The Nevada Supreme Court affirmed a district court order dismissing Gold Standard Ventures' petition for judicial review of a Nevada State Engineer water rights decision, according to an opinion filed Feb. 12, 2026.
Gold Standard Ventures (US) Inc., a wholly owned subsidiary of Orla Mining Ltd., sought to challenge a 2023 determination by Adam Sullivan, the former Nevada State Engineer, relating to water rights in the Dixie Creek-Tenmile Creek basin. The company had been attempting to secure water rights in the basin to support a planned mining operation.
The case originated when Gold Standard Ventures filed a petition for judicial review in the Fourth Judicial District Court in Elko County, challenging the State Engineer's decision. Judge Mason E. Simons dismissed the petition, prompting the company to appeal to the Nevada Supreme Court.
The Nevada Supreme Court, sitting en banc, issued its opinion affirming the lower court's dismissal. Justice Parraguirre authored the opinion for the court, which rejected Gold Standard Ventures' arguments against the State Engineer's determination.
The case centers on water rights allocation in Nevada's Dixie Creek-Tenmile Creek basin, a region where water resources are carefully managed by state regulators. Nevada's State Engineer, operating within the Division of Water Resources under the Department of Conservation and Natural Resources, has broad authority to make determinations regarding water rights applications and disputes.
Gold Standard Ventures was represented by attorneys from Taggart & Taggart, Ltd., including Paul G. Taggart, Thomas P. Duensing, Timothy D. O'Connor, and David H. Rigdon, all based in Carson City. The Nevada Attorney General's office defended the State Engineer's decision, with Attorney General Aaron D. Ford's office represented by Deputy Attorneys General Jordan Gregory Cloward and Kevin Dale Doty.
The State Engineer's role in Nevada water law is significant, as the position carries substantial regulatory authority over the state's water resources. The Engineer reviews applications for water rights, makes determinations on existing rights, and resolves disputes between water users. These decisions can be challenged through judicial review in district court, with appeals possible to the Nevada Supreme Court.
For mining operations in Nevada, securing adequate water rights is often crucial to project viability. Mining activities typically require substantial water resources for processing, dust suppression, and other operational needs. The denial or limitation of water rights can significantly impact a mining company's ability to proceed with planned operations.
The Dixie Creek-Tenmile Creek basin, like many water basins in Nevada, operates under careful regulatory oversight due to the arid climate and competing demands for limited water resources. The State Engineer must balance various uses including municipal, agricultural, industrial, and mining needs when making water rights determinations.
This case reflects the ongoing challenges facing mining companies in the western United States as they navigate complex water rights regulations in regions where water scarcity is a persistent concern. Nevada, in particular, has some of the most restrictive water laws in the nation, with a prior appropriation system that grants rights based on historical use and beneficial application.
The court's affirmation of the district court's dismissal means that Gold Standard Ventures has exhausted its judicial remedies for challenging the 2023 State Engineer determination. The company would need to work within the existing regulatory framework if it wishes to pursue water rights in the basin through alternative means.
The case also demonstrates the deference typically shown by courts to administrative agencies with specialized expertise in their regulatory domains. Water rights determinations involve complex hydrological, legal, and policy considerations that fall within the State Engineer's area of expertise.
Gold Standard Ventures, as a subsidiary of Canadian company Orla Mining Ltd., represents the international mining interests that often face regulatory challenges when operating in Nevada's strictly regulated water environment. The state's approach to water management reflects decades of experience managing scarce water resources in an arid region with competing demands.
The Nevada Supreme Court's decision adds to the body of case law supporting the State Engineer's broad authority to make water rights determinations. This regulatory framework is designed to ensure sustainable water management in a state where water resources are both limited and essential to various economic activities.
For other mining companies operating or planning to operate in Nevada, this case serves as a reminder of the importance of early and thorough engagement with the water rights permitting process. The complexity of Nevada water law and the substantial discretion afforded to the State Engineer make careful legal and technical preparation essential for successful water rights applications.