Wyoming ranchers contest water exchange for oil refinery

Sinclair Refinery, Wyoming
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  • The State Engineer granted HF Sinclair’s exchange petition.
  • Local landowners claim the approval sidesteps Wyoming water laws.
  • The Board of Control is now reviewing the appeal.

December 31, 2024 — HF Sinclair Parco Refining LLC submitted an exchange petition in May 2023 to continue diverting water for its refinery in Sinclair, Wyoming, even when water supplies are allocated according to priority calls on the North Platte River. According to a press statement released by the Wyoming State Engineer’s Office on October 14, 2024Opens in a new tab., HF Sinclair would “stop all irrigation diversion and beneficial use therefrom under water rights attached to the Encampment River Ranch” in Carbon County as a way to provide replacement water. The petition was amended in February 2024, and a public meeting took place in Saratoga, Wyoming, on June 4, 2024, to gather public comments before the final approval.

Appeal to the Board of Control.

After the exchange was approved, ranchers and other landowners in Carbon County filed an appealOpens in a new tab. with the Wyoming Board of Control.  They argue that HF Sinclair’s plan is not a true “exchange” under Wyoming law. Instead, they claim it amounts to a “change of use” from irrigation to refinery operations. They also cite timing issues, noting that HF Sinclair plans to take water between February and April while providing replacement water during the irrigation season from May to September. The appellants say this does not meet the simultaneous trade requirement under Wyoming’s water exchange rules.

Those bringing the appeal are also worried about potential conflicts with the Nebraska v. Wyoming Opens in a new tab.decree, which governs water allocations in the region. They question whether HF Sinclair has provided enough clarity on how it will deliver replacement water without causing harm to other water users.

Local Concerns and Quotes.

Some community members worry the decision could shift the way Wyoming manages its water rights. “If the appeal is unsuccessful, the HF Sinclair water agreement could set a troubling precedent,” said Jack Berger, a local rancher and one of the appellants, in comments published by The FencepostOpens in a new tab.. “Allowing the exchange to proceed could alter Wyoming’s unique water rights system, where water is owned collectively by the people of the state. We’re concerned this decision could lead to treating water as a commodity, as has happened in neighboring Colorado, instead of as a shared and managed resource.”

“While we acknowledge the economic importance of HF Sinclair’s refinery to Carbon County, the broader public interest must take precedence,” said Jon Nelson, a Saratoga resident, also quoted in The FencepostOpens in a new tab.. “The needs of ranchers, wildlife and downstream communities that rely on the North Platte River must be given equal consideration. It’s evident the state engineer favored a corporation without sufficiently protecting the interests of other water users.”

Role of the Board of Control.

The Wyoming Board of ControlOpens in a new tab., a quasi-judicial body composed of the State Engineer and four Division Superintendents, is responsible for overseeing adjudications, amendments, and administration of water rights. The Board meets quarterly to address various petitions and proofs, including changes to existing water rights. As the appeal moves forward, the Board will consider the arguments raised by local ranchers and landowners alongside the state’s statutory framework governing water usage.

Carbon County residents and ranchers await the Board’s decision, hoping for clarity on whether the approval granted to HF Sinclair adheres to established Wyoming water law and the broader principles of resource management in the North Platte River Basin.

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Image:

Sinclair Refinery, WyomingOpens in a new tab..  By Charles Willgren, 2008.  Licensed under the Creative Commons Attribution 2.0 Generic license.

Deborah

Since 1995, Deborah has owned and operated LegalTech LLC with a focus on water rights. Before moving to Arizona in 1986, she worked as a quality control analyst for Honeywell and in commercial real estate, both in Texas. She learned about Arizona's water rights from the late and great attorney Michael Brophy of Ryley, Carlock & Applewhite. Her side interests are writing (and reading), Wordpress programming and much more.

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