No. 81SA165Supreme Court of Colorado.
Decided June 1, 1982. Rehearing denied June 21, 1982.
Appeal from the District Court of Weld County, Honorable Donald A. Carpenter, Judge.
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[EDITORS’ NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.]Page 365
J. D. MacFarlane, Attorney General, Richard F. Hennessey, Deputy Attorney General, Mary J.
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Mullarkey, Solicitor General, Wendy C. Weiss, Assistant Attorney General, for plaintiff-appellant.
David J. Miller and Associates, David J. Miller, Kevin L. Strobel, for defendant-appellee.
En Banc.
JUSTICE ERICKSON delivered the opinion of the Court.
[1] This case arises under the Colorado Ground Water Management Act, section 37-90-101 et seq., C.R.S. 1973. The Colorado State Engineer, as plaintiff-appellant (State Engineer), appeals from a district court order denying a request for injunctive relief against defendant-appellee, Kerbs Ag., Inc. (Kerbs), to curtail expansion of the historical consumptive use of Kerbs’ water rights. We reverse and remand to the district court for a hearing in accordance with the directions expressed herein and for the entry of findings of fact and appropriate conclusions of law. I.
[2] In February 1965, the State Engineer issued Kerbs’ predecessor in interest, Elmer Lundvall, three permits which authorized the construction of wells to appropriate ground water at a maximum rate of 1200 gallons per minute (gpm) per well. Lundvall owned all of section 28, Township 1 South, Range 45 West of the 6th Principal Meridian (Section 28). Each of the three permits was issued based on an application to appropriate water to irrigate 140 acres of Lundvall’s property, which was located within the boundaries of the Northern High Plains Designated Ground Water Basin.[1]
On July 26, 1965, pursuant to the Colorado Ground Water Management Act then in effect, 1965 Perm. Supp., C.R.S. 1963, 148-18-1 et seq. (now codified in 37-90-101 et seq., C.R.S. 1973) (Act), Lundvall notified the Colorado Ground Water Commission (Commission) that wells had been constructed in the northeast, northwest, and southwest quarters of Section 28; that they were each producing 1200 gpm; and that they were each irrigating 140 acres in the specified quarter section designated in their respective permits. Under rules subsequently adopted by the Central Yuma County Ground Water Management District (Management District), Lundvall could not use water from the existing wells to irrigate the southeast quarter of Section 28.
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irrigating the additional 141 acres. When Lundvall continued to irrigate the 141 acres, the State Engineer filed this action to enjoin Lundvall from transporting water from any of the three wells to land other than that designated in the permits issued by the Commission. Lundvall counterclaimed for an injunction against the State Engineer and challenged the constitutionality of the Act. The Management District was joined as a third party plaintiff on Lundvall’s motion, and Lundvall filed a crossclaim against the Management District, seeking an injunction prohibiting the enforcement of its rules and regulations. The District Court for Weld County found the Act unconstitutional and, on July 10, 1973, granted the relief requested by Lundvall. The State Engineer thereafter appealed.
[5] In Kuiper v. Lundvall, 187 Colo. 40, 529 P.2d 1328 (1974), appeal dismissed, 421 U.S. 996, 95 S.Ct. 2391, 44 L.Ed.2d 663 (1975), we reversed the district court, found the Act to be constitutional, and remanded the case to the district court “with directions to vacate the injunction issued against the State Engineer, to dismiss Lundvall’s counterclaim and crossclaim and to proceed under the issues framed by the complaint and answer. . . .” Id. On remand, as the successor in title to all lands and wells owned by Lundvall, Kerbs was substituted for Lundvall as the defendant in this action. To further complicate the case, between October 1965 and December 1967, Lundvall applied for and received six new permits to construct wells to irrigate additional portions of his property. Shortly thereafter, the Commission learned that Lundvall was irrigating additional acreage, without Commission approval, from the wells constructed as a result of the issuance of the six additional permits. Accordingly, during the pendency of Kuiper v. Lundvall, supra, the State Engineer also sought to enjoin the expansion of irrigated acreage from the six additional wells. On November 16, 1977, the cases were consolidated by this Court. [6] In an amended complaint filed on November 15, 1977, the State Engineer alleged that Kerbs was irrigating land not listed on his permits in violation of Management District rules and regulations prohibiting expanded use, and in violation of guidelines issued by the Commission.[4] In addition, the State Engineer contended that Kerbs was using water from an area in which no unappropriated water was available and that such expanded use injured the State of Colorado and all ground water appropriators in the Management District. On September 22, 1978, the district court denied injunctive relief to curtail the expansion of irrigated acreage from the wells in Section 28 and from one of the six new wells on the grounds that the amount of water pumped by the wells had not increased.[5] However, because the district court concluded that expansion of the irrigated acreage from the five remaining wells occurred after the enactment of the Act and the rules and regulations of the Management District, itPage 368
enjoined Kerbs from irrigating the expanded acreage from those wells.
[7] On November 14, 1978, the State Engineer and the Management District filed timely motions for a new trial. Between November 14, 1978 and February 10, 1981, the State Engineer did not cause the motions to be set for hearing, but did seek enforcement of that portion of the district court’s decree which was favorable to him by a letter to Kerbs dated June 27, 1980. Thereafter, on October 24, 1980, the State Engineer sought and obtained an order to show cause why Kerbs should not be held in contempt of court for violation of the decree. On February 10, 1981, at the show cause hearing, the district court dismissed the State Engineer’s motion for a new trial with prejudice for lack of diligent prosecution, and found Kerbs not guilty of contempt of court.[6] The State Engineer now seeks to appeal the decree of the district court denying injunctive relief to curtail Kerbs’ irrigation of the expanded acreage. For the reasons expressed in this opinion, we reverse the decision of the district court.II.
[8] As a preliminary matter, we reject Kerbs’ contention that we lack subject matter jurisdiction to hear this appeal by virtue of the district court’s sua sponte dismissal of the State Engineer’s motion for a new trial, with prejudice, for lack of diligent prosecution. Kerbs contends that the motion was nullified since the district court merely dismissed the motion and did not rule on its merits. In Kerbs’ view, the State Engineer’s failure to obtain a denial of the motion for a new trial precludes judicial review under C.R.C.P. 59(f), which provides:
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rather than granting or denying the motions for a new trial?
[17] “THE COURT: I beg your pardon? [18] “COUNSEL FOR KERBS: I just want to make it clear for the sake of the record that, as I understand it, the Court is dismissing the motions for a new trial rather than granting or denying the motions for a new trial. Do I understand you correctly? [19] “THE COURT: I thought that’s what I said. Did I say anything other than that? [20] “CO-COUNSEL FOR KERBS: No. [21] “COUNSEL FOR KERBS: I just want to make it clear. [22] “THE COURT: If I said anything other than that, I intend to dismiss all motions for a new trial for lack of diligence on the part of counsel to call it to the Court’s attention. Two years should be time enough.” [23] The purpose of a motion for a new trial is to give the trial court an opportunity to correct alleged errors. See, e.g., Minshall v. Pettit, 151 Colo. 501, 379 P.2d 394 (1963); Walter v. Walter, 136 Colo. 405, 318 P.2d 221 (1957). Here, it is undisputed that the State Engineer filed a timely motion for a new trial and otherwise complied with the requirements of C.R.C.P. 59. Cf. West-Fir Studs, Inc. v. Anlauf Lumber Co., 190 Colo. 298, 546 P.2d 487 (1976) (where the court of appeals properly dismissed an appeal when a motion for a new trial was denied for noncompliance with C.R.C.P. 59). It was then incumbent upon the district court to either set the motion for hearing or to dispense with oral argument and decide the motion on the basis of the written briefs alone. C.R.C.P. 59(b) and (f). [24] Moreover, in this case, the trial judge was afforded an opportunity to rule upon the merits of the motion at the hearing, but expressly declined to do so. The State Engineer’s reliance on that portion of the district court’s decree of September 22, 1978, which was favorable to his position did not, as the district court suggests, preclude him from exercising his statutory right to appeal under the Colorado Rules of Civil Procedure. Under the circumstances, we believe that the district court’s order dismissing the motion for a new trial was tantamount to a denial of the motion. Accordingly, we hold that this appeal is properly postured for review. See C.A.R. 4(a)(4).III.
[25] The principal question now before us is whether the district court erred in approving Kerbs’ irrigation of additional acreage without considering whether the increases in acreage also expanded the historical consumptive use of Kerbs’ water rights. It is clear that both the rules and regulations of the Central Yuma County Ground Water Management District and the provisions of the Colorado Ground Water Management Act would now prohibit expansion of the irrigated acreage from the four wells. Rule 11 of the Management District, enacted on September 14, 1970, provides:
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designate on the form prescribed. The amount of water applied for shall only be utilized on the land designated on the application. The place of use shall not be changed without first obtaining authorization from the ground water commission.” (Emphasis added.)
[29] See also W-Y Ground Water Management District v. Goeglein, 196 Colo. 230, 585 P.2d 910 (1978). [30] Since Kerbs had valid appropriations for a fixed amount of water from the four wells prior to the enactment of either provision and since there were no subsequent increases in the amount of ground water withdrawn by Kerbs, the district court concluded that Kerbs must be permitted to continue irrigating the additional acreage. We disagree. In our view, the district court should have considered: (1) whether Kerbs’ historical consumptive use of the ground water had increased by expanding the irrigated acreage; (2) whether the expansions reduced the return flow to the injury of other appropriators from the designated ground water basin; and (3) whether there was unappropriated water available in the Northern High Plains Designated Ground Water Basin which would permit increased usage.A.
[31] We recognize the dissimilarity in the basic policies underlying the laws of this State for surface water and for ground water in designated basins. Prior appropriation rules for surface water were primarily designed and developed to protect the relative rights of senior and junior appropriators, in order to maximize the beneficial use of the surface water in this State. See section 37-92-102(1)(a), C.R.S. 1973 (1981 Supp.) Colo. Const. Art. XVI, sec. 6. See generally Southeastern Colorado Water Conservancy District v. Shelton Farms, Inc., 187 Colo. 181, 529 P.2d 1321
(1974). In contrast, Colorado’s permit system for regulation of the appropriation of water in designated ground water basins under the Act permits the full development of ground water sources while protecting against depletion of the underground aquifer, which is not subject to the same ready recharge enjoyed by surface streams and tributary ground water See section 37-90-102, C.R.S. 1973. See also North Kiowa Bijou Management District v. Colorado Ground Water Commission, 180 Colo. 313, 505 P.2d 377
(1973); Fundingsland v. Colorado Ground Water Commission, 171 Colo. 487, 468 P.2d 835 (1970); Kuiper v. Lundvall, 187 Colo. 40, 529 P.2d 1328
(1974), appeal dismissed, 421 U.S. 996, 95 S.Ct. 2391, 44 L.Ed.2d 663
(1975). See generally Current Developments, Tributary Ground Water and Change-Of-Place-Of-Use Rules in Designated Ground Water Basins in Colorado, 45 U. Colo. L. Rev. 229 (1973).
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to a natural stream, where appropriation of water is permitted so long as there is water in the stream, the doctrine is also modified when applied to designated ground water to insure that no more than a reasonable depletion, as determined by the Commission, occurs in the aquifer Colorado Ground Water Commission v. Dreiling, supra. See section 37-90-111, C.R.S. 1973.
[35] Section 37-90-102 is designed to protect prior appropriations of ground water while, at the same time, insuring that reasonable ground water pumping levels are maintained. To permit the maximum economic development of designated ground water in the Northern High Plains Designated Ground Water Basin, while protecting prior appropriations and maintaining reasonable pumping levels, the Commission allows no more than a 40 percent depletion of the aquifer in 25 years.[8] See Thompson v. Colorado Ground Water Commission, supra; Fundingsland v. Colorado Ground Water Commission, supra. Under the Act, and through careful planning and regulation by the Commission, the greatest yield for the longest period of time can be obtained from a designated ground water basin. It is therefore apparent from section 37-90-102 that the principles underlying the doctrine of prior appropriation are applicable to a designated ground water basin, modified only by the policy against any unreasonable depletion of the aquifer in the basin. [36] In Larrick v. North Kiowa Bijou Management District, 181 Colo. 395, 510 P.2d 323 (1973), we recognized that if the same change-in-place-of-use rules apply to designated ground water as to surface water, the Commission could properly determine whether the place of use could be changed without injury to others and that conditions for a change in place of use could be imposed to prevent injury.[9] See also Ackerman v. City of Walsenburg, 171 Colo. 304, 467 P.2d 267 (1970). Subsequent to our decision i Larrick, a section was added to the Act to reflect a “material injury” standard for changes in place of use of designated ground water rights. Section 37-90-111(1)(g), C.R.S. 1973 (1981 Supp.), provides: [37] “(1) In the administration and enforcement of this article and in the effectuation of the policy of this state to conserve its designated ground water resources and for the protection of vested rights, and except to the extent that similar authority is vested in ground water management districts pursuant to section 37-90-130 (2), the ground water commission is empowered:” [38] . . . [39] “(g) Upon application therefor by any permit holder, to authorize a change in acreage served, place or type of use of and by any water right, or of any well location, either conditional or final, granted under the authority of the commission, but only upon such terms and conditions as will not cause material injury to the vested rights of other appropriators. In the case of proposed changes in a final permit, such change may be made only after publication of such application asPage 372
provided in section 37-90-112.” (Emphasis added.)
[40] Similarly, section 37-90-107(4), C.R.S. 1973 (1981 Supp.), provides: [41] “If objections have been filed within the time in said notice specified, the commission shall set a date for a hearing on the application and the objections thereto, and shall notify the applicants and the objectors of the time and place. . . . If after such hearing it appears that there are no unappropriated waters in the designated source, or that the proposed appropriation would unreasonably impair existing water rightsPage 373
B.
[49] An appropriator cannot change the point of diversion or the place of use if the change increases the amount of water or the historical use to the detriment of other appropriators. See, e.g., Weibert v. Rothe Brothers, Inc., 200 Colo. 310, 618 P.2d 1367 (1980); City of Westminster v. Church, 167 Colo. 1, 445 P.2d 52 (1968); Hoehne Ditch Co. v. Martinez, 71 Colo. 428, 207 P. 859 (1922); Baca Ditch Co. v. Coulson, 70 Colo. 192, 198 P. 272 (1921). Historical use, however, may be less than the optimum utilization represented by the “duty of water.”[10] Weibert v. Rothe Brothers, Inc., supra. The historical use of a particular water right is not measured solely by the amount of water withdrawn and applied to beneficial use, but also by the amount of return flow. Farmers Highline Canal Reservoir Co. v. City of Golden, 129 Colo. 575, 272 P.2d 629
(1954). It is a fundamental principle that the consumptive use of water may not be increased to the injury of other appropriators. See, e.g., Southeastern Colorado Water Conservancy District v. Rich, 625 P.2d 977
(Colo. 1981); Twin Lakes Reservoir v. City of Aspen, 193 Colo. 478, 568 P.2d 45 (1977); City of Westminster v. Church, supra.
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recharge rate of the appropriate water supply, the priority and quantity of existing claims of all persons to use the water, the proposed method of use, and all other matters appropriate to such questions. With regard to whether a proposed use will impair uses under existing water rights, impairment shall include the unreasonable lowering of the water level, or the unreasonable deterioration of water quality, beyond reasonable economic limits of withdrawal or use.”
[54] Appropriators are legally entitled to rely on the return flows they have historically received from diversions made by other appropriators See City of Boulder v. Boulder Left Hand Ditch Co., 192 Colo. 219, 557 P.2d 1182 (1976). It is clear that unreasonably injurious changes of use may ensue from any use of the land which results in a reduction of the amount of return flow of water into a designated ground water basin or which allows the well owner to utilize more basin water simply through increasing the amount of acreage irrigated. Moreover, an expansion of irrigated acreage which decreases return flow will increase the rate of depletion of the aquifer. In an area which is fully appropriated, i.e., one which is being depleted at a rate of 40 percent in 25 years, other appropriators will be injured because their supply of water will be depleted at a faster rate. Even if an owner of water rights from a designated ground water basin is able to irrigate four quarter sections of his property by applying the same amount of water which he previously used to irrigate three quarter sections, irrigation of four quarter sections may nonetheless consume more water through evapotranspiration than three quarter sections would have consumed. Such increased consumption will necessarily reduce return flow and, in an area which is already fully appropriated, the water rights of other appropriators will be injured. Because of the applicability of these concepts to the facts of this case, there is a significant possibility that Kerbs’ expansion of irrigated acreage could unreasonably injure the legal rights of other appropriators in the ground water basin by impairing the return flow from Kerbs’ wells. C.
[55] In our view, the trial court’s legal analysis supports a conclusion that Kerbs perfected water rights for the acreage designated in its permits. See Peterson v. Colorado Ground Water Commission, 195 Colo. 508, 579 P.2d 629 (1978); Thompson v. Colorado Ground Water Commission, supra. However, since the court did not apply the proper legal standards to evaluate Kerbs’ change in place of use, it did not consider whether the area surrounding Kerbs’ wells was fully appropriated and whether Kerbs’ historical consumptive use of ground water had increased as a result of increasing the amount of acres irrigated.
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injury has resulted to other appropriators in the basin from the increase in the acreage irrigated by Kerbs’ wells.
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