CLYDE PARK, Mont. — The Montana Department of Natural Resources and Conservation has filed a lawsuit against Crazy Mountain Ranch, claiming the private guest ranch is illegally irrigating its new golf course without a valid water right.
The 209-page lawsuit, filed July 11 in Park County District Court, alleges that Crazy Mountain Ranch began watering about 35 acres of golf course turf in June 2024 before obtaining state approval. The DNRC is seeking a temporary restraining order to halt irrigation and civil fines of up to $1,000 a day according to a letter to Crazy Mountain Ranch owners from Todd Netto, the DNRC Water Adjudication, Enforcement and Distribution Bureau Chief.
“The DNRC investigation concluded that there was a violation of the Montana Water Use Act. As a result, DNRC has filed with the Park County District Court seeking a temporary restraining order to immediately enjoin the unlawful water use at Crazy Mountain Ranch,” said Patricia Spencer, the DNRC Water Resources Division communications supervisor.
A timeline of the dispute was sent to DNRC and provided to NBC Montana:
2021: Crazy Mountain Ranch was sold to Lone Mountain Land Company, a subsidiary of CrossHarbor Capital. The company that owns Yellowstone Club.
2022: The ranch hired contractors to begin designing and building the golf course.
March 2023: Crazy Mountain Ranch submitted change applications to the DNRC proposing to retire some crop-irrigated acres in exchange for new golf turf.
2023-2024: The irrigation system was built and sod was grown out of state for the course.
June 2024: The ranch began irrigating the new turf, sparking complaints from neighboring ranchers.
July 11, 2025: The DNRC filed suit and issued a cease-and-desist order.
Neighboring irrigators and ranchers filed more than a dozen complaints, arguing that the water being used for the course is coming at the expense of their more senior rights, particularly as much of Montana remains in severe drought. They expressed concerns that diverting water from Rock Creek to Hammond Creek, a different drainage, could impact local springs and aquifers.
The DNRC maintains that Montana law requires regulatory approval before any change in water use or place of use including landowners with historic, senior water rights. The agency argues that Crazy Mountain Ranch is expanding its irrigated acreage by moving water previously used on farm fields to new golf turf, while relying on stored water to irrigate the retired acres later in the season.
When NBC Montana spoke with Peter Scott, a Bozeman attorney representing the Crazy Mountain Ranch, for our story in early July, he defended the ranch’s actions, saying the ranch holds valid, “substantial decreed water rights” and that the irrigation system is monitored with “state-of-the-art technology.” He argues that water use has not increased and that voluntary offsets should permit the golf course’s operation.
After we published our story on July 7, concerned citizens reached out and disputed these claims, saying the monitoring technology is not accessible in real time to regulators or neighbors, and that “offsetting” old acres doesn’t negate the need for DNRC approval.
Scott responded to NBC Montana’s inquiry for a response to the DNRC filing a lawsuit. He said Crazy Mountain Ranch has commenced trucking in water to irrigate the golf course. In his words, Crazy Mountain Ranch believes its acquisition and use of such water is in accordance with all applicable legal requirements.
According to Scott, Crazy Mountain Ranch is working with the DNRC to formalize an agreement to not use the decreed water on its golf course. the hope is to prevent DNRC from taking further legal or regulatory action.
“(Crazy Mountain Ranch’s) dissatisfied water user’s action was based on the commissioner improperly ordering our irrigation head gate closed when we were legally entitled to irrigate in the decreed place of use,” Scott said. “The commissioner subsequently rescinded his order to permit irrigation within that place of use.”
NBC Montana reached out to the water commissioner overseeing Rock Creek to learn what comes next. We did not hear back by publication time.
The Montana DNRC recently released a 2025 drought report that says 59% of the state is experiencing moderate to extreme drought.