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Montana State Capitol
Instream Flow Bills

MRA is going to the 2007 Montana Legislature with two Instream Flow bills...

A Legislative Proposal to Give or Sell Water Rights Back to Streams
- House Bill LC 435 -

Montana Department of Fish, Wildlife & Parks (MTFW&P) has been a leader in protecting perennial stream flow in the past. Year-round flowing streams are increasingly important and a large economic benefit to communities. We owe it to Montana's future to be a leader once again.

Purchase of Water Rights in Perpetuity

In order to satisfy this increasing economic and intrinsic demand for flowing streams and the values they provide, water right holders should be allowed to receive and diversify their income by selling or dedicating their water right in perpetuity to MTFW&P, while at the same time helping to solve the dewatering problem.

Water Leasing

Currently, Montana water law allows water right holders to lease or convert all or a portion of their water right to instream flow on a temporary basis for up to 30 years, with the potential for 10-year renewals. Upon termination of the lease, the water right reverts to its former use. At this time MTFW&P is not allowed to convert a water right for instream use permanently. They can lease for short term, but they cannot buy. The leasing program has worked as an expensive, temporary, short-term fix which only causes the deferment of the dewatering problem. It is inconsistent with the long-term goal of keeping fish in streams. Authority to purchase in perpetuity (willing seller) would be a long-term solution. Both state and federal Superfund programs, as well as Montana's Natural Resource Damage Program (Upper Clark Fork) require long-term restoration of damaged rivers. The temporary water leasing law is inconsistent with long-term restoration requirements.

Water Law

Water law in the West encourages the maximum diversion and use of water from our streams. Under current law, if a water right holder abandons his right, the water becomes available for appropriation by other diverters. A water right holder can sell his/her right in perpetuity to another water diverter, but he cannot sell his right to MTFW&P in perpetuity.

As land use changes and land holdings with senior water rights are subdivided, we need to ensure that opportunities to solve Montana's long range dewatering problems are not missed. Both traditional water users and newcomers buying into lands with water rights want the option of giving their water back to the stream and to see it protected there. They would rather continue to divert their water than abandon their water, as is now required under existing circumstances.

What is needed is a law allowing water right holders to sell or dedicate their water rights back to streams for whatever term they choose, including permanently. It would be helpful to resolve in-stream flow problems by allowing a water right holder to get financial assistance in exchange for dedication of his/her right to keep the stream from severe dewatering.

Tax authorities rule that tax benefits are not available for donating water rights dedications, if it is not in perpetuity. Conservation easements can be granted or sold in perpetuity for tax benefits. Water right holders should also be granted the right to decide what to do with their property interests and for how long. It is their water right – it should be their decision. Communities and participants want long range solutions, not temporary leasing fixes. States like Washington, Oregon, Wyoming and Colorado have enacted purchase in perpetuity authority.

Emergency Stream Flow for Fisheries Bill
- House Bill LC 463
-

The Montana Constitution requires the Legislature to provide adequate remedies to prevent unreasonable depletion and degradation of minimum stream flows for important fisheries. There is a legal basis for protecting important fisheries in times of drought emergencies. It is in the public interest to perpetuate natural fish resources for future uses. Flowing streams maintain water quality, contributing to a clean, healthful environment for citizens Public trust values determine that 25% of the Average Annual Flow (AAF) in streams is the minimum needed to maintain basic aquatic life. The AAF is calculated in cubic feet per second (cfs) and measured at stream gaging stations. Government agencies have installed and maintained a system of gauging stations throughout Montana and have been measuring flows for over 90 years. This stream flow information is easily accessible to the public.

In December, 2003, the MTFW&P in their latest inventory revealed that 3,714 miles of “important fisheries” are either chronically or periodically dewatered by irrigation each year, leaving stream flows below the point where stream habitat is adequate for fish. Either the fish move out or die. Because native fish pre-date man's diverting of water, it would be constitutional and not a taking of property to allow a minimum of 25% of the AAF to sustain a native fishery in a year-round flowing stream.

The Montana Supreme Court on September 24, 2002, delivered a majority opinion that says Montana law prior to 1973 does not require a diversion for a valid appropriation of water. This means that state claims to water rights for instream flows are valid for fish, wildlife and recreation. The Supreme Court said that these uses can be considered equal with irrigation uses when adjudicating water rights on a river, stream, pond or lake. The ruling reverses the 1988 Bean Lake decision that erroneously set a precedent by implying that the Montana Constitution did not recognize water rights for fish and wildlife. The court ruling legalizes a number of water claims filed by MTFW&P in the 1980s, when the Montana Water Court began sorting out pre-1973 water rights. Writing for the court majority, Justice William Leaphart said Montana “recognizes fish, wildlife and recreation uses as beneficial and valid in-stream and in-lake appropriations of water.”

The solution to the dewatering problem is to provide some real protection for fisheries without seriously impacting current irrigation uses. The ruling amends the “use it or lose it” water law doctrine, validates the State's claim to water rights for in-stream flows and protects irrigators' right to leave water in streams (that is, not to use up their share) while their water right is still secure. The ruling will be a support for Montana River Action's Emergency Stream Flow for Fisheries Bill in the 2007 Legislature. When a fishery is destroyed by dewatering for thermal pollution, it may take eight years for the aquatic life to naturally reestablish to where a fish can reasonably live in a stream, whereas an irrigator called to cut back on crop irrigation may only have one diminished harvest rather than a total loss for that irrigation season.

The Emergency Stream Flow for Fisheries Bill applies to year-round flowing streams listed on the December 19, 2003 inventory of dewatered streams, which only includes those streams that support important fisheries, spawning and fish rearing habitats by MTFW&P.

The Emergency Stream Flow for Fisheries Bill would take no authority away from District Judges, Water Courts, Water Commissioners, Water Masters, ditch companies or ditch riders, or from any legal system that manages water rights. Authority is rested in their legal judgments to control all water diversions. When an individual stream reaches a low flow of 25% of the AAF, then Water Commissioners would begin limiting water diversions – first in time, first in right – so that 25% of the AAF remains in the stream to sustain fisheries.

No additional water management personnel or water measures would be needed and no new gauging stations be installed. The existing water right management system will be responsible for assuring that 25% of the AAF remains in the stream to support fish. This is the stream's original water right.

Sharing water in drought emergencies to sustain important fisheries, spawning and fish rearing habitats is a fair, acceptable and beneficial use of water. It is in the interest of Montanans to provide the protection of law to fish through a reasonable instream flow of water that is accorded through irrigation water rights under the present first in time, first in right appropriations system. It would be an effective and efficient method of satisfying the public interest in water sharing.

Water Law

River Bend PhotoWater is a precious and scarce public resource and a valuable common good. It flows across political and private boundaries and, like the air we breath, water must remain unpolluted. To retain its purity water must be protected by municipal, county, state and federal laws. The first water quality law passed in the Montana Legislature was in 1907 as a response to a typhoid epidemic on the Milk River. Sewage and waste water were being dumped into the river and typhoid bacteria spread through the water. Montana is one of the few states in the nation where rivers flow from the Continental Divide eventually into the Atlantic, Pacific and Arctic Oceans. It is one of the greatest of the state's natural resources as well as a chief attraction for visitors and tourists. The state has 51,987 miles of year-round flowing streams.

Rivers and streams evolved over eons of time, long before the coming of humans. One who acquires property along these streams does so - presumably -- with knowledge of the values and the hazards that go with it and a cognizance of the stream's natural, seasonal flow and biological life contained within the stream. Water diversion first began in Montana in 1862 when placer gold miners working within mining districts decided how the water was to be divided and the California "prior appropriations doctrine" in allocating water use was adopted. The first user on the stream possessed the earliest priority date and could use the amount of water that his right allowed. Later farmers and ranchers also adopted the miners' "prior appropriations doctrine" in their allocation of water. Then, in 1908, the court ruled that Indian tribes hold reserved water rights according to their treaty date and have priority over other water rights in the area. The same rule applies to federal government set-asides, whether for National Parks, Forests or Bureau of Land Management lands.

The 1973 Montana Legislature passed the Water Use Act which mandated a general adjudication of all existing water rights in the State. Since then a water use permit process involving 1) filing, 2) public notice, and 3) a public hearing, has replaced the "prior appropriations" method of obtaining new water rights. Water reservations can also be filed for conservation districts or by towns and cities anticipating future growth and need.

Montanans have a constitutional right to a clean and healthful environment. The clean flowing streams of the State belong to the people and are held in trust by the State for the health, safety and use of the people guaranteed in our Constitution. The public trust maintains that the State does not have authority to appropriate water beyond a minimum level needed to protect the aquatic life in our year-round flowing streams. State law says "The public policy is to promote conservation, development and beneficial use of the State's water resources to secure maximum economic and social prosperity for its citizens, and the water must be protected and conserved to assure adequate supplies for recreation and for wildlife and aquatic values." Montana State law gives the perspective that the stream system and recreation are important enough to allow sufficient quantities of clean water to be left in streams.

Irrigators who rely on streams for water get it on a "first in time, first in right" principle with those holding the oldest water rights getting the first withdrawal of water. Water commissioners appointed by State Judges can require junior water right holders to stop diverting water in dry years so those with more senior rights have sufficient water. Most of Montana's water is legally controlled by ranchers and farmers on the "prior appropriations doctrine" or a "first come, first served" basis.

Three major categories:

1) Claims are rights that were active before the 1973 Legislative Water Adjudication Act
2) Permits are rights issued since 1973
3) Reservations reserve water for future uses.

Montana Constitution states:

"All surface, underground, flood and atmospheric waters within the boundaries of the State are the property of the State for the use of its people and are subject to appropriations for beneficial uses as provided by law."

"It is the policy of this State to provide for the wise utilization, development and conservation of the waters of the State for the maximum benefit of its people with the least possible degradation of the natural aquatic ecosystems."

"The water resources of the State must be protected and conserved to assure adequate supplies for public recreational purposes and for the conservation of wildlife and aquatic life." ~

Gallatin River at Central Park

Gallatin River at Central Park. Looking down stream from Gallatin Bridge. Very little flow in river is apparent here.

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