Legislative Notes
Water’s for fightin’ but bill delivers compromise
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In Montana, the following statement rings true now more than ever: “Whiskey is for drinking, and water is for fighting.” Although the quote is often misattributed to Mark Twain, the adage’s creator was highlighting a perennial issue in governance out west – water rights. In 2025, exempt wells are in the spotlight.
For those unfamiliar, an exempt well allows a person to utilize a groundwater well or developed spring while avoiding the extensive permitting process to claim rights for that well. Historically, exempt wells have been an important tool for agricultural operations and developers.
However, concerns have arisen as the number of exempt wells in the state grows. Recent studies show that some exempt wells are reducing surface water, to the detriment of senior water rights users. The struggle boils down to the question of where we draw the line.
For the past 15 months, the Montana Department of Natural Resources and Conservation (DNRC) administered a working group to develop strategies that could improve the operation and supervision of exempt wells. The group found that, although exempt wells are an effective water supply option for much of the state, their extensive use in high-growth areas could prove problematic. Wells could be regulated without burdening DNRC to review them on a case-by-case basis, the group concluded.
After consulting with members of the working group, I have incorporated many of their recommendations into Senate Bill 358, which separates the state into three categories for regulating water rights: closure areas, monitoring areas, and remaining areas.
In closure areas, exempt wells would be prohibited, with rare exceptions. The closure would immediately apply to the aquifers in the Bitterroot, Gallatin, Helena, and Missoula Valleys. Additionally, the bill creates legal and scientific criteria as an objective standard for determining if an area shifts to a point where closures are needed to protect existing water rights.
In monitoring areas, aquifers are somewhat impacted by exempt wells but do not currently meet the closure thresholds under the scientific and legal criteria. The bill classifies the Billings Terrace Aquifer and the Flathead Valley Aquifer as monitoring areas. People could continue to use exempt wells in these areas, but all new water use in these zones would be subject to metering and reporting conditions.
For the remaining area – the vast majority of the state – the bill handles divided and undivided property separately. The model will remain mostly the same for undivided land, but an exempt well cannot be issued for a divided development with more than 24 lots. If a subdivision has more than 24 lots, then it will need to obtain a permit from DNRC or connect to a public system. For subdivisions with fewer than 24 lots, exempt wells are permitted with clear allocations.
SB 358 has the support of developers, agricultural producers, and conservationists alike. We have worked hard to craft a durable framework that recognizes the need for more housing, strong environmental protections, and the ability for farmers and ranchers to thrive.
Senator Wylie Galt, R-Martinsdale, is the Chair of the State Senate Natural Resources Committee.
