The dq)artment made the following recommendations in its final report: 



• Reauthorize the water leasing statute, malting it pemnanent (i.e. remove the sunset provision) 



• Eliminate the 20-stream limitation from the water leasing statute 



• Eliminate from the leasing statute the required approval by DNRC of designated leasing streams 



• Increase the tenn 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 



These recommendations, and the DFWP's rationale, are listed on pp. 16-17 of Appendix A. 



The Commission adopted the department's final report, including these conclusions and 

 recommendations. The DNRC also adopted the report, and endorsed the above recommendations. 

 (Documentation of DNRC approval of the DFWP report, and the DNRC rationale for supporting the 

 DFWP recommendations, are included in Appendix D.) 



Water Policy Subcommittee/EQC 



The EQC's Water Policy Subcommittee concluded the following regarding the DFWP water leasing 

 study, and its progress since enactment in 1989: 



• The DFWP has done a good job in acquiring leases under the study program, althougii it has been 

 slow. It took the department a long time to get started. Initially, it tended to pick easier targets; it 

 could have done more. With that said, it has done a reasonable job. 



• It is important to remember that the program was initiated in 1 989, just after the 1 988 drought. 

 There had been pictures of dead fish in newspapers all over the state. Since then, drought has not 

 been as much a problem. If, however, drought conditions retum to Montana, instream flow could 

 again become a hiuge front-bumer issue. In that context, it is a bit disappointing the DFWP hasn't 

 obtained more leases, though it should be congratulated for what it has accomplished. 



• There are still concems, though) fewer, about the concept of water leasing, especially from the 

 agricultural community in iieadwaters areas who feel retum flow is a significant contributor to late- 

 season flows, and that leasing might impair retum flow that could otherwise be available to 

 downstream users. 



• It would be detrimental to Montana's water and fishery resources if this program were allowe d to 

 expire due to an initial bill proposal that was so controversial that it had a risk of not passing. EQC 

 legislative members have personal experience in losing entire bills due to an aggressive 

 introduction. The subcommittee opts for a conservative concept upon introduction, as the minimum 

 acceptable approach, rather than risk losing the entire program to a sunset clause. We 

 acknowledge and encourage others to use the legislative committee hearing and amendment 

 process to further test the waters on additional changes to the DFWP's water leasing statutes. 



10 



EQC/DFWP 1998 Water Leasing Report 



