73-1-4.5 - Authorization for water companies to allocate water rights lost by forfeiture or nonuse -- Redemption and retirement of water shares. - Utah Statutes

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Statutes > Utah > Title-73 > Chapter-01 > 73-1-4-5

73-1-4.5. Authorization for water companies to allocate water rights lost byforfeiture or nonuse -- Redemption and retirement of water shares.
(1) (a) If a water right, to which a mutual water company holds title, ceases or is lost dueto forfeiture or abandonment for lack of beneficial use, in whole or in part, the water companyshall, through procedures consistent with this section, and as defined in the company's articles ofincorporation or bylaws, apportion the loss to each stockholder whose failure to make beneficialuse caused the loss of the water right.
(b) The water company shall make an apportionment if the Utah Division of Water Rightsor a court of proper jurisdiction makes a final decision that a loss has occurred.
(c) The water company shall also reduce the amount of water provided to the shareholderin proportion to the amount of the lost water right during an appeal of a decision that reduced thecompany water rights, unless otherwise ordered by a court of proper jurisdiction.
(d) The water company may take any action under this Subsection (1), whether the lossoccurred:
(i) under Utah Code Annotated Section 73-1-4, including losses that occur as part of ageneral determination under Title 73, Chapter 4, Determination of Water Rights; or
(ii) through any other decision by a court of proper jurisdiction.
(2) (a) If the water company apportions a water right under Subsection (1), a sufficientnumber of shares to account for the water right lost, including necessary transport or "carrierwater" losses, shall be treated by the water company as shares redeemed by the company from thestockholder responsible for the loss.
(b) The number of shares owned by that shareholder shall be reduced accordingly on therecords of the company.
(c) Upon the redemption, the authorized shares of the company shall be reduced by theamount of shares that were redeemed under this Subsection (2).
(3) The redemption and retirement under this section of shares belonging to a stockholderdoes not relieve the stockholder of liability for unpaid assessments on the stock or debts theshareholder may owe to the water company.

Enacted by Chapter 19, 2002 General Session

State Codes and Statutes

Statutes > Utah > Title-73 > Chapter-01 > 73-1-4-5

73-1-4.5. Authorization for water companies to allocate water rights lost byforfeiture or nonuse -- Redemption and retirement of water shares.
(1) (a) If a water right, to which a mutual water company holds title, ceases or is lost dueto forfeiture or abandonment for lack of beneficial use, in whole or in part, the water companyshall, through procedures consistent with this section, and as defined in the company's articles ofincorporation or bylaws, apportion the loss to each stockholder whose failure to make beneficialuse caused the loss of the water right.
(b) The water company shall make an apportionment if the Utah Division of Water Rightsor a court of proper jurisdiction makes a final decision that a loss has occurred.
(c) The water company shall also reduce the amount of water provided to the shareholderin proportion to the amount of the lost water right during an appeal of a decision that reduced thecompany water rights, unless otherwise ordered by a court of proper jurisdiction.
(d) The water company may take any action under this Subsection (1), whether the lossoccurred:
(i) under Utah Code Annotated Section 73-1-4, including losses that occur as part of ageneral determination under Title 73, Chapter 4, Determination of Water Rights; or
(ii) through any other decision by a court of proper jurisdiction.
(2) (a) If the water company apportions a water right under Subsection (1), a sufficientnumber of shares to account for the water right lost, including necessary transport or "carrierwater" losses, shall be treated by the water company as shares redeemed by the company from thestockholder responsible for the loss.
(b) The number of shares owned by that shareholder shall be reduced accordingly on therecords of the company.
(c) Upon the redemption, the authorized shares of the company shall be reduced by theamount of shares that were redeemed under this Subsection (2).
(3) The redemption and retirement under this section of shares belonging to a stockholderdoes not relieve the stockholder of liability for unpaid assessments on the stock or debts theshareholder may owe to the water company.

Enacted by Chapter 19, 2002 General Session

State Codes and Statutes

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State Codes and Statutes

Statutes > Utah > Title-73 > Chapter-01 > 73-1-4-5

73-1-4.5. Authorization for water companies to allocate water rights lost byforfeiture or nonuse -- Redemption and retirement of water shares.
(1) (a) If a water right, to which a mutual water company holds title, ceases or is lost dueto forfeiture or abandonment for lack of beneficial use, in whole or in part, the water companyshall, through procedures consistent with this section, and as defined in the company's articles ofincorporation or bylaws, apportion the loss to each stockholder whose failure to make beneficialuse caused the loss of the water right.
(b) The water company shall make an apportionment if the Utah Division of Water Rightsor a court of proper jurisdiction makes a final decision that a loss has occurred.
(c) The water company shall also reduce the amount of water provided to the shareholderin proportion to the amount of the lost water right during an appeal of a decision that reduced thecompany water rights, unless otherwise ordered by a court of proper jurisdiction.
(d) The water company may take any action under this Subsection (1), whether the lossoccurred:
(i) under Utah Code Annotated Section 73-1-4, including losses that occur as part of ageneral determination under Title 73, Chapter 4, Determination of Water Rights; or
(ii) through any other decision by a court of proper jurisdiction.
(2) (a) If the water company apportions a water right under Subsection (1), a sufficientnumber of shares to account for the water right lost, including necessary transport or "carrierwater" losses, shall be treated by the water company as shares redeemed by the company from thestockholder responsible for the loss.
(b) The number of shares owned by that shareholder shall be reduced accordingly on therecords of the company.
(c) Upon the redemption, the authorized shares of the company shall be reduced by theamount of shares that were redeemed under this Subsection (2).
(3) The redemption and retirement under this section of shares belonging to a stockholderdoes not relieve the stockholder of liability for unpaid assessments on the stock or debts theshareholder may owe to the water company.

Enacted by Chapter 19, 2002 General Session