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Facts

  • Augustin Plains Ranch, LLC (Applicant) filed an application in 2007 to appropriate groundwater from the San Agustin Basin, which was amended in 2008. The State Engineer published notice of the application, receiving over 900 protests. A hearing officer recommended denial of the application "without prejudice to filing of subsequent applications," which the State Engineer adopted. The district court affirmed this decision, noting the application's failure to specify beneficial use and place of use of water. In 2014, Applicant filed a corrected application, which was again contested by multiple parties and ultimately denied by the State Engineer. The district court dismissed the 2014 Application with prejudice, a decision Applicant appealed.

Procedural History

  • District Court: Affirmed the State Engineer's order denying the 2007 Application and allowed Applicant to submit a corrected application.
  • District Court: Dismissed the 2014 Application with prejudice.

Parties' Submissions

  • Applicant: Argued entitlement to an evidentiary hearing, improper application of collateral estoppel, facial validity and administrative completeness of the application, and that the district court erred in dismissing the application with prejudice (paras 7-8, 10-11).
  • State Engineer: Argued the 2014 Application, though not barred by collateral estoppel, violates the constitutional principle of beneficial use, and supported the denial of the 2014 Application on that basis (para 7).
  • Community Protestants and Catron County: Argued the 2014 Application should be denied based on collateral estoppel, facial inadequacy, and speculative nature of the application (para 5).

Legal Issues

  • Whether the Applicant was entitled to an evidentiary hearing (para 8).
  • Whether the district court improperly applied collateral estoppel (para 7).
  • Whether the 2014 Application was facially valid and administratively complete (N/A).
  • Whether the district court erred in dismissing the application with prejudice (para 7).

Disposition

  • The Court of Appeals reversed the district court's decision regarding collateral estoppel and remanded for a determination of Applicant’s appeal on the merits (para 40).

Reasons

  • BOGARDUS, Judge: Concluded that the district court erred in applying collateral estoppel and that the Applicant was not entitled to an evidentiary hearing. The Court found that the district court exceeded its jurisdiction by dismissing the 2014 Application with prejudice and remanded for a de novo review of the merits of the hearing officer’s denial of the 2014 Application. The Court emphasized deference to the State Engineer's administrative process and the policy allowing applications for water right permits to be corrected after submission (paras 8-40).
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