LB 962 LB 962

LEGISLATIVE BILL 962

Approved by the Governor April 15, 2004

Introduced by Natural Resources Committee: Schrock, 38, Chairperson;

Friend, 10; Jones, 43; Kremer, 34; Louden, 49; Preister, 5;

Stuhr, 24; and Aguilar, 35; Baker, 44; Beutler, 28; Bromm, 23;

Brown, 6; Burling, 33; Combs, 32; Cudaback, 36; Erdman, 47;

Jensen, 20; Johnson, 37; Landis, 46; D. Pederson, 42; Price, 26;

Raikes, 25; Schimek, 27; Stuthman, 22; Wehrbein, 2

AN ACT relating to natural resources; to amend sections 2-1586, 2-3225,

46-229.02, 46-229.03, 46-2,127, 46-609, 46-651, 46-656.03,

46-656.04, 46-656.08, 46-656.11, 46-656.13, 46-656.21, 46-656.32,

46-656.35 to 46-656.37, 46-656.39, 46-656.41 to 46-656.48,

46-656.64, 46-680, 46-1207.01, 46-1207.02, 46-1212, 46-1228, 61-206,

66-1501, 66-1519, 66-1523, 66-1525, 66-1529.02, 77-27,137.02, and

77-3442, Reissue Revised Statutes of Nebraska, sections 2-1588,

13-520, 46-226.03, 46-229, 46-229.04, 46-230, 46-235.04, 46-237,

46-261, 46-290 to 46-296, 46-2,112, 46-2,119, 46-2,132, 46-2,135,

46-601.01, 46-613.02, 46-653, 46-656.05, 46-656.14, 46-656.19,

46-656.25 to 46-656.27, 46-656.31, 46-656.33, 46-656.38, 46-656.40,

46-656.62, 46-656.63, 46-656.65 to 46-656.67, 46-676, 46-678.01, and

81-15,176, Revised Statutes Supplement, 2002, and sections 46-241,

46-602, 46-656.01, 46-656.02, 46-656.07, 46-656.10, 46-656.12,

46-656.24, 46-656.29, 46-656.30, and 81-15,174, Revised Statutes

Supplement, 2003; to change tax levy provisions for natural

resources districts; to change provisions relating to management

plans, water appropriations, water policy, water wells, public water

supply, water transfers, and the Department of Natural Resources; to

provide a termination date for provisions relating to the Water

Policy Task Force; to transfer, change, and eliminate provisions

relating to the Nebraska Ground Water Management and Protection Act;

to require insurance for remedial action and change dates relating

to the Petroleum Release Remedial Action Act; to define and redefine

terms; to provide and change powers and duties; to create a board

and a fund; to provide for transfers of funds; to eliminate a

committee; to harmonize provisions; to provide operative dates; to

provide severability; to repeal the original sections; to outright

repeal sections 46-656.06, 46-656.09, 46-656.17, 46-656.18,

46-656.20, 46-656.22, 46-656.23, and 46-656.49, Reissue Revised

Statutes of Nebraska, and sections 46-656.15, 46-656.16, 46-656.28,

and 46-656.50 to 46-656.61, Revised Statutes Supplement, 2002; and

to declare an emergency.

Be it enacted by the people of the State of Nebraska,

Section 1. Section 2-1586, Reissue Revised Statutes of Nebraska, is

amended to read:

2-1586. It is hereby recognized The Legislature finds that it is —— —— —————— —————————— _____________________

 ——— _ ———— ___ the a public purpose of this the state to properly develop the water and

related land resources of the state and that it is in the public interest of——

this state (1) to financially assist in provide financial assistance to ———— ————— ——————————— —————— —— __________________________________

 ————————— _________ programs and projects necessary essential to the development, preservation,

 —————————— ___________ and maintenance of Nebraska's the state's water and related land resources,

including programs and projects for the (a) abatement of pollution, (b) ___ ___

 ————————— _________ ___ potential reduction of potential flood damages, (c) reservation of lands for

 ___ resource development projects, (d) provision of public irrigation facilities,

 ___ (e) preservation and development of fish and wildlife resources, (f) ___

protection and improvement of public lands, (g) provision of public outdoor ___

 ___ recreation lands and facilities, (h) provision and preservation of the waters

 ———— ___ of this the state for all beneficial uses, including domestic, agricultural,

 ___ ___ and manufacturing uses, (i) conservation of land resources, and (j) protection

of the health, safety, and general welfare of the people, of the State of _ —— ——— ————— ——

Nebraska, and (2) to financially assist provide financial assistance to ————————— ——————————— —————— ________________________________

natural resources districts in the preparation of management plans pursuant to

 ————————— ______________ section 46-656.12 49 of this act.

Sec. 2. Section 2-1588, Revised Statutes Supplement, 2002, is

amended to read:

2-1588. (1) Any money in the Nebraska Resources Development Fund

may be allocated by the commission in accordance with sections 2-1586 to

2-1595 for utilization by the department, by any state office, agency, board,

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or commission, or by any political subdivision of the State of Nebraska state ————— —— ———————— _____

which has the authority to develop the state's water and related land

resources. Such money may be allocated in the form of grants or loans or for

acquiring state interests in water and related land resources programs and

projects undertaken within the state. The allocation of funds to a program or

project in one form shall not of itself preclude additional allocations in the

same or any other form to the same program or project. Funds may also be

allocated to assist natural resources districts in the preparation of

 ————————— ______________ management plans as provided in section 46-656.12 49 of this act. Funds so

allocated shall not be subject to sections 2-1589 to 2-1595.

(2) No project, including all related phases, segments, parts, or

divisions, shall receive more than ten million dollars from the fund. On July

1, 1994, and each year thereafter, the director shall adjust the project cost

and payment limitation of this subsection by an amount equal to the average

percentage change in the federal Department of Commerce, Bureau of the Census,

Composite Construction Cost Index for the prior three years.

(3) Prior to September 1 of each even-numbered year, a biennial

report shall be made to the Governor and the Clerk of the Legislature

describing the work accomplished by the use of such development fund during

the immediately preceding two-year period. The report shall include a

complete financial statement. Each member of the Legislature shall receive a

 ——— —— copy of such report upon making a request for it to the director.

Sec. 3. Section 2-3225, Reissue Revised Statutes of Nebraska, is

amended to read:

2-3225. Each district shall have the power and authority to levy a

tax of not to exceed four and one-half cents on each one hundred dollars of

taxable valuation annually on all of the taxable property within such district

unless a higher levy is authorized pursuant to section 77-3444. Each district ________________

 ______________________________________________________________________________ shall also have the power and authority to levy a tax equal to the dollar

 ______________________________________________________________________________ amount by which its restricted funds budgeted to administer and implement

 ______________________________________________________________________________ ground water management activities and integrated management activities under

 ______________________________________________________________________________ the Nebraska Ground Water Management and Protection Act exceed its restricted

 ______________________________________________________________________________ funds budgeted to administer and implement ground water management activities

 ______________________________________________________________________________ and integrated management activities for FY2003-04, not to exceed one cent on

 ______________________________________________________________________________ each one hundred dollars of taxable valuation annually on all of the taxable

 _______________________________ property within the district. The proceeds of such tax shall be used,

together with any other funds which the district may receive from any source,

for the operation of the district. When adopted by the board, the levy shall

be certified by the secretary to the county clerk of each county which in

whole or in part is included within the district. Such levy shall be handled

by the counties in the same manner as other levies, and proceeds shall be

remitted to the district treasurer. Such levy shall not be considered a part

of the general county levy and shall not be considered in connection with any

limitation on levies of such counties.

Sec. 4. Section 13-520, Revised Statutes Supplement, 2002, is

amended to read:

13-520. The limitations in section 13-519 shall not apply to (1)

restricted funds budgeted for capital improvements, (2) restricted funds

expended from a qualified sinking fund for acquisition or replacement of

tangible personal property with a useful life of five years or more, (3)

restricted funds pledged to retire bonded indebtedness, used by a public

airport to retire interest-free loans from the Department of Aeronautics in

lieu of bonded indebtedness at a lower cost to the public airport, or used to

pay other financial instruments that are approved and agreed to before July 1,

1999, in the same manner as bonds by a governing body created under section

35-501, (4) restricted funds budgeted in support of a service which is the

subject of an agreement or a modification of an existing agreement whether

operated by one of the parties to the agreement or by an independent joint

entity or joint public agency, (5) restricted funds budgeted to pay for

repairs to infrastructure damaged by a natural disaster which is declared a

disaster emergency pursuant to the Emergency Management Act, or (6) restricted ——

funds budgeted to pay for judgments, except judgments or orders from the

Commission of Industrial Relations, obtained against a governmental unit which

require or obligate a governmental unit to pay such judgment, to the extent

such judgment is not paid by liability insurance coverage of a governmental

 __________________________________________________________________________ unit, or (7) the dollar amount by which restricted funds budgeted by a natural

 ______________________________________________________________________________ resources district to administer and implement ground water management

 ______________________________________________________________________________ activities and integrated management activities under the Nebraska Ground

 ______________________________________________________________________________ Water Management and Protection Act exceed its restricted funds budgeted to

 ______________________________________________________________________________ administer and implement ground water management activities and integrated

 ___________________________________ management activities for FY2003-04.

Sec. 5. Section 46-226.03, Revised Statutes Supplement, 2002, is

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amended to read:

46-226.03. For purposes of sections 46-226 to 46-243 and section 10 ______________

 ___________ of this act:

(1) Department means the Department of Natural Resources;

(2) Director means the Director of Natural Resources;

(3) Incidental underground water storage has the same meaning as in

 section 46-296;

(4) Induced ground water recharge means the process by which ground

water withdrawn from wells near a natural stream is replaced by surface water

flowing in the stream;

(5) Intentional underground water storage has the same meaning as in

 section 46-296;

(6) Public water supplier means a city, village, municipal

corporation, metropolitan utilities district, rural water district, natural

resources district, irrigation district, reclamation district, or sanitary and

improvement district which supplies or intends to supply water to inhabitants

of cities, villages, or rural areas for domestic or municipal purposes;

(7) Underground water storage has the same meaning as in section

 46-296; and

(8) Well means a well, subsurface collector, or other artificial

opening or excavation in the ground from which ground water flows under

natural pressure or is artificially withdrawn.

Sec. 6. Section 46-229, Revised Statutes Supplement, 2002, is

amended to read:

46-229. All appropriations for water must be for a some beneficial _ ————

or useful purpose and, except as provided in sections 46-290 to 46-294 and

 ———————————— _________________________ 46-2,122 to 46-2,125, when the appropriator owner of an appropriation or his

or her successor in interest ceases to use it for such purpose for more than

 ————— ____ three five consecutive years, the right may be terminated only by the director

following a hearing pursuant to sections 46-229.02 to 46-229.05. ————————— — ———————

Sec. 7. Section 46-229.02, Reissue Revised Statutes of Nebraska, is

amended to read:

46-229.02. If it shall appear that any water appropriation has not —— —— ————— —————— ———— ——— ————— ————————————— ——— ———

been used for some beneficial or useful purpose or having been so used at one ———— ———— ——— ———— —————————— —— —————— ——————— —— —————— ———— —— ———— —— ———

time has ceased to be used for such purpose for more than three consecutive ———— ——— —————— —— —— ———— ——— ———— ——————— ——— ———— ———— ————— ———————————

years, the department shall appoint a place and time of hearing, shall serve —————— ——— —————————— ————— ——————— — ————— ——— ———— —— ———————— ————— —————

notice upon the owners of such water appropriation or such ditch, canal, or —————— ———— ——— —————— —— ———— ————— ————————————— —— ———— —————— —————— ——

other diverting works to show cause by such time and at such place why the ————— ————————— ————— —— ———— ————— —— ———— ———— ——— —— ———— ————— ——— ———

water appropriation owned by such person should not be declared forfeited and ————— ————————————— ————— —— ———— —————— —————— ——— —— ———————— ————————— ———

annulled because such water appropriation had not been used for more than ———————— ——————— ———— ————— ————————————— ——— ——— ———— ———— ——— ———— ————

three consecutive years prior to receiving such notice, and shall also serve ————— ——————————— ————— ————— —— ————————— ———— ——————— ——— ————— ———— —————

such notice upon the landowners under such water appropriation, ditch, or ———— —————— ———— ——— —————————— ————— ———— ————— —————————————— —————— ——

canal. The notice shall contain a copy of section 46-229.04 and a department —————— ——— —————— ————— ——————— — ———— —— ——————— ————————— ——— — ——————————

telephone number which any person may call for information regarding ————————— —————— ————— ——— —————— ——— ———— ——— ——————————— —————————

sufficient cause for nonuse. —————————— ————— ——— ———————

A water appropriation may be canceled by the department without — ————— ————————————— ——— —— ———————— —— ——— —————————— ———————

complying with sections 46-229.01 to 46-229.04 if the owner of such ————————— ———— ———————— ————————— —— ————————— —— ——— ————— —— ————

appropriation fails to comply with any of the conditions of approval in the ————————————— ————— —— —————— ———— ——— —— ——— —————————— —— ———————— —— ———

 ——————— _____________________________________________________________________ permit. (1) If, based upon the results of a field investigation or upon

 ______________________________________________________________________________ information, however obtained, the department makes preliminary determinations

 ______________________________________________________________________________ (a) that an appropriation has not been used, in whole or in part, for a

 ______________________________________________________________________________ beneficial or useful purpose or having been so used at one time has ceased to

 ______________________________________________________________________________ be used, in whole or in part, for such purpose for more than five consecutive

 ______________________________________________________________________________ years and (b) that the department knows of no reason that constitutes

 ______________________________________________________________________________ sufficient cause, as provided in section 46-229.04, for such nonuse or that

 ______________________________________________________________________________ such nonuse has continued beyond the additional time permitted because of the

 ______________________________________________________________________________ existence of any applicable sufficient cause, the department shall serve

 ______________________________________________________________________________ notice of such preliminary determinations upon the owner or owners of such

 ______________________________________________________________________________ appropriation and upon any other person who is an owner of the land under such

 ______________________________________________________________________________ appropriation. Such notice shall contain the information required by section

 ______________________________________________________________________________ 46-229.03, shall be provided in the manner required by such section, and shall

 ______________________________________________________________________________ be posted on the department's web site. Each owner of the appropriation and

 ______________________________________________________________________________ any owner of the land under such appropriation shall have thirty days after

 ______________________________________________________________________________ the mailing or last publication, as applicable, of such notice to notify the

 ______________________________________________________________________________ department, on a form provided by the department, that he or she contests the

 ______________________________________________________________________________ department's preliminary determination of nonuse or the department's

 ______________________________________________________________________________ preliminary determination of the absence of sufficient cause for such nonuse.

 ______________________________________________________________________________ Such notification shall indicate the reason or reasons the owner is contesting

 ______________________________________________________________________________ the department's preliminary determination and include any information the

 ______________________________________________________________________________ owner believes is relevant to the issues of nonuse or sufficient cause for

 such nonuse. ____________

 ____________________________________________________________________ (2) If no owner of the appropriation or of the land under the

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 ______________________________________________________________________________ appropriation provides notification to the department in accordance with

 ______________________________________________________________________________ subsection (1) of this section, the director may issue an order canceling the

 ______________________________________________________________________________ appropriation in whole or in part. The extent of such cancellation shall not

 ______________________________________________________________________________ exceed the extent described in the department's notice to the owner or owners

 ______________________________________________________________________________ in accordance with subsection (1) of this section. A copy of the order

 ______________________________________________________________________________ canceling the appropriation, or part thereof, shall be posted on the

 ______________________________________________________________________________ department's web site and shall be provided to the owner or owners of the

 ______________________________________________________________________________ appropriation and to any other owner of the land under the appropriation in

 ______________________________________________________________________________ the same manner that notices are to be given in accordance with subsection

 _____________________________________________________ (2), (3), or (4) of section 46-229.03, as applicable.

 ____________________________________________________________________ (3) If an owner of the appropriation provides notification to the

 ______________________________________________________________________________ department in accordance with subsection (1) of this section, the department

 ______________________________________________________________________________ shall review the owner's stated reasons for contesting the department's

 ______________________________________________________________________________ preliminary determination and any other information provided with the owner's

 ______________________________________________________________________________ notice. If the department determines that the owner has provided sufficient

 ______________________________________________________________________________ information for the department to conclude that the appropriation should not

 ______________________________________________________________________________ be canceled, in whole or in part, it shall inform the owners of the

 ______________________________________________________________________________ appropriation, and any other owners of the land under the appropriation, of

 such determination. ___________________

 ____________________________________________________________________ (4) If the department determines that an owner has provided

 ______________________________________________________________________________ sufficient information to support the conclusion that the appropriation should

 ______________________________________________________________________________ be canceled only in part and if (a) the owner or owners filing the notice of

 ______________________________________________________________________________ contest agree in writing to such cancellation in part and (b) such owner or

 ______________________________________________________________________________ owners are the only known owners of the appropriation and of the land under

 ______________________________________________________________________________ the appropriation, the director may issue an order canceling the appropriation

 ______________________________________________________________________________ to the extent agreed to by the owner or owners and shall provide a copy of

 ___________________________________ such order to such owner or owners.

 ____________________________________________________________________ (5) If the department determines that subsections (2), (3), and (4)

 ______________________________________________________________________________ of this section do not apply, it shall schedule and conduct a hearing on the

 ______________________________________________________________________________ cancellation of the appropriation in whole or in part. Notice of the hearing

 ______________________________________________________________________________ shall be provided to the owner or owners who filed notices with the department

 ______________________________________________________________________________ pursuant to subsection (1) of this section, to any other owner of the

 ______________________________________________________________________________ appropriation known to the department, and to any other owner of the land

 ______________________________________________________________________________ under the appropriation. The notice shall be posted on the department's web

 ______________________________________________________________________________ site and shall be served or published, as applicable, in the manner provided

 ___________________________________________________________________ in subsection (2), (3), or (4) of section 46-229.03, as applicable.

 ____________________________________________________________________ (6) Following a hearing conducted in accordance with subsection (5)

 ______________________________________________________________________________ of this section and subsection (1) of section 46-229.04, the director shall

 ______________________________________________________________________________ render a decision by order. A copy of the order shall be provided to the

 ______________________________________________________________________________ owner or owners of the appropriation and to any other person who is an owner

 ______________________________________________________________________________ of the land under the appropriation. The copy of the order shall be posted on

 ______________________________________________________________________________ the department's web site and shall be served or published, as applicable, in

 ______________________________________________________________________________ the same manner that notices are to be given in accordance with subsection

 ______________________________________________________________________________ (2), (3), or (4) of section 46-229.03, as applicable, except that if

 ______________________________________________________________________________ publication is required, it shall be sufficient for the department to publish

 ______________________________________________________________________________ notice that an order has been issued. Any such published notice shall

 ______________________________________________________________________________ identify the land or lands involved and shall provide the address and

 ________________________________________________________________ telephone number that may be used to obtain a copy of the order.

Sec. 8. Section 46-229.03, Reissue Revised Statutes of Nebraska, is

amended to read:

46-229.03. (1) The notice shall contain the date and place of ——— —————— ————— ——————— ——— ———— ——— ————— ——

hearing, a description of the water appropriation, the number thereof upon the ———————— — ——————————— —— ——— ————— —————————————— ——— —————— ——————— ———— ———

books and records of the department, the date of priority, the point of ————— ——— ——————— —— ——— ——————————— ——— ———— —— ————————— ——— ————— ——

diversion, and a description of the lands which are located under such water —————————— ——— — ——————————— —— ——— ————— ————— ——— ——————— ————— ———— —————

appropriation. It shall call upon all persons interested in such water —————————————— —— ————— ———— ———— ——— ——————— —————————— —— ———— —————

appropriation to show cause why all or part of the same should not be canceled ————————————— —— ———— ————— ——— ——— —— ———— —— ——— ———— —————— ——— —— ————————

and annulled. The notice shall be served personally or by registered or ——— ————————— ——— —————— ————— —— —————— —————————— —— —— —————————— ——

certified mail at least thirty days before the date of hearing upon those ————————— ———— —— ————— —————— ———— —————— ——— ———— —— ——————— ———— —————

owning or controlling the water appropriation and the ditch, canal, or —————— —— ——————————— ——— ————— ————————————— ——— ——— —————— —————— ——

reservoir for the purpose of using or storing water for any purpose if they ————————— ——— ——— ——————— —— ————— —— ——————— ————— ——— ——— ——————— —— ————

are known to the department to be the owners thereof and maintain an office ——— ————— —— ——— —————————— —— —— ——— —————— ——————— ——— ———————— —— ——————

within the State of Nebraska. —————— ——— ————— —— —————————

(2) If the persons named in subsection (1) of this section do not ——— —— ——— ——————— ————— —— —————————— ——— —— ———— ——————— —— ———

maintain an office within the State of Nebraska, then such notice shall be ———————— —— —————— —————— ——— ————— —— ————————— ———— ———— —————— ————— ——

served by the publication in some legal newspaper published or of general —————— —— ——— ——————————— —— ———— ————— ————————— ————————— —— —— ———————

circulation in the county in which the place of diversion of such water ——————————— —— ——— —————— —— ————— ——— ————— —— ————————— —— ———— —————

appropriation is located, once a week for three consecutive weeks prior to the ————————————— —— ———————— ———— — ———— ——— ————— ——————————— ————— ————— —— ———

date of hearing. ———— —— ————————

(3) Except as provided in subsection (4) of this section, a copy of ——— —————— —— ———————— —— —————————— ——— —— ———— ———————— — ———— ——

such notice shall be personally served or sent by either registered or ———— —————— ————— —— —————————— —————— —— ———— —— —————— —————————— ——

certified mail to all other persons appearing from the records of the county ————————— ———— —— ——— ————— ——————— ————————— ———— ——— ——————— —— ——— ——————

clerk or register of deeds to be landowners under such appropriation. The ————— —— ———————— —— ————— —— —— —————————— ————— ———— —————————————— ___

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 ______________________________________________________________________________ notice provided by the department in accordance with subsection (1) or (5) of

 ______________________________________________________________________________ section 46-229.02 shall contain: (a) A description of the appropriation; (b)

 ______________________________________________________________________________ the number assigned to the appropriation by the department; (c) the date of

 ______________________________________________________________________________ priority; (d) the point of diversion; (e) if the notice is published, the

 ______________________________________________________________________________ section or sections of land which contain the lands located under such

 ______________________________________________________________________________ appropriation; (f) if the notice is served by personal service or by

 ______________________________________________________________________________ registered or certified mail, a description of the lands which are located

 ______________________________________________________________________________ under such appropriation, a description of the information used by the

 ______________________________________________________________________________ department to reach the preliminary determinations of nonuse, and a copy of

 ______________________________________________________________________________ section 46-229.04; (g) a description of the owner's options in response to the

 ______________________________________________________________________________ notice; (h) a department telephone number which any person may call during

 ______________________________________________________________________________ normal business hours for more information regarding the owner's rights and

 ______________________________________________________________________________ options, including what constitutes sufficient cause for nonuse; (i) if the

 ______________________________________________________________________________ notice is provided in accordance with subsection (1) of section 46-229.02 and

 ______________________________________________________________________________ is mailed, a copy of the form that such owner may file to request a

 ______________________________________________________________________________ departmental hearing; (j) if the notice is provided in accordance with

 ______________________________________________________________________________ subsection (1) of section 46-229.02 and is published, the location where the

 ______________________________________________________________________________ owner may obtain a form to file to request a departmental hearing; and (k) if

 ______________________________________________________________________________ the notice is provided in accordance with subsection (5) of section 46-229.02,

 ____________________________________________ the date, time, and location of the hearing.

 ____________________________________________________________________ (2) For any owner whose name and address are known to the department

 ______________________________________________________________________________ or can be reasonably obtained by the department, the notice shall be served by

 ______________________________________________________________________________ personal service or by registered mail or certified mail. Any landowner's

 ______________________________________________________________________________ name or address shall be considered reasonably obtainable if that person is

 ______________________________________________________________________________ listed as an owner of the land involved, on the records of the county clerk or

 ______________________________________________________________ register of deeds for the county in which the land is located.

 ____________________________________________________________________ (3) For any owner whose name and address are not known to the

 ______________________________________________________________________________ department and cannot reasonably be obtained by the department, such notice

 ______________________________________________________________________________ shall be served by publication in a legal newspaper published or of general

 ______________________________________________________________________________ circulation in any county in which the place of diversion is located and in a

 ______________________________________________________________________________ legal newspaper published or of general circulation in each county containing

 ______________________________________________________________________________ land for which the right to use water under the appropriation is subject to

 ______________________________________________________________________________ cancellation. Each such publication shall be once each week for three

 consecutive weeks. __________________

(4) Landowners whose property under such appropriation is located

within the corporate limits of a city or village shall be served by the

publication of such notice in a legal newspaper published or of general

circulation in the county in which the city or village is located. The notice

shall be published once a each week for three consecutive weeks. prior to the — ____ _ ————— —— ———

date of hearing. ———— —— ————————

Sec. 9. Section 46-229.04, Revised Statutes Supplement, 2002, is

amended to read:

46-229.04. (1) At such hearing the verified field investigation

report of an employee of the department shall be prima facie evidence for the

forfeiture and annulment of such water appropriation. If no one person ——— ______

appears at the hearing, such water appropriation or unused part thereof shall

be declared forfeited and annulled. If someone interested an interested ——————— —————————— ______________

 ______ person appears and contests the same, the department shall hear evidence, and

if it appears that such water has not been put to a beneficial use or has

ceased to be used for such purpose for more than three five consecutive years, ————— ____

the same shall be declared canceled and annulled unless the department finds

 ___ that (a) there has been sufficient cause for such nonuse as provided for in

 ——— ________________ ____________________________ subsection (3) (2), (3), or (4) of this section or (b) subsection (5) or (6)

 _______________________ of this section applies.

(2) If it is determined that such water has not been put to —— —— —— —————————— ———— ———— ————— ——— ——— ———— ——— ——

beneficial use or has ceased to be used for such purpose for more than ten —————————— ——— —— ——— —————— —— —— ———— ——— ———— ——————— ——— ———— ———— ———

consecutive years, the water right shall be declared canceled and annulled, ——————————— —————— ——— ————— ————— ————— —— ———————— ———————— ——— —————————

except that for any water appropriation or part of a water appropriation on —————— ———— ——— ——— ————— ————————————— —— ———— —— — ————— ————————————— ——

any tract of land under separate ownership, sufficient cause for nonuse shall ——— ————— —— ———— ————— ———————— —————————— —————————— ————— ——— —————— —————

be deemed to exist even if the period of nonuse was for more than ten —— —————— —— ————— ———— —— ——— —————— —— —————— ——— ——— ———— ———— ———

consecutive years if the landowner used the available water supply on only ——————————— ————— —— ——— ————————— ———— ——— ————————— ————— —————— —— ————

part of the land under the water appropriation because of an inadequate water ———— —— ——— ———— ————— ——— ————— ————————————— ——————— —— —— —————————— —————

 supply. ———————

(3) If the period of nonuse did not exceed ten consecutive years, ——— —— ——— —————— —— —————— ——— ——— —————— ——— ——————————— ——————

sufficient cause shall be deemed to exist if such nonuse was a result of one —————————— ————— ————— —— —————— —— ————— —— ———— —————— ——— — —————— —— ———

or more of the following: —— ———— —— ——— ——————————

(a) The land subject to the appropriation was placed under an ——— ——— ———— ——————— —— ——— ————————————— ——— —————— ————— ——

acreage reserve or production quota program or otherwise withdrawn from use as ——————— ——————— —— —————————— ————— ——————— —— ————————— ————————— ———— ——— ——

required for participation in any federal or state program; ———————— ——— ————————————— —— ——— ——————— —— ————— ————————

(b) Federal, state, or local laws, rules, or regulations temporarily ——— ———————— —————— —— ————— ————— —————— —— ——————————— ———————————

prevented or restricted such use; ————————— —— —————————— ———— ————

(c) The available water supply was inadequate to enable the owner to ——— ——— ————————— ————— —————— ——— —————————— —— —————— ——— ————— ——

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use the water for a beneficial or useful purpose; ——— ——— ————— ——— — —————————— —— —————— ————————

(d) Use of the water was unnecessary because of climatic conditions; ——— ——— —— ——— ————— ——— ——————————— ——————— —— ———————— ———————————

(e) Circumstances were such that a prudent person, following the ——— ————————————— ———— ———— ———— — ——————— ——————— ————————— ———

dictates of good husbandry, would not have been expected to use the water; ———————— —— ———— —————————— ————— ——— ———— ———— ———————— —— ——— ——— ——————

(f) The works, diversions, or other facilities essential to use of ——— ——— —————— ——————————— —— ————— —————————— ————————— —— ——— ——

the water were destroyed by a cause not within the control of the owner of the ——— ————— ———— ————————— —— — ————— ——— —————— ——— ——————— —— ——— ————— —— ———

appropriation, and good faith efforts to repair or replace the works, —————————————— ——— ———— ————— ——————— —— —————— —— ——————— ——— ——————

diversions, or facilities have been and are being made; ——————————— —— —————————— ———— ———— ——— ——— ————— —————

(g) The owner of the appropriation was in active involuntary service ——— ——— ————— —— ——— ————————————— ——— —— —————— ——————————— ———————

in the armed forces of the United States or was in active voluntary service —— ——— ————— —————— —— ——— —————— —————— —— ——— —— —————— ————————— ———————

during a time of crisis; or —————— — ———— —— ——————— ——

(h) Legal proceedings prevented or restricted use of the water. ——— ————— ——————————— ————————— —— —————————— ——— —— ——— ——————

The department may specify by rule and regulation other ——— —————————— ——— ——————— —— ———— ——— —————————— —————

circumstances which shall be deemed to constitute sufficient cause. ————————————— ————— ————— —— —————— —— —————————— —————————— ——————

(4) If at the time of the hearing there is an application for ——— —— —— ——— ———— —— ——— ——————— ————— —— —— ——————————— ———

incidental or intentional underground water storage pending before the —————————— —— ——————————— ——————————— ————— ——————— ——————— —————— ———

department and filed by the owner of the appropriation, the proceedings shall —————————— ——— ————— —— ——— ————— —— ——— —————————————— ——— ——————————— —————

be consolidated. Sufficient cause for nonuse shall be deemed to exist for up —— ————————————— ___________________________________________________________

 ______________________________________________________________________________ to thirty consecutive years if such nonuse was caused by the unavailability of

 ______________________________________________________________________________ water for that use. For a river basin, subbasin, or reach that has been

 ______________________________________________________________________________ designated as overappropriated pursuant to section 53 of this act or

 ______________________________________________________________________________ determined by the department to be fully appropriated pursuant to section 54

 ______________________________________________________________________________ of this act, the period of time within which sufficient cause for nonuse

 ______________________________________________________________________________ because of the unavailability of water may be deemed to exist may be extended

 ______________________________________________________________________________ beyond thirty years by the department upon petition therefor by the owner of

 ______________________________________________________________________________ the appropriation if the department determines that an integrated management

 ______________________________________________________________________________ plan being implemented in the river basin, subbasin, or reach involved is

 ______________________________________________________________________________ likely to result in restoration of a usable water supply for the

 appropriation. ______________

 ____________________________________________________________________ (3) Sufficient cause for nonuse shall be deemed to exist

 ___________________________________________________________________________ indefinitely if such nonuse was the result of one or more of the following:

 ____________________________________________________________________ (a) For any tract of land under separate ownership, the available

 ______________________________________________________________________________ supply was used but on only part of the land under the appropriation because

 ______________________________ of an inadequate water supply;

 ____________________________________________________________________ (b) The appropriation is a storage appropriation and there was an

 ______________________________________________________________________________ inadequate water supply to provide the water for the storage appropriation or

 ______________________________________________________________________________ less than the full amount of the storage appropriation was needed to keep the

 __________________ reservoir full; or

 ____________________________________________________________________ (c) The appropriation is a storage-use appropriation and there was

 ______________________________________________________________________________ an inadequate water supply to provide the water for the appropriation or use

 ____________________________________________________________________ of the storage water was unnecessary because of climatic conditions.

 ____________________________________________________________________ (4) Sufficient cause for nonuse shall be deemed to exist for up to

 ______________________________________________________________________________ fifteen consecutive years if such nonuse was a result of one or more of the

 following: __________

 ____________________________________________________________________ (a) Federal, state, or local laws, rules, or regulations temporarily

 _________________________________ prevented or restricted such use;

 ____________________________________________________________________ (b) Use of the water was unnecessary because of climatic conditions;

 ____________________________________________________________________ (c) Circumstances were such that a prudent person, following the

 ____________________________________________________________________________ principles of good husbandry, would not have been expected to use the water;

 ____________________________________________________________________ (d) The works, diversions, or other facilities essential to use the

 ______________________________________________________________________________ water were destroyed by a cause not within the control of the owner of the

 ______________________________________________________________________________ appropriation and good faith efforts to repair or replace the works,

 _______________________________________________________ diversions, or facilities have been and are being made;

 ____________________________________________________________________ (e) The owner of the appropriation was in active involuntary service

 ______________________________________________________________________________ in the armed forces of the United States or was in active voluntary service

 ________________________ during a time of crisis;

 __________________________________________________________________ (f) Legal proceedings prevented or restricted use of the water; or

 ____________________________________________________________________ (g) The land subject to the appropriation is under an acreage

 ______________________________________________________________________________ reserve program or production quota or is otherwise withdrawn from use as

 ______________________________________________________________________________ required for participation in any federal or state program or such land

 ______________________________________________________________________________ previously was under such a program but currently is not under such a program

 ______________________________________________________________________________ and there have been not more than five consecutive years of nonuse on that

 _________________________________________________ land since that land was last under that program.

 ____________________________________________________________________ The department may specify by rule and regulation other

 ______________________________________________________________________________ circumstances that shall be deemed to constitute sufficient cause for nonuse

 ________________________ for up to fifteen years.

 ____________________________________________________________________ (5) When an appropriation is held in the name of an irrigation

 ______________________________________________________________________________ district, reclamation district, public power and irrigation district, or

 ______________________________________________________________________________ mutual irrigation company or canal company and the director determines that

 ______________________________________________________________________________ water under that appropriation has not been used on a specific parcel of land

 ______________________________________________________________________________ for more than five years and that no sufficient cause for such nonuse exists,

 ______________________________________________________________________________ the right to use water under that appropriation on that parcel shall be

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 ______________________________________________________________________________ terminated and notice of the termination shall be posted on the department's

 ______________________________________________________________________________ web site and shall be given in the manner provided in subsection (2), (3), or

 ______________________________________________________________________________ (4) of section 46-229.03. The district or company holding such right shall

 ______________________________________________________________________________ have five years after the determination to assign the right to use that

 ______________________________________________________________________________ portion of the appropriation to other land within and served by the district

 ______________________________________________________________________________ or company or to file an application for a transfer in accordance with section

 ______________________________________________________________________________ 46-290. The department shall be notified of any such assignment within thirty

 ______________________________________________________________________________ days thereafter. If the district or company does not assign the right to use

 ______________________________________________________________________________ that portion of the appropriation to other land, does not file an application

 ______________________________________________________________________________ for a transfer within the five-year period, or does not notify the department

 ______________________________________________________________________________ within thirty days after any such assignment, that portion of the

 ______________________________________________________________________________ appropriation shall be canceled without further proceedings by the department

 ______________________________________________________________________________ and the district or company involved shall be so notified by the department.

 ______________________________________________________________________________ During the time within which assignment of a portion of an appropriation is

 ______________________________________________________________________________ pending, the allowable diversion rate for the appropriation involved shall be

 ______________________________________________________________________________ reduced, as necessary, to avoid inconsistency with the rate allowed by section

 ______________________________________________________________________________ 46-231 or with any greater rate previously approved for such appropriation by

 _______________________________________________________ the director in accordance with section 10 of this act.

 ____________________________________________________________________ (6) When it is determined by the director that an appropriation, for

 ______________________________________________________________________________ which the location of use has been temporarily transferred in accordance with

 ______________________________________________________________________________ sections 46-290 to 46-294, has not been used at the new location for more than

 ______________________________________________________________________________ five years and that no sufficient cause for such nonuse exists, the right to

 ______________________________________________________________________________ use that appropriation at the temporary location of use shall be terminated.

 ______________________________________________________________________________ Notice of that termination shall be posted on the department's web site and

 ______________________________________________________________________________ shall be given in the manner provided in subsection (2), (3), or (4) of

 ______________________________________________________________________________ section 46-229.03. The right to reinitiate use of that appropriation at the

 ______________________________________________________________________________ location of use prior to the temporary transfer shall continue to exist for

 ______________________________________________________________________________ five years after the director's determination, but if such use is not

 ______________________________________________________________________________ reinitiated at that location within such five-year period, the appropriation

 ______________________________________________________________________________ shall be subject to cancellation in accordance with sections 46-229 to

 46-229.04. __________

 ____________________________________________________________________ (7) If at the time of a hearing conducted in accordance with

 ______________________________________________________________________________ subsection (1) of this section there is an application for incidental or

 ______________________________________________________________________________ intentional underground water storage pending before the department and filed

 _________________________________________________________________________ by the owner of the appropriation, the proceedings shall be consolidated.

 _________________________________________________________ Sec. 10. When a departmental proceeding that is conducted pursuant

 ______________________________________________________________________________ to sections 46-229 to 46-229.04 concerns the partial cancellation of an

 ______________________________________________________________________________ appropriation, the department may receive evidence on the question of whether,

 ______________________________________________________________________________ following such partial cancellation, a reduction in the rate of diversion to

 ______________________________________________________________________________ the maximum rate prescribed in section 46-231 would result in an authorized

 ______________________________________________________________________________ diversion rate less than the rate necessary, in the interests of good

 ______________________________________________________________________________ husbandry, for the production of crops on the lands that remain subject to the

 ______________________________________________________________________________ appropriation. If the director determines, based on a preponderance of the

 ______________________________________________________________________________ evidence, that such rate would be less than the rate necessary, in the

 ______________________________________________________________________________ interests of good husbandry, for the production of crops, he or she may

 ______________________________________________________________________________ approve a diversion rate for the remaining portion of the appropriation

 ______________________________________________________________________________ greater than the maximum rate authorized by section 46-231. Such increased

 ______________________________________________________________________________ rate can be no greater than the rate authorized for the appropriation prior to

 ______________________________________________________________________________ the partial cancellation and no greater than the rate determined by the

 ______________________________________________________________________________ director to be necessary, in the interests of good husbandry, for the

 __________________________________________________________________________ production of crops on the lands that remain subject to the appropriation.

Sec. 11. Section 46-230, Revised Statutes Supplement, 2002, is

amended to read:

 ___ 46-230. (1) As the adjudication of a stream progresses and as each

claim is finally adjudicated, the director shall make and cause to be entered

of record in his or her office an order determining and establishing the

priorities of right to use the water of such stream, the amount of the

appropriation of the persons claiming water from such stream and the character

of use for which each appropriation is found to have been made, and the

address of the owner of each water appropriation. It shall be the duty of —— ————— —— ——— ———— ——

every owner of an appropriation to give notice to the department of its ————— ————— —— —— ————————————— —— ———— —————— —— ——— —————————— —— ———

address and any change of its address or of the name of the owner of the ——————— ——— ——— —————— —— ——— ——————— —— —— ——— ———— —— ——— ————— —— ———

appropriation. Notification shall be in such form and shall include such —————————————— ———————————— ————— —— —— ———— ———— ——— ————— ——————— ————

evidence of ownership as the director may by regulation require. Upon receipt ———————— —— ————————— —— ——— ———————— ——— —— —————————— ———————— ———— ———————

of such notice, the department shall update its records. The department shall —— ———— ——————— ——— —————————— ————— —————— ——— ———————— ——— —————————— —————

not collect a fee for the filing of the notice. ——— ——————— — ——— ——— ——— —————— —— ——— ———————

 ____________________________________________________________________ (2) Whenever requested by the department, the owner of any

 ______________________________________________________________________________ appropriation not held by an irrigation district, reclamation district, public

 ______________________________________________________________________________ power and irrigation district, or mutual irrigation or canal company shall

 ______________________________________________________________________________ provide the department with the name, address, and telephone number of each

 ______________________________________________________________________________ then-current owner of the appropriation and with the name, address, and

 ______________________________________________________________________________ telephone number of any tenant or other person who is authorized by the owner

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 ______________________________________________________________________________ to receive opening and closing notices and other departmental communications

 ______________________________________________________________________________ relating to the appropriation. Each appropriation owner shall also notify the

 ______________________________________________________________________________ department any time there is a change in any of such names, addresses, or

 ______________________________________________________________________________ telephone numbers. Notice of ownership changes may be provided to the

 ______________________________________________________________________________ department in the manner provided in section 76-2,124 or in any other manner

 ______________________________________________________________________________ authorized by the department. If notice of an ownership change is provided

 ______________________________________________________________________________ other than in accordance with such section, the notice shall include such

 ______________________________________________________________________________ evidence of ownership as the director may require. Notice of all other

 ______________________________________________________________________________ changes may be provided in any manner authorized by the department. Upon

 ______________________________________________________________________________ receipt of any new information, the department shall update its records. The

 ______________________________________________________________________________ department shall not collect a fee for the filing of any such information or

 _________________________ for updating its records.

Sec. 12. Section 46-235.04, Revised Statutes Supplement, 2002, is

amended to read:

46-235.04. (1) Induced ground water recharge appropriations shall

be administered in the same manner as prescribed by Chapter 46, article 2, for

other appropriations. Appropriations for induced ground water recharge may be

canceled and annulled as provided in section 46-229.04 sections 46-229.02 to ——————— ————————— _______________________

 46-229.05. _________

(2) The department may approve the transfer of priority dates among

water wells, including replacement water wells, located within a single well

field that are subject to an induced recharge appropriation, or are part of an

application for such an appropriation, to improve the water well field's —————

efficiency of operation with respect to river flow. The transfers shall be

approved if the department finds that (a) the transfers would not increase the

quantity of induced ground water recharge under the original priority date or

application, (b) the amount of water withdrawn from water wells under the

original priority date or application would not increase, (c) the quantity of

streamflow needed to sustain well field operation under the original priority

date would decrease, (d) the transfer would not impair the rights of other

appropriators, and (e) the transfer is in the public interest in the same

manner as provided in section 46-235. The department may assign multiple

priority dates to a single water well that replaces two or more water wells

which are abandoned. Replacement water wells installed pursuant to this

subsection must be installed within the same well field as the abandoned water

well. Notice shall be furnished and any hearing held as provided in sections

46-291 to 46-293 and 46-292. For purposes of this subsection, single well —— —————— __________

field means those contiguous tracts of land owned or leased by the applicant

containing two or more water wells subject to induced recharge.

Sec. 13. Section 46-237, Revised Statutes Supplement, 2002, is

amended to read:

 ___ 46-237. (1) Within six months after approval and allowance of an

application other than an application to appropriate public waters for induced

ground water recharge, the applicant shall file in the office of the

department a map or plat which shall conform to the rules and regulations of

the department as to material, size, and coloring, and be upon a scale of not ——— _ —— ———— — ————— —— ———

less than two inches to the mile scale. Such map or plat shall show the ———— ———— ——— —————— —— ——— ———— _____

source from which the proposed appropriation is to be taken and all proposed

dams, dikes, reservoirs, canals, powerhouses, and other structures for the

purpose of storing, conveying, or using water for any purpose whatsoever and

their true courses or positions in connection with the boundary lines and

corners of lands which they occupy. Land listed for irrigation shall be shown ———— —————— ——— —————————— ————— —— —————

in government subdivisions or fractions thereof, as the case may be, and no —— —————————— ———————————— —— ————————— ———————— —— ——— ———— ——— ——— ——— ——

 ______________________________________________________________________________ The lands to be irrigated shall be identified in the manner prescribed by the

 _________________ department. No rights shall be deemed to have been acquired until the

provisions of this section have been complied with. Failure Except as ——————— __________

 ____________________________________________________ provided in subsection (2) of this section, failure to so comply shall work a

forfeiture of the appropriation and all rights thereunder.

 ____________________________________________________________________ (2) For any appropriation with a priority date earlier than 1958 but

 ______________________________________________________________________________ for which either the appropriator has failed to comply with the requirements

 ______________________________________________________________________________ of subsection (1) of this section or a map or plat required by such subsection

 ______________________________________________________________________________ has been lost or destroyed through no fault of the appropriator, the lack of

 ______________________________________________________________________________ such compliance or of such map or plat shall not be the basis for a

 ______________________________________________________________________________ departmental adjudication or cancellation of the appropriation and the

 ______________________________________________________________________________ appropriation shall not be subject to legal challenge by any party on that

 basis.______

 ____________________________________________________________________ (3) The department may notify any appropriator subject to subsection

 ______________________________________________________________________________ (2) of this section of the need to file a map or plat of lands under such

 ______________________________________________________________________________ appropriation. Unless the department grants an extension for good cause

 ______________________________________________________________________________ shown, the appropriator shall file the required map within three years after

 ______________________________________________________________________________ that notification and such map shall conform to the rules and regulations of

 ______________________________________________________________________________ the department as to material, size, coloring, and scale. If the appropriator

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 ______________________________________________________________________________ fails to comply, the department may deny the appropriator the right to divert

 ______________________________________________________________________________ or withdraw water subject to the appropriation until compliance has been

 achieved. _________

Sec. 14. Section 46-241, Revised Statutes Supplement, 2003, is

amended to read:

46-241. (1) Every person intending to construct and operate a

storage reservoir for irrigation or any other beneficial purpose or intending

to construct and operate a facility for intentional underground water storage

and recovery shall, except as provided in subsections (2) and (3) of this

section and section 46-243, make an application to the department upon the

prescribed form and provide such plans, drawings, and specifications as are

necessary to comply with section 46-257. Such application shall be filed and

proceedings had thereunder in the same manner and under the same rules and

regulations as other applications. Upon the approval of such application

under this section and any approval required by section 46-257, the applicant

shall have the right to construct and impound in such reservoir, or store in

and recover from such underground water storage facility, all water not

otherwise appropriated and any appropriated water not needed for immediate

use, to construct and operate necessary ditches for the purpose of conducting

water to such storage reservoir or facility, and to condemn land for such

reservoir, ditches, or other facility. The procedure to condemn property

shall be exercised in the manner set forth in sections 76-704 to 76-724.

(2) Any person intending to construct an on-channel reservoir with a

water storage impounding capacity of less than fifteen acre-feet measured

below the crest of the lowest open outlet or overflow shall be exempt from

subsection (1) of this section as long as there will be (a) no diversion or

 _______________________________________ withdrawal of water from the reservoir for any purpose other than for watering

range livestock and (b) no release of water from the reservoir for the purpose _______________ —— ————— ——— ——— ———————

 —— ______________________ _________________ of to provide water for a downstream diversion or withdrawal for any purpose

 ________________________________________ other than for watering range livestock. This subsection does not exempt any

person from the requirements of section 46-257 or 54-2412.

(3) Any person intending to construct a reservoir, holding pond, or

lagoon for the sole purpose of holding, managing, or disposing of animal or

human waste shall be exempt from subsection (1) of this section. This

subsection does not exempt any person from any requirements of section 46-233,

46-257, or 54-2412.

(4) Every person intending to modify or rehabilitate an existing

storage reservoir so that its impounding capacity is to be increased shall

comply with subsection (1) of this section.

(5) The owner of a storage reservoir or facility shall be liable for

all damages arising from leakage or overflow of the water therefrom or from

the breaking of the embankment of such reservoir. The owner or possessor of a

reservoir or intentional underground water storage facility does not have the

right to store water in such reservoir or facility during the time that such

water is required in ditches for direct irrigation or for any reservoir or

facility holding a senior right. Every person who owns, controls, or operates

a reservoir or intentional underground water storage facility, except

political subdivisions of this state, shall be required to pass through the

outlets of such reservoir or facility, whether presently existing or hereafter

constructed, a portion of the measured inflows to furnish water for livestock

in such amounts and at such times as directed by the department to meet the

requirements for such purposes as determined by the department, except that a

reservoir or facility owner shall not be required to release water for this

purpose which has been legally stored. Any dam shall be constructed in

accordance with section 46-257, and the outlet works shall be installed so

that water may be released in compliance with this section. The requirement

for outlet works may be waived by the department upon a showing of good cause.

Whenever any person diverts water from a public stream and returns it into the

same stream, he or she may take out the same amount of water, less a

reasonable deduction for losses in transit, to be determined by the

department, if no prior appropriator for beneficial use is prejudiced by such

 diversion.

(6) An application for storage and recovery of water intentionally

stored underground may be made only by an appropriator of record who shows, by

documentary evidence, sufficient interest in the underground water storage

facility to entitle the applicant to the water requested.

Sec. 15. Section 46-261, Revised Statutes Supplement, 2002, is

amended to read:

46-261. (1) The Department of Natural Resources may require an

appropriator or his or her agent to furnish the department, by April 1 in any

 ______ year, a list or map of all lands to be irrigated, the acreage of each tract,

and the names of the owners, controllers, or officers for every ditch,

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reservoir, or other device for appropriating, diverting, carrying, or

distributing water to be used as a basis for the distribution of water until

April 1 of the following year, and if so ordered such a list or map shall be ______

furnished by the appropriator or his or her agent to the department.

(2) By April 1, any district or company which has transferred an

appropriation pursuant to sections 46-2,127 to 46-2,129 in the previous

calendar year shall provide the department:

 ________ (a) A legal description and list or map of the tracts of land

receiving and transferring an appropriation of water, or portion thereof,

within the district or company;

(b) The water appropriation permit number under sections 46-233 to

46-235 and the priority date of the water appropriation;

(c) A statement on whether objections were filed, whether a hearing

was held, and how consent was given;

(d) The effective date of the transfer of the appropriation; and

(e) A statement summarizing the water use on the receiving and

transferring tracts of land.

(3) The department may require the owner or controller of any canal

or ditch to install an approved recording gauge at one or more specific

locations to record the amount of water used.

 ____________________________________________________________________ (4) For any appropriation not held by an irrigation district, a

 ______________________________________________________________________________ reclamation district, a public power and irrigation district, or a mutual

 ______________________________________________________________________________ irrigation or canal company, the department may require the owner of an

 ______________________________________________________________________________ appropriation for irrigation purposes to provide the department with any or

 ______________________________________________________________________________ all of the following information relative to the use of water under the

 ______________________________________________________________________________ appropriation during the previous irrigation season: (a) A list or map of all

 ______________________________________________________________________________ lands irrigated; (b) the acreage of each tract irrigated; (c) the rate at

 ______________________________________________________________________________ which water was diverted; (d) the amount diverted; (e) for any lands under the

 ______________________________________________________________________________ appropriation that were not irrigated, any sufficient cause, as described in

 ______________________________________________________________________________ section 46-229.04, which the appropriator claims was the reason for such

 ______________________________________________________________________________ nonuse; and (f) any other information needed by the department to properly

 ______________________________________________________________________________ monitor and administer use of water under the appropriation. If the

 ______________________________________________________________________________ appropriator claims sufficient cause for nonuse, he or she shall also provide

 ______________________________________________________________________________ the department with any evidence the department requires as a condition for

 __________________________________________________________________ accepting such claimed cause as sufficient cause to excuse nonuse.

(5) The department shall not furnish may deny an appropriator the ___ ————— ——— ——————— _______________________________

 _________ right to any water to be delivered to or used by or through any ditch,

reservoir, or other contrivance for the appropriation, use, or storage of

water until this section has been complied with if the appropriator is not in ————— ———— ——————— ——— ———— ———————— ———— _____________________________

 ______________________________________________________________________________ compliance with this section, with subsection (2) of section 46-230, or with

 ______________________________________________________________________________ any conditions of any permit, notice, or order of the department concerning

 _________________ ________________ the appropriation. The department may construct bars or dams or may install

 ___________________________________ such other devices as are necessary to prevent such delivery or use.

Sec. 16. Section 46-290, Revised Statutes Supplement, 2002, is

amended to read:

46-290. Except as provided in sections 46-2,120 to 46-2,130, any —————— —— ———————— —— ———————— ———————— —— ————————— ———

person having a permit to appropriate water for beneficial purposes issued —————— —————— — —————— —— ——————————— ————— ——— —————————— ———————— ——————

pursuant to Chapter 46 who desires to transfer the use of such water ———————— —— ——————— —— ——— ——————— —— ———————— ——— ——— —— ———— —————

appropriation to a different location within the same river basin than that ————————————— —— — ————————— ———————— —————— ——— ———— ————— ————— ———— ————

specified in the permit shall apply for approval of such change to the ————————— —— ——— —————— ————— ————— ——— ———————— —— ———— —————— —— ———

Department of Natural Resources. (1)(a) Except as provided in this section —————————— —— ——————— —————————— _________________________________________

 ______________________________________________________________________________ and sections 46-2,120 to 46-2,130, any person having a permit to appropriate

 ______________________________________________________________________________ water for beneficial purposes issued pursuant to sections 46-233 to 46-235,

 ______________________________________________________________________________ 46-241, or 46-242 and who desires (i) to transfer the use of such

 ______________________________________________________________________________ appropriation to a location other than the location specified in the permit,

 ______________________________________________________________________________ (ii) to change that appropriation to a different type of appropriation as

 ______________________________________________________________________________ provided in subsection (3) of this section, or (iii) to change the purpose for

 ______________________________________________________________________________ which the water is to be used under a natural-flow or storage-use

 ______________________________________________________________________________ appropriation to a purpose not at that time permitted under the appropriation

 ______________________________________________________________________________ shall apply for approval of such transfer or change to the Department of

 Natural Resources. __________________

 ____________________________________________________________________ (b) The application for such approval shall contain (i) the number

 ______________________________________________________________________________ assigned to such appropriation by the department, (ii) the name and address of

 ______________________________________________________________________________ the present holder of the appropriation, (iii) if applicable, the name and

 ______________________________________________________________________________ address of the person or entity to whom the appropriation would be transferred

 ______________________________________________________________________________ or who will be the user of record after a change in the type of appropriation

 ______________________________________________________________________________ or purpose of use under the appropriation, (iv) the legal description of the

 ______________________________________________________________________________ land to which the appropriation is now appurtenant, (v) the name and address

 ______________________________________________________________________________ of each holder of a mortgage or deed of trust for the land to which the

 ______________________________________________________________________________ appropriation is now appurtenant, (vi) if applicable, the legal description of

 ______________________________________________________________________________ the land to which the appropriation is proposed to be transferred, (vii) if a

 ______________________________________________________________________________ transfer is proposed, whether other sources of water are available at the

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 ______________________________________________________________________________ original location of use and whether any provisions have been made to prevent

 ______________________________________________________________________________ either use of a new source of water at the original location or increased use

 ______________________________________________________________________________ of water from any existing source at that location, (viii) if applicable, the

 ______________________________________________________________________________ legal descriptions of the beginning and end of the stream reach to which the

 ______________________________________________________________________________ appropriation is proposed to be transferred for the purpose of augmenting the

 ______________________________________________________________________________ flows in that stream reach, (ix) if a proposed transfer is for the purpose of

 ______________________________________________________________________________ increasing the quantity of water available for use pursuant to another

 ______________________________________________________________________________ appropriation, the number assigned to such other appropriation by the

 ______________________________________________________________________________ department, (x) the purpose of the current use, (xi) if a change in purpose of

 ______________________________________________________________________________ use is proposed, the proposed purpose of use, (xii) if a change in the type of

 ______________________________________________________________________________ appropriation is proposed, the type of appropriation to which a change is

 ______________________________________________________________________________ desired, (xiii) if a proposed transfer or change is to be temporary in nature,

 ______________________________________________________________________________ the duration of the proposed transfer or change, and (xiv) such other

 ______________________________________________________________ information as the department by rule and regulation requires.

 ____________________________________________________________________ (2) If a proposed transfer or change is to be temporary in nature, a

 ______________________________________________________________________________ copy of the proposed agreement between the current appropriator and the person

 ______________________________________________________________________________ who is to be responsible for use of water under the appropriation while the

 ______________________________________________________________________________ transfer or change is in effect shall be submitted at the same time as the

 application. ____________

 ____________________________________________________________________ (3) Regardless of whether a transfer or a change in the purpose of

 ______________________________________________________________________________ use is involved, the following changes in type of appropriation, if found by

 ______________________________________________________________________________ the Director of Natural Resources to be consistent with section 46-294, may be

 __________________________________ approved subject to the following:

 ____________________________________________________________________ (a) A natural-flow appropriation for direct out-of-stream use may be

 ______________________________________________________________________________ changed to a natural-flow appropriation for aboveground reservoir storage or

 __________________________________________ for intentional underground water storage;

 ____________________________________________________________________ (b) A natural-flow appropriation for intentional underground water

 ______________________________________________________________________________ storage may be changed to a natural-flow appropriation for direct

 _______________________________________________________ out-of-stream use or for aboveground reservoir storage;

 ____________________________________________________________________ (c) A natural-flow appropriation for direct out-of-stream use, for

 ______________________________________________________________________________ aboveground reservoir storage, or for intentional underground water storage

 ______________________________________________________________________________ may be changed to an instream appropriation subject to sections 46-2,107 to

 ______________________________________________________________________________ 46-2,119 if the director determines that the resulting instream appropriation

 ____________________________________________________________________________ would be consistent with subdivisions (2), (3), and (4) of section 46-2,115;

 ____________________________________________________________________ (d) A natural-flow appropriation for direct out-of-stream use, for

 ______________________________________________________________________________ aboveground reservoir storage, or for intentional underground water storage

 ______________________________________________________________________________ may be changed to an appropriation for induced ground water recharge if the

 ______________________________________________________________________________ director determines that the resulting appropriation for induced ground water

 ______________________________________________________________________________ recharge would be consistent with subdivisions (2)(a)(i) and (ii) of section

 46-235; and ___________

 ____________________________________________________________________ (e) The incidental underground water storage portion, whether or not

 ______________________________________________________________________________ previously quantified, of a natural-flow or storage-use appropriation may be

 ______________________________________________________________________________ separated from the direct-use portion of the appropriation and may be changed

 ______________________________________________________________________________ to a natural-flow or storage-use appropriation for intentional underground

 ______________________________________________________________________________ water storage at the same location if the historic consumptive use of the

 ______________________________________________________________________________ direct-use portion of the appropriation is transferred to another location or

 ______________________________________________________________________________ is terminated, but such a separation and change may be approved only if, after

 ______________________________________________________________________________ the separation and change, (i) the total permissible diversion under the

 ______________________________________________________________________________ appropriation will not increase, (ii) the projected consequences of the

 ______________________________________________________________________________ separation and change are consistent with the provisions of any integrated

 ______________________________________________________________________________ management plan adopted in accordance with section 58 or 59 of this act for

 ______________________________________________________________________________ the geographic area involved, and (iii) if the location of the proposed

 ______________________________________________________________________________ intentional underground water storage is in a river basin, subbasin, or reach

 ______________________________________________________________________________ designated as overappropriated in accordance with section 53 of this act, the

 ______________________________________________________________________________ integrated management plan for that river basin, subbasin, or reach has gone

 ______________________________________________________________________________ into effect, and that plan requires that the amount of the intentionally

 ______________________________________________________________________________ stored water that is consumed after the change will be no greater than the

 ______________________________________________________________________________ amount of the incidentally stored water that was consumed prior to the change.

 ______________________________________________________________________________ Approval of a separation and change pursuant to this subdivision (e) shall not

 ______________________________________________________________________________ exempt any consumptive use associated with the incidental recharge right from

 ______________________________________________________________________________ any reduction in water use required by an integrated management plan for a

 ______________________________________________________________________________ river basin, subbasin, or reach designated as overappropriated in accordance

 ____________________________ with section 53 of this act.

 ____________________________________________________________________ Whenever any change in type of appropriation is approved pursuant to

 ______________________________________________________________________________ this subsection and as long as that change remains in effect, the

 ______________________________________________________________________________ appropriation shall be subject to the statutes, rules, and regulations that

 _____________________________________________________________________ apply to the type of appropriation to which the change has been made.

 ____________________________________________________________________ (4) The Legislature finds that induced ground water recharge

 ______________________________________________________________________________ appropriations issued pursuant to sections 46-233 and 46-235 and instream

 ______________________________________________________________________________ appropriations issued pursuant to section 46-2,115 are specific to the

 ______________________________________________________________________________ location identified in the appropriation. Neither type of appropriation shall

 ______________________________________________________________________________ be transferred to a different location, changed to a different type of

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 _______________________________________________________________ appropriation, or changed to permit a different purpose of use.

 ____________________________________________________________________ (5) In addition to any other purposes for which transfers and

 ______________________________________________________________________________ changes may be approved, such transfers and changes may be approved if the

 ______________________________________________________________________________ purpose is (a) to augment the flow in a specific stream reach for any instream

 ______________________________________________________________________________ use that the department has determined, through rules and regulations, to be a

 ______________________________________________________________________________ beneficial use or (b) to increase the frequency that a diversion rate or rate

 _____________________________________________________________ of flow specified in another valid appropriation is achieved.

 ____________________________________________________________________ For any transfer or change approved pursuant to subdivision (a) of

 ______________________________________________________________________________ this subsection, the department shall be provided with a report at least every

 ______________________________________________________________________________ five years while such transfer or change is in effect. The purpose of such

 ______________________________________________________________________________ report shall be to indicate whether the beneficial instream use for which the

 ______________________________________________________________________________ flow is augmented continues to exist. If the report indicates that it does

 ______________________________________________________________________________ not or if no report is filed within sixty days after the department's notice

 ______________________________________________________________________________ to the appropriator that the deadline for filing the report has passed, the

 ______________________________________________________________________________ department may cancel its approval of the transfer or change and such

 ______________________________________________________________________________ appropriation shall revert to the same location of use, type of appropriation,

 _____________________________________________ and purpose of use as prior to such approval.

 ____________________________________________________________________ (6) A quantified or unquantified appropriation for incidental

 ______________________________________________________________________________ underground water storage may be transferred to a new location along with the

 ______________________________________________________________________________ direct-use appropriation with which it is recognized if the director finds

 ______________________________________________________________________________ such transfer to be consistent with section 46-294 and determines that the

 ______________________________________________________________________________ geologic and other relevant conditions at the new location are such that

 ______________________________________________________________________________ incidental underground water storage will occur at the new location. The

 ______________________________________________________________________________ director may request such information from the applicant as is needed to make

 ______________________________________________________________________________ such determination and may modify any such quantified appropriation for

 ______________________________________________________________________________ incidental underground water storage, if necessary, to reflect the geologic

 _________________________________________ and other conditions at the new location.

 ____________________________________________________________________ (7) Unless an incidental underground water storage appropriation is

 ______________________________________________________________________________ changed as authorized by subdivision (3)(e) of this section or is transferred

 ______________________________________________________________________________ as authorized by subsection (6) of this section or subsection (1) of section

 ______________________________________________________________________________ 46-291, such appropriation shall be canceled or modified, as appropriate, by

 ______________________________________________________________________________ the director to reflect any reduction in water that will be stored underground

 ______________________________________________________________________________ as the result of a transfer or change of the direct-use appropriation with

 ______________________________________________________________________________ which the incidental underground water storage was recognized prior to the

 ___________________ transfer or change.

Sec. 17. Section 46-291, Revised Statutes Supplement, 2002, is

amended to read:

 ___ 46-291. (1) Upon receipt of an application filed under section

46-290, the Director of Natural Resources shall cause a notice of such — ——— ———————— —— ——————— ————————— ————— ————— — —————— —— ————

application to be published at the applicant's expense at least once a week ——————————— —— —— ————————— —— ——— ——————————— ——————— —— ————— ———— — ————

for three weeks in at least one newspaper of general circulation in each ——— ————— ————— —— —— ————— ——— ————————— —— ——————— ——————————— —— ————

county containing lands on which the water appropriation is or is proposed to —————— —————————— ————— —— ————— ——— ————— ————————————— —— —— —— ———————— ——

be located and a newspaper of general circulation in Nebraska. —— ——————— ——— — ————————— —— ——————— ——————————— —— —————————

Such notice shall be published at least once a week for three ———— —————— ————— —— ————————— —— ————— ———— — ———— ——— —————

consecutive weeks and shall contain a description of the water appropriation, ——————————— ————— ——— ————— ——————— — ——————————— —— ——— ————— ——————————————

the number assigned such permit in the records of the Department of Natural ——— —————— ———————— ———— —————— —— ——— ——————— —— ——— —————————— —— ———————

Resources, the date of priority, a description of the lands to which such —————————— ——— ———— —— ————————— — ——————————— —— ——— ————— —— ————— ————

water appropriation is proposed to be applied, and any other relevant ————— ————————————— —— ———————— —— —— ———————— ——— ——— ————— ————————

 information. ————————————

The notice shall state that any person may in writing object to and ——— —————— ————— ————— ———— ——— —————— ——— —— ——————— —————— —— ———

request a hearing on the application at any time prior to the elapse of two ——————— — ——————— —— ——— ——————————— —— ——— ———— ————— —— ——— —————— —— ———

weeks from the date of final publication. for a transfer in the location of ————— ———— ——— ———— —— ————— ———————————— _________________________________

 ______________________________________________________________________________ use of an appropriation, the Department of Natural Resources shall review it

 ______________________________________________________________________________ for compliance with this subsection. The Director of Natural Resources may

 ______________________________________________________________________________ approve the application without notice or hearing if he or she determines

 ______________________________________________________________________________ that: (a) The appropriation is used and will continue to be used exclusively

 ______________________________________________________________________________ for irrigation purposes; (b) the only lands involved in the proposed transfer

 ______________________________________________________________________________ are (i) lands within the quarter section of land to which the appropriation is

 ______________________________________________________________________________ appurtenant, (ii) lands within such quarter section of land and one or more

 ______________________________________________________________________________ quarter sections of land each of which is contiguous to the quarter section of

 ______________________________________________________________________________ land to which the appropriation is appurtenant, or (iii) lands within the

 ______________________________________________________________________________ boundaries or service area of and capable of service by the same irrigation

 ______________________________________________________________________________ district, reclamation district, public power and irrigation district, or

 ______________________________________________________________________________ mutual irrigation or canal company; (c) after the transfer, the total number

 ______________________________________________________________________________ of acres irrigated under the appropriation will be no greater than the number

 ______________________________________________________________________________ of acres that could legally be irrigated under the appropriation prior to the

 ______________________________________________________________________________ transfer; (d) all the land involved in the transfer is under the same

 ______________________________________________________________________________ ownership or is within the same irrigation district, reclamation district,

 ______________________________________________________________________________ public power and irrigation district, or mutual irrigation or canal company;

 ______________________________________________________________________________ (e) the transfer will not result in a change in the point of diversion; and

 ______________________________________________________________________________ (f) the transfer will not diminish the water supply available for or otherwise

 ______________________________________________________________________________ adversely affect any other water appropriator. If transfer of an

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 ______________________________________________________________________________ appropriation with associated incidental underground water storage is approved

 ______________________________________________________________________________ in accordance with this subsection, the associated incidental underground

 ______________________________________________________________________________ water storage also may be transferred pursuant to this subsection as long as

 ______________________________________________________________________________ such transfer would continue to be consistent with the requirements of this

 ______________________________________________________________________________ subsection. If necessary, the boundaries of the incidental underground water

 ______________________________________________________________________________ storage area may be modified to reflect any change in the location of that

 ______________________________________________________________________________ storage consistent with such a transfer. Transfers shall not be approved

 ______________________________________________________________________________ pursuant to this subsection until the department has adopted and promulgated

 ______________________________________________________________________________ rules and regulations establishing the criteria it will use to determine

 ______________________________________________________________________________ whether proposed transfers are consistent with subdivision (1)(f) of this

 section. ________

 ____________________________________________________________________ (2) If after reviewing an application filed under section 46-290 the

 ______________________________________________________________________________ director determines that it cannot be approved pursuant to subsection (1) of

 ______________________________________________________________________________ this section, he or she shall cause a notice of such application to be posted

 ______________________________________________________________________________ on the department's web site, to be sent by certified mail to each holder of a

 ______________________________________________________________________________ mortgage or deed of trust that is identified by the applicant pursuant to

 ______________________________________________________________________________ subdivision (1)(b)(v) of section 46-290, and to be published at the

 ______________________________________________________________________________ applicant's expense at least once each week for three consecutive weeks in at

 ______________________________________________________________________________ least one newspaper of general circulation in each county containing lands to

 ______________________________________________________________________________ which the appropriation is appurtenant and, if applicable, in at least one

 ______________________________________________________________________________ newspaper of general circulation in each county containing lands to which the

 ____________________________________________ appropriation is proposed to be transferred.

 ____________________________________________________________________ (3) The notice shall contain: (a) A description of the

 ______________________________________________________________________________ appropriation; (b) the number assigned to such appropriation in the records of

 ______________________________________________________________________________ the department; (c) the date of priority; (d) if applicable, a description of

 ______________________________________________________________________________ the land or stream reach to which such water appropriation is proposed to be

 ______________________________________________________________________________ transferred; (e) if applicable, the type of appropriation to which the

 ______________________________________________________________________________ appropriation is proposed to be changed; (f) if applicable, the proposed

 ______________________________________________________________________________ change in the purpose of use; (g) whether the proposed transfer or change is

 ______________________________________________________________________________ to be permanent or temporary and, if temporary, the duration of the proposed

 ______________________________________________________________________________ transfer or change; and (h) any other information the director deems relevant

 ______________________________________________________________________________ and essential to provide the interested public with adequate notice of the

 ____________________________ proposed transfer or change.

 ____________________________________________________________________ (4) The notice shall state (a) that any interested person may object

 ______________________________________________________________________________ to and request a hearing on the application by filing such objections in

 ______________________________________________________________________________ writing specifically stating the grounds for each objection and (b) that any

 ______________________________________________________________________________ such objection and request shall be filed in the office of the department

 ___________________________________________________________________ within two weeks after the date of final publication of the notice.

 ____________________________________________________________________ (5) Within the time period allowed by this section for the filing of

 ______________________________________________________________________________ objections and requests for hearings, the county board of any county

 ______________________________________________________________________________ containing land to which the appropriation is appurtenant and, if applicable,

 ______________________________________________________________________________ the county board of any county containing land to which the appropriation is

 ______________________________________________________________________________ proposed to be transferred may provide the department with comments about the

 ______________________________________________________________________________ potential economic impacts of the proposed transfer or change in such county.

 ______________________________________________________________________________ The filing of any such comments by a county board shall not make the county a

 ______________________________________________________________________________ party in the application process, but such comments shall be considered by the

 ______________________________________________________________________________ director in determining pursuant to section 46-294 whether the proposed

 _____________________________________________ transfer or change is in the public interest.

Sec. 18. Section 46-292, Revised Statutes Supplement, 2002, is

amended to read:

46-292. The Department of Natural Resources may hold a hearing on

an application filed under section 46-290 on its own motion and shall hold a

hearing if requested by any person a timely request therefor is filed by any ————————— —— ——— —————— ___________________________________________

 ______________________________________________________________________________ interested person in accordance with section 46-291. Any such hearing shall

 ____________________________ be subject to section 61-206.

Sec. 19. Section 46-293, Revised Statutes Supplement, 2002, is

amended to read:

46-293. Any hearing held pursuant to section 46-292 shall be ——— ——————— ———— ———————— —— ——————— —————— ————— ——

conducted in accordance with sections 61-206 and 61-207. (1) The Director of ————————— —— —————————— ———— ———————— —————— ——— ——————— ____________________

 ______________________________________________________________________________ Natural Resources shall independently review each application subject to

 ______________________________________________________________________________ subsection (2) of section 46-291 to determine whether the requirements of

 ______________________________________________________________________________ section 46-294 will be met if the transfer or change is approved. The

 ______________________________________________________________________________ requirement of this subsection is not altered when there are objectors who

 ______________________________________________________________________________ have become parties to the proposed transfer or change, but if a hearing is

 ______________________________________________________________________________ called by the Department of Natural Resources on its own motion or as the

 ______________________________________________________________________________ result of a request therefor filed in accordance with subsection (4) of

 ______________________________________________________________________________ section 46-291, any evidence considered by the director in making such

 ______________________________________________________________________________ determinations shall be made a part of the record of the hearing as provided

 __________________ in section 84-914.

 ____________________________________________________________________ (2) Either on his or her own motion or in response to objections or

 ______________________________________________________________________________ comments received pursuant to subsection (4) or (5) of section 46-291, the

 ______________________________________________________________________________ director may require the applicant to provide additional information before a

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 ______________________________________________________________________________ hearing will be scheduled or, if no hearing is to be held, before the

 ______________________________________________________________________________ application will receive further consideration. The information requested may

 ______________________________________________________________________________ include economic, social, or environmental impact analyses of the proposed

 ______________________________________________________________________________ transfer or change, information about the amount of water historically

 ______________________________________________________________________________ consumed under the appropriation, copies of any plans for mitigation of any

 ______________________________________________________________________________ anticipated adverse impacts that would result from the proposed transfer or

 ______________________________________________________________________________ change, and such other information as the director deems necessary in order to

 ______________________________________________________________________________ determine whether the proposed transfer or change is consistent with section

 46-294. _______

Sec. 20. Section 46-294, Revised Statutes Supplement, 2002, is

amended to read:

46-294. (1) The Director of Natural Resources shall approve an ——— ———————— —— ——————— ————————— ————— ——————— ——

application filed pursuant to section 46-290 if: ——————————— ————— ———————— —— ——————— —————— ———

(a) The requested change of location is within the same river basin, ——— ——— ————————— —————— —— ———————— —— —————— ——— ———— ————— ——————

will not adversely affect any other water appropriator, and will not ———— ——— ————————— —————— ——— ————— ————— ————————————— ——— ———— ———

significantly adversely affect any riparian water user who files an objection ————————————— ————————— —————— ——— ———————— ————— ———— ——— ————— —— —————————

in writing prior to the hearing; —— ——————— ————— —— ——— ————————

(b) The requested change will use water from the same source of ——— ——— ————————— —————— ———— ——— ————— ———— ——— ———— —————— ——

supply as the current use; —————— —— ——— ——————— ————

(c) The change of location will not diminish the supply of water ——— ——— —————— —— ———————— ———— ——— ———————— ——— —————— —— —————

 otherwise available; ————————— ——————————

(d) The water will be applied to a use in the same preference ——— ——— ————— ———— —— ——————— —— — ——— —— ——— ———— ——————————

category as the current use, as provided in section 46-204; and ———————— —— ——— ——————— ———— —— ———————— —— ——————— ——————— ———

(e) The requested change is in the public interest. ——— ——— ————————— —————— —— —— ——— —————— —————————

The applicant has the burden of proving that the change of location ——— ————————— ——— ——— —————— —— ——————— ———— ——— —————— —— ————————

will comply with subdivisions (a) through (e) of this subsection, except that ———— —————— ———— ———————————— ——— ——————— ——— —— ———— ——————————— —————— ————

the burden is on the riparian user to demonstrate his or her riparian status ——— —————— —— —— ——— ———————— ———— —— ——————————— ——— —— ——— ———————— ——————

and to demonstrate a significant adverse effect on his or her use in order to ——— —— ——————————— — ——————————— ——————— —————— —— ——— —— ——— ——— —— ————— ——

prevent approval of an application. ——————— ———————— —— —— ————————————

(2) In approving an application, the director may impose any ——— —— ————————— —— ———————————— ——— ———————— ——— —————— ———

reasonable conditions deemed necessary to protect the public interest. An —————————— —————————— —————— ————————— —— ——————— ——— —————— ————————— ——

approved change of location shall retain the same priority date as that of the ———————— —————— —— ———————— ————— —————— ——— ———— ———————— ———— —— ———— —— ———

original water right. In approving an application, the director may (a) ———————— ————— —————— —— ————————— —— ———————————— ——— ———————— ——— ———

authorize a greater number of acres to be irrigated if the amount and rate of ————————— — ——————— —————— —— ————— —— —— ————————— —— ——— —————— ——— ———— ——

water approved under the original appropriation is not increased by the change ————— ———————— ————— ——— ———————— ————————————— —— ——— ————————— —— ——— ——————

of location or (b) authorize the overlying of water appropriations on the same —— ———————— —— ——— ————————— ——— ————————— —— ————— —————————————— —— ——— ————

lands as long as the limits provided in section 46-231 are not exceeded. ————— —— ———— —— ——— —————— ———————— —— ——————— —————— ——— ——— —————————

 ______________________________________________________________________________ Except for applications approved in accordance with subsection (1) of section

 ______________________________________________________________________________ 46-291, the Director of Natural Resources shall approve an application filed

 ______________________________________________________________________________ pursuant to section 46-290 only if the application and the proposed transfer

 __________________________________________ or change meet the following requirements:

 ____________________________________________________________________ (a) The application is complete and all other information requested

 _____________________________________________ pursuant to section 46-293 has been provided;

 ____________________________________________________________________ (b) The proposed use of water after the transfer or change will be a

 ________________________ beneficial use of water;

 ____________________________________________________________________ (c)(i) Any requested transfer in the location of use is within the

 ______________________________________________________________________________ same river basin as defined in section 46-288 or (ii) the river basin from

 ______________________________________________________________________________ which the appropriation is to be transferred is tributary to the river basin

 ________________________________________________ to which the appropriation is to be transferred;

 ____________________________________________________________________ (d) Except as otherwise provided in subsection (4) of this section,

 ______________________________________________________________________________ the proposed transfer or change, alone or when combined with any new or

 ______________________________________________________________________________ increased use of any other source of water at the original location or within

 ______________________________________________________________________________ the same irrigation district, reclamation district, public power and

 ______________________________________________________________________________ irrigation district, or mutual irrigation or canal company for the original or

 ______________________________________________________________________________ other purposes, will not diminish the supply of water available for or

 ______________________________________________________________________________ otherwise adversely affect any other water appropriator and will not

 ______________________________________________________________________________ significantly adversely affect any riparian water user who files an objection

 ______________________________________ in writing pursuant to section 46-291;

 ____________________________________________________________________ (e) The quantity of water that is transferred for diversion or other

 ______________________________________________________________________________ use at the new location will not exceed the historic consumptive use under the

 ______________________________________________________________________________ appropriation or portion thereof being transferred, except that this

 ______________________________________________________________________________ subdivision does not apply to a transfer in the location of use if both the

 ______________________________________________________________________________ current use and the proposed use are for irrigation, the number of acres to be

 ______________________________________________________________________________ irrigated will not increase after the transfer, and the location of the

 __________________________________________ diversion from the stream will not change;

 ____________________________________________________________________ (f) The appropriation, prior to the transfer or change, is not

 ______________________________________________________________________________ subject to termination or cancellation pursuant to sections 46-229 to

 46-229.04; __________

 ____________________________________________________________________ (g) If a proposed transfer or change is of an appropriation that has

 ______________________________________________________________________________ been used for irrigation and is in the name of an irrigation district,

 ______________________________________________________________________________ reclamation district, public power and irrigation district, or mutual

 ______________________________________________________________________________ irrigation or canal company or is dependent upon any such district's or

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 ______________________________________________________________________________ company's facilities for water delivery, such district or company has approved

 _______________________ the transfer or change;

 ____________________________________________________________________ (h) If the proposed transfer or change is of a storage-use

 ______________________________________________________________________________ appropriation and if the owner of that appropriation is different from the

 ______________________________________________________________________________ owner of the associated storage appropriation, the owner of the storage

 __________________________________________________ appropriation has approved the transfer or change;

 ____________________________________________________________________ (i) If the proposed transfer or change is to be permanent, either

 ______________________________________________________________________________ (i) the purpose for which the water is to be used before the transfer or

 ______________________________________________________________________________ change is in the same preference category established by section 46-204 as the

 ______________________________________________________________________________ purpose for which the water is to be used after the transfer or change or (ii)

 ______________________________________________________________________________ the purpose for which the water is to be used before the transfer or change

 ______________________________________________________________________________ and the purpose for which the water is to be used after the transfer or change

 _____________________________________________________________________________ are both purposes for which no preferences are established by section 46-204;

 ____________________________________________________________________ (j) If the proposed transfer or change is to be temporary, it will

 ______________________________________________________________________________ be for a duration of no less than one year and, except as provided in section

 __________________________________________ 22 of this act, no more than thirty years;

 ____________________________________________________________________ (k) The transfer or change will not be inconsistent with any

 ______________________________________________________________________________ applicable state or federal law and will not jeopardize the state's compliance

 ______________________________________________________________________________ with any applicable interstate water compact or decree or cause difficulty in

 ______________________________________________________________________________ fulfilling the provisions of any other formal state contract or agreement; and

 ____________________________________________________________________ (l) The proposed transfer or change is in the public interest. The

 ______________________________________________________________________________ director's considerations relative to the public interest shall include, but

 ______________________________________________________________________________ not be limited to, (i) the economic, social, and environmental impacts of the

 ______________________________________________________________________________ proposed transfer or change and (ii) whether and under what conditions other

 ______________________________________________________________________________ sources of water are available for the uses to be made of the appropriation

 ______________________________________________________________________________ after the proposed transfer or change. The Department of Natural Resources

 ______________________________________________________________________________ shall adopt and promulgate rules and regulations to govern the director's

 ______________________________________________________________________________ determination of whether a proposed transfer or change is in the public

 interest. _________

 ____________________________________________________________________ (2) The applicant has the burden of proving that the proposed

 ______________________________________________________________________________ transfer or change will comply with subdivisions (1)(a) through (l) of this

 ______________________________________________________________________________ section, except that (a) the burden is on a riparian user to demonstrate his

 ______________________________________________________________________________ or her riparian status and to demonstrate a significant adverse effect on his

 ______________________________________________________________________________ or her use in order to prevent approval of an application and (b) if both the

 ______________________________________________________________________________ current use and the proposed use after a transfer are for irrigation, the

 ______________________________________________________________________________ number of acres to be irrigated will not increase after the transfer, and the

 ______________________________________________________________________________ location of the diversion from the stream will not change, there is a

 ______________________________________________________________________________ rebuttable presumption that the transfer will be consistent with subdivision

 _______________________ (1)(d) of this section.

 ____________________________________________________________________ (3) In approving an application, the director may impose any

 ______________________________________________________________________________ reasonable conditions deemed necessary to protect the public interest, to

 ______________________________________________________________________________ ensure consistency with any of the other criteria in subsection (1) of this

 ______________________________________________________________________________ section, or to provide the department with information needed to properly and

 ______________________________________________________________________________ efficiently administer the appropriation while the transfer or change remains

 ______________________________________________________________________________ in effect. If necessary to prevent diminution of supply for any other

 ______________________________________________________________________________ appropriator, the conditions imposed by the director shall require that

 ______________________________________________________________________________ historic return flows be maintained or replaced in quantity, timing, and

 ______________________________________________________________________________ location. After approval of any such transfer or change, the appropriation

 ______________________________________________________________________________ shall be subject to all water use restrictions and requirements in effect at

 ______________________________________________________________________________ any new location of use and, if applicable, at any new diversion location. An

 ______________________________________________________________________________ appropriation for which a transfer or change has been approved shall retain

 ______________________________________________________________________________ the same priority date as that of the original appropriation. If an approved

 ______________________________________________________________________________ transfer or change is temporary, the location of use, purpose of use, or type

 ______________________________________________________________________________ of appropriation shall revert to the location of use, purpose of use, or type

 _________________________________________________ of appropriation prior to the transfer or change.

 ____________________________________________________________________ (4) In approving an application for a transfer, the director may

 ______________________________________________________________________________ also authorize the overlying of water appropriations on the same lands, except

 ______________________________________________________________________________ that if any such overlying of appropriations would result in either the

 ______________________________________________________________________________ authorized diversion rate or the authorized aggregate annual quantity that

 ______________________________________________________________________________ could be diverted to be greater than is otherwise permitted by section 46-231,

 ______________________________________________________________________________ the director shall limit the total diversion rate or aggregate annual quantity

 ______________________________________________________________________________ for the appropriations overlain to the rate or quantity that he or she

 ______________________________________________________________________________ determines is necessary, in the exercise of good husbandry, for the production

 ______________________________________________________________________________ of crops on the land involved. The director may also authorize a greater

 ______________________________________________________________________________ number of acres to be irrigated if the amount and rate of water approved under

 ______________________________________________________________________________ the original appropriation is not increased by the change of location. An

 ______________________________________________________________________________ increase in the number of acres to be irrigated shall be approved only if (a)

 ______________________________________________________________________________ such an increase will not diminish the supply of water available to or

 ______________________________________________________________________________ otherwise adversely affect another water appropriator or (b) the transfer

 ______________________________________________________________________________ would not adversely affect the water supply for any river basin, subbasin, or

 ______________________________________________________________________________ reach that has been designated as overappropriated pursuant to section 53 of

 ______________________________________________________________________________ this act or determined to be fully appropriated pursuant to section 54 of this

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 ______________________________________________________________________________ act and (i) the number of acres authorized under the appropriation when

 ______________________________________________________________________________ originally approved has not been increased previously, (ii) the increase in

 ______________________________________________________________________________ the number of acres irrigated will not exceed five percent of the number of

 ______________________________________________________________________________ acres being irrigated under the permit before the proposed transfer or a total

 ______________________________________________________________________________ of ten acres, whichever acreage is less, and (iii) all the use will be either

 ______________________________________________________________________________ on the quarter section to which the appropriation was appurtenant before the

 ___________________________________________ transfer or on an adjacent quarter section.

 _______________________________________________________ Sec. 21. Whenever a temporary transfer is approved in accordance

 ______________________________________________________________________________ with sections 46-290 to 46-294, the Department of Natural Resources shall

 ______________________________________________________________________________ cause copies of the following to be filed with the county clerk or register of

 ______________________________________________________________________________ deeds of the county in which the land subject to the appropriation prior to

 ______________________________________________________________________________ the transfer is located: (1) The permit by which the appropriation was

 ______________________________________________________________________________ established; (2) the agreement by which the temporary transfer is to be

 ______________________________________________________________________________ effected; and (3) the order of the Director of Natural Resources approving the

 ______________________________________________________________________________ temporary transfer. Whenever renewal of a temporary transfer is approved

 ______________________________________________________________________________ pursuant to section 22 of this act, the department shall cause a copy of the

 ______________________________________________________________________________ order of the director approving such renewal to be filed with the county clerk

 ______________________________________________________________________________ or register of deeds of such county. Such documents shall be indexed to the

 ______________________________________________________________________________ land subject to the appropriation prior to the transfer. The costs of the

 ______________________________________________________________________________ filing and indexing shall be charged to the applicant for the transfer or

 ______________________________________________________________________________ renewal, and failure to pay such costs shall be grounds for the director to

 _____________________________________________________ negate any prior approval of the transfer or renewal.

 __________________________________________________________ Sec. 22. A temporary transfer or a change in the type or purpose of

 ______________________________________________________________________________ use of an appropriation may be renewed or otherwise extended by the parties

 ______________________________________________________________________________ thereto at any time following the midpoint of the transfer or change term, but

 ______________________________________________________________________________ any such renewal or extension is subject to review and approval pursuant to

 ______________________________________________________________________________ sections 46-290 to 46-294. No renewal or extension shall cause the term of

 ______________________________________________________________________________ any such temporary transfer or change to exceed thirty years in duration from

 ______________________________________________________________________________ the date the renewal or extension is approved by the Director of Natural

 Resources. __________

 __________________________________________________________ Sec. 23. For purposes of assessment pursuant to sections 77-1343 to

 ______________________________________________________________________________ 77-1363, neither the temporary transfer or change of an appropriation nor any

 ______________________________________________________________________________ resulting land-use changes on the land to which the appropriation was

 ______________________________________________________________________________ appurtenant prior to the transfer or change shall cause the land to be

 ______________________________________________________________________________ reclassified to a lower value use or the valuation of the land to be reduced,

 ______________________________________________________________________________ but the land may be reclassified to a higher value use and its valuation may

 ______________________________________________________________________________ be increased if a higher value use is made of the land while the temporary

 ______________________________________________________________________________ transfer or change is in effect. Land from which an appropriation has been

 ______________________________________________________________________________ permanently transferred shall be classified and valued for tax purposes in

 _______________________________________________________ accordance with the use of the land after the transfer.

 _______________________________________________________ Sec. 24. During the time within which a temporary transfer or

 ______________________________________________________________________________ change in purpose of use of an appropriation is in effect, the appropriation

 ______________________________________________________________________________ may not be used to invoke any rights of condemnation that are based on

 ______________________________________________________________________________ preference of use, but such appropriation shall be subject to the exercise of

 ______________________________________________________________________________ such rights by owners of other appropriations that are for water uses superior

 ______________________________________________________________________________ to the pretransfer or prechange use of the water under the transferred or

 changed appropriation. ______________________

 ______________________________________________________ Sec. 25. The Director of Natural Resources may adopt and

 ______________________________________________________________________________ promulgate rules and regulations to carry out sections 46-290 to 46-294 and

 ______________________________ sections 21 to 24 of this act.

Sec. 26. Section 46-295, Revised Statutes Supplement, 2002, is

amended to read:

46-295. The Legislature recognizes that, as a result of water

project operations, surface water in some areas of the state has been, is, and

will be in the future intentionally and incidentally stored in and withdrawn

from underground strata. The Legislature acknowledges that rights to water

intentionally or incidentally stored underground and rights to withdrawal of

such water should be formally recognized and quantified and recognizes the

propriety of all beneficiaries proportionately sharing, to the extent of

potential benefit from intentional underground water storage, in the financial

obligations necessary for construction, operation, and maintenance of water

projects which cause intentional underground water storage.

The Legislature finds that uses of water for incidental and

intentional underground water storage are beneficial uses of water which

contribute to the recharge of Nebraska's aquifers and that comprehensive,

conjunctive management of surface water and intentional or incidental

underground water storage is essential for the continued economic prosperity

and well-being of the state, serves the public interest by providing an

element of certainty essential for investment in water resources development,

and will improve Nebraska's standing in the event of interstate dispute.

To facilitate optimum beneficial use of water by the people of

Nebraska, the Legislature recognizes the need for authorizing the recognition

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of incidental underground water storage, for authorizing intentional

underground water storage, and for authorizing the levying and collection of

fees and assessments on persons who withdraw or otherwise use or benefit from

intentional underground water storage as provided in sections 46-299 to

 46-2,106.

Nothing in sections 46-202, 46-226.01, 46-226.02, 46-233, 46-240,

46-241, 46-242, 46-295 to 46-2,106, and 46-544, and 46-656.23 and section 52 ___ — ——— ————————— ______________

 ___________ of this act shall be construed to alter existing statutes regarding the

relationship between naturally occurring surface and ground water.

Sec. 27. Section 46-296, Revised Statutes Supplement, 2002, is

amended to read:

46-296. As used in For purposes of sections 33-105, 46-202, and —— ———— —— _______________

46-295 to 46-2,106, unless the context otherwise requires:

(1) Department means the Department of Natural Resources;

(2) Director means the Director of Natural Resources;

(3) Person means a natural person, partnership, limited liability

company, association, corporation, municipality, or agency or political

subdivision of the state or of the federal government;

(4) Underground water storage means the act of storing or recharging

water in underground strata. Such water shall be known as water stored

underground but does not include ground water as defined in section 46-656.07 —————————

 ______________ 46 of this act which occurs naturally;

(5) Intentional underground water storage means underground water

storage which is an intended purpose or result of a water project or use.

Such storage may be accomplished by any lawful means such as injection wells,

infiltration basins, canals, reservoirs, and other reasonable methods; and

(6) Incidental underground water storage means underground water

storage which occurs as an indirect result, rather than an intended or planned

purpose, of a water project or use and includes, but is not limited to,

seepage from reservoirs, canals, and laterals, and deep percolation from

 irrigated lands.

Sec. 28. Section 46-2,112, Revised Statutes Supplement, 2002, is

amended to read:

46-2,112. The director shall set a time and place for hearing every ——— ———————— ————— ——— — ———— ——— ————— ——— ——————— —————

fifteen years from the date a A permit to appropriate water for instream flows ——————— ————— ———— ——— ———— — _

 _______________________________________________________ shall be subject to review every fifteen years after it is granted. Notice of

the hearing a pending review shall be given to the parties to the original ——— ——————— ________________ ————— —— ——— ——————— —— ——— ————————

application and shall be published in a newspaper published or of general ——————————— ——— ————— ——

circulation in the area involved at least once each week for three consecutive

weeks, the last publication to be not less than seven days prior to the ———— ———— ————— ———— ————— —— ———

 ——————— _____________________________________________________________________ hearing later than fourteen years and ten months after the permit was granted

 ______________________________________________________________________________ or after the date of the director's action following the last such review,

 ______________________________________________________________________________ whichever is later. The notice shall state that any interested person may

 ______________________________________________________________________________ file comments relating to the review of the instream appropriation or may

 ______________________________________________________________________________ request a hearing to present evidence relevant to such review. Any such

 ______________________________________________________________________________ comments or request for hearing shall be filed in the headquarters office of

 ______________________________________________________________________________ the department within six weeks after the date of final publication of the

 ______________________________________________________________________________ notice. If requested by any interested person, the director shall schedule a

 _______ hearing. The purpose of the hearing shall be to receive evidence regarding

whether the water appropriated under the permit still provides the beneficial

uses for which the permit was granted and whether the permit is still in the

public interest. The hearing shall proceed under the rebuttable presumption

that the appropriation continues to provide the beneficial uses for which the

permit was granted and that the appropriation is in the public interest.

After the hearing, the director may by order modify or cancel, in whole or in

part, the instream appropriation.

Sec. 29. Section 46-2,119, Revised Statutes Supplement, 2002, is

amended to read:

46-2,119. Instream appropriations shall be administered in the same

manner as prescribed by Chapter 46, article 2, for other appropriations._

Reservoirs , except that existing reservoirs shall not be required by the __________ — —————— ———— ———————— ——————————

 _________________________________________________________ director to release, for the benefit of an instream appropriation, water

 ______________________________________________________________________________ previously impounded in accordance with section 46-241 or 46-243. Reservoirs

 ______________________________________________________________________________ with storage rights senior to an instream appropriation shall not be required

 ______________________________________________________________________________ to pass, for the benefit of that instream appropriation, inflows that could be

 ______________________________________________________________________________ stored by such reservoir if the instream appropriation were not in effect.

 ______________________________________________________________________________ Notwithstanding subsection (5) of section 46-241, a reservoir with storage

 ______________________________________________________________________________ rights senior to an instream appropriation also shall not be required to pass

 ______________________________________________________________________________ inflows for downstream direct irrigation if the appropriation for direct

 ______________________________________________________________________________ irrigation is junior to and would be denied water because of that instream

appropriation. impounded water for instream appropriations. Instream flow ______________ ————————— ————— ——— ———————— ——————————————— ———————— ————

appropriations shall not be superior to existing storage rights as provided in —————————————— ————— ——— —— ———————— —— ———————— ——————— —————— —— ———————— ——

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 ——————— ——————— section 46-241. Instream appropriations may be canceled as provided in

section 46-229.04 sections 46-229.02 to 46-229.05. ——————— ————————— _______________________________

Sec. 30. Section 46-2,127, Reissue Revised Statutes of Nebraska, is

amended to read:

46-2,127. After obtaining approval of an application for transfer

and map pursuant to sections 46-2,122 to 46-2,126, the board of directors of

any irrigation district, reclamation district, public power and irrigation

district, rural water district, or mutual irrigation or canal company may

transfer an appropriation of water distributed for agricultural purposes from

a tract or tracts of land within the district or served by the company to

another tract or tracts of land within the boundaries of the district or

served by the company if:

(1) The district or company finds that the transferring tract of

land has received and had water, delivered by the district or company pursuant

 ————— ——— to a valid water appropriation, beneficially applied in (a) at least one of

the preceding three five consecutive years or (b) at least one of the ————— ____ ——— —— ————— ——— —— ———

preceding ten consecutive years if the district or company finds that there ————————— ——— ——————————— ————— —— ——— ———————— —— ——————— —————

has been sufficient cause for nonuse in the same manner as provided in section

 46-229.04;

(2) The owner of the land to which the water appropriation is

attached consents in writing to the transfer of the appropriation from his or

her tract of land;

(3) The water appropriation, or portion thereof, proposed to be

transferred has not been transferred by the board of directors of the district

or company in the previous four years;

(4) The water allotment on the receiving tract of land will not

exceed the amount that can be beneficially used for the purposes for which the

appropriation was made and will not exceed the least amount of water that

experience may indicate is necessary, in the exercise of good husbandry, for

the production of crops; and

(5) After the transfer, the aggregate water use within the district

or company will not exceed the aggregate water appropriation held by the

district or company for the benefit of owners of land to which the water

appropriations are attached.

Sec. 31. Section 46-2,132, Revised Statutes Supplement, 2002, is

amended to read:

46-2,132. (1) The members of the Water Policy Task Force shall

include: (a) Twenty irrigators, with at least one irrigator from each of the

state's thirteen river basins, giving consideration to maintaining a balance

between surface water users and ground water users. Three irrigators shall be

selected from the Republican River Basin, two irrigators shall be selected

from the North Platte River Basin, two irrigators shall be selected from the

middle Platte River Basin, two irrigators shall be selected from the Loup

River Basin, two irrigators shall be selected from the Elkhorn River Basin,

two irrigators shall be selected from the Big Blue River Basin, one irrigator

shall be selected from the South Platte River Basin, one irrigator shall be

selected from the lower Platte River Basin, one irrigator shall be selected

from the Little Blue River Basin, one irrigator shall be selected from the

Nemaha River Basin, one irrigator shall be selected from the Niobrara River

Basin, one irrigator shall be selected from the White Hat River Basin, and one

irrigator shall be selected from the Missouri tributaries basin; (b) three

representatives from differing agricultural organizations; (c) three

representatives from differing environmental organizations; (d) two

representatives from differing recreational organizations; (e) three

representatives to represent the state at large; (f) five representatives

suggested for the Governor's consideration by the Nebraska Association of

Resources Districts; (g) four representatives suggested for the Governor's

consideration by the Nebraska Power Association; (h) five representatives

suggested for the Governor's consideration by the League of Nebraska

Municipalities, with consideration given to maintaining a balance between

larger and smaller municipalities; and (i) such other members as the Governor

deems appropriate to provide the task force with adequate and balanced

representation. The Governor shall notify the Legislature upon completion of

 the appointments.

(2) Additional members of the task force shall be: (a) One

representative from the Department of Natural Resources to coordinate as

appropriate with other state agencies; (b) one representative from the

Attorney General's office; (c) the chairperson of the Natural Resources

Committee of the Legislature; and (d) the vice chairperson of the Natural

Resources Committee of the Legislature. Other members of the Legislature may

participate as desired.

 ____________________________________________________________________ (3) If any member of the task force is unable to serve for any

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 ______________________________________________________________________________ reason, the Governor shall appoint a successor to such member. The successor

 ____________________________________________________________________________ shall represent the same constituency as the member such successor replaces.

Sec. 32. Section 46-2,135, Revised Statutes Supplement, 2002, is

amended to read:

46-2,135. The Water Policy Task Force shall meet at least four ————

 ————— _____ times twice each year to consider the proposals and recommendations of the

executive committee and any other additional times as the executive committee

determines to be necessary to accomplish the objectives established in section

 46-2,131.

 __________________________________________________________ Sec. 33. Sections 46-2,131 to 46-2,137 terminate December 31, 2009.

Sec. 34. Section 46-601.01, Revised Statutes Supplement, 2002, is

amended to read:

46-601.01. For purposes of Chapter 46, article 6:

(1) Water well means any excavation that is drilled, cored, bored,

washed, driven, dug, jetted, or otherwise constructed for the purpose of

exploring for ground water, monitoring ground water, utilizing the geothermal

properties of the ground, obtaining hydrogeologic information, or extracting

 ————— _____________________________________ water from or injecting water fluid as defined in section 81-1502 into the

underground water reservoir. Water well does not include any excavation made

for obtaining or prospecting for oil or natural gas or for inserting media to

repressure oil or natural gas bearing formations regulated by the Nebraska Oil

and Gas Conservation Commission; and

(2) Common carrier means any carrier of water including a pipe,

canal, ditch, or other means of piping or adjoining water for irrigation

 purposes.

Sec. 35. Section 46-602, Revised Statutes Supplement, 2003, is

amended to read:

46-602. (1) Each water well completed in this state on or after

July 1, 2001, excluding test holes and dewatering wells to be used for less

than ninety days, shall be registered with the Department of Natural Resources

as provided in this section within sixty days after completion of construction

of the water well. The water well contractor as defined in section 46-1213

constructing the water well, or the owner of the water well if the owner

constructed the water well, shall file the registration on a form made

available by the department and shall also file with the department the

information from the well log required pursuant to section 46-1241. The

department shall, by January 1, 2002, provide water well contractors with the

option of filing such registration forms electronically. No signature shall

be required on forms filed electronically. The fee required by subsection (3)

of section 46-1224 shall be the source of funds for any required fee to a

contractor which provides the on-line services for such registration. Any

discount in the amount paid the state by a credit card, charge card, or debit

card company or a third-party merchant bank for such registration fees shall

be deducted from the portion of the registration fee collected pursuant to

 section 46-1224.

(2)(a) If the newly constructed water well is a replacement water

well, the registration number of the water well it replaces, if applicable,

and the date the original water well was or will be decommissioned shall be

included on the registration form. For purposes of this section, replacement

water well means a water well which (i) replaces an abandoned water well

within three years after the last operation of the abandoned water well or

replaces a water well that will not be used after construction of the new

water well and the original water well will be abandoned within one year after

such construction and (ii) is constructed to provide water to the same tract

of land served by the water well being replaced.

(b) No water well shall be registered as a replacement water well

until the Department of Natural Resources has received a properly completed

notice of abandonment for the water well being replaced. Such notice shall be

completed by (i) the water well contractor as defined in section 46-1213 who

decommissions the water well, (ii) the pump installation contractor as defined

in section 46-1209 who decommissions the water well, or (iii) the owner if the

owner decommissions a driven sandpoint well which is on land owned by him or

her for farming, ranching, or agricultural purposes or as his or her place of

abode. The Department of Health and Human Services Regulation and Licensure

shall, by rule and regulation, determine which contractor or owner shall be

responsible for such notice in situations in which more than one contractor or

owner may be required to provide notice under this subsection.

(3) For a series of two or more water wells completed and pumped

into a common carrier as part of a single site plan for irrigation purposes, a

registration form and a detailed site plan shall be filed for each water well.

The registration form shall include the registration numbers of other water

wells included in the series if such water wells are already registered.

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(4) A series of water wells completed for purposes of installation

of a ground heat exchanger for a structure for utilizing the geothermal

properties of the ground shall be considered as one water well. One

registration form and a detailed site plan shall be filed for each such

 series.

(5) One registration form shall be required along with a detailed

site plan which shows the location of each such water well in the site and a

log from each such water well for water wells constructed as part of a single

site plan for (a) monitoring ground water, obtaining hydrogeologic

information, or extracting contaminants from the ground, (b) water wells

constructed as part of remedial action approved by the Department of

Environmental Quality pursuant to section 66-1525, 66-1529.02, or 81-15,124,

and (c) water well owners who have a permit issued pursuant to the Industrial

Ground Water Regulatory Act and also have an underground injection control

permit issued by the Department of Environmental Quality.

(6) The department shall be notified by the owner of any change in

the ownership of a water well required to be registered under this section.

Notification shall be in such form and include such evidence of ownership as

the Director of Natural Resources by rule and regulation directs. The

department shall use such notice to update the registration on file. The

department shall not collect a fee for the filing of the notice.

(7) The water well contractor or pump installation contractor

responsible therefor shall notify the department on a form provided by the

department of any pump installation or any modifications to the construction

of the water well or pump, after the initial registration of the well. A

water well owner shall notify the department on a form provided by the

department of any other changes or any inaccuracies in recorded water well

information, including, but not limited to, changes in use. The department

shall not collect a fee for the filing of the notice.

(8) Whenever a water well becomes an illegal water well as defined

 ————————— ______________ in section 46-656.07 46 of this act, the owner of the water well shall either

correct the deficiency that causes the well to be an illegal water well or

shall cause the proper decommissioning of the water well in accordance with

rules and regulations adopted pursuant to the Water Well Standards and

Contractors' Licensing Act. The water well contractor who decommissions the

water well, the pump installation contractor who decommissions the water well,

or the owner if the owner decommissions a driven sandpoint well which is on

land owned by him or her for farming, ranching, or agricultural purposes or as

his or her place of abode, shall provide a properly completed notice of

abandonment to the Department of Natural Resources within sixty days. The

Department of Health and Human Services Regulation and Licensure shall, by

rule and regulation, determine which contractor or owner shall be responsible

for such notice in situations in which more than one contractor or owner may

be required to provide notice under this subsection. The Department of

Natural Resources shall not collect a fee for the filing of the notice.

(9) Except for water wells which are used solely for domestic

purposes and were constructed before September 9, 1993, and for test holes and

dewatering wells used for less than ninety days, each water well which was

completed in this state before July 1, 2001, and which is not registered on

that date shall be an illegal water well until it is registered with the

Department of Natural Resources. Such registration shall be completed by a

water well contractor or by the current owner of the water well, shall be on

forms provided by the department, and shall provide as much of the information

required by subsections (1) through (5) of this section for registration of a

new water well as is possible at the time of registration.

 ____________________________________________________________________ (10) Water wells which are or were used solely for injecting any

 ______________________________________________________________________________ fluid other than water into the underground water reservoir, which were

 ______________________________________________________________________________ constructed before the operative date of this section, and which have not been

 ______________________________________________________________________________ properly decommissioned on or before the operative date of this section shall

 ________________________________________ be registered on or before July 1, 2005.

Sec. 36. Section 46-609, Reissue Revised Statutes of Nebraska, is

amended to read:

 —— ________________________________________________ 46-609. (1) No Except as otherwise provided by this section or

 __________________ section 46-610, no irrigation water well shall be drilled upon any land in

this state within six hundred feet of any registered irrigation water well

except (a) any water well the water from which is used solely for domestic, —————— ——— ——— ————— ———— ——— ————— ———— ————— —— ———— —————— ——— —————————

culinary, stock use on a ranch or farm, or the watering of lawns and gardens ————————— ————— ——— —— — ————— —— ————— —— ——— ———————— —— ————— ——— ———————

for family use or profit where the area to be irrigated does not exceed two ——— —————— ——— —— —————— ————— ——— ———— —— —— ————————— ———— ——— —————— ———

acres, (b) as provided in section 46-610, and (c) that any irrigation water —————— ——— —— ———————— —— ——————— ——————— ——— ——— ———— ——— —————————— —————

well which replaces an irrigation water well and no existing nonirrigation ———— ————— ———————— —— —————————— ————— ———— ________________________________

 ______________________________________________________________________________ water well within six hundred feet of any registered irrigation water well

 ______________________________________________________________________________ shall be used for irrigation purposes. Such spacing requirement shall not

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 ______________________________________________________________________________ apply to (a) any well used to irrigate two acres or less or (b) any

 ______________________________________________________________________________ replacement irrigation water well if it is drilled within fifty feet of the

 ______________________________________________________________________________ irrigation water well being replaced and if the water well being replaced was

 ————— drilled prior to September 20, 1957, and which is less than six hundred feet

from a registered irrigation water well. shall be drilled within fifty feet _ ————— —— ——————— —————— ————— ————

of the old water well. —— ——— ——— ————— —————

(2) The spacing protection of subsection (1) of this section shall

apply to an unregistered water well for a period of thirty sixty days after —————— _____

completion of such water well.

Sec. 37. Section 46-613.02, Revised Statutes Supplement, 2002, is

amended to read:

46-613.02. Any person violating any provision of sections 46-601 to

46-613.01 or furnishing false information under such sections shall be guilty

of a Class IV misdemeanor. The Department of Natural Resources may enforce ——— —————————— —— ——————— ————————— ——— ———————

such sections by instituting proceedings, actions, and prosecutions Each day ———— ———————— —— ——————————— ———————————— ———————— ——— ———————————— _________

 ______________________________________________________________________________ of a violation may be considered a separate offense. The Attorney General and

 ______________________________________________________________________________ the county attorneys may pursue appropriate proceedings pursuant to this

 ______________________________________________________________________________ section when notified by the Director of Natural Resources that such a

 ______________________ violation has occurred.

Sec. 38. Section 46-651, Reissue Revised Statutes of Nebraska, is

amended to read:

46-651. (1) Except as provided in section 46-653 or 46-654, (a) no

irrigation or industrial water well or water well of any other public water

supplier shall be drilled within one thousand feet of any registered water

well of any public water supplier, (b) no water well of any such public water

supplier shall be drilled within one thousand feet of any registered

irrigation or industrial water well, (c) no irrigation water well shall be

drilled within one thousand feet of a registered industrial water well, and

(d) no industrial water well shall be drilled within one thousand feet of a

registered irrigation or industrial water well. Such prohibitions shall not

apply to water wells owned by the same person.

 ________________________________________________________________ (2) An existing water well for which a change in the intended use is

 ______________________________________________________________________________ proposed shall be subject to any spacing requirement in subsection (1) of this

 ______________________________________________________________________________ section that would apply to the drilling of a new water well at the same

 __________________________________ location for the new use intended.

(3) The well-spacing protection of subsection (1) subsections (1) ___ —————————— ——— ________________

 _______ and (2) of this section shall apply to an unregistered water well for a period

 —————— _____ of only thirty sixty days following completion of such water well.

 ____________________________________________________________________ (4) The spacing requirements in subsection (1) of this section shall

 ______________________________________________________________________________ not apply to any replacement water well if that water well is drilled within

 ______________________________________________________________________________ fifty feet of the water well being replaced and if the water well being

 ______________________________________________________________________________ replaced was drilled prior to the operative date of this section, was in

 ______________________________________________________________________________ compliance with any applicable spacing statute when drilled, and is less than

 ______________________________________________________________________________ one thousand feet from the registered water well for which spacing protection

 is provided. ____________

Sec. 39. Section 46-653, Revised Statutes Supplement, 2002, is

amended to read:

46-653. Any person may apply to the Director of Natural Resources

 ________________________________ for a special permit to drill or to change the intended use of a water well

without regard to the spacing requirements of section 46-651. Such

application shall be on a form prescribed and furnished by the director and

shall contain a statement of the precise location of the water well or _____________

proposed water well, facts justifying the request for such special permit, the

 _______ size or proposed size of such water well, expressed in gallons per minute, to

the extent that capacity is susceptible of advance determination, and, if ____

 ___________ applicable, the name of the person who is actually going to drill the water

well. A separate application shall be submitted for each water well for which

a special permit is sought, and each application shall be accompanied by a fee

of twelve dollars and fifty cents which shall be remitted to the State

Treasurer for credit to the General Fund. When considering the approval or

rejection of any such application, the director shall consider the facts

 ___ offered as justification of the need for the special permit, the known ground

water supply, and such other pertinent information as may be available. Such

application may be approved or disapproved in whole or in part and the special

permit issued or refused accordingly.

 __________________________________________________________ Sec. 40. (1) A public water supplier as defined in section 46-638

 ______________________________________________________________________________ may obtain protection for a public water supply wellfield from encroachment

 ______________________________________________________________________________ from other water wells by filing with the Department of Natural Resources a

 ______________________________________________________________________________ notice of intent to consider a wellfield. The notice of intent shall include:

 ____________________________________________________________________ (a) The legal description of the land being considered as a public

 ___________________________ water supply wellfield; and

 ____________________________________________________________________ (b) Written consent of the owner of the land considered for a public

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 ______________________________________________________________________________ water supply wellfield, allowing the public water supplier to conduct an

 ______________________________________________________________________________ evaluation as to whether such land is suitable for a public water supply

 wellfield. __________

 ____________________________________________________________________ (2) A notice of intent filed under this section shall be limited to

 ______________________________________________________________________________ a contiguous tract of land. No public water supplier shall have more than

 ______________________________________________________________________________ three notices of intent under this section on file with the department at any

 one time. _________

 ____________________________________________________________________ (3) A notice of intent filed under this section shall expire one

 ______________________________________________________________________________ year after the date of filing and may be renewed for one additional year by

 ______________________________________________________________________________ filing with the department a notice of renewal of the original notice of

 ______________________________________________________________________________ intent filed under this section before expiration of the original notice of

 intent. _______

 ____________________________________________________________________ (4) At the time a notice of intent or a notice of renewal is filed

 _____________________________________________________ with the department, the public water supplier shall:

 ____________________________________________________________________ (a) Provide a copy of the notice to the owners of land adjoining the

 ______________________________________ land being considered for a wellfield;

 ____________________________________________________________________ (b) Provide a copy of the notice to the natural resources district

 ______________________________________________________________________________ or districts within which the land being considered for a wellfield is

 located; and ____________

 ____________________________________________________________________ (c) Publish a copy of the notice in a newspaper of general

 ___________________________________________________________________ circulation in the area in which the wellfield is being considered.

 ____________________________________________________________________ (5)(a) Except as provided in subdivisions (b) and (c) of this

 ______________________________________________________________________________ subsection, during the time that a notice of intent under this section is in

 ______________________________________________________________________________ effect, no person may drill or construct a water well, as defined in section

 ______________________________________________________________________________ 46-601.01, within the following number of feet of the boundaries of the land

 ________________________________________________________ described in the notice of intent, whichever is greater:

 _________________________ (i) One thousand feet; or

 ____________________________________________________________________ (ii) The maximum number of feet specified in any applicable

 ______________________________________________________________________________ regulations of a natural resources district that a well of a public water

 __________________________________________ supplier must be spaced from another well.

 ____________________________________________________________________ (b) Any person who, at least one hundred eighty days prior to filing

 ______________________________________________________________________________ a notice of intent, obtained a valid permit from a natural resources district

 ______________________________________________________________________________ to drill or construct a water well within the area subject to the protection

 ______________________________________________________________________________ provided by this section is not prohibited from drilling or constructing a

 water well. ___________

 ____________________________________________________________________ (c) The public water supplier may waive the protection provided by

 ______________________________________________________________________________ this section and allow a person to drill or construct a new or replacement

 ______________________________________________________________________________ water well within the area subject to the protection provided by this section.

 ____________________________________________________________________ (6) Within thirty days after the public water supplier reaches a

 ______________________________________________________________________________ determination that the land described in a particular notice of intent is not

 ______________________________________________________________________________ suitable for a public water supply wellfield, the public water supplier shall

 ______________________________________________________________________________ notify the Department of Natural Resources, the owner of the land described in

 ______________________________________________________________________________ the notice of intent, and the owners of the contiguous tracts of land of such

 ______________________________________________________________________________ determination. Upon receipt by the department of the notice of such

 ______________________________________________________________________________ determination, the notice of intent that contains the description of such

 ______________________________________________________________________________ tract of land shall terminate immediately, notwithstanding any other provision

 ________________ of this section.

Sec. 41. Section 46-656.01, Revised Statutes Supplement, 2003, is

amended to read:

46-656.01. Sections 46-656.01 to 46-656.67 41 to 93 of this act —————————— ————————— —— ————————— ____________________

shall be known and may be cited as the Nebraska Ground Water Management and

 Protection Act.

Sec. 42. Section 46-656.02, Revised Statutes Supplement, 2003, is

amended to read:

 —————————— 46-656.02. The Legislature finds that ownership of water is held by

the state for the benefit of its citizens, that ground water is one of the

most valuable natural resources in the state, and that an adequate supply of

ground water is essential to the general welfare of the citizens of this state

and to the present and future development of agriculture in the state. The

Legislature recognizes its duty to define broad policy goals concerning the

utilization and management of ground water and to ensure local implementation

of those goals. The Legislature also finds that natural resources districts

have the legal authority to regulate certain activities and, except as

otherwise specifically provided by statute, as local entities are the

preferred regulators of activities which may contribute to ground water

 depletion.

Every landowner shall be entitled to a reasonable and beneficial use

of the ground water underlying his or her land subject to the provisions of

Chapter 46, article 6, and the Nebraska Ground Water Management and Protection

Act and the correlative rights of other landowners when the ground water

supply is insufficient for all users. The Legislature determines that the

goal shall be to extend ground water reservoir life to the greatest extent

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practicable consistent with beneficial use of the ground water and best

 management practices.

The Legislature further recognizes and declares that the management,

protection, and conservation of ground water and the beneficial use thereof

are essential to the economic prosperity and future well-being of the state

and that the public interest demands procedures for the implementation of

management practices to conserve and protect ground water supplies and to

prevent the contamination or inefficient or improper use thereof. The

Legislature recognizes the need to provide for orderly management systems in

areas where management of ground water is necessary to achieve locally

determined ground water management objectives and where available data,

evidence, or other information indicates that present or potential ground

water conditions, including subirrigation conditions, require the designation

of areas with special regulation of development and use.

Nothing in the Nebraska Ground Water Management and Protection Act ——————— —— ——— ———————— —————— ————— —————————— ——— —————————— ———

relating to the contamination of ground water is intended to limit the powers ———————— —— ——— ————————————— —— —————— ————— —— ———————— —— ————— ——— ——————

of the Department of Environmental Quality provided in Chapter 81, article 15. —— ——— —————————— —— ————————————— ——————— ———————— —— ——————— ——— ——————— ———

Sec. 43. Section 46-656.05, Revised Statutes Supplement, 2002, is

amended to read:

 —————————— 46-656.05. The Legislature further finds:

(1) The management, conservation, and beneficial use of

hydrologically connected ground water and surface water are essential to the

continued economic prosperity and well-being of the state, including the

present and future development of agriculture in the state;

(2) Hydrologically connected ground water and surface water may need

to be managed differently from unconnected ground water and surface water in

order to permit equity among water users and to optimize the beneficial use of

interrelated ground water and surface water supplies;

(3) Natural resources districts already have significant legal

authority to regulate activities which contribute to declines in ground water

levels and to nonpoint source contamination of ground water and are the

preferred entities to regulate, through ground water management areas, ground

water related activities which are contributing to or are, in the reasonably

foreseeable future, likely to contribute to conflicts between ground water

users and surface water appropriators or which may be necessary in order to ————— ——— —— ————————— —— ————— ——

resolve disputes over interstate compacts or decrees, or to carry out the ——————— ———————— ———— —————————— ———————— —— ———————— —— —— ————— ——— ———

provisions of other formal state contracts or agreements to water supply —————————— —— ————— —————— ————— ————————— —— —————————— _________________

 ______________________________________________________________________________ shortages in fully appropriated or overappropriated river basins, subbasins,

 or reaches; ___________

 ____________________________________________________________________ (4) The Legislature recognizes that ground water use or surface

 ______________________________________________________________________________ water use in one natural resources district may have adverse affects on water

 ______________________________________________________________________________ supplies in another district or in an adjoining state. The Legislature

 ______________________________________________________________________________ intends and expects that each natural resources district within which water

 ______________________________________________________________________________ use is causing external impacts will accept responsibility for ground water

 ______________________________________________________________________________ management in accordance with the Nebraska Ground Water Management and

 ______________________________________________________________________________ Protection Act in the same manner and to the same extent as if the impacts

 ___________________________________ were contained within that district;

 ——— ___ (4) (5) The Department of Natural Resources is responsible for

regulation of surface water resources and local surface water project sponsors

are responsible for much of the structured irrigation utilizing surface water

supplies, and these entities should be responsible for regulation of surface

water related activities which contribute to such conflicts between ground ———— _______________

 ______________________________________________________________________________ water users and surface water appropriators or to water supply shortages in

 ___________________________________________________________________________ —— fully appropriated or overappropriated river basins, subbasins, or reaches; or

provide opportunities for such dispute resolution; ——————— ————————————— ——— ———— ——————— ———————————

(5) The department, following review and concurrence of need by the ——— ——— ——————————— ————————— —————— ——— ——————————— —— ———— —— ———

Interrelated Water Review Committee of the Nebraska Natural Resources ———————————— ————— —————— ————————— —— ——— ———————— ——————— —————————

Commission, should also be given authority to regulate ground water related ——————————— —————— ———— —— ————— ————————— —— ———————— —————— ————— ———————

activities to mitigate or eliminate disputes over interstate compacts or —————————— —— ———————— —— ————————— ———————— ———— —————————— ———————— ——

decrees or difficulties in carrying out the provisions of other formal state ——————— —— ———————————— —— ———————— ——— ——— —————————— —— ————— —————— —————

contracts or agreements if natural resources districts do not utilize their ————————— —— —————————— —— ——————— ————————— ————————— —— ——— ——————— —————

ground water management authority in a reasonable manner to prevent or —————— ————— —————————— ————————— —— — —————————— —————— —— ——————— ——

minimize such disputes or difficulties; and ———————— ———— ———————— —— ————————————— ———

(6) All involved natural resources districts, the department, and

surface water project sponsors should cooperate and collaborate on the

identification and implementation of management solutions to such conflicts or ———— ——

provide opportunities for mitigation or elimination of such disputes or ——————— ————————————— ——— —————————— —— ——————————— —— ———— ———————— ——

 ———————————— _________________________________________________________________ difficulties between ground water users and surface water appropriators or to

 ______________________________________________________________________________ water supply shortages in fully appropriated or overappropriated river basins,

 ___________________________ subbasins, and reaches; and

 ____________________________________________________________________ (7) An Interrelated Water Review Board is needed to resolve any

 ______________________________________________________________________________ conflicts between the department and the involved natural resources districts

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 ______________________________________________________________________________ concerning the content, implementation, or enforcement of integrated

 ______________________________________________________________________________ management plans for fully appropriated and overappropriated river basins,

 ______________________ subbasins, and reaches.

Sec. 44. Section 46-656.03, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— 46-656.03. The Legislature also finds that:

(1) The levels of nitrate nitrogen and other contaminants in ground

water in certain areas of the state are increasing;

(2) Long-term solutions should be implemented and efforts should be

made to prevent the levels of ground water contaminants from becoming too high

and to reduce high levels sufficiently to eliminate health hazards;

(3) Agriculture has been very productive and should continue to be

an important industry to the State of Nebraska;

(4) Natural resources districts have the legal authority to regulate

certain activities and, as local entities, are the preferred regulators of

activities which may contribute to ground water contamination in both urban

and rural areas;

(5) The Department of Environmental Quality should be given

authority to regulate sources of contamination when necessary to prevent

serious deterioration of ground water quality;

(6) The powers given to districts and the Department of

Environmental Quality should be used to stabilize, reduce, and prevent the

increase or spread of ground water contamination; and

(7) There is a need to provide for the orderly management of ground

water quality in areas where available data, evidence, and other information

indicate that present or potential ground water conditions require the

designation of such areas as management areas.

Sec. 45. Section 46-656.04, Reissue Revised Statutes of Nebraska,

is amended to read:

46-656.04. Nothing in sections 46-656.35 to 46-656.48 the Nebraska —————————— ———————— ————————— —— ————————— _____________

 ______________________________________________ Ground Water Management and Protection Act shall be construed to limit the

powers of the Department of Health and Human Services Regulation and Licensure

provided in the Nebraska Safe Drinking Water Act.

 ____________________________________________________________________ Nothing in the Nebraska Ground Water Management and Protection Act

 ______________________________________________________________________________ relating to the contamination of ground water is intended to limit the powers

 ______________________________________________________________________________ of the Department of Environmental Quality provided in Chapter 81, article 15.

Sec. 46. Section 46-656.07, Revised Statutes Supplement, 2003, is

amended to read:

 —————————— 46-656.07. For purposes of the Municipal and Rural Domestic Ground

Water Transfers Permit Act, the Nebraska Ground Water Management and

Protection Act, and sections 46-601 to 46-613.02, 46-636, 46-637, and 46-651

to 46-655, unless the context otherwise requires:

(1) Person shall mean means a natural person, a partnership, a ————— ———— _____

limited liability company, an association, a corporation, a municipality, an

irrigation district, an agency or a political subdivision of the state, or a

department, an agency, or a bureau of the United States;

(2) Ground water shall mean means that water which occurs in or ————— ———— _____

moves, seeps, filters, or percolates through ground under the surface of the

 land;

(3) Contamination or contamination of ground water shall mean means ————— ———— _____

nitrate nitrogen or other material which enters the ground water due to action

of any person and causes degradation of the quality of ground water sufficient

to make such ground water unsuitable for present or reasonably foreseeable

 beneficial uses;

(4) District shall mean means a natural resources district operating ————— ———— _____

pursuant to Chapter 2, article 32;

(5) Illegal water well shall mean means (a) any water well operated ————— ———— _____

or constructed without or in violation of a permit required by the Nebraska

Ground Water Management and Protection Act, (b) any water well not in

compliance with rules and regulations adopted and promulgated pursuant to the

act, (c) any water well not properly registered in accordance with sections

46-602 to 46-604, or (d) any water well not in compliance with any other

applicable laws of the State of Nebraska or with rules and regulations adopted

and promulgated pursuant to such laws;

(6) To commence construction of a water well shall mean means the ————— ———— _____

beginning of the boring, drilling, jetting, digging, or excavating of the

actual water well from which ground water is to be withdrawn;

 ————— ———— _____ (7) Management area shall mean means any area so designated by a

 ————————— ____________________ district pursuant to section 46-656.20 52 or 58 of this act, by the Director

of Environmental Quality pursuant to section 46-656.39 65 of this act, or by ————————— ______________

the Director of Natural Resources Interrelated Water Review Board pursuant to ———————— —— ——————— ————————— _______________________________

section 46-656.52 59 of this act. Management area shall include includes a ————————— _______________ ————— ——————— ________

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control area or a special ground water quality protection area designated

prior to July 19, 1996;

(8) Management plan shall mean means a ground water management plan ————— ———— _____

developed by a district and submitted to the Director of Natural Resources for

review pursuant to sections 46-656.12 to 46-656.15 section 51 of this act; ———————— ————————— —— ————————— ______________________

(9) Ground water reservoir life goal shall mean means the finite or ————— ———— _____

infinite period of time which a district establishes as its goal for

maintenance of the supply and quality of water in a ground water reservoir at

the time a ground water management plan is adopted;

(10) Board shall mean means the board of directors of a district; ————— ———— _____

(11) Irrigated acre shall mean any acre that is certified as such ———— ————————— ———— ————— ———— ——— ———— ———— —— ————————— —— ————

pursuant to rules and regulations of the district and that is actually capable ———————— —— ————— ——— ——————————— —— ——— ———————— ——— ———— —— ———————— ———————

of being supplied water through irrigation works, mechanisms, or facilities —— ————— ———————— ————— ——————— —————————— —————— ——————————— —— ——————————

existing at the time of the allocation; ———————— —— ——— ———— —— ——— ———————————

(12) (11) Acre-inch shall mean means the amount of water necessary ———— ____ ————— ———— _____

to cover an acre of land one inch deep;

(13) (12) Subirrigation or subirrigated land shall mean means the ———— ____ ————— ———— _____

natural occurrence of a ground water table within the root zone of

agricultural vegetation, not exceeding ten feet below the surface of the

 ground;

(14) (13) Best management practices shall mean means schedules of ———— ____ ————— ———— _____

activities, maintenance procedures, and other management practices utilized to

prevent or reduce present and future contamination of ground water which may

include irrigation scheduling, proper rate and timing of fertilizer

application, and other fertilizer and pesticide management programs. In

determining the rate of fertilizer application, the district shall consult

with the University of Nebraska or a certified crop advisor certified by the

American Society of Agronomy;

(15) (14) Point source shall mean means any discernible, confined, ———— ____ ————— ———— _____

and discrete conveyance, including, but not limited to, any pipe, channel,

tunnel, conduit, well, discrete fissure, container, rolling stock, vessel,

other floating craft, or other conveyance, over which the Department of

Environmental Quality has regulatory authority and from which a substance

which can cause or contribute to contamination of ground water is or may be

 discharged;

 ———— ____ ______________________________________________ (16) (15) Allocation, as it relates to water use for irrigation

purposes, means shall mean the allotment of a specified total number of _______________ ————— ————

acre-inches of irrigation water per irrigated acre per year or an average

number of acre-inches of irrigation water per irrigated acre over any

reasonable period of time;

(17) (16) Rotation shall mean means a recurring series of use and ———— ____ ————— ———— _____

nonuse of irrigation wells on an hourly, daily, weekly, monthly, or yearly

 basis;

(18) (17) Water well shall have has the same meaning as in section ———— ____ ————— ———— ___

 46-601.01; and ———

(19) (18) Surface water project sponsor shall mean means an ———— ____ ————— ———— _____

irrigation district created pursuant to Chapter 46, article 1, a reclamation

district created pursuant to Chapter 46, article 5, or a public power and

irrigation district created pursuant to Chapter 70, article 6;_

 ____________________________________________________________________ (19) Beneficial use means that use by which water may be put to use

 __________________________________________ to the benefit of humans or other species;

 ____________________________________________________________________ (20) Consumptive use means the amount of water that is consumed

 ______________________________________________________________________________ under appropriate and reasonably efficient practices to accomplish without

 ______________________________________________________________________________ waste the purposes for which the appropriation or other legally permitted use

 _________________ is lawfully made;

 ____________________________________________________________________ (21) Dewatering well means a well constructed and used solely for

 _________________________________________________________ the purpose of lowering the ground water table elevation;

 ____________________________________________________________________ (22) Emergency situation means any set of circumstances that

 ______________________________________________________________________________ requires the use of water from any source that might otherwise be regulated or

 ______________________________________________________________________________ prohibited and the agency, district, or organization responsible for

 ______________________________________________________________________________ regulating water use from such source reasonably and in good faith believes

 ______________________________________________________________________________ that such use is necessary to protect the public health, safety, and welfare,

 ______________________________________________________________________________ including, if applicable, compliance with federal or state water quality

 standards; __________

 ____________________________________________________________________ (23) Good cause shown means a reasonable justification for granting

 ______________________________________________________________________________ a variance for a consumptive use of water that would otherwise be prohibited

 ______________________________________________________________________________ by rule or regulation and which the granting agency, district, or organization

 ______________________________________________________________________________ reasonably and in good faith believes will provide an economic, environmental,

 ______________________________________________________________________________ social, or public health and safety benefit that is equal to or greater than

 ______________________________________________________________________________ the benefit resulting from the rule or regulation from which a variance is

 sought; _______

 ____________________________________________________________________ (24) Historic consumptive use means the amount of water that has

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 ______________________________________________________________________________ previously been consumed under appropriate and reasonably efficient practices

 ______________________________________________________________________________ to accomplish without waste the purposes for which the appropriation or other

 ________________________________________ legally permitted use was lawfully made;

 ____________________________________________________________________ (25) Monitoring well means a water well that is designed and

 ______________________________________________________________________________ constructed to provide ongoing hydrologic or water quality information and is

 _________________________________ not intended for consumptive use;

 ____________________________________________________________________ (26) Order, except as otherwise specifically provided, includes any

 ______________________________________________________________________________ order required by the Nebraska Ground Water Management and Protection Act, by

 ______________________________________________________________________________ rule or regulation, or by a decision adopted by a district by vote of the

 ______________________________________________________________________________ board of directors of the district taken at any regularly scheduled or

 _________________________________________ specially scheduled meeting of the board;

 ____________________________________________________________________ (27) Overall difference between the current and fully appropriated

 ______________________________________________________________________________ levels of development means the extent to which existing uses of

 ______________________________________________________________________________ hydrologically connected surface water and ground water and conservation

 ______________________________________________________________________________ activities result in the water supply available for purposes identified in

 ______________________________________________________________________________ subsection (3) of section 53 of this act to be less than the water supply

 ______________________________________________________________________________ available if the river basin, subbasin, or reach had been determined to be

 _____________________________________________________________ fully appropriated in accordance with section 54 of this act;

 ____________________________________________________________________ (28) Test hole means a hole designed solely for the purposes of

 _______________________________________________________________ obtaining information on hydrologic or geologic conditions; and

 ____________________________________________________________________ (29) Variance means the approval to act in a manner contrary to

 ______________________________________________________________________________ existing rules or regulations from a governing body whose rule or regulation

 _______________________ is otherwise applicable.

Sec. 47. Section 46-656.08, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— 46-656.08. Regardless of whether or not any portion of a district

has been designated as a management area, in order to administer and enforce

the Nebraska Ground Water Management and Protection Act and to effectuate the

policy of the state to conserve ground water resources, a district may:

(1) Adopt and promulgate rules and regulations necessary to

discharge the administrative duties assigned in the act;

(2) Require such reports from ground water users as may be

 necessary;

(3) Require meters to be placed on any water wells for the purpose

of acquiring water use data;

 ________________________________________________________________ (4) Require decommissioning of water wells that are not properly

 ______________________________________________________________________________ classified as active status water wells as defined in section 46-1204.02 or

 _____________________________________________________________ inactive status water wells as defined in section 46-1207.02;

 ___ (5) Conduct investigations and cooperate or contract with agencies

of the United States, agencies or political subdivisions of this state, public

or private corporations, or any association or individual on any matter

relevant to the administration of the act;

 ——— ___ (5) (6) Report to and consult with the Department of Environmental

Quality on all matters concerning the entry of contamination or contaminating

materials into ground water supplies; and

 ——— ___ (6) (7) Issue cease and desist orders, following ten days' notice to

the person affected stating the contemplated action and in general the grounds

for the action and following reasonable opportunity to be heard, to enforce

any of the provisions of the act or of orders or permits issued pursuant to

the act, to initiate suits to enforce the provisions of orders issued pursuant

to the act, and to restrain the construction of illegal water wells or the

withdrawal or use of water from illegal water wells.

 ____________________________________________________________________ Before any rule or regulation is adopted pursuant to this section, a

 ______________________________________________________________________________ public hearing shall be held within the district. Notice of the hearing shall

 _______________________________________________ be given as provided in section 83 of this act.

Sec. 48. Section 46-656.11, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— 46-656.11. (1) In order to conserve ground water supplies and to

prevent the inefficient or improper runoff of such ground water, each person

who uses ground water irrigation in the state shall take action to control or

prevent the runoff of water used in such irrigation.

(2) Each district shall adopt, following public hearing, notice of

which shall be given in the manner provided in section 46-656.19 83 of this ————————— ____________

 ___ act, rules and regulations necessary to control or prohibit surface runoff of

water derived from ground water irrigation. Such rules and regulations shall

prescribe (a) standards and criteria delineating what constitutes the

inefficient or improper runoff of ground water used in irrigation, (b)

procedures to prevent, control, and abate such runoff, (c) measures for the

construction, modification, extension, or operation of remedial measures to

prevent, control, or abate runoff of ground water used in irrigation, and (d)

procedures for the enforcement of this section.

(3) Each district may, upon ten days' notice to the person affected,

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stating the contemplated action and in general the grounds therefor, and upon

reasonable opportunity to be heard, issue cease and desist orders to enforce

any of the provisions of this section or rules and regulations issued pursuant

to this section.

Sec. 49. Section 46-656.12, Revised Statutes Supplement, 2003, is

amended to read:

 —————————— ——————— ________ 46-656.12. Each district shall prepare maintain a ground water

management plan based upon the best available information and submit shall —————— _____

 ____________________ submit amendments to such plan to the Director of Natural Resources for review

 and approval.

The plan shall include, but not be limited to, the identification to

the extent possible of:

(1) Ground water supplies within the district including

transmissivity, saturated thickness maps, and other ground water reservoir

information, if available;

(2) Local recharge characteristics and rates from any sources, if

 available;

(3) Average annual precipitation and the variations within the

 district;

(4) Crop water needs within the district;

(5) Current ground water data-collection programs;

(6) Past, present, and potential ground water use within the

 district;

(7) Ground water quality concerns within the district;

(8) Proposed water conservation and supply augmentation programs for

 the district;

(9) The availability of supplemental water supplies, including the

opportunity for ground water recharge;

(10) The opportunity to integrate and coordinate the use of water

from different sources of supply;

(11) Ground water management objectives, including a proposed ground

water reservoir life goal for the district. For management plans adopted or

revised after July 19, 1996, the ground water management objectives may

include any proposed integrated management objectives for hydrologically

connected ground water and surface water supplies but a management plan does

not have to be revised prior to the adoption or implementation of a joint — —————

action plan pursuant to section 46-656.28 an integrated management plan —————— ———— ———————— —— ——————— ————————— ______________________________

 ________________________________________ pursuant to section 58 or 59 of this act;

(12) Existing subirrigation uses within the district;

(13) The relative economic value of different uses of ground water

proposed or existing within the district; and

(14) The geographic and stratigraphic boundaries of any proposed

 management area.

If the expenses incurred by a district preparing or amending a ____________

ground water management plan exceed twenty-five percent of the district's

current budget, the district may make application to the Nebraska Resources

Development Fund for assistance.

 ____________________________________________________________________ Each district's ground water management plan shall also identify, to

 ______________________________________________________________________________ the extent possible, the levels and sources of ground water contamination

 ______________________________________________________________________________ within the district, ground water quality goals, long-term solutions necessary

 ______________________________________________________________________________ to prevent the levels of ground water contaminants from becoming too high and

 ______________________________________________________________________________ to reduce high levels sufficiently to eliminate health hazards, and practices

 ______________________________________________________________________________ recommended to stabilize, reduce, and prevent the occurrence, increase, or

 _____________________________________ spread of ground water contamination.

If a control area, management area, or special ground water quality —— — ——————— ————— —————————— ————— —— ——————— —————— ————— ———————

protection area has been designated in a district prior to July 19, 1996, the —————————— ———— ——— ———— —————————— —— — ———————— ————— —— ———— ——— ————— ———

area shall be designated a management area but the district shall not be ———— ————— —— —————————— — —————————— ———— ——— ——— ———————— ————— ——— ——

required to adopt or amend its existing rules, regulations, action plan, or ———————— —— ————— —— ————— ——— ———————— —————— ———————————— —————— ————— ——

ground water management plan, due to that change in designation, for the —————— ————— —————————— ————— ——— —— ———— —————— —— ———————————— ——— ———

geographical area of the district included in such control area, management ———————————— ———— —— ——— ———————— ———————— —— ———— ——————— ————— ——————————

area, or special ground water quality protection area. A district may change ————— —— ——————— —————— ————— ——————— —————————— ————— — ———————— ——— ——————

references from control area or special ground water quality protection area —————————— ———— ——————— ———— —— ——————— —————— ————— ——————— —————————— ————

to management area without holding a public hearing. Before taking any action —— —————————— ———— ——————— ——————— — —————— ———————— —————— —————— ——— ——————

described in the remainder of this section, a district shall hold a public ————————— —— ——— ————————— —— ———— ———————— — ———————— ————— ———— — ——————

hearing within the district. Notice of the hearing shall be given as provided ——————— —————— ——— ————————— —————— —— ——— ——————— ————— —— ————— —— ————————

in section 46-656.19. If the changes made by Laws 1996, LB 108, require —— ——————— —————————— —— ——— ——————— ———— —— ———— ————— —— ———— ———————

substantive changes to the district's rules, regulations, or plans, the ——————————— ——————— —— ——— —————————— —————— ———————————— —— —————— ———

district shall enact appropriate amendments to such rules, regulations, or ———————— ————— ————— ——————————— —————————— —— ———— —————— ———————————— ——

plans. A district in which a special ground water quality protection area was —————— — ———————— —— ————— — ——————— —————— ————— ——————— —————————— ———— ———

designated prior to July 19, 1996, shall insure compliance with section —————————— ————— —— ———— ——— ————— ————— —————— —————————— ———— ———————

46-656.29. A district in which a control area, management area, or special —————————— — ———————— —— ————— — ——————— ————— —————————— ————— —— ———————

ground water quality protection area was designated prior to July 19, 1996, —————— ————— ——————— —————————— ———— ——— —————————— ————— —— ———— ——— —————

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may adopt any of the controls permitted by section 46-656.25. ——— ————— ——— —— ——— ———————— ————————— —— ——————— ——————————

Sec. 50. Section 46-656.13, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— _______________ 46-656.13. During preparation or modification of a ground water

management plan, the district shall actively solicit public comments and

opinions and shall utilize and draw upon existing research, data, studies, or

any other information which has been compiled by or is in the possession of

state or federal agencies, natural resources districts, or any other

subdivision of the state. State agencies, districts, and other subdivisions

shall furnish information or data upon the request of any district preparing

 _____________ or modifying such a plan. A district shall not be required to initiate new

studies or data-collection efforts or to develop computer models in order to

 _________ prepare or modify a plan.

Sec. 51. Section 46-656.14, Revised Statutes Supplement, 2002, is

amended to read:

 —————————— ___ 46-656.14. (1) The Director of Natural Resources shall review any

 ____________________ ground water management plan or plan modification submitted by a district to

ensure that the best available studies, data, and information, whether

previously existing or newly initiated, were utilized and considered and that

such plan is supported by and is a reasonable application of such information.

If a management area is proposed and the primary purpose of the proposed

management area is protection of water quality, the director shall consult

with the Department of Environmental Quality regarding approval or denial of

the management plan. The director shall consult with the Conservation and

Survey Division of the University of Nebraska and such other state or federal

agencies the director shall deem necessary when reviewing plans. Within

ninety days after receipt of a plan, the director shall transmit his or her

specific findings, conclusions, and reasons for approval or disapproval to the

district submitting the plan.

 ____________________________________________________________________ (2) If the Director of Natural Resources disapproves a ground water

 ______________________________________________________________________________ management plan, the district which submitted the plan shall, in order to

 ______________________________________________________________________________ establish a management area, submit to the director either the original or a

 ______________________________________________________________________________ revised plan with an explanation of how the original or revised plan addresses

 ______________________________________________________________________________ the issues raised by the director in his or her reasons for disapproval. Once

 ______________________________________________________________________________ a district has submitted an explanation pursuant to this section, such

 ______________________________________________________________________________ district may proceed to schedule a hearing pursuant to section 52 of this act.

Sec. 52. Section 46-656.19, Revised Statutes Supplement, 2002, is

amended to read:

46-656.19. Prior to proceeding toward establishing a management —————————— ————— —— —————————— —————— ———————————— — ——————————

area, a (1) A natural resources district may establish a ground water ————— — ____________________________________________________________________

 ______________________________________________________________________________ management area in accordance with this section to accomplish any one or more

 ______________________________________________________________________________ of the following objectives: (a) Protection of ground water quantity; (b)

 ______________________________________________________________________________ protection of ground water quality; or (c) prevention or resolution of

 ______________________________________________________________________________ conflicts between users of ground water and appropriators of surface water,

 __________________________________________________________________ which ground water and surface water are hydrologically connected.

 ____________________________________________________________________ (2) Prior to establishment by a district of a management area other

 ______________________________________________________________________________ than a management area being established in accordance with section 58 of this

 _____________________ act, the district's management plan shall have been approved by the Director

of Natural Resources or the district shall have completed the requirements of

 _________________ ————————— ______________ subsection (2) of section 46-656.15 51 of this act. If necessary to determine

whether a management area should be designated, the district may initiate new

studies and data-collection efforts and develop computer models. In order to

establish a management area, the district shall fix a time and place for a

public hearing to consider the management plan information supplied by the

director and to hear any other evidence. The hearing shall be located within

or in reasonable proximity to the area proposed for designation as a

management area. Notice of the hearing shall be published as provided in ______________

 ______________________________________________________________________________ section 83 of this act, and the hearing shall be conducted in accordance with

 such section. _____________

 ____________________________________________________________________ (3)(a) Within ninety days after the hearing, the district shall

 ______________________________________________________________________________ determine whether a management area shall be designated. If the district

 ______________________________________________________________________________ determines that no management area shall be established, the district shall

 ______________________________ issue an order to that effect.

 ____________________________________________________________________ (b) If the district determines that a management area shall be

 ______________________________________________________________________________ established, the district shall by order designate the area as a management

 ______________________________________________________________________________ area and shall adopt one or more controls authorized by section 79 of this act

 ______________________________________________________________________________ to be utilized within the area in order to achieve the ground water management

 ______________________________________________________________________________ objectives specified in the plan. Such an order shall include a geographic

 ______________________________________________________________________________ and stratigraphic definition of the area. The boundaries and controls shall

 ______________________________________________________________________________ take into account any considerations brought forth at the hearing and

 ______________________________________________________________________________ administrative factors directly affecting the ability of the district to

 ______________________________________________________ implement and carry out local ground water management.

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 ____________________________________________________________________ (c) The controls adopted shall not include controls substantially

 ______________________________________________________________________________ different from those set forth in the notice of the hearing. The area

 ______________________________________________________________________________ designated by the order shall not include any area not included in the notice

 _______________ of the hearing.

 ____________________________________________________________________ (4) Modification of the boundaries of a district-designated

 ______________________________________________________________________________ management area or dissolution of such an area shall be in accordance with the

 ______________________________________________________________________________ procedures established in this section. Hearings for such modifications or

 ______________________________________________________________________________ for dissolution may not be initiated more often than once a year. Hearings

 ______________________________________________________________________________ for modification of controls may be initiated as often as deemed necessary by

 ______________________________________________________________________________ the district, and such modifications may be accomplished using the procedure

 ________________ in this section.

 ____________________________________________________________________ (5) A district shall, prior to adopting or amending any rules or

 ______________________________________________________________________________ regulations for a management area, consult with any holders of permits for

 ______________________________________________________________________________ intentional or incidental underground water storage and recovery issued

 __________________________________________________________________________ —— pursuant to section 46-226.02, 46-233, 46-240, 46-241, 46-242, or 46-297. at

the expense of the district in a newspaper published or of general circulation ——— ——————— —— ——— ———————— —— — ————————— ————————— —— —— ——————— ———————————

in the area involved at least once each week for three consecutive weeks, the —— ——— ———— ———————— —— ————— ———— ———— ———— ——— ————— ——————————— —————— ———

last publication to be not less than seven days prior to the hearing. The ———— ——————————— —— —— ——— ———— ———— ————— ———— ————— —— ——— ———————— ———

notice shall provide a general description of the contents of the plan and of —————— ————— ——————— — ——————— ——————————— —— ——— ———————— —— ——— ———— ——— ——

the area which will be considered for inclusion in the management area and a ——— ———— ————— ———— —— —————————— ——— ————————— —— ——— —————————— ———— ——— —

general description of all controls proposed for adoption or amendment by the ——————— ——————————— —— ——— ———————— ———————— ——— ———————— —— ————————— —— ———

district and shall identify all locations where a copy of the full text of the ———————— ——— ————— ———————— ——— ————————— ————— — ———— —— ——— ———— ———— —— ———

proposed controls may be obtained. The full text of all controls shall be ———————— ———————— ——— —— ————————— ——— ———— ———— —— ——— ———————— ————— ——

available to the public upon request not later than the date of first ————————— —— ——— —————— ———— ——————— ——— ————— ———— ——— ———— —— —————

 publication. ————————————

All interested persons shall be allowed to appear and present ——— —————————— ——————— ————— —— ——————— —— —————— ——— ———————

testimony. The hearing shall include testimony of a representative of the —————————— ——— ——————— ————— ——————— ————————— —— — —————————————— —— ———

Department of Natural Resources and, if the primary purpose of the proposed —————————— —— ——————— ————————— ———— —— ——— ——————— ——————— —— ——— ————————

management area is protection of water quality, of the Department of —————————— ———— —— —————————— —— ————— ———————— —— ——— —————————— ——

Environmental Quality and shall include the results of any studies or ————————————— ——————— ——— ————— ——————— ——— ——————— —— ——— ——————— ——

investigations conducted by the district. —————————————— ————————— —— ——— —————————

 __________________________________________________________ Sec. 53. (1)(a) By January 1 of each year beginning in 2006 and

 ______________________________________________________________________________ except as otherwise provided in this section and section 60 of this act, the

 ______________________________________________________________________________ Department of Natural Resources shall complete an evaluation of the expected

 ______________________________________________________________________________ long-term availability of hydrologically connected water supplies for both

 ______________________________________________________________________________ existing and new surface water uses and existing and new ground water uses in

 ______________________________________________________________________________ each of the state's river basins and shall issue a report that describes the

 ______________________________________________________________________________ results of the evaluation. For purposes of the evaluation and the report, a

 ______________________________________________________________________________ river basin may be divided into two or more subbasins or reaches. A river

 ______________________________________________________________________________ basin, subbasin, or reach for which an integrated management plan has been or

 ______________________________________________________________________________ is being developed pursuant to sections 55 to 57 of this act or pursuant to

 ______________________________________________________________________________ section 59 of this act shall not be evaluated unless it is being reevaluated

 ______________________________________________________________________________ as provided in subsection (2) of this section. For each river basin,

 ______________________________________________________________________________ subbasin, or reach evaluated, the report shall describe (i) the nature and

 ______________________________________________________________________________ extent of use of both surface water and ground water in each river basin,

 ______________________________________________________________________________ subbasin, or reach, (ii) the geographic area within which the department

 ______________________________________________________________________________ preliminarily considers surface water and ground water to be hydrologically

 ______________________________________________________________________________ connected and the criteria used for that determination, and (iii) the extent

 ______________________________________________________________________________ to which the then-current uses affect available near-term and long-term water

 ______________________________________________________________________________ supplies. River basins, subbasins, and reaches designated as overappropriated

 ______________________________________________________________________________ in accordance with subsection (4) of this section shall not be evaluated by

 the department. _______________

 ____________________________________________________________________ (b) Based on the information reviewed in the evaluation process, the

 ______________________________________________________________________________ department shall arrive at a preliminary conclusion for each river basin,

 ______________________________________________________________________________ subbasin, and reach evaluated as to whether such river basin, subbasin, or

 ______________________________________________________________________________ reach presently is fully appropriated without the initiation of additional

 ______________________________________________________________________________ uses. The department shall also determine if and how such preliminary

 ______________________________________________________________________________ conclusion would change if no additional legal constraints were imposed on

 ______________________________________________________________________________ future development of hydrologically connected surface water and ground water

 ______________________________________________________________________________ and reasonable projections are made about the extent and location of future

 ____________________________________________________ development in such river basin, subbasin, or reach.

 ____________________________________________________________________ (c) In addition to the conclusion about whether a river basin,

 ______________________________________________________________________________ subbasin, or reach is fully appropriated, the department shall include in the

 ______________________________________________________________________________ report, for informational purposes only, a summary of relevant data provided

 ______________________________________________________________________________ by any interested party concerning the social, economic, and environmental

 ______________________________________________________________________________ impacts of additional hydrologically connected surface water and ground water

 ______________________________________________________________________________ uses on resources that are dependent on streamflow or ground water levels but

 ___________________________________________________ are not protected by appropriations or regulations.

 ____________________________________________________________________ (d) In preparing the report, the department shall rely on the best

 ______________________________________________________________________________ scientific data and information readily available. Upon request by the

 ______________________________________________________________________________ department, state agencies, natural resources districts, irrigation districts,

 ______________________________________________________________________________ reclamation districts, public power and irrigation districts, mutual

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 ______________________________________________________________________________ irrigation companies, canal companies, municipalities, and other water users

 ______________________________________________________________________________ and stakeholders shall provide relevant data and information in their

 ______________________________________________________________________________ possession. The Department of Natural Resources shall specify by rule and

 ______________________________________________________________________________ regulation the types of scientific data and other information that will be

 ______________________________________________________________________________ considered for making the preliminary determinations required by this section.

 ____________________________________________________________________ (2) The department shall complete a reevaluation of a river basin,

 ______________________________________________________________________________ subbasin, or reach for which an integrated management plan has been or is

 ______________________________________________________________________________ being prepared if the department has reason to believe that a reevaluation

 ______________________________________________________________________________ might lead to a different determination about whether such river basin,

 ______________________________________________________________________________ subbasin, or reach is fully appropriated or overappropriated. A decision to

 ______________________________________________________________________________ reevaluate may be reached by the department on its own or in response to a

 ______________________________________________________________________________ petition filed with the department by any interested person. To be considered

 ______________________________________________________________________________ sufficient to justify a reevaluation, a petition shall be accompanied by

 ______________________________________________________________________________ supporting information showing that (a) new scientific data or other

 ______________________________________________________________________________ information relevant to the determination of whether the river basin,

 ______________________________________________________________________________ subbasin, or reach is fully appropriated or overappropriated has become

 ______________________________________________________________________________ available since the last evaluation of such river basin, subbasin, or reach,

 ______________________________________________________________________________ (b) the department relied on incorrect or incomplete information when the

 ______________________________________________________________________________ river basin, subbasin, or reach was last evaluated, or (c) the department

 ______________________________________________________________________________ erred in its interpretation or application of the information available when

 ______________________________________________________________________________ the river basin, subbasin, or reach was last evaluated. If a petition

 ______________________________________________________________________________ determined by the department to be sufficient is filed before March 1 of any

 ______________________________________________________________________________ year, the reevaluation of the river basin, subbasin, or reach involved shall

 ______________________________________________________________________________ be included in the next annual report prepared in accordance with subsection

 ______________________________________________________________________________ (1) of this section. If any such petition is filed on or after March 1 of any

 ______________________________________________________________________________ year, the department may defer the reevaluation of the river basin, subbasin,

 ___________________________________________________________________ or reach involved until the second annual report after such filing.

 ____________________________________________________________________ (3) A river basin, subbasin, or reach shall be deemed fully

 ______________________________________________________________________________ appropriated if the department determines that then-current uses of

 ______________________________________________________________________________ hydrologically connected surface water and ground water in the river basin,

 ______________________________________________________________________________ subbasin, or reach cause or will in the reasonably foreseeable future cause

 ______________________________________________________________________________ (a) the surface water supply to be insufficient to sustain over the long term

 ______________________________________________________________________________ the beneficial or useful purposes for which existing natural flow or storage

 ______________________________________________________________________________ appropriations were granted and the beneficial or useful purposes for which,

 ______________________________________________________________________________ at the time of approval, any existing instream appropriation was granted, (b)

 ______________________________________________________________________________ the streamflow to be insufficient to sustain over the long term the beneficial

 ______________________________________________________________________________ uses from wells constructed in aquifers dependent on recharge from the river

 ______________________________________________________________________________ or stream involved, or (c) reduction in the flow of a river or stream

 ______________________________________________________________________________ sufficient to cause noncompliance by Nebraska with an interstate compact or

 ______________________________________________________________________________ decree, other formal state contract or agreement, or applicable state or

 federal laws. _____________

 ____________________________________________________________________ (4)(a) A river basin, subbasin, or reach shall be deemed

 ______________________________________________________________________________ overappropriated if, on the operative date of this section, the river basin,

 ______________________________________________________________________________ subbasin, or reach is subject to an interstate cooperative agreement among

 ______________________________________________________________________________ three or more states and if, prior to such date, the department has declared a

 ______________________________________________________________________________ moratorium on the issuance of new surface water appropriations in such river

 ______________________________________________________________________________ basin, subbasin, or reach and has requested each natural resources district

 ______________________________________________________________________________ with jurisdiction in the affected area in such river basin, subbasin, or reach

 ______________________________________________________________________________ either (i) to close or to continue in effect a previously adopted closure of

 ______________________________________________________________________________ all or part of such river basin, subbasin, or reach to the issuance of

 ______________________________________________________________________________ additional water well permits in accordance with subdivision (1)(k) of section

 ______________________________________________________________________________ 46-656.25 as such section existed prior to the operative date of this section

 ______________________________________________________________________________ or (ii) to temporarily suspend or to continue in effect a temporary

 ______________________________________________________________________________ suspension, previously adopted pursuant to section 46-656.28 as such section

 ______________________________________________________________________________ existed prior to the operative date of this section, on the drilling of new

 ___________________________________________________________________ water wells in all or part of such river basin, subbasin, or reach.

 ____________________________________________________________________ (b) Within sixty days after the operative date of this section, the

 ______________________________________________________________________________ department shall designate which river basins, subbasins, or reaches are

 ______________________________________________________________________________ overappropriated. The designation shall include a description of the

 ______________________________________________________________________________ geographic area within which the department has determined that surface water

 ______________________________________________________________________________ and ground water are hydrologically connected and the criteria used to make

 such determination. ___________________

 ________________________________________________________ Sec. 54. (1) Whenever the Department of Natural Resources makes a

 ______________________________________________________________________________ preliminary determination that a river basin, subbasin, or reach not

 ______________________________________________________________________________ previously designated as overappropriated and not previously determined to be

 ______________________________________________________________________________ fully appropriated has become fully appropriated, the department shall place

 ______________________________________________________________________________ an immediate stay on the issuance of any new natural-flow, storage, or

 ______________________________________________________________________________ storage-use appropriations in such river basin, subbasin, or reach. The

 ______________________________________________________________________________ department shall also provide prompt notice of such preliminary determination

 ______________________________________________________________________________ to all licensed water well contractors in the state and to each natural

 ______________________________________________________________________________ resources district that encompasses any of the geographic area involved.

 ______________________________________________________________________________ Immediately upon receipt of such notice by the natural resources district,

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 ______________________________________________________________________________ there shall be a stay on issuance of water well construction permits in the

 ______________________________________________________________________________ geographic area preliminarily determined by the department to include

 ______________________________________________________________________________ hydrologically connected surface water and ground water in such river basin,

 ______________________________________________________________________________ subbasin, or reach. The department shall also notify the public of the

 ______________________________________________________________________________ preliminary determination that the river basin, subbasin, or reach is fully

 ______________________________________________________________________________ appropriated and of the affected geographic area. Such notice shall be

 ______________________________________________________________________________ provided by publication once each week for three consecutive weeks in at least

 ______________________________________________________________________________ one newspaper of statewide circulation and in such other newspaper or

 ______________________________________________________________________________ newspapers as are deemed appropriate by the department to provide general

 ___________________________________________________ circulation in the river basin, subbasin, or reach.

 ____________________________________________________________________ (2) If the department preliminarily determines a river basin,

 ______________________________________________________________________________ subbasin, or reach to be fully appropriated and has identified the existence

 ______________________________________________________________________________ of hydrologically connected surface water and ground water in such river

 ______________________________________________________________________________ basin, subbasin, or reach, stays shall also be imposed (a) on the construction

 ______________________________________________________________________________ of any new water well in the area covered by the determination if such

 ______________________________________________________________________________ construction has not commenced prior to the determination, whether or not a

 ______________________________________________________________________________ construction permit for such water well was previously obtained from the

 ______________________________________________________________________________ department or a natural resources district, and (b) on the use of an existing

 ______________________________________________________________________________ water well or an existing surface water appropriation in the affected area to

 ______________________________________________________________________________ increase the number of acres historically irrigated. Such additional stays

 ______________________________________________________________________________ shall begin ten days after the first publication, in a newspaper of statewide

 ______________________________________________________________________________ circulation, of the notice of the preliminary determination that the river

 ________________________________________________ basin, subbasin, or reach is fully appropriated.

 ____________________________________________________________________ (3) Exceptions to the stays imposed pursuant to subsection (1), (2),

 ______________________________________________________________________________ (9), or (10) of this section shall exist for (a) test holes, (b) dewatering

 ______________________________________________________________________________ wells with an intended use of one year or less, (c) monitoring wells, (d)

 ______________________________________________________________________________ wells constructed pursuant to a ground water remediation plan under the

 ______________________________________________________________________________ Environmental Protection Act, (e) water wells designed and constructed to pump

 ______________________________________________________________________________ fifty gallons per minute or less, except that no two or more water wells that

 ______________________________________________________________________________ each pump fifty gallons per minute or less may be connected or otherwise

 ______________________________________________________________________________ combined to serve a single project such that the collective pumping would

 ______________________________________________________________________________ exceed fifty gallons per minute, (f) water wells for range livestock, (g) new

 ______________________________________________________________________________ surface water uses or water wells that are necessary to alleviate an emergency

 ______________________________________________________________________________ situation involving the provision of water for human consumption or public

 ______________________________________________________________________________ health and safety, (h) water wells defined by the applicable natural resources

 ______________________________________________________________________________ district as replacement water wells, but the consumptive use of any such

 ______________________________________________________________________________ replacement water well can be no greater than the historic consumptive use of

 ______________________________________________________________________________ the water well it is to replace or, if applicable, the historic consumptive

 ______________________________________________________________________________ use of the surface water use it is to replace, (i) new surface water uses and

 ______________________________________________________________________________ water wells to which a right or permit is transferred in accordance with state

 ______________________________________________________________________________ law, but the consumptive use of any such new use can be no greater than the

 ______________________________________________________________________________ historic consumptive use of the surface water use or water well from which the

 ______________________________________________________________________________ right or permit is being transferred, (j) water wells and increases in ground

 ______________________________________________________________________________ water irrigated acres for which a variance is granted by the applicable

 ______________________________________________________________________________ natural resources district for good cause shown, (k) to the extent permitted

 ______________________________________________________________________________ by the applicable natural resources district, increases in ground water

 ______________________________________________________________________________ irrigated acres that result from the use of water wells that were constructed

 ______________________________________________________________________________ within the nine months prior to the effective date of the stay but were not

 ______________________________________________________________________________ used for irrigation prior to that effective date, (l) to the extent permitted

 ______________________________________________________________________________ by the applicable natural resources district, increases in ground water

 ______________________________________________________________________________ irrigated acres that result from the use of water wells that are constructed

 ______________________________________________________________________________ after the effective date of the stay in accordance with a permit granted by

 ______________________________________________________________________________ that natural resources district prior to the effective date of the stay, (m)

 ______________________________________________________________________________ surface water uses for which temporary public-use construction permits are

 ______________________________________________________________________________ issued pursuant to subsection (8) of section 46-233, (n) surface water uses

 ______________________________________________________________________________ and increases in surface water irrigated acres for which a variance is granted

 ______________________________________________________________________________ by the department for good cause shown, and (o) water wells for which permits

 ______________________________________________________________________________ have been approved by the Department of Natural Resources pursuant to the

 ______________________________________________________________________________ Municipal and Rural Domestic Ground Water Transfers Permit Act prior to the

 ___________________________ effective date of the stay.

 ____________________________________________________________________ (4) Except as otherwise provided in this section, any stay imposed

 ______________________________________________________________________________ pursuant to subsections (1) and (2) of this section shall remain in effect for

 ______________________________________________________________________________ the affected river basin, subbasin, or reach until the department has made a

 ______________________________________________________________________________ final determination regarding whether the river basin, subbasin, or reach is

 ______________________________________________________________________________ fully appropriated and, if the department's final determination is that the

 ______________________________________________________________________________ river basin, subbasin, or reach is fully appropriated, shall remain in effect

 ______________________________________________________________________________ as provided in subsection (12) of this section. Within the time period

 ______________________________________________________________________________ between the dates of the preliminary and final determinations, the department

 ______________________________________________________________________________ and the affected natural resources districts shall consult with any irrigation

 ______________________________________________________________________________ district, reclamation district, public power and irrigation district, mutual

 ______________________________________________________________________________ irrigation company, canal company, or municipality that relies on water from

 ______________________________________________________________________________ the affected river basin, subbasin, or reach and with other water users and

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 ______________________________________________________________________________ stakeholders as deemed appropriate by the department or the natural resources

 ______________________________________________________________________________ districts. The department shall also hold one or more public hearings not

 ______________________________________________________________________________ more than ninety days after the first publication of the notice required by

 ______________________________________________________________________________ subsection (1) of this section. Notice of the hearings shall be provided in

 ______________________________________________________________________________ the same manner as the notice required by such subsection. Any interested

 ______________________________________________________________________________ person may appear at such hearing and present written or oral testimony and

 ______________________________________________________________________________ evidence concerning the appropriation status of the river basin, subbasin, or

 ______________________________________________________________________________ reach, the department's preliminary conclusions about the extent of the area

 ______________________________________________________________________________ within which the surface water and ground water supplies for the river basin,

 ______________________________________________________________________________ subbasin, or reach are determined to be hydrologically connected, and whether

 ___________________________________________ the stays on new uses should be terminated.

 ____________________________________________________________________ (5) Within thirty days after the final hearing under subsection (4)

 ______________________________________________________________________________ of this section, the department shall notify the appropriate natural resources

 ______________________________________________________________________________ districts of the department's final determination with respect to the

 ______________________________________________________________________________ appropriation status of the river basin, subbasin, or reach. If the final

 ______________________________________________________________________________ determination is that the river basin, subbasin, or reach is fully

 ______________________________________________________________________________ appropriated, the department, at the same time, shall (a) decide whether to

 ______________________________________________________________________________ continue or to terminate the stays on new surface water uses and on increases

 ______________________________________________________________________________ in the number of surface water irrigated acres and (b) designate the

 ______________________________________________________________________________ geographic area within which the department considers surface water and ground

 ______________________________________________________________________________ water to be hydrologically connected in the river basin, subbasin, or reach

 ______________________________________________________________________________ and describe the methods and criteria used in making that determination. The

 ______________________________________________________________________________ department shall provide notice of its decision to continue or terminate the

 ______________________________________________________________________________ stays in the same manner as the notice required by subsection (1) of this

 section. ________

 ____________________________________________________________________ (6) If the department's final determination is that the river basin,

 ______________________________________________________________________________ subbasin, or reach is not fully appropriated, the department shall provide

 ______________________________________________________________________________ notice of such determination as provided in subsection (1) of this section,

 ______________________________________________________________________________ the stays imposed pursuant to subsections (1) and (2) of this section shall

 ______________________________________________________________________________ terminate immediately, and no further action pursuant to subsections (7)

 ______________________________________________________________________________ through (12) of this section and sections 55 to 59 of this act shall be

 required. _________

 ____________________________________________________________________ (7) Within ninety days after a final determination by the department

 ______________________________________________________________________________ that a river basin, subbasin, or reach is fully appropriated, an affected

 ______________________________________________________________________________ natural resources district may hold one or more public hearings on the

 ______________________________________________________________________________ question of whether the stays on the issuance of new water well permits, on

 ______________________________________________________________________________ the construction of new water wells, or on increases in ground water irrigated

 ______________________________________________________________________________ acres should be terminated. Notice of the hearings shall be published as

 ___________________________________ provided in section 83 of this act.

 ____________________________________________________________________ (8) Within forty-five days after a natural resources district's

 ______________________________________________________________________________ final hearing pursuant to subsection (7) of this section, the natural

 ______________________________________________________________________________ resources district shall decide (a) whether to terminate the stay on new water

 ______________________________________________________________________________ wells in all or part of the natural resources district subject to the stay and

 ______________________________________________________________________________ (b) whether to terminate the stay on increases in ground water irrigated

 ______________________________________________________________________________ acres. If the natural resources district decides not to terminate the stay on

 ______________________________________________________________________________ new water wells in any geographic area, it shall also decide whether to exempt

 ______________________________________________________________________________ from such stay the construction of water wells for which permits were issued

 ______________________________________________________________________________ prior to the issuance of the stay but for which construction had not begun

 ______________________________________________________________________________ prior to issuance of the stay. If construction of water wells for which

 ______________________________________________________________________________ permits were issued prior to the stay is allowed, all permits that were valid

 ______________________________________________________________________________ when the stay went into effect shall be extended by a time period equal to the

 ___________________ length of the stay.

 ____________________________________________________________________ (9) Whenever the department designates a river basin, subbasin, or

 ______________________________________________________________________________ reach as overappropriated, each previously declared moratorium on the issuance

 ______________________________________________________________________________ of new surface water appropriations in the river basin, subbasin, or reach

 ______________________________________________________________________________ shall continue in effect. The department shall also provide prompt notice of

 ______________________________________________________________________________ such designation to all licensed water well contractors in the state and to

 ______________________________________________________________________________ each natural resources district that encompasses any of the geographic area

 ______________________________________________________________________________ involved. Immediately upon receipt of such notice by a natural resources

 ______________________________________________________________________________ district, there shall be a stay on the issuance of new water well construction

 ______________________________________________________________________________ permits in any portion of such natural resources district that is within the

 ______________________________________________________________________________ hydrologically connected area designated by the department. The department

 ______________________________________________________________________________ shall also notify the public of its designation of such river basin, subbasin,

 ______________________________________________________________________________ or reach as overappropriated and of the geographic area involved in such

 ______________________________________________________________________________ designation. Such notice shall be published once each week for three

 ______________________________________________________________________________ consecutive weeks in at least one newspaper of statewide circulation and in

 ______________________________________________________________________________ such other newspapers as are deemed appropriate by the department to provide

 ______________________________________________________ general notice in the river basin, subbasin, or reach.

 ____________________________________________________________________ (10) Beginning ten days after the first publication of notice under

 ______________________________________________________________________________ subsection (9) of this section in a newspaper of statewide circulation, there

 ______________________________________________________________________________ shall also be stays (a) on the construction of any new water well in the

 ______________________________________________________________________________ hydrologically connected area if such construction has not commenced prior to

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 ______________________________________________________________________________ such date and if no permit for construction of the water well has been issued

 ______________________________________________________________________________ previously by either the department or the natural resources district, (b) on

 ______________________________________________________________________________ the use of an existing water well in the hydrologically connected area to

 ______________________________________________________________________________ increase the number of acres historically irrigated, and (c) on the use of an

 ______________________________________________________________________________ existing surface water appropriation to increase the number of acres

 ____________________________________________ historically irrigated in the affected area.

 ____________________________________________________________________ (11) Within ninety days after a designation by the department of a

 ______________________________________________________________________________ river basin, subbasin, or reach as overappropriated, a natural resources

 ______________________________________________________________________________ district that encompasses any of the hydrologically connected area designated

 ______________________________________________________________________________ by the department may hold one or more public hearings on the question of

 ______________________________________________________________________________ whether to terminate the stays on (a) the construction of new water wells

 ______________________________________________________________________________ within all or part of its portion of the hydrologically connected area, (b)

 ______________________________________________________________________________ the issuance of new water well construction permits in such area, or (c) the

 ______________________________________________________________________________ increase in ground water irrigated acres in such area. Notice of any hearing

 ______________________________________________________________________________ for such purpose shall be provided pursuant to section 83 of this act. Prior

 ______________________________________________________________________________ to the scheduling of a natural resources district hearing on the question of

 ______________________________________________________________________________ whether to terminate any such stay, the department and the affected natural

 ______________________________________________________________________________ resources district shall consult with any irrigation district, reclamation

 ______________________________________________________________________________ district, public power and irrigation district, mutual irrigation company,

 ______________________________________________________________________________ canal company, or municipality that relies on water from the affected river

 ______________________________________________________________________________ basin, subbasin, or reach and with other water users and stakeholders as

 _______________________________________________________________________ deemed appropriate by the department or the natural resources district.

 ____________________________________________________________________ (12) Any stay issued pursuant to this section shall remain in effect

 ______________________________________________________________________________ until (a) the stay has been terminated pursuant to subsection (5), (6), (8),

 ______________________________________________________________________________ or (11) of this section, (b) an integrated management plan for the affected

 ______________________________________________________________________________ river basin, subbasin, or reach has been adopted by the department and the

 ______________________________________________________________________________ affected natural resources districts and has taken effect, (c) an integrated

 ______________________________________________________________________________ management plan for the affected river basin, subbasin, or reach has been

 ______________________________________________________________________________ adopted by the Interrelated Water Review Board and has taken effect, (d) the

 ______________________________________________________________________________ department has completed a reevaluation pursuant to subsection (2) of section

 ______________________________________________________________________________ 53 of this act and has determined that the affected river basin, subbasin, or

 ______________________________________________________________________________ reach is not fully appropriated or overappropriated, or (e) the stay expires

 ______________________________________________________________________________ pursuant to this subsection. Such stay may be imposed initially for not more

 ______________________________________________________________________________ than three years following the department's designation of the river basin,

 ______________________________________________________________________________ subbasin, or reach as overappropriated or the department's final determination

 ______________________________________________________________________________ that a river basin, subbasin, or reach is fully appropriated and may be

 ______________________________________________________________________________ extended thereafter on an annual basis by agreement of the department and the

 ______________________________________________________________________________ affected natural resources district for not more than two additional years if

 ______________________________________________________________________________ necessary to allow the development, adoption, and implementation of an

 _____________________________________________________________________ integrated management plan pursuant to sections 55 to 59 of this act.

 _______________________________________________________ Sec. 55. (1) Whenever the Department of Natural Resources has

 ______________________________________________________________________________ designated a river basin, subbasin, or reach as overappropriated or has made a

 ______________________________________________________________________________ final determination that a river basin, subbasin, or reach is fully

 ______________________________________________________________________________ appropriated, the natural resources districts encompassing such river basin,

 ______________________________________________________________________________ subbasin, or reach and the department shall jointly develop an integrated

 ______________________________________________________________________________ management plan for such river basin, subbasin, or reach. The plan shall be

 ______________________________________________________________________________ completed, adopted, and take effect within three years after such designation

 ______________________________________________________________________________ or final determination unless the department and the natural resources

 ______________________________________________________________________________ districts jointly agree to an extension of not more than two additional years.

 ____________________________________________________________________ (2) In developing an integrated management plan, the effects of

 ______________________________________________________________________________ existing and potential new water uses on existing surface water appropriators

 ______________________________________________________________________________ and ground water users shall be considered. An integrated management plan

 ______________________________________________________________________________ shall include the following: (a) Clear goals and objectives with a purpose of

 ______________________________________________________________________________ sustaining a balance between water uses and water supplies so that the

 ______________________________________________________________________________ economic viability, social and environmental health, safety, and welfare of

 ______________________________________________________________________________ the river basin, subbasin, or reach can be achieved and maintained for both

 ______________________________________________________________________________ the near term and the long term; (b) a map clearly delineating the geographic

 ______________________________________________________________________________ area subject to the integrated management plan; (c) one or more of the ground

 ______________________________________________________________________________ water controls authorized for adoption by natural resources districts pursuant

 ______________________________________________________________________________ to section 79 of this act; and (d) one or more of the surface water controls

 ______________________________________________________________________________ authorized for adoption by the department pursuant to section 56 of this act.

 ______________________________________________________________________________ The plan may also provide for utilization of any applicable incentive programs

 ______________________________________________________________________________ authorized by law. Nothing in the integrated management plan for a fully

 ______________________________________________________________________________ appropriated river basin, subbasin, or reach shall require a natural resources

 ______________________________________________________________________________ district to regulate ground water uses in place at the time of the

 ______________________________________________________________________________ department's preliminary determination that the river basin, subbasin, or

 ______________________________________________________________________________ reach is fully appropriated, but a natural resources district may voluntarily

 _______________________ adopt such regulations.

 ____________________________________________________________________ (3) The ground water and surface water controls proposed for

 ______________________________________________________________________________ adoption in the integrated management plan pursuant to subsection (1) of this

 ______________________________________________________________________________ section shall, when considered together and with any applicable incentive

 ______________________________________________________________________________ programs, (a) be consistent with the goals and objectives of the plan, (b) be

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 ______________________________________________________________________________ sufficient to ensure that the state will remain in compliance with applicable

 ______________________________________________________________________________ state and federal laws and with any applicable interstate water compact or

 ______________________________________________________________________________ decree or other formal state contract or agreement pertaining to surface water

 ______________________________________________________________________________ or ground water use or supplies, and (c) protect the ground water users whose

 ______________________________________________________________________________ water wells are dependent on recharge from the river or stream involved and

 ______________________________________________________________________________ the surface water appropriators on such river or stream from streamflow

 ______________________________________________________________________________ depletion caused by surface water uses and ground water uses begun after the

 ______________________________________________________________________________ date the river basin, subbasin, or reach was designated as overappropriated or

 ______________________________________________________________________________ was preliminarily determined to be fully appropriated in accordance with

 _______________________ section 53 of this act.

 ____________________________________________________________________ (4)(a) In any river basin, subbasin, or reach that is designated as

 ______________________________________________________________________________ overappropriated, when the designated area lies within two or more natural

 ______________________________________________________________________________ resources districts, the department and the affected natural resources

 ______________________________________________________________________________ districts shall jointly develop a basin-wide plan for the area designated as

 ______________________________________________________________________________ overappropriated. Such plan shall be developed using the consultation and

 ______________________________________________________________________________ collaboration process described in subdivision (b) of this subsection, shall

 ______________________________________________________________________________ be developed concurrently with the development of the integrated management

 ______________________________________________________________________________ plan required pursuant to subsections (1) through (3) of this section, and

 ______________________________________________________________________________ shall be designed to achieve, in the incremental manner described in

 ______________________________________________________________________________ subdivision (d) of this subsection, the goals and objectives described in

 ______________________________________________________________________________ subsection (2) of this section. The basin-wide plan shall be adopted after

 ________________________________________________________________________ hearings by the department and the affected natural resources districts.

 ____________________________________________________________________ (b) In any river basin, subbasin, or reach designated as

 ______________________________________________________________________________ overappropriated and subject to this subsection, the department and each

 ______________________________________________________________________________ natural resources district encompassing such river basin, subbasin, or reach

 ______________________________________________________________________________ shall jointly develop an integrated management plan for such river basin,

 ______________________________________________________________________________ subbasin, or reach pursuant to subsections (1) through (3) of this section.

 ______________________________________________________________________________ Each integrated management plan for a river basin, subbasin, or reach subject

 ______________________________________________________________________________ to this subsection shall be consistent with any basin-wide plan developed

 ______________________________________________________________________________ pursuant to subdivision (a) of this subsection. Such integrated management

 ______________________________________________________________________________ plan shall be developed after consultation and collaboration with irrigation

 ______________________________________________________________________________ districts, reclamation districts, public power and irrigation districts,

 ______________________________________________________________________________ mutual irrigation companies, canal companies, and municipalities that rely on

 ______________________________________________________________________________ water from within the affected area and that, after being notified of the

 ______________________________________________________________________________ commencement of the plan development process, indicate in writing their desire

 ______________________________________________________________________________ to participate in such process. In addition, the department or the affected

 ______________________________________________________________________________ natural resources districts may include designated representatives of other

 ______________________________________________________________________________ stakeholders. If agreement is reached by all parties involved in such

 ______________________________________________________________________________ consultation and collaboration process, the department and each natural

 ______________________________________________________________________________ resources district shall adopt the agreed-upon integrated management plan. If

 ______________________________________________________________________________ agreement cannot be reached by all parties involved, the integrated management

 ______________________________________________________________________________ plan shall be developed and adopted by the department and the affected natural

 ______________________________________________________________________________ resources district pursuant to sections 55 to 58 of this act or by the

 ___________________________________________________________________ Interrelated Water Review Board pursuant to section 59 of this act.

 ____________________________________________________________________ (c) Any integrated management plan developed under this subsection

 ______________________________________________________________________________ shall identify the overall difference between the current and fully

 ______________________________________________________________________________ appropriated levels of development. Such determination shall take into

 ______________________________________________________________________________ account cyclical supply, including drought, identify the portion of the

 ______________________________________________________________________________ overall difference between the current and fully appropriated levels of

 ______________________________________________________________________________ development that is due to conservation measures, and identify the portions of

 ______________________________________________________________________________ the overall difference between the current and fully appropriated levels of

 ______________________________________________________________________________ development that are due to water use initiated prior to July 1, 1997, and to

 __________________________________________ water use initiated on or after such date.

 ____________________________________________________________________ (d) Any integrated management plan developed under this subsection

 ______________________________________________________________________________ shall adopt an incremental approach to achieve the goals and objectives

 ______________________________________________________________________________ identified under subdivision (2)(a) of this section using the following steps:

 ____________________________________________________________________ (i) The first incremental goals shall be to address the impact of

 ______________________________________________________________________________ streamflow depletions to (A) surface water appropriations and (B) water wells

 ______________________________________________________________________________ constructed in aquifers dependent upon recharge from streamflow, to the extent

 ______________________________________________________________________________ those depletions are due to water use initiated after July 1, 1997, and,

 ______________________________________________________________________________ unless an interstate cooperative agreement for such river basin, subbasin, or

 ______________________________________________________________________________ reach is no longer in effect, to prevent streamflow depletions that would

 ______________________________________________________________________________ cause noncompliance by Nebraska with such interstate cooperative agreement.

 ______________________________________________________________________________ During the first increment, the department and the affected natural resources

 ______________________________________________________________________________ districts shall also pursue voluntary efforts, subject to the availability of

 ______________________________________________________________________________ funds, to offset any increase in streamflow depletive effects that occur after

 ______________________________________________________________________________ July 1, 1997, but are caused by ground water uses initiated prior to such

 ______________________________________________________________________________ date. The department and the affected natural resources districts may also

 _______________________________________________________________ use other appropriate and authorized measures for such purpose;

 ____________________________________________________________________ (ii) The department and the affected natural resources districts may

 ______________________________________________________________________________ amend an integrated management plan subject to this subsection (4) as

 ______________________________________________________________________________ necessary based on an annual review of the progress being made toward

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 _______________________________________ achieving the goals for that increment;

 ____________________________________________________________________ (iii) During the ten years following adoption of an integrated

 ______________________________________________________________________________ management plan developed under this subsection (4) or during the ten years

 ______________________________________________________________________________ after the adoption of any subsequent increment of the integrated management

 ______________________________________________________________________________ plan pursuant to subdivision (d)(iv) of this subsection, the department and

 ______________________________________________________________________________ the affected natural resources district shall conduct a technical analysis of

 ______________________________________________________________________________ the actions taken in such increment to determine the progress towards meeting

 ______________________________________________________________________________ the goals and objectives adopted pursuant to subsection (2) of this section.

 ______________________________________________________________________________ The analysis shall include an examination of (A) available supplies and

 ______________________________________________________________________________ changes in long-term availability, (B) the effects of conservation practices

 ______________________________________________________________________________ and natural causes, including, but not limited to, drought, and (C) the

 ______________________________________________________________________________ effects of the plan on reducing the overall difference between the current and

 ______________________________________________________________________________ fully appropriated levels of development identified in subdivision (4)(c) of

 ______________________________________________________________________________ this section. The analysis shall determine whether a subsequent increment is

 ______________________________________________________________________________ necessary in the integrated management plan to meet the goals and objectives

 ______________________________________________________________________________ adopted pursuant to subsection (2) of this section and reduce the overall

 ______________________________________________________________________________ difference between the current and fully appropriated levels of development

 _________________________________________________ identified in subdivision (4)(c) of this section;

 ____________________________________________________________________ (iv) Based on the determination made in subdivision (d)(iii) of this

 ______________________________________________________________________________ subsection, the department and the affected natural resources districts,

 ______________________________________________________________________________ utilizing the consultative and collaborative process described in subdivision

 ______________________________________________________________________________ (b) of this subsection, shall if necessary identify goals for a subsequent

 ______________________________________________________________________________ increment of the integrated management plan. Subsequent increments shall be

 ______________________________________________________________________________ completed, adopted, and take effect not more than ten years after adoption of

 ___________________________ the previous increment; and

 ____________________________________________________________________ (v) If necessary, the steps described in subdivisions (d)(ii)

 ______________________________________________________________________________ through (iv) of this subsection shall be repeated until the department and the

 ______________________________________________________________________________ affected natural resources districts agree that the goals and objectives

 ______________________________________________________________________________ identified pursuant to subsection (2) of this section have been met and the

 ______________________________________________________________________________ overall difference between the current and fully appropriated levels of

 ______________________________________________________________________________ development identified in subdivision (4)(c) of this section has been

 ______________________________________________________________________________ addressed so that the river basin, subbasin, or reach has returned to a fully

 appropriated condition. _______________________

 _________________________________________________________ Sec. 56. (1) The surface water controls that may be included in an

 ______________________________________________________________________________ integrated management plan and may be adopted by the Department of Natural

 ______________________________________________________________________________ Resources are: (a) Increased monitoring and enforcement of surface water

 ______________________________________________________________________________ diversion rates and amounts diverted annually; (b) the prohibition or

 ______________________________________________________________________________ limitation of additional surface water appropriations; (c) requirements for

 ______________________________________________________________________________ surface water appropriators to apply or utilize reasonable conservation

 ______________________________________________________________________________ measures consistent with good husbandry and other requirements of section

 ______________________________________________________________________________ 46-231 and consistent with reasonable reliance by other surface water or

 ______________________________________________________________________________ ground water users on return flows or on seepage to the aquifer; and (d) other

 ______________________________________________________________________________ reasonable restrictions on surface water use which are consistent with the

 ________________________________________________________________________ intent of section 55 of this act and the requirements of section 46-231.

 ____________________________________________________________________ (2) If during the development of the integrated management plan the

 ______________________________________________________________________________ department determines that surface water appropriators should be required to

 ______________________________________________________________________________ apply or utilize conservation measures or that other reasonable restrictions

 ______________________________________________________________________________ on surface water use need to be imposed, the department's portion of the

 ______________________________________________________________________________ integrated management plan shall allow the affected surface water

 ______________________________________________________________________________ appropriators and surface water project sponsors a reasonable amount of time,

 ______________________________________________________________________________ not to exceed one hundred eighty days unless extended by the department, to

 ______________________________________________________________________________ identify the conservation measures to be applied or utilized, to develop a

 ______________________________________________________________________________ schedule for such application and utilization, and to comment on any other

 proposed restrictions. ______________________

 _______________________________________________________ Sec. 57. (1) In developing an integrated management plan, the

 ______________________________________________________________________________ Department of Natural Resources and the affected natural resources districts

 ______________________________________________________________________________ shall utilize the best scientific data and other information available and

 ______________________________________________________________________________ shall review and consider any rules and regulations in effect in any existing

 ______________________________________________________________________________ ground water management area that encompasses all or part of the geographic

 ______________________________________________________________________________ area to be encompassed by the plan. Consideration shall be given to the

 ______________________________________________________________________________ applicable scientific data and other information relied upon by the department

 ______________________________________________________________________________ in preparing the annual report required by section 53 of this act and to other

 ______________________________________________________________________________ types of data and information that may be deemed appropriate by the

 ______________________________________________________________________________ department. The department, after seeking input from the affected natural

 ______________________________________________________________________________ resources districts, shall specify by rule and regulation the types of

 ______________________________________________________________________________ scientific data and other information that will be considered in developing an

 ______________________________________________________________________________ integrated management plan. The natural resources districts shall adopt

 ______________________________________________________________________________ similar rules and regulations specifying the types of scientific data and

 ______________________________________________________________________________ other information necessary for purposes of this section. Existing research,

 ______________________________________________________________________________ data, studies, or any other relevant information which has been compiled by or

 ______________________________________________________________________________ is in possession of other state or federal agencies, other natural resources

 ______________________________________________________________________________ districts, and other political subdivisions within the State of Nebraska shall

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 ______________________________________________________________________________ be utilized. State agencies and political subdivisions shall furnish

 ______________________________________________________________________________ information or data upon request of the department or any affected natural

 ______________________________________________________________________________ resources district. Neither the department nor the natural resources

 ______________________________________________________________________________ districts shall be required to conduct new research or to develop new computer

 ______________________________________________________________________________ models to prepare an integrated management plan, but such new research may be

 ______________________________________________________________________________ conducted or new computer models developed within the limits of available

 ______________________________________________________________________________ funding if the additional information is desired by the department or the

 _____________________________________ affected natural resources districts.

 ____________________________________________________________________ (2) During preparation of an integrated management plan for a fully

 ______________________________________________________________________________ appropriated river basin, subbasin, or reach, the department and the affected

 ______________________________________________________________________________ natural resources districts shall consult with any irrigation district,

 ______________________________________________________________________________ reclamation district, public power and irrigation district, mutual irrigation

 ______________________________________________________________________________ company, canal company, or municipality that relies on water from the affected

 ______________________________________________________________________________ river basin, subbasin, or reach and with other water users and stakeholders as

 ______________________________________________________________________________ deemed appropriate by the department or by the affected natural resources

 ______________________________________________________________________________ districts. They shall also actively solicit public comments and opinions

 ________________________________________ through public meetings and other means.

 _________________________________________________________ Sec. 58. (1) If the Department of Natural Resources and the

 ______________________________________________________________________________ affected natural resources districts preparing an integrated management plan

 ______________________________________________________________________________ reach agreement on (a) the proposed goals and objectives of the plan for the

 ______________________________________________________________________________ affected river basin, subbasin, or reach, (b) the proposed geographic area to

 ______________________________________________________________________________ be subject to controls, and (c) the surface water and ground water controls

 ______________________________________________________________________________ and any incentive programs that are proposed for adoption and implementation

 ______________________________________________________________________________ in the river basin, subbasin, or reach, they shall schedule one or more public

 ______________________________________________________________________________ hearings to take testimony on the proposed integrated management plan and the

 ______________________________________________________________________________ proposed controls. Such hearings shall be held within forty-five days after

 ______________________________________________________________________________ reaching agreement and within or in reasonable proximity to the area to be

 ______________________________________________________________________________ affected by implementation of the integrated management plan. Notice of such

 ______________________________________________________________________________ hearings shall be published as provided in section 83 of this act. The costs

 ______________________________________________________________________________ of publishing the notice shall be shared between the department and the

 ______________________________________________________________________________ affected natural resources districts. All interested persons may appear at

 ______________________________________________________________________________ the hearings and present testimony or provide other evidence relevant to the

 ________________________ issues being considered.

 ____________________________________________________________________ (2) Within sixty days after the final hearing under this section,

 ______________________________________________________________________________ the department and the affected natural resources districts shall jointly

 ______________________________________________________________________________ decide whether to implement the plan proposed, with or without modifications,

 ______________________________________________________________________________ and whether to adopt and implement the surface water and ground water controls

 ______________________________________________________________________________ and incentive programs proposed in the plan. If the department and the

 ______________________________________________________________________________ natural resources districts agree to implement the plan and to adopt and

 ______________________________________________________________________________ implement the proposed controls, the natural resources districts shall by

 ______________________________________________________________________________ order designate a ground water management area for integrated management or,

 ______________________________________________________________________________ if the geographic area subject to the integrated management plan is already in

 ______________________________________________________________________________ a ground water management area, the order shall designate an integrated

 ______________________________________________________________________________ management subarea for that area. The order shall include a geographic and

 ______________________________________________________________________________ stratigraphic definition of the ground water management area or integrated

 ______________________________________________________________________________ management subarea and shall adopt the controls in the integrated management

 ______________________________________________________________________________ plan that are authorized for adoption by the natural resources district

 ______________________________________________________________________________ pursuant to section 79 of this act. The department shall by order adopt the

 ______________________________________________________________________________ controls in the integrated management plan that are authorized for adoption by

 ______________________________________________________________________________ the department pursuant to section 56 of this act. Neither the controls

 ______________________________________________________________________________ adopted by the district nor those adopted by the department shall include

 ______________________________________________________________________________ controls substantially different from those set forth in the notice of

 ______________________________________________________________________________ hearing. The area designated as a ground water management area or an

 ______________________________________________________________________________ integrated management subarea by the natural resources district shall not

 ______________________________________________________________________________ include any area that was not identified in the notice of the hearing as

 ______________________________________________________________________________ within the area proposed to be subject to the controls in the plan. The

 ______________________________________________________________________________ department and the natural resources district shall each cause a copy of its

 _______________________________________________________________________ order to be published in the manner provided in section 84 of this act.

 ____________________________________________________________________ (3) If at any time during the development of a basin-wide plan or an

 ______________________________________________________________________________ integrated management plan either the department or the affected natural

 ______________________________________________________________________________ resources districts conclude that the parties will be unable to reach a timely

 ______________________________________________________________________________ agreement on the basin-wide plan or on (a) the goals and objectives of the

 ______________________________________________________________________________ integrated management plan for the affected river basin, subbasin, or reach,

 ______________________________________________________________________________ (b) the geographic area to be subject to controls, or (c) the surface water or

 ______________________________________________________________________________ ground water controls or any incentive programs to be proposed for adoption

 ______________________________________________________________________________ and implementation in the affected river basin, subbasin, or reach, the

 ______________________________________________________________________________ Governor shall be notified and the dispute shall be submitted to the

 ______________________________________________________________________________ Interrelated Water Review Board as provided in subsection (2) of section 59 of

 this act. _________

 _________________________________________________________ Sec. 59. (1)(a) The Interrelated Water Review Board is created for

 ______________________________________________________________________________ the purposes stated in subsections (2) through (5) of this section. The board

 ______________________________________________________________________________ shall consist of five members. The board, when appointed and convened, shall

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 ______________________________________________________________________________ continue in existence only until it has resolved a dispute referred to it

 ______________________________________________________________________________ pursuant to such subsections. The Governor shall appoint and convene the

 ______________________________________________________________________________ board within forty-five days of being notified of the need to resolve a

 ______________________________________________________________________________ dispute. The board shall be chaired by the Governor or his or her designee,

 ______________________________________________________________________________ which designee shall be knowledgeable concerning surface water and ground

 ______________________________________________________________________________ water issues. The Governor shall appoint one additional member of his or her

 ______________________________________________________________________________ choosing and shall appoint the other three members of the board from a list of

 ______________________________________________________________________________ no fewer than six nominees provided by the Nebraska Natural Resources

 ______________________________________________________________________________ Commission within twenty days after request by the Governor for a list of

 nominees. _________

 ____________________________________________________________________ (b) Not more than two members of the board shall reside in the

 ______________________________________________________________________________ geographic area involved in the dispute. A person is not eligible for

 ______________________________________________________________________________ membership on the board if the decisions to be made by the board would or

 ______________________________________________________________________________ could cause financial benefit or detriment to the person, a member of his or

 ______________________________________________________________________________ her immediate family, or a business with which the person is associated,

 ______________________________________________________________________________ unless such benefit or detriment is indistinguishable from the effects of such

 ______________________________________________________________________________ action on the public generally or a broad segment of the public. The board

 __________________________________________ shall be subject to the Open Meetings Act.

 ____________________________________________________________________ (c) For purposes of subsections (2) and (3) of this section, action

 ______________________________________________________________________________ may be taken by a vote of three of the board's five members. For purposes of

 ______________________________________________________________________________ subsections (4) and (5) of this section, action may be taken only by a vote of

 __________________________________________ at least four of the board's five members.

 ____________________________________________________________________ (2)(a) If the Department of Natural Resources and the affected

 ______________________________________________________________________________ natural resources districts cannot resolve disputes over the content of a

 ______________________________________________________________________________ basin-wide plan or an integrated management plan by utilizing the process

 ______________________________________________________________________________ described in sections 55 to 58 of this act, the Governor shall be notified and

 ______________________________________________________________________________ the dispute submitted to the Interrelated Water Review Board. When the board

 ______________________________________________________________________________ has been appointed and convened to resolve disputes over a basin-wide plan,

 ______________________________________________________________________________ the department and each affected district shall present their proposed

 ______________________________________________________________________________ basin-wide plans to the board. When the board has been convened to resolve

 ______________________________________________________________________________ disputes over an integrated management plan, the department and each affected

 ______________________________________________________________________________ natural resources district shall present their (i) proposed goals and

 ______________________________________________________________________________ objectives for the integrated management plan, (ii) proposed geographic area

 ______________________________________________________________________________ to be subject to controls, and (iii) proposed surface water and ground water

 ______________________________________________________________________________ controls and any proposed incentive program for adoption and implementation in

 ______________________________________________________________________________ the river basin, subbasin, or reach involved. The department and each

 ______________________________________________________________________________ affected natural resources district shall also be given adequate opportunity

 _____________________________________________________________________ to comment on the proposals made by the other parties to the dispute.

 ____________________________________________________________________ (b) When the Interrelated Water Review Board concludes that the

 ______________________________________________________________________________ issues in dispute have been fully presented and commented upon by the parties

 ______________________________________________________________________________ to the dispute, which conclusion shall be made not more than forty-five days

 ______________________________________________________________________________ after the board is convened, the board shall select the proposals or portions

 ______________________________________________________________________________ of proposals that the board will consider for adoption and shall schedule one

 ______________________________________________________________________________ or more public hearings to take testimony on the selected proposals. The

 ______________________________________________________________________________ hearings shall be held within forty-five days after the board's selection of

 ______________________________________________________________________________ proposals to consider for adoption and shall be within or in reasonable

 ______________________________________________________________________________ proximity to the area that would be affected by implementation of any of the

 ______________________________________________________________________________ proposals to be considered at the hearings. Notice of the hearings shall be

 ______________________________________________________________________________ published as provided in section 83 of this act. The cost of publishing the

 ______________________________________________________________________________ notice shall be shared by the department and the affected natural resources

 ______________________________________________________________________________ districts. All interested persons may appear at the hearings and present

 ____________________________________________________________________________ testimony or provide other evidence relevant to the issues being considered.

 ____________________________________________________________________ (c) Within forty-five days after the final hearing pursuant to

 ______________________________________________________________________________ subdivision (b) of this subsection, the Interrelated Water Review Board shall

 ______________________________________________________________________________ by order, as applicable, adopt a basin-wide plan or an integrated management

 ______________________________________________________________________________ plan for the affected river basin, subbasin, or reach and, in the case of an

 ______________________________________________________________________________ integrated management plan, shall designate a ground water management plan for

 ______________________________________________________________________________ integrated management or an integrated management subarea for such river

 ______________________________________________________________________________ basin, subbasin, or reach. An integrated management plan shall be consistent

 ______________________________________________________________________________ with subsection (2) of section 55 of this act, and the surface water and

 ______________________________________________________________________________ ground water controls and any applicable incentive programs adopted as part of

 ______________________________________________________________________________ that plan shall be consistent with subsection (3) of section 55 of this act.

 ______________________________________________________________________________ The controls adopted by the board shall not be substantially different from

 ______________________________________________________________________________ those described in the notice of hearing. The area designated as a ground

 ______________________________________________________________________________ water management area or an integrated management subarea shall not include

 ______________________________________________________________________________ any area that was not identified in the notice of the hearing as within the

 ________________________________________________________ area proposed to be subject to the controls in the plan.

 ____________________________________________________________________ (d) The order adopted under this subsection shall be published in

 ________________________________________________ the manner prescribed in section 84 of this act.

 ____________________________________________________________________ (e) Surface water controls adopted by the Interrelated Water Review

 ______________________________________________________________________________ Board shall be implemented and enforced by the department. Ground water

 ______________________________________________________________________________ controls adopted by the Interrelated Water Review Board shall be implemented

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 _________________________________________________________ and enforced by the affected natural resources districts.

 ____________________________________________________________________ (3) Whether an integrated management plan is adopted pursuant to

 ______________________________________________________________________________ section 58 of this act or by the Interrelated Water Review Board pursuant to

 ______________________________________________________________________________ subsection (2) of this section, the department or a natural resources district

 ______________________________________________________________________________ responsible in part for implementation and enforcement of an integrated

 ______________________________________________________________________________ management plan may propose modification of the goals or objectives of that

 ______________________________________________________________________________ plan, of the area subject to the plan, or of the surface water controls,

 ______________________________________________________________________________ ground water controls, or incentive programs adopted to implement the plan.

 ______________________________________________________________________________ The department and the affected natural resources districts shall utilize the

 ______________________________________________________________________________ procedures in sections 55 to 58 of this act in an attempt to reach agreement

 ______________________________________________________________________________ on and to adopt and implement proposed modifications. If agreement on such

 ______________________________________________________________________________ modifications cannot be achieved utilizing those procedures, either the

 ______________________________________________________________________________ department or an affected natural resources district may notify the Governor

 ______________________________________________________________________________ of the dispute. The Interrelated Water Review Board shall be appointed and

 ______________________________________________________________________________ convened in accordance with subsection (1) of this section to resolve the

 ______________________________________________________________________________ dispute and, if applicable, to adopt any modifications utilizing the

 _____________________________________________ procedures in subsection (2) of this section.

 ____________________________________________________________________ (4) The department and the affected natural resources districts may

 ______________________________________________________________________________ also raise objections concerning the implementation or enforcement of

 ______________________________________________________________________________ previously adopted surface water or ground water controls. The department and

 ______________________________________________________________________________ the affected natural resources districts shall utilize the procedures in

 ______________________________________________________________________________ sections 55 to 58 of this act in an attempt to reach agreement on such

 ______________________________________________________________________________ implementation or enforcement issues. If agreement on such issues cannot be

 ______________________________________________________________________________ achieved utilizing such procedures, either the department or an affected

 ______________________________________________________________________________ natural resources district may notify the Governor of the dispute. The

 ______________________________________________________________________________ Interrelated Water Review Board shall be appointed and convened in accordance

 ______________________________________________________________________________ with subsection (1) of this section. After permitting each party to fully

 ______________________________________________________________________________ express its reasons for its position on the disputed issues, the board may

 ______________________________________________________________________________ either take no action or conclude (a) that one or more parties needs to modify

 ______________________________________________________________________________ its approach to implementation or enforcement and direct that such

 ______________________________________________________________________________ modifications take place or (b) that one or more parties either has not made a

 ______________________________________________________________________________ good faith effort to implement or enforce the portion of the plan or controls

 ______________________________________________________________________________ for which it is responsible or is unable to fully implement and enforce such

 ______________________________________________________________________________ portion and that such party's jurisdiction with respect to implementation and

 ______________________________________________________________________________ enforcement of the plan and controls shall be terminated and reassigned to one

 ______________________________________________________________________________ or more of the other parties responsible for implementation and enforcement.

 ______________________________________________________________________________ A decision by the Interrelated Water Review Board to terminate and reassign

 ______________________________________________________________________________ jurisdiction of any portion of the plan or controls shall take effect

 ______________________________________________________________________________ immediately upon that decision. Notice of such reassignment shall be

 ______________________________________________________________________________ published at least once in one or more newspapers as necessary to provide

 ______________________________________________________________ general circulation in the area affected by such reassignment.

 ____________________________________________________________________ (5) The board may be reconvened in accordance with subsection (1) of

 ______________________________________________________________________________ this section at a later date upon request to the Governor by the party for

 ______________________________________________________________________________ which jurisdiction for implementation and enforcement was terminated if such

 ______________________________________________________________________________ party desires to have its jurisdiction reinstated, but no such request shall

 ______________________________________________________________________________ be honored until at least one year after the termination and not more than

 ______________________________________________________________________________ once per year thereafter. The board may reinstate jurisdiction to that party

 ______________________________________________________________________________ only upon a clear showing by such party that it is willing and able to fully

 ______________________________________________________________________________ implement and enforce the plan and any applicable controls. Notice that a

 ______________________________________________________________________________ party's jurisdiction has been reinstated shall be provided in the same manner

 _________________________________________________ that notice of the earlier termination was given.

 __________________________________________________________ Sec. 60. (1) The Legislature finds that, prior to the operative

 ______________________________________________________________________________ date of this section, actions were taken by the Department of Natural

 ______________________________________________________________________________ Resources and by one or more natural resources districts pursuant to section

 ______________________________________________________________________________ 46-656.28, as such section existed immediately prior to such date, for the

 ______________________________________________________________________________ purpose of addressing circumstances that are, after such date, to be addressed

 ______________________________________________________________________________ in accordance with sections 53 to 59 of this act. It is the intent of the

 ______________________________________________________________________________ Legislature that actions taken pursuant to section 46-656.28, as such section

 ______________________________________________________________________________ existed immediately prior to the operative date of this section, should not be

 ______________________________________________________________________________ negated and that transition from the authorities and responsibilities granted

 ______________________________________________________________________________ by such section to those granted by sections 53 to 59 of this act should occur

 ______________________________________________________________________________ in as efficient a manner as possible. Such transition shall be therefor

 ______________________________________________________________________________ governed by subsections (2) through (5) of this section, and all references in

 ______________________________________________________________________________ such subsections to section 46-656.28 shall be construed to mean section

 ______________________________________________________________________________ 46-656.28 as such section existed immediately prior to the operative date of

 this section. _____________

 ____________________________________________________________________ (2) If, prior to the operative date of this section, (a) a natural

 ______________________________________________________________________________ resources district requested pursuant to subsection (1) of section 46-656.28

 ______________________________________________________________________________ that affected appropriators, affected surface water project sponsors, and the

 ______________________________________________________________________________ department consult and that studies and a hearing be held but (b) the Director

 ______________________________________________________________________________ of Natural Resources has not made a preliminary determination relative to that

 ______________________________________________________________________________ request pursuant to subsection (2) of section 46-656.28, no further action on

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 ______________________________________________________________________________ the district's request shall be required of the department. If under the same

 ______________________________________________________________________________ circumstances a temporary suspension in the drilling of certain water wells

 ______________________________________________________________________________ has been imposed by the district pursuant to subsection (16) of section

 ______________________________________________________________________________ 46-656.28 and remains in effect immediately prior to the operative date of

 ______________________________________________________________________________ this section, such temporary suspension shall remain in effect for thirty days

 ______________________________________________________________________________ after the department issues its first annual report under section 53 of this

 ______________________________________________________________________________ act, except that (i) such temporary suspension shall not apply to water wells

 ______________________________________________________________________________ for which a permit has been obtained pursuant to the Municipal and Rural

 ______________________________________________________________________________ Domestic Ground Water Transfers Permit Act and (ii) to the extent any such

 ______________________________________________________________________________ temporary suspension is in effect for all or part of a hydrologically

 ______________________________________________________________________________ connected area for a river basin, subbasin, or reach designated as

 ______________________________________________________________________________ overappropriated by the department, such temporary suspension shall remain in

 ______________________________________________________________________________ effect only until it is superseded by the stays imposed pursuant to

 ______________________________________________________________________________ subsections (9) and (10) of section 54 of this act. To the extent that any

 ______________________________________________________________________________ such temporary suspension applies to a geographic area preliminarily

 ______________________________________________________________________________ considered by the department to have ground water hydrologically connected to

 ______________________________________________________________________________ the surface water of a fully appropriated river basin, subbasin, or reach,

 ______________________________________________________________________________ such temporary suspension shall be superseded by the stays imposed pursuant to

 __________________________________________________ subsections (1) and (2) of section 54 of this act.

 ____________________________________________________________________ (3)(a) If prior to the operative date of this section (i) the

 ______________________________________________________________________________ director has made a preliminary determination pursuant to subsection (2) of

 ______________________________________________________________________________ section 46-656.28 that there is reason to believe that the use of

 ______________________________________________________________________________ hydrologically connected ground water and surface water in a specific

 ______________________________________________________________________________ geographic area is contributing to or is in the reasonably foreseeable future

 ______________________________________________________________________________ likely to contribute to any conflict, dispute, or difficulty listed in such

 ______________________________________________________________________________ subsection, (ii) the director has not made a determination pursuant to

 ______________________________________________________________________________ subsection (4) of section 46-656.28 that a joint action plan should not be

 ______________________________________________________________________________ prepared, and (iii) preparation of a joint action plan pursuant to subsections

 ______________________________________________________________________________ (5) through (9) of such section has not been completed, the geographic area

 ______________________________________________________________________________ involved shall become subject to sections 53 to 59 of this act on the

 ______________________________________________________________________________ operative date of this section and the department need not evaluate such

 ______________________________________________________________________________ geographic area in its first annual report issued pursuant to section 53 of

 this act. _________

 ____________________________________________________________________ (b) For purposes of this subsection and section 54 of this act and

 ______________________________________________________________________________ except as otherwise provided in this section, (i) the operative date of this

 ______________________________________________________________________________ section shall result in the imposition in any geographic area subject to this

 ______________________________________________________________________________ subsection of the stays required by subsections (1) and (2) of section 54 of

 ______________________________________________________________________________ this act, (ii) such stays shall be imposed in the manner required by such

 ______________________________________________________________________________ section, and (iii) the operative date of this section shall be treated as if

 ______________________________________________________________________________ it were the date of a departmental preliminary determination pursuant to

 ______________________________________________________________________________ section 53 of this act that such area is a geographic area within which ground

 ______________________________________________________________________________ water and surface water of a fully appropriated river basin, subbasin, or

 ______________________________________________________________________________ reach are hydrologically connected. Notwithstanding the other provisions of

 ______________________________________________________________________________ this subsection, if a temporary suspension in the drilling of certain new

 ______________________________________________________________________________ water wells has previously been imposed by the affected natural resources

 ______________________________________________________________________________ district, (A) the stays on construction of new water wells and on the increase

 ______________________________________________________________________________ in ground water irrigated acres shall be limited in geographic extent to only

 ______________________________________________________________________________ that part of the affected area within which the temporary suspension was in

 ______________________________________________________________________________ effect unless the director determines that inclusion of additional area is

 ______________________________________________________________________________ necessary because ground water and surface water are hydrologically connected

 ______________________________________________________________________________ in such additional area and (B) the stays on construction of certain new water

 ______________________________________________________________________________ wells shall not apply to a water well constructed in accordance with the terms

 ______________________________________________________________________________ of a water well construction permit approved by the district prior to the

 ______________________________________________________________________________ operative date of this section unless such well was subject to the district's

 ______________________________________________________________________________ temporary suspension. If, prior to the operative date of this section, the

 ______________________________________________________________________________ director has held a hearing on a report issued pursuant to subsection (3) of

 ______________________________________________________________________________ section 46-656.28 but has not yet determined whether a joint action plan

 ______________________________________________________________________________ should be prepared, no departmental hearing shall be required pursuant to

 ______________________________________________________________________________ subsection (4) of section 54 of this act before a final determination is made

 ______________________________________________________________________________ about whether the river basin, subbasin, or reach involved is fully

 ______________________________________________________________________________ appropriated. If, prior to the operative date of this section, the director

 ______________________________________________________________________________ has determined pursuant to subsection (4) of section 46-656.28 that a joint

 ______________________________________________________________________________ action plan should be prepared, such determination shall have the same effect

 ______________________________________________________________________________ as a final departmental determination pursuant to subsection (5) of section 54

 ______________________________________________________________________________ of this act that the affected river basin, subbasin, or reach is fully

 ______________________________________________________________________________ appropriated and no separate determination to that effect shall be required.

 ______________________________________________________________________________ If, after the operative date of this section, the department determines that

 ______________________________________________________________________________ all or part of the area subject to this subsection is in an overappropriated

 ______________________________________________________________________________ river basin, subbasin, or reach, that portion of the area shall thereafter be

 ______________________________________________________________________________ subject to the provisions of the Nebraska Ground Water Management and

 ______________________________________________________________________________ Protection Act applicable to an overappropriated river basin, subbasin, or

 ______________________________________________________________________________ reach and stays that have previously taken effect in accordance with this

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 ______________________________________________________________________________ subsection shall continue in effect as stays for an overappropriated river

 ______________________________________________________________________________ basin, subbasin, or reach without additional action or publication of notice

 ______________________________________________________________________________ by the department. Any temporary suspension in the drilling of certain water

 ______________________________________________________________________________ wells that has been imposed in the geographic area involved by a natural

 ______________________________________________________________________________ resources district pursuant to subsection (16) of section 46-656.28 prior to

 ______________________________________________________________________________ the operative date of this section shall remain in effect until superseded by

 ______________________________________________________________________________ the stays imposed pursuant to subsections (1) and (2) of section 54 of this

 act.____

 ____________________________________________________________________ (4) If, prior to the operative date of this section, preparation of

 ______________________________________________________________________________ a joint action plan has been completed pursuant to subsections (5) through (9)

 ______________________________________________________________________________ of section 46-656.28 but the plan has not yet been adopted pursuant to

 ______________________________________________________________________________ subsection (11) of such section, the department need not evaluate the affected

 ______________________________________________________________________________ geographic area in its first annual report issued pursuant to section 53 of

 ______________________________________________________________________________ this act. The department and the affected natural resources district shall

 ______________________________________________________________________________ review the completed joint action plan for its compliance with sections 55 to

 ______________________________________________________________________________ 57 of this act. If the joint action plan is determined to be in compliance

 ______________________________________________________________________________ with sections 55 to 57 of this act or if agreement is reached on the revisions

 ______________________________________________________________________________ necessary to bring it into such compliance, the department and the district

 ______________________________________________________________________________ shall adopt the plan and implement the controls as provided in section 58 of

 ______________________________________________________________________________ this act. If the joint action plan is determined not to be in compliance with

 ______________________________________________________________________________ sections 55 to 57 of this act and agreement on the proposed plan or the

 ______________________________________________________________________________ proposed controls cannot be reached pursuant to section 58 of this act,

 ______________________________________________________________________________ section 59 of this act shall apply. Except to the extent that any portion of

 ______________________________________________________________________________ the affected area is designated as all or part of an overappropriated river

 ______________________________________________________________________________ basin, subbasin, or reach, any temporary suspension in the drilling of certain

 ______________________________________________________________________________ water wells imposed in the affected geographic area by a natural resources

 ______________________________________________________________________________ district pursuant to subsection (16) of section 46-656.28 shall remain in

 ______________________________________________________________________________ effect until (a) the department and the affected district have jointly decided

 ______________________________________________________________________________ to implement the plan, with or without modifications, and controls have been

 ______________________________________________________________________________ adopted and taken effect or (b) the Interrelated Water Review Board, pursuant

 ______________________________________________________________________________ to section 59 of this act, has adopted an integrated management plan for the

 ______________________________________________________________________________ affected river basin, subbasin, or reach and the controls adopted by the board

 ______________________________________________________________________________ have taken effect. To the extent that any portion of the affected area is

 ______________________________________________________________________________ designated as all or part of an overappropriated river basin, subbasin, or

 ______________________________________________________________________________ reach, any temporary suspension in the drilling of water wells shall be

 ______________________________________________________________________________ superseded by the stays imposed pursuant to subsections (9) and (10) of

 _______________________ section 54 of this act.

 ____________________________________________________________________ (5) If, before the operative date of this section, a joint action

 ______________________________________________________________________________ plan has been adopted and implemented pursuant to subsections (10) through

 ______________________________________________________________________________ (12) of section 46-656.28 and is in effect immediately prior to such date, the

 ______________________________________________________________________________ department need not evaluate the geographic area subject to the plan in the

 ______________________________________________________________________________ department's first annual report issued pursuant to section 53 of this act.

 ______________________________________________________________________________ For purposes of the Nebraska Ground Water Management and Protection Act, (a)

 ______________________________________________________________________________ the plan adopted shall be considered an integrated management plan adopted

 ______________________________________________________________________________ pursuant to section 58 of this act, (b) the management area designated shall

 ______________________________________________________________________________ be considered an integrated management area or subarea designated pursuant to

 ______________________________________________________________________________ section 58 of this act, and (c) the controls adopted shall be considered

 ______________________________________________________________________________ controls adopted pursuant to section 58 of this act and shall remain in effect

 ___________________________________________________________________ until amended or repealed pursuant to section 58 or 59 of this act.

Sec. 61. Section 46-656.35, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— 46-656.35. Each state agency and political subdivision shall

promptly report to the Department of Environmental Quality any information

which indicates that contamination is occurring.

Sec. 62. Section 46-656.36, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— 46-656.36. If, as a result of information provided pursuant to

 ————————— _________________ section 46-656.35 61 of this act or studies conducted by or otherwise

available to the Department of Environmental Quality and following preliminary

investigation, the Director of Environmental Quality makes a preliminary

determination (1) that there is reason to believe that contamination of ground

water is occurring or likely to occur in an area of the state in the

reasonably foreseeable future and (2) that the natural resources district or

districts in which the area is located have not designated a management area

or have not implemented adequate controls to prevent such contamination from

occurring, the department shall, in cooperation with any appropriate state

agency and district, conduct a study to determine the source or sources of the

contamination and the area affected by such contamination and shall issue a

written report within one year of the initiation of the study. During the

study, the department shall consider the relevant water quality portions of

the management plan developed by each district pursuant to sections 46-656.12 —————————

to 46-656.16 49 to 51 of this act, whether the district has designated a —— ————————— ________________________

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management area encompassing the area studied, and whether the district has

adopted any controls for the area.

Sec. 63. Section 46-656.37, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— 46-656.37. If the Director of Environmental Quality determines from

 ————————— ______________ the study conducted pursuant to section 46-656.36 62 of this act that one or

more sources of contamination are point sources, he or she shall expeditiously

use the procedures authorized in the Environmental Protection Act to stabilize

or reduce the level and prevent the increase or spread of such contamination.

Sec. 64. Section 46-656.38, Revised Statutes Supplement, 2002, is

amended to read:

 —————————— 46-656.38. If the Director of Environmental Quality determines from

 ————————— ______________ the study conducted pursuant to section 46-656.36 62 of this act that one or

more sources of contamination are not point sources and if a management area,

a purpose of which is protection of water quality, has been established which

includes the affected area, the Director of Environmental Quality shall

consider whether to require the district which established the management area

to adopt an action plan as provided in sections 46-656.39 to 46-656.43 65 to ————————— —— ————————— ______

 ______________ 69 of this act.

If the Director of Environmental Quality determines that one or more

of the sources are not point sources and if such a management area has not

been established or does not include all the affected area, he or she shall,

within thirty days after completion of the report required by section

 ————————— ______________ 46-656.36 62 of this act, consult with the district within whose boundaries

the area affected by such contamination is located and fix a time and place

for a public hearing to consider the report, hear any other evidence, and

secure testimony on whether a management area should be designated or whether

an existing area should be modified. The hearing shall be held within one

hundred twenty days after completion of the report. Notice of the hearing ________________________

 ______________________________________________________________________________ shall be given as provided in section 83 of this act, and the hearing shall be

conducted in accordance with such section. , shall be open to the public, and __________________________________________ — ————— —— ———— —— ——— ——————— ———

shall be located within or in reasonable proximity to the area considered in ————— —— ——————— —————— —— —— —————————— ————————— —— ——— ———— —————————— ——

the report. Notice of the hearing shall be published in a newspaper published ——— ——————— —————— —— ——— ——————— ————— —— ————————— —— — ————————— —————————

or of general circulation in the area involved at least once each week for —— —— ——————— ——————————— —— ——— ———— ———————— —— ————— ———— ———— ———— ———

three consecutive weeks, the last publication to be not less than seven days ————— ——————————— —————— ——— ———— ——————————— —— —— ——— ———— ———— ————— ————

prior to the hearing. The notice shall provide a general description of all ————— —— ——— ———————— ——— —————— ————— ——————— — ——————— ——————————— —— ———

areas which will be considered for inclusion in the management area. ————— ————— ———— —— —————————— ——— ————————— —— ——— —————————— —————

At the hearing, all interested persons shall be allowed to appear

and present testimony. The Conservation and Survey Division of the University

of Nebraska, the Department of Health and Human Services Regulation and

Licensure, the Department of Natural Resources, and the appropriate district

may offer as evidence any information in their possession which they deem

relevant to the purpose of the hearing. After the hearing and after any

studies or investigations conducted by or on behalf of the Director of

Environmental Quality as he or she deems necessary, the director shall

determine whether a management area shall be designated.

Sec. 65. Section 46-656.39, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— 46-656.39. (1) When determining whether to designate or modify the

boundaries of a management area or to require a district which has established

a management area, a purpose of which is protection of water quality, to adopt

an action plan for the affected area, the Director of Environmental Quality

 shall consider:

(a) Whether contamination of ground water has occurred or is likely

to occur in the reasonably foreseeable future;

(b) Whether ground water users, including, but not limited to,

domestic, municipal, industrial, and agricultural users, are experiencing or

will experience within the foreseeable future substantial economic hardships

as a direct result of current or reasonably anticipated activities which cause

or contribute to contamination of ground water;

(c) Whether methods are available to stabilize or reduce the level

 of contamination;

(d) Whether, if a management area has been established which

includes the affected area, the controls adopted by the district pursuant to

 ————————— ______________ section 46-656.25 79 of this act as administered and enforced by the district

are sufficient to address the ground water quality issues in the management

 area; and

(e) Administrative factors directly affecting the ability to

implement and carry out regulatory activities.

(2) If the Director of Environmental Quality determines that no such

area should be established, he or she shall issue an order declaring that no

management area shall be designated.

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(3) If the Director of Environmental Quality determines that a

management area shall be established, that the boundaries of an existing

management area shall be modified, or that the district shall be required to

adopt an action plan, he or she shall consult with relevant state agencies and

with the district or districts affected and determine the boundaries of the

area, taking into account the effect on political subdivisions and the

socioeconomic and administrative factors directly affecting the ability to

implement and carry out local ground water management, control, and

protection. The report by the Director of Environmental Quality shall include

the specific reasons for the creation of the management area or the

requirement of such an action plan and a full disclosure of the possible

 causes.

(4) When the boundaries of an area have been determined or modified,

the Director of Environmental Quality shall issue an order designating the

area as a management area, specifying the modified boundaries of the

management area, or requiring such an action plan. Such an order shall

include a geographic and stratigraphic definition of the area. Such order ___________

 ____________________________________________________________________ shall be published in the manner provided in section 84 of this act.

Sec. 66. Section 46-656.40, Revised Statutes Supplement, 2002, is

amended to read:

 —————————— 46-656.40. (1) Within one hundred eighty days after the designation

of a management area or the requiring of an action plan for a management area,

a purpose of which is protection of water quality, the district or districts

within whose boundaries the area is located shall prepare an action plan

designed to stabilize or reduce the level and prevent the increase or spread

of ground water contamination. Whenever a management area or the affected

area of such a management area encompasses portions of two or more districts,

the responsibilities and authorities delegated in this section shall be

exercised jointly and uniformly by agreement of the respective boards of all

districts so affected.

(2) Within thirty days after an action plan has been prepared, a

public hearing on such plan shall be held by the district. Notice of the ____________________

 ______________________________________________________________________________ hearing shall be given as provided in section 83 of this act, and the hearing

 ___________________________________________________ —— —————————— ————————— shall be conducted in accordance with such section. in reasonable proximity

to the area to be affected. Notice of the hearing shall be published in a —— ——— ———— —— —— ————————— —————— —— ——— ——————— ————— —— ————————— —— —

newspaper published or of general circulation in the area involved at least ————————— ————————— —— —— ——————— ——————————— —— ——— ———— ———————— —— —————

once each week for three consecutive weeks, the last publication to be not ———— ———— ———— ——— ————— ——————————— —————— ——— ———— ——————————— —— —— ———

less than seven days prior to the hearing. The notice shall provide a general ———— ———— ————— ———— ————— —— ——— ———————— ——— —————— ————— ——————— — ———————

description of all areas to be affected by the proposed action plan and shall ——————————— —— ——— ————— —— —— ———————— —— ——— ———————— —————— ———— ——— —————

provide the text of all controls proposed for adoption by the district. ——————— ——— ———— —— ——— ———————— ———————— ——— ———————— —— ——— —————————

(3) Within thirty days after the hearing, the district shall adopt

and submit an action plan to the Department of Environmental Quality. Notice ______

 ______________________________________________________________________________ of the district's order adopting an action plan shall be published as required

 __________________________ by section 84 of this act.

Sec. 67. Section 46-656.41, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— 46-656.41. An action plan filed by a district pursuant to section

 ————————— ______________ 46-656.40 66 of this act shall include the specifics of an educational program

to be instituted by the district to inform persons of methods available to

stabilize or reduce the level or prevent the increase or spread of ground

water contamination. The action plan shall include one or more of the

 ————————— ______________ controls authorized by section 46-656.25 79 of this act.

Sec. 68. Section 46-656.42, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— 46-656.42. (1) In adopting or amending an action plan authorized by

subsection (2) of this section, the district's considerations shall include,

but not be limited to, whether it reasonably appears that such action will

mitigate or eliminate the condition which led to designation of the management

area or the requirement of an action plan for a management area or will

improve the administration of the area.

(2) The Director of Environmental Quality shall approve or deny the

adoption or amendment of an action plan within one hundred twenty days after

the date the plan is submitted by the district. He or she may hold a public

hearing to consider testimony regarding the action plan prior to the issuance

of an order approving or disapproving the adoption or amendment. In approving

the adoption or amendment of the plan in such an area, considerations shall

include, but not be limited to, those enumerated in subsection (1) of this

 section.

(3) If the director denies approval of an action plan by the

district, the order shall list the reason the action plan was not approved. A

district may submit a revised action plan within sixty days after denial of

its original action plan to the director for approval subject to section

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 ————————— ______________ 46-656.45 71 of this act.

Sec. 69. Section 46-656.43, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— 46-656.43. Following approval of the action plan by the Director of

Environmental Quality, the district shall cause a copy of each control the ———— ——————— ___

 _____ ————————— ______________ order adopted pursuant to section 46-656.42 68 of this act to be published

once each week for three consecutive weeks in a newspaper published or of ———— ———— ———— ——— ————— ——————————— ————— —— — ————————— ————————— —— ——

general circulation in the area involved, the last publication of which shall ——————— ——————————— —— ——— ———— ————————— ——— ———— ——————————— —— ————— —————

be not less than seven days prior to the date when such control becomes —— ——— ———— ———— ————— ———— ————— —— ——— ———— ———— ———— ——————— ———————

 ————————— ________________________________________________ effective in the manner provided in section 84 of this act.

Sec. 70. Section 46-656.44, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— 46-656.44. Each district in which a management area has been

designated or an action plan for a management area has been required pursuant

 ————————— ______________ to section 46-656.39 65 of this act shall, in cooperation with the Department

of Environmental Quality, establish a program to monitor the quality of the

ground water in the area and shall if appropriate provide each landowner or

operator of an irrigation system with current information available with

respect to fertilizer and chemical usage for the specific soil types present

and cropping patterns used.

Sec. 71. Section 46-656.45, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— 46-656.45. (1) The power to specify controls authorized by section

 ————————— _______________ 46-656.25 79 of this act shall vest in the Director of Environmental Quality

if (a) at the end of one hundred eighty days following the designation of a

management area or the requiring of an action plan for a management area

 ————————— ______________ pursuant to section 46-656.39 65 of this act, a district encompassed in whole

or in part by the management area has not completed and adopted an action

plan, (b) a district does not submit a revised action plan within sixty days

after denial of its original action plan, or (c) the district submits a

revised action plan which is not approved by the director.

(2) If the power to specify controls in such a management area is

vested in the Director of Environmental Quality, he or she shall within ninety

days adopt and promulgate by rule and regulation such measures as he or she

deems necessary for carrying out the intent of the Nebraska Ground Water

Management and Protection Act. He or she shall conduct one or more public

hearings prior to the adoption of controls. Notice of any such additional

hearings shall be given in the manner provided in section 46-656.40 83 of this ————————— __________

 ___ act. The enforcement of controls adopted pursuant to this section shall be

the responsibility of the Department of Environmental Quality.

Sec. 72. Section 46-656.46, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— 46-656.46. The controls in the action plan approved by the Director

of Environmental Quality pursuant to section 46-656.42 68 of this act shall be ————————— ______________

exercised by the district for the period of time necessary to stabilize or

reduce the level of contamination and prevent the increase or spread of ground

water contamination. An action plan may be amended by the same method

utilized in the adoption of the action plan.

Sec. 73. Section 46-656.47, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— 46-656.47. A district may petition the Director of Environmental

Quality to remove the director's designation of the area as a management area

or the requirement of an action plan for a management area or to modify the

boundaries of a management area designated pursuant to section 46-656.39 65 of ————————— _____

 _________ this act. If the director determines that the level of contamination in a

management area has stabilized at or been reduced to a level which is not

detrimental to beneficial uses of ground water, he or she may remove the

designation or action plan requirement or modify the boundaries of the

 management area.

Sec. 74. Section 46-656.48, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— 46-656.48. The Environmental Quality Council shall adopt and

promulgate, in accordance with the Administrative Procedure Act, such rules

and regulations as are necessary to the discharge of duties under sections

46-656.35 to 46-656.47 61 to 73 of this act. ————————— —— ————————— ____________________

Sec. 75. Section 46-656.29, Revised Statutes Supplement, 2003, is

amended to read:

 —————————— 46-656.29. (1) Any person who intends to construct a water well in

a management area in this state on land which he or she owns or controls

shall, before commencing construction, apply with the district in which the

water well will be located for a permit on forms provided by the district,

except that (a) no permit shall be required for test holes or dewatering wells

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with an intended use of ninety days or less, (b) no permit shall be required

for a single water well designed and constructed to pump fifty gallons per

minute or less, and (c) a district may provide by rule and regulation that a

permit need not be obtained for water wells defined by the district to be

replacement water wells. A district may require a permit for a water well

designed and constructed to pump fifty gallons per minute or less if such

water well is commingled, combined, clustered, or joined with any other water

well or wells or other water source, other than a water source used to water

range livestock. Such wells shall be considered one water well and the

combined capacity shall be used as the rated capacity. A district may by rule

and regulation require that a permit be obtained for each water well or for

one or more categories of water wells designed and constructed to pump fifty

gallons per minute or less, other than a water source required for human needs

as it relates to health, fire control, and sanitation or used to water range

livestock, in ground water management areas in which regulations have been

imposed to control declining ground water levels. Forms shall be made

available at each district in which a management area is located, in whole or

in part, and at such other places as may be deemed appropriate. The district

shall review such application and issue or deny the permit within thirty days

after the application is filed.

(2) A person shall apply for a permit under this section before he

or she modifies a water well for which a permit was not required under

subsection (1) of this section into one for which a permit would otherwise be

required under such subsection.

(3) The application shall be accompanied by a fifty-dollar filing

fee payable to the district and shall contain (a) the name and post office

address of the applicant or applicants, (b) the nature of the proposed use,

(c) the intended location of the proposed water well or other means of

obtaining ground water, (d) the intended size, type, and description of the

proposed water well and the estimated depth, if known, (e) the estimated

capacity in gallons per minute, (f) the acreage and location by legal

description of the land involved if the water is to be used for irrigation,

(g) a description of the proposed use if other than for irrigation purposes,

(h) the registration number of the water well being replaced if applicable,

and (i) such other information as the district requires.

(4) Any person who has failed or in the future fails to obtain a

permit required by subsection (1) or (2) of this section shall make

application for a late permit on forms provided by the district.

(5) The application for a late permit shall be accompanied by a

two-hundred-fifty-dollar fee payable to the district and shall contain the

same information required in subsection (3) of this section.

Sec. 76. Section 46-656.30, Revised Statutes Supplement, 2003, is

amended to read:

 —————————— 46-656.30. An application for a permit or late permit for a water

well in a management area shall be denied only if the district in which the

water well is to be located finds (1) that the location or operation of the

proposed water well or other work would conflict with any regulations or

controls adopted by the district, (2) that the proposed use would not be a

beneficial use of water, or (3) in the case of a late permit only, that the

applicant did not act in good faith in failing to obtain a timely permit.

If the district finds that the application is incomplete or

defective, it shall return the application for correction. If the correction

is not made within sixty days, the application shall be canceled. All permits

shall be issued with or without conditions attached or denied not later than

thirty days after receipt by the district of a complete and properly prepared

 application.

A permit issued shall specify all regulations and controls adopted

by a district relevant to the construction or utilization of the proposed

water well. No refund of any application fees shall be made regardless of

whether the permit is issued, canceled, or denied. The district shall

transmit one copy of each permit issued to the Director of Natural Resources.

Sec. 77. Section 46-656.31, Revised Statutes Supplement, 2002, is

amended to read:

 —————————— 46-656.31. The issuance by the district of a permit pursuant to

 ————————— _________________ section 46-656.30 76 of this act or registration of a water well by the

Director of Natural Resources pursuant to section 46-602 shall not vest in any

person the right to violate any district rule, regulation, or control in

effect on the date of issuance of the permit or the registration of the water

well or to violate any rule, regulation, or control properly adopted after

 such date.

Sec. 78. Section 46-656.32, Reissue Revised Statutes of Nebraska,

is amended to read:

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 —————————— 46-656.32. When any permit is approved pursuant to section

 ————————— ______________ 46-656.30 76 of this act, the applicant shall commence construction as soon as

possible after the date of approval and shall complete the construction and

equip the water well prior to the date specified in the conditions of

approval, which date shall be not more than one year after the date of

approval, unless it is clearly demonstrated in the application that one year

is an insufficient period of time for such construction. If the applicant

fails to complete the project under the terms of the permit, the district may

withdraw the permit.

Sec. 79. Section 46-656.25, Revised Statutes Supplement, 2002, is

amended to read:

 —————————— 46-656.25. (1) A district in which a management area has been

designated shall by order adopt one or more of the following controls for the

 management area:

(a) It may determine the permissible total withdrawal of ground ————————— ——— ——————————— ————— —————————— —— ——————

water for each day, month, or year and allocate such withdrawal among the ————— ——— ———— ———— —————— —— ———— ——— ———————— ———— —————————— ————— ———

ground water users allocate the amount of ground water that may be withdrawn —————— ————— ————— ___________________________________________________________

 _____________________ by ground water users;

(b) It may adopt a system of rotation for use of ground water;

(c) It may adopt well-spacing requirements more restrictive than

those found in sections 46-609 and 46-651;

(d) It may require the installation of devices for measuring ground

water withdrawals from water wells;

(e) It may adopt a system which requires reduction of irrigated

 ————————— ______________ acres pursuant to subsection (2) of section 46-656.26 80 of this act;

(f) It may limit or prevent the expansion of irrigated acres or__

 ______________________________________________________________________________ otherwise limit or prevent increases in the consumptive use of ground water

 _____________________________________________________________________________ withdrawals from water wells used for irrigation or other beneficial purposes;

(g) It may require the use of best management practices;

(h) It may require the analysis of water or deep soils for

fertilizer and chemical content;

(i) It may provide educational requirements, including impose ——————— ——————————— ————————————— ————————— ______

 — mandatory educational requirements, designed to protect water quality or to

stabilize or reduce the incidence of ground water depletion, conflicts between

ground water users and surface water appropriators, disputes over interstate

compacts or decrees, or difficulties fulfilling the provisions of other formal

state contracts or agreements;

(j) It may require water quality monitoring and reporting of results

to the district for all water wells within all or part of the management area;

 ________________________________________________________________ (k) It may require district approval of (i) transfers of ground

 ______________________________________________________________________________ water off the land where the water is withdrawn or (ii) transfers of rights to

 ______________________________________________________________________________ use ground water that result from district allocations imposed pursuant to

 ______________________________________________________________________________ subdivision (1)(a) of this section or from other restrictions on use that are

 ______________________________________________________________________________ imposed by the district in accordance with this section. Such approval may be

 ______________________________________________________________________________ required whether the transfer is within the management area, from inside to

 ______________________________________________________________________________ outside the management area, or from outside to inside the management area,

 ______________________________________________________________________________ except that transfers for which permits have been obtained from the Department

 ______________________________________________________________________________ of Natural Resources prior to the operative date of this section or pursuant

 ______________________________________________________________________________ to the Municipal and Rural Domestic Ground Water Transfers Permit Act shall

 ______________________________________________________________________________ not be subject to district approval pursuant to this subdivision. If the

 ______________________________________________________________________________ district adopts rules and regulations pursuant to this subdivision, such

 ______________________________________________________________________________ regulations shall require that the district deny or condition the approval of

 ______________________________________________________________________________ any such transfer when and to the extent such action is necessary to (A)

 ______________________________________________________________________________ ensure the consistency of the transfer with the purpose or purposes for which

 ______________________________________________________________________________ the management area was designated, (B) prevent adverse effects on other

 ______________________________________________________________________________ ground water users or on surface water appropriators, (C) prevent adverse

 ______________________________________________________________________________ effects on the state's ability to comply with an interstate compact or decree

 ______________________________________________________________________________ or to fulfill the provisions of any other formal state contract or agreement,

 ______________________________________________________________________________ and (D) otherwise protect the public interest and prevent detriment to the

 public welfare; _______________

 ____________________________________________________________________ (l) It may require, when conditions so permit, that new or

 ______________________________________________________________________________ replacement water wells to be used for domestic or other purposes shall be

 ______________________________________________________________________________ constructed to such a depth that they are less likely to be affected by

 ___________________________________________________________________________ seasonal water level declines caused by other water wells in the same area;

 ___ (m) It may close all or a portion of the management area to the

issuance of additional permits or may condition the issuance of additional

permits on compliance with other rules and regulations adopted and promulgated

by the district to achieve the purpose or purposes for which the management

area was designated; and . This subdivision may be implemented whenever the _____ — ———— ——————————— ——— —— ——————————— ———————— ———

district determines the impact on surface water supplies or the depletion or ———————— —————————— ——— —————— —— ——————— ————— ———————— —— ——— ————————— ——

contamination of the ground water supply in the management area or any portion ————————————— —— ——— —————— ————— —————— —— ——— —————————— ———— —— ——— ———————

of the management area cannot be protected through implementation of —— ——— —————————— ———— —————— —— ————————— ——————— —————————————— ——

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reasonable controls specified in subdivisions (1)(a) through (1)(j) of this —————————— ———————— ————————— —— ———————————— —————— ——————— —————— —— ————

 section; and ———————— ———

 ——— ___ (l) (n) It may adopt and promulgate such other reasonable rules and

regulations as are necessary to carry out the purpose for which a management

area was designated.

(2) In adopting, amending, or repealing any control authorized by

subsection (1) of this section or sections 46-656.26 and 46-656.27 80 and 81 ————————— ——— ————————— ___________

 _____________ of this act, the district's considerations shall include, but not be limited

to, whether it reasonably appears that such action will mitigate or eliminate

the condition which led to designation of the management area or will improve

the administration of the area.

 ___________________________________ (3) Upon request by the district or when any of the controls being

 ______________________________________________________________________________ proposed are for the purpose of integrated management of hydrologically

 ________________________________________ connected ground water and surface water, the Director of Natural Resources

shall review and comment on the adoption, amendment, or repeal of any

authorized control in a management area. The director may hold a public

hearing to consider testimony regarding the control prior to commenting on the

adoption, amendment, or repeal of the control. The director shall consult

with the district and fix a time, place, and date for such hearing. In

reviewing and commenting on an authorized control in a management area, the

director's considerations shall include, but not be limited to, those

enumerated in subsection (2) of this section.

(4) If because of varying ground water uses, varying surface water

uses, different irrigation distribution systems, or varying climatic,

hydrologic, geologic, or soil conditions existing within a management area the

uniform application throughout such area of one or more controls would fail to

carry out the intent of the Nebraska Ground Water Management and Protection

Act in a reasonably effective and equitable manner, the controls adopted by

the district pursuant to this section may contain different provisions for

different categories of ground water use or portions of the management area

which differ from each other because of varying climatic, hydrologic,

geologic, or soil conditions. Any differences in such provisions shall

recognize and be directed toward such varying ground water uses or varying

conditions. Except as otherwise provided in this section, the provisions of —————— —— ————————— ———————— —— ———— ———————— ——— —————————— ——

all controls for different categories of ground water use shall be uniform for ——— ———————— ——— ————————— —————————— —— —————— ————— ——— ————— —— ——————— ———

all portions of the area which have substantially similar climatic, ——— ———————— —— ——— ———— ————— ———— ————————————— ——————— —————————

hydrologic, geologic, and soil conditions Except as otherwise provided in this ——————————— ————————— ——— ———— —————————— ____________________________________

 ______________________________________________________________________________ section, if the district adopts different controls for different categories of

 ______________________________________________________________________________ ground water use, those controls shall be consistent with section 46-613 and

 ______________________________________________________________________________ shall, for each such category, be uniform for all portions of the area which

 ______________________________________________________________________________ have substantially similar climatic, hydrologic, geologic, and soil

 conditions. __________

(5) The district may establish different water allocations for

different irrigation distribution systems.

(6)(a) The district may establish different provisions for different

hydrologic relationships between ground water and surface water.

(b) For management areas a purpose of which is the integrated

management of hydrologically connected ground water and surface water, the

district may establish different provisions for water wells constructed before

the designation of a management area for integrated management of

hydrologically connected ground water and surface water and for water wells

constructed on or after the designation date or any other later date or dates

established by the district.

 _____ _____ (c) For a management area in a river basin or part of a river basin

that is or was the subject of litigation over an interstate water compact or

decree in which the State of Nebraska is a named defendant, the district may

establish different provisions for restriction of water wells constructed

after January 1, 2001, if such litigation was commenced before or on May 22,

2001. If such litigation is commenced after May 22, 2001, the district may

establish different provisions for restriction of water wells constructed

after the date on which such litigation is commenced in federal court. An

appeal from a decision of the district under this subdivision shall be in

accordance with the hearing procedures established in the Nebraska Ground

Water Management and Protection Act.

 ——— ___________________________________________ (d) The Except as otherwise authorized by law, the district shall

make a replacement water well as defined in section 46-602, or as further

defined in district rules and regulations, subject to the same provisions as

the water well it replaces.

(7) If the district has included controls delineated in subdivision

 —————— ______ (1)(k) (1)(m) of this section in its management plan, but has not implemented

such controls within two years after the initial public hearing on the

controls, the district shall hold a public hearing, as provided in section

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 ————————— ______________ 46-656.19 52 of this act, regarding the controls before implementing them.

(8) Whenever a management area designated under section 46-656.39 52 ————————— __

 _____________________ ————————— _____________________________ or 65 of this act or 46-656.52 sections 53 to 59 of this act encompasses

portions of two or more districts, the responsibilities and authorities

delegated in this section and sections 46-656.26 and 46-656.27 80 and 81 of ————————— ——— ————————— ____________

 ________ this act shall be exercised jointly and uniformly by agreement of the

respective boards of all districts so affected. Whenever management areas

designated by two or more districts adjoin each other, the districts are

encouraged to exercise the responsibilities and authorities jointly and

uniformly by agreement of the respective boards.

(9) For the purpose of determining whether conflicts exist between ——— ——— ——————— —— ——————————— ——————— ————————— ————— ———————

ground water users and surface water appropriators, surface water —————— ————— ————— ——— ——————— ————— —————————————— ——————— —————

appropriators under the Nebraska Ground Water Management and Protection Act ————————————— ————— ——— ———————— —————— ————— —————————— ——— —————————— ———

does not include holders of instream flow appropriations under sections ———— ——— ——————— ——————— —— ———————— ———— —————————————— ————— ————————

46-2,107 to 46-2,119. In addition to the controls listed in subsection (1) of ———————— —— ————————— _______________________________________________________

 ______________________________________________________________________________ this section, a district in which a management area has been designated may

 ______________________________________________________________________________ also adopt and implement one or more of the following measures if it

 ______________________________________________________________________________ determines that any such measures would help the district and water users

 ______________________________________________________________________________ achieve the goals and objectives of the management area: (a) It may sponsor

 ______________________________________________________________________________ nonmandatory educational programs; and (b) it may establish and implement

 ______________________________________________________________________________ financial or other incentive programs. As a condition for participation in an

 ______________________________________________________________________________ incentive program, the district may require water users or landowners to enter

 ______________________________________________________________________________ into and perform such agreements or covenants concerning the use of land or

 ______________________________________________________________________________ water as are necessary to produce the benefits for which the incentive program

 is established. _______________

Sec. 80. Section 46-656.26, Revised Statutes Supplement, 2002, is

amended to read:

 —————————— 46-656.26. (1) If allocation is adopted for use of ground water for

irrigation purposes in a management area, the permissible withdrawal of ground

water shall be allocated equally per irrigated acre except as permitted by

 ————————— _________________ subsections (4) through (6) of section 46-656.25 79 of this act. Such

allocation shall specify the total number of acre-inches that are allocated

per irrigated acre per year, except that the district may allow a ground water

user to average his or her allocation over any reasonable period of time. A

ground water user may use his or her allocation on all or any part of the

irrigated acres to which the allocation applies or in any other manner

approved by the district.

 —— ___________________________________________________________ (2) If Except as permitted pursuant to subsections (4) through (6)

 _____________________________ of section 79 of this act, if annual rotation or reduction of irrigated acres

is adopted for use of ground water for irrigation purposes in a management

area, the nonuse of irrigated acres shall be a uniform percentage reduction of

each landowner's irrigated acres within the management area or a subarea of

the management area. Such uniform reduction may be adjusted for each

landowner based upon crops grown on his or her land to reflect the varying

consumptive requirements between crops.

Sec. 81. Section 46-656.27, Revised Statutes Supplement, 2002, is

amended to read:

 —————————— 46-656.27. A district may review any allocation, rotation, or

reduction control imposed in a management area and shall adjust allocations,

rotations, or reductions to accommodate new or additional uses or otherwise

reflect findings of such review, consistent with the ground water management

objectives. Such review shall consider new development or additional ground

water uses within the area, more accurate data or information that was not

available at the time of the allocation, rotation, or reduction order, the

availability of supplemental water supplies, any changes in ground water

recharge, and such other factors as the district deems appropriate.

Sec. 82. Section 46-656.24, Revised Statutes Supplement, 2003, is

amended to read:

46-656.24. (1) Whenever a natural resources district pursuant to —————————— — ——————— ————————— ———————— ———————— ——

subsection (16) of section 46-656.28 has temporarily suspended the drilling of —————————— ———— —— ——————— ————————— ——— ——————————— —————————

new wells in all or part of the district has been stayed pursuant to section —— ——— —— ———— —— ——— ———————— _____________________________________

 _______________ 54 of this act, ground water withdrawn outside the affected area shall not be

transported for use inside such area unless (a) such withdrawal and transport

began before the temporary suspension stay took effect, (b) the water is used ————————— —————————— ____

solely for domestic purposes, or (c) such withdrawal and transport is approved

in advance by the district imposing the temporary suspension in which the stay ———————— ——— ————————— —————————— _________________

 ____________ is in effect and, if the water is withdrawn in another natural resources

district, by the other district.

(2) Whenever a natural resources district pursuant to subdivision

 —————— ______ ————————— ______________ (1)(k) (1)(m) of section 46-656.25 79 of this act has closed all or part of

the district to the issuance of additional well permits, ground water

withdrawn outside the affected area shall not be transported for use inside

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such area unless (a) such withdrawal and transport began before the affected

area was closed to the issuance of additional well permits, (b) the water is

used solely for domestic purposes, or (c) such withdrawal and transport is

approved in advance by the district that closed the affected area to

additional well permits and, if the water is withdrawn in another natural

resources district, by the other district.

 ____________________________________________________________________ (3) If a proposed withdrawal and transport of water under subsection

 ______________________________________________________________________________ (1) or (2) of this section is intended for municipal purposes, the natural

 ______________________________________________________________________________ resources district shall approve the withdrawal and transport of ground water

 ______________________________________________________________________________ into the affected area when a public water supplier providing water for

 ______________________________________________________________________________ municipal purposes receives a permit from the Department of Natural Resources

 ______________________________________________________________________________ pursuant to the Municipal and Rural Domestic Ground Water Transfers Permit

 Act.____

 _________________________________________________________ Sec. 83. Any public hearing required under the Nebraska Ground

 ______________________________________________________________________________ Water Management and Protection Act shall comply with the following

 requirements: _____________

 ____________________________________________________________________ (1) The hearing shall be located within or in reasonable proximity

 ______________________________________________________________________________ to the area proposed for designation as a management area or affected by the

 ____________________________ proposed rule or regulation;

 ____________________________________________________________________ (2) Notice of the hearing shall be published in a newspaper

 ______________________________________________________________________________ published or of general circulation in the affected area at least once each

 ______________________________________________________________________________ week for three consecutive weeks, the last publication of which shall be not

 __________________________________________ less than seven days prior to the hearing;

 ____________________________________________________________________ (3) As to the designation of a management area, adoption or

 ______________________________________________________________________________ amendment of an action plan or integrated management plan, or adoption or

 ______________________________________________________________________________ amendment of controls, the notice shall provide, as applicable, a general

 ______________________________________________________________________________ description of (a) the contents of the plan, (b) the geographic area which

 ______________________________________________________________________________ will be considered for inclusion in the management area, and (c) a general

 ______________________________________________________________________________ description of all controls proposed for adoption or amendment and shall

 ______________________________________________________________________________ identify all locations where a copy of the full text of the proposed plan or

 _________________________ controls may be obtained;

 ____________________________________________________________________ (4) For all other rules and regulations, the notice shall provide a

 ______________________________________________________________________________ general description of the contents of the rules and regulations proposed for

 ______________________________________________________________________________ adoption or amendment and shall identify all locations where a copy of the

 ________________________________________________________________ full text of the proposed rules and regulations may be obtained;

 ____________________________________________________________________ (5) The full text of all controls, rules, or regulations shall be

 ______________________________________________________________________________ available to the public upon request not later than the date of first

 publication; ____________

 ____________________________________________________________________ (6) All interested persons shall be allowed to appear and present

 testimony; and ______________

 ____________________________________________________________________ (7) The hearing shall include testimony of a representative of the

 ______________________________________________________________________________ Department of Natural Resources and, if the primary purpose of the proposed

 ______________________________________________________________________________ management area is protection of water quality, testimony of a representative

 ______________________________________________________________________________ of the Department of Environmental Quality and shall include the results of

 ______________________________________________________________________________ any relevant water quality studies or investigations conducted by the

 district. _________

Sec. 84. Section 46-656.21, Reissue Revised Statutes of Nebraska,

is amended to read:

46-656.21. The district shall cause a copy of any Any order adopted —————————— ——— ———————— ————— ————— — ———— —— ——— ___

pursuant to section 46-656.20 to 52, 58, 59, 65, or 66 of this act shall be ————————— —— _________________________________________

published once each week for three consecutive weeks in a local newspaper

published or of general circulation in the area involved, the last publication

of which shall be not less than seven days prior to the date set for the

effective date of the order. The publication shall provide a general

description of the text of all controls adopted or amended by the district and —— ——— ————————

shall identify all locations where a copy of the full text of the proposed

controls may be obtained. The full text of all controls adopted shall be

available to the public upon request at least thirty days prior to the

effective date of the controls.

Such order shall become effective on the date specified by the

 ________ _____________________________________ adopting district, department, or board, as applicable.

Sec. 85. Section 46-656.10, Revised Statutes Supplement, 2003, is

amended to read:

 —————————— 46-656.10. (1) Any person who violates a cease and desist order

 ————————— ________________ issued by a district pursuant to section 46-656.08 47 of this act shall be

subject to a civil penalty of not less than one thousand dollars and not more

than five thousand dollars for each day an intentional violation occurs. In

assessing the amount of the civil penalty, the court shall consider the degree

and extent of the violation, the size of the operation, whether the violator

has been previously convicted or subjected to a civil penalty under this

section, and any economic benefit derived from noncompliance. Any civil

penalty assessed and unpaid shall constitute a debt to the state which may be

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collected in the manner of a lien foreclosure or sued for and recovered in a

proper form of action in the name of the state in the district court of the

county in which the violator resides or owns property. The court shall,

within thirty days after receipt, remit the civil penalty to the State

Treasurer for credit to the permanent school fund.

(2)(a) Prior to issuing a cease and desist order against a public

water supplier as defined in section 46-638, the district shall consult with

the Attorney General. If the Attorney General determines that the district

does not have sufficient grounds to issue a cease and desist order, the

district shall abide by such determination and shall not issue a cease and

desist order. The Attorney General shall have exclusive authority to enforce

actions under this subsection.

(b) Any determination as to whether a water well is properly

registered under sections 46-602 to 46-604 or whether a water well is properly

permitted under the Municipal and Rural Domestic Ground Water Transfers Permit

Act shall be made by the Department of Natural Resources.

(3) When the Attorney General, a county attorney, or a private

attorney brings an action on behalf of a district to recover a civil penalty

under this section, the district shall recover the costs of the action if a

civil penalty is awarded. Any recovered costs of the action shall be: (a)

Remitted to the State Treasurer for credit to the Department of Justice

Natural Resources Enforcement Fund if the action is brought by the Attorney

General; (b) credited to the applicable county fund if the action is brought

by the county attorney; and (c) remitted to the district if the action is

brought by the district's private attorney.

(4) The Department of Justice Natural Resources Enforcement Fund is

created. The fund shall consist of money credited pursuant to subsection (3)

of this section. Money in the fund shall be used to reimburse the office of

the Attorney General for the costs incurred in enforcing this section. Any

money in the fund available for investment shall be invested by the state

investment officer pursuant to the Nebraska Capital Expansion Act and the

Nebraska State Funds Investment Act.

Sec. 86. Section 46-656.63, Revised Statutes Supplement, 2002, is

amended to read:

 —————————— ________________________________________________________ 46-656.63. (1) Any person who violates any cease and desist order

 ______________________________________________________________________________ issued by a district pursuant to section 47 of this act or any controls,

 ______________________________________________________________________________ rules, or regulations adopted by a natural resources district relating to a

 ______________________________________________________________________________ management area shall be subject to the imposition of penalties imposed

 ______________________________________________________________________________ through the controls adopted by the district, including, but not limited to,

 ______________________________________________________________________________ having any allocation of water granted or irrigated acres certified by the

 ______________________________________________________________________________ district reduced in whole or in part. Before a district takes any action,

 ____________________________________________________ notice and hearing shall be provided to such person.

 ___ (2) Any person who violates any of the provisions of sections

46-656.35 to 46-656.62 61 to 73 of this act for which a penalty is not ————————— —— ————————— ______________________

otherwise provided, other than the requirements imposed on a district, the

Director of Natural Resources, or the Department of Natural Resources, shall

be subject to a civil penalty of not more than five hundred dollars. Each day

of continued violation shall constitute a separate offense.

Sec. 87. Section 46-656.64, Reissue Revised Statutes of Nebraska,

is amended to read:

 —————————— 46-656.64. All hearings conducted pursuant to the Nebraska Ground

Water Management and Protection Act shall be of record and available for

 review.

Sec. 88. Section 46-656.62, Revised Statutes Supplement, 2002, is

amended to read:

 —————————— 46-656.62. The Director of Natural Resources shall adopt and

promulgate, in accordance with the Administrative Procedure Act, such rules

and regulations as are necessary to the discharge of duties assigned to the

director or the Department of Natural Resources by the Nebraska Ground Water

Management and Protection Act.

Sec. 89. Section 46-656.65, Revised Statutes Supplement, 2002, is

amended to read:

 —————————— 46-656.65. In the administration of the Nebraska Ground Water

Management and Protection Act, all actions of the Director of Environmental

Quality, the Director of Natural Resources, and the districts shall be

consistent with the provisions of section 46-613.

Sec. 90. Section 46-656.66, Revised Statutes Supplement, 2002, is

amended to read:

 —————————— 46-656.66. Any person aggrieved by any order of the district, the

Director of Environmental Quality, or the Director of Natural Resources issued

pursuant to the Nebraska Ground Water Management and Protection Act may appeal

the order. The appeal shall be in accordance with the Administrative

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 Procedure Act.

Sec. 91. Section 46-656.33, Revised Statutes Supplement, 2002, is

amended to read:

 —————————— 46-656.33. All fees paid to the Director of Natural Resources in——

accordance with the terms of pursuant to the Nebraska Ground Water Management —————————— ———— ——— ————— —— ___________

and Protection Act shall be paid into remitted to the State Treasurer for ———— ———— ________________________________________

 __________ credit to the Ground Water Management Fund which is hereby created and which

shall be administered by the director. Any money credited to the fund may be

utilized by the director for payments of expenses incurred in the

administration of the act. Any money in the fund available for investment

shall be invested by the state investment officer pursuant to the Nebraska

Capital Expansion Act and the Nebraska State Funds Investment Act.

Sec. 92. Section 46-656.67, Revised Statutes Supplement, 2002, is

amended to read:

 —————————— 46-656.67. The Interrelated Water Management Fund is created. The

State Treasurer shall credit to the fund, for the purpose of conducting

studies to determine the cause of current or potential conflicts between

ground water users and surface water appropriators, disputes over interstate

compacts or decrees, or difficulties fulfilling the provisions of other formal

state contracts and agreements, such money as is specifically appropriated and

such funds, fees, donations, gifts, or services or devises or bequests of real

or personal property received by the Department of Natural Resources from any

federal, state, public, or private source, to be used by the department for

the purpose of funding studies as described in this section. The department

may use its budget authority to request appropriations specifically for the

purpose of funding studies described in this section. The department shall

allocate money from the fund for use by the department, by any state agency,

board, or commission, or by any political subdivision of the state, by

agreement, or by private organizations or firms as may be contracted with by

the department. Any money in the fund available for investment shall be

invested by the state investment officer pursuant to the Nebraska Capital

Expansion Act and the Nebraska State Funds Investment Act.

 _________________________________________________________ Sec. 93. (1) The Water Resources Trust Fund is created. The State

 ______________________________________________________________________________ Treasurer shall credit to the fund such money as is specifically appropriated

 ______________________________________________________________________________ thereto by the Legislature and such funds, fees, donations, gifts, or bequests

 ______________________________________________________________________________ received by the Department of Natural Resources from any federal, state,

 ______________________________________________________________________________ public, or private source for expenditure for the purposes described in the

 ______________________________________________________________________________ Nebraska Ground Water Management and Protection Act. Money in the fund shall

 ______________________________________________________________________________ not be subject to any fiscal-year limitation or lapse provision of unexpended

 ______________________________________________________________________________ balance at the end of any fiscal year or biennium. Any money in the fund

 ______________________________________________________________________________ available for investment shall be invested by the state investment officer

 ______________________________________________________________________________ pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds

 Investment Act. _______________

 ____________________________________________________________________ (2) The fund shall be administered by the department. The

 ______________________________________________________________________________ department shall adopt and promulgate rules and regulations regarding the

 __________________________________________________ allocation and expenditure of money from the fund.

 ____________________________________________________________________ (3) Money in the fund may be expended by the department for costs

 ______________________________________________________________________________ incurred by the department, by natural resources districts, or by other

 ______________________________________________________________________________ political subdivisions in (a) determining whether river basins, subbasins, or

 ______________________________________________________________________________ reaches are fully appropriated in accordance with section 53 of this act, (b)

 ______________________________________________________________________________ developing or implementing integrated management plans for such fully

 ______________________________________________________________________________ appropriated river basins, subbasins, or reaches or for river basins,

 ______________________________________________________________________________ subbasins, or reaches designated as overappropriated in accordance with

 ______________________________________________________________________________ section 53 of this act, (c) developing or implementing integrated management

 ______________________________________________________________________________ plans in river basins, subbasins, or reaches which have not yet become either

 ______________________________________________________________________________ fully appropriated or overappropriated, or (d) attaining state compliance with

 ______________________________________________________________________________ an interstate water compact or decree or other formal state contract or

 agreement. __________

 ____________________________________________________________________ (4) Except for funds paid to a political subdivision for forgoing or

 ______________________________________________________________________________ reducing its own water use or for implementing projects or programs intended

 ______________________________________________________________________________ to aid the state in complying with an interstate water compact or decree or

 ______________________________________________________________________________ other formal state contract or agreement, a political subdivision that

 ______________________________________________________________________________ receives funds from the fund shall provide, or cause to be provided, matching

 ______________________________________________________________________________ funds in an amount at least equal to twenty percent of the amount received

 ______________________________________________________________________________ from the fund by that natural resources district or political subdivision.

 ______________________________________________________________________________ The department shall monitor programs and activities funded by the fund to

 _________________________________________________ ensure that the required match is being provided.

Sec. 94. Section 46-676, Revised Statutes Supplement, 2002, is

amended to read:

46-676. For purposes of the Industrial Ground Water Regulatory Act:

(1) The definitions found in section 46-656.07 46 of this act are ————————— ________________

 used;

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(2) Department means the Department of Natural Resources; and

(3) Director means the Director of Natural Resources.

Sec. 95. Section 46-678.01, Revised Statutes Supplement, 2002, is

amended to read:

46-678.01. Any person who desires to withdraw and transfer a total

of less than one hundred fifty acre-feet of ground water per year from

aquifers located in the State of Nebraska for industrial purposes to other

property within the state which is owned or leased by such person shall

provide written notice to the department and install a water meter or meters

that meet the approval of the department. Such notice shall include the

amount of the proposed transfer, the point of withdrawal, and the point of

delivery and shall be published once each week for three consecutive weeks in

a newspaper of general circulation in the county or counties in which the

point of withdrawal is located. The withdrawal and transfer may be made

 _________________________________________________________ without a permit issued under the Industrial Ground Water Regulatory Act so

long as (1) the property which includes the point of withdrawal and the

property which includes the point of delivery are owned or leased by the same

person, (2) the water is used by such person, and (3) a total of less than one

hundred fifty acre-feet of ground water per year is transferred from all

sources to the property which includes the point of delivery.

Sec. 96. Section 46-680, Reissue Revised Statutes of Nebraska, is

amended to read:

 ___ 46-680. (1) After the director has accepted the application made

under section 46-677 as a completed application, the director shall set a time ——— — ————

and place for a public hearing on the application. The hearing shall be held ——— ————— ——— — —————— ——————— —— ——— ———————————— ——— ——————— ————— —— ————

within or in reasonable proximity to the area in which the water wells would —————— —— —— —————————— ————————— —— ——— ———— —— ————— ——— ————— ————— —————

be located. The hearing shall be scheduled within ninety days after the —— ———————— ——— ——————— ————— —— ————————— —————— —————— ———— ————— ———

application is accepted by the director cause a notice of such application to ——————————— —— ———————— —— ——— ———————— _____________________________________

 ______________________________________________________________________________ be published at the applicant's expense at least once a week for three

 ______________________________________________________________________________ consecutive weeks in a legal newspaper published or of general circulation in

 ______________________________________________________________________________ each county containing land on which one or more water wells are proposed to

 ______________________________________________________________________________ be located. The notice shall include (a) the amount of ground water the

 ______________________________________________________________________________ applicant proposes to use, (b) a description of the proposed use and location

 ______________________________________________________________________________ of that use, (c) the number of water wells proposed at each location of

 ______________________________________________________________________________ withdrawal, and (d) any other information deemed necessary by the director to

 ______________________________________________________________________________ provide adequate notice of the application to interested persons. The notice

 ______________________________________________________________________________ shall state that any interested person may object to and request a hearing on

 ______________________________________________________________________________ the application by filing written objections stating the grounds for each

 ______________________________________________________________________________ objection within two weeks after the date of final publication of the notice.

 ____________________________________________________________________________ Such objections shall be filed in the headquarters office of the department.

 ____________________________________________________________________ (2) The director may hold a hearing on an application made under

 ______________________________________________________________________________ section 46-677 at his or her discretion and shall hold a hearing on such an

 ______________________________________________________________________________ application if requested by any interested person pursuant to subsection (1)

 _______________ of this section.

 __________________________________________________________ Sec. 97. (1) Any person intending to withdraw ground water from any

 ______________________________________________________________________________ water well located in the State of Nebraska, transport that water off the

 ______________________________________________________________________________ overlying land, and use it to augment water supplies in any Nebraska wetland

 ______________________________________________________________________________ or natural stream for the purpose of benefiting fish or wildlife or producing

 ______________________________________________________________________________ other environmental or recreational benefits may do so only if the natural

 ______________________________________________________________________________ resources district in which the water well is or would be located allows

 ______________________________________________________________________________ withdrawals and transport for such purposes and only after applying for and

 ______________________________________________________________________________ obtaining a permit from such natural resources district. An application for

 ______________________________________________________________________________ any such permit shall be accompanied by a nonrefundable fee of fifty dollars

 ______________________________________________________________________________ payable to such district. Such permit shall be in addition to any permit

 ____________________________________________ required pursuant to section 75 of this act.

 ____________________________________________________________________ (2) Prior to taking action on an application pursuant to this

 ______________________________________________________________________________ section, the district shall provide an opportunity for public comment on such

 ______________________________________________________________________________ application at a regular or special board meeting for which advance published

 ______________________________________________________________________________ notice of the meeting and the agenda therefor have been given consistent with

 ______________________ the Open Meetings Act.

 ____________________________________________________________________ (3) In determining whether to grant a permit under this section, the

 _____________________________________________________________________ board of directors for the natural resources district shall consider:

 _________________________________________________________________ (a) Whether the proposed use is a beneficial use of ground water;

 ____________________________________________________________________ (b) The availability to the applicant of alternative sources of

 ______________________________________________________________________________ surface water or ground water for the proposed withdrawal, transport, and use;

 ____________________________________________________________________ (c) Any negative effect of the proposed withdrawal, transport, and

 ______________________________________________________________________________ use on ground water supplies needed to meet present or reasonable future

 ______________________________________________________________________________ demands for water in the area of the proposed withdrawal, transport, and use,

 ______________________________________________________________________________ to comply with any interstate compact or decree, or to fulfill the provisions

 ________________________________________________ of any other formal state contract or agreement;

 ____________________________________________________________________ (d) Any negative effect of the proposed withdrawal, transport, and

 ______________________________________________________________________________ use on surface water supplies needed to meet present or reasonable future

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 ______________________________________________________________________________ demands for water within the state, to comply with any interstate compact or

 ______________________________________________________________________________ decree, or to fulfill the provisions of any other formal state contract or

 agreement; __________

 ____________________________________________________________________ (e) Any adverse environmental effect of the proposed withdrawal,

 _______________________________________ transport, and use of the ground water;

 ____________________________________________________________________ (f) The cumulative effects of the proposed withdrawal, transport,

 ______________________________________________________________________________ and use relative to the matters listed in subdivisions (3)(c) through (e) of

 ______________________________________________________________________________ this section when considered in conjunction with all other withdrawals,

 _____________________________________________ transports, and uses subject to this section;

 ____________________________________________________________________ (g) Whether the proposed withdrawal, transport, and use is

 ______________________________________________________________________________ consistent with the district's ground water quantity and quality management

 ______________________________________________________________________________ plan and with any integrated management plan previously adopted or being

 _____________________________________________________________________________ considered for adoption in accordance with sections 53 to 59 of this act; and

 ____________________________________________________________________ (h) Any other factors consistent with the purposes of this section

 ______________________________________________________________________________ which the board of directors deems relevant to protect the interests of the

 _______________________ state and its citizens.

 ____________________________________________________________________ (4) Issuance of a permit shall be conditioned on the applicant's

 ______________________________________________________________________________ compliance with the rules and regulations of the natural resources district

 ______________________________________________________________________________ from which the water is to be withdrawn and, if the location where the water

 ______________________________________________________________________________ is to be used to produce the intended benefits is in a different natural

 ______________________________________________________________________________ resources district, with the rules and regulations of that natural resources

 ______________________________________________________________________________ district. The board of directors may include such reasonable conditions on

 ______________________________________________________________________________ the proposed withdrawal, transport, and use as it deems necessary to carry out

 _____________________________ the purposes of this section.

 ____________________________________________________________________ (5) The applicant shall be required to provide access to his or her

 ______________________________________________________________________________ property at reasonable times for purposes of inspection by officials of any

 __________________________________________________________ district where the water is to be withdrawn or to be used.

Sec. 98. Section 46-1207.01, Reissue Revised Statutes of Nebraska,

is amended to read:

46-1207.01. (1) Illegal water well shall mean any water well which

has not been properly decommissioned and which meets any of the following

 conditions:

(a) The water well is in such a condition that it cannot be placed

in active or inactive status;

(b) Any necessary operating equipment has been removed and the well

has not been placed in inactive status;

(c) The water well is in such a state of disrepair that continued

use for the purpose for which it was constructed is impractical;

(d) The water well was constructed after October 1, 1986, but not

constructed by a licensed water well contractor or by an individual on land

owned by him or her and used by him or her for farming, ranching, or

agricultural purposes or as his or her place of abode;

(e) The water well poses a health or safety hazard; or——

(f) The water well is an illegal water well in accordance with

 ————————— __________________ section 46-656.07 46 of this act; or

 ____________________________________________________________________ (g) The water well has been constructed after October 1, 1986, and

 ______________________________________________________________________________ such well is not in compliance with the standards developed under the Water

 _____________________________________________ Well Standards and Contractors' Licensing Act.

(2) Whenever the department classifies a water well as an illegal

water well, the landowner may petition the department to reclassify the water

well as an active status water well, an inactive status water well, or an

abandoned water well.

Sec. 99. Section 46-1207.02, Reissue Revised Statutes of Nebraska,

is amended to read:

46-1207.02. Inactive status water well shall mean a water well that

is in a good state of repair and for which the owner has provided evidence of

intent for future use by maintaining the water well in a manner which meets

the following requirements:

(1) The water well does not allow impairment of the water quality in

the water well or of the ground water encountered by the water well;

(2) The top of the water well or water well casing has a water-tight

welded or threaded cover or some other water-tight means to prevent its

removal without the use of equipment or tools to prevent unauthorized access,

to prevent a safety hazard to humans and animals, and to prevent illegal

disposal of wastes or contaminants into the water well;

 ____________________________________________________________________ (3) All entrances and discharge piping to the water well are

 ___________________________________________________________ effectively sealed to prevent the entrance of contaminants; and

 ——— ___ (3) (4) The water well is marked so as to be easily visible and

located and is labeled or otherwise marked so as to be easily identified as a

water well and the area surrounding the water well is kept clear of brush,

debris, and waste material.

Sec. 100. Section 46-1212, Reissue Revised Statutes of Nebraska, is

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amended to read:

46-1212. Water well shall mean any excavation that is drilled,

cored, bored, washed, driven, dug, jetted, or otherwise constructed for the

purpose of exploring for ground water, monitoring ground water, utilizing the

geothermal properties of the ground, obtaining hydrogeologic information, or

 ————— ___________________________________ extracting water from or injecting water fluid as defined in section 81-1502

into the underground water reservoir. Water well shall not include any

excavation made for obtaining or prospecting for oil or natural gas or for

inserting media to repressure oil or natural gas bearing formations regulated

by the Nebraska Oil and Gas Conservation Commission.

Sec. 101. Section 46-1228, Reissue Revised Statutes of Nebraska, is

amended to read:

46-1228. The department shall have (1) authority to inspect water

 _____________________________ wells constructed, water wells decommissioned, and water well locations, (2)

 ———— _____ access to such water wells and accompanying pumps and pumping equipment at all

reasonable times, and (3) power of inspection in regard to the construction

 ___________________ and decommissioning of all water wells.

Sec. 102. Section 61-206, Reissue Revised Statutes of Nebraska, is

amended to read:

61-206. (1) The Department of Natural Resources is given

jurisdiction over all matters pertaining to water rights for irrigation,

power, or other useful purposes except as such jurisdiction is specifically

limited by statute. Such department shall adopt and promulgate rules and

regulations governing matters coming before it. It may refuse to allow any

water to be used by claimants until their rights have been determined and made

of record. It may request information relative to irrigation and water power

works from any county, irrigation, or power officers and from any other

persons. It shall have public may have hearings on complaints, petitions, or ————— ———— —————— ________

applications in connection with any of such matters. Such hearings may shall ——— _____

be had at the time and place designated by the department. The department

shall have power to certify official acts, compel attendance of witnesses,

take testimony by deposition as in suits at law, and examine books, papers,

documents, and records of any county, party, or parties interested in any of

the matters mentioned in this section or have such examinations made by its

qualified representative and shall make and preserve a true and complete

transcript of its proceedings and hearings. If a final decision is made _____

without a hearing, a hearing shall be held at the request of any party to the

proceeding if the request is made within fifteen days after the decision is

rendered. If a hearing is held at the request of one or more parties, the

department may require each such requesting party and each person who requests

to be made a party to such hearing to pay the proportional share of the cost

of such transcript. Upon any hearing, the department shall receive any

evidence relevant to the matter under investigation and the burden of proof

shall be upon the person making the complaint, petition, and application.

After such hearing and investigation, the department shall render a decision

in the premises in writing and shall issue such order or orders duly certified

as it may deem necessary.

(2) The department shall serve as the official agency of the state

in connection with water resources development, soil and water conservation,

flood prevention, watershed protection, and flood control.

(3) The department shall:

(a) Offer assistance as appropriate to the supervisors or directors

of any subdivision of government with responsibilities in the area of natural

resources conservation, development, and use in the carrying out of any of

their powers and programs;

(b) Keep the supervisors or directors of each such subdivision

informed of the activities and experience of all other such subdivisions and

facilitate cooperation and an interchange of advice and experience between

 such subdivisions;

(c) Coordinate the programs of such subdivisions so far as this may

be done by advice and consultation;

(d) Secure the cooperation and assistance of the United States, any

of its agencies, and agencies of this state in the work of such subdivisions;

(e) Disseminate information throughout the state concerning the

activities and programs of such subdivisions;

(f) Plan, develop, and promote the implementation of a comprehensive

program of resource development, conservation, and utilization for the soil

and water resources of this state in cooperation with other local, state, and

federal agencies and organizations;

(g) When necessary for the proper administration of the functions of

the department, rent or lease space outside the State Capitol; and

(h) Assist such local governmental organizations as villages,

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cities, counties, and natural resources districts in securing, planning, and

developing information on flood plains to be used in developing regulations

and ordinances on proper use of these flood plains.

Sec. 103. Section 66-1501, Reissue Revised Statutes of Nebraska, is

amended to read:

66-1501. Sections 66-1501 to 66-1531 and section 104 of this act ______________________________

shall be known and may be cited as the Petroleum Release Remedial Action Act.

 ______________________________________________________ Sec. 104. Beginning July 1, 2009, the owner of any new tank at a

 ______________________________________________________________________________ site where tanks have not been previously located shall be fully insured

 ______________________________________________________________________________ through private insurance to cover the costs of any remedial action to such

 _______________________________________________________________ tank or the site on which such tank is located after such date.

Sec. 105. Section 66-1519, Reissue Revised Statutes of Nebraska, is

amended to read:

66-1519. (1) There is hereby created the Petroleum Release Remedial

Action Cash Fund to be administered by the department. Revenue from the

following sources shall be remitted to the State Treasurer for credit to the

 fund:

(a) The fees imposed by sections 66-1520 and 66-1521;

(b) Money paid under an agreement, stipulation, cost-recovery award

under section 66-1529.02, or settlement; and

(c) Money received by the department in the form of gifts, grants,

reimbursements, property liquidations, or appropriations from any source

intended to be used for the purposes of the fund.

(2) Money in the fund may be spent for: (a) Reimbursement for the

costs of remedial action by a responsible person or his or her designated

representative and costs of remedial action undertaken by the department in

response to a release first reported after July 17, 1983, and on or before

 ———— ____ June 30, 2005 2009, including reimbursement for damages caused by the

department or a person acting at the department's direction while

investigating or inspecting or during remedial action on property other than

property on which a release or suspected release has occurred; (b) payment of

any amount due from a third-party claim; (c) fee collection expenses incurred

by the State Fire Marshal; (d) direct expenses incurred by the department in

carrying out the Petroleum Release Remedial Action Act; (e) other costs

related to fixtures and tangible personal property as provided in section

66-1529.01; (f) interest payments as allowed by section 66-1524; (g) expenses

incurred by the technical advisory committee created in section 81-15,189 in

carrying out its duties pursuant to section 81-15,190; (h) claims approved by

the State Claims Board authorized under section 66-1531; (i) a grant to a city

of the metropolitan class in the amount of three hundred thousand dollars,

provided within five days after October 1, 2003, to carry out the federal

Residential Lead-Based Paint Hazard Reduction Act of 1992, 42 U.S.C. 4851 et

seq., as such act existed on October 1, 2003; and (j) methyl tertiary butyl

ether testing, to be conducted randomly at terminals within the state for up

to two years ending June 30, 2003. The amount expended on the testing shall

not exceed forty thousand dollars. The testing shall be conducted by the

Department of Agriculture. The department may enter into contractual

arrangements for such purpose. The results of the tests shall be made

available to the Department of Environmental Quality.

(3) Transfers may be made from the Petroleum Release Remedial Action

Cash Fund to the General Fund at the direction of the Legislature. Transfers

may be made from the Petroleum Release Remedial Action Cash Fund to the Water

Policy Task Force Cash Fund at the direction of the Legislature.

(4) Any money in the Petroleum Release Remedial Action Cash Fund

available for investment shall be invested by the state investment officer

pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds

 Investment Act.

Sec. 106. Section 66-1523, Reissue Revised Statutes of Nebraska, is

amended to read:

66-1523. (1) Except as provided in subsection (2) of this section,

the department shall provide reimbursement from the fund in accordance with

section 66-1525 to eligible responsible persons for the cost of remedial

action for releases reported after July 17, 1983, and on or before June 30,

 ———— ____ 2005 2009, and for the cost of paying third-party claims. The reimbursement

for the cost of remedial action shall not exceed nine hundred seventy-five

thousand dollars per occurrence. The total of the claims paid under section

66-1531 and the reimbursement for third-party claims shall not exceed one

million dollars per occurrence. The responsible person shall pay the first

ten thousand dollars of the cost of the remedial action or third-party claim,

twenty-five percent of the remaining cost of the remedial action or

third-party claim not to exceed fifteen thousand dollars, and the amount of

any reduction authorized under subsection (5) of section 66-1525. If the

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department determines that a responsible person was ordered to take remedial

action for a release which was later found to be from a tank not owned or

operated by such person, (a) such person shall be fully reimbursed and shall

not be required to pay the first cost or percent of the remaining cost as

provided in this subsection and (b) the first cost and percent of the

remaining cost not required to be paid by the person ordered to take remedial

action shall be paid to the fund as a cost of remedial action by the owner or

operator of the tank found to be the cause of the release. In no event shall

reimbursements or payments from the fund exceed the annual aggregate of one

million nine hundred seventy-five thousand dollars per responsible person.

Reimbursement of a cost incurred as a result of a suspension ordered by the

department shall not be limited by this subsection if the suspension was

caused by insufficiency in the fund to provide reimbursement.

(2) Upon the determination by the department that the responsible

person sold no less than two thousand gallons of petroleum and no more than

two hundred fifty thousand gallons of petroleum during the calendar year

immediately preceding the first report of the release or stored less than ten

thousand gallons of petroleum in the calendar year immediately preceding the

first report of the release, the department shall provide reimbursement from

the fund in accordance with section 66-1525 to such an eligible person for the

cost of remedial action for releases reported after July 17, 1983, and on or

 ———— ____ before June 30, 2005 2009, and for the cost of paying third-party claims. The

reimbursement for the cost of remedial action shall not exceed nine hundred

eighty-five thousand dollars per occurrence. The total of the claims paid

under section 66-1531 and the reimbursement for third-party claims shall not

exceed one million dollars per occurrence. The responsible person shall pay

the first five thousand dollars of the cost of the remedial action or

third-party claim, twenty-five percent of the remaining cost of the remedial

action or third-party claim not to exceed ten thousand dollars, and the amount

of any reduction authorized under subsection (5) of section 66-1525. If the

department determines that a responsible person was ordered to take remedial

action for a release which was later found to be from a tank not owned or

operated by such person, (a) such person shall be fully reimbursed and shall

not be required to pay the first cost or percent of the remaining cost as

provided in this subsection and (b) the first cost and percent of the

remaining cost not required to be paid by the person ordered to take remedial

action shall be paid to the fund as a cost of remedial action by the owner or

operator of the tank found to be the cause of the release. In no event shall

reimbursements or payments from the fund exceed the annual aggregate of one

million nine hundred eighty-five thousand dollars per responsible person.

Reimbursement of a cost incurred as a result of a suspension ordered by the

department shall not be limited by this subsection if the suspension was

caused by insufficiency in the fund to provide reimbursement.

(3) The department may make partial reimbursement during the time

that remedial action is being taken if the department is satisfied that the

remedial action being taken is as required by the department.

(4) If the fund is insufficient for any reason to reimburse the

amount set forth in this section, the maximum amount that the fund shall be

required to reimburse is the amount in the fund. If reimbursements approved

by the department exceed the amount in the fund, reimbursements with interest

shall be made when the fund is sufficiently replenished in the order in which

the applications for them were received by the department, except that an

application pending before the department on January 1, 1996, submitted by a

local government as defined in section 13-2202 shall, after July 1, 1996, be

reimbursed first when funds are available. This exception applies only to

local government applications pending on and not submitted after January 1,

 1996.

(5) Applications for reimbursement properly made before, on, or

after April 16, 1996, shall be considered bills for goods or services provided

for third parties for purposes of the Prompt Payment Act.

(6) Notwithstanding any other provision of law, there shall be no

reimbursement from the fund for the cost of remedial action or for the cost of

paying third-party claims for any releases reported on or after July 1, 2005 ————

 2009.____

(7) For purposes of this section, occurrence shall mean an accident,

including continuous or repeated exposure to conditions, which results in a

release from a tank.

Sec. 107. Section 66-1525, Reissue Revised Statutes of Nebraska, is

amended to read:

66-1525. (1) Any responsible person or his or her designated

representative who has taken remedial action in response to a release first

reported after July 17, 1983, and on or before June 30, 2005 2009, or against ———— ____

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whom there is a third-party claim may apply to the department under the rules

and regulations adopted and promulgated pursuant to section 66-1518 for

reimbursement for the costs of the remedial action or third-party claim.

Partial payment of such reimbursement to the responsible person may be

authorized by the department at the approved stages prior to the completion of

remedial action when a remedial action plan has been approved. If any stage

is projected to take more than ninety days to complete partial payments may be

requested every sixty days. Such partial payment may include the eligible and

reasonable costs of such plan or pilot projects conducted during the remedial

 action.

(2) No reimbursement may be made unless the department makes the

following eligibility determinations:

(a) The tank was in substantial compliance with any rules and

regulations of the United States Environmental Protection Agency, the State

Fire Marshal, and the department which were applicable to the tank.

Substantial compliance shall be determined by the department taking into

consideration the purposes of the Petroleum Release Remedial Action Act and

the adverse effect that any violation of the rules and regulations may have

had on the tank thereby causing or contributing to the release and the extent

of the remedial action thereby required;

(b) Either the State Fire Marshal or the department was given notice

of the release in substantial compliance with the rules and regulations

adopted and promulgated pursuant to the Environmental Protection Act and the

Petroleum Products and Hazardous Substances Storage and Handling Act.

Substantial compliance shall be determined by the department taking into

consideration the purposes of the Petroleum Release Remedial Action Act and

the adverse effect that any violation of the notice provisions of the rules

and regulations may have had on the remedial action being taken in a prompt,

effective, and efficient manner;

(c) The responsible person reasonably cooperated with the department

and the State Fire Marshal in responding to the release;

(d) The department has approved the plan submitted by the

responsible person for the remedial action in accordance with rules and

regulations adopted and promulgated by the department pursuant to the

Environmental Protection Act or the Petroleum Products and Hazardous

Substances Storage and Handling Act or that portion of the plan for which

payment or reimbursement is requested. However, responsible persons may

undertake remedial action prior to approval of a plan by the department or

during the time that remedial action at a site was suspended at any time after

April 1995 because the fund was insufficient to pay reimbursements and be

eligible for reimbursement at a later time if the responsible person complies

with procedures provided to the responsible party by the department or set out

in rules and regulations adopted and promulgated by the Environmental Quality

 Council;

(e) The costs for the remedial action were actually incurred by the

responsible person or his or her designated representative after May 27, 1989,

and were eligible and reasonable;

(f) If reimbursement for a third-party claim is involved, the cause

of action for the third-party claim accrued after April 26, 1991, and the

Attorney General was notified by any person of the service of summons for the

action within ten days of such service; and

(g) The responsible person or his or her designated representative

has paid the amount specified in subsection (1) or (2) of section 66-1523.

(3) The State Fire Marshal shall review each application prior to

consideration by the department and provide to the department any information

the State Fire Marshal deems relevant to subdivisions (2)(a) through (g) of

this section. The State Fire Marshal shall issue a determination with respect

to an applicant's compliance with rules and regulations adopted and

promulgated by the State Fire Marshal. The State Fire Marshal shall issue a

compliance determination to the department within thirty days after receiving

an application from the department.

(4) The department may withhold taking action on an application

during the pendency of an enforcement action by the state or federal

government related to the tank or a release from the tank.

(5) Reimbursements made for a remedial action may be reduced as much

as one hundred percent for failure by the responsible person to comply with

applicable statutory or regulatory requirements. In determining the amount of

the reimbursement reduction, the department shall consider:

(a) The extent of and reasons for noncompliance;

(b) The likely environmental impact of the noncompliance; and

(c) Whether noncompliance was negligent, knowing, or willful.

(6) Except as provided in subsection (4) of this section, the

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department shall notify the responsible person of its approval or denial of

the remedial action plan within one hundred twenty days after receipt of a

remedial action plan which contains all the required information. If after

one hundred twenty days the department fails to either deny, approve, or amend

the remedial action plan submitted, the proposed plan shall be deemed

approved. If the remedial action plan is denied, the department shall provide

the reasons for such denial.

Sec. 108. Section 66-1529.02, Reissue Revised Statutes of Nebraska,

is amended to read:

66-1529.02. (1) The department may undertake remedial actions in

response to a release first reported after July 17, 1983, and on or before

 ———— ____ June 30, 2005 2009, with money available in the fund if:

(a) The responsible person cannot be identified or located;

(b) An identified responsible person cannot or will not comply with

the remedial action requirements; or

(c) Immediate remedial action is necessary, as determined by the

Director of Environmental Quality, to protect human health or the environment.

(2) The department may pay the costs of a third-party claim meeting

the requirements of subdivision (2)(f) of section 66-1525 with money available

in the fund if the responsible person cannot or will not pay the third-party

 claim.

(3) Reimbursement for any damages caused by the department or a

person acting at the department's direction while investigating or inspecting

or during remedial action on property other than property on which a release

or suspected release has occurred shall be considered as part of the cost of

remedial action involving the site where the release or suspected release

occurred. The costs shall be reimbursed from money available in the fund. If

such reimbursement is deemed inadequate by the party claiming the damages, the

party's claim for damages caused by the department shall be filed as provided

in section 76-705.

(4) All expenses paid from the fund under this section, court costs,

and attorney's fees may be recovered in a civil action in the district court

of Lancaster County. The action may be brought by the county attorney or

Attorney General at the request of the director against the responsible

person. All recovered expenses shall be deposited into the fund.

Sec. 109. Section 77-27,137.02, Reissue Revised Statutes of

Nebraska, is amended to read:

77-27,137.02. Except as provided in section 46-656.17, the The —————— —— ———————— —— ——————— —————————— ——— ___

appropriation provided for in section 77-27,136 for aid to natural resources

districts shall be distributed to the various natural resources districts of

the state on the basis of the ratio of the total amount of property taxes

levied by the particular natural resources district to the total amount of

property taxes levied by all natural resources districts within the state

based on amounts stated in the most recent certificate of taxes levied

statement and schedules submitted by each county to the Tax Commissioner

pursuant to section 77-1613.01. The Tax Commissioner shall determine the

amount to be distributed to the various natural resources districts and

certify such amounts by voucher to the Director of Administrative Services.

Each amount shall be distributed in seven as nearly as possible equal monthly

payments between the fifth and twentieth day of each month beginning December

1, 1982, and each December thereafter. The State Treasurer shall, between the

fifth and twentieth day of each month, notify the Director of Administrative

Services of the amount of funds available in the General Fund for payment

purposes. The Director of Administrative Services shall, upon receipt of such

notification and vouchers, draw warrants against funds appropriated. The

proceeds of the payments received by the various natural resources districts

shall be credited to the general fund of the district.

Sec. 110. Section 77-3442, Reissue Revised Statutes of Nebraska, is

amended to read:

77-3442. (1) Property tax levies for the support of local

governments for fiscal years beginning on or after July 1, 1998, shall be

limited to the amounts set forth in this section except as provided in section

 77-3444.

(2)(a) Except as provided in subdivision (2)(b) of this section,

school districts and multiple-district school systems may levy a maximum levy

of (i) one dollar and five cents per one hundred dollars of taxable valuation

of property subject to the levy for fiscal years 2003-04 and 2004-05 and (ii)

one dollar per one hundred dollars of taxable valuation of property subject to

the levy for all fiscal years except fiscal years 2003-04 and 2004-05.

Excluded from this limitation are amounts levied to pay for sums agreed to be

paid by a school district to certificated employees in exchange for a

voluntary termination of employment and amounts levied to pay for special

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building funds and sinking funds established for projects commenced prior to

April 1, 1996, for construction, expansion, or alteration of school district

buildings. For purposes of this subsection, commenced means any action taken

by the school board on the record which commits the board to expend district

funds in planning, constructing, or carrying out the project.

(b) Federal aid school districts may exceed the maximum levy

prescribed by subdivision (2)(a) of this section only to the extent necessary

to qualify to receive federal aid pursuant to Title VIII of Public Law

103-382, as such title existed on September 1, 2001. For purposes of this

subdivision, federal aid school district means any school district which

receives ten percent or more of the revenue for its general fund budget from

federal government sources pursuant to Title VIII of Public Law 103-382, as

such title existed on September 1, 2001.

(c) Beginning with school fiscal year 2002-03 through school fiscal

year 2004-05, school districts and multiple-district school systems may, upon

a three-fourths majority vote of the school board of the school district, the

board of the unified system, or the school board of the high school district

of the multiple-district school system that is not a unified system, exceed

the maximum levy prescribed by subdivision (2)(a) of this section in an amount

equal to the net difference between the amount of state aid that would have

been provided under the Tax Equity and Educational Opportunities Support Act

without the changes made by Laws 2002, LB 898, for the ensuing school fiscal

year for the school district or multiple-district school system and the amount

provided under the act as amended by Laws 2002, LB 898. The State Department

of Education shall certify to the school districts and multiple-district

school systems the amount by which the maximum levy may be exceeded pursuant

to subdivision (2)(c) of this section on or before May 15, 2002, for school

fiscal year 2002-03, June 30, 2003, for school fiscal year 2003-04, and

February 15, 2004, for school fiscal year 2004-05.

(3) Community colleges may levy a maximum levy on each one hundred

dollars of taxable property subject to the levy of seven cents for fiscal year

2000-01 and each fiscal year thereafter, plus amounts allowed under subsection

(7) of section 85-1536.01.

(4) Natural resources districts may levy a maximum levy of four and

one-half cents per one hundred dollars of taxable valuation of property

 _________________________________________________________ subject to the levy. Natural resources districts shall also have the power

 ______________________________________________________________________________ and authority to levy a tax equal to the dollar amount by which their

 ______________________________________________________________________________ restricted funds budgeted to administer and implement ground water management

 ______________________________________________________________________________ activities and integrated management activities under the Nebraska Ground

 ______________________________________________________________________________ Water Management and Protection Act exceed their restricted funds budgeted to

 ______________________________________________________________________________ administer and implement ground water management activities and integrated

 ______________________________________________________________________________ management activities for FY2003-04, not to exceed one cent on each one

 ______________________________________________________________________________ hundred dollars of taxable valuation annually on all of the taxable property

 ___________________ within the district.

(5) Educational service units may levy a maximum levy of one and

one-half cents per one hundred dollars of taxable valuation of property

subject to the levy.

(6)(a) Incorporated cities and villages which are not within the

boundaries of a municipal county may levy a maximum levy of forty-five cents

per one hundred dollars of taxable valuation of property subject to the levy

plus an additional five cents per one hundred dollars of taxable valuation to

provide financing for the municipality's share of revenue required under an

agreement or agreements executed pursuant to the Interlocal Cooperation Act or

the Joint Public Agency Act. The maximum levy shall include amounts levied to

pay for sums to support a library pursuant to section 51-201, museum pursuant

to section 51-501, visiting community nurse, home health nurse, or home health

agency pursuant to section 71-1637, or statue, memorial, or monument pursuant

to section 80-202.

(b) Incorporated cities and villages which are within the boundaries

of a municipal county may levy a maximum levy of ninety cents per one hundred

dollars of taxable valuation of property subject to the levy. The maximum

levy shall include amounts paid to a municipal county for county services,

amounts levied to pay for sums to support a library pursuant to section

51-20l, a museum pursuant to section 51-501, a visiting community nurse, home

health nurse, or home health agency pursuant to section 71-1637, or a statue,

memorial, or monument pursuant to section 80-202.

(7) Sanitary and improvement districts which have been in existence

for more than five years may levy a maximum levy of forty cents per one

hundred dollars of taxable valuation of property subject to the levy, and

sanitary and improvement districts which have been in existence for five years

or less shall not have a maximum levy. Unconsolidated sanitary and

improvement districts which have been in existence for more than five years

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and are located in a municipal county may levy a maximum of eighty-five cents

per hundred dollars of taxable valuation of property subject to the levy.

(8) Counties may levy or authorize a maximum levy of fifty cents per

one hundred dollars of taxable valuation of property subject to the levy,

except that five cents per one hundred dollars of taxable valuation of

property subject to the levy may only be levied to provide financing for the

county's share of revenue required under an agreement or agreements executed

pursuant to the Interlocal Cooperation Act or the Joint Public Agency Act.

The maximum levy shall include amounts levied to pay for sums to support a

library pursuant to section 51-201 or museum pursuant to section 51-501. The

county may allocate up to fifteen cents of its authority to other political

subdivisions subject to allocation of property tax authority under subsection

(1) of section 77-3443 and not specifically covered in this section to levy

taxes as authorized by law which do not collectively exceed fifteen cents per

one hundred dollars of taxable valuation on any parcel or item of taxable

property. The county may allocate to one or more other political subdivisions

subject to allocation of property tax authority by the county under subsection

(1) of section 77-3443 some or all of the county's five cents per one hundred

dollars of valuation authorized for support of an agreement or agreements to

be levied by the political subdivision for the purpose of supporting that

political subdivision's share of revenue required under an agreement or

agreements executed pursuant to the Interlocal Cooperation Act or the Joint

Public Agency Act. If an allocation by a county would cause another county to

exceed its levy authority under this section, the second county may exceed the

levy authority in order to levy the amount allocated.

(9) Municipal counties may levy or authorize a maximum levy of one

dollar per one hundred dollars of taxable valuation of property subject to the

levy. The municipal county may allocate levy authority to any political

subdivision or entity subject to allocation under section 77-3443.

(10) Property tax levies for judgments, except judgments or orders

from the Commission of Industrial Relations, obtained against a political

subdivision which require or obligate a political subdivision to pay such

judgment, to the extent such judgment is not paid by liability insurance

coverage of a political subdivision, for preexisting lease-purchase contracts

approved prior to July 1, 1998, for bonded indebtedness approved according to

law and secured by a levy on property, and for payments by a public airport to

retire interest-free loans from the Department of Aeronautics in lieu of

bonded indebtedness at a lower cost to the public airport are not included in

the levy limits established by this section.

(11) The limitations on tax levies provided in this section are to

include all other general or special levies provided by law. Notwithstanding

other provisions of law, the only exceptions to the limits in this section are

those provided by or authorized by sections 77-3442 to 77-3444.

(12) Tax levies in excess of the limitations in this section shall

be considered unauthorized levies under section 77-1606 unless approved under

 section 77-3444.

(13) For purposes of sections 77-3442 to 77-3444, political

subdivision means a political subdivision of this state and a county

 agricultural society.

Sec. 111. Section 81-15,174, Revised Statutes Supplement, 2003, is

amended to read:

81-15,174. The Nebraska Environmental Trust Fund is created. The

fund shall be maintained in the state accounting system as a cash fund.

Except as otherwise provided in this section, the fund shall be used to carry

out the purposes of the Nebraska Environmental Trust Act, including the

payment of administrative costs. Money in the fund shall include proceeds

credited pursuant to section 9-812 and proceeds designated by the board

pursuant to section 81-15,173. Any money in the fund available for investment

shall be invested by the state investment officer pursuant to the Nebraska

Capital Expansion Act and the Nebraska State Funds Investment Act.

The State Treasurer shall transfer nine hundred twenty-five thousand

dollars from the Nebraska Environmental Trust Fund to the Department of

Natural Resources Water Issues Cash Fund, as administratively created pursuant

to section 81-1111.04, on or after July 1, 2003, but no later than July 10,

 2003.

 ____________________________________________________________________ The State Treasurer shall transfer one million dollars from the

 ______________________________________________________________________________ Nebraska Environmental Trust Fund to the Water Resources Trust Fund on July 1,

 2004._____

 ______________________________________________________ Sec. 112. The State Treasurer shall transfer one million five

 ______________________________________________________________________________ hundred thousand dollars from the Petroleum Release Remedial Action Cash Fund

 ____________________________________ to the General Fund on July 1, 2004.

Sec. 113. Section 81-15,176, Revised Statutes Supplement, 2002, is

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amended to read:

81-15,176. (1) Subject to subsection (3) of this section, the board

shall establish environmental priorities for the trust. The board, after

allowing opportunity for public comment, shall designate as priorities those

environmental goals which most affect the natural physical and biological

environment in Nebraska, including the air, land, ground water and surface

water, flora and fauna, prairies and forests, wildlife and wildlife habitat,

and areas of aesthetic or scenic values. In designating environmental

priorities, the board shall attempt to focus on the areas which promise the

greatest opportunities for effective action to achieve and preserve the future

environmental quality in the state. The board shall establish priorities for

five-year periods beginning July 1, 1995, except that the board may make

annual modifications to refine and clarify its priorities. The board shall

provide for public involvement in developing the priorities for such five-year

periods, including public meetings in each of the three congressional

 districts.

(2) The board shall establish criteria for determining the

eligibility of projects for grant assistance, which criteria shall include the

 following:

(a) The grants shall not provide direct assistance to regulatory

programs or to implement actions mandated by regulations except remediation;

(b) No more than sixty percent of grant allocations in any year

shall assist remediation of soils or ground water, and no grants for this

purpose shall occur unless all other available sources of funding are, in the

opinion of the board, being substantially utilized;

(c) The grants shall not pay for projects which provide primarily

private benefits or relieve private liability for environmental damage;

(d) The grants shall not pay for projects which have direct

beneficiaries who could afford the costs of the benefits without experiencing

serious financial hardship;

(e) The grants should assist those projects which offer the greatest

environmental benefits relative to cost;

(f) The grants should assist those projects which provide clear and

direct environmental benefits;

(g) The grants should assist those projects which will make a real

contribution to achieving the board's environmental priorities;

(h) The grants should assist those projects which offer the greatest

public benefits; and

(i) The grants shall not pay for land or easements acquired without

the full and express consent of the landowner.

(3) Until the first five-year priorities become effective on July 1,

1995, the board shall observe the following priorities for allocating grants:

(a) Critical habitat areas, including wetlands acquisition,

preservation, and restoration and acquisition and easements of areas critical

to rare or endangered species;

(b) Surface water quality, including actions to preserve lakes and

streams from degradation;

(c) Ground water quality, including fostering best management

 ————————— ______________ practices as defined in section 46-656.07 46 of this act, actions to preserve

ground water from degradation, and remediation of soils or ground water; and

(d) Development of recycling markets and reduction of solid waste

volume and toxicity.

(4) The board may refine and clarify these initial priorities.

Sec. 114. Sections 3, 4, 93, 110, and 117 of this act become

operative on July 1, 2004. This section and sections 111, 112, 115, 116, and

120 of this act become operative on their effective date. The other sections

of this act become operative three calendar months after the adjournment of

this legislative session.

Sec. 115. If any section in this act or any part of any section is

declared invalid or unconstitutional, the declaration shall not affect the

validity or constitutionality of the remaining portions.

Sec. 116. Original section 81-15,174, Revised Statutes Supplement,

2003, is repealed.

Sec. 117. Original sections 2-3225 and 77-3442, Reissue Revised

Statutes of Nebraska, and section 13-520, Revised Statutes Supplement, 2002,

 are repealed.

Sec. 118. Original sections 2-1586, 46-229.02, 46-229.03, 46-2,127,

46-609, 46-651, 46-656.03, 46-656.04, 46-656.08, 46-656.11, 46-656.13,

46-656.21, 46-656.32, 46-656.35 to 46-656.37, 46-656.39, 46-656.41 to

46-656.48, 46-656.64, 46-680, 46-1207.01, 46-1207.02, 46-1212, 46-1228,

61-206, 66-1501, 66-1519, 66-1523, 66-1525, 66-1529.02, and 77-27,137.02,

Reissue Revised Statutes of Nebraska, sections 2-1588, 46-226.03, 46-229,

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46-229.04, 46-230, 46-235.04, 46-237, 46-261, 46-290 to 46-296, 46-2,112,

46-2,119, 46-2,132, 46-2,135, 46-601.01, 46-613.02, 46-653, 46-656.05,

46-656.14, 46-656.19, 46-656.25 to 46-656.27, 46-656.31, 46-656.33, 46-656.38,

46-656.40, 46-656.62, 46-656.63, 46-656.65 to 46-656.67, 46-676, 46-678.01,

and 81-15,176, Revised Statutes Supplement, 2002, and sections 46-241, 46-602,

46-656.01, 46-656.02, 46-656.07, 46-656.10, 46-656.12, 46-656.24, 46-656.29,

and 46-656.30, Revised Statutes Supplement, 2003, are repealed.

Sec. 119. The following sections are outright repealed: Sections

46-656.06, 46-656.09, 46-656.17, 46-656.18, 46-656.20, 46-656.22, 46-656.23,

and 46-656.49, Reissue Revised Statutes of Nebraska, and sections 46-656.15,

46-656.16, 46-656.28, and 46-656.50 to 46-656.61, Revised Statutes Supplement,

 2002.

Sec. 120. Since an emergency exists, this act takes effect when

passed and approved according to law.

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