East Cherry Creek Valley Water & Sanitation District v. Rangeview Metropolitan District

109 P.3d 154, 2005 Colo. LEXIS 234
CourtSupreme Court of Colorado
DecidedMarch 28, 2005
DocketNo. 04SA6
StatusPublished
Cited by4 cases

This text of 109 P.3d 154 (East Cherry Creek Valley Water & Sanitation District v. Rangeview Metropolitan District) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
East Cherry Creek Valley Water & Sanitation District v. Rangeview Metropolitan District, 109 P.3d 154, 2005 Colo. LEXIS 234 (Colo. 2005).

Opinion

COATS, Justice.

East Cherry Creek appealed directly to this court from an order of the water court, construing and modifying a 1985 decree that adjudicated use rights to nontributary Arapahoe aquifer ground water. In its current order, the water court authorized Rangeview, the state’s lessee, to construct additional wells as necessary to withdraw the state’s full, decreed entitlement, and it removed the volumetric limits of the original decree on individual wells. The court reasoned that statutory and rules changes subsequent to the decree would permit Rangeview greater flexibility in exercising the water use right than was contemplated by the decree, and [156]*156that absent a showing of injury, there was no impediment to modifying the prior decree.

Because the state was entitled to an adjudication of its right to use the full amount of available nontributary ground water underlying its lands, without making a threshold showing of a non-speculative, beneficial use; and because it complied with the procedural requirements for such an adjudication, the water court’s order decreeing that use right is affirmed.

I.

The dispute arises from the attempt of the Rangeview Metropolitan District and the State Board of Land Commissioners to be relieved of conditions imposed in a 1985 water decree. The land overlying the nontribu-tary ground water at issue is part of the former Lowry Range and is owned by the state. In 1983, the Board entered into a lease agreement granting Rangeview’s predecessor in interest the right to develop the water. East Cherry Creek Valley Water and Sanitation District, in turn, contracted with Rangeview’s predecessor for the right to purchase and use up to 4,000 acre-feet per year. After the Board had applied for and received permits for seventeen wells, it, along with Rangeview’s predecessor in interest and East Cherry Creek, sought a decree for all of the unappropriated nontributary water recoverable from the Arapahoe aquifer underlying the property.

In an order dated June 28, 1985, the water court found that “there was 6,850 acre-feet per annum of water available in the Arapahoe aquifer” underlying the land in question. It then declared an “annual appropriation” for each of the seventeen wells, amounting'in all to 85% of the available water. It also declared that each well would be an “alternate point of diversion” for each other well, and further that the amount of water pumped from any one well could not exceed 125% of the annual appropriation for that well in any one year; that the total amount pumped through all wells in the aquifer in any one year could only exceed the sum of the annual appropriations for all existing wells in that aquifer if no more than one well was constructed, in which case that well could still pump 125% of its appropriation; and that over any moving five-year period, the amount pumped from any one well could not exceed five times its annual appropriation.

The order limited the sum of “annual appropriations” for the permitted wells to 85% of the available water on the rationale that those wells were not suitably located to withdraw water underlying lands in one particular section of the state’s property; and it declared that the applicants would be entitled to construct more wells “to completely drain or dewater the Arapahoe aquifer under the land described in the application,” pursuant to well applications with the state engineer and in accordance with the terms and conditions of the decree. In a separate provision, which the water court in the current application construed to apply to all new wells, the original order also indicated that any well drilled at a location more than 200 feet from a decreed point would be deemed not to have been drilled at the decreed point of diversion and would require a well permit and a proceeding in the water court to change the point of diversion.

In 1994, Rangeview and the Board filed an Application for Change of Water Rights, seeking the right to construct additional wells and to be relieved of the limitations of the original decree on the amount of water that could be withdrawn from each individual well location. The application was opposed by the state and division engineers and by East Cherry Creek, but it lay dormant until September 2002, when the co-applicants revived it in response to a motion by East Cherry Creek to dismiss with prejudice. In August 2003, after a two-day trial, the water court granted the application and, in November, modified its order to account for this court’s discussion of the anti-speculation doctrine in Colorado Ground Water Commission v. North Kiowa-Bijou Groundwater Management District.1

The water court rejected the assertion of East Cherry Creek that the requested [157]*157changes would cause injury to rights it had acquired both by contract and by the course of conduct of the parties. The water court also rejected East Cherry Creek’s assertion that amending the decree as requested would entitle Rangeview to withdraw additional water without demonstrating a non-speculative, beneficial use to which it would be put. The court did so initially on the ground that the anti-speculation doctrine applied only to water rights acquired through prior appropriation or a system of modified prior appropriation; but in its amended order, it held that even if the doctrine were intended to apply to nontributary ground water, it could apply only to “new appropriations,” which the water court found were not decreed in this action.

Despite Rangeview’s characterization of its application as an Application for Change of Water Right, the water court held that its order did not effect a statutory change of water rights but merely declared the rights to which Rangeview had become entitled by a combination of the 1985 Decree, statutory amendments since the decree, and State wide Nontributary Groundwater rules. It similarly rejected the assertion that if not a change of water right, the order necessarily granted equitable relief from the prior decree, without Rangeview’s having met the conditions of C.R.C.P. 60(b).

East Cherry Creek appealed directly to this court, challenging the water court’s order in the absence of a demonstration of non-speculation.

II.

The right to use nontributary ground water, unlike surface water, is not allocated by a system of prior appropriation, nor even by the statutory system of modified prior appropriation, governing designated ground water outside the Denver Basin. See N. Kiowa-Bijou, 77 P.3d at 71-72; Bayou Land Co. v. Talley, 924 P.2d 136, 147-49 (Colo.1996). In a series of enactments, specifying a formula for determining the amount of nontributary ground water available for use; limiting those entitled to apply for a well permit to withdraw it; and ultimately declaring an intent that nontributary ground water be allocated solely on the basis of overlying land ownership rather than by pri- or appropriation, the legislature created ari inchoate right to control and use a specified amount of nontributary ground water in the owner of the overlying land. Bayou Land Co., 924 P.2d at 149. Until the right to use nontributary ground water vests, however, it remains subject to termination by the legislature. Id.

The overlying landowner may acquire a vested right to use such ground water by constructing a well in accordance with a permit from the state engineer, N. Kiowa-Bijou, 77 P.3d at 71-72; Bayou Land Co.,

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