Water Exchanges 



Water exchanges may be an option to provide for future 

 water development in the Clark Fork Basin. Three possibilities 

 are discussed, including: 1) contracting for water from existing 

 storage facilities, 2) sever and sell of existing water rights, 

 and 3) leasing by the state or private parties. 



There are a number of storage facilities in the Clark Fork 

 Basin whose releases satisfy existing water needs when the 

 natural water supply cannot. While the storage capacity of many 

 of these reservoirs may already be committed to supply the needs 

 of existing users, others may have water available for purchase. 

 For example, the state-owned Painted Rocks Project on the West 

 Fork of the Bitterroot River has had water available for purchase 

 under contract for some time. 



Water purchased from storage can be used in two ways. 

 First, released water can be diverted directly by a user who is 

 physically located downstream of the facility. Second, stored 

 water can be purchased to replace water that would be depleted 

 because of a new use higher in the drainage. The new user 

 purchases the water and arranges for its release to eliminate the 

 impact of the new use on a downstream right. Whether this 

 approach can be taken depends on the existence of a storage 

 facility above the affected senior appropriator. 



New users can also buy existing water rights and change the 

 use and source of supply. This new water development, however, 

 cannot adversely affect any senior or junior water users and must 

 be approved by DNRC. There must be a willing buyer and a willing 

 seller, and the transfer must satisfy the criteria under Montana 

 law. Many western states have already implemented this approach 

 to provide for new uses after basins become fully appropriated. 

 The large hydropower facilities in Montana may be willing to 

 sever and sell part of their water rights. This latter option 

 may be feasible if it is based on the power company's demand for 

 power (e.g., surplus power) and its ability to recover the lost 

 hydropower revenues. 



For flows greater than 4,000 AF and 5.5 cfs, the DNRC 

 currently has the authority to lease a limited volume of water 

 from existing and future state, federal, and private reservoirs. 

 For most of those reservoirs, the DNRC is the only entity that 

 can lease water if they are included in a temporary preliminary 

 decree, a preliminary decree, or a final decree. The DNRC must 

 also acquire the water rights in its own name or enter into an 

 agreement with or purchase the water from the entity holding the 

 water right. Thus, the DNRC has the ability to lease stored 

 water for future uses. Legislative action would be required for 

 private parties to lease their rights. However, at this time, it 



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