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Second Substitute S.B. 85

Senator Dennis E. Stowell proposes the following substitute bill:


             1     
WATER RIGHTS BOARD

             2     
2008 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Dennis E. Stowell

             5     
House Sponsor: James R. Gowans

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill creates the Water Rights Board.
             10      Highlighted Provisions:
             11          This bill:
             12          .    creates a Water Rights Board as the policymaking board for the state engineer and
             13      the Division of Water Rights;
             14          .    authorizes the Water Rights Board to:
             15              .    set fees;
             16              .    make rules;
             17              .    appoint an administrative law judge to conduct an administrative review a final
             18      order of the state engineer;
             19              .    recommend to the governor the suspension or restoration of the appropriation of
             20      surplus water;
             21              .    recommend to the Legislature amendments to or enactments of water law; and
             22              .    submit nominations to the governor for the state engineer appointment;
             23          .    requires the governor to appoint the state engineer from names submitted by the
             24      Water Rights Board;
             25          .    authorizes an administrative law judge to review a final order of the state engineer;


             26          .    revokes the authority of the state engineer to:
             27              .    make rules;
             28              .    set fees;
             29              .    recommend to the governor the suspension or restoration of the appropriation of
             30      surplus water; and
             31              .    recommend to the Legislature amendments to or enactments of water law;
             32          .    revokes the authority of the Division of Water Rights to:
             33              .    set a bond amount; and
             34              .    make rules; and
             35          .    authorizes an aggrieved person to request administrative or judicial review of a final
             36      order of the state engineer.
             37      Monies Appropriated in this Bill:
             38          None
             39      Other Special Clauses:
             40          None
             41      Utah Code Sections Affected:
             42      AMENDS:
             43          73-1-10, as last amended by Laws of Utah 2003, Chapter 298
             44          73-2-1, as last amended by Laws of Utah 2007, Chapter 329
             45          73-2-1.5, as last amended by Laws of Utah 2005, Chapter 33
             46          73-2-10, as last amended by Laws of Utah 1983, Chapter 201
             47          73-2-14, as last amended by Laws of Utah 2007, Chapter 314
             48          73-2-25, as last amended by Laws of Utah 2007, Chapter 136
             49          73-2-26, as enacted by Laws of Utah 2005, Chapter 33
             50          73-3-5.6, as enacted by Laws of Utah 1995, Chapter 121
             51          73-3-14, as last amended by Laws of Utah 1987, Chapter 161
             52          73-3-16, as last amended by Laws of Utah 1998, Chapter 33
             53          73-3-23, Utah Code Annotated 1953
             54          73-3-25, as last amended by Laws of Utah 2004, Chapter 191
             55          73-3a-104, as enacted by Laws of Utah 1991, Chapter 234
             56          73-3b-104, as enacted by Laws of Utah 1991, Chapter 146


             57          73-3b-201, as last amended by Laws of Utah 1995, Chapter 28
             58          73-3b-204, as last amended by Laws of Utah 1995, Chapter 28
             59          73-3b-302, as last amended by Laws of Utah 1995, Chapter 28
             60          73-3c-302, as enacted by Laws of Utah 2006, Chapter 179
             61          73-5-13, as last amended by Laws of Utah 2001, Chapter 136
             62          73-5-15, as last amended by Laws of Utah 2007, Chapters 179 and 329
             63          73-5a-101, as enacted by Laws of Utah 1990, Chapter 319
             64          73-5a-105, as enacted by Laws of Utah 1990, Chapter 319
             65          73-5a-203, as enacted by Laws of Utah 1990, Chapter 319
             66          73-5a-304, as enacted by Laws of Utah 1990, Chapter 319
             67          73-5a-401, as enacted by Laws of Utah 1990, Chapter 319
             68          73-5a-403, as enacted by Laws of Utah 1990, Chapter 319
             69          73-5a-502, as last amended by Laws of Utah 1996, Chapter 264
             70          73-5a-602, as enacted by Laws of Utah 1990, Chapter 319
             71          73-6-1, Utah Code Annotated 1953
             72          73-6-2, Utah Code Annotated 1953
             73          73-22-5, as last amended by Laws of Utah 1987, Chapter 161
             74          73-22-6, as enacted by Laws of Utah 1981, Chapter 188
             75          73-22-10, as last amended by Laws of Utah 1987, Chapter 161
             76      ENACTS:
             77          73-2-29, Utah Code Annotated 1953
             78          73-2-30, Utah Code Annotated 1953
             79          73-2-31, Utah Code Annotated 1953
             80     
             81      Be it enacted by the Legislature of the state of Utah:
             82          Section 1. Section 73-1-10 is amended to read:
             83           73-1-10. Conveyance of water rights -- Deed -- Exceptions -- Filing and recording
             84      of deed -- Report of water right conveyance.
             85          (1) (a) A water right, whether evidenced by a decree, a certificate of appropriation, a
             86      diligence claim to the use of surface or underground water, or a water user's claim filed in
             87      general determination proceedings, shall be transferred by deed in substantially the same


             88      manner as is real estate.
             89          (b) The deed must be recorded in the office of the recorder of the county where the
             90      point of diversion of the water is located and in the county where the water is used.
             91          (c) A recorded deed of a water right shall from the time of its recording in the office of
             92      the county recorder constitute notice of its contents to all persons.
             93          (2) The right to the use of water evidenced by shares of stock in a corporation shall be
             94      transferred in accordance with the procedures applicable to securities set forth in Title 70A,
             95      Chapter 8, Uniform Commercial Code - Investment Securities.
             96          (3) (a) To update water right ownership on the records of the state engineer, a water
             97      right owner shall submit a report of water right conveyance to the state engineer.
             98          (b) The report of water right conveyance shall be on forms provided by the state
             99      engineer.
             100          (c) The report shall be prepared by:
             101          (i) or prepared under the direction of and certified by, any of the following persons
             102      licensed in Utah:
             103          (A) an attorney;
             104          (B) a professional engineer;
             105          (C) a title insurance producer; or
             106          (D) a professional land surveyor; or
             107          (ii) the water right owner as authorized by rule of the [state engineer] Water Rights
             108      Board.
             109          (d) The filing and processing of a report of water right conveyance with the state
             110      engineer is neither an adjudication of water right ownership nor an opinion as to title or validity
             111      of the water right.
             112          (e) The [state engineer] Water Rights Board shall adopt rules that specify:
             113          (i) the information required in a report of water right conveyance; and
             114          (ii) the procedures for processing the reports.
             115          Section 2. Section 73-2-1 is amended to read:
             116           73-2-1. State engineer -- Term -- Powers and duties -- Qualification for duties.
             117          (1) There shall be a state engineer.
             118          (2) (a) The state engineer shall:


             119          [(a)] (i) be appointed by the governor with the consent of the Senate;
             120          [(b)] (ii) hold office for the term of four years and until a successor is appointed; and
             121          [(c)] (iii) have five years experience as a practical engineer or the theoretical
             122      knowledge, practical experience, and skill necessary for the position.
             123          (b) The governor shall appoint the state engineer from a list of nominees submitted by
             124      the Water Rights Board.
             125          (3) (a) The state engineer shall be responsible for the general administrative
             126      supervision of the waters of the state and the measurement, appropriation, apportionment, and
             127      distribution of those waters.
             128          (b) The state engineer may secure the equitable apportionment and distribution of the
             129      water according to the respective rights of appropriators.
             130          [(4) The state engineer shall make rules, in accordance with Title 63, Chapter 46a,
             131      Utah Administrative Rulemaking Act, consistent with the purposes and provisions of this title,
             132      regarding:]
             133          [(a) reports of water right conveyances;]
             134          [(b) the construction of water wells and the licensing of water well drillers;]
             135          [(c) dam construction and safety;]
             136          [(d) the alteration of natural streams;]
             137          [(e) sewage effluent reuse;]
             138          [(f) geothermal resource conservation; and]
             139          [(g) enforcement orders and the imposition of fines and penalties.]
             140          [(5) The state engineer may make rules, in accordance with Title 63, Chapter 46a, Utah
             141      Administrative Rulemaking Act, consistent with the purposes and provisions of this title,
             142      governing:]
             143          [(a) water distribution systems and water commissioners;]
             144          [(b) water measurement and reporting;]
             145          [(c) ground-water recharge and recovery;]
             146          [(d) the determination of water rights; and]
             147          [(e) the form and content of applications and related documents, maps, and reports.]
             148          [(6)] (4) The state engineer may bring suit in courts of competent jurisdiction to:
             149          (a) enjoin the unlawful appropriation, diversion, and use of surface and underground


             150      water without first seeking redress through the administrative process;
             151          (b) prevent theft, waste, loss, or pollution of those waters;
             152          (c) enable him to carry out the duties of his office; and
             153          (d) enforce administrative orders and collect fines and penalties.
             154          [(7)] (5) The state engineer may:
             155          (a) upon request from the board of trustees of an irrigation district under Title 17B,
             156      Chapter 2a, Part 5, Irrigation District Act, or another local district under Title 17B, Limited
             157      Purpose Local Government Entities - Local Districts, or a special service district under Title
             158      17A, Chapter 2, Part 13, Utah Special Service District Act, that operates an irrigation water
             159      system, cause a water survey to be made of all lands proposed to be annexed to the district in
             160      order to determine and allot the maximum amount of water that could be beneficially used on
             161      the land, with a separate survey and allotment being made for each 40-acre or smaller tract in
             162      separate ownership; and
             163          (b) upon completion of the survey and allotment under Subsection [(7)] (5)(a), file with
             164      the district board a return of the survey and report of the allotment.
             165          [(8)] (6) (a) The state engineer may establish water distribution systems and define
             166      their boundaries.
             167          (b) The water distribution systems shall be formed in a manner that:
             168          (i) secures the best protection to the water claimants; and
             169          (ii) is the most economical for the state to supervise.
             170          Section 3. Section 73-2-1.5 is amended to read:
             171           73-2-1.5. Procedures -- Adjudicative proceedings.
             172          Except as provided in Sections 63-46b-1 and 73-2-25 , the Water Rights Board, the state
             173      engineer, and the Division of Water Rights shall comply with the procedures and requirements
             174      of Title 63, Chapter 46b, Administrative Procedures Act, in their adjudicative proceedings.
             175          Section 4. Section 73-2-10 is amended to read:
             176           73-2-10. Knowledge of waterways and irrigation -- Suggestions as to amendment
             177      or enactment of laws.
             178          (1) The state engineer shall become conversant with the waterways of the state and its
             179      needs as to irrigation matters[; and he shall make such suggestions as to the amendment of].
             180          (2) The Water Rights Board shall suggest an amendment to existing laws or the


             181      enactment of new laws [as his information and experience shall suggest].
             182          Section 5. Section 73-2-14 is amended to read:
             183           73-2-14. Fees -- Deposited as a dedicated credit.
             184          (1) The [state engineer] Water Rights Board shall charge fees pursuant to Section
             185      63-38-3.2 for the following:
             186          (a) applications to appropriate water;
             187          (b) applications to temporarily appropriate water;
             188          (c) applications for permanent or temporary change;
             189          (d) applications for exchange;
             190          (e) applications for an extension of time in which to resume use of water;
             191          (f) applications to appropriate water, or make a permanent or temporary change, for use
             192      outside the state filed pursuant to Title 73, Chapter 3a, Water Exports;
             193          (g) groundwater recovery permits;
             194          (h) diligence claims for surface or underground water filed pursuant to Section
             195      73-5-13 ;
             196          (i) republication of notice to water users after amendment of application where
             197      required by this title;
             198          (j) applications to segregate;
             199          (k) requests for an extension of time in which to submit proof of appropriation not to
             200      exceed 14 years after the date of approval of the application;
             201          (l) requests for an extension of time in which to submit proof of appropriation 14 years
             202      or more after the date of approval of the application;
             203          (m) groundwater recharge permits;
             204          (n) applications for a well driller's license, annual renewal of a well driller's license,
             205      and late annual renewal of a well driller's license;
             206          (o) certification of copies;
             207          (p) preparing copies of documents; and
             208          (q) reports of water right conveyance.
             209          (2) (a) Fees for the services specified in Subsections (1)(a) through (i) shall be based
             210      upon the rate of flow or volume of water.
             211          (b) If it is proposed to appropriate by both direct flow and storage, the fee shall be


             212      based upon either the rate of flow or annual volume of water stored, whichever fee is greater.
             213          (3) Fees collected under this section:
             214          (a) shall be deposited in the General Fund as a dedicated credit to be used by the
             215      Division of Water Rights; and
             216          (b) may only be used by the Division of Water Rights to:
             217          (i) meet the publication of notice requirements under this title; and
             218          (ii) process reports of water right conveyance.
             219          Section 6. Section 73-2-25 is amended to read:
             220           73-2-25. State engineer enforcement powers.
             221          (1) For purposes of this section, "initial order" means one of the following issued by
             222      the state engineer:
             223          (a) a notice of violation; or
             224          (b) a cease and desist order.
             225          (2) (a) The state engineer may commence an enforcement action under this section if
             226      the state engineer finds that a person:
             227          (i) is diverting, impounding, or using water for which no water right has been
             228      established;
             229          (ii) is diverting, impounding, or using water in violation of an existing water right;
             230          (iii) violates Section 73-5-4 ;
             231          (iv) violates Section 73-5-9 ;
             232          (v) violates a written distribution order from the state engineer;
             233          (vi) violates an order issued under Section 73-3-29 regarding the alteration of the bed
             234      or bank of a natural stream channel; or
             235          (vii) violates a notice or order regarding dam safety issued under Chapter 5a, Dam
             236      Safety.
             237          (b) To commence an enforcement action under this section, the state engineer shall
             238      issue an initial order, which shall include:
             239          (i) a description of the violation;
             240          (ii) notice of any penalties to which a person may be subject under Section 73-2-26 ;
             241      and
             242          (iii) notice that the state engineer may treat each day's violation of the provisions listed


             243      in Subsection (2)(a) as a separate violation under Subsection 73-2-26 (1)(d).
             244          (c) The state engineer's issuance and enforcement of an initial order is exempt from
             245      Title 63, Chapter 46b, Administrative Procedures Act.
             246          (3) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             247      [state engineer] the Water Rights Board shall make rules necessary to enforce an initial order,
             248      which shall include:
             249          (a) provisions consistent with this section and Section 73-2-26 for enforcement of the
             250      initial order if a person to whom an initial order is issued fails to respond to the order or abate
             251      the violation;
             252          (b) the right to a hearing, upon request by a person against whom an initial order is
             253      issued; and
             254          (c) provisions for timely issuance of a final order after:
             255          (i) the person to whom the initial order is issued fails to respond to the order or abate
             256      the violation; or
             257          (ii) a hearing held under Subsection (3)(b).
             258          (4) A person may not intervene in an enforcement action commenced under this
             259      section.
             260          (5) After issuance of a final order under rules made pursuant to Subsection (3)(c), the
             261      state engineer shall serve a copy of the final order on the person against whom the order is
             262      issued by:
             263          (a) personal service under Utah Rules of Civil Procedure 5; or
             264          (b) certified mail.
             265          (6) (a) The state engineer's final order may be reviewed by:
             266          (i) the Water Rights Board as authorized by Section 73-2-31 ; or
             267          (ii) trial de novo by the district court in:
             268          [(i)] (A) Salt Lake County; or
             269          [(ii)] (B) the county where the violation occurred.
             270          (b) A person shall file a petition for administrative or judicial review of the state
             271      engineer's final order issued under this section within 20 days from the day on which the final
             272      order was served on that person.
             273          (7) The state engineer may bring suit in a court of competent jurisdiction to enforce a


             274      final order issued under this section.
             275          (8) If the state engineer prevails in an action brought under Subsection (6)(b) or (7), the
             276      state may recover all court costs and a reasonable attorney fee.
             277          Section 7. Section 73-2-26 is amended to read:
             278           73-2-26. Administrative penalties.
             279          (1) (a) As part of a final order issued under Section 73-2-25 , the state engineer may
             280      order that a person to whom an order is issued:
             281          (i) pay an administrative fine not to exceed:
             282          (A) $5,000 for each knowing violation; or
             283          (B) $1,000 for each violation that is not knowing;
             284          (ii) replace up to 200% of water taken; and
             285          (iii) be liable for any expense incurred by the state engineer or division in investigating
             286      and stopping the violation.
             287          (b) The definition of "knowingly" under Subsection 76-2-103 (2) shall apply to
             288      determinations under Subsection (1)(a)(i).
             289          (c) The penalties described in Subsection (1)(a) shall be in addition to:
             290          (i) any criminal penalty established for a violation described in Subsection (1); and
             291          (ii) any private right of action.
             292          (d) (i) Each day of a continuing violation of the provisions described in Subsection
             293      73-2-25 (2)(a) or an initial or final order issued under Section 73-2-25 is a separate violation.
             294          (ii) A penalty may not be imposed for a violation of the provisions listed in Subsection
             295      73-2-25 (2)(a) or an initial or a final order issued under Section 73-2-25 for a violation
             296      occurring more than 12 months before the day on which a notice of violation is issued.
             297          (e) Separate violations under Subsection (1)(d) may be consolidated for resolution in
             298      one enforcement proceeding under Section 73-2-25 .
             299          (f) The state engineer has discretion to pursue an administrative fine, order requiring
             300      replacement, or both.
             301          (2) Before imposing a fine or ordering replacement under Subsection (1), the state
             302      engineer shall consider:
             303          (a) the value or quantity of water unlawfully taken, including the cost or difficulty of
             304      replacing the water;


             305          (b) the gravity of the violation, including the economic injury or impact to others;
             306          (c) whether the person subject to fine or replacement attempted to comply with the
             307      state engineer's orders; and
             308          (d) the violator's economic benefit from the violation.
             309          (3) (a) The state engineer may require that the water unlawfully taken be replaced after:
             310          (i) a person fails to request administrative or judicial review of a final order issued
             311      under Section 73-2-25 ; or
             312          (ii) the completion of administrative or judicial review, including any appeals.
             313          (b) The state engineer's order shall require that replacement of water begin within one
             314      year of the day on which:
             315          (i) the time period for requesting administrative or judicial review of a final order
             316      issued under Section 73-2-25 expires without a person requesting administrative or judicial
             317      review of the final order; or
             318          (ii) the completion of administrative or judicial review, including any appeals.
             319          (4) Water replaced under Subsection (3) shall be taken from water that the person
             320      subject to the order requiring replacement would be entitled to use during the replacement
             321      period.
             322          (5) (a) If the state engineer issues an order requiring replacement, a copy of the order
             323      shall be placed in the Division of Water Rights' water rights records.
             324          (b) The order requiring replacement shall constitute a lien upon the water right affected
             325      if the state engineer files a notice of lien in the office of the county recorder in the county
             326      where the place of use of the water right is located.
             327          (c) A notice of lien under Subsection (5)(b) shall include a legal description of the
             328      place of use of the water right.
             329          (6) Any monies collected under this section shall be deposited into the General Fund.
             330          Section 8. Section 73-2-29 is enacted to read:
             331          73-2-29. Water Rights Board created.
             332          (1) As used in this section, "board" means the Water Rights Board.
             333          (2) There is created the Water Rights Board that is the policymaking board for the state
             334      engineer and the Division of Water Rights.
             335          (3) (a) The governor, with the consent of the Senate, shall appoint the following five


             336      members to the board:
             337          (i) one member who:
             338          (A) represents an agricultural or livestock interest;
             339          (B) owns a surface water right; and
             340          (C) is nominated by an organization that promotes agriculture;
             341          (ii) one member who:
             342          (A) represents an agricultural or livestock interest;
             343          (B) owns a groundwater right; and
             344          (C) is nominated by an organization that promotes agriculture;
             345          (iii) one member who:
             346          (A) represents a municipality; and
             347          (B) is nominated by an organization that promotes municipal interests;
             348          (iv) one member who:
             349          (A) represents a water conservancy district; and
             350          (B) is nominated by an organization that represents water conservancy districts; and
             351          (v) one member who:
             352          (A) represents a fish, wildlife, or recreational interest; and
             353          (B) is nominated by an organization that promotes the instream flow of water.
             354          (b) (i) At least one member appointed under Subsection (3)(a) shall be:
             355          (A) licensed to practice law in the state; and
             356          (b) knowledgeable about water law.
             357          (ii) No member appointed under Subsection (3)(a) may reside in the same county as
             358      another member.
             359          (c) (i) A nominating organization shall nominate at least three people.
             360          (ii) If the governor rejects all nominations submitted for a member, the nominating
             361      organization shall submit additional names.
             362          (d) If no organization submits a nomination, the governor shall appoint a member that
             363      represents the interest listed in Subsection (3)(a).
             364          (4) (a) Except as provided by Subsection (4)(b), a member shall serve a four year term.
             365          (b) The governor shall, at the time of appointment or reappointment, adjust the length
             366      of terms to ensure that the terms of no more than half of the members expire in a fiscal year.


             367          (c) When a vacancy occurs on the board for any reason, the governor shall appoint a
             368      replacement for the unexpired term with the consent of the Senate.
             369          (5) (a) A board member may not receive compensation or benefits for the member's
             370      services, but may receive per diem and expenses incurred in the performance of the member's
             371      official duties at the rates established by the Division of Finance under Sections 63A-3-106 and
             372      63A-3-107 .
             373          (b) A member may decline to receive per diem and expenses for the member's service.
             374          (6) (a) The board shall elect one of its members to serve as chair for a term of two
             375      years.
             376          (b) All members on the board have equal voting rights on a board matter when present
             377      at a board meeting.
             378          (c) Four board members is a quorum for conducting board business.
             379          (d) A majority vote of the quorum present is required for an action to be taken by the
             380      board.
             381          (7) The board shall meet at each of the Division of Water Rights' regional offices at
             382      least once a year, but may hold other meetings at times and places as scheduled by:
             383          (a) the chair; or
             384          (b) three members, upon filing a written request for a meeting with the chair.
             385          (8) The attorney general shall provide the Water Rights Board with:
             386          (a) legal advice; and
             387          (b) legal services in the prosecution or defense of an action resulting from the
             388      performance of the board's duties.
             389          (9) The Division of Water Rights shall provide necessary administrative and staff
             390      support services to the Water Rights Board.
             391          Section 9. Section 73-2-30 is enacted to read:
             392          73-2-30. Water Rights Board -- Powers -- Duties.
             393          (1) The Water Rights Board shall:
             394          (a) set policy consistent with this title for the state engineer and the Division of Water
             395      Rights by making rules in accordance with Title 63, Chapter 46a, Utah Administrative
             396      Rulemaking Act, and as provided in this title;
             397          (b) adopt a fee authorized by this title;


             398          (c) appoint an administrative law judge to review an order by the state engineer as
             399      provided by Section 73-2-31 ;
             400          (d) nominate at least three people for the appointment of the state engineer in
             401      accordance with Section 73-2-1 ; and
             402          (e) perform other duties assigned to the Water Rights Board in this title.
             403          (2) A rule made by the state engineer or the Division of Water Rights that is in effect
             404      on May 4, 2008 is considered a rule made by the board on May 5, 2008.
             405          Section 10. Section 73-2-31 is enacted to read:
             406          73-2-31. Administrative Review by the Water Rights Board.
             407          (1) A person aggrieved by a final order of the state engineer regarding a water right of
             408      50 acre-fee or less:
             409          (a) may seek administrative review of the order by the administrative law judge
             410      appointed by the Water Rights Board in accordance with Section 63-46b-12 ; and
             411          (b) is not required to seek an administrative review before seeking judicial review of
             412      the order in accordance with Title 63, Chapter 46b, Administrative Procedures Act.
             413          (2) (a) For purposes of Section 63-46b-12 , the administrative law judge is a superior
             414      agency that may review a final order of the state engineer.
             415          (b) After review of a state engineer's final order in accordance with Title 63, Chapter
             416      46b, Administrative Procedures Act, the administrative law judge may:
             417          (i) take no action;
             418          (ii) vacate or remand the order; or
             419          (iii) amend the order.
             420          (c) The administrative law judge shall sign a written final order on review as required
             421      by Section 63-46b-12 .
             422          (3) A person aggrieved by a final order of the administrative law judge may seek
             423      judicial review of the order in accordance with Title 63, Chapter 46b, Administrative
             424      Procedures Act.
             425          (4) An order by the state engineer is final 30 days after the day on which the order is
             426      issued unless stayed, amended, or overturned by:
             427          (a) the administrative law judge under Section 63-46b-12 ;
             428          (b) a district court under Section 63-46b-15 ; or


             429          (c) the Supreme Court under Section 63-46b-16 .
             430          Section 11. Section 73-3-5.6 is amended to read:
             431           73-3-5.6. Applications to appropriate or permanently change a small amount of
             432      water.
             433          (1) The state engineer may approve an application to appropriate or permanently
             434      change a small amount of water necessary to meet the requirements of one residence, 1/4 acre
             435      of irrigable land, and ten cattle or the equivalent amount of water for livestock purposes, if:
             436          (a) the state engineer undertakes a thorough investigation of the proposed appropriation
             437      or permanent change;
             438          (b) notice is provided in accordance with Subsection (2); and
             439          (c) the application complies with [the state engineer's]:
             440          (i) the Water Rights Board's regional policies and restrictions made by rule; and
             441          (ii) Section 73-3-3 or 73-3-8 , as applicable.
             442          (2) (a) Advertising of an application to appropriate or permanently change a small
             443      amount of water as specified in Subsection (1) shall be at the discretion of the state engineer.
             444          (b) If the state engineer finds that the uses proposed by the application may impair
             445      other rights, before approving the application, the state engineer shall give notice of the
             446      application according to Section 73-3-6 .
             447          (3) An applicant receiving approval under this section shall be responsible for the time
             448      limit of construction and submitting proof of appropriation or permanent change as required
             449      under this chapter.
             450          Section 12. Section 73-3-14 is amended to read:
             451           73-3-14. Judicial and administrative review.
             452          (1) (a) Any person aggrieved by an order of the state engineer may obtain:
             453          (i) administrative review by the Water Rights Board in accordance with Section
             454      73-2-31 ; or
             455          (ii) judicial review by following the procedures and requirements of Title 63, Chapter
             456      46b, Administrative Procedures Act.
             457          (b) Venue for judicial review of informal adjudicative proceedings shall be in the
             458      county in which the stream or water source, or some part of it, is located.
             459          (2) The state engineer shall be joined as a defendant in all suits to review [his] the state


             460      engineer's decisions, but no judgment for costs or expenses of the litigation may be rendered
             461      against [him] the state engineer.
             462          Section 13. Section 73-3-16 is amended to read:
             463           73-3-16. Proof of appropriation or permanent change -- Notice -- Manner of
             464      proof -- Statements -- Maps, profiles, and drawings -- Verification -- Waiver of filing --
             465      Statement in lieu of proof of appropriation or change.
             466          (1) Sixty days before the date set for the proof of appropriation or proof of change to be
             467      made, the state engineer shall notify the applicant by mail when proof of completion of the
             468      works and application of the water to a beneficial use will be due.
             469          (2) On or before the date set for completing the proof in accordance with the
             470      application, the applicant shall file proof with the state engineer on forms furnished by the state
             471      engineer.
             472          (3) Except as provided in Subsection (4), the applicant shall submit the following
             473      information:
             474          (a) a description of the works constructed;
             475          (b) the quantity of water in acre-feet or the flow in second-feet diverted, or both;
             476          (c) the method of applying the water to beneficial use; and
             477          (d) (i) detailed measurements of water put to beneficial use;
             478          (ii) the date the measurements were made; and
             479          (iii) the name of the person making the measurements.
             480          (4) (a) On applications filed for appropriation or permanent change of use of water to
             481      provide a water supply for state projects constructed pursuant to Title 73, Chapter 10, Board of
             482      Water Resources - Division of Water Resources, or for federal projects constructed by the
             483      United States Bureau of Reclamation for the use and benefit of the state, any of its agencies, its
             484      political subdivisions, public and quasi-municipal corporations, or water users' associations of
             485      which the state, its agencies, political subdivisions, or public and quasi-municipal corporations
             486      are stockholders, the proof shall include:
             487          (i) a statement indicating construction of the project works has been completed;
             488          (ii) a description of the major features with appropriate maps, profiles, drawings, and
             489      reservoir area-capacity curves;
             490          (iii) a description of the point or points of diversion and rediversion;


             491          (iv) project operation data;
             492          (v) a map showing the place of use of water and a statement of the purpose and method
             493      of use;
             494          (vi) the project plan for beneficial use of water under the applications and the quantity
             495      of water required; and
             496          (vii) a statement indicating what type of measuring devices have been installed.
             497          (b) The director of the Division of Water Resources shall sign proofs for the state
             498      projects and an authorized official of the Bureau of Reclamation shall sign proofs for the
             499      federal projects specified in Subsection (4)(a).
             500          (5) The proof on all applications shall be sworn to by the applicant or the applicant's
             501      appointed representative and proof engineer.
             502          (6) (a) Except as provided in Subsection (6)(b), when filing proof, the applicant shall
             503      submit maps, profiles, and drawings made by a Utah licensed land surveyor or Utah licensed
             504      professional engineer that show:
             505          (i) the location of the completed works;
             506          (ii) the nature and extent of the completed works;
             507          (iii) the natural stream or source from which and the point where the water is diverted
             508      and, in the case of a nonconsumptive use, the point where the water is returned; and
             509          (iv) the place of use.
             510          (b) The state engineer may waive the filing of maps, profiles, and drawings if in the
             511      state engineer's opinion the written proof adequately describes the works and the nature and
             512      extent of beneficial use.
             513          (7) The completed proof shall conform to rules [and standards] established by the [state
             514      engineer] Water Rights Board.
             515          (8) In those areas in which general determination proceedings are pending, or have
             516      been concluded, under Title 73, Chapter 4, Determination of Water Rights, the state engineer
             517      may petition the district court for permission to:
             518          (a) waive the requirements of this section and Section 73-3-17 ; and
             519          (b) permit each owner of an application to file a verified statement to the effect that the
             520      applicant has completed the appropriation or change and elects to file a statement of water
             521      users claim in the proposed determination of water rights or any supplement to it in accordance


             522      with Title 73, Chapter 4, Determination of Water Rights, in lieu of proof of appropriation or
             523      proof of change.
             524          Section 14. Section 73-3-23 is amended to read:
             525           73-3-23. Replacement of water.
             526          (1) In all cases of appropriations of underground water the right of replacement is
             527      hereby granted to any junior appropriator whose appropriation may diminish the quantity or
             528      injuriously affect the quality of appropriated underground water in which the right to the use
             529      thereof has been established as provided by law.
             530          (2) No replacement may be made until application in writing has been made to and
             531      approved by the state engineer.
             532          (3) In all cases replacement shall be at the sole cost and expense of the applicant and
             533      subject to [such] rules [and regulations as the state engineer may prescribe] made by the Water
             534      Rights Board.
             535          (4) The right of eminent domain is hereby granted to any applicant for the purpose of
             536      replacement as provided herein.
             537          Section 15. Section 73-3-25 is amended to read:
             538           73-3-25. Well driller's license -- Bond -- Revocation or suspension for
             539      noncompliance.
             540          (1) (a) Every person that constructs a well in the state shall obtain a license from the
             541      state engineer.
             542          (b) [The state engineer] In accordance with Title 63, Chapter 46a, Utah Administrative
             543      Rulemaking Act, the Water Rights Board shall enact rules:
             544          (i) defining the form, the expiration date, and the renewal cycle of the application for a
             545      license[.]; and
             546          (ii) regulating well construction.
             547          (c) Well drillers' licenses are not transferable. [The state engineer shall enact rules for
             548      well construction according to the procedures and requirements of Title 63, Chapter 46a, Utah
             549      Administrative Rulemaking Act.]
             550          (2) (a) (i) A person who constructs a well in this state must first obtain a license as
             551      provided in this section.
             552          (ii) Before a well driller's license will be issued, the applicant must file a well driller


             553      bond with the state engineer.
             554          (iii) The bond shall be made payable to the Office of the State Engineer.
             555          (iv) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             556      the [state engineer] Water Rights Board may make rules to set the amount, form, and general
             557      administrative requirements of a well driller bond. Proper compliance with the provisions of
             558      this section and the rules enacted under the authority of this section are required to obtain or
             559      renew a license.
             560          (b) (i) Well drillers shall comply with the rules [enacted by the state engineer under
             561      this chapter] authorized by this section.
             562          (ii) If the state engineer determines, following an investigation, that the licensee has
             563      failed to comply with these rules, the state engineer may revoke or suspend the license, and
             564      exact the bond and deposit the money as a nonlapsing dedicated credit.
             565          (iii) The state engineer may expend the funds to investigate or correct any deficiencies
             566      which could adversely affect the public interest resulting from noncompliance with the rules
             567      promulgated under this chapter by any well driller.
             568          (iv) The state engineer may refuse to issue a license to a well driller if it appears that
             569      there has been a violation of the rules or a failure to comply with Section 73-3-22 .
             570          Section 16. Section 73-3a-104 is amended to read:
             571           73-3a-104. Rulemaking power of Water Rights Board.
             572          In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             573      [state engineer] Water Rights Board may make rules necessary to administer this chapter.
             574          Section 17. Section 73-3b-104 is amended to read:
             575           73-3b-104. Rulemaking power of Water Rights Board.
             576          The [state engineer] Water Rights Board may make rules to administer this chapter in
             577      accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
             578          Section 18. Section 73-3b-201 is amended to read:
             579           73-3b-201. Application for a recharge permit -- Required information -- Filing
             580      fee.
             581          (1) The application for obtaining a groundwater recharge permit shall include the
             582      following information:
             583          (a) the name and mailing address of the applicant;


             584          (b) the name of the groundwater basin or groundwater sub-basin in which the applicant
             585      proposes to operate the project;
             586          (c) the name and mailing address of the owner of the land on which the applicant
             587      proposes to operate the project;
             588          (d) a legal description of the location of the proposed project;
             589          (e) the source and annual quantity of water proposed to be stored underground;
             590          (f) evidence of a water right or an agreement to use the water proposed to be stored
             591      underground;
             592          (g) the quality of the water proposed to be stored underground and the water quality of
             593      the receiving groundwater aquifer;
             594          (h) evidence that the applicant has applied for all applicable water quality permits;
             595          (i) a plan of operation for the proposed recharge and recovery project which shall
             596      include:
             597          (i) a description of the proposed project;
             598          (ii) its design capacity;
             599          (iii) a detailed monitoring program; and
             600          (iv) the proposed duration of the project;
             601          (j) a copy of a study demonstrating[;]:
             602          (i) the area of hydrologic impact of the project;
             603          (ii) that the project is hydrologically feasible;
             604          (iii) that the project will not:
             605          (A) cause unreasonable harm to land; or
             606          (B) impair any existing water right within the area of hydrologic impact; and
             607          (iv) the percentage of anticipated recoverable water;
             608          (k) evidence of financial and technical capability; and
             609          (l) any other information that the state engineer requires.
             610          (2) (a) A filing fee must be submitted with the application.
             611          (b) The [state engineer] Water Rights Board shall establish the filing fee in accordance
             612      with Section 63-38-3.2 .
             613          Section 19. Section 73-3b-204 is amended to read:
             614           73-3b-204. Application for a recovery permit -- Required information.


             615          (1) If a person intends to recharge and recover water, the recovery application and
             616      permit may be filed and processed with the groundwater recharge application and permit.
             617          (2) The application for obtaining a recovery permit shall include the following
             618      information:
             619          (a) the name and mailing address of the applicant;
             620          (b) a legal description of the location of the existing well or proposed new well from
             621      which the applicant intends to recover stored water;
             622          (c) a written consent from the owner of the recharge permit;
             623          (d) the name and mailing address of the owner of the land from which the applicant
             624      proposes to recover stored water;
             625          (e) the name or description of the artificially recharged groundwater aquifer which is
             626      the source of supply;
             627          (f) the purpose for which the stored water will be recovered;
             628          (g) the depth and diameter of the existing well or proposed new well;
             629          (h) a legal description of the area where the stored water is proposed to be used;
             630          (i) the design pumping capacity of the existing well or proposed new well; and
             631          (j) any other information including maps, drawings, and data that the state engineer
             632      requires.
             633          (3) (a) A filing fee must be submitted with the application.
             634          (b) The [state engineer] Water Rights Board shall establish the filing fee in accordance
             635      with Section 63-38-3.2 .
             636          Section 20. Section 73-3b-302 is amended to read:
             637           73-3b-302. Fee.
             638          (1) The [state engineer] Water Rights Board shall assess an annual fee, in accordance
             639      with Section 63-38-3.2 , on each person who holds a groundwater recharge or recovery permit.
             640          (2) The fee shall reflect the division's costs to administer and monitor groundwater
             641      recharge and recovery projects.
             642          Section 21. Section 73-3c-302 is amended to read:
             643           73-3c-302. Application to the state engineer.
             644          (1) A public agency proposing water reuse shall apply to the state engineer.
             645          (2) An application for water reuse under Subsection (1) shall be made upon forms


             646      furnished by the state engineer and shall include:
             647          (a) the name of the applicant;
             648          (b) a description of the underlying water right;
             649          (c) an evaluation of the underlying water right's diversion, depletion, and return flow
             650      requirements;
             651          (d) the estimated quantity of water to be reused;
             652          (e) the location of the POTW;
             653          (f) the place, purpose, and extent of the proposed water reuse;
             654          (g) an evaluation of depletion from the hydrologic system caused by the water reuse;
             655      and
             656          (h) any other information consistent with this chapter that is requested by the state
             657      engineer.
             658          (3) An application under Subsection (1) shall include a copy of a reuse authorization
             659      contract for water reuse proposed by a public agency for any underlying water right not owned
             660      by the public agency.
             661          (4) In considering an application for water reuse, the state engineer shall comply with:
             662          (a) Section 73-3-6 ;
             663          (b) Section 73-3-7 ;
             664          (c) Section 73-3-10 ; and
             665          (d) Section 73-3-14 .
             666          (5) In determining whether a proposed water reuse is consistent with the underlying
             667      water right, the state engineer shall conclude that a proposed water reuse is consistent with the
             668      underlying water right if:
             669          (a) the use of the reuse water does not enlarge the underlying water right; and
             670          (b) any return flow requirement of the underlying water right is satisfied.
             671          (6) (a) The state engineer shall approve a water reuse application if the state engineer
             672      concludes that the proposed water reuse is consistent with the underlying water right.
             673          (b) The state engineer may:
             674          (i) deny an application for water reuse if the proposed water reuse is inconsistent with
             675      the underlying water right; or
             676          (ii) approve the application in part or with conditions to assure consistency with the


             677      underlying water right.
             678          (7) A public agency with an approved reuse application shall submit a report, as
             679      directed by the state engineer, concerning the ongoing water reuse operation.
             680          (8) The [state engineer] Water Rights Board may make rules in accordance with Title
             681      63, Chapter 46a, Utah Administrative Rulemaking Act, to implement the provisions of this
             682      chapter.
             683          Section 22. Section 73-5-13 is amended to read:
             684           73-5-13. Claim to surface or underground water not otherwise represented --
             685      Information required -- Corrections -- Filing -- Investigation -- Publication -- Judicial
             686      action to determine validity -- Rules.
             687          (1) (a) All claimants to the right to the use of water, including both surface and
             688      underground, whose rights are not represented by certificates of appropriation issued by the
             689      state engineer, by applications filed with the state engineer, by court decrees, or by notice of
             690      claim filed pursuant to law, shall submit the claim to the state engineer.
             691          (b) Subsections (2) through (7) shall only apply to claims submitted to the state
             692      engineer pursuant to this section after May 4, 1997.
             693          (2) (a) Each claim submitted under this section shall be verified under oath by the
             694      claimant or the claimant's duly appointed representative and submitted on forms furnished by
             695      the state engineer setting forth any information the state engineer requires, including:
             696          (i) the name and post office address of the person making the claim;
             697          (ii) the quantity of water claimed in acre-feet or rate of flow in second-feet, or both,
             698      where appropriate;
             699          (iii) the source of supply;
             700          (iv) the priority date of the right;
             701          (v) the location of the point of diversion with reference to a United States land survey
             702      corner;
             703          (vi) the place of use;
             704          (vii) the nature and extent of use;
             705          (viii) the time during which the water has been used each year; and
             706          (ix) the date when the water was first used.
             707          (b) The claim shall also include the following information verified under oath by a


             708      registered engineer or land surveyor:
             709          (i) measurements of the amount of water diverted;
             710          (ii) a statement that the quantity of water claimed either in acre-feet or cubic feet per
             711      second is consistent with the beneficial use claimed and the supply which the source is capable
             712      of producing; and
             713          (iii) a map showing the original diversion and conveyance works and where the water
             714      was placed to beneficial use, including irrigated lands, if irrigation is the claimed beneficial
             715      use.
             716          (c) The state engineer may require additional information as necessary to evaluate any
             717      claim including:
             718          (i) affidavits setting forth facts of which the affiant has personal knowledge;
             719          (ii) authenticated or historic photographs, plat or survey maps, or surveyors' notes;
             720          (iii) authenticated copies of original diaries, personal histories, or other historical
             721      documents which document the claimed use of water; and
             722          (iv) other relevant records on file with any county recorder's, surveyor's, or assessor's
             723      office.
             724          (3) (a) A claim may be corrected by submitting to the state engineer a verified
             725      corrected claim designated as such and bearing the same number as the original claim.
             726          (b) No fee shall be charged for submitting a corrected claim.
             727          (4) (a) Upon submission by a claimant of a claim that is acceptably complete under
             728      Subsection (2) and the deposit of money by a claimant with the state engineer sufficient to pay
             729      the expenses of conducting a field investigation and publishing a notice of the claim, the state
             730      engineer shall:
             731          (i) file the claim;
             732          (ii) endorse the date of its receipt;
             733          (iii) assign the claim a water right number; and
             734          (iv) publish a notice of the claim following the same procedures as provided in Section
             735      73-3-6 .
             736          (b) Any claim not acceptably complete under Subsection (2) shall be returned to the
             737      claimant.
             738          (c) The acceptance of any claim filed under this section by the state engineer may not


             739      be considered to be an adjudication by the state engineer of the validity of the claimed water
             740      right.
             741          (5) (a) The state engineer shall:
             742          (i) conduct a field investigation of each claim filed; and
             743          (ii) prepare a report of the investigation.
             744          (b) The report of the investigation shall:
             745          (i) become part of the file on the claim; and
             746          (ii) be admissible in any administrative or judicial proceeding on the validity of the
             747      claim.
             748          (6) (a) Any person who may be damaged by a diversion and use of water as described
             749      in a claim submitted pursuant to this section may file an action in district court to determine the
             750      validity of the claim, whether or not the claim has been accepted for filing by the state
             751      engineer.
             752          (b) Venue for the action shall be in the county in which the point of diversion listed in
             753      the claim is located, or in a county where the place of use, or some part of it, is located.
             754          (c) The action shall be brought against the claimant to the use of water or the claimant's
             755      successor in interest.
             756          (d) In any action brought to determine the validity of a claim to the use of water under
             757      this section, the claimant shall have the initial burden of proof as to the validity of the claimed
             758      right.
             759          (e) Any person filing an action challenging the validity of a claim to the use of water
             760      under this section shall notify the state engineer of the pendency of the action in a manner
             761      prescribed by the state engineer. Upon receipt of the notice, the state engineer may take no
             762      action on any change or exchange applications founded on the claim that is the subject of the
             763      pending litigation, until the court adjudicates the matter.
             764          (f) Upon the entering of any final order or decree in any judicial action to determine the
             765      validity of a claim under this section, the prevailing party shall file a certified copy of the order
             766      or decree with the state engineer, which shall become part of the state engineer's file on the
             767      claim.
             768          (7) The [state engineer] Water Rights Board may make rules consistent with this
             769      section specifying information required to be included in a claim and claim procedures.


             770          Section 23. Section 73-5-15 is amended to read:
             771           73-5-15. Groundwater management plan.
             772          (1) As used in this section:
             773          (a) "Critical management area" means a groundwater basin in which the groundwater
             774      withdrawals consistently exceed the safe yield.
             775          (b) "Safe yield" means the amount of groundwater that can be withdrawn from a
             776      groundwater basin over a period of time without exceeding the long-term recharge of the basin
             777      or unreasonably affecting the basin's physical and chemical integrity.
             778          (2) (a) The state engineer may regulate groundwater withdrawals within a specific
             779      groundwater basin by adopting a groundwater management plan in accordance with this section
             780      for any groundwater basin or aquifer or combination of hydrologically connected groundwater
             781      basins or aquifers.
             782          (b) The objectives of a groundwater management plan are to:
             783          (i) limit groundwater withdrawals to safe yield;
             784          (ii) protect the physical integrity of the aquifer; and
             785          (iii) protect water quality.
             786          (c) The state engineer shall adopt a groundwater management plan for a groundwater
             787      basin if more than 1/3 of the water right owners in the groundwater basin request that the state
             788      engineer adopt a groundwater management plan.
             789          (3) (a) In developing a groundwater management plan, the state engineer may consider:
             790          (i) the hydrology of the groundwater basin;
             791          (ii) the physical characteristics of the groundwater basin;
             792          (iii) the relationship between surface water and groundwater, including whether the
             793      groundwater should be managed in conjunction with hydrologically connected surface waters;
             794          (iv) the geographic spacing and location of groundwater withdrawals;
             795          (v) water quality;
             796          (vi) local well interference; and
             797          (vii) other relevant factors.
             798          (b) The state engineer shall base the provisions of a groundwater management plan on
             799      the principles of prior appropriation.
             800          (c) (i) The state engineer shall use the best available scientific method to determine


             801      safe yield.
             802          (ii) As hydrologic conditions change or additional information becomes available, safe
             803      yield determinations made by the state engineer may be revised by following the procedures
             804      listed in Subsection (5).
             805          (4) (a) (i) Except as provided in Subsection (4)(b), the withdrawal of water from a
             806      groundwater basin shall be limited to the basin's safe yield.
             807          (ii) Before limiting withdrawals in a groundwater basin to safe yield, the state engineer
             808      shall:
             809          (A) determine the groundwater basin's safe yield; and
             810          (B) adopt a groundwater management plan for the groundwater basin.
             811          (iii) If the state engineer determines that groundwater withdrawals in a groundwater
             812      basin exceed the safe yield, the state engineer shall regulate groundwater rights in that
             813      groundwater basin based on the priority date of the water rights under the groundwater
             814      management plan, unless a voluntary arrangement exists under Subsection (4)(c) that requires a
             815      different distribution.
             816          (b) When adopting a groundwater management plan for a critical management area, the
             817      state engineer shall, based on economic and other impacts to an individual water user or a local
             818      community caused by the implementation of safe yield limits on withdrawals, allow gradual
             819      implementation of the groundwater management plan.
             820          (c) (i) In consultation with the state engineer, water users in a groundwater basin may
             821      agree to participate in a voluntary arrangement for managing withdrawals at any time, either
             822      before or after a determination that groundwater withdrawals exceed the groundwater basin's
             823      safe yield.
             824          (ii) A voluntary arrangement under Subsection (4)(c)(i) shall be consistent with other
             825      law.
             826          (iii) The adoption of a voluntary arrangement under this Subsection (4)(c) by less than
             827      all of the water users in a groundwater basin does not affect the rights of water users who do
             828      not agree to the voluntary arrangement.
             829          (5) To adopt a groundwater management plan, the state engineer shall:
             830          (a) give notice as specified in Subsection (7) at least 30 days before the first public
             831      meeting held in accordance with Subsection (5)(b):


             832          (i) that the state engineer proposes to adopt a groundwater management plan;
             833          (ii) describing generally the land area proposed to be included in the groundwater
             834      management plan; and
             835          (iii) stating the location, date, and time of each public meeting to be held in accordance
             836      with Subsection (5)(b);
             837          (b) hold one or more public meetings in the geographic area proposed to be included
             838      within the groundwater management plan to:
             839          (i) address the need for a groundwater management plan;
             840          (ii) present any data, studies, or reports that the state engineer intends to consider in
             841      preparing the groundwater management plan;
             842          (iii) address safe yield and any other subject that may be included in the groundwater
             843      management plan;
             844          (iv) outline the estimated administrative costs, if any, that groundwater users are likely
             845      to incur if the plan is adopted; and
             846          (v) receive any public comments and other information presented at the public
             847      meeting, including comments from any of the entities listed in Subsection (7)(a)(iii);
             848          (c) receive and consider written comments concerning the proposed groundwater
             849      management plan from any person for a period determined by the state engineer of not less
             850      than 60 days after the day on which the notice required by Subsection (5)(a) is given;
             851          (d) (i) at least 60 days prior to final adoption of the groundwater management plan,
             852      publish notice:
             853          (A) that a draft of the groundwater management plan has been proposed; and
             854          (B) specifying where a copy of the draft plan may be reviewed; and
             855          (ii) promptly provide a copy of the draft plan in printed or electronic form to each of
             856      the entities listed in Subsection (7)(a)(iii) that makes written request for a copy; and
             857          (e) provide notice of the adoption of the groundwater management plan.
             858          (6) A groundwater management plan shall become effective on the date notice of
             859      adoption is completed under Subsection (7), or on a later date if specified in the plan.
             860          (7) (a) A notice required by this section shall be:
             861          (i) published once a week for two successive weeks in a newspaper of general
             862      circulation in each county that encompasses a portion of the land area proposed to be included


             863      within the groundwater management plan;
             864          (ii) published conspicuously on the state engineer's Internet website; and
             865          (iii) mailed to each of the following that has within its boundaries a portion of the land
             866      area to be included within the proposed groundwater management plan:
             867          (A) county;
             868          (B) incorporated city or town;
             869          (C) improvement district under Title 17B, Chapter 2a, Part 4, Improvement District
             870      Act;
             871          (D) service area, under Title 17B, Chapter 2a, Part 9, Service Area Act;
             872          (E) drainage district, under Title 17B, Chapter 2a, Part 2, Drainage District Act;
             873          (F) irrigation district, under Title 17B, Chapter 2a, Part 5, Irrigation District Act;
             874          (G) metropolitan water district, under Title 17B, Chapter 2a, Part 6, Metropolitan
             875      Water District Act;
             876          (H) special service district providing water, sewer, drainage, or flood control services,
             877      under Title 17A, Chapter 2, Part 13, Utah Special Service District Act;
             878          (I) water conservancy district, under Title 17B, Chapter 2a, Part 10, Water
             879      Conservancy District Act; and
             880          (J) conservation district, under Title 17A, Chapter 3, Part 8, Conservation Districts.
             881          (b) A notice required by this section is effective upon substantial compliance with
             882      Subsections (7)(a)(i) through (iii).
             883          (8) A groundwater management plan may be amended in the same manner as a
             884      groundwater management plan may be adopted under this section.
             885          (9) The existence of a groundwater management plan does not preclude any otherwise
             886      eligible person from filing any application or challenging any decision made by the state
             887      engineer within the affected groundwater basin.
             888          (10) (a) A person aggrieved by a groundwater management plan may challenge any
             889      aspect of the groundwater management plan by:
             890          (i) requesting administrative review by the Water Rights Board in accordance with
             891      Section 73-2-31 ; or
             892          (ii) filing a complaint within 60 days after the adoption of the groundwater
             893      management plan in the district court for any county in which the groundwater basin is found.


             894          (b) Notwithstanding Subsection (9), a person may challenge the components of a
             895      groundwater management plan only in the manner provided by Subsection (10)(a).
             896          (c) An action brought under [this] Subsection (10)(a)(ii) is reviewed de novo by the
             897      district court.
             898          (d) A person challenging a groundwater management plan under [this] Subsection
             899      (10)(a)(ii) shall join the state engineer as a defendant in the action challenging the groundwater
             900      management plan.
             901          (e) (i) Within 30 days after the day on which a person files an action challenging any
             902      aspect of a groundwater management plan under Subsection (10)(a), the person filing the action
             903      shall publish notice of the action in a newspaper of general circulation in the county in which
             904      the district court is located.
             905          (ii) The notice required by Subsection (10)(e)(i) shall be published once a week for two
             906      consecutive weeks.
             907          (iii) The notice required by Subsection (10)(e)(i) shall:
             908          (A) identify the groundwater management plan the person is challenging;
             909          (B) identify the case number assigned by the district court;
             910          (C) state that a person affected by the groundwater management plan may petition the
             911      district court to intervene in the action challenging the groundwater management plan; and
             912          (D) list the address for the clerk of the district court in which the action is filed.
             913          (iv) (A) Any person affected by the groundwater management plan may petition to
             914      intervene in the action within 60 days after the day on which notice is last published under
             915      Subsections (10)(e)(i) and (ii).
             916          (B) The district court's treatment of a petition to intervene under this Subsection
             917      (10)(e)(iv) is governed by the Utah Rules of Civil Procedure.
             918          (v) A district court in which an action is brought under Subsection (10)(a) shall
             919      consolidate all actions brought under that Subsection and include in the consolidated action any
             920      person whose petition to intervene is granted.
             921          (11) A groundwater management plan adopted or amended in accordance with this
             922      section is exempt from the requirements in Title 63, Chapter 46a, Utah Administrative
             923      Rulemaking Act.
             924          (12) Recharge and recovery projects permitted under Chapter 3b, Groundwater


             925      Recharge and Recovery Act, are exempted from this section.
             926          (13) Nothing in this section may be interpreted to require the development,
             927      implementation, or consideration of a groundwater management plan as a prerequisite or
             928      condition to the exercise of the state engineer's enforcement powers under other law, including
             929      powers granted under Section 73-2-25 .
             930          (14) A groundwater management plan adopted in accordance with this section may not
             931      apply to the dewatering of a mine.
             932          (15) (a) A groundwater management plan adopted by the state engineer before May 1,
             933      2006, remains in force and has the same legal effect as it had on the day on which it was
             934      adopted by the state engineer.
             935          (b) If a groundwater management plan that existed before May 1, 2006, is amended on
             936      or after May 1, 2006, the amendment is subject to this section's provisions.
             937          Section 24. Section 73-5a-101 is amended to read:
             938           73-5a-101. Power of state engineer to regulate dams -- Water Rights Board rules.
             939          (1) The state engineer has the authority to regulate dams for the purpose of protecting
             940      public safety.
             941          (2) To protect life and property, the [state engineer] Water Rights Board may make
             942      rules controlling the construction and operation of dams, including rules controlling:
             943          (a) design;
             944          (b) maintenance;
             945          (c) repair;
             946          (d) removal; and
             947          (e) abandonment.
             948          (3) The [state engineer] Water Rights Board may by rule exempt from this chapter any
             949      dam that:
             950          (a) impounds less than 20 acre-feet of water and does not constitute a threat to human
             951      life if it fails; or
             952          (b) does not constitute a threat to human life and would result in only minor damage to
             953      property of the owner if it fails.
             954          Section 25. Section 73-5a-105 is amended to read:
             955           73-5a-105. Independent consultants -- Owner to pay costs.


             956          (1) The state engineer may require the owner of a dam or proposed dam to obtain the
             957      services of an independent consultant or team of consultants approved by the state engineer to
             958      consult regarding the adequacy of the design, construction, or operation of the dam if safety
             959      considerations pertaining to the design, construction, or operation of the dam warrant an
             960      independent review.
             961          (2) The [state engineer] Water Rights Board shall make rules specifying:
             962          (a) the safety considerations that will be considered in determining if an independent
             963      review is required;
             964          (b) the requisite qualifications and experience of the independent consultants; and
             965          (c) the timing of the consultants' review so that their recommendations are made in a
             966      timely manner.
             967          (3) (a) The independent consultants shall be considered to be the agents of the owner of
             968      the dam.
             969          (b) The costs of the independent consultants' services shall be paid by the owner of the
             970      dam.
             971          (c) The owner of the dam may require the independent consultants to consider other
             972      issues, in addition to safety considerations, such as:
             973          (i) design selections or alternatives;
             974          (ii) site selection;
             975          (iii) cost effectiveness; or
             976          (iv) other tasks as defined by the contract.
             977          Section 26. Section 73-5a-203 is amended to read:
             978           73-5a-203. Review of plans.
             979          (1) The state engineer shall establish a formal written procedure for the review of plans
             980      submitted pursuant to Section 73-5a-202 . Plans shall be reviewed according to:
             981          (a) design criteria which the [state engineer] Water Rights Board shall specify in rules;
             982      and
             983          (b) data or criteria generally accepted by the general dam design community.
             984          (2) Upon review of the plans, the state engineer will:
             985          (a) approve them with appropriate conditions;
             986          (b) reject them; or


             987          (c) return them for correction.
             988          (3) The state engineer shall document each review indicating:
             989          (a) how the plans were reviewed; and
             990          (b) his evaluation of the plans.
             991          Section 27. Section 73-5a-304 is amended to read:
             992           73-5a-304. Final inspection.
             993          (1) Following construction and prior to impounding any water, the state engineer shall
             994      undertake a final inspection of the project.
             995          (2) A written final approval of the project shall be issued if:
             996          (a) the state engineer determines that:
             997          (i) the project was constructed in accordance with plans approved by the state engineer
             998      under Sections 73-5a-203 and 73-5a-303 ; and
             999          (ii) during construction, inspections and tests were conducted as required by Section
             1000      73-5a-301 ; and
             1001          (b) the emergency action plan and standard operating plan meet the requirements set
             1002      forth in rules adopted by the [state engineer] Water Rights Board.
             1003          (3) (a) The state engineer may require the owner to:
             1004          (i) submit a formal operating plan for the initial filling of the reservoir; or
             1005          (ii) follow certain procedures during the initial filling of the reservoir.
             1006          (b) Failure to submit the operating plan or follow the specified procedures shall result
             1007      in revocation of the final approval.
             1008          Section 28. Section 73-5a-401 is amended to read:
             1009           73-5a-401. Records and reports.
             1010          The [state engineer] Water Rights Board may make rules requiring the owner of any
             1011      dam to:
             1012          (1) maintain records pertaining to the construction, operation, or maintenance of the
             1013      dam; or
             1014          (2) submit:
             1015          (a) reports to the state engineer regarding maintenance, operation, or instrumentation
             1016      readings; or
             1017          (b) any other data considered necessary by the state engineer.


             1018          Section 29. Section 73-5a-403 is amended to read:
             1019           73-5a-403. Contents of standard operating plans.
             1020          [By May 1, 1991, the state engineer] The Water Rights Board shall adopt rules
             1021      specifying the contents of standard operating plans.
             1022          Section 30. Section 73-5a-502 is amended to read:
             1023           73-5a-502. Legislative findings -- Immunity from suit -- Minimum standards for
             1024      existing high hazard dams -- Exceptions -- Investigations and plans for compliance with
             1025      minimum standards.
             1026          (1) The Legislature finds that:
             1027          (a) it is in the interest of the people of the state to improve the safety of existing dams;
             1028          (b) mutual irrigation companies and water users associations cannot afford to bring
             1029      dams into conformance with the state's current minimum safety standards without financial
             1030      assistance from the state;
             1031          (c) due to limited financial, physical, and human resources, it is necessary to establish
             1032      priorities for the upgrade of dams; and
             1033          (d) the state and its officers and employees are immune from suit for any injury or
             1034      damage resulting from the exercise or performance or the failure to exercise or perform any
             1035      function pursuant to this chapter.
             1036          (2) The [state engineer] Water Rights Board shall establish minimum standards for
             1037      existing high hazard dams by rule. The standards for existing high hazard dams may differ
             1038      from the design criteria established for new construction.
             1039          (3) No seismic standards shall be established for existing high hazard dams within the
             1040      flood control use classification.
             1041          (4) (a) In implementing this section, the state engineer will develop a priority list of
             1042      high hazard dams. The list will be determined by calculating the relative anticipated breach
             1043      flows in the event of a dam failure. The dams will be ranked from the largest breach flow to
             1044      the smallest for all high hazard dams.
             1045          (b) The state engineer shall investigate annually 25 dams on the priority list in order of
             1046      their ranking to determine in what areas they are deficient or do not meet minimum standards.
             1047          (c) Once a determination is made, the owner will be notified that the owner will be
             1048      required to undertake investigations to determine requirements necessary to bring the dam into


             1049      compliance with minimum standards.
             1050          (d) Once the owner has been informed of the deficiencies of the dam, the owner will be
             1051      given 90 days to respond, in writing, as to what steps the owner is taking to investigate the
             1052      deficiencies and the time required to complete the investigations.
             1053          (e) The state engineer will review the proposal, and if it appears reasonable, will
             1054      approve it.
             1055          (5) The state engineer may not require any mutual irrigation company or water users
             1056      association to upgrade a dam in conformance with minimum standards, unless a grant to pay
             1057      for 80% of the costs is made available from the Board of Water Resources.
             1058          Section 31. Section 73-5a-602 is amended to read:
             1059           73-5a-602. Contents of emergency action plans.
             1060          [By May 1, 1991, the state engineer] The Water Rights Board shall adopt rules
             1061      specifying the contents of an emergency action plan.
             1062          Section 32. Section 73-6-1 is amended to read:
             1063           73-6-1. Suspension of right to appropriate -- By proclamation of governor.
             1064          For the purpose of preserving the surplus and unappropriated waters of any stream or
             1065      other source of water supply for use by irrigation districts and organized agricultural water
             1066      users, or for any use whatsoever, when in the judgment of the governor and the [state engineer]
             1067      Water Rights Board the welfare of the state demands it, the governor by proclamation may,
             1068      upon the recommendation of the [state engineer] Water Rights Board, suspend the right of the
             1069      public to appropriate such surplus or unappropriated waters.
             1070          Section 33. Section 73-6-2 is amended to read:
             1071           73-6-2. Restoration by proclamation -- Priority of applications.
             1072          Waters withdrawn from appropriation under this chapter may be restored by
             1073      proclamation of the governor upon the recommendation of the [state engineer] Water Rights
             1074      Board. Such proclamation shall not become effective until notice thereof has been published at
             1075      least once a week for three successive weeks in a newspaper of general circulation within the
             1076      boundaries of the river system or water source within which the waters so to be restored are
             1077      situated. Applications for appropriations shall not be filed during the time such waters are
             1078      withdrawn from appropriation; provided, that after the first publication of notice aforesaid
             1079      applications may be deposited with the state engineer and at the time such proclamation


             1080      becomes effective the engineer shall hold public hearings, giving all applicants notice, to
             1081      determine which applications so filed during the period of publication of such notice are most
             1082      conducive to the public good, and shall file such applications in order of priority according to
             1083      such determination.
             1084          Section 34. Section 73-22-5 is amended to read:
             1085           73-22-5. Jurisdiction of division -- Hearings -- Subpoena power -- Restraining
             1086      violations -- Actions for damages against violators unaffected.
             1087          (1) (a) The division has jurisdiction and authority over all persons and property, public
             1088      and private, necessary to enforce the provisions of this chapter [and may enact, issue, and
             1089      enforce].
             1090          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             1091      Water Rights Board shall make rules necessary [rules and orders] to carry out the requirements
             1092      of this chapter.
             1093          (2) (a) Any affected person may apply for a hearing before the division, or the division
             1094      may initiate proceedings upon any question relating to the administration of this chapter by
             1095      following the procedures and requirements of Title 63, Chapter 46b, Administrative Procedures
             1096      Act.
             1097          (b) The Division of Water Rights shall comply with the procedures and requirements
             1098      of Title 63, Chapter 46b, Administrative Procedures Act, in its adjudicative proceedings.
             1099          (3) The division shall have the power to summon witnesses, to administer oaths, and to
             1100      require the production of records, books, and documents for examination at any hearing or
             1101      investigation conducted by it.
             1102          (4) (a) If any person fails or refuses to comply with a subpoena issued by the division,
             1103      or if any witness fails or refuses to testify about any matter regarding which he may be
             1104      interrogated, the division may petition any district court in the state to issue an order
             1105      compelling the person to:
             1106          (i) comply with the subpoena and attend before the division;
             1107          (ii) produce any records, books, and documents covered by the subpoena; or
             1108          (iii) to give testimony.
             1109          (b) The court may punish failure to comply with the order as contempt.
             1110          (5) (a) Whenever it appears that any person is violating or threatening to violate any


             1111      provision of this chapter, or any rule or order made under this chapter, the division may file suit
             1112      in the name of the state to restrain that person from continuing the violation or from carrying
             1113      out the threat of violation.
             1114          (b) Venue for the action is in the district court in the county where any defendant
             1115      resides or in the county where the violation is alleged to have occurred.
             1116          (6) (a) Nothing in this chapter, no suit by or against the division, and no violation
             1117      charged or asserted against any person under this chapter, or any rule or order issued under it,
             1118      shall impair, abridge, or delay any cause of action for damages that any person may have or
             1119      assert against any person violating this chapter, or any rule or order issued under it.
             1120          (b) Any person so damaged by the violation may sue for and recover whatever damages
             1121      that he is otherwise entitled to receive.
             1122          Section 35. Section 73-22-6 is amended to read:
             1123           73-22-6. Information required concerning resource development --
             1124      Confidentiality -- Regulation of wells -- Surety bonds -- Inspection.
             1125          (1) The division shall have authority to require:
             1126          (a) Identification of the location and ownership of all wells and producing geothermal
             1127      leases.
             1128          (b) Filing with the division of a notice of intent to drill, redrill, deepen, permanently
             1129      alter the casing of, or abandon any well. Approval of the notice of intent must be obtained from
             1130      the division prior to commencement of operations.
             1131          (c) Keeping of well logs and filing true and correct copies with the division. These
             1132      records are public records when filed with the division, unless the owner or operator requests,
             1133      in writing, that the records be held confidential. The period of confidentiality shall be
             1134      established by the division, not to exceed five years from the date of production or injection for
             1135      other than testing purposes or five years from the date of abandonment, whichever occurs first,
             1136      as determined by the division. Well records held confidential by the division are open to
             1137      inspection by those persons authorized in writing by the owner or operator. Confidential status
             1138      shall not restrict inspection by state officers charged with regulating well operations or by
             1139      authorized officials of the Utah State Tax Commission for purposes of tax assessment.
             1140          (d) The spacing, drilling, casing, testing, operating, producing, and abandonment of
             1141      wells so as to prevent:


             1142          (i) geothermal resources, water, gases, or other fluids from escaping into strata other
             1143      than the strata in which they are found (unless in accordance with a subsurface injection
             1144      program approved by the division);
             1145          (ii) pollution of surface and groundwater;
             1146          (iii) premature cooling of any geothermal system by water encroachment or otherwise
             1147      which tends to reduce the ultimate economic recovery of the geothermal resources;
             1148          (iv) blowouts, cave-ins, and seepage; and
             1149          (v) unreasonable disturbance or injury to neighboring properties, prior water rights,
             1150      human life, health, and the environment.
             1151          (e) The operator to file cash or individual surety bonds with the division for each new
             1152      well drilled and each abandoned well redrilled. The amount of surety required shall be
             1153      determined by the [division] Water Rights Board. In lieu of bonds for separate wells, the
             1154      operator may file a blanket cash or individual surety bond in an amount set by the division to
             1155      cover all the operator's drilling, redrilling, deepening, maintenance, or abandonment activities
             1156      for wells in the state. Bonds filed with the division shall be executed by the operator, as
             1157      principal, conditioned on compliance with division regulations in drilling, redrilling,
             1158      deepening, maintaining, or abandoning any well or wells covered by the bond and shall secure
             1159      the state against all losses, charges, and expenses incurred by it to obtain such compliance by
             1160      the principal named in the bond.
             1161          (f) The geothermal owner or operator to measure geothermal production according to
             1162      standards set by the division and maintain complete and accurate production records. The
             1163      records, or certified copies of them, shall be preserved on file by the owner or operator for a
             1164      period of five years and shall be available for examination by the division at all reasonable
             1165      times.
             1166          (g) Filing with the division any other reasonable reports which it prescribes regarding
             1167      geothermal operations within the state.
             1168          (2) Any bond filed with the division in conformance with this chapter may, with the
             1169      consent of the division, be terminated and canceled and the surety be relieved of all obligations
             1170      under it when the well or wells covered by the bond have been properly abandoned or another
             1171      valid bond has been substituted for it.
             1172          (3) The division may enter onto private or public land at any time to inspect any well or


             1173      geothermal resource development project to determine if the well or project is being
             1174      constructed, operated, or maintained according to any applicable permits or to determine if the
             1175      construction, operation, or maintenance of the well or project may involve an unreasonable risk
             1176      to life, health, property, the environment or subsurface, surface, or atmospheric resources.
             1177          Section 36. Section 73-22-10 is amended to read:
             1178           73-22-10. Judicial and administrative review of division actions -- Falsification or
             1179      omission of filings as misdemeanor -- Limitation of actions.
             1180          (1) (a) Any person aggrieved by any order issued under this chapter may obtain:
             1181          (i) administrative review by the Water Rights Board in accordance with Section
             1182      73-2-31 ; or
             1183          (ii) judicial review.
             1184          (b) Venue for judicial review of informal adjudicative proceedings is in the district
             1185      court of Salt Lake County, or in the district court of the county in which the complaining
             1186      person resides.
             1187          (2) An action or appeal involving any provision of this chapter, or a rule or order
             1188      issued under it shall be determined as expeditiously as possible.
             1189          (3) Any person who, for the purpose of evading this chapter or any order of the
             1190      division issued under it, makes or causes to be made any false entry in any report, record,
             1191      account, or memorandum required by this chapter, or by any order issued under it, or omits or
             1192      causes to be omitted from the report, record, account, or memorandum, full, true, and correct
             1193      entries as required by this chapter, or by an order, or removes from this state or destroys,
             1194      mutilates, alters, or falsifies the record, account, or memorandum, is guilty of a class A
             1195      misdemeanor.
             1196          (4) No suit, action, or other proceeding based upon a violation of this chapter or any
             1197      order of the division issued under it may be begun or maintained unless the action is begun
             1198      within two years from the date of the alleged violation.


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