Arizona Department of Water Resources v. McClennen (Mohave County)

Summary

The Arizona Supreme Court held that A.R.S. § 45-172 identifies the exclusive grounds on which the Arizona Department of Water Resources may deny a properly filed application to sever and transfer a surface-water right. The Court further held that an “interested person” entitled to object under the statute must allege an interest protected by § 45-172, and that Mohave County did not qualify. The Court vacated the superior court’s judgment, affirmed ADWR’s final decision, and remanded for proceedings concerning attorney fees.

Holdings

1. A.R.S. § 45-172 identifies the limitations and conditions governing ADWR's review and the only grounds on which ADWR may deny a properly filed application to sever and transfer a water right. ADWR may not deny such an application based on additional, generally stated public-interest or tax-burden concerns not authorized by that statute.
2. An "interested person" entitled to object to a proposed severance and transfer is a person who alleges an interest protected by § 45-172 and that would be affected by the proposed transfer. Mohave County did not qualify because it identified no such protected interest.

Questions Presented

1. Whether A.R.S. § 45-172 identifies the exclusive grounds on which ADWR may deny a properly filed application to sever and transfer a water right.
2. Whether the phrase "any interested person" in A.R.S. § 45-172(A)(7) includes a county that alleges generalized effects on local water supplies, tax burdens, or the public interest but does not allege an interest protected by § 45-172.
3. Whether ADWR acted contrary to law, arbitrarily or capriciously, or abused its discretion by rejecting Mohave County's objections.

Disposition

vacated