Beer company advised to change water rights

The Mexican Institute of Water Technology advised Constellation Brands to convert its water rights before opening the beer plant in southern Mexicali.

In its environmental report, the Mexican agency — which depends on the Mexican Department of Environment and Natural Resources — recommended the corporation to convert its water rights from agricultural use to public urban use before a contingency occurs.

The report was released in May, according to the document, which is available in both the agency’s and the company’s websites.

The warning was made in order to make sure New York-based Constellation Brands is not impacted by a reduction of water allocations in the binational Colorado River area.

The agency said the company must ask the Mexicali Public Utilities Commission to expedite the change of water use rights before the National Water Commission.

According to the institute, Mexico’s water law prioritizes domestic and public urban use of water, above agricultural use.

Constellation Brands’ water use rights are agricultural, the agency said in the report, which means in case of drought emergency the company would suffer a reduction of water allocation.

The company, which produces beer brands like Corona for the U.S. market, is building a production plant south of Mexicali.

The corporation plans to produce up to 5 million hectoliters of beer in Phase 1.

The institute said in the report Mexicali residents would not be impacted by the amount of water the corporation plans to use for its operations.

According to the report the Mexicali Public Utilities Commission will deliver 3.1 million cubic meters, or 2513.21 acrefeet, of water per year. However, the company made a request of more than double that amount to the Mexicali agency, according to a document produced by local authorities in April 2017.