Nestle Wants McCloud’s Water and Most of Michigan’s Too…

by Tom Chandler on December 7, 2006 · 5 comments

Woe to the innocent who mentions the name of Nestle Corporation in my presence – who isn’t prepared for a lecture about big corporations preying on small, naive towns.

Nestle – as you may know – conducted a secret negotiation with the services district of the tiny town of McCloud to pump water from the town water supply, and was even so kind as to provide a lawyer to negotiate for the town. (Huh??)

The deal was predictably rapacious; Nestle would get water rights for 100 years and the fees paid to the town wouldn’t increase a dime over that time.

Oy. Such a deal.

Here. Drink This.

In a drought, Nestle could pump the full amount of the town’s water (the town would get whatever was left), and a couple hundred big tanker trucks would roll through town per day, with Nestle not responsible for any infrastructure costs.

Frankly, that’s just the tip of the iceberg.

Naturally, impacts to the environment weren’t considered – the basis by which the California Supreme Court finally threw out the contract.

MidCurrent (a daily must-read) notes that Nestle wants more water in Stanwood, Michigan, where they already pump 270 million gallons of water annually. Not content with that, they want to remove another 70 million gallons from the headwaters of two small spring creeks.

From the South Bend Tribune comes this quote:

“It’s not an issue about the amount of water they want to pump — it’s a question of saying yes or no,” said Dick Schwikert, a member of the Pere Marquette Watershed Council board of directors. “We don’t want any water taken from the watershed.”

Even more telling is the final sentence in the story:

Nestle officials said they are careful to ensure their water pumping doesn’t adversely affect the environment and that the company needs new drilling sites so existing wells don’t dry up.

Have Nestle officials been taking classes in irony? The existing wells will dry up if they keep pumping at current rates, they want more, but… they care about the environment?

Duck and Cover.

I wish Michigan good luck dealing with Nestle. If it’s one thing I’ve learned watching their litany of underhanded tactics play out in McCloud, it’s that you’re dealing with an elemental force of nature that lacks a conscience or sense of fair play.

Thirty years from now water will have become one of the hottest commodities on the planet, and the small towns and counties preyed on by Nestle will wonder not just why they sold their soul, but why they did it so cheaply.

[tags]water, mccloud, nestle, michigan, muskegon, pere marquette[/tags]

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January 9, 2008 at 5:11 am

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1 Brian Murray December 7, 2006 at 7:24 pm

So am to understand that the Nestle deal is dead, I read somewhrer that it was a go…

ps. read your blog everyday…LOVE IT  

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2 Tom Chandler December 7, 2006 at 8:51 pm

Brian; I should have been clearer. The CA Supreme Court threw out the McCloud water contract, but Nestle has bought the old mill site there and proposes to build a million-square foot bottling plant using the water rights granted to the old mill, which includes (I believe) water destined for Squaw Creek.

Naturally, the Environmental Impact Report didn’t evaluate the impacts on the watershed. Lovely.

They will likely pursue a new deal with McCloud for the city’s water supply, and to facilitate that deal, they financed three pro-Nestle candidates to the service district board (who make the decisions).

Money always talks in these situations (and Nestle’s had a fulltime propagandist water expert on the ground in McCloud for quite some time).

In an obvious intimidation move, they also subpoenaed the personal financial records of everyone involved in several local environmental groups, but a judge threw that one out too.

Every week the paper seemingly brings us news of the latest Nestle atrocity (lest we forget the prior one), and it’s been a real textbook case of the kind of corporate imperialism I would have told you hardly ever happened in this day and age.  

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3 Nancy Patterson June 26, 2007 at 1:50 pm

I am so glad to know you all are keeping an eye on this. I just watched the movie “Dead in the Water” directed by Neil Docherty and recommend it to anyone who is willing to see the consequences of the privatization of water. Not a pretty picture. I also saw a news show about your town and I strongly urge those who want to sign a deal with Nestle to know that they are not a great company. They used to deliver water to my home under the name of Arrowhead Water. Their customer service and billing is a mess, they could never get an order straight, which leads me to believe, the mess flows down from the top. Thank you, Nancy  

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4 Tom Chandler June 27, 2007 at 7:14 am

The Nestle project is back on, though in the midst of a contentious environmental review.

Stay tuned for more.  

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