Archive for the ‘buying water rights’ Category

Buying Water Rights – What is a Water Bank?

Sunday, July 26th, 2009

Buying water rights can be a very complex process to understand fully. However, when it comes to learning about the process, it helps to understand all the steps along the way. When you buy water rights, you are buying them from someone who is selling them, whether that is a public domain or a private third-party. A water bank will serve to facilitate this transaction, and will also help buyers and sellers find each other when it comes to buying water rights. There are not a lot of these facilities out there, as the water rights issue is not well-structured, but they do exist.

Buying water rights doesn’t have to be difficult if you find a quality water bank to work with. They file applications and carry out title searches and research to ensure that the process goes smoothly. They are ultimately like a middleman between buyer and seller, much like a real estate agent in home sales. The water bank will take the time to prepare any drawings that are necessary for the transaction to be completed, and will do so in one of two formats: CAD or GIS. This allows for the actual sale to be written out and demonstrated, much like when you view the floor plan of a home.

Buying water rights also involves permits in some cases, which the water bank will handle. They take care of all of the research and documentation for buyers and sellers, allowing the consumer to have an easier time buying water rights. When a water bank fulfills all of these services, it is natural to expect them to charge a fee. However, when you don’t have to deal with the hassle on your own, it’s a worthwhile investment. The water bank that you choose to work with will have its own fee schedule, so make sure that you inquire about it ahead of time.

Buying water rights from a water bank is really like buying a home through a real estate agent. There is no better comparison for the transaction, because both act on behalf of a seller and/or buyer to complete a transaction, including charging their own fees for operations performed. From finding water rights to buy, to selling water rights that you no longer need, a water bank can provide many solutions to buying water rights, selling water rights, and so much more. In such an un-structured process, the water bank that you work with can offer a little peace of mind and structure that you can enjoy.

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Buying Water Rights – How to Make a Purchase

Thursday, July 23rd, 2009

Buying water rights involves many steps, including everything from finding the rights that you want to buy all the way up to completing the sale. There is not a lot of structure in this process, so figuring it out can prove to be a challenge for some. However, if you take the time to check out buying water rights, you might realize that getting what you need is easier than you thought. Water rights are purchased by people who want to make water beneficial to themselves in some way. The use might even involve a change in the diversion, place, or purpose of the water in question. Many states regard this as a real property transaction, which is why a sales contract is always required.

Buying water rights requires you to get permission of state authorities in almost every case. Anyone who applies for a permit needs to file it with the proper state authorities in order to keep things in order. When it comes to re-allocating water rights, there is a lot of legality involved that can get tricky, but it doesn’t have to if you are adequately prepared. When it comes to buying water rights, you will even be required in many cases to publish a notice of intent so that the public has knowledge of the transaction. If there are objections, protests can be filed, which will then be investigated. If there are none, the state authorities can move on and make their own decision about the transaction.

Buying water rights can be denied. If this happens, you can petition a hearing that will allow you to learn about why the denial occurred, and to give reason as to why you should be allowed to use the water, even though the transaction was initially turned down. After this, a district court hearing will be required if further denial ensues. Those who really want to fight for their choice of buying water rights can even take their case all the way to the state Supreme Court in some cases.

Buying water rights is complete when a permit is granted to the buyer, and the transaction is completed. Essentially, that is all that is involved in buying water rights. The costs will vary, depending on what the seller is asking for the water rights, as well as fees and charges for the servicing of the sales contract. Now that you know a little more about how to buy water rights, you might feel like you are better prepared for the transaction yourself.

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Buying Water Rights – Buy a Home, Buy Water Rights

Monday, July 20th, 2009

Buying water rights is done in a couple of different ways. When in states where the riparian doctrine is followed, you can ultimately own water rights just by owning a property near the water in question. If a stream flows past your farm, you’re entitled to use it as long as your use doesn’t negatively impact other users in the area. However, if you live somewhere that is regulated by the prior appropriations doctrine, buying land doesn’t mean that you have access to or ownership of any water rights. They often must be purchased separately, because in places where water is scarce the prior appropriations doctrine was created to allow people to claim water on a first come, first serve basis.

Buying water rights in this situation requires you to take the time to find out who owns the rights to the water in that specific area as well as whether they are selling or not. You might be interested in buying, but some people aren’t interested in selling at times. Even if you own a property on a stream or creek bed, someone else can still hold the water rights, keeping you from using the water for any reason. A water right is a legal piece of property, and in places where water is scarce it can be the most priceless property that one can have.

Buying water rights is also further complicated by the fact that it’s hard to find people who are selling. Some states allow the use of water banks to moderate this process, but there is no real structure in place for buying water rights, which can prove to make it difficult to figure out. You need to determine which types of water rights you need, as well as what doctrine governs your area in order to determine how you will get the water rights that you deserve.

Buying water rights, once you have located a seller, is not too difficult. All that you need to do is to take the time to have the proper paperwork, research, and mapping done so that your accessibility and intended use is legally documented with your sales contract. Then, much like buying a home, once all the paperwork has been processed you simply sign the document and become an owner of water rights. Once you own them, you can sell them whenever you wish, and use them with reasonable or beneficial use.

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Buying Water Rights – Prior Appropriations Transactions

Friday, July 17th, 2009

Buying water rights in the Western states generally falls under the rules of the prior appropriations doctrine, which comes from Roman Law and the Gold Rush era when water was scarce and everyone used ‘finders, keepers’ as a way of regulating who owned or could use what resources. Water rights, under prior appropriations, are ultimately based on a priority. If you buy a property near a stream, you must also buy the water rights in order to legally use that water for beneficial use. You can’t just assume that because you own the land you can use the water. Out in the Western states where water is scarce, this is hardly the case.

Buying water rights starts with a survey and documenting your intent to apply the water use for beneficial purposes. The appropriation date, for this particular type of water rights, is the date when the intent and the action came together. Once this idea and need for appropriation is confirmed, the state authorities have the right to determine whether it is valid and to complete the sale, or to deny the sale based on various pieces of information or for any reason they feel necessary. An application is filled out that includes a legal description of the intended use and the source in question, as well as the date that the appropriation started and the amount of water that a person is claiming.
Buying water rights is not always a simple transaction. During the process, any person or entity can come forth and state their previous claim to that water, disallowing the sale for any reason. Even if someone came before you and owns the water with no real use of it, water rights are considered tangible legal property and they might want to keep it just for the sake of having it. Of course, if your water rights purchase is denied, you can appeal the decision in most cases, all the way up to the state Supreme Court.

Buying water rights can be a lengthy process. As such, there are often conditional water rights granted during the process, where priority is always outlined. An applicant has to demonstrate their reasonable diligence in getting the appropriation rights processed effectively, which basically means that you have to have continued efforts in developing and owning the water right. Once the rights are purchased or appropriated, the conditional use is terminated and full ownership of those water rights are bestowed upon the purchaser.

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Buying Water Rights – What Does it Mean?

Tuesday, July 14th, 2009

Buying water rights is something that you can do if you live in an area where you have access to available water and want the right to legally use that water for various means. When you live in an area where water is scarce, having rights to the water that you can find can make all the difference. The doctrine of prior appropriations is most commonly used in Western states, and comes from Roman and Islamic Law, as well as American Common Law. Eastern states tend to use the riparian rights doctrine, which comes from English Common Law.

Buying water rights includes understanding these documents. Ultimately, the doctrine of appropriations states that whoever used the water first has more right to go on continuing with the use of it. Established in the West, it’s no wonder that this doctrine works on a ‘finders, keepers’ basis. The riparian rights doctrine states that anyone who has ownership of land near or on a river or stream has the right to use that water, with no ownership priority. Each state has its own rights, and some states are still mixed in the rights that they stand by. Either way, neither doctrine allows for the wasteful use of water.

Buying water rights does not actually give a person ownership of the water, but a right to make use of that physical supply for which they have paid. Once the water has been put to use beneficially, it can then be seen as a vested interest. However, the property right is the only thing for sale, not the actual water supply. There are many states that do consider water rights to be actual property. Beneficial use doesn’t have an exact definition but refers to using the water in ways that will benefit people and communities, such as for growing food or making chemicals.

Buying water rights is something that anyone can do when they live in an area that water rights are available for purchase. There isn’t necessarily an exact system for buying water rights or selling them in the United States. People who need water look for those who are selling, and people who are selling are looking for buyers. Without proper water banks in place, the search for and actually buying water rights can prove to be a challenge. There are not enough people with proper education and training on selling and buying water rights, and there isn’t a solid, sustainable system in place to help those who are in need of or looking to sell their water rights, making the processed complicated at best.

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Buying Water Rights: How is it done?

Friday, May 15th, 2009

Buying water rights in Colorado can be a complex process; so complex, in fact, that it oftentimes requires a water attorney as well as a water resource engineer to ensure the transaction is properly completed. This article is not intended to replace the advice of an attorney or water professional, but rather provide you with an overview of the process of buying water rights to help you become better informed.

Water usage in Colorado falls under the system of allocation called the prior appropriation doctrine. This means that the first person to put the water to beneficial use, or the appropriator, has the senior right to the water, and that person’s water rights must be satisfied before any subsequent, or junior water rights holders, can receive water.

The Division of Water Resources, or the State Engineer’s Office, which falls under the Colorado Department of Natural Resources, is empowered to administer surface and groundwater rights throughout the state and ensure that the doctrine is enforced. The State Engineer oversees this process, assisted by seven field offices located throughout the major river basins in Colorado. These division offices employ water commissioners who go out into the field to review water allocations, issue water shut-down orders in case someone is illegally appropriating water, collecting water use and diversion data, and enforcing the decrees and water laws of the state.

The State Engineer’s Office also uses engineers and geologists to collect and analyze data on water supply to help ensure the water that is being requested for appropriation by someone buying water rights is actually available. They forecast streamflows, determine diversion requirements, review stream transit losses, determine evaporation losses, and calculate historic use and current conditions. They also operate a statewide monitoring system linked by satellites to provide real-time data on streamflows as part of flood monitoring.

All of this information is related to who can use what water where and how much, which is one of the reasons why buying water rights in Colorado is such a complex process.

The first step to buying water rights, also called appropriating water, is to demonstrate your intent to divert water, put it to a beneficial use, and show how you are going to divert the water in an open, physical manner. A physical demonstration of your intent, such as a field survey, a posting at your intended point of diversion, or a filing for a well permit application is usually enough notice to other water rights holders that you are in the process of buying water rights.

The next step in buying water rights is to file a water right application with the water court in the river basin in which you would like to divert water for your use. This application will verify your place in line behind other senior water rights holders. Water courts are District Courts comprising judges appointed by the Colorado Supreme Court. The judges in these courts hear matters exclusively related to water and are often involved when someone is buying water rights.

Once you file your application, you must publish a legal notice advising of your desire for buying water rights. Anyone who is against your application for buying water rights has two months to file a statement of opposition.

In the meantime, the Division Engineer of the water division in which you filed your application will review your request for buying water rights. That person will review your claims and make a recommendation for or against your petition for buying water rights to the water court.

If there is no opposition to your application for buying water rights, your case then goes before the presiding water court’s water referee. This person rules on most cases before their final review by the water judge. The referee will review your application for buying water rights, ask you for any clarifying information, and review the recommendation made by the Division Engineer. The referee then makes a ruling in the case, either approving or denying your application for buying water rights. There is still opportunity for someone to disagree with the referee’s ruling and file a protest. If no one files a protest and the ruling was in favor of your buying water rights, the case goes to the judge, who signs the ruling and makes it a decree of the court.

In the situation that someone protests your application or the ruling made by the referee, the case can go before the water judge for trial, similar to a criminal trial, unless the parties in disagreement can settle their differences. If the case does go to trial, the judge will make the final determination whether your application for buying water rights should be approved. Anyone involved in this case who is dissatisfied with the judge’s final ruling can appeal directly to the Colorado Supreme Court. This process can take up to two years to resolve.

If your application for buying water rights is approved, then you receive a permit to use the appropriate the amount of water as described in your application. For more information on buying water rights, please talk to the experts at Water Colorado.

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