AG’s opinion not stopping counties’ fight over water

Thursday, March 21, 2002 | 9:44 a.m.

CARSON CITY -- The Las Vegas Valley Water District is applauding an opinion by the state attorney general's office, which ruled that a contract between Lincoln County and a private company to sell water to Southern Nevada is illegal.

"We agree with the opinion, and it reinforces what we thought all along," said Vince Alberta, public information manager for the Water District. He said the contract between Lincoln County and Vidler Water Co. to develop and sell water would mean higher rates for Southern Nevada residents.

The Water District has filed to pump water from Lincoln County, and Alberta said it is first in line with its application. It makes no sense, he said, to have a "middle man" -- Vidler Water Co. -- trying to profit from the sale.

But Lincoln County and Vidler are thumbing their noses at the opinion.

Lincoln County Commissioner Dan Frehner and Steve Hartman, attorney for Vidler, said Wednesday the opinion carries no legal weight, and they intend to maintain their association.

"We're going to continue with Vidler," Frehner said. "They have been good to us."

Hartman called the opinion "quite meaningless" and said it had no legal force. He said Vidler will "not abandon Lincoln County."

Hartman criticized Las Vegas' request for Lincoln County water.

"They don't want to pay for it. It seems they want all the water in the state of Nevada," Hartman said.

Vidler, the largest private landowner in Nevada, signed a contract with Lincoln County in which the company agreed to allocate money to develop the plan and split the profits after the water is sold.

Alberta said the legal opinion "indicates the primary mission between Lincoln County and Vidler is to get these water rights and sell them back to Clark County."

"And nobody wins in that," Alberta said. "It would mean higher rates for Clark County residents, and under the terms of the contract there are no tangible benefits to Lincoln County residents."

Alberta said that after Vidler takes out expenses for developing the water, there would be little money going to Lincoln County. In addition, he said, Lincoln County would lose in the "decision-making process" because Vidler would be calling the shots.

The attorney general's opinion said, "By agreeing not to undertake other water-related development without Vidler's consent, the county improperly gave veto authority to its partner."

The opinion, written by Supervising Deputy Attorney General C. Wayne Howle, said counties get their power exclusively from the Legislature. And there is nothing in the law that permits Lincoln County to form a partnership and share the profits.

"Nevada statutes that do authorize a county government to undertake projects intended to fulfill various public purposes do not allow engagement in profit-making enterprise," Howle said.

Hartman said the conclusion of the opinion was not unexpected. Lincoln County and Vidler had filed suit to stop the release of the opinion, but District Judge Bill Maddox in Carson City refused to issue an injunction against the state attorney general's office.

Maddox, in his ruling, said this was a legal opinion and had no force of law.

Chief Assistant Attorney General Tom Patton also conceded the opinion had no legal standing. He said a judge would have to rule whether the contract was legal.

The opinion was sought by the Virgin Valley Water District in Clark County, which complained that drilling by Vidler in Lincoln County was drying up a water source for growing Mesquite in Southern Nevada.

The Clark County district attorney's office asked the attorney general's office for its opinion on the contract between Vidler and Lincoln County.

Frehner called it a battle between "David and Goliath" -- poor Lincoln County and rich Clark County.

"We think we have the right to pursue our own way of life, and not have somebody telling us what to do," Frehner said.

He said the county wants to use the water "to create something so we can get off the dole and not beg for everything."