Front Range Resources, LLC v. Colorado Ground Water Commission

Front Range Resources, LLC, a private company that owned or managed various water rights, applied for a replacement plan in the Lost Creek Designated Ground Water Basin. Under the plan, Front Range sought to divert water from its existing water rights to recharge the Lost Creek Basin’s alluvial aquifer. It then planned to withdraw the recharged water by increasing the use of its existing wells and by constructing new wells. Defendants (parties that believed their water rights would be impaired by the plan) objected to Front Range’s replacement plan, and the Ground Water Commission ultimately dismissed Front Range’s application with prejudice, allowing Front Range to appeal to the district court. Meanwhile, Front Range and the City of Aurora entered into an option contract for Aurora to purchase some or all of the replacement-plan water upon the replacement plan’s approval. On appeal, the district court rejected Front Range’s use of water rights in the South Platte River in the replacement plan. It further found the replacement plan involved new appropriations and changes of water rights, triggering the anti-speculation doctrine. In granting summary judgment against Front Range, the district court concluded Front Range’s planned use of the replacement-plan water (including its option contract with Aurora) violated the anti-speculation doctrine. Some of the Defendants then pursued attorney fees, arguing Front Range’s claims lacked substantial justification. But the district court denied their motion. After review, the Colorado Supreme Court held the anti-speculation doctrine applied to replacement plans involving new appropriations or changes to designated ground water rights. Because Front Range could not demonstrate that it or Aurora would put the replacement-plan water to beneficial use, the district court did not err in granting Defendants’ motion for summary judgment. Furthermore, the Court concluded the district court did not abuse its discretion in denying Defendants’ motion for attorney fees. View "Front Range Resources, LLC v. Colorado Ground Water Commission" on Justia Law