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Show SURFACE WATERS 39 are representatives from and within the district and understand the problems of the district, and would not be inclined to approve a sale which would prove detrimental to the best interests of the district. There are many instances in which there is surplus water either on a permanent or a seasonal basis which could be sold and beneficially used by others, and the money received therefrom could be beneficially utilized by the district-if the restrictions on transfers were removed. In some States there are constitutional prohibitions against the sale of water by certain entities, such as those which prohibit cities from selling any part of their water rights or waterworks systems. This often produces bizarre results when municipalities experience a permanent decline in population (which frequently happens in mining towns when ore deposits are mined out and the community becomes virtually a ghost town), because there is no way of selling or transferring any of the unneeded water-short of a dissolution of the municipal corporation. c. Transfer Procedures Transfer proceedings ordinarily are conducted in a manner sim- ilar to those followed in processing applications to appropriate water. An application to transfer a water right, either to a new place of use or purpose of use, is filed with the State administrative officer, who usually is required to give notice by mail to all known interested parties and by publication to all others, and anyone who believes he would be harmed by the transfer may file a protest. If protests are filed, a time is set for a hearing. The State engineer or his representative conducts the hearing and receives testimony from anyone who wishes to be heard. The basic issue for determination is whether the transfer would result in an interference with existing rights. After a decision is issued, any party may appeal. If the application is denied, it would be the applicant; if the application is approved, it may be any one or more of the protestants. The method of appeal to the district court, and the scope of judicial review, will be the same as that provided in the particular State for appeals from decisions relating to appli- cations to appropriate water. The same is true with respect to ap- peals to the State supreme court from the decree of the district court. d. Transfers of Eastern Permits The statutes creating permit systems in the East ordinarily are silent about transfers. It is likely that transfers would be approved to new purchasers for the same place and purpose of use, but that proposed transfers to new uses or places of use would be processed as applications for new permits. 3.4 Loss of Rights While water rights may be lost in the sense that they may be voluntarily sold, transferred, and conveyed to others, or may in- voluntarily be lost through such procedures as eminent domain, this |