The Association shall be authorized to lease water that has been deposited into the bank in exchange for a fee. The Association shall only lease out that portion of deposits available after all conservation elements and other limitations have been applied. The Association shall not lease more than 90% of all deposited water in any calendar year. The Association shall certify to the chief engineer for each lease that sufficient deposits exist within the hydrologic unit where leased water will be used. The proposed use of water shall not be used to determine approval of a lease as per (K.S.A. 82a-763 (b) (5), as amended).
Rules for Leases
The proposed lease is from water rights on deposit from the same hydrologic unit designated by the Association and within the Association's boundary. The lease shall be subject to such terms and conditions, as such approval by the chief engineer, as provided by rules and regulations of the chief engineer. The lessee shall complete an application for contract to lease water on a form prescribed by the Association and approved by the chief engineer.
The application shall be filed with the Association and shall include the following
The hydrologic unit designation of leased water
Calendar years that water is proposed to be leased
Number of acre-feet proposed for lease, and the purpose of use
Location where leased water will be used, including point of diversion, place of use, acres (if irrigation) current authorized rate (if existing well - proposed rate if new well)
A current water level measurement
Aquifer unit (source of supply)
File numbers of all other water rights that authorize use of water from that point of diversion
Each approved contract shall set forth penalty provisions for breach of contract conditions. In order to prevent an increase in consumptive use, applications to lease water for a use other than the authorized use of the deposited water proposed for lease shall comply with K.A.R. 5-5-9 and 5-5-10.