A bill designed to help Utah's trout ran into a few rapids Wednesday when a legislator wondered if environmental groups could use it to hijack water, such as the Provo River.
The bill would allow private entities to lease water rights and allow the water to remain in streams for the specific purpose of improving trout habitat.
Current law permits water rights for in-stream flows to be held only by the Utah Division of Wildlife Resources and the Utah Division of State Parks and Recreation. Otherwise, private water rights can only be granted for actual use, such as diverting water to irrigate cropland.
The bill, supported by the fishing and conservation group Trout Unlimited, carries a bundle of restrictions. Water rights can be granted only for a term of less than 10 years, and must be reapplied for following that; the purpose must be to protect trout; no other existing water right may be impaired.
The matter was discussed at length Wednesday by Legislature's Water Issues Task Force, meeting in the Capitol Complex.
Safeguards that modify the original bill were suggested by the Utah Water Coalition, accepted by Trout Unlimited, and described by coalition member former State Sen. Fred Finlinson.
But Rep. David Ure, R-Kamas, co-chairman of the task force, worried that the law could be the means to speculate in water, or if leases might not run up the cost of water for municipalities or agriculture.
No, said Timothy Hawkes, a lawyer for Trout Unlimited. In Montana, where such a law is in place, the group has seen only "three to five of these leases done, over 10 years."
"I would disagree with you very, very sharply on this, Tim," Ure responded.
A dairy farmer and beef rancher, Ure said he has a conflict of issue on the matter: He is an officer with three irrigation companies. He cited the Provo River as an example, saying a national environmental group might make strategic leases from 10 or 12 individuals and take much of the river's water rights.
Because Utah has a limited supply of water, "there's probably a lot more needs than there is water," he said.
Using the tax breaks granted to nonprofit groups under provisions of the 501(c) law, Ure added, a nationwide group would have little trouble raising a lot of money for the water rights.
Driving up the cost of water could have an impact on everybody who takes a drink of water in Utah, he said.
Hawkes said in Montana, Trout Unlimited has never been able to raise enough money to make a difference in a river's main flow. But in the upper headwaters, a little more water goes a long way toward protecting the fish, he said.
Ure warned of actions by an environmental group with its own agenda "after you put this in place." It could lease water rights and control much of the water of the Provo River, he said.
"They can pretty well control the flow of water."
Also, after water rights are leased, someone could let the cost of water rise, then terminate the lease "and take the cash to the bank," Ure said.
Hawkes said the bill has safeguards to prevent water speculation. In Montana, after 10 years, the program did not affect the price of water, he said, citing a report.
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