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Council hears concern about irrigation company segregation rules and potential impact on planned well conversions
Summary
A council member raised concern that a local irrigation company has restricted segregation of surface-water shares, which the member said could complicate the city's plan to convert some irrigation shares into well rights.
During the meeting a council member raised concerns about a recent change by an irrigation company that, the member said, no longer allows shareholders to segregate surface-water shares and transfer them for conversion to well rights. The council member said the rule could affect the city's plans to use irrigation shares later for well conversions.
Kelly, identified in the discussion as a city staff member, responded that state code allows a shareholder to file a segregation application to separate a water company share so long as the irrigation company cannot show that segregation would reduce flow below a minimum necessary for proper conveyance. Kelly described the standard as a somewhat gray area that would require the irrigation company to demonstrate a conveyance need to block segregation.
Council members said the issue is worth monitoring. Staff noted the city's recent purchase included a mixture of irrigation shares and water rights (acre-feet) and that some irrigation shares (the transcript references a block of 36 shares) could be vulnerable to challenge if the irrigation company resists segregation; staff also said the portion sourced from the Sevier River is distinct from Gunnison--Fayette shares and may present different conversion prospects.
No formal action was recorded on the irrigation concern; the discussion closed with council members asking staff to continue evaluating legal risk and conversion feasibility for specific shares.
