Tuesday, January 8, 2019

New Policy Regarding Depletion Limitations on Certificates

On December 28, 2018, the State Engineer issued a new policy regarding depletion limitations on certificates. The policy reiterates that when a new certificate is issued for a newly appropriated water right or for a change application, the certificate sets limitations for diversion and depletion amounts. Once the depletion limits are set through a certificate, the depletion limits cannot revert to their prior (and higher) amounts.

Consider the following example. A landowner has an irrigation water right that allows him to divert 1 acre-foot to irrigate 0.25 acres. This water right has a depletion limit of 0.5 acre-feet, based on a 50% depletion rate for irrigation in the area. The landowner files a change application to allow the water to be used for the domestic use of 1 home (0.45 acre-feet of diversion) and irrigation of 0.1375 acres (0.55 acre-feet of diversion). The diversion limit would remain 1 acre-foot, but the depletion limit would be reduced from 0.5 acre-feet to 0.365 acre-feet ((0.45 acre-feet of domestic use x 20% depletion rate) + (0.55 acre-feet of irrigation use x 50% depletion rate)). The change application is then approved and certificated. Later, the home burns down, and the landowner files a new change application to revert the water right back to irrigation. The new, lower depletion rate will limit the amount of irrigation. In other words, the landowner will no longer be able to divert 1 acre-foot to irrigate 0.25 acres, but will only be able to irrigate 0.1825 acres with a diversion limit of 0.73 acre-feet and a depletion limit of 0.365 acre-feet.

To read the full policy, click here.

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