This document discusses water rights and water markets in Montana. It notes that water rights need to be clearly defined but are complex due to interdependencies between surface and groundwater. Water markets in Montana are working to some degree, with over 25,000 acre-feet of water brokered and various water rights transfers approved. However, barriers still exist like regulatory uncertainty and costly transfer processes. The document advocates for improved transparency, information sharing, and market expertise to further develop water markets in Montana.

1. Buying and Selling Water in
Montana
Chris Corbin

2. water resource
management
montana water
trust
chairman
bitterroot
water forum
MBA wr specialist
consultant, freelance
marketer, entrepreneur
Chris Corbin
moose drool

3. business acumen water ingenuity
Differentiation

5. Working and Not Working
What is…

6. Every shovel has two sides.

8. 1. Clearly defined water rights

9. Not Working

10. dynamic
surface and
groundwater
simultaneous
interdependencies
Physical Challenges

11. Water is Complex

12. Never trust
a water right.

14. Adjudication decrees flow rates and the
market trades volumes.

15. Historical water user has
passed away or…

16. moved away or..

17. aren’t measuring their water use.

18. Market opportunities will
lead to greater water
stewardship.

19. Standards will create market efficiency.

20. 2. Physical supply and demand

21. Working

22. “The West is the fastest growing part of the country. It
is also the driest.”
- National Geographic Magazine

23. Steve Running (2009)

24. Steve Running (2009)

26. water market demand

27. Agricultural
Urban & IndustrialEnvironmental

28. Ravalli County

29. Agricultural

30. Environmental

31. Urban

32. Gallatin County

33. Agricultural

34. Environmental

35. Urban

36. Missoula County

37. Agricultural

38. Environmental

39. Urban

40. 169,886 irrigated acres
USDA, Economic Research Service (2009)

41. 297 miles of blue and red ribbon streams
226 miles of dewatered streams
Montana FWP, 2009

42. 59% growth since 1990
Montana Cenus” US Census Montana Census. (2009) 6 April 2009
http://www.census.gov/

43. Agricultural
Urban & IndustrialEnvironmental

44. 3. Regulatory Structure

45. Working

46. last best place
market

47. private leasing law

48. 21
Brokered over 25,000 acre-feet

49. Basin Closure and Mitigation

50. more valid water right claims than
water is available . . .
over appropriated

52. Mitigation and
Aquifer recharge

53. Future water demand will be met or
mitigated by existing water rights.

54. private water marketing law?

55. Instream flow transactions 1987-2007
Scarborough, Brandon. Environmental Water Markets Restoring Streams Through Trade. Publication. Vol. 46.
Bozeman, MT: PERC, 2010. Print. PERC Policy Ser.

56. Private involvement drive water markets.

57. 4. Transferability of rights

58. Not Working

59. Transferability is critical to reallocate
water rights to meet new and growing
demands.

60. regulatory
uncertainty
Barriers to trade
costly transfer
process

61. 3 of 45 applications approved HB831 applications
approved as of 01/14/10.
Data provided by Terri McLaughlin, DNRC

62. 22 approvals
2-10 month turn
14 correct and complete upon
receipt
HB 40 applications 7/09 - 7/10
Data provided by Terri McLaughlin, DNRC

63. Transparency is good.

64. 5. Enforcement of rights

65. Not Working

67. 6.Easy flow of information

68. Not Working

69. Average Lease Prices 2003-2008
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 2008 2009
Year
Price ($/AF)
All prices based on Lotic LLC’s comparable sales database.

70. Lease Prices 2008
$0.41
$64.16
All prices based on Lotic LLC’s comparable sales database.

71. Sale Prices 2003-2008
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2002 2003 2004 2005 2006 2007 2008 2009
Year
Price ($/AF)
All prices based on Lotic LLC’s comparable sales database.

72. Sale Prices 2008
$133
$7,000
All prices based on Lotic LLC’s comparable sales database.

73. 7. Market Expertise (Education)

74. Not Working

75. Water runs with the land?

76. First documented Montana Water Rights Transfer: 1895

78. 8. Water Market

79. Working

80. Big Sky Brewing Company

81. water restoration certificates

82. Photo courtesy of the Montana Water Trust
Dewatered stream

83. Photo courtesy of the Montana Water Trust
Restored stream flow

84. Water in Beer = Water in Stream

85. 4 million gallons of water restored

87. Grass Valley French
Ditch Company
Roots

88. Missoula: 1901

89. Missoula: Now

90. Missoula

91. Urban

92. Grass Valley French Ditch Co.

93. Grass Valley French Ditch Co.

94. 20% reduction in revenue

95. A Shares
B Shares
Restructured Shares
20%
80%

96. A Shares
B Shares
Current Purpose of Use
irrigation and stock
?

97. A Shares
B Shares
Current Purpose of Use: Irrigation and Stock
irrigation and stock
?

98. A Shares
B Shares
Future Purpose of Use: Marketing
irrigation and stock
mitigation

99. Reinvest in irrigation infrastructure

100. Grass Valley French Ditch Company
Roots

101. chris corbin
chris@loticwater.com
406.531.9156
www.loticwater.com
www.activelymovingwater.com