45-1002. Water exchanges; conditions

A. A person may withdraw, divert or use water received through a water exchange only if one or more of the following apply:

1. Neither the water exchange is in an amount nor any associated water exchange contract provides for a water exchange in an amount exceeding fifty acre-feet in any twelve month period. If two or more water exchanges or water exchange contracts allow the same use at the same location, the aggregate quantity of the water exchanges and water exchanges pursuant to the water exchange contracts may not exceed fifty acre-feet in any twelve month period to qualify for this condition.

2. All water exchanged pursuant to the water exchange or water exchange contract is effluent.

3. The water exchange is made pursuant to a water exchange contract enrolled under section 45-1021 and either:

(a) The amount of water exchanged does not exceed either the maximum amount of water exchanged in any twelve month period before 1992 or any specific maximum amount established in the water exchange contract, whichever is more.

(b) If no water was exchanged in any twelve month period before 1992 and no specific maximum amount of water was established in the water exchange contract, the water to be exchanged by one of the parties is central Arizona project water for which a subcontract was not offered by the secretary of the interior by January 1, 1992.

4. The water exchange involves surface water other than Colorado river water, and the person who gives surface water other than Colorado river water in the exchange holds a permit under section 45-1041.

5. The water exchange is made pursuant to a notice of water exchange filed with the director under section 45-1051.

6. All water exchanged pursuant to the water exchange or water exchange contract is groundwater and the exchange is between an irrigation district and an irrigation grandfathered right holder within that irrigation district.

B. A party that gives water pursuant to a water exchange authorized under subsection A of this section must receive the water to be exchanged for it within a twelve month period unless one of the following applies:

1. The exchange is made pursuant to a water exchange contract enrolled under section 45-1021 and the contract contains an explicit term providing for a longer period.

2. The exchange is made pursuant to subsection A, paragraph 6 of this section.

3. The parties to the exchange demonstrate to the director that the water to be received cannot be delivered within the period allowed for the exchange or that the water to be received cannot reasonably be put to beneficial use within the period allowed for the exchange. On this demonstration the director may grant an extension of six months if the director has determined that the extension is consistent with the goal of efficient water management and does not impair vested rights to the use of water.

4. The exchange is between a multi-county water conservation district established pursuant to title 48, chapter 22 and an agricultural improvement district established pursuant to title 48, chapter 17 and the exchange involves surface water that is stored in reservoirs that are operated by the agricultural improvement district.