Oil Shale Plans Create Ripple Mark Jaffe, The Denver Post March 21, 2009

The acquisition of 250 conditional water rights by oil companies for oil shale development indicates a potential change in the balance of power in the apportionment of Colorado River and the White River water. Additionally, oil companies have invested in agricultural ditch companies, purchasing 104. Mark Jaffe noted in his article that "the water rights are also more senior than those held by Front Range water suppliers, and that could hamper plans to bring more water over the mountains for towns and cities" (p. 1B), referring to the Colorado and White Rivers acquisition. His findings derive from a study conducted by the Western Resource Advocates.

According to Colorado law, a conditional water right denotes "a right to perfect a water right with a certain priority upon the completion with reasonable diligence of the appropriation upon which such water right is to be based" (Colo Rev Stat 37-92-103 definitions).
Given this process, Chips Barry, questioned the ability of the oil companies to transition from conditional to absolute rights. He stated, "perfecting a conditional right isn't a slam dunk anymore" (p. 7B). If the oil companies overcome the hurdles, however, the diversion of water would lessen the amount for Lower States of the 1922 Colorado River Compact and threaten Colorado's ability to conform to the agreement.

The Western Resources Advocate disclosed that Exxon owned 49 conditional rights and 48 ditch rights, Shell, 31 conditional rights and 5 ditch rights, Chevron, 28 conditional rights and 28 ditch rights, Unocal, a Chevron subsidiary, owned 48 conditional rights and 12 ditch rights. The remaining conditional and ditch rights belonged to OXY USA, Tosco, and the Colorado River Conservancy District.

Jaffe, M. (2009). Oil-shale plans create ripple. Denver, CO: Denver Post, pp. 1B & 7b.
Western Resource Advocates. (2009). Oil Shale Water Rights in Colorado. Boulder, CO: Western Resource Advocates.