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Committee hears bill to require Land Board sign‑off before DNRC asserts ownership of private water rights

House Natural Resources Committee
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Summary

At a House Natural Resources hearing, proponents urged SB 263 to require the State Land Board, not DNRC lawyers alone, to approve any state claim to private water rights used on state leases; opponents — including the lieutenant governor and school‑trust advocates — warned the bill could conflict with fiduciary duties and existing case law.

Senate Bill 263 would require the Montana State Land Board to approve any Department of Natural Resources and Conservation (DNRC) action to assert ownership of private water rights that have at times been used on state trust land.

Sponsor Sen. Becky Beard opened the hearing saying SB 263 does not change who ultimately owns a water right but would codify a 2024 Land Board motion requiring DNRC attorneys to obtain client approval before pursuing ownership claims. ‘This bill simply codifies that motion into law to ensure future landlords follow this policy,’ she said, adding it would also guarantee notice and an opportunity for private water‑right owners to present facts to the Land Board before legal action proceeds.

Proponents representing ranchers and property‑owner groups framed the bill as a transparency and due‑process measure. Attorney John Metropoulos, for…

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