JUSTICE HOBBS delivered the Opinion of the Court.
In this appeal from a judgment of the District Court for Water Division No. 1, applicant-appellants, Farmers Reservoir and Irrigation Company ("FRICO"), Burlington Ditch, Reservoir and Land Company ("Burlington"), Henrylyn Irrigation District ("Henrylyn") collectively "Companies" and the United Water and Sanitation District ("United"), and East Cherry Creek Valley Water and Sanitation District ("ECCV") challenge the water court's decisions regarding historical consumptive use, the effect of prior decrees, the effect of new structures, the water court's one-fill rule analysis, and the impact of these determinations on appellants' rights to use the waters of the South Platte River.
Based upon the record in this change of water rights proceeding, we uphold the findings of fact, conclusions of law, judgment and decree of the water court, including these: in order to prevent an unlawful enlargement of the Burlington and FRICO water rights, the Companies' 1885 Burlington direct flow water right is limited to 200 cfs historically diverted and used for irrigation above Barr Lake; the 1885 Burlington storage water right is limited to annual average reservoir releases of 5,456 acre-feet historically used on lands under the Hudson and Burlington Extension laterals as they existed in 1909; seepage gains into the Beebe Canal, as well as water collected through the Barr Lake toe drains, cannot be counted towards the Companies' historical consumptive use under the 1885 Burlington and 1908 and 1909 FRICO water rights; historical releases from Barr Lake rather than operation of the "one-fill rule" constitute the proper measure of Companies' storage rights in this change of water rights proceeding; the water court's system-wide analysis of historical consumptive use is not barred by claim or issue preclusion due to the orders and decrees issued in Cases Nos. 54658 and 87CW107; the Metro Pumps are a heretofore undecreed point of diversion for which prior diversions cannot be given credit in calculating historical consumptive use; the Globeville Project is also a previously undecreed point of diversion, subject to the water court's imposition of terms and conditions to prevent injury to other water right holders; the water court's judgment and decree do not exceed the scope of its jurisdiction; and the decree contains appropriate conditions to prevent injury to other water rights resulting from the change of water rights.
Accordingly, we uphold the water court's judgment and decree.
The United-ECCV Water Supply Project ("project") is a multi-million dollar effort to provide a renewable source of water to replace the Denver Basin nontributary groundwater upon which ECCV has previously relied for use in its service area. ECCV serves about 50,000 customers in the southeastern Denver metropolitan area within Arapahoe County. Current demand for water in ECCV's service area is about 9,000 acre-feet per year, but ECCV projects that, within the next twenty years, it will serve 70,000 customers with an annual water demand of 14,000 acre-feet.
In 2003, ECCV entered into an agreement with FRICO and United to implement the project. Water supplies contemplated as part of the project include shares diverted from the South Platte River under the 1885 Burlington water rights and the 1908 and 1909 FRICO water rights for beneficial use on farms located north of Denver and Arapahoe Counties.
United is a special district. It owns several facilities, including the United Reservoir and the Beebe Draw pipeline from United Reservoir to Barr Lake. The United/ECCV well field gathers water in Beebe Draw north of Barr Lake. Water pumped from the well field is hydrologically connected to the South Platte River. The changed water rights will augment well field depletions, as well as being capable of use by direct delivery into ECCV's system. Water pumped from the well field will be delivered through the ECCV pipeline, traveling thirty-one miles to ECCV's storage tanks near Smoky Hill Road and Highway E-470 for use in ECCV's service area in Arapahoe County.
In pursuit of this project, applicants sought changes of the 1885 Burlington and 1908 and 1909 FRICO water rights historically utilized for irrigation on farms by means of gravity flow ditches below Barr Lake in order to make municipal-related uses in the future. The augmentation plan necessary for the project is part of this case, but is not being addressed in this appeal.
Issues we address in this appeal result from several consolidated cases before the water court, in which applicants sought decrees confirming conditional water rights and exchanges, changes of points of diversion and storage, and changes of use for senior water rights. They include Case Nos. 02CW105 and 04CW362. In Case No. 02CW105, the Companies made various claims to change decreed water rights on the South Platte River including a change in point of diversion and place of storage for the Burlington and FRICO water rights.
In Case No. 04CW362, FRICO, United and ECCV sought a change from irrigation to municipal use of the 1885 Burlington and 1908 and 1909 FRICO water rights historically utilized below Barr Lake, and approval of the augmentation plan involving ECCV's well field and pipeline. Resume notice in the case describes applicants as seeking "a change of water right for the Shares premised upon a Mitch-wide' methodology in accord with the principles recognized by the Colorado Supreme Court in
Cases 02CW105 and 04CW362 were consolidated into Case No. 02CW403, at issue in this appeal. The water court held a sixteen-day trial and entered its Findings of Fact, Conclusions of Law, and Order ("Order") on September 5, 2008. On May 11, 2009, the court entered its Findings of Fact, Conclusions of Law, and Decree ("Decree"), fully incorporating its previous Order. The court made numerous factual and legal findings.
For purposes of this appeal, the water court's significant determinations include reducing the Burlington 1885 direct flow water right from 350 to 200 cubic feet per second ("cfs") and restricting its use to lands above Barr Lake, based on the legal historical use of Burlington shares during a study period of 1885 to 1909. The court also limited releases from Barr Lake under the Burlington 1885 storage right to lands under the Hudson and Burlington Extension laterals, irrigated prior to FRICO's 1909 involvement in the system at an annual average of 5,456 acre-feet per year; the court employed a study period of 1927 to 2004 in making this analysis.
In making historical consumptive use determinations, the water court disallowed credit for water collected through Barr Lake toe drains, seepage gains into the Beebe Canal, and diversions previously made by the Metro Pumps, an undecreed point of diversion. It ordered diversions by the Metro Pumps in the future to be limited to the amount of water physically and legally available for diversion at the Burlington headgate. Likewise, the court found that the Globeville Flood Control Project constituted a previously undecreed point of diversion and included conditions preventing an enlargement.
The present day Burlington-Barr Lake system consists of the Little Burlington Canal (which was the original Burlington canal), the newer, enlarged Burlington-O'Brian Canal ("Burlington Canal"), and the enlarged Barr Lake (formerly the Barr and Oasis reservoirs). Both canals divert from the South Platte River at the Burlington headgate in proximity to the Denver-Adams County line.
Numerous lateral ditches carry water out of Barr Lake. The East and West Burlington Extension canals were part of the early Burlington system prior to the involvement of FRICO in 1909; these canals delivered water to lands below Barr Lake. The present system includes these canals and in addition, the Speer and Neres Canals (formerly the East and West Hudson laterals), which were improved and expanded by FRICO beginning in 1909. These canals irrigate additional acreage below Barr Lake due to FRICO's involvement.
Under a 1921 agreement, the Companies (FRICO, Burlington and Henrylyn) share water within the Burlington-Barr Lake system.
A 2003 Agreement between ECCV, FRICO and United made United responsible for acquiring water rights and constructing facilities for ECCV's Northern Water Supply Project. United was required to acquire and change Burlington and FRICO shares to municipal and augmentation uses.
Burlington began constructing the original Burlington diversion works in November of 1885 and applied for a decree in 1893. In Case No. 11200, the district court issued a decree for the canal with a priority date of November 25, 1885, for (1) a direct flow right for 350 cfs from the South Platte River and (2) a storage right in Barr Lake and Oasis Reservoir to be filled at 350 cfs from the South Platte River. In issuing its decree in 1893, the district court adopted the findings of the referee. The abstract of testimony the referee prepared identified 12,000 acres of land for irrigation. The abstract also referred to 28,000 acres "susceptible to being irrigated" below the reservoirs:
Construing the language of the decree for the 1885 water rights direct flow and storage rights priorities, examining the referee's documents, and the setting of the historical exercise of the Burlington appropriations prior to FRICO's involvement in the system commencing in 1909, the water court determined that the 1885 direct flow and storage right priorities were limited to uses made under the Burlington system prior to FRICO's expansion of the system for irrigation uses below Barr Lake. Exercise of the 1885 direct flow right diverted for use above the reservoirs was limited to the 200 cfs diversion by Burlington prior to FRICO's involvement and stored water releases from Barr and Oasis Reservoirs, subsequently enlarged and combined within Barr Lake by FRICO, was limited to an annual average of 5,456 acre-feet:
FRICO first contracted with Burlington in 1909. In this contract, Burlington conveyed to FRICO whatever its rights may be to water "in excess of those rights [that] entitled the Burlington Company to fill Barr/Oasis . . . and in excess of the water now obtained and used for direct irrigation." The water court found that after the Burlington and FRICO companies entered into the 1909 contract, FRICO introduced the 150 cfs of "excess" Burlington water into the system and spread it for use on acreage below Barr Lake. In addition, FRICO enlarged a portion of the Burlington Canal, the Burlington headgate, and the original Oasis dam in constructing and operating a combined system known as FRICO's "Barr Lake Division."
In Case No. 54658, adjudicated in 1924, FRICO filed a statement of claim for a 1902 priority in the enlarged Burlington Canal, as well as for adjudication of its enlargement of Barr Lake. The district court disagreed that FRICO was entitled to a 1902 priority. In denying the claimed 1902 priority date, the court determined that the persons claiming it had been speculating on potential water use, as opposed to diligently placing the claimed water to a beneficial use. The district court recognized a priority of 1908 for a direct flow right of 600 cfs of South Platte River water, finding that the 1902 survey had not resulted in diligent pursuit of the project and there was no need for the water:
In addition to the canal enlargement 1908 priority, the district court granted FRICO a 1909 storage right enlargement for 900 cfs of flow into storage between the levels of 19.1 feet and 34 feet deep in Barr Lake.
In the case before us, the water court found that approximately 1,350 acres were being irrigated through reservoir releases for irrigation below Barr Lake as of 1893 — the date the district court entered the Burlington decree in No. 11200. From 1885 to 1900, irrigation acreage ranged from several hundred acres to just under 3,000 acres.
The water court found that FRICO's involvement in the Burlington-Barr Lake system precipitated the enlargement of the Burlington Canal, the raising of the dam at Barr Lake, and the construction of the Speer, Neres, and Beebe Canals in order to greatly expand the irrigated acreage below Barr Lake:
Thus, the water court found that construction of these canals provided the need for the FRICO enlargement priorities and the need for expanded use of the 1885 Burlington direct flow right to 350 cfs from the 200 cfs Burlington Company had effectuated prior to FRICO's involvement in 1909. This need did not exist when the 1885 Burlington appropriations were made.
Thus, the water court barred the Burlington and FRICO shareholders from claiming historical consumptive use credit under the 1885 Burlington priorities for the expanded acreage irrigated below Barr Lake.
In 1987, Thornton sought to change its 501.455 Burlington shares from irrigation to municipal uses. The application in Case No. 87CW107 sought to change only Thornton shares served by the Little Burlington Division of the Burlington Company:
The water court in Case No. 87CW107 determined that the consumptive use credit available to Thornton under the 1885 direct flow Burlington rights utilized above Barr Lake was 1,326 acre-feet annually.
In the case now before us, the water court ruled that the decree in No. 87CW107 did not preclude the water court from conducting a system-wide analysis of historical consumptive use credits available to the Burlington and FRICO shareholders for uses below Barr Lake.
In determining historical consumptive use, the water court limited Burlington's 1885 direct flow right to 200 cfs based on a study period from 1885 to 1909. The water court found that this period was consistent with its "determination regarding the lawful historical use of the 1885 Burlington direct flow water right." It found that no evidence existed to show that the Burlington Company intended to irrigate lands below Barr Lake with 1885 Burlington direct flow water:
The water court concluded that, even if the decree in Case No. 11200 had been for a conditional water right decree giving Burlington the opportunity to build out the Burlington system to serve the 28,000 acres below Barr Lake, such a right did not mature because diversions stayed under 200 cfs for twenty-four years from 1885 until the involvement of FRICO in 1909 — a period too long to meet the test of reasonable diligence. In finding that FRICO unlawfully enlarged the Burlington rights, the court observed, "additional acres could be irrigated because the ability to deliver water through and from Barr Lake greatly expanded after FRICO's involvement."
To prevent instability from water seeping into the earthen Barr Lake Dam, FRICO built a "toe drain" system. The system is built into the dam and works to drain and collect the seepage. An average of about 2 cfs of collected water is delivered into the Beebe Canal, along with water released from Barr Lake. In addition to water collected via the toe drains, the Beebe Canal also collects seepage and return flows from Barr Lake and other small reservoirs and irrigated lands within the Beebe Draw.
Thus, Beebe Canal is a "gaining ditch," because more water is delivered from the Beebe Canal than is released into it from Barr Lake. The water court found that this "seepage gain" averaged 1,200 to 1,300 acre-feet per year from 1927 to 2005.
The water court determined that neither the water collected from the toe drain system, nor the overall seepage gain into the Beebe Canal, could be counted towards the Companies' calculation of historical consumptive use of the 1885 Burlington and 1908 and 1909 FRICO water right priorities.
Prior to 1966, Denver's Northside Wastewater Treatment Plant ("Northside") discharged treated effluent into the South Platte River above the Burlington headgate. Northside thus provided a potential source of supply for the Companies to divert downstream at the Burlington headgate. From 1952 to 1963, Northside discharged an average of 68,000 acre-feet annually. The Companies did not establish in the water court proceedings how much of this effluent was legally and physically available to the Companies at the Burlington headgate or how much was actually diverted.
In 1966, Northside was replaced by the Metro Plant, which operates about 1.5 miles downstream from the Burlington headgate, negating the possibility of Denver effluent being available for diversion at the Burlington headgate. The Companies brought an action against the Metro District in
Although we expressly did not give our "opinion on the right of the plaintiffs to the effluent," we determined that the Companies did not have a vested right to the point of return of the Northside effluent.
The second significant new structure relevant to this appeal is the Globeville Area Flood Control Project ("Globeville Project"), which significantly impacts the Burlington headgate. The Globeville Project involved the construction of a number of structures designed to protect the Globeville neighborhood from a one-hundred year flood. The project also lowered significant portions of the South Platte River channel. Part of the historical elevation of the channel was maintained in order to allow the Companies to continue their diversions, and the existing Burlington diversion dam structure was removed and replaced with a new structure.
The replacement dam and SCADA headgates
The Burlington diversion dam replaced by the Globeville structure had been in operation since 1935, and had a maximum capacity of 700 cfs before it began to spill water back into the South Platte River. Mr. Montoya, FRICO's general manager, testified that diversions into the Burlington Canal are primarily controlled by the SCADA headgates located at the new upstream structure. The original Burlington headgates, which are still operational, are used only to prevent overflow into the Burlington Canal. Prior to the decree in this case, the new point of diversion was not adjudicated. As a condition for adjudicating this diversion, the water court limited diversions into the alternative point of diversion in order to prevent injury to other water rights.
We turn now to our decision.
Based upon the record in this change of water rights proceeding, we uphold the findings of fact, conclusions of law and decree of the water court, including these: in order to prevent an unlawful enlargement of the Burlington and FRICO water rights, the Companies' 1885 Burlington direct flow water right is limited to 200 cfs historically diverted and used for irrigation above Barr Lake; the 1885 Burlington storage water right is limited to average annual reservoir releases of 5,456 acre-feet historically used on lands under the Hudson and Burlington Extension laterals as they existed in 1909; seepage gains into the Beebe Canal, as well as water collected through the Barr Lake toe drains, cannot be counted towards the Companies' historical consumptive use under the 1885 Burlington and 1908 and 1909 FRICO water rights; historical releases from Barr Lake rather than operation of the "one-fill rule" constitute the proper measure of Companies' storage rights in this change of water rights proceeding; the water court's system-wide analysis of historical consumptive use is not barred by claim or issue preclusion due to the orders and decrees issued in Cases Nos. 54658 and 87CW107; the Metro Pumps are a heretofore undecreed point of diversion for which prior diversions cannot be given credit in calculating historical consumptive use; the Globeville Project is also a previously undecreed point of diversion, subject to the water court's imposition of terms and conditions to prevent injury to other water right holders; the water court's judgment and decree do not exceed the scope of its jurisdiction; and the decree contains appropriate conditions to prevent injury to other water rights resulting from the change of water rights.
We accept the water court's factual findings on appeal unless they are so clearly erroneous as to find no support in the record.
The water court has authority to determine a prior decree's setting, intent, meaning and effect when adjudicating an application for a water use right or ascertaining the existence of an undecreed enlargement of a decreed water right.
We review de novo the water court's legal conclusions, including its interpretation of prior decrees.
A water right is a usufructuary right, affording its holder the right to use and enjoy the property of another without impairing its substance. Thus, one does not "own" water but owns the right to use water within the limitations of the prior appropriation doctrine.
A Colorado prior appropriation water right arises only by application of a specified quantity of water to an actual beneficial use.
In 1907, irrigation expert Elwood Mead warned of the danger of recognizing water rights in excess of the actual need of the appropriators:
Elwood Mead,
Colorado law requiring the quantification of historical consumptive use in change proceedings guards against speculation and waste, ensuring optimum use and reliability in the prior appropriation system.
Change decrees are governed by the provisions of the Water Right Determination and Adjudication Act of 1969. A change of water rights will be approved only if the change will not injuriously affect other adjudicated water rights. § 37-92-305(3)(a). Terms and conditions to prevent injury may include relinquishment of part of the decree for which a change is sought "if necessary to prevent an enlargement upon the historical use or diminution of return flow to the detriment of other appropriators." § 37-92-305(4)(a)(II);
An applicant seeking a change of water right decree bears the burden of showing that injury to other adjudicated water rights will not result.
The amount of water available for use under the changed right employing the original priority date,
The flow rate specified in a decree for a point of diversion is not equivalent to the measure of the water right, because every decree carries with it an implied provision that diversions are limited to those sufficient for the beneficial use for which the appropriation was made.
Appropriation of water for irrigation use is limited to the acreage the appropriator intended to irrigate when the appropriation was made. A water right is perfected only by actual application of the water to beneficial use; a conditional water right operates only to hold a place in the priority system, dependent on diligent placement of the water to use.
Change proceedings scrutinize proposed alterations to existing decreed rights that may injure other decreed water rights.
The law's prohibition against undecreed enlargements protects flows upon which other appropriators rely in order of their decreed priorities.
The "one-fill rule" of Colorado water law serves to prevent injury to other appropriators by prohibiting a reservoir from making more than one fill annually based on its adjudicated priority.
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Storage itself is not a beneficial use; the subsequent use of stored water, such as irrigation of lands, is the beneficial use for which water is stored.
§ 37-92-103(5). The one-fill rule and the no injury rule are not mutually exclusive; they work in concert to ensure that no more than one fill of a reservoir is permitted per year and that stored water when applied to beneficial use will not unlawfully enlarge the water right to the detriment of other appropriators.
Our first step in reviewing the water court's calculation of historical consumptive use for change of the Burlington 1885 rights is to determine if the court properly interpreted the decree in Case No. 11200.
The plain language of the 1885 decree describes a direct flow right to 350 cfs of water and a storage right of 11,000 acre-feet of water, without specifying where the water was to be applied. Applicants contend that the water court erred by refusing to count the 28,000 acres below Barr Lake described in the abstract of testimony as being "susceptible to being irrigated" within its calculation of historical consumptive use. The water court determined that this description did not evince intent to irrigate these acres, but merely described a vague potential for irrigation. We agree.
Read in context, the referee's description — which referenced in the same sentence acreage "unlimited as it may continue to the eastern line of Colorado" — does not meet our often-announced standard "that the use of water for irrigation is `measured by the needs of the land for irrigation of which the water was decreed.'"
The water court considered the development of the Burlington system up to 1909, the year FRICO purchased Burlington's so-called "excess water" through a 1909 agreement the two Companies executed. This agreement specifically reserves to Burlington the use of the water it had developed under the 1885 rights:
(emphasis added).
The "excess water" is that which the Burlington shareholders had not put to beneficial use. The water court found that, in 1893, when the Burlington decree issued, the Burlington Canal terminated at Barr Lake and forty miles of outlet laterals had been constructed to utilize the waters from Barr Lake and Oasis Reservoir. The outlet laterals were described by the referee as constructed, not for the purposes of utilizing direct flow water, but for using storage water: "from said reservoir [Oasis Reservoir, now part of Barr Lake] for the purpose of taking and utilizing the waters therefrom."
The water court concluded that applicants provided no evidence demonstrating "that the Burlington Company intended to irrigate lands below Barr Lake with 1885 Burlington direct flow water." We defer to the water court's findings of fact in the absence of clear error, and affirm the court's conclusion that the 1885 Burlington direct flow right does not include irrigation of lands below Barr Lake and the 1885 storage right is limited to releases on lands below Barr Lake for irrigation use that occurred prior to FRICO's enlargement of the diversion and distribution system.
Applying water outside of the acreage originally contemplated by the appropriation is unlawful.
FRICO unlawfully enlarged its use of the 1885 Burlington priorities. Appellants argue that no unlawful enlargement of the Burlington rights occurred because the decree in Case No. 11200 contains no limitation prohibiting the use of its direct flow right on lands below Barr Lake. To the contrary, the contract FRICO entered into with Burlington in 1909 supports the conclusion that an undecreed enlargement occurred. Burlington sold its "excess" rights to FRICO, not any part of the water it had put to beneficial use.
The water court found that following the 1909 agreement with Burlington, FRICO constructed 140 miles of outlet laterals below Barr Lake (the Speer and Neres laterals and the Beebe Canal). These canals enabled the Burlington and FRICO companies to deliver direct flow water diverted through Barr Lake to irrigate substantially more acreage than appropriated for irrigation under the 1885 Burlington priority. What Burlington purported to sell to FRICO were diversions Burlington did not need nor put to beneficial use on the 12,000 acres irrigated under the 1885 direct flow priority above Barr Lake. But this "excess water" belongs to the public under Colorado water law, subject to appropriation and use in order of decreed priority; any purported conveyance of water the appropriator does not "need" or has not put to beneficial use flags an illegal enlargement.
We affirm the water court's findings of fact and its conclusions of law. A diversion flow rate specified in a decree is neither the measure of a matured water right, nor conclusive evidence of the appropriator's need for which the appropriation was originally made. Nor can diversions made at an undecreed point of diversion be credited in the calculation of historical consumptive use in fashioning a change of water rights decree.
The water court correctly concluded that FRICO's involvement and significant expansion of the Burlington water rights, both direct flow and storage, twenty-four years after the 1885 appropriation effectuated an unlawful enlargement of the Burlington rights. FRICO made its own appropriations in 1908 and 1909, which were adjudicated in 1924. The 1885 Burlington and 1908 and 1909 FRICO appropriative rights must be administered in accordance with their distinct priorities vis-à-vis all other decreed priorities of natural stream waters, which includes surface water and tributary groundwater.
The third step in our analysis is to consider the time period utilized by the water court to calculate historical consumptive use. We review the water court's choice of a study period under an abuse of discretion standard.
The water court used a study period of 1927 to 2004 for the 1885 Burlington storage right. The storage study period represents both a substantial period of time for calculating historical consumptive use and a fair calculation because beneficial use averaged 5,456 acre-feet annually for 1927 to 2004. This amount nearly matches the annual releases from 1897 to 1909 of 5,511 acre-feet for beneficial use from the Barr and Oasis reservoirs.
Storage itself is not a beneficial use; the subsequent use of stored water for irrigation is the beneficial use that is determinative in this change proceeding.
The Companies argue that the water court improperly excluded seepage through the Barr Lake toe drains and seepage gains into the Beebe Canal in computing historical consumptive use credits per share available under the decreed appropriations. First, we address seepage collection via the Barr Lake toe drains. The water court determined that seepage collected by the toe drains should be excluded from the calculation of consumptive use associated with the 1885 Burlington and the 1908 and 1909 FRICO water rights. The court concluded that none of the decrees adjudicated recapture of seepage, and further, that including toe drain seepage in a calculation of historical consumptive use would amount to double-counting.
Seepage of reservoir water that is tributary to a natural watercourse is part of the public's water resource, subject to appropriation under Colorado's priority system.
Next we address whether seepage gains into the Beebe Canal should have been included in the water court's calculation of historical consumptive use. As described above, the water court found that the Beebe Canal is a net —gaining ditch" — that is, it gains more water from seepage into the canal than it loses from seepage or evaporation. The court relied on expert testimony revealing that 28 percent of the Canal's total deliveries come from seepage collected along the course of the Canal below Barr Lake.
Recognizing the water court's unique ability to evaluate evidence and make factual determinations in complex cases, we defer to the findings of the water court unless they are clearly erroneous.
Seepage flows into ditches cannot be allocated independent of existing priorities on the river.
Barr Lake is capable of storing approximately 30,000 acre-feet of water. Every year, the reservoir carries over about 11,000 acre-feet, or one third of its total capacity. Under the one-fill rule, Barr Lake can store water up to the reservoir's capacity.
The water court based its findings on evidence that, without limits based on historical use, Appellants would be allowed to consume more water than was historically released from the reservoir, resulting in increased diversions from the South Platte River to fulfill higher demand. Appellants presented no evidence to the contrary to meet their burden of showing that such a change would not injure junior appropriators.
We affirm the water court, and hold that in order to prevent injury, historical releases from Barr Lake for irrigation, rather than a pro rata share of a full fill are the proper measure for change of storage rights in this proceeding. As discussed above, the one-fill rule is but one tool available within Colorado water law to set and administer diversion limitations on storage rights to prevent unlawful enlargement and injury to junior appropriators.
In
Because a reservoir's diversions may vary from year to year depending on carry-over and availability of water in priority, the one-fill rule accounts for these variances, but does not enable the enlargement that the Companies seek. In
The water court's imposition of volumetric limitations based on historical use protects other adjudicated water rights against injury.
In our analysis above, we interpreted Burlington's 1893 decree in Case No. 11200. We now turn to the effect of FRICO's 1924 decree in Case No. 54658 and Thornton's 1987 decree in Case No. 87CW107 upon the water rights at issue in this matter. The water court concluded that neither issue nor claim preclusion under previous decrees barred its system-wide determination of allowable historical consumptive use credits from direct flow gravity irrigation made on farms below Barr Lake. We agree.
Claim and issue preclusion promote finality and efficiency in judicial decision-making by preventing relitigation of matters already considered and decided by the courts.
In
In
First, we address the potential preclusive effect of the decree in Case No. 54658, a general adjudication which determined the relative priorities of FRICO and Henrylyn to direct flow in the Burlington Canal. The threshold inquiry under both claim and issue preclusion is whether the issue or claim to be precluded is identical to a prior issue or claim.
Appellants concede that historical consumptive use was not determined in Case No. 54658, but argue that the diversion rate and storage volume determined in that case should have a preclusive effect on the water court's calculation of historical consumptive use. We decline to hamstring the decision-making of our water courts by inferring preclusion where issues are not identical and determinative. Doing so could result in injury to other appropriators resulting from a change of water rights.
In 54658, the referee found that the capacity of the enlarged Burlington Canal was 1250 cfs. Of this, 350 cfs was decreed to the 1885 Burlington direct flow right. Likewise, the 1909 enlarged Barr Lake storage right was determined by the water court in Case No. 54658 to be the "amount it will hold between the storage depths of 19.1 and 34 feet." Appellants argue that the court implicitly recognized that the first 19.1 feet of storage in Barr Lake was dedicated to the 1885 Burlington storage right, amounting to 11,081 acre-feet.
While the court in 54658 may have looked to the decree in Case No. 11200 and made certain assumptions favorable to Appellants' position, Appellants point to no evidence indicating that the parties litigated or that the court determined the central issue of historical consumptive use of the 1885 Burlington rights on average below Barr Lake at issue in the case before us.
Next, we consider the possible preclusive effect of Thornton's 1987 change of water rights application and the resulting decree in Case No. 87CW107. The water court below concluded that the historical use determinations in 87CW107 were limited to Thornton's rights in the Little Burlington system, and thus did not bar the system-wide analysis of historical consumptive use properly attributable to the 1885 Burlington direct flow right for gravity irrigation below Barr Lake.
In 87CW107, the water court found that Thornton's Burlington shares made up 12.5% of the total outstanding Burlington Company shares. The subject matter of the case and the resulting decree was explicitly limited to Thornton's shares in the Little Burlington Division. The application recited that "[t]his application does not seek to change the use of water rights represented by any of Thornton's Burlington shares served by the O'Brian Division of the Burlington Company or by any shares owned by Thornton in the Farmers Irrigation and Reservoir Company-Barr Lake Division."
Thornton argues that the 1885 Burlington direct flow right is a single, indivisible priority, and that its Little Burlington shares cannot therefore be separated from the larger system. However, FRICO's manager testified before the water court that half of the overall shares in the Burlington system are held in the Little Burlington and that none of these Little Burlington shareholders receive their water below Barr Lake. Moreover, under FRICO's operation of the system, Little Burlington shareholders are entitled to first priority in use of the 1885 Burlington 200 cfs direct flow right. This evidence, coupled with the fact that Thornton's own application in 87 CW107 was to change only its Little Burlington shares, supports the conclusion that the Little Burlington system is distinct and that the decree in 87CW107 only addressed Thornton's shares in that system and did not make a consumptive use determination applicable to lands irrigated below Barr Lake.
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Nonetheless, Thornton and FRICO claim that, because the water court in 87CW107 included in its calculation of historical consumptive use an assumption that the full 350 cfs under the original No. 11200 decree was available under the 1885 right, the issue of historical use was determined in that proceeding. Such assumptions do not meet the test for preclusion, which requires an actual and necessary determination by a water court.
The water court's determination does not impact the decree in No. 87CW107. That decision is not inconsistent with the water court's determination that the 1885 Burlington direct flow appropriation is limited to 200 cfs for use above Barr Lake. As to the Little Burlington system operating above Barr Lake, Thornton's legal use of the 1885 Burlington direct flow right should remain unaffected.
Finally, we address whether the decree in Thornton's Case No. 87CW107 is preclusive as to the legality of the Metro Pumps diversion. The water court found that there was no determination in Case No. 87CW107 confirming the Metro Pumps as a lawful alternate point of diversion. We agree. It is undisputed that the decree in Case No. 87CW107 references the Metro Pumps as a source of supply to the Burlington Ditch. However, the decree merely describes the "Metro Pump Station" as an "undecreed alternate point of diversion." Significantly, the case did not decree the Metro Pumps as a new point of diversion. As discussed above, Case No. 87CW107 was a change of water rights application. Although the court noted that the Metro Pumps were an undecreed source of supply, the application did not seek to decree the Metro Pumps as an alternate point of diversion. The legality of diversions by means of the Pumps for purposes of a change proceeding's calculation of allowable historical consumptive use was not raised nor litigated.
Water rights are decreed to structures and points of diversion, not to owners and users.
As discussed above, Colorado has a well-developed no injury standard which requires that a change of water right will be approved only if such change will not injuriously affect the owners of vested or conditional water rights. § 37-92-305(3)(a), C.R.S. (2010);
In
753 P.2d at 1223-24.
In
The water court below determined that there was no factual or legal basis upon which it could recognize the Metro Pumps in its calculation of credits for historical consumptive use. Consequently, the water court ordered the Companies to reduce the amount diverted under the Burlington decrees by 9,600 acre-feet per year. The practical result of the court's determination is that diversions at the Metro Pumps as an alternate point of diversion for the Burlington decrees have been limited to the amount of water physically and legally available at the Burlington headgate.
The water court's key findings of fact supporting these orders concerned the claims of injury argued by opposing parties. Englewood and Denver both claim that they will be adversely affected by the water court's orders because, without the Metro Pumps source of supply, it will take longer for the Companies to fill their reservoirs, thus delaying the cities' satisfaction of their junior rights. However, Public Service Company objects to the continued delivery of water from the Metro Pumps into the Burlington Canal. It claims that its water rights downstream of the Metro Plant are injured because the undecreed change causes an increased draft upon the River, reducing the amount of water available for Public Service Company's industrial water use.
The water court determined that there was no cognizable legal injury to Denver and Englewood if the Companies' request for inclusion of the historical supply from the Metro Pumps is denied. The court reasoned that, although junior appropriators may have a right to the maintenance of stream conditions, those rights cannot rely on undecreed diversions. The water court concluded that confirmation of the operation of the Metro Pumps without conditions would injure vested water rights including Public Service Company's junior and senior water rights downstream of Burlington on the South Platte River. Key to this conclusion was the water court's associated finding that the pumping of Metro effluent into the Burlington Canal unlawfully enlarges the water rights decreed to the Burlington headgate.
Appellants posit several theories including the State Engineer's acquiescence to pumping directly into the Burlington Canal, the 1968 agreement between Denver and the Companies, and the claim that diversions from the Metro Pumps merely replicated pre-1968 diversions of Northside effluent at the Burlington headgate. None of these arguments avail; the record contains evidence sufficient to support the water court's findings of injury, which we will not disturb on appeal.
In addition to failing to prove no injury to other appropriators, Appellants failed to prove that operation of the Metro Pumps as they propose would not unlawfully enlarge their lawful use. In
No prior proceedings have adjudicated the Metro Pumps as a point of diversion.
The water court below determined that the Globeville Project also constitutes a previously undecreed point of diversion. The water court's decree now recognizes the Globeville structure as a point of diversion and has placed conditions in the decree to protect against injury to other water rights in operating this diversion.
On appeal, the threshold question regarding the Globeville Project is whether the new structure meets the statutory definition of a change in the point of diversion. If the Globeville Project is a change in the point of diversion, applicants must show that the change produces no injury to other decreed water rights. Section 37-92-103(7), C.R.S. (2010) defines diversions as follows: "removing water from its natural course or location, or controlling water in its natural course or location, by means of a control structure, ditch, canal, flume, reservoir, bypass, pipeline, conduit, well, pump, or other structure or device."
The undisputed evidence concerning the makeup of the Globeville Project — its replacement dam, technologically superior SCADA headgates, and the 900-foot long concrete approach channel, which is separate and parallel to the South Platte River, all support the water court's finding that the project constitutes a change in point of diversion under the plain language of the statute. The water court found that the water diverted from the river is controlled in an artificial structure hydrologically disconnected from the River at all times. This determination is entitled to deference, and we will not disturb it on appeal because it is based on evidence in the record.
The Companies argue that our decision in
Alternatively, Lochbuie argues that the Globeville project did not require approval for a change in point of diversion because it was merely a permissible extension of the head of a ditch upstream in order to maintain diversions. The right of a ditch owner to maintain flow by modification is codified in section 37-86-111, C.R.S. (2010):
(emphasis added). While it is true that the extension of the head of a ditch is permissible, both under our decision in
The water court determined that the Globeville Project's structures will enable larger and more effective diversions, thereby injuring vested water rights on the already over-appropriated South Platte River. We uphold the water court's determination because its findings accord with the statutory requirements for a change of water rights.
The water court properly imposed protective operational terms and conditions on the newly decreed diversion created by the Globeville Project. The court decreed that "[t]he new point of diversion for the Burlington Headgate is decreed for the requantified water rights found in paragraph 22 [Burlington-Barr and FRICO-Barr Water rights]."
Water court proceedings for the determination of water rights are in rem, taking into account the relative priorities of all water rights on a stream system.
Compliance with statutory notice provisions is evaluated on the particular facts of the case.
The water court's decree quantified historical consumptive use of the Burlington and FRICO rights originally put at issue in the application for various changes of water rights in Case No. 04CW362. As early as the 2003 agreement between FRICO, United, and ECCV, the Companies indicated their intent to pursue a "ditch-wide" or "system-wide" adjudication:
Later, applicants United, FRICO and ECCV requested a "system-wide" basis of accounting in their application. The court's decree requantified Burlington-Barr and FRICO-Barr Water rights, limiting amongst other items, the 1885 Burlington direct flow right to 200 cfs for use above Barr Lake and restricting reservoir releases of Burlington 1885 storage rights from Barr Lake to the lands under the Hudson and Burlington Extension laterals as they existed in 1909. In its decree the water court stated that its system-wide analysis for changing the FRICO and Burlington water rights "applies only to those shares that have been used on farms that have gravity-based application and no other water supply . . . ." Decree provision 22.1 sets forth the "Use and Volumetric Limitation on the Water Rights" for the 1885 Burlington rights and the 1908 and 1909 FRICO rights.
On appeal, Henrylyn, Brighton and Thornton claim that the water court unlawfully overstepped its jurisdiction by requantifying shares that were never identified nor properly before the court for change. Instead, the parties contend that they would only be bound by the water court's system-wide requantification if and when they decide to change their Burlington and FRICO shares in the future.
A change of water right proceeding precipitates quantification based on actual historical consumptive use, in order to protect other appropriators.
The parties do not contest the fact that resume notice was properly published for the applications in Case Nos. 02CW105 and 04CW362. The resume in both cases was sufficient to place parties
Likewise, the resume in 02CW105 gave broad notice that applicants sought changes in the point of diversion and use for Burlington and FRICO direct flow water rights historically utilized on lands below Barr Lake. Upon publication of these notices, the water court obtained in rem jurisdiction over the Burlington and FRICO water rights at issue in the applications.
In
Henrylyn argues that, even if the water court had proper jurisdiction, it improperly limited Henrylyn's water rights contrary to a stipulation it signed with Aurora, Central and Englewood. Henrylyn relies upon language in the stipulation, approved by the court prior to the final Decree that "any determination . . . of historical usage, expanded use, yield per share, or terms and conditions required to change the use of the FRICO or Burlington water rights shall not apply to, nor change the use of Henrylyn's 560 FRICO or its 123 Burlington shares." Henrylyn posits that the court's earlier order approving the stipulation was the law of the case, and therefore the court erred by refusing to incorporate it into the later Decree.
Stipulations are contracts, binding upon their signatory parties, and interpreted under contract law principles.
In
Henrylyn's argument fails on several counts. First, the stipulation in
The water court's decision was not erroneous, capricious, or arbitrary. Instead, the court was well within its discretion to reject Henrylyn's arguments and refuse to incorporate the terms of the parties' stipulation into its final Orders and Decree. The opinion Henrylyn relies upon,
The water court did not err in its conclusions of law; its factual findings are supported by the evidence.
Accordingly, we affirm the water court's judgment and decree.