Schwabe, Williamson & Wyatt | Portland, OR | Bend, OR | Salem, OR | Seattle, WA | Vancouver, WA | Washington, DC 1 Water Rights Update Rural Development Martha O. Pagel Schwabe Williamson & Wyatt

Schwabe, Williamson & Wyatt | Portland, OR | Bend, OR | Salem, OR | Seattle, WA | Vancouver, WA | Washington, DC 2 Water Law Basics Hot Topics  Measure 37  Destination Resorts  Legislative Session 2

Schwabe, Williamson & Wyatt | Portland, OR | Bend, OR | Salem, OR | Seattle, WA | Vancouver, WA | Washington, DC 3 Key Principles of Water Law All water owned by the public Two “sources” – Surface and Ground Water Water rights required for almost all uses Prior Appropriation vs. Riparian Rights

Schwabe, Williamson & Wyatt | Portland, OR | Bend, OR | Salem, OR | Seattle, WA | Vancouver, WA | Washington, DC 4 Types of Water Rights/Authorization Pre-1909 Surface Water Rights Pre-1955 Ground Water Registrations Permits and Certificates Exempt Uses Limited Licenses Transfers

Schwabe, Williamson & Wyatt | Portland, OR | Bend, OR | Salem, OR | Seattle, WA | Vancouver, WA | Washington, DC 5 Exempt Ground Water Uses Key Exemptions – ORS (1) –Domestic/Group Domestic – 15,000 gpd –Lawn & Garden Irrigation – Up to ½ acre –Commercial/Industrial – 5,000 gpd Exempt Uses are “Water Rights” – ORS (2)

Schwabe, Williamson & Wyatt | Portland, OR | Bend, OR | Salem, OR | Seattle, WA | Vancouver, WA | Washington, DC 6 Real Estate Transactions – Due Diligence Seller’s Interests –Water rights “audit” – What does the seller have? –Can/Should the water rights be sold separately?

Schwabe, Williamson & Wyatt | Portland, OR | Bend, OR | Salem, OR | Seattle, WA | Vancouver, WA | Washington, DC 7 Due Diligence – Buyer’s Interests Are there “paper” water rights? Are the rights valid and not subject to forfeiture? Is there enough “real” water?

Schwabe, Williamson & Wyatt | Portland, OR | Bend, OR | Salem, OR | Seattle, WA | Vancouver, WA | Washington, DC 8 Water Supply and Management – State Policy and Programs Basin Plans – “Zoning” for Water Special Management Areas –Critical Ground Water Area –Ground Water Limited Area –Stream Withdrawals –Defacto Withdrawal – water availability

Schwabe, Williamson & Wyatt | Portland, OR | Bend, OR | Salem, OR | Seattle, WA | Vancouver, WA | Washington, DC 9 Water Supply and Management – Local Authority Ashland Drilling v. Jackson County, 168 Or App 624 Current Models – Future Options

Schwabe, Williamson & Wyatt | Portland, OR | Bend, OR | Salem, OR | Seattle, WA | Vancouver, WA | Washington, DC 10 Hot Topics Measure 37 and HB 3540 Destination Resorts 2007 Legislative Session

Schwabe, Williamson & Wyatt | Portland, OR | Bend, OR | Salem, OR | Seattle, WA | Vancouver, WA | Washington, DC 11 Measure 37 Water or Land Use Regulation? Water or Land Use Problem? Round Two: HB 3540

Schwabe, Williamson & Wyatt | Portland, OR | Bend, OR | Salem, OR | Seattle, WA | Vancouver, WA | Washington, DC 12 Destination Resorts Rural Communities – “Quasi- Municipal” Use Demonstrating Adequate Water Supply Deference or Delegation?

Schwabe, Williamson & Wyatt | Portland, OR | Bend, OR | Salem, OR | Seattle, WA | Vancouver, WA | Washington, DC Legislative Session What’s New in Water Law? What’s Not New? –Measuring and Reporting –Restrictions on Exempt Ground Water Use

Schwabe, Williamson & Wyatt | Portland, OR | Bend, OR | Salem, OR | Seattle, WA | Vancouver, WA | Washington, DC 14 Conclusions – What’s Next More Active Planning/Management of Ground Water More Information/Studies – State and Local Requirements on Developers More Action in Water Marketing