Water Rights of Masters Investment Co. v. Irrigationists Ass'n

702 P.2d 268, 1985 Colo. LEXIS 472
CourtSupreme Court of Colorado
DecidedJuly 8, 1985
DocketNo. 83SA38
StatusPublished
Cited by16 cases

This text of 702 P.2d 268 (Water Rights of Masters Investment Co. v. Irrigationists 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
Water Rights of Masters Investment Co. v. Irrigationists Ass'n, 702 P.2d 268, 1985 Colo. LEXIS 472 (Colo. 1985).

Opinion

KIRSHBAUM, Justice:

Masters Investment Co., Inc. (Masters) appeals the judgment of the District Court for Water Division No. 1 declaring that the Schultz Ditch water rights, consisting of priorities No. 3 and No. 36 in the South Platte River in Weld County, Colorado, had been abandoned and denying Masters’ request for a change of water rights. Masters asserts that the water court erred in finding an intent to abandon the water rights and in permitting the State Engineer to participate as a party to the consolidated proceedings.1 We affirm.

I

A brief description of the procedural history of this litigation is in order to clarify the basis for the water court’s decision.

On February 24, 1975, the Irrigationists Association (Irrigationists), an association of owners of water rights in the South Platte River as it traverses Weld County, Colorado, commenced proceedings in the District Court for Water Division No. 1 (Case No. W-7896-75) to declare the Schultz Ditch water rights abandoned. On August 29, 1979, the water court entered a decree, nunc pro tunc to April 30, 1979, declaring the Schultz Ditch rights to be abandoned. That decision was based primarily upon testimony of a water commissioner that official water records indicate that no diversions were ever made pursuant to the Schultz Ditch priorities and that the owners thereof never exerted efforts to put their decreed rights to beneficial use.

On October 24, 1979, Masters filed a “Petition to Correct Substantive Errors,” pursuant to section 37-92-304(10), 15 C.R.S. (1973), and a “Motion Pursuant to C.R.C.P. 60(b)(3) for Relief from Void Judgment” in Case No. W-7896-75. These pleadings alleged lack of actual notice to and lack of personal service upon Masters and also asserted that the Schultz Ditch water rights had not been abandoned. The State Engineer entered an appearance in the case, and on May 8, 1980, the water court set aside its initial decree of abandonment. Masters then filed a motion to dismiss Case No. W-7896-75 on jurisdictional grounds. On September 19, 1980, the water court denied the motion and directed Masters to determine whether it wished to raise the defense of lack of personal jurisdiction or if it preferred to waive that defense and proceed to a determination on the merits.

On February 25, 1981, Masters initiated a proceeding for change of water rights in the District Court for Water Division No. 1 (Case No. 81-CW-057). The petition stated in part that:

[Sjince the construction of the Riverside Reservoir the lands [historically irrigated by the Schultz Ditch] and adjoining said reservoir have been subirrigated from seepage waters originating from the Riverside Reservoir. It has not been necessary for the applicant to derive its source of supply of water from the South Platte River through the Schultz Ditch. The applicant, and its predecessors in title, have used the seepage from the Riverside Reservoir as an alternate source of supply.

Masters requested a decree designating seepage waters from the Riverside Reservoir as an alternate point of diversion for the Schultz Ditch priorities.

Irrigationists filed a petition in opposition to Masters’ request, reasserting the claim of abandonment then pending in Case No. W-7896-75 and alleging that the proposed change would result in injury to Irrigation-ists. Masters then filed a motion to consolidate the two cases for trial, which motion was granted. Masters, Irrigationists and the State Engineer filed pretrial statements, and on December 2, 1981, the water court by pretrial order set the consolidated cases for hearing to commence May 3, 1982. The State Engineer participated in that hearing and offered an exhibit which [271]*271was admitted into evidence. On December 30, 1982, the water court entered its order concluding that priorities No. 3 and No. 36 had been abandoned and denying Masters’ request for a change of point of diversion.

II

The following pertinent facts are established by the record. Masters, a Colorado corporation, purchased the Schultz Ditch water rights in 1971. These rights were decreed initially to W.C. Schultz in 1895, with priority dates of April 1, 1871, and April 1, 1888, for water rights No. 3 and No. 36, respectively. In his 1894 application for the decree, Schultz noted that his property was at that time irrigated in part by seepage water. The decree contained a specific description of the ditch and its headgate and recognized rights to divert seven cubic feet of water per second and twenty-one cubic feet of water per second for priorities No. 3 and No. 36, respectively-

The Schultz Ditch originally drew water from the South Platte River and traversed land owned by W.C. Schultz, most of which was subsequently purchased by Masters. The land owned by Masters is located in Weld County, Colorado. It is situated just south of the Riverside Irrigation System, and is adjacent to the north bank of the South Platte River. A major component of the Riverside Irrigation System is the Riverside Reservoir. Seepage from the Riverside Reservoir flows in a southeasterly direction, under Masters’ land, and ultimately into the South Platte River. This seepage has created a rather lush meadow on Masters’ property, and through the years has been sufficient to irrigate a natural hay crop.

Official records of the State Engineer introduced at trial reveal that from 1911 to 1954 water was drawn in the Schultz Ditch on only one day, in 1917. These records contain notations to the effect that by 1920 the ditch was unable to carry water and that by 1944 the ditch was abandoned. The person who managed the subject property from 1937 to 1945 for Masters’ predecessor-in-interest stated that the headgate to the ditch was washed away some time prior to 1929 and was never replaced, that he observed water running in the Schultz Ditch only once during his tenure as manager, and that the property was irrigated sufficiently by seepage water during that period of time. Two stockholders of Masters confirmed that the Schultz Ditch had not been used for many years because the property was sufficiently irrigated by seepage water. One of the stockholders confirmed that the headgate to the ditch had been lost and that the ditch had been washed out in two places. A hydrologist testified that the property in question had been satisfactorily irrigated by seepage from the Riverside Reservoir since the early part of this century.

Ill

Masters argues that the evidence fails to support the water court’s conclusion that the rights to the Schultz Ditch have been abandoned. Masters also suggests that the water court applied an erroneous legal standard in reaching that conclusion. Neither argument has merit.

In Colorado, the issue of whether a water right has been abandoned invariably turns on the question of whether the owner of the right intended to abandon the right. Beaver Park Water, Inc. v. City of Victor, 649 P.2d 300 (Colo.1982); Allard Cattle Co. v. Colorado & Southern Ry., 187 Colo. 1, 530 P.2d 503 (1974).2 The General Assembly has recognized this principle in defining “abandonment of a water [272]*272right” as “the termination of a water right ... as a result of the intent of the owner thereof to discontinue permanently the use of ...

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702 P.2d 268, 1985 Colo. LEXIS 472, Counsel Stack Legal Research, https://law.counselstack.com/opinion/water-rights-of-masters-investment-co-v-irrigationists-assn-colo-1985.