Agency: Natural Resources

Line Item: Water Rights

Function

Directed by the State Engineer, the division is responsible for the administration and management of the State's water resources (click on the link http://naturalresources.utah.gov/divisions/water-rights.html to go to the website). The division's primary workload is the processing of water right applications while managing the existing water rights' records, regulating the diversion and use of water, and preparing proposed determinations for water right adjudications. It also oversees dam safety, stream channel alterations and water well drilling. The Division of Water Rights is the only division in the Department of Natural Resources that does not have a board.

Statutory Authority

The following laws govern operations of the Division:

• UCA 73-1-1 states that all waters in the state are public property, with all rights to use them subject to beneficial use.
• UCA 73-1-4 requires waters not put to beneficial use to be subject to having the rights forfeited under certain circumstances.
• UCA 73-1-10 states that water rights are considered real property, though the water itself is not. Water rights are transferred by deed recorded in the county where the water is diverted and used. Water users submit a Report of Water Right Conveyance to the state engineer from which water right records are updated.
• UCA 73-2-1 establishes the position of state engineer and makes him/her responsible for the general administrative supervision of the waters of the state.
• UCA 73-2-14 requires the state engineer to charge fees for various applications and permits. Fees must be kept as dedicated credits and used for advertising the changes applied for, processing applications, and hiring employees to assist with processing.
• UCA 73-2-25 sets forth the state engineer's enforcement powers.
• UCA 73-3 sets forth the process to acquire the right to use unappropriated public waters or change their use as an application to the state engineer. Water must be used for a beneficial purpose to process the application. The doctrine of 'first in time, first in rights' is stated.
• UCA 73-3a-104 gives the state engineer power to make rules relating to exporting water out of state.
• UCA 73-3-25 grants authority to regulate and license water well drillers.
• UCA 73-3-29 requires a written approval from the state engineer for any relocation of a natural stream channel.
• UCA 73-4 sets forth the procedure for judicial determination of water rights and state engineer responsibilities in connection with that process.
• UCA 73-5a-106 requires dams to be classified according to hazard and use.
• UCA 73-5a-501 requires the state engineer to inspect hazard dams in increments commensurate with the relative risk, but not less than once every five years.
• UCA 73-5a-503 requires the state engineer, after a dam inspection, to specify the necessary maintenance for the dam. The owner is responsible for the maintenance.

Intent Language

Under the terms of 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided for Water Rights in Item 185, Chapter 2, Laws of Utah 2010, shall not lapse at the end of FY 2011. Expenditures of these funds are limited to: Equipment/Supplies $75,000; Special Projects/Studies $275,000.

The Legislature intends that the Department of Natural Resources study water rights issues and report to the Natural Resources, Agriculture, and Environment Interim Committee on or before their October 2011 meeting.

Funding Detail

As a regulatory agency, most of the funding for the Division comes from the General Fund. The Division also receives funding from other sources, as follows:

• UCA 59-12-103(5) requires that $175,000 (1% of the $17.5 million on the 1/16% sales tax earmarked for water projects) be used as Dedicated Credit for water rights adjudication.
• UCA 73-2-14 allows the State Engineer to use fees collected from water right applications as Dedicated Credits to fund the costs of processing applications.
• UCA 59-12-103(5) (f) and (g) transfers 6% of the amount of sales tax exceeding the $17.5 million (after the distribution of $500,000 to DNR for watershed and $150,000 to Water Resources for cloudseeding) as Dedicated Credits to the Division of Water Rights. The funding is to cover the costs incurred for employing additional technical staff for the administration of water rights. The unexpended Dedicated Credits exceeding $150,000 lapse to the Water Resources Conservation and Development Fund created in Section 73-10-24.
• UCA 73-5-1 establishes a Water Commissioners Fund and directs the State Engineer to fix a schedule of costs of distribution to be borne pro rata by water users. Water user payments are deposited into the fund and expenses of distribution (primarily commissioner salaries), are paid from the fund. The division manages the fund as collection agent and processes payments. Neither the fund nor the commissioners are included in this analysis or the appropriations act.

Program: Administration

Function

The State Engineer is the Director of the division and is responsible for management of all activities within the division. The State Engineer acts in a quasi-judicial capacity. Any decision of the State Engineer may be challenged in court. Included among the responsibilities of this section are setting policy, budget and accounting, personnel issues, public information, and overall office management.

Funding Detail

Program: Applications and Records

Function

The Applications and Records program's major responsibility is to ensure the viability of the water appropriation process. The program allocates and regulates surface and ground water throughout the state. Un-appropriated water may be allocated, and existing water rights may be transferred. The section processes all applications, which includes receipt, advertising, protests, hearings, and approval or rejection of the applications. This program also processes proof of beneficial use and issues the certificates of beneficial use. All water right files are of public record and are maintained on file and are accessible on the division's web site.

Performance

For several years the division has been working to reduce a significant application backlog that has existed for years. In addition to processing applications currently being filed, the division is focusing to resolve issues with the remaining difficult backlogged applications. The downturn in the economy has resulted in fewer applications being filed. This resulted in less application actions during the last fiscal year.

Applications have been classified into four different groups. The graph below shows the measure for groups 1 and 2, which are small domestic type applications not protested.

Funding Detail

Program: Dam Safety

Function

In 1977 there were several major dam failures in the United States. The Corps of Engineers was mandated by Congress to inventory all dams in the nation and inspect dams that, if they failed, would cause significant loss of property and lives. The State of Utah did its own inventory under contract with the Corps. After the contract ended, the Legislature authorized four FTEs and the Dam Safety program was begun.

The program addresses the safety of dams by regulating their construction, repair and long-term maintenance. Plans and specifications are approved, and some 350-400 high-and-moderate-hazard dams are inspected regularly. This section, in cooperation with the Corps of Engineers, also handles stream channel alteration and gold dredging permits.

Funding Detail

Program: Field Services

Function

This section covers the following major functions: Distribution, Adjudication and Well Drilling.

Distribution

In conjunction with the local water users: the division operates about 45 water distribution systems in the state. Water Commissioners are selected for each system and under the direction of the State Engineer. They are responsible to regulate the diversions and record the quantity of water used. These systems are created and organized, either through a court order or by the State Engineer. Distribution systems are funded through assessments to water users. The division handles the accounts payable, payroll, and other accounting functions for the systems.

Adjudication

An adjudication of water rights is an action in a district court to determine the water rights on the source or in the area involved in the action. The State Engineer has the statutory responsibility to prepare a proposed determination of water rights (PDET), which serves as the basis for the court's decree. As part of this effort, a thorough search is made of the division's records and the county recorder and clerk offices to identify water rights in the area. Hydrographic surveys and field investigations are completed to verify sources of water, points of diversion, and nature of water use, and any surrendered water rights. An evaluation is made of the water right based on the current use of water or the use of water within the recent past (seven years). This programs works with the Attorney General's Office, and the division pays the salary for 2 attorneys who deal with just adjudication matters.

Well Drilling

The Division licenses about 150 well drillers and 150 registered operators each year and oversees their work activities.

Funding Detail

Program: Cooperative Studies

Function

The purpose of the Cooperative Studies program is to perform studies to better define the water resources of the state considering both water quality and quantity. Water measurements are taken to determine stream flow and reservoir levels and are used to distribute water. Also, in conjunction with the United States Geological Survey (USGS), data is gathered and technical information is published. There are matching funds from the USGS for this program. This data and information is used extensively in the evaluation of whether a water right application should be granted.

Funding Detail

Pass-through expenditures go to the U.S. Geological Survey, Utah Geological Survey and universities.

Program: Technical Services

Function

The Technical Services program conducts water resource studies for both surface and ground water sources to adequately define the extent and character of the resource and to develop management policies and plans. It also coordinates the division's databases and computer operations.

Funding Detail

Program: Advertising

Function

Applications to appropriate or change the use of water, and related water right actions, must be advertised once per week for two weeks in a local newspaper to give notice to neighboring water users. Advertising costs are paid by fees charged to applicants. This program accounted for the advertising expenditures until the end of FY 2010. Since FY 2011, the division is accounting for its advertising costs in the Applications and Records Program.

Funding Detail

Program: Regional Offices

Function

For the convenience of its clients and to reduce travel costs, the division operates seven regional offices in six locations. Two (Utah Lake and Weber River areas) are housed in Salt Lake City. Outlying offices of approximately five people each are located in Logan, Price, Richfield, Vernal and Cedar City. Each regional office offers the same services available to customers as the Salt Lake City main office, performing field work, including adjudication and processing tasks for their assigned geographical area, associated with programs administered by the division.

Funding Detail