CHAPTER 5. EMERGENCY REGULATION OF SURFACE WATER RIGHTS
IC 14-25-5
Chapter 5. Emergency Regulation of Surface Water Rights
IC 14-25-5-1
Applicability of chapter
Sec. 1. This chapter applies to each freshwater lake that contains
at least ten (10) acres at the body of water's normal level.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-2
"Financial responsibility bond" defined
Sec. 2. As used in this chapter, "financial responsibility bond"
means a surety bond, a certificate of deposit, a cashier's check, or a
letter of credit.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-3
"Freshwater lake" defined
Sec. 3. (a) As used in this chapter, "freshwater lake" means a body
of standing surface water that:
(1) is of natural origin; or
(2) was:
(A) originally constructed to permanently retain water; and
(B) in existence at least five (5) years before the
commencement of water withdrawals by a significant water
withdrawal facility.
(b) The term does not include Lake Michigan.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-4
"Lake owner" defined
Sec. 4. As used in this chapter, "lake owner" means a person in
possession of property that includes:
(1) a physical part of; or
(2) a legal interest in;
a freshwater lake.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-5
"Significant water withdrawal facility" defined
Sec. 5. As used in this chapter, "significant water withdrawal
facility" means a water pumping installation or other equipment of
a person that, in the aggregate from all sources and by all methods,
has the capability of withdrawing at least one hundred thousand
(100,000) gallons of water in one (1) day.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-6
Investigations
Sec. 6. Not later than five (5) days after receiving a written
complaint from a lake owner that:
(1) the level of a freshwater lake has been lowered:
(A) significantly below the lake's normal level as legally
established under IC 14-26-4 or under IC 13-2-13 (before its
repeal); or
(B) if the normal level has not been legally established under
IC 14-26-4 or under IC 13-2-13 (before its repeal),
significantly below the water line or shoreline as determined
by existing water level records or by the action of the water
that has marked upon the soil of the bed of the lake a
character distinct from that of the bank with respect to
vegetation and the nature of the soil; and
(2) the lowering of the lake level is believed to be caused by at
least one (1) active significant water withdrawal facility
operated within one-half (1/2) mile of the freshwater lake;
the director shall give notice to those persons responsible for the
operation of the significant water withdrawal facility believed to
have caused lowering of the lake level and cause an onsite
investigation to be made.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-7
Freshwater lake emergency; based on investigation
Sec. 7. (a) If an onsite investigation under section 6 of this chapter
discloses that:
(1) the operation of at least one (1) significant water withdrawal
facility has caused the freshwater lake to be lowered
significantly below a level described in section 6(1) of this
chapter; and
(2) the lowering of the lake level is likely to result in significant
environmental harm to the freshwater lake or to adjacent
property;
the director shall, by temporary order, declare a freshwater lake
emergency.
(b) A temporary order may:
(1) restrict the quantity of water that is extracted by the
causative significant water withdrawal facility; and
(2) provide for the restoration of the normal water level of the
freshwater lake;
as needed to prevent significant environmental harm to the
freshwater lake or adjacent property.
(c) A restoration order under subsection (b)(2) may allow the
significant water withdrawal facility to discharge water of an
acceptable quality into the affected freshwater lake.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-8
Freshwater lake emergency; effectiveness
Sec. 8. A temporary order under section 7 of this chapter is
effective when a copy of the order is served under IC 4-21.5-3-1
upon a person that owns or operates the significant water withdrawal
facility.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-9
Temporary orders upon finding of improper management or poor
maintenance
Sec. 9. If an onsite investigation under section 6 of this chapter
discloses that the complaining lake owner has, through improper
management or poor maintenance of the lake, caused or contributed
to the lowering of the freshwater lake to a level significantly below
a level described in section 6(1) of this chapter, the director may:
(1) not issue a temporary order under section 7 of this chapter;
or
(2) issue a temporary order under section 7 of this chapter that
requires the significant water withdrawal facility to restrict the
facility's extraction of water or restore water only to the extent
the director determines the lowering of the freshwater lake level
is caused by the significant water withdrawal facility.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-10
Financial responsibility bonds; filing
Sec. 10. (a) Except as provided under subsection (b), the operator
of a significant water withdrawal facility may obtain relief from a
temporary order issued under section 7 of this chapter or under
IC 13-2-2.6-10 (before its repeal) by filing with the director a
financial responsibility bond in an amount not:
(1) less than one thousand dollars ($1,000); or
(2) more than ten thousand dollars ($10,000);
for each acre contained in the freshwater lake. The aggregate amount
of financial responsibility bond that may be assessed on the operator
of a significant water withdrawal facility may not exceed fifty
thousand dollars ($50,000).
(b) The director may not allow a significant water withdrawal
facility to file a financial responsibility bond under subsection (a) if
the department determines that a freshwater lake or an adjacent
property contains an extraordinary or a unique natural resource that
is likely to be irreparably damaged as a result of the lowering of the
freshwater lake. The burden of proof to establish the presence of an
extraordinary or a unique natural resource rests with the department.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-11
Financial responsibility bonds; compensation, forfeiture
Sec. 11. (a) After a bond is filed under section 10 of this chapter,
the operator of a significant water withdrawal facility and a
complaining lake owner may enter into a written agreement for
compensation to the lake owner instead of bond forfeiture.
(b) If:
(1) the operator and lake owner have not entered into an
agreement within three (3) years after a temporary order under
section 7 of this chapter has been issued; and
(2) the freshwater lake has not returned to normal;
the director shall order the forfeit to the benefit of the lake owner of
the part of the bond filed under section 10 of this chapter that is
needed to provide compensation under section 10 of this chapter.
(c) If a financial responsibility bond has been filed for the benefit
of more than one (1) complaining lake owner, the amount of the bond
forfeited under subsection (b) shall be distributed to the affected
complaining lake owners on a pro rata basis.
(d) Instead of forfeiting a bond under subsection (b), the operator
of a significant water withdrawal facility may pay cash to a lake
owner in the amount of the part of the bond forfeited under
subsection (b).
As added by P.L.1-1995, SEC.18.
IC 14-25-5-12
Agreements to compensate owners for diminution in value
Sec. 12. A significant water withdrawal facility and a lake owner
may enter into an agreement to compensate the lake owner for the
diminution in value of the lake owner's property caused by
significant lowering of the lake level. If a significant water
withdrawal facility and a lake owner enter into an agreement under
this section, the owner of the significant water withdrawal facility is
not required to file a financial responsibility bond under section 10
of this chapter.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-13
Temporary orders
Sec. 13. (a) A temporary order issued under section 7 of this
chapter or under IC 13-2-2.6-10 (before its repeal) must include a
notice of hearing to be held under IC 4-21.5-4 as soon as practicable
after the declaration of the freshwater lake emergency. Following the
hearing, the director may continue, amend, or terminate the
freshwater lake emergency order issued under section 7 of this
chapter or under IC 13-2-2.6-10 (before its repeal).
(b) If a freshwater lake emergency order issued under section 7 of
this chapter or under IC 13-2-2.6-10 (before its repeal) is terminated
after a bond under section 10 of this chapter or under IC 13-2-2.6-13
(before its repeal) has been filed, the termination order must provide
for the immediate release of the bond.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-14
Permanent orders
Sec. 14. Upon application by the director or a lake owner, the
commission may cause a temporary order issued under section 7 of
this chapter or under IC 13-2-2.6-10 (before its repeal) to be made a
permanent order. A permanent order is subject to IC 4-21.5-3-6.
As added by P.L.1-1995, SEC.18.
IC 14-25-5-15
Violations
Sec. 15. (a) A person who violates this chapter commits a Class
A infraction.
(b) The commission may, without proof of irreparable injury,
maintain an action to enjoin a violation of this chapter.
As added by P.L.1-1995, SEC.18.