UT HB0292

Water right subordination agreements are exempted from the rule against perpetuities, meaning these agreements will not be invalidated for potentially lasting too long

A water right subordination agreement is defined as a written agreement where a water right holder consents to their water right being placed behind other water rights that would otherwise be junior in priority

"Person with control of a water right" includes state engineer-approved water right holders, record owners of perfected water rights, or those with written authorization from such persons

The exemption applies retroactively, validating any existing water right subordination agreements that may have been vulnerable to perpetuities challenges

Effective date: May 6, 2026