Bostwick Properties, Inc. v. Montana Department of Natural Resources & Conservation

2009 MT 181, 208 P.3d 868, 351 Mont. 26, 2009 Mont. LEXIS 210, 2009 WL 1424915
CourtMontana Supreme Court
DecidedMay 21, 2009
DocketDA 08-0248
StatusPublished
Cited by14 cases

This text of 2009 MT 181 (Bostwick Properties, Inc. v. Montana Department of Natural Resources & Conservation) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bostwick Properties, Inc. v. Montana Department of Natural Resources & Conservation, 2009 MT 181, 208 P.3d 868, 351 Mont. 26, 2009 Mont. LEXIS 210, 2009 WL 1424915 (Mo. 2009).

Opinions

JUSTICE COTTER

delivered the Opinion of the Court.

¶ 1 The Montana Department of Natural Resources and Conservation (DNRC) appeals an order from the Eighteenth Judicial District Court granting a writ of mandamus, or writ of mandate, to Bostwick Properties, Inc. (Bostwick). This writ directed DNRC to issue a water use permit to Bostwick for the construction of a municipal water system for the Lazy J South subdivision, which Bostwick is developing in Gallatin County. We reverse the District Court’s issuance of the writ and remand this matter for further proceedings.

FACTUAL AND PROCEDURAL BACKGROUND

¶2 On December 22, 2005, Bostwick filed an application with the DNRC for a water use permit in order to use water from an aquifer for the Lazy J South subdivision. Prior to submitting the application, Bostwick had conducted drilling and extensive testing of this aquifer which is located approximately 1300 feet below the earth’s surface.

¶3 DNRC is the state agency responsible for issuing water use [28]*28permits. The requirements for such permits are set forth in Title 85, chapter 2, part 3 of the Montana Code Annotated. The first step in this process requires the person or entity seeking a water permit to file an application with DNRC. Section 85-2-302, MCA. Once DNRC has determined the application is “correct and complete,” DNRC then provides public notice of the application and gives other parties an opportunity to file objections. Sections 85-2-307 and -308, MCA. If the DNRC determines that valid objections are presented, it then holds a contested case hearing pursuant to the Administrative Procedure Act, Title 2, chapter 4, part 6. Section 85-2-309, MCA.

¶4 If no objections have been received, DNRC has 120 days from the last date of publication of notice to either “grant, deny, or condition” the application. Section 85-2-310(1), MCA. If objections have been received or a hearing has been held, then DNRC has 180 days from the last date of publication of notice to do the same. Section 85-2-310(1), MCA. The DNRC also has the discretion to extend these deadlines by 60 days. Section 85-2-310(1), MCA. DNRC is prohibited from denying or modifying a permit "unless the applicant is first granted an opportunity to be heard.” Section 85-2-310(3), MCA. Accordingly, “[i]f an objection is not filed against the application but the department is of the opinion that the application should be denied or approved in a modified form or upon terms, conditions, or limitations specified by it, the department shall prepare a statement of its opinion and its reasons for the opinion.” Section 85-2-310(3), MCA. DNRC is required to then serve this statement of opinion upon the applicant, giving the applicant an opportunity to request a hearing on the application within 30 days after notice of the statement of opinion has been mailed. Section 85-2-310(3), MCA.

¶5 The criteria for evaluating whether to issue, deny, or condition a water use permit are found in §85-2-311, MCA, and read as follows:

85-2-311. Criteria for issuance of permit. (1) A permit may be issued -under this part prior to the adjudication of existing water rights in a source of supply. In a permit proceeding under this part, there is no presumption that an applicant for a permit cannot meet the statutory criteria of this section prior to the adjudication of existing water rights pursuant to this chapter. In making a determination under this section, the department may not alter the terms and conditions of an existing water right or an issued certificate, permit, or state water reservation. Except as provided in subsections (3) and (4), the department shall issue a permit if the applicant proves by a preponderance of evidence that [29]*29the following criteria are met:
(a) (i) there is water physically available at the proposed point of diversion in the amount that the applicant seeks to appropriate; and
(ii) water can reasonably be considered legally available during the period in which the applicant seeks to appropriate, in the amount requested, based on the records of the department and other evidence provided to the department. Legal availability is determined using an analysis involving the following factors:
(A) identification of physical water availability;
(B) identification of existing legal demands on the source of supply throughout the area of potential impact by the proposed use; and
(C) analysis of the evidence on physical water availability and the existing legal demands, including but not limited to a comparison of the physical water supply at the proposed point of diversion with the existing legal demands on the supply of water.
(b) the water rights of a prior appropriator under an existing water right, a certificate, a permit, or a state water reservation will not be adversely affected. In this subsection (l)(b), adverse effect must be determined based on a consideration of an applicant’s plan for the exercise of the permit that demonstrates that the applicant’s use of the water will be controlled so the water right of a prior appropriator will be satisfied;
(c) the proposed means of diversion, construction, and operation of the appropriation works are adequate;
(d) the proposed use of water is a beneficial use;
(e) the applicant has a possessory interest or the written consent of the person with the possessory interest in the property where the water is to be put to beneficial use, or if the proposed use has a point of diversion, conveyance, or place of use on national forest system lands, the applicant has any written special use authorization required by federal law to occupy, use, or traverse national forest system lands for the purpose of diversion, impoundment, storage, transportation, withdrawal, use, or distribution of water under the permit;
(f) the water quality of a prior appropriator will not be adversely affected;
(g) the proposed use will be substantially in accordance with the classification of water set for the source of supply pursuant to 75-5-301(1); and
[30]*30(h) the ability of a discharge permitholder to satisfy effluent limitations of a permit issued in accordance with Title 75, chapter 5, part 4, will not be adversely affected.
(2) The applicant is required to prove that the criteria in subsections (l)(f) through (l)(h) have been met only if a valid objection is filed. A valid objection must contain substantial credible information establishing to the satisfaction of the department that the criteria in subsection (l)(f), (l)(g), or (l)(h), as applicable, may not be met. For the criteria set forth in subsection (l)(g), only the department of environmental quality or a local water quality district established under Title 7, chapter 13, part 45, may file a valid objection.

¶6 After filing the application, Bostwick’s hydrologists entered into communications with DNRC concerning its application. In July 2006, DNRC terminated Bostwick’s application for allegedly taking too long to submit certain information which DNRC required. On November 30, 2006, Bostwick filed another application for a new water use permit for the same aquifer.

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Cite This Page — Counsel Stack

Bluebook (online)
2009 MT 181, 208 P.3d 868, 351 Mont. 26, 2009 Mont. LEXIS 210, 2009 WL 1424915, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bostwick-properties-inc-v-montana-department-of-natural-resources-mont-2009.