COLORADO SPRINGS, Colo. — 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.
To help track the water, the town installed a separate meter on the line serving the Tolbert property on Aug. 27. From Sept. 14 to Oct. 13, the meter recorded 173,320 gallons. The household meters recorded 7,900 gallons combined…