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NORTH DAKOTA STATUTES AND CODES

61-21.1 Water Project Development

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CHAPTER 61-21.1WATER PROJECT DEVELOPMENT61-21.1-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1."Commission" means the state water commission.2."Cost of works" means necessary costs for designing, engineering, surveying, and
construction of a water project.3."Landowner" means any person who holds ownership rights in real estate sufficient
to have a legally protectable interest in the real estate, including a tenancy or
leasehold interest.4."Lender" includes the Bank of North Dakota.5."Person" does not include any governmental entity or an urban or rural water users
association.6."Water project" means any project for conserving, draining, and distributing water,
including reservoirs, dams, diversion canals, distribution canals, channels, ditches,
lateral ditches, drains, dikes, and pumping units, constructed for the purpose of
irrigation, watering stock, or supplying water for domestic, agricultural, recreational,
fish and wildlife use, flood control, drainage, water conservation and regulation,
storage, diversion, or carrying of water.61-21.1-02.Industrial commission to issue bonds - Program administered byagriculture commissioner. Bonds may be issued by the industrial commission pursuant to
chapter 4-36 for the purpose of making loans to lenders and requiring the proceeds of the loans
to be used by the lenders to make loans to landowners for water projects.The industrialcommission, for the administration of the program established pursuant to this chapter, may
delegate to the agriculture commissioner, and the agriculture commissioner is authorized to
exercise, all administrative powers granted to the industrial commission pursuant to chapter 4-36.61-21.1-03.Contents of application - Approval by water commission.A waterproject and the cost of works must be approved by the commission before a loan to finance the
cost of works is eligible to be made by a lender with the proceeds of a loan from the industrial
commission.An application for approval must be in writing in a form prescribed by thecommission and must include:1.The name and address of the applicant;2.An economic analysis of the water project;3.An engineering analysis of the water project;4.An analysis of the water project's impact upon surrounding land and landowners;5.Copies of all governmental permits and licenses and private rights or permissions
required to complete the water project;6.Maps, plans, and other documentation describing the water project and its location;7.Proof of the necessary ownership rights to construct the water project; and8.Any other information the commission may require.Page No. 161-21.1-04. Review of applications - Conditions - Approval. An applicant shall submitthe application to the commission. The commission shall review all applications received. If the
commission determines that further information is required or that the proposed water project is
not meritorious or feasible, the application must be returned to the applicant. Upon return of the
application, an applicant may provide the information or make necessary modifications and refile
the application. An application that has been returned twice may not be resubmitted without prior
approval of the commission. If no further information is required and the commission determines
that the proposed water project is meritorious and feasible, the commission shall approve the
application and forward it to the agriculture commissioner.61-21.1-05. Meritorious and feasible water project - Determination. A water projectis meritorious and feasible if it meets the following criteria:1.The benefit of the water project must exceed all costs of the water project, or be
beneficial for water conservation, fish and wildlife, and recreation use.2.The water project must be designed, engineered, surveyed, and constructed in a
safe manner using existing proven knowledge and techniques.3.All governmental permits and rights and private rights or permissions required to
complete the water project must be obtained.61-21.1-06.Eminent domain unaffected.The approval or provision of financialassistance for any water project under this chapter does not change the right of any entity to
exercise the power of eminent domain. The exercise of the power of eminent domain under this
chapter is subject to chapter 32-15.61-21.1-07.Assumption of liability - Condition to obtaining funding.The stateassumes no liability and provides no guarantee that a water project that is financially assisted
under this chapter will not cause damages or will operate as expected. In order to obtain any
financial assistance under this chapter, a landowner shall agree in writing to indemnify and hold
harmless the state, its employees, and its agents and assigns, for any liability or claim of liability
arising from the establishment, construction, reconstruction, repair, maintenance, or operation of
the water project.Page No. 2Document Outlinechapter 61-21.1 water project development

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