BOARD01816

• Board Meeting Date: 11/19/2001
• Description: CF Section - Proposed Statute Revisions Construction Fund and Severance Tax Trust Fund Perpetual Base Account
• Board Meetings - Doc Type: Memo

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INFORMATION SHEET
Arkansas River Pilot Water Banking Act, House Bill 1354 (sects.
37 -80,5-101 et. seq., (2000))

Purpose
To test the concept and use of water banking in the Arkansas River Basin.

Major requirement
By July 1, 2002, the State Engineer (SE) must promulgate rules and
regulations that authorize, facilitate, and permit the lease, exchange, loan,
and/or use of interruptible supply agreements (i.e. water banking), of
stored water.

Details
The law requires:

· public meetings in the Arkansas River Basin to obtain input and public
comment prior to promulgation of rules;

· cooperative consultation between the SE and the Colorado Water
Conservation Board (CWCB) in the promulgation of the rules;

· the rules to govern and facilitate exchanges/loans of water in the basin except
from below John Martin Reservoir to above it (prior compact approval is
required in this stretch);

· the SE to place conditions upon leases, loans and exchanges out of the
Arkansas Basin and that the bank cannot operate in a manner to increase
water diversions from another basin;

· transfers of water to instream flow use can only be made to the CWCB;

· compliance with the Arkansas River Compact and Colorado water Jaw,
howev6rJ,lsesJhrougb thebClnkclonothave to beadludicated;

· a definition of "interruptible supply" and "water banking;"

· SE consideration of limits in time, place, type of use and length of
agreements;

· insurance of non-injury to vested water rights;

· establishment of criteria for the SE to accept deposits of water in the bank,
require proof of ownership, lease, contract, legal parameters (decree or
contract) of the use of the water, credit withdrawals, publish summaries of the