The process of water leasing was slow due to many people's hesitation to participate in such a 

 program. The first two leases went into effect in 1993, both on Mill Creek. In 1994, one lease was 

 obtained on Blanchard Creek. In 1995, four leases were obtained at Cedar Creek, Hells Canyon Creek, 

 Tin Cup Creek and Mill Creek. Two more leases were obtained in the Blackfoot drainage (on 

 Chamberlain and Pearson Creeks) in 1996. These leases have improved fish habitat by keeping water 

 in the creeks during the irrigation season, and increasing flows to improve spawning conditions. The 

 leasing program also assists users with such projects as installing fish screens to prevent small fish 

 fi-om moving into irrigation works, and converting flood irrigation, where appropriate, to sprinkler 

 irrigation. 



Mr. Spence explained that leasing is one tool which FWP uses to work with water users for the purpose r;( 

 of improving water flows. The Department hopes to continue obtaining leases in the fiiture. Although 

 they had approximately 85 interested parties at that time, there is a need to be very selective with the 

 leases they choose. The Department would like to see the statute renewed in 1999 for this purpose. 



Private Party Instream Flow Program 



Bruce Farling, representing Montana Trout Unlimited, presented information on the private party 

 instream flow program - also known as that created via 1995 passage of HB 472, the private leasing 

 bill. He noted that this legislation was the result of eight months of negotiations between Trout 

 Unlimited, the Montana Wildlife Federation, and the four main agricultural groups in the state 

 (Montana Stockgrowers' Association, Montana Water Resource Association, Montana Association of 

 Conservation Districts, and the Montana Farm Bureau Federation). In addition to water leasing, the 

 bill allowed landowners to temporarily change the use of an appropriated right to instream flows. In 

 this manner, water does not need to be leased. 



The details of the private leasing bill were listed on a handout presented to the Council (see attached). 

 The handout explains that when private parties temporarily lease an appropriated right, only water that 

 is historically consimied, as in evaporation or plant transpiration, is left instream. Thus downstream 

 users depending on return flow fi-om their upstream neighbors, are not affected. Any appropriator 

 considering a change must have a public notification of that intent in a local newspaper at least 30 days 

 before the application is submitted to the DNRC. Other appropriators are allowed to file objections 

 related to that change before approval. The handout also explains that the provision will simset in 

 2005, although it can be continued for an additional ten years if approval is granted before the simset 

 date. 



Mr. Farling stated that Trout Unlimited obtained the first lease in Montana of a private water right for 

 instream flow purposes. This lease involved a tributary of Nine Mile Creek on the middle Clark Fork. 

 Seven landowners involved in the contract leased the area for one dollar. The focus of this action will 

 be to improve juvenile rainbow and cutthroat trout in the Clark Fork system. Other potential leasing 

 sites around the state include the Bozeman and Livingston areas. Mr. Farling added that he prepared a 

 rough screening process for possible leases. He feels the present process needs to be streamlined via 

 some minor changes in the legislation, to be more cost effective for the people working on the leases. 



Mr. Farling felt that one challenge facing the private party instream flow program is the need for more 

 promotional help fi-om agriculture in the area of peer promotion. The private party instream flow 



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