OWNERSHIP UPDATES

RULE 38(a). Purpose. The department shall process ownership updates to water rights in compliance with §§ 85-2- 421 through 85-2-426, MCA. The ownership update does not transfer water rights or legally determine water right ownership. It updates the department’s centralized ownership records reflected on the legal documents that actually transfer water rights. RULE 38(b). Procedure. When a water right ownership update has been received, the department will revise the ownership of the right in the centralized record system as follows: (1) When the entire water right is conveyed to a new owner, the name and address of the new owner will be listed as the owner of the right. A remark may be added indicating the date the ownership update was received. Example: WATER RIGHT OWNERSHIP UPDATE RECEIVED 04/15/87. (2) When the ownership update denotes a conveyance of a portion of the water right to a new owner: 91 (i) The water right may be split by the department upon written authorization of all of the claimants. Remarks may be added to the original claim: Examples: WATER RIGHT OWNERSHIP UPDATE RECEIVED 04/15/87. SPLIT CLAIM NO. ______ WAS GENERATED. Remarks may be added to the split claim: Examples: WATER RIGHT OWNERSHIP UPDATE RECEIVED 04/15/87 THIS SPLIT CLAIM WAS GENERATED BY THE DEPARTMENT BASED ON INFORMATION IN CLAIM NO. ________. THIS CLAIM NUMBER WAS NOT INCLUDED IN THE BASIN (NAME) DECREE ISSUED ON (DATE). (ii) The water right may not be split by the department if all claimants have not provided written authorization to split the right. Remarks may be added indicating that an ownership update has been received: Examples: WATER RIGHT OWNERSHIP UPDATE RECEIVED 04/15/87. OWNERSHIP UPDATE PROCESSED TO ADD NEW OWNERS. THE WATER RIGHT MAY BE SPLIT INTO SEPARATE WATER RIGHTS AFTER FINAL DECREE UPON REQUEST OF THE OWNERS. 92 (iii) The name and address of a new owner will be added as an additional owner of the right. (3) When the ownership update identifies a contract for deed, the seller’s name may be retained in the department’s computer database. RULE 38(c). Owners involved with an updated water right will be notified by the department using the following procedures: (1) When a water right ownership update is filed before the printing of the decree, both the buyer and the seller will be notified of the receipt and recording of the ownership update and any split claims resulting from that ownership update. (2) When a water right ownership update is filed after the printing of the decree, the department will notify both the buyer, the seller, and the water court. If the right is being split, the reviewer should prepare a memorandum detailing the split to be made and send the memorandum and claim file(s) to the water court to implement the split.