Kansas Statutes 82a-763. Water bank authority; deposits and leases; safe deposit accounts; restrictions
(a) A water bank shall be authorized to enter into contracts with holders of water rights for deposit in the bank of all or a portion of any water right from a hydrologic unit within the bank boundary, subject to the following:
(1) The bank shall accept for deposit only a water right, or portion of a water right, that has been determined to be a bankable water right under Kan. Stat. Ann. § 82a-764, and amendments thereto;
Terms Used In Kansas Statutes 82a-763
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Bank boundary: means the geographic area where a water bank operates and conducts the functions of a water bank and may encompass more than one hydrologic unit. See Kansas Statutes 82a-762
- Bankable water right: means a water right that has been determined pursuant to Kan. See Kansas Statutes 82a-762
- Chief engineer: means the chief engineer of the division of water resources of the Kansas department of agriculture. See Kansas Statutes 82a-701
- Contract: A legal written agreement that becomes binding when signed.
- Hydrologic unit: means a defined area from which water rights authorizing diversion of water from a source of supply may be deposited and from which water from the same source of supply may be leased, in accordance with the provisions of this act, without causing impairment of existing water rights or a significantly different hydrological effect to other users of water from the same source or hydraulically connected sources of supply. See Kansas Statutes 82a-762
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Linked water rights: means two or more water rights that authorize common points of diversion or a common place of use, or both. See Kansas Statutes 82a-762
- Safe deposit account: means a personal account held in a water bank where unused water from a bankable water right is placed for use in future years. See Kansas Statutes 82a-762
- Water bank: means a private not-for-profit corporation that: (1) Leases water from water rights that have been deposited in the bank; and (2) provides safe deposit accounts. See Kansas Statutes 82a-762
- Water right: means any vested right or appropriation right under which a person may lawfully divert and use water. See Kansas Statutes 82a-701
(2) a deposit of a groundwater water right shall be for a period of not more than five years;
(3) a deposit shall be subject to such terms and conditions as provided by the contract between the bank and the depositor, including penalty provisions for breach of any contract conditions; and
(4) a deposit shall be subject to such terms and conditions, and such approval by the chief engineer, as provided by rules and regulations of the chief engineer.
(b) A water bank shall be authorized to lease water from any water right, or portion of a water right, that has been deposited in the bank, subject to the following:
(1) Any water leased must be used within the bank boundary and in the same hydrologic unit from which the water right authorizing diversion of the water is deposited;
(2) use of leased water shall be subject to all provisions of the Kansas water appropriation act, including, but not limited to, all requirements relating to term permits;
(3) a lease shall be subject to such terms and conditions as provided by the contract between the bank and the lessor, including penalty provisions for breach of any contract conditions;
(4) a lease shall be subject to such terms and conditions, and such approval by the chief engineer, as provided by rules and regulations of the chief engineer; and
(5) a water bank’s decision of whether or not to lease water shall not be based on the proposed use of the water.
(c) A water bank shall provide safe deposit accounts where a holder of a water right may place unused water from the water right for future withdrawal, subject to the following:
(1) A water right holder shall place in a safe deposit account only water from a water right that has been determined to be a bankable water right under Kan. Stat. Ann. § 82a-764, and amendments thereto;
(2) only water that was unused in the immediate past calendar year may be placed in a safe deposit account and the amount that shall be placed in such account shall be less than the total amount of unused water from the bankable water right in that year;
(3) only water from one water right shall be placed in a safe deposit account and water from a water right shall not be placed in more than one safe deposit account, except that water from linked water rights may be placed in a single safe deposit account;
(4) each calendar year that water remains in a safe deposit account, the amount of water held in the account shall decrease by a percentage established by the charter of the bank but in no case less than 10% annually of all amounts placed in the account;
(5) the total amount of water accumulated in a safe deposit account shall not exceed the maximum annual quantity authorized to be diverted under the water right or the aggregate maximum quantity authorized to be diverted under all linked water rights from which water is deposited in the account;
(6) use of water withdrawn from a safe deposit account shall be subject to all provisions of the Kansas water appropriation act, including, but not limited to, all requirements relating to term permits;
(7) a safe deposit account shall be subject to such terms and conditions as provided by the contract between the bank and the account holder, including penalty provisions for breach of any contract conditions;
(8) a safe deposit account shall be subject to such terms and conditions, and such approval by the chief engineer, as provided by rules and regulations of the chief engineer; and
(9) the operation of safe deposit accounts by the bank shall not result in an increase in the amount of net consumptive use of water in any hydrologic unit, computed on a long-term rolling average compared to a representative past period.
(d) A water bank may provide services to facilitate the sale or lease of water rights.
(e) A water bank shall not own, buy or sell water rights.