Katrina and Terry Tolbert have been arrested and accused of diverting more than 4 million gallons of water from the Town of Palmer Lake through a buried pipe at their property off Highway 105, according to police records reviewed by KRDO13 Investigates. The investigation began after a water department employee noticed the town was losing far more water than it could explain. His audit showed monthly losses rose from a few hundred thousand gallons to more than 1 million in October 2025. The losses stayed high even after crews found and repaired several leaks. … These concerns were further heightened by the fact that the alleged theft occurred while the Town was under water emergency restrictions, requiring residents and businesses to conserve this critical resource.

Related:

• 9News (Denver, Colo.): Man and woman accused of stealing millions of gallons of water from Colorado town
• The Denver Gazette (Colo.): Palmer Lake reports theft of millions of gallons of water