Controversy Surrounds New Golf Resort in Montana
A new ultra-luxury golf resort has been bending irrigation regulations in the Shields Valley of Montana.
Ownership and Recent Developments
Crazy Mountain Ranch (CMR), purchased in 2021 by the private equity firm CrossHarbor Capital Partners, is part of a portfolio that includes the Yellowstone Club and other upscale resorts that have altered the nearby Big Sky Valley.
Soft Opening and Permit Issues
In September 2024, CMR had its soft opening, allowing golfers to experience a course co-designed by Ben Crenshaw. However, the resort initiated irrigation by tapping into Rock Creek without the necessary permits.
Water Rights and Violations
While CMR applied for water rights from the Department of Natural Resources and Conservation (DNRC) the previous year, it chose to pump water immediately, rather than wait years for approval. Further complicating matters, CMR altered Rock Creek’s diversion point and stored water at Rainbow Lake—designated for wildlife—without the required approvals. Astonishingly, CMR has even withdrawn its application for water rights.
Community Backlash
The local community is understandably upset, with downstream landowner Tim Sundling stating that the rules should apply equally to everyone, regardless of status. Neighboring rancher Scott Knutson has lodged an official complaint with the DNRC, reflecting the general frustration among local residents.
Regulatory Responses and Consequences
Currently, water demand in the West is high across various sectors, including agriculture and wildlife. Though the DNRC can impose fines for water violations, such actions are rare and may not deter CMR, given their financial capacity. Legal avenues exist, including cease-and-desist orders, but enforcing these measures could be challenging.
Looking Ahead
The broader concern lies in setting a precedent; if CMR isn’t held accountable for its actions, it could pave the way for similar violations by other developers. As property ownership trends shift from agricultural to recreational uses, organizations like Trout Unlimited are monitoring the situation and advocating for stronger regulations to manage water use among these new landowners.
