(1) As used in this section:
(a) "Agricultural land" means land in agricultural use, as defined in Section 59-2-502.
(b) "Dedicated water" means water that has been recognized for delivery or use under Section 73-3-30 and a dedicated water application.
(c) "Dedicated water application" means an application to change the existing nature of use and place of use for a water right by adding a nature of use for:
(i) an instream flow within a specified reach of a natural or altered stream;
(ii) use on sovereign lands; or
(iii) a project to deliver water to a reservoir located partially or entirely within the Colorado River System in the state in accordance with this section.
(d) "Split season use" means making sequential use of a portion of a water right in the same calendar year.
(2) A dedicated water application may:
(a) be filed for:
(i) a fixed period of time; or
(ii) an indefinite period of time; and
(b) include a split season use.
(3) Approval of a dedicated water application does not:
(a) change an existing element of the underlying water right;
(b) extend the time for filing proof or taking other required action associated with the underlying water right; or
(c) require the applicant to make dedicated water available for use in a given year or in a specific quantity or volume.
(4)
(a) The state engineer shall process a dedicated water application in accordance with Sections 73-3-3 and 73-3-8.
(b) The state engineer shall prioritize the processing of a dedicated water application.
(c) The state engineer may deny a dedicated water application if the state engineer determines that the dedicated water application would result in land being removed from agricultural land for a full irrigation season in more than two years out of a five-year period on the same agricultural field.
(5) The state engineer may require an owner of an approved dedicated water application under this section to provide:
(a) annual notice of intent to exercise the dedicated water application;
(b) information about the annual volume of water to be dedicated by the owner from the underlying water right; and
(c) other information the state engineer considers necessary to:
(i) ensure the dedication of water is taking place;
(ii) establish that the owner still has a legal interest in the underlying water right used as the basis for the dedication of water; or
(iii) determine the quantity of water being dedicated.
(6) An approved dedicated water application lapses:
(a) automatically on the date the underlying water right that is the basis of the dedicated application:
(i) lapses;
(ii) is withdrawn; or
(iii) is declared forfeited or abandoned; or
(b) upon notice from the state engineer if:
(i) the applicant no longer holds a legal interest in the underlying water right that is the basis of the dedicated water application;
(ii) the delivery of dedicated water can no longer be carried out as stated in the dedicated water application;
(iii) the applicant has not complied with the conditions established by the state engineer in the order approving the dedicated water application; or
(iv) the applicant fails to provide the information requested by the state engineer under Subsection (5).