Upper Green River Conservation Exchange
(Summary dated January 2013)
The Upper Green River Basin (the basin) is the headwaters for the Colorado River System
and home to many bird and wildlife species with environmental and recreational significance.
In recent decades, the basin has also experienced an energy boom from oil and natural gas
extraction. This activity has increased economic opportunities in the basin but has also placed
development pressures on the natural resource base.
A broad coalition of scientists, wildlife managers, landowners, and an energy company are at
work to develop a Payment for Ecosystem Services market as one way to mitigate these
development pressures. A PES market is an innovative way to provide financial incentives or
compensation to private landholders for engaging in environmentally or socially beneficial
activities that might not otherwise be undertaken or continued.
The idea for this market started as a grassroots initiative among landowners in the basin
seeking recognition for the fish and wildlife habitat provided by their ranching operations.
For example, the flood irrigation methods generally utilized in the basin for hay production
provide wetlands for migratory birds; hay meadows provide forage for Mule deer, pronghorn,
and elk. If these contributions were recognized, agricultural producers might realize an
additional stream of revenue that would help them maintain their ranching operations and
stave off financial pressures to sell land to developers (MacKinnon 2006). Landowners will
be the sellers in this PES market, by implementing practices on their land that maintain or
enhance wildlife habitat and water resources.
Buyers in the market are expected to be energy companies seeking off-site mitigation for
their energy development activities; and local/national environmental foundations and second
home-owners in the basin looking for ways to support the high-quality recreational and
environmental amenities that characterize the basin.
Currently involved in establishing the Upper Green River Conservation Exchange are
Sublette County Conservation District, the University of Wyoming, EnCana Oil & Gas, The
Nature Conservancy, Environmental Defense Fund, and landowners in the region.
Environmental Incentives, a firm that has facilitated establishment of markets for water
quality trading and habitat credit trading markets elsewhere in the western United States, is
assisting. Relevant federal and state land management agencies have also been involved in
discussions.
Work on the Upper Green River Conservation Exchange is developing on three fronts. First,
the project is focused on achieving conservation and mitigation outcomes as cost-effectively
as possible by incorporating good science. Wildlife biologists and hydrologists are
developing quantification tools to determine the value of ecological services provided
through the market. Second, market protocols defining the roles of buyers and sellers,
explaining how monitoring will take place, and detailing market governance are in
development. Finally, the market will be structured so that energy companies and landowners
who participate are able to comply with current and future regulations. Pilot transactions
designed to inform development of these three elements have been or are currently being
implemented.
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