Concerned McCloud Citizens v. McCloud Community Services District (Jan. 31, 2007) 147 Cal.App.4th 181Water Purchase Agreement • February 26th, 2016
Contract Type FiledFebruary 26th, 2016The McCloud Community Services District (CSD) and Nestle Waters North American entered into a 50-year agreement for the sale and purchase of up to 1,600 acre feet of spring water annually. Under the agreement, there is an initial 5 year contingency period during which Nestle will evaluate the feasibility of using the springs and begin siting and design work for a bottling plant. The contingency period would be used to acquire any necessary permits, and complete CEQA documentation. The agreement provided that neither party was bound to the agreement “until District’s compliance with CEQA is completed and there is no possibility of a challenge pursuant to CEQA.” Concerned McCloud Citizens brought suit against the CSD on grounds that this agreement should have been subject to CEQA review before it was signed. The trial court agreed and set aside the agreement.