water right issues utah water users workshop march 17, 2014 kent l. jones, p.e

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Water Right Issues Utah Water Users Workshop March 17, 2014 Kent L. Jones, P.E. State Engineer

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Water Right Issues Utah Water Users Workshop March 17, 2014 Kent L. Jones, P.E. State Engineer. 2014 Water Rights Legislation. SB 17… Dayton… Water and Irrigation Amendments - PowerPoint PPT Presentation

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Page 1: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

Water Right Issues Utah Water Users Workshop

March 17, 2014 Kent L. Jones, P.E.

State Engineer

Page 2: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

2014 Water Rights Legislation2014 Water Rights Legislation

SB 17… Dayton… SB 17… Dayton… Water and Water and IrrigationIrrigation AmendmentsAmendments

HB 29… Webb… HB 29… Webb… County Recorder County Recorder Index Index AmendmentsAmendments

HB 370… Anderson… HB 370… Anderson… Canal Safety Canal Safety AmendmentsAmendments

SJR 4 … Van Tassel …SJR 4 … Van Tassel …Joint Resolution Joint Resolution on Water Rights on Grazing Landson Water Rights on Grazing Lands

Page 3: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

2014 Water Rights Legislation2014 Water Rights Legislation

SB 274… Dayton… SB 274… Dayton… Water Jurisdiction Water Jurisdiction AmendmentsAmendments

SB 211… Dayton … SB 211… Dayton … Water Rights Water Rights AmendmentsAmendments

HB 49… McIff… HB 49… McIff… Water Rights Change Water Rights Change Application Application

AmendmentsAmendments

Page 4: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

SB 17 Water and Irrigation SB 17 Water and Irrigation Amendments Amendments

Allows the State Engineer to address Allows the State Engineer to address corrections of illegal stream corrections of illegal stream alterations.alterations.

Recording of water right assignments Recording of water right assignments with county recorders.with county recorders.

Clarifying what constitutes illegal well Clarifying what constitutes illegal well driller conduct.driller conduct.

Updating statute on duty of State Updating statute on duty of State Engineer authority to distribute water.Engineer authority to distribute water.

Page 5: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

HB 29 HB 29 County Recorder Index County Recorder Index Amendments Amendments

Requires County Recorders to keep Requires County Recorders to keep an index of water right numbers that an index of water right numbers that are included on an instrument are included on an instrument recorded on or after May 13, 2014, recorded on or after May 13, 2014, showing the date and time of showing the date and time of recording, the book and the page or recording, the book and the page or the entry number, and the kind of the entry number, and the kind of instrument.instrument.

Page 6: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

HB 370 HB 370 Canal Safety AmendmentsCanal Safety Amendments

The State Engineer shall prepare an The State Engineer shall prepare an inventory and maintain a list of all open, inventory and maintain a list of all open, man-made water conveyance systems in man-made water conveyance systems in the state. July 1, 2017 Completion.the state. July 1, 2017 Completion.

Provides money to the Division of Water Provides money to the Division of Water Rights to make it available to Local Rights to make it available to Local Conservation Districts for technical Conservation Districts for technical support for a canal owner who is support for a canal owner who is adopting a management plan required in adopting a management plan required in 73-10-3373-10-33

Page 7: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

SJR 4 SJR 4 Joint Resolution on Water Joint Resolution on Water Rights on Grazing LandRights on Grazing Landss

This joint resolution of the Legislature This joint resolution of the Legislature declares sovereign the rights of the state declares sovereign the rights of the state of Utah and Utah livestock producers to of Utah and Utah livestock producers to put the state’s livestock water rights put the state’s livestock water rights located on public lands to beneficial use.located on public lands to beneficial use.

Declares that Utah has a sovereign right to Declares that Utah has a sovereign right to put the state’s livestock water rights put the state’s livestock water rights located on public lands to beneficial use located on public lands to beneficial use through development and maintenancethrough development and maintenance

Page 8: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

SJR 4 (cont.)SJR 4 (cont.)

Recognizes the right of a livestock Recognizes the right of a livestock owner to access the state’s water to owner to access the state’s water to put it to beneficial use, including put it to beneficial use, including crossing public land, grazing the crossing public land, grazing the livestock as necessary while livestock livestock as necessary while livestock drink, and ultimately developing and drink, and ultimately developing and maintaining water facilities on maintaining water facilities on necessary appurtenant public lands to necessary appurtenant public lands to put the state’s water to beneficial use; put the state’s water to beneficial use; andand

Page 9: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

SJR 4 (cont.)SJR 4 (cont.)

Expresses support for H.R. 3189, the Water Expresses support for H.R. 3189, the Water Rights Protection Act, to protect state Rights Protection Act, to protect state sovereignty and the water rights of livestock sovereignty and the water rights of livestock producersproducers

Prompted by:Prompted by: Tombstone Arizona conflict;Tombstone Arizona conflict; Colorado ski industry;Colorado ski industry; Scipio Maple Grove Campground;Scipio Maple Grove Campground; Tooele grazing issue;Tooele grazing issue; Hage vs United States (Nevada)Hage vs United States (Nevada) Joyce Livestock Co. vs United States (Idaho)Joyce Livestock Co. vs United States (Idaho)

Page 10: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

SB 274 SB 274 Water Jurisdiction Water Jurisdiction AmendmentsAmendments

Removes the requirement in statute that Removes the requirement in statute that “A livestock watering right may only be “A livestock watering right may only be acquired by a public land agency jointly acquired by a public land agency jointly with a beneficial user.”with a beneficial user.”

A public agency may not condition the issuance, A public agency may not condition the issuance, renewal, amendment, or extension of any permit, renewal, amendment, or extension of any permit, approval, license, allotment, easement, right-of-approval, license, allotment, easement, right-of-way, or other land use occupancy agreement way, or other land use occupancy agreement regarding livestock on the transfer of any water regarding livestock on the transfer of any water right directly to the public land agencyright directly to the public land agency

Page 11: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

SB 274 Water Jurisdiction SB 274 Water Jurisdiction Amendments (cont.)Amendments (cont.)

A public land agency may not require any A public land agency may not require any water user to apply for, or acquire a water water user to apply for, or acquire a water right in the name of the public land agency right in the name of the public land agency as a condition for the issuance, renewal, as a condition for the issuance, renewal, amendment, or extension of any permit, amendment, or extension of any permit, approval, license, allotment, easement, approval, license, allotment, easement, right-of-way, or other land use occupancy right-of-way, or other land use occupancy agreement regarding livestock; oragreement regarding livestock; or

Acquire a livestock watering right if the Acquire a livestock watering right if the public land agency is not a beneficial user.public land agency is not a beneficial user.

Page 12: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

SB 274 Water Jurisdiction SB 274 Water Jurisdiction Amendments (cont.)Amendments (cont.)

A Livestock Water Use Certificate is A Livestock Water Use Certificate is valid as long as the livestock watering valid as long as the livestock watering right is: ”Held by a beneficial user who right is: ”Held by a beneficial user who has the right to use the grazing permit has the right to use the grazing permit and graze livestock on the allotment.”and graze livestock on the allotment.”

Nothing in this section affects a Nothing in this section affects a livestock watering right or a livestock livestock watering right or a livestock water use certificate held by a public water use certificate held by a public land agency on May 13, 2014.land agency on May 13, 2014.

Page 13: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

SB 274 Water Jurisdiction SB 274 Water Jurisdiction Amendments (cont.)Amendments (cont.)

If a federal land management agency If a federal land management agency reduces livestock grazing AUMs on federal reduces livestock grazing AUMs on federal grazing allotments, and the reduction results grazing allotments, and the reduction results in the partial forfeiture of an appropriated in the partial forfeiture of an appropriated water right, the amount of water in question water right, the amount of water in question for nonuse as a livestock water right shall be for nonuse as a livestock water right shall be held in trust by the state engineer until such held in trust by the state engineer until such water may be appropriated for livestock water may be appropriated for livestock watering, consistent with this act and law.watering, consistent with this act and law.

Page 14: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

HB 49 HB 49 Water Right Change Water Right Change Application AmendmentsApplication Amendments

Mostly affect shareholder change applicationsMostly affect shareholder change applications Fair process that gives the shareholder more Fair process that gives the shareholder more

optionsoptions Eliminates stonewallingEliminates stonewalling Avoid getting bogged downAvoid getting bogged down Get the issue on the tableGet the issue on the table Attempt to resolve – mediationAttempt to resolve – mediation Get the water issues before State EngineerGet the water issues before State Engineer

Page 15: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

SB 211 Water Rights SB 211 Water Rights Amendments Amendments

Replica of last year’s SB 109 as it was initially filed.Replica of last year’s SB 109 as it was initially filed.

Confirms the State Engineer’s role as the “Gatekeeper” Confirms the State Engineer’s role as the “Gatekeeper” and allows him to look at beneficial use of water.and allows him to look at beneficial use of water.

Reaffirms that beneficial should be used in considering Reaffirms that beneficial should be used in considering the amounts of water that can be changed.the amounts of water that can be changed.

Provides protection from forfeiture for the applicant and Provides protection from forfeiture for the applicant and resolved conflicts with the Jensen v Jones and Big Ditch resolved conflicts with the Jensen v Jones and Big Ditch Supreme Court casesSupreme Court cases

Page 16: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

Administrative Water Right Administrative Water Right ForfeitureForfeiture

““This year, the state engineer would like to This year, the state engineer would like to codify his right to “administratively forfeit” a codify his right to “administratively forfeit” a water right through the change application water right through the change application process”… referring to SB211process”… referring to SB211

73-1-4(2)(c)… “a water right or portion of the 73-1-4(2)(c)… “a water right or portion of the water right may not be forfeited unless a water right may not be forfeited unless a judicial action to declare the right forfeited is judicial action to declare the right forfeited is commenced within 15 years from the end of commenced within 15 years from the end of the latest period of nonuse of at least seven the latest period of nonuse of at least seven years.”years.”

Page 17: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

Administrative Water Right Administrative Water Right ForfeitureForfeiture

If the state engineer denies a change If the state engineer denies a change application and the water right owner has application and the water right owner has subdivided and doesn’t have a place to put subdivided and doesn’t have a place to put the water back to beneficial use, then the the water back to beneficial use, then the water right is essentially forfeited because water right is essentially forfeited because it can’t be put back to use.it can’t be put back to use.

Options are to put the water back to use for Options are to put the water back to use for 15 years and if no one challenges you in 15 years and if no one challenges you in court for forfeiture, the right is protected; orcourt for forfeiture, the right is protected; or

Page 18: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

Administrative Water Right Administrative Water Right ForfeitureForfeiture

A nonuse applications can be filed to protect A nonuse applications can be filed to protect the right from forfeiture and if nonuse the right from forfeiture and if nonuse applications are in effect for 15 years, the applications are in effect for 15 years, the right is also protected.right is also protected.

The best thing to do is to continue to use The best thing to do is to continue to use your water right to its full extent or file a your water right to its full extent or file a nonuse application for those portions of the nonuse application for those portions of the right that are not being used before it gets in right that are not being used before it gets in a position for being challenged in court for a position for being challenged in court for forfeiture.forfeiture.

Page 19: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

If I don’t divert all the water I’m entitled to, If I don’t divert all the water I’m entitled to, the State Engineer will take it away from methe State Engineer will take it away from me

Situations exist where irrigators are diverting Situations exist where irrigators are diverting water up to their full duty, even though the crops water up to their full duty, even though the crops they are growing don’t need it and they are they are growing don’t need it and they are letting the water just run down the ditch for fear letting the water just run down the ditch for fear the right to divert may be taken away from them. the right to divert may be taken away from them.

That is not the practice of the state engineer!That is not the practice of the state engineer! Duties are established in areas on an alfalfa Duties are established in areas on an alfalfa

standard and they allow for carrier water and standard and they allow for carrier water and return flow. Some crops are much less return flow. Some crops are much less consumptive than alfalfa and don’t require the consumptive than alfalfa and don’t require the same amount of water. It’s the number of acres same amount of water. It’s the number of acres that is important!that is important!

Page 20: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

If I don’t divert all the water I’m entitled to, If I don’t divert all the water I’m entitled to, the State Engineer will take it away from methe State Engineer will take it away from me

Beneficial Use shall be the basis, the Beneficial Use shall be the basis, the measure and the limit of all rights to the measure and the limit of all rights to the use of water in this state (73-1-3)use of water in this state (73-1-3)

Beneficial use for irrigation is the number Beneficial use for irrigation is the number of acres you are irrigating.of acres you are irrigating.

We don’t differentiate on crop type or the We don’t differentiate on crop type or the amount of water you put on they land. We amount of water you put on they land. We look at acres!look at acres!

Page 21: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

If I don’t divert all the water I’m entitled to, If I don’t divert all the water I’m entitled to, the State Engineer will take it away from methe State Engineer will take it away from me

Regardless of the type of crop grown, if Regardless of the type of crop grown, if you sell your water right, the purchaser you sell your water right, the purchaser would be entitled to the full diversion of would be entitled to the full diversion of the right up to the established duty.the right up to the established duty.

If you go to a sprinkler system and If you go to a sprinkler system and divert less water to irrigate your full divert less water to irrigate your full acres then decide to go back to flood acres then decide to go back to flood irrigation, you still maintain the right to irrigation, you still maintain the right to divert up to the full duty to irrigate your divert up to the full duty to irrigate your acres.acres.

Page 22: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

If I don’t divert all the water I’m entitled to, If I don’t divert all the water I’m entitled to, the State Engineer will take it away from methe State Engineer will take it away from me

Opportunity is given to divert up to the full duty if Opportunity is given to divert up to the full duty if the water is available and needed but it is not the water is available and needed but it is not required to be diverted if it isn’t needed.required to be diverted if it isn’t needed.

Regardless of the amount of water diverted, the Regardless of the amount of water diverted, the duty stays with the land.duty stays with the land.

You could irrigate grain for 10 years and then You could irrigate grain for 10 years and then decide to grow alfalfa. As long as the acres were decide to grow alfalfa. As long as the acres were kept in production, you would have the right to do kept in production, you would have the right to do that.that.

Beneficial use for irrigation is the number of acres Beneficial use for irrigation is the number of acres irrigated … not the diversion of the water.irrigated … not the diversion of the water.

Page 23: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

State Engineer needs to allow irrigators State Engineer needs to allow irrigators the right to use conserved waterthe right to use conserved water

Discussions to give incentives to irrigators Discussions to give incentives to irrigators to conserve water have been ongoing.to conserve water have been ongoing.

Remember beneficial use for irrigation is Remember beneficial use for irrigation is the number of acres.the number of acres.

If I put in a sprinkler system, I may find I If I put in a sprinkler system, I may find I can irrigate twice as many acres as I could can irrigate twice as many acres as I could with flood irrigation. Is that okay?with flood irrigation. Is that okay?

What happens to the depletions in the What happens to the depletions in the system?system?

Page 24: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

Irrigation Return Flow

Diversion = 4.0 Ac Ft/Ac

ET = 2.0 Ac Ft/Ac

Return Flow = 2.0 Ac Ft/Ac

Page 25: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

State Engineer needs to allow irrigators State Engineer needs to allow irrigators the right to use conserved waterthe right to use conserved water

If “conserved” water is put to an If “conserved” water is put to an addition beneficial use on the addition beneficial use on the system, depletions will increase, and system, depletions will increase, and the rights of others will be impaired. the rights of others will be impaired. The same as if you enlarged your The same as if you enlarged your acreage.acreage.

Those “conserved” waters stayed in Those “conserved” waters stayed in the system and were part of the system and were part of someone else’s water right.someone else’s water right.

Page 26: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

State Engineer seeking to affirmatively State Engineer seeking to affirmatively eliminate excess water rightseliminate excess water rights

Assertion that the state engineer is trying Assertion that the state engineer is trying to make up for past mistakes of over to make up for past mistakes of over appropriating water basins.appropriating water basins.

Past state engineers have routinely Past state engineers have routinely approved water rights where it is observed approved water rights where it is observed that there is water available for use. that there is water available for use.

On paper, that may over allocate the On paper, that may over allocate the available water. But until it is all used available water. But until it is all used someone with a need should be able to someone with a need should be able to use it.use it.

Page 27: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

State Engineer seeking to affirmatively State Engineer seeking to affirmatively eliminate excess water rightseliminate excess water rights

That is one of the basic principles of That is one of the basic principles of the prior appropriation doctrine. First the prior appropriation doctrine. First in time is first in right.in time is first in right.

We don’t try to eliminate rights. We We don’t try to eliminate rights. We simply regulate by priority. There is simply regulate by priority. There is no need to eliminate water rights in no need to eliminate water rights in over-appropriated basins. We simply over-appropriated basins. We simply regulate by priority.regulate by priority.

Page 28: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

State Engineer is the Judge, Jury, and State Engineer is the Judge, Jury, and ExecutionerExecutioner

Concern has been expressed that the Concern has been expressed that the state engineer’s processes don’t state engineer’s processes don’t allow for legal due process.allow for legal due process.

Every decision the state engineer Every decision the state engineer makes is subject to administrative makes is subject to administrative reconsideration and judicial review. reconsideration and judicial review. We are not the final say on any We are not the final say on any decision.decision.

Page 29: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

State EngineerState Engineer

“ “ The legislature invested the state The legislature invested the state engineer with important, but not engineer with important, but not conclusive, discretionary powers and conclusive, discretionary powers and duties deserving of great respect; but duties deserving of great respect; but as a safeguard against possible as a safeguard against possible injustice, invested the judiciary with injustice, invested the judiciary with plenary review on trial de novo of his plenary review on trial de novo of his decisions.”decisions.”

((Hafen) American Fork Irr. Co. v. LinkeHafen) American Fork Irr. Co. v. Linke

Page 30: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

The State Engineer should not give The State Engineer should not give “haircuts” to the face value of a water right“haircuts” to the face value of a water right

““Haircuts” represent a reduction given to the Haircuts” represent a reduction given to the face value of a water right based on water face value of a water right based on water availability, and the beneficial of the water.availability, and the beneficial of the water.

Each water right has associated with it a Each water right has associated with it a depletion limitation based on its uses. This depletion limitation based on its uses. This depletion limitation cannot be exceeded depletion limitation cannot be exceeded without impairing the rights of other users in without impairing the rights of other users in the system.the system.

There are more paper water rights in Utah than There are more paper water rights in Utah than there is physical water.there is physical water.

Page 31: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

Evaluation of a Water RightEvaluation of a Water Right

Major ElementsMajor ElementsFlow: 2.50 CFSFlow: 2.50 CFS

Source: Spring Source: Spring CreekCreek Use: Use: Irrigation of 100 acresIrrigation of 100 acres Period of Use: April 1-Oct 31Period of Use: April 1-Oct 31

What is the beneficial use?What is the beneficial use? What are the diversion and What are the diversion and

depletion limitations?depletion limitations?

Page 32: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

Changing an Irrigation Water Changing an Irrigation Water Right to Industrial UsesRight to Industrial Uses

Water right is for 100 acre of Water right is for 100 acre of irrigationirrigation

100 ac x 4.0 ac ft /ac = 400 ac ft100 ac x 4.0 ac ft /ac = 400 ac ft Historical Depletion = 200 ac ftHistorical Depletion = 200 ac ft Industrial use is 100% Industrial use is 100%

consumptiveconsumptive Therefore, Therefore, diversion & depletion diversion & depletion limited limited to 200 ac ft.to 200 ac ft.

Page 33: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

Paper Right ExamplesPaper Right Examples

1 cfs/ 60 acres irrigation. Spring source1 cfs/ 60 acres irrigation. Spring source

A. Spring flows full flow, full season – 240 A. Spring flows full flow, full season – 240 afaf

B. Spring only flows May and June – 120 afB. Spring only flows May and June – 120 af C. Spring only flows once every 5 years –C. Spring only flows once every 5 years – D. Used with 3 other rights all on the D. Used with 3 other rights all on the

same 60 acres –same 60 acres – E. Spring flows full , full season, not used E. Spring flows full , full season, not used

in 20 yearsin 20 years

Page 34: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

QuestionsQuestions

Questions?

Page 35: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

SB 211 Water Rights SB 211 Water Rights Amendments Amendments

Replica of last year’s SB 109 as it Replica of last year’s SB 109 as it was initially filed.was initially filed.

Requires that a person who applies Requires that a person who applies for a change to a water right must for a change to a water right must meet certain qualifications.meet certain qualifications.

Page 36: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

SB 211 Change Application SB 211 Change Application Procedure Procedure

Allows the State Engineer to Allows the State Engineer to determine the quantity of water that determine the quantity of water that is currently being beneficially used is currently being beneficially used and limit the approval of the change and limit the approval of the change based on that determination.based on that determination.

A “person” may make changes to a A “person” may make changes to a water right for the Point of Diversion, water right for the Point of Diversion, Place of Use, Nature of Use, Period of Place of Use, Nature of Use, Period of Use, and add or delete storageUse, and add or delete storage

Page 37: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

SB 211 (cont.)SB 211 (cont.)

A Person is: A Person is: The holder of an approved but The holder of an approved but

unperfected application to unperfected application to appropriate;appropriate;

The owner of record of a perfected The owner of record of a perfected water right;water right;

One authorized in writing by the holder One authorized in writing by the holder or owner;or owner;

A shareholder in a water company as A shareholder in a water company as defined in 73-3-3.5 with written consent of defined in 73-3-3.5 with written consent of the water company.the water company.

Page 38: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

SB 211 (cont.)SB 211 (cont.)

State Engineer, to prevent impairment of State Engineer, to prevent impairment of other water rights shall:other water rights shall:

Have authority to review beneficial use and limit the Have authority to review beneficial use and limit the approval to the “quantity of water available for approval to the “quantity of water available for change”;change”;

Presume water has been put to beneficial use if Presume water has been put to beneficial use if protected by statute and not rebutted by clear and protected by statute and not rebutted by clear and convincing evidence that a lesser quantity of water convincing evidence that a lesser quantity of water is available for change;is available for change;

Hold a hearing to review nonuse issues;Hold a hearing to review nonuse issues;

Not adjudicate the validity of the remaining portion Not adjudicate the validity of the remaining portion of the right.of the right.

Page 39: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

SB 211 (cont.)SB 211 (cont.)

““Quantity of water available for Quantity of water available for change” shall mean the quantity of change” shall mean the quantity of water that has been placed to water that has been placed to beneficial use under a water right beneficial use under a water right within the time provided in Section within the time provided in Section 73-1- 4 UCA.73-1- 4 UCA.

Page 40: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

SB 211 (cont.)SB 211 (cont.)

The applicant has the right to withdraw the The applicant has the right to withdraw the application, request a stay of action, or pursue application, request a stay of action, or pursue litigation to determine the validity of the right.litigation to determine the validity of the right.

The State Engineer’s determination of the The State Engineer’s determination of the quantity of water available for change does quantity of water available for change does not constitute forfeiture or abandonment, not constitute forfeiture or abandonment, affect the use of the unapproved portion of affect the use of the unapproved portion of the water right, or constitute an adjudication the water right, or constitute an adjudication of the underlying water right. of the underlying water right.

Page 41: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

Administrative Water Rights ForfeitureUCA 73-3-3

Administrative Water Rights Forfeiture UCA 73-3-3     In 2008 Representative Painter advanced HB51, a seminal water rights bill that codified a public water supplier’s ability to hold water

for the “reasonable future demands of the public”, without risk of forfeiture. That bill also confirmed that only a court could forfeit a water right and that all water rights that were owned by public water suppliers on May 5, 2008 would not be subject to forfeiture.

This year, the state engineer would like to codify his right to “administratively forfeit” a water right through the change application process. This concept would threaten water rights owned by or offered to municipalities from May 5, 2008, forward. The ULCT opposes such a bill, as currently drafted.

Administrative forfeiture of a water right is a loss that is almost exclusively experienced by municipalities (or developers proposing to develop in municipalities). It occurs upon the municipality’s request to change a water right that is currently approved for agricultural use into a water right that is approved for municipal use. During that “change application” process, the state engineer approves or denies a city’s request to convert a water right:

from seasonal irrigation use into a year round use; to a different point of diversion and usually to a broader place of use (from a farm to the town boundaries); without “enlarging” the existing water right; and without “interfering” with existing water rights holders. The ULCT agrees with these goals. However, the state engineer currently has virtually no statutory guidance in how to pass judgment on each of these factors. Further,

in this critical role, the state engineer’s office often takes years (sometimes decades) to decide an individual change application. After the multi-year delay, in a typical change application, cities and towns (or developers within them) face the threat of

“administrative forfeiture” of at least 33% and up to 100% of the original water right. This unfortunate fact leads cities and towns to delay land use approvals and close on water rights purchases until the state engineer’s office finally determines the validity of the change application. The multi-year delay is often the death knell to land development and the water transaction.

To add insult to injury, the state engineer’s office is no longer the neutral arbiter of water rights that it once used to be, even though it still holds a quasi-judicial role in our water rights system. For decades, the state engineer’s office issued water rights far in excess of the water that is available in each basin. In the last decade, the state engineer’s office affirmatively has sought to eliminate excess water rights. Rather than “adjudicate” each basin, in a fair and open process, the state engineer has chosen the

Page 42: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

municipal change application system as its weapon of water rights destruction. As a result, the entire “over appropriation” debacle that was created by the state engineer’s office will be paid for exclusively by municipalities, or the developers who wish to develop in them.

The ULCT and the Property Rights Coalition agree that it is time to rationalize, objectify and streamline the change application process to remove this unilateral threat from the current land development system. While nebulous rules and the good faith of the staff in the state engineer’s office once worked when water rights were valued at $200 per acre foot, the market for water rights has exceeded $35,000 per acre foot. Too much is at stake here to allow limitless government discretion to persist.

One step in the right direction would be to define the state engineer’s role in each of the four change application inquiries: What is the conversion factor (“haircut”) that the state engineer can use in converting a seasonal flood irrigation right into a

year round use? Given that 90% of the municipal use is in during the irrigation season, should the haircut be limited to 10%? (Currently, a haircut can cost 50%);

Should the state engineer be involved in limiting a point of diversion or a place of use without an actual protest of area water rights holders?

Can common law principles and “well known”, but un-codified state engineer policies be codified to give clear, reviewable guidance into how “historic beneficial use” will be considered to prevent “enlargement” of a water right?

Can forfeiture based on interference be limited to that which is actually claimed in a protest by an interested water rights holder?

Simply stated, currently there are no limits on the state engineer’s authority to declare an absence of historic beneficial use and thereby functionally forfeit the water right through the change application process. No protest is required. No amount of due diligence can be exercised prior to purchase or dedication to immunize a water right from this aspect of state engineer review.

Further, the law is so unclear that there is virtually no judicial check on the state engineer’s authority. The district courts simply defer to his discretion.

The state engineer’s office has proposed legislation that would codify virtually limitless discretion to administratively forfeit water rights through change applications. The ULCT and the Property Rights Coalition oppose such legislation without a clear delineation of the criteria for the delegation of such authority.

A small task force has met with the state engineer to discuss how to refine criteria for the timeliness and the exercise of the state engineer’s authority. This aspect of water rights law will need another interim session before it is ready to go to the legislature.

Page 43: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E
Page 44: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E
Page 45: Water Right Issues Utah Water Users Workshop    March 17, 2014 Kent L. Jones, P.E

Utah’s Water BudgetUtah’s Water Budget

Category Water Supply (acre-feet)

Total Precipitation

Used by vegetation andnatural systems

Basin Yield

Compact Decreases

Ground Water MiningIncreases & Other Inflow

Supply

Agricultural DepletionsM&I Depletions

Other Natural Depletions

GSL Evaporation

61,500,000

53,789,000

7,711,000

7,311,000

Yield that flows out of state 695,000

2,175,000

443,000

3,000,000

998,000

535,000

135,000

Available Supply 3,313,000