Nelson v. STATE, DEPT. OF AGRICULTURE

242 P.3d 1259, 44 Kan. App. 2d 1042
CourtCourt of Appeals of Kansas
DecidedNovember 19, 2010
Docket102,695
StatusPublished
Cited by1 cases

This text of 242 P.3d 1259 (Nelson v. STATE, DEPT. OF AGRICULTURE) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nelson v. STATE, DEPT. OF AGRICULTURE, 242 P.3d 1259, 44 Kan. App. 2d 1042 (kanctapp 2010).

Opinion

242 P.3d 1259 (2010)

Norman L. NELSON and Gloria A. Nelson, Appellees,
v.
STATE of Kansas, DEPARTMENT OF AGRICULTURE, Division of Water Resources, Appellant.

No. 102,695.

Court of Appeals of Kansas.

November 19, 2010.

*1263 Brett W. Berry, of Kansas Department of Agriculture, for appellant.

David M. Traster, of Foulston Siefkin LLP, of Wichita, for appellee.

Before RULON, C.J., GREENE J., and KNUDSON, S.J.

GREENE, J.

The Kansas Department of Agriculture Division of Water Resources (DWR) appeals the district court's reversal of an agency order terminating water right file number 1743 due to abandonment, a right owned during these proceedings by Norman and Gloria Nelson. The DWR argues that the district court erred in finding the agency order unsupported by sufficient evidence and in substituting its own judgment for the agency. Concluding that sufficient evidence supported the agency order, we reverse the district court and remand with directions to reinstate the agency order terminating the Nelsons' water right.

FACTUAL AND PROCEDURAL BACKGROUND

In 1953, Otto C. Eulert filed his application for a permit to divert water from the Saline River for irrigation of his adjoining agricultural real property in Russell County. The application specified and depicted by plat the particular points of diversion from the river and provided that the diversion would be effected by 8-inch centrifugal pump with capacity of 1600 gallons per minute and associated pipeline sprinkler system. DWR approved the application in October 1953, and the approval specified the use for the water as irrigation, specified the detailed location of permissible points of diversion, and limited the quantity of water to be diverted to 600 acre-feet per year. The water right was perfected in 1969 for a maximum quantity of 278 acre-feet per calendar year, at a maximum rate of 965 gallons per minute, for irrigation on specific tracts of land owned by Eulert.

Before the Nelsons purchased the property and associated water right in 2004 from Eulert, they contacted the DWR to investigate the status of the water right. The DWR assistant water commissioner Stewart advised the Nelsons that there was a potential abandonment issue due to nonuse of the water right. The Nelsons completed their purchase but submitted a letter to the DWR reflecting a conversation with Eulert explaining his nonuse. According to that letter, Eulert admitted the nonuse and gave three reasons for it:

"Mr. Eulert said the main reasons that they quit using the WATER RIGHT was that people above him on the river pumped, which left little water for him. He had informed DWR of the problem, but received little relief.
"Another reason was that their sprinkler systems were hand move equipment which were too difficult and expensive to use.
"The third reason was the crop rotation was alfalfa hay on the bottom land which did not require irrigation."

In October of 2005, the DWR initiated proceedings to declare the water right abandoned and terminated. The proceedings were provoked by an investigation and resulting verified report filed by the assistant water commissioner that stated the last reported use of water was in calendar year 1978 and found no beneficial use had been made of the water right for 14 consecutive years between 1979 and 1992, and for 11 consecutive years between 1994 and 2004.

The chief engineer of the DWR designated a hearing officer, who conducted an evidentiary hearing under K.S.A. 82a-701 et seq. Based on that hearing, the officer filed a recommended initial order, and after the parties were permitted to submit comments, the chief engineer issued his 23-page initial order declaring the Nelsons' water right abandoned and terminated. The order contained *1264 detailed findings of fact and conclusions of law, which served as the basis for the declaration of abandonment.

The Nelsons perfected an administrative appeal of the order to the Secretary of Agriculture, who denied their petition for review and ordered the chief engineer's initial order to become the final agency action subject to judicial review. The Nelsons then filed their petition for judicial review to the district court, which found that the agency's declaration of abandonment was not supported by substantial evidence, that the Nelsons had contradicted the prima facie report of the DWR, and that the agency order should be set aside.

The DWR has appealed the decision of the district court.

STANDARDS OF REVIEW

A final agency action or order of the Secretary of Agriculture is subject to judicial review under the Kansas Judicial Review Act, K.S.A. 77-601 et seq. K.S.A. 2009 Supp. 82a-1901(b); Frick Farm Properties v. Kansas Dept. of Agriculture, 289 Kan. 690, 697, 216 P.3d 170 (2009). Although such review is first conducted by district court, on appeal to this court we exercise the same statutorily limited review of the agency's action as does the district court—just as though the appeal had been made directly to this court in the first instance. Hawley v. Kansas Dept. of Agriculture, 281 Kan. 603, 611, 132 P.3d 870 (2006).

Although the Judicial Review Act was substantially amended in 2009, we apply the provisions of the Act prior to amendment because the agency action here was final in August 2006, long prior to the effective date of amendment. See Redd v. Kansas Truck Center, 291 Kan. ___, Syl. ¶ 1, 239 P.3d 66 (2010).

The DWR's sole argument on appeal is that the district court erred in setting aside the agency order due to insufficient support for its findings. With regard to our review of agency fact findings and their sufficiency, preamendment K.S.A. 77-621(c)(7) provided that the agency decision was subject to reversal if it was based on a determination of fact that was not supported by evidence that is substantial when viewed in light of the record as a whole. This statutory language, however, was viewed by case law to have a specific meaning. As explained by our Supreme Court in Redd,

"[c]ase law defined substantial evidence as evidence possessing something of substance and relevant consequence to induce the conclusion that the award was proper, furnishing a basis of fact from which the issue raised could be easily resolved. [Citation omitted.] Under this holding, the Board's preamendment decision should be upheld if supported by substantial evidence, even though there is other evidence in the record supporting contrary findings. [Citation omitted.]" Redd, 291 Kan. at ___, 239 P.3d 66.

OVERVIEW OF STATUTORY FRAMEWORK GOVERNING ABANDONMENT OF WATER RIGHTS IN KANSAS

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Bluebook (online)
242 P.3d 1259, 44 Kan. App. 2d 1042, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nelson-v-state-dept-of-agriculture-kanctapp-2010.