CHAPTER 5. EMERGENCY REGULATION OF SURFACE WATER RIGHTS
IC 14-25-5
Chapter 5. Emergency Regulation of Surface Water Rights
IC 14-25-5-1
Applicability of chapter
Sec. 1. This chapter applies to each freshwater lake that containsat least ten (10) acres at the body of water's normal level.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-2
"Financial responsibility bond" defined
Sec. 2. As used in this chapter, "financial responsibility bond"means a surety bond, a certificate of deposit, a cashier's check, or aletter of credit.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-3
"Freshwater lake" defined
Sec. 3. (a) As used in this chapter, "freshwater lake" means a bodyof standing surface water that:
(1) is of natural origin; or
(2) was:
(A) originally constructed to permanently retain water; and
(B) in existence at least five (5) years before thecommencement of water withdrawals by a significant waterwithdrawal facility.
(b) The term does not include Lake Michigan.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-4
"Lake owner" defined
Sec. 4. As used in this chapter, "lake owner" means a person inpossession of property that includes:
(1) a physical part of; or
(2) a legal interest in;
a freshwater lake.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-5
"Significant water withdrawal facility" defined
Sec. 5. As used in this chapter, "significant water withdrawalfacility" means a water pumping installation or other equipment ofa person that, in the aggregate from all sources and by all methods,has the capability of withdrawing at least one hundred thousand(100,000) gallons of water in one (1) day.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-6
Investigations
Sec. 6. Not later than five (5) days after receiving a written
complaint from a lake owner that:
(1) the level of a freshwater lake has been lowered:
(A) significantly below the lake's normal level as legallyestablished under IC 14-26-4 or under IC 13-2-13 (before itsrepeal); or
(B) if the normal level has not been legally established underIC 14-26-4 or under IC 13-2-13 (before its repeal),significantly below the water line or shoreline as determinedby existing water level records or by the action of the waterthat has marked upon the soil of the bed of the lake acharacter distinct from that of the bank with respect tovegetation and the nature of the soil; and
(2) the lowering of the lake level is believed to be caused by atleast one (1) active significant water withdrawal facilityoperated within one-half (1/2) mile of the freshwater lake;
the director shall give notice to those persons responsible for theoperation of the significant water withdrawal facility believed tohave caused lowering of the lake level and cause an onsiteinvestigation to be made.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-7
Freshwater lake emergency; based on investigation
Sec. 7. (a) If an onsite investigation under section 6 of this chapterdiscloses that:
(1) the operation of at least one (1) significant water withdrawalfacility has caused the freshwater lake to be loweredsignificantly below a level described in section 6(1) of thischapter; and
(2) the lowering of the lake level is likely to result in significantenvironmental harm to the freshwater lake or to adjacentproperty;
the director shall, by temporary order, declare a freshwater lakeemergency.
(b) A temporary order may:
(1) restrict the quantity of water that is extracted by thecausative significant water withdrawal facility; and
(2) provide for the restoration of the normal water level of thefreshwater lake;
as needed to prevent significant environmental harm to thefreshwater lake or adjacent property.
(c) A restoration order under subsection (b)(2) may allow thesignificant water withdrawal facility to discharge water of anacceptable quality into the affected freshwater lake.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-8
Freshwater lake emergency; effectiveness
Sec. 8. A temporary order under section 7 of this chapter iseffective when a copy of the order is served under IC 4-21.5-3-1
upon a person that owns or operates the significant water withdrawalfacility.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-9
Temporary orders upon finding of improper management or poormaintenance
Sec. 9. If an onsite investigation under section 6 of this chapterdiscloses that the complaining lake owner has, through impropermanagement or poor maintenance of the lake, caused or contributedto the lowering of the freshwater lake to a level significantly belowa level described in section 6(1) of this chapter, the director may:
(1) not issue a temporary order under section 7 of this chapter;or
(2) issue a temporary order under section 7 of this chapter thatrequires the significant water withdrawal facility to restrict thefacility's extraction of water or restore water only to the extentthe director determines the lowering of the freshwater lake levelis caused by the significant water withdrawal facility.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-10
Financial responsibility bonds; filing
Sec. 10. (a) Except as provided under subsection (b), the operatorof a significant water withdrawal facility may obtain relief from atemporary order issued under section 7 of this chapter or underIC 13-2-2.6-10 (before its repeal) by filing with the director afinancial responsibility bond in an amount not:
(1) less than one thousand dollars ($1,000); or
(2) more than ten thousand dollars ($10,000);
for each acre contained in the freshwater lake. The aggregate amountof financial responsibility bond that may be assessed on the operatorof a significant water withdrawal facility may not exceed fiftythousand dollars ($50,000).
(b) The director may not allow a significant water withdrawalfacility to file a financial responsibility bond under subsection (a) ifthe department determines that a freshwater lake or an adjacentproperty contains an extraordinary or a unique natural resource thatis likely to be irreparably damaged as a result of the lowering of thefreshwater lake. The burden of proof to establish the presence of anextraordinary or a unique natural resource rests with the department.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-11
Financial responsibility bonds; compensation, forfeiture
Sec. 11. (a) After a bond is filed under section 10 of this chapter,the operator of a significant water withdrawal facility and acomplaining lake owner may enter into a written agreement forcompensation to the lake owner instead of bond forfeiture.
(b) If: (1) the operator and lake owner have not entered into anagreement within three (3) years after a temporary order undersection 7 of this chapter has been issued; and
(2) the freshwater lake has not returned to normal;
the director shall order the forfeit to the benefit of the lake owner ofthe part of the bond filed under section 10 of this chapter that isneeded to provide compensation under section 10 of this chapter.
(c) If a financial responsibility bond has been filed for the benefitof more than one (1) complaining lake owner, the amount of the bondforfeited under subsection (b) shall be distributed to the affectedcomplaining lake owners on a pro rata basis.
(d) Instead of forfeiting a bond under subsection (b), the operatorof a significant water withdrawal facility may pay cash to a lakeowner in the amount of the part of the bond forfeited undersubsection (b).
As added by P.L.1-1995, SEC.18.
IC 14-25-5-12
Agreements to compensate owners for diminution in value
Sec. 12. A significant water withdrawal facility and a lake ownermay enter into an agreement to compensate the lake owner for thediminution in value of the lake owner's property caused bysignificant lowering of the lake level. If a significant waterwithdrawal facility and a lake owner enter into an agreement underthis section, the owner of the significant water withdrawal facility isnot required to file a financial responsibility bond under section 10of this chapter.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-13
Temporary orders
Sec. 13. (a) A temporary order issued under section 7 of thischapter or under IC 13-2-2.6-10 (before its repeal) must include anotice of hearing to be held under IC 4-21.5-4 as soon as practicableafter the declaration of the freshwater lake emergency. Following thehearing, the director may continue, amend, or terminate thefreshwater lake emergency order issued under section 7 of thischapter or under IC 13-2-2.6-10 (before its repeal).
(b) If a freshwater lake emergency order issued under section 7 ofthis chapter or under IC 13-2-2.6-10 (before its repeal) is terminatedafter a bond under section 10 of this chapter or under IC 13-2-2.6-13(before its repeal) has been filed, the termination order must providefor the immediate release of the bond.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-14
Permanent orders
Sec. 14. Upon application by the director or a lake owner, thecommission may cause a temporary order issued under section 7 ofthis chapter or under IC 13-2-2.6-10 (before its repeal) to be made a
permanent order. A permanent order is subject to IC 4-21.5-3-6.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-15
Violations
Sec. 15. (a) A person who violates this chapter commits a ClassA infraction.
(b) The commission may, without proof of irreparable injury,maintain an action to enjoin a violation of this chapter.
As added by P.L.1-1995, SEC.18.