Running Iron Ranch Updates – Court Vacates Trial
March 17, 2026 – Court Order Vacates Upcoming Trial in Lawsuit between PAWSD and SJWCD
Pagosa Area Water and Sanitation District (PAWSD) initiated a lawsuit against San Juan Water Conservancy District (SJWCD) in December 2024. PAWSD’s intention was to sell the ~660-acre Running Iron Ranch which is jointly owned by both water districts in agreement with the Colorado Water Conservation Board (CWCB).
SJWCD opposes the sale and continues planning to build a reservoir – the San Juan Headwaters Project – on the property. The reservoir may hold up to 11,000 acre-feet of water to be held in storage for future community needs. Sufficient water rights are already owned by the two districts to fill the off-channel reservoir.
On March 13, 2026, a mediation session was held by both boards, resulting in a framework for settlement of the lawsuits. Both SJWCD and PAWSD approved the agreement at their March 16 board meetings.
On March 17, attorneys for both boards submitted a joint motion asking that court vacate the already scheduled trial. The same day, Judge Justin Fay of the Sixth Judicial District Court signed an order granting the joint motion. Negotiations continue and include considerations of status reports, reporting timelines, and a deadline for dismissing the case.
November 9, 2024 – Statement of the San Juan Water Conservancy District regarding purchase offer for future reservoir site
The San Juan Water Conservancy District will not pursue a recent purchase offer from a private developer for the Running Iron Ranch. The SJWCD board made that decision by a unanimous vote at a special meeting held November 7, 2024.
The offer received by SJWCD does not commit to a future reservoir at the Running Iron Ranch as Pagosa Area Water & Sanitation District board members publicly stated the offer would.
SJWCD cannot sell reservoir project water rights it holds. The SJWCD board has a fiduciary duty to maintain ownership of the project water rights and manage them for the benefit of the public.
SJWCD was asked to sign a nondisclosure agreement. SJWCD is a water conservancy district subject to Colorado open records laws. SJWCD will manage its records in accordance with applicable law.
A statement made by SJWCD on November 1, 2024, explaining why SJWCD opposes sale of the Running Iron Ranch as a policy matter is posted on the SJWCD website at sjwcd.org.
November 1, 2024 – Statement of the San Juan Water Conservancy District opposing Pagosa Area Water & Sanitation District sale of future reservoir site
The San Juan Water Conservancy District opposes the Pagosa Area Water & Sanitation District’s sale of public property held as a future reservoir site in a private deal to a land developer. SJWCD will work to halt sale plans based on short-sighted and narrow views of current PAWSD board members.
PAWSD board members refuse to share details of its plan with SJWCD, co-owner of the reservoir site, despite a specific request that they do so and a contractual duty to consult SJWCD.
SJWCD calls upon PAWSD to work cooperatively with SJWCD and the public to secure our water future. SJWCD also calls upon the public to demand from PAWSD an open and informed discussion of water needs and conditions that affect our future water supply.
It is simply wrong for PAWSD to sell public land vital to water storage without making every effort to retain the property as it agreed to do.
Public Property for a Future Reservoir
The Pagosa Area Water & Sanitation District (PAWSD) and San Juan Water Conservancy District (SJWCD) co-own property known as the Running Iron Ranch. The Ranch was purchased as the site for a future reservoir with funds provided by the State of Colorado – a grant to SJWCD and loan to PAWSD.
In 2015, PAWSD, SJWCD, and the State entered into an agreement to restructure the PAWSD loan and provide a substantial reduction in interest owed to the State. That agreement sets out a timeline designed to keep the Ranch in public hands while the lengthy process of planning, permitting, and building a reservoir can proceed. The first part of the timeline is a 20-year planning period. PAWSD agreed to “make every effort to retain the Running Iron Ranch” during the planning period (2015-2035).
SJWCD Opposes PAWSD’s Action to Sell Running Iron Ranch
In recent weeks, PAWSD’s board voted to sell the Ranch. SJWCD opposes the sale as a policy matter. SJWCD does not believe PAWSD’s action to sell the Ranch is based on sound water planning or economic analysis. 2
Selling the Ranch deprives County residents and property owners of the best available site for a future reservoir. The sale plan abandons land now in public hands and dedicated to use for water storage and public purposes consistent with a reservoir.
PAWSD has not engaged with SJWCD to discuss these concerns. Instead, PAWSD voted on October 24, 2024, to sue the SJWCD as a tactic to complete a sale over SJWCD’s objection.
PAWSD’s Rush to Litigation is a Bad Use of Limited Public Funds
Public/ratepayer funds should not be spent litigating when cooperative efforts could answer the questions that divide PAWSD and SJWCD. The Districts’ funds would be better spent on professional services assisting the SJWCD, PAWDS, and the community plan for long-term water needs, evaluate drought risks, and assess the feasibility and requirements for building a reservoir at the Running Iron Ranch.
In 2008, PAWSD issued a Source Water Protection Plan identifying drought as a risk to PAWSD’s water supply. That Plan, available on PAWSD’s website, called for ongoing public education on water conservation and planning for future storage. PAWSD’s current board members are walking away from planning for water storage.
SJWCD applauds residents, businesses, and PAWSD for taking steps to conserve water. Conservation efforts will not, however, put water in the San Juan River during hotter drier years. In Spring 2024, snowpack above Navajo Reservoir peaked at roughly 105% of the 30-year average. The April – July runoff, however, was only 70% of average. Our water needs include faucets and more – the health of the river and access for recreation, a key to our local economy.
SJWCD believes planning decisions are best made in open and transparent processes informed by current water conditions and a forward-looking perspective.
SJWCD Invites the Public to Support Cooperative Efforts
SJWCD is ready to work with PAWSD and other community stakeholders in a cooperative planning effort. SJWCD has been moving over the past year to build public awareness of our watersheds and environmental conditions affecting them, introduce community members to the Running Iron Ranch, and engage professional services for reservoir planning. SJWCD foresees public uses of the Ranch beyond water storage.
SJWCD has included PAWSD in many of its public outreach efforts, and SJWCD designated board members to provide a clear channel of communication to PAWSD’s board. In contrast, PAWSD board members have taken it upon themselves to negotiate sale terms without involving SJWCD in any of those discussions.
SJWCD encourages the public to reach out to board members of both SJWCD and PAWSD about the potential sale of public property identified years ago as the best available site for future water storage.
