Kelly Ranch v. Southeastern Colorado Water Conservancy District

Kelly Ranch, a partnership composed of seven individuals, filed an application in the Water Court of Water Division No. 2 for approval of a "Plan of Augmentation Including Exchange and for Changes in Water Right Required for Operation of the Plan." The stated purpose of the plan is to provide a water supply through wells for the residents of three proposed subdivisions in the Buena Vista area. Kelly Ranch does not own any of the land in these subdivisions. The Southeastern Colorado Water Conservancy District (the District) filed an objection alleging that granting the application would result in injury to the Districts water rights; and, further, that the plan would not produce water adequate to reimburse the Arkansas River system for the depletions caused by the subdivision use. The State Engineer approved the plan with slight modification, under Senate Bill No. 7, Colo. Sess. Laws 1974, ch. 111, 148-21-23 at 440, finding that the plan would not injure the owners of vested or conditionally decreed water rights. The water court dismissed the application, finding that it was not properly a plan for augmentation. Kelly Ranch appealed. We reverse.