This Policy is Inactive
Expired on:

Processing Well Ownership Changes on Public Land

AZ-IM-2019-001
Instruction Memorandum
Expires:09/30/2021
United States Department of the Interior
BUREAU OF LAND MANAGEMENT
Arizona State Office
One North Central Avenue, Suite 800
Phoenix, Arizona  85004-4427
 
November 9, 2018
In Reply Refer To:
7250, 4100 (9300) P
 
EMS TRANSMISSION 11/9/18
Instruction Memorandum No. AZ-IM-2019-001
Expires:  9/30/2021
 
To:                  District Managers and Field Managers
    Attention:  Range Management Specialists, Hydrologists,
    Assistant Field Managers
 
From:              Deputy State Director, Resources, Planning and Fire
 
Subject:           Processing Well Ownership Changes on Public Land
 
Program Area:  Water Rights, Grazing Administration
 
Purpose:  This Instruction Memorandum (IM) clarifies the procedures to be followed to ensure timely consideration of ownership changes for wells that occur on public land.
 
Policy/Action:  When the BLM Arizona (BLM AZ) receives notice of a request to have ownership of wells on public land changed, field offices will determine if such an action is acceptable to BLM AZ, as landowner.
 
The BLM AZ personnel are likely to become aware of an ownership change request by one of two methods:
  1. The permittee/lessee files Arizona Department of Water Resources (ADWR) Form 55-71A (Request to Change Well Information,) then receives notice from ADWR stating that ownership changes cannot be processed on lands managed by the BLM, which then usually leads to the permittee/lessee or their representative making contact with the BLM
  2. The permittee/lessee contacts BLM AZ prior to filing ADWR Form 55-71A to discuss their intent to change ownership of wells on public land.  Regardless of how BLM AZ receives notice of the intent to change ownership, a similar process is used to determine if BLM AZ will support the change.
A.   Screening and Assessment of Ownership Changes
  1. Range Management Specialists will search the Grazing Case Files, Range Improvement Project Files, and Range Improvement Project System to determine if a Range Improvement Permit (aka Section 4 Permit) or a Cooperative Rangeland Improvement Agreement is in place at the location of the well and further determine if the permit/agreement specifically mentions use of water from the well.  It is imperative to note if the files mention installation, use, and maintenance for wells especially any cost sharing between the BLM and permittee/lessee.  If the well was previously authorized by the BLM, a Rangeland Improvement File would have been created containing copies of all documents, including pertinent papers such as cooperative agreements or historical records of the project.  The file would also include such information as the location analysis, environmental analysis, design rationale, condition surveys, technical inspection and appraisal reports, as-built drawings, and maintenance records.  In addition, the file would contain the inspector’s log and well log from contract files (H-4010-1).  Specific instructions for establishing and maintaining project files are found in H-1740-1.
  2. The State Office or Field Office hydrologists will search ADWR’s Wells 55 files to assess available information for each well.
  3. Field Office personnel will coordinate with their hydrologist (for the Gila District contact the Safford or Tucson hydrologist and for the rest of BLM AZ contact the State Office hydrologist) to assess if BLM AZ should give permission to change ownership for wells.
  4. Wells with sufficient information or authorized under a Range Improvement Permit (Section 4 Permit) will be assessed by BLM AZ for permission to allow a change in ownership.  Wells authorized under a Cooperative Rangeland Improvement Agreement with the BLM cost sharing will be registered with ADWR listing BLM as the owner. Wells not authorized by Permit or Agreement will be assessed using all available information (e.g. original well driller log, original well driller invoice, permittee documentation, etc.) to determine if permission to change ownership is appropriate.

B.   Documenting BLM’s Permission to Change Ownership

       One of two reporting mechanisms will be used to convey to ADWR that the BLM is giving permission to change ownership of a well(s) on public land.

  1. Form 55-73 (Landowner Authorization to Register a Well of Record in a Third Party’s Name) may be used, but each well must have an individual Form 55-73 completed and attached to the appropriate permittee filled-out Form 55-71A.  This option makes sense for single or just a few well changes.
  2. Official letter stating that BLM AZ is giving permission to change ownership on a group of wells, listing each well by ADWR’s Well Registration Number, with signature by Field Manager, District Manager, or Deputy State Director (Resource, Planning and Fire).  The letter will be included with the packet of permittee filled-out Forms 55-71A sent to ADWR; subsequently ADWR will attach the letter to each well file.  This option makes sense for changes to a group of wells.
  3. Update or create a Range Improvement File, if no file can be located, as per guidelines and procedures in BLM manual and handbook guidance.  See H-4010-1 Rangeland Management Records, H-1740-1 Renewable Resource Improvements and Treatment Guidelines and Procedures, and H-1740-2 Water Developments.  Place a copy of the aforementioned Official BLM letter and Forms 55-73 in the Range Improvement Project Files.
Timeframe:  For Immediate Implementation.
 
Budget Impact:  None.
 
Background:  Permittees are filing requests to change well ownership for wells on public land and are receiving notice from ADWR that the change of ownership cannot be processed due to receipt of a letter from BLM AZ requesting that ownership not be changed for wells on public land.  The ADWR foretold the need for an official form that would allow ownership changes with permission of the landowner (Form 55-73).
 
The owner of wells listed by ADWR is not a legally binding determination of who actually owns a well.  The listed well owner is meant as a point of contact for ADWR if questions arise.  The State of Arizona considers landowners to be the owner of all wells on their land.
 
Instruction Memorandum No. AZ-P-IM-2018-005 discusses wells as base waters.  The process to assess the appropriateness of ownership changes remains the same for all wells on public land regardless of whether they are considered base or supplemental waters.
 
Directives Affected:  None.
 
Contact:  If you have questions about water rights, please contact Mark D’Aversa, State Office Hydrologist, at (208) 524-7596, or by email at msdaversa@blm.gov, or David Murray, Tucson Field Office Hydrologist, at (520) 258-7256, or by email at drmurray@blm.gov.  For range and base water questions, please contact Bill Coulloudon, State Office Rangeland Management Specialist, at (602) 417-9439, or by email at acoullou@blm.gov.
 
SIGNED BY:                                                  AUTHENTICATED BY:
Jody L. Weil                                                   Susan Williams
Deputy State Director                                     Staff Assistant
Resources, Planning and Fire