Cherokee Metropolitan District v. Simpson

Summary

The Colorado Supreme Court affirmed a water court’s interpretation of a stipulated decree governing the use of Cherokee Metropolitan District’s wells in and outside the Upper Black Squirrel Creek Designated Ground Water Basin. The court held that the decree permitted out-of-basin use of Wells No. 1-8 only for short-term emergency and backup purposes related to the water supply commitments existing when the stipulation was entered, not as a permanent primary supply for later growth. The court also rejected Cherokee’s promissory estoppel argument against the State Engineer’s office.

Holdings

1. The stipulated decree permits Wells No. 1-8 to supply water outside the Designated Basin only for short-term emergency and backup purposes when the Sweetwater Wells cannot produce sufficient water to meet the out-of-basin commitments existing when the 1999 stipulation was entered. It does not permit Wells No. 1-8 to become a permanent or primary source of out-of-basin supply for later-developed demand.
2. Cherokee failed to establish promissory estoppel because the record did not show a promise by the State Engineer's office on which Cherokee reasonably and detrimentally relied. Administrative statements or consultation materials did not alter the meaning of the stipulated decree or bind the Management District.

Questions Presented

1. Whether the stipulated decree permitted Cherokee to use Wells No. 1-8 to supply water outside the Designated Basin whenever the Sweetwater Wells were insufficient to meet Cherokee's current or future commitments.
2. Whether the State Engineer was estopped from asserting the narrower interpretation of the stipulated decree because of statements or actions by State Engineer personnel.

Disposition

affirmed