North Gualala Water Co. v. State Water Resources Control Board

139 Cal. App. 4th 1577, 43 Cal. Rptr. 3d 821 (2006)

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North Gualala Water Co. v. State Water Resources Control Board

California Court of Appeals
139 Cal. App. 4th 1577, 43 Cal. Rptr. 3d 821 (2006)

Facts

The North Gualala Water Company (NGWC) (plaintiff) developed two groundwater wells in Elk Prairie by the North Fork Gualala River. It did not obtain water-right permits to develop the wells, believing that the State Water Resources Control Board (the board) (defendant) had no jurisdiction. California was unique among western states in that it handled surface water and groundwater under different management regimes based on obsolete approaches. The board’s authority extended only to surface waters. However, the scope of the board’s authority was extended by statute to include “subterranean streams flowing through known and definite channels,” distinguishable from groundwater in the soils. NGWC asserted that the wells did not tap into a subterranean stream because a relatively impermeable barrier did not bind the underground channel and the direction of the water flow did not match the course of the channel. The board countered that the wells reached a subterranean stream under its control based on a proposed four-part test: (1) the existence of a subsurface channel (2) with relatively impermeable bed and banks (3) and a known or knowable course (4) with groundwater flowing through. The board contended that the groundwater accessed by the wells met all four parameters, requiring NGWC to have a water-right permit to use the wells. NGWC sought a writ of mandate to compel the board to vacate its decision, contending that it lacked jurisdiction. The trial court upheld the board’s four-part test and analysis, and NGWC appealed.

Rule of Law

Issue

Holding and Reasoning (Margulies, J.)

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