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<br />(I U 2116 9' <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />3 <br /> <br />I. When the Bureau is considering water developments involving <br />nonreserved water for which a State appropriative water right is required <br />to protect the Federal investment, Federal funds shall not be allocated <br />for development or construction unless the Bureau can obtain a State <br />appropriative water right either solely in the name of the United States <br />or as a coholder with a private applicant. <br /> <br />J. There is no legal basis for the issuance of Federal water use <br />permits or leases. Private water rights to nonreserved waters are acquired <br />pursuant to State law, and BLM has authority only under section 302(b) and <br />Title V of FLPMA to control and regulate access to the water sources by <br />right-of-way (R/W) permits, leases, grants, etc. Furthermore, the Bureau <br />has authority to require information from a R/W applicant, grazing permittee, <br />etc., on proposed water use and can condition its permits, leases, grants, <br />etc., to protect land and water resource values on the public lands. <br /> <br />K. In conjunction with its existing permit and leasing system, the <br />Bureau requires a R/W permit for projects involving the transportation of <br />water, i.e., canals, ditches, flumes, pipes, pipelines, tunnels, or other <br />facilities, as well as for the impoundment, storage, or distribution of <br />the water upon the public lands. <br /> <br />L. The Bureau shall also require that for all proposed water projects <br />on the public lands, the applicant must file a "Notification of Proposed <br />Water Use in Conjunction with Application for Righ t-of-Way Permit" (see <br />Attachment I). The R/W permit issued under this system allows the <br />use of water on the public water reserves and the unreserved public lands, <br />but requires that for unreserved waters, a State appropriative water right <br />be obtained within a reasonable period of time, normally not to exceed one <br />year from and after the issuance of the R/W permit, with the name of the <br />United States or the names of the permittee and the United States appearing <br />on the certificate. A R/W permit issued under this system prohibits the <br />permittee from claiming, seeking, or acquiring permanent and exclusive <br />.right to the use of the water and from transferring the State appropriation <br />to a third party. The R/W permit system does not allow practices by the <br />permittee that would exclude incidental but necessary water use by the public. <br /> <br />M. If the R/W applicant or the State will not recognize the Bureau as <br />a coapplicant and/or coholder of a State appropriative water right, then <br />the R/W grant may be denied since issuance of rights-of-way under Title V <br />of FLPMA is discretionary with the Secretary. Furthermore, the Bureau can <br />subject the R/W permit to whatever terms and conditions under section S04(c) <br />of FLPMA as it deems necessary to adequately protect and manage the public <br />lands, including protection of water resources, provided that such terms <br />and conditions are not arbitrary and capricious. <br /> <br />N. The Bureau, as a matter of comity, should inform the State of water <br />resource uses on the public lands by non-Bureau users. This may be accomplished <br />by transmittal of a copy of the Notification of Proposed Water Use in <br />conjunction with Application for Right-of-Way Permit. It is not necessary <br />for the permittee to notify the State. <br />