Klamath Irrigation District v. United States

75 Fed. Cl. 677, 2007 U.S. Claims LEXIS 71
CourtUnited States Court of Federal Claims
DecidedMarch 16, 2007
DocketNos. 01-591 L, 01-5910L to 01-59125 L
StatusPublished
Cited by16 cases

This text of 75 Fed. Cl. 677 (Klamath Irrigation District v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Klamath Irrigation District v. United States, 75 Fed. Cl. 677, 2007 U.S. Claims LEXIS 71 (uscfc 2007).

Opinion

OPINION

ALLEGRA Judge.

These consolidated cases have their genesis in temporary reductions made by the Department of Interior’s Bureau of Reclamation (the Bureau) on the use, for irrigation purposes, of the water resources of the Klamath Basin of southern Oregon and northern California. In their amended complaints, plaintiffs aver that the Bureau’s actions effectuated, alternatively, a takings and a breach of contract. Previously, this court held that plaintiffs’ interests in the use of Klamath Basin water did not constitute cognizable property interests for purposes of the Takings Clause, and, therefore, that plaintiffs were not entitled to compensation under the Fifth Amendment. Klamath Irr. Dist. v. United States, 67 Fed.Cl. 504, 531-535, 539-40 (2005). The court instead held that plaintiffs’ claims sound, if at all, in contract. Id. at 535-37. At issue in the pending motion is whether the so-called “sovereign acts doctrine” provides a complete defense to what are now viewed only as breach of contract claims. After carefully considering the extensive briefing on this issue, the court concludes that the doctrine, indeed, precludes plaintiffs from recovering in these actions.

I. BACKGROUND

This court’s prior opinion fully describes the factual background of this litigation and held that the facts listed therein would be deemed established for purposes of future [679]*679proceedings under RCFC 56(d). See Klamath Irr. Dist., 67 Fed.Cl. at 507 n. 2, 507-14. Nonetheless, a brief recitation of those facts, insofar as is relevant here, is in order.

A.

The plaintiffs in these consolidated actions are 13 agricultural landowners and 14 water, drainage or irrigation districts (the irrigation districts) in the Klamath River Basin area of Oregon and northern California. They receive, directly or indirectly, water from the Klamath Project irrigation works constructed and operated by the Bureau pursuant to the Reclamation Act of 1902, ch. 1093, 32 Stat. 388 (codified, as amended, at 43 U.S.C. §§ 371 et seq.) (the Reclamation Act). The Reclamation Act gives the Secretary of the Interior (the Secretary) legal authority to reclaim arid lands in certain states through irrigation projects. Once land has been so claimed, the Department of the Interior, through the Bureau, is responsible for constructing reclamation projects and for administering the distribution of water to agricultural users. See Reclamation Act, §§ 2-10, 32 Stat. 388-90. The original terms of the Reclamation Act permitted the United States to enter into irrigation contracts with individual homesteaders, but, as a result of several amendments, current law provides that the United States may only enter into new water distribution contracts with organized irrigation districts. 43 U.S.C. §§ 423(e), 485h(d).

The Klamath River Basin, naturally a semi-arid region, is the site of extensive water reclamation and irrigation projects constructed pursuant to the Reclamation Act. See Bennett v. Spear, 520 U.S. 154, 158-59, 117 S.Ct. 1154, 137 L.Ed.2d 281 (1997); Tulelake Irrigation Distr. v. United States, 169 Ct.Cl. 782, 342 F.2d 447, 448-49 (1965). The Klamath Project, begun in 1905, provides water to about 240,000 acres of irrigable land and several national wildlife refuges. It is operated by the Bureau to “serve[] and affeet[] a number of interests,” including the supply of irrigation water to agricultural interests in the Klamath River Basin and the supply of water to the Tule Lake and Lower Klamath National Wildlife Refuges “for permanent and seasonal marshlands and irrigated crop lands.” Pacific Coast Federation of Fishermen’s Ass’ns v. Bureau of Reclamation, 138 F.Supp.2d 1228, 1230 (N.D.Cal.2001) (hereinafter PCFFA). Water for the project is stored primarily in Upper Klamath Lake, on the Klamath River in Oregon; the Link River Dam regulates water flows from Upper Klamath Lake into the lower portions of the Klamath River. See Kandra v. United States, 145 F.Supp.2d 1192, 1196 (D.Or.2001). The Klamath Project lacks a major water storage reservoir, and because Upper Klamath Lake is itself relatively shallow and “unable to capture and store large quantities of water from spring run-off,” the Bureau is unable to store enough water during wet years for use in subsequent dry years—a fact that apparently makes the Klamath Project more vulnerable to droughts. Id. at 1197. In operating the Klamath Project, the Bureau prepares periodic streamflow forecasts and annual operating plans “in order to provide operating criteria and to assist water users and resource managers in planning for the water year.” Kandra, 145 F.Supp.2d at 1197.

The Endangered Species Act (ESA), compels the Bureau, like all federal agencies, to ensure that its operation of the Klamath Project is not “likely to jeopardize the continued existence of any endangered species.” 16 U.S.C. § 1536(a)(2). Under the ESA, the Bureau is required to perform a biological assessment “for the purpose of identifying any endangered species which is likely to be affected” by the operations of the Klamath Project. 16 U.S.C. § 1536(c)(1). If the Bureau determines that its proposed action may affect an endangered or threatened species, it must request a “formal consultation” with the National Marine Fisheries Service (NMFS) or the Fish and Wildlife Service (FWS), in response to which the appropriate agency will produce a biological opinion. See 16 U.S.C. §§ 1536(a)(2), 1536(b); 50 C.F.R. § 402.14. If that opinion concludes that the proposed action is likely to jeopardize a protected species, the Bureau must modify its proposal to alter that result.

For decades, Klamath Basin landowners generally received as much water for irrigation as they needed. In severe drought [680]*680years, they simply received somewhat less. That changed in the spring of 2001, when several federal agencies produced studies indicating that water levels in the basin were so low as to threaten the health and survival of certain endangered species. Water forecasts for 2001 predicted that year would be “critically] dry,” with an inflow volume into Upper Klamath Lake of 108,000 acre-feet from April through September—“the smallest amount of inflow on record.” Kandra, 145 F.Supp.2d at 1198. In developing its operating plan for 2001, the Bureau performed a biological assessment and concluded that operation of the Project was likely to affect adversely three endangered species: the coho salmon, the shortnose suckerfish, and the Lost River suckerfish. Accordingly, the Bureau forwarded its biological assessments and requested the initiation of formal consultation with the NMFS and the FWS under section 7 of the ESA. Id. at 1198.

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Bluebook (online)
75 Fed. Cl. 677, 2007 U.S. Claims LEXIS 71, Counsel Stack Legal Research, https://law.counselstack.com/opinion/klamath-irrigation-district-v-united-states-uscfc-2007.