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<br />Section 4 <br />Legal Framework for Water Use <br /> <br />Division Engineer.18 If a water right is not placed to <br />beneficial use for an extended period of time, and an <br />intent to abandon the water right is demonstrated, the <br />right may be lost. 19 <br /> <br />Thus, beneficial use limits the quantity of water initially <br />allocated under individual water rights, ensures, through <br />administration, that the amount of water used under a <br />water right over time remains limited to the amount <br />actually needed, and conserves water for other uses and <br />users. <br /> <br />4.1.1.3 Maximum Utilization <br /> <br />Colorado courts have held that water should be allocated <br />and administered in a way that promotes the "maximum <br />utilization" of the resource.20 This principle was <br />formulated in reliance on Article XVI, Section 6 of the <br />Colorado Constitution, which states "[the right to divert <br />the unappropriated waters of any natural stream to <br />beneficial uses shall never be denied."21 Maximum <br />utilization has been applied by the courts in two ways: (1) <br />to require an efficient means of diversion with the <br />purpose of making more water available to other water <br />users; and (2) to support of the adoption of statutory <br />tools allowing flexible administration, including, for <br />example, augmentation plans, exchanges, and the "futile <br />call doctrine." <br /> <br />Augmentation plans promote maximum utilization by <br />allowing junior appropriators to divert out-of-priority, while <br />protecting seniors from injury by replacing all out-of- <br />priority depletions. 22 <br /> <br />18 See S 37 -92-502(2)(a) "Each division engineer shall order the total <br />or partial discontinuance of any diversion in his division to the <br />extent that the water being diverted is not necessary for application <br />to a beneficial use[.]" <br />19 See City & County of Denver v. Middle Park Water Conservancy <br />District, 925 P.2d 283, 286 (Cob.1996). <br />20 See Fellhauer v. People, 447 P.2d 986, 994 (Cob. 1968). <br />21 See id. at 994 ("It is implicit in these constitutional provisions that, <br />along with Vested rights, there shall be Maximum utilization of the <br />water of this state") (capitalization in original); see also CR5. S 37- <br />92-102(1 )(a) (Under the "basic tenets of Colorado water law," the <br />legislature has codified the doctrine of maximum utilization, <br />declaring that "it is the policy of this state to integrate the <br />appropriation, use, and administration of underground water <br />tributary to a stream with the use of surface water in such a way <br />as to maximize the beneficial use of all of the waters of this state") <br />(emphasis added). <br />22 See C.R.S., S 37-92-501.5, requiring the State Engineer to "exercise <br />the broadest latitude possible in the administration of waters under <br />their jurisdiction to encourage and develop augmentation plans <br />and voluntary exchanges of water. . . in order to allow <br /> <br />o :\SHAWN\ARKANSAS\S4_ARKANSAS. DOC <br /> <br />Water exchanges also promote maximum utilization. <br />Under an exchange, a substitute supply of water is made <br />available to a downstream senior appropriator and an <br />equal amount of water is then taken at an upstream point <br />of diversion. Exchanges facilitate the movement of water <br />to promote maximum utilization. <br /> <br />Like augmentation plans, the "futile call doctrine" also <br />allows junior water users to divert out-of-priority under <br />certain circumstances. Under this doctrine, a junior water <br />user will be curtailed only if such curtailment actually <br />makes water available to a senior water user calling for <br />water.23 This allows juniors to continue diverting in times <br />of scarcity, even if a senior is not receiving its whole <br />entitlement, if curtailment of the junior would not allow <br />any additional water to reach the senior. <br /> <br />4.2 Specific Tools for Addressing <br />Water Needs <br /> <br />There are a number of specific tools within the current <br />legal framework of the Priority System that can be used <br />to address various water supply needs. These specific <br />tools include the following. <br /> <br />4.2.1 Water Storage Rights <br /> <br />There are two different types of water rights - direct flow <br />water rights and storage water rights.24 Direct flow rights <br />allow a water user to divert water for immediate use, <br />while storage rights allow a water user to divert water <br />and store it to make a beneficial use at a later time. <br />Storage rights, like other water rights, are assigned a <br />priority and must be exercised without injury to other <br />water rights.25 Storage rights are obviously a very <br />important mechanism for ensuring that water supplies <br />will be adequate in times of drought. Moreover, <br />reservoirs provide year-round water when stream levels <br /> <br />continuance of existing uses and to assure maximum beneficial <br />utilization of the waters of this state." <br />23 See CR5., SS 37-92-1 02(2)(d) ("No reduction of any lawful diversion <br />because of the operation of the priority system shall be permitted <br />unless such reduction would increase the amount of water <br />available and required by water rights having senior priorities"); <br />and 37 -92-502(a) ("Each division engineer shall order the total or <br />partial discontinuance of any diversion in his division. to the extent <br />that the water being diverted is required by persons entitled to use <br />water under water rights having senior priorities, but no such <br />discontinuance shall be ordered unless the diversion is causing or <br />will cause material injury to such water rights having senior <br />priorities"). <br />24 CR5. S 37-87-101 <br />251d <br /> <br />CDIVI <br /> <br />4-3 <br />