SUPREME COURT, STATE OF COLORADO 2 East 14th Avenue Denver, Colorado 80203 Appeal from the District Court Water Division 2, Case No. 09CW142 Water Division 1, Case No. 09CW272 Water Division 5, Case No. 09CW186 Opposers-Appellants: GRAND VALLEY WATER USERS ASSOCIATION; ORCHARD MESA IRRIGATION DISTRICT; UTE WATER CONSERVANCY DISTRICT ACTING BY AND THROUGH THE UTE WATER ACTIVITY ENTERPRISE; COLORADO RIVER WATER CONSERVATION DISTRICT; BASALT WATER CONSERVANCY DISTRICT; BOARD OF COUNTY COMMISSIONERS OF EAGLE COUNTY; BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY; DICK WOLFE, P.E., STATE ENGINEER; DAVID L. NETTLES, DIVISION ENGINEER FOR WATER DIVISION 1; STEVE WITTE, DIVISION ENGINEER FOR WATER DIVISION 2; AND ALAN MARTALLARO, P.E., DIVISION ENGINEER FOR WATER DIVISION 5; v. Applicant-Appellee: BUSK-IVANHOE, INC., a Colorado Corporation ! " " COURT USE ONLY _____________________ Case Number: 2014SA303 Attorneys for Opposer-Appellee Southeastern Colorado Water Conservancy District Name: Address: Telephone: Facsimile: E-mails: Stephen H. Leonhardt (#15122) Spencer W. Williams (#45000) BURNS, FIGA & WILL, P.C. 6400 South Fiddler’s Green Circle, Suite 1000 Greenwood Village, CO 80111 (303) 796-2626 (303) 796-2777 sleonhardt@bfw-law.com; swilliams@bfwlaw.com ANSWER BRIEF C.A.R. 32 CERTIFICATE OF COMPLIANCE I hereby certify that this brief complies with all requirements of C.A.R. 28 and C.A.R. 32, including all formatting requirements set forth in these rules. Specifically, the undersigned certifies that: The brief complies with C.A.R. 28(g). It does not exceed 30 pages. The brief complies with C.A.R. 28(k). For the party responding to the issue: It contains, under a separate heading, a statement of whether such party agrees with the opponent’s statements concerning the standard of review and preservation for appeal, and if not, why not. I acknowledge that my brief may be stricken if it fails to comply with any of the requirements of CAR 28 and CAR 32. Original signature at the offices of Burns, Figa & Will, P.C. s/ Stephen H. Leonhardt TABLE OF CONTENTS I. ISSUES PRESENTED FOR REVIEW.......................................................1 II. STATEMENT OF THE CASE ..................................................................1 A. Nature of the case and the course of proceedings...............................1 B. Statement of the Facts ......................................................................2 III. SUMMARY OF ARGUMENT..................................................................5 IV. ARGUMENT............................................................................................5 V. A. Standard of Review..........................................................................5 B. The Water Court’s Order did not address the jurisdiction of pre-1969 District Courts to adjudicate transmountain water rights for uses that may include storage in the importing basin ...............................................................................6 C. Southeastern’s transmountain and storage water rights for the Fryingpan-Arkansas Project were correctly decreed by District Courts in the appropriate river basins under the Adjudication Act of 1943 ...........................................................7 CONCLUSION....................................................................................... 15 i TABLE OF AUTHORITIES CASES Burlington Ditch Reservoir and Land Co. v. Metro Wastewater Reclamation Dist., 256 P.3d 645, (Colo. 2011)..................................................5 Pueblo West Metro. Dist. v. Southeastern Colorado Water Conservancy Dist., 689 P.2d 594, (Colo. 1984) ........................................... 4, 13 STATUTES C.R.S. §§ 37-45-101 ...........................................................................................2 HISTORICAL STATUTES Adjudication Act of 1943, Act of Apr. 19, 1943, ch. 190, 1943 Colo. Sess. Laws 613............................................... 3, 8, 9, 10, 11 1921 Compiled Laws of Colorado, § 1752 ...........................................................9 1921 Compiled Laws of Colorado, § 1755 ..................................................... 9, 11 1921 Compiled Laws of Colorado, § 1756 ...........................................................9 1921 Compiled Laws of Colorado, § 1760 ..................................................... 9, 10 Section 3807, Mills Ann. Stat. (1930) ................................................................. 6 Public Law 87-590, 76 Stat. 389 (1962) ...............................................................4 OTHER AUTHORITIES Hobbs, "Colorado’s 1969 Adjudication and Administration Act: Settling In," in The Public’s Water Resource 91, (2d ed. 2010) ..........................8 ii Opposer-Appellee Southeastern Colorado Water Conservancy District (“Southeastern”) submits this Answer Brief. I. ISSUES PRESENTED FOR REVIEW This Answer Brief addresses the following issue: A. Whether the water court erred in ruling that transmountain water may be stored in the basin of import for later use without a decreed storage right. II. STATEMENT OF THE CASE A. Nature of the case and the course of proceedings. Southeastern generally adopts the Statement of Case set forth in the Answer Brief of Applicant, Busk-Ivanhoe, Inc. (“Applicant” or “B-I”), and adds the following statement regarding Southeastern’s interest as a party. Southeastern filed a statement of opposition to B-I’s application in Water Divisions 2 and 5, in order to protect Southeastern’s water rights and interest in operation of the Fryingpan-Arkansas Project. Southeastern entered into a settlement stipulation with B-I on December 13, 2011, and a later supplemental stipulation, in which Southeastern consented to the entry of a decree consistent with the Decree ultimately entered by the Division 2 water court (“Water Court”). Southeastern continued to monitor the case as a party, consistent with its stipulations, but did not participate at trial. Southeastern participates in this appeal 1 primarily to respond to the characterization of Southeastern’s water rights decrees in Grand County’s Amicus Curiae Brief. B. Statement of the Facts Southeastern generally adopts the Statement of Facts in B-I’s Answer Brief, and adds the following facts relevant to Southeastern’s interest in this appeal. Like B-I, Southeastern holds decreed rights to divert water from the Roaring Fork River drainage on Colorado’s Western Slope into the Arkansas River basin on the Eastern Slope. Southeastern is a statutory water conservancy district (see C.R.S. §§ 37-45-101, et seq.), which includes within its boundaries most of the municipalities and irrigated land in nine counties in the Arkansas River Valley in Colorado. Southeastern holds all water rights for, administers, and repays reimbursable costs of the Fryingpan-Arkansas Project (“Project”), authorized by Congress in 1962. 1 Southeastern holds decreed rights for transmountain water, which the Project carries under the Continental Divide from the Fryingpan and Roaring Fork River drainages in western Colorado into the Arkansas River 1 The relationship between the United States and Southeastern in operating the Project is defined by the authorizing legislation for the Project, the Project Operating Principles, and the Repayment Contract between the United States and Southeastern. 2 drainage. The Project water decrees authorize use, reuse and successive use to extinction of all transmountain Project water within Southeastern’s boundaries. Water rights for the primary components of the Project were originally decreed in three separate proceedings in the District Courts for Garfield County, Chaffee County, and Pueblo County, pursuant to the Adjudication Act of 1943 (the “1943 Act”) (relevant sections attached as Appendix A). Act of Apr. 19, 1943, ch. 190, 1943 Colo. Sess. Laws 613. The supplemental decree in Civil Action No. 4613, Garfield County District Court (“C.A. 4613 Decree”) (Exhibit 4 to Grand County’s Amicus Brief (“Amicus Brief”)), entered on August 3, 1959, awards Southeastern a priority in Water District 38 to divert water from the Fryingpan River and several tributary streams for conveyance to the Arkansas River basin through the Fryingpan-Arkansas Divide Tunnel (now known as the Boustead Tunnel). One of Southeastern’s decreed water rights is for diversion from Ivanhoe Creek, downstream from the Busk-Ivanhoe System and Carlton Tunnel. Southeastern’s priority under the C.A. 4613 Decree is junior to B-I’s rights, having been decreed in a later supplemental adjudication of priorities in Water District 38. The C.A. 4613 Decree also describes Sugar Loaf Reservoir (now Turquoise Reservoir), Twin Lakes Reservoir, and Pueblo Reservoir, as the “situs of storage for beneficial use” of waters diverted from the Fryingpan River basin pursuant to 3 Southeastern’s Water District 38 priority. C.A. 4613 Decree, Section II, pp. 12-14. Southeastern obtained a separate decree from the Pueblo County District Court in Case No. B-42135, entered June 25, 1962, that awarded a priority in Water District 14 for diversions of native Arkansas River water for storage in Pueblo Reservoir, and recognized Southeastern’s decreed right to store its transmountain water in Pueblo Reservoir pursuant to the C.A. 4613 Decree. The Chaffee County District Court entered a decree on July 9, 1969 in Civil Action No. 5141, awarding Southeastern a priority in Water District 11 for storage of native Arkansas River basin water in Sugar Loaf Reservoir and Twin Lakes Reservoir, and recognizing Southeastern’s decreed right under the C.A. 4613 Decree to store its transmountain Project water in those reservoirs. 2 Like the transmountain diversions, the East Slope storage structures are integral parts of the Fryingpan-Arkansas Project as authorized by Congress. Public Law 87-590, 76 Stat. 389 (1962) (attached as Appendix B). 2 This Court recognized and discussed Southeastern’s interrelated decrees for the Project’s transmountain diversions and East Slope storage structures in Pueblo West Metro. Dist. v. Southeastern Colorado Water Conservancy Dist., 689 P.2d 594, 602-03 (Colo. 1984), 4 III. SUMMARY OF ARGUMENT The Water Court’s order does not raise any question concerning jurisdiction or the validity of the decrees for the Fryingpan-Arkansas Project, contrary to Grand County’s assertion. The Water Court’s narrow conclusion on the geographic limit of the Garfield County District Court’s authority in 1928 to adjudicate priorities for water rights was legally and factually valid, but does not impact later decrees adjudicating transmountain water rights that expressly describe storage in the importing basin. Southeastern’s transmountain and storage water rights were correctly decreed under the 1943 Act, which broadened the District Courts’ authority to address issues in water rights adjudications. IV. ARGUMENT A. Standard of Review Southeastern agrees with B-I’s statement of the Standard of Review. While this Court reviews de novo the water court’s legal conclusions, it accepts the water court’s factual findings on appeal, unless they are so clearly erroneous as to find no support in the record. Burlington Ditch Reservoir and Land Co. v. Metro Wastewater Reclamation Dist., 256 P.3d 645, 660-61 (Colo. 2011). 5 B. The Water Court’s Order did not address the jurisdiction of pre1969 District Courts to adjudicate transmountain water rights for uses that may include storage in the importing basin. Southeastern generally adopts the arguments set forth by Applicant in its Answer Brief (Section I) and by Denver Water in its Answer Brief regarding the Water Court’s decision on the lawfulness of East Slope storage of the BuskIvanhoe water rights. In its extensive findings of fact on this issue (Order at ¶ 50, pp. 20-21, R. at 4362-63), the Water Court explained why such storage was part of the appropriation contemplated and confirmed by the District Court’s 1928 decree, despite the silence of the decree regarding such storage. In particular, the decreed use of providing a supplemental water supply for irrigation of 80,000 acres in the Arkansas River basin necessarily contemplated storage, so that the water would be available at times when supplemental irrigation water was needed. Id. at ¶ 48, p. 20, R. at 4362. In explaining the silence of the 1928 decree on the question of East Slope storage, the Water Court took note of the limited scope of the District Court’s “authority under Colorado statutes as they existed in the 1920’s.” Id. at ¶ 50, p. 20, R. at 4362 (citing Section 3807, Mills Ann. Stat. (1930)), providing for adjudication of water rights only within a single irrigation district. Accordingly, the Water Court noted, the District Court in Garfield County lacked authority to 6 adjudicate priorities for storage of water in the Arkansas River basin, in a separate water district and stream system. Id. at ¶ 50.a, p. 21, R. at 4363. Grand County misconstrues and mischaracterizes this finding as a legal conclusion that the District Court lacked jurisdiction to provide for East Slope storage in a decree adjudicating transmountain diversion rights. See Amicus Brief, pp. 2-3 and 13. However, the only jurisdictional issue addressed in these findings is the undisputed proposition that an adjudication of priorities in one river basin could not include adjudication of priorities to store native water in a different river basin. This limit on the District Court’s authority was simply one of the facts and circumstances surrounding the 1928 adjudication that explained why East Slope storage, while part of the appropriator’s plan and intent in adjudicating transmountain diversion rights for supplemental irrigation, was not explicitly described in the decree. C. Southeastern’s transmountain and storage water rights for the Fryingpan-Arkansas Project were correctly decreed by District Courts in the appropriate river basins under the Adjudication Act of 1943. The Water Court’s conclusions on the authority of a District Court in 1928, under the adjudication laws then in effect, do not “call into question the validity 7 of” Southeastern’s transmountain and storage water rights for the FryingpanArkansas Project as Grand County asserts. Amicus Brief, p. 10. 3 Southeastern’s rights were correctly decreed by District Courts in the appropriate river basins under the 1943 Act. The 1943 Act was enacted following entry of the 1928 decree for the Busk-Ivanhoe water rights; those rights were decreed pursuant to the adjudication provisions of the 1921 Compiled Laws of Colorado (“1921 Adjudication Laws”) C.L. (1921) (relevant sections attached as Appendix C). The 1943 Act gave District Courts broad authority to address all issues involved or connected with water rights adjudications. Southeastern’s decrees for its transmountain and storage water rights were entered in compliance with the 1943 Act, and within the clear authority of the issuing District Courts. See Act of Apr. 19, 1943, ch. 190, § 2, 1943 Colo. Sess. Laws 613, 614. The 1943 Act re-organized and updated the previous adjudication statutes, expanding the authority of District Courts to address issues arising in water rights adjudications. See HOBBS, “Colorado’s 1969 Adjudication and Administration Act: Settling In,” in The Public’s Water Resource 91, 96-98 (2d ed. 2010) 3 Southeastern also adopts the arguments set forth by Denver Water in Section IV.B of its Answer Brief, and by the Northern Colorado Water Conservancy District in Section III of its Amicus Brief, regarding additional reasons to disregard or reject Grand County’s improper assertions with reference to decrees outside of the record in this appeal. 8 (providing a summary and background of the 1943 Act). The 1921 Adjudication Laws limited District Courts to hearing and adjudicating questions concerning the priorities of appropriation of water between “owners of ditches” diverting water within the water district where the District Court had jurisdiction. § 1752, C.L. (1921) (emphasis added); see also id. § 1756 (regarding “owner or owners” of non-irrigation rights). Consistent with this limitation, the 1921 Adjudication Laws only allowed owners of ditches, canals, or reservoirs to file statements of claim and petitions to adjudicate water matters before the District Courts. Id. § 1755 (describing claimants in statements of claim as those claiming ownership of any ditch canal or reservoir); id. § 1760 (“any [] persons . . . interested as owners of any ditch, canal, or reservoir . . . shall present to the district court . . .” a petition). The 1943 Act abandoned this “ownership” restriction in its successor provisions by granting the District Courts authority over water matters between “owners and claimants of water rights,” and by allowing such owners or claimants to file statements of claim and petitions to adjudicate rights in the District Courts. Act of Apr. 19, 1943, ch. 190, § 2, 1943 Colo. Sess. Laws 613, 614 (stating that District Courts had jurisdiction to adjudicate matters concerning the priority of appropriation of water between owners and claimants of water rights); id. §§ 3 and 7, 1943 Colo. Sess. Laws at 615 and 618 (stating that any owner or claimant of a 9 water right may petition the court to initiate an adjudication); id. § 8, 1943 Colo. Sess. Laws at 619 (requiring owners or claimants of water rights to file statements of claim). These changes significantly broadened the District Courts’ authority to adjudicate water rights where the claimant sought confirmation of a water-use appropriation, but did not own in fee the physical diversion, conveyance, or impoundment structures. The 1943 Act also described the District Courts’ authority to hear evidence and enter decrees in terms much more broad than the 1921 Adjudication Laws. The 1921 Adjudication Laws limited District Courts to hearing evidence and entering decrees determining and establishing priorities for ditches, canals, or reservoirs in the water district over which the District Court had jurisdiction. § 1760, C.L. (1921). The 1921 Adjudication Laws did not provide authorization or guidance for a District Court to address issues that were related or relevant to the adjudication of priorities, but outside of the water district under its jurisdiction. In contrast, the 1943 Act did not contain any evidentiary limitations, and generally provided for District Courts to describe storage works in decrees. As a threshold matter, the 1943 Act required that statements of claim identify the location of “any storage works” associated with the claim, and District Courts were required to make findings on “all pertinent matters, including findings upon all matters 10 required to be set out in statements of claim.” Act of Apr. 19, 1943, ch. 190, §§ 8(d) and 11, 1943 Colo. Sess. Laws 613, 619 and 621. The 1943 Act specifically provided for descriptions of “the location of reservoirs and other structures for storing water” in decrees, without limitation on the water district where the structure was located. See id., § 13, 1943 Colo. Sess. Laws 622. The 1921 Adjudication Laws did require statements of claim to address “reservoirs,” but only those over which the claimant claimed ownership and sought to adjudicate priority. § 1755, C.L. (1921). The 1943 Act retained the District Court’s limited authority to adjudicate priorities within the Water District over which it had jurisdiction. But otherwise, the 1943 Act greatly expanded the District Courts’ ability to address other pertinent matters, including identification of storage structures associated with the claim. Thus, the 1943 Act explains why subsequent decrees were more likely to identify storage structures associated with a claim, even if located in a different water district. Moreover, Southeastern agrees with Denver Water’s argument (in Part IV.C of its Answer Brief) that due to the legal characteristics of transmountain water, whether decreed under the 1943 Act or prior law, any description in the decree of storage locations in the importing basin (or omission of such description) 11 does not preclude storage at other locations in the importing basin in managing transmountain water supplies. The District Courts in Garfield County, Chaffee County, and Pueblo County entered Southeastern’s decrees for the Fryingpan-Arkansas Project water rights pursuant to the broad authority granted by the 1943 Act. The Garfield County District Court entered the decree for Southeastern’s transmountain water rights in Civil Action No. 4613, which granted a priority for diversions from the West Slope for use on the East Slope, including storage in reservoirs that Southeastern had the right to use, but did not own. The C.A. 4613 Decree adjudicated a priority for diversions from several tributaries of the Fryingpan River by the Project’s West Slope collection system located in Water District 38, consistent with the Garfield County District Court’s exclusive jurisdiction to adjudicate priorities within that water district. The decree does not adjudicate any priority for diversion or storage of water originating on the East Slope, which clearly would have been outside of the Garfield County District Court’s jurisdiction. Rather, the C.A. 4613 Decree describes the “situs of storage for beneficial use” in Sugarloaf, Twin Lakes, and Turquoise Reservoirs on the East Slope in which Southeastern intended to store its transmountain Project water pursuant to contract with the owner of those reservoirs, the United States. C.A. 4613 Decree, Section II, pp. 12-14. 12 Southeastern identified these East Slope storage locations in its statement of claim, and the Garfield County District Court made findings in its decree as to the storage locations, consistent with the specifications of the 1943 Act. Id. In separate proceedings, the Chaffee County and Pueblo County District Courts entered decrees on Southeastern’s claims, granting separate priorities for storage of native Arkansas River basin water. The decree in Civil Action No. 5141 (Chaffee County) adjudicated priorities in Water District 11 for the diversion and storage of native Arkansas River water in Sugar Loaf and Twin Lakes Reservoirs, and recognized Southeastern’s previously decreed right to store its transmountain sources in those reservoirs. Likewise, the decree in Case No. B-42135 (Pueblo County) adjudicated a priority in Water District 14 to divert and store native Arkansas River water in Pueblo Reservoir, and also acknowledged Southeastern’s decreed right to store transmountain water in Pueblo Reservoir. 4 The Water Court’s narrow conclusion on the limits of the 1921 Adjudication Laws does not bear on Southeastern’s water rights decreed pursuant to the 1943 Act, which significantly broadened the scope of issues that could be addressed in a water rights adjudication. Grand County’s contention that the Water Court’s 4 This Court has held that the decrees in Case Nos. B-42135 and C.A. 5141 both recognize and include storage of Southeastern’s transmountain water decreed in C.A. 4613 in East Slope Project reservoirs. Pueblo West, 689 P.2d at 602-03. 13 conclusions call into question the decrees for the Fryingpan-Arkansas Project water rights, among other transmountain water rights decrees that address storage in the basin of import, is unwarranted and unfounded. As described above, the decrees for the Project water rights fit squarely within the water rights adjudication system established by the 1943 Act. While adjudicating priorities only in the water districts from which native water would be diverted, these decrees also provide considerable description of the intended use of the rights, including storage of the transmountain water in the basin of import. Contrary to Grand County’s assertion, the differences between the Project decrees and the Busk-Ivanhoe decree do not challenge the Water Court’s conclusion that the 1921 Adjudication Laws’ narrow grant of authority helps to explain the Garfield County District Court’s silence on the intended East Slope storage of the Busk-Ivanhoe water rights. Rather, the provisions of the 1943 Act provide reason for the inclusive descriptions of storage structures in the Arkansas River basin in the Project’s decree that adjudicated priorities in Water District 38. By contrast, the more limited nature of the 1921 Adjudication Law explains the absence of a comparable description of East Slope storage in the Busk-Ivanhoe decree. But nowhere did either the 1943 Act or previous laws require adjudication 14 of storage rights as a prerequisite to storing transmountain water in the receiving basin. V. CONCLUSION The Court should affirm the Water Court’s findings and conclusions with regard to storage of transmountain water, and should reject Grand County’s suggestion that part of the Water Court’s Order “calls into question” subsequent decrees entered by district courts on the Western Slope. Respectfully submitted this 17th day of February, 2015. BURNS, FIGA & WILL, P.C. **Original signature at the offices of Burns, Figa & Will, P.C.** By: s/ Stephen H. Leonhardt (#15122) Spencer W. Williams (#45000) Attorneys for Opposer-Appellee Southeastern Colorado Water Conservancy District 15 CERTIFICATE OF SERVICE The undersigned hereby certifies that on this 17th day of February, 2015, a true and correct copy of the above and foregoing ANSWER BRIEF was served on the following via ICCES or by depositing a copy of same in the United States mail, postage prepaid, addressed as follows: Austin C. Hamre, Esq. John Marshall Dingess, Esq. Ryan P. McLane, Esq. Hamre Rodriguez Ostrander and Dingess PC Attorneys for Busk-Ivanhoe, Inc. Katherine Abbott Daniels Ryan, Esq. Assistant Attorney General Paul Louis Benington, Esq. First Assistant Attorney General Attorneys for the State and Division Engineers Christopher L. Geiger, Esq. David Carl Hallford, Esq. Scott A. Grosscup, Esq. Balcomb & Green PC Attorneys for Basalt Water Conservancy District, Board of County Commissioners of Eagle County, and Colorado River Water Conservation District Anne D. Bensard, Esq. Jennifer M. Dilalla, Esq. Timothy James Beaton, Esq. Wittemyer, Harrison and Woodruff, P.C. Attorneys for Board of County Commissioners Pitkin County Veronica A. Sperling, Esq. Buchanan and Sperling, P.C. Attorneys for Centennial Water and Sanitation District Casey S. Funk, Esq. Daniel John Arnold, Esq. Denver Water Attorneys for Denver Water David C. Taussig, Esq. Mitra Marie Pemberton, Esq. White & Jankowski, LLP Attorneys for Amicus Grand County Board of County Commissioners Kirsten Marie Kurath, Esq. Mark Allen Hermundstad, Esq. Williams Turner and Holmes PC Attorneys for Grand Valley Water Users Association, Orchard Mesa Irrigation District, and Ute Water Conservancy District Acting by and through the Ute Water Activity Enterprise 16 Robert Frederick Krassa, Esq. Krassa and Miller LLC Attorneys for High Line Canal Company **Original signature at the offices of Burns, Figa & Will, P.C.** s/Michelle G. Trujillo Michelle G. Trujillo 17