‘Landmark’ Water Ruling Favors Environment Over Developers

Article Summary –

A Broadwater County judge ruled in favor of a group of landowners and water rights holders who opposed a subdivision in an area already facing water supply and quality issues. The judge criticized the Broadwater County Commission and the Department of Natural Resources for approving the Horse Creek Hills subdivision, citing a “deficient” environmental assessment and “hostility” towards a 2009 Montana Supreme Court decision related to groundwater development. The judge’s decision has been termed a “landmark ruling”, establishing local governments’ duties to consider citizen concerns in relation to new subdivisions.


A Broadwater County judge backs a coalition of landowners and water rights holders against a subdivision proposal

Small landowners and water rights holders in Broadwater County, Montana got a win this week when a judge ruled against a proposed subdivision. The judge cited concerns with water supply and quality issues that have long plagued the area.

Judge Michael McMahon of the Broadwater County District Court delivered an 85-page order criticizing the Broadwater County Commission’s authorization of the Horse Creek Hills subdivision near Canyon Ferry. McMahon called out an “abjectly deficient” environmental assessment that overlooked the potential impacts on water quantity and quality, public safety, and wildlife.

In the same order, McMahon also criticized the Department of Natural Resources (DNRC) for misinterpreting a 2009 Montana Supreme Court ruling. The ruling restricted a 51-year-old loophole which allowed landowners to develop groundwater without proving non-adverse effects on existing water rights. McMahon accused the DNRC of “torturously misreading its own rules.”

A DNRC spokesperson said the agency is currently reviewing McMahon’s ruling and will provide updated guidelines to its employees after further study.

Broadwater County Attorney Cory Swanson and the Horse Creek Hills property owner, 71 Ranch, are also reviewing McMahon’s ruling. If the subdivision goes through as planned, it will include 41 lots across a 442-acre plot.

Vicki Sullivan, a Broadwater County resident opposing the development, accused the county of a “deeply flawed subdivision approval process” and slammed DNRC’s approval of multiple exempt wells. Guy Alsentzer, the attorney representing the plaintiffs, called the judge’s decision a “landmark ruling” that clarifies local government’s obligation to consider citizen concerns in new subdivision approvals.

Exempt wells are frequently targeted for legislative changes. In 2023, Montana lawmaker Rep. Casey Knudsen introduced a bill seeking to expand the exempt well loophole. However, the proposal faced opposition from agricultural producers and conservationists over concerns about its impact on senior water rights and aquatic ecosystems. Since then, the DNRC has been meeting regularly with stakeholders to discuss these issues and to develop proposals for the 2025 legislative session.


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