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2-2 I I I I I I I I I I I I I I I I I I I 0215 ditch oompany whose operation is oontrolled by all itrigators on the ditch. The buyer desires oo!lfirmation that a certain minimum quantity of transfe~able oonsumptive use water will be available, and that the water will be deliverable to its place of need. In some cases the water is to be exchanged upstream to a storage location and pipeline intake, although sometimes a downstream storage location and pipeline intake can be used. The buyer typically prefers a water supply with senior decrees because less supply fluctuation will occur. Associated reservoir storage close to the locatio~ of diversion or use, and a low purchase cost and low transaction costs are important considerations for a buyer. Also important is a high degree of certainty that the governmental permits and wateroourt transfer decree can be obtained with acceptable requirements. Crucial to the buyer is the ability to oontrol the ditch oompany in order to prevent obstruction of its change of use of shares by changes in the company articles, bylaws, or procedures. Because of the cost of delivery facilities, the buyer usually seeks a range of supply, i.e., a large enough supply to obtain economies of scale, but not so large that the supply is excessive or the capital oost is out of reach. All terms of the purchase and sale contract are negoti~ble, and oontract terms are highly variable. In some cases, the buyer bears the risk of successful ttansfer and consumptive use determination; in other cases the seller bears that risk. A variety of governmental permits and authorizations may be required. Because of the presence of federally operated reservoirs on many major streams, federal storage authorizations may be required. U. S. Army Corps of Engineers Section 404 permits imay be required, as are rights of way over federal lands for pipelines. One of the federal actio,* may trigger a fish and wildlife endangered species oonsultation. State permits are required for ri$hts of way over state lands for pipelines and for water treatment facilities. If water treatment results in discharge of a waste, state water quality permits for point source discharges will be necessary. 'Both federal and state parks and recreation areas border most major streams; changes in stream flow may require consideration by federal and/or state agencies. An additional possibility that currently no such restrictions exist in the study area. In Colorado, local governments may enact land-use! codes which impose restrictions on water diversions or change in water uses, as well as zoning tequirements on land use. To date, no such restrictions are in place in the five county study area. i ! The water rights transfer process occurs in the special water oourt with responsibility for the particular stream basin. Interested parties may file statements of opposition. Typically owners of other water rights, including minority shareholders :in the ditch, file statements of opposition, asserting that their water rights could be adversely affe,bted if the transfer request is granted without terms and conditions to prevent material injury to their water rights. On occasion, other interested persons or groups file statements of opposition and 'participate in the case. Generally the state engineer participates to assure oompliance with genet,ally accepted hydrologic analysis, oompliance with state rules and regulations, and to encourage appropriate methods of administration of and accounting for water being transferred. While a water rights owner or holder clearly has standing to participate in the case, the Colorado supreme OOUf,t has not resolved the standing of other third parties. The extent to which the water oourt may act ito protect third party interests which are not