45-1002

45-1002. Water exchanges; conditions

A. A person may withdraw, divert or use water received through a water exchange
only if one or more of the following apply:

1. Neither the water exchange is in an amount nor any associated water exchange
contract provides for a water exchange in an amount exceeding fifty acre-feet in any
twelve month period. If two or more water exchanges or water exchange contracts allow
the same use at the same location, the aggregate quantity of the water exchanges and
water exchanges pursuant to the water exchange contracts may not exceed fifty acre-feet
in any twelve month period to qualify for this condition.

2. All water exchanged pursuant to the water exchange or water exchange contract is
effluent.

3. The water exchange is made pursuant to a water exchange contract enrolled under
section 45-1021 and either:

(a) The amount of water exchanged does not exceed either the maximum amount of
water exchanged in any twelve month period before 1992 or any specific maximum amount
established in the water exchange contract, whichever is more.

(b) If no water was exchanged in any twelve month period before 1992 and no
specific maximum amount of water was established in the water exchange contract, the
water to be exchanged by one of the parties is central Arizona project water for which a
subcontract was not offered by the secretary of the interior by January 1, 1992.

4. The water exchange involves surface water other than Colorado river water, and
the person who gives surface water other than Colorado river water in the exchange holds
a permit under section 45-1041.

5. The water exchange is made pursuant to a notice of water exchange filed with the
director under section 45-1051.

6. All water exchanged pursuant to the water exchange or water exchange contract is
groundwater and the exchange is between an irrigation district and an irrigation
grandfathered right holder within that irrigation district.

B. A party that gives water pursuant to a water exchange authorized under
subsection A of this section must receive the water to be exchanged for it within a
twelve month period unless one of the following applies:

1. The exchange is made pursuant to a water exchange contract enrolled under
section 45-1021 and the contract contains an explicit term providing for a longer period.

2. The exchange is made pursuant to subsection A, paragraph 6 of this section.

3. The parties to the exchange demonstrate to the director that the water to be
received cannot be delivered within the period allowed for the exchange or that the water
to be received cannot reasonably be put to beneficial use within the period allowed for
the exchange. On this demonstration the director may grant an extension of six months if
the director has determined that the extension is consistent with the goal of efficient
water management and does not impair vested rights to the use of water.

4. The exchange is between a multi-county water conservation district established
pursuant to title 48, chapter 22 and an agricultural improvement district established
pursuant to title 48, chapter 17 and the exchange involves surface water that is stored
in reservoirs that are operated by the agricultural improvement district.