# Title 61 — Waters

## Chapter 61-13 — Organization of Corporations for Irrigation Purposes

### § 61-13-01. Corporations or limited liability companies may be organized for irrigation

purposes.
A corporation or limited liability company may be formed for the purpose of acquiring water
rights, or for the purpose of establishing, owning, leasing, operating, and maintaining an
irrigation system and selling, distributing, supplying, and delivering water for irrigation purposes,
or for domestic use, to its members or stockholders.
### § 61-13-02. Powers of corporations and limited liability companies organized under

chapter.
A corporation or limited liability company organized for irrigation purposes may:
1. Engage in any corporate activity not otherwise prohibited by law and not inconsistent
with the purposes mentioned in section 61-13-01.
2. Acquire water rights, easements, sites, and all means, property, machinery, and
equipment necessary or required in connection with the operation and maintenance of
an irrigation system.
3. Establish, construct, maintain, and operate pumping plants, wells, pipelines, canals,
and ditches and all other necessary facilities required for the appropriation of water
and the operation and maintenance of an irrigation system.
4. Borrow money in an amount, whether in excess of the amount of its capital stock or
membership interests or not, necessary to enable it to carry out the intent and
purposes for which it is organized, and as security for the payment of any loan, to
pledge or mortgage real or personal property acquired by the proceeds of such loan,
or otherwise, including future earnings or income of the corporation or limited liability
company.
5. Acquire, purchase, or lease water rights, franchises, and irrigation works and facilities,
or any part thereof, from any person, firm, corporation, limited liability company, or
irrigation district, and from any state or federal agency.
6. Furnish water for irrigation or domestic use, to its members or stockholders, and to
furnish and sell water to any person, firm, corporation, or limited liability company.
7. Adopt bylaws and rules for the furnishing of water, and for charges to be made
therefor.
8. Levy assessments against its members or stockholders necessary for the
maintenance and operation of the irrigation system, if one is established and
maintained.
9. Fix rates of tolls and charges for water, to collect the same, to require that charges for
water be paid in advance of the irrigation season, to suspend the delivery of water to
any land for the irrigation of which the charges and tolls have not been paid, and to
provide for the suspension of water delivery to any land upon which assessments,
apportioned and levied, remain unpaid for one year after having become due and
payable.
10. Enter into contracts with any person, firm, association, corporation, limited liability
company, irrigation district, this state, or any department or agency thereof, or the
United States, or with any department or agency of the United States, for supplying
water for the irrigation of the lands of its members or stockholders. Such supply of
water may be either the entire supply of water necessary to irrigate said lands or to
supplement waters supplied or controlled by the corporation or limited liability
company.
11. Do each and every thing necessary, suitable, or proper for the accomplishment of any
one or more of the objects enumerated in this section, and to exercise and possess all
powers, rights, and privileges necessary or incidental to the purposes for which the
corporation or limited liability company is organized, or to the activities in which it is
engaged.

12. Exercise any other rights, powers, and privileges not inconsistent with the purposes of
this chapter granted by this state to ordinary corporations or limited liability companies
or to mutual aid corporations organized under chapter 10-12.
### § 61-13-03. Articles of incorporation or bylaws may restrict sales to stockholders -

When stock to become appurtenant to land - Sale of water to others.
Any corporation organized for irrigation purposes may provide in its articles of incorporation
or bylaws that water shall be sold, distributed, supplied, or delivered only to owners of its shares
of stock and that such shares shall be appurtenant to the lands described in the certificate
issued and evidencing such shares of stock. When such certificate and a copy of such articles
of incorporation or bylaws are recorded in the office of the recorder of the county in which such
lands are situated, such shares of stock shall become appurtenant to said lands and shall be
transferred only with the sale or transfer of such lands, except in the event of sale or forfeiture of
such shares of stock for delinquent assessments thereon as provided in section 61-13-04.
Notwithstanding such provision in its articles of incorporation or bylaws, any corporation
organized for irrigation purposes may sell water to an irrigation district, this state, or any
department or agency thereof, and to the United States, or any department or agency thereof, at
the same rates as to holders of shares of such corporation. In the event lands to which any such
stock is appurtenant are acquired by this state, the United States, or any department or agency
thereof, such stock shall be canceled by the corporation, but shall be reissued to any persons
subsequently acquiring title to such land.
### § 61-13-03.1. Articles of organization or bylaws may restrict sales to members - When

membership interest to become appurtenant to land - Sale of water to others.
Any limited liability company organized for irrigation purposes may provide in the articles of
organization or bylaws that water must be sold, distributed, supplied, or delivered only to owners
of the limited liability company's membership interests and that these membership interests
must be appurtenant to the land described in the document evidencing these membership
interests. If a copy of the articles of organization or bylaws is recorded in the office of the
recorder of the county in which the lands are situated, the membership interests become
appurtenant to the lands and may be transferred only with the sale or transfer of the lands,
except in the event of sale or forfeiture of the membership interests for delinquent assessments
on the land as provided in section 61-13-04. Notwithstanding any provision in the limited liability
company's articles of organization or bylaws, any limited liability company organized for
irrigation purposes may sell water to an irrigation district, this state, or any department or
agency of this state, and to the United States, or any department or agency of the United
States, at the same rates as to holders of membership interests of the limited liability company.
If lands to which any membership interest is appurtenant are acquired by the state, the United
States, or any department or agency of the state or the United States, the membership interest
must be canceled by the limited liability company and must be reissued to any persons
acquiring title to the land at a later date.
### § 61-13-04. Assessments may be levied upon capital stock.

Any corporation or limited liability company organized for irrigation purposes, unless
otherwise provided in its articles of incorporation or bylaws, may levy assessments upon its
capital stock whether or not such stock is paid in full. If any shares of stock of any such
corporation or membership interests of any such limited liability company, which have been
made appurtenant to any land as provided in section 61-13-03, become delinquent in the
payment of assessments, the right to receive water thereunder or through dividends on such
stock or membership interests may be denied and such shares or membership interests may be
forfeited to the corporation or limited liability company.
