The Association shall allow for deposits of water rights in the bank in exchange for financial compensation. The Association shall accept for deposit only a water right, or portion of a water right, that has been determined to be a bankable water right as defined by K.S.A. 82a-764, as amended, and Article IV, Section 404 of the charter. The depositor sets the price for a deposit, and will only receive compensation for such deposit when the water is leased from the Association. The deposit will be posted on the Association’s bulletin board when all fees required with the deposit are paid in full to the Association. Annual deposits posted to the bulletin board and not contracted for lease at the end of the calendar year shall only be extended when appropriate fees are paid in full.
The deposit shall be for a period of not more than five years. The deposit must be posted on the bulletin board on or before April 1, of the first calendar year that the deposit will be made. All deposits must be for increments of full calendar years.
The proposed deposit:
A contract between the Association and the depositor shall be required that sets forth all penalty provisions for breach of any contract conditions. The deposit shall be subject to such terms and conditions as provided by rules and regulations of the chief engineer. The depositor shall complete an application for contract to deposit on a form prescribed by the Association and approved by the chief engineer.
The amount that is eligible for deposit into the Association in the Deposit program is he average water use for years 1987 through 1996. This is intended to prevent the increase in net consumptive use for the local aquifer. If the Association were to allow deposits from water rights that were not diverted historically, this could result in an increase in consumptive use from the local aquifer.
The application shall include, but not be limited to the following:
All contracts for partial deposits shall set forth conditions limiting the total quantity of water pumped remaining under the right and the amount deposited to the bankable amount.
Deposit Example:
Certified Water Right = 135 AF
1987-1996 Avg. Water Use = 100 AF
Amount that can be deposited = 100 AF
In 2016, Association board identified a participation roadblock in the Deposit program. Up to that point, the procedure utilized a public bulletin board on the website for advertising water for sale or lease. Additionally, the procedure was set as a “first come, first served” system. Unfortunately, this creates a burden on the individual offering the water to accurately determine the price for the water and a potential bias for those individuals who keep track of the bulletin board posts.
In an attempt to alleviate the second issue of notification, the Association now utilizes a real-time notification system that can advertise directly to anyone that wishes to be a part of those lists. More information on this system can be found on the notification system.
To address the first issue, the Association established two avenues for depositing water into the Association. The first would be a private deposit that would protect deposited water from being leased to unintended recipients. The second avenue is public and utilizes the notification system to implement a bidding system.
Water deposited through this avenue will be immediately posted to the Association bulletin board and notifications sent out using the Association’s notification system. All public deposits shall include within the terms of payment the “reserve price” for the water and the time frame for accepting bids (minimum seven business days).
Water deposited through this avenue will be held privately by an individual designated by the individual depositing the water. The depositor may set a price for this water, but it will not be required. Any contract to deposit water into the Association through this method will expire at the end of the calendar year in which it is entered into if the depositor has not completed the Lease of the deposited water within the same calendar year
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