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H.B. 42






Chief Sponsor: Gordon E. Snow

Senate Sponsor: Kevin T. VanTassell

             8      LONG TITLE
             9      Committee Note:
             10          The Public Utilities and Technology Interim Committee recommended this bill.
             11      General Description:
             12          This bill amends a provision relating to the extension of a water right application.
             13      Highlighted Provisions:
             14          This bill:
             15          .    allows the state engineer to approve an extension of time beyond 50 years for a
             16      wholesale electrical cooperative to put its water right to beneficial use; and
             17          .    makes technical changes.
             18      Monies Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          73-3-12, as last amended by Laws of Utah 2007, Chapter 136
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 73-3-12 is amended to read:

             28           73-3-12. Time limit on construction and application to beneficial use --
             29      Extensions -- Procedures and criteria.
             30          (1) As used in this section[, "public]:
             31          (a) "Public agency" means:
             32          [(a)] (i) a public water supply agency of the state or a political subdivision of the state;
             33      or
             34          [(b)] (ii) the Bureau of Reclamation.
             35          (b) "Wholesale electrical cooperative" is as defined in Section 54-2-1 .
             36          (2) (a) [The construction of] An applicant shall construct the works and [the
             37      application of] apply the water to beneficial use [shall be diligently prosecuted to completion]
             38      within the time fixed by the state engineer.
             39          (b) [Extensions] Except as provided by Subsection (2)(c), the state engineer may grant
             40      an extension of time, not exceeding 50 years from the application's approval date [of approval
             41      of the application, except as provided in Subsection (2)(c), may be granted by the state engineer
             42      on proper showing of], if the applicant shows diligence or a reasonable cause for delay.
             43          (c) [Additional extensions] The state engineer may grant an extension of time, beyond
             44      50 years, [may be granted by the state engineer on applications] on an application held by [any]
             45      a public agency[,] or a wholesale electrical cooperative if the public agency [can demonstrate]
             46      or wholesale electrical cooperative shows that the water will be needed to meet the reasonable
             47      future water or electricity requirements of the public.
             48          (d) [All requests] An applicant shall file a request for an extension of time [shall be
             49      filed in] with the office of the state engineer on or before the date fixed for filing proof of
             50      appropriation.
             51          (e) [Extensions] The state engineer may grant an extension of time:
             52          (i) not exceeding 14 years after the approval date [of approval may be granted by the
             53      state engineer] upon a sufficient showing[, but extensions]; and
             54          (ii) beyond 14 years [shall be granted only] after application and publication of notice.
             55          (f) (i) The state engineer shall publish a notice of the application once a week for two
             56      successive weeks, in a newspaper of general circulation, in the county in which the [source of
             57      the] water supply source is located and where the water is to be used.
             58          (ii) The notice shall:

             59          (A) state that an application has been made; and
             60          (B) specify where the interested party may obtain additional information relating to the
             61      application.
             62          (g) Any person who owns a water right or holds an application from the source of
             63      supply referred to in Subsection (2)(f) [or holds an application from that source of supply] may
             64      file a protest with the state engineer:
             65          (i) within 20 days after the notice is published, if the adjudicative proceeding is
             66      informal; and
             67          (ii) within 30 days after the notice is published, if the adjudicative proceeding is
             68      formal.
             69          (h) In considering an application to extend the time in which to place water to
             70      beneficial use under an approved application, the state engineer shall deny the extension of
             71      time and declare the application lapsed, unless the applicant affirmatively shows that the
             72      applicant has exercised or is exercising reasonable and due diligence in working toward
             73      completion of the appropriation.
             74          (i) (i) If reasonable and due diligence is shown by the applicant, the state engineer shall
             75      approve the extension of time.
             76          (ii) The approved extension of time is effective so long as the applicant continues to
             77      exercise reasonable diligence in completing the appropriation.
             78          (j) (i) The state engineer shall consider the holding of an approved application by [any]
             79      a public agency or a wholesale electrical cooperative to meet the reasonable future water or
             80      electricity requirements of the public to be reasonable and due diligence within the meaning of
             81      this section for the first 50 years.
             82          (ii) The state engineer may approve [extensions] an extension of time beyond 50 years
             83      for a public agency or a wholesale electrical cooperative, if the public agency or wholesale
             84      electrical cooperative provides information [sufficient to demonstrate] that shows the water
             85      will be needed to meet the reasonable future water or electricity requirements of the public.
             86          (k) If the state engineer finds unjustified delay or lack of diligence in prosecuting the
             87      works to completion, the state engineer may:
             88          (i) deny the extension of time; or [may]
             89          (ii) grant the request in part or upon conditions, including a reduction of the priority of

             90      all or part of the application.
             91          (3) (a) Except as provided [in] by Subsections (3)(b) and (c), an application upon
             92      which proof has not been submitted shall lapse and have no further force or effect after the
             93      expiration of 50 years from the date of its approval.
             94          (b) If the works are constructed with which to make beneficial use of the water applied
             95      for, the state engineer may, upon showing of that fact, grant additional time beyond the 50-year
             96      period in which to make proof.
             97          (c) An application held by a public agency or a wholesale electrical cooperative to meet
             98      the reasonable future water or electricity requirements of the public, for which proof of
             99      appropriation has not been submitted, shall lapse, unless extended as provided in Subsection
             100      (2)(j).

Legislative Review Note
    as of 11-14-07 12:49 PM

Office of Legislative Research and General Counsel

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