West Elk Ranch, L.L.C. v. United States

65 P.3d 479, 2002 Colo. LEXIS 1035, 2002 WL 31681910
CourtSupreme Court of Colorado
DecidedDecember 2, 2002
DocketNo. 02SA93
StatusPublished
Cited by77 cases

This text of 65 P.3d 479 (West Elk Ranch, L.L.C. v. United States) 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
West Elk Ranch, L.L.C. v. United States, 65 P.3d 479, 2002 Colo. LEXIS 1035, 2002 WL 31681910 (Colo. 2002).

Opinion

Justice KOURLIS

delivered the Opinion of the Court.

I. Introduction

In this case, West Elk Ranch (“West Elk” or “the Ranch”) and its predecessors-in-in[480]*480terest sought a conditional water right to a spring located on adjacent National Forest land. The Forest Service denied a Special Use Permit (“SUP”) that would have allowed West Elk to capture the water on Forest land and divert it onto West Elk’s property. Accordingly, the water court granted summary judgment for the United States, denying the conditional water right because West Elk could not then meet the “can and will” requirement established for the issuance of conditional water rights. See § 37-92-305(9)(b), 10 C.R.S. (2002). West Elk now appeals the water court’s decision, arguing that it “can and will” eventually obtain an SUP. Because West Elk presented no evidence of a pending proceeding that could result in issuance of an SUP, we affirm the water court’s grant of summary judgment.

II. Facts and Procedural History

West Elk Ranch encompasses approximately 160 acres of land contiguous to National Forest land in Western Colorado. The Ranch comprises several uses including livestock, crops, and a dude ranch operation offering horseback riding, a trading store, and guide and outfitter services into the National. Forest.

Upon discovering a spring located on the adjacent National Forest land, the predecessors-in-interest to this action, Larry and Ruth Head, d/b/a/ Head Acres, Inc., filed for a conditional water right to use .01 cfs of the Bear Gulch Spring for stock and wildlife water, and for domestic use for up to four housing units and up to twenty campsites. Head Acres proposed to construct a spring box or collection facility on the Forest land and then divert the water through a piping system to the property now known as West Elk Ranch. Head Acres acknowledged that the application would require an SUP from the Forest Service prior to the construction of the diversion system, as the spring and the pipeline would lie on National Forest land. The United States Department of Justice (“DOJ”) filed a statement of opposition to Head Acres’ petition, stating that because Head Acres had not obtained an SUP, it could not legally divert the water off federally owned property. DOJ further expressed concern over the project’s environmental effects.

Some fifteen months later, Head Acres filed an application for an SUP with the Forest Service. The property was then sold to West Ridge Group, LLC, d/b/a West Elk Ranch, LLC.1 The Forest Service denied the SUP application because of concerns over the environmental impacts of the proposed construction of the collection facilities and pipeline. The Forest Service further noted that it believed the applicant had no need for the water, and eould meet its water needs with water from fee land. The denial letter stated that the applicant could submit additional information and ask for reconsideration if it truly had no alternatives on fee land. West Elk did provide the Forest Service with additional information to consider, but the Forest Service persisted in the denial. West Elk then challenged the denial and a Forest . Supervisor reviewed the proposal. The supervisor stated that he agreed with the denial, as the proposed project would unreasonably conflict with National Forest uses for the spring.

Based on these various denials, the water referee issued a proposed order denying the conditional water right, since West Elk could not put the water to beneficial use without the SUP. The United States then filed for summary judgment pursuant to C.R.C.P. 56(h) with the Water Court for Water Division No. 4. The court granted summary judgment in favor of the United States, thereby denying West Elk the conditional water right to the spring. In a written opinion, the court found that the denial of the SUP defeated West Elk’s obligation to show that it “can and will” put the water to beneficial use.

West Elk subsequently brought this appeal for review of the conditional water right denial.

[481]*481III. Standard of Review

While the standard of review of a court’s grant of summary judgment is well-established, we set it forth here in order to frame the question we must address. Summary judgment is appropriate when the pleadings and supporting documentation demonstrate that no genuine issue of material fact exists and that the moving party is entitled to summary judgment as a matter of law. Martini v. Smith, 42 P.3d 629, 632 (Colo.2002); Vail/Arrowhead, Inc. v. Dist. Ct., 964 P.2d 608, 611 (Colo.1998). The appellate court reviews the grant of a summary judgment motion de novo, as it is ultimately a question of law. Martini, 42 P.3d at 632; Feiger, Collison & Killmer v. Jones, 926 P.2d 1244, 1250 (Colo.1996) (“ ‘All summary judgments are rulings of law in the sense that they may not rest on the resolution of disputed facts. We recognize this by our de novo standard of reviewing summary judgments.’ ’’)(quoting Black v. J.I. Case Co., 22 F.3d 568, 571 n. 5 (5th Cir.), cert. denied, 513 U.S. 1017, 115 S.Ct. 579, 130 L.Ed.2d 494 (1994)). The nonmoving party is entitled to the benefit of all favorable inferences from the undisputed facts, and all doubts as to the existence of a triable issue of fact must be resolved against the moving party. Martini, 42 P.3d at 632.

IV. Analysis

The statutes define a conditional water right as “a right to perfect a water right with a certain priority upon the completion with reasonable diligence of the appropriation upon which such water right is to be based.” § 37-92-103(6), 10 C.R.S. (2002). Such decrees “are designed to establish that the ‘first step’ toward the appropriation of a certain amount of water has been taken and to recognize the relation back of the ultimate appropriation to the date of that first step.” City of Aspen v. Colo. River Water Conservation Dist., 696 P.2d 758, 761 (Colo.1985). While the conditional decree system encourages investment in more expensive or time-consuming water projects by reserving priority dates for the appropriation of the water, the conditional rights are subject to scrutiny to prevent abuse and speculation. Dallas Creek Water Co. v. Huey, 933 P.2d 27, 35 (Colo.1997).

Indeed, the General Assembly eliminated a “wait and see” approach to determining conditional water rights. Instead, it opted to require an applicant to show in the conditional decree proceedings that it “can and will” complete the appropriation of water with diligence and within a reasonable time before a court may issue a conditional decree. FWS Land & Cattle Co. v. State Div. of Wildlife, 795 P.2d 837, 840 (Colo.1990). Section 37-92-305(9)(b) provides:

No claim for a conditional water right may be recognized or a decree therefor granted except to the extent that it is established that the waters can be and will be

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65 P.3d 479, 2002 Colo. LEXIS 1035, 2002 WL 31681910, Counsel Stack Legal Research, https://law.counselstack.com/opinion/west-elk-ranch-llc-v-united-states-colo-2002.