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Water...it's Valuable to Your Property

Management of the water resource dates back to 1894.  Although the Crown owns all water, its availability and access has recently gained greater importance in relation to property values and the rights of agricultural, industrial, and household users.  One can only assume as our population grows, so will the pressure on our limited water resources.

Household or licensable water sources consist of surface water, dams, dugouts, runoff, or diversion of streams or rivers.

According to the Water Act, and subject to municipal or city restrictions, household users (including acreage owners) have a statutory right that requires no license or registration.  This right allows up to 1,250 cubic metres of water use annually for the purposes of human consumption, sanitation, fire prevention, and for watering animals, gardens, lawns and trees.  This usage has priority over all other water uses, licenses, or registrations.

Traditional Agricultural Registration under the Water Act was available from January 1, 1999 to December 31, 2001.  This registration process provided agricultural users (raising animals or pesticide application) the ability to gain priority for up to a maximum of up to 6,250 cubic metres of water use annually based on prior usage. Once registered, they received a stamped registration with the official registry residing in the Alberta Environment database.  The registrations stay with the land and do not expire.  Subsequent owners of properties to which a registration is appurtenant may use the registration for its intended purposes.  The water registration may not be separately bartered, sold, or leased apart from the land.

If a Traditional Agricultural User failed to register their historical use prior to December 31, 2001, or had water use exceeding 6,250 cubic metres, they will be required to obtain a license or be limited to household use restrictions.  Licensing should be kept current and completed well before any contemplated land sale.  All other uses such as commercial, municipal, and industrial require licensing.

The term of a license is subject to a water management plan.  If no water management plan is in place the Director may make a decision on the term of the license based on site-specific criteria.  At present agriculture and municipal licenses are generally issued for 25 years, but may be less depending on the circumstances.  Water Act licenses are usually renewable, however industrial users may be given shorter terms.  Registrations and Water Resources Act licenses issued prior to January 1, 1999 do not expire.

In obtaining a license the first step is to contact Alberta environment for the application forms and a Groundwater Evaluation Guideline.  If the license is for less than 3,650 m², Alberta Environment handles the application using the Groundwater Evaluation Guideline, gives public notice (at the applicants expense), and approves or disapproves the application.  If the application is for greater than 3,650 m², a groundwater evaluation is conducted by a professional hydro geologist at the applicants expense, public notice is given (at the applicants expense), and a notice of decision is sent to the applicant.

Where there is a water management plan in place there is potential to transfer a Water Act license. It is not necessarily attached to the land, in the way registrations are.  In the event of a water shortage or in the event water restrictions are imposed, registrations and licenses may compete for priority based on their historical usage.  For example, a license granted in 1990 will have priority over a registration where the user began using the water in 1993.

As a result, water and the right to use certain amounts in the future will be an important aspect when purchasing land.  It will be important to make sure a seller has the necessary approvals for the purchasers expected water use, especially in intensive livestock situations.  It will also be a factor in assessing the value of the land.

In the event you are purchasing land, you need to assess the existence of water registrations or licenses.  The advantage of a water registration or license is the earlier priority to the water.  For both, prospective landowners should contact Alberta Environment for ownership amendments.

The license will state a license number, priority, volume licensed, date of expiry and date of issue.  Every license will have conditions outlining, among other things, land location, source, rate of diversion, monitoring and reporting.

For detailed or site-specific information, interested persons should contact the office of Alberta Environment in the area in which they reside.

Special thanks to Lois Collier from Alberta Environment Red Deer.

By Jeff Carlson
December 10, 2003