Water Rights Are Not Civil

As the Mormon pioneers settled the area that became Utah, they parked their wagons wherever a canyon stream emerged from the mountains and meandered into the adjoining valleys. Then they set to work to alter Mother Nature's existing channels with numerous irrigation ditches that would direct the flows, such as they were, onto additional areas of the parched, high-desert land. Utah's valleys began to "blossom as the rose" wherever the expanding population cultivated the land with the aid of irrigation water.

All of the state's water resources were legislated so as to fall under the ownership of the state government Then agencies were created to assign and regulate all of the private and public uses of water. Water rights were assigned and then became "perfected" as water usage was established, and then "proved up" by the user, primarily in three categories: domestic (household or culinary), irrigation and stock watering. Sources were labeled as surface, such as a stream, or underground, drawn from a well. Each category and source had its own set of rules governing the applicable usage of the actual water, but the overriding principle for all water rights in the state was "use it or lose it."

Water rights can, and do lapse, or expire. While there is a statutory period for establishing or perfecting a water right, there is also a period, 5 years of non-use, for losing the right to use that same water. This has happened many times all over the state, as water right owners have failed to maintain or prove the usage of the water right allocation that they own.

Driving throughout the state, it is visually evident that water is in short supply. Verdant green fields, mostly producing alfalfa hay, are interspersed between large stretches of gray-green sagebrush. Each valley or drainage, as delineated by the state Water Engineer, has its own allocated amount of water rights which ideally would match up with the actual amount of annually renewable water. However, as growing populations increase the demand for water in the majority of these drainages, it is becoming evident that many of them have too many water rights allocated.

Water rights have always been somewhat mobile. In other words, within a drainage boundary, the use of the water could be transferred from one location to another. This allows a land owner to acquire water needed for use on a parcel of land that does not have a water right associated with it. While water rights transactions changing the ownership of the right take place between private parties, all transfers must be approved by the State Engineer. When the transfer is approved, the new usage or location is subject to the requirements for proving (physically demonstrating) that the change is effective, such as building a house, watering livestock or irrigating the land.

Prices for water rights vary with each drainage based upon supply and demand. Prices are reflective of the growth that is taken place throughout Southern Utah, and since that growth has been slowed temporarily, the prices have moderated somewhat lately. Prices are not set by any entity but are bought and sold at negotiated market prices very similar to real estate.

If you have land or are buying land in Utah that is not served by a community water source, then water rights are certainly a factor that you should be aware of and investigate. Determine your purpose for the land and find out how much water you will need for that purpose. If you are planning for the future then a water right can be acquired later if that is more desirable than maintaining it over the years in between. If you have a water right, or are acquiring one in conjunction with your real estate purchase, then the Division of Water Rights can be very helpful in explaining what you will have to do to perfect and maintain your water right.

New Gold in Southern Utah

Southern Utah has a rich history regarding natural resources. The early Mormon pioneers were sent down from original settlements in the Salt Lake Valley to present day Iron County to procure iron from the rich ore deposits located west of Cedar City. Mining continued to produce quality iron until late in the 1970's when metals prices could no longer support mining costs.

Silver was another viable metal that was found in Iron County and had multiple successful operations in the county until known deposits were finally depleted. The last silver mine in Escalante Valley closed also.

The old iron ore deposits, however, are back in operation once again with higher demand making the prices rise above costs. But greater attention is now being drawn to another local natural resource; one with no depletion factor, driven by expanding demand and advancing technology: renewable energy production.

This region of the state has a wonderful concentration of renewable energy options. Geothermal energy sources are leading the way with water heated by Mother Nature deep beneath the surface. The elevation, coupled with numerous days of sunshine each year, make it a top-notch location for solar power, and finally, the wind that everyone is so quick to complain about has a barely tapped potential for endless, effortless power.

This is one arena that entrepreneurs, environmentalists and government officials can all get excited about. Now watch the scramble begin for the prime locations next to transmission lines, especially where geothermal sources are also present. Solar installations can go in anywhere there is access to a transmission line. Wind and geothermal are somewhat more site selective. But between the three of them, together with extremely low land prices plus goverment incentives, it makes western Iron County a prime target for growth, job development and price appreciation.