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Writer's pictureWyoming Chamber Team

Carbon County Ranchers Warn of Precedent in Water Rights Dispute



Ranchers and landowners in Carbon County, Wyoming, have appealed a water exchange plan approved by the Wyoming State Engineer for HF Sinclair. The plan allows the Texas-based company to transfer water from the North Platte River to its oil refinery in Sinclair, Wyoming. Opponents argue the approval violates Wyoming water laws, as the water is designated for farming and irrigation, not industrial use, and claim HF Sinclair bypassed required legal processes for a “change of use.”


The appeal also challenges the timing of the exchange. HF Sinclair plans to draw water from February to April and provide replacement water during the irrigation season, May through September, which ranchers say fails to meet the legal definition of a simultaneous exchange. Concerns include potential violations of the Nebraska v. Wyoming decree, unclear replacement water plans, and risks of mismanagement.


“This could set a troubling precedent,” said rancher Jack Berger, warning it might shift Wyoming’s water rights system toward commodification. The appellants also raise technical issues, including outdated calculations for water loss and unresolved water rights in the area.

While acknowledging the refinery’s economic importance, local residents stress the broader public interest. “The needs of ranchers, wildlife, and downstream communities must be considered,” said Jon Nelson of Saratoga. The Wyoming Board of Control is reviewing the case.


WY it matters to you: The outcome of this appeal could set a significant precedent for how the state's water rights are managed, affecting industries across the state. Wyoming’s water laws are designed to prioritize farming, irrigation, and natural resource management, but allowing an industrial water exchange could shift those priorities, potentially treating water as a commodity rather than a shared resource. If this change goes unchecked, it could lead to increased regulatory uncertainty, impacting agricultural producers, manufacturers, and businesses that rely on the state's water resources, threatening the balance that supports Wyoming’s economy and local communities.

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