Carbon County Landowners Challenge HF Sinclair Water Exchange Plan

Ranchers and landowners in Carbon County, Wyoming, have filed an appeal against a state-approved water exchange plan by HF Sinclair, a Texas-based energy corporation.

The plan allows the company to divert water from the North Platte River to its refinery in Sinclair, raising concerns among local stakeholders about its potential impact on water rights, environmental stability, and legal precedents.

The Wyoming State Engineer approved HF Sinclair’s proposal to transfer water annually from the North Platte River for industrial use at its refinery, marking a departure from traditional uses of the river water—farming and irrigation. The appeal, brought by local ranchers and landowners, argues that the plan constitutes a “change of use” rather than a permissible “exchange” under Wyoming water law. A “change of use” would require a separate legal process and greater scrutiny.

Additionally, opponents argue that the proposed timing of water exchanges is problematic. HF Sinclair’s plan involves withdrawing water between February and April while replacing it during the May-to-September irrigation season, which critics contend does not meet the legal requirements of simultaneous exchange.

The appeal also raises concerns about compliance with the 2001 Nebraska v. Wyoming decree governing water use in the North Platte River basin. Appellants argue that HF Sinclair’s plan lacks clarity on how replacement water will be delivered and may lead to mismanagement or over-allocation of water resources. Furthermore, they question whether calculations for water loss due to evaporation are accurate and claim the approval bypassed unresolved local water rights issues.

Jack Berger, a local rancher, expressed fears that the approval could set a precedent for commodifying Wyoming’s water resources, echoing challenges seen in neighboring states like Colorado.

“We’re concerned this decision could lead to treating water as a commodity instead of a shared resource,” Berger said.

HF Sinclair’s refinery, an economic driver in Carbon County, argues that the exchange is necessary to secure water during increasingly frequent dry years—a response to the broader challenges posed by climate change. Ranchers, however, emphasize the need to balance industrial demands with the water needs of local agriculture, wildlife, and downstream communities.

State Engineer Brandon Gephart approved the plan, citing it as a lawful exchange under Wyoming’s water statutes. He noted that the plan would be activated only during very dry years, which have occurred in 20% of the last two decades. HF Sinclair’s purchase of the Encampment River ranch—a tributary to the North Platte River—aims to address these dry periods by redirecting unused irrigation water from the ranch to the refinery.

The plan has divided local opinion. While county officials and some community members back the proposal for its economic benefits, neighboring ranchers have voiced strong opposition. They argue the plan disrupts established water-use patterns on the Encampment River, particularly the timing of return flows that replenish the river during late summer.

Jon Nelson, a resident of Saratoga, said:

“The broader public interest must take precedence. The needs of ranchers, wildlife, and downstream communities must be given equal consideration.”

Wyoming Tribune Eagle, Bigfoot99, and Wyo File contributed to this report.