Springs, Pueblo County drop lawsuit over pipeline permit

A three-and-a-half-year legal battle between Colorado Springs and Pueblo County quietly ended this week, when both sides agreed to drop a lawsuit over that county’s authority to require a permit for the Southern Delivery System water pipeline.

Colorado Springs Utilities sued in November 2005, challenging the right of Pueblo County to require a 1041 land-use permit, named for the legislation that gives counties authority over multi-jurisdictional projects. At the time, there was opposition to the pipeline in Pueblo, and a permit seemed unlikely. The $1.4 billion pipeline is expected to deliver 10 million gallons a day from Pueblo Reservoir starting in 2016 and will eventually bring 78 million gallons a day to a new reservoir southeast of Colorado Springs.

In April, Pueblo County issued the permit after Utilities agreed to spend $50 million improving Fountain Creek, $75 million upgrading its wastewater or water reuse systems and $6 million on dredging the creek in Pueblo and other mitigations.

Both sides agreed to dismiss the lawsuit, which had been pending in Pueblo County court, Tuesday.