N.J. Admin. Code § 7:19-8.7

Current through Register Vol. 56, No. 21, November 4, 2024

Section 7:19-8.7 - Base allocation and water supply allocation credit transfer procedure

(a) A permittee seeking to transfer all or part of its base allocation or the permittee seeking to obtain water supply allocation credits shall submit an application to the Department which shall include the following:

1. A map showing the locations of the wells from which the base allocation is proposed to be transferred and the location of the receiving wells. Wells shall be identified by the Department's well permit number;

2. The aquifer and amount of base allocation or water supply allocation credits to be transferred;

3. An assessment of the impact of the transfer on the water resource and other users of the resource in the vicinity of receiving wells; and

4. Information demonstrating that the sending party's demands can be met after the transfer of the base allocation.

(b) The Department shall approve, subject to other applicable requirements of this chapter, a permanent transfer of any or all of a permittee's base allocation to another permittee through a permit modification in accordance with 7:19-2.2, provided that the transfer will not result in:

1. A diversion which is from an aquifer different from that in which the sending well is located;

2. A diversion which is closer to the salt water interface, or is at a lower potentiometric surface than the sending well, and further degrades the condition of the water supply source; and

3. The sending party's inability to meet its water supply demands.

(c) The Department will not approve a transfer of base allocations or water allocation credits if the receiving party does not develop and implement an appropriate water conservation and drought management plan pursuant to 7:19-2.14(a)10 or if the alternative water supply plan required pursuant to 7:19-8.3(d) is not in accordance with the water supply alternatives adopted by the Department pursuant to 7:19-8.3(a)4.

(d) The receiving party's use of the water does not have to be for the same purpose as the sending party's use of the water.

(e) Any wells for which the total diversion privileges have been transferred shall be sealed in accordance with N.J.A.C. 7:9-9.

(f) If, because of the receipt of the transferred base allocation or water supply allocation credits, the receiving party would require a new diversion source, an increase in pumping capacity, or an increase in monthly and/or yearly allocation, the receiving party shall apply for a permit modification in accordance with 7:19-2.2.

(g) If the purchase of additional base allocation or water supply allocation credits is solely for the purpose of replacing water allocation reduced as a result of Department-implemented action, this will be considered a minor modification of the permit. Upon receipt of notification that the transaction has been completed, the Department will proceed in accordance with 7:19-1.5(b).

(h) If the sending party retains diversion rights in excess of 100,000 gallons per day, the reduction in allocation will be considered a minor modification of the permit. Upon receipt of notification that the transfer has been completed, the Department will proceed in accordance with 7:19-1.5(b).

N.J. Admin. Code § 7:19-8.7

New Rule, R.1995 d.162, effective 3/20/1995.
See: 26 New Jersey Register 4912(a), 27 New Jersey Register 1265(a).