ISG, LLC v. Arkansas Valley Ditch Ass'n

120 P.3d 724, 2005 WL 2203234
CourtSupreme Court of Colorado
DecidedSeptember 12, 2005
DocketNo. 04SA268
StatusPublished
Cited by18 cases

This text of 120 P.3d 724 (ISG, LLC v. Arkansas Valley Ditch Ass'n) 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
ISG, LLC v. Arkansas Valley Ditch Ass'n, 120 P.3d 724, 2005 WL 2203234 (Colo. 2005).

Opinion

Justice HOBBS

delivered the Opinion of the Court.

Applicants/Appellees Independent Shareholders Group, LLC and others (collectively, "ISG") appeal the water court's dismissal of their application for a change of water rights. ISG's change application pertains to Fort Lyon Canal Company water shares. This appeal raises the same primary legal question we address in the companion case, High Plains A & M, LLC v. Southeastern Colorado Water Conservancy District, Nos. 0ASA266 & 048267, 120 P.3d 710, 2005 WL 2208149 (Colo. Sept. 12, 2005).

ISG seeks to change the type and place of use of water rights in the Fort Lyon Canal Company ("FLCC") from irrigation of lands under the ditch system to a multitude of possible new uses in any one of twenty-sight eastern Colorado counties. The water court consolidated and dismissed the High Plains and ISG applications for lack of a particularized location or locations to which the transferred water was to be put to beneficial use under the requested change of water right decree.

We apply our decision in High Plains to the ISG case. An application for a change in the place of use is for the purpose of determining whether a pre-existing appropriation, with its priority date, can be kept in effect at different locations. As of the filing of its application and the water court's ruling on dismissal, ISG had not identified the locations at which the appropriations will be placed to actual beneficial use under the change decree. ISG made a C.R.C.P. 56h) motion requesting a ruling on this key issue. We conclude that the water court, having made its legal determination adverse to ISG's position, did not commit reversible error in dismissing ISG's application.

ISG also challenges the water court's entry of summary judgment dismissing its application because no party specifically moved for dismissal of its application or for summary judgment against it. We hold that the trial court did not commit reversible error in sua sponte dismissing the application under the cireumstances of this case. Because we affirm dismissal of ISG's application, we reject [728]*728ISG's challenge to the costs awarded to the objectors, who are the prevailing parties.

I.

The facts in this case are essentially parallel to the facts recited in High Plains. See 120 P.3d at 710, 2005 WL 2208149. ISG is composed of forty-five farmers and ranchers who own shares in the FLCC, the largest mutual ditch company on the Arkansas River. ISG owns 8,287.05 FLCC shares, or 8.8% of the total outstanding shares.

On August 7, 2003, ISG filed its change of water rights application. ISG proposes changes that are identical to those proposed by High Plains.

The application proposes for decree several new points of diversion, including at head-gates on the Holbrook and Colorado canals and "one or more alternate points of diversion" along the Arkansas River between its confluences with Adobe Creek and the Pur-gatoire River. The application recites that water diverted at these new points may be stored in Holbrook, Dye, Lake Meredith, Lake Henry, and Pueblo reservoirs. The application does not identify structures owned or slated for construction by ISG that would transport the water from these diversion and storage points to particular new places of use.

The application seeks to change the place of use to any of twenty-eight counties where the water might be used:

[in addition to lands currently under the Fort Lyon Canal, the subject water rights, both for the previously decreed uses and for the proposed new uses, may be used on any lands that can be served by the subject water rights from the existing and decreed points of diversion and/or places of storage and/or from the proposed alternate points of diversion and/or places of storage listed hereinabove within the following Colorado counties ...: Otero, Bent, Prowers, Pueblo, Crowley, Kiowa, Custer, Fremont, Chaffee, Park, Teller, El Paso, Lincoln, Elbert, Douglas, Jefferson, Lake, Clear Creek, Gilpin, Denver, Arapahoe, Adams, Washington, Boulder, Broomfield, Larimer, Weld, and Morgan.

The application lists an array of changed uses it wants decreed:

[flrom irrigation and other presently decreed uses to: all beneficial uses, including but not limited to irrigation, municipal, domestic and household purposes, drinking, cooking, cleaning, showers, toilets, irrigation of yards, lawns, shrubbery, trees, pools, fountains, and landscapes, watering domestic animals; mechanical, manufacturing, and industrial, military, and governmental purposes; bottled water; generation of electric power and power generally; fire suppression and protection; sewage treatment; street sprinkling; irrigation of parks, grounds, golf courses, and open spaces; recreation, golf course hazards, ponds, fishing, and fish propagation; agricultural uses, livestock watering and aquaculture; land and reservoir evaporation; - maintenance, preservation and conservation of wildlife, wildlife habitat, wildlife propagation, and wetlands; creating, maintaining and - enhancing aesthetic values; in-stream flow; erosion control, siltation control, and flood control; maintaining storage reserves; adjustment and regulation; augmentation; replacement; groundwater - recharge; exchange....

The application states that "[alfter the change, the subject water rights will still be able to be utilized for agricultural and irrigation purposes ... on lands under the Fort Lyon Canal."

The application seeks a decree for one-hundred percent consumptive use of the water derived from exercise of the changed water rights:

[alpplicants seek a decree from the Court that they have the right to use, reuse, and successively use to extinction, and dispose of, by sale, exchange or otherwise, all water lawfully diverted and/or stored pursuant to any decree entered in this case.

ISG made a presentation in tandem with High Plains to the FLCC Board regarding the proposed changes. The Board concluded that the changes could be decreed without injury to other water users if particular con[729]*729ditions were imposed. See High Plains, 120 P.3d at 716, 2005 WL 2208149.

On November 1, 2003, ISG filed a motion in the water court to consolidate its change application with the applications filed by High Plains. ISG recited, as reasons for consolidation, that the cases "have common issues of law and fact, in that all cases involve changes of water rights in the Fort Lyon Canal Company, including common structures, evidence and witnesses," and therefore consolidation would "promote judicial economy and ... result in a fair resolution of these matters without unnecessary expense or delay." The water court granted the motion.

On December 19, 2003, ISG filed a motion for a C.R.C.P. 56(h) determination of a question of law, requesting a water court ruling that the anti-speculation doctrine, see § 37-92-108(8), C.R.S. (2005), and Colo. River Water Conservation Dist. v. Vidler Tunnel Water Co., 197 Colo. 418, 417, 594 P.2d 566, 568 (1979), and the "can and will" requirements of section 87-92-805(9)(b), C.R.S. (2005), apply only to new appropriations in proceedings for absolute or conditional water rights and not to change application proceedings.

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Cite This Page — Counsel Stack

Bluebook (online)
120 P.3d 724, 2005 WL 2203234, Counsel Stack Legal Research, https://law.counselstack.com/opinion/isg-llc-v-arkansas-valley-ditch-assn-colo-2005.