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DAVIS v. AGUA SIERRA RESOURCES, L.L.C.

No. 1 CA-CV 06-0806.

174 P.3d 298 (2008)

Merwyn C. DAVIS, Trustee under the Merwyn C. Davis Trust dated July 27, 1981, Plaintiff/Counter-Defendant/Appellee, and Chino Grande, L.L.C., Plaintiff/Intervenor/Counter-Defendant/Appellee, v. AGUA SIERRA RESOURCES, L.L.C., a Texas limited liability company, Defendant/Counter-Claimant/Appellant, and Red Deer Cattle, Inc., a Texas corporation; CJ Partners, a Nevada limited partnership; and Seibert Family Limited Partnership, a Nevada limited partnership, Defendants/Appellants.

Court of Appeals of Arizona, Division 1, Department D.

January 15, 2008.

Attorney(s) appearing for the Case

Robert S. Lynch & Associates By Robert S. Lynch, Andrea L. Gonzales, Phoenix, Attorneys for Appellees.

Anna Young, P.L.L.C. By Anna Young, Prescott, Co-Counsel for Appellees.

Gallagher & Kennedy, P.A. By Michael R. Ross, Jennifer Ratcliff, Phoenix, Attorneys for Appellants.

Meyer Hendricks PLLC By Tom Galbraith, Phoenix, Co-Counsel for Appellants.

JOHNSEN, Judge.

¶ 1 Arizona law imposes certain restrictions on a property owner's right to extract "percolating" groundwater and transport it for use elsewhere. Our issue is whether the law permits an owner that conveys real property to another to reserve for itself whatever commercial groundwater rights might be associated with the property. We hold the law permits such a reservation and reverse the superior court's order to the contrary.

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