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

No. CV-08-0163-PR.

203 P.3d 506 (2009)

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.

Supreme Court of Arizona, En Banc.

March 19, 2009.


Attorney(s) appearing for the Case

Robert S. Lynch & Associates By Robert S. Lynch, Phoenix and Anna Young PLLC By Anna C. Young, Prescott, Attorneys for Merwyn C. Davis.

Lewis and Roca LLP By Dale Danneman, Michael F. McNulty, Robert G. Schaffer, Phoenix, Attorneys for Chino Grande, L.L.C.

Gallagher & Kennedy, P.A. By Michael R. Ross, Cober C. Plucker and Tom Galbraith Attorney at Law By Tom Galbraith, Phoenix, Attorneys for Agua Sierra Resources, L.L.C., Red Deer Cattle, Inc., CJ Partners, and Seibert Family Limited Partnership.

Maguire & Pearce, PLLC By Michael J. Pearce, Rita P. Maguire, Phoenix, Attorneys for Amicus Curiae Town of Prescott Valley.

Arizona Department Of Water Resources By W. Patrick Schiffer, Chief Counsel, Kenneth C. Slowinski, Scott M. Deeny, Phoenix, Attorneys for Amicus Curiae Arizona Department of Water Resources.

Ryley Carlock & Applewhite By Cynthia M. Chandley, L. William Staudenmaier, Jenny J. Pelton, Phoenix, Attorneys for Amici Curiae Freeport-McMoRan Copper and Gold, Inc., Roosevelt Water Conservation District, and the Town of Chino Valley.

Salmon, Lewis & Weldon, P.L.C. By M. Byron Lewis, John B. Weldon, Jr., Mark A. McGinnis, Phoenix, Attorneys for Amicus Curiae Salt River Project Agricultural Improvement & Power District.


OPINION

BALES, Justice.

¶ 1 Arizona law allows landowners, outside of Active Management Areas, to make reasonable and beneficial use of groundwater underlying their land. This case involves deeds that purported to reserve to the grantor, and to sever from the surface estate, rights to the potential future use of groundwater. Because a landowner has no real property interest in the future use of groundwater, we hold that the attempted reservation is...

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