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overlying right and is distributed to the appropriators) or transfer it. He
disagreed with Markman’s conclusion, saying the adjudication does not
create a gray area where an overlyer forgoes production and that is still
considered an unused overlying water right. Once a permanent transfer
is completed, the accounting is simple – the overlyer forgoes their
production and at that point, it becomes an appropriative right. It is still
tracked as part of the safe yield, he continued.
Chair Vela pointed out that the Rules and Regulations Subsection B
reads that when an overlying party receives water service, the overlying
party shall forbear the use of that volume. This ties into Resolution
2017-02, which approves the transfer of overlying water rights. He
believes this indicates the transfer occurring when the water service is
provided to those specific parcels. The letters from overlyers also state
that the transfer is for the specific parcels, he added.
Member Zoba noted that this verbiage dates back to the original
transfers of Sunny Cal parcels in 2005 or 2006. Now there is a point
where an overlyer indicating to the Watermaster that they will forgo this
water prior to the actual service taking place – an accelerated transfer.
This fits more cleanly into SB 610 and SB 21 to guarantee a 20-year
supply so as development occurs, there is not a last minute wait to
determine if there is water available when a meter goes in and a house
is built, Zoba said. There are policies in place to assure there is water
available for a development long before the building permit is actually
issued, he said, and when entering a development agreement, it is
necessary to know whether there is water supply. Zoba stated he
believes it is clear when the transfer takes place.
Chair Vela noted that the water is there and the conditions in SB 610
would be met, but the transfer itself is not perfected until those parcels
actually receive service. Mr. Jaggers pointed to Rules and Regulations
Section 7.2 and 7.3, and posited that the Watermaster should formalize
a clear transfer policy. Zoba disagreed; suggesting the accounting
seems straightforward.
Member Jaggers noted the policy to account for transfers of water topic
has been on the agenda as a future item for some time (item VIII e),
but has not yet been addressed and the language in the draft report is
setting a precedent. Jaggers said he does not feel that this discussion
has been finalized and he recommended modification of report item
3.4.2 to identify what the transfers were, but to strike out some of the
language about when it is available for use. He indicated that item VIIIe
should be addressed before appearing in writing in an annual report.
Counsel Markman pointed out that there are thousands of entitled
houses on hold since 2008 for which the agencies may have to meet
water demands. The purpose of a conversion as indicated in the
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Beaumont Basin Watermaster - March 27, 2019 - Page 8 of 58