WILSON, P.E. VS. PAHRUMP FAIR WATER, LLC

2021 NV 2, 481 P.3d 853
CourtNevada Supreme Court
DecidedFebruary 25, 2021
Docket77722
StatusPublished
Cited by2 cases

This text of 2021 NV 2 (WILSON, P.E. VS. PAHRUMP FAIR WATER, LLC) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WILSON, P.E. VS. PAHRUMP FAIR WATER, LLC, 2021 NV 2, 481 P.3d 853 (Neb. 2021).

Opinion

137 Nev., Advance Opinion IN THE SUPREME COURT OF THE STATE OF NEVADA

TIM WILSON, P.E., NEVADA STATE No. 77722 ENGINEER, DIVISION OF WATER RESOURCES, DEPARTMENT OF CONSERVATION AND NATURAL RESOURCES, Appellant, ILE vs. PAHRUMP FAIR WATER, LLC, A FEB 2 5 2021 NEVADA LIMITED LIABILTY ELIZ CLERK COMPANY; STEVEN PETERSON, AN BY C IEF DEPUTY CLERK INDIVIDUAL; MICHAEL LACH, AN INDIVIDUAL; PAUL PECK, AN INDWIDUAL; BRUCE JABEOUR, AN INDIVIDUAL; AND GERALD SCHULTE, AN INDIVIDUAL, Respondents.

Appeal from a district court order granting a petition for judicial review in a water law case. Fifth Judicial District Court, Nye County; Steven Elliott, Senior Judge. Reversed and remanded with instructions.

Aaron D. Ford, Attorney General, and James N. Bolotin, Deputy Attorney General, Carson City, for Appellant.

Taggart & Taggart, Ltd., and Paul G. Taggart and David H. Rigdon, Carson City, for Respondents.

SUPREME COURT OF NEVADA

1-i -QS ciol (0) 1947A ADD Parsons Behle & Latimer and Gregory H. Morrison, Reno; Jesse J. Richardson, Morgantown, West Virginia, for Amici Curiae Nevada Groundwater Association and Water Systems Council.

BEFORE THE COURT EN BANC.

OPINION By the Court, PICKERING, J.: This appeal involves a question of survival for certain rural communities in this, "the driest state in the Nation," United States v. State Ener, 117 Nev. 585, 592, 27 P.3d 51, 55 (2001) (Becker, J., concurring in part and dissenting in part)—that is, the availability and sustainability of groundwater sourced from domestic wells. Specifically at issue is Order No. 1293A (July 12, 2018) by the appellant State Engineer, which prohibits the drilling of new domestic wells in the over-appropriated Pahrump Artesian Basin (the Basin) unless the applicant identifies and relinquishes 2.0 acre- feet annually from an alternate source (the 2.0 afa requirement). By seeking to enforce the 2.0 afa requirement, the State Engineer raises the interrelated questions of whether (1) Nevada law authorized the requirement in the first instance, given that the State Engineer both designated the Basin as in need of active management and determined that the drilling of new domestic wells would unduly impact existing wells, and (2) whether notice and hearing is required to impose the same, even in the face of the aforementioned determinations by the State Engineer.

2 We hold that Nevada law—specifically NRS 534.110(8) (allowing the State Engineer to "restrict the drilling of wells" in a specially designated basin "if the State Engineer determines that additional wells would cause an undue interference with existing wells")—authorized the 2.0 afa requirement under these particular circumstances, the State Engineer's assessment of which is supported by substantial evidence. Moreover, water is a public resource in this state, not private property, see Mineral Cty. v. Lyon Cty., 136 Nev., Adv. Op. 58, 473 P.3d 418, 426 (2020), and because Nevada's resulting system of prior appropriation neither envisions nor guarantees that there will be enough water to meet every demand for it, a landowner's unilateral assumptions to the contrary are not the sort of justified reliance that would demand notice and a hearing prior to the State Engineer's imposition of the restriction at issue. Accordingly, we reverse the district courVs decision, which invalidated Order No. 1293A as unlawful, and reinstate the same. I. Quantified in units of acre-feet (the volume of water it would take to cover an acre to a depth of one foot), the Basin's sustainable yield is 20,000 acre-feet annually (afa). See Nye Cty. Water Dist. Staff & Groundwater Mgmt. Plan Comm. Members, Pahrump Basin 162 Groundwater Management Plan 6 (Oct. 16, 2015) (2015 GW1VIP), id. app. R at 5 (defining acre-foot). However, there are about 60,000 afa currently allocated for permitted uses in the Basin, and there are additionally 11,280 existing domestic wells operating in the Basin without a permit. See Nye Cty. Water Dist., Pahrump Basin 162 Groundwater Management Plan 5-10 (Feb. 2018) (2018 GWMP). These domestic wells add up to 22,000 afa (2 afa

SUPREME COURT OF Nemo* 3 (01 1947A 4.11094 per domestic well, as allowed by statute) to the allocation imbalance, for a total allocation of, roughly, 82,000 afa. Adding still to the Basin's over- allocation problem are potential future domestic wells, which the 82,000- afa figure does not include. Based on land availability, there is a potential for more than 8,500 additional domestic wells (totaling potential commitments of up to 17,000 afa, at 2 afa per domestic well), see 2015 GWMP 7, which, left unchecked, would lead to a possible total commitment of nearly 100,000 afa—an amount five times the Basin's sustainable yield. Although it remains over-allocated, the Basin is not over- pumped. See 2015 GWMP 6 (estimating that actual withdraws totaled 14,348 afa in 2013). For one, not all water-rights owners currently exercise the full allotment of those rights every year, and among the allotted rights are about 8,000 afa that have been permanently relinquished to support new development under Nye County Code. See 2018 GWMP 5; see also Nye County Code § 16.28.170(H) (2018) (requiring the purchase and relinquishment of existing water allocations before the creation of a new parcel or subdivision intended for residential use). Moreover, the average actual draw per domestic well is estimated to be just 0.5 afa out of the statutorily permitted 2 afa. See 2015 GWMP 7. However, problems and uncertainty remain, given the high density of domestic wells in Pahrump, the lingering effects of historical over-pumping, and the prospect of additional growth and associated housing density. Such concerns are long-standing—the State Engineer first designated a portion of the Basin as an area in need of heightened regulation (now referred to as an "area of active management") 80 years ago. See State Engineer Order No. 176 (Mar. 11, 1941). The State Engineer

SUPREME COURT OF NEVADA 4 (0) 1947A Oar,

X. - has since expanded that designation to encompass the entire Basin. See State Engineer Order No. 1252 (Apr. 29, 2015). And the Basin's water supply is now entirely subject to the State Engineer's "particularly close monitoring and regulation." NRS 534.011; see NRS 534.030(1) (providing the procedure for the State Engineer to designate a basin as an area of active management). Accordingly, the State Engineer and Nye County have coordinated to undertake conservation action in the Basin. To wit, in 2004, Nye County created a Water Resources Plan, outlining strategies for meeting the county's projected water needs over the next 50 years. See Thomas S. Buqo, Dep't of Nat. Res. & Fed. Facilities, Nye County Water Resources Plan 1 (Aug. 2004). And, in 2014, Nye County formed an advisory committee to address over-appropriation in the Basin and created a Groundwater Management Plan, which provided a list of proposed measures, noting a need for more information and recognizing two main concerns: over-allocation and the effect of densely clustered domestic wells. See 2015 GWMP 4-10. Then, in 2016, the Nye County Water District (NCWD) took action under that plan and requested, as a component of that action, that the State Engineer issue an order requiring relinquishment of existing water rights before new domestic wells could be drilled in the Basin. See 2018 GWMP 4 (discussing the letter).

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Bluebook (online)
2021 NV 2, 481 P.3d 853, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilson-pe-vs-pahrump-fair-water-llc-nev-2021.