Conservancy District

The Watershed Stewardship Section reviews a petition to create a conservancy district that is forwarded to the section by the NRC. DNR will review the petition, attend any public meetings set up by the NRC, and provide a recommendation report to the NRC.

According to the NRC Nonrule Policy #36, conservancy districts are required to submit district plans to DNR for review and approval when ordered by the court. District plans must be submitted for approval within 120 days after the appointment of board members. The Watershed Stewardship Section will also respond to time extension requests for developing a district plan. The DNR District Plan Development Guidelines details what information should be included in a district plan.

If an addition of area is initiated with the circuit court, the NRC Division of Hearings will send a report to the Watershed Stewardship Section for review. DNR will review the proposed addition and determine if the proposed addition of territory is de minimis. DNR will provide a recommendation report to the Natural Resources Commission for their consideration. After that, the Division of Hearings will issue a fact-finding report to the NRC for approval.

If an addition of area is initiated with the board of directors, the addition request will be forwarded to the Watershed Stewardship Section from the NRC for review. DNR will provide a recommendation report to the NRC for their consideration.

According to the NRC Nonrule Policy #36 and IC 14-33-6-8, all units of work proposals should be submitted to the Watershed Stewardship Section for review and approval. A unit of work is a stand-alone project with drawings, specifications, and cost estimates. Approval from the Watershed Stewardship Section office should be obtained before the board schedules a public hearing for that unit of work. Examples of units of work could consist of dredging, construction projects, ecological restoration projects, and extensive structure repair or rebuild. It does not include yearly maintenance activities like mowing, spraying, clearing, inspections, and operational activities.

The proposal to add a purpose is forwarded to the Watershed Stewardship Section from the NRC Division of Hearings. The Watershed Stewardship Section will review the proposal and provide a recommendation report to the NRC Division of Hearings.

• Developing forests, wildlife areas, parks, and recreational facilities if feasible in connection with beneficial water management.
• The operation, maintenance, and improvement of a work of improvement for water based recreational purposes; or another work of improvement that could have been built for any other purpose authorized by the Act.

• Often a local steering group first forms to research the issues and gather input from those who would benefit or be affected.
• To form a district, a petition is created and then circulated in the area to be included in and served by the proposed district. This petition is then filed in the circuit court of the county having the most land in the proposed district.
• The percentage of signatures needed for a successful petition depends on the number of freeholders owning land in the proposed district or proportion of all freeholders in the proposed district.
• A municipality may file a petition to initiate a proposed district by ordinance adopted by the legislative body.
• A reservoir conservancy district may be formed by freeholders provided it includes part or all of a reservoir located partially or within a consolidated city; and at least 25% of the surface of the reservoir is owned by a utility governed by a board of directors for utilities.
• Once the circuit court determines the petition bears the necessary signatures and is correct as to form and content, the court will refer the petition to the Natural Resources Commission (NRC).
  The NRC conducts a public hearing, gathers comments, and prepares a report to the court. The DNR Division of Water conducts a technical review that includes whether the proposed district:
  • Appears to be necessary.
  • Holds promise of economic and engineering feasibility.
  • Offers benefits in excess of costs and damages.
  • Serves the public health immediately or prospectively.
  • Proposes to cover and serve a proper area.
  • Could be compatible with other water management or water supply projects.
• When the circuit court receives the fact-finding report from the NRC, the court will schedule a hearing regarding the establishment of the district. The statute provides an opportunity for additional evidence to be presented at this hearing.

• Boundaries of a conservancy district are based upon the identification of properties expected to be benefited by the establishment of the district.
• Any area may be included in a district regardless of its political boundaries; however, the district needs to be contiguous with all other parts of the district and cannot overlap another district established for the same purpose.

• A circuit court determines whether to approve the establishment or dissolution of a conservancy district and has jurisdiction for oversight of an existing conservancy district.
• Budgets passed by the board of directors must also be approved by the Department of Local Government Finance.
• Conservancy districts are required to submit annual budgets and expenses and are also subject to periodic audits by the State Board of Accounts.
• Permits from various local, State and Federal agencies may be required for various work conducted by a conservancy district

• Freeholders serve on the board of directors and provide management for a district.
• After a conservancy district is established by the circuit court, an initial board of directors is appointed by the county commissioners.
• If the court issues an order establishing a reservoir conservancy district, the board of directors and the utility owner of the reservoir located within the boundaries of the reservoir conservancy district are required to enter into an operating agreement.
• The subsequent directors are then elected by the freeholders of the district.
• Boards routinely hire staff and an attorney to conduct the business of the district.

• The jurisdiction over activities of a conservancy district ultimately lies with the circuit court that established the district for specific purposes.
• The Natural Resources Commission acts as a friend to the court by providing technical review and recommendations for specified district activities, which include establishment, district plan, unit of work, addition of area, addition of purpose, and dissolution of a district.
• District leadership, decision making and the day to day operations, however, are accomplished through the conservancy district’s board directors.

• One of the first responsibilities of the initial board of directors is to develop a district plan. The district plan consists of an engineering report that sets forth the general, comprehensive plan for accomplishment of the purpose or purposes for which the district was established.
• The board of directors shall be responsible to place the district plan in operation by implementing the approved purpose(s) and by providing operation and maintenance as provided for in the district plan.

• After the board of directors prepares the district plan, and according to statute it must be reviewed and approved by the Natural Resources Commission. According to the nonrule policy document developed by the Natural Resources Commission (Information Bulletin #36), the authority to approve or disapprove a district plan has been delegated from the Natural Resources Commission to the director of the DNR Division of Water.
• If the plan accomplishes, in an economical manner, the purpose or purposes for which the district is established, it will be forwarded to the circuit court for review and final approval.