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Commission approves transfer and sale of South Line water system amid contested ownership claims
Summary
The commission approved transferring the South Line water system from the Town of Montello to Elko County and subsequently voted to sell the system and associated water rights to Wine Cup Gamble Ranch despite public opposition and active quiet-title litigation by Pilot Peak, whose attorney warned of immediate injunction filings.
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Elko County staff presented a multi-part action to transfer the South Line water system and pertinent water rights from the Town of Montello to Elko County so the county could later sell the assets for economic development. Staff said the line has not supplied Montello since the 1980s and argued county ownership is appropriate before any sale.
During the sales discussion the board moved to sell the South Line and assets to Wine Cup Gamble Ranch, finding the sale in the county's interest for economic development. Tamara Thiel, appearing as counsel for Pilot Peak, told the board her client disputes current title and holds vested water rights; she warned that selling to Wine Cup would not automatically relieve the county of liability, said Pilot Peak has maintained and repaired the system and that she will seek injunctive relief if the sale proceeds. Despite those objections, the board voted to approve the sale to Wine Cup Gamble Ranch; staff and counsel noted the county is aware of pending litigation and said transferring or selling could affect outstanding claims.
