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COLORADO WATER CONSERVATION BOARD <br />Department of Natural Resources <br />Bill Ritter, Jr., Governor <br />Harris D. Sherman, DNR Executive Director <br />Rod Kuharich, CWCB Director <br />January 2007 <br />HB 07-1012 -- CONCERNING PROTECTION OF WATER RIGHTS <br />LOANED TO THE CWCB FOR INSTREAM FLOW USE <br />Background <br />The instream flow and natural lake level program <br />was established in 1973. The CWCB may <br />"appropriate ... or acquire such waters of natural <br />streams and lakes as may be required to preserve <br />the natural environment to a reasonable degree." <br />Several changes have been made to the original <br />enabling statute, including providing the CWCB <br />with the authority to accept a loan of a water <br />right. <br />In 2003, HB 03-1320 (codified at section 37-83- <br />105, C.R.S.) became law. It allows the <br />temporary acquisition of water rights for <br />instream flow purposes. The new law allowed <br />water right owners in basins or counties where <br />the Governor declared a drought or other <br />emergency to convey water rights to the CWCB <br />for instream flow use for up to 120 days. The <br />law also established procedures for State and <br />Division Engineer approval of temporary <br />instream flow use of loaned water rights. <br />In 2005, the General Assembly passed HB 05- <br />1039, amending section 37-83-105(2) to remove <br />the drought declaration requirement for loans, <br />limit the exercise of a loan to no more than three <br />years in any ten year period, and provide a <br />process for parties to comment on potential <br />injury after each year a loan is exercised. <br />A change in the law is now needed to protect <br />water rights owners that choose to loan water in <br />future water court proceedings. <br />What the Bill does: <br />Amends section 37-83-105(2) to exclude all <br />periods of time during which a loaned water <br />right is used by the CWCB for instream flow <br />purposes from any historic consumptive use <br />analysis of the loaned water right required <br />under any water court proceeding. <br />• Amends section 37-92-103(2)(b) to designate <br />participation in a loan of water to the Board <br />for instream flow use as a circumstance <br />under which no intent to abandon the loaned <br />water right shall be found. <br />Assures water rights owners interested in <br />loaning water for instream flow uses that the <br />loan will not result in a reduction of the <br />historic consumptive use credited to the <br />loaned water right in any future water court <br />proceeding to change that water right. <br />Assures water rights owners interested in <br />loaning water to the CWCB that the owner's <br />nonuse of a water right during the period of <br />the loan shall not give rise to a presumption <br />of abandonment of that water right. <br />For more information, contact <br />Luida Bassi at the CWCB at (303) 866-3263. <br />1313 Sherman Sheet. Room 721, Denver, CO. 80203 <br />Phone: (303) 866-3441 F_~: (303) 866-4474 Internet: ~nRnRn~.cwcb.state.oo.us <br />