Current through Register Vol. 47, No. 17, September 10, 2024
A.
To apply to deposit water into the water bank, a prospective depositor must pay
any transaction fees required by the water bank and must provide the following
information to the water bank operator:
1.
Written agreement that the owner or operator of any non-federal reservoirs from
which the water will be released for use in the Water Bank has approved such
use of the water and will properly account for the water in the reservoir, and
cooperate in regulating its delivery.
2. When the transaction of water in the water
bank requires the use of federal facilities other than John Martin Reservoir,
the water bank operator or one or both of the parties will be required to have
a storage and/or exchange contract with the United States.
3. Proof of ownership, lease or contract that
includes the right to use and control the disposition of the water.
4. The amount of legally stored water that
will be deposited into the water bank.
5. A description of the point of diversion,
place of storage and historic place of use of the water. Sufficient
descriptions may include maps, legal descriptions, and/or aerial photographs.
6. If the subject water
historically has been used for irrigation, a description of the proposed use of
the historically irrigated land, including proposed sources of irrigation water
and methods of irrigating the land, if any. Such description must establish
that no expansion of water use shall result from the deposit of the subject
water into the bank.
7. Unless
utilizing the factors provided in Rule 10 herein, an estimate of the available
historic consumptive use and return flows, and documentation of how that
estimate was derived, prepared by a registered professional engineer with a
minimum of five years of experience in the field of water resources
engineering.
8. Anticipated terms
that may apply to the lease, loan, option or exchange of the water, including,
but not limited to:
a. Applicable time
frames, parameters and/or limitations for and on use of the water.
b. The minimum price the depositor will
accept for the water.
c. The amount
of stored water the depositor is willing to lease, loan, option or
exchange.
9. Contact
information, including name, address, phone number and email address (if
available).
10. The information set
forth in 6(A)1 through 9 above is also required to proceed under the expedited
procedures set forth in Rule 9.
11.
Any other relevant information requested by the water bank.
B. Based upon its review of the
above information, the water bank, in consultation with the Division Engineer,
shall determine whether the stored water is eligible for deposit in the bank.
If the water bank determines that the water is not eligible, it shall notify
the prospective depositor to address any impediments to the water's
eligibility.
C. A "suggested
minimum asking price" shall be determined by the Water Bank Operator based on
relevant sales or leases of water within the basin. The "suggested minimum
asking price" shall be included by the water bank operator as a term and
condition of eligibility.
D. Upon
determination that a prospective depositor's stored water is eligible for
deposit into the water bank, the water bank and the depositor shall negotiate
and enter into a deposit agreement. The terms of the deposit agreement shall
include, but not be limited to:
1.
Authorization of the water bank by the depositor to advertise and market the
water placed into the deposit account.
2. The depositor's agreement that the water
bank shall have the exclusive right to market, lease, loan, option or exchange
the deposited water on behalf of the depositor for the term of the deposit
agreement, and that the depositor shall not independently market, lease, loan,
option or exchange the deposited water during the time that the deposit
agreement is in effect.
3. A
provision that the depositor may remove the deposited water from the water bank
for the depositor's own use or for permanent sale by the depositor at any time
prior to an actual water bank transaction in which control of all or a portion
of the deposited water is transferred pursuant to terms of the deposit
agreement. Such removal may be subject to early withdrawal penalties.
4. A provision addressing procedures to be
followed upon a breach of the deposit agreement by either party. The terms of
the deposit agreement may include early withdrawal penalties.
5. Any other terms not listed herein deemed
necessary by the water bank operator and the depositor to facilitate water bank
transactions pursuant to Article 80.5, Title 37, C.R.S. and these
rules.
