CHAPTER 2. MINIMUM STREAM FLOW AND WATER SALE CONTRACTS
IC 14-25-2
Chapter 2. Minimum Stream Flow and Water Sale Contracts
IC 14-25-2-1
Provision of minimum stream flow; sale of water
Sec. 1. (a) Except as provided in section 8 of this chapter, the
commission may provide certain minimum quantities of stream flow
or sell water on a unit pricing basis for water supply purposes from
the water supply storage in reservoir impoundments or parts of the
impoundments that are financed by the state. The water may be made
available for direct withdrawal from the reservoir impoundment or
released from the reservoir impoundment to create increased flowage
beyond normal stream flow for use by the contracting party or
purchaser at a downstream point. The withdrawals or releases may
not exceed the storage allocated to water supply purposes in the
authorizing legislation for water supply or multiple purpose reservoir
projects.
(b) This section does not abrogate, limit, or affect in any manner
prior or future sales of water from reservoirs constructed for or by
the department in which adequate water for incidental water supply
purposes is available.
As added by P.L.1-1995, SEC.18.
IC 14-25-2-2
Contracts on unit pricing basis
Sec. 2. (a) Except as provided in section 8 of this chapter and
subject to section 2.5 of this chapter, the commission may contract
with a person for the provision of certain minimum quantities of
stream flow or for the sale of water on a unit pricing basis. A
contract for the provision of minimum stream flows or for the sale of
water on a unit pricing basis:
(1) must be executed by the commission; and
(2) is subject to approval by the following:
(A) The attorney general.
(B) The governor.
(C) The person desiring the use.
(b) A contract entered into under this chapter may not cover a
period of more than fifty (50) years.
(c) Before the submission of the contract to the governor for
approval, the commission shall submit a copy of the contract to the
department. The department shall, within twenty (20) days of receipt,
do the following:
(1) Prepare a memorandum relative to the effect that the
contract might have on recreational facilities.
(2) Submit the memorandum to the governor for the governor's
consideration.
As added by P.L.1-1995, SEC.18. Amended by P.L.231-2007, SEC.1.
IC 14-25-2-2.5
Request for water from reservoir; notice of request and public
meeting; affected water utilities
Sec. 2.5. (a) As used in this chapter, "water utility" means:
(1) a public utility (as defined in IC 8-1-2-1(a));
(2) a municipally owned utility (as defined in IC 8-1-2-1(h));
(3) a not-for-profit utility (as defined in IC 8-1-2-125(a));
(4) a cooperatively owned corporation;
(5) a conservancy district established under IC 14-33; or
(6) a regional water district established under IC 13-26;
that provides water service to the public.
(b) A person that seeks to contract with the commission for the
provision of certain minimum quantities of stream flow or the sale of
water on a unit pricing basis under section 2 of this chapter must
submit a request to the commission and the department. The
commission shall not make a determination as to whether to enter
into a contract with the person making the request until:
(1) the procedures set forth in this section have been followed;
and
(2) the commission has reviewed and considered each report
submitted to the commission under subsection (i).
(c) Not later than thirty (30) days after receiving a request under
subsection (b), the department shall provide, by certified mail,
written notice of the request to the following:
(1) Each person with whom the commission holds a contract
for:
(A) the provision of certain minimum quantities of stream
flow; or
(B) the sale of water on a unit pricing basis;
as of the date of the request.
(2) The executive and legislative body of each:
(A) county;
(B) municipality, if any; and
(C) conservancy district established under IC 14-33, if any;
in which the water sought in the request would be used.
(3) The executive and legislative body of each:
(A) county;
(B) municipality, if any; and
(C) conservancy district established under IC 14-33, if any;
in which the affected reservoir is located.
(d) Not later than seven (7) days after receiving a notice from the
department under subsection (c), each person described in subsection
(c)(1) shall, by certified mail, provide written notice of the request
to each:
(1) water utility; or
(2) other person;
that contracts with the person described in subsection (c)(1) for the
purchase of water for resale. Each person to whom notice is mailed
under this subsection is in turn responsible for providing written
notice by certified mail to each water utility or other person that
purchases water from that person for resale. A water utility or
another person required to provide notice under this subsection shall
mail the required notice not later than seven (7) days after it receives
notice of the request from the water utility or other person from
whom it purchases water for resale.
(e) At the same time that:
(1) a person described in subsection (c)(1); or
(2) a water utility or another person described in subsection (d);
mails any notice required under subsection (d), it shall also mail to
the department, by certified mail, a list of the names and addresses
of each water utility or other person to whom it has mailed the notice
under subsection (d).
(f) In addition to the mailed notice required under subsection (c),
the department shall publish notice of the request, in accordance with
IC 5-3-1, in each county:
(1) in which a person described in section (c)(1) is located;
(2) in which the affected reservoir is located;
(3) in which the water sought in the request would be used; and
(4) in which a water utility or other person included in a list
received by the department under subsection (e) is located.
Notwithstanding IC 5-3-1-6, in each county in which publication is
required under this subsection, notice shall be published in at least
one (1) general circulation newspaper in the county. The department
may, in its discretion, publish public notices in a qualified
publication (as defined in IC 5-3-1-0.7) or additional newspapers to
provide supplementary notification to the public. The cost of
publishing supplementary notification is a proper expenditure of the
department.
(g) A notice required to be mailed or published under this section
must:
(1) identify the person making the request;
(2) include a brief description of:
(A) the nature of the pending request; and
(B) the process by which the commission will determine
whether to enter into a contract with the person making the
request;
(3) set forth the date, time, and location of the public meeting
required under subsection (h); and
(4) in the case of a notice that is required to be mailed under
subsection (c)(1) or (d), a statement of the recipient's duty to in
turn provide notice to any:
(A) water utility; or
(B) other person;
that purchases water for resale from the recipient, in accordance
with subsection (d).
(h) The advisory council established by IC 14-9-6-1 shall hold a
public meeting in each county in which notice is published under
subsection (f). A public meeting required under this subsection must
include the following:
(1) A presentation by the department describing:
(A) the nature of the pending request; and
(B) the process by which the commission will determine
whether to enter into a contract with the person making the
request.
(2) An opportunity for public comment on the pending request.
The advisory council may appoint a hearing officer to assist with a
public meeting held under this subsection.
(i) Not later than thirty (30) days after a public meeting is held
under subsection (h), the advisory council shall submit to the
commission a report summarizing the public meeting.
As added by P.L.231-2007, SEC.2. Amended by P.L.3-2008,
SEC.102.
IC 14-25-2-3
Rate of compensation
Sec. 3. A contract for the sale of water on a unit pricing basis that
is entered into under this chapter or under IC 13-2-1-7 (before its
repeal) after June 30, 1991, must provide for compensation to the
state at the rate of thirty-three dollars ($33) per one million
(1,000,000) gallons of water.
As added by P.L.1-1995, SEC.18.
IC 14-25-2-4
Water resources development fund
Sec. 4. (a) As used in this section, "fund" refers to the water
resources development fund created by this section.
(b) The water resources development fund is created. Money paid
to the state under a contract entered into under this chapter shall be
deposited in the fund.
(c) The proceeds of the fund do not revert to the state general fund
but constitute a revolving fund to be used exclusively for the
purposes of this chapter.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested. Interest that accrues
from the investments shall be deposited in the fund.
(e) Money in the fund may be used for any of the following
purposes:
(1) The development of new reservoirs.
(2) The investigation, development, and improvement of
existing reservoirs.
(3) The acquisition of easements or purchase in fee simple of
land and property to be used as reservoir sites.
(4) The financing, construction, operation, and maintenance of
reservoir impoundments or parts of impoundments for water
supply storage and uses, either independently or in cooperation
with any person.
(5) The investigation of water resource availability, quality, and
water supply needs.
(6) Watershed protection.
(7) River enhancement.
(8) The preparation of a compilation and mapping of all
community public water supplies under IC 14-25-7-13(d).
(9) The operation of the division of water.
(f) The department shall administer the fund.
As added by P.L.1-1995, SEC.18. Amended by P.L.184-1995, SEC.1;
P.L.186-2003, SEC.68.
IC 14-25-2-5
Adoption of rules
Sec. 5. The commission shall adopt rules under IC 4-22-2 that are
considered necessary for the proper administration of the following:
(1) The water resources development fund.
(2) This chapter.
As added by P.L.1-1995, SEC.18.
IC 14-25-2-6
Employment of personnel
Sec. 6. The commission may, subject to the approval of the budget
agency, employ personnel necessary for the efficient administration
of this chapter.
As added by P.L.1-1995, SEC.18.
IC 14-25-2-7
Contracts entered into before July 1, 1991, binding
Sec. 7. Except as provided in section 8 of this chapter, a contract
for the sale of water on a unit pricing basis that was entered into
under this chapter before July 1, 1991, is binding upon the
commission. However, notwithstanding the terms of the contract, the
rate of compensation for water sold under the contract on a unit
pricing basis is thirty-three dollars ($33) per one million (1,000,000)
gallons of water.
As added by P.L.1-1995, SEC.18.
IC 14-25-2-8
Primary source of water; compensation not required
Sec. 8. The state may not require compensation for water that:
(1) comes from a reservoir impoundment financed by the state;
and
(2) is provided to water users in an area in which the outlet of
the reservoir impoundment has been the primary source of
water for domestic, industrial, and public use for at least fifty
(50) years.
As added by P.L.1-1995, SEC.18.
IC 14-25-2-9
Primary source of water; contracts entered into before July 1,
1991, binding
Sec. 9. A contract that:
(1) was entered into under IC 13-2-1-7 (before its repeal) before
July 1, 1991; and
(2) provides for the sale of water on a unit pricing basis in an
area described in section 8 of this chapter;
is binding upon the commission. However, the opposite party to the
contract is not required to pay compensation to the state for water
provided in the area.
As added by P.L.1-1995, SEC.18.
IC 14-25-2-10
Primary source of water; contracts on measured basis
Sec. 10. The commission may enter into contracts under this
chapter to provide certain minimum quantities of stream flow or to
provide water on a measured basis in an area described in section 8
of this chapter. However, the opposite party to the contract is not
required to pay compensation to the state for water provided in the
area described in section 8 of this chapter.
As added by P.L.1-1995, SEC.18.
IC 14-25-2-11
Compensation owed by conservancy districts
Sec. 11. (a) As used in this section, "conservancy district" refers
to a conservancy district established under IC 14-33 or under
IC 13-3-3 (before its repeal) for the purpose of furnishing water
supply for domestic, industrial, and public use.
(b) The state may not obtain compensation from a conservancy
district under a contract for the sale of water on a unit pricing basis
upon the basis of an estimate of the quantity of water provided to the
conservancy district.
(c) The calculation of the compensation owed by a conservancy
district under a contract must be based upon either of the following:
(1) The measurement of the quantity of water provided to the
conservancy district.
(2) The measurement of the water furnished by the conservancy
district to the persons who obtain water from the conservancy
district, with a reasonable allowance made for water lost by the
conservancy district in the process of obtaining, treating, and
furnishing the water.
(d) This section does not affect the obligation of a conservancy
district to pay a minimum yearly fee in a certain amount established
by a contract.
As added by P.L.1-1995, SEC.18.