In Re the Adjudication of the Existing Rights to the Use of All the Water Both Surface & Underground, Within the Dearborn Drainage Area

766 P.2d 228, 234 Mont. 331, 1988 Mont. LEXIS 309
Montana Supreme Court·Decided October 19, 1988·No. 88-093·Published·Cited by 9 cases

Opinion

MR. JUSTICE SHEEHY

delivered the Opinion of the Court.

We hold here that the Water Court was correct in determining on August 27, 1987, that the Department of Fish, Wildlife and Parks (DFWP) does not have a valid pre-1973 appropriation water right claim to the in-lake or in-stream waters of Bean Lake, situated in the Dearborn River Drainage area.

Bean Lake is a natural pothole lake, lying across the four common corners of Sections 13 and 14, Township 18 North, Range 7 West, and Sections 18 and 19, Township 18 North, Range 6 West, M.P.M. *333 There is no defined water inlet to Bean Lake. Its sources are ground water seepage and run-off from precipitation. The lake has a surface area of about 200 acres, a maximum depth of 31 feet and a total average volume of 2,862 acre-feet. Though the lake has a man-made overflow emptying to the north fork of the Dearborn River, no water flows out of the lake under normal circumstances.

The Dearborn River Drainage area, which includes Bean Lake, is subject to the ongoing statewide adjudication of water rights commanded under Title 85, Ch. 2, Part 2 (Sections 85-2-211-243), MCA (1987). Acting under Sections 85-2-221, 223, 224, MCA, DFWP duly filed a claim for a use water right based on recreation to “all the water stored in [Bean] Lake.” The Dearborn River Basin is designated by the Water Court as Basin 41U, and the claim of DFWP was assigned the claim number 41U-W-96936. DFWP claims a “use” right under the Montana prior appropriation doctrine. Its claim is not based in any manner on the public trust doctrine. The claimed use was “recreation,” but the claim was amended at trial before the Water Court to include use for “fish and wildlife” purposes.

DFWP first planted fish in Bean Lake on May 27, 1933. Rainbow trout were planted in 1934, silver salmon in 1935, and then not again until 1951 when fish were planted every year thereafter.

Prior to 1951, privately owned lands completely surrounded Bean Lake, with no public access. On May 15, 1951, Wallace Bean, the owner of lands abutting Bean Lake, entered into a tripartite agreement with the then Montana State Fish and Game Department, and the Augusta Chamber of Commerce, whereby Bean permitted access over his lands to the water’s edge for the public to use in boating and fishing on Bean Lake. In return, the Montana Fish and Game Department instigated a management plan and agreed to stock the lake with suitable fish. The Augusta Chamber of Commerce agreed to set up conveniences for visitors and in effect to police the area. The agreement provided that either party could terminate the agreement after two years, in which case the lake would revert “back to its original management as a privately owned lake.”

In 1964, Wallace R. Bean and Fern L. Bean, his wife, by warranty deed, conveyed to the State Fish and Game Commission (a predecessor of DFWP) 16.33 acres abutting Bean Lake. Under the deed, the grantors had the right to drain and lower the level of Bean Lake to a point on a permanent marker installed at the lake’s edge. The Beans covenanted, to run with the land, that the lake would at all *334 times be maintained at a level equal to or higher than the permanent marker.

In 1963, at about the same time as the warranty deed transaction, the Beans filed a water right claim on Bean Lake for irrigation purposes. At least one other appropriator has an earlier appropriation water claim to Bean Lake for stock water.

It is assumed by the Court that there has been extensive public use of Bean Lake for recreational and fishing purposes through the years herein mentioned, and yearly efforts by DFWP and its predecessors to manage the fisheries resource, compute Bean Lake surface levels, make studies regarding animal wastes in Bean Lake, enforce rules regarding use of motorboats, and other indicia of DFWP involvement regarding the lake.

In the adjudication of the Dearborn River drainage area by the Water Court, a temporary preliminary decree was entered which omitted the claim of DFWP to an appropriative use right in the waters of Bean Lake. The remark of the Water Court in denying the DFWP claim was that the “Water Court finds no legal basis for this purpose to be considered as a beneficial use or appropriation of water.”

DFWP filed an objection to the Water Court’s denial of its claim in adopting the temporary preliminary decree, and eventually the objection came on for a pre-hearing conference. The legal issues in the case were of a precedent-setting nature which required statewide notice by publication. The notice invited and provided for participation by interested persons in the legal issues presented and allowed the equivalent of objections to the potential quantity of DFWP’s claimed right. Those who desired to participate were required to file a Notice of Intent to Appear. Over 50 different individuals or groups exercised an option to participate. DFWP’s claim came on for trial before the Water Court. On August 27, 1987, the Water Court entered its findings of fact, conclusions, judgment and decree to the effect that the claim of DFWP was not a valid appropriation water right “because of the lack of diversion, intent, and notice.” The claim of DFWP was therefore terminated. Appeal by DFWP to this Court followed.

The first problem is whether the decision of the Water Court is appealable to this Court at this stage of the proceedings. No Rule 54(b) certificate was sought or procured from the Water Court.

In the recent consolidated causes No. 87-528 (relating to the Sage Creek Drainage area) and 88-092 (relating to the Boulder River *335 Drainage area) decided October 11, 1988, we dismissed appeals where a Rule 54(b) certificate had not been obtained, in effect holding that the causes were not final for the purposes of appeal. We have decided not to take that course with respect to this case. We are informed that DFWP has filed 15 to 17 claims in various drain-ages which claim a water right based on the doctrine of appropriation, based on facts similar to those here. DFWP is given authority exclusively to represent the public for purposes of establishing any prior and existing public recreational use right in the ongoing water right determinations. Section 85-2-223, MCA. Under this statute, DFWP considers itself duty-bound to file appropriative use claims in this and other drainages. The issue, of course, will recur, and any decision by us now as to the precise validity of such appropriation claims would help speed the water adjudication process. As we said in McDonald v. State (Mont. 1986), [220 Mont. 519,] 722 P.2d 598, 43 St.Rep. 576:

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In Re the Adjudication of the Existing Rights to the Use of All the Water Both Surface & Underground, Within the Dearborn Drainage Area, 766 P.2d 228, 234 Mont. 331, 1988 Mont. LEXIS 309 (Mo. 1988).

766 P.2d 228 (In Re the Adjudication of the Existing Rights to the Use of All the Water Both Surface & Underground, Within the Dearborn Drainage Area) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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