CHAPTER 2. MINIMUM STREAM FLOW AND WATER SALE CONTRACTS
IC 14-25-2
Chapter 2. Minimum Stream Flow and Water Sale Contracts
IC 14-25-2-1
Provision of minimum stream flow; sale of water
Sec. 1. (a) Except as provided in section 8 of this chapter, thecommission may provide certain minimum quantities of stream flowor sell water on a unit pricing basis for water supply purposes fromthe water supply storage in reservoir impoundments or parts of theimpoundments that are financed by the state. The water may be madeavailable for direct withdrawal from the reservoir impoundment orreleased from the reservoir impoundment to create increased flowagebeyond normal stream flow for use by the contracting party orpurchaser at a downstream point. The withdrawals or releases maynot exceed the storage allocated to water supply purposes in theauthorizing legislation for water supply or multiple purpose reservoirprojects.
(b) This section does not abrogate, limit, or affect in any mannerprior or future sales of water from reservoirs constructed for or bythe department in which adequate water for incidental water supplypurposes is available.
As added by P.L.1-1995, SEC.18.
IC 14-25-2-2
Contracts on unit pricing basis
Sec. 2. (a) Except as provided in section 8 of this chapter andsubject to section 2.5 of this chapter, the commission may contractwith a person for the provision of certain minimum quantities ofstream flow or for the sale of water on a unit pricing basis. Acontract for the provision of minimum stream flows or for the sale ofwater on a unit pricing basis:
(1) must be executed by the commission; and
(2) is subject to approval by the following:
(A) The attorney general.
(B) The governor.
(C) The person desiring the use.
(b) A contract entered into under this chapter may not cover aperiod of more than fifty (50) years.
(c) Before the submission of the contract to the governor forapproval, the commission shall submit a copy of the contract to thedepartment. The department shall, within twenty (20) days of receipt,do the following:
(1) Prepare a memorandum relative to the effect that thecontract might have on recreational facilities.
(2) Submit the memorandum to the governor for the governor'sconsideration.
As added by P.L.1-1995, SEC.18. Amended by P.L.231-2007, SEC.1.
IC 14-25-2-2.5
Request for water from reservoir; notice of request and public
meeting; affected water utilities
Sec. 2.5. (a) As used in this chapter, "water utility" means:
(1) a public utility (as defined in IC 8-1-2-1(a));
(2) a municipally owned utility (as defined in IC 8-1-2-1(h));
(3) a not-for-profit utility (as defined in IC 8-1-2-125(a));
(4) a cooperatively owned corporation;
(5) a conservancy district established under IC 14-33; or
(6) a regional water district established under IC 13-26;
that provides water service to the public.
(b) A person that seeks to contract with the commission for theprovision of certain minimum quantities of stream flow or the sale ofwater on a unit pricing basis under section 2 of this chapter mustsubmit a request to the commission and the department. Thecommission shall not make a determination as to whether to enterinto a contract with the person making the request until:
(1) the procedures set forth in this section have been followed;and
(2) the commission has reviewed and considered each reportsubmitted to the commission under subsection (i).
(c) Not later than thirty (30) days after receiving a request undersubsection (b), the department shall provide, by certified mail,written notice of the request to the following:
(1) Each person with whom the commission holds a contractfor:
(A) the provision of certain minimum quantities of streamflow; or
(B) the sale of water on a unit pricing basis;
as of the date of the request.
(2) The executive and legislative body of each:
(A) county;
(B) municipality, if any; and
(C) conservancy district established under IC 14-33, if any;
in which the water sought in the request would be used.
(3) The executive and legislative body of each:
(A) county;
(B) municipality, if any; and
(C) conservancy district established under IC 14-33, if any;
in which the affected reservoir is located.
(d) Not later than seven (7) days after receiving a notice from thedepartment under subsection (c), each person described in subsection(c)(1) shall, by certified mail, provide written notice of the requestto each:
(1) water utility; or
(2) other person;
that contracts with the person described in subsection (c)(1) for thepurchase of water for resale. Each person to whom notice is mailedunder this subsection is in turn responsible for providing writtennotice by certified mail to each water utility or other person thatpurchases water from that person for resale. A water utility oranother person required to provide notice under this subsection shall
mail the required notice not later than seven (7) days after it receivesnotice of the request from the water utility or other person fromwhom it purchases water for resale.
(e) At the same time that:
(1) a person described in subsection (c)(1); or
(2) a water utility or another person described in subsection (d);
mails any notice required under subsection (d), it shall also mail tothe department, by certified mail, a list of the names and addressesof each water utility or other person to whom it has mailed the noticeunder subsection (d).
(f) In addition to the mailed notice required under subsection (c),the department shall publish notice of the request, in accordance withIC 5-3-1, in each county:
(1) in which a person described in section (c)(1) is located;
(2) in which the affected reservoir is located;
(3) in which the water sought in the request would be used; and
(4) in which a water utility or other person included in a listreceived by the department under subsection (e) is located.
Notwithstanding IC 5-3-1-6, in each county in which publication isrequired under this subsection, notice shall be published in at leastone (1) general circulation newspaper in the county. The departmentmay, in its discretion, publish public notices in a qualifiedpublication (as defined in IC 5-3-1-0.7) or additional newspapers toprovide supplementary notification to the public. The cost ofpublishing supplementary notification is a proper expenditure of thedepartment.
(g) A notice required to be mailed or published under this sectionmust:
(1) identify the person making the request;
(2) include a brief description of:
(A) the nature of the pending request; and
(B) the process by which the commission will determinewhether to enter into a contract with the person making therequest;
(3) set forth the date, time, and location of the public meetingrequired under subsection (h); and
(4) in the case of a notice that is required to be mailed undersubsection (c)(1) or (d), a statement of the recipient's duty to inturn provide notice to any:
(A) water utility; or
(B) other person;
that purchases water for resale from the recipient, in accordancewith subsection (d).
(h) The advisory council established by IC 14-9-6-1 shall hold apublic meeting in each county in which notice is published undersubsection (f). A public meeting required under this subsection mustinclude the following:
(1) A presentation by the department describing:
(A) the nature of the pending request; and
(B) the process by which the commission will determine
whether to enter into a contract with the person making therequest.
(2) An opportunity for public comment on the pending request.
The advisory council may appoint a hearing officer to assist with apublic meeting held under this subsection.
(i) Not later than thirty (30) days after a public meeting is heldunder subsection (h), the advisory council shall submit to thecommission a report summarizing the public meeting.
As added by P.L.231-2007, SEC.2. Amended by P.L.3-2008,SEC.102.
IC 14-25-2-3
Rate of compensation
Sec. 3. A contract for the sale of water on a unit pricing basis thatis entered into under this chapter or under IC 13-2-1-7 (before itsrepeal) after June 30, 1991, must provide for compensation to thestate at the rate of thirty-three dollars ($33) per one million(1,000,000) gallons of water.
As added by P.L.1-1995, SEC.18.
IC 14-25-2-4
Water resources development fund
Sec. 4. (a) As used in this section, "fund" refers to the waterresources development fund created by this section.
(b) The water resources development fund is created. Money paidto the state under a contract entered into under this chapter shall bedeposited in the fund.
(c) The proceeds of the fund do not revert to the state general fundbut constitute a revolving fund to be used exclusively for thepurposes of this chapter.
(d) The treasurer of state shall invest the money in the fund notcurrently needed to meet the obligations of the fund in the samemanner as other public money may be invested. Interest that accruesfrom the investments shall be deposited in the fund.
(e) Money in the fund may be used for any of the followingpurposes:
(1) The development of new reservoirs.
(2) The investigation, development, and improvement ofexisting reservoirs.
(3) The acquisition of easements or purchase in fee simple ofland and property to be used as reservoir sites.
(4) The financing, construction, operation, and maintenance ofreservoir impoundments or parts of impoundments for watersupply storage and uses, either independently or in cooperationwith any person.
(5) The investigation of water resource availability, quality, andwater supply needs.
(6) Watershed protection.
(7) River enhancement.
(8) The preparation of a compilation and mapping of all
community public water supplies under IC 14-25-7-13(d).
(9) The operation of the division of water.
(f) The department shall administer the fund.
As added by P.L.1-1995, SEC.18. Amended by P.L.184-1995, SEC.1;P.L.186-2003, SEC.68.
IC 14-25-2-5
Adoption of rules
Sec. 5. The commission shall adopt rules under IC 4-22-2 that areconsidered necessary for the proper administration of the following:
(1) The water resources development fund.
(2) This chapter.
As added by P.L.1-1995, SEC.18.
IC 14-25-2-6
Employment of personnel
Sec. 6. The commission may, subject to the approval of the budgetagency, employ personnel necessary for the efficient administrationof this chapter.
As added by P.L.1-1995, SEC.18.
IC 14-25-2-7
Contracts entered into before July 1, 1991, binding
Sec. 7. Except as provided in section 8 of this chapter, a contractfor the sale of water on a unit pricing basis that was entered intounder this chapter before July 1, 1991, is binding upon thecommission. However, notwithstanding the terms of the contract, therate of compensation for water sold under the contract on a unitpricing basis is thirty-three dollars ($33) per one million (1,000,000)gallons of water.
As added by P.L.1-1995, SEC.18.
IC 14-25-2-8
Primary source of water; compensation not required
Sec. 8. The state may not require compensation for water that:
(1) comes from a reservoir impoundment financed by the state;and
(2) is provided to water users in an area in which the outlet ofthe reservoir impoundment has been the primary source ofwater for domestic, industrial, and public use for at least fifty(50) years.
As added by P.L.1-1995, SEC.18.
IC 14-25-2-9
Primary source of water; contracts entered into before July 1,1991, binding
Sec. 9. A contract that:
(1) was entered into under IC 13-2-1-7 (before its repeal) beforeJuly 1, 1991; and
(2) provides for the sale of water on a unit pricing basis in an
area described in section 8 of this chapter;
is binding upon the commission. However, the opposite party to thecontract is not required to pay compensation to the state for waterprovided in the area.
As added by P.L.1-1995, SEC.18.
IC 14-25-2-10
Primary source of water; contracts on measured basis
Sec. 10. The commission may enter into contracts under thischapter to provide certain minimum quantities of stream flow or toprovide water on a measured basis in an area described in section 8of this chapter. However, the opposite party to the contract is notrequired to pay compensation to the state for water provided in thearea described in section 8 of this chapter.
As added by P.L.1-1995, SEC.18.
IC 14-25-2-11
Compensation owed by conservancy districts
Sec. 11. (a) As used in this section, "conservancy district" refersto a conservancy district established under IC 14-33 or underIC 13-3-3 (before its repeal) for the purpose of furnishing watersupply for domestic, industrial, and public use.
(b) The state may not obtain compensation from a conservancydistrict under a contract for the sale of water on a unit pricing basisupon the basis of an estimate of the quantity of water provided to theconservancy district.
(c) The calculation of the compensation owed by a conservancydistrict under a contract must be based upon either of the following:
(1) The measurement of the quantity of water provided to theconservancy district.
(2) The measurement of the water furnished by the conservancydistrict to the persons who obtain water from the conservancydistrict, with a reasonable allowance made for water lost by theconservancy district in the process of obtaining, treating, andfurnishing the water.
(d) This section does not affect the obligation of a conservancydistrict to pay a minimum yearly fee in a certain amount establishedby a contract.
As added by P.L.1-1995, SEC.18.