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• Board Meeting Date: 1/22/2008
• Description: CWCB Legislative Priorities and Recommendations - Instream Flow Lessor Protection
• Board Meetings - Doc Type: Memo

water rights owners who loan or lease their water for instream flow use risk a decrease in the
value of their water rights if they subsequently apply for a change of water right. Last year, the
General Assembly enacted HE 07-1012, which protects water rights owners from loss of
consumptive use and the presumption of abandonment when they loan or lease water to the
CWCB for short periods of time under section 37-83-105(2), c.R.S. However, the bill did not
extend the protection to long term leases of water, which can be critical for effective, long term
restoration efforts. Water rights owners interested in contracting with the CWCB to allow
instream flow use of their water rights have expressed concern about potential negative
consequences of such instream flow use in future water right change or abandonment
proceedings.

Discussion

The proposed draft legislation attached to this memo addresses the concerns described above in
the same manner that HE 07-1012 did in the context of temporary loans or leases of water to the
CWCB under section 37-83-105(2), C.R.S. The proposed legislation would:

. Amend section 37-92-102(3) to exclude all periods of time during which the CWCB uses
water, water rights or interests in water for instream flow purposes from any historic
consumptive use analysis of the subject water right required under any water court
proceeding.

. Amend section 37-92-103(2)(b) to designate participation in a contract or agreement with the
CWCB allowing the CWCB to use all or part of a water right for instream flow use under
section 37-92-102(3) as a circumstance under which no intent to abandon the loaned water
right shall be found.

Staff has discussed this proposed legislation with water users and other interested parties,
including conservation groups. Representative Randy Fischer and Senator Gail Schwartz have
expressed interest in sponsoring this bill, and the Water Resources Review Committee
informally expressed support for the bill.

Recommendation

Staff recommends that the Board approve moving forward with this proposed legislation.

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