State Ex Rel. State Engineer v. Commissioner of Public Lands

2009 NMCA 4, 2009 NMCA 004, 145 N.M. 433
CourtNew Mexico Court of Appeals
DecidedSeptember 24, 2008
Docket27,654
StatusPublished
Cited by13 cases

This text of 2009 NMCA 4 (State Ex Rel. State Engineer v. Commissioner of Public Lands) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. State Engineer v. Commissioner of Public Lands, 2009 NMCA 4, 2009 NMCA 004, 145 N.M. 433 (N.M. Ct. App. 2008).

Opinion

OPINION

WECHSLER, Judge.

{1} This appeal arises from a district court subfile proceeding in the course of a general adjudication of water rights in the San Juan River stream system. At issue is the applicability of the federal reserved water rights doctrine to state lands that the federal government granted and conveyed to New Mexico in trust for the purpose of supporting New Mexican schools. As the manager and acting trustee for New Mexico’s trust lands, the Commissioner of Public Lands for the State of New Mexico (the Commissioner) asserted a claim in the underlying adjudication for federal reserved water rights. The Commissioner argued that by legislatively designating specific sections of land to be used for the support of New Mexican schools and conveying them in trust to New Mexico, the United States Congress also impliedly intended to reserve and convey water rights in those lands. The State Engineer of the State of New Mexico (the State Engineer) and several other interested parties opposed the Commissioner’s claim. Ultimately, the district court granted summary judgment in favor of the parties opposing the Commissioner. For the reasons that follow, we affirm the district court’s decision and hold that the federal reserved water rights doctrine does not apply in this case.

HISTORICAL BACKGROUND

{2} Since 1802, the United States Congress has passed enabling acts that have granted federal lands to each new “public-land” state admitted to the Union for the purpose of supporting its schools. Andrus v. Utah, 446 U.S. 500, 506, 100 S.Ct. 1803, 64 L.Ed.2d 458 (1980). Unlike the original thirteen states, many newly created states, including New Mexico, encompassed vast tracts of federal land that were immune from taxation. Id. at 522, 100 S.Ct. 1803 (Powell, J., dissenting). In order to put those new states on equal footing with the original thirteen states in generating revenue for the public good, Congress granted them “a fixed proportion of the lands within [their] borders for the support of public education” in exchange for a “pledge not to tax” the granted lands. Id. at 523, 100 S.Ct. 1803. Following approval of the federal survey, “[t]itle to the sections vested in the [s]tate.” Id. Thereafter, the state became subject to “a binding and perpetual obligation to use the granted lands for the support of public education,” and “[a]ll revenue from the sale or lease of the school grants was impressed with a trust in favor of the public schools.” Id. at 523-24, 100 S.Ct. 1803.

{3} Congress first promised some of the school trust lands at issue in this case in the Organic Act of 1850. See eh. 49, § 15, 9 Stat. 446, 452 (1850). Several decades later, Congress enacted the Ferguson Act of 1898, ch. 489, § 1, 30 Stat. 484, 484 (1898), which granted to the Territory of New Mexico the lands promised in the Organic Act, along with some additional lands. Finally, Congress conveyed the school trust lands at issue in this case to the State of New Mexico in the Enabling Act of 1910, eh. 310, §§ 1, 10, 36 Stat. 557, 557-58, 563 (1910), which authorized the establishment of the State. The Enabling Act included additional lands and transferred to the State the lands that Congress had previously granted to the Territory in the Ferguson Act. See Enabling Act §§ 6-10, 36 Stat. at 561-65. The Enabling Act also imposed specific trust obligations upon the State with respect to its management of the lands, including detailed limitations on the State’s use of the proceeds from the sale, rental, and use of them. See id. § 10, 36 Stat. at 563-64. In this case, the Commissioner relies on these statutes in support of his claim to federal reserved water rights in New Mexico’s school trust lands, and we will discuss each statute in greater detail in our analysis of the merits of the Commissioner’s claim.

PROCEDURAL BACKGROUND

{4} On March 13,1975, the State Engineer commenced the general stream adjudication at issue in this case by filing a complaint in district court. Roughly nineteen years later, on August 13, 2004, the Commissioner became involved in the adjudication by filing a “Declaration of State of New Mexico Trust Reserved Water Rights” (Declaration). The Commissioner’s 'Declaration described the basis upon which he anticipated claiming federal reserved water rights as part of the adjudication. In doing so, the Commissioner claimed, under federal law, the state trust’s entitlement to reserved surface and groundwater rights for approximately 281,155 acres of school trust land within the San Juan Groundwater Basin. After the district court set a briefing schedule regarding the Commissioner’s Declaration, the Commissioner attempted to either withdraw or dismiss his Declaration without prejudice by invoking Rule l-041(A)(l)(a) NMRA. The district court refused to allow the Commissioner to withdraw or dismiss his Declaration, and this Court subsequently denied the Commissioner’s petition for an interlocutory appeal of that ruling.

{5} On June 15, 2006, the State Engineer petitioned for the commencement of a subfile proceeding on the Commissioner’s Declaration. In the subfile proceeding, the Commissioner moved for declaratory relief with respect to his argument that there existed federal reserved water rights in New Mexico’s school trust lands, and the State Engineer moved for summary judgment that no such rights existed in those lands. Shortly thereafter, the United States, along with several other interested parties, intervened in the proceeding.

{6} On February 20, 2007, the district court issued an order denying the Commissioner’s request for declaratory relief and granting summary judgment in favor of the State Engineer. In doing so, the district court concluded that the federal reserved water rights doctrine did not apply to the school trust lands at issue in this case and set forth several reasons why the Commissioner’s claim failed. First, the district court found that the “specific purpose” argued by the Commissioner as the basis for Congress’s decision to convey the trust lands did not, under the applicable federal case law, require a conclusion that it also impliedly reserved water rights. Specifically, the district court reasoned that the application of water to the land was not a direct purpose of granting the land. See, e.g., United States v. New Mexico, 438 U.S. 696, 716-17, 98 S.Ct. 3012, 57 L.Ed.2d 1052 (1978) (explaining that when a potential use of water is not “a direct purpose of reserving the land,” there can be no finding of an implied reservation of water rights). Second, the district court noted that unlike the federal reservations that have been held to include federal reserved water rights, the United States did not retain any ownership interest in the school trust lands. See, e.g., Cappaert v. United States, 426 U.S. 128, 131-32, 138, 96 S.Ct. 2062, 48 L.Ed.2d 523 (1976) (concluding that Congress impliedly reserved water rights in land owned by the United States that was “set aside as a national monument”).

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Bluebook (online)
2009 NMCA 4, 2009 NMCA 004, 145 N.M. 433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-state-engineer-v-commissioner-of-public-lands-nmctapp-2008.