New Jersey § 58:1a-7

§ 58:1a-7.

a. The governing body of a county wherein an area of critical water supply concern

has been designated by the commissioner pursuant to section 6 of P.L.1981, c. 262

( C.58:1A-6 ) may establish a Water Allocation Credit Exchange to facilitate the transfer of water

allocation credits within the area of critical water supply concern. (1) Any two or more adjacent or proximate counties located within any portion of a

designated area of critical water supply concern may establish a Regional Water Allocation

Credit Exchange to facilitate the transfer of water allocation credits within the

area of critical water supply concern on a cooperative basis. (2) Any Water Allocation Credit Exchange established in a county, by resolution of

its governing body, prior to the effective date of P.L.1993, c. 202 ( C.58:1A-7.3 et al.) shall be vested with the authority provided herein. (3) Any Regional Water Allocation Credit Exchange established in two or more adjacent

or proximate counties, by resolution of their respective governing bodies, prior to

the effective date of P.L.1993, c. 202 ( C.58:1A-7.3 et al.) shall be vested with the authority provided herein. b. The owner of a sending well in a designated area of critical water supply concern

may transfer a water allocation credit to the owner of a receiving well requiring

the additional gallonage to meet the demand for water within its service area. This transfer may occur through a direct “arms length” transaction between the well

owners, or between a well owner and a local government unit, or through the auspices

of a county Water Allocation Credit Exchange established for this purpose pursuant

to the provisions of this section. The transfer shall be subject to confirmation by the department. The department shall issue a determination within 30 days of receipt of a request

for confirmation and shall not unreasonably withhold confirmation of the transfer

unless it can be demonstrated that the transfer will result in a significant adverse

impact on the designated area of critical water supply concern. Upon confirmation of the transfer, the department shall modify the water allocation

permits issued for diversions from the sending and receiving wells to reflect the

water allocation credits being transferred, in accordance with the provisions of section

6 of P.L.1981, c. 262 ( C.58:1A-6 ). c. The owner of a receiving well may increase the amount of gallons of water per year

pumped from that well at a level equaling the amount of the water allocation credit.