Justia Montana Supreme Court Opinion Summaries

The Supreme Court reversed in part and affirmed in part the order of the Montana Water Court reversing the order of the Montana Department of Natural Resources and Conservation (DNRC) denying Daniel and Sandra DeBuff's amended application for a beneficial water use permit, holding that the application satisfied the statutory criteria for a preliminary determination and may move forward to face objections.Specifically, the Supreme Court held (1) DNRC did not improperly relied upon either a geologic map or a 1987 final order in making its determination; (2) the Water Court erred by holding that DNRC's determination that the source aquifer was not discontinuous was clearly erroneous; (3) the Water Court correctly determined that DNRC's failure to consider evapotranspiration evidence provided by DeBuff was arbitrary and capricious; and (4) DNRC's determination that the water was not legally available and would have an adverse effect on senior appropriators was arbitrary and capricious. View "Debuff v. Montana Department of Natural Resources & Conservation" on Justia Law

The Supreme Court reversed the judgment of the district court reversing a Department of Natural Resources and Conservation (DNRC) contested case decision granting RC Resources, Inc. (RCR) a beneficial water use permit under pertinent provisions of the Montana Water Use Act (MWUA) - Mont. Code Ann. 85-2-301(1), -302(1), and -311 - holding that the district court erred.The permit at issue would have authorized RCR to annually appropriate 857 acre-feet of groundwater that will flow into the underground adits and works of the proposed Rock Creek Mine. Based on its construction of Mont. Code Ann. 85-2-311(1)(a)(ii)(B), the district court reversed the issuance of the beneficial use permit. The Supreme Court reversed, holding (1) DNRC correctly concluded that, as used in section 85-2-311(1)(a)(ii), "legal demands" does not include consideration of whether the subject use complies with applicable Montana Water Quality Act nondegradation standards; and (2) section 85-2-311(2) does not violate the right to a clean and healthful environment as applied to the objectors' MWQA nondegradation objections to the proposed MWUA beneficial use permit. View "Clark Fork Coalition v. Montana Department of Natural Resources & Conservation" on Justia Law

The Supreme Court affirmed the order of the Montana Water Court establishing the point of diversion for two claims owned by Carolyn Mack and Chriss Mack, holding that the Water Court did not err or abuse its discretion.Specifically, the Supreme Court held that the Water Court (1) did not err when it concluded that it had jurisdiction over the Macks' amended statement of claim; (2) did not abuse its discretion in concluding that the Macks did not make any judicial admissions in previous litigation; (3) did not err in assigning the burden of proof to Appellants - Glenda, Jimmy, John, and Rowdy Anderson; and (4) did not abuse its discretion in excluding the Andersons' expert witness. Lastly, the Supreme Court held that the Water Court's findings of fact were not clearly erroneous and that there was substantial evidence supporting the Water Court's conclusion establishing the point of diversion for the Macks' claims. View "Mack v. Anderson" on Justia Law

The Supreme Court affirmed in part and reversed in part the district court's ruling granting summary judgment to Park County Environmental Council and Greater Yellowstone Coalition and an order of vacatur of the challenged exploration license in this case, holding that the district court erred in part.Lucky Minerals, Inc. submitted an exploration application seeking authorization to conduct exploration activities within its privately-owned patented mine claim block. The Montana Department of Environmental Quality granted the exploration license. The district court voided Lucky's exploration license, concluding that the 2011 Montana Environmental Policy Act amendments were unconstitutional. The Supreme Court affirmed in part and reversed in part, holding that the district court did not err by vacating the exploration license and finding Mont. Code Ann. 75-1-206(6)(c) and (d) in violation of the Legislature's constitutional mandate to provide remedies adequate to prevent proscribed environmental harms under Mont. Const. Art. II, 3 and IX, 1. View "Park County Environmental Council v. Montana Department of Environmental Quality" on Justia Law

The Supreme Court affirmed the district court's vacatur of the Montana Department of Environmental Quality's (DEQ) 2017 issuance of Montana Pollution Discharge Elimination System (MPDES) permit to Montanore Minerals Corp. (MMC), holding that the DEQ unlawfully relied upon a 1992 order of the Board of Health and Environmental Sciences (BHES) when issuing the 2017 permit.Specifically, the Supreme Court held (1) the district court correctly concluded that the 1992 BHES order expired prior to DEQ issuing the 2017 permit; and (2) because DEQ relied upon an expired BHES order when it issued the 2017 permit, the permit was not validly issued and must be vacated. View "Montana Environmental Information Center v. Montana Department of Environmental Quality" on Justia Law

The Supreme Court affirmed the district court's order denying the petition filed by the City of Bozeman seeking judicial review of a final order of the Department of Natural Resources (DNRC) granting Utility Solutions, LLC's application to change a water right, holding that the court did not err in determining that the City's water facility plan did not qualify as an interest protectable from adverse effects under Mont. Code Ann. 85-2-402(2)(a).Utility Solutions filed its change application for authorization to change the place of use of its water use permit. The City filed an objection, arguing that the application would adversely affect the City's possessory interest in the area that was established by the City's adoption of a growth policy, as expanded geographically by an updated water facility plan. The DNRC hearing examiner granted the change application, concluding that although the change application resulted in a geographic overlap of the place of use with the City's water facility plan, the overlap did not result in an adverse effect within the meaning of section 85-2-402(2)(a). The district court affirmed. The Supreme Court affirmed, holding that the district court did not err in affirming the DNRC's determination that Utility Solutions carried its burden to prove the City did not have an interest protectable from adverse effects. View "City of Bozeman v. Montana Department of Natural Resources & Conservation" on Justia Law

In this case involving six water right claims on Big Warm Creek the Supreme Court affirmed the Water Court's final order, holding that the Water Court did not err or abuse its discretion.Specifically, the Supreme Court held that the Water Court (1) did not err by finding no ambiguity in the language of the deeds conveying portions of the Phillips Ranch, and the appurtenant water rights, from David Drum to Lloyd Knudsen, Wayne Norman, and Springdale Colony, Inc.; (2) did not err by declining to resort to extrinsic evidence of the parties’ intent; (3) did not err by apportioning the water pro-rata based on the parties’ historical use; and (4) did not abuse its discretion by denying Little Big Warm Ranch’s post-judgment motion for relief from the court’s final order. View "Little Big Warm Ranch, LLC v. Doll" on Justia Law

The Supreme Court reversed the district court's entry of summary judgment in favor of Elk Grove Development Company (Elk Grove) and the Elk Grove Homeowners Association (HOA) and entry of an injunction enjoining the Four Corners County Water and Sewer District from using the Elk Grove Subdivision's water "sourced from any of the wells located within the Subdivision and from the Water Right for use upon property outside the Subdivision, holding that the district court erred in determining that the Subdivision Covenant was a reasonable restraint upon the alienation of a water right.On appeal, the Water District argued that the Covenant was an unreasonable restraint on alienation because it usurped the State's jurisdiction over its water and violated the state water law requirement that waters be put to beneficial use. The Supreme Court reversed, holding that the district court erred to the extent that it held the Covenant was a reasonable restraint on the alienation of the Subdivision's water and Water Right and so enjoined the Water District. View "Elk Grove Development Co. v. Four Corners County Water & Sewer District" on Justia Law

The Supreme Court reversed the judgment of the district court voiding a permit issued by the Department of Natural Resources and Conservation (DNRC) allowing the Montana Artesian Water Company (MAWC) to appropriate water, holding that while the DNRC issued its preliminary determination granting MAWC the water use permit based on incomplete data, because the statutory deadline had passed, the application was deemed correct and complete as a matter of law, and DNRC could not require the missing information.DNRC failed to identify defects in the application before the statutory deadline. The district court concluded that DNRC failed to comply with its own rules to determine whether the application was correct and complete and voided the permit without addressing other issues raised on judicial review. The Supreme Court reversed and remanded the case for further proceedings, holding (1) with or without the missing information, MAWC's application became correct and complete as a matter of law after the statutory deadline had passed; and (2) Mont. Code Ann. 85-2-302(5) forecloses an argument regarding compliance with application requirements the agency imposed by rule. View "Flathead Lakers v. Montana Department of Natural Resources & Conservation" on Justia Law

The Supreme Court affirmed in part and reversed in part the findings of the Water Court in adjudicating two of Twin Creeks's water rights claims, holding that the Water court did not err in finding that Twin Creeks abandoned one claim by nonuse but misapprehended the effect of testimony regarding the second claim's historical use.Five Twin Creeks claims were at issue before the Water Court. After a hearing, the Water Court issued a closing order ordering changes to four of the claims and removing the issue remarks. At issue on appeal were the statements of claim 40B109102-00 (the 102 claim) and 40B109104-00 (the 104 claim). The Supreme Court held (1) the Water Court did not err in finding that the 102 claim was abandoned by nonuse because the intent to abandon occurred concurrently with the nonuse; and (2) the Water Court erred finding that Petrolia Irrigation District did not overcome the presumption that the 104 claim was correct as filed. View "Twin Creeks Farm & Ranch v. Petrolia Irrigation District" on Justia Law