Memorandum Agenda Item 17B 01/07/2002

• Board Meeting Date: 1/7/2002
• Description: Proposed Arkansas River Basin Pilot Water Bank Rules
• Board Meetings - Doc Type: Memo

• B. Based upon its review of the above information, the water bank, in
consultation with the Division Engineer, shall determine whether the
stored water is eligible for deposit in the bank. If the water bank
determines that the water is not eligible, it shall notify the
prospective depositor to address any impediments to the water's
eligibility.
C. Upon determination that a prospective depositor's stored water is
eligible for deposit into the water bank, the water bank and the
depositor shall negotiate and enter into a deposit agreement. The
terms of the deposit agreement shall include, but not be limited to:
1. Authorization of the water bank by the depositor to advertise
and market the water placed into the deposit account.
2. The depositor's agreement that the water bank shall have the
exclusive right to lease, loan, option or exchange the deposited
water on behalf of the depositor for the term of the deposit
agreement, and that the depositor shall not independently
market, lease, loan, option or exchange the deposited water
during the time that the deposit agreement is in effect.
3. A provision that the depositor may remove the deposited water
from the water bank for the depositor's own use or for
permanent sale by the depositor at any time prior to an actual
IPwater bank transaction in which control of all or a portion of the
deposited water is transferred pursuant to terms of the deposit
agreement.
4. Any other terms deemed necessary by the water bank and the
depositor.
Rule 6. Publication.
A. Upon finalization of the deposit agreement, the water bank shall list
the availability of the water right on the water bank's web site.
Listings of availability shall also be available at any State or
Division Engineer field office locations.
B. The listing shall include, at a minimum, the amount of water
available, the stored location of the water, the source of water and
the historic type of use.
C. In order to promote use within the Arkansas River basin, during the
first ten (10) business days of publication, only in-basin use bids for
use of the water may be submitted to the seller. The seller must
accept a bid meeting at least the minimum bid price during this ten
(10) day period. If this initial listing period expires without a
minimum bid price being offered, all bids from potential purchasers,
including out-of-basin users may be considered.
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