Davis v. Agua Sierra Resources, L.L.C.

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.

FACTUAL AND PROCEDURAL HISTORY

¶ 2 The reservation we review encompasses commercial water rights associated with a portion of the CF Ranch (“CF Ranch”),…