Almond producer Lachlan Valley Farms to pay $73,000 for overpumping

A business owned by foreign investors has agreed to pay costs and forfeit water for overpumping 224 Olympic swimming pools from a groundwater bore.

A large almond producer has agreed to pay $73,000 in costs and forfeit more than 1000 megalitres of water for overpumping 224 Olympic swimming pools of water from an at-risk groundwater source.

Lachlan Valley Farms Pty Ltd, a subsidiary of US investment company Hancock Agricultural Investment Group, self-reported in early 2021 it had exceeded an annual extraction limit on the almond orchard Mooral in the NSW Riverina by 449ML.

Mooral is a 3841ha property with 808ha of almonds. It was bought by Hancock Agricultural Investment Group from Rural Funds Management in December 2020.

Groundwater bores on the property pump water from the at-risk Lower Lachlan Groundwater Source.

According to the Enforceable Undertaking Lachlan Valley Farms signed with the NSW Natural Resources Access Regulator, the company inherited faulty metering equipment when it bought the property.

Mooral almond orchard in the NSW Riverina. Picture: NRAR

LVF alleges one of the water meters on the property malfunctioned prior to the completion of the sale on November 12, 2020 and Water NSW was notified.

The meter was out of action until a replacement was installed on January 20 last year. In the meantime, Rural Funds Management kept a logbook to monitor water take, which was taken over by LVF once the sale was complete.

On February 26 last year, LVF said it became aware it had exceeded the extraction limit for the bore by 449ML and stopped pumping. One week later, the company reported the breach to the Natural Resources Access Regulator.

NRAR director water regulation Graeme White said the company had done the right thing by self-reporting and taking accountability for over-extracting water.

“Bore extraction limits protect our fragile groundwater systems,” Mr White said.

“The company did the right thing by self-reporting and as a result have avoided being taken to court.”

As an alternative to a prosecution, NRAR accepted an enforceable undertaking offer from the company.

“Although the company inherited the faulty metering equipment and had only recently taken ownership of the property and water entitlements, it had significant responsibilities,” Mr White said.

Under the terms of the enforceable undertaking, Lachlan Valley Farms will:

PAY NRAR $53,880 for the volume of water allegedly taken in exceedence of the individual bore extraction limit.

MAKE a $10,000 contribution to Western Landcare NSW for an environmental project.

PAY NRAR $10,000 to cover its investigation and legal costs.

FORFEIT 1122.5ML of water from its water account.

INSTALL metering equipment including telemetry on all groundwater works on the property.

Large almond producer Lachlan Valley Farms has agreed to pay $73,000 in costs for overpumping water. Picture: Jason Edwards

LVF said in a statement the company “acknowledges groundwater bore extraction limits are in place for a purpose and acknowledges the importance of the regulatory system enforcing these limits, including the Water Management Act, to help protect ecosystems, communities and other water users”.

The Weekly Times contacted HAIG but did not receive a response.

A spokesman for Rural Funds Management said the company was not able to comment on the matter due to confidentiality provisions regarding the sale.

RFM “did not experience any compliance issues in relation to water management” on the Mooral property, the spokesman said.