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Last modified
7/14/2009 5:02:35 PM
Creation date
5/22/2009 5:43:49 PM
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UCREFRP
UCREFRP Catalog Number
9370
Author
Colorado Water Workshop.
Title
1996 Colorado Water Workshop.
USFW Year
1996.
USFW - Doc Type
Western State College of Colorado.
Copyright Material
NO
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<br />agree to the terms of a lease, the lease will not occur. Leases cannot result in the confiscation <br /> <br />of water rights and a lease may not be approved until any objections to the lease are resolved <br />through the change process. <br /> <br />The maximum amount of water that may be leased is the amount historically diverted by the <br />lessor at his point of diversion. However, only the amount historically consumed, or a lesser <br />amount as determined by DNRC, may be protected below the point of diversion. <br /> <br />A lease may be issued for a maximum period of 10 years but may be renewed one time for an <br />additional 10 years. However, leases that are the result of a water conservation or storage <br />project, such as converting from flood to sprinkler irrigation, can be issued the first time for not <br />more than 20 years. There is no provision for renewing a 20-year lease. All leases entered into <br />prior to June 30, 1999 remain valid until the expiration of the lease. <br /> <br />HB 707 is codified in Sec. 85-2-436 to 85-2-438, MCA and is titled "Water Leasing Study". <br /> <br />EARLY IMPLEMENTATION PROBLEMS <br /> <br />The leasing study got off to a slower start than anticipated for at least two reasons. First, MFWP <br />elected to proceed at a cautious, yet deliberate, pace given the concern and controversy <br />surrounding passage of HB 707. Second, MFWP proceeded to conduct several studies on the <br />impact of water leasing prior to submitting a change of use application to DNRC. One of the <br />studies was to determine the market value of leasing existing water rights for instream flows. <br />Two others involved hydrologic analyses of the first two streams where leasing was being <br />investigated to determine the possible effects of the leases on existing water users. There was <br />disagreement between MFWP and some supporters of the leasing bill as to whether the market <br />value study was necessary. They believed that MFWP should simply go out and start negotiating <br />water leases. Because a market for transfer of existing rights to instream flow has not been <br />established in Montana, the market value study provided a basis for negotiating the price of <br />leasing water. However, the amount paid for a lease is negotiable and the outcome depends, to <br />a large extent, on how the negotiating parties perceive the value of the rights to be leased. <br /> <br />The initial slow pace of the program can also be attributed, in part, to the post-legislative <br />carryover of concern by some agricultural folks that leasing would interfere with their water <br />rights and would go against the traditional concept of water use, opening the door for other <br />changes that would be unacceptable. Some potential lessors were unwilling to be the first persons <br />to lease water because of perceived repercussions from others in the agricultural community. <br />One individual who was willing to negotiate indicated he was getting pressure from his neighbors <br />about leasing to MFWP. However, he continued negotiations (which eventually fell through <br />because of the asking price). <br /> <br />As time passed, the concern of these folks diminished as they found that MFWP was not <br /> <br />4 <br />
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