General Water Law Decree 181-2009

OBJECTIVE OF THE LAW. The objective of this Law is to establish the principles and regulations applicable to the adequate management of the water resource for the protection, conservation, valuation, and utilization of the water resource in order to promote integrated management of said resource at the national level.

MANAGEMENT OWNERSHIP. The use, exploitation, development, applications, and any other forms of utilization of the water resource, as well as the exploitation or utilization of ecosystems and resources related thereto, shall be administered by the State through the Water Authority as indicated in this Law and other related laws. The Central Government shall be responsible for the administration of waters, their assets, and associated rights.

PRINCIPLES AND FOUNDATIONS OF WATER MANAGEMENT. The management of water resources shall conform to the following principles and foundations:

• 1)

  Water is a resource essential for life, social development, and economic development. Its protection and conservation constitute a priority action of the State;

• 2)

  Human consumption has preferential and privileged relationship over other uses;

• 3)

  Water is a social resource, and its access shall be equitable;

• 4)

  Citizen participation shall be made effective in planning for management, utilization, protection, and conservation;

• 5)

  Integral management of the resource, linked to the hydrological cycle and the natural environment, shall be carried out with the participation and responsibility of all levels of Government, their organizations, or organized peoples; and,

• 6)

  Payment for services shall be linked to utilization and the protection and conservation of water. CHAPTER II SCOPE AND OBJECTIVES

SCOPE OF THE LAW. The provisions of this Law are of public order, general interest, of general and mandatory compliance, and are applicable to continental, island, surface, and underground waters, maritime waters, and others over which the State of Honduras exercises sovereignty or holds rights. This Law constitutes the general regulatory framework to which particular legislation on maritime waters, fishing, water for human consumption, protection of aquatic ecosystems, biodiversity, and others that may be enacted shall be subordinated.

OBJECTIVES OF THE LAW. The objectives of this Law are:

• 1)

  To establish the framework of principles, scope, and objectives of water management;

• 2)

  To determine the conditions of legal ownership of water, spaces, and associated resources;

• 3)

  To define the framework of competencies, functions, and responsibilities of public administration in water resources management;

• 4)

  To establish regulations on the protection and conservation of water resources;

• 5)

  To establish norms for the utilization of water resources; and,

• 6)

  To establish the sanctionary framework. CHAPTER III DEFINITIONS

DEFINITIONS. For the purposes of this Law, the following terms are understood to mean:

• 1)

  INTEGRATED MANAGEMENT OF WATER RESOURCES: The set of actions that involves its management, including the generation, processing, and updating of basic information, planning, protection, conservation, restoration, and the determination of administrative procedures for the rational utilization and control of the resource, developed in a coordinated and cooperative manner, considering water resources in all their forms, river basins and other natural and artificial water systems, the actors and interests of user sectors, the various territorial levels of Government, and their relationship with the environmental, territorial ordering, and socio-economic development policies of the country;

• 2)

  LEGAL AFFECTATION: A conditioning established by Law that limits, based on general interest, the ownership and uses of land and other assets;

• 3)

  CONTINENTAL WATERS: National waters, surface or underground, in the continental part of the national territory;

• 4)

  WASTEWATER: Waters of varied composition from discharges of municipal, industrial, commercial, agricultural, livestock, domestic uses, and, in general, from any other use;

• 5)

  WATER BALANCE: The reference instrument that determines the balance or remainder resulting from accounting for the volumes of available water resources and the volumes utilized;

• 6)

  RECEIVING BODY: A site that has technically been demonstrated to have the capacity to receive previously treated wastewater and may be natural watercourses or water deposits, reservoirs, beds, marine areas, or soil where said waters are infiltrated or injected;

• 7)

  RIVER BASIN: The territorial unit delimited by the dividing lines of surface waters that converge toward the same course and form spaces in which complex interactions and inter-dependencies develop among the biotic and abiotic components, social, economic, and cultural aspects through the flow of inputs, information, and products;

• 8)

  DISCHARGE: The action of pouring, infiltrating, depositing, or injecting wastewater into a receiving body;

• 9)

  WETLANDS: Zones of transition between aquatic and terrestrial systems that constitute areas of temporary or permanent flooding, subject or not to tidal influence, such as swamps, marshes, and salt marshes, whose boundaries are constituted by the type of hydrophilic vegetation of permanent or seasonal presence;

• 10)

  LAKE OR LAGOON: The naturally formed body that is fed by surface currents or groundwater or rainwater, regardless of whether or not it gives rise to another current, as well as the artificially formed body that originates from the construction of a dam;

• 11)

  DOMESTIC USE: The use of water intended for the particular use of persons and the household, irrigation of their gardens and ornamental trees, including the watering of their domestic animals that does not constitute a lucrative activity;

• 12)

  INDUSTRIAL USE: The use of water in factories or enterprises that carry out the extraction, preservation, or transformation of raw materials or minerals, the finishing of products, or the production of goods;

• 13)

  SURFACE WATERS: Natural and artificial bodies of water that include natural watercourse channels, continuous and discontinuous, as well as the beds of lakes, lagoons, and reservoirs;

• 14)

  GROUNDWATERS: Waters that infiltrate and penetrate the soil and subsoil, saturating the pores or cracks of rocks and that eventually accumulate above impermeable layers forming an underground reservoir;

• 15)

  AQUIFER: The underground water reservoir from which significant quantities of the resource can be extracted;

• 16)

  WATER QUALITY: The physical, chemical, and biological characterization of water to determine its composition and utility to humans and other living beings;

• 17)

  BOTTOM OR BED: Land occupied by water in deposits or currents;

• 18)

  NATURAL CHANNEL OR RIVERBED: Soil occupied or alternately unoccupied by water in its periodic floods or low levels. Bank or margin is the lateral zone adjacent to the channel;

• 19)

  DISCHARGES: Any discharge of wastewater or non-wastewater, contaminated or uncontaminated, that is carried out directly or indirectly to water bodies through channels, water drains or drainage systems, direct discharge to soil or injection into subsoil, discharge to sewer networks, discharges to coastal marine environment, and submarine discharges;

• 20)

  WATER CONTAMINATION: The action and effect of introducing materials or forms of energy, or inducing conditions in water that, directly or indirectly, imply a detrimental alteration of its quality in relation to subsequent uses or its ecological function. The concept of water degradation, for the purposes of this Law, includes detrimental alterations to its environment;

• 21)

  OWNERSHIP: Power or right granted by Law to exercise acts of dominion and use of a good or resource;

• 22)

  ENVIRONMENTAL ASSETS: Products provided by nature, directly utilized by humans such as water, timber, soil, air, flora, and wild fauna;

• 23)

  ENVIRONMENTAL SERVICES: Services provided by ecosystems to society that have direct and indirect incidence on the protection and improvement of the environment and, at the same time, generate useful services that improve the quality of life of persons, among them: conservation and regulation of water for human, agricultural, industrial consumption, and for the generation of electrical energy and tourism; protection and conservation of biodiversity, conservation and recovery of scenic beauty, protection, conservation, and recovery of soils, and mitigation of greenhouse gases;

• 24)

  PAYMENT FOR ENVIRONMENTAL SERVICE: The compensation resulting from negotiation processes, by means of which the compensation or payment is recognized for the benefit or utility perceived by the use or utilization of an environmental service and whose purpose is the financing of the sustainable management of natural resources associated with such service;

• 25)

  CONSUMPTIVE USE: The difference of the volume of a determined quantity of water that is extracted, minus the volume of a likewise determined quality of water that is discharged to a receiving body; and,

• 26)

  NON-CONSUMPTIVE USE: The use or utilization that does not generate a difference between the volume and quality of water initially captured and the volume and quality discharged, except for losses due to evaporation in its utilization.

SECTORIAL RESPONSIBILITY. It shall be the responsibility of the State Secretary of the Ministry of Natural Resources and Environment (SERNA) to conduct and direct the water resources sector, whose organizational framework is as follows:

• 1)

  The National Council of Water Resources;

• 2)

  The Water Authority; a) The National Institute of Water Resources; and, b) Regional Agencies.

• 3)

  River basin organizations, user organizations, and advisory councils.

NATIONAL COUNCIL OF WATER RESOURCES. The National Council of Water Resources is hereby created as a consultative, deliberative, and advisory body to propose and agree upon policies, provide oversight and social control of the water sector management. The National Council of Water Resources (NCWR) shall be comprised of the following members:

• 1)

  The State Secretary of the Ministry of Natural Resources and Environment, who shall preside over it;

• 2)

  The State Secretary of the Ministry of Health;

• 3)

  The State Secretary of the Ministry of Agriculture and Livestock;

• 4)

  The State Secretary of the Ministry of Public Works, Transportation, and Housing;

• 5)

  The State Secretary of the Ministry of Foreign Affairs;

• 6)

  The State Secretary of the Ministry of Internal Affairs and Justice;

• 7)

  The President of the Association of Municipalities of Honduras (AMHON);

• 8)

  A representative of the Permanent Commission for Contingencies (COPECO);

• 9)

  A representative of the National Autonomous University of Honduras (UNAH);

• 10)

  A representative of the Federation of Farmers and Livestock Producers of Honduras;

• 11)

  A representative of the Honduran Council of Private Enterprise (COHEP);

• 12)

  A representative of all River Basin Councils in the country;

• 13)

  A representative of the Institute for Forest Conservation, Protected Areas, and Wildlife (ICF);

• 14)

  The Executive Director of the Water Authority, who shall serve as Secretary of the Council; and,

• 15)

  A representative of the Peasant Confederations of Honduras. The State Secretaries who are members of the National Council of Water Resources shall not be able to delegate their representation to any other official or person. The National Council of Water Resources shall function attached to the State Secretary of the Ministry of Natural Resources and Environment (SERNA) for the purposes of allocating budgetary funds for its operations; it shall meet in ordinary sessions two (2) times per year and in extraordinary sessions when deemed appropriate. The State Secretary of the Ministry of Internal Affairs and Justice shall officially confirm the appointments of representatives of civil organizations that comprise the Council, which must renew their representations every two (2) years.

POWERS OF THE NATIONAL COUNCIL OF WATER RESOURCES. The powers of the National Council of Water Resources are:

• 1)

  To propose agreed-upon policies for their application;

• 2)

  To establish at the national level the mechanism for the identification, promotion, agreement, and approval of initiatives, research lines, and investments for their respective inclusion in the plans of the water sector;

• 3)

  To propose the guidelines for the instruments of ordering and water resources planning;

• 4)

  To promote within public, private, and community institutions the implementation of approved political actions and strategies in the water sector;

• 5)

  To propose to the competent authority declarations of emergency or special management of water resources, as well as to issue opinions in this regard;

• 6)

  To follow up on and evaluate the progress and compliance of approved plans and policies for the water sector;

• 7)

  To act as a facilitator, manager, conciliator, and guarantor of social actions in the water sector;

• 8)

  To act as an arbitration agent and for the prevention and resolution of conflicts in the water sector, whether these refer to disputes of right and competencies; and,

• 9)

  Other specific powers indicated in this Law. The National Council of Water Resources shall have the technical and logistical support that facilitates the fulfillment of its functions and responsibilities.

THE WATER AUTHORITY. The Water Authority is hereby created as a deconcentrated body of public administration attached to the State Secretary of the Ministry of Natural Resources and Environment, with legal standing and its own assets. The Water Authority shall be responsible for executing the policies of the water sector. The superior administration of this entity shall be the responsibility of the Board of Directors, which shall be comprised as follows:

• 1)

  The State Secretary of the Ministry of Natural Resources and Environment, who shall preside over it;

• 2)

  The State Secretary of the Ministry of Health, member;

• 3)

  The State Secretary of the Ministry of Internal Affairs and Justice, member;

• 4)

  The State Secretary of the Ministry of Agriculture and Livestock, member;

• 5)

  The State Secretary of the Ministry of Public Works, Transportation, and Housing, member;

• 6)

  The President of the Association of Municipalities of Honduras (AMHON) or the directive officer he designates;

• 7)

  The Executive Director of the Water Authority shall serve as Secretary of the Board of Directors, with the right to speak but without voting power; and,

• 8)

  The Executive Director of the Institute for Forest Conservation, Protected Areas, and Wildlife, as member.

POWERS OF THE WATER AUTHORITY. The powers of the Water Authority, which shall be exercised through its Board of Directors, are:

• 1)

  To comply with and enforce this Law and its regulations;

• 2)

  To exercise the legal standing of the Water Authority, by means of its President;

• 3)

  To appoint and remove the Executive Director;

• 4)

  To delegate to the Executive Director the executive administration with express delegation of the respective powers;

• 5)

  To approve the administration plans that derive from the policies and public strategies of the water sector approved by the National Council of Water Resources, and to establish the internal organizational structure for the execution of the responsibilities assigned to it by this Law;

• 6)

  To approve the instruments of territorial ordering, internal regulations, technical norms, and regulations applicable to the sector and to elevate them to the character of law, when necessary;

• 7)

  To approve the Budget Project for its respective insertion in the General Budget of Income and Expenditures of the Republic;

• 8)

  To approve or disapprove the administrative acts of the Executive Management;

• 9)

  To take the necessary actions to sanction offenses or crimes committed by officials and employees;

• 10)

  To exercise the water ownership that, in accordance with this Law, corresponds to the Central Government; to grant permits, water use titles, and concessions, in accordance with law;

• 11)

  To approve and supervise water projects in accordance with the guidelines established in this Law;

• 12)

  To approve the canons, tariffs, and fees for the granting of water use rights, as well as the procedures for concessions and granting of permits with respect to water utilization, prior to the opinion of the Regulatory Entity;

• 13)

  To present an annual report on management to the National Council of Water Resources through the Council's Technical Secretariat, and likewise proposals and initiatives on policies and actions for their respective consideration by this body;

• 14)

  To establish the National Institute of Water Resources and to support research projects carried out through it;

• 15)

  To provide technical, administrative, and financial support for the operation of the River Basin Councils provided for in this Law;

• 16)

  The Water Authority shall be responsible for executing the policies of the water sector.

• 17)

  To guarantee the human right to water as a public good managed by the State; and,

• 18)

  Other duties determined by this Law.

EXECUTIVE MANAGEMENT OF THE WATER AUTHORITY. The Water Authority shall be headed by an Executive Director appointed by the Board of Directors on the proposal of the National Council of Water Resources. His or her appointment shall be for a period of four (4) years and may be reappointed for a subsequent term.

POWERS OF THE EXECUTIVE DIRECTOR. The powers of the Executive Director are as follows:

• 1)

  To comply with and enforce this Law and its regulations;

• 2)

  To conduct executive management;

• 3)

  To propose to the Board of Directors the approval of administration plans and instruments, the ordering and planning of the sector;

• 4)

  To propose to the Board of Directors the fee system for services provided by the Water Authority and to formulate recommendations for the collection of canons for the utilization of waters;

• 5)

  To propose for authorization of rights of use and utilization of waters;

• 6)

  To maintain the annually updated water cadastre and the public registry of water use and utilization;

• 7)

  To appoint the Director of the National Institute of Water Resources (NIWR); to guide and supervise the actions of this Institute;

• 8)

  To present a monthly report to the Board of Directors on the activities developed by the Executive Management and an annual report that includes the evaluation of the current and potential state of water resources;

• 9)

  To manage the integrated water information system in consonance with the territorial ordering information systems of the State;

• 10)

  To exercise the other functions assigned to it by this Law and other applicable provisions in public administration;

• 11)

  To present an accountability report to the National Council of Water Resources; and,

• 12)

  To establish a permanent information sheet in accordance with the Law of Transparency and Access to Public Information.

REQUIREMENTS TO BE EXECUTIVE DIRECTOR. To be Executive Director the following are required:

• 1)

  To be a Honduran national exercising his or her civil rights;

• 2)

  To hold a university degree in engineering, biological sciences, or accounting and administration, with a Post-Graduate degree in the water sector as a minimum; and,

• 3)

  Five (5) years of proven experience in the water sector.

REGIONAL AGENCIES OF THE WATER AUTHORITY. The Water Authority shall have a minimum of eight (8) regional agencies corresponding to the main river basins of the country: Chamelecón, Ulúa, Choluteca, Nacaome, Patuca, Humuya, Cangreval, and Aguán. Other agencies may be established as deemed necessary.

FUNCTIONS OF REGIONAL AGENCIES: The Regional Agencies of the Water Authority, within their respective area of operation, shall have the following functions:

• 1)

  To ensure strict compliance with water regulations and the planning instruments of the respective basin;

• 2)

  To coordinate with the Water Authority and municipalities concerning the granting of water use and utilization and actions for protection and conservation;

• 3)

  To formulate the proposal for the Regional Water Plan of Basins, as well as its updates in accordance with the directives of the Water Authority;

• 4)

  To promote and organize the respective Basin Councils;

• 5)

  To prepare the Annual Budget of the Agency incorporated into the Budget of the Water Authority and submit it for approval by the corresponding authorities;

• 6)

  To maintain updated the water balance of the basins;

• 7)

  To administer the Water Information System in the basins; and,

• 8)

  Other functions assigned to it by the Water Authority.

THE NATIONAL WATER RESOURCE INSTITUTE (INRH): The National Water Resource Institute (INRH) is hereby established, attached to the Water Authority as a specialized technical unit, whose purpose is to conduct investigations, studies, and technical analyses concerning the water resource necessary for the design and implementation of all technical instruments of management provided in this Law. It shall provide technical support to the Water Authority and shall provide technical assistance to other actors linked to the water sector. The National Meteorological Service shall be an integral part of the National Water Resource Institute, contributing with its functions and responsibilities to the services and requirements of the Water Authority, supporting monitoring activities, information production, analysis, forecasts, and investigations of the sector.

RESPONSIBILITIES OF THE NATIONAL WATER RESOURCE INSTITUTE (INRH): The responsibilities of the National Water Resource Institute (INRH) at the instance of the Water Authority are:

• 1)

  To configure the National Water Balance on a five-year basis;

• 2)

  To prepare and develop the National Hydrological Plan;

• 3)

  To develop and carry out all activities inherent to meteorological sciences complying with monitoring responsibilities, analysis, forecasts, studies, and investigations of related sciences, in order to meet national requirements, national responsibilities, and conventions and international organizations of which Honduras is a member;

• 4)

  To prepare hydrological plans by hydrographic unit;

• 5)

  To execute and coordinate water monitoring actions;

• 6)

  To propose regulations on methods, procedures, and techniques used by information networks at the national level;

• 7)

  To establish proposals on national standards and norms relating to water resource management;

• 8)

  To operate the laboratory for testing and certifications in water matters;

• 9)

  To conduct investigations on technologies and applications of the water resource;

• 10)

  To operate the water information system applying information technology; and,

• 11)

  Other functions of similar nature assigned to it by the Water Authority. CHAPTER II BASIN ORGANISMS AND CITIZEN PARTICIPATION

NATURE OF BASIN COUNCILS: The Basin Councils that integrate and represent their respective Sub-Basin and Micro-Basin Councils are instances of coordination and agreement of actions of public and private agents involved in multisectorial management within the geographical scope of the basin. They constitute entities for community empowerment to ensure citizen participation in compliance with this Law, and in water management policies and plans. Their purpose is to propose, execute programs and actions for better administration of waters, the development of hydraulic infrastructure, and the protection, conservation, and preservation of the water resources of the basin.

ESTABLISHMENT AND GEOGRAPHICAL SCOPE OF BASIN COUNCILS: For the establishment of Basin Councils, Sub-Basin and Micro-Basin Councils, a prior resolution of the Water Authority is required, which shall designate the respective geographical area of management and the technical and administrative procedures for their operation in accordance with this Law. For purposes of legality, the Basin Councils shall have their respective Legal Personality.

FUNCTIONS OF BASIN COUNCILS: The Basin Councils shall have the following functions:

• 1)

  To identify and propose for execution actions within the scope of the basin, for their insertion into water planning and ordering instruments and the various Government entities that have presence in the basin's area;

• 2)

  To promote, agree upon, and approve initiatives, lines of research, and investments for their respective inclusion in basin plans;

• 3)

  To promote before public, private, and community institutions the implementation of actions, policies, and strategies approved in the water and sectorial planning of the basin;

• 4)

  To propose to the competent authority declarations of emergency or special management of water resources, as well as to issue opinions in this sense;

• 5)

  To monitor and evaluate the progress and compliance of approved plans and policies regarding protection, conservation, and water utilization and other sectorial actions;

• 6)

  To act as facilitator, manager, conciliator, and guarantor of actions among its members;

• 7)

  To organize in management boards and regulate its internal functioning; and,

• 8)

  Other specific functions designated in this Law.

COMPOSITION OF BASIN COUNCILS: The Basin Councils shall be composed of representatives of the following entities, with activities in the basin's area:

• 1)

  Regional Offices of the National Government integrated into the National Water Resources Council;

• 2)

  Municipal Governments whose territories are located, even if only partially, in their respective areas of operation;

• 3)

  Two (2) representatives of protected area managing units;

• 4)

  Two (2) representatives of water user organizations;

• 5)

  Two (2) representatives of peasant organizations;

• 6)

  Two (2) representatives of community organizations (community boards);

• 7)

  Two (2) representatives of environmental organizations;

• 8)

  Two (2) representatives of productive organizations linked to the water system;

• 9)

  Two (2) representatives, if applicable, of the Association of Autonomous Peoples and Afrodescendants of Honduras;

• 10)

  Two (2) representatives of Sub-Basin Councils;

• 11)

  Two (2) representatives of Micro-Basin Councils;

• 12)

  Two (2) representatives of Water Administration Boards, chosen by mutual agreement; and,

• 13)

  Two (2) representatives of Forestry Advisory Councils. In basin councils of shared border and transboundary rivers, the representation of the National Government must include a representative of the Secretariat of State in the Office of Foreign Affairs. In the formation of these basin councils there must be numerical parity between representatives of organized civil society and government officials. Sub-Basin Councils and Micro-Basin Councils shall organize in a similar manner.

WATER USER ORGANIZATIONS: The Water Authority and municipalities shall promote and support the organization of users to improve conditions in the utilization of water and the preservation and control of its quality and quantity.

OBLIGATIONS OF WATER USER ORGANIZATIONS: Water user organizations that are holders of corporate concessions, licenses, permits, and water franchises are subject to the same obligations as private or public holders. TITLE III OWNERSHIP, RIGHTS, AND LEGAL EFFECTS OF WATERS CHAPTER I PUBLIC DOMAIN

OWNERSHIP OF WATERS: The waters and their spaces of containment in lakes, lagoons, underground aquifers, maritime platforms, wetlands, settlement spaces, spaces of continuous or discontinuous courses such as river beds, ravines, natural channels are of public domain, as are public infrastructure works such as dams, channels, aqueducts, in perpetuity and inalienably. Works constructed by private parties to retain or move water such as wells, reservoirs, tanks, pools, channels, aqueducts, and others of similar nature, within private lands and for singular and particular benefit, are private property; these works are subject to the regulations of construction, operation, and maintenance imposed by the respective holder and the regulations set forth in this Law. Water uses shall be distributed equitably in the basin or region according to criteria of social, economic, environmental, and governance valuation. Communities that carry out actions for the protection and conservation of the water resource, in order to allow, promote, or preserve the generation of environmental services, such as: water capture, groundwater supply, soil protection, fixation and recycling of nutrients, flood control, sediment retention, biodiversity and scenic beauty, basin protection, transport corridors, hydroelectric power, among others, may receive a payment or compensation from the users of such water resource.

OWNERSHIP OF AQUIFERS: Public domain ownership of aquifers and subsoil formations that contain or through which groundwater flows does not prejudice the surface property right of the land; the carrying out of any work intended for its utilization or any activity that implies contamination or deterioration of the aquifer shall be subject to the provisions of this Law.

SPRINGS AND WATER SOURCES: In springs and water sources, public domain shall comprise an area resulting from the application of a radius of thirty (30) meters around the water emergence, always provided that it is subject to the use of the resource contemplated in this Law.

RIPARIAN RIGHTS IN RIVERS AND WATER COURSES: The natural course of a water current extends to the riparian line that corresponds to the bed or highest point reached by waters in their ordinary maximum floods and marks the limit of public domain.

RIPARIAN RIGHTS OF LAKES, LAGOONS, AND RESERVOIRS: Public domain of waters accumulated naturally or as a result of public works forming lakes, lagoons, or reservoirs extends to the highest point reached by these waters in their maximum floods or to the level corresponding to their spillover.

MARITIME MARGINS: Public domain of maritime waters extends to the beach line and the limit of high tide rise or the limit of cliffs.

PUBLIC CIRCULATION AND USE STRIP: Following the riparian lines and margins indicated in Articles 31, 32, and 33 of this Law and along its entire longitudinal extension, a strip of public domain is established for free circulation without prejudice to the protection strips established in other laws. This strip shall be five (5) meters wide in rivers and streams. In the case of beaches, this strip shall be twenty-five (25) meters wide.

DOMAIN AFFECTS AND USES: Without prejudice to the areas of public domain indicated in this Law, use restrictions shall be established for the following spaces:

• 1)

  Environmental safeguards, core zones, buffer zones, riparian forest strips, and easements of passage in which soil use is limited to those designated in territorial planning;

• 2)

  Protected areas, national parks, and hydrological reserves created on the basis of law that shall designate the domain and ownership affects necessary for their management and to achieve their purposes;

• 3)

  Water production or reserve zones in which springs are located, aquifer recharge areas, surface water intakes, environmental protection or safeguard spaces; and,

• 4)

  Flood zones and areas of hydrological risk, boundaries and easements of beaches and other spaces that could affect water volumes and quality or constitute risks to persons. The definition of these spaces shall be established on the basis of the respective technical studies; while approved territorial planning instruments do not exist, the minimum space measures indicated in this Law or in special laws shall be observed.

The general use of waters corresponds to the State; however, the neighbors or residents of the sources and water currents that are legally located in the spaces detailed in Article 37 and that facilitate forests, forest plantations, agroforestry systems, and local agroecosystems to provide environmental services such as soil protection, conservation and recovery against alluvial landslides, for the prevention of damage to water intake infrastructure and river ways caused by sedimentation, for the regulation, improvement, and conservation of water quality, may dispose of the volumes they need for their basic needs and the development of local economic activity; and for excess volumes they may receive payment or compensation for environmental services. All water discharges shall be made under conditions that do not contaminate the receiving bodies in accordance with standards legally established. CHAPTER II ADMINISTRATIVE EASEMENTS, EXPROPRIATIONS, RESTRICTIONS ON DOMAIN, AND ACQUISITIONS

ACQUISITIONS, EXPROPRIATIONS, RESTRICTIONS, AND FAIR COMPENSATION: The corresponding authority may acquire property for the purposes of comprehensive management of the water resource and manage expropriations and restrictions on domain based on public interest, subject to compliance with the conditions established by Law. The use and easement of sources and water currents for human consumption is mandatory.

MODIFICATION OF WATERCOURSE CHANNELS, BEDS, OR COURSES: Works or labor that alter the channels, beds, or courses of water currents and bodies or modify their riparian lines shall not be permitted. These works or labor shall only be allowed when such uses are permitted by water planning and organization. The use of rainwater that falls on or is collected in privately owned land belongs to the owner thereof, as long as it runs within their property and does not fall into watercourse channels or spaces of public domain. Consequently, the owner may store it within their property by appropriate means, provided it does not prejudice the rights of third parties and does not contravene the provisions of this Law and those of the water regulation plan. TITLE IV PROTECTION AND CONSERVATION OF WATER RESOURCES AND MANAGEMENT OF WATER-RELATED DISASTERS CHAPTER I CONSERVATION OF WATER RESOURCES

CONSERVATION: The actions for water conservation have the purpose of conserving or increasing water volumes by intervening in the ecosystems that generate it or affecting the activities that diminish it or that affect its biodiversity, by means of the instruments established by this Law.

ESTABLISHMENT OF RESERVES: Spaces, resources, and biological systems comprised for the conservation of water resources or the protection and preservation of associated biodiversity, historical, scenic, and tourist value shall be cataloged as reserves, such as:

• 1)

  Cloud forests;

• 2)

  Water recharge areas;

• 3)

  Water intake areas and water sources for human consumption;

• 4)

  Mangroves;

• 5)

  Wetlands;

• 6)

  Coral reefs;

• 7)

  Mouths of rivers, estuaries, and deltas;

• 8)

  Coastal fresh, brackish, and salt water lagoons;

• 9)

  Lakes; and, 10) Any other space or fresh, brackish, or salt water bodies that conform to the purposes of this Article. The reserves defined in this Article shall be established on the basis of Law under the following designations:

  • 1)

    Protected areas;

  • 2)

    National parks;

  • 3)

    Water production zone;

  • 4)

    Ecological easements; and,

  • 5)

    Special management areas established according to the purposes of this Law.

PURPOSE OF RESERVES AND PROTECTION AREAS: The declaration of the reserves referred to in the preceding Article implicitly carries the faculty to limit, condition, or prohibit any activity that directly or indirectly affects conservation and biodiversity, creating the corresponding legal affects. Each reserve for water protection shall have its delimitation of:

• 1)

  Core area as a space of rigorous conservation where the location of human settlements, agricultural, livestock, and industrial activities shall not be permitted;

• 2)

  Buffer area as a space for controlled uses, when such do not interfere with the object for which the reserves or protection areas are constituted; and,

• 3)

  Special use zones. These conditions shall be specified in the constitutive instruments of the reserve, in regulatory plans, or in zoning maps, with settlements not being permitted in such influence zones from the approval of this Law.

CONSERVATION OF MARINE AND COASTAL RESOURCES: The Water Authority shall coordinate with municipal authorities and responsible sectoral authorities in other fields what is relevant to the configuration of policies, strategies, and plans related to the protection of marine and coastal ecosystems such as: reefs, fishing banks, areas of importance for the development of native and migratory flora and fauna species. In the same manner, coordination shall be made with the institutions that manage other water reserves for purposes of tourism, navigation, and others that merit similar treatment.

ZONES SUBJECT TO CLOSURE FOR CONSERVATION: The Water Authority or municipalities within their jurisdiction may declare zones and periods of closure for the protection and temporary conservation of waters and their ecosystems; being able in these cases to limit or suspend temporarily or permanently the uses. The closure condition shall be included in every authorization for the use of water resources and their biodiversity.

AFFORESTATION AND REFORESTATION FOR WATER PRODUCTION: Afforestation and reforestation are mandatory in water production zones, recharge areas, and riverbank areas, as defined in particular laws or in respective planning instruments:

• 1)

  Water sources within a radius of two hundred fifty (250) meters as core zone;

• 2)

  Riparian forest strip along the watercourse channel according to slope. During the course of urban areas, the forest strip may be reduced to a minimum width of five (5) meters on each bank;

• 3)

  Forest strip along the bank of lakes and lagoons of one hundred (100) meters; and,

• 4)

  In aquifer recharge areas the radius shall be one hundred (100) meters minimum. CHAPTER II

CONSERVATION WORKS: In spaces where as a result of urbanization or construction of other works, the natural absorption capacity of underground aquifers is reduced, measures shall be adopted to compensate for such loss such as: construction of absorption wells, garden areas and open patios greater in relation to the total area of each lot, and others similar.

PROTECTION OF WATER RESOURCES: The protection actions have the purpose of conserving or increasing the levels of quality and quantity of water against the destructive effect of natural phenomena and human actions of degradation and contamination of the resource. The Water Authority shall issue regulations and technical norms for the control of discharges, the construction of works, and municipalities that may cause erosion, discharge of contaminants, leachates, and any other fact that deteriorates the quantity and quality of water bodies.

DISCHARGE OF WASTEWATER: The Water Authority or Municipality may authorize, in accordance with applicable environmental provisions and technical norms and only in permitted spaces, the direct or indirect discharge of wastewater into a water body, provided that these discharges do not contain insecticides, fertilizers, and any other toxic or contaminant product or substance. With the exception of what is established in the preceding paragraph, treatment of wastewater discharges resulting from domestic, agricultural, livestock, and industrial activities is mandatory. The reuse or recycling of discharged waters shall be authorized under the same conditions. Discharge of wastewater shall not be permitted in the origins of water sources and recharge zones, areas near drinking water intake works, and infiltration or recharge zones.

PROTECTION IN THE CONSTRUCTION OF WORKS: During the properly authorized execution of works, measures shall be adopted to avoid the discharge of sediments into watercourses and water bodies in rivers, reservoirs, lakes, lagoons, and coastal zones; such works shall be at the expense of the promoter and/or executor of the work, who must also indemnify third parties for damages that may be caused. In the absence of technical studies, the layout and construction of roads or works shall not be permitted less than two hundred (200) meters from the riparian line of rivers, lakes, lagoons, coastlines, and bridges and their approach works.

EXTRACTION OF AGGREGATES FROM RIVERS, LAKES AND OTHER WATER SPACES: No extractions shall be permitted less than five hundred (500) meters upstream and five hundred (500) meters downstream of bridges, wharves, dams or any other urban water infrastructure.

MINING ACTIVITY AND ENVIRONMENTAL PROTECTION: The exploitation or extraction of substances or materials comprised in mining legislation and concerning hydrocarbons shall be subject to the provisions of regulations on environmental protection in the mining sector and the corresponding provisions in the General Environmental Law. The works and activities of the mining industry shall be subordinated to provisions on exploitation, protection and conservation contained in territorial planning instruments for the mining sector and their regulatory instruments by basin or region. These specific standards shall be incorporated as part of the conditions of mining concessions or exploitation permits, without which they may not be granted.

EXEMPTION FROM LIABILITY: When the danger of depletion, degradation or contamination of water resources in a determined zone is verified, the Water Authority shall suspend, restrict or condition the uses while it is not reliably verified that recovery of the sources has occurred or that the sources of contamination or degradation have been eliminated. These measures shall not entail any indemnification.

ENVIRONMENTAL GOODS AND SERVICES: Linked to water use, charges for environmental services are established, which shall form part of the costs that users must assume and whose sole purpose shall be the conservation and protection of the water resource in the basin that generates them.

ECOSYSTEMS THAT GENERATE ENVIRONMENTAL SERVICE: It is recognized that ecosystems, natural forests, forest plantations, agroforestry systems, silvopastoral systems and agro-ecosystems provide environmental services such as: conservation and recovery of biodiversity and soils, protection against alluvial landslides, prevention of floods, damages to water catchment infrastructure and river routes, caused by erosion, sedimentation and for the improvement and conservation of water quality.

USERS WHO RECEIVE AN ENVIRONMENTAL BENEFIT: Those who benefit from the environmental service of water resource protection in a basin, sub-basin or micro-basin must reasonably compensate those who allow, facilitate or conserve its generation, by constituting a positive externality not recognized by those who receive or benefit from the environmental service. The methods of calculation and valuation of environmental goods and services, the forms of collection to establish the water resource fund for compensation or payment, shall be established in the Regulations of this Law.

PAYMENT AND COLLECTION OF ENVIRONMENTAL SERVICES: Any State Institution, natural or legal person that provides the public service of water supply for human consumption, industrial use, hydroelectricity, irrigation, tourism or aquaculture, recreational or scenic use and others, in order to compensate the environmental service of protecting the water resource in the producing basin, sub-basin or micro-basin, shall incorporate the cost of compensation in the established tariff structure, so that it may be charged to the final user of the service and that this be through the Water Authority, and that it be related to the estimated value of the water resource according to the variables of quality, quantity and use. Without prejudice to what is stated in the preceding paragraph, in the uses granted by the State, the costs of conservation, protection or environmental repair associated with the authorized uses shall be the responsibility of the title holder of the use. CHAPTER IV MANAGEMENT OF WATER-RELATED DISASTERS.

IDENTIFICATION OF RISK AREAS: In the instruments of territorial ordering, water planning and the different entities of the Government that have presence in the space of the basin; zones shall be identified which by cyclical or eventual behavior produce damages of water origin that threaten the lives of persons or irreversibly damage natural resources and infrastructure. In these documents, the prohibitions and limitations on the use of such soils shall be indicated, as well as the prevention and mitigation actions that shall be applied.

EMERGENCY REGULATIONS: No owner or holder in any capacity or occupant of a property may oppose the competent authority constructing or demolishing works or installations to protect human lives and property, prior compliance with emergency declarations and regulations to affect rights of use and ownership in accordance with law, without prejudice to subjecting these actions to pertinent legislation and the recognition of indemnifications that may be legally appropriate.

NON-AFFECTATION OF RESERVES BY DRAINAGE: Any natural or legal person may construct on their property works and installations to recover flooded or swampy lands, or any other type of hydraulic work provided that no damages are caused to third parties, nor is the system of use and protection of water resources prejudicially altered, related ecosystems are protected and compliance is achieved with sectoral water-related regulations issued by the Water Authority and/or municipal ordering. These activities may not be carried out when they contravene provisions relating to the creation of reserves such as those of drainage or emptying of mangrove zones, wetlands, areas of biological importance and in general any relevant system that threatens the sustainability of wild fauna and flora, for which purpose the Water Authority must be informed and the regulations it establishes must be followed.

CONTROL AND SURVEILLANCE FOR VULNERABILITY: The Water Authority and municipalities shall act jointly and participatively to define the policies, plans and actions of conservation, protection and management of water-related disasters. The Permanent Committee for Contingencies (COPECO), shall be responsible for proposing the configuration of risk management plans that shall be incorporated in the instruments of water planning at sectoral, basin, regional or local level. The operation of early warning systems shall form part of the monitoring actions of atmospheric conditions and behavior of water sources performed by the National Water Resource Institute, as well as the activities of investigation and measurement of water behavior conducted by other public and private entities in coordination with the Permanent Committee for Contingencies (COPECO) and the National Water Resource Institute.

REGULATIONS ON PROTECTIVE WORKS: The design, approval and construction of hydraulic protective works shall be substantiated in studies and norms of sectoral and local ordering and planning. The cost of hydraulic works constructed by the State may be recovered in whole or in part, chargeable to the various users and in proportion to the benefits derived from them, in compliance with the provisions on recovery of improvements contemplated in the Law of Municipalities and others to be determined under law.

MONITORING: The Water Authority shall conduct water monitoring for the purpose of identifying, measuring, observing, recording, investigating and forecasting the historical behavior of the water resource and of the elements, activities or factors that produce it or affect its quantity and quality. All public or private laboratories, research centers, information centers, academic centers and any other public institution that conducts research and development activities in water matters, are obligated to coordinate their activities and integrate their information with the Water Authority. CHAPTER V HYDRAULIC PROTECTIVE WORKS AND MONITORING

REGULATIONS ON PROTECTIVE WORKS: The design, approval and construction of hydraulic protective works shall be substantiated in studies and norms of sectoral and local ordering and planning. The cost of hydraulic works constructed by the State may be recovered in whole or in part, chargeable to the various users and in proportion to the benefits derived from them, in compliance with the provisions on recovery of improvements contemplated in the Law of Municipalities and others to be determined under law.

MONITORING: The Water Authority shall conduct water monitoring for the purpose of identifying, measuring, observing, recording, investigating and forecasting the historical behavior of the water resource and of the elements, activities or factors that produce it or affect its quantity and quality. All public or private laboratories, research centers, information centers, academic centers and any other public institution that conducts research and development activities in water matters, are obligated to coordinate their activities and integrate their information with the Water Authority. TITLE V WATER USES CHAPTER I ACQUISITION AND LOSS OF RIGHTS TO USES

WATER USE RIGHTS: The use of water for private benefit or by any public entity may only be made by virtue of a right of use granted in accordance with this Law, provided that it is a beneficial use that does not prejudice the rights of third parties.

USES BY OPERATION OF LAW: No special authorization shall be required for using water in common uses, nor for beneficial family purposes on areas not exceeding one hectare and with a consumption not exceeding 0.06 liters per second, which does not cause harm to third parties, when no public systems are installed. Common uses are those intended for the satisfaction of primary subsistence needs, including drinking water and human hygiene and other domestic uses, such as watering plants, washing clothes and utensils and watering domestic animals. Also considered common uses are the watering or bathing of livestock, except when it could pose a risk to human health, fishing for domestic or recreational consumption, in the places determined for such purpose by the competent authorities.

PRINCIPLES FOR WATER USE: The use of the water resource shall be regulated by the following principles:

• 1)

  Optimal human, social and economic benefit;

• 2)

  Sustainability and protection of the resource; and,

• 3)

  Generation of minimum environmental impacts; These criteria shall be applied at the level of watersheds, sub-watersheds and micro-watersheds and shall be specified in the management and planning instruments provided for in this Law.

TYPES OF USE RIGHTS GRANTS: The granting of water use rights shall be made in accordance with the following classifications: 1) According to the type of use: a) Consumptive, which does not require returning the water after use; and, b) Non-consumptive, which requires returning the water after use or using it without extracting it from its source, under the conditions determined by its title. 2) According to the continuity of use: a) Permanent, which allows capturing water whenever resources are available from the source; and, b) Eventual, which allows capturing water only when, after permanent use concessions have been satisfied, surplus resources exist from the source.

USE OF GROUNDWATER: The use of groundwater shall be subject to studies and investigations, regulatory plans and hydrological zoning maps in order to maintain adequate water balance and quality in these aquifers. Its commercial and industrial use shall be recorded in the Regulation of this Law. Pertinent studies shall be conducted for the exploitation or drilling of wells to determine their potential and use, and a permit granted by the Water Authority must be obtained, with prior authorization from the respective Municipal Administration.

SUBORDINATE GRANTS: The respective holder may grant use rights to a legally recognized users' organization, comprised of a plurality of natural or legal persons, who use one or more water sources in common; provided that this does not cause harm to third parties or is done with the purpose of evading responsibilities derived from their condition as owner.

EXCLUSIVITY AND TRANSFER OF RIGHTS: Rights granted for a determined use may not be destined for other uses without the corresponding authorization. Whenever permitted, the holder of these property rights may transfer them in whole or in part among private parties for the same use and purpose, without causing thereby damage to public interest, the environment or third parties. CHAPTER II USE THROUGH ADMINISTRATIVE PROPERTY RIGHTS

INSTRUMENTS FOR DOCUMENTING USE RIGHTS: All rights shall be granted through permits, licenses and concessions at the request of the interested party or through competition, in accordance with what this Law and the regulations on water management and planning provide. No right may be granted that prejudices legitimately granted uses, that affects the balance between recharge and extractions of surface and groundwater, aquifers or limits the use of water for human consumption.

PERMITS AND LICENSES: Municipalities shall grant water use rights through permits and licenses by regulatory means in the following cases:

• 1)

  Domestic users for human consumption;

• 2)

  Industrial, artisanal and micro and small enterprise use;

• 3)

  Artisanal and sport fishing;

• 4)

  Local tourism;

• 5)

  Irrigation systems not exceeding a total of ten (10) hectares;

• 6)

  Agricultural and livestock operations whose isolated consumption does not exceed 0.06 liters per second; and,

• 7)

  Legally recognized water boards. Permits and licenses do not confer property rights and may only be exercised by the applicant.

CONCESSIONS: The Water Authority shall grant use rights through concession agreements based on the precepts of the Concessions Law and applicable administrative laws, in the following cases:

• 1)

  For development of renewable energy projects, utilizing the water resource, as established in the Law for the Promotion of Electrical Energy Generation with Renewable Resources;

• 2)

  For irrigators using infrastructure and irrigation volumes greater than ten (10) hectares, the procedure shall be in accordance with what is established in the Regulation of this Law; and,

• 3)

  Industrial and commercial uses of medium and large enterprises.

PROCEDURES FOR OBTAINING USE PERMITS: The application for obtaining water use rights shall be submitted to the respective governing entity containing the following documentation or information:

• 1)

  Precise determination of the water source to be used, indicating the political demarcation of its location and principal characteristics of interest;

• 2)

  The coordinates (UTM) of the capture and discharge points or the delimitation of the area of use, as appropriate, with the corresponding plans;

• 3)

  The term, class of grant, the required volume and the estimated discharge, when applicable, as well as other characteristics in accordance with the nature of the grant;

• 4)

  Environmental certification issued in accordance with applicable legislation by the competent environmental authority; and,

• 5)

  Schedule for water use and the specification of necessary easements, when applicable.

CONTENTS OF USE RIGHTS GRANT DOCUMENTS: The agreement or document granting water use rights shall contain the following information:

• 1)

  Of the holder of the use right;

• 2)

  Of the waters granted, with mention of their source, quantity and quality and of the natural resources associated with them that have connection with those;

• 3)

  Of the type of water use;

• 4)

  Of the class of concession granted;

• 5)

  Of the easements when applicable;

• 6)

  When the use is for human consumption, a study of contaminants must be added; and,

• 7)

  Other specifications related to the nature of the concession.

TERM OF USE RIGHTS: All grants of water use shall be made with temporary character and a term not exceeding thirty (30) years. Extension may be granted after technical studies and proven hydrological viability by the Water Authority if its holder has not incurred in the grounds for forfeiture provided in the Law and requests it within the five (5) years provided at the end of the term. The term of the concession shall be fixed, taking into account the duration of the activity and in accordance with the hydrological management and planning instruments of the respective watershed or source.

CONDITIONS RELATING TO USE RIGHTS: Characteristics of water use rights are:

• 1)

  To grant its holder the right to use, enjoy, dispose of and claim a water allocation extracted from a natural source under the conditions established in this Law, the hydrological management and planning instruments and those stipulated in the respective contract;

• 2)

  Ownership over the fruits of the waters shall be subject to limitations established in the title of the respective concession;

• 3)

  It is irrevocable as long as the holder complies with the obligations that this Law requires to maintain its validity;

• 4)

  It grants the holder the power to make directly or indirectly through third parties: investments in exploration, extraction, treatment, transformation, reuse, recovery and distribution of the granted waters, respecting the rights of third parties;

• 5)

  It authorizes obtaining the easements provided for in this Law and in accordance with the activities carried out by the holder; and,

• 6)

  Administrative rights may not be transferred nor given as security or alienated in any other form, unless consultation is made with the municipalities or communities.

OBLIGATIONS OF RIGHTHOLDERS: Holders of natural or legal water use rights have the obligation to:

• 1)

  Conserve and protect the resource;

• 2)

  Use efficiently, rationally and effectively the waters in the quantity, place and for the granted use;

• 3)

  Comply with the payment of the water use right as well as the payment of the discharge right when applicable;

• 4)

  Comply with the standards for protection of human health and protection and conservation of the environment and natural resources;

• 5)

  Facilitate monitoring actions and inspections that the water authority and the holder of the case may order;

• 6)

  Pay indemnifications resulting from the imposition of easements necessary for the exercise of the granted right; and,

• 7)

  The others that result from this Law and its regulations. CHAPTER III SUSPENSION AND LOSS OF THE RIGHT OF USE

SUSPENSION OF RIGHTS: The Water Authority or, in its absence, the respective Municipality may, through a reasoned resolution, suspend deliveries of the water use right to the user when the latter fails to comply with the agreed norms and those established in this Law, without prejudice to other applicable sanctions. When in their interest, holders of water use rights may renounce their exercise, provided it is permitted by Law or has been agreed upon.

REASONS FOR SUSPENSION: Water use rights may be suspended without incurring civil liability on the part of the Water Authority or the corresponding management holder in the following cases:

• 1)

  During periods fixed for repairs or maintenance of public works for water intake, conveyance, distribution, gauging, or other similar works;

• 2)

  To prevent or remedy over-exploitation of aquifers;

• 3)

  To protect or restore an ecosystem;

• 4)

  To preserve water sources or protect them against contamination;

• 5)

  Due to extraordinary scarcity or drought;

• 6)

  To preserve or control water quality;

• 7)

  For reasons of force majeure; and,

• 8)

  To protect public health and to allocate its consumption as a priority. The actions covered by this Article shall be published and communicated in a timely manner to the interested parties.

REVOCATION OF RIGHTS WITHOUT LIABILITY: Water use rights may be revoked without any compensation in the following cases:

• 1)

  For inadequate use of water, duly verified by the respective authority;

• 2)

  For failure to pay the fee for three (3) consecutive months, after prior notice under penalty of revocation;

• 3)

  For use of water for a purpose different from that for which it was granted or in volumes exceeding those authorized;

• 4)

  For discharging contaminants into water courses or water bodies in contravention of this or other laws and their regulations;

• 5)

  For repeated violation of other obligations provided for in this Law or its regulations; and,

• 6)

  When it is necessary to allocate water to the supply of populations or to other public services, the rights of any other use that interferes with those may be suspended temporarily or permanently.

FORFEITURE WITHOUT COMPENSATION: Water use rights, regardless of their origin, forfeit by operation of law without any compensation in the following cases:

• 1)

  If the waters are not utilized for two (2) consecutive years or if the use for which the right was requested ceases;

• 2)

  If the water use right is transferred in violation of the provisions contained in the instruments governing water use rights; and,

• 3)

  If the term for which it was granted expires.

LIMITATIONS OF GRANTED RIGHTS: The granting or modification of water use rights is subject to the following limitations:

• 1)

  That water uses are granted within the available water resources permitted in the planning and management instruments applicable to the respective basin;

• 2)

  That the natural source to which the application refers has a real volume of water;

• 3)

  That it does not jeopardize the environment and ecosystems;

• 4)

  That it does not jeopardize public health and the environment;

• 5)

  That it does not jeopardize water quality; and,

• 6)

  That the rights of third parties are not affected.

LIMITATIONS FOR MANAGING WATER USE RIGHTS: Officials and employees of any public entity described in Title II, Chapter I of this Law are prohibited from requesting, operating through third parties, or acquiring water use rights during the exercise of their functions. This measure extends to the spouse and relatives of the prohibited persons up to the second degree of consanguinity or affinity. Such prohibition does not include rights obtained prior to the election, appointment, or designation of the persons indicated, nor those acquired by inheritance or bequest after the election, appointment, or designation, nor those that the spouse brings to marriage. Any acquisition that contravenes this Article is null and vests in the State at no cost.

LEGAL PROTECTION FOR WORKS: Works constructed under concession agreements or permits or licenses shall have the status of public domain from the start of their construction, when they form part of the infrastructure of a public service. TITLE VI ORDERING, CADASTRE AND WATER REGISTRY CHAPTER I ORDERING, PLANNING, POLICIES AND STRATEGIES OF THE SECTOR

COMPETENCE FOR ORDERING: The territorial ordering of the water sector shall be the responsibility of the Water Authority, which shall comprise the following instruments:

• 1)

  The inventory survey of water resources and ecosystems related to the definition of characteristics, potentialities and current uses of surface and groundwater resources;

• 2)

  National Water Balance updated every five (5) years;

• 3)

  The Water Resource Management Plan or Regulatory Plan;

• 4)

  The map or maps of water zoning that shall contain graphic information expressed in territorial maps regarding the location, characteristics and established uses of water resources; and,

• 5)

  Technical and legal information systems. The Basin constitutes a management unit. The instruments of territorial ordering shall be established on the basis of management in the basins of the Chamelecón, Choluteca, Nacaome, Patuca, Aguán and Río Ulúa rivers, with their respective sub-basins and micro-basins; in addition, they may be subdivided or integrated by regions.

WATER PLANNING: The following are instruments of water planning:

• 1)

  The Plan of the Nation;

• 2)

  National Water Plan or Sectoral Master Plan for Water Resources; and,

• 3)

  Water Plans by basin. The National Water Plan shall be approved by the Executive Power through a Presidential Agreement of the Republic.

CONTENT OF THE SECTORAL MASTER PLAN FOR WATER RESOURCES OR NATIONAL WATER PLAN: The National Water Plan shall comprise:

• 1)

  The uses and multiple uses of existing and foreseeable surface and groundwater resources;

• 2)

  Distribution of uses and water balances in quality and quantity of the basins;

• 3)

  The consolidation of Basin Water Plans;

• 4)

  The conditions for transfers or diversions of water between territorial areas of different basins contained in different Basin Water Plans and of waters in border and transborder territories;

• 5)

  Current hydraulic infrastructure and basic infrastructure required by the Plan;

• 6)

  The integration and updating of the catalog of projects of national interest for the sustainable and efficient use of water, its conservation and protection;

• 7)

  Measures to promote public and private investment;

• 8)

  Provisions for extreme conditions of droughts or floods and their corresponding actions;

• 9)

  The goals, objectives as well as the impacts in the economic, social and environmental order of the plan; and,

• 10)

  Technical justifications and other supporting elements. CHAPTER II WATER CADASTRE

CREATION OF THE WATER CADASTRE: The Water Authority shall create a General Cadastre of Works and Water Resources, surface and groundwater, in which shall be indicated the location, geological and physical conditions of water courses, lakes, lagoons, aquifers, wells, springs and other water sources, also making the connection to their economic, social and legal dimensions.

CREATION OF THE PUBLIC WATER REGISTRY: The Public Registry of Waters, surface and groundwater, is hereby created, integrated into the System of Property Registries, in which shall be registered the real rights of water use that are granted, their subsequent modifications, legal encumbrances and their extinction; likewise, the water allocations resulting from public reserves and other real rights of water origin declared by the competent authority shall be registered. TITLE VII ECONOMIC REGIME SOLE CHAPTER RATE FRAMEWORK

RATE FRAMEWORK: The rate framework and its review shall be established by the Water Authority and, in its case, by the municipalities, prior to the opinion and review of calculations by the respective Regulatory Bodies. This rate framework comprises:

• 1)

  The economic compensation for water use in the form of fees, rates, contributions, fines, sanctions and other exactions and charges established in accordance with the criteria defined in this Law;

• 2)

  Economic compensation for using a water body as a discharge source for the discharge of treated wastewater through payment that the rights holder makes to the Water Authority or municipalities; and,

• 3)

  Rates for the use of major water infrastructure that the user shall pay to cover operation, maintenance, administration, financial costs and recovery of infrastructure investment.

CRITERIA FOR DEFINING ECONOMIC COMPENSATION: The criteria for establishing the system of economic compensation for the water sector are:

• 1)

  Economic valuation of the elements involved in the comprehensive management of water resources;

• 2)

  To reflect the principles of economic efficiency and transparency;

• 3)

  Compensation shall reflect actual costs;

• 4)

  It shall aim at reasonable and efficient use of resources utilized;

• 5)

  The measurement of volumes of water used and discharged shall be used as an essential instrument to establish the respective compensation;

• 6)

  Compensation shall not reflect as a hidden cost the amount of subsidy. To guarantee equitable access to water, subsidy policies shall be applied in which these costs are identified. Compensation shall not be used to limit access to water, therefore subsidy policies shall be established to identify and measure these social costs;

• 7)

  Costs must comprise recovery of operation expenses and recovery of capital, as well as rational and effective administrative and financial expenses; and,

• 8)

  The restoration, afforestation, reforestation and management of productive areas.

DISTRIBUTION OF INCOME: The income received by the holders of water resource management through the use of waters and through the discharge of wastewater shall be entirely redistributed to cover:

• 1)

  Costs of service operations;

• 2)

  Programs for conservation, protection, restoration and monitoring of water management;

• 3)

  Training and strengthening of funds for protection, conservation, restoration and payment of incentives indicated in this Law;

• 4)

  The construction of water infrastructure for uses, conservation, restoration and protection;

• 5)

  Research, planning, ordering and water monitoring; and,

• 6)

  The promotion of environmental culture and efficient uses of water resources.

SYSTEM OF INCENTIVES: The Water Authority shall establish incentive programs based on studies of economic, social, and environmental cost-benefit analysis with a medium and long-term vision, for:

• 1)

  The development, implementation, or modification of technologies, processes, installations, or equipment, as well as changes in exploitation that result in a reduction in water uses and consumption or a lesser contribution at the source of contaminant loads to the waters used;

• 2)

  The protection of water resources in protected areas, wetland zones, and mangrove areas;

• 3)

  The potabilization and desalination of waters;

• 4)

  The treatment of wastewater through appropriate processes or methods; and,

• 5)

  The implementation of systems for the reuse of wastewater.

OPERATING EXPENSES: The State, through the General Budget of Income and Expenses of the Republic, shall allocate resources for the operation of the Water Authority, its regional agencies, and the basin councils. Through inter-institutional agreements, State organs and institutions may transfer human and material resources to the Water Authority. The Water Authority may also receive resources from international cooperation.

NATIONAL WATER RESOURCES FUND: The National Water Resources Fund is created, which shall hereinafter be called "The Water Fund," administered under the modality of a trust fund for the purpose of financing programs and projects for the conservation, protection, research, and monitoring of the national water resource indicated in Article 85 of this Law. The Secretary of State in the Office of Natural Resources and Environment is authorized to establish, through agreement with a state bank, the trust fund of the Water Fund, with an initial allocation of FIFTEEN MILLION LEMPIRAS, (L.15,000,000.00).

COMPOSITION OF THE TRUST FUND: The assets of the trust fund shall consist of:

• 1)

  State contributions;

• 2)

  Income from the concept of exploitation fees, the administrative procedures carried out by user persons;

• 3)

  Net income generated by the trust fund;

• 4)

  National and international donations, transfers, and subsidies;

• 5)

  Fines and fees collected by the State for non-compliance with the provisions of this Law; and,

• 6)

  Income from environmental services related to water resources that shall be administered independently.

ALLOCATION OF RESOURCES: The resources of the trust fund shall be distributed as follows:

• 1)

  Sixty percent (60%) shall be allocated to financing programs for conservation, reforestation, protection, prevention, and recovery of natural resources related to water resources;

• 2)

  Fifteen percent (15%) for research, technological appropriation, and training on the efficient and sustainable use, conservation, and improvement of water resources, carried out by the National Water Resources Institute;

• 3)

  Twenty percent (20%) for maintenance, operation, and expansion of the observation network and collection of hydrometeorological data as input for the integrated management of water resources, for the National Water Resources Institute;

• 4)

  Five percent (5%) allocated to Basin Councils to be invested in Conservation Areas that are part of the National System of Protected Areas or areas of municipal protection. In any case, the Water Authority may restructure this percentage structure in accordance with the operational needs it may have at that time. TITLE VIII RESOURCES, JURISDICTION, AND SANCTIONS CHAPTER I RESOURCES AND JURISDICTION.

LEGAL REMEDIES: Against administrative resolutions issued in the application of this Law, the remedies provided in the Administrative Procedures Law shall apply. Once the administrative remedy is exhausted, the administrative contentious action shall proceed and shall be processed in accordance with the respective Law. CHAPTER II INFRACTIONS AND SANCTIONS

SANCTIONS: Any natural or legal person who violates the provisions of this Law and its regulations shall be sanctioned administratively, as appropriate, with a fine imposed by the Water Authority, revocation or suspension of the exploitation right, or suspension of works; without prejudice to the civil or criminal actions that may apply.

INFRACTIONS: The following are considered administrative infractions:

• 1)

  The diversion of waters from their courses and the extraction of groundwaters without the corresponding exploitation right, when required in accordance with the provisions of this Law;

• 2)

  Non-compliance with the conditions established in the resolution granting the exploitation right;

• 3)

  The execution, without proper authorization, of works or labor in public water courses, or in areas subject to limitations in accordance with the laws;

• 4)

  Executing land perforation works and installing equipment for the exploration and exploitation of groundwaters without first having the corresponding permit;

• 5)

  The use of water in volumes exceeding those authorized;

• 6)

  The extraction of aggregates or other materials from the water courses or the occupation thereof without the corresponding authorization, when required;

• 7)

  Discharges in the water courses or infiltration into the subsoil of polluting substances or those that may affect the quality and quantity of surface and groundwaters, without the corresponding authorization, or in violation of the authorizations granted;

• 8)

  Actions that propose to prevent inspections or examinations by the Water Authority, or the concealment of data required by it; and,

• 9)

  Other actions or omissions of an administrative nature that violate the provisions of this Law and its Regulation.

CLASSIFICATION OF INFRACTIONS AND SANCTIONS: Infractions to water legislation are classified by the Water Authority as minor, serious, and very serious, considering the damages generated, circumstances of the commission of the infraction, and risk or affectation to the health of the population or protected natural areas. All these infractions and sanctions shall be subject to an Internal Regulation of this Law. Sanctions shall be applied in the following manner:

• 1)

  Minor infractions shall be sanctioned with a fine of ten (10) minimum monthly wages, at their maximum scale;

• 2)

  Serious infractions, with fines of up to twenty (20) minimum monthly wages, at their maximum scale; and,

• 3)

  Very serious infractions, with fines of up to forty (40) minimum monthly wages, at their maximum scale. These sanctions shall be applied without prejudice to the suspension of the granting of the exploitation right, the application of police sanctions, and the corresponding civil and criminal responsibilities and must be published in written, radio, and television media.

GRADUATION OF INFRACTION AND SANCTIONS: The National Water Authority, in classifying infractions and administrative sanctions derived from the application of this Law, shall take into account, as appropriate, the following criteria:

• 1)

  Severity of the damages generated;

• 2)

  Circumstances of the commission of the infraction;

• 3)

  Affectation or risks to the health of the population;

• 4)

  Impacts on protected natural areas;

• 5)

  History of the offender or their economic condition;

• 6)

  Economic benefits obtained by the offender;

• 7)

  Costs that the State must assume to address the damages generated; If the infraction is constitutive of criminal responsibility, the Water Authority shall file the corresponding complaint before the competent authorities for the purposes of law. Without prejudice to the above, the Water Authority may request that the Public Ministry or the competent authority proceed with the seizure of assets used to commit the infraction to place them at the disposal of the competent authority. It may also order the demolition of the infrastructure that gave rise to the infraction in the face of an imminent greater damage. Except as provided in special laws, indemnification for damages caused shall be decreed by the competent courts. TITLE IX FINAL AND TRANSITORY PROVISIONS SINGLE CHAPTER FINAL AND TRANSITORY PROVISIONS

LEGAL COORDINATION: In cases of alluvion, flood, inundation, change of course of a river, or its division into two (2) arms, the provisions of the Civil Code on soil accessions shall be observed. Lands that may be inundated during ordinary floods of rivers, streams, lakes, lagoons, or reservoirs shall retain their legal classification.

ADJUSTMENT, RESCISSION, AND PRESERVATION OF RIGHTS: Every person shall present to the Water Authority a statement containing the complete description of their exploitation, for the purposes of its adjustment to this Law. The period to exercise this right shall be one (1) year. The Water Authority may rescind, preserve, or modify any use or exploitation right issued prior to the approval of this Law in the water resources of the country.

TRANSFER OF ASSETS AND PERSONNEL: The Secretary of State in the Office of Natural Resources and Environment shall perform the organic reorganization of the General Directorate of Water Resources, proceeding with the transfer of surplus assets and, in accordance with the procedures established by law, shall transfer qualified personnel to the Water Authority. The Secretary of State in the Office of Public Works, Transportation, and Housing shall proceed with the transfer of assets, equipment, personnel, and other surplus from the National Meteorological Service to the Water Authority in accordance with the procedures of law.

CALL FOR COMPETITION: The National Water Resources Council shall call for a public competition for the position of Executive Director of the Water Authority, proposing a slate of three candidates to the Board of Directors for selection and appointment.

REGULATION OF THE LAW: The Executive Branch, through the Secretary of State in the Office of Natural Resources and Environment, shall proceed to issue the regulations of this Law within a period not exceeding sixteen (16) months after this Law has been published in the Official Newspaper "LA GACETA" and shall perform the administrative transformations necessary for its correct implementation. Until this Law is regulated, those regulatory provisions that are applicable shall remain in force.

COMPLEMENTARITY AND REPEALING PROVISION: The provisions of this Law are complemented by the content of the conventions and treaties subscribed and ratified by Honduras concerning the protection, conservation and use in general with the management of rights related to waters. The Law on the Utilization of National Waters of April 9, 1927 and its amendments are hereby repealed.

EFFECTIVE DATE: This Law shall take effect as of the day of its publication in the Official Gazette "LA GACETA". Given in the city of Tegucigalpa, municipality of the Central District, in the Session Chamber of the National Congress, on the twenty-fourth day of the month of August of Two Thousand Nine. JOSÉ ALFREDO SAAVEDRA PAZ PRESIDENT CARLOS ALFREDO LARA WATSON SECRETARY GONZALO ANTONIO RIVERA SECRETARY To the Executive Branch. Therefore: Execute. Tegucigalpa, M.D.C., September 30, 2009. ROBERTO MICHELETTI BAÍN CONSTITUTIONAL PRESIDENT OF THE REPUBLIC THE STATE SECRETARY IN THE DEPARTMENTS OF NATURAL RESOURCES AND ENVIRONMENT (SERNA). VALERIO GUTIÉRREZ NOTICE OF SUPPLEMENTARY TITLE The undersigned, Secretariat of the Court of First Instance of the Choluteca Department, to the general public and for the purposes of law, GIVES NOTICE: That Mr. JOSÉ ISMAEL VARGAS LAINE, of legal age, married, farmer and rancher, Honduran, with address and residence in the municipality of Choluteca, department of Choluteca, with identity document number 0601-1963-01646, presented to this Court a request for Supplementary Title of TWO PARCELS OF LAND located in this city of Choluteca, department of Choluteca, Lot No. 1, PARCEL OF LAND located in the hamlet of SANTA ELENA, with a surface area of THREE PUNTEROS WITH FIFTY HECTARES, (3.50 Has) and Lot No. 2, PARCEL OF LAND located in the hamlet of Istoca, aides Centro, municipality of Choluteca, department of Choluteca, comprising the site of SANTA ELENA, with a surface area of THREE PUNTEROS WITH FIFTY HECTARES, bordering to the SOUTH with AZUCARRERA LA GRECIA WITH RÍOS CADE FORME DIO AND PROPERTY OF ISÍAS HERRERA NOVE ÁGUILA TO THE EAST, with PROPERTY OF SAMUEL SANDRES, STREET BY ACCESS: and TO THE WEST with AZUCARRERA LA GRECIA. PARCEL OF LAND located in the hamlet of Istoca, aides Centro, municipality of Choluteca, department of Choluteca, with a surface area of ONE POINT ZERO FIVE HECTARES, (1.05 Has), with the following boundaries: TO THE NORTH, with the property of CELERINO FLORES, TO THE SOUTH, with PROPERTY OF SAMUEL SANDRES, TO THE EAST, with PROPERTY OF MR. NICOLÁS LÓPEZ, and TO THE WEST, with PROPERTY OF SAMUEL SANDRES, properties which together are fenced with barbed wire and wooden posts, cultivated with fruit trees, jaragua grass, celery for ranching and have more than twenty-five years of uninterrupted possession, with no other rival possessors existing. Choluteca, August 11, 2009. AIDA ESPERANZA GODOY CARRANZA SECRETARY 13N., 14D. 2009, and 13 E 2010. SUPREME COURT OF JUSTICE Court of First Instance of the Choluteca Department XXV Anniversary of the Constitution of the Republic NOTICE OF SUPPLEMENTARY TITLE The undersigned, Secretariat of the Court of First Instance of the Choluteca Department, to the general public and for the purposes of law, GIVES NOTICE: That Mr. DANIEL MARTÍNEZ PRAXEDES CASCO, of legal age, married, domiciled in the community of Tierra Hueca, village of Cayanini, municipality of El Corpus, department of Choluteca, with identity No. 0605-1972-00660, presented to this Court a request for SUPPLEMENTARY TITLE of a PROPERTY located in the hamlet of La Gravera, village of Cayanini, municipality of El Corpus, department of Choluteca, Orthophotoname JC-11. Property extension of THIRTY-FIVE HECTARES, (10.55 Has), legal nature, site Agua y Palanca, with the following boundaries: TO THE NORTH, with RAFAEL ARCE ORTIZ, BARTOLO SORIANO; to the South, DANIEL PRAXEDES MARTINEZ CASCO; to the East, TO THE WEST, with RAFAEL ARCE ORTIZ, DANIEL PRAXEDES MARTINEZ CASCO. Choluteca, May 20, 2009. AIDA ESPERANZA GODOY CARRANZA SECRETARY 14O., 14N. and 14 D. 2009