2023 Colorado Revised Statutes › Title 7 - CORPORATIONS AND ASSOCIATIONS (§§ 7-1-101 — 7-137-301) › CORPORATIONS (§§ 7-1-101 — 7-52-106) › SPECIAL PURPOSE CORPORATIONS (§§ 7-40-101 — 7-49.5-107) › Article 42 - DITCH AND RESERVOIR COMPANIES (§§ 7-42-101 — 7-42-118) › Section 7-42-101 - Additional statements in certificates - mutual ditch corporation shares

(1)
When three or more persons associate under the provisions of law to form a corporation for the purpose of constructing a ditch, reservoir, pipeline, or any part thereof to convey water from any natural or artificial stream, channel, or source whatever to any mines, mills, or lands or for storing the same, they shall in their articles of incorporation, in addition to the matters otherwise required, state: The stream, channel, or source from which the water is to be taken; the point or place at or near which the water is to be taken; the location, as near as may be, of any reservoir intended to be constructed; the line, as near as may be, of any ditch or pipeline intended to be constructed; and the use to which the water is intended to be applied.
(2)
A corporation formed under the "Colorado Revised Nonprofit Corporation Act", articles
121
to
137
of this title, shall have all of the rights and powers granted by this article to the extent not inconsistent with said act, if such nonprofit corporation otherwise complies with the terms and provisions of this article.
(3)
In the case of a municipal corporation, county, special district, or entity, as that term is defined in section
7-90-102
, that is a member or stockholder of a corporation described in subsection (1) or (2) of this section, an individual officer, partner, member, manager, agent, or employee of the municipal corporation, county, special district, or entity as designated by the municipal corporation, county, special district, or entity is eligible for election to serve as a director of the corporation irrespective of the fact that such individual is not a member or stockholder of the corporation.
(4)
(a)
Subject to any decree for the water rights held in the name of a mutual ditch corporation and to a mutual ditch corporation's articles of incorporation or bylaws, a mutual ditch corporation delivering direct flow water rights may provide water to only water-requesting stockholders, including stockholders that own shares for which a change in use has been adjudicated or approved. Consistent with each stockholder's request and the available water supply, a mutual ditch corporation may provide water at rates of flow greater or less than each stockholder's pro rata ownership of shares in the corporation. When total stockholder demand exceeds available water supply, a mutual ditch corporation shall provide, to the extent possible, a pro rata amount of water to all stockholders that are requesting water, either simultaneously or, if necessary, by rotating among stockholders in sections or by other equitable methods as determined by the corporation.
(b)
Subject to subsection (4)(c)(IV) of this section, if a water court decree authorizing the change in use of the water rights represented by mutual ditch corporation shares contains volumetric limits on the amount of water deliverable to the changed shares, water diverted and delivered by the mutual ditch corporation only counts against the changed stockholder's volumetric limits if the stockholder, or its lessee or designee, takes delivery in accordance with the change in use decree.
(c)
A court shall not construe this subsection (4):
(I)
(A)
To supersede or abrogate the conditions of any final water court decree entered before September 7, 2021; or
(B)
To apply to any water court application for which a trial was held before September 7, 2021, or to an appeal of any water court decision or decree resulting from such a trial;
(II)
To impede or prevent a stockholder from changing the type of, place of, time of use of, or point of diversion of the water rights represented by the shares in a mutual ditch corporation;
(III)
To require or prohibit a reduction in the flow rate available to a stockholder or mutual ditch corporation when the type of, place of, time of use of, or point of diversion of the water rights represented by the shares is lawfully changed;
(IV)
(A)
To amend or modify the standards in section
37-92-305
for water court approval of a change in use; or
(B)
To amend or modify the court's ability to order conditions necessary to prevent an enlargement upon the historical use of water rights for which a change is sought or to prevent a diminution of return flow historically resulting from the use of the changed shares to the detriment of other appropriators; or
(V)
To impair the ability of a stockholder to enter into a program identified in section
37-92-305 (3)(c)
or to enter into an acquisition transaction provided for in either section
37-92-102 (3)
or
37-83-105
.
Amended by 2021 Ch. 161, § 1, eff. 9/7/2021.
G.L. § 274. G.S. § 308. L. 1891: p. 97, § 1. R.S. 08: § 988. C.L. § 2353. CSA: C. 41, § 141. CRS 53: § 31-14-1. C.R.S. 1963: § 31-14-1. L. 67: p. 656, § 5. L. 92: Entire section amended, p. 248, § 1, effective March 24. L. 97: (2) amended, p. 756, § 8, effective 7/1/1998. L. 2003: (1) and (2) amended, p. 2205, § 14, effective 7/1/2004. L. 2009: (3) amended, (HB 09-1248), ch. 1136, p. 1136, § 23, effective May 14.