64672 Cook Ave.
Suite #1,
Bend OR 97701

Phone: 541-388-0658
Fax: 541-389-0433

Email: sid@swalley.com


POLICIES

NON-USE POLICY
Adopted by Swalley Irrigation District Board of Directors March 19, 2008

GENERAL POLICY STATEMENT
State law (see attached references) provides that when lands within the district boundaries are no longer irrigated or susceptible to irrigation, the district may remove and apply the certificated water right to other irrigable lands within the district. A district transfer under these circumstances can occur only pursuant to a well-defined system of laws and rules providing due process. The intent of state law and this policy is to protect the district’s water rights, thereby maintaining adequate flows for conveyance and delivery, and to protect the financial integrity of the district.

All water rights must be put to beneficial use on all lands to which they are appurtenant at least once every 5-year period. ORS 540.610. Whenever all or part of a water right is not used for a period of five successive years, the law establishes a “rebuttable presumption of forfeiture of all or part of the water right.” ORS 540.610(1). However, ORS 540.612 provides an exemption from forfeiture when a district petitions to transfer a water right otherwise subject to forfeiture to other irrigable lands in the district prior to the end of the fifth year of non-use. The process for “involuntary” district transfers under these circumstances is outlined at ORS 540.572-.578.

It is the intent of the district to work with its users to maintain the validity of the water rights appurtenant to each landowner’s property. In that regard, the district will notify the landowner when it appears that beneficial use has not been made and advise the landowner of potential means by which to protect the right from forfeiture. The primary focus of the district is to protect and maintain the right on the current property, but if that cannot be accomplished, the district will work with the landowner to pursue other options. When all options fail, then the district will use the available process to move the water right to other irrigable lands in the district.

DISTRICT REVIEW PROCESS

GIS Record
The district maintains a Geographic Information System (GIS) showing the location and the amount of acres of the district’s state certificated water right as it applies to each property within the district. The district will provide a copy of this GIS map to any landowner making a request for a map of the landowner’s specific property. (A nominal cost fee may be charged.) To maintain a record of use relative to the mapped acreage, the district utilizes flyovers conducted by the Natural Resources Conservation Service.

Field Review
In addition, district field staff reviews properties each year during the irrigation season to determine if full use of the water right is being maintained as required by law. The district then provides notice to landowners where there appears to be less than full beneficial use. All reviews will be documented by December 31 of each year. In the first month of the following year, landowners will be notified of any observed deficiencies in use.

Notice Procedure
Included with the above notice, the district will outline options available to landowners to protect the water rights appurtenant to their property. By providing notice in January, it is expected that the irrigator will take corrective measures prior to the next-following irrigation season.

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MEASURES FOR RELIEF

If for any reason the landowner is unable to make full beneficial use of the water right appurtenant to the landowner’s property, the landowner may consider the following methods of avoiding potential forfeiture and involuntary district transfer:

1) Transfer to other irrigable lands
At any time, a landowner may request that the district transfer an appurtenant water right from the landowner’s property to other irrigable lands within the district. However, as a precondition to transfer, state law requires that full use of the water right must have occurred within the previous 5-year period. Likewise, per district transfer policy adopted pursuant to state law, certain district requirements must also be met, including but not limited to full payment of all district assessments and reimbursement for the cost of transfer, including the costs of any required mapping to support the transfer application. Upon completing the transfer, the new landowner of the property to which the transferred water right is then appurtenant will be liable for the assessment.

When transferring water rights, the landowner may (i) identify the lands to which the right will be transferred, or (ii) utilize the district’s list of landowners who have identified a need for additional water. In either event, the parties may set their own financial terms for the transfer and costs involved.

The landowner may also convey by quitclaim deed whatever interest the landowner has in the water right to the district at current identified cost. The district will then attempt to place that water right on other lands within the district as need becomes available and the new user must reimburse the district purchase cost. Upon quitclaim validation, the assessment payment is no longer required of the landowner quitclaiming his or her interest in the water right.

2) Temporary instream lease
The district works in coordination with the Deschutes River Conservancy (DRC) to lease water rights instream which would otherwise go unused in any given year.

Subject to district approval, the lease must be consummated prior to March 1 of the given year. The lease must not impair the district’s ability to serve the lands on the portion of the delivery system where the water would be removed for instream use. The district will not unreasonably withhold its approval but will consider injury to other water users in its analysis. Leases may be from 1 to 5 years in length and require both district and DRC approval.

Current assessments must be paid in full prior to lease approval. The district also has an administrative fee for the first year of the lease to cover mapping costs related to the leasing process. DRC sets the terms as to how much DRC will pay the landowner for the leased water and for coverage of administrative fees.

While the water is leased instream, it is considered to be “beneficially used.” The lease process protects against potential forfeiture for non-use.

3) Other Options
The district will consider other options proposed by the current landowner that comply with
state law and district policy.

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FOURTH YEAR OF NON-USE

Following the fourth year of non-use, the district will initiate the state process for involuntary district transfer.

Notice
All landowners with a documented 4 consecutive years of non-use shall receive a notice from the district clearly reciting (a) OAR 690-385-5000 through -5800, (b) options available to the user to protect the water right from forfeiture, and (c) the district’s right to petition the Oregon Water Resources Department (OWRD) to transfer the water right if it is not put to full beneficial use within the 5th year or is not otherwise protected from forfeiture. The district will forward a copy of the notice to any security interest holder of record (mortgagor or other party identified on the deed filed with the county). The district shall also provide a copy of the notice to OWRD.

Documentation
As available, the district may provide any of the following documentation of non-use upon request of the user, including: dated aerial photos from Bend Mapping or the NRCS, district photos, district GIS information, affidavit(s) from field staff, affidavit(s) by the state watermaster, and affidavit(s) from neighbors.

Correction
If during the fifth consecutive year’s irrigation season the landowner does not take action to protect the water right from forfeiture by:

1) filing a transfer application prior to September 1st of the 5th year;
2) conveying any interest in the water right to the district by quitclaim deed prior to September 1st of the 5th year;
3) leasing the water instream prior to March 1st of the 5th year;
4) or protecting the water right by some other means, as approved by the district, prior to September 1st of the 5th year;

then the district will send notice to the landowner and any security interest holder of record, by September 15th of the 5th year of non-use, that the district intends to petition OWRD to transfer the water right to other lands within the district. The notice will be mailed to the landowner’s last-known address, with a return receipt requested, and will otherwise meet all requirements of ORS 540.572(4).

The landowner must submit written objections to the district’s notice, if at all, within 30 days after the notice is mailed. If the district does not receive written objections within 30 days of mailing the notice, the District may petition OWRD to transfer the water right.

If, on the other hand, the landowner timely submits written objections, the district manager will first attempt to resolve the matter. If the district manager’s attempts prove unfruitful, the district will hold a hearing at its October or November board meeting of that year to determine whether to proceed with the petition. At that hearing the landowner may offer reasons that the district should not petition OWRD to transfer the water right, including any evidence that would rebut the presumption of forfeiture for nonuse pursuant to ORS 540.610(2). Following such hearing, the district may, in its discretion, petition OWRD to transfer the subject water right.

If the district chooses to petition OWRD to transfer the subject water right, the district will send a copy of the petition with a map of the property to the landowner. The landowner may appeal to the Water Resources Commission within 60 days following such notice, and may request a hearing before the Commission to refute the presumption of forfeiture. ORS 540.578.

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LAWS APPLICABLE TO PETITION FOR NON-USE

OREGON REVISED STATUTES
540.610 Use as measure of water right; presumption of forfeiture of right for nonuse; basis for rebutting presumption; confirmation of rights of municipalities. (1) Beneficial use shall be the basis, the measure and the limit of all rights to the use of water in this state. Whenever the owner of a perfected and developed water right ceases or fails to use all or part of the water appropriated for a period of five successive years, the failure to use shall establish a rebuttable presumption of forfeiture of all or part of the water right.
[540.610 (2)(a) through (n) define bases for rebutting the presumption of forfeiture for non-use.]
540.612 Exemption from forfeiture for right subject to petition filed under ORS 540.574. If a district, as defined in ORS 540.505, petitions for a transfer as provided in ORS 540.574 no later than the end of the calendar year of the fifth year of nonuse under ORS 540.610 (1), the forfeiture provisions of ORS 540.610 shall not apply to the lands from which the water right is sought to be transferred pending approval of the district’s petition. The time required for the processing of the petition, including any time required for hearings, appeals and completion of an authorized change, shall not be included when computing a five-year period of nonuse under the provisions of ORS 540.610 (1). [1991 c.957 §11]
540.572 Application of certificated water to other irrigable land within district; notice of intent to transfer
540.574 Petition for approval of transfer
540.576 Notice of petition; protest; user rights
540.578 Filing of protest; hearing on proposed transfer
OREGON ADMINISTRATIVE RULES
690-385-5000 District Permanent Transfer Criteria
690-385-5100 Notice of Nonuse of Water Right and Intent to Transfer Pursuant to ORS 540.572
690-385-5200 District Permanent Transfer of Water Right for Nonuse Applications
690-385-5300 District Permanent Transfer of Water Right for Nonuse Application Map-Requirements
690-385-5400 Notice of Filing District Permanent Transfer of Water Right for Nonuse Application
690-385-5500 District Permanent Transfer of Water Right for Nonuse Application Notice and Review
690-385-5600 District Permanent Transfer of Water Right for Nonuse Approval and Final Orders
690-385-5680 Original Right Terminated by Final Order
690-385-5700 Protests and Requests for Hearings
690-385-5800 Hearings
690-385-5900 Time Period to Process Permanent Transfer Application Exempt from Forfeiture

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