WATER AUDIT

A Buyer of water rights is only interested in buying valid water rights from a Seller. The Buyer does not want to prove the validity of the water rights. That is the job of the Seller. WaterBank® does not want to represent water rights that are not valid to a Seller. Therefore, WaterBank® requires sufficient information as to the validity of the water rights. This is obtained from a Water Audit.

A Water Audit is the process by which WaterBank® examines the records of State Agencies and public and private files to determine if a valid water right exists. It is a quick overview of the file. It is not a conclusive determination. It may involve a title search or preparation of a chain-of-title. Old deeds commonly contain information on land use. Only the examination of the file and a determination by a State Engineer is conclusive.  We follow the same process used by State Engineers and water courts.  Our Water Audits greatly facilitate the validation by State Engineers.

In the Middle Rio Grande Valley of New Mexico, for example, the Water Audit may examine the following documents:

1. U.S. Bureau of Land Management Survey Maps and Field Notes beginning in the 1850's

1. Sanborne Fire Insurance Maps

2. Railroad Right of Way and Property Maps beginning in the 1880's

3. Railroad Right of Way Warranty Deeds

4. U.S. Department of Agriculture, Soil Survey Maps of 1912

5. Middle Rio Grande Drainage Survey Maps of 1917 to 1918

6. MRGCD Plane Table Maps of 1927

7. Appraisal Sheets of 1923

8. Aerial Photography beginning in 1935

9. Tax Records beginning in the 1880's

10. Census data beginning in 1880

11. Court records

12. Old U.S. Geological Survey Topographic Maps

13. Old Spanish and Mexican Land Grant Deeds

14.  Small Holding Claims Deeds and Land Patents.

15. Old County survey records.

16.  Old photography

If examination of these documents indicates continuous historical beneficial  use we believe the water rights are valid.  We prepare a write up on our research with copies of all relevant documents for the client.  The write up also assists the State Engineer and speeds up the processing of applications.

The Water Audit generally takes a full day by our experienced staff.  In some difficult cases it may take several days.  WaterBank® charges an initial fee of $950 for the first tract. If multiple tracts of land must be audited and if the tracts are contiguous or close to one another, WaterBank® will complete the other tracts for $250 per tract.  In some difficult cases, we charge at an hourly rate plus materials.   This is not considered part of the brokerage fee. If additional work is required WaterBank® will notify the client and obtain client permission before proceeding.