Possible settlement reached in long-running Rio Grande dispute
Parties in a 12-year-old legal fight over Rio Grande water on Monday told the federal judge supervising the case for the U.S. Supreme Court that a potential settlement has been reached.
The dispute, officially titled Original No. 141 Texas v. New Mexico and Colorado, came to a head in 2024, when U.S. Supreme Court justices struck down a deal proposed by New Mexico, Colorado and Texas to end the litigation. SCOTUS, — in a close 5-4 decision — sided with the federal government's objections that the states' deal unfairly excluded the 'unique federal interests,' and sent the parties back to settlement talks, or potentially back to court. In fact, the parties had been scheduled for a June 9 trial in Philadelphia, while still in talks.
On Monday, attorneys for both the core parties told the U.S. Court of Appeals for the Third Circuit Chief Judge D. Brooks Smith they are 'cautiously optimistic' the case may be resolved in coming months, and promised more details to come.
Jeff Wechsler, the lead attorney representing New Mexico, told the court during a status hearing on Monday he expected documents related to the agreement to be signed later in the afternoon, with subsequent paperwork later this week.
He also requested, on behalf of all the parties, for the court to cancel the June 9 trial date and instead schedule a hearing for later this year.
'Our intent with the request for the hearing is to provide you with everything you need to understand the agreement,' Wechsler said.
Smith serves as the special master for the case, and is charged with overseeing the case and issuing reports for the U.S. Supreme Court, which has final approval over interstate water lawsuits and settlements.
Smith commended the parties and mediator, retired federal Magistrate Judge Arthur Boylan, for the 'progress made in this very lengthy litigation.'
The case has changed dramatically since it was first brought to court. In 2013, The state of Texas alleged New Mexico pumping diverted Rio Grande water owed to Texas under an 86-year old agreement: the 1939 Rio Grande Compact, a legal document for splitting the river's water between Colorado, New Mexico and Texas. A compact violation between states can only be addressed in the nation's highest court.
In 2018, SCOTUS allowed the federal government — which operates a network of dams, and nearly 140 miles of irrigation canals to deliver water to two irrigation districts in the region and Mexico — to join the case as a party. The federal government used similar arguments as Texas: that New Mexico groundwater pumping threatened irrigation and treaty interests.
But alliances reshaped themselves in recent years. In 2022, Colorado, New Mexico and Texas proposed a deal to measure Texas' water at the state line and include transfers of water between New Mexico and Texas irrigation districts to balance out shortfalls, which the federal government opposed.
It appeared those lines of contention broke down in the most recent negotiations.
'The parties did a good job negotiating in good faith and bridging the gaps on the difficult issues,' said Thomas Snodgrass, a senior attorney for the U.S. Department of Justice representing the federal government.
Some concerns remain for the City of Las Cruces, one of the 12 organizations not a party to the lawsuit that has filed so-called 'friend of the court' (amicus curiae) briefs in the case.
Jay Stein, an attorney for the City of Las Cruces, said the state's second-largest city may not sign the current terms because the current agreement leaves the city 'uncertain' on the issues of municipal supply.
Wechsler said amici approval is not required to move the agreement forward — it only requires the sign-off of the three states and the federal government — but said that the State of New Mexico 'believes there is a path forward in resolving these issues,' with Las Cruces to prevent further litigation.
Boylan, the mediator in the case, thanked parties for the 'Herculean efforts' to settle the case and said he would continue mediation to address pending issues.
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