Dead Sea Works to Pay Half Billion Shekels for Water Use

Dead Sea Works, a subsidiary of ICL, will be required to pay approximately half a billion shekels for the brackish water it extracts for its operations. This follows the Supreme Court's decision on Wednesday to reject the company's request for an additional hearing on a December ruling. The court had previously obligated the company to pay for its water usage since 2017. The company has already paid 330 million shekels and is expected to pay an additional 170 million shekels. The collected funds may help mitigate an anticipated rise in water tariffs for the public in January. The petition against Dead Sea Works was filed in 2022 by Adam Teva V'Din and Lobby 99, arguing that in addition to royalties for minerals extracted, the company must also pay for the water it uses. Dead Sea Works relied on a 1961 concession granting rights to use necessary water for production. However, the petitioners cited the 2017 Water Law, which stipulates that a water supply licensee must pay the national water authority for supplied water. Mekorot water company supported the petitioners' stance, while the state, through the Water Authority, sided with Dead Sea Works. Supreme Court Justices Dafna Barak Erez, Yael Willner, and Ofer Grosskopf accepted the petition, mandating Dead Sea Works to pay for water used since the Water Law's passage in 2017. Deputy President of the Supreme Court Noam Sohlberg has now dismissed the request for a further hearing on legal grounds. Sohlberg noted that while the ruling established a significant legal precedent, it was insufficient grounds for a rehearing. The company's claim that the ruling had far-reaching implications, described as an 'earthquake in terms of the water economy,' was also rejected, as broad consequences alone do not justify a new hearing. Sohlberg ordered Dead Sea Works to pay 10,000 shekels in expenses to Adam Teva V'Din, Lobby 99, Mekorot, and the Water Authority.