Montana Title 77. State Lands § 77-6-115. Acquisition of water right by lessee--limitation

(1) Subject to subsection (4), the lessee of state lands may at any time prior to 1 year before the expiration of the lease make application to the board for permission to secure a water right to the land under the lease. The application must be in writing and must show how much of the land can be irrigated, the permanency of the water supply, and the probable cost of placing the land under irrigation. If the proposed plan meets with the approval of the board, permission must be granted the lessee to secure the desired water right for the land and to place the land under irrigation.

(2) Subject to subsection (4), if the water right becomes a permanent and valuable improvement, then in case of the sale or lease of the land to other parties, the former lessee is entitled to receive compensation in the amount of the reasonable value of the water right, as in the case of other improvements, from the new lessee or the purchaser.

(3) These provisions may not be construed to make the state liable to the lessee for the payment of the cost or value of the irrigation improvements.

(4) A water right acquired under this section may not interfere with a water right used in conjunction with a structure described in 77-1-134.