After a legal challenge by the Santa Clarita Organization for Planning and the Environment (SCOPE) over Castaic Lake Water Agency’s (CLWA) acquisition of the Valencia Water Co., the California Court of Appeal 2nd District upheld the legal right of the purchase, according to a news release.

In 2013, SCOPE, a local environmental protection organization, challenged the right of CLWA to acquire stock in the Valencia Water Company.

Castaic Lake Water Agency initially purchased Valencia Water Co. from Newhall Land and Farming in 2012, according to a news release from the Castaic Lake Water Agency.

The California Court of Appeal 2nd District has officially upheld the right of the Castaic Lake Water Agency’s acquisition.

The 2nd Appeal Court’s decision upholds a ruling in 2015, twice affirming the legal acquisition of the water distributor.

“The Court of Appeal rejected all of SCOPE’s arguments,” according to a press release.

The Court specifically ruled the California Constitution does not prohibit Castaic Lake Water Agency from acquiring stock of another water company.  It further added that it does not create ownership conflict in regards to a provision of the CLWA Act limiting retail water service to certain areas.

The Court of Appeals delivered a 33 page ruling after a week of hearing oral arguments for the two sides.

“We are extremely pleased that the Court of Appeal, just like the trial court, has rejected SCOPE’s claims and affirmed what we knew all along, that CLWA’s acquisition of Valencia Water Company was legal,” said CLWA President Tom Campbell in a news release from the agency.

The SCOPE Board of Directors, led by Lynne Plambeck, plans to petition the decision to the Supreme Court.

“This was a sound water management decision by CLWA consistent with our vision to innovate and improve water management in the Santa Clarita Valley.  Campbell said.  “The Court of Appeal ruling puts the community one step closer to realizing the benefits of that vision for more effective regional water management and more efficient operations.”

Note: The information above was provided in a news release by the Castaic Lake Water Agency