Peterson v. Ground Water Commission

579 P.2d 629, 195 Colo. 508, 11 ERC (BNA) 1956, 1978 Colo. LEXIS 779
CourtSupreme Court of Colorado
DecidedJune 5, 1978
Docket27746
StatusPublished
Cited by61 cases

This text of 579 P.2d 629 (Peterson v. Ground Water Commission) 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
Peterson v. Ground Water Commission, 579 P.2d 629, 195 Colo. 508, 11 ERC (BNA) 1956, 1978 Colo. LEXIS 779 (Colo. 1978).

Opinions

MR. JUSTICE ERICKSON

delivered the opinion of the Court.

On November 25, 1975, John C. Peterson (plaintiff) filed an application with the Colorado Ground Water Commission (commission) seeking a permit to construct a well and to appropriate designated ground water from the Northern High Plains Designated Ground Water Basin in Yuma County. The commission considered the application under its three-mile test to determine whether unappropriated water was available. The application was denied on the grounds that the plaintiffs three-mile circle was over-appropriated and that the proposed well would unreasonably impair existing water rights. The district court sustained the commission’s denial after a trial de novo held pursuant to statute. Section 37-90-115, C.R.S. 1973. We affirm.

On appeal, three questions must be addressed: First, did the trial court err in refusing to enter a default judgment against irrigators who were personally served but failed to appear? Secondly, may the commission assume, for the purpose of evaluating applications, that the full amount of water claimed under conditional permits has been validly appropriated? And, finally, was the trial court’s judgment supported by sufficient evidence?

I.

The plaintiff personally served notice of his appeal upon all irrigators within his three-mile circle. Only a few of the irrigators responded with an answer or appeared at trial. The plaintiff sought a default judgment against the non-appearing irrigators on the theory that the irrigators were the real parties in interest. The trial court denied the plaintiffs motion.

Section 37-90-115(2), C.R.S. 1973, requires that an applicant who perfects an appeal in the district court serve notice of his appeal on “all parties interested.” Nowhere in the Colorado Ground Water Management Act (Act), section 37-90-101 et seq., C.R.S. 1973 (1977 Supp.), however, is a definition of “all parties interested” to be found. We must, therefore, construe the phrase to reasonably effect the legislative intent that “all parties interested” receive notice.

The rights of existing appropriators are clearly implicated in any decision to issue a conditional permit to appropriate designated ground water. The Act, therefore, requires that an applicant cause his application to be published and permits prior appropriators to file objections to the proposed appropriation. Section 37-90-107(2), (3), C.R.S. 1973. Personal notice, however, is not required. Prior appropriators are required to review the published applications and determine whether to file [512]*512objections. Since it would be inconsistent to require personal service on all irrigators at the appellate stage of a proceeding when not required at the initial stage, we conclude that “all parties interested” on appeal refers only to those persons who have previously filed objections to the application.

Notwithstanding the statutory requirement that “all parties interested” be served if an appeal is taken, a default judgment cannot be entered in favor of the applicant if the irrigators fail to answer. Prior appropriated are entitled to protection against unreasonable impairment of their rights under the Act, regardless of their decision to make an objection or not. If no objections are filed, the applicant cannot receive a permit on the theory that existing appropriated have concluded that their rights would not be injured by the proposed appropriation. Irrigators are entitled to rely upon the commission’s fulfillment of its duty to determine, even in the absence of an objection, whether the proposed well will unreasonably impair existing rights. Section 37-90-107(3), C.R.S. 1973. Similarly, in an appeal to the district court, the irrigators can rely upon the commission to protect their existing rights.

II.

Section 37-90-107(5), C.R.S. 1973, provides that the commission must consider the “quantity of existing claims” in determining whether a proposed appropriation will unreasonably impair existing rights. The commission has implemented this statutory provision by evaluating well applications “with the assumption that, for the purpose of this analysis, all rights to appropriate are being fully exercised.” The plaintiff does not challenge the commission’s duty to protect existing rights, but contends that the commission’s assumption has had the effect of overstating the extent of existing appropriations.

We accepted the plaintiffs argument in Thompson v. Colorado Ground Water Commission, 194 Colo. 489, 575 P.2d 372 (1978), and held that water claimed under conditional permits cannot be considered as “existing claims” to the detriment of new applications if not perfected by beneficial use or unless the conditional permit is being perfected in the statutory process. The commission’s contention that the priority lists prepared pursuant to section 37-90-109, C.R.S. 1973, were equivalent to the final permits required to be issued under section 37-90-108, C.R.S. 1973 (1977 Supp.), was rejected on the ground that no investigation of the claimed beneficial use had been made. In Thompson, we reviewed the provisions of the Colorado Ground Water Management Act and indicated that the commission would be required to comply with the statute.

Our decision in Thompson, however, was “not intended to affect valid water rights which are presently represented by conditional permits.” In that case, we declared:

“The ‘quantity of existing claims’ which must be considered by the commission is the sum of all water rights which have been appropriated and [513]*513those water rights which are in the process of being appropriated under conditional permits. The legislative intent evidenced in the Colorado Ground Water Management Act is that the issuance of final permits, which requires proof and verification of the extent of beneficial use, would serve a function equivalent to the final surface decree and establish senior rights. But to compute the ‘quantity of existing claims’ only on the basis of rights represented by final permits would ignore the right that holders of conditional permits have to perfect their appropriations to the full extent of their conditional permits. These rights in the process of being appropriated, therefore, must be considered by the commission in their calculation of the ‘quantity of existing claims.’”

A conditional permit does not entitle its holder to apply only a portion of the water available under the permit to beneficial use and retain the ability to later expand his use to the full extent originally allowed. The Act requires that the holder of a conditional permit place the water to beneficial use within a time period certain. Section 37-90-108(3), (4), C.R.S. 1973 (1977 Supp.). Conditional permits expire and are of no effect one year after their issuance unless one of three events occur: First, if the statutory requirements necessary for the issuance of a final permit have been satisfied, the appropriator is entitled to a final permit to the extent of his beneficial use. Secondly, a conditional permit will not expire if the commission has extended the permit for a time certain for good cause shown. And, finally, if the appropriator has submitted well completion data, but has failed to submit proof of beneficial use, the appropriator is entitled to notice and twenty days to provide the missing information.

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Bluebook (online)
579 P.2d 629, 195 Colo. 508, 11 ERC (BNA) 1956, 1978 Colo. LEXIS 779, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peterson-v-ground-water-commission-colo-1978.