RECOMMENDATION: 



Eliminate from the leasing statute the required approval of designated leasing 

 streams by the DNRC. 



PROBLEM: As a component of its water leasing program, FWP is funding private water 

 conservation projects in which irrigated land is being converted from flood to 

 more efficient sprinkler irrigation, hi return for FWP's one-time investment in the 

 project, which could exceed many hundreds of thousands of dollars, the developer 

 agrees to lease to FWP all water salvaged by the project at no-cost for instream 

 use. Leasing is the only legal means to ensure that salvaged water remains 

 insfream, thereby serving its intended purpose and guaranteeing FWP's 

 investment. These conservation projects can have a working life of 30 years or 

 ' more. However, the water leasing statute restricts the term of a lease of water 



made available from the development of a water conservation project to no more 

 than 20 years. The funding of large scale conservation projects potentially costing 

 hundreds of thousands of dollars are often difficult to justify if FWP's investment 

 must be recouped within 20 years and not within the life of the project, which 

 could extend for an added 10 years or more. This 20-year limitation hinders 

 FWP's ability to participate in the funding of these projects. 



RECOMMENDATION: 



Increase the term of salvaged water leases that are made available from water 

 conservation projects to the working life of the conservation project, not to exceed 

 ' 30 years. 



A-17 



