What began in the Shields Valley over two years ago and became a battle for water rights has now ended in a consent decree between the Crazy Mountain Ranch (CMR) and the Montana Department of Natural Resource Conservation (DNRC), the latter of which had filed a recent lawsuit on July 11th alleging illegal water use by the former, purposed for irrigating an 18-hole golf course on an 18,000 acre ranch and exclusive resort in Clyde Park.

The lawsuit, settled prior to the opening hearing scheduled for Monday, July 28th, sought to impose a temporary restraining order and preliminary and permanent injunctions, as well as to procure civil remedies, it’s plaintiff stating that, “CMR does not have a valid water right that authorizes beneficial use of water for irrigation on the 112 acres of the proposed acres,” further clarifying that the defendant is therefore violating state laws on water use permits passed in 1973. As suggested by the lawsuit, had CMR been found liable, the company would be required to pay $1,000 for each day of illegal use.

CMR was initially purchased by parent company Cross Harbor Capital Partners in 2021, an east-coast private investment and asset management firm based in Boston founded in 1993 by co-owners Samuel Byrne and William Kremer—proprietors of the Yellowstone Club in Big Sky and other domestic and international commercial, residential and industrial real-estate development projects. Amongst their recent acquisitions (in partnership with Lone Mountain Land Company), the ranch—once belonging to the infamous tobacco behemoth Phillip Morris International—is being transformed into a private membership resort for outdoor recreation and other activities, including golf.

In March 2023, three separate applications to change of Appropriation Water Right were filed with the DNRC by Mike DuCuennois, Executive Vice President of Development at Lone Mountain Land Company LLC, on behalf of CMR Ranch Owner, LLC—eventually amended and consolidated some nine months later to a single case titled 43A-6009-R-2023, with intent to “provide late season water for 112 acres of irrigated turf grass and landscaping for a new golf facility” by altering the water storage claim for Rock Lake and instigating other water use change initiatives related to nearby sources.

On September 21st, 2024, Crazy Mountain Ranch hosted a soft opening of the 18-hole golf course—described by resort staff “as incredible a setting there will ever be for the game of golf,” a proclaimed masterpiece designed by Coore and Crenshaw, a golf course architectural firm boasting a massive portfolio spanning the United States, France, Japan and other countries.

During public commentary at the Park County Commissioner’s meeting held just three days later, Livingston native Keegan Nashan notified the commission regarding water use without proper permitting by CMR before receiving approval from the DNRC. The following day, she filed a formal complaint with the Park County Conservation District (PCCD) concerning illegal water use by CMR—launching an ensuing onslaught of complaints, inquiries and public information requests (PIR) by Nashan aimed towards public officials, government agencies and non-profit organizations, including Clyde Park Mayor Sydney Wiley, Montana Fish, Wildlife and Parks, the Park County Environmental Council and the Montana Corps of Engineers.

Per Nashan, DuCuennois eventually confirmed during a phone call placed on October 7th, 2024, that not only had CMR appropriated water resources from Rock Lake but had begun altering infrastructure towards this purpose—information used to file a complaint with the Department of Environmental Quality dated October 8th and again provided to the Park County Commission at a meeting on October 15th, neither of which amounted to action.

The complaint filed with the PCCD on September 25th, on the other hand, was eventually reviewed at a public meeting scheduled for November 5th during which it was determined that though CMR was technically required to obtain permitting prior to installing infrastructure used for altering water use, its project would be retrospectively approved without the organization incurring penalties. CMR then filed Notice of Withdrawing its Motion to Amend Claims for the three applications originally submitted in March 2023—this motion was eventually accepted and the case closed in early December 2024.

Then, on January 27th of this year, legal representatives, including attorney Peter Scott who served as counsel for CMR in the Montana Water Court case versus the Shields Valley Cattle Co. and neighbors, accompanied by a team of lobbyists, promoted Senate Bill 178 to the Montana Senate Natural Resources Committee in an effort to change water leasing laws—specifically, removing DNRC supervision over relevant processes. Montana State Senator Sue Vinton, who sponsored the bill, spoke during opening statements about how benefits would extend to industries like agriculture and fossil fuels, as well as wildlife and the environment.

At the meeting, a consensus emerged between committee members and the bill’s proponents, albeit with a number of concerns expressed by the opposition: that water leasing in Montana should operate with greater efficiency yet with respect for senior water rights, due process for notification and objection, DNRC oversight on impact claims, and quantity restrictions—expressed concurrently by members of the Sr. Water Rights Coalition, Trout Unlimited, MT Water Resources Association, Clark Fork Association, MT Farmers Union, and the Montana Stock Growers Association.

During a legislative session at the state capital on March 31st, contracted lobbyists and impassioned dissenters alike assembled in support and protest of the bill, including testimony from the aforementioned Senate committee members, and attorney Abby Brown, who represented the Shields Valley Land & Cattle Co. alongside neighbors in the aforementioned Montana Water Court case. The prevailing bill, compliant with existing Montana water, ultimately retained provisions to protect new and existing users, yet expanded on temporary water leasing practices in bipartisan lawmaking fashion, a powerful statement about democracy in Montana.

Nonetheless, CMR persisted in appropriating water resources using the aforementioned tributaries, though, increased media coverage began shedding light on the saga, including articles from the Billings Gazette, the Montana Free Press Association and other local outlets published in May and June. On June 16th, NBC Montana reported that the DNRC had recently filed a cease-and-desist against CMR (dated June 11th) in an attempt to prevent further irrigation and impose monetary penalties of up to $1,000 daily for subsequent violations.

A groundbreaking letter written by DNRC Water Adjudication, Enforcement and Distribution Bureau Chief Todd Netto addressed to CMR briefly states that the agency’s investigation into twelve separate complaints from local ranchers dated between May 30th and June 27th, 2025, regarding water rights encroachments, warrants potential legal action if such acts are continued. The letter, in essence, demands that the organization cease irrigation or face judicial ramifications and hefty fines (relatively speaking, of course).

In response, CMR began transporting approximately 100,000 gallons of water daily to irrigate their golf course, procured at least in part (an estimated 27,000 gallons at $14 per unit, according to a report from the Montana Free Press Association) through purchase from Big Timber Municipal (sourced from the nearby Boulder River), a now controversial issue within the community. Initially reported by KZBK Bozeman, the municipality has previously sold water in bulk for an unspecified number of projects, citing sufficient resources and, consequentially, economic benefits—regardless of whether such information is communicated by city officials to their constituents—1,686 residents according to 2023 U.S. Census Bureau data.

The cease-and-desist issued by the DNRC nevertheless prompted further legal action as evidence began surfacing that CMR had, in violation of the order, continued with irrigation despite threats of legal recourse.

(Note: Counsel Scott filed an affidavit with the Park County District Court on July 8th contending that Park County Water Commissioners Richard Sarrazin and Lacey Arthun, who possess discretion and authority over water allotment, ordered the closure of CMR water sources without clearly stating reasons for this decision. He further insisted that Sarrazin “sanctioned and participated in the delivery of stored water to unauthorized points of diversion and unauthorized places of use under an annual in-kind lease to use another appropriators stored water right” and that at least one of these recipients had filed a water use complaint with DNRC. It also states that Sarrazin declared the delivery of stored water belonging to CMR to other water users downstream from such points and places were “necessary for taking care of his people” and that they likely have family ties or property interests downstream that will receive direct benefit. Proceedings were stayed on July 18th pending resolution of the recently filed lawsuit.)

Eventually a lawsuit was filed by DNRC with the Park County District Court on July 11th. The massive 209-page document, a vast majority of which contained appendices such as water use complaints filed with the DNRC and an investigation report detailing their veracity, as well as a timeline of events dating back to the initial purchase of CMR, also included correspondences between Netto and CMR counsel Parker Scott. On June 26th, Netto had informed Scott that he believed CMR had violated the Montana Water Use Act and requested that he ask CMR to voluntarily cease irrigation.

According to the lawsuit, Scott responded on June 30th refusing this request, instead insisting that CMR would continue irrigation (that is, up until July 10th, according to a report on July 16th by Amanda Eggert of the Montana Free Press Association, when Scott reported that CMR had voluntarily ceased irrigation one day prior to the DNRC filing)—provoking Netto to seek injunctive relief and civil penalties through the district court.

A since cancelled court hearing had been scheduled for Monday, July 28th prior to the consent decree wherein the defendants were dismissed without prejudice by District Court Judge Matthew Wald contingent upon adherence to conditions defined within the document filed July 24th. According to the decree, CMR must receive approval for permitting (a new Application to Change of Appropriation Water Right was completed by CMR and received by the DNRC on May 23rd, 2025) and use only purchased or leased water with regulatory supervision by the DNRC. CMR must disclose, on a weekly basis, information related to the source, amount and use of water subject to inspection if deemed necessary by the executive agency on a minimum 24-hour notice. All claims to fees and penalties were waived by the DNRC.

In a statement issued through G.F.Bunting, CMR General Manager David Hardwick said, “We apologize for getting ahead of the process on the irrigation of the golf course. With this consent decree, the DNRC is allowing us to continue to irrigate the course with purchased water while it considers our May application for a change in place of use. It’s important to know that DNRC does not dispute that CMR has only used water that it is authorized to use—this is resolution of a dispute about where we are using that water.’’

This article will be periodically updated in light of new information.

 

 

 

Share this article
The link has been copied!