Water districts reach framework to settle lawsuit

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At March 16 meetings, the boards of directors for the San Juan Water Conservancy District (SJWCD) and Pagosa Area Water and Sanitation District (PAWSD) both approved a framework for the resolution of the ongoing litigation between the districts concerning the Running Iron Ranch.

The litigation, initiated by PAWSD, focuses on whether or not PAWSD has the right to sell the Running Iron Ranch, which is jointly owned by the two districts and where the SJWCD plans to build a reservoir, over the objections of the SJWCD.

The approval of settlement terms followed a mediation session on March 13 between the SJWCD board and its legal counsel, and PAWSD board members Glenn Walsh and Alex Boehmer, accompanied by PAWSD staff and legal counsel.

The mediation was facilitated by Gene Dackonish of the firm Dackonish and Blake, located in Grand Junction.

At the PAWSD meeting, following an executive session, Boehmer read a statement explaining that the boards agreed on an outline of terms during the mediation session and that the PAWSD board discussed these terms during its executive session.

He noted that these terms are not final and are subject to approval by the Colorado Water Conservation Board, which is a party to the management agreement for the ranch the dispute focuses on.

Boehmer added that, due to the terms not being final, the boards agreed to not disclose them at this time.

“We’re looking forward to cooperating between all the entities to reach a final settlement, at which point the terms will be outlined and then agreed upon after being discussed at an open meeting,” he said.

The board then unanimously voted to approve the framework.

At the SJWCD meeting, the board also entered executive session to discuss the potential framework.

After exiting the session, SJWCD board president Candace Jones outlined that the boards met for mediation and were able to reach agreement on a framework for ending the litigation.

She stated that the framework is a “step forward” and would lead to a final resolution of the lawsuit if implemented successfully.

Jones stated that the SJWCD would consider a motion to proceed with negotiations along the lines of the framework and that the SJWCD would also participate in keeping the terms of the framework confidential until a final agreement is reached.

“Our goal and we believe the goal of the PAWSD board members is to reach a mutually beneficial resolution for this long running suit over the Running Iron Ranch,” Jones said. “We look forward to cooperation between the boards to reach a final … settlement agreement.”

She added that the board would consider the settlement agreement in a public meeting once it is finalized.

The board then unanimously voted to approve the framework.