Eminent domain-water projects.

26LSO-0293
2026
STATE OF WYOMING
26LSO-0293
Numbered
2.0

SENATE FILE NO. SF0118

Eminent domain-water projects.

Sponsored by: Senator(s) Ide, French, Hicks, Pearson and Steinmetz and Representative(s) Banks, Johnson, Schmid, Webber, Wharff and Winter

A BILL

for

AN ACT relating to eminent domain; requiring the legislature to approve the use of eminent domain for the construction of water projects that utilize state funds as specified; making conforming amendments; specifying applicability; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 1
‑
26
‑
802, 1
‑
26
‑
803, 1
‑
26
‑
810(a)(iii), 1
‑
26
‑
815(a), 15
‑
7
‑
101(a)(ii) and (iii)(A), 35
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3
‑
110, 36
‑
10
‑
101, 41
‑
2
‑
124 by creating a new subsection (m), 41
‑
3
‑
102(a), 41
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3
‑
742(a)(iii), 41
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3
‑
906, 41
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3
‑
1013, 41
‑
7
‑
210(a)(iv)(E), 41
‑
7
‑
808, 41
‑
8
‑
113(a)(iii), 41
‑
9
‑
202 and 41
‑
10
‑
113(a)(xix) are amended to read:

1
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26
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802.

Proceedings by water companies and incorporated cities or towns.

Subject to the requirements of W.S. 41
‑
2
‑
124(m), a
ny water company or incorporated city or town of this state may acquire by purchase, grant or condemnation any land, real estate, claim, easement or right
‑
of
‑
way required for or that may be affected by the construction, operation or maintenance of any waterworks.

1
‑
26
‑
803.

Municipal streets and alleys; utility mains or pipes; tax levy.

Subject to the requirements of W.S. 41
‑
2
‑
124(m) if applicable, a
ny incorporated city or town in Wyoming may use or authorize the use of its streets and alleys by others, and may obtain by purchase, grant or condemnation in the manner provided by law all necessary lands for the construction, laying and operating of mains or pipes for sewers, gas or water for the use of the cities and towns, and for that purpose to have the power to levy a tax within the constitutional limits upon all personal and real property within the corporate limits of the cities and towns.

1
‑
26
‑
810.

Powers of railroad companies relative to condemnation generally.

(a)

Any railroad company organized under the laws of this state, the laws of the United States or which has been duly organized under the laws of any other state and has filed copies of its articles of incorporation with the secretary of state in this state as required by law is authorized to:

(iii)

Notwithstanding W.S. 41
‑
2
‑
124(m), a
cquire a right to conduct water by aqueducts and to make appropriate drains.

1
‑
26
‑
815.

Right of eminent domain granted; ways of necessity for authorized businesses; purposes; extent.

(a)

Subject to the requirements of W.S. 41
‑
2
‑
124(m) if applicable, a
ny person, association, company or corporation authorized to do business in this state may appropriate by condemnation a way of necessity over, across or on so much of the lands or real property of others as necessary for the location, construction, maintenance and use of reservoirs, drains, flumes, ditches including return flow and wastewater ditches, underground water pipelines, pumping stations and other necessary appurtenances, canals, electric power transmission lines and distribution systems, railroad trackage, sidings, spur tracks, tramways, roads or mine truck haul roads required in the course of their business for agricultural, mining, exploration drilling and production of oil and gas, milling, electric power transmission and distribution, domestic, municipal or sanitary purposes, or for the transportation of coal from any coal mine or railroad line or for the transportation of oil and gas from any well.

15
‑
7
‑
101.

Purposes.

(a)

In addition to all other powers provided by law, any city or town may make public improvements as follows for which bonds may be issued to the contractor or be sold as provided in this chapter to:

(ii)

Establish, construct, purchase, extend, maintain and regulate a system of water works, for the purpose of supplying water for extinguishing fires and for domestic, manufacturing and other purposes. To carry out this power, or to prevent pollution or injury to the streams, springs or source of supply of its water works, ditches or reservoirs, any city or town may go beyond its corporate limits and take, hold and acquire property by purchase or otherwise and
, subject to the requirements of W.S. 41
‑
2
‑
124(m) if applicable,
may take and condemn all necessary land and property. Jurisdiction of a city or town shall extend up and along the stream or source of supply for the entire distance occupied by such water works, ditches or reservoirs. Cities or towns may enact ordinances and make all necessary rules and regulations for the government and protection of their water works, ditches and reservoirs, and fix water rates and provide for their collection. All water rent collected except the amount required to pay the expense of maintaining, extending and improving the water works, shall become a part of the water bond fund, and be applied only to the payment of the principal and interest of the bonds issued for the construction, purchase, maintaining or extension of the water works;

(iii)

Take any action necessary to establish, purchase, extend, maintain and regulate a water system for supplying water to and diverting surface water runoff from its inhabitants and their property and for any other public purposes, including:

(A)

Condemnation of property
, subject to the requirements of W.S. 41
‑
2
‑
124(m) if applicable
;

35
‑
3
‑
110.

Eminent domain; power conferred.

Subject to the requirements of W.S. 41
‑
2
‑
124(m) if applicable, s
uch sanitary and improvement district may acquire by purchase, condemnation or otherwise, real or personal property, right
‑
of
‑
way, and privilege, within or without its corporate limits, necessary for its corporate purposes.

36
‑
10
‑
101.

Authority to acquire state lands; reservation of mineral rights.

Notwithstanding W.S. 41
‑
2
‑
124(m), t
he United States shall be and is authorized to acquire by purchase or condemnation or otherwise, any land in this state required for public buildings, custom houses, arsenals, national cemeteries, or other purposes essential to the national defense in necessary use of said land by armed naval, air or land forces, or land to be physically occupied by the Boysen Dam, its reservoir, power plant and distribution systems, or lands to be physically occupied by dams, reservoirs, power plants and distribution systems in United States reclamation service projects, and the state of Wyoming hereby consents thereto, provided that the mineral content of lands so acquired, if owners thereof so elect, shall be reserved to such owners.

41
‑
2
‑
124.

Accounts created; unexpended balance.

(m)

Except as otherwise provided by law, when appropriating funds for any project from the accounts created by subsection (a) of this section and only after receipt of a recommendation of the water development commission, the legislature shall specify whether the power of eminent domain may be utilized to complete a project for which funds are appropriated. If it is determined after an appropriation is made that the power of eminent domain is needed to complete a project, the project's sponsor and the water development commission shall notify the legislature of the need for the use of eminent domain and the appropriated funds shall not be expended for that project unless the legislature authorizes the use through legislation enacted during a subsequent legislative session.

41
‑
3
‑
102.

Preferred uses; defined; order of preference.

(a)

Water rights are hereby defined as follows according to use: preferred uses shall include rights for domestic and transportation purposes, steam power plants, and industrial purposes; existing rights not preferred, may be condemned to supply water for such preferred uses in accordance with the provisions of the law relating to condemnation of property for public and semi
‑
public purposes
, including the requirements of W.S. 41
‑
2
‑
124(m),

except as hereinafter provided.

41
‑
3
‑
742.

Powers generally.

(a)

The board shall have power on behalf of said districts:

(iii)

Subject to the requirements of W.S. 41
‑
2
‑
124(m) if applicable, t
o have and to exercise the power of eminent domain and in the manner provided by law for the condemnation of private property for public use to take any property necessary to the exercise of the powers herein granted;

41
‑
3
‑
906.

Application; rights subject to preferences; rights of municipal corporations.

Rights to underground water shall be subject to the same preferences as provided by law for surface waters, and rights not preferred may be condemned and changed to a preferred use in the manner provided by law for surface waters
subject to the requirements of W.S. 41
‑
2
‑
124(m)
. Nothing herein contained shall be construed to impair the rights of municipal corporations to acquire any underground water or underground water rights for a necessary public purpose by eminent domain or condemnation proceedings
but W.S. 41
‑
2
‑
124(m) shall remain applicable
.

41
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3
‑
1013.

Condemnation for municipal water purposes.

Notwithstanding W.S. 1
‑
26
‑
505
and subject to the requirements of W.S. 41
‑
2
‑
124(m)
, a city or town may condemn any portion of a water right authorized and acquired under this act for municipal water purposes in the manner provided by law.

41
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7
‑
210.

Court's order.

(a)

If the issues at this hearing are decided in favor of the petitioners, the court shall make an order:

(iv)

Establishing said district as a corporation by the name proposed with powers:

(E)

To exercise the power of eminent domain under
chapter 316 (C.S. 1920)
W.S. 1
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26
‑
501 through 1
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26
‑
818
, and all acts or parts of acts amendatory thereto;

41
‑
7
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808.

Powers; eminent domain; application of provisions.

All provisions of law now applicable to irrigation districts, privately owned irrigation corporations, ditch companies, or power districts or power corporations, as regards the exercise of the power of eminent domain, the use and occupation of state and other public lands and highways, the appropriation, or other acquisition or use of water, waterpower, water rights, or water diversion or storage rights, for any of the purposes contemplated in this act, the manner or method of construction and physical operation of irrigation works, storage dams, distribution systems, power plants, transmission lines and power systems, as herein contemplated, shall be applicable as nearly as may be, and insofar as not in conflict with the provisions of this act, to districts organized under this act in their exercise of the rights, powers and franchises and in the performance of the duties conferred or imposed upon them under the provisions of this act. In addition to any other rights and powers hereinabove conferred upon any district organized under the provisions of this act, such district shall have and exercise the power of eminent domain for the purposes and after the manner provided for in
sections 38
‑
401 to 38
‑
416, inclusive, of chapter 38 [§§ 1
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26
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401, 1
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26
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403, 1
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26
‑
404] and in chapter 122, Wyoming Revised Statutes, 1931,
W.S. 1
‑
26
‑
501 through 1
‑
26
‑
818
or in any one (1) or more of said sections or other applicable sections in said statutes made and provided. If any such district shall condemn private property or interests therein, the appraisement shall include such amount of damage as will accrue to the owner of the condemned property through severance thereof from other property of said owner, previously operated with that so condemned, as a unit.

41
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8
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113.

Board of directors; powers generally.

(a)

Under the supervision of the board of supervisors, the board of directors of a watershed improvement district shall have power to:

(iii)

Subject to the requirements of W.S. 41
‑
2
‑
124(m) if applicable, e
xercise the power of eminent domain and in the manner provided by law for the condemnation of private property for public use;

41
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9
‑
202.

Power of eminent domain.

Any drainage district created and existing under W.S. 41
‑
9
‑
101 through 41
‑
9
‑
278 may, whenever it shall require a way of necessity outside its boundaries for any of its work or works theretofore authorized by the court, proceed to procure the same by the exercise of the power of eminent domain
subject to the requirements of W.S. 41
‑
2
‑
124(m) if applicable
.

41
‑
10
‑
113.

Powers of district board.

(a)

For and on behalf of the district the board of any district shall have the following powers:

(xix)

Subject to the requirements of W.S. 41
‑
2
‑
124(m) if applicable, t
o have and exercise the power of eminent domain and dominant eminent domain and in the manner provided by law for the condemnation by a city of private property for public use to take any property necessary to the exercise of the powers granted, both within and without the district;

Section 2.

This act shall apply to all projects receiving appropriations from water development accounts I through III that are initiated on or after July 1, 2026.

Section 3.

This act is effective July 1, 2026
.

(END)

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SF0118