Justia Nevada Supreme Court Opinion Summaries

In this case, the Supreme Court of the State of Nevada considered whether the Nevada State Engineer had the authority to combine multiple existing hydrographic basins into one "superbasin" for the purposes of water administration and management based on a shared source of water. The State Engineer had combined seven basins into one superbasin, the Lower White River Flow System (LWRFS), after determining that the waters of these basins were interconnected such that withdrawals from one basin affected the amount of water in the other basins. The State Engineer also found that the previously granted appropriations of water exceeded the rate of recharge in the LWRFS. Various entities who owned water rights throughout the new superbasin challenged the State Engineer's decision, claiming that he lacked the authority to manage surface waters and groundwater jointly and that his decision violated their due process rights.The Supreme Court of the State of Nevada held that the State Engineer indeed had the authority to manage surface waters and groundwater conjunctively and to jointly administer multiple basins. The court also found that the State Engineer did not violate the rights holders' due process rights because they received notice and had an opportunity to be heard. The court reversed the lower court's decision that had granted the rights holders' petitions for judicial review and remanded the matter back to the lower court for further proceedings to determine whether substantial evidence supported the State Engineer's factual determinations. View "Sullivan v. Lincoln County Water District" on Justia Law

The Supreme Court reversed the order of the district court granting Respondents' consolidated petitions for judicial review and reinstating the decision of the State Engineer approving the Diamond Valley Groundwater Management Plan (GMP), holding that the State Engineer's decision to approve the GMP was not erroneous.Once an over-appropriated basin is designated a critical management area (CMA) water permit and certificate holders may petition the State Engineer to approve a GMP that sets forth the necessary steps for removal of the basin's designation as a CMA. After Diamond Valley was designated a CMA the State Engineer approved the Diamond Valley GMP, which deviated somewhat from the doctrine of appropriation. The district court invalidated the order. The Supreme Court reversed, holding (1) the GMP complied with Nev. Rev. Stat. 534.037 and 534.110(7); and (2) therefore, the GMP was valid. View "Diamond Natural Resources Protection & Conservation Ass'n v. Diamond Valley Ranch, LLC" on Justia Law

The Supreme Court reversed the decision of the district court invalidating Order No. 1293A, which prohibited the driving of new domestic wells in the Pahrump Artesian Basin unless the applicant identified and relinquished 2.0 acre-feet annually from an alternate source (the 2.0 afa requirement), as unlawful, holding that Nevada law authorized the order's 2.0 afa requirement under the circumstances.In invalidating the order, the district court concluded (1) the State Engineer violated due process by issuing the order without first providing notice and a public hearing; (2) the State Engineer lacked authority to issue the 2.0 afa requirement; and (3) substantial evidence did not support the order. The Supreme Court reversed, holding (1) the State Engineer was not required to hold a hearing or develop a more robust record; (2) the State Engineer was not required to provide notice and a hearing regarding the 2.0 afa requirement under the circumstances; and (3) the State Engineer's decision was supported by substantial record evidence. View "Wilson, P.E. v. Pahrump Fair Water, LLC" on Justia Law

The Supreme Court answered in the negative a question certified to it by the Ninth Circuit Court of Appeals, holding that the public trust doctrine does not permit the reallocation of rights already adjudicated and settled under the doctrine of prior appropriation.This litigation stemmed from Mineral County's intervention in longstanding litigation over water rights in the Walker River Basin to protect and restore Walker Lake. Here, the Supreme Court was asked for the first time to consider whether the public trust doctrine permits reallocating water rights previously settled under Nevada's prior appropriation doctrine. The Supreme Court held that the doctrine, as implemented through the state's water statutes, does not permit reallocating water rights already adjudicated and settled under the doctrine of prior appropriation. View "Mineral County v. Lyon County" on Justia Law

The Supreme Court reversed the decision of the State Engineer granting Intermountain Water Supply Ltd., which held water rights permits to transmit water to Lemmon Valley for municipal use, an extension of time in which to apply the water to beneficial use, holding that the anti-speculation doctrine applies to requests for extensions of time and that Intermountain failed to show reasonable diligence to apply the water to beneficial use.In its extension request, Intermountain submitted an affidavit claiming that it had an option agreement with two unidentified "worldwide engineering and construction firms." The Supreme Court held (1) a generic option contract does not save an applicant from the anti-speculation doctrine, and the State Engineer abused his discretion in determining that Intermountain's averred option agreements satisfied the anti-speculation doctrine; and (2) there was insufficient evidence in the record to demonstrate reasonable diligence under Nev. Rev. Stat. 533.380(3)-(4) and Desert Irrigation, Ltd. v. State, 944 P.2d 835, 841 (Nev. 1997). View "Sierra Pacific Industries v. Wilson" on Justia Law

Due process requires junior water rights holders in the Diamond Valley Hydrographic Basin No. 153 (Diamond Valley) be given notice and an opportunity to participate in the district court’s consideration of the request of a vested, senior water rights holder to order the State Engineer to curtail junior water rights in Diamond Valley.Because water in Diamond Valley has been over-appropriated and pumped at a rate exceeding its perennial yield for more than four decades, groundwater levels in southern Diamond Valley have fallen over 100 feet. Sadler Ranch, which claims to be a vested, senior water rights holder in Diamond Valley, petitioned the district court to order the State Engineer to initiate curtailment proceedings regarding junior water rights in Diamond Valley. The Supreme Court granted this writ petition, holding that an upcoming show cause hearing may result in a court order to begin curtailment proceedings, resulting in possible deprivation of property rights. Therefore, due process required junior water rights holders in Diamond Valley to be given notice and an opportunity to be heard before the district court conducted the hearing. View "Eureka County v. Seventh Judicial District Court" on Justia Law

The Supreme Court affirmed the decision of the district court overruling the State Engineer’s decision denying Rodney St. Clair’s application for a permit to temporarily change the point of diversion of the underground water source on property he purchased in 2013 from an abandoned well to another location on his property. The State Engineer found the prior owner of the property had established a right to appropriate the underground water but that a subsequent owner abandoned that right through years of nonuse. In overruling the State Engineer’s decision, the district court found insufficient evidence that any owner of the property intended to abandon the property’s water right. The Supreme Court affirmed, holding (1) an extended period of nonuse of water does not alone establish clear and convincing evidence that a property owner intended to abandon a water right connected to the property; and (2) in this case, there was no additional evidence indicating an intent to abandon, and therefore, the State Engineer’s finding of abandonment was unsupported by substantial evidence. View "King v. St. Clair" on Justia Law

The parties in this case disputed who had rights to certain spring waters. The state engineer adjudicated the parties’ rights and entered a final order of determination. Both parties filed exceptions to the state engineer’s final order. Before the matter was heard before the district court, Respondent filed a motion to supplement his earlier filed exceptions to include property access claims arising from its water rights. The district court granted Respondent’s request. The district court then affirmed the state engineer’s order of determination, as modified. The Supreme Court affirmed, holding (1) the district court properly considered the notice of supplemental exceptions in affirming the state engineer’s order of determination, as modified, including Respondent’s supplemental request that the district court’s judgment confirm Respondent’s right of access to certain property to repair and maintain the facilities necessary to convey water; and (2) the district court’s findings were based on substantial evidence. View "Jackson v. Groenendyke" on Justia Law

Nev. Rev. Stat. 533.3705(1) allows the State Engineer to subject newly approved water applications to an incremental use process. The statute was enacted in 2007. In 1989, Southern Nevada Water Authority (SNWA) filed various water permit applications with the State Engineer. Many entities, including the Corporation of the Presiding Bishop of the Church of Jesus Christ of Latter-Day Saints (CPB), opposed SNWA’s applications. Ultimately, in 2012, the State Engineer denied some of SNWA’s applications and granted others. The State Engineer subjected SNWA’s approved applications to three stages of incremental development and monitoring. CPB and others petitioned the district court for review. The district court rejected CPB’s argument that the State Engineer gave section 533.3705(1) an improper retroactive effect but reversed and remanded the State Engineer’s ruling on other grounds. CPB subsequently petitioned the Supreme Court for an extraordinary writ barring the State Engineer from applying section 533.3705(1) to SNWA’s applications. The Supreme Court denied the petition, holding that the State Engineer applied section 533.3705(1) prospectively to applications approved in 2012, and therefore, the State Engineer did not apply section 533.3705(1) retroactively in this case. View "Corp. of the Presiding Bishop of the Church of Jesus Christ of Latter-Day Saints v. Seventh Judicial Dist. Court" on Justia Law

The State Water Engineer granted the applications of Kobeh Valley Ranch, LLC to change the point of diversion, place of use, and manner of use of other of its existing rights in Eureka County. Eureka County and other appellants holding existing senior rights in Kobeh Valley petitioned the district court for judicial review of the State Engineer’s decision. The district court denied the petition. The Supreme Court reversed and remanded, holding that the State Engineer’s decision to grant KVR’s applications, when the result of the appropriations would conflict with existing rights, and based upon unsupported findings that mitigation would be sufficient to rectify the conflict, violated the Legislature’s directive that the State Engineer must deny use or change applications when the use or change would conflict with existing rights. View "Eureka County v. State Engineer" on Justia Law