Concerned Irrigators v. Belle Fourche Irrigation District

235 F.3d 1139, 2001 WL 2176
CourtCourt of Appeals for the Eighth Circuit
DecidedJanuary 2, 2001
Docket99-1895, 99-1922
StatusPublished
Cited by1 cases

This text of 235 F.3d 1139 (Concerned Irrigators v. Belle Fourche Irrigation District) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Concerned Irrigators v. Belle Fourche Irrigation District, 235 F.3d 1139, 2001 WL 2176 (8th Cir. 2001).

Opinion

JOHN R. GIBSON, Circuit Judge.

This case involves the Belle Fourche Irrigation District’s method of assessing construction debt and operation and maintenance (0 & M) costs to the landowners in the District. Concerned Irrigators, a landowners’ association, and Harold Nelson and Laurie Barnaud, individual landowners, appeal the district court’s 1 grant of summary judgment to the District. The appellants (collectively, Concerned Irriga-tors) argue that the District is violating both federal law, which requires construction charges to be equitably apportioned, and state law, which requires assessments to be made with regard to the benefit received. We affirm.

The United States Bureau of Reclamation constructed the Belle Fourche Irrigation Project in the early part of the twentieth century to deliver water to the arid lands of western South Dakota. After its completion, the project was operated by the Bureau. In 1949, the Belle Fourche Irrigation District, an organization formed by the landowners whose lands were irrigated by the project, took over the project’s operation and maintenance.

The District annually assesses the landowners within the District to cover each landowner’s share of construction debt and 0 & M costs. Over the years, the District and the Bureau have entered into several different contracts that require, among other things, repayment of construction costs. Four contracts are relevant to this dispute: the 1949 contract, the 1963 Keyhole contract, the 1971 contract, and the 1984 contract.

Under the 1949 contract, those who owned less productive land were assessed at a lower rate for both construction debt and 0 & M costs:

All assessments, tolls, or other charges against individual tracts in the District for the purpose of paying the District’s obligations shall be fixed for the different classes of land at such ratios as may be determined by the District’s Board of directors: Provided, That all assessments shall be within the percentage ratios as follows, all ratios being based on a ratio of 100 for class 1 land:

Class 1 — 100
Class 2 — 88-92
Class 3-60-65
Class 4 — 40-50

Class 1 lands are the most productive; Class 4 lands are the least productive.

In 1963, the Bureau and the District entered into a contract that allowed the District to receive water from the newly constructed Keyhole Reservoir in Wyoming. The Keyhole contract amended the 1949 contract to provide for payment of Keyhole construction debt and Keyhole O & M costs. The assessment method for *1142 these charges was the same as the method provided in the 1949 contract.

The District’s board of directors proposed a different method of assessment in 1970. Under this proposal, the 0 & M costs were to be assessed equally based on the number of irrigable acres owned. Those who owned less productive land would no longer be assessed at a lower rate for 0 & M costs. In addition, the ratios for the land classes, which would still be used to assess construction debt, were to change. After the board passed the resolution, it submitted the proposal to the landowners for a vote. Of the 549 eligible voters, 363 voted, with 200 in favor of the change. The District and the Bureau then entered into a new contract in 1971, which modified both the 1949 contract and the 1963 Keyhole contract. The 1971 contract incorporated the new assessment method:

The assessments to pay annual operation, maintenance, and replacement costs and assessments for any and all special or reserve funds shall be assessed equally against all irrigable acres irrespective of land classification. All assessments, tolls, or other charges against individual tracts of land in the District for the purpose of paying annual construction installments due under all contracts shall be fixed for the different classes of land at such ratios as may be determined by the District Board of Directors: Provided, That all assessments shall be within the percentage ratios as follows, with all ratios being based on a ratio of 100 for Class 1 lands:
Class 1 — 100
Class 2 — 65-80
Class 3-10-25
Class 4 — 1-10

In 1983, Congress enacted a law that designated the project as the Belle Fourche Unit of the Pick-Sloan Missouri Basin Program, allowing the project to benefit from the sale of hydroelectric power in the basin. 2 The purpose of the law was to modernize and improve the irrigation facilities in the District and to promote recreation and fish and wildlife preservation. The Bureau and the District entered into a new contract in 1984 to establish a new repayment plan for construction debt. By its terms, the contract superseded the 1949 contract and a 1976 contract that is not relevant here. The 1963 Keyhole contract was incorporated into the 1984 contract. The 1971 contract was not mentioned; however, the District continued to assess the landowners in accord with its provisions.

Today, the District assesses O & M costs equally per irrigable acre, as provided by the 1971 contract. The District assesses construction debt proportionally based on land class, but whether it is using the ratios from the 1971 contract is not clear.

Nelson and Barnaud filed suit individually and on behalf of Concerned Irrigators, an association of Class 3 and 4 landowners within the District. Concerned Irrigators alleged that the District’s method of assessment is improper and in violation of its contractual and statutory obligations. The district court found that the 1971 contract was valid, that the 1984 contract did not supersede the 1971 contract, and that the District’s assessment of O & M costs complies with its contractual obligations. The court also found that the District’s assessment of construction debt complies with federal law. Concerned Irrigators appeals the court’s grant of summary judgment for the District. The District cross-appeals, arguing that the district court lacked jurisdiction to review the assessment rates.

I.

Citing Flint v. United States, 906 F.2d 471 (9th Cir.1990), the District argues that the authority to set assessments is a *1143 discretionary function of the Bureau of Reclamation and that the district court therefore lacked jurisdiction to review the assessment method. In Flint, the Ninth Circuit held that the Administrative Procedure Act precluded review of the Secretary of the Interior’s discretionary act of setting maximum 0 & M charges because there were no meaningful standards against which to judge the action. 906 F.2d at 475-76. Here, Concerned Irriga-tors is challenging decisions made by the District, not by the Secretary or the Bureau. Flint

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Bluebook (online)
235 F.3d 1139, 2001 WL 2176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/concerned-irrigators-v-belle-fourche-irrigation-district-ca8-2001.