Ariz. Rev. Stat. § 45-292 – Approval required to transport water out of state; application; fee; criteria; hearing

A. A person may withdraw, or divert, and transport water from this state for a reasonable and beneficial use in another state if approved by the director pursuant to this article. A person shall not transport water from this state unless approved by the director, but this article does not apply to or prohibit transporting water from this state as required by interstate compact, federal law or international treaty.
B. An application to transport water from this state for use in another state shall be filed with the director, including a fee established by the director by rule. In establishing a fee by rule, the director may consider factors including the amount of time likely to be expended in processing the application, the amount of preexisting hydrological information available, if any, and the complexity of the application. The application shall include:
1. 1. The name and address of the applicant's statutory agent in this state for service of process and other legal notices.
2. 2. The legal basis for acquiring the water to be transported.
3. 3. The purpose for which the water will be used.
4. 4. The annual amount of water in acre-feet for which the application is made.
5. 5. The proposed duration of the permit, not to exceed fifty years with an option to renew.
6. 6. Studies satisfactory to the director of the probable hydrologic impact on the area from which the water is proposed to be transported.
7. 7. Any other information which the director may require.
C. The director shall approve or reject the application. If the director approves the application, the director may prescribe terms and conditions for the approval. In determining whether to approve the application the director shall consider:
1. 1. Whether the proposed action would be consistent with conservation of water, including any applicable management goals and plans.
2. 2. Potential harm to the public welfare of the citizens of this state.
3. 3. The supply of water to this state and current and future water demands in this state in general and the proposed source area in particular.
4. 4. The feasibility of intrastate transportation of the water that is the subject of the application to alleviate water shortages in this state.
5. 5. The availability of alternative sources of water in the other state.
6. 6. The demands placed on the applicant's supply in the other state.
7. 7. Whether the proposed action is prohibited or affected by other law, including sections 45-165 and 45-172 and chapter 2 of this title.
D. This article does not authorize and the director shall not approve transporting from this state water allocated to this state by federal law or interstate compact.
E. An administrative hearing shall be held on the application, and the director shall give notice of the hearing by publication once a week for three consecutive weeks in a newspaper of general circulation in the county or counties from which the applicant proposes to transport the water. The hearing shall be conducted in the area from which water is proposed to be transported. Any interested person, including the department, may appear and give oral or written testimony on all issues involved.
F. Section 45-114, subsections A and B govern administrative proceedings, rehearing or review and judicial review of final decisions of the director under this section.
G. The director shall deposit, pursuant to sections 35-146 and 35-147, all fees received under this section in the water resources fund established by section 45-117.