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Council hears water-rights update; DNRC notice sets November response window

Red Lodge City Council · July 29, 2026

Summary

During a work session the council heard a water-rights briefing from legal counsel and staff: the city received a Montana Water Court notice with a November response deadline, DNRC said no imminent deadline, and leasing or selling water rights presents statutory constraints.

Legal counsel briefed the council on water-rights status and next steps. Counsel reported contacting the Montana Water Court and the Department of Natural Resources and Conservation (DNRC) and said there were no immediate deadlines; however, the city did receive a notice from the water court in May with a response deadline in November, which staff will track down and address.

"Water rights essentially, it's another situation...we have some time to work through that," legal counsel said, noting staff would set up meetings with DNRC and public-works staff to gather documents and clarify options. Council discussed that Rock Creek surface water rights historically used by the city have become harder to use as the creek shifted channels and that the city currently relies on well (subterranean) rights. Counsel and staff cautioned that selling water rights is generally not done and that short-term leasing is tightly constrained by statute (90-day leases and limited use over a 10-year period), making leasing impractical for long-term maintenance of rights.

Why it matters: Water rights underpin municipal water supplies and long-term planning; staff will follow up with DNRC and provide a fuller report at the next meeting to clarify statutory options and any required filings.

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