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<br />008598 <br /> <br />LEGAL AND INSTITUTIONAL FACTORS <br /> <br />COLORADO <br /> <br />, <br /> <br />a. Beneficial Use <br /> <br />The Colorado Constitution declares that the right to divert and put <br />unappropriated water to beneficial use "shall never be denied." Uses <br /> <br />specifically recognized as "beneficial" are domestic, agricultural, <br /> <br />industrial, municipal, and recreational, although others have been <br />recognized. <br />The State recently enacted legislation expanding "beneficial use" to <br /> <br />include appropriation by the State of minimum levels in streams or on <br /> <br />lakes as required to preserve the natural environment to a reasonable <br /> <br />degree. <br /> <br />b. Priority <br />The Colorado Constitution provides that whenever the waters of any <br /> <br />natural stream are not sufficient, those using the waters for domestic <br /> <br />purposes shall have preference over those claiming for any other purposes, <br />and those using the water for agricultural purposes shall have perference <br /> <br />over those using the same for manufacturing purposes. The courts have <br /> <br />held that the preference is not self-executing but must be exercised by <br /> <br />condemnation. Through the condemnation proceedings, the preferred user, <br /> <br />or condemner, is required to make just compensation to the defendant whose <br /> <br />right is invalidated even though it be senior in priority. <br />c. Reserved Waters <br /> <br />Major problems exist concerning the scope and procedural mechanisms <br /> <br />for quantification and adjudication of Federal reserved water rights. <br /> <br />Colorado does not oppose the principle of lawful and reasonable reserved <br /> <br />rights and wants to see them quantified, limited to the authorized <br /> <br />G-55 <br />