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GMA denies Del Norte and Venoni protests of 2023 basin assessment; board cites timing and administrative scope
Summary
The board voted to deny protests and refund requests from Del Norte Water Company and the Venoni Group over the 2023 basin assessment, finding the 2023 assessment was for administrative costs rather than replenishment and noting timeliness issues for the protests.
The Fox Canyon Groundwater Management Agency board on June 25 denied protests and refund requests from Del Norte Water Company and the Venoni Group challenging the water year 2023 basin assessment.
Del Norte's leadership and counsel argued the West Las Posas customers already pay substantial replenishment and modeling fees to United Water Conservation District and therefore that applying the Watermaster's 2023 assessment to the same customers imposed an inequitable double charge. John Orr, president of Del Norte Water Company, said United's monitoring, modeling and replenishment activities "benefit the entire basin" and asked for either a credit for what Del Norte pays United or that United's fees be spread basinwide. Counsel Barbara Brenner argued Del Norte timely protested under the assessment notice and requested mediation within the judgment's process.
Staff responded that the 2023 basin assessment budget was used for administrative costs associated with judgment implementation and Watermaster activities (administration, investigations, inspections, compliance, professional services and operating costs), not for replenishment projects. Staff said paragraph 7.9 of the adjudication judgment allows the Watermaster to reduce an assessment charged to water-right holders who also pay assessments to United for replenishment "as a matter of equity," but staff and counsel interpreted that provision as applying to replenishment fees rather than administrative charges.
Staff also noted Del Norte's protest letters were not submitted within the procedural timing called for in the judgment: the board approved the 2023 assessment on Dec. 15, 2023; the first protest letter from Del Norte was sent in April 2024 (after the March notice and payment), and the Venoni protest arrived more than a year after adoption. Staff recommended denial on the grounds that (1) the 2023 assessments funded administrative implementation (no replenishment projects were funded in 2023) and therefore were not duplicative of United's replenishment activities; and (2) the protests were untimely and did not request mediation within the judgment's specified period.
Del Norte and its counsel pressed the equity argument, noting the GSP and other documents repeatedly reference United's work. Board members and county counsel responded that the language of the judgment contemplated any adjustment in the context of replenishment fees and that previously proposed separate assessments for replenishment and administration were considered but rejected by stakeholders, creating practical limits on reassigning costs now.
After discussion, the board voted to deny Del Norte's and Venoni's protest letters and requests for refund. The board noted that, under the judgment, a party seeking judicial review must first pursue mediation and asked counsel to advise on mediation timing; counsel recommended parties proceed promptly to request mediation if they wish to preserve judicial-review options.
