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Location: Alberta Government > Environment > Water > Legislation > Water Act Fact Sheet - Transfer of Allocation of Water Under A Licence

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Water Act Fact Sheet Transfer of Allocation of Water Under A Licence   Need for a Transfer System Under the Water Resources Act a licence granted a right to divert a volume of water from a specific source of water supply under specific terms and conditions. The licence was attached to the specific land or project for which it was issued, and if the land or project was sold, the licence passed to the subsequent owner. Other than purchasing the land or project to which a licence was attached or applying for a licence, there were generally no other easily accessible methods to acquire a licence for the diversion of water. As well, once a licence was obtained it must continue to be used for the purposes for which it was issued. Under this licencing system, it is very difficult to accommodate new or alternative users in areas of the province where the allocation of water is reaching or has reached its maximum. The Government recognized the need to increase the flexibility of the licencing system and introduced the ability to transfer or "detach" the rights associated with a licence from the land or the project to which it is attached. The transfer system, as it is referred to in the new Act, provides a tool to accommodate new or alternative water uses in areas where the allocation of water has reached its limit.   Water Act The new Act provides the ability to transfer an allocation of water under a licence. It is clearly stated that what is being transferred is the right to divert a volume of water from a source of water supply under a certain priority - there is no physical transfer of water from the land. A transfer of all allocation of water under a licence is voluntary, with a willing seller and willing buyer. Since the transfer system is new, the Government will closely monitor the transfer system through a number of control mechanisms. The control mechanisms under the new Act include requiring that a transfer must first be authorized in a water management plan or through an order of Cabinet, a transfer must be reviewed by the Government through a review process, and that the Government may withhold a percentage of the water that is being transferred. As well, in response to comments from Albertans on the potential long-term impact of the transfer system on the basic requirements for water, the new Act specifically states that the rights related to household purposes and registrations pertaining to traditional agriculture uses are not subject to the transfer provisions. Such rights will always remain attached to the land. Transfers can be made on either a permanent or a temporary basis. A temporary transfer is where the transferred allocation of water reverts back to the original licencee after a specified time period. Upon transfer of a licence, the new Act also provides the ability for the Government to withhold up to 10% of the water that is being transferred. The ability to holdback water for a transfer must first be authorized in an approved water management plan or through an order of Cabinet. The water that is withheld will generally remain in the water body to meet the needs of the aquatic environment and is not available for reallocation for other uses. The holdback of water is applicable to both permanent and temporary transfers of allocations.   Review Process Under the new Act, an application for a transfer must be made to the Director. While the new Act sets out the considerations that must be made by a Director in assessing an application, the applicant for a transfer may also be required to: provide any additional information, including any necessary rights of way to the Director; and participate in a public review of the proposed transfer - depending on the magnitude and potential impact of the proposed transfer, this may range from the applicant placing a notice in a local area newspaper requesting input, to a more formal review process involving public meetings. Factors that can be considered in the course of assessing an application for transfer, include matters and factors that are specified in an approved water management plan, existing, potential or cumulative effects on the aquatic environment or other water users, effects on public safety or the allocation of water that has been historically diverted under the licence. Once a decision on the application for transfer is made, a new licence for the transferred allocation of water will be issued. The new licence will retain the original priority number of the licence from which the transfer is being made. The licence from which the transfer is being made will be amended if only a portion of the entire allocation has been transferred or if the transfer relates to a temporary transfer. Alternatively, if the transfer is for the entire allocation of water, the licence from which the transfer is being made will be cancelled.

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