Interruptible Option Contracts

by John F. Scott, (M.ASCE),

Document Type: Proceeding Paper

Part of: North American Water and Environment Congress & Destructive Water


Interruptible option contracts have been proposed and studied in numerous parts of the Western United States as an alternative supply option for water systems in an economically higher use category in lieu of outright purchase or transfer of water from a lower priority water use. Principally, the options have been proposed by municipal and industrial water users to agricultural water users in an attempt to minimize the capital outlay for water rights by municipalities and industries and, additionally, to maintain the farm economy in expanding urban areas. To date, however, there have not been any successes to report. Some of the reasons why will be addressed here and possible solutions to these impediments discussed.

Subject Headings: Municipal water | Contracts and subcontracts | Water supply systems | Water rights | Water supply | Industries | Water use | Irrigation water | United States | Colorado

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