On March 17, Sixth Judicial District Court Judge Justin Fay signed an order vacating the upcoming trial for the lawsuit between the San Juan Water Conservancy District (SJWCD) and the Pagosa Area Water and Sanitation District (PAWSD) over PAWSD’s efforts to sell the Running Iron Ranch.
The lawsuit was initiated by PAWSD in December 2024 in an attempt to obtain a ruling that the three-way agreement between the SJWCD, PAWSD and the Colorado Water Conservation Board (CWCB) would allow PAWSD to sell the Running Iron Ranch, which is jointly owned by PAWSD and the SJWCD, without the consent of the SJWCD, which plans to build a reservoir on the ranch and opposes the sale.
On March 13, the two boards held a mediation session which resulted in both approving a framework for a settlement of the lawsuit at March 16 meetings.
On March 17, PAWSD and SJWCD legal counsel submitted a joint motion to the court requesting that it vacate the upcoming trial on elements of the lawsuit, which was scheduled to occur in May.
It states that vacating the trial would save court time and reduce legal expenses for both districts since they would not have to prepare for a trial.
The motion also suggests that the SJWCD and PAWSD be required to submit a status report on the progress toward a settlement and the dismissal of the lawsuit every 63 days.
It adds that, if the lawsuit is not dismissed by the end of 2026, that the counsel for the plaintiffs should contact the court and request to schedule a case management conference.
In Fay’s order vacating the trial, he adopted the recommendations for reporting timelines and for a deadline to dismiss the case.
josh@pagosasun.com
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