A class action lawsuit has been filed against the department and district for allegedly denying irrigators access to water. The lawsuit was filed in US District Court in North Platte and claims the Nebraska Department of Resources (NDR) formed an alliance with the Nebraska Public Power District (NPPD) to protect NPPD's right to produce electricity at Spencer Dam. NDR stop orders state they were issued explicitly for the benefit of NPPD's operation of Spencer Dam.
The suit seeks to issue an order prohibiting the NDR and NPPD from interfering with the water rights of irrigators. The lawsuit also requests that NPPD tear down Spencer Dam and remove the silt left behind. NPPD sluices the Spencer Dam twice a year, flushing silt from the reservoir to maintain the ability to generate electricity. The suit claims the silt is a pollutant under the Clean Water Act.