Sierra Pacific Industries v. WilsonAnnotate this Case
The Supreme Court reversed the decision of the State Engineer granting Intermountain Water Supply Ltd., which held water rights permits to transmit water to Lemmon Valley for municipal use, an extension of time in which to apply the water to beneficial use, holding that the anti-speculation doctrine applies to requests for extensions of time and that Intermountain failed to show reasonable diligence to apply the water to beneficial use.
In its extension request, Intermountain submitted an affidavit claiming that it had an option agreement with two unidentified "worldwide engineering and construction firms." The Supreme Court held (1) a generic option contract does not save an applicant from the anti-speculation doctrine, and the State Engineer abused his discretion in determining that Intermountain's averred option agreements satisfied the anti-speculation doctrine; and (2) there was insufficient evidence in the record to demonstrate reasonable diligence under Nev. Rev. Stat. 533.380(3)-(4) and Desert Irrigation, Ltd. v. State, 944 P.2d 835, 841 (Nev. 1997).