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<br />but have leased some of their unused rights to MFWP for instream flow to improve Yellowstone <br /> <br />cutthroat trout spawning in Cedar Creek, another important tributary to the Yellowstone River. <br />This agreement was completed in December, 1993. <br /> <br />The sixth lease, completed in August, 1995, is the result of converting a flood irrigation system <br />to a gravity pipeline sprinkler system. It involves three individuals who irrigate from Hells <br />Canyon Creek, a Jefferson River tributary. The new system was completed in the fall of 1995 <br />and the lease will become effective during the 1996 irrigation season. The lease is expected to <br />improve rainbow trout spawning and reproduction in the creek that will improve the fish <br />population in the Jefferson River. <br /> <br />The seventh lease is with an individual on Mill Creek where the first two leases were obtained. <br />He has considered leasing since the first two leases were obtained two years ago. However, he <br />preferred to wait and see how those leases turned out before committing himself. This person <br />is also on the pipeline and MFWP leases his salvaged water. The agreement was completed in <br />August, 1995 and will be implemented in 1996. <br /> <br />After the lease agreements were completed or, when it appeared they would be completed, FWP <br />submitted applications to DNRC to change the purpose and place of use of the water rights to <br />instream flow. Once the change applications were accepted by DNRC, public notices were sent <br />to potentially affected water uses and to local newspapers for publication. This allowed any <br />objections to the leases to be filed. Hearings were held on two of the change applications (Cedar <br />Creek and Tin Cup Creek) to allow objections to the leases to be heard. No objections were <br />received on the other five leases. All of these leases were eventually approved by DNRC. <br /> <br />COST OF LEASES <br /> <br />Appendix A summarizes the pertinent features and costs of the approved leases. <br /> <br />MFWP makes lease payments to lessors from a license fee account. No federal money is <br />involved. However, studies required to evaluate a lease can be paid for from a Wallop-Breaux <br />account (an account that receives funds paid to the federal government from manufacturers' <br />excise taxes on fishing equipment and on motor boat fuel). These funds are matched by license <br />fees. <br /> <br />At the beginning of the leasing study, The Montana Nature Conservancy in Helena, Montana <br />established The Montana Water Leasing Trust Fund in conjunction with a public attitude survey <br />of the need for instream flows. Surveyed persons were asked if they would be willing to <br />contribute to a fund to help pay for instream flow leases. Then, they were asked to actually <br />contribute to the fund. About $7,000 were raised and used to help pay for the second lease <br />on Mill Creek. The fund is no longer active. <br /> <br />6 <br />