Montana hearing spotlights clash over state school trust water rights and sale of isolated trust land

Members of the Montana Senate Judiciary Committee heard more than two hours of testimony on House Bill 676 on a contested set of changes that would limit when the state can assert an ownership interest in water rights used in connection with state school trust lands and would allow sale of some "landlocked" or isolated trust parcels.

Sponsor remarks and proponents said HB 676 would protect private property and encourage investment on state-leased land. "This bill provides much needed clarity on state ownership of water rights," said Jocelyn Cahill, testifying for the Senior Ag Water Rights Alliance and identifying herself as a rancher in Broadwater County. "By explicitly stating that both the place of use and the place of diversion must be on state lands, this bill removes ambiguity."

The bill’s sponsor told the committee three changes are proposed: to disallow the Board of Land Commissioners from claiming private water rights that are used on state land but diverted from points off state land; to address maintenance/compensation questions tied to leases; and to permit sale of truly inaccessible, landlocked parcels of state trust land, with the sponsor saying sale proceeds could be dedicated to property tax relief or education.

Opponents ranged from the lieutenant governor, who spoke for Governor Greg Gianforte in his capacity…