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Show MONTANA 317 Permits may be revoked if the permittee fails to show sufficient cause why he has not complied with the requirements of the permit.66 As between appropriators, the first in time is the first in right. However, a prior appropriator may not prevent changes by subsequent appropriators in the condition of water occurrence (for example, increasing or decreasing stream- flow or lowering a water table, artesian pressure, or water level) if the prior appropriator can reasonably exercise his water right under the changed condition.67 Transfers of interest in appropriation rights shall be without loss of priority.68 Ordinarily, priority of appropriation confers superiority of right, without reference to the purpose of use of the water so long as it is beneficial.69 However, the State of Montana and its agencies and political subdivisions and the United States and its agencies may apply to the Board of Natural Resources and Conservation to reserve water "for existing or future bene- ficial uses, or to maintain a minimum flow, level, or quality of water through- out the year or at such periods or for such length of time as the board designates." Upon receiving an application, the Department proceeds in accordance with the notice and hearing requirements for permit applications. After the hearing, the Board decides whether or not to reserve the water. The Board may not order the reservation unless the applicant establishes (1) the purpose of and need for the reservation, (2) the amount of water needed, and (3) that the reservation is in the public interest.70 No reserva- tion shall be made which will affect rights in existence when the order reserving the water is adopted.71 After an order reserving waters has been adopted, the Department may reject applications to appropriate reserved waters or, with the approval of the Board, issue a permit subject to such terms and conditions as it deems necessary to protect the objectives of the reservation. The Board is required to periodically construction of diversion works, purchase of equipment to apply water, planting of crops, or other action, where the permit would have been denied or modified if the final decree had been available to the department." Id. § 89-880(3). Certificates of water rights, which are issued to the permittee upon completion of the appropriation in the particular source, may not be issued (except as provided in the section of the Act relating to ground water discussed at note 133 infra) prior to a determination of existing rights in the source in question. Id. § 89-888(2). Determinations of existing rights are discussed later under "Determination of Conflicting Water Rights." "Mont. Rev. Codes Ann. §89-887 (Supp. 1973). 61Id. §89-891(1). 48 Id. §89-893(1). 69SeeMettlerv. Ames Realty Co., 61 Mont. 152, 159-160, 201 Pac. 702 (1921); Basey v. Gallagher, 87 U.S. 670, 682 (1875). 70 If the purpose of the reservation requires the construction of a storage facility, the applicant must establish that the facility will be completed and the purpose accom- plished with reasonable diligence in accordance with the plan. 71 Mont. Rev. Codes Ann. § § 89-890(1) - (3) and (5) (Supp. 1973). 246-767 O - 77 - 22 |