BOARD01923

• Board Meeting Date: 11/19/2001
• Description: Draft Water Banking Rules in Arkansas River Basin to be Promulgated Pursuant to HB 01-1354
• Board Meetings - Doc Type: Memo

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DRAFT RULES DATED 11/05/01
RULES GOVERNING THE ARKANSAS RIVER WATER BANK PILOT PROGRAM
AUTHORIZATION

These rules are promulgated pursuant to the authority granted the State
Engineer in sections 37-80.5-101 et Seq., C.R.S. (2001) to implement a pilot water
banking program in the Arkansas River Basin.

ORDER OF THE STATE ENGINEER

IT IS ORDERED that the following rules governing the Arkansas River Water
Bank Pilot Program are adopted by the State Engineer.

Rule 1. Title.

The title of these rules is "The Rules Governing the Arkansas River Water
Bank Pilot Program." The short title for these rules is "Water Bank Rules"
and they may be referred to herein collectively as the "rules" or
individually as a "rule."

Rule 2.

Scope and Purpose.

A.

These rules apply to the establishment and operation of a pilot water
bank for owners of storage water rights in the Arkansas River Basin and
its tributaries. These rules are effective through June 30, 2007.
The purpose of these rules is to implement a pilot water bank that
simplifies and facilitates water leasing, loans and exchanges including
interruptible supply agreements, of storage water rights within the
Arkansas River Basin; and to reduce the costs associated with such
transactions. Further, it is also the purpose of these rules to increase the
availability of water-related information and assist farmers and ranchers
by developing a mechanism to realize the value of their water right assets
without forcing the permanent severance of those water rights from the
land. Nothing in these rules is intended to restrict the ability of the holder
of a water right to sell, lease or exchange that water right in any other
manner that is currently permitted under Colorado law. These rules are
not to be implemented in a manner that would cause material injury to the
owner of or persons entitled to use water under a vested water right or a
decreed conditional water right.

B.

Rule 3.

Definitions.

A.

As used in these rules:
1. "Bankable water" means any legally stored water that meets the
necessary criteria established by these rules. Direct flow water
rights are not included in this definition.
2. "Article II water" means water stored within Individual Water
District 67 ditch accounts pursuant to Section II of the Resolution
Concerning an Operating Plan for John Martin Reservoir adopted