As part of Southern Rural Life's Watershed series, we look at the issues and challenges facing irrigation companies in Otago. Yvonne O'Hara talks to Teviot Irrigation Company chairman Ralph Nichol, of Roxburgh East.
It is a good thing Pioneer Generation is happy to share.
Sheep and beef farmer and company chairman Ralph Nichol, of Roxburgh East, said it had 100 shareholders, who were a mix of farmers, orchardists and lifestyle block holders, and it was permitted to take 52 heads of water from Lake Onslow to Roxburgh East and Teviot, from September to April.
About 1400ha is irrigated and those taking water pay about $100 per hectare annually.
Pioneer Generation Ltd operates the power generation system while Teviot Irrigation Company is responsible for the irrigation.
''We have a trust agreement with Pioneer Generation to share the water and they look after the head works,'' Mr Nichol said.
''Our dam is underneath Lake Onslow.''
The original dam was built in 1888 by Roxburgh Amalgamated Mining Co for mining and irrigation and it formed Lake Onslow. By 1938 it was used for power generation as well as irrigation. After several increases in height to meet a greater electricity demand, the Otago Central Power Board built a new dam in 1982, which increased lake area and submerged the original structure.
Teviot farmers and shareholders bought the operation from the Government in 1990 and turned it into a company. Like many other irrigation companies and groups, the TIC has had its share of challenges since its formation, including changes to regulatory requirements and the associated costs, water take-metering regulations, and dealing with the maintenance bills.
The Otago Regional Council's (ORC) Plan Change 6A, which intended to maintain or improve water quality in the region, has meant lawyers' fees and time spent in meetings and making submissions.
''We have been working through it with the ORC through the Otago Water Resources Users Group (OWRUG), which represents the irrigation companies and groups in the region.
''Through OWRUG we have done quite a lot of work on 6A.''
OWRUG is funded by levies from the water groups, employed a lawyer to attend the ORC meetings and work through the submission process on their behalf.
''It is a struggle to cover costs and lawyers' fees,'' Mr Nichol said.
''We have also got a lot of outside costs coming into the system.''
One relatively new regulatory requirement has been the introduction of meters to measure water takes over 20 litres, of which the company has about 20.
This is in addition to existing water meters already in the races.
The company uses dry gullies as a means to carry the water and each time they take it out of the gully, it is considered a take.
The metering system should be in place now, but they were looking at reducing the number through amalgamation. He said each meter, depending on its type, would cost between $6000 and $10,000 each.
Some meters automatically send information back to the council using the cellphone system, but as there is little coverage in some areas, a repeater station will have to be installed.
The cessation of mining rights (which permits water takes) in October 2021 is another major issue for the company.
''We have to renew our consent by then.
''If we haven't got something in place by then we are going to miss out.''
He said the ORC was working with them.
In addition to regulatory requirements, the tightening of company laws means book audit fees have doubled.
''That costs up to $10,000 a time,'' Mr Nichol said.
He said turning the company into a trust was a possibility.
''We have got a lot of blocks that have been turned into subdivisions.
''Each time we need to sort out the shareholders and up-date the shareholders' register, so we have to go back to the lawyers to do that, which is another cost.''
He said another big expense ahead of them was the company's large pipe bridge, through which water flows from one side of the Clutha to the other, which requires major and expensive repairs.
Pipe replacement is an ongoing expense.
''It costs about $400 to $500 a metre and we do a little bit every year.''
He said in the 10 years he had been chairman his job had changed from looking after the irrigation company to being an administrator, spending time in offices and talking to lawyers.