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830 P.2d 915, City of Thornton By and Through Utilities Bd. v. City of Fort Collins, (Colo. 1992) Page 11 <br />• <br />• <br />acts occur before the formation of the requisite <br />intent to appropriate. " 703 P.2d at 1307 (citing <br />Harvey Land & Cattle Co. v. Southeastern Colorado <br />Water Conservancy Dist., 631 P.2d 1111 <br />(Colo. 1981); Twin Lakes Reservoir & Canal Co. v. <br />City of Aspen, 192 Colo. 209, 557 P.2d 825 (1976) <br />). This formulation requires some clarification. <br />[5] [6] In Bar 70, we held that no matter the <br />sequence, the relevant act(s) "must be of such <br />character as to perform three functions.... " 703 <br />P.2d at 1307 (citing City of Aspen, 696 P.2d at <br />762 -63). The three required functions are: "(1) to <br />manifest the necessary intent to appropriate water to <br />beneficial use; (2) to demonstrate the taking of a <br />substantial step toward the application of water to <br />beneficial use; and (3) to constitute notice to <br />interested parties of the nature and extent of the <br />proposed demand upon the water supply." Bar 70, <br />703 P.2d at 1307. A relevant act need not perform <br />all three functions, as long as all three functions are <br />performed by some relevant act or acts. An act <br />which performs one or more of these functions is <br />thereby an overt act for purposes of the first step <br />test. Obviously, if a relevant act is deemed to have <br />performed the first function of manifesting the <br />necessary intent, then the necessary intent has been <br />formed. <br />[7] [8] Thus, if the sequence of elements in a <br />particular case is such that a relevant act precedes <br />the formation of the necessary intent, then that act <br />cannot be deemed to have performed the first <br />required function of manifesting the necessary <br />intent. The act, therefore, which is deemed to have <br />manifested the necessary intent is the one act which <br />cannot precede the formation of the necessary intent. <br />However, an act preceding both the formation of the <br />necessary intent and the act manifesting that intent <br />may be relevant because that act may be deemed to <br />have performed the second and /or the third required <br />functions. In City and County of Denver, we held <br />that "formation of the necessary intent to appropriate <br />may succeed the performance of those overt acts <br />that serve the purposes of demonstrating that a <br />substantial step has been taken toward application of <br />water to beneficial use and of putting others on <br />notice of the prospective demand upon the water <br />supply." 696 P.2d at 748. Conversely, overt acts <br />performing those functions may precede the <br />formation of intent. (FN5) Even so, the first step <br />can never be completed before the formation of the <br />necessary intent, and the appropriation date of a <br />conditional water right cannot be set earlier than the <br />formation of the requisite intent and the act which <br />manifests that intent. <br />[9] Turning to evidentiary concerns, the problem <br />may arise as to what relevant act can be deemed to <br />have performed the function of manifesting the <br />necessary intent. *926 In Harvey Land & Cattle, <br />631 P.2d at 1113, and in Twin Lakes, 557 P.2d at <br />828, we held that the filing of an application for a <br />conditional water right itself may be evidence that <br />the necessary intent to appropriate water has been <br />formed. That filing an application for a conditional - <br />water right may constitute such evidence means that <br />the filing also was the relevant act which performed <br />the first required function of manifesting the <br />necessary intent. See City and County of Denver, <br />696 P.2d at 748 n. 14. <br />• <br />[10] [11] [12] Given that filing an application for a <br />conditional water right may be deemed to have <br />performed the first function, we proceed to consider <br />whether a filing may be deemed to have performed <br />the second and third required functions if other <br />relevant preceding acts are lacking or fail to qualify <br />as overt under the first step test. While filing an <br />application for a conditional water right certainly <br />may be deemed to have performed the third required <br />function of providing notice, see Collard, at 552, it <br />is doubtful that a filing can be deemed in and of <br />itself to have performed the second required function <br />(i.e., taking a substantial step to put the water to <br />beneficial use). Other overt acts normally would be <br />required. Under section 37- 92- 305(9)(b), 15 C.R.S. <br />(1990), an applicant for a conditional water right <br />must establish that water can be and will be <br />"diverted, stored, or otherwise captured, possessed, <br />and controlled and will be beneficially used." <br />Establishing that waters can be diverted or <br />controlled would entail some showing that certain <br />measures toward the application of waters to <br />beneficial use either have been taken before the <br />application was filed or at least before trial. See <br />Southeastern Colorado Water Conservancy Dist. v. <br />City of Florence, 688 P.2d 715, 718 (Colo. 1984) (§ <br />37- 92- 305(9)(b) "requires proof that water will be <br />diverted and that the project will be completed with <br />diligence before issuance of a decree for a <br />conditional right "). The relevant measures taken <br />and offered as evidence to make the required proof <br />under section 37- 92- 305(9)(b) also may be relevant <br />for purposes of showing that the second function <br />under the first step test thereby has been performed. <br />Copyright (c) West Group 1999 No claim to original U.S. Govt. works <br />