The second of the 2025 Water Webinar series focused on a timely and crucial discussion about groundwater conservation and its role in addressing the West’s growing water scarcity challenges. The panel, featuring Sarah Parmar from Colorado Open Lands (COL), Dr. Ladona Clayton from the Ogallala Land and Water Conservancy (OLWC), and Erin Minks from Senator Michael Bennet’s office. discussed the effectiveness and structure of groundwater conservation programs and easements. We discussed how these programs may be effective for providing relief to declining aquifers, such as the Ogallala in New Mexico, and the San Luis Valley of southern Colorado, and what it takes to implement them, both at the local and legislative levels. 

The State of Groundwater in the West  

Parmar began the webinar by explaining that the San Luis Valley’s agricultural success, which heavily relies on groundwater pumping, has led to a serious depletion of the underlying aquifers, and a decline in the collective resource.  As technology for groundwater pumping has improved, water extraction from the aquifers began to outpace the natural recharge rate, resulting in a sharp decline in groundwater levels. Parmar highlighted the challenges faced by landowners and farmers in the valley, where the agricultural economy is deeply tied to groundwater availability. Despite efforts to reduce water consumption through voluntary programs, the need for a more permanent solution became clear.  

Community-led initiatives, such as the establishment of groundwater management subdistricts, allowed local stakeholders to tackle the problem collectively. Landowners elected to create a tax on water withdrawals that is used to fund groundwater banks that would pay landowners interested in retiring their wells, and create an immediate financial incentive for landowners to reduce their water use. However, Parmar noted that these solutions were difficult and expensive to implement and fell short of achieving sustainable groundwater levels. Recognition of this led to the development of a groundbreaking idea: groundwater conservation easements.  

To the south, in eastern New Mexico, the Ogallala aquifer has been depleted by an average of approximately 16 feet since predevelopment resulting in a water crisis. Water use in the region is primarily agricultural, with 95% of the water being used for farming. Clayton described how OLWC partnered with the Department of Defense (DoD) to develop a voluntary groundwater lease program for irrigators, resulting in the savings of almost 4 billion gallons annually. DoD’s involvement was critical because of their interest in water security for Cannon Air Force Base, which is completely reliant on Ogallala aquifer water. 

Groundwater Conservation Easements: A New Approach  

Minks then delved into how Senator Bennet and other stakeholders recognized the potential value of adding groundwater conservation easements as an eligible category under the Agricultural Conservation Easement (ACE) program at NRCS. In 2023, Senator Bennet introduced the Voluntary Groundwater Conservation Act, which aims to provide federal support for these innovative programs, while ensuring that the voluntary nature of the easements remains intact.  

The development of a federal framework is a complicated process because water rights are state-specific and the bill ails to ensure that water rights remain with the landowners and do not transfer to the easement holder, even though the landowner’s consumptive use may be reduced. Read the specific bill language here, or a more simplified summary of the bill here. Minks noted that while the concept of groundwater easements has gained traction, there’s still work to be done to ensure that these agreements are understood and respected by all parties involved, particularly in the context of how water rights are handled. 

Parmar then discussed how COL explored traditional land conservation tools to address groundwater depletion and also explained that while traditional land conservation easements focus on preventing land development or preserving open space, groundwater easements take a different approach by directly addressing water usage, specifically preventing over-allocation of aquifers.  

Groundwater easements can allow landowners to voluntarily reduce their groundwater withdrawals in exchange for compensation, providing a more flexible solution that doesn’t require producers to stop farming altogether. Instead of fully fallowing their land, groundwater easements enable producers to continue agricultural operations while reducing their water use over time. This flexibility is key to maintaining the long-term viability of both the aquifer and the local agricultural economy. By tailoring each easement to the specific needs of the landowner and the unique characteristics of their land, they can balance the necessity for water conservation with the ongoing productivity of the land. Sarah emphasized that this model empowers landowners to find practical ways to achieve water savings, whether through methods like crop rotation, deficit irrigation, or shifting to lower-water-use crops, while keeping operations running. 

Valuation and Compensation  

An additional complication of groundwater easement programs is developing a value for the conserved water. As the conversation shifted to compensation models, Clayton explained the innovative valuation model used by OLWC used to determine fair compensation for landowners. The model considers water usage, crop valuation, and income impacts from transitioning to more sustainable practices. This ensures that landowners are fairly compensated while contributing to the long-term conservation of the aquifer. Clayton also highlighted the key role that DoD played in this process. Through a partnership with OLWC, DoD provided crucial funding and support via the Readiness and Environmental Protection Integration (REPI) program. This partnership is essential not only for conserving water but also for ensuring the continued water security needed by critical military operations, such as those at Cannon Air Force Base. Together, OLWC and DoD have been able to craft agreements that benefit both agricultural producers and national defense interests. 

The Path Forward  

The webinar wrapped up with a forward-looking conversation about the potential for groundwater conservation easements to be used as a tool for addressing water scarcity across the West. Parmar emphasized the importance of leveraging existing programs, like those that promote soil health and water retention, alongside groundwater easements to maximize water conservation efforts while minimizing the unintended consequences of practices like full field fallowing. By stacking these tools, producers can continue agricultural operations, maintain soil health, and support the long-term sustainability of water resources. 

Clayton spoke about how OLWC is using groundwater leases to conserve the Ogallala Aquifer while empowering producers to adopt regenerative agriculture practices. These practices are essential for maintaining soil health, water holding capacity, and resilience in the face of increasing climate variability. Additional resources and inspiring stories that discuss regenerative agricultural practices can be read here and here.  

Minks closed by discussing how the new legislative session and future farm bill discussions could provide opportunities for expanding groundwater conservation legislation. Despite the challenges, there is hope that these innovative solutions will continue to gain traction at both the state and federal levels. 

This post was co-authored by Matt Smith.