PALMER LAKE, Colo. — Law enforcement authorities have arrested a Palmer Lake couple accused of diverting more than 4 million gallons of municipal water through an underground pipe buried on their property along State Highway 105, according to KRDO13 Investigates. Police records identify the suspects as Katrina and Terry Tolbert, who allegedly siphoned approximately $36,000 worth of town water while the northern El Paso County community was operating under strict emergency water conservation restrictions.

The investigation began after an internal audit revealed that the Town of Palmer Lake was losing far more treated water than municipal records could explain, as summarized by the Water Education Foundation. Monthly unaccounted water losses jumped from a few hundred thousand gallons to more than 1 million gallons beginning in October 2025. Those losses remained stubbornly elevated even after municipal utility crews located and repaired several routine distribution leaks across the system.

Palmer Lake Town Clerk and Administrative Supervisor Erica Romero stated that recent administrative turnover within the Palmer Lake Water Department led to updated auditing procedures and closer scrutiny of municipal usage records, according to KRDO13 Investigates. Romero noted that the unauthorized diversion appears to have occurred over an extended period before the new management team implemented stricter oversight protocols that pinpointed the massive discrepancy.

In response to the discovery, current Palmer Lake Water Supervisor Charles Roubidoux overhauled the town’s monitoring practices to safeguard the fragile high-country supply. Roubidoux confirmed to KRDO13 Investigates that municipal staff now conduct water usage testing every single day—a preventative measure that was not performed under prior departmental leadership—to ensure immediate accountability and resource preservation across the community.

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