mining from the aquifer is estimated at 14 million acre feet per year (Frederick and Hanson). The declining groundwater supply increases pumping lift and reduces well yields. Concurrently, there has been a dramatic increase in the cost of energy for pumping since 1973. For example, in the Trans Pecos Region of Texas, natural gas prices increased 450% from 1972 to 1975. Energy has become one of the most important factors in irrigated crop production. A 1975 study showed that 53% of the total variable costs of producing corn in the Great Plains was energy related (Skold). The sensitivity of irrigated agriculture to increased fuel costs and declining groundwater levels has provided incentives for irrigated farmers to investigate alternative crop rotations and opportunities to improve irrigation water pumping and distributional efficiencies. The emphasis of this report is to estimate the value to an irrigated farmer on the Texas High Plains of improving irrigation water distribution efficiency. One means of improving the water use efficiency is to implement water conserving techniques. The main purpose of these techniques is to maximize crop production by minimizing the amount of water lost through the production systems. The major sources of water loss in a crop production system are runoff, percolation, and evaporation. Examples of water conserving techniques include terracing, furrow dams, reduced tillage, and crop rotations. In addition, improved irrigation application techniques can enhance the efficiency of water used for irrigation in the region. On-farm irrigation efficiency statewide for Texas has been estimated between 60 and 708 (Wyatt,1981). The implementation of advanced irrigation application techniques could potentially increase this efficiency up to 98% (Lyle & Bordovsky,1980). Furrow irrigation and sprinkler irrigation are the two major irrigation systems currently in use. Techniques designed to improve furrow efficiency include alternate furrow irrigation, furrow diking, and surge flow. Alternate furrow irrigation improves the timeliness of irrigation applications and increases lateral water movement thereby reducing deep percolation losses. Alternate furrow irrigation can be used with furrow diking or row dams on non-irrigated furrows to reduce rainfall runoff and soil erosion. The surge flow technique delivers large surges of water into the furrow on an intermittent cycle to reduce percolation losses at the upper end of the field. Sprinkler irrigation is the second major distribution system used for crop production primarily on mixed and sandy soils in the region. The use of these systems have increased tremendously over the past 25 years. This growth in the use of sprinkler irrigation systems is reflected in the increase for Texas from 668 thousand acres in 1958 to 2.2 million acres in 1979 (Texas Department of Water Resources). With the rapid rise in the relative price of energy during the 1970's, the emphasis of improving sprinkler efficiency has focused on both reducing their energy requirements and decreasing the amount of water lost through evaporation. One system which has been developed to meet these needs is the LEPA system or Low Energy Precision Application system (Lyle and Bordovsky,1980). This system operates by distributing water through drop tubes and low pressure emitters directly into the furrow as opposed to high pressure systems which utilize overhead sprinklers to distribute the water. In field trials of the LEPA system, measured application and distribution efficiencies averaged 98% and 96% respectively (Lyle et al., 1981).