Utah Water Marketing: Challenges and Solutions

1. 2006 Utah Water User’s Workshop Water Rights Issues Jerry Olds State Engineer

2. Objectives • Water Marketing • Municipal Water Rights • Water Issues Task Force • Update of the Division

3. Population Growth & Water • Current Population 2.5 Million • Estimated Population 2020, 3.5 Million 2050, 5.4 Million • Estimated Water Conversion 2020 – 125,000 AF 2050 – 324,000 AF

4. Population Projections • 96% Increase Box Elder, Cache, Davis, Iron, Morgan, Salt Lake, Summit, Tooele, Utah, Wasatch, Washington & Weber • Fastest Growing - % Washington, Morgan & Summit

5. State Engineer’s Water Appropriation Policy

6. Water Marketing In Utah

7. 73-1-1. Waters declared property of public. All waters in this state, whether above or under the ground are hereby declared to be the property of the public, subject to all existing rights to the use thereof.

8. “The state regulates the use of water as trustee for the benefit of the people. Public ownership is founded on the principle that water, a scarce and essential resource in this area of the country, is indispensable to the welfare of all the people; and the state must therefore assume the responsibility of allocating the use of water for the benefit and welfare of all the people of the state as a whole.” J. J. P. N. Co. v. State 655 P.2d 1133 (Utah 1982)

9. 73-3-8:It shall be the duty of the state engineer to approve an application if: (a) there is unappropriated water in the proposed source; …. and (e) the application was filed in good faith and not for purposes of speculation or monopoly.

10. What is the standard or criteria to determine speculation? Speculation – An investment involving risk with hope of large profit. To buy or sell in expectation of profiting from market fluctuations.

11. Conversion of Ag Land to Residential  Want the water transferred  Market system

12. The Future of Water Marketing • Population will double by 2050 • Conversion of Irrigation Water to M&I 324,000 Acre-Feet • Water Bank (Public or Private?) • Water Brokers

13. Basic Definition • Beneficial use shall be the basis, the measure, and the limit of all rights to the use of water in the state (73-1-3).

14. Could water uses practices change over time? What water uses are covered by a municipal water rights? Are municipal water rights subject to forfeiture? Identify each house or business supplied water? Domestic, commercial, industrial, irrigation, stockwatering, etc

15. Who Can HoldMunicipal Water Rights? • State of Utah (Agency) • Political Subdivision of the State (Cities, Towns & Special Districts) • US Bureau of Reclamation

16. Challenges Faced bythe Public Water Systems • New subdivisions / Building permits • Financing new water develop • Permitting requirements • Acquiring additional water rights • Protecting the City’s existing water rights • System failure - Flexibility

17. Case Study - Water Use & Water Rights

19. Water Rights Summary • Year-round, CFS only, Certificated for Mun Use • 50-123 Canyon Spring 4.0 CFS • 50-456 City Hall Well 4.2 CFS • 50-789 Fire House Well 5.0 CFS • 50-1002 Golf Course Well 4.8 CFS • 50-1750 Aspen Lane Well 3.5 CFSTotal 21.5 CFS15,565 AF

20. Monthly Volume By Flow

21. Proof of Beneficial Use • Need to develop the water source and place to water to full beneficial use • Proof of Beneficial Use is not a showing of the pump or pipeline capacity • Verify both the flow and volume • Take into account all water rights • Segregate & file extension • Objective – Define demand & allow proper mgt.

22. MANAGEMENT OF UTAH’S GROUND-WATER RESOURCES

23. Legislative WaterIssues Task Force • Created during 2004 Session • Made up of 5 Senators & 8 Representatives • 2004 – Water Rights Enforcement • 2005 – Water Reuse, Water Financing, Ground-Water Management • Leadership – Rep Dave Ure (Kamas) Rep Mike Styler (Delta) Senator Peter Knudson (Brigham City) • WATER COMMUNITY!

24. HB 228 Ground-Water Management Plan Definitions (1) As used in this section:      (a) "Critical management area" means a groundwater basin in which the groundwater withdrawals consistently exceed the safe yield. (b) "Safe yield" means the amount of groundwater that can be withdrawn from a groundwater basin over a period of time without exceeding the long-term recharge of the basin or unreasonably affecting the basin's physical and chemical integrity.

25. HB 228 Ground-Water Management Plan • Regulate Ground Water – Adopt Plan • Plan based on the principles of prior appropriation • Limit withdrawals - SAFE YIELD • In Critical Mgt Area Economic & other impacts Gradual implement safe yield limits • Public notice & involvement • MAJOR STEP FORWARD

26. HB 38 – Water Reuse • Reuse Project Municipal water rights Consistent - underlying water right • Reuse authorization contract Parties to the contract The contract provisions Submitted w/ application • State engineer application process

27. Water Issues Task Force - 2006 • HB 357 - Proposes to review Instream Flow Water Conservation Water financing and Any other issue that affects the state's development or management of water. • Get Involved

28. Update Division of Water Rights • Staff Changes Retirements Kerry Carpenter – Enforcement Marc Stilson – SE Regional Engineer • Applications and Records Section Change Appl. vs Appl. to Appropriate John Solum & Jared Manning WATER RIGHT APPLICATIONS Proofs & Certificates

29. Update Division of Water Rights (cont’d) • Adjudication Team PD Book 4, Area 29 (Lower Bear River) • Plans for 2006-07 Bear River Ashley Valley Castle Valley Tooele Valley • Real-Time Water Distribution • Ground-Water Management

30. “Water is the brush that has shaped the unique and varied landscape of Utah and influenced the settlement and lifestyle of the people who have inhabited its boundaries” And Water Is The Resource That Will Shape Our Future! Thank You QUESTIONS?