Montana Supreme Court Rules in Favor of State in Water Dispute

Article Summary –

The Montana Supreme Court has confirmed the state’s Department of Natural Resources and Conservation retains an ownership interest in a water right used to irrigate both private and public land, following a dispute initiated in 2019. The ruling affirms that the state must hold some ownership over the water to ensure the largest possible advantage for state trust land beneficiaries, including public schools. Critics argue that the ruling undermines private property rights and could discourage water rights holders from using their rights on state-owned land due to fear of partial state ownership claims.


The Montana Supreme Court’s Decision on Water Rights

The Montana Supreme Court has ruled in favor of the Department of Natural Resources and Conservation (DNRC) in a controversy surrounding a 64-year-old water right employed for both private and public land irrigation. The dispute emerged in 2019 when the Montana Land Board claimed ownership of the water right portion used to irrigate state land. The Schutters, who utilize the water for their farming activities, protested the claim leading to a court case resulting in a unanimous opinion in favor of the state.

The justices upheld the Water Court’s decision, arguing the state must exercise some ownership over the water rights to secure the most benefit for state trust land beneficiaries, including Montana’s public schools. The use of the Schutters’ well water on state trust land is significant as it signifies a “beneficial use,” a necessary condition for state water right authorization.

The court concluded that water rights and the state’s property rights are interconnected, especially in a semi-arid zone like Montana where “control of water means control of the land itself.”

Reactions to the Ruling

Carl Devries, a board member of the Senior Ag Water Rights Alliance, criticized the state’s stance as bureaucratic overreach in an op-ed. He warned that the ruling could erode private property rights and create negative long-term effects. He believes the decision now forces water rights holders to choose between protecting their rights or fully utilizing state-leased land.

Devries called for increased oversight by the Land Board over the DNRC, suggesting that the board address the issue in their May 20 meeting. The DNRC has yet to comment on the matter.

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