Proposal would set rules for state claims to lessee water rights

The department may not obtain ownership of certain water rights unless an exception applies or the board authorizes it. This covers rights owned by state land lessees and rights supplied by a well or developed spring on private land for use on state trust land. An exception applies to rights described in section 85-2-441(2)(b). The department must notify the lessee or water-right owner 180 days before asking the board. A representative, including an attorney, may present testimony and evidence at a board hearing. If the board approves the request, a court must decide whether the state owns the water right.

A water-right owner with a state land lease may use water from a private well or developed spring on state trust land for the lease term. This applies to a water-right owner who has a state land lease. The well or developed spring must be on private land. The lessee may remove associated stock tanks and other stock-water improvements without department approval.

The department must give the board a list of certain water rights it obtained from lessees. The list covers water rights the department obtained from lessees since July 1, 1982. The board may ask the department for more information and may take further action after notifying the water-right owners and lessees involved. The department would have 180 days after the act took effect to provide the list.