DDW-2024-009210

SPENCER J. COX
Governo r
DEIDRE M. HENDERS ON
Lieutenant Governor
State of Utah
DEPARTMENT OF NATURAL RESOURCES
Division of Water Rights
JOEL FERRY
Executive Director
TERESA WILHELMSEN
State Engineer/Division Director
ORDER OF THE STATE ENGINEER
For Permanent Change Application Number 73-2820 (a51612)
JUL 2 6 2024
Dept of Environmental Quality
DlviSIOn o( OrtnkingWatl:r
Permanent Change Application Number 73-2820 (a51612) in the name of Three Peaks , LLC was
filed on April 23, 2024, to change the points of diversion, places of use , and uses of 742.0 acre-
feet of water as evidenced by Water Right Numbers 73-2820, 73-2821 , 73-2822, 73-3005,
73-3006, 73-3326 , and 73-3991. Heretofore , the water has been diverted from the following points
located: (1) Well -North 110 feet and East 50 feet from the SW Comer of Section 16, T35S,
RllW, SLB&M (existing 8-inch well, 240 feet deep); (2) Well -North 75 feet and East 37 feet
from the SW Corner of Section 16, T35S, Rl 1 W , SLB&M (existing 8-inch well , 240 feet deep);
(3) Well -North 50 feet and West 1355 feet from the E ¼ Comer of Section 9, T35S, Rl 1 W,
SLB&M (existing 10-inch well, 500 feet deep); (4) Well -North 1678 feet and West 1096 feet
from the SE Comer of Section 11 , T34S , Rl 1 W, SLB&M ( existing 16-inch well, 250 feet deep);
(5) Well -South 2593 feet and East 284 feet from the NW Comer of Section 13, T34S, Rl 1 W,
SLB&M (existing 12-inch well, 230 feet deep); (6) Well -South 1200 feet and West 35 feet from
the NE Corner of Section 14, T34S , Rll W, SLB&M (existing 16-inch well, 220 feet deep); (7)
Well -North 670 feet and West 30 feet from the SE Comer of Section 30, T34S, RlOW, SLB&M
(existing 16-inch well, 460 feet deep); (8) Well -North 2085 feet and West 635 feet from the S¼
Corner of Section 31, T34S , RlOW, SLB&M (existing 12-inch well, 260 feet deep). The water has
been used for the sole supply irrigation of 155 .5 acres (group total of 932.643 acres) from March
15 to October 31, sole supply irrigation of 25.0 acres from April 1 to October 1, and sole supply
irrigation of 5.0 acres (group total of 26.8 acres) from April 1 to October 31. The water has been
used in portions of Sections 30 & 31, T34S , Rl0W, SLB&M; Sections 11, 12 , 13 , & 14 , T34S,
Rl 1 W, SLB&M; Section 6, T35S, RlOW , SLB&M; and Sections 9 & 16, T35S, Rl 1 W, SLB&M.
Hereafter , it is proposed to divert 742.0 acre-feet of water from points of diversion changed to:
(1) Well -South 100 feet and West 680 feet from the NE Comer of Section 22, T35S, R12W,
SLB&M (16-inch well, 100-500 feet deep); (2) Well -South 100 feet and East 250 feet from the
N ¼ Corner of Section 22, T35S , R12W , SLB&M (16-inch well, 100-500 feet deep); (3) Well -
East 100 feet from the W¼ Corner of Section 23, T35S, R12W, SLB&M (16-inch well, 100-500
feet deep); (4) Well -South 100 feet and East 1060 feet from the NW Comer of Section 23, T35S ,
R12W , SLB&M (16-inch well, 100-500 feet deep). The water is to be used for the irrigation of
130.1527 acres from March 15 to October 31; year-round, indoor , domestic sole supply
requirements of 472.0 equivalent domestic units (EDUs); and year-round commercial purposes
consisting of a commercial hotel with 107 rooms calculated at 7 5 gallons of water per day, limited
to 8.9891 acre-feet. The place of use of the water is being changed to portions of Sections 14 , 15,
22, 23, & 24, T35S, R12W , SLB&M.
Notice of the application was published in The Spectrum on May 9 and 16 , 2024. No protests were
received.
1594 West North Temple, Suite 220, PO Box 146300 , Salt Lake City, UT 84114-6300
telephone [phone] • facsimile [phone] • www.waterrights.utah.gov
11074
ORDER OF THE STATE ENGINEER
Permanent Change Application Number
73-2820 (a51612)
Page2
The historical uses of each water right underlying this application are summarized as follows:
Water Priority Irrigated Diversion Depletion Period of
Right Date Acres (acre-feet 2 (acre-feet 21 Use
73-2820 1/14/1944 17 .5 70.0 42.147 3/15-10/31
73-2821 1926 0.5 2.0 1.2042 3/15-10/31
73-2822 7/25/1963 5.0 20.0 12.042 4/1-10/31
73-3005 1860 36.0 144.0 86.7024 3/15-10/31
73-3006 7/25/1963 17.5 70.0 42 .147 3/15-10/31
73-3326 3/5/1951 25.0 100.0 60.21 4/1-10/1
73-3991 1/8/1965 84.0 336.0 202.3056 3/15-10/31
Totals: 185.5 742.0 446.7582
The hereafter annual water diversion and depletion requirements for the proposed beneficial uses
are equal to and less than the heretofore values, respectively.
There appears to be an error in the calculated diversion limitation for commercial purposes in the
proposed hotel. The value of 75 gallons per day per room is an outdated value. R309-510-7.(2)
Indoor Water Use, Table 510-1 Source Demand for Indoor Use currently sets the demand for hotels
at 150 gallons per day per unit. This application can still include 8.9891 acre-feet of water to be
used for commercial purposes including a hotel and amenities, but the size of the hotel may need
to be adjusted to remain within the given diversion limitations.
The State Engineer has adopted a groundwater management plan in accordance with the statutory
requirements outlined in Utah Code § 73-5-15.2 The area has been declared to be a "critical
management area" where withdrawals consistently exceed safe yield.3 Under the plan, the State
Engineer will regulate the valley and limit groundwater withdrawals to safe yield as directed by
Utah Code § 73-5-15(2)(b)(i). The ·applicant is advised that Water Right Numbers 73-2820, 73-
2822, 73-3006, 73-3326, and 73-3991 have priority dates ranging from January 14, 1944 to
January 8, 1965,4 that are relatively junior when compared with other water rights in the valley,
and the indicated rights may be subject to a priority call based on the implementation of the
aforementioned plan.
It is the opinion of the State Engineer that this change application can be approved without
adversely affecting existing rights. The applicant is put on notice that diligence must be shown in
1 Consumptive Use of Irrigated Crops in Utah, Research Report 145, Utah Agricultural Experiment Station, Utah State
University, Logan, Utah, October 1994, Table 25, Cedar City Station . The benchmark crop for the referenced
calculation is alfalfa, the most typical and consumptive crop evaluated in the study (28 .90 inches or 2.4083 feet. ,2.4083
feet I 4.0 acre-feet duty= 60.21 %).
2 The adopted Cedar City Valley Groundwater Management Plan can be found at the following URL:
https://waterrights.utah.gov/grou ndwater/Mana gement Reports/CedarValley/CedarValley.asp
3Safe yield as described by Utah Code § 73-5-15(1 )(b) is the amount of groundwater that can be withdrawn from a
groundwater basin over a period of time without exceeding the long-term recharge of the basin or unreasonably
affecting the basin's physical and chemical integrity.
4The priority date of each listed right can be found in the summary table above.
ORDER OF THE STATE ENGINEER
Permanent Change Application Number
73-2820 (a51612)
Page 3
pursuing the development of this application, which can be demonstrated by the completion of the
project as proposed in the change application.
It is , therefore, ORDERED and Permanent Change Application Number 73-2820 (a51612) is
hereby APPROVED subject to prior rights and the following conditions:
1) This change application is limited to the annual diversion of 742.0 acre-feet of water to be
used for the irrigation of 130.1527 acres from March 15 to October 31; year-round, indoor,
domestic sole supply requirements of 472.0 EDUs; and year-round commercial purposes
consisting of a commercial hotel and amenities, limited to 8.9891 acre-feet.
2) To accommodate the approval of this permanent change application, the use of742.0 acre-
feet of water to be used for sole supply irrigation of 155.5 acres from March 15 to October
31, sole supply irrigation of 25 .0 acres from April 1 to October 1, and sole supply irrigation
of 5.0 acres from April 1 to October 31 at the historical points of diversion and places of
use must cease.
3) The applicant shall construct or install and maintain controlling works and a metering
device as required by Utah Code § 73-5-4. The diversion of water under this application
for irrigation will be made under the direction of the Cedar Valley (Pumps) commissioner.
Any additional expenses incurred by the commissioner in distributing water under this
application shall be borne by the applicants.
4) This approval does not grant any rights nor permits related to the design , construction or
operation of a regulated water system or related wastewater disposal facilities. Such
permits or authorities as may be necessary for the proposed development are to be acquired
separately from this approval.
The State Engineer has statutory responsibility to create and maintain water right records based on
an administrative process outlined in statute. The State Engineer is not authorized by statute to
adjudicate water right title or the validity of established water rights. It is noted that failure to
exercise a water right within the statutory period could render all or a portion of a water right
invalid through forfeiture. Parties who wish to challenge the validity of a water right are advised
that a declaration of forfeiture is a judicial action and the courts are available to pursue such suits
(Utah Code§ 73-1-4).
As noted, this approval is granted subject to prior rights. The applicant shall be liable to mitigate
or provide compensation for any impairment of or interference with prior rights as such may be
stipulated among parties or decreed by a court of competent jurisdiction.
The applicant is strongly cautioned that other permits may be required before any development of
this application can begin and it is the responsibility of the applicant to determine the applicability
of and acquisition of such permits . Once all other permits have been acquired, this is your authority
to develop the water under the above referenced application which under Utah Code§§ 73-3-10
ORDER OF THE STATE ENGINEER
Permanent Change Application Number
73-2820 (a51612)
Page4
and 73-3-12 must be diligently prosecuted to completion. The water must be put to beneficial use
and proof must be filed on or before July 31, 2031, or a request for extension of time must be
acceptably filed and subsequently approved ; otherwise , the application will be lapsed. This
approval is limited to the rights to divert and beneficially use water and does not grant any
rights of access to, or use of land or facilities not owned by the applicant.
Proof of beneficial use is evidence to the State Engineer that the water has been fully placed to its
intended beneficial use. By law, it must be prepared by a registered engineer or land surveyor, who
will certify to the location, uses, and extent of your water right. Upon the submission of proof as
required by Utah Code§ 73-3-16, for this application, the applicant must identify every source of
water used under this application and the amount of water used from that source. The proof must
also show the capacity of the sources of supply and demonstrate that each source can provide the
water claimed to be diverted under this right as well as all other water rights, which may be
approved to be diverted from those sources.
Failure on your part to comply with the requirements of the applicable statutes may result in the
lapsing of this permanent change application.
It is the applicant's responsibility to maintain a current address with this office and to update
ownership of their water right. Please notify this office immediately of any change of address
or for assistance in updating ownership. Additionally, if ownership of this water right or the
property with which it is associated changes, the records of the Division of Water Rights
should be updated. For assistance in updating title to the water right please contact the
Division at the phone number below.
Your contact with this office, should you need it, is with the Southwestern Regional Office. The
telephone number is 435-586-4231.
This Order is subject to the provisions of Utah Admin. Code R655-6-l 7 of the Division of Water
Rights and to Utah Code§§ 63G-4-302, 63G-4-402, and 73-3-14 which provide for filing either a
Request for Reconsideration with the State Engineer or for judicial review with the appropriate
District Court. A Request for Reconsideration must be filed in writing with the State Engineer
within 20 days of the date of this Order. The written request shall be filed in-person, by mail , or
electronically. If the request is filed electronically, it shall be submitted to: waterrights @utah.gov ,
which is the authorized general email for the Division. However, a Request for Reconsideration is
not a prerequisite to filing for judicial review. A petition for judicial review must be filed within
30 days after the date of this Order or, if a Request for Reconsideration has been filed, within 30
days after the date the Request for Reconsideration is denied. A Request for Reconsideration is
considered denied when no action is taken 20 days after the Request is filed.
ORDER OF THE STATE ENGINEER
Permanent Change Application Number
73-2820 (a51612)
Page 5
Dated this /"l d:ay of_Oufa I
Three Peaks, LLC
, 2024.
firTere~
c/o Capital West Development, LLC, Matthew Stone
5055 West Patrick Lane #101
Las Vegas NV 89118
April McKeon, Co-River Commissioner
PO Box 79023 5
VIRGIN, UT 84779
Division of Water Rights
Distribution Section
c/o Michael Nay
CEDAR VALLEY (PUMPS)
Utah Division of Drinking Water
PO Box 144830
Salt Lake City, UT 84114-4830
BY:f)ffe-Zaft ~
Voralee Cannon, Applications/Records Secretary
ORDER OF THE STATE ENGINEER
Permanent Change Application Number
73-2820 (a51612)
Page 9
UTAH DIVISION OF DRINKING WATER
PO BOX 144830
SALT LAKE CITY UT 84114-4830
JUL 2 6 2024
Dept of Environmental Qu ali ty
Division of Drinking Wa ter