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What is a water lease?
A water lease is a lease of the owner's right to use surface water based either upon a natural flow
water right or upon a storage use right or both.
How long does a water lease last?
The length of the lease is entirely up to the parties entering into the lease with limited exceptions. Presently,
state law allows a lease of up to 30 years with the option to renew for an additional 30 years.
If I have water that I would like to lease, how much do I get paid?
The amount to be paid under a lease for
the use of a water right is entirely dependent upon what terms that can be worked out between the owner of the water right and the person who would like to lease it. NWU, Inc. is in the process of developing a list of
"appraisers" who can provide guidance regarding the value of water leases.
When do I get paid if I enter into a lease of my water rights?
The first year's lease payment is to be put into escrow and will be
released to the owner of the water right upon approval of the lease and transfer of use by the Department of Natural Resources (DNR). A request for the transfer of the location of use has to be submitted to the DNR and upon the
approval by DNR of the transfer, the lease is then approved and the first year's payment can be released from escrow.
How do I get paid?
As noted in the preceding question, the first year's payment will be
in escrow and will be paid once the lease and transfer is approved by the Department. Subsequent years' payments will need to be paid directly from the person leasing the water right to the owner of the water right.
From the time that I agree to lease the water right until the lease and transfer is approved by the Department of Natural Resources, can I still continue to use my water right?
Yes.
If I enter into a lease
of my water right, will my water right be subject to cancellation?
No
How is the amount of water to be leased determined?
The amount to be leased will vary depending upon how far away the new
water use is to occur. For the simplest leases and transfers, the amount will be the amount historically used by the owner. For leases and transfers that involve a longer distance, under state law, only the amount of water
consumed in the past will be able to be transferred. The consumptive use will have to be determined by approved techniques, typically applied through an engineer.
What papers do I have to sign?
Initially, a
registration with NWU's "Water Log" will be necessary. Secondly, a Lease Agreement will need to be signed between the person owning the water and the person wanting to use it. Depending upon the circumstances, other documents
may be necessary.
If I am leasing a water right from its present owner, how do I get the right to use the water moved to where I need it?
An application will have to be filed with the Department of Natural
Resources requesting the transfer of the location of use of the water from its current use location to where the new user would like to be able to have the water used.
How much does it cost to get the transfer approved?
The cost will vary substantially based upon how complicated the change in location is.
Costs will include having the amount of consumptive use calculated in those cases where that is required and the cost to investigate what other factors have to be taken into account as required by state law. Additionally, the cost to prepare and file the necessary paperwork by an attorney may also be necessary.
If the transfer is contested or resisted, the cost to proceed to a hearing would necessarily increase the cost of the transfer proceeding.
What is Nebraska Water Users, Inc.'s role?
Nebraska Water
Users, Inc. is registering people who have water that they are willing to lease to others and is maintaining a separate registry of people who want to lease water.
NWU will maintain this registry and attempt to match people who have water and people who need it. NWU will also facilitate communication between people who have water and people who need it in order to assist them in reaching a mutually satisfactory agreement. NWU is also preparing standard leases and is in the process of developing a list of water appraisers, an engineering firm that can assist in necessary calculations and a law firm which is familiar with these transactions.
Why has NWU created the "Water Log"?
NWU is a non-profit organization but will be charging for registrations. The cost of the registrations is only intended to cover the costs of the services. NWU is
providing this service in an effort to protect and enhance the value of water rights in Nebraska and has undertaken the development of the Water Log solely as a public service.
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