Water Rights Transfer Agreement Generator

What is a Water Rights Transfer Agreement?

A Water Rights Transfer Agreement is a contract between a water rights holder and a buyer or lessee that establishes the terms for transferring water rights, either permanently or temporarily. This agreement outlines the specific water rights being transferred, quantity limitations, priority dates, points of diversion, intended uses, compliance with water law, regulatory approvals, and compensation arrangements.

Key Sections Typically Included:

• Definition and Description of Water Rights
• Type of Transfer (Permanent Sale or Temporary Lease)
• Quantity and Flow Rate Specifications
• Priority Date and Seniority Status
• Points of Diversion and Return Flow Requirements
• Place and Purpose of Use Limitations
• Duration and Term of Transfer
• Compensation and Payment Terms
• Regulatory Approval Requirements
• Due Diligence and Title Verification
• Representations and Warranties
• Environmental Assessment Requirements
• Third-Party Claims and Encumbrances
• Default and Remedies
• Transfer Recordation Procedures
• Drought Contingency Provisions

Why Use Our Generator?

Our Water Rights Transfer Agreement generator helps water rights holders, farmers, municipalities, developers, and conservation organizations create legally sound agreements for transferring water rights. By clearly defining the specific rights being transferred, regulatory requirements, and terms of use, this agreement provides certainty for both parties while ensuring compliance with complex water laws that vary by jurisdiction.

Frequently Asked Questions

• Q: How should the water rights be described and quantified?

  • A: The agreement should specifically identify the water rights by permit or certificate number, outline the source of water (groundwater, surface water, stored water), and specify the quantity in precise terms (acre-feet, cubic feet per second). It should address the priority date that establishes seniority in the water rights system, establish whether the transfer includes all or a portion of the rights, and outline any seasonal or conditional limitations. The agreement should also specify points of diversion and place of use, establish whether return flow requirements apply, and outline any water quality specifications. The agreement should also address whether the rights are absolute or conditional, establish historical consumptive use documentation, and outline how the rights have been used historically to prevent abandonment claims.

• Q: What regulatory and approval requirements should be addressed?

  • A: The agreement should clearly identify which government agencies must approve the transfer, outline the process and timeline for obtaining necessary approvals, and specify which party is responsible for pursuing approvals. It should address potential conditions that regulatory agencies might impose, establish whether the agreement is contingent upon receiving approvals without material conditions, and outline the process if approvals are denied or significantly modified. The agreement should also specify procedures for addressing third-party objections during the approval process, establish cost allocation for the approval process, and outline required notifications to ditch companies, irrigation districts, or other water users. The agreement should also address whether a water court decree is required, establish procedures for proving historical consumptive use, and outline requirements for demonstrating no injury to other water rights holders.

• Q: How should due diligence and risk allocation be handled?

  • A: The agreement should outline specific due diligence procedures to verify title and confirm the extent and validity of the water rights, establish a due diligence period during which the buyer can investigate the rights, and specify documentation the seller must provide. It should address representations and warranties regarding ownership, absence of abandonment claims, and compliance with existing decrees, establish indemnification provisions for undisclosed issues, and outline remedies for title defects discovered during due diligence. The agreement should also specify which party bears the risk of regulatory changes that might affect the value or usability of the rights, establish contingencies for future climate change impacts, and outline procedures for addressing water shortages during drought conditions. The agreement should also address potential third-party claims against the water rights, establish whether title insurance is required, and outline procedures if the actual water yield differs from representations.