Water Power & Control Commission v. Niagara Falls Power Co.

262 A.D. 460, 30 N.Y.S.2d 371, 1941 N.Y. App. Div. LEXIS 5394
CourtAppellate Division of the Supreme Court of the State of New York
DecidedOctober 1, 1941
StatusPublished
Cited by7 cases

This text of 262 A.D. 460 (Water Power & Control Commission v. Niagara Falls Power Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Water Power & Control Commission v. Niagara Falls Power Co., 262 A.D. 460, 30 N.Y.S.2d 371, 1941 N.Y. App. Div. LEXIS 5394 (N.Y. Ct. App. 1941).

Opinion

McCurn, J.

Plaintiff appeals from a judgment entered upon findings made after trial at Special Term. The action is brought under section 634 of article 14 of the Conservation Law to enjoin the defendant from the use of the waters of the Niagara river by reason of the refusal of the defendant to apply for a license and to pay a rental for the use of said waters. Plaintiff also sought a declaratory judgment.

The judgment dismisses that part of the complaint which seeks an injunction and declares certain rights between the parties, from all of which plaintiff appeals.

It is conceded by all parties that the Niagara is a public navigable river and the Special Term so found. Under a treaty with Canada the maximum amount of water which may be diverted on the United States side of the river is 20,000 cubic feet per second. The defendant is diverting that amount.

The defendant corporation came into existence by virtue of chapter 596 of the Laws of 1918. It was the result of a consolidation at that time of three constituent corporations. The act of incorporation provided that the defendant company should pay a rental upon all waters used by it in excess of 15,100 cubic feet per second. Such a rental is now being paid. (See Niagara Falls Power Co. v. Water Power & Control Commission, 267 N. Y. 265.) It is the contention of the plaintiff here that by virtue of section 634 of article 14 of the Conservation Law it is authorized to notify the defendant to desist from using or diverting the remaining 15,100 cubic feet per second without obtaining a license therefor, and that upon failure or refusal of the defendant to obtain such a license, it may enjoin the defendant from further use or diversion of the waters.

The defendant contends that article 14 of the Conservation Law does not by its terms embrace its use of the Niagara waters, or if it does that the statute is invalid and unconstitutional as to it.

Our first subject of inquiry, therefore, is whether the Legislature has authorized the Water Power and Control Commission to require the defendant to take out a license and to pay a reasonable rental for the use of the Water.

Section 634 of the Conservation Law provides, in part:

Prohibited diversions. Any person, association or corporation who, after being notified by the Commission to desist therefrom, shall, without right lawfully and previously acquired,- wilfully take, [462]*462divert, draw, or make use of, for power or other commercial or manufacturing purposes, waters in which the State has a proprietary right or interest, or in the bed of which, or other real property required for the use of such Waters, the State has such a proprietary right or interest, or if boundary waters of the State, the State has jurisdiction over the diversion or interference with the flow of the same for power purposes solely or concurrently with any other jurisdiction or owner of a proprietary right, without obtaining a license authorizing the same as herein provided. * * *
The use of such water, except when the right to the use thereof has been previously lawfully acquired or is acquired by means of a written license issued pursuant to the provisions of this article, shall be prima jade evidence of the willfulness of the taking, drawing, diversion or use thereof and of the guilt of the person taking, diverting or making use thereof. The Commission may bring actions through the Attorney-General to enjoin violations of this section.”

The preceding sections of article 14 of the Conservation Law provide that certain persons or corporations may apply for a license and that the Water Power and Control Commission may issue licenses under certain conditions.

Under section 634 of the Conservation, Law it is obvious that one may divert and use waters in which the State has a proprietary interest, (1) where such person or corporation so diverting has a “ right lawfully and previously acquired,” or (2) where a license is issued pursuant to article 14 of the Conservation Law. The statute does not require all users of water to take out a license. It excepts those having rights. “ lawfully and previously acquired.” The defendant has refused to take out a license and contends that it has rights lawfully and previously acquired.”

It asserts that its said rights are (1) the common-law right of a riparian owner; (2) that the Legislature by chapter 513 of the Laws of 1892, chapter 477 of the Laws of 1893 and chapter 968 of the Laws of 1896 duly granted to it such a right of diversion; (3) that the license granted to it by the Federal Power Commission upon notice to the plaintiff constitutes such a right.

If any one of defendant’s claimed rights is a right “ lawfully and previously acquired ” then the Water Power and Control Commission is without power to enjoin the defendant from the use of the waters. The Commission can legally act only within the authority delegated to it by the Legislature.

We examine first the defendant’s claim as a riparian owner. Was respondent at the time of the enactment of article 14 of the Conservation Law possessed of the common-law right of diversion [463]*463as a riparian owner, and if so is that a right lawfully and previously acquired ” within the meaning of that statute?

The defendant is employing two means of diversion, viz., the hydraulic canal and the hydraulic tunnel. The canal at the time of the consolidation was the property of the Hydraulic Power Company of Niagara Falls. It was completed in about the year 1858 and has been in use ever since. Water is diverted through this canal upon land owned by the company above the falls and discharged from defendant’s lands at a point below the falls. Property owned by the State and known as Niagara State Reservation lies between the point of diversion and the point of discharge. The Legislature by chapter 968 of the Laws of 1896 passed an act entitled: An act confirming and defining certain riparian rights of the Niagara Falls Hydraulic Power and Manufacturing Company.”

While the parties to this appeal are not in accord as to the validity, construction or effect of this statute, still all do agree that it at least constitutes a consent on the part of the State as a lower riparian owner to the diversion by defendant’s predecessor through this canal. The statute has never been repealed. Without passing upon any other or greater claims asserted for it, we regard it as being at least a consent on the part of the State as a riparian owner to the diversion of waters by the defendant’s predecessors through the canal.

The hydraulic tunnel, formerly the property of the Niagara Falls Power Company, one of defendant’s predecessors, has been in use since about 1895. As in the case of the canal the State Reservation also intervenes between the point of diversion and the point of discharge of water from the tunnel. The Legislature enacted chapter 513 of the Laws of 1892 entitled, “ An act relating to the Niagara Falls Power Company,” and without passing upon any other question of construction raised by the parties herein, we conclude that this statute is at least a consent on the. part of the State as a riparian owner to diversion around the State Reservation.

The defendant, therefore, at the time of the enactment of article 14 of the Conservation Law (Laws of 1921, chap. 579) was possessed of common-law rights of diversion as a riparian owner.

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Bluebook (online)
262 A.D. 460, 30 N.Y.S.2d 371, 1941 N.Y. App. Div. LEXIS 5394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/water-power-control-commission-v-niagara-falls-power-co-nyappdiv-1941.