WATER POLLUTION CONTROL RESEARCH SERIES
16090FPW03/70
   Legal Aspects of Water Storage
       for Flow Augmentation
ENVIRONMENTAL PROTECTION AGENCY • WATER QUALITY OFFICE

-------
         WATER POLLUTION CONTROL RESEARCH SERIES
The Water Pollution Control Research Reports describe the
results and progress in the control and abatement of
pollution in our Nation's waters.  They provide a central
source of information on the research, development, and
demonstration activities in the Water Quality Office, in
the Environmental Protection Agency, through inhouse re-
search and grants and contracts with Federal, State, and
local agencies, research institutions, and industrial
organizat ions.

Inquires pertaining to Water Pollution Control Research
Reports should be directed to the Head, Project Reports
System, Research and Development, Water Quality Office,
Environmental Protection Agency, Washington, D. C.   20242.

-------
  Legal Aspects  of Water Storage
       for Flow Augmentation
                    by
       Virginia  Polytechnic  Institute
         Blacksburg, Virginia  24061
                  for  the
            WATER  QUALITY  OFFICE
       ENVIRONMENTAL PROTECTION AGENCY
             Program  #16090  FPW
                '(WP-01087)
               August,  1970
For sale by the Superintendent of Documents, U.S. Government Printing Office
           Washington, D.O., 20402 - Price $1.76

-------
                    WQO Review Notice
This report has been reviewed by the Water Quality Office
and approved for publication.  Approval does not signify
that the contents necessarily reflect the views and
policies of the Water Quality Office, nor does mention
of trade names or commercial products constitute endorse-
ment or recommendation for use.

-------
                                     ABSTRACT

     Enabling legislation for storage of water in federal reservoirs for supply purposes and
quality control through low-flow augmentation includes the Water Supply Act of 1958, the
Watershed Protection and Flood Prevention Act,  and the  1961 Amendment to the Federal
Water Pollution  Control Act. The  Flood Control  Act of 1944 and the Federal Water Power
Act also have possible applicability.

     The enabling legislation and other law defining the operating procedure of the federal
water resource agencies make water supply and water quality storage somewhat dependent
on the provisions of state water law. State  law may affect the acquisition of water rights for
storage and the procedure whereby it is applied to its intended functions.

     The impact of state  law on the acquisition process varies according to whether water
rights are acquired by the  United States or by a private  party. When  private interests are
responsible,  as  in  the case  of  water supply storage in  Corps of  Engineers and Soil
Conservation  Service  facilities, the acquisition  of rights is not as complex as when  a
Sovereign is  involved.  Acquisition  of  water rights by the federal government gives rise to
federal-state  jurisdictional  problems and  several unresolved questions concerning water
rights.

     State law also affects the use  of a natural channel  as a conduit because it defines the
rights of others to  use  this  water after  it is released from storage. A  liberal  policy of
permitting  others to use the stored water would have the potential effect of diminishing the
benefits to the water supply or water quality storer.

     This report was submitted in fulfillment of project 16090FPW between the Federal
Water Pollution  Control Administration and Virginia  Polytechnic Institute.
                                             in

-------
                            TABLE OF CONTENTS


ABSTRACT    	in

SUMMARY AND CONCLUSIONS    	1

RECOMMENDATIONS    	7

INTRODUCTION    	13

ENABLING LEGISLATION FOR FEDERAL WATER SUPPLY STORAGE    ...   .17
    Historical Development    	19
    Water Supply Act of 1958     	21
         Bureau of Reclamation	24
             Nature of Water Rights in Reclamation Projects   	26
             Acquisition  of Water Rights    	29
             Federal Jurisdiction  of Reclamation Water	35
             Water Supply Storage    	37
         United States Army Corps of Engineers	39
             Navigability	39
             Navigational Servitude   	40
             Application of Navigational Servitude	41
             Water Supply Storage    	46
    Watershed Protection and Flood Prevention Act	52
         Water Supply Storage     	53
    Federal Water Power Act	55
         Non-Federal Structures	55
         Federal Structures    	58
    Flood Control Act of 1944    	63

THE IMPACT OF STATE LAW ON THE EFFECTIVENESS OF
WATER SUPPLY STORAGE LEGISLATION   	67
    Introduction    	69
    The Riparian Water Right	71
         Reasonable Use Concept    	71
         Water Subject to  Riparian Rights    	75
             Flood Water	75
             Introduced Waters	77
                  Foreign Water    	77
                 'Stored Water	81
         Water Rights of Municipalities    	82
         Rights to Store Water     	84
         Water Supply Storage in Riparian Jurisdictions   	85
             Acquisition  of Storage Rights	85
                  Prescription    	87
             Conveyance of Stored Water	89

-------
     The Appropriative Water Right	92
         Water Subject to Appropriation	93
         Beneficial Use Concept	94
         Water Rights of Municipalities   	     ...  .95
         Right to Store	96
         Water Supply Storage in Appropriative Jurisdictions    	97
              Acquisition of Water to Store	97
              Conveyance of Stored Water	99

 ENABLING LEGISLATION  FOR FEDERAL WATER QUALITY STORAGE   ...  103
     INTRODUCTION    	105
     Historical Development     	106
     Federal Water Pollution  Control Act Amendment of 1961   	108
     Storage by Various Federal Agencies	110
         United States Army Corps of Engineers	110
         Bureau of Reclamation	111
         Soil Conservation Service	112
         Federal Power Commission    	112
              Surplus Water from Government Dams    	112
              Storage in Private Hydroelectric Power Projects   	114

 THE IMPACT OF STATE LAW ON THE EFFECTIVENESS
 OF WATER QUALITY STORAGE LEGISLATION    	115
     Right to Store Water for Quality Control    	117
         Riparian Jurisdictions    	117
         Appropriative Jurisdictions    	117
     Application of Water to  Dilution Purposes	122
         Dilution of Water and State Pollution Laws	122
         Consumptive Use of Dilution Water    	124
              Riparian Jurisdictions    	124
              Appropriative Jurisdictions     	124

 Footnotes   	126

 APPENDICES	149
     I      Table of Projects Having Water Supply Storage and
              Maps of Reservoirs Using Natural Channels as Conduits     	153
     II     Typical Corps of Engineers Contract	195
     III      Summary of Federal Pollution Control Legislation	20!
     IV      State Law Related to Aspects of Water
              Quality Storage in  17 Western States   	207
     V     Statutes Relating to the Reclamation Law
              of the United States	227
     VI      Title III-Public Law 85-500-July 3, 1958	233
Acknowledgements	235
                                          VI

-------
SUMMARY & CONCLUSIONS

-------
                          SUMMARY AND CONCLUSIONS

                                 Water Supply Storage

     The use of water for supply purposes is the subject of several federal acts. Some of this
legislation  authorizes supply storage in construction  of new reservoir facilities, while in
other cases authority is granted  for utilization of surplus water from existing reservoirs for
this  purpose. The Water Supply Act of 1958 contains the only  specific authorization for
such storage in  federal  structures. The scope of the Act is limited to projects under the
control of the United States Army or the Bureau of Reclamation.  The Watershed Protection
and  Flood  Prevention  Act  allows  the Soil Conservation Service of the United States
Department of Agriculture to engage in this  activity. This purpose  is not stated in the Act
itself but is voiced in the legislative history. In addition to this legislation permitting the
allocation of storage space to water  supply purposes in the design and construction of new
federal  reservoirs, other laws sanction the use of surplus water from  existing federal projects
for this purpose. The Flood Control  Act of 1944 provides for the sale of surplus water from
Corps  of Engineers projects for  supply  purposes. The Federal Water Power Act appears to
provide authority for the  Federal Power Commission to  icense use of surplus water from all
Government dams for nonrestricted  purposes, conceivably including water supply. A recent
amendment to the FWPA also grants authority for the FPC to license parts or all of private
hydroelectric power projects for nonpower  uses.  Again, the language is broad enough to
include water supply storage.

     Limitations on the power of the Government to engage in  water supply storage could
exist in the form  of constitutional  restraints  or  in federal legislation. Decisions by the
United States Supreme Court indicate that the  Constitution places few restrictions on the
right of the federal government  to exercise control over the waters of navigable streams, a
classification potentially encompassing  most of the nation's waters.  As long as  a  project
bears some relation to  navigation, a variety  of  other purposes may also be included, with
these other purposes serving  as the major project functions. The  Constitution allows use of
water  by the Government in connection with such projects without accountability to those
injured thereby and without regard to state created water rights. However, federal statutes
impose some  restrictions on   these powers.  Restraints  are contained in the enabling
legislation  for water supply storage and also  arise  from  other federal laws under which the
agencies responsible for this storage operate.

     These  restrictions  on  federal  water  supply  storage activity primarily  consist  of
recognition  given to water rights as  defined  by state law. In the  case of the Water Supply
Act  of 1958, the intent to recognize state law is evident from the legislative history and the
language of subsection (c). The  pertinent provision of subsection (c) states that the Water
Supply Act shall not  modify section 1 of the Flood Control Act of 1944 nor section 8 of
the Reclamation Act  of 1902, legislation under which the Corps of Engineers and Bureau .of
Reclamation, respectively, operate. Section 1 of the Flood Control Act limits the power of
the federal government to take  navigable waters without compensation. Apparently, as a
result of this provision in  water  supply  legislation, the Corps of  Engineers does not acquire
water  rights related  to  such storage  but  requires the contracting party  to make  this
acquisition pursuant to state  law. Section  8  of the  Reclamation  Act requires the Secretary

-------
 of the Interior to proceed in conformity with state law in carrying out the provisions of the
 Act. Since the water law of those states within the jurisdiction of this act places limitations
 on  the purposes for which water can be used, the question arises as to whether section 8
 gives state law the  authority to control  the  purposes for  which reclamation officials can
 acquire water rights. A negative answer is indicated by Supreme Court decisions that state
 law  has no effect on project operation, that state law cannot compel use of federal property
 on terms other than those prescribed by Congress, and that state law concerning priorities of
 water  use is  not  binding on the United States. The Court has suggested that the proper role
 for state law is the definition of property interests in water for which compensation must be
 made under reclamation law.

     The  Watershed  Protection and Flood Prevention Act  contains a direct provision  that
 the  local  interests  must acquire all necessary water rights pursuant to state  law.  Thus, the
 party contracting for water supply storage with the Soil Conservation Service is in the same
 position relative  to state law as exists in the case of storage in Corps of Engineers facilities.

     The  significance of the requirement that the party desiring .water supply storage must
 acquire his own water rights varies  between the eastern  and  western  states because of
 fundamental differences in  applicable  water law. The riparian doctrine of the eastern states
 appears to present several problems  to  the potential water supply  storer. Water rights are
 restricted to  riparian landowners, and  nonriparian  use  generally is considered  unlawful.
 Municipal water  use, one of the primary purposes contemplated  under federal  water supply
 storage legislation,  is not recognized as a riparian right on nonnavigable streams although it
 has been so recognized on navigable streams. The  right to store water for future use has been
 quite  restricted.  However, these potential limitations  may  not  become  realities in all
 situations. Violation of the abstract  principles of the riparian doctrine does not appear in
 itself to be cause for legal action. Injury, or potential injury in suits for injunctive relief, to
 the  rights of  another is a necessary requirement for such action. Since litigation resulting
 from interference with the  rights of another is the sole method of confirming or denying an
 asserted water right, a given water use cannot be restrained in the  absence  of a  legitimate
 cause for court action. All  water  rights are actually tentative pending this adjudication by
 the  courts.  The  uncertainty  arising  from  this aspect of the riparian doctrine  may be a
 disadvantage in  some instances, but it is a decided advantage for the party possessing the
 power of eminent domain condemnation  (a  municipality, for example)  who  desires to
 contract for  water supply storage in  a federal reservoir. Rather than acquire water rights
 initially, the  party in this position need make such acquisition only if and when a successful
 legal action is maintained,  and only  those rights held by the court to have been damaged
 would have to be condemned. Water users such as  industries, not clothed  with power of
 condemnation, might also benefit from not having to make prior purchases of water rights,
 but the risk of great financial loss exists without this protection.


     The requirement that the party desiring water supply  storage must acquire the related
 rights is more restrictive in the western  states where appropriative water law exists. Water
 rights generally must be obtained  from the state, and the right to make a particular water
use can be denied solely on the grounds that it is not recognized as beneficial use. Normal
water supply purposes usually would be considered as beneficial, but the possibility for  lack
of such recognition exists.

-------
     The fact that appropriative states can specify the purposes for which individuals can
obtain water rights places those parties contracting for water supply storage in reclamation
projects in a potentially favorable position as compared to those contracting  with  other
federal agencies. Whereas, these other agencies require the user to acquire the related rights,
the Government acquires the necessary rights under reclamation law. Sjnce it is unlikely that
state law can control the purposes of reclamation projects, limitations imposed on the water
rights of individuals concerning the use to be made of the water are bypassed.

     In addition to providing some control over the acquisition of water to store for supply
purposes, state law also defines the  rights of others to use this water if  it is released  into a
natural stream channel to be transported to a downstream point of use. A policy  of allowing
extensive use of this water would jeopardize the interests of the storer.  Denial of this right
of using the water released from storage would protect the storer's interest and establish the
right to use natural streams as conduits for the conveyance of water in  which an exclusive
right of use is held. Riparian  law has not recognized this right to use a stream as a conduit.
No recent court decisions concerning the general right of conveyance have been found, but
an  earlier case  recognized  the  right of riparian owners in all water flowing in a stream,
including that added through the efforts of others. The court viewed the act of allowing the
added  water to flow onto the land of another as conclusive evidence of an abandonment of
all  rights  in the water. In contrast  to the situation  in  the eastern  states,  the  law of the
western states does provide protection to the  interests of parties desiring to convey water in
which  they  possess rights through natural  stream channels. The right to use this means  of
conveyance is recognized by both common  and statutory law.

                                 Water Quality Storage

     Authorization for all  federal  agencies  to  store water for  quality control  through
low-flow augmentation is provided by the Federal Water Pollution  Control Act Amendment
of  1961.  Storage  for  this  purpose  also may be required  in private hydroelectric power
projects in accordance  with a 1968 amendment to the Federal Water Power Act.

     The legislation authorizing storage for water quality control  by federal agencies does
not set forth limitations on the power of the Government in relation to this activity, but the
various agencies responsible for the storage must function within the restraints imposed by
other  federal  law. These  restraints consist  of state  water laws  recognized  by federal
legislation. There appear to be two areas where state law has the potential to influence the
effectiveness  of federal  water quality  storage  legislation.  One involves the right  of the
Government to store water  for this purpose in reclamation projects, and'the other concerns
possible adverse use of  the water under state law after it is released from storage.

     State law has an  influence in reclamation projects because of the previously discussed
section 8 of the Reclamation Act. It has been  concluded that this provision does not appear
to have given state law the effect of controlling project purposes. If the courts were to hold
this determination to be within the  jurisdiction of state law, however, the impact on water
quality storage would be significant.  Some of the western states have held that water quality
storage does not qualify as a beneficial use. These states probably would exclude storage for
this purpose from reclamation projects if given this authority.

-------
     Application of dilution water released from storage to other uses appears to fall within
the regulatory powers of state water law.  Since use of this water by others may be adverse
to the goal of quality improvement,  the provisions of state  law regarding such use are
important. Two questions  need to be considered.  The first is whether state law will allow
consumptive use  of such  water  which conceivably could  eliminate the effects  of flow
augmentation through  reduction in quality of flow. The other question is whether polluters
can  be  restrained  by state pollution control law from increasing  pollutional discharges
during releases of stored water.

     State law regulating consumptive use varies between the eastern and western states. In
the eastern states, riparian landowners apparently have the right  to make a reasonable use of
all water flowing by their land. Thus, some diminution in quantity is conceivable. The law
of the western states protects water rights legally acquired  from injury by others until the
water is applied to  its intended use. Therefore, it is unlikely that water appropriated by the
Government  for dilution purposes could be consumed by other parties.  If the state in
question does not view dilution  as a legal water  use, there may  be  some  question as to
whether  this  protection  of appropriative  law would  be available.  In this event,  the
Government would probably attempt to exert exclusive control over the use of such water
on the grounds that the water has the attributes of federal property.

     The question of increased pollutional  discharges during flow augmentation is important
because this action  would eliminate part or all of  the intended  water quality improvement.
Although  increased discharges during releases of stored water would affect adversely quality
improvement, they  could be accomplished without a reduction  in existing stream standards
because of the great assimilative  capacity  available. However, the fact that, irrespective of
water quality standards, pollution control law requires secondary treatment or its equivalent
and also exerts some control over the quantity of discharge,  places limitations on the actions
of polluters beyond those imposed by quality standards. Thus,  in most instances, state law
could prevent increased pollution from compromising the effects of flow augmentation. One
possible exception  exists in the case  of  an industry or other polluter who, because of
location on a small stream, must utilize a waste storage  system and  limit discharges to
periods of relatively high stream flow. It appears that individualized attention by the state
regulatory agency would be required in  this case to prevent discharges during periods when
dilution water was being released.

-------

-------
                                RECOMMENDATIONS

 1. All states devoid of statutory authority providing for the conveyance of stored water
 through natural stream channels without interference from other water users on the stream
 should  give such enactments serious consideration. Without the protection offered by such
 statutes, releases of stored water into natural  streams could sustain diminution in quantity
 and  degradation of quality which would erode the investment in water rights and storage
 facilities. The  use  of artificial  conduits as an  alternative may not be economically feasible
 except  for those users in close proximity to the storage reservoir. The water rights of others
 need not be compromised, and provisions could be included to insure that the conveyance
 of water did not result in injury to those not a party to storage agreement. Enactments of
 this  type would further encourage local  participation in federal reservoirs as authorized by
 water supply legislation.

 2. A provision should be added to pollution control legislation having specific applicability
 to water quality standards  to  be maintained in these stretches of stream subject to water
 quality  improvement by low-flow augmentation. The thrust of this provision would be to
 insure that  the dilution water released into the stream did effect water quality improvement
 and  that the  impact  of such  additional  water was not  muted  by a change in effluent
 (quantity and/or quality) brought about  by the various polluters located on the stream. This
 law  should  provide for  review and possible upgrading of water quality standards in  effect
 during  summer periods  before the dilution water is made available. This legislative change
 could be made as  a state statute, as an  amendment to the federal water pollution control
 legislation, or as part of the federal water quality guidelines.

 3. Several provisions in federal legislation show an intent to recognize state water law and
 state created water rights. The extent of the recognition intended is not clear in some cases
 and  needs clarification.

 A more detailed statement of intent  seems desirable with respect to subsection  (c) of the
 Water Supply Act  of 1958. The  legislative history suggests that the authors of the provision
 were concerned with maintaining some state control over water use, but the final form of
 subsection (c)  makes no direct statement to this effect. Rather, it  incorporates by reference
 other legislation (Section 8  of  the  Reclamation Act of 1902 and sections 1  and 8 of the
 Flood Control Act of  1944) relating  to the protection of water rights created under state
 law. These sections contain vague language making the determination of their specific  intent
 difficult. Thus, improved interpretation of subsection  (c) is dependent on clarification or
 revision to the language of section 8 of  the Reclamation  Act of 1902'and section 1  of the
 Flood Control Act  of 1944.
Some of the uncertainty with respect to section 8 of the Reclamation Act of 1902 has been
removed by  court interpretation.  Supreme Court  decisions have established that state law
will define water rights for which compensation  is to be paid,  but they  have denied the
state's authority to control activities relating to the "operation" of reclamation projects.
The courts have held  on occasion  that certain state statutes relating to the "operation" of a
project are not applicable. A general criteria for judging what are to be considered  as coming

-------
 within the operation of such projects has never been established. Thus the role of state law
 in reclamation projects having water supply and water quality storage needs to be clarified.

 The effect of section  1 of the Flood Control Act of  1944 is also unclear, particularly with
 respect to those states located east of the 98th  meridian. This provision shows an intent to
 preclude the use of the broad constitutional power of the Government to control the water
 of navigable streams in flood control projects.  It declares that the policy of Congress is to
 recognize  the  interests and  rights of the states  to control  the utilization of water. A
 subsection clarifies application of the provision  to flood control projects located west of the
 98th meridian,  but the specific effect of this  section on  such  projects east of this line is
 unclear.

 Western  states usually define water rights in terms of the use  to  be made of the water.
 Congressional legislation exempting the Government from  the use  requirement used in
 defining water rights  would do much  toward  eliminating  conflict where state and federal
 policy differ on the appropriate utilization  of water.

 4. The rights associated with the water supply  storage are  not clearly defined by law. The
 resulting  uncertainty  imposes a  burden  on   parties contracting  for storage  in  federal
 reservoirs where they are required to  acquire water rights related to  such storage. Several
 alternatives would remove or reduce this uncertainty:

 (a)  The Government could acquire the necessary water rights for such storage and pass the
 cost to the user  in the same manner as construction costs are handled presently.  Legislation
 authorizing this procedure could contain a provision requiring all parties claiming injury as a
 result  of the water supply  storage to  present their claims for recovery against the United
 States within a  prescribed time limit, thus eliminating the uncertainty associated with the
 possibility  of new or expanded claims arising after extended periods of time.

 (b)  If water rights acquisition remains the responsibility of the user,  the states should enact
 legislation  to remove  some of the uncertainty  concerning water supply storage  rights and
 facilitate participation in federal projects.
In riparian jurisdictions, the right to store water  for future use has  not  been established
cleaarly by  case  law. These states should declare by statute that storage of flood or other
unused water for supply purposes be a lawful water use when such storage does not interfere
with the rights of  others.  The right could  be made available to riparians and nonriparians
alike, thereby greatly increasing the scope of local participation in federal reservoir projects.

One important  source of uncertainty  concerning water  supply  storage  arises from the
possible  future  ripening  of presently  unused riparian  rights,  giving  rise to unexpected
damage claims or suits for injunction. A partial solution to this problem could be achieved
through a statutory enactment requiring all  parties  having water rights affected by water
supply storage to declare such rights within  a prescribed  time period. Failure to make such a
declaration within the specified time would provide a basis for denying the assertion of such
water right at a future date.
                                             10

-------
Appropriation of water for future uses in the western states should be considered. In order
for municipalities and  other water users to contract for storage in federal projects to meet
anticipated future needs, there should be  a means of obtaining rights for these future uses.
Maximum  use  of water could be encouraged by permitting water appropriated for such
future use  to be used by others on a temporary basis until the original appropriator needed
the water.

Changes in the law  of  prescription  could h'elp  eliminate uncertainty concerning rights to
store water for supply purposes. Shortening of the prescriptive period would allow rights to
be finalized in a more practical period of time than the 20 years commonly used.

5. Specific authorization  for the Government to dispose of surplus water from  all  federal
reservoirs for water supply and low-flow augmentation purposes should be established.
Limited authority already exists in certain instances. In addition, section 4(e) of the Federal
Power Act appears to grant  power  for the Federal  Power Commission  to  license surplus
water from Government dams for power or non-power water uses.  However, this provision
might be subject to difficulties of interpretation, and clarification through enactment of
additional legislation may be necessary.

6. The  policy of requiring power companies to absorb the cost for including water quality
storage in  private hydroelectric  projects should  be examined. The  Government has  the
Constitutional  power to impose such requirements as a condition of granting  authority to
develop hydroelectric power from navigable waters, but there appears to be some question
as to the  propriety of this practice. The cost of federal storage facilities for water quality
control is borne by  the general public through  taxation.  If the costs associated  with such
storage are imposed on a power company  as a capital investment, the  customers of  the
company involved ultimately  will bear  the  burden through increased electric  utility rates.
Thus it is conceivable that the costs for water quality storage in private power projects may
be  paid by a segment of the population differing from  the segment  benefited  by  the
impounded water  quality. If it  is equitable to  meet  the costs of water  quality  storage in
federal  structures from the general treasury then some inequity may exist  in cases where the
cost of water quality storage is imposed on a limited population.

7. Industrial  and municipal  water users  should  not  overlook  the possibility of  obtaining
storage  rights in private hydroelectric projects when federal reservoirs are not available. A
recent  amendment  to the  Federal Water  Power  Act  authorizes  the  Federal  Power
Commission to license  parts  of  such projects for non-power water purposes under certain
conditions.
                                            11

-------

-------
     Most of the dams constructed recently by the federal government have been of the
multipurpose type. The idea of multipurpose construction  is not new but has been given
added emphasis as the need for comprehensive management of the nation's water resources
developed. Storage for navigation, flood control,  irrigation, power generation, and  other
purposes has existed for some time. Still other water uses have been included in recent years
as needs and emphases have  changed. Two of the  latest  purposes to  receive expanded
interest are water supply and water quality control.

     It  has  become evident  that  an adequate water supply  for  a  rapidly expanding
population, a highly industrialized society,  and an expanding agriculture must utilize all
conventional means for increasing the amount of water available. Storage facilities with no
provisions for water supply storage constitute an economic waste a growing economy can ill
afford.  Recognition of this situation has given rise to legislation for expanding the purposes
of federal agency  reservoirs to include water supply storage.

     The  problems  associated  with  waste  water  disposal  develop  in conjunction with
increased  water  demand.  Although  technology exists for the  complete renovation of
polluted water, such  treatment is not economically feasible at  this time. Thus water for
dilution of the treated waste water effluent  becomes both an economic and environmental
necessity. Adequate amounts of water  for dilution  are provided by nature, but the random
patterns of nature do not provide a  dependable  supply during all seasons of the year.
Generally, increased amounts of water for dilution during periods  of low stream flow cannot
be provided economically  by local governmental units. Economies of size and the inability
to localize the benefits suggest water quality storage sponsored by the  federal government
on  a non-reimbursable basis.  Federal  legislation  responsive to  this need has authorized
storage for water quality purposes in federal reservoirs.

     The enabling legislation for  these two purposes.consists of several separate laws and
involves  the jurisdictions of different  federal agencies.  Included  are the  Bureau of
Reclamation, the Corps of Engineers,  the Soil Conservation Service, and the Federal Power
Commission. It is important to note that none of the legislation under consideration, either
for water supply or water  quality storage, creates special agencies  to carry out its provisions.
Authority is provided for  the inclusion of such storage in dams constructed by or under the
authority of existing agencies. Thus the enabling legislation is intimately associated with the
laws governing the activities of these agencies.

     Reliance on the different laws and operating  procedures of various  agencies  can have
important  effects on water supply and water quality storage. The individual agencies were
created or first entered the water resources  field to solve specific problems of the country.
The Corps of Engineers primarily became involved  in water resources because of  the need
for navigational  improvements.  The  Bureau of Reclamation's  involvement  was initiated
through  reclamation  of arid western  land. Originally the  Soil  Conservation Service was
concerned  primarily with  soil  protection  measures.  The  Federal   Power  Commission
traditionally has had responsibility for the licensing of private hydroelectric power projects.
                                            15

-------
Each of these agencies has had its area of influence gradually broadened through the years
since its creation.  Each  agency authorized to construct dams may now impound water for
water supply and water quality purposes. The Federal Power Commission, while having no
authority  to  construct dams, can now license  parts of  private projects  for  non-power
purposes.  However,  restraints  in  the original authorizing legislation are still present and
somewhat affect the activities of these agencies. Operating procedures of each agency also
show evidence of this  early  emphasis  on  management of water  resources for only one
purpose. The legal rights  related to storage  of  water for supply  and quality purposes,
therefore, may vary according to the federal agency involved.

     The  effectiveness  of  legislation for water supply and  water  quality storage would
appear to depend  not only on its own provisions but on  several  other factors. One of the
most important items is the transient nature of water and the property rights which exist
therein. Property  interests are actually rights to use the water and are not  rights in  the
corpus. Certain aspects of these rights vary from state to state, but they are always viewed as
property rights. As such, they  are defined by state  laws  and are protected by the United
States Constitution. The federal legislation under study must operate within the framework
of these property rights  in water.  These rights may determine the  effectiveness of  the
legislation in accomplishing its intended purposes.

     The federal legislation authorizing storage for water supply and water quality control is
affected by  individual water rights in two principal areas. First, the acquisition of water to
store must  give some recognition to  state law. Second,  a party storing water for these
purposes may often use a  natural stream to convey water from the dam to the point of use.
Such water  when  released becomes susceptible to  intervening water rights existing under
state law.  The release of the water supply to the stream could be avoided by use of artificial
conduits, but the cost of such construction would be prohibitive in certain situations. In the
case  of dilution water, the release to the stream is necessary for the water to accomplish its
purpose.

     There are two main objectives to this report. The first is an investigation of the federal
enabling  legislation and the  consequences of storage in the different types of federal
reservoirs. The second is the exploration of the  impact of state water law on the federal
legislation. With respect to the second objective, various alternatives will be explored which
will  permit state law to  complement rather than frustrate the  intent expressed  in the federal
legislation.
                                            16

-------
ENABLING LEGISLATION FOR
FEDERAL WATER SUPPLY STORAGE

-------
                           HISTORICAL DEVELOPMENT

     Although the concept of water supply as a major purpose for construction of federal
water resource projects has received added interest in relatively  recent years, examples of
legislation authorizing federal participation in such storage dates back to an early time in th3
nation's history. Perhaps the first example of such legislation was that authorizing the Corps
of Engineers of the United States Army to  make certain  improvements to  Pennsylvania
Avenue in  Washington, D.  C., and to supply certain public buildings with water.1  The Act
authorized the construction of storage  reservoirs and a water distribution  system, and it
provided for  the  purchase of  necessary  water  rights.2  This and other early  legislation
authorizing water  supply storage by the Corps of Engineers was in the form  of individual
acts of Congress for each project.

     The legislation first authorizing such storage by  the  Bureau  of Reclamation contained
somewhat  broader authority. This act passed  in 1906 was in the form of an amendment to
the Reclamation Act of 1902.3  It authorized the Secretary of the  Interior to  withdraw from
public entry certain lands for townsites in connection with irrigation projects and to provide
water rights for such townsites.

            That the Secretary of the Interior shall, in accordance with the provisions
       of  the  reclamation Act,  provide for  water  rights in amount he may deem
       necessary  for the  towns  established  as herein provided, and may enter  into
       contract with  the proper authorities of such towns, and other towns or cities on
       or in the immediate vicinity of irrigation projects, which shall have a  water right
       from the  same  source as that of said project for the delivery of such water
       supply  to some convenient point, and for the payment into  the reclamation
       fund of charges for the  same to  be paid by such towns or cities, which charges
       shall not  be  less  nor upon terms more favorable  than those fixed by  the
       Secretary  of the Interior for the irrigation  project from  which the water is
       taken.4

     In 1920, a provision  was  added to reclamation  law authorizing the use of water for
"miscellaneous purposes." However, such use could be made of project water only when the
following conditions were present: (1) the water users' association approved; (2) there were
no other practicable  sources for the  water supply available; and  (3) the supply  was  not
detrimental to  irrigation  service.5  There  was  no  definition  given  for  "miscellaneous
purposes," except that it was for purposes other  than irrigation, and therefore conceivably
could have included municipal and industrial water supply.

     The Secretary of the Interior was  authorized specifically by the Reclamation Project
Act of 19396 to enter into contracts for  municipal water supply.

            The Secretary [of the  Interior]  is authorized to enter into contracts to
       furnish water for municipal water supply or miscellaneous purposes:....?
                                           19

-------
However, the Act provided that such contracts were not to impair the use of the project for
irrigation purposes.8

     The  Soil  Conservation  Service, United States  Department  of Agriculture, became
involved in water supply storage with the passage of the 1956 amendments to the Watershed
Protection  and Flood Prevention Act.9 The law is still in effect and currently regulates the
water supply activities of the Service.

     The  Water Supply  Act of  195810  provided blanket authority for the Bureau of
Reclamation and the Corps of Engineers to include water supply storage in their respective
facilities. At present this act serves as the primary authorization for the majority of federal
water supply storage activities.

     Other statutes, while not specifically authorizing storage for  water supply, must be
considered as  part of water supply legislation. Included in this classification are the  Flood
Control Act of 194411 and the Federal Water Power Act.12 The 1944 Act, an amendment
to the  Flood  Control  Act of  1936,13 authorizes the  Secretary  of  the Army  to make
contracts  for  the sale  of surplus  water  from  all  reservoirs under the  control  of the
Department of the Army for  the purpose of water supply.^ Two provisions of the Federal
Water Power Act are of interest because of their  possible relationship to water supply. The
first is a recent amendment which authorizes the Federal Power Commission to license all or
part of a hydroelectric power  project for non-power (and  therefore conceivably water
supply  purposes. 1°  The second provision  is contained in section 4(e) of  the Act  which
provides for the issuance of licenses for the  purpose of  utilizing  the surplus water from
Government dams1^ (again conceivably for water supply purposes).

     All major legislation concerning water supply storage still in effect will be discussed in
separate sections. Included will be the Water Supply Act of 1958, the Watershed Protection
and  Flood  Prevention Act, the  Federal Water Power Act, and the Flood  Control Act of
1944.
                                           20

-------
                           WATER SUPPLY ACT OF 1958

     The Water Supply Act of  195817 is one of the principal laws authorizing water supply
storage in federal reservoirs. The following quotation states the purpose of the Act:

            It is hereby declared to be the policy of the Congress to recognize the
       primary responsibilities of  the States and local interests in developing water
       supplies for  domestic,  municipal, industrial and other purposes and that the
       Federal Government should participate and cooperate  with States and local
       interests in developing such water supplies in connection with the construction,
       maintenance, and operation of Federal navigation, flood control, irrigation, or
       multiple purpose projects.

            In carrying out the policy set  forth in this section, it is hereby provided
       that storage  may be  included in  any reservoir  project  surveyed, planned,
       constructed or to be planned, surveyed  and/or constructed by the Corps of
       Engineers or  the Bureau of Reclamation to  impound water  for present or
       anticipated future demand or need for municipal or industrial water,.... 1&

In making water supply storage available in  Corps of Engineers and Bureau of Reclamation
projects, the Act creates the potential for this type of storage to be included in all major
federal reservoirs.

     Although the Water Supply Act was not the  first legislation to authorize the use of
water stored in facilities  operated by the Corps of Engineers and  Bureau of Reclamation for
the purpose of water supply, it did elevate water  supply from an incidental function to one
of the primary purposes of reservoir construction  by  these agencies.  Another important
feature of the  Act  is the provision for water supply storage  to meet anticipated future
demands. Thus the  Act  is  designed to  reduce future water shortages as well as relieve
existing ones.

     This act has been  viewed  as providing  a  framework within which the Corps  of
Engineers and the Bureau of Reclamation can proceed to develop the best overall use of the
nation's water resources for water supply and other needs as well. It is the intent of the Act
that the  participants  in any  such federal  project share  equitably  in  the  benefits  of
multiple-purpose  construction. Before  construction  or modification  of  any project  to
include water supply storage, the state or local interests must  agree to  pay for the cost of
such provisions. Payment of the cost for storage space allocated to future water supply,  up
to a maximum of 30% of the total estimated cost of the  project, can be deferred. The
interest of the federal government is protected by  the requirement that prior to initiation of
construction or  modification  of a project, state or  local  interests must give reasonable
assurances that they  will contract for use  of  such storage on  a basis  allowing the costs
allocated  to water supply to be  paid out during  the life of the project.19 The Act makes
the following provisions with respect to payment of costs allocated to water supply:
                                            21

-------
       [T]he entire amount  of the construction costs,  including  interest during
       construction, allocated  to water supply shall be repaid within  the life of the
       project but in no event to exceed fifty years after the project is first used for the
       storage of water for water supply purposes, except that (1) no payment need be
       made with respect to storage for future water supply until such supply is first
       used, and (2) no interest shall be charged on such cost until such supply is first
       used, but in no case shall the interest-free period exceed ten years.20

     The Water  Supply  Act of  1958 does not provide for the acquisition of the water rights
related to storage nor is it specific regarding details associated  with the application of the
water to its intended use. These matters and the  other  details are evidently to be resolved
through  the normal operating procedures of the Corps  of Engineers and the Bureau of
Reclamation.  The only direct reference in  the  Act to the laws under which these two
agencies operate is contained in subsection (c).

            The provisions of this section shall  not be  construed to modify the
       provisions of section 1 and section 8 of the Flood Control Act of 1944 (58 Stat.
       887),  as amended and  extended, or  the provisions of section 8  of the
       Reclamation  Act of 1902 (32 Stat. 390).21

     The  effect of subsection  (c)  is  to incorporate  by reference certain  operating
requirements  of both  the Bureau of Reclamation and the  Corps  of Engineers in the
implementation   of  this   legislation.  Section  8  of   the  Flood  Control Act  provides
authorization for the Secretary of the  Interior to construct and operate irrigation works in
connection with Corps  reservoir projects. Sections 1 of the Flood Control Act and 8 of the
Reclamation Act both contain  provisions concerning the protection of water rights existing
under state law.

     It is important to stress that subsection (c), the only reference in the Water Supply Act
to  legislation affecting the  operations  of the  Corps and  Bureau, refers to the major
provisions in previous  legislation  related  to the protection of water rights under  state law.
Although detailed analysis indicates that the actual  impact of these provisions is somewhat
uncertain, the fact that they were incorporated  in the Water Supply Act shows a general
intent  by Congress  that water supply storage  should  not operate  apart from recognized
rights.

     The legislative history further helps clarify  the intent of subsection  (c). In hearings
before a subcommittee  of the Senate Committee  on Public Works, Senator Watkins of Utah
expressed  the idea that a  major concern with regard to the proposed legislation  should be
the maintenance of the validity of appropriative water rights under the law of the western
states.22 The Senator feared that the passage  of legislation authorizing storage in federal
reservoirs for this consumptive use would  interfere with  the traditional state control over
such use unless careful safeguards were included in the legislation. He stated:
                                           22

-------
        Out  our way when they build a reclamation project  they  go to the State
        engineer, first of all, and find out how much water is unappropriated. Whether
        they have water that can be used for the project. They don't go on building a
        dam  and worry about the  water to fill it, so they go and check up and when
        they find there is unappropriated water, then they make a filing in the name of
        the United States, in trust for the people out there, and they comply with State
        Laws. We don't see any reason why the Army Engineers should not comply with
        the same procedure, especially now that they are going to get into  the field of
        furnishing  water  for  consumptive uses. That gives  us additional reason for
        concern. That is what  I am saying. I don't see any reason why anybody ought to
        object, least of all senators from the eastern states, because we are protecting
        the rights of your own people in the future.^

      Senator Watkins was especially concerned about the effect of the proposed legislation
 on the rights of states to regulate and license use of water not yet appropriated and put to
 use. Subsection (c) as it came from  the House of Representatives reads as follows:

             The provisions of  this section  shall not  be  construed to modify the
        provisions  of section  1 and section 8 of the  Flood Control Act of 1944, as
        amended and extended, or the provisions of section 8 of the Reclamation Act of
        1902,  nor shall any storage provided under the provisions of this  section be
        operated in  such a manner as  to adversely affect  the lawful uses  of the
        wa ter [emphasis added]' .24

      Senator Watkins objected  to the last clause  (the  underlined portion) of the House
 version because of  its "vagueness."  He said:

        In the  Western States  it might be interpreted to mean that it applies only to the
        water  which has been appropriated and  for which  the State has given  a
        certificate of appropriation....25

 Because of this element of  vagueness or uncertainty, the Senator suggested that subsection
 (c) be modified by omitting the clause underlined above.  He proposed that an interpretation
 be given  in the legislative history such that the section protected the rights of the states to
 their water,  including the rights to license for future  use of water. The final form, agreed
 upon by  a committee from both the House and the Senate, was that proposed by Senator
 Watkins.  Adoption of this form would seem  to  indicate  acceptance of the concept that the
 Water Supply Act  should contain provisions protecting water rights as defined by state law.
     Although the Water Supply Act makes no direct provisions regarding the procedure for
storing and using water for supply purposes, the legislative history of subsection (c) strongly
suggests that the sponsors of the Act intended such storage to be accomplished without
encroaching on state water rights. The Act in its original form suggests that the authors of
                                            23

-------
the legislation sought by legislative enactment to remove some of restrictive interpretations
given to various sections of federal legislation related to state water rights under which the
federal  agencies operate. It has been shown that this clause was eliminated from subsection
(c) not because of  what  it attempted  to  accomplish  but  rather  to avoid a  restricted
interpretation of only applying to waters now appropriated. It is highly possible that in view
of the legislative history of this Act that the courts in construing the application of sections
1 of the Flood Control Act and 8 of the  Reclamation Act to the Water Supply Act might
give greater recognition to water rights created by state law.
                                Bureau of Reclamation

     Forerunners  of  the  Reclamation Act  were the Homestead Act of 182626 and the
 Desert  Land Act  of  1877.27 These efforts were not entirely successful  because the land
 could not be put to use after it was settled. In an effort to provide for irrigation to make the
 arid lands  productive, Congress passed the Reclamation Act  of 1902,28 which established
 the Bureau of Reclamation to administer the Act.

     The Reclamation Act provided for the sale of public lands in certain states,29 with the
 proceeds of the sales being placed in a "reclamation fund" for  the. irrigation of the arid lands
 in those states. The Secretary  of  the Interior was given certain  powers in effecting the
 reclamation of these lands. These powers include the right to withdraw public lands from
 public entry for inclusion in reclamation projects, the right to enter into contracts for the
 irrigation of lands to be  reclaimed, the  right to acquire rights or  property  necessary for
 projects by purchase or eminent domain, and the right to perform  all  acts and make rules
 and regulations necessary for carrying out the provisions of the Act.30
     The constitutionality of the Reclamation Act was first questioned  in United States v.
Hanson^ 1 in 1909. The defendant contended that the work to be done and expenditures to
be made were  not public or governmental in nature, that the United States could provide
such for lands within territories  but not within the individual  states, that the expenditures
were  not  authorized  by Congress, and that legislative powers had been  delegated to the
Secretary  of the Interior. The circuit court held that all  of the defendant's contentions were
without  merit  and  the Reclamation Act was constitutional  and within the powers of
Congress.

     In  United  States  v. Burley,32  the  defendant contended  that since  some of the
reclamation  project water was to be used on private lands, the Act was unconstitutional and
the Secretary  could not  condemn lands  for  reclamation  purposes.  The circuit  court^S
affirmed the decision of the  district court holding that cooperation between private and
public lands was necessary for  the success of reclamation  and that Congress  did have the
authority to provide for such projects. It therefore appears inmaterial that private lands are
benefited so long as benefits are conferred on public lands.
                                            24

-------
     Language from United States v. Gerlach Live Stock Co.34 indicates that the Supreme
Court views the constitutionality of the Reclamation Act as a settled issue:

       Thus the power of Congress to promote the general  welfare through large scale
       projects for reclamation,  irrigation,  or  other internal improvement, is now as
       clear and ample as its power to accomplish the same results indirectly through
       resort to strained interpretation of the power over navigation.3^

     In the early  days of reclamation, most  projects were authorized through appropriation
bills, but the present method for authorizing projects is by individual acts for each project
and  for  additions to existing projects.  The trend has also  been toward multiple-purpose
projects with a wide variety of water uses represented. Irrigation  not only is no longer the
sole purpose but  may  not be  even the major purpose of project  construction. Priorities
between the different project purposes are generally established by the individual project
acts.36

     These  individual  project acts are  made subject to the general  reclamation  laws  by
provisions  within the acts themselves. There appear to be two basic clauses employed for
accomplishing this purpose.

            In constructing, operating, and maintaining the works authorized by  this
       Act,  the  Secretary  [of the Interior] shall  be governed by the  Federal
       reclamation laws (Act of June 17, 1902 (32 Stat. 388), and Acts amendatory
       thereof or  supplementary  thereto), except as  is otherwise provided  in  this
       Act.37

       [I]n accordance with Federal reclamation laws...except so far as those laws are
       inconsistent with this Act...38

Since the Acts are subject to the general provisions of the reclamation laws, it would appear
that the uses denominated are in addition to, instead of in lieu of,  those uses set forth in the
general laws, with the qualification that conflicts will be resolved  in favor of the specific
project act.

     The irrigation  of arid lands is  intended to be a reimbursable  function of the Bureau of
Reclamation. Accordingly,  no  delivery of  water is made upon  project completion until
repayment contracts are negotiated with the proposed recipients of irrigation water.3^ In
some cases,  individual  project acts provide that projects will not be constructed  until
contracts  have been executed to insure  payment of appropriate charges.40 These charges
consist  of  construction  costs  allocated   to   irrigation storage^l  and  operation and
maintenance costs  attributable thereto.42 The charges  are apportioned according to the
productive value of the  project lands.43 Variations in  reclamation law have given rise to
many  different  repayment plans.  Individual  project acts  often provide for repayment
tailored to  the  circumstances  of  that project.  However, in  most plans  the repayment
                                            25

-------
 obligation  is  in annual  installments  over  a  period  of years varying within limits set by
 reclamation law.44 Failure  to  make the annual payments results in the stoppage of water
 delivery and may result in cancellation of related rights.45

     Other  purposes  included in reclamation  projects may be  either  reimbursable or
 nonreimbursable. Industrial  or municipal water supply is a reimbursable item, while flood
 control, navigation, and low-flow augmentation are nonreimbursable. The cost allocation to
 nonreimbursable storage is the prerogative of the Secretary of the Interior.46

     When construction is  completed, responsibility  for management and  operation of
 reclamation projects is transferred to  water users' associations subject to the conditions in
 the enabling legislation and  the rules and regulations as established  by the Secretary of the
 Interior. Title to physical facilities in reclamation projects remains in the Government unless
 otherwise provided by  Congress.4^
 Nature of Water Rights in Reclamation Projects

     A general statement  concerning the  nature of water rights in reclamation projects  is
 contained in section 8 of the Reclamation Act of 1902.

       Provided, That the right to the use of water acquired under the provisions of
       this Act shall be appurtenant to the land irrigated, and beneficial use shall be the
       basis, the measure, and the limit of the right, [emphasis added] ^8

     Section  8 of the Reclamation Act,  in reality, has adopted language very similar to that
 used  in  many western states to describe water rights. The basic  requirement is  the
 appropriation of water to  beneficial use, and that use is the basis,  measure, and limit of the
 water right. Before section 8 received specific interpretation by the courts, the United States
 was viewed as the appropriator of reclamation project water in United States v. Haga.4^

       Perhaps it should be added at this  point that the government is an appropriator
       of a large amount of the natural  flow  of Boise river for direct use upon the
       project lands,.... Its rights as an appropriator are subsequent to those of the New
       York  Canal  Company  and  of  other  large  ditch  companies  diverting
       water...farther down the river,.. .50

     A 1924  Supreme Court decision (in which the Gc srnment was held  to have the right
to recapture  seepage from project lands)  appears to reaffirm  the previous  holding of the
lower court that the United States rather than the water user is the  legal appropriator.
       The defendants insist that when water is once used under the appropriation it
      cannot be used again, - that the right to use it is exhausted. But we perceive no
                                           26

-------
       ground for thinking the appropriation is thus restricted. According to the record
       it is intended to cover, and does cover, the reclamation and cultivation of all the
       lands  within the project.  A second use in accomplishing that object is as much
       within the scope of the  appropriation as a first use is. The state law and the
       National  Reclamation Act both  contemplate  that the  water shall be so
       conserved  that it  may be subjected to the largest practicable use. A further
       contention is  that the plaintiff [U.S.] sells the  water before it is used, and
       therefore has no right in  the seepage. But the water is not sold. In disposing of
       the lands  in small parcels, the plaintiff invests each purchaser with a right to
       have enough water supplied from the project canals to irrigate his land, but it
       does not  give up  all control over the water or to do more than pass to  the
       purchaser a right  to use the water so far as  may be necessary in properly
       cultivating his  land. Beyond  this  all rights incident to the appropriation  are
       retained by the plaintiff, femphasis added] ^

This  language seems  to  indicate  that the  Court viewed, the  landowners  not as the
appropriators  but  rather as possessors of special permission to make a restricted use of the
Government's appropriation.

     However, the language of the Court in Ickes v. Fox,52 a 1937 case, suggests that water
rights are appurtenant to the land irrigated and  become the property of the land owner.

       Appropriation  was made not for  the  use  of the government, but, under  the
       Reclamation Act,  for the use of the land owners; and by the terms of the law
       and of the contract..the  water-rights became the property of the land owners,
       wholly distinct from  the property  right  of the government  in the irrigation
       works....  The government was and remained simply a carrier and distributor of
       the water...with the right to receive  the sums stipulated in  the contracts as
       reimbursement for the cost of construction and annual charges for operation
       and maintenance of the  works.  As security therefor, it was provided that the
       government should have a lien upon the lands and the water-rights appurtenant
       thereto-a  provision  which  in itself imports that the water-rights belong to
       another than the lienor,...to the land owner.^3

     The opinion  of the  Court  in  the Ickes case  regarding the nature of water  rights  in
reclamation projects seems to  be  predicated on both the provisions of  the Reclamation Act
and an interpretation of applicable state law.

       Acquisition of the government title  to a parcel of land was not to carry with it
       a water-right;  but all non-navigable  waters were reserved for  the use of the
       public  under the laws of the various arid-land states [the Court was referring to
       the Desert  Land Act].... And in  those states, generally, including the State of
       Washington, it long has been established law that the right to the use of water
       can be acquired only by prior appropriation for a beneficial use; and that such
                                           27

-------
        right  when  thus obtained is a property right, which,  when  acquired for
        irrigation, becomes, by state law  and  here  by  express  provision  of the
        Reclamation  Act as  well, part and parcel  of the  land upon  which  it is
        applied.^

     The decision of I ekes (as to the landowner having the property right in the water) was
 adhered to in the 1945 case of Nebraska v. Wyoming.55 The Court used this language in
 describing the effect of section 8 of the Reclamation Act:

            We have then  a direction by Congress to the Secretary of the  Interior
        [section 8] to proceed in conformity with state laws in appropriating water for
        irrigation purposes. We have a compliance with  that direction. Pursuant to that
        procedure individual landowners have become  the appropriators  of the  water
                                                           CYJ
        rights, the United States being the storer and the carrier.^0

     The decisions  of  I ekes and Nebraska  appear at  first  to  overrule  the  earlier  court
 decisions regarding the  interest  of the United States in reclamation project water. However,
 the Court did not view the earlier cases (United States v. Haga57 and  Idev. United States58)
 as  being in conflict with the decisions of Ickes and Nebraska.  Haga  is cited  with  approval for
 a different proposition  in Nebraska but is  not mentioned with regard to the interests of the
 parties in project water. The Court seemed to distinguish the Ide case with the following
 language:

        That principle [underlying Ide] is that although the water rights belong to the
        landowners,  the  owner of  the  irrigation project  has  an interest in  the
        appropriative rights  to  the extent of obtaining  the fullest  use of the water for
        the  project.   It  may, therefore,  retain  control  over  the   water  until
        abandonmen t. 59

     This  interpretation of  the  Ide case indicated that  the rights of the United States as a
 storer and carrier are not necessarily  exhausted upon delivery of project water to the user.
 The effect of the case  is to  extend these rights to to seepage from  irrigated project  lands.
 Therefore, Ide is viewed as being consistent with  the  later decisions  in spite of the absence
 of  specific language  limiting the rights of the Government to those  of a storer and  carrier.60
     Although the controlling decisions of the Supreme Court label the user of reclamation
project  water as the appropriator, it is  evident that his appropriation is of a  restricted
nature.  His water rights are subject to the restraints contained in reclamation law and in his
individual contract with the  Bureau of Reclamation. There  are several general conditions
upon which his rights are dependant.  One is the proper payment of all  charges contained in
the repayment contract.61 Beneficial use serves as'a second limitation on all water rights
under reclamation law.62 |n the case  of irrigation, the water right can be appurtenant to a
limited  amount of land.63 All water rights are  held subject to the availability of water, as
                                            28

-------
the  Government assumes no  liability arising from water shortages  or interruptions of
service.64

     In the event of a water shortage the Secretary of the Interior possesses special powers.
This provision  in reclamation law emphasizes a basic difference between the rights of the
user of reclamation project water and those of the holder of a normal private appropriation.
The Secretary possesses wide powers of discretion to apportion the available water between
users during  such  periods of shortage. The Court in Arizona v. California65 discussed the
power of the Secretary to apportion in times of  shortage the water of the Colorado River
pursuant to the Boulder Canyon Project Act.66 The opinion stated that while the Secretary
had to follow standards set out in the Act, he was free to choose among recognized methods
of apportionment, or to devise reasonable methods  of his own.67 The established principles
such as pro-rata sharing or division by  the doctrine of equitable apportionment were seen as
sources of guidance but were not held as binding  on  the Secretary in the exercise of his
powers of discretion.68 Thus,  the users of reclamation project water cannot  rely on the
appropriative doctrine  as  enunciated  in  many  states that the right,  first vested  is  the
superior right.
     Although all  rights  in reclamation project water  are held subject to these qualifying
features, the party who enters into a contract with the Bureau of Reclamation does receive a
conditioned water right which continues as long as the storage space concerned is physically
available. The following  contract provision is representative of the assurance given for the
continuance of such water rights:

            The District and its  constituents shall have the right to use the project's
       available municipal  water supply during the  repayment period  subject  to
       payment on a current basis of such charges as are provided for in this contract.
       Upon completion of repayment of the District's repayment cost obligation,
       together with the interest thereon, the District shall  have a permanent right to
       the use  of that portion  of  the project allocable to  municipal water supply
       purposes.^
Acquisition of Water Rights

     Although  the appropriated water right in reclamation project water may not belong to
the United States,  the acquisition of water rights for such projects is the responsibility of
the Government. The acquisition process  is regulated primarily by section 7 and 8 of the
Reclamation Act of 1902.70 Section 7 provides for use of eminent domain condemnation in
federal  reclamation  projects,  while section  8 is concerned with the role of state law in
acquisition proceedings.
                                            29

-------
Section 7

     This section reads as follows:

            That where in carrying out the provisions of this Act it becomes necessary
       to  acquire any  rights or property, the Secretary  of the  Interior is hereby
       authorized to acquire the same  for the  United States by purchase or by
       condemnation under judicial process, and to pay from the reclamation fund the
       sums which may be needed for that purpose, and it shall be the duty of the
       Attorney-General of the United States upon every application of the Secretary
       of  the Interior,  under this Act,  to cause  proceedings to be commenced for
       condemnation within thirty days from the receipt of the application at the
       Departmen tof Jus tice. ? ^

Although section 7  of  the Reclamation Act  of  1902  did provide for eminent domain
condemnation of property,  it did not  authorize the Government to take possession of the
property before the proceedings were complete. Subsequent  legislation  in 1931  provided
that  the  United States  could  take possession  of property while the eminent domain
proceedings were still  in progress, with  the provision that the Government was bound to pay
the  amount finally awarded.72  Later acts  have been  held  to allow the United States to
physically  seize  property prior  to  instituting  proceedings  in eminent  domain,  with the
landowner being allowed to  sue under the Tucker Act7^ for damages caused by the seizure.

     The  United States  Supreme Court  in Dugan v. Rank7^ held that  the  Rivers and
Harbors  Act of 19377^ was an act authorizing such seizure. The case arose  out of the
construction of Friant Dam  within the Central Valley Project, a reclamation project located
in  California. The Government had  been unable  before the  construction  to effect
agreements  with several  individuals who were  to be  affected  by the erection  of  the dam.
These landowners  were the plaintiffs  in the case and alleged that the  diminution in the
amount of water reaching their  property caused by the dam was in effect a taking of  their
property without due process.  An injunction was sought  against  the  United  States and
reclamation officials. Relief was granted in the lower court, but the Supreme Court reversed,
holding that the Rivers and  Harbors Act especially provided for physical seizure. The Court
in its opinion made reference to the following clause from the Rivers and Harbors Act:
       [T]he  Secretary  of the Interior...may acquire by proceedings  in  eminent
       domain, or otherwise, all lands, rights-of-way, water rights, and other property
       necessary for said purposes: ...7^

The court pointed out that this clause was broader than section  7 of the Reclamation Act
(which provided only for  purchase and eminent domain condemnation) and that physical
seizure and  inverse  condemnation  were available to the United States under  this later
provision.
                                           30

-------
            The  Court  of  Appeals correctly held  that  the United States  was
       empowered to acquire the water rights of respondents by physical seizure. As
       early as 1937, by the Rivers and Harbors Act, [citation omitted] the Congress
       had provided that the Secretary of the Interior 'may acquire by proceedings in
       eminent domain,  or otherwise, all lands, rights-of-way, water rights,  and other
       property necessary  for said purposes....' Likewise, in United States v. Gerlach
       Live Stock Co.?' [citation omitted] this Court implicitly recognized that such
       rights  were subject  to seizure  when we held that Gerlach and others were
       entitled to compensation therefor.  The question  was specifically  settled in
       Ivanhoe Irrigation District v. McCracken/& [citation omitted] where we said
       that such rights could be acquired by the payment of compensation  'either
       through condemnation or, if already taken, through action of the owners in the
       courts. '79
     It is clear that the United States must pay for any rights or property it acquires for use
in reclamation projects.80  The problem  arises in determining what constitutes a "taking"
for which compensation is  due. It  is obvious that a  cutting off or a diminution of a water
supply is a taking, but there are situations where  the answer is not so apparent, as evidenced
by the following cases.

     In  Wolfsen v. United  States,^  the United States took the  return flow of the San
Joaquin River, which flowed by plaintiff's property, and substituted therefor water from
the Sacramento  River. It was plaintiff's  contention that he had riparian rights in the San
Joaquin waters and that since riparian rights did not attach to foreign water in a stream, the
United States had actually  taken his riparian rights  from him. The Court held that even if
the plaintiff had a riparian  right in the water (a matter about which there was some doubt),
and that if the right was in fact extinguished, plaintiff still had the obligation of the United
States to supply substitute  water in the same amount. Neither right was deemed superior to
the other, and plaintiff received  no compensation.

     In  John Horstmann Co. v. United States,82 plaintiffs were the owners of lakes from
which they took soda for  commercial sale. After the construction of the Truckee-Carson
Reclamation Project, the level of the water rose continuously until  the lakes were useless as
a source of soda supply. It was plaintiff's contention that the rise was the result  of the
construction of a canal within the  project. There was no evidence of negligence on the part
of the United States. The  Supreme Court  held  that there had been no "taking" and that
plaintiffs were not entitled to any compensation or damages. The Court made this statement
concerning the "taking" of property by the Government:  '
       It is to be remembered that to bind the government, there must be implication
       of a contract to pay, but the circumstances may rebut that implication. In other
       words, what is done may be in the exercise of a right and the consequences only
       incidental, incurring no liability.  ^
                                           31

-------
It  was the opinion of the Court that it would  border on the extreme to hold that the
Government intended a taking  by a consequence which no human  knowledge could even
predict would occur.

Section 8

     The other principal provision in reclamation law concerning acquisition of water rights
is contained in section 8 of the Reclamation Act of 1902.


            That nothing in this Act shall be construed as affecting or intended to
       affect or to in any way interfere with the laws of any State Territory relating to
       the control, appropriation, use, or distribution of water used in irrigation, or
       any vested right acquired thereunder, and the Secretary of the  Interior, in
       carrying out the provision of this Act, shall proceed in conformity with such
       laws, and nothing herein shall in any way affect any right of any State or of the
       Federal Government or of any landowner, appropriator, or user of water in, to,
       or from any interstate stream or the waters thereof: Provided, That  the right to
       the use of water acquired under the provisions of this Act shall be appurtenant
       to the land irrigated, and beneficial use shall be the basis, the measure, and the
       limit of the right.84
     Of fundamental  importance to the  operations of the Bureau of Reclamation is the
meaning of the phrase "shall proceed in conformity with such laws." A broad interpretation
of this part of section 8 conceivably could have required the federal government to acquire
water rights in complete accord with all applicable state law, thus placing the Government in
an  equal  position  with   individuals. Such  an  interpretation  could  have  far-reaching
consequences. In the western states, an individual's right is dependent on the use made of
the water. If  the federal government were to be placed on an equal footing with individuals,
the acquisition  of water rights for a reclamation project would be dependent on the purpose
or purposes of the project. This  dependence on project purposes would be limiting where a
reclamation project contemplated water uses in violation of state law. The net effect would
be to make reclamation project purposes dependent on individual state law and not on the
intent of Congress.

     An early decision by a lower federal court in Burley v. United Statej>85 supported such
a broad interpretation'of section 8.
            The act of June 17, 1902, not only recognizes the Constitution and laws of
       the state providing for the appropriation of its waters and the reclamation of its
       arid lands, but it requires  that the Secretary of the Interior, in carrying out the
       provisions of the act, shall  proceed in conformity with such laws.86
                                            32

-------
This language suggests that state law will govern all aspects of the appropriation of water for
reclamation projects and  will control  the  operation of such projects. It should  be noted,
however, that the holding of the case was  not dependent on this construction of  section 8.

     The  court in United States v. Union Gap  Irrigation Company^? also gave possible
support to the interpretation that the  United States has the same appropriative rights as do
individuals. The following quotation states  that the Government  does  share  with  the
individual the requirement that the extent of a water right is measured  by beneficial use:

            The government, like an individual, can appropriate only  so much water as
       it applies to beneficial uses, and can only restrain a diversion which operates to
       its prejudice.^

However, the court does not indicate whether the basis of this statement is a recognition of
state law  or  an application of the provisions  of federal reclamation law.  Also without
explanation  is the term  "beneficial uses." The question which needs to be answered  is
whether "beneficial uses" will  be defined by state law or by independent determination in
the federal courts. Considerably different results might arise in the two situations.

     State law varies regarding the rights of the federal government as an appropriator. In
some instances, state law  requires governmental  compliance with the  same procedures used
by individuals.

       [I]n order for the government of the United States  to acquire the right to the
       use of waters flowing in the natural stream in this state, it must proceed  as an
       individual to make an appropriation in  compliance  with  the laws  of the
       state.... femphasis addedJ&&

The significance  of  a judicial  decision  of this type  would depend  largely on  the
interpretation given to section  8  by the federal courts.  Other states have elected not to seek
compliance with state regulations and have provided  special procedures for governmental
appropriation in reclamation projects.9®
     Although  an interpretation  of section  8 requiring strict compliance with state  law
regarding  appropriation apparently  is accepted in some states and  received preliminary
recognition  in lower federal court  decisions, the United States Supreme Court in  Ivanhoe
Irrigation  District v. McCracken^ 1 and Nebraska v. Wyoming92 held that a more restricted
interpretation is the correct one. In the Ivanhoe case, the Court considered a decision of the
Supreme Court  of California  where that  court  had interpreted  section 8 to mean that
"whenever there  is a  conflict  between the  Federal  Reclamation  laws and  the laws of the
State, the law of California must prevail."93 Accordingly, the California court had found
that application of section 5 of the  Reclamation Act  relating to size limitations on the lands
of  project participants would be  unconstitutional  and therefore held certain contracts
                                           33

-------
between the United States and water users to be invalid. The Supreme Court in reviewing
this case gave the following interpretation of section 8:

        As we read [section]  8, it merely requires the United States to comply with
        state law when, in the construction and operation of a reclamation project, it
        becomes necessary for it to acquire water rights or vested interests therein. But
        the  acquisition of water rights must  not be  confused with the operation  of
        federal projects.  As the Court said in Nebraska v. Wyoming [citation omitted],
        'We do not suggest that where Congress has provided a system of regulation for
        federal projects it must give way before an inconsistent state system. ^4
     This statement from  I van hoe sets forth the important principle that state law will not
control the operation of reclamation projects. Unresolved, however, is a precise definition of
what functions  are  to be  considered  "operational"  in a reclamation  project. Several
decisions  have been  reached  regarding individual fact situations, but no clear criteria have
emerged.  For example, it has  been  held that section 5 of the  Reclamation Act (which
concerns  the  size of  lands  to  be  irrigated  by reclamation project water) is  a binding
regulation to be followed in the operation of a project regardless of state law concerning this
issue.95  |n  Dugan v.  Rank,96 the court held  that to' require the United States  to enter a
physical solution  (the California method of apportioning water between claimants who have
valid claims  to the use of the water^?) in accordance with the state law would interfere with
the operation of the reclamation project  involved. The holdings in these cases suggest that
the determination of the purpose of a reclamation project would be an issue coming within
the meaning of "operation of reclamation projects" and would therefore be beyond the
influence of  state  law as invoked and protected  by section 8.

     Further support for  the position that state law  will not influence  the purposes of
reclamation  projects  is given by this additional language in the Ivanhoe opinion:

            Also  beyond challenge is the power of the Federal Government to impose
       reasonable conditions on  the use of federal funds, federal property, and federal
       privileges,  [citations omitted]  The lesson  of these cases  is that the Federal
       Government may establish and impose reasonable conditions relevant to federal
       interest in the project and to the over-all objectives thereof. Conversely, a State
       cannot compel use of federal property  on  terms other than those prescribed or
       authorized by Congress, [citations omitted]9$
     In  1963, the Supreme Court  restricted  further the extent  to which state  law  can
influence reclamation projects pursuant to section 8 of the Reclamation Act.

       Petitioner seems to say that [section] 8 of the Reclamation Act of 1902,  32
       'Stat.  390 [sic], 43 U.S.C.  section 383, requires compliance  with California
                                           34

-------
       statutes relating to preferential rights of counties and watersheds of origin and
       to the priority of domestic over irrigation uses. However, [section] 8 does not
       mean that state law may operate to prevent the United States from exercising
       the power of eminent domain to acquire the water rights of others.... Rather,
       the effect of [section]  8 in such a case is to leave to state law the definition of
       the property interests, if any, for which compensation must be made.""
     In  conclusion,  the  exact  effect of section 8 on the acquisition of water rights for
reclamation projects is  somewhat unclear.  The opinions of the  Supreme Court  have
established very clearly that the "operation" of reclamation projects is independent of state
law. The role of state law appears to  have been  relegated to the definition of compensable
water rights. The  roles of federal and state  laws usually are viewed as being defined thus
avoiding problems of overlapping jurisdictions. Unresolved are those questions wherein state
law defines water  rights in terms of the use to be made of the water, an area likely to come
within the meaning of project operation.  Later sections of this report will discuss this
jurisdictional area which has been judicially defined as the province of both federal and state
law.
Federal Jurisdiction of Reclamation Water

     The point of delivery  marks the limit of federal responsibility for the water and the
beginning of the responsibility of the contracting water user. Thus any loss occurring after
delivery is a loss to the water user and not to the Government.

     In the absence of provisions in general reclamation law, the place of delivery is usually
specified in the contracts between the Government and the user. Examples of such contract
provisions are found in Reclamation Repayment Contracts.W® The following excerpt from
the repayment contract between the  United  States and the A and B Irrigation District as
part of the North Side Pumping Division,  Minidoka Project, Idaho, identifies the point of
delivery with respect to that project:

            Stored water to which the [A and B Irrigation] District is entitled under
       this contract will be delivered and measured at the outlets of the reservoir in
       which the water is actually stored.... The  District will bear all losses chargeable
       to such water between those outlets and  the District's point of diversion from
       theriver.101

     A considerably different agreement is contained in the contract between the  United
States and  the Almena  Irrigation District No.  5 as part of the Missouri River Basin Project.
        Water will be delivered at the Almena Diversion Dam and for the purpose of
        determining the amount of water delivered to the [Almena Irrigation] District
                                            35

-------
       [No. 5] and the charges to be paid therefore,...such water will be measured at
       said Diversion Dam .... 102

In this situation losses between the storage facility and the downstream diversion dam  are
not chargeable to the water user.

    The policy concerning establishment of points of delivery appears quite flexible. The
location of such points in  any  given case will depend on  the facts of that case and will be
governed by contractual arrangements agreed to by the United States and the water user
involved.

    Although  delivery  of  reclamation project water  to the user  may terminate  the
responsibility  of the Government to the user,  it should be  noted that the  rights  of  the
United States  in the water do not necessarily end  at this time. The courts from an early
period have held that the Government may  recapture seepage  from  project lands and reuse
the water.  In  Ramshorn Ditch  Co. v.  United States,103 it was held that the Government
could recapture seepage, provided there were no intervening rights. The right of recapture
also was upheld in  United States v. Haga104 and in Ide v. United States,105 a Supreme
Court decision.

    The court  decisions  generally have upheld the right to  recapture,  but they have
indicated that  the United States may lose its right to the water through abandonment.  For
example,  in the R'amshorn case, the right was conditioned  on the non-existence of
intervening rights. The court did not suggest what might constitute  "intervening rights." In
support of its  statement,  the  court cited  three Colorado cases, including Beaver Brook
Reservoir & Canal Co. v. St. Vrain Reservoir & fish Co.1°6 The latter case specifically held
that an appropriation  of  abandoned  water, made  during the time of the abandonment,
would  defeat  the right of the previous  appropriator to recapture the water. The other
decisions allowing recapture  appear to  be based  on a determination that the water involved
had not been  abandoned.  The following quotation from the Ide case discusses a situation
where abandonment had not taken place but the language of  the Court does not preclude
the possibility  of abandonment in other circumstances:

       When it  [the seepage]  began to appear in appreciable quantity the plaintiff's
       officers took up the formulation of plans for utilizing  it. The matter was much
       considered, for like problems were arising in connection with other projects.
       The  advice  of army engineers  was sought; plans were  recommended and
       adopted; necessary expenditures  were  authorized,  and the  work was  then
       undertaken.   That on  the  ravine [from which  defendant  claimed  an
       appropriation] was begun in 1914 [seepage had become sufficient to produce a
       small but appreciable flow in the ravine in  1910]. At no time was there any
       purpose  to abandon the seepage. On the contrary,  the plaintiff needed and
       intended to  use all of  it for project purposes. This was stated and restated in
       various  official reports, including some by  the  Director of  the Reclamation
                                           36

-------
       Service and the Secretary of the Interior and was well understood by the project
       officers.  In these circumstances it is very plain that the plaintiff's right in the
       seepage was not abandoned.
     In an  apparent  attempt to guard against  circumstances likely  to  be construed as
abandonment of seepage water, the Bureau of Reclamation has made the recapture of this
water subject to the terms of the individual contracts between the United States and the
water users. The contract with the North Side Pumping Division, Minidoka Project, Idaho,
contains a provision typical of those now in use.

            The United States  does not abandon  or relinquish any  of the  waste
       seepage, or return  flow  waters attributable  to the irrigation  of  the lands to
       which water is supplied under this contract.  All such waters are  reserved and
       intended to be retained for the use and benefit of, the United States as a source
       of supply for the project. 108

     The effect of a contract provision of this type is shown in the case of Bean v. United
States. 109 The  court  held  that the water involved was expressly retained by the United
States under the applicable contracts and denied  the  plaintiff's claim that the  water had
been abandoned. The court stated that the previous dumping of the seepage into a  river did
not constitute abandonment of the Government's right to recapture water in the future and
exclude it from becoming part of the stream. The  dumping merely signified that the water
discharged into the stream had  been in excess at  the time of  its disposal and only that
quantity of water dumped into the river had been abandoned.
Water Supply Storage

     Modern reclamation projects often include storage for water supply. In some cases this
storage  can be  the primary  purpose and on occasions  may  be the only reimbursable
function.

     Prior to the enactment, of the Water Supply Act of 1958, storage for supply purposes
was generally an incidental function of any given project development. With the passage of
the  1958  Act,  water supply  for  municipal  and  industrial  purposes  was escalated  in
importance. However, expanded activities by the Bureau of  Reclamation in the water supply
field have not required any major change in its mode of operation.

     The  original  reclamation  law  still  provides the  basic  framework  for   project
implementation.  Pursuant  to  the  Supreme Court's interpretation  of this  law,110
municipalities and  industries contracting  for water  supply  storage  will become  the
appropriators of project water under state law. The rights accruing to such appropriators
will  be conditioned on the  restraints in  reclamation  law and the  individual  water use
                                           37

-------
contracts. These conditions include, among others, the payment of all  costs allocated to
such storage.

     In the  past,  acquisition  of  water rights  for  reclamation  projects  has been  the
responsibility of the Government.111  This  obligation does not appear to be affected by
variation in project purposes. The acquisition process may be complicated because water
rights in the western states are defined in terms of the nature of the use to be made of the
water. Resolution of this problem area may have  to await further judicial interpretation of
the effect of state law on project implementation.

     Most of the detailed aspects of water supply storage are not enunciated in reclamation
law  but are set forth in the contracts between the water users and the United States.  The
federal  legislation  merely  establishes  the  organizational  structure  and  general  legal
framework within which storage for this and other purposes can be accomplished. The terms
of the  legislation appear to be broad enough to  allow resolution of the problems of each
specific case on an individual basis.

     The fact that many of the details of project construction and operation fall within the
province of contractual arrangements  suggests  a  review of  the  major provisions of a
representative contract. Although no contract can be considered as typical, the major terms
in the contract for the Norman Project, Oklahoma, will be examined.

     The  Norman  Project is one of  the first to have municipal and industrial water as the
only reimbursable  project function.112 The principal  parties to the'contract are the United
States and the  Central Oklahoma Master Conservancy District, a central operating, agency
consisting of those municipalities desiring water supply storage. The individual  cities have
contracts with the District, thus relieving the United States of the necessity of entering  into
a separate contract with each water user.

     The  contract provides for  water  supply storage adequate to meet the needs of the
municipalities involved and construction  of an aqueduct system for transporting the water
from the reservoir to the member cities. Treatment of municipal water is not included in the
project plan. Although municipal and industrial water supply are the only reimbursable
project functions,  storage is  allocated  to the additional purposes of flow regulation, the
conservation and development of fish  and wildlife, and the enhancement of recreational
opportunities.11^

     The repayment obligation of the District consists of the construction costs allocated to
municipal  and   industrial  water supply.  This  obligation   is to  be  paid   in  50 annual
installments. In addition, the District is responsible for operation and maintenance costs of
the project. The estimated annual operation, maintenance, and replacement costs allocated
to flood control and fish and wildlife were capitalized for the contract period, and a credit
was given the District against its allocated construction costs.114 This action eliminated the
requirement for  budgeting the non-reimbursable annual costs.115 In consideration for these
                                            38

-------
payments, the District has the right to use the project's available municipal water supply
during the repayment period.  Upon the repayment of the total cost obligation, the District
will have a permanent  right to use that portion of the project allocated to municipal water
supply purposes.1 ^

     Project construction is the responsibility of  the United States, but the District must
operate the project upon completion.11"''  The Government reserves the right to establish
criteria for project operation  to insure that the benefits allocated  to the non-reimbursable
purposes are obtained.11^
     The provisions of this contract illustrate how some of the important issues concerning
water supply storage under reclamation law have been resolved. Since the storage situation
described is relatively  uncomplicated, the  contract does not  mention certain other issues
that could  arise under different  circumstances. For  example,  since the  water is  to  be
transported  from the reservoir by  an aqueduct system owned  by the District, questions of
what constitutes delivery and  who  sustains transmission  losses are not  relevant  to this
contract.  A  previous  section  in  the report  has shown the policy of the Government
concerning delivery of water and the limits of federal  responsibility to be quite flexible and
subject to negotiation. These and  other items of importance in an  individual project would
have to be resolved by contract to the satisfaction of the parties involved.


                             United States Army Corps of Engineers

     Work related to water  resource development has long been  a  major function  of the
 United States Army  Corps of  Engineers.  This  agency exercises the power of the  federal
government to  control the navigable waters of the country, a  power  first held to come
within  the jurisdiction  of the Commerce  Clause of the  United States Constitution by the
Supreme Court  in Gibbons  v. Ogden.119  Since the jurisdiction  of the Corps of Engineers
is limited to navigable waters, the concept of navigability must  be delineated.
Navigability

     The  English  common  law,  from which  the American  law evolved,  holds those
waterways in which the tide ebbs and flows to be navigable. This definition of navigability
was rejected at an early date by courts in the United States.

     The American test was first enunciated in a case concerning admiralty jurisdiction.

       Those  rivers must be  regarded as public  navigable rivers in law  which are
       navigable in fact. And  they are navigable in fact when  they are used, or are
       susceptible  of being used,  in  their ordinary  condition,  as highways for
                                            39

-------
       commerce, over  which trade and travel are or  may be  conducted in the
       customary modes of trade and travel on water.12(^

This early statement by the Supreme Court has been subjected to interpretation resulting in
a broad definition of navigability.

     One of the major expansions occurred in United States v. Appalachian Electric Power
Co."121 The Court held that a waterway's  potential for navigation must be considered, and
that one which could be made navigable by means of "reasonable improvements" would be
navigable in  law.122 The stream under consideration in this case was held navigable by
application of this principle, notwithstanding the fact that Justice Roberts in a dissenting
opinion  pointing out that  the  cost  of  improvement  would  be "emormous,"  and that
Congress in the past  had undertaken the task to render the river navigable but had given up
the attempt. ^23

     The navigability concept has  been  held to  include all streams once  navigable. The
absence of use over a long period of time  does not change its character. This principle was
referred to in the Appalachian case and affirmed in Oklahoma v. Guy  F. Atkinson CoJ2^

     The extension of federal control  to nonnavigable tributaries of navigable streams was
another  expansion of federal authority. The Oklahoma  case held that power of Congress
under  the Commerce Clause to protect a navigable river from floods extends to the control
of the waters of its  tributaries.12^ The United States v.  Rio  Grande Dam and  Irrigation
Cg.12° case placed nonnavigable streams affecting the navigable capacity of the mainstream
under federal control.

     Other situations where  seemingly nonnavigable streams have  been  made subject to
federal  control  also exist.   For  example,  Congress can  exercise its control  over the
nonnavigable  stretches of a stream in order to preserve  or promote commerce  on the
navigable portions.127 Lack of commercial traffic does not preclude the classification of a
waterway as navigable where personal  or private use by boats demonstrates the availability
of the  stream for the simpler types of commercial navigation.12^ Thus it can be concluded
that few waters in the United States can be securely classified as legally "nonnavigable" and
therefore immune from exercise of the navigation power by  the federal government.
Navigational Servitude

     The United States utilizes the water of navigable streams without compensation to
those injured thereby through exercise of the "navigational servitude."

       This navigational servitude - sometimes referred to as a 'dominant servitude',
       [citations omitted]  or a 'superior navigation easement', [citations omitted] - is
       the privilege to  appropriate without  compensation  which attaches to the
                                           40

-------
       exercise  of the 'power of the government to control and regulate navigable
       waters in the interest of commerce. '129

This unique rule of no compensation for water rights taken arises because private property
rights (as  defined by state law)  are not recognized in the flow of navigable streams. The
Supreme Court in United States v. Chandler-Dunbar Water Power Co. 130 states "...that the
running  water  in  a  great  navigable stream  is  capable of  private ownership  is
inconceivable."131 Thus the exclusion of riparian owners from the benefits of the water of
navigable  streams without compensation has been held to be entirely within the federal
government's discretion. 132 jne fact triat property rights  in such water are recognized by
state law is no defense against the "taking," without compensation, by the United States.

            It is no answer to say that these private owners had  interests in the water
       that were recognized  by state law.  We deal here with federal domain, an area
       which  Congress can completely pre-empt, leaving no vested private claims that
       constitute 'private property' within the meaning of the Fifth Amendment. 133
     The rule of no compensation  is limited to the waters'of navigable streams and their
beds. The  Supreme  Court in United States v.  Kansas City Life Ins. Co. 134 ^^  ^^
compensation was due a landowner when the maintenance of water at the high-water mark
for navigation resulted in underflowing which destroyed the agricultural value of adjoining
uplands. The Court stated that the United States was liable for the taking of property within
the meaning  of the fifth amendment.135 j^e principle apparently underlying this decision
was expressed in a 1961 case.

            Since the privilege or servitude only  encompasses the exercise  of this
       federal power with respect to the stream itself and the lands beneath and within
       its high-water mark, the Government must  compensate for any taking of fast
       lands which results from the exercise of the power. 136

     However, the value of any lands taken must  be determined without regard for  the
presence of the stream. For example, the Supreme Court has denied the claim of landowners
that land suitable for  the location  of a hydroelectric power plant should have increased
value because of its availability for utilization of the water power of the stream. The Court
has pointed out that the payment of such additional compensation would recognize private
property value in  the flow of  a  navigable  steam, private ownership  of which  is
"inconceivable."137
Application of Navigational Servitude

     Since in theory the United States can exercise the navigational'servitude in practically
any  waterway, it  is important to consider the purposes for which  the  servitude can be
                                            41

-------
invoked. It would appear logical  to assume that this power should be limited to serving the
interests of  commercial navigation.  However, in  much the same fashion as the concept of
navigability  has been expanded, the realm of applicability of the navigational servitude had
been  enlarged.  The Supreme Court has stated the limits on the  Government's power of
control  over navigable waters as follows:

            In our view, it cannot properly be said that the constitutional power of the
        United States over its waters is limited to control for navigation. By navigation
       respondent means  no more than operation of boats and improvement of the
        waterway itself. In truth  the authority of the  United States is the regulation of
       commerce on  its waters.  Navigability, in  the sense just stated, is but a part of
        this  whole. Flood  protection, watershed development, recovery of the cost of
       improvements through utilization of power are likewise  parts  of commerce
       control.
The Court states that the  authority of the Government over navigable waterways "is as
broad as the needs of commerce."139

     The extension  of governmental control over navigable waters to include flood  control
can  be  related directly to navigation. Accordingly,  the protection and improvement of
navigation by averting floods and regulating stream flow has been held to be a valid exercise
of the commerce power. 140 /\s indicated previously, this control has been extended to the
nonnavigable tributaries of navigable streams.141

     The production of hydroelectric power cannot be related so directly to navigation, but
the Supreme Court consistently has upheld the constitutionality of projects incorporating
power production. In  Ashwander v. T.V.A.J42 Article IV of the United States Constitution
was  invoked as authority for the sale of electric power generated at a federal dam  on the
Tennessee River.  The dam  had been constructed pursuant to the National Defense Act of
June 3,  1916,143 for tne purposes of electric energy production for munitions manufacture
and  for  navigation. The Court held that the dam had been established constitutionally and
upheld the Government's peace time operation of the dam apparently because of its relation
to navigation and because it was a "national defense asset."144 After pointing out that the
susceptibility of water power and electric  energy to disposal as Government property was
well  established,145 the Court  indicated  that  the  amount of such property subject to
disposal was a matter left to the discretion of Congress and refused to place limitations on
the amount to be sold.146

     The Court also  has upheld the  constitutionality of navigation  and  flood  control
projects which  include provision  for power production. The fact  that the  sale of  electric
power helps the Government recover costs associated with such projects has been  seen as
justification  for the power aspects of the projects.147 The Court has indicated that  storage
for power production also is related functionally to flood control.
                                            42

-------
        And so far as the power storage is concerned, the Definite Project makes plain
        that it is functionally related to the broad objectives of flood control. The
        operation of the reservoir will involve a consideration of its multiple purposes.
        Its operation in periods of drought so as to regularize the flow below the dam;
        the reduction in reservoir outflow in case of floods down the valley; the increase
        of the outflow,  in case  of impending floods  from above  the  dam, to the
        maximum  'bank full capacity downstream of the dam, so that the maximum
        amount of flood control  storage will be available when  the peak of the  flood
        reaches the reservoir, thereby reducing the peak outflow of the reservoir to a
        minimum'  -  these are  ample evidence  that  the power features and the
        flood-control features of the dam, including river flow, are not unrelated.  They
        demonstrate  that,  in  operation  of the dam, the several  functions  will be
        interdependent, and that  the  conflicts between the respective requirements of
        flood control and power development are here more apparent than real.

Thus the Court has refused to separate the functions of multi-purpose projects  and has
consistently held the power element of reservoirs to be within the authority of Congress.  It
is for Congress to determine what elements in a reservoir project will best enhance the cause
of improving navigation or flood control J49

     The  reasoning behind  the justification  of  power production as an incidence to the
control of navigable waters in regulation of commerce does not limit power production to
an incidental or subordinate purpose of reservoir construction. In refusing to  enjoin the
construction  of a reservoir project that had hydroelectric power as its primary purpose, the
Supreme Court stated:

       [T]he fact that ends other than flood control  will also be served, or that flood
       control may be relatively of lesser importance does not invalidate the exercise of
       the authority conferred on Congress, [emphasia added] 150

     It thus appears that the constitutional authority of Congress  includes the construction
of reservoirs for a variety  of purposes, provided these reservoirs include  some direct or
indirect  relation  to navigation. The  importance  of  this relation is emphasized  by the
following statement:

        [l]n  every  instance  in   which this Court  has denied  compensation  for
        deprivation of  riparian rights it  has  specifically  noted  that  the  federal
        undertaking bore  some positive relation to control of navigation, [citations
        omitted]...  [T]his Court has never permitted the Government to pervent its
        navigation  servitude  into  a  right  to  destroy  riparian interests without
        reimbursement where no navigation purpose existed. '^

     The  Court specifically  has avoided  consideration  of the question as to  whether the
Government could exercise its navigational servitude to take water rights for purposes which
bear  no actual relation to navigation.
                                           43

-------
       [Wje need not ponder whether,  by virtue  of a  highly  fictional navigation
       purpose, the Government could destroy the flow of a navigable stream and carry
       away its waters for sale to private  interests without compensation to those
       deprived of them. We have never held that or anything like it, and we need not
                                                       
-------
       In connection with the exercise of jurisdiction over the rivers of the Nation
       through  the construction  of works  of improvement, for navigation or  flood
       control,  as  herein  authorized, it is hereby declared  to be the policy of the
       Congress to recognize the interests and rights of the States in determining the
       development of the watersheds within their borders and likewise their interests
       and rights in water utilization and control,  as herein authorized to preserve and
       protect to  the  fullest possible  extent established and  potential uses, for all
       purposes, of the waters of the Nation's rivers; to facilitate the cons/deration of
       projects on  a basis of comprehensive and coordinated development; and to limit
       the authorization and  construction of navigation works to those in which a
       substantial benefit  to navigation will be realized  therefrom and which can be
       operated consistently with appropriate and economic use of the waters of such
       rivers by other users.

            In conformity with this policy:
             ...(b)  The use  for  navigation, in connection with  the operation and
       maintenance of such works herein authorized for construction,  of waters arising
       in States lying wholly or partly west of the  ninety-eighth meridian shall be only
       such use as does not conflict with any beneficial consumptive use, present or
       future, in States lying wholly or partly west of the ninety-eighth meridian, of
       such  waters  for  domestic, municipal, stock  water,  irrigation,  mining, or
       industrial purposes. ?60

     An  interpretation of this section  is found  in Turner v.  Kings  River Conservation
District.161

            The provision  of the preamble upon which appellants rely  (58 Stat 887, 33
       U.S.C.A., section 701-1) [the section quoted in part above] would appear to
       mean only  'that in the operation of...[projects authorized by  the Act] the use
       of water  for  navigation will be subordinate to present and future beneficial
       consumptive uses--in  other words, irrigation ditches will never be  closed to
       supply water to  float barges....'

            While the words of the preamble of the Act may indeed reflect a concern
       that  state-created private water  rights be protected, the hazard sought to be
       avoided was not that federal officers  would take such rights by eminent domain,
       in return for just compensation.  Rather, the language was intended to prohibit
       destruction of state-created water rights without any compensation at all, by the
       assertion of an overriding federal easement for navigation. 162

     Thus section 1 has been seen as specifically prohibiting the exercise of the navigational
servitude with respect to those projects  authorized by the Flood Control Act of  1944163
lying west of the ninety-eighth meridian. 1^4 jne  court's  holding establishes the rule that
rights  in such water  can  be taken only  through eminent domain  condemnation and the
                                            45

-------
payment of compensation by the Government. No  interpretation of the effect of section 1
on federal projects lying east of the ninety-eighth meridian is available. The policy section of
section 1  implies that the protection of all of the uses of the waters of the nation's rivers
from the effects of navigation projects was the concern of Congress, but the exact extent of
the limitation placed  on  the navigational powers of the Government is not clear. Subsection
(b),  upon which the court in the Turner case based its decision, is a specific application of
the  policy  section to federal  projects west of  the  ninty-eighth meridian, but  no such
provision concerning projects east of that line exists.

      In conclusion, there appear to be few limitations on the constitutional power of the
Government to exercise  the navigational servitude. "If the interests of navigation are served,
it is constitutionally irrelevant  that other purposes may  also  be advanced."165  The
"interests of navigation" may be served either directly or indirectly through flood control
and  stream regulation. Also, navigation does  not have  to be the primary function of a
project; constitutional authorization requires only that there be some relation to navigation
control.  However, important  limitations  have been  self-imposed  by  legislation.  The
Government has chosen to restrict the application  of the servitude to  those projects
constructed by the Corps of Engineers. Accordingly, legislation concerning the activities of
other agencies has contained provisions to  protect water rights of others.  The latest and
perhaps most significant restriction  of the application-of the servitude is contained in the
provisions of the Flood Control Act of 1944, where even the Corps of Engineers  has been
limited in applying the servitude. The full effect of this limitation is not yet apparent.
Water Supply Storage

     The acquisition of water rights for water supply storage in Corps projects is affected by
the provisions of the Water Supply Act.166 However, before these provisions are examined,
consideration will be given to the constitutional right of the Government, acting through the
Corps  of  Engineers, to impound  the waters of a navigable stream for supply purposes
without accountability to those persons whose water rights have been taken.

     The right of the United States to construct a water resource project containing storage
provisions for water supply seems  to be beyond question. Although the constitutionality of
such storage has not been decided directly, prior decisions by the Supreme Court regarding
related issues suggest this outcome. For example, the previously quoted  statement "If the
interests of navigation are served, it is constitutionally  irrelevant that other purposes  may
also  be advanced,"167 appears to be a blanket authorization for  any project with some
relation to navigation.  Thus  the constitutionality of statutes authorizing the construction of
reservoirs containing water supply  storage will likely be upheld, provided that the "interests
of navigation" are served in some manner.

     The  question  as  to whether the Government would be required under the fifth
amendment to pay compensation for water rights taken  for the  supply aspects of such
                                           46

-------
projects cannot be answered directly. Water supply is a consumptive use of water without
direct precedent as a purpose for a Corps reservoir. This purpose appears to bear little or no
relation to navigation.

     Support is given to the contention that storage for consumptive use  is distinguishable
from non-consumptive storage by language from Rankv. KrugJ68
       There is a  vast difference between impounding water and merely delaying or
       regulating the flow in aid of navigation or flood control or power purposes
       where it re-enters  the river system below the point of impoundment, and the
       situation complained of here, where it is asserted that after the impoundment..,,
       the entire flow of  the river is threatened to be diverted so that it does not again
       re-enter the river system.... 169

The Government's  position in the  Rank case  was not predicated on  whether the use  in
question was consumptive or non-consumptive. The  Government felt that the relevant
question  was  whether  Congress had the dominant  power over the water  under the
Constitution. It argued that the stream in question was a part of  a river system having some
navigable  parts. The control of Congress therefore should extend to all  parts of the system,
including  the tributaries and  non-navigable stretches of  the streams. The court, however,
seemed to feel that the  disposition to  be made of the water was  the controlling issue. In its
opinion the court  distinguished  the facts in the  Rank case from those relied on by the
United States^O as related to the power of Congress over the nation's waterways.

       But these cases do not apply here.... In each of them there was involved water
       power development or flood control, or both, as distinguished from diversion
       and taking of the water out of its natural course below the dam involved.'''

The holding of the case,  however, did not turn on this discussion by the  court.

     Although water .supply can be differentiated from  nonconsumptive water uses, there
are other strong  arguments to oppose the  position that water rights taken for  supply
purposes should be compensable because such storage bears no relation  to navigation.
Acceptance  of the  position that water  rights  taken for  supply  purposes are compensable
requires separation  of the purposes of a reservoir project. The  Supreme Court refused  to
make such a separation in Oklahoma  v. Guy F Atkinson Co.""2 The State of Oklahoma
contended that the power element of a federal  project was functionally and  physically
separate from the  rest of  the project. In refusing to recognize  this contention,  the Court
held that the  power element  of the  project was related to  the  other  purposes both
functionally1/a and through repayment of costs associated with the project. 174 Water
supply storage cannot be  related  through repayment of project costs,  bin  the courts may
hold  that  a similar functional  relationship   exists with  flood control  and  navigation.
Increasing the reservoir capacity to provide for water supply storage may well complement
                                           47

-------
the purpose of flood control by making additional storage available during critical flood
periods.  If the natural channel  is used as a conduit to convey the water to a downstream
point of diversion, a direct functional relationship may exist between water supply storage
and  navigation.  The nature of this  possible functional relationship would appear to be
similar to that existing in the case of hydroelectric power storage, which has been described
as follows:

        'If the  Denison Reservior were constructed for the dual purpose of flood
       control and power development, these beneficent effects would be augmented
       by those resulting from the regulated power discharge which would increase
       low-water flows and furnish more dependable navigable stages especially in the
       upper portions of the navigation pools. '''^

It would  be anticipated that the need for stored water for supply  purposes would occur
most often during periods of low-flow in the stream. Thus water moving to  the point of use
might well contribute to improved navigation.

     There is another major obstacle to acceptance of the argument that the riparian  owner
should  receive  compensation for damages  caused  by  water  supply storage on navigable
streams.  Any claim to the right of compensation presupposes the existence of a property
right  in the water.  The Supreme Court in  United  States v. Chandler-Dunbar Co.^° was
quite specific that such rights do not exist.

            Having decided that the  Chandler-Dunbar  Company as riparian owner had
       no such vested property right in the water power inherent in the falls and rapids
       of the river, and no right to place in the river the works essential to any practical
       use of the flow of the river, the Government cannot be justly required to  pay
       for an element of value which did not inhere in these parcels as upland. 17?


The  Court  indicated  that  private  ownership of  the water  of a navigable stream  is
"inconceivable." This holding would be a major obstacle to the argument for compensation.

     Thus the question as to whether the Corps of Engineers as an agent  of the Government
is  constitutionally empowered to  take without compensation  the  water  of  a navigable
stream for water supply  purposes has  not been  answered directly.  The evidence  tends to
support  the  position  that this  application  of the navigational servitude would  not be
prevented by the Constitution.

     However, disposition of the constitutional question does not completely resolve the
issue. Provisions of applicable legislation concerning water  rights for water supply storage
must  also be considered. Although the Water Supply Act makes no direct mention  of the
acquisition of water rights,  consideration of subsection (c) of  the  Act and its legislative
history indicate that the exercise of the navigational servitude may not be contemplated.
                                           48

-------
            fc)  The provisions of this section shall not be  construed to  modify the
       provisions of section 1 and section 8 of the Flood Control Act of 1944 (58 Stat.
       887), as  amended  and  extended, or  the provisions of  section 8  of the
       Reclamation Act of 1902 (32 Stat. 390),J78
Review of the legislative sections enumerated herein is needed to determine the significance
of subsection (c). Only two of the sections mentioned are applicable to the operations of
the Corps of Engineers. Section 8 of the Flood Control Act of 1944 provides authorization
for the Secretary of the  Interior to construct and operate irrigation works  in connection
with Corps reservoir projects and therefore does not concern the issue of water rights
acquisition, but  section 1  of the Act is pertinent.179 Prior discussion  of  section 1  has
disclosed that it is intended to protect water rights existing under state law by  restricting the
application of the navigational servitude. One provision of this section having application
only to those projects west of the ninety-eighth  meridian has been clarified through court
interpretation.  The language of the court seems to preclude use of the servitude in this
western area, 180 ^^ no  precise interpretation of the effect of section  1  east of this
meridian is available.

     The current procedure followed by the  Corps in contracting  for water supply storage
does not make use of the navigational servitude either east or west of this line. The Corps
has developed an operating policy whereby it takes no active part in the acquisition of water
rights connected  with this type of storage. The only contractual commitment entered into
by the Corps is to provide a predetermined amount of storage in its reservoir facility. After
contracting for this space, the user must take the responsibility of acquiring, in accordance
with state  law, all water rights  needed for utilization of the storage space. The following
quotations are from  a form used by the Department of the Army as a guide for individual
project contracts:

            The  User shall have the right to utilize [an undivided-per cent of]  the
       storage space in the Project between elevations	feet above mean sea level
       and	feet above mean sea level, estimated to be	acre-feet, to impound
       water for [present]  [present and anticipated future]  [future] demand or need
       for municipal and industrial water supply. '^'

            The  regulation  of the use of water supply from the aforesaid storage space
       shall be the responsibility of the User.  The User has the  full responsibility to
       acquire in accordance  with State laws and regulations,  and if  necessary to
       establish  and defend, any and all water rights needed for utilization  of the
       storage space provided under this contract... The User shall utilize the aforesaid
       storage space in a manner consistent with Federal and State laws. 182

     The  Government  offers no protection to  the  user  from  actions of other parties
affecting the water after it is stored.
                                            49

-------
          The United States shall not be responsible for diversions by others, nor will
     it become a party to any controversies involving the use of the storage space by
     the User except as such controversies may affect the operations of the United
     States. I83

 In addition, the United States requires as a part of such agreements that the user hold and
 save it harmless from  liability of any nature arising out of use of the storage space.

     Thus  the  role of  the  Government  in  this situation  is simply that of  owner of  the
 physical  facilities providing the water supply storage. The actual storage of water and  its
 release from storage  are performed on orders  from the user (within  certain contractual
 limitations185).  All  legal  considerations arising  from  such  storage  or  release are  the
 responsibility of the  water  user and must be resolved by  means of applicable federal and
 state law. Therefore the rights of the user with regard to the stored water are essentially the
 same as  those  which would  exist if the user constructed and operated his own storage
 facilities. The primary advantage  in using  a Corps reservoir rather than  a private one  is the
 economy  resulting from multiple purpose  storage. The  user  must  pay  the  full  costs
 attributed to specific water supply facilities, but he only pays a percentage of the cost of the
 project joint-use facilities.  Herein lies  the  major source  of  savings since the cost  of  all
 facilities would be borne by the user constructing a private storage reservoir.

     The legal framework within  which the Corps operates will serve to  limit the utilization
 of Corps projects for  water  supply purposes. Authorization of Corps projects is dependent
 on  the existence of  a  navigable  stream  and a public  need  for such  items as  improved
 navigation  or flood control. Although  purposes  other than navigation or flood control are
 usually part of such  projects and may exist as  primary project purposes,  there is still  the
 requirement  that some positive  relationship  with navigation or  flood control  exist.
Therefore water supply  storage must depend on the existence of these navigational elements
for authorization of construction.

     Subsequent to the  passage of the Water Supply  Act, Congress sought to clarify the
interests  of parties who contract for storage in Corps projects. The  following  statutory
language  defines the interest of local  organizations in  reservoirs constructed  by  the
Government which have been financed partially by such organizations:

          777e right thus acquired by any such local interest is hereby declared to be
     available to the  local interest so long as the space designated for that purpose
     may be physically available,  taking into account such equitable reallocation of
     reservoir storage capacities among the purposes served by the project as may be
     necessary due to sedimentation, and not limited to the term of years which may
     be prescribed in any lease agreement or other agreement with the Government,
     but the enjoyment of such right will remain subject  to performance of its
     obligations  prescribed  in such  lease  agreement  or agreement  executed in
     reference thereto.... Any affected local interest may utilize such facility so long
                                            50

-------
as it is  operated by  the Government. In  the  event that the Government
concludes that it can no longer usefully and economically maintain and operate
such  facility, the responsible  department or agency of  the  Government is
authorized to negotiate a contract with the affected local interest under which
the  local interest may continue  to operate such part of the facility as is
necessary for utilization of the storage space  allocated to it, under terms which
will protect the public interest and provided  that the Government is effectively
absolved from all liability in connection with such  operation. 186
                                    51

-------
            WATERSHED PROTECTION AND FLOOD PREVENTION ACT

     The authors of the Watershed Protection and  Flood Prevention Act187 floodwater,
and sediment damages constitute a menace to the national welfare. The Act authorizes the
Secretary  of Agriculture to cooperate with states and local  agencies for the purpose of
preserving and protecting the nation's land and water resources. This cooperation includes
the planning and carrying out of "works of improvement," defined by the Act as:

                   ...--any undertaking for—
                       (1) flood prevention (including structural and
                   land-treatment measures) or
                       (2) the conservation, development, utilization
                   and disposal of water
         in watershed  or subwatershed areas  not exceeding two hundred and fifty
         thousand acres and  not including any single structure  which provides more
         than twelve thousand five hundred acre-feet of floodwater detention capacity
         and more than twenty-five thousand acre-feet of total capacity.188

     Item  (2) in the above quotation includes all aspects of the conservation, development,
utilization, and  disposal  of water and has  been  interpreted in its  legislative  history as
specifically including municipal and  industrial water supplies.^ prjor to 1956, the Act
provided for just the agricultural phases of water resource activities, but an amendment in
1956 broadened the scope of the Act by  striking out the words "agricultural phases of" at
the beginning  of item (2).  Thus the Secretary of Agriculture, acting through  the  Soil
Conservation Service (SCS),  is  no longer limited to flood  prevention and agricultural water
management but now  can assist  local organizations^0  jn carrying  out multiple-purpose
water and land management programs.

     Projects constructed under  the  terms of this Act are viewed as private undertakings.
The philosophy of the United  States Department of Agriculture, as expressed by Assistant
Secretary E. L  Peterson in a statement concerning the 1956 amendments to the Watershed
Act, is  that such  projects are local  projects with  federal participation and  not federal
projects with local participation.^ Accordingly, the initiation of projects to which the Act
is  applicable is  primarily  the  responsibility of the local  interestsJ92 A prerequisite  for
federal  assistance under this Act is the possession  by  the local  organization of  the legal
authority to carry out, operate, and maintain the works of improvement.193

     The procedures to  be  followed to  obtain federal assistance are quite specific.  The
process  is initiated when the  local organization makes application for approval of the project
to the state agency having supervisory responsibility over such projects. If the application is
not disapproved within 45  days,  the Secretary of Agriculture  is authorized to conduct
investigations and surveys necessary for preparing plans and to make studies for determining
the physical and economic  soundness of  the project.  If the  estimated benefits from  the
project exceed the expected costs and the local  organization meets certain requirements of
                                           52

-------
the Act, the Secretary is authorized to enter into agreements to assist the local organization.
This assistance includes the development of specifications, the preparation of contracts for
construction, and participation in the installation of works of improvement. ^94

     Six specific requirements  condition  the authorization  of federal funds. The first
provides for the -acquisition of all necessary land, easements, and rights-of-way without cost
to the federal  government. The second concerns the assumption of the proportionate share
of the costs as determined by the Secretary. The third requires satisfactory arrangements for
defraying operating and maintenance costs. The  fourth stipulates that the acquisition of all
water rights be  accomplished pursuant to  state law by the local interests. The fifth deals
with  the  employment  of soil  conservation  measures in  the  drainage area  above each
retention reservoir.  The final  provision requires the local organizations to submit a plan of
repayment satisfactory  to the Secretary  for  any loan or advancement made under  the
provisions of the Act. ^ 95

     The second requirement mentioned above sets limitations  on cost allocation between
the Government and the local interests. The present nature of these limitations is primarily
the result of the 1956 amendments. A provision  added  by these amendments states that the
Secretary shall not require local organizations to assume any part of the construction cost of
structural  measures applicable to flood preventionJ96 At the  same time, a provision was
deleted  which had stated that no part of the construction cost for providing any capacity in
structures for purposes other than flood prevention and features  related thereto shall be
borne by the federal government  under the  provisions of the Act.^97 A  report by  the
Committee on Agriculture  accompanying the 1956 amendments states that the purpose of
removing this  restriction was "...to  allow some degree of Federal aid in the storage of water
for irrigation, streamflow regulation and other beneficial purposes."198 yne Committee did
not define "other beneficial  purposes," but it expressed the belief "...that the Secretary
should  not provide for any part of the construction costs allocated to  municipal and
industrial water supply or other similar purposes."199
     The amount of federal  participation in improvements for purposes other than flood
prevention is not specified in the Act but is governed by the basic policy that costs are to be
shared equitably on the basis of benefits obtained.200 it is within the discretion of the
Secretary of Agriculture to make this determination of cost allocation. The Act imposes one
limitation on this discretion. Federal assistance for land-treatment measures shall not exceed
the rate of assistance for similar practices under existing national programs.201
                                Water Supply Storage

     Since the SCS did not receive authority for water supply storage activities in the Water
Supply Act of 1958,202 the only authority for the agency to participate in such storage is
provided by the Watershed Protection and Flood Prevention Act.
                                            53

-------
     Water supply  storage carried  out in reservoirs  under the jurisdiction of this Act is
similar in many aspects to such storage in reservoirs authorized by other federal legislation.
However, there are major differences concerning the party desiring this storage. One such
difference  is that project initiation is the responsibility  of the local interests. The basic
reasoning underlying this  somewhat unique feature  is  expressed in the concept that projects
under  the Act, although built with federal participation, are private and not governmental
undertakings.  The ability of the local organization to initiate projects  is a very valuable
asset. The party desiring the storage is not forced to wait for governmental action which in
some cases must be justified (at least theoretically)  on other grounds  (navigation,  flood
control or other public purpose) but can act when the  need  is first anticipated. It is true that
local interests have some degree of influence where other federal programs of this nature are
involved, but  in no other case is such a convenient avenue for local action available. Thus
water  supply   storage  is  removed  from  its frequent  role  as  an  incidence to reservoir
construction for governmental  purposes and  is placed in the  foreground  as a primary
purpose of construction.

     The issue of water rights relating  to the  impounded water supply is covered by  the
requirement  in the Act  that the local  organization  be  responsible for the acquisition
pursuant to state  law  of  all  necessary water rights. In this aspect,  water supply storage in
SCS reservoirs is similar to such storage in Corps of Engineers facilities.

     The provisions of the Act for  the assumption  by the  local interests of all construction
costs directly attributable to the purpose of water supply also are very similar to  those
relating to water supply storage  in Corps of Engineers projects. Although the Act prohibits
direct  federal   assistance  in water  supply storage,  local  interests acquire storage  for  less
money in a flood control structure than in  one devoted completely to water supply. Cost
allocations are prorated according  to the amount of  storage for each  purpose. Part of  the
savings to private interests results from the fact that an earthen dam, of the type frequently
constructed by the SCS, must contain some excess capacity for  flood storage. This excess
minimizes the flood peaks to be passed by the dam at any given time. Spillway costs are a
function of the frequency and the quantity of water  to  be passed.  A structure without
excess flood storage would require a concrete spillway to pass large volumes of water with a
high frequency. Improved technology in earth moving has made it more economical, in SCS
projects, to build  larger dams with less expensive spillways rather  than  smaller dams with
expensive concrete spillways. A single purpose dam  for water supply would also need excess
capacity or an expensive spillway. Thus a participator  in an  SCS project benefits because the
cost of this safety factor will be shared  between  the  Government and the water supply
participant.  In  addition,  each structure  must contain a  conservation  pool.  This excess
storage provides space for the siltation which  will  occur  during the life of the project. If
siltation occurs uniformly during the project life, the intended storage will be available at
the end of the design period, and varying amounts  of excess capacity  will exist in the early
stages.  The cost of this conservation pool is not allocated between users but is borne by the
Government,  whereas  this  cost  would be an  expense to  the owner of  a  private,
single-purpose  reservoir. Again the  water supply storer has an economic benefit in a joint
project which would not be available in a single purpose structure for water supply only.

                                             54

-------
                           FEDERAL WATER POWER ACT

     The jurisdiction of the Federal Water Power Act203 generally is not associated with
water supply storage. However, recent  amendments to the Act suggest that storage for this
and other new purposes is likely to receive more  attention in the future. Consideration  of
the new legislation and  a closer scrutiny of  existing provisions of the Act seem to  reveal
authority for the Federal Power Commission, the Agency responsible for the administration
of  the Act, to play a much larger role in the use of federal and  non-federal structures for
water supply purposes.
                                Non-Federal Structures

     Prior to the  passage of  the  Federal  Water  Power Act  in  1920,  the  licensing  of
 non-federal projects on navigable rivers was handled on an individual basis by Congress. This
 responsibility shifted to the Federal Power Commission with the enactment of the FWPA.
 The preamble to the Act sets forth its general purpose.

             An  Act  To create a  Federal Power Commission; to provide  for the
       improvement of navigation; the development of water power; the use of the
       public lands in relation thereto, and  to  repeal section  18 of the River and
       Harbor  Appropriation Act,  approved  August  8,  1917, and  for  other
       purposes.204

     The crux of the authority  of the FPC is its ability to license certain activities. Section
4(e) of the Act defines  this authority.

            The Commission is hereby authorized and empowered...
            (e) To issue licenses to citizens of the United States, or to any association
       of such  citizens, or to any corporation  organized under the laws of the United
       States or any State thereof, or to any State or municipality for the purpose of
       constructing, operating, and maintaining dams, water conduits, reservoirs, power
       houses,  transmission lines, or other project works necessary or convenient for
       the development and improvement  of navigation and for  the development,
       transmission, and utilization  of power across, along, from, or in any of the
       streams  or other bodies  of water over which Congress has jurisdiction under its
       authority  to regulate commerce  with  foreign nations and among the several
       States, or upon any part of the public lands and reservations of the  United
       States (including  the  Territories), or for the purpose of utilizing the surplus
       water  or  water  power from  any  Government  dam,  except  as  herein
       provided:..205

     By  the terms  of the Act, the  Commission was  directed  to  think in terms  of
comprehensive plans of development. Section  10(a) sets forth the uses for which licenses
can be issued.
                                           55

-------
        That the project adopted, including the maps, plans, and specifications, shall be
        such as in  the judgment of  the Commission  will be  best adapted  to a
        comprehensive plan for improving  or developing a waterway or waterways for
        the use or benefit of interstate or foreign commerce,  for the improvement and
        utilization of water-power development, and for other beneficial public  uses,
        including recreational purposes; and if necessary in  order to secure such plan the
        Commission shall have authority to require the modification of any project and
        of the plans and specification of the project works before approval.206

      It was recognized in the original legislation that the  Commission could not  fully
 discharge its responsibility unless some flexibility was provided  for it to act in  certain
 situations after a license had been issued. Section 10(c)207 was once the only provision of
 the Act permitting the Commission to impose additional requirements after the issuance of
 the license, and these restrictions were limited to the protection of life, health, or property.
 In  recent years the  Commission, aware that  it is unable at the time of license  issuance to
 solve  all   of the problems  that  subsequently  may have to  be  met  if comprehensive
 development is to be maintained, has attempted to produce greater flexibility through use
 of  special  license  provisions. These provisions are in the form of limited subject  open-end
 conditions  that permit the  alteration of  requirements during the  license  term. Typical
 open-end  conditions relate to water releases, joint use of  project reservoirs and properties by
 the licensee and others, installation of additional capacity,  etc. These open-ended provisions
 are subject to a prohibition in the Act against unilateral license alteration.

        Licenses may be revoked only for  the reasons  and in the manner prescribed
       under the provisions of this Act, and may be altered or surrendered only upon
       mutual  agreement between the licensee and the Commission after thirty days'
       public notice.208

Although  this section  imposes some limitation on the actions which the Commission may
take during the license term, it does  not preclude the  Commission from imposing, at the
time  of license  issuance,  a condition reserving  its ability subsequently  to act. Section  6
merely requires that  the ground rules  be reasonably specified at the time of license issuance
but does not preclude the alteration of requirements or the  imposition of additional burdens
during the license term if the licensee is timely appraised of this potential vulnerability.209

     The case of Rumford  Falls Power Company v. fPC_210 \s one of  tne few examples, if
not the only one, where an  open-end condition has  been  challenged. The question in this
case was not an absence of authority on the part of  the Commission but was based on the
ground  of vagueness  regarding an  open-end clause2'''' inserted into a license by the  FPC to
test whether it could require applicants for hydroelectric licenses to accept  the following
conditions before receiving the license:

          (1)  [TJhat any person, corporation, or government agency may apply to the
             Commission for permission to make joint  use of the licensee's facilities;
                                            56

-------
          (2)  that the Commission may grant such right of use if it would be in the
              interest  of proper utilization  and  comprehensive development of the
              waterway; and
          (3)  that if such permission is granted  the licensee shall receive reasonable
              compensation, amounting at least to reimbursement for any damages or
              expenses which the joint use causes it to incur?12

     On  review  the First  Circuit Court found that Article 31  (the contested open-end
clause) was unclear in a number of respects, and it  remanded "...for clarification, either by
revision  of the  article  itself,  or  by  way  of  an  opinion  responsive  to the
questions...raised...."213 j^g  fjrst  question raised  by the court  was,  "Does a person,  in
order to apply for joint use of a reservoir'or other property in a license project, have to
possess necessary state water rights?"214 j(-,e answer to this question is of prime concern to
those seeking to use water for a municipal or industrial water supply. The Commission
responded in an opinion issued pursuant to the Rumford  Falls case.

            Article 31 contemplates that when water rights needed for a joint use are
       owned by some entity other than the licensee or by the licensee for non-project
       uses, such as for industrial processing,  the joint user secure the necessary water
       rights under state law or interstate compact.  The article does not require,
       however,  that in every case the person must have the rights before he files the
       application or the  Commission acts on it. If the joint user has the capacity to
       obtain the rights and the intention to do so,  it may be sufficient that he so aver.
       This makes it possible for the applicant to proceed simultaneously in securing
       permission to make joint use of project property and in obtaining necessary
       water rights.  It also resolves the difficulty, which an applicant may face in some
       states, of having to be able to put the  water to beneficial use before being able
       to obtain rights in  it. If the Commission were to grant an application to make
       joint use before the applicant had the necessary water rights, the grant would be
       made subject to his perfecting these rights?'1$

The Commission  stated that the party  obtaining such rights would not have the benefit of
eminent domain and must proceed under state  law.216

     The second question was concerned with  whether project property could be used for
private, non-municipal uses. The Commission replied:

       It  appears from its context in  the Act that the phrase "beneficial public use"
       does not mean that the uses must be by public agencies.... In our view, a joint
       use is a public use  if it has a public benefit, and it has a public  benefit if it is
       consistent with a comprehensive plan  for development of the water....217

     The third question dealt with whether the joint use could adversely effect the power
licensee and the  fourth with compensation. The  Commission answered in the affirmative
                                            57

-------
 with respect  to  permitting an  adverse use and deleted a clause in article 31  which had
 provided that the joint use "...must  be consistent with  the  primary objective  of the
 project."218 With regard to compensation, the Commission stated that the licensee should
 at least  be able to recover any damages or expenses the joint use causes him to incur. The
 Commission indicated that in some circumstances, it might be appropriate for a joint user to
                                                                      01 Q
 make a payment  in addition to damages or expenses incurred by the licensee.z

      Section  15  of the  Federal  Water Power  Act was amended August 3,  1968.220 The
 amendment appears to codify the substantive  content of Article 31, which was the subject
 of litigation in the Rumford Falls case, and reads in part as follows:

         ...(b) In  issuing  any licenses under this section except an annual license, the
         Commission, on its own motion or upon application of any licensee, person.
         State, municipality,  or  State  Commission,  after notice  to  each  State
         Commission and licensee affected, and after opportunity for hearing, whenever
         it finds  that in conformity with  a  comprehensive plan  for improving or
         developing a waterway or waterways for beneficial public uses all or part of any
         licensed  project should  no longer be used or adapted for use for power
        purposes, may license all or part of the project works for .nonpower  use.
         [emphasis added] 221

 The  interpretation  to  be given  this  new  amendment  is  probably  reflected   in the
 Commission's opinion issued pursuant to the Rumford Falls case and discussed above.

      It thus appears that, in the case of new licenses or the renewal  of old ones, non-power
 uses  such as water supply  may well be incorporated into the new agreements.  The  role  or
 impact  of the FPC  in  these very important areas of water resource  development will
 probably expand.
                                  Federal Structures

     Section 4(e) of the Federal Water Power Act, set out earlier in the text, seems by the
repetition of the phrase "for the purpose of" to establish two situations in which the FPC
can legally issue licenses. The  FPC has jurisdiction to issue licenses (1) for power projects
constructed in navigable waters of the United States or  on public  lands and  (2) for the
purpose of utilizing the surplus water or water power from any Government dam.
     The second purpose, "To issue licenses to citizens of the United States,... for the
purpose of utilizing the surplus water or water power from any Government dam, except as
herein  provided:..."^ suggests that the  FPC may issue a  license for purposes other than
power  development, e.g.,  water  supply.  Thus the FPC may have the authority  to issue
licenses for the use of surplus water for  water supply from federal dams which  did not
include this use as one of the original project objectives.
                                           58

-------
     Section 10(a), which conditions the issuance of licenses as provided for in section 4(e),
is of interest with respect to the question concerning the purposes for which licenses may be
issued.

       [T]he project adopted...shall be such as in the judgment of the Commission will
       be  best adapted to  a comprehensive plan for Improving  or developing a
       waterway or waterways for the use or benefit of interstate or foreign commerce,
       for the  improvement and utilization of water power development, and for other
       beneficial public uses, [emphasis added] ...223

The language "and for other beneficial public uses" merits particular attention. Beneficial
public use covers a broad area,  an area from  which water supply could  not easily be
excluded. Therefore, the  issuance  under section  4(e) of a  license for utilization of the
surplus water from a Government dam  for water supply would most certainly  conform with
the intentions of 10(a).

     There appears to be no definitive interpretation of the language in question. Section
4(e) has been considered by the courts on several occasions, but primarily with reference to
provisions other than those dealing with surplus water.224 jne same situation prevails when
examining  the  legislative  history of the Act. However, hearings  before the Water  Power
Committee contain certain discussions concerning the scope of the licensing authority of the
FPC. Although not specifically concerning the use of surplus water from Government dams,
the following conversation between Mr.  Lever, a  member of  the Water Power Committee,
and  Mr. Merrill, a member  of the Department  of Agriculture who was instrumental in
writing the bill, is of interest:
            Mr. LEVER. Let us find out from Mr. Merrill just what the situation in the
       bill is. After the water has been utilized for power purposes, have you the power
       in this bill to fix in the terms of the license what shall be done with the water?
            Mr. MERRILL. I think we would  have  this authority under the bill. We
       would have authority to fix conditions in the license that the water power
       should be developed in such a manner that if the licensee himself did not utilize
       the water that passed his plant for irrigation,  his use should not interfere with
       anybody else taking it and  using it  for that  purpose; under the provisions of
       subparagraph (a) of section 10,  the commission  would  have authority, in
       considering licenses or application for licenses, to require  that all the uses of
       that water be considered and the relation of the different uses to water-power
       development before granting a license for a water power.
            Mr. LEVER. In other  words, the conditions of your license will be such
       that you will not  only   use  this  water  for  navigation  or  water-power
       development, but in the language of the bill, for "other beneficial public use"?
            Mr. MERRILL. Yes; and they can take  into consideration any beneficial
       public uses.225
                                           59

-------
At another point in the hearings, Mr. Raker, a member of the Water Power Committee who
was avidly  interested  in including irrigation in the proposed bill, and David  F Houston,
Secretary  of Agriculture, discuss the  phrase  "and other beneficial public uses" which
appears in section 10(a) of the FWPA.

            Mr.  RAKER. Well, now this brings me to the next question, on page 14,
       -sectian TO, subdivision A:
                   [Section  10(a) of the  FWPA which contains  the phrase
              "and other beneficial public purposes" and has  been quoted
             -above is quoted at this point in the text of the hearings.]
            .Now, such an examination and analysis of any particular territory would
       ttake ,'in every  conceivable use that  could be made of the project or scheme,
       mametly, for navigation, preventing floods, water-power development, irrigation,
       and 
-------
       therein the related questions of irrigation, drainage, forestry, arid and swamp
       land reclamation, clarification of streams, regulation of flow, control of floods,
       utilization of water power, prevention  of soil erosion and waste, storage, and
       conservation of water for agriculture, industrial, municipal, and domestic uses,...
       [emphasis addedJ22^

     It is interesting to note that section 18 was specifically repealed  by section  29 of the
Federal Water Power Act.  It must be presumed that the FWPA was intended to assume at
least partial jurisdiction over problems originally  intended to be dealt with by section 18 of
the aforementioned Act, hence providing a plausible reason for repealing this section before
it had time to take effect. Since section 18 was concerned partially with water for industrial,
municipal, and domestic uses, it is conceivable that the FWPA was intended to assume some
jurisdiction over water supply purposes.

     The hearings concerning the FWPA indicate that the FPC was not intended to assume
complete jurisdiction over all matters covered by the repealed section 18. However, certain
discussions during the FWPA hearings which concern section 18 provide more evidence that
the scope of  the FPC authority encompasses more  than the licensing for water power and
therefore  includes some  of the intended  jurisdiction of section 18. The statements of
Franklin  K. Lane, Secretary of the Interior, are pertinent at this time.


           Secretary LANE.  You know that  Congress passed a bill authorizing the
       establishment of a commission which was to take up that whole question of the
       utilization of our waters and conservation  of our forests and this commission
       itself  would, under your intention, I presume,  supersede that  commission,
       would it not?
           Mr. RAKER. It seems to me that in all schemes we should provide for what
       is  the highest  use  that  is going  to be made of this  development. If the
       commission is granted in broad terms power to seek all uses that can be made of
       the water, then you have the power and can utilize it. If the commission does
       not actually do the work they  can utilize  the information obtained from the
       commission already established in getting at the highest use that can be had of
       the water. Do you not believe it would be a good thing to enlarge its power in
       the way of taking in the whole subject rather than to curtail their power?
           Secretary LANE. Well,  I do not know whether this commission ought to
       supplant the other commission that was proposed  and take in the whole study
       of the waters of the country or not. It strikes me  that is a little broader power
       than these three men ought to have.
           Mr. RAKER.  Well, we ought by some means to provide for the highest
       utilization, and this commission in locating  the project should have the benefit
       of all  information touching what may be for the best possible use of the water.
       That is your view, is it not?
           Secretary LANE. Yes;....229
                                           61

-------
     In conclusion, it  appears  that the jurisdiction of the FWPA has been-expanded to
include nonpower water uses such as water supply as well as water power development. A
recent amendment authorizes the issuance of licenses for the use of private hydroelectric
power project facilities for non-power purposes. Although the issue regarding the licensing
of the use of surplus water from Government dams for non-power uses remains unresolved,
there is evidence to support this interpretation of section 4(e) of the FWPA.  In the language
"or for the purpose of utilizing the surplus water_or_water power from any Government dam
[emphasis added] "230 can  (-,e seen  a new  purpose,  apparently  different  from  the
development and  utilization of water power. This interpretation seems consistent with both
the language of section 4(e) itself and the qualifying conditions established in section 10(a)
of the  Act.  This interpretation supplies a  logical reason for  repealing  the  heretofore
discussed  section  18  and  is  in keeping with the  general discussions  found  in  the
Congressional Hearing records.
                                          62

-------
                           FLOOD CONTROL ACT OF 1944

     During  1942 and  1943, widespread and  damaging  floods occurred throughout the
 United States. At this time flood disasters were recognized as one of the major problems of
 the  nation. Also acknowledged were  the  expense and additional disaster that  had been
 prevented  due to flood control dams  already in existence as a result of previous flood
 control  legislation.231  Surveys authorized  by Congress  and reviewed by the  Board of
 Engineers of Rivers  and Harbors showed the success of these relatively few flood control
 projects already in operation and the need for further protection against flood disaster. As a
 result  of these surveys  and hearings held by the Flood Control Committee,232 Congress
 enacted legislation in 1944 aimed  at a post-war  increase in  the number of flood control
 projects throughout  the country.233 jne 1944 amendments provided that the planning and
 execution of flood control projects should be a function of the United States Army Corps
 of Engineers.234  jne  legislative  history describes the goals to  be achieved  under the
 amendments.

        The plans are comprehensive in scope and contemplate the most practicable and
        economical method  of providing flood  control  and,  where  practicable,  of
        conserving the flood waters for beneficial uses. In each  case, they have been
        planned with a  view to produce the greatest good to the greatest number of
        people.  The  plans  include multiple-use  reservoirs  which  will  permit the
        development  of economical hydroelectric  power in  addition  for providing
        storage for flood control, irrigation,  water supply, pollution control, and other
        purposes.235

     A  new feature in flood control  legislation was  added by  section 6 of the  1944
 amendments.  It provides for the sale  of surplus  water in the reservoirs for domestic and
 industrial use.

            The Secretary  of War  is  authorized to make contracts  with  States,
        municipalities, private concerns or individuals, at such prices and on such terms
        as he may deem reasonable, for domestic and industrial uses  for surplus water
        that may be available at any reservoir under the control of the War Department:
        Provided, That  no contracts for such water shall adversely affect then existing
        lawful uses of such water.236

     The "provided" clause, offering protection to existing water uses, was added to protect
appropriative rights  in  the western states.  In hearings before the Senate Flood Control
Committee, Clifford H. Stone, Director of the Colorado Water Conservation Board, spoke in
favor of an addition to section 6 which would insure that a user receiving surplus water from
a federal flood control reservoir would be required to comply with state law with respect to
appropriation. The amendment to section 6  was intended  to  prevent  the sale of water to a
party  having  no  appropriation  right  to   the detriment of those who lawfully had
appropriated water under state law.237 j\/|r stone discusses the type of situation  to  be
avoided in the following passage:
                                           63

-------
            Taking up the situation in the arid section where water is appropriated in
       accordance  with State laws,  the section  has  particular  application for this
       reason. In many cases the water which would be impounded by a flood-control
       reservoir and which might contain some conservation capacity of some surplus
       water  which could be sold, is water which heretofore has been appropriated as
       flood water by irrigation interests. That water would be available when it came.
       In many cases it would come at a time when it would be of little help to the
       farmer.

            When that water is caught in a flood-control reservoir, and if that is strictly
       a  flood-control reservoir, and the water  released after the flood, then the
       farmers below would not be adversely affected but on the contrary would be
       benefited. The water would be regulated and would be more useful to them. On
       the other hand if some of that water is retained as surplus water in that reservoir
       and then disposed of to a municipality or a private concern it might and in
       many cases  would be water which belonged under the appropriation to  some
       farmer or group of farmers.238

     The proposed addition to section 6 was directed primarily to those states following the
 doctrine of appropriation; however, recognition was given  to its possible application to the
 eastern states.  In commenting on the amendment in  its  original  form as introduced  by
 Senator Millikin of Colorado, Mr. Stone made this statement:

       That provision has particular significance  to the arid West, the section of the
       country west of the ninety-seventh meridian.

       It however, does not in  any way interfere with the  situation east of that line. If
       there are any applicable laws in the eastern area, then it becomes applicable; if
       there are no laws that pertain to the situation, then it would have no effect.239

       East of the ninety-seventh meridian I imagine that in most cases the amendment
       would  not be  applicable because there probably would not be any applicable
       laws, therefore it does not work against the interests of any other section of the
       country, anti we do not desire that it should....24°

The  final version of the amendment states that contracts for the sale of the water cannot
affect any  "existing lawful use" and therefore would seem to be broad enough to include
the riparian right of user found in the law of  the eastern states as well as the rights of the
appropriator under the law of the western states.

Section 6 was  temporarily repealed in 1951 due to "inadvertance" on the part of Congress
by including it in legislation providing for the amendment  or repeal of certain Government
property laws.241 It was realized in 1952 that a mistake had been made in including section
6 in  the repealed legislation, and section 6 was then revived and reenacted.242 |n the bill to
recommend  reenactment of section 6, the Senate Committee on Public Works stated:
                                            64

-------
        Section  6 was carefully developed by Congress in 1944 in order to provide
        a means of permitting the disposal of surplus water for domestic and industrial
        uses with  the specific limitation that no  contracts  for  such water  shall
        adversely affect then existing lawful uses of water. This language met with the
        approval of-groups in the West where water rights and the conservation and use
        of water is of the greatest importance. All of those who are interested in this
        matter have requested prompt restoration of the original legislation.^4^


     Thus the Flood Control Act of 1944 constitutes a part of water supply legislation. The
authority contained in section 6 for the  sale of  surplus water from  Corps of Engineers'
reservoirs for supply purposes offers an additional  source of water to satisfy the demands in
this area.
                                             65

-------
THE IMPACT OF STATE LAW ON
THE EFFECTIVENESS OF
WATER SUPPLY STORAGE LEGISLATION

-------
                                  INTRODUCTION

     Consideration of the enabling legislation for water supply storage has shown that its
effectiveness may be somewhat dependent on property rights in water as defined by state
law. This dependency exists for two principal reasons. First, the federal legislation makes
the acquisition of water  rights for such storage subject to state law. Second,  stored water
released into a natural stream to be transported-to its place of use  depends on state law to
be preserved in quantity and quality.

     The  exact effect of state  law on the acquisition process  depends on which federal
agency  is responsibile for the  storage.  In  the  case  of  the Bureau of  Reclamation, the
Government obtains the water rights  pursuant  to  the  provisions  of the  Reclamation
Act.244 Tne Supreme Court interpretations of reclamation law appear to have limited state
law to the role of defining water rights for which compensation is to be made by the United
States.245 yvith  respect to  projects  under the authority of the Corps of Engineers246
and the Soil Conservation Service,247 water rights for water supply storage must be acquired
in accordance with state law by the party contracting for the storage.

     In some  situations  the location  of the reservoir  for water supply  is  many  miles
upstream  from  the place of use.  The economics of water conveyance suggests that the
natural  stream channel be used as a conduit wherever possible. There may exist under state
law intervening water rights to water flowing in a  natural stream between the  reservoir and
place of use.  Thus the situation exists whereby the  application  of the stored water to its
intended purpose may be jeopardized and the intent  of the federal  legislation  frustrated  if
this natural  means of transportation is used.
     An investigation into these significant problem areas and general consideration of the
impact of state law on water supply storage require study of the character of the individual's
water rights. The rights of parties storing water for supply purposes cannot be considered
independently of the rights of others whose uses may conflict with water supply.

     No attempt will be made to analyze all aspects of state water law, but only those parts
likely to have a significant impact on water supply storage will be considered. The rights of
parties contracting for water supply storage in  federal reservoirs will  be  investigated. The
rights of other water users also will be reviewed to  the extent they effect the storage of
water for' supply  purposes  and the  transportation  of  stored water  via natural  stream
channels.

     Individual water rights  are defined somewhat differently in each state, and  the exact
effect of state law  on the federal  legislation  in  question depends  on the particular state
under consideration. Although the water law of each state is somewhat  unique, there are
certain generalities which exist because of the fundamental reliance on two basic  water law
doctrines, the riparian and the appropriative.
                                            69

-------
     Under the riparian  doctrine, water  rights arise through  the ownership of property
which borders or  is traversed by a  natural body of water.  All  owners of such property
(called riparian  owners) have certain  rights to  use the water. The exact limit of this right
varies from state to state, but riparian owners generally can make a "reasonable" use of the
water. Reasonableness is a relative matter  depending on the circumstances of the individual
situation.

     In the case of the doctrine of appropriation, water rights arise by application of water
to a beneficial use and do not depend  on the ownership of riparian  land. In some states
appropriated water may be tied to specific parcels of land but  it  need  not be riparian land.
Rights are not on an equal  basis as in the  riparian case,  but  the right first vested in time is
superior.

     The  eastern  states  (those east  of  the ninety-seventh  meridian) traditionally have
adhered  to the riparian  doctrine, while  the western states basically  have followed  the
doctrine of prior appropriation. Some states have abided rather strictly by one of the two
doctrines. Others have used one doctrine primarily but have adopted certain features of the
other. Still others have recognized  both doctrines, and both exist as part of the state law.

     Research has shown  that the water law of no one state serves as the typical example of
either a riparian or appropriative jurisdiction. The law is at different stages of development
in the various states, with some aspects of the law in each individual state having received
little or no attention. Therefore,  consideration has been given  to the water law of several
riparian and appropriative states in an attempt to determine the general provisions relating
to water supply storage in  each type of jurisdiction.
                                            70

-------
                         THE  RIPARIAN WATER RIGHT


     The riparian right is a usufructuary right attaching to land bordered or traversed by a
natural  watercourse. It is recognized as a vested property right and as such cannot be taken
without due process of law.

        These  respective riparian rights of user are in no sense  easements, but are
       qualified property rights incident to the ownership of the soil through or by
        which the waters of the stream flow.248

     Although  riparian  rights normally are incident to the ownership of riparian land,  a
growing number of states now permit the water right to be severed from the land to which it
was originally attached. This right to sever was  recently reaffirmed in Virginia.

            It  is generally  held that riparian rights may be separated  from the
       ownership of the land to which they are appurtenant, either by a grant of such
       rights to another, or by a reservation thereof in the conveyance of the land.249
                               Reasonable Use Concept

     The exact extent of the riparian right is controlled  by state law, but in general the
owner of riparian land may make any use of the water  in connection  with  his riparian
property so long as such use is reasonable with respect to others having a similar right.
       A proprietor may make any reasonable use of the  water of the stream in
       connection  with his  riparian estate  and  for  lawful purposes  within  the
       watershed, provided he  leaves  the  current diminished  by no  more  than  is
       reasonable, having regard for the like right to enjoy the common property by
       other riparian owners.250

     A fundamental feature of the reasonable use concept is that each riparian owner has a
right to use the water even if the use diminishes the flow or reduces its-quality and thereby
interferes somewhat with another's use, provided the use by the  upper owner is reasonable
with respect to all other uses on the stream. Each riparian  proprietor  must expect some
reduction in the quantity and quality of the natural flow as the result of the reasonable uses
of the upper  proprietors. He, in turn,  is allowed to make a  reasonable use of the water
without complaint from those located at lower points on the stream.

     "Reasonableness" is a relative term and does not lend itself to an exact definition. The
following quotation  discusses  factors to be  considered  in determining reasonableness and
indicates the flexibility involved in evaluating the various factors:
                                            71

-------
            The reasonableness of the use depends upon the nature and size of the
       stream, the business or purposes to which it is made subservient, and on the
       ever varying circumstances of each particular case. Each case must therefore
       stand upon its own facts, and can be a guide in other cases  only as it may
       illustrate the application of general principles.251

     The following statement concerns the reasonableness of quantitative water uses:

            What is  a  reasonable amount  varies  with  the circumstance of each
       particular case and also varies  from year to year,  for the amount which might
       be reasonable in a season of plenty might be manifestly unreasonable in a
       season of drought. Nor is  the  question of reasonableness to be tested solely by
       the needs of the upper riparian proprietor. The rights of riparian proprietors are
       correlative, and the "reasonableness" amount to which any one reparian is
       entitled is to be measured by  comparison with the needs of the other riparian
       proprietors.^^

 It has been suggested that the flow might be completely exhausted for the  satisfaction of
 domestic needs.253

     With  respect to the reasonableness  of  water  pollution, this general statement  is
 pertinent:
       In order to determine whether or not the pollution of a stream caused damages
       to another riparian owner, it is not enough to determine  the extent and nature
       of the impurities projected into  the stream. The location of the complainant's
       property and the use to which it is devoted must be taken into consideration, as
       well as the effect upon such use by any impurities in the stream and the extent
       to which the pollution of the water may have been attributable to other sources
       and causes than those charged by the complainant.  All  of these matters bear
       upon the question of reasonable
     Unreasonable water pollution is frequently resolved in common law on the grounds of
nuisance. The following statement is typical:

       But any use that materially fouls and adulterates the water, or the deposit or
       discharge  therein of any  filthy or noxious substance, that so far affects the
       water as to impair its value for the ordinary purposes of life, will be deemed a
       violation of the rights of the lower riparian proprietor, and for which he will be
       entitled to redress. Anything that renders the water less wholesome than when
       in its ordinary natural state, or which renders it offensive to taste or smell, or
       that  is naturally calculated to excite disgust in  those using the water for the
       ordinary purposes ofJife, will constitute a nuisance,.. .
                                           72

-------
     It  should be noted  that the reasonable use concept  is no longer the primary legal
control  over water pollution.  Regulation of this aspect of water use in riparian jurisdictions
is accomplished through state statutes. These statutes usually provide for a pollution control
agency  and the  issuance of permits or licenses for water pollution.256 Such permits or
licenses  allow pollution  up  to  a limit  consistent with  water quality standards  set in
accordance with provisions of the Water Quality Act of 1965.257

     With regard to the reasonable use concept in general, the primary factor upon  which
the reasonableness of a water use appears  to be based  is the effect of the use on other
riparians. Since all have equal rights, the uses must be consistant with one another.

        [T]he general principle of law is that all riparian proprietors upon the same
        stream have  the same  right to the use and enjoyment of its waters--the right of
        no one is absolute-but is qualified by the right of the others to have the stream
        substantially preserved in its size, flow, and purity, and to be protected against
        any material pollution of its waters. This is the common right of all. The use of
        one must not, therefore, be inconsistent with the rights of others.?5&

     Certain  uses of  water are  normally  considered to  be unreasonable and  therefore
unlawful  in riparian jurisdictions. For example, the above quotation  from Virginia Hot
Springs Co. v. Hoover259 suggests that a riparian owner can  make any reasonable use  of the
water  of a stream  "in connection with his riparian estate," thereby  implying that  all
nonriparian uses are unreasonable. However, the court in this case indicated that a lower
riparian  has no right to complain of diversion  of water  to  nonriparian land by an  upper
owner unless damage to some present or future water use is inflicted upon him.
            If he [upper riparian  owner]  diverts the water to a point outside the
       watershed or upon a disconnected estate [nonriparian land], the only question
       is whether there  is actual injury to the lower estate for any present or future
       reasonable use. The diversion alone, without evidence of such damage, does not
       warrant a recovery even of nonimal damages.260

The  requirement that the plaintiff sustain actual damages as a prerequisite to recovery
appears to apply to all situations without regard to whether the use was on nonriparian or
riparian land.

       II]n an action for damages or suit for injunction by a lower against an  upper
       riparian landowner for wrongful diversion of water by the latter, either upon the
       upper riparian land or therefrom to nonriparian land, the plaintiff, in order to
       prevail, must  show  some substantial  actual  damage  occasioned  by  the
       diminution of the quantity of the water which the plaintiff has  the right to use,
       or (in cases of suits for injunction) threatened damage,  [emphasis added] ....261
                                            73

-------
             The stream might furnish water enough to supply this unreasonable use of
        the defendants  and the  reasonable demands of the orators, in which case the
        latter could not be heard to complain. The  mere fact that the  defendants
        reduce the natural flow of the stream would  not be decisive.  To entitle the
        orators to relief they must show that they suffer an injury to  the use of the
                                                       x/?^
        water which the /at recognizes as belonging to them.zoz

     The requirement that injury must be present before  the riparian owner can take legal
action to  restrain  a water  use  by another  has  had significant  consequences.  Litigation
between individual water  users has been the principle method  for the determination  of
water  rights and the  regulation  of water use under the riparian doctrine. In general, there
have  been  no statutory regulations  on  the  quantitative  use  of  water. The result of this
complete  reliance on court actions brought by  injured parties is that water use cannot  be
restrained  solely on the basis that an abstract water right-has been violated.263 Any such
action to  restrain must  be based on the actual injury to the party bringing the legal action
and not on the lack of  right for the other party to make use of the water. This restraint on
legal  action has slowed  significantly the development  of water  law in most riparian
jurisdictions.
     Any riparian owner  who has no  present need  for the water  to which he is entitled
retains the option of exercising his right at a future date because riparian rights are not lost
by mere nonuse.264 whenever any such riparian proprietor desires  to utilize the previously
unused water and finds that it is being used by another to his potential or actual injury, the
water use by the party possessing no  water right becomes unlawful and  subject to legal
action by the riparian owner.
     Although a riparian water right cannot be lost by mere nonuse, it can be lost through
prescription.  Prescription, as related to water law,  is the  means by which the right to use
water is acquired by other than grant or deed. There are several  requisite elements of a water
use in order to afford a foundation for a prescriptive right. The  use must be open, notorious,
and visible; and it must be exercised or asserted  in such a way that those to be affected
thereby may  know of its adverse character. It must convey  to the mind of a  reasonable
person the fact that  a continuous  right to enjoyment  is  being asserted and should be
resisted;  therefore  it  cannot  be clandestine, fraudulent,  or secret.  The  use must  be
continuous throughout the  statutory period, which varies from five years in California to
twenty years  in North Carolina.

     In  order to give rise to a prescriptive  right, the use  of the water must  have inflicted
some  injury,  detriment, or deprivation on the person whose rights are claimed to have been
extinguished  or impaired. There must be an invasion of or infringement on another's right,
and the extent of the invasion must be shown.
                                            74

-------
     The nature and extent of the prescriptive right, once acquired, is measured by the use
originally made and actually enjoyed during the period when prescription was running. Thus
the prescriptive right  obtained  does  not justify  a use differing  in any  appreciable degree
from that which was made during the statutory period.

      In  riparian  jurisdiction, the  acquisition of  a prescriptive right  would  require  an
unreasonable  use  by one  riparian  resulting  in immediate or  imminent  injury to another.
Although a proposed use may be unreasonable in terms of others having a similar right, such
action would not begin the running of the statute unless the adverse action gave rise to
injury to a downstream user.265
                            Water Subject to Riparian Rights

     The "reasonable use" concept as defined above applies to the "water of the stream."
 Unresolved are several questions regarding the meaning of this latter phrase. Does it refer to
 all  waters which conceivably could flow in  the stream under all situations? This question
 might arise with  respect to water above the normal or average stream flow. Is it possible for
 water to flow in a watercourse to which the rights of the riparian do not attach? Of special
 interest to  this  study are rights in flood waters and waters artificially introduced into a
 stream by other parties.
 Flood Water

     The right of the riparian in flood flows is important because the storage of water in
 reservoirs  normally involves  impoundment during periods  of high flow  for use  during
 periods of low-flow. The capture of flood flows would interfere with any downstream rights
 to use such flows. In addition, the right of the riparian owner in the stored water if it is
 subsequently returned to the  stream may be dependent on his right in the water before it is
 impounded, i.e., while it is still flood water.

     The rights in flood waters appear to have been given more extensive consideration in
 California than elsewhere. The California courts have distinguished between ordinary flood
 waters and extraordinary flood  waters. Ordinary flood waters,  or  those  which occur
regularly, have  been held to be part of the natural flow of a stream and subject to the law of
the riparian doctrine. In Lindblom v. Round Valley Water Co.;266 jt was held that run-off
from  usual and annually  recurring rainfall  and  snow  "when running in a defined stream
constituted a water course to which the riparian proprietor's rights attach...."267
     The natural  irrigation of land by seasonal overflows of flood water is an example of a
situation where riparian rights in flood  flows have been held to exist. In Herminqhaus v.
Southern California Edison Co.,268 a power project was enjoined because of interference
                                            75

-------
 with such  natural irrigation. The right of the riparian under California law to these periodic
 inundations  by seasonal overflows was also recognized by  the  Supreme Court in United
 States v. Gerlach Live Stock Co.269

     In general,  the California courts have not recognized riparian rights in extraordinary
 flood  waters, those of an unpredictable nature  resulting  from unusually heavy rains. The
 theory of  the  holdings seems to be predicated on the  principle  that rights do  not exist in
 water, of no substantial benefit to the riparian owner.

             These decisions, in effect establish  the just rule that flood waters which
        are of no substantial benefit to the riparian owner or to  his land, and are not
        used by him, may be taken at will by any person who can lawfully gain access
        to the stream, and  conducted  to  lands  not riparian, and even beyond  the
        watershed,  without  the consent  of  the  riparian  owner and  without
        compensation  to him.  They are not part of  the flow  of the stream  which
        constitutes 'parcel' of his land, within  the' meaning of the law of riparian
        rights.270

     The "beneficial use" test appears to have replaced  in some cases the normal distinction
 between ordinary and extraordinary flood waters. Rather  than relying on the frequency of
 recurrance or predictableness of flood waters as a means of determining whether riparian
 rights  exist,  the  California courts often  have relied solely  on the principle of usefulness of
 the water to the riparian proprietor. The position taken in these cases seems to be that if a
 water  use  by another does  not injure a riparian owner,  the use is  not  a violation  of the
 riparian's rights which should be restrained by law. This principle would seem  to deny the
 existence of riparian  rights in  all flood water  not put to  beneficial  use by the riparian
 proprietor,  regardless  of whether or not the water was the result of normally recurring,
 predictable flooding.

     The application of these  principles of California  law regarding flood waters  to other
 riparian states may not appear  relevant because California  adheres to the beneficial  use
 concept. This concept is fundamental to California  water law because of a constitutional
 requirement that all water uses be beneficial.271  Beneficial use normally is not used  in any
 discussion  of riparian law in the eastern states; however, the  basic concept appears to exist
 in this law without being stated explicitly. The riparian owner in the East cannot prevail in a
 legal action against another water user without the presence of injury.272 Thus, water rights
 effectively have  been curtailed to that amount of  water useful  or beneficial to him. It
 therefore  would seem  logical to conclude that the  principle  of California law limiting
 riparian rights in flood waters to those waters put to beneficial use would apply  in the other
 riparian jurisdictions as well.
     In the past,  riparian, rights in flood waters have received very little attention. The
question does not appear to have been considered by the highest court in any of the eastern
states.  Flood  waters  are more  often  viewed as something to  be  avoided rather than a
                                            76

-------
commodity desired for use.  In a majority of cases, the person seeking to capture such water
for impoundment would  not be confronted with the existence of such rights, but he should
be aware of such a contingency.
 Introduced Waters

     The rights of the riparian owner to use water added to the natural flow of a stream
 must be considered because of the effect on the rights of the party  introducing the water.
 Of principal  interest is the situation where a party who has stored water for supply purposes
 desires  to use  a natural stream channel to transport water past the lands of other riparian
 proprietors.  Certain unanswered questions  regarding the rights of these parties  require
 consideration.  Does the  water storer  have the right to use the  stream as a  conduit and
 receive  the water at the point of use  in the same quantity and quality existing when the
 water was released from storage? Conversely, can the intervening riparian proprietors treat
 the water as  part of the natural flow and subject it to reasonable use regardless of possible
 adverse affects on the quantity and quality of the extra flow?
Foreign Water

     For the purposes of this discussion foreign waters are those arising in one watershed
and  transferred to another. The right of the riparian owner in foreign water has not come
before the  courts on many  occasions. The courts  in California (where  the  doctrines of
riparian rights and appropriation are recognized) have held that riparian rights do not attach
to such water.  The applicability of the principles underlying California law to the majority
of the eastern riparian states is questionable. The only court in the eastern states to consider
the  rights of riparians to  foreign  waters  displayed a  reluctance to adopt principles of
California law because of that state's recognition of the doctrine of appropriation. The court
in Druley v. Adarn^S distinguished  some California cases on the basis  of the dissimilar
nature of water rights existing in that jurisdiction^^ and reached a conclusion contrary to
those  in  the California  courts.  In  spite  of  its  age,  this 1882 decision merits  careful
consideration because it is one of the few cases from a strictly riparian jurisdiction to deal
with the question of riparian rights in foreign water.
     TPie  Druley case arose out  of the conflicting water  uses of  two mill owners and
involved rights  in water introduced into the stream  in  excess of the natural  flow. The
plaintiff owned a mill on the Des  Plaines River and based  his rights on the ownership of
riparian property. The defendant owned a mill on the Illinois and Michigan canal, which was
supplied with water from the Des Plaines River upstream from plaintiff. Defendant based his
rights on  a lease agreement  with the trustees of the  canal. The  respective rights of the
plaintiff and  the canal  authorities to the natural flow of the  river had  been defined
                                             77

-------
previously in a written agreement. In this agreement the mill owner had given the trustees
the right to supply a section of their canal with water from the stream at a point above his
mill. The agreement specified that the use should be "...for supplying the said canal for the
purpose of navigation, in the same manner the water in said river, in connection with other
feeders, is now used for supplying said canal."275 Before construction of defendant's mill,
the unused portion of the water taken from the river for use in the canal was returned to the
river above the plaintiff's mill, but after the mill was established on the canal, that portion
of the water  withdrawn for its  operation  was discharged  to  the  river at  a point below
plaintiff's mill, thereby depriving plaintiff of its use.

     Although the operation of defendant's mill reduced the amount of water flowing over
plaintiff's dam,  the quantity of water remaining was greater than that afforded  by the
natural  flow  before  defendant's mill  was built.  This situation  has resulted  from  an
improvement by the City of Chicago causing more water to flow from Lake Michigan  into
the river channel.  The controversy before the court concerned the property rights in  this
foreign water.

     The decision  in Druley supported the position of the plaintiff that he has a right to the
entire flow, including the introduced water. The court stated that the water introduced  into
the river thereafter became waters of the  river to which the rights of the riparian owners
attached and  held that "...a use [by the  canal trustees]  in  excess  of  that  needed for
navigation, creating a  motive power for the benefit  of others, is a use not within the
language or the spirit of the agreement."276

     The decision  in this case was affected to some  extent by the existence of  a written
agreement defining the rights of the parties and the special  circumstances of the  case.  The
additional flow had not been introduced by either of the litigants. The defendant  was not a
riparian owner but based  his  rights on a  contractual agreement.  This  fact situation  is
considerably different from  that where a storer of water desires to use a natural stream as a
conduit to  convey water past intervening riparian owners. Nevertheless, the reasoning of the
Druley court concerning riparian rights in  introduced water does not appear to have  been
affected by the fact situation of the case. The following quotation appears applicable to all
introduced  water, including water stored in reservoirs:


           It would seem,  when it is once established, that the only property  right
      recognized by the law, as respects running water, is in its use as it passes along
      and as incident to  the  soil  over which it passes,--it  could make  but  little
      difference how, in the first instance, the water became running water, for if it
      were raised from wells, or brought out of reservoirs, the moment the individual
      thus producing it should allow it to  flow into a natural stream, and mingling
      with its waters thence on towards its mouth, over the soil of another, he would
      have voluntarily placed it beyond his power of legal reclamation or control; for,
      without becoming a trespasser upon the soil of that other, or obtaining a license
      from him, he could then do no act to arrest its onward flow, or divert its course.
                                            78

-------
       or in anywise enjoy its use. It would, in our opinion, be conclusive evidence of
       an abandonment of all right to enjoy the use or control the movement of such
       water. The principle is broadly stated in text books, but does not appear to have
       been often the sole point in controversy,  though frequently as incidentally and
       pertinently-before the court in adjudicated cases femphasis added].
            In Goddard's Law of Easements,  (Bennett's ed.) p. 51, the  author says:
       When a stream is natural, there can be no doubt that all waters which flow into
       it become a part of that stream, and subject to the same natural rights as the rest
       of the water, and that it makes no difference that the water so  flowing  to the
       natural stream was sent down by artificial means.
            In Wash burn on Easements, p. 274, sec. 33, it is said: There are some cases
       where a  lower mill may acquire the benefit of expenditures laid out by the
       upper mill owner,  without being liable  to  contribute  therefor.  Thus,  if the
       owner increases the capacity of the stream, for mill purposes, by enlarging the
       extent of his pond, or  the reservoirs which supply his mill, the lower one has a
       right to  avail himself of  the benefit  of this, as something incident to  the
       ownership and situation of his mill.
            In Angell on Water Courses, sec. 95, the author says: It is also important to
       observe, that as each proprietor through whose land a water course passes, has a
       right to  the natural flow  and  descent of a water course,  subject  to  a like
       reasonable  use  by  all others,  he  necessarily  enjoys the  benefits in  the
       improvement made by proprietors above. If they increase the head waters, for
       useful purposes, by flowing increased areas of land, and by making reservoirs to
       preserve surplus water for dry seasons, and thus  increase the volume of water for
       hydraulic purposes, every  lower proprietor necessarily  enjoys  the benefit of
       it.277

     Thus the court explicitly recognized riparian rights in  introduced water. This holding
appears to preclude the possibility of any party retaining under common  law  principles
exclusive rights  in added water. However, the following additional language from Druley has
been seen by the authors of Water-Use Law in  Illinois'^  as an indication  that the court
acknowledged the possibility that such control over added water could  be retained as it is
conveyed from one point on a stream to another:
      [W]here, by the accomplishment of a single and entire work water is both
      added to and diverted from a stream, a lower  riparian proprietor can  not
      complain, provided the same amount and quality of water shall continue to
      flow  to him after as  before.  The  work is  regarded as a single act, and its
      ultimate  result,  in  that view,  whether injurious  or beneficial,  is  alone
      considered. This view is, however, manifestly inapplicable in an action at law,
      where the party adding the water, in a legal point of view, abandons it, so that
      the lower riparian proprietor has a legal right, technical though it may be, to
      have the added  water  flow down over his land as a part of the waters of the
      stream;....279
                                            79

-------
     The  above statement from the Druley  court  specifies an essential element for the
retention  of rights in added water. The addition of water and its downstream diversion must
be accomplished as part of a single act or project. In applying this concept to the case before
it, the court noted that  the construction  of  the improvement and the application of the
water to the operation of defendant's mill were not part of a single act.

            The deepening of the Summit level, and the cutting of the tunnel, and
        doing of the other work enabling appellant to withdraw water from the canal
        to propel his machinery,  were not  concurrent acts,  nor parts of a single
        improvement. The acts were disconnected in point of time, and disconnected in
        purpose. Appellant's  water power was  obtained by him from  the Board of
        Canal Commissioners  long  subsequent to the deepening of the Summit level,
        and, for aught that is  disclosed in this record, it was not even  thought of while
        that work was in progress, nor until some time after its completion.280


     The  court  distinguished  the  decision  in  the  Society  for  Establishing. Useful
Manufactures v. The Morris Canal  and Banking Co.,281 which recognized the  right-of a
canal company to introduce water from an outside  source into a watercourse and remove
the same  quantity at a  downstream point. In discussing the case, the Druley  court noted
that a single enterprise only was  involved, and  the  turning of  the additional water into a
stream and its  removal at a lower point were concurrent acts and parts of one common
whole. There appeared to be no basis for a claim of abandonment.282 yvj^  regard to a case
before it,  the court was  of the opinion that the sole purpose of the improvement  producing
the additional  water was navigation and that the water had been abandoned for all  other
purposes when returned to the river.

     In  reaching this decision, the court developed several principles  for the establishment
of abandonment. One involved  the element of  ownership of the property traversed by a
stream carrying the added flows. The court stated that the act of allowing added water to
mingle with that of a natural stream and  to flow over the soil of another  was conclusive
evidence of an abandonment of all  right to enjoy the use or control the movement of such
water.283 The extent to which abandonment was related to the ownership of the soil over
which the  water flowed is shown in the following quote:


           The principle thus recognized is not restricted, as seems to be supposed by
       counsel for appellant in argument, to the more remote riparian proprietor, but is
       equally applicable to those who are proximate to the party causing the artificial
       addition  to  the  waters, and this  will be obvious  when it  is reflected that
       intermingled waters become indistinguishable and inseparable,  and the right to
       flowing  water is not a  right in the water itself, but simply a right to  its use as it
       flows, as an incident to the ownership of the soil over which it passes, and so the
       party causing the artificial addition has as effectually abandoned all right to use
       and control it, the moment he  has caused or permitted it to commingle with
                                           80

-------
       other waters and flow upon the land of another, as he has after permitting it to
       flow continuously over the soil of numbers of successive proprietors, and to
       become  commingled with  the waters of many additional streams. Whether
       sooner or later, the moment he has placed the water beyond his right of legal
       reclamation or- control, he  has,  in  a legal  sense, abandoned  it,  and it is,
       thereafter, to him only as any other running water.284

     It would appear that the Druley decision could have been reached without invoking the
land ownership  principle. The court pointed out  that the improvement creating  the added
flow and the application of this added water to the operation  of defendant's  mill  were
disconnected in  both  time and purpose.285 j|-,js fac-|: a|one would  seem to provide adequate
evidence that  the original  intent of the canal authorities was to abandon the added water
after using it for purposes of navigation. Nevertheless, the holding of the court established
an early precedent that water released into  a  stream and allowed to flow over the land of
another will be considered abandoned water.

     In spite of  its age, the Druley case is an important decision because it appears to be one
of the few  in riparian states to have considered  the rights of  riparians to foreign water.
Two earlier cases might have entertained the question but were decided on other grounds. In
Society for  Establishing Useful Manufacturers v. The Morris Canal and Banking Co.,286 tne
plaintiff was denied an injunction prohibiting the defendant from introducing water into a
stream and withdrawing it at a lower point downstream. In this fact situation, the additional
water never flowed over the plaintiff's soil.  He was not situated so as to  have access to the
added water as an intervening owner. The question of the rights of the plaintiff  to make a
reasonable use of the water as it flowed by his land was not an issue before the court.

     The decision in  Whittier v.  The Cocheco Manf. Co.287 jn effect denied the plaintiff
landowner the right he claimed to  the use of added water, but the decision resulted from
unusual circumstances. The defendant  in this case possessed a mill at the same dam where
plaintiff operated a mill. The defendant also  owned an upstream reservoir  and factories
located downstream from the mills. The controversy concerned the right of the  defendant
to release water into the stream from the upstream reservoir and let  it the'n flow through
open gates at  the mill to the downstream factories. The  court held that the defendant was
under no obligation to pen up the additional water at the mill for the plaintiff's benefit and
could therefore  allow it to pass through open gates to be used at  the downstream factories.
The issue in this case concerned the right of plaintiff to have the defendant retain the water
for plaintiff's use.  The court  did not decide the  question of whether the plaintiff had the
right to make a reasonable use of the water as it flowed by his land.
Stored Water

    -California appears to be  the  only state to have  considered  rights in  stored water
released to flow again as part of the stream from which it was originally taken. The court in
                                            81

-------
 City of  Los Angeles v. City of Glendale288 indicated that riparian rights would attach to
 such water.

             Moreover,  waters  that are released to rejoin the body of water of which >
        they are naturally a part are treated as natural parts of such streams.289

 The qualification  in the above quotation that the released waters be "naturally a part" of
 the stream is important. Under California law, water is a part of a natural stream within the
 meaning of the  law  of riparian rights,  only when it  is of substantial benefit to the riparian
 owner.29° It therefore  would appear that storage consisting of flood waters, of no benefit
 to riparian owners, would not become a part of the natural flow of the stream upon release.
 It might also be argued that such water becomes available through the efforts of others and
 as such conceivably  could partake of the character of foreign waters to which riparian rights
 do not attach in this jurisdiction.

     Rights in  stored water released  back into  its stream of origin have not  been directly
 considered in other states.  The case of Druley v. Adam^QI gives insight into the way the
 issue might be resolved in Illinois. While holding that riparian  rights existed in  the foreign
 water  involved  in  the case before it, the court made the following statement  regarding the
 effect  of the source of the introduced water:

       f/Jt could make  but little difference how, in the first instance, the  water
       becomes running  water, for if it were raised from  wells, or brought out of
       reservoirs,  the moment  the individual thus producing it should allow it to flow
       into a natural stream,  and mingling with  its  waters thence on towards its
       mouth,  over the soil of another, he would have voluntarily placed it beyond his
       power of legal reclamation or control;... [emphasis added]292

 If the  reasoning of this  court were followed, the rights of the riparian owner in the added
 water,  regardless of its source, would be upheld.
                            Water Rights of Municipalities

     The water rights of municipalities in riparian jurisdictions are of special interest in this
study since municipal water supply  will be one of  the major purposes of water supply
storage. Municipal water rights may vary depending  on whether  the water is to be taken
from a navigable or nonnavigable stream.

     In  the case of a nonnavigable stream,  municipal use has been distinguished from  the
riparian right of the individual to make a reasonable domestic use of water and in so doing
to legally diminish the flow of a stream.
                                            82

-------
       [A] municipal corporation, in its construction and operation of a water supply
       system, by which it impounds the water of a private stream and distributes such
       water to its inhabitants, receiving compensation therefor, is'not in the exercise
       of the traditional right of a riparian owner to make a reasonable domestic use of
       the water without accountability to other riparian owners who may be injured
       by its diversion or diminution....293

Therefore a municipality that takes its water supply from a nonnavigable stream is liable for
any damages resulting to lower riparian owners. In the event of such damage, the settlement
of  the issue is  likely  to consist  of  acquisition  of the necessary water rights  by the
municipality through eminent domain condemnation.  In Town of Purcellville v.  Potts,294 it
was pointed out that a  lower  court  has suspended the operation of an  injunction  for the
removal of municipal dams to provide time for the municipality to proceed to acquire the
riparian rights of the plaintiffs by such condemnation proceedings.295 This solution is likely
to  be the  most equitable in a majority  of cases because  of  the  public  importance of
municipal water supply.

      It does not appear that a municipality would be restrained from taking its water supply
from a navigable stream if no damage were caused thereby. This conclusi n  is based on
decisions in  riparian jurisdictions holding injury to be necessary before a riparian owner cna
prevail in a  legal action.296 |t js conceivable that this concept may allow a  nonriparian
municipality to use water from  a nonnavigable stream. The case of Virginia Hot Springs v.
Hoover297 jmp|jes that nonriparian water use must inflict damage on  riparian owners before
legal action will be successful.

     A different conclusion concerning the riparian rights of municipalities may result if a
navigable stream is  utilized  as the source of supply. The  court in  Loranger v. City of
Flint298 came to the following conclusions regarding the  respective rights of a city and a
downstream  mill owner who was injured by the city's diversion:


            (1)    The Flint  river is  in  fact and in law a public navigable  stream
       flowing through the heart of the city of Flint.
            (2)    The city of Flint is a riparian owner situated upon the banks of
       said river, and as such, and as an incident to such ownership,  it is entitled to
       take from said river so much  water as is reasonably necessary for the personal
       use of its inhabitants and its ordinary municipal needs without compensation to
       complainant....
            (4)    The rule  announced as to small private streams...or as to small
       inland lakes...has no  application to  the  case at bar, which involves a public
       navigable river passing through the heart of defendant city.299

This holding seems to be based on the concept  that municipal  water use is by nature a
public use  to which the rights of individual riparian  owners are subservient.300 Thus the
                                            83

-------
 court gave municipal use a preferred status previously reserved for navigation. It should be
 noted that this preferred treatment of municipal water use appears to be a somewhat unique
 holding.

                                 Rights to Store  Water

     The. riparian doctrine distinguishes between the right to make  an immediate use of
 water and the right to store water for use at a future time. Storage rights do exist in certain
 situations but in general are quite restricted. Adjudication of such rights primarily has been
 in connection with storage for utilization as water power.

      In  Davis v.  Town  of  Harrisonburg,301  the  plaintiff brought an  action  to enjoin
 defendant city from retaining water for purposes of power generation. The court recognized
 the right of gathering water into reservoirs "...when it is done in good faith, for a useful
 purpose, and with  as little interference with the rights of other proprietors as is reasonably
 practicable  under the circumstances."302 |n applying  this reasoning, the court held that
 "...in times of unusual  drought it is not an unreasonable use of a stream for  the owner of
 machinery,  which  the power of the stream in  its ordinary stages  is adequate  to propel, to
 detain so much  of the water and for such reasonable time as may be necessary to enable him
 to  use such machinery advantageously."303 However, the court-qualified the  right to store
 with the following, statement:.

             It is an unreasonable detention of the  water to gather it into reservoirs for
        future use in a dry season, or for the purpose of obtaining a greater supply than
        the stream affords by its natural flow in  ordinary stages.304

 A statement by  a California court is to the same effect:

            "A  riparian owner has a right to erect a dam across the stream on  his land,
       and to detain the water for such reasonable time as may be necessary to raise
       the requisite head, and accumulate such a quantity as will enable him to use the
       water  for the purpose  of his machinery; but he  cannot, as against a lower
       riparian owner, by means of a storage dam erected onhis own land, detain such
       surplus water of the stream as he may not require for his present use until it
       may be wanted by him in a dry season,... Nor has he a right to create a reservoir,
       and detain and store the water therein for future use in a dry season.305

     The prohibition contained in the previous  two quotes against the storage of water for
future  use in  a  dry season could  have  serious  consequences,  if strictly upheld, for those
desiring water supply storage. An unanswered question is whether or not such storage would
be  permissible if  no damage  was caused  thereby.  Such a qualification, although not
specifically stated, might be presumed from general consideration  of the laws  of the states
involved. With respect to the law of Virginia, the court in Town of Gordonsville v. Zinn306
pointed out  that damage is a  necessary prerequisite for an action at  law, or threatened
                                            84

-------
damage  in a  suit for injunction. Therefore  storage would not be an  actionable offense
without  damage. In  California, such storage would be in conformity with the policy of the
state as evidenced by the following statement:

       [T]he decisions of this state have long since encouraged the  impounding and
       distribution of unused and storm and flood waters.... [T]he fundamental law of
       the state now commands it when it can be done without substantial damage to
       the existing rightsofothers....30?

                      Water Supply Storage In Riparian Jurisdictions

     Consideration of the  nature of the riparian doctrine indicates that the storage and use
of water for supply purposes is likely to be affected in two principal areas: the actual storage
of the water for application to this purpose and the conveyance of the water to its place of
use  in the event a natural stream channel is utilized as a conduit. Not all aspects of the water
rights  related to water  supply storage have been defined  clearly  in the various riparian
jurisdictions, but certain conclusions can be drawn with respect to the rights regarding these
two general areas.

Acquisition of Storage Rights

     The primary water  uses contemplated under  federal  water supply legislation  are
municipal and industrial water supply. There  is some authority that a municipality may use
the  water of  a  navigable stream for supply purposes,  but it is generally accepted  that a
municipal  use  is not a  riparian right on nonnavigable  streams. The rights concerning
industrial use  are more variable. These rights are governed by the reasonableness of the use
in relation to other uses on the stream and vary as to location and point of time.

     The rights to  store  water for  future  municipal   and  industrial  use  in riparian
jurisdictions may be more limited than the rights to  make immediate  use of the water for
these same purposes. Rights with  respect to such storage have not been completely defined.
A few cases  have held  that the  storage of water for future use in a dry season is not a
riparian  right. These cases all involved the use of water  for power purposes. A  different
result  might  be reached  with respect  to water  supply storage because this  use is more
fundamental  than its use for  power. In addition, the benefits derived from  such storage
would  appear to  outweigh the  disadvantages to lower  riparian  users. Nevertheless,  the
potential  significance of the power  cases is increased because of an apparent absence of
decisions recognizing such storage rights.

     If storage for municipal  and industrial uses  were not to be recognized as a riparian
r|ght, such storage still might be carried out under riparian law if no damage occurred to
other riparian users.  The riparian doctrine requires injury  to sustain a  legal action, and the
courts suggest that non-recognized water uses might not be prevented by law in the absence
of interference  with  the rights of others.  The  reasonable  use of water in exercise  of a
riparian  right  legally  may cause some interference  with other water uses,  but such

                                            85

-------
interference  would not  be sanctioned  for a water  use  not recognized under the riparian
doctrine. Therefore, lack of  recognition of storage  for  supply  purposes as a riparian right
would limit storage to excess water not needed by other riparian proprietors.
     It is necessary to consider whether such parties not possessing water  rights formally
recognized under  state law can partake of the benefits of water supply storage in federal
reservoirs under the terms of applicable federal water supply  legislation.  Can  a riparian
owner  participate  in  such  storage for  purposes  not  given  legal   recognition?  Can
municipalities or industries nonriparian  to a stream contract for storage, or would all such
potential water storers be excluded from participation  in federal projects? These questions
are especially  significant where  water supply storage is to be  accomplished pursuant  to
federal legislation  under which the water user assumes responsibility for acquiring all related
water rights according to state law.

     Federal legislation specifying acquisition  of water rights  pursuant  to state law  would
require compliance with any existing procedure for attaining state permission to use water
(e.g., appropriation proceedings in the western states). A provision of this type would  have a
different effect in riparian jurisdictions where state permission to use water for consumptive
purposes  is generally unnecessary. Water rights under the riparian  doctrine are defined
through litigatio'n arising out of conflicts between water users and not by  grant from the
state.  Thus,  all water rights asserted, pending an  adjudication  by the  courts upon being
challenged, are tentative. In the absence of a complaint (as in the case where supply of water
exceeds all  demands), it seems likely that any party desiring water supply storage could
participate in federal  projects without possessing a riparian right.

     Water supply storage  in a federal reservoir might be prevented by a successful suit  to
have such storage enjoined on the grounds of potential damage to the rights of others. In the
event such complaints were voiced before reservoir construction, the potential storer  would
be required  to settle all claims  upheld by the courts. If the potential storer is a municipality
or other organization possessing  the  powers of eminent domain,  the contemplated water
supply storage would be contingent on the acquisition of the necessary water rights through
condemnation proceedings. Parties not possessing  such powers  would be restricted  to the
purchase of any necessary rights at market value. The price of  such  water rights  might
preclude participation in the project.

    The contracting party  also might be subject to an action for damages and/or injunctive
relief after construction of the reservoir with water supply storage. Injunctive relief against
the use of such storage after reservoir construction would have severe consequences since
the user of  the storage space already  would  have  entered  into a  contract with the
Government regarding the  repayment of costs  associated with  such storage. Storers with
powers of condemnation could avoid such  loss by the acquisition of the necessary water
rights.  The  ability to condemn water rights after  the  construction of facilities  makes it
feasible to participate in federal reservoir projects without having  acquired title to riparian
                                             86

-------
rights  before  initiating construction.  Without  this power of condemnation, the  risk of
injunctive  relief  and  the accompanying  financial loss would appear  to  raise questions
concerning the desirability  of  participating  in such projects  without prior title to all the
necessary water rights.

     However, the  position of  the water user without  the  requisite  water rights, who
contracts for  storage in a federal reservoir  located in a riparian jurisdiction  may be more
secure, as a practical matter, than appears at first glance. First, there must be a showing of
.injury as a basis for a legal  action. Conclusive proof of damages resulting from such injury
creates some formidable evidence problems. Second, a large user of water would not likely
locate on a stream where the supply of water was not readily available and uncontested. For
example, it would  be considered imprudent  by  most companies to make a substantial
investment  in plant facilities knowing  that a successful law action would have  to be
maintained to insure the water supply necessary to operate an industrial facility. Third, the
storage of water in a federal  reservoir would probably permit the storer of such water to
vicariously partake of benefits available to the Sovereign. Although there is no basis in law
for such an assumption, it may well deter all but those with the most acute type of water
problems.

Prescription

     It appears that the riparian doctrine as enunciated by the cases does not include the
right to store  for future use. The few  cases specifically considering the question of storage
have consistently  held  that storage is  limited to the swelling of the streams for immediate
use but does not extend to storage for use during a dry period.

     Since storage  is not a matter of right, the question  arises as to whether prescription
 might be a method  for creating  such a  right.  In  the case of water, there is a  difference
between a prescriptive right to store  water for future use and the prescriptive title to the
corpus of any water stored.

     The essential element in acquiring a prescriptive right to the corpus of the water is the
matter of reducing  it to possession. In Akron Canal & Hydraulic Co. v.  Fontaine,308 tne
court stated:

        The impounding of water by means of a dam on a stream is not a reducing of
        the water to possession in such a sense as to change its legal character and make
       it property.309

It thus appears that although  the water was stored for the statutory period and the other
requirements  of  prescription  satisfied, the mere storing of the water is not sufficient to
reduce the water to possession.  It is  doubtful  if such a concept were  recognized  that it
would  have  meaningful  significance  since  only the quantities of water  stored  for  the
statutory period would  be available for water supply purposes at a future time.
                                             87

-------
     It  is, however,  the  acquisition  of  the  prescriptive right to store water for future use
which  may  be of significance to both the riparian and nonriparian who seek  to  avail
themselves of the opportunity to store  in federal structures.  The mere storage of water in a
structure for the statutory period would meet all of the requirements for the establishment
of a prescriptive right except the one concerned with adversity. The storage would not be
adverse to downstream riparian  proprietors unless they sustain an injury as a result of the
storage. The statutory period  would not commence to  run until damages  had  occurred.  It
would  appear that a prescriptive right to  store  could  be acquired by storers  in federal
structures against all  riparian  proprietors who had sustained damages during the statutory
period.  The  prescriptive right would be limited to the smallest amount  of storage  space
which  had been regularly  used  for  storage during the  required  period-the right to store
larger amounts by contract notwithstanding.

     Any question as to  whether a nonriparian  could  acquire a  prescriptive  right  was
resolved in the case of Pabst v.  Finmand,3|0 the court stated:
       In  the  instant case the adverse use of the  water on nonriparian land  was
       continued "openly and notoriously" for a period longer than five years,  and
       the slightest use by  the  owners of these land being notice  to all  the lower
       riparian owners that a hostile right was being asserted, a prescriptive right was
       acquired by such adverse use by those
     In general, the nature and extend of the prescriptive right once acquired is measured by
the use originally made and  actually enjoyed  during the period when prescription  was
running.  If this concept were strictly construed, it would hold that the storage perse was the
only use to which the water could be applied after the prescriptive  period.  It would have the
effect of nullifying the  impact of acquiring water supply storage through prescription, since
storage for storage sake would be the only recognized use. As a practical matter the courts
generally  view storage  as an  intermediate  step  in  the  application  of  water to use. A
California court in considering this point stated:

       Storage, of water in a reservoir is not in itself a beneficial use. It is a mere means
       to the end of applying the water to such use.312

There is also support  for the idea that a person acquiring a prescriptive use to water is not
necessarily limited to  the use made of the water during the prescriptive period if the change
in use does not injure  another.

        It is sufficient to observe, that in order to acquire this right by prescription, the
       law requires  that the mode or manner of using  the water, during the period
       necessary  to  found the  right upon,  should not be materially varied to  the
       prejudice of  other owners. He is not bound to use the water in precisely the
       same manner, or apply it in the same way;... a change in the mode and objects

-------
        of use is allowed, the only restrictions being,  that the alternations made shall
        not be injurious to those whose interests are invo/ved.313


     As a general rule, a lower riparian owner cannot  obtain a prescriptive right against an
upper owner  because the water use by the lower owner cannot be adverse to the  rights of
the upper  owner. California, however,  recognizes a  situation wherein an upper riparian
owner  may be denied the right to enjoin  a lower water use and forced to take compensation
for the loss of his right. The following quotation explains the underlying principle of this
doctrine of "public use intervention":

        That  where  a person has suffered property belonging to him and under his
        control  to   be taken  and  devoted  to a  public  use  by  one engaged in
        administering such use, and the matter has gone on so far that the beneficiaries
        thereof rely  on its continuance and adjust their affairs accordingly, such owner
        having knowledge thereof and making no objection or protest, this conduct will
        be regarded  by the courts as a dedication by such owner of the property to the
        particular public use, and he cannot thereafter interrupt nor prevent the same,
        his only  remedy being to seek compensation for the property he has  thus
        allowed to be taken....314

It is conceivable that water rights for water supply storage could be acquired in this manner.

     In riparian jurisdictions, most of  the storage available in federal structures would be in
projects sponsored  by the  Corps of Engineers  or  the Soil  Conservation  Service.  Both
agencies shift the  responsibility  for  the  acquisition of  water  rights  to  the storer.
Nevertheless, those riparian proprietors seeking to resist the claim of a prescriptive right by a
storer  might  assert   that the  action  of the storer would  not be  possible without the
cooperation  of the  Government.  If  it  were held  that it took the joint action of the
Government  and  the storer  to perfect the claim to a  prescriptive  right  to  store, the
prescriptive claim would not be negated.  It has generally been held that the Government can
acquire prescriptive rights as fully as a natural or corporate person.315

     In general, the prescriptive right  to store does  not vary between riparians on either a
navigable or  nonnavigable stream. However, in the case of navigable streams a prescriptive
right to store could  not be acquired to the prejudice of those  interests held in trust by the
state.316

Conveyance of Stored Water

     The right to convey water stored for supply purposes via natural stream channels has
not  been defined completely. It  appears that the water supply storer who attempts  to
transport the  water  to the place of use by utilizing a natural stream channel may jeopardize
his interest in the water. In order for his interest to be protected, the riparian  doctrine
would  have to limit  or prohibit the use  of such added water by riparian proprietors. There
                                             89

-------
apparently have been no court decisions having this effect. The cases having applicability to
this issue  indicate that riparian rights generally attach to all water flowing over the land of
the riparian owner.

     If all  the  riparian  owners located  between the point of release and the downstream
point of diversion have the right to  make a reasonable use of  the waters  of the stream,
including the added flow, the  situation exists whereby both the quantity and quality of the
stored water may be affected  adversely. This result is possible if the added water is treated
as part of the normal, ordinary flow. The riparian doctrine contemplates some diminution in
quantity and reduction  in quality as a necessary consequence  of the reasonable use of this
water by the riparian landowners.

     The  potential  reduction  in quality  would become especially important where  the
stream used to transport the water supply had low quality standards established with respect
to applicable state and  federal legislation. The existence of low stream  standards  in most
situations  would not preclude the water storer from seeking relief against unreasonable
pollution through the courts. However, the establishment of low  quality standards might be
viewed as recognition that certain pollutional water  uses are a  necessity. This view could
prejudice  the  storer's  position  that a  particular  source of  pollution constituted  an
unreasonable water use. Introduction of  stored water  into streams of low  water quality
might be viewed as an assumption of a certain risk on the part of the water supply storer.

     Although  the  right  of  the water supply storer to use natural stream channels as
conduits for transporting stored water without interference from  intervening landowners has
not been recognized,  it  should be noted that such  rights have not been denied conclusively.
This aspect of water rights under the riparian doctrine  is notable for  its lack of development.
The holding of the court in Druley  v.  Adam^l/  perhaps the major case having  possible
applicability  to this issue existing in the eastern  riparian states,  is not encouraging with
respect  to these rights. The greatest obstacle created  by  this decision is the position taken
that water, regardless of its origin, is completely  and conclusively abandoned when  it is
allowed to flow onto the land of another. This view  of abandonment is predicated on  the
premise that once the water has been introduced into the stream,  the discharger is without
means of asserting control or dominion  over water once it passes onto the land of another.
The consequences of this concept for parties desiring to transport water stored for supply
purposes via a stream passing  through the land of  intervening riparian owners are obvious.
Intervening landowners  would probably exist in  a majority of  cases. Their  number might
range from a few where the municipality is located  relatively close to the storage reservoir to
a  considerable  number where  the  municipality is situated  many miles  downstream.
Widespread acceptance  of this concept  of abandonment would  deny, in most instances, a
water storer the right to  use  a  natural  watercourse as  a conduit.  This  position does  not
appear as yet to have received widespread adoption.

     The fact situation in the  Druley case can be  distinguished from  that involving a water
supply storer and intervening riparian owners. In Druley, the right to the use of water added
                                            90

-------
to the flow of a river was being  contested  by a riparian owner and another water user,
neither of which  was responsible for the added flow. The rights of the party introducing the
water were not an issue before the court  although the statemen-ts concerning abandonment
reflect on these rights. In  the case  of the water supply storer and the intervening landowner,
the controversy  concerning the  use  of the  added  flow would  be  between  the  party
introducing the flow and  those claiming rights by virtue of the ownership of riparian lands.
Another distinction  between the two situations is that the release of the water supply and
its subsequent diversion would  be of  the nature of a single  project, a necessary condition
established by the Druley court for retention of rights in added water. These factors which
distinguish the situation  under consideration  from those in  Druley may be sufficient to
produce  a  decision  in favor of the party introducing  stored water into a stream, provided
that the concept of abandonment developed in this early case is not followed.

     A final  aspect  of the  rights  concerning conveyance to be considered is  the possible
effect of prescription in  this  area. Apparently unresolved is  the  question as to whether a
conclusive  prescriptive right to store water can have any effect on the subsequent rights in
such water when it  is released from  storage. Generally,  flowing  water admits  of only a
transient, usufructuary property,  and  if  it escapes for a moment,  the right to  it is gone
forever; the qualified owner having no power of reclamation.31°  /\ very early case seems to
support  the  premise that a prescriptive  right to water once acquired cannot be lost by
releasing the water back into its natural watercourse. A close examination of the facts in the
case  tends to  mitigate   the  effect  of the holding.  The  defendent  water  company
discharged  water from a dam to which it had acquired a prescriptive interest into another
reservoir only 400  feet away.  The court held that the defendants had not  relinquished
control  of  the water. Considering the close proximity of the dams, it is difficult  to ascertain
whether  the water can be characterized as having been discharged back into the stream.319
The antiquity of this 1910 case and the special fact situation existing would seem to weaken
its standing as persuasive  authority. This  fact and the apparent absence of other holdings in
this area  preclude the formation of general conclusions on this issue.
                                             91

-------
                        THE APPROPRIATIVE WATER RIGHT
                                                                                  OOQ
     The appropriative  water right,  like the  riparian  right, is viewed as property;0
 however, the similarity ends here. The major distinction is that the appropriative right does
 not exist as an incidence to the  ownership of riparian land, and nonriparians  as well as
 riparians can acquire such water rights.321 However, this right in  some states does attach to
 land,322 although not necessarily riparian.

     The appropriative right is created or acquired when water is taken from its source and
 applied to a beneficial use. This system of rights is based on the concept of preemption, and
 between different appropriators from the same stream, the one whose appropriation is first
 in  time  possesses the superior right.323 Thus,  there is no concept of equality of right as
 exists  in riparian law. The  United States  Supreme Court made the following  statement
 concerning appropriation in Arizona v. California:32^

        To appropriate water means to take and divert a specified quantity thereof and
       put it to beneficial use in  accordance  with the laws  of  the  State where such
       water is found, and, by so doing,  to acquire under such laws, a vested right to
       take and  divert from the same source, and  to  use  and  consume  the same
       quantity of water annually. ...325

     Although  the basis of  the traditional common law concept  of appropriation is the
 application  of  water to  a  beneficial  use, state statutory enactments and  constitutional
 provisions impose specific terms and conditions which control the appropriation process.
 One important requirement  in some  jurisdictions is the attainment of a state  permit or
 license to appropriate.32^ The procedure to obtain such permission varies between states
 but usually  is  initiated  by  application  to a  designated state  officer  or agency.  This
 application generally must contain certain information specified by statute about the water
 user, the purpose and nature of the desired appropriation, and the source of water. A valid
 appropriation requires compliance with all applicable provisions of state law.32^

     State statutes and  constitutions may  modify elements  of  the general appropriative
 doctrine. Established priorities are an important  modification altering the basic rule that
 first in  time creates the superior water right. For example, the Colorado Constitution
 establishes priority  of use  as (1)  domestic,  (2) irrigation, and (3)  industrial.328  The
 significance of  this order of preference is to give a preferred use the right to acquire a prior
 water right of a lower preference by condemnation and the payment of compensation.32^
 Priorities of this nature would have no effect on the respective rights of parties using water
 for purposes having the same order of preference.
     Although the acquisition of appropriation rights is regulated by statute, there is some
evidence that it can be acquired by prescription. The following statement from a California
case generally describes the prescriptive right:
                                            92

-------
            Prescriptive  rights are not acquired by the taking of surplus or excess
       water, since no in/unction may issue  against the taking and the appropriator
       may take the  surplus without giving compensation; however, both overlying
       owners and appropriators are entitled to the protection of the courts against any
       substantial infringement of  their rights in water  which they reasonably and
       beneficially need. ...Accordingly, an appropriative taking of water which is not
       surplus is wrongful and may ripen into a prescriptive  right where the use is
       actual,  open   and  notorious, hostile and  adverse  to the  original owner,
       continuous and uninterrupted for the  statutory period of five years, and under
       claim of right...To perfect  a  claim based upon prescription  there  must,  of
       course, be conduct which constitutes an actual invasion of the former owner's
       rights so as to entitle him to bring an action.330

     There  has  been an  argument  advanced that  California's exclusive  method  of
appropriation, established  by the  first water  code in  1913, has abolished the prescriptive
right to water in that jurisdiction.331 The courts have never reached this conclusion, and
their decisions indicate that prescription is still part of the state's water law.332

     If  prescription  has  not  been abolished  by California's  appropriation statute, other
considerations  suggest that prescription  may  have  limited application.  In order for the
prescriptive right to ripen, adverse use must be made of the water  to the detriment of the
original appropriator for the full prescriptive period. This adverse use implies at least partial
nonuse  by the appropriator, thus creating the possibility the right may be lost. The portion
of a valid appropriation not applied to beneficial  use is likely to be lost if the nonuse
continues for a period  of three  years. After this  period, the water not used  becomes
unappropriated  water even  though  the original  appropriator  could have applied it  to
beneficial use, had he elected to do so. The use of this water by another would not ripen
into a  prescriptive right  until five years had  elapsed under California law. Therefore, the
unused  water would have assumed the status of unappropriated water prior to the running
of the  prescriptive period. Once water is characterized as unappropriated it becomes subject
to the appropriation statute of the state.
                            Water Subject to Appropriation

     The  appropriation  of  water requires the existence  of "unappropriated" water. This
term is defined by statute in some jurisdictions. Among the various classifications of water
defined as "unappropriated" by California,  for example,  are waters never appropriated,
water no longer applied to the beneficial use for which it was appropriated, and water which
after use  has flowed back into a natural  body of water.333 Thus,  all  water in a  natural
stream  which  is not  being  put to  a  beneficial  use  is  surplus  water  subject  to
appropriation.334
                                            93

-------
     The fact that appropriation is precluded in the absence of unappropriated water offers
 protection to the rights of those already  possessing valid appropriations.  This concept may
 be important to some  appropriators as it provides security for  the appropriation until the
 water  is put to use and  permits the transportation of water through natural stream channels.
 The right to use the channel of a natural stream as a conduit also has been  recognized by the
 federal courts.

             In point of law the general principle upon which plaintiff relies is scarcely
         open to  controversy; one who by the expenditure of money and labor diverts
         appropriable water  from a stream  and thus makes it available for  fruitful
         purposes, is entitled to  its exclusive  control so long as he is able and willing to
         apply it  to beneficial uses, and such  right extends to what is commonly known
         as wastage from surface run-off  and deep  percolation,  necessarily incident to
         practical irrigation.  Considerations of both public policy and natural justice
         strongly  support such  a rule.  Nor is it  essential to  his  control that the
         appropriator maintain  continuous actual possession of such water. So long as
         he does not abandon it or forfeit it by failure to use, he may assert his rights. It
         is not necessary that  he confine it upon  land or convey it in  an artificial
         conduit.  It  is requisite of course  that he be able to identify it; but subject to
         that limitation  he may conduct it  through natural  channels and may  even
         commingle it or suffer it to commingle with other waters.^35
 The right to use a stream as a conduit is specifically  recognized by statute in most western
 states.  The  exact  terms of the statutory provisions employed  vary between states.  In
 California, the right is limited to the use of  one stream to carry the waters of another.

        Water which has been appropriated may be turned into the channel of another
       stream,   mingled with its water, and  then reclaimed; but in reclaiming it the
        water already appropriated by another shall not be diminished.336

 Oklahoma appears to have a more general statute without this restriction.

             Water  turned into any  natural or artificial watercourse by any party
       entitled  to  the  use  of such  water  may be reclaimed  below and diverted
        therefrom by such party, subject  to  existing rights, due  allowance for losses
       being made by the State Engineer.337

 Details of  other such statutes are contained in the appendix.
                                Beneficial Use Concept

     Although the appropriation of water involves compliance with the various provisions of
state law, application to beneficial use is  the essential element  of  the water right.338 |n
                                            94

-------
most western states it  is the basis,  the measure, and the limit of the appropriative right.
Notwithstanding  its importance in defining  a  water right,  no precise definition is usually
given in state law as to what constitutes "beneficial use." The determination is a question of
fact depending upon the circumstances of each individual case.339

     Generally, the right of the appropriator  is not established by  the  amount  of  water
diverted but rather by the amount actually put to beneficial use.340 /\\\  rigrit to water not
put  to beneficial  use is lost.  If water is never put to actual use, the appropriative right never
ripens.341  |f the  right is established,  it may be  lost through abandonment arising out of
cessation of application  of the water to beneficial use. To abandon, as applied to water law,
means to desert or forsake a water right with no  intention  to repossess it.342 Thus, simple
nonuse usually is not sufficient to establish an abandonment. An intention to abandon is an
essential  requirement.343 Whether or  not a water right has been abandoned must ordinarily
be  determined as a question of fact in each case. The burden of proof rests on the party
asserting the existence of the abandonment.344  ^ f-,as keen held that using less than the
entire amount of an appropriation  implies an  abandonment of all water above the amount in
use.345
                             Water Rights of Municipalities

     Municipalities appear to  be given special status in some appropriative jurisdictions.  For
example,  municipal water  use  in  Colorado has been  included in the preferred domestic
class.346  Municipalities  also are exempt to some extent from the restriction that only so
much water as can be applied to a beneficial use can be appropriated. Under the traditional
view of appropriative water rights, all  water diverted must be applied to a beneficial use in
order to  be subject  to  a valid appropriation. The following  quotation  from a Colorado
decision sets forth the basis of the exception:

             The  concern of the  city is to assure an adequate  water supply to  the
        public which it serves.  In establishing a beneficial use of water under such
        circumstances the factors  are not as simple and are more numerous than  the
        application of water to  160  acres of land used for agricultural purposes. A
        specified  tract of land  does not increase in size, but populations  do, and in
        short periods of time. With that flexibility in mind, it is not speculation but the
        highest prudence on the part of the city to obtain appropriations of water that
        will satisfy the needs resulting from a normal increase in population  within a
        reasonable period of time.347
The court did not attempt to change the rule requiring application to a beneficial use. It said
simply that since "beneficial use" was not defined in Colorado, what is a beneficial use is a
question of fact, and "the factors which enter into a beneficial need here...are more flexible
than those relating to the use of water on agricultural land."348
                                            95

-------
     The  above quotation  seems  to  establish the  beginning  of a double  standard for
individuals and municipalities. A  later case concerning this issue appears by its language to
deny that a city should have rights superior than  those of the individual. It did,  however,
affirm a lower court's decision  granting the city of Denver an appropriation in excess of its
needs at that time. The following statement from the case is pertinent:

       We cannot hold that a city more than others is entitled  to decree for water
       beyond its own needs. However, an appropriator has a reasonable time in which
       to effect his originally intended use as we/1 as to complete his originally
       intended means of diversion, and when appropriations are sought by a growing
       city, regard should be given to its reasonably anticipated requirements.^^

A more recent case,350 although not dealing with this problem directly, seems to indicate
approval for allowing municipalities to appropriate to meet projected needs.
                                    Right to Store

     The  storage  of  water in itself does  not  appear to be  a  beneficial  use under  the
appropriative doctrine.  However, the necessity  of storing water as an essential step in its
application to a beneficial use in certain situations has been recognized.

       Storage of water in a reservoir is not in itself a beneficial use. It is a mere means
       to the end of applying the water to such
In accordance with this principle, the court in the California case quoted above denied the
right  of  a  water company to hold water  in a reservoir for long periods of time for the
purpose  of selling the water. The court did suggest that the  right to store might  be
appropriate under certain  conditions. This storage is not limited to that required for present
needs but  includes a  sufficient excess to provide for  reasonably  anticipated growth in
demand,  transportation,  losses,  and  emergencies such  as  water  shortages  caused  by
drought. 352

     The right to store water for future use receives additional recognition in the California
case of Meridian,  Ltd, v. City and County of San Francisco353 where the court stated:

       [l]t is necessary and appropriate to declare. ..that the storage of water for the
       purpose of flood control, equilization and stabilization of the flow and future
       use, is concluded  within the beneficial uses to which the waters  of the rivers
       and streams  of the state may  be put within  the intent  of  the constitutional
       amend ment.354


     Storage rights also are recognized under Colorado's appropriative system. The right to
store  water in this jurisdiction is viewed as a different type of appropriation than one for
                                             96

-------
direct use.355 |n general, a decree for direct appropriation is limited as to both quantity and
time of  use356 ancj does not  allow storage for later use.357 /\ storage decree must be
obtained  if the water  is to be held in a reservoir for future use.358 After  the  water
subsequently is put to beneficial use, the appropriation for storage "...shall be superior to an
appropriation of water  for direct application claiming a date of priority subsequent in time
to that of such reservoirs."359 it appears that Colorado  law restricts the storer to  one
reservoir filling per year unless all junior rights have been filled.360

     A number of Colorado  court decisions have held that an appropriation for direct use
cannot be converted into one for storage having the same date of priority as existed for the
direct use.361  The priority of the right to store water is based on the date  of the storage
decree itself.
                   Water Supply Storage in Appropriative Jurisdictions

     The  rights concerning water  supply storage are  defined  somewhat more clearly in
appropriative water law than they are under the riparian doctrine. The two general areas of
acquisition of water to store and its later conveyance through natural stream channels will
be considered separately.
Acquisition of Water to Store

     The  municipality or industrial water user desiring water supply storage in Corps of
Engineers or Soil Conservation Service projects is confronted with the problem of securing
the necessary water rights through the framework of existing appropriative law. Municipal
and industrial water supply generally would  be considered "beneficial" and therefore valid
purposes for which appropriations could be obtained upon compliance with applicable state
law. Because water is in short supply  in  most of the western states, the availability of such
water in any given situation is somewhat doubtful. Large demands on the natural flow in
some instances may limit the appropriation of the  water supply storer to flood flows  not
previously appropriated.

     In some states an order of preference among different water uses makes it possible for
a preferred  water  use to condemn prior appropriations of a lower preference.  In Colorado,
municipal water use is recognized as fundamental to the welfare of the general  public and is
included  in the domestic use classification having the highest priority. A  municipality
therefore  could  condemn  water rights of  those using water  for irrigation or industrial
purposes.  Such a right of condemnation would not be available for a potential storer of
industrial  water since industrial use is of the lowest order of preference.362

     Having a preferred water use does not circumvent the problems associated with  the
need to store water for future use. The appropriative doctrine generally favors an immediate
                                            97

-------
use  of  water over  a  right  to  store  water.  However,  under  certain circumstances
appropriations for more water than is  needed at the time of the appropriation have been
allowed in  the case of municipalities having a rapid population growth.363 The reluctance
on the parts of states to embrace storage as a beneficial use seems to be a carry-over from
the historical  policy  which attempted  to foster  those  concepts emphasizing  immediate
development of the economy.  The shift from an agricultural  and mining economy to an
industrial  one and  the  accompanying urban development  suggests  that  further cases
involving storage may receive a totally different treatment.

     It does not seem likely that parties contracting for storage in Corps of Engineers or Soil
Conservation Service  projects  located in the western states could participate without  first
obtaining water rights recognized under state law. The  responsibility for acquiring water
rights for supply purposes is placed on the  user by statute or contract.  Compliance with
state  appropriation  law  appears mandatory  in  view  of the requirement  that  parties
contracting for storage in reservoirs constructed  by these two agencies acquire necessary
water rights pursuant to state  law. This requirement would effectively reduce or eliminate
the possibility of a water supply storer obtaining a prescriptive right to store.

     When  water supply storage is to be included in Bureau of Reclamation projects, water
rights acquisition  is handled differently.  The United States  acquires all water  rights for
reclamation projects whereas  the contracting party is responsible for acquisition  of water
supply storage rights  in other  federal  projects.  Thus the issue concerning jurisdictional
problems between the federal  and state governments becomes  an  important consideration.

     The effect of state water law on the  acquisition of water rights by the Government in
connection with  federal reclamation projects  is of major importance. Section  8 of the
Reclamation  Act36^  states  that the Secretary of the  Interior  shall proceed in conformity
with state  law in the acquisition  of water rights. Supreme  Court interpretations of section 8,
considered  in an earlier section of this report,36^ have been restrictive and have limited its
effect.

     These  decisions give a clear indication of results to be anticipated when certain aspects
of state law tend to impinge upon or limit Government action. For  example, the  effect of
state created  preferences has been considered in the case of City of Fresno v. California.366
The Supreme Court held that such priorities are not binding on the United States.  It denied
the contention  that   the  Government should  be  bound by state statutes  relating to
preferential rights of counties and watersheds of origins and to the priority of domestic over
irrigation uses. Thus, statutes of this type  have been precluded from affecting water supply
storage.

     A more general limitation  imposed by a Supreme Court decision is that the operation
of reclamation projects is beyond the control  of state law.367 The  question then arises as  to
whether the storage of water for supply purposes is an operational function immune to the
influence of  state law. Resolution of  this issue is  fundamental  to the determination  or
                                            98

-------
storage purposes because state law defines water rights in terms of the use to be made of the
water. The usual requirement for recognition under state law is that the use be "beneficial",
a relative requirement varying from state to state. Decisions concerning the state's failure to
recognize a  reclamation  project purpose as beneficial have not been found. The absence of
cases on this point would be anticipated since most reclamation  projects have a strong base
of support at the local  level. This would certainly be true with respect to those projects
including water supply,  but the possibility of conflict between project purposes and state
law exists. The significance of such a conflict will not be known until such time as the issue
is put squarely before the courts.

      If it is assumed that state law will  not prevent storage in federal reclamation projects
for water supply purposes, the question arises as to whether state  law as  recognized  by
section 8 might serve to  control  the  manner in which  the rights for such storage are
acquired. Two options are available  to the Government in the  absence of restrictions. If
unappropriated  water is available,  it could acquire water rights as an appropriator under
state law. The alternative would be eminent domain  condemnation of existing water rights
pursuant to section 7  of the Reclamation Act.368 Qne possibility is that a state's failure to
recognize as beneficial one of the intended project purposes may prevent the Government
from appropriating water for the project purpose since water rights are defined in terms of
use. The Government in this eventuality could still acquire water rights by condemnation.
The states  may  well  contend that all  rights thus acquired are  lost when not applied  to
beneficial use as defined by state law.  If the right to condemn is valid this contention would
probably be  denied  on the grounds that  its effect would  be  to negate  the benefits  of
condemnation.

      If it is held that the Government can acquire water rights for reclamation projects apart
from the question concerning project purposes, water supply storers in these projects are in
a favored position relative to those seeking storage in other federal reservoirs. Although the
Supreme Court  has held  that  project water  consists of appropriations by  the  individual
water user,369 jt js apparent that the water user benefits from the privileges and immunities
of the Sovereign. A water user attempting to acquire rights for the same storage purpose in
the reservoir of a different federal agency would not be clothed with these advantages and is
subject to any limitation existing with  respect to the water rights of the individual.

Conveyance of Stored Water

     It  has been  seen  that the right to convey appropriated water through natural stream
channels is  recognized by the common law of the western states and through  statutory
enactments.370  Examples of statutory and common  law statements of this right  have been
given previously.

     The  right to convey water through natural stream channels is specifically  limited  to
water in which a valid right has been obtained.  If it is possible for a water user to acquire the
right to use  reclamation  project water for supply purposes not recognized by state law, the


                                            99

-------
applicability of this  legal  protection  for  conveyance appears questionable. It should  be
noted  that  there  is little  likelihood for water supply storage not to be recognized as a
beneficial use under state law; therefore, this question on conveyance rights may never arise.

     In addition to the statutory and common law statements concerning conveyance rights
in general,  other provisions  can be  found  having possible special  applicability  to  the
conveyance of water stored for supply purposes.

            The owners  of any  reservoir may conduct the water legally stored therein
       into and along any of the natural streams of the state, but not so as to raise the
       waters thereof above ordinary high watermark, and may take the same out again
       at any point desired with due regard to the prior or subsequent rights of others
       to  other  waters  in said natural streams.  Due allowance  shall be  made for
       evaporation and other losses from natural causes for the protection of all rights
       to the waters flowing in  said streams such, losses  to be determined by the state
       engineer.371

            [I] t shall be unlawful...for any person without an agreement with the state
       of Kansas to divert or take any water that has been released from storage under
       authority of the state of Kansas or that has been released from storage pursuant
       to an agreement between the state and federal government...372

The  first quotation  concerns  the conveyance of water stored in reservoirs via any stream
and, therefore, includes  the release of water supply storage  into  the stream  from which it
was  taken.  The latter provision is  significant because  it applies  to water  released from
storage in federal reservoirs. The Kansas  statute apparently was passed to resolve problems
which  might arise should water released from storage be susceptable to use before it reaches
the party contracting for the storage. This statute protecting releases of water is limited to
water  released  "...under  authority of  the State of Kansas or...  pursuant to an agreement
between  the state and federal government...." The second condition is important because
the  Kanas  Water  Resources  Board   is  authorized  to  enter into  agreements with the
Government concerning water supply storage in federal reservoirs to meet  future needs.373,
Water  users can  subcontract for use of the stored water^74  anc]  thereby receive the
protection  during conveyance afforded by this statute. The  first condition for protection,
"... under  authority of  the  State  of  Kansas...",  appears  broad enough  to include all
municipal water supply  storage  since municipalities are entities created by the state. "It
would  appear that  only  an industry contracting directly with the government pursuant to
the Water Supply Act and not through  the state as an intermediary would  be excluded from
the benefits conferred by this statute.

     The Kansas statute helps preserve the investment of water users contracting for storage
in federal  reservoirs.  Such  statutory provisions  may  appear  in other states  as local
participation in federal reservoir  projects  increases. In most of the western  states, statutes of
this  type would serve to reinforce  the  protection offered by general legal provisions
                                           100

-------
authorizing conveyance of appropriated water. Statutes of this nature also could be enacted
into riparian law. In general, no such protection to the rights of the conveyer of water exists
in the eastern states at present, and the enactment of statutory protection would seem
logical if these states want to encourage local participation in federal reservoirs.
                                             101

-------
ENABLING LEGISLATION FOR
FEDERAL WATER QUALITY STORAGE

-------
                                    INTRODUCTION

     Implementation  of the legislation  authorizing  the Corps of  Engineers,  Bureau  of
Reclamation, and  other federal  agencies to include water quality storage in their projects
may be affected by state law. The various federal agencies do not operate independently of
such law,  and their activities have been modified by state law in those areas where federal
legislation and  subsequent  court interpretation  have  indicated this intent. Expanding the
scope of agency activities to include water quality storage raises certain unresolved questions
concerning the specific effects  of state law in this particular area.  Neither the language of
the amendment nor  its legislative history  appears to  have  contemplated these potential
problems relative to implementation.

     The storage and use of water for quality purposes may be subjected to some control by
state law in two general areas. State law may exert some regulation over the acquisition and
storage of water for this purpose, and  it  may define the status of the water when released
from storage to augment I ow-flows.
                                            105

-------
                            HISTORICAL DEVELOPMENT

      Legislation specifically authorizing storage of water for purposes of pollution control
 through low-flow augmentation did not appear until this decade. Enabling legislation with
 very general  language containing possible  authority  for  dilution water storage  has been
 inexistence for some time.

      Reclamation  law provides several examples. A 1920 provision authorized miscellaneous
 purposes.375 jh\s legislation  has  been cited  previously as a possible basis for authorizing
 water supply storage,376 and  it would appear to apply equally to dilution water storage.
 Acts for individual reclamation projects are another source of authority. Some of these acts
 provide  for stream-flow  regulation  without specifying the intent of  such regulation.  In
 addition, many of these acts have left the list  of project purposes open-ended by allowing
 use  of water for  "other beneficial  uses."377 It  would appear  that the Secretary  of the
 Interior  under the authority of these provisions could in the exercise of his discretion have
 included low-flow augmentation for water quality control as a project purpose.378

     The legislative history of  the Flood Control Act  of 1944379 indicates that storage for
 water quality purposes might have  been contemplated by the authors of the Act.

        The plans  include multiple-use reservoirs which will permit the development of
       economical hydroelectric power in addition to providing storage for... pollution
       control....380

 No specific provision for pollution control is contained in the Act, but the excerpt from the
 legislative history suggests this intent.

     The first comprehensive federal  legislation  in  the  area of pollution  control was the
 Water Pollution Control Act  of 1948.381 This Act did not provide for pollution abatement
 utilizing low-flow augmentation. The policy of Congress as declared in the Act was:

        [T] o recognize, preserve and protect the primary responsibilities and rights of
        the States in  controlling water pollution, to support and aid technical research
        to devise and perfect methods of treatment of industrial wastes which are not
        susceptible to known effectve  methods of treatment, and to provide Federal
        technical servies to State and interstate agencies and to industries, and financial
        aid to State and interstate agencies and to municipalities...382
     Several amendments to the Water Pollution Control Act have been added to strengthen
and extend its provisions. The first of these was enacted in 1956,383 but t(-,e new provisions
still  did  not  provide  storage  for  water quality purposes,  An  amendment in  1961384
contained specific authorization for storage in  federal reservoirs for water quality control.
Since 1961  other important additions to federal pollution  control legislation have been
                                           106

-------
enacted. These include the Water Quality Act of 1965,385 tne clean Water  Restoration
Act386 passed in 1966, and the Water Quality Improvement Act of 1970 (P.L. 91-224, 84
Stat.  91). None of these acts contain  additional  provisions  affecting pollution control
through low-flow augmentation.  Important  provisions of these recent amendments  and
earlier pollution control legislation are contained in the appendix.
                                           107

-------
       FEDERAL WATER POLLUTION CONTROL ACT AMENDMENT OF 1961

     The 1961  amendment is  the sole source  of authority for inclusion of water quality
storage in federal reservoirs. The applicable provision reads as follows:

            In  the  survey or  planning  of  any reservoir by the Corps  of Engineers,
       Bureau of Reclamation, or other Federal agency, consideration shall be given to
       inclusion of storage  for regulation  of streamflow for the purpose of water
       quality control, except that any such storage and water releases shall not be
       provided as a substitute for adequate treatment or other methods  of controlling
       waste at the source?®'

     The hearings on this  amendment  included statements by federal   agencies, private
organizations,  and individual  citizens in support of the provision  allowing  water quality
storage  in  federal reservoirs.  The  general  tenor of the remarks was to the effect that
low-flow regulation  should  be  regarded primarily  as a  supplement to,  rather than  a
substitute  for,  adequate waste treatment  measures  at  the  source.  There  was general
agreement among those favoring the legislation that it should reflect the policy that federal
financial  responsibility for low-flow regulation  storage  be consistent with federal assistance
for waste treatment measures,  lest the Government provide financial inducement to  states
and  communities to abandon  their  efforts  to  provide adequate waste treatment measures
which would in effect defeat the major purpose of the Water Pollution Control Act.
     There were some minority views expressed. One organization offered the view that the
Government should increase the amount of money authorized annually for incentive grants
for waste-treatment facilities construction rather than assume a part of the cost of water
storage for "flushing operations."389 One group pointed out that federal determination to
incorporate low-flow features in projects  and  to obtain the water to make such features
workable could  have far-reaching and complex effects on existing patterns of water law,
fixing of priority of uses, and a host of other problems extending far beyond considerations
of quality control.390

     The constitutionality of federal control over pollution through dilution water storage
does not appear to have been specifically considered.  The legislative history regarding the
1961 amendment discusses the general constitutional  power of the Government to control
pollution in navigable waters. After citing authority for the proposition that the power of
the federal  government over navigable waters is without limitation except those prescribed
in the Constitution,391 the legislative history concludes:

           If in the general interest of protecting and promoting commerce, flood
      control and watershed development are legitimate concerns of Congress, as the
       Court has said, fin United States v. Appalachian Electric  Power Co.392] the
      protection of navigable waters against pollution which as held in Scow No. 36,
                                           108

-------
      supra, is in  the interest of sanitation and health, and of the general welfare,
      seems quite clearly to be within the domain of congressional control.393


However,  this  consideration  of  the constitutional  issue does  not appear to have  been
directed toward water quality storage but rather to a provision in the amendment expanding
federal  jurisdiction  for  pollution  control  to  all  navigable  waters.  Furthermore, the
amendment does not limit water quality storage to navigable waters. Since dilution water
storage is authorized in all federal  reservoirs, both navigable and nonnavigable streams are
included  potentially. The power  of the United States to control  pollution  in nonnavigable
streams has not been as issue before the courts.
                                           109

-------
                   STORAGE BY VARIOUS FEDERAL AGENCIES

     The legislation authorizing water quality storage, like that for water supply, does not
create a special agency to carry out its intent but rather permits such storage to be included
in  facilities to be constructed by established agencies. Thus the basic legislation under which
these agencies operate and the case law interpretation will influence the effectiveness of this
expanded activity.

     General  information concerning the activities  and authority of the various  federal
agencies  in the water  resources  field is given in an earlier  section of this report.  The
discussion which follows will be limited to consideration of the specific problems associated
with implementing the legislation authorizing water quality storage.
                         United States Army Corps of Engineers

     The area of  law  surrounding water quality  storage  by the Corps of Engineers is
 somewhat undeveloped. The 1961 Amendment to the Federal Water Pollution Control Act
 includes  the  necessary authorization,  but  it does not  establish  detailed provisions  for
 effecting such storage. This storage  must therefore  be accomplished  solely  within  the
 framework of previously existing operational procedures of the Corps.

     Some benefits may accrue to the water quality of a stream in the operation of Corps of
 Engineer projects for improved navigation,  flood  control,  power generation, and  other
 purposes. Increased flows to aid  navigation, of  necessity,  provide  additional water  for
 dilution purposes. Operation of projects for flood control purposes involves storage of water
 during  periods of high flow which is released  at a later time providing dilution benefits by
 supplementing the natural  flow. Similarly, power generation conserves higher flow for later
 use resulting in water quality improvement.

     However, the incidental benefits  to water quality  resulting from storage for other
 purposes may  vary with time. Because water quality  improvement is not the controlling
 criterion, the optimum benefits to pollution abatement  cannot be attained.  It is readily
 apparent that the timing  of  water  releases are  of  utmost importance if  the quality
 improvement is to occur during the period of greatest need. Releases of water for navigation
 generally occur at times  of lowest flow and correspond  with the greatest  demand  for
 dilution water. However, the most efficient use of flood control  storage requires the earliest
 possible release of stored waters in preparation for other flood flows. Therefore, releases are
 most likely  to occur  before the critical  water  quality  period. Water for electric  power
 generation  is  primarily used  to  meet  peak  demands.  Releases for this purpose  are
 independent of the water  level  in the stream  and the need for  dilution. Thus it  seems
 apparent that  storage specifically for  dilution is needed  in  Corps projects in addition to
 storage for these other purposes if water quality improvement is to be assured.
                                            110

-------
     The  acquisition of water  for quality control  would  in  most situations pose  little
problem with regard to water rights.  Water for this purpose would be accumulated during
periods of high-flow for release  during periods of lowest natural flow. Impoundment would
likely  occur during times when water is in excess of  that needed  for the fulfillment of
downstream rights. However, water rights as defined by state law may have some impact on
the storage of these higher flows.  A discussion of these rights is contained in an earlier
section.394

     The  legislation authorizing water quality storage in Corps of  Engineer facilities leaves
unresolved  the question of whether  the Corps constitutionally could take the water of a
navigable  stream for this  purpose without  the payment of compensation to those injured
thereby. Prior decisions by the Supreme Court suggest that water  can be taken  for any
purpose provided the project has some relation to navigation.395 \^ tnus appears  that the
right of the Corps to take  without compensation the water of a navigable stream for water
quality control would  be upheld as a valid  exercise of  the Government's constitutional
power to  control such water. However, Corps  projects authorized by  the Flood Control Act
of 1944396 ancj |ater flood  control  legislation, are subject to section 1  of  the  1944 act
which qualifies  the  power  of  the  Government  to  take  water  rights   without
compensations.397

     Another  unresolved  question  concerns the problems  regarding  rights in the stored
water  after it is released into a stream  where dilution benefits are contemplated. This issue is
given consideration  in a later section concerning the impact of state law on water quality
storage.
                                Bureau of Reclamation

     The traditional difference in the mode of operation of the Bureau of Reclamation and
the Corps of Engineers has been the requirement  in reclamation law that water rights needed
for projects must  be  acquired  by purchase  or  eminent domain condemnation.398 j^g
restrictions  that have  been  placed  on the use of the navigational servitude  by the Corps
somewhat lessen this distinction.

     The problem of acquiring water to store for dilution purposes is more critical in the
arid western states where the Bureau operates. The storage of flood flows may eliminate the
necessity of having to  acquire  vested  rights,  but where water  is in short supply, the
likelihood  of  rights existing  in such  flows  is increased. The acquisition process may  be
complicated by the potential conflict in those states not recognizing dilution as a lawful use
of the waters of the state. This issue  is considered in a later section dealing with the effects
of state law.

     Intervening rights in water  released by the Bureau  for quality purposes might  be
foreclosed by state  statutes  protecting rights in appropriated water. However, there appears
                                           111

-------
to be a question as to whether these releases would be subject to this protection in those
states not recognizing dilution as a beneficial water use. This aspect of water qual ity storage
will also be discussed in a later section.
                               Soil Conservation Service

     The primary water resource function of the Soil Conservation  Service has been flood
control. Water quality storage is compatible with storage for this purpose, but as in the case
of the Corps of Engineers, benefits to both can be assured only when storage is allocated to
each. Water quality storage probably will not cause problems of water rights acquisitions. It
should be noted that the Watershed Protection and  Flood Prevention Act399 under which
the SCS operated, provides  no authority for the acquisition of vested  water rights  by the
SCS. Whether the requirement that the local interests acquire necessary water rights for SCS
projects could be  interpreted to apply  to  the acquisition of  rights  for the public  storage
purpose of water quality control, should such acquisition be necessary, does not appear to
have been determined.
                              Federal Power Commission
     The Federal Water Power Act-   contains no direct provision concerning water quality
storage,  but consideration  of  certain sections  of  the  Act  reveals that such  storage
conceivably could come under  its jurisdiction.  The  sections of the Act having possible
application  to  water quality storage are  (1) a provision  which appears to authorize the
Federal Power Commission to  license the use of surplus water from Government damsel
and  (2)  a recent amendment concerning the use of  private  hydroelectric projects for
non-power purposes.402
Surplus Water from Government Dams

     If section 4(e) of the Federal Water Power Act^OS js interpreted as providing authority
for the Federal Power Commission to issue licenses for the use of surplus water or water
power  from Government dams, the use of such water for dilution purposes would seem to
be a legitimate and likely application. With regard to this proposition, the statement of Mr.
Millard F. Bowen as found in the Congressional Hearings on the FWPA are pertinent.

     Mr. Bowen:....
      [Tjhere is nothing, not a word in the whole bill, that will enforce that idea of
      'stopping the pollution of our waters, and this of all times I think is the proper
                                           112

-------
         time to bring that forward as a policy of the Government relating to the whole
         of the country,
         The Chairman: You think the present bill ought to be amended so as to give
         the commission jurisdiction over questions of pollution?

         Mr. Bowen: I think so, undoubtedly,  that now is the time to enforce such a
         rule.*™

     Apparently, the Chairman as well as Mr. Bowen felt that there were no provisions in
the Act purporting  to deal with pollution control or  sanitary problems in general. Little
time was devoted to Mr. Bowen, comparatively speaking, and his suggestions of including in
the FWPA certain provisions of a treaty  between the United States and Canada concerning
pollution control was  not adopted. On the basis of this one segment of the Hearings, the
idea of relating pollution control to the Act seems remote.

     However,  it  should  be  noted  that no  discussion was  devoted  to the possible
interpretation of the language in section 4(e) in relation to the problem of pollution control.
It appears that section 4(e) might provide for an extension  of the FPC licensing power to
include the licensing of surplus water for nonrestricted uses, dilution being one of them, in
conformity with section 10(a).405

     In support of this proposition,  reference is made to section 18 of the Act of August 8,
1917,^06  repealed  by  the  FWPA.  The repealed section  made specific reference  to
"clarification of streams"  and "regulation of flow." If the FWPA was intended to assume
some  jurisdiction  over problems originally  covered by the repealed section,  the brief
statement  by Mr. Bowen concerning the absence of jurisdiction over pollution measures is
not entirely correct. If pollution control was  contemplated, a logical means for dealing with
such problems  might be provided by  the  language under discussion.  Licensing of surplus
water  for nonrestricted use, as distinguished from licensing for power purposes only, could
prove  beneficial  in solving  many  problems  concerning stream  clarification  and flow
regulation.

     It would appear that the use of surplus water from Government dams for water quality
control would  require no  express authorization. Such use simply  involves  release  of the
water at the proper  time. However, recognition of this use of the surplus water as coming
within  the  intent of section 4(«) could prevent application of the water to other uses where
water quality control was deemed to be the most beneficial use by the FPC.  It also provides
specific authorization  for use of this surplus water for pollution  control if such authority
were to become desirable.
                                            113

-------
Storage in Private Hydroelectric Power Projects

Reservoirs under ..the jurisdiction of the Federal Power Commission are private rather than
federal  undertakings and  the  provisions of  the  1961 Amendment to the Water Pollution
Control Act regarding water quality storage are not appl icable. However, a 1968 amendment
to  the  FWPA407 provides authority  for  the  FPC to license  portions of  projects  for
nonpower uses.  This legislation apparently provides the authorization  for water quality
storage.

     Support is given to this interpretation of the 1968 amendment by a bill introduced in
the 91st Congress.408 The bill provided for  regulation of the amount of reservoir capacity
for water quality control purposes  which  could be proposed by  a license applicant or
required by the  FPC.  Although  the bill  was not  enacted  into  law, its provisions show
acceptance of the fact that  parts of private  hydroelectric projects may  be licensed by  the
FPC for water quality storage.

     Since water  qual ity storage will in most cases  be a public rather than a private  need,
such storage usually will be carried out by the federal government. Therefore,  the right of
the  United  States to use part of a private power  project for a~ public  purpose must be
considered. With regard to this question, consideration of a license provision which was the
subject  of  litigation  in  Rumford  Falls Power  Company v. ŁP_c409  is pertinent. This
contested provision stated in part any person, corporation,  or governemnt  agency could
apply  to the  FPC'  for  permission  to  make joint  use  of the licensee's  facilities.410
The 1968 amendment resulted at  least in part  from  this contested provision and appears to
have the same general intent. It seems logical to conclude that a Government agency can be
licensed by the FPC to use parts of private projects for pollution control storage.

     This interpretation of the  1968 amendment provides a significant extension of water
quality  storage legislation.  Previous  to its enactment,' only  those streams on  which were
 ocated  federal  reservoirs  could  benefit  from   pollution   control  through  low-flow
augmentation. The view  of  the  amendment taken  herein  would  make this source  of
pollution control  available in many situations where no federal but only  private reservoirs
exist.
                                           114

-------
THE IMPACT OF STATE LAW ON
THE EFFECTIVENESS OF
WATER QUALITY STORAGE LEGISLATION

-------
               RIGHT TO STORE WATER  FOR QUALITY CONTROL

     The  issues concerning the right of the federal government to store water for quality
purposes  vary between  eastern and  western  states because of the basic differences in
water law. Consideration of the general natures of these two doctrines of water law, i.e., the
riparian and appropriative doctrines, previously has been undertaken; therefore, only their
potential  effects  on the  implementation of  water quality  storage  legislation need  be
considered in this section.
                                 Riparian Jurisdictions

     In the eastern states, it is only when storage of water by the Government for quality
purposes  interferes with the rights of lower riparian landowners that a conflict of federal
and  state created  water rights arises. The nature of water quality storage suggests  that the
rights  of  riparian  owners are not likely to be affected. Wqter quality storage involves flow
stabilization rather than an  actual consumptive use of water. Impoundment generally would
take place during  periods of high flow when  an excess of water is present. The storage of
excess water is not likely to give rise to injury in the humid states, and injury is a necessity
to have an adjudication of rights.411

     The  question as to what  effect state law would have on water quality storage in the
event  such storage did  interfere with state created water rights has not been  resolved. The
constitutional power of the federal government to take the water of navigable streams for a
variety of  purposes  without  paying compensation  to those injured thereby has been
established,412  but it is not clear as to whether the  restraints contained in the  enabling
legislation under which the  various federal agencies operate would permit this power to be
exercised.  The 1961 amendment authorizing storage for quality purposes  does  not impose
limitations  on the acquisition powers of  the federal  agencies, but  other legislation does
contain restraints. The Corps of Engineers and the Soil Conservation Service, the  agencies
likely  to  be responsible for water quality storage in the eastern states, are both subject to
such limitations. Legislation authorizing Corps projects in recent  years has shown an intent
to limit the power of the Government to take water without compensation.413 Legislation
regarding  operations of the  SCS has never made the acquisition of water rights a  function of
the agency. However,  it does not appear likely that storage of water for  quality purposes
will be prevented  by these restraints. The only unanswered question concerning the right of
the Government to store water for this purpose concerns the payment of compensation to
those whose water rights might be damaged by such storage. Resolution of this issue will not
affect  the basic right to store.

                              Appropriative Jurisdictions

    Water quality storage  in the western  states might be accomplished by  the Corps of
Engineers,  the  Soil Conservation  Service, or the  Bureau  of  Reclamation.  Storage  in
                                           117

-------
appropriative jurisdictions by the first two agencies would appear to raise no problems in
addition  to those discussed above with  respect to riparian states. The primary unresolved
issue in both jurisdictions would appear to concern  the payment of compensation in the
event water rights of other users are injured. Where water quality storage is to be included in
reclamation projects, there appears to  be greater potential for legal disputes concerning the
rights of  the federal government. There are two principal reasons why this  right of the
Government is  likely to be contested.  One, the basic  legislation under which the Bureau of
Reclamation operates  makes the activities  of the Bureau conditional on state law in certain
areas.414 Two, the appropriative states exercise a more positive control over water use than
do those in the  East and define water rights in terms of the use to be made of the water. The
question arising  when these two factors  are considered  together is whether a state  can
successfully prevent water quality storage by the federal government if this use is not
recognized by state law as a legal use.  Resolution  of this issue requires consideration of the
exact effect to be given  state law  in  acquisition  of  water rights by the  Government for
low-flow  augmentation.  Also,  the  policy  of  the western states regarding the legality of
low-flow augmentation must be determined.

     Court  interpretations of section  8 of the  Reclamation Act of 1902, the provision
requiring  recognition  of  state law,  have  given it very limited  effect. Previous decisions
suggest that state law will  not be permitted to determine the purposes for which water may
be stored in reclamation  projects. It has been held that state law has no  control over the
operation of such projects,4^ and if the use to which water is to be put is an "operational"
matter,  it is immune to the influence of state law. Another Supreme Court  decision
suggests that state law is  limited  to the definition of water rights for which compensation
must  be paid  by the United  States,4^  apparently  placing any  question as to project
purposes  beyond the  jurisdiction of state  law.  However, there have been no court cases
dealing specifically with this  issue, and a  decision directly in  point may  be necessary to
resolve the unanswered questions.
     Although  it seems unlikely  that state law can influence  purposes to  be included in
reclamation projects, the fact that no  conclusive decision on  this point exists suggests
consideration of the status of this use under the laws of the various western states. Most of
these states  have  held  by  statutory enactment  or  clear  judicial  pronouncement  that
beneficial use is the basis, the measure, and  the limit of the  water right.  The significant
question is whether low-flow augmentation is viewed as a beneficial use. It appears that no
express  declaration of state statutory or case law concerning this water use exists in most
jurisdictions, but  the  apparent  position taken by certain states can  be determined.  The
statutes and regulations of some states suggest legal recognition of water use for this purpose
while other states deny the right of water qulaity storage.

     Kansas is an example of a state where legal recognition of low-flow augmentation can
be inferred by  reading in combination two statutory provisions.  By statute, the long range
goals of the state water plan include:
                                            118

-------
            (1)     The development, to meet the anticipated needs of the people of
        the  state,  of  sufficient  supplies of  water  for beneficial  purposes,
        including...streamflow regulation...; ...
            (3)     the protection and the improvement of the quality of the water
        supplies of'the state;...
            (6)     the prevention of the pollution of the water supplies of the state;
         417

 The section following the above quotation  from the Kansas statute authorizes the inclusion
 in publicly financed structures of reasonable amounts of storage capacity for the regulation
 of the low-flows of the watercourses for the implementation of the enumerated long range
 goals.4^° Water quality control  by streamflow regulation would thus seem to be authorized
 although not specifically mentioned.

     New Mexico  is a state where water quality control is not a legally recognized water use.
 There  is no provision in state law dealing specifically with this use, but a policy statement
 by  the New Mexico Water Quality Control Commission denies the right to make such a use.

        [Bjeneficial use is the basis, the measure and the limit of a right to the use of
        water; and priority of appropriation gives the better right. In New Mexico, water
        supply is so limited that storage for later re/ease to control pollution by dilution
        in general would constitute an intolerable waste of a vital resource.4^

     At least one  other state, while not taking a stand as strong as that of New Mexico,
appears to deny the right to store for water quality  purposes. The following quotation is
taken from the University of Colorado Law Review:

            The Colorado Water Conservation 'Board, as reported in the minutes of its
       meeting of Jan.  9,  1963, adopted a motion which generally denies that using
       good  quality  water  for  dilution  purposes is a beneficial use  in  Colorado.
       Concerning the  need for appropriating water for a beneficial use,  COLO.
       CONST, art. XVI, (sec.) 6 provides that:  'The right to divert the unappropriated
       waters of any natural stream to beneficial uses shall never be denied.' Among
       the reasons given  for the Board's policy  decision  were scarcity of water in
       Colorado for other purposes; existence  of technological processes for treating
       sewage so that it can  be compatible with downstream uses; Colorado, being one
       of the few states where all of the major streams flow out and where no major
       stream flows into the state, 'ends up on the short end of the stick' when water is
       used for diluting pollution which  affects  other states; and that a  Colorado
       Supreme Court decision  states that  use  of water for dilution is not beneficial
       use.420

     However, it appears that this right has  not  been  denied conclusively. An investigation
has  disclosed  no Colorado Supreme Court decision holding that  use of water for dilution is
                                           119

-------
not a beneficial use. In addition, a letter from the Colorado Water Conservation Board
indicates that there is no constitutional provision, statute, or decision  by the Colorado
Supreme Court stating that use of water for dilution is not a beneficial use. Regarding the
minutes referred to above, the letter indicates that one Board member made the statement
that the question had  been decided by the supreme court, but these minutes evidently are
viewed as  less than a complete denial  of  the  right  to use water  for dilution purposes.
However, the  letter states that the tenor of the Board's position is that the proper approach
to control  pollution is to eliminate it at the source rather than  attempting to use good
quality water  to dilute pollutants. Thus water quality storage would probably not be looked
upon favorably by the  Board as a use of the state's water.

     It appears that the majority of the western states have not denied the right to use water
for low-flow augmentation. Although this use, in  most cases, has not been specifically stated
to be a  permitted one, state law generally  has not excluded water quality storage; and
statutory  provisions regulating  water rights  appear  to  be sufficiently broad to allow
inclusion of this purpose  as a beneficial use. Consideration as to whether water quality
storage might be recognized as beneficial in each of the individual western states is included
in the appendix.

     In addition to the problems associated with lack  of state recognition of water quality
storage, another difficulty with respect to such storage might arise in jurisdictions where a
water right cannot exist apart from land. Some of the  western states consistently have held
that the appropriative water right is appurtenant to land.
            [A]  water right, to  be effective, must be attached to  and pertain  to a
       particular tract of land, and is in no sense a 'floating'right. We do not wish to
       be  understood as holding  that a water  right which is so attached becomes
       inseparable  from  such land.  That is to say, we  do not hold that a prior
       appropriator of water may not convey  his prior appropriation  to another,
       without the land, so as to confer upon his vendee of such water right all the
       rights which the vendor may possess, provided such vendee makes a beneficial
       use of such water right upon lands which he owns or possesses. But we desire to
       be understood simply as holding that, so  long as a  water right is attached to a
       particular piece of land, it cannot be made to do duty to such land, and as well
       to other land  not owned or possessed by such water-right holder, at the will or
       option of the latter.4?2

The  question  as  to  whether the  appropriative water  right  is  appurtenant to land  is
considered on a state by state basis in the appendix.

     If state law is given full authority to define water rights, the Government, in acquiring
such rights,  would seem bound to  buy  land to  which some water right was appurtenant.
Once acquired,  the land and  the water right are clearly federal  property and not  subject to
regulation by states. The Government may well take the position that the property interests
                                           120

-------
are divisible and the water can be used apart from the land, since dilution water is to benefit
a complete stretch of stream and not selected parcels located thereon.  The question of
whether the Government can have a property interest  in water apart from state law which
recognizes water rights only as appurtenances to la'nd appears unresolved.
                                            121

-------
                APPLICATION OF WATER TO DILUTION PURPOSES
     Water stored  for quality control purposes must be released back into natural streams
during periods of low natural  streamflow in order for dilution benefits to be obtained. Water
quality improvement is dependent on the Government being able to preserve its right to
control the water in the portion of the stream  to be benefited. Since the dilution water by
the nature of its purpose must be released during periods when water is scarce, there is likely
to be a further demand for this water by those utilizing the stream as a source of supply.
Thus, state law, which defines the water rights of these other users, may either assist or
cloud the effectiveness of low-flow augmentation as provided by federal legislation.

     Potential users of the water released  for dilution purposes may affect both its quality
and  quantity. Considerable similarity exists in state laws regarding the  use of  water as a
carrier of wastes because of the influence  of federal pollution control legislation. However,
state  law regulating the  quantitative use  of water differs in  riparian and appropriative
jurisdictions.

                        Dilution Water arid State Pollution Laws

     The theory of low-flow augmentation contemplates the improvement of water quality
during periods of low natural flow by the addition  of supplemental water from  storage
reservoirs. A basic assumption underlying this concept of pollution reduction  is that the
amount of pollutional material discharged into  a given stream will remain constant after the
dilution water  is introduced. An increase  in pollutants would destroy some or all of the
potential benefits of low-flow augmentation.  Therefore, it is  necessary to consider whether
existing state law can prevent these  increases in pollutional discharges  when  dilution is
present.

     The states are required by federal law to establish and maintain water quality standards
for interstate waters;423  jne maintenance of  these stream standards does not assure, by
itself, the benefits anticipated from water quality storage. Enforcement of stream standards
would not preclude the  discharge of pollutants in greater concentrations and/or amounts
since the augmented flow could  accomodate an increase in pollution without a reduction in
the water quality existing before dilution.

     In reality, the maintenance of stream standards is not the sole restraint on pollutional
discharges.  Federal  pollution  control  legislation  requires  treatment of  wastes  to  the
maximum practicable extent, irrespective  of stream quality standards.424 Thus, a polluter
would not be free to alter his degree of treatment to take advantage of higher flows due to
reservoir releases. However, a required minimum degree of treatment would not foreclose an
increased quantity of effluent from being discharged to the augmented flow as the result of
expanded industrial  production.  Only specific limitations  on discharge  quantities would
prevent such  increases.
                                            122

-------
     Another situation where the purposes  of low-flow augmentation  might be aborted
involves polluters who utilize waste storage systems. The discharges from such systems are
usually proportional  to stream  flow  in  order to prevent violation  of stream  standards.  If
state  regulations do not  specify  appropriate limitations with  respect to  this  type of
discharge, these releases of pollutants from waste storage could be increased during flow
augmentation. Again, existing stream  standards might not be violated, but the occurrence of
such discharges would reduce the benefits obtained from water quality storage.

     The  important question is whether existing state  laws are adequate to prevent these
potential  sources of abuse from frustrating the intent behind federal water quality storage
legislation. State pollution  control laws commonly establish agencies to administer these
laws by licensing pollutional discharges. The licenses (or other forms of authority) issued by
the state  agency are a key factor in the regulation of the waste discharges  by potential
polluters.  The provisions of a license authorizing a discharge must bear some relationship to
stream standards established  in accordance  with federal  legislation. These standards are
dependent on physical conditions existing at the time of their  enactment and the state of
technology  with regard to  waste  treatment.  However, the issuance of a  license containing
provisions based on  a certain set of standards does not create a static condition. These
provisions may  be  modified  to  require  an improvement  in  water  quality whenever
conditions make such improvement reasonable and practicable of attainment.4^5

     The  classic situation for  water quality storage is where desirable water quality can be
maintained throughout the  year except for those few months of lowest flow.  Violation of
water  quality  standards  during this annual  period of low-flow  might be  condoned  if
compliance is not technically feasible short of cessation of industrial production or other
beneficial activities giving rise to pollution. The addition  of dilution water,  in this case,
makes year-round enforcement of standards,  based  on the normal flow of the stream,
practical.  The  regulatory agency in  this  situation  would be  in a position to  insure the
benefits of low-flow augmentation by strict enforcement of existing standards. If standards
originally  had been set below desirable levels  because the economics of adequate treatment
are prohibitive under the circumstances  or lack of adequate dilution water during certain
periods of the year,  then  the  situation is capable of remedy. The addition of dilution water
could  justify upward  revision  of water standards and a modification  of  licenses  for
pollutional discharges tailored to reflect these  changed conditions.

     Thus, it appears that within  the framework of state pollution  control law there  exist
institutional arrangements for  prevention of pollution likely to deny the benefits anticipated
undsr federal legislation for water quality storage. However, the effectiveness of state law  in
protecting dilution  water  depends  on  the  satisfactory  regulation  of  point sources of
pollution.  Adequate  resources  for enforcement  are  an absolute  necessity if releases of
dilution water  are to be  protected at all  times. From the standpoint of  maximizing the
benefits of low-flow  augmentation, it would  seem  desirable  to supplement existing state
laws with provisions  specifically prohibiting  holders of state licenses for waste discharge
from increasing  pollution to take advantage  of the  release of dilution water  from federal
                                            123

-------
reservoirs. At present, state regulations to this effect apparently have not been adequately
considered.
                          Consumptive Use of Dilution Water

     Tfae diversion and consumptive use of dilution water after it is released from storage is
another area where the provisions  of state water law are significant. The potential for
.subjecting  (dilution  water  to  quantitative  diminution  varies  between   riparian   and
appnmpniafce priisd icti o ns.
Riparian Jurisdictions
             consideration of the riparian doctrine has indicated that the present state of
riparian ;law allows riparian landowners to make a  reasonable use of all water flowing in a
natural stream."^ Dilution water conceivably could be included as water subject to such
use. The eouiits have indicated  that it  is immaterial how water becomes part of  a natural
stream and that riparian rights attach  regardless  of its source.427  it should be noted,
however, that there appear to have been very few decisions concerning the general rights of
riparian owners in water added to the natural flow of a stream, and the antiquity of these
decisions might limit  their applicability to  contemporary problems.  No cases have been
found concerning  the  specific problem area under  consideration. Because  of this lack of
strong and clear precedent, it is difficult to  predict the outcome of possible water rights
conflicts invoking the use of water released from storage for low-flow augmentation in
riparian states.
Appropriative Jurisdictions

In the western states, the possibility that water stored for quality control could be used for
other purposes before the benefits of dilution were obtained is much less. The appropriative
doctrine seeks to protect the interests of parties  with valid water  rights until  the water  is
applied to its intended function.428 jnjs protection seems to extend to water stored for
quality purposes, provided the storage is recognized  as a valid water right under the law of
the state.

     The  applicability of this protection to dilution water stored in  states  that do not
accord legal  recognition to  use of  water for dilution  appears doubtful, although  water
quality storage  in such  states is conceivable.  Storage of dilution  water by the  Corps of
Engineers in connection with  projects  incorporating  navigational  improvements would
probably be upheld over state objections as a valid exercise of constitutional powers granted
to  the federal  government  under  the  commerce  clause.  (Provisions  in  flood control
Iegislation429 may require the payment of compensation if private water rights are taken).
                                            124

-------
Although  it cannot be stated conclusively, the Bureau of Reclamation could probably store
dilution water, notwithstanding the lack of state recognition of this use as beneficial. Court
interpretations of reclamation law suggest that state law will not be allowed  to control
reclamation project purposes.  Although a state might not be able to prevent water quality
storage  by these agencies, application  of the water to dilution purposes still would not be
viewed as a beneficial use in  some states.  Unless the use is  beneficial, the existence of a
water right as recognized by state law is impossible. Therefore, the Government in seeking
to prevent  diversion  and use  of  the  water by others, would have to look beyond state
law.

     This  lack of recognition of the Government's right in water stored and released for
flow augmentation could give rise to an immediate confrontation between the Government
and those claiming under color of a state created property right. If a state took the position
that such water upon  release  is  "unappropriated"  water, it  would  be available for
appropriation by another party. If the state's position were upheld, the benefits  intended
from the storage could be reduced or eliminated. Another possibility is  that water subject to
conflict wil I have acquired the characteristics of federal property, thus removing it from the
control  of state law. The federal courts might hold that the conversion to property occurs
whenever  the Government  acquires  water rights, by  condemnation  or  otherwise, for
purposes  not  recognized as a  beneficial use by state  law. This holding would  accord' the
water the same protection given any other property of the Government and preclude any
interference with this water by those holding water rights created by state law. It  is not clear
how this potential conflict between  the purposes of federal legislation and state law will be
resolved.
                                            125

-------
                                 FOOTNOTES







 1.    Act of May 25, 1832, ch. 106, 4 Stat. 518.




 2.    Jd.. sec- 3.



 3.    Act of April 16, 1906, ch. 1631, 34 Stat. 116.




 4.    Id,, sec. 4 at 116-17




 5.    Act of February 25, 1920, ch. 86, 41  Stat. 451.




 6.    Act of August 4, 1939, ch. 418, 53 Stat. 1187.




 7.    IcL, sec. 9(c) at 1194.




 8.    id.






 9:'    Act of August  7, 1956, ch. 1027, 70 Stat. 1088.




10.    Act of July 3,  1958, P.L. 85-500, 72 Stat. 297, 319.




11.    Act of December 22, 1944, ch. 665, sec. 2, 58 Stat. 887,




12.    Federal Water  Power Act, ch. 285, 41  Stat. 1063 (1920).




13.    Act of June 22, 1936, ch. 688, 49 Stat. 1570.




14.    Act of December 22, 1944, ch. 665, 58 Stat. 887.







15.    Act of August  3, 1968, P.L. 90-451, 82 Stat. 616.




16.    Act of August 26, 1935, ch. 687, 49 Stat. 803, 840.




17.    Act of July 3,  1958, P.L. 85-500, 72 Stat. 297, 319.




18.    id,




19.    S. Rep No.  1478-1737, 85th Cong., 2d Sess.  133 (1958).




20.    Act of July 3,  1958, P.L. 85-500, 72 Stat. 297,319.





21.    Id. at 320.
                                          126

-------
22.    Senator Watkins  believed  that  the  eastern states  eventually would adopt the
       appropriative  system because  of  the inevitable water shortage in the  future
       resulting from increasing population and water use.

23.    Hearings on S. 3910 before the Subcomm. on Flood Control  Rivers and Harbors
       of the Senate Subcomm. on Public Works, 85th Cong., 2d Session at p. 131  (1958).

24.    Jd_. at133.

25.    Jd_.

26.    Act of-May 20, 1862, ch. 75, 12 Stat. 392.

27     Act of March 3, 1877, ch. 107, 19 Stat. 377.

28.    The  Reclamation  Act  of  1902,  ch.  1093,  32  Stat. 388.  Since the  initial
       Reclamation Act was passed, many acts have been enacted which are considered to
       be either a part of reclamation law or a supplement  thereto. Legislation which is a
       part  of reclamation  law and the many acts which  merely affect the Bureau of
       Reclamation were  compiled by  the Bureau and published  under the title  Federal
       Reclamation Laws, (Published by the Bureau of Reclamation and printed by the
       Government Printing Office). Title 43,  -U.S.C.,  is a compilation of most of the
       reclamation statutes, but is not all  inclusive, for many acts which directly affect
       reclamation are under various other titles in  the  U.S.C. (i.e., Title 16). It must be
       noted that Title 43 has  not been enacted into positive law. Therefore, if there is a
       discrepancy between the U.S.C. and the  original statutes, the latter controls. For
       this reason statutory material related to  reclamation law is cited to the Statutes at
       Large.
29.    The  states originally included in  the  Reclamation  Act were Arizona,  California,
       Colorado, Idaho,  Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota,
       Oklahoma,  Oregon, South  Dakota,   Utah,  Washington,  and  Wyoming.  The
       Reclamation Act of 1902, ch. 1093, 32 Stat. 388.

30.    The Reclamation Act of 1902, ch.  1093, 32 Stat. 388-90.

31.    167 F.881 (9th Cir. 1909).

32.    172 F. 615 (D. Idaho 1909).

33.    Burleyv. United States, 179 F. 1 (9th Cir. 1910).

34.    339 U.S. 725(1950).

35.    Id. at 738.
                                           127

-------
 36.    See Hungry  Horse Dam Act, 58 Stat. 270 (1944), as amended by 72 Stat.  147
       (1958); San Angelo Project Act, 71 Stat. 372 (1957); and Boulder Canyon Project
       Act, 45 Stat. 1057 (1928). These acts give examples of project purposes.

 37.    Act of September 2, 1964, P.L. 88-565, 78 Stat. 848.

 38.    Act of February 25, 1956, P.L. 419, 70 Stat. 28.

 39.    Omnibus Adjustment Act of 1926, ch. 383, 44 Stat. 649.

 40.    See, e.g., Act of June 13,  1962, P.L. 87-483, 76 Stat. 96; Act of August 16, 1957,
       P.L. 85-152, 71 Stat. 372; Act of December 29, 1950, ch. 1183, 64 Stat. 1124; Act
       of August 4, 1939, ch. 418, 53 Stat. 1187 at 1192; Act of August 2, 1937, ch. 557,
       50 Stat. 557, as amended. Act of April 9, 1938, ch. 134, 52 Stat. 211; Omnibus
       Adjustment Act of 1926, ch. 383, 44 Stat. 649.

 41.    The Reclamation Act of 1902, ch. 1093, 32 Stat. 388, 389.

 42.    Act of August 13, 1914, ch. 247, 38 Stat. 686.

 43.    Act of December 5, 1924, ch. 4, 43 Stat. 672, 702.

 44.    Act of August 8, 1958, P. L. 85-611,72 Stat. 542.

 45.    Act of August 13, 1914, ch. 247, 38 Stat. 678.

 46.    Act of August 8, 1958, P.L. 85-611, 72 Stat. 542.

 47.    The Reclamation Act of 1902, ch. 1093, 32 Stat. 388, 389.

 48.    The Reclamation Act of 1902, ch. 1093, sec. 8, 32 Stat. 388, 390.

 49.    276 F.41 (D. Idaho 1921).

 50.    ]dL at 42.

 51.    Idev.  United States. 263 U.S. 497, 505-06 (1924).

 52.    300 U.S. 82 (1937).

 53.    jdL at 95.

 54.    Id, at 95-96.

55.    325 U.S. 589(1945).

56.    Id. at 614-15.
                                         128

-------
57.    276 F.41 (D. Idaho 1921).

58.    263 U.S. 497 (1924).

59.    Nebraska v. Wyoming, 325 U.S. 589, 637 (1945).

60.    Id, at 615.

61.    The  Reclamation Act of 1902, ch. 1093,  32 Stat. 388, 389; Act of August  13,
       1914, ch. 247, 38 Stat. 686;_see_contract provision in text at n. 69, infra.

62.    The Reclamation Act of  1902, ch. 1093, sec. 8, 32 Stat. 388, 390.

63.    Act of August 13,1914,  ch. 247, 38 Stat. 686, 689-90.

64.    This freedom  from  liability  is stated as  a  provision in  reclamation  project
       repayment  contracts.  See, e.g., Bureau of  Reclamation, Reclamation Repayment
       Contracts, S. Doc. no. 92, 88th Cong., 2d Sess. 34, 73,  101, 116 (1964).

65.    373 U.S. 546 (1963).

66.    Boulder Canyon Project Act, ch. 42, 45 Stat. 1057 (1928).

67.    Arizona v. California, 373 U.S. 546, 593-94 (1963).

68.    This concept is the basic  principle of the appropriative doctrine.

69.    Bureau of Reclamation,  Reclamation  Repayment Contracts, S. Doc; No. 92, 88th
       Cong., 2d Sess. 116 (1964).

70.    The Reclamation Act of  1902, ch. 1093, sec. 7, 8, 32 Stat. 388, 389-90.

71.    Id,, sec. 7.

72.    Act of February 26, 1931, ch. 307, 46 Stat. 1421.

73.    The Tucker Act, March 3, 1887, ch. 359, 24 Stat. 505. Section.1 of the Tucker Act
       reads in part as follows:  "That the Court of Clajms shall have jurisdiction to hear
       and determine the following matters:
       First. All claims founded upon  the Constitution of the United States or any law of
       Congress, except for pensions, or upon any regulation  of an Executive Department,
       or upon any contract, express or implied, with the Government of the United States,
       or for damages, liquidated  or unliquidated,  be entitled to redress against  the United
       States either  in a  court of  law,  equity, or  admiralty  if  the United States were
       suable...."

74.    372 U.S. 609(1963).


                                           129

-------
75.    Act of August 26,  1937, ch. 832, sec. 2, 50 Stat. 844. Although the Act is not a
       part  of the reclamation law, it transferred responsibility for the Central Valley
       Project, Calif., from the cognizance of the Sec.  of War to the Sec. of the Interior,
       to be administered in accordance with the Reclamation Law.

76.    Act of August 26, 1937, ch. 832, sec. 2, 50 Stat. 844, 850.

77.    339 U.S. 725 (1950).

78.    357 U.S. 275 (1958).

79.    Dugan v. Rank, 372 U.S. 609, 619 (1963).

80.    See, e.g., City of Fresno v. California, 372 U.S. 627  (1963); Dugan  v.  Rank, 372
       U.S.  609  (1963);  Ivanhoe  Irrigation Dist. v. McCracken, 357  U.S. 275 (1958);
       United States v.  Gerlach  Live Stock Co.,  339  U.S. 725  (1950); United States v.
       O'Neill, 198 F 677 (D. Colo. 1912).

81.    162 F  Supp. 403 (Ct. Cl. 1958).

82.    257 U.S. 138 (1921).

83.    jd, at  146.

84.    The Reclamation Act of 1902. ch. 1093, sec. 8, 32 Stat. 388, 390.

85.    179 F. 1 (9th Cir. 1910).

86.    id., at 9.

87.    209 F  274 (E.D. Wash. 1913).

88.    id at 277.

89.    Mettler v.t Ames  Realty Co, 61 Mont.  152, 201  P 702  (1921). In reaching this
       conclusion, the court appears to have interpreted a Montana Statute stating that
       the Government  may appropriate water in the same manner as individuals to mean
       that the Government must appropriate as an  individual. The existing statutory
       provision (Mont.  Rev. Code. Ann. sec. 89-808 (1947)) contains  language identical
       to that subjected  to interpretation.

90.    See, e.g., N. M. Stat. Ann. sec. 75-5-31 (1953).

91.    357 U.S. 275(1958).

92.    325 U.S. 589(1945).
                                          130

-------
 93.    Ivanhoe Irrigation District v. McCracken, 357 U.S. 275, 287 (1958).

 94.    Ivanhoe Irrigation District v. McCracken, 357 U.S. 275, 291 (1958).

 95.    Ivanhoe Irrigation District v. McCracken, 357 U.S. 275 (1958).

 96.    372 U.S. 609 (1963).

 97.    See, e.g.,  Carlsbad Mut. Co. v.  San Luis  Rey Development Co., 78 Cat. App. 2d
        900,  178 P.  2d 844 (1947);  Prather v. Hoberg, 24 Cal.  2d 549,  150 P. 2d 405
        (1944); Rancho Santa Margarita v. Vail, 11 Cal. 2d 501, 81 P 2d 533, (1938); City
        of  Lodi v. East Bay Municipal Utility Dist., 7 Cal. 2d 316,  60 P  2d 439 (1936);
        Joerger v. Mt. Shasta Power Corp., 214 Cal. 630, 7 P  2d 706 (1932); Half  Moon
        Bay Land Co. v. Cowell, 173  Cal. 543,  160 P 675 (1916); Watson v.  Lawson, 166
        Cal. 235,  135 P. 961 (1913);  Craig v. Crafton Water Co., 141  Cal.  178, 74 P. 762
        (1903).

 98.    Ivanhoe Irrigation District v. McCracken, 357 U.S. 275, 295 (1958).

 99.    City of Fresno v. California, 372 U.S. 627, 629-30 (1963).

100.    Bureau of Reclamation, Reclamation Repayment Contracts, S. Doc. No. 92, 88th
        Cong., 2d Sess. 33 (1964).

101.    jd, at 31.

102.    Id, at 71.

103.    269 F. 80 (8th  Cir. 1920).

104.    276 F. 41 (D. Idaho 1921).

105.    263 U.S. 497 (1924).

106.    6 Colo. App.  130, 40 P. 1066  (1895).  The other two cases are Platte Valley
        Irrigation Ca v. Central Trust Co., 32 Colo. 102, 75 P  391  (1903), and Hall v.
        Lincoln, 10 Colo. App. 360, 50 P. 1047 (1897).

107.    Idev. United States, 263 U.S.  497, 506-07 (1924).

108.    Bureau of Reclamation, Reclamation Repayment Contracts, S. Doc. No. 92, 88th
        Cong., 2d Sess. 33 (1964).

109.    163 F. Supp. 838 (Ct. CD, cert, denied 358 U.S. 906 (1958).

110.    Nebraska v. Wyoming, 325 U.S. 689 (1945); Ickesv. Fox, 300 U.S. 82 (1937).
                                          131

-------
111.
112.
113.
114.
115.
116.
117.
118.
119.
120.
121.
122.
123.
124.
125.
126.
127.
128.
129.
130.
131.
Act of
Bureau
Cong.,
Id. at 1
jd. at 1
August 26, 1937, ch. 832, sec. 2, 50 Stat. 844, 850.
of Reclamation, Reclamation Repayment Contracts, S. Doc. N
2dSess. 105 (1964).
10.
11-13.
jd. at 105.
Id at 1
]d. at 1
Id. at 1
22 U.S
15-16.
13.
18.
. (9 Wheat) 1 (1824).
The Daniel Ball, 77 U.S. (10 Wall.) 557, 563 (1870).
311 U.
S. 377 (1940).
Id. at 406-09.
Jd. at 434.
313 U.
S. 508, 523(1941).
Id. at 525.
174 U.
5.690(1898).
Oklahoma v. Guv F. Atkinson Co., 313 U.S. 508 (1941 ).
United
United
229 U.
States v. Appalachian Elec. Power Co., 31 1 U.S. 377 (1940).
States v. Virginia Elec. Power Co., 365 U.S. 624. 627-28 (1961).
S. 53 (1913).
Id. at 69.
United States v. Appalachian Elec. Power Co.. 31 1  U.S. 377, 424 (1940).
                                  132

-------
133.
134.
135.
136.
137.
138.
139.
140.
141.
142.
143.
144.
145.
146.
147.
148.
149.
150.
151.
152.
153.
United States v. Twin City Power Co., 350 U.S. 222, 22'
United States v. Kansas City Life Ins. Co., 339 U.S. 799
id at 804-11.
United States v. Virginia Elec. Power Co., 365 U.S. 624,
United States v. Chandler-Dunbar Water Power Co., 229
United States v. Appalachian Elec. Power Co., 31 1 U.S. ;
Oklahoma v. Guy F.Atkinson Co., 313 U.S. 508 (1941)
Id
297 U.S. 288(1936).
National Defense Act, ch. 134, 39 Stat. 166 (1916).
Ashwander v. T.V.A., 297 U.S. 288, 328 (1936).
]d at 333.
]d at 336.
Oklahoma v. Guv F. Atkinson Co., 313 U.S. 508 (1941)
]d at 532-33.
United States v. Twin City Power Co., 350 U.S. 222, 2
Guy F. Atkinson Co., 313 U.S. 508, 533 (1941).
United States v. Guv F. Atkinson Co., 313 U.S. 508, 53:
United States v. Gerlach Live Stock Co., 339 U.S. 725, 1
Id
339 U.S. 725(1950).
133

-------
154.     Jd.at736.

155.     Act of October 17, 1940, ch. 895, 54 Stat. 1198.

156.     Emergency Relief Appropriations Act of 1935, ch. 48, 49 Stat. 115.

157     United States v. Gerlach Live Stock Co., 339 U.S. 725, 732 (1950).

158.     IcL at 734.

159.     Act of December 22, 1944, ch. 665, 58 Stat. 887.

160.     |d,, sec. 1.

161.     360 F 2d 184 (9th Cir. 1966).

162.     id, at 192-93.

163.     Subsequent legislation authorizing additional projects contains provisions whereby
        these projects also are subject to the qualifications of section 1 of the 1944 Act.
        See, e.g., Flood Control  Act  of 1958, P.L. 85-500, sec. 202, 72 Stat. 305;  Flood
        Control  Act of  1960,  P.L. 86-645, sec.  202, 74 Stat. 488; Flood Control Act of
        1962, P.L.  87-874,  sec. 202, 76  Stat.  1180; Act-  of  December 30, 1963, P.L.
        88-253, 77 Stat. 840; Flood Control Act of 1965, P.L.  98-298, sec. 203, 79 Stat.
        1073; Flood Control Act of  1966, P.L. 89-789,  sec.  202,  80 Stat.  1418;  Flood
        Control Act of 1968, P.L. 90-483, sec. 202, 82 Stat. 739.

164.     The  98th meridian is  roughly  a  north and  south line following  the eastern
        boundaries of  the Dakotas.

165.     United States v. Twin City Power Co., 350 U.S. 222, 229 (1955).

166.     Water Supply Act of 1958, P.L. 85-500, 72 Stat. 319.

167.     United States v. Twin City Power Co., 350 U.S. 222, 224 (1955).

168.     90F.Supp. 773 (S.D.Cal. 1950).

169.     Jd at 789.

170.     The cases relied on by the United States included:  Oklahoma v. Guy  F. Atkinson
        Co.. 313  U.S.  508 (1941); United States v. Appalachian Elec. Power Co., 311 U.S.
                                          134

-------
        377  (1940);  United  States v.  Chandler-Dunbar Water  Power Co.,  229 U.S. 53
        (1913).

171.    Rankv. Krug, 90 F Supp. 773, 792 (S. D. Cal.  1950).

172.    313 U.S. 508 (1940).

173.    id. at 532-33.

174.    Id at 508.

175.    Oklahoma v. Guy F  Atkinson Co., 313 U.S. 508 (1941).

176.    United States v. Chandler-Dunbar Water Power  Co., 229 U.S. 53 (1913).

177     Id at 76.

178.    Water Supply Act of 1958, P.L. 85-500, 72 Stat. 319.

179.    See text following n. 21, supra.

180.    Turnery. Kings River Conservation District, 360 F 2nd. 184 (9th Cir. 1966).

181.    United States  Army Corps of Engineers,  "Contract Between the United States of
        America and	" (1968).

182.    Id

183.    id

184.    id

185.    The United States usually places  some general  limitations on the operations of the
        user.  The  contract  guide  referred   to  above  offers  the  possibility  for  the
        Government to reserve the rights to  maintain a specified minimum downstream
        release at all  times,  to lower the water  level  to a certain specified  elevation for
        flood  control purposes during flood control seasons, and to take such measures as
        may be necessary in the operation of the project to preserve life or property.

186.     Act of October 16, 1963, P. L. 88-140, 77  Stat.  249-50.

187.     Watershed Protection and Flood Prevention Act, P.L. 566, 68 Stat. 666 (1954), as_
        amended, P.L. 1018, 70 Stat.  1018 (1956); P.L. 85-865, 72 Stat. 1605 (1958);  P.L.

                                          135

-------
        86-468, 74 Stat. 131  (1960); P.L, 87-703, 76 Stat. 605, 608; P.L. 89-337, 79 Stat.
        1300(1956).

188.    Watershed Protection and Flood Prevention Act, P.L. 566, sec. 2, 68 Stat. 666, js.
        amended,  P.L.  1018, sec.  2, 70  Stat.  1018  (1956); P.L. 89-337, 79  Stat. 1300
        (1956).

189.    H. R. Rep. No. 1810, 84th Cong.,  2d Sess. 2 (1956).

190.    "Local organization" is defined by the Act as  "...any State, political subdivision
        thereof, soil or water conservation district, flood prevention or control district, or
        combinations  thereof, or any other agency having  authority under state  law to
        carry out,  maintain and operate the works of improvement." Watershed Protection
        and Flood Prevention Act, P.L. 566, sec. 2, 68 Stat. 666 (1954).

191.    H  R. Rep. No. 1810, 84th Cong.,  2d Sess. 5(1956).

192.    Id,

193.    Watershed  Protection and Flood Prevention Act,  P.L. 566, sec. 4, 68 Stat. 666, 667
        (1954).

194.    ]d.

195.    Id., as amended, P.L. 1018, sec. 4,  70 Stat. 1088, 1089 (1956).

196.    Act of August 7, 1956,  P.L. 1018, 70 Stat.  1088  (1956),  amending, Watershed
        Protection and Flood Prevention Act, P.L. 566, 68  Stat. 666 (1954).

197.    Watershed  Protection and  Flood  Prevention  Act, P.L. 566,  68 Stat. 666, 667
        (1954).

198.    H. R. Rep. No. 1810, 84th Cong., 2d Sess. 3 (1956).

199.    jd.

200.    Id,

201.    Watershed  Protection and  Flood Prevention  Act, P.L.  566, 68 Stat 666 667
        (1954).

202.    Act of July 3, 1958, P.L. 85-500, 72 Stat. 297, 319.

203.    Federal Water Power Act, ch. 285, 41 Stat. 1063 (1920).
                                          136

-------
204.    jd. at 1063.

205.    Public Utilities Act of  1935,  tit.  II,  ch. 687, sec.  202(e), 49  Stat. 803, 840,
        formerly ch. 285, sec. 4(e), 41 Stat. 1063 (1920).

206.    Idsec. 206(a).

207.    jd. sec. 206(c).

208.    jd. sec. 204.

209.    Letter from Edward Berlin, Ass't. -General  Counsel  of FPC, to  Hon. Harley 0.
        Staggers, Chairman, House Committee  on Interstate and Foreign Commerce, June
        24, 1968, 114 Cong. Rec. No. 122, 90th Cong. 2d Sess.

210.    355 F. 2d 683  (1 st CTr. 1966).

211.    Sax,  "Licenses    Restricting  Private   Rights  in  Public Resources,"  7 Natural
        Resources J. 339 (1967).

212.    Rumford Falls Power Co. v. FPC. 355 F 2d 683,'688 (1st Cir. 1966).

213.    Rumford Falls Power Co., Op. No. 465-A, 2 (F.P.C. Sept. 9, 1966).

214.    jd.

215.    jd.at3.

216.    jd.

217.    jd,at4.

218.    jd.at5.

219.    jd,

220.    Act of August 3, 1968, P.L. 90-451, 82  Stat. 616.


221.    jd.

222.    Public Utilities Act  of  1935, tit. II,  ch. 687, sec.  202(e), 49  Stat. 803, 840,
        formerly ch. 285, sec. 4(e), 41 Stat. 1063 (1920).

223.    Id. sec. 206(a).
                                          137

-------
224.    See, e.g., Udall v. FPC, 387  U.S. 428 (1967); United States v. Virginia Elec. &
        Power Co., 365 U.S. 624, 639 (1961}; FPC v. Tuscarora Indian Nation,  362 U.S.
        99 (1960); City  of  Tucoma v.  Taxpayers, 357 U.S. 320, 324  (1958); FPC v.
        Oregon,  349 U.S. 435, 442 (1955); Chapman v. FPC, 345  U.S. 153, 169 (1953).
        For further examples see cases cited within the above cases.

225.    Water Power Hearings before the House Committee on Water Power, 65th Cong.,
        2dSess.  (1918).

226.    Id at 96.

227.    Act of August 8, 1917, ch. 49, 40 Stat. 250.

228.    1^at 269.

229.    Water Power Hearings before the House Committee on Water Power, 65th Cong.,
        2dSess.  459-60(1918).

230.    Public Utilities Act  of  1935, tit.  II,  ch. 687,  sec. 202 (e), 49 Stat. 803, 840;
        formerly ch. 285, sec. 4(e), 41 Stat. 1063 (1920).

231.    For a detailed  discussion of these events leading to the 1944 amendments to the
        Flood Control Act, see 1944 U.S. Code Cong. Service 1349.

232.    Hearings on H. R. 4485 Before the House Flood Control Committee, 78th Cong.,
        2dSess.  (1944).

233.    Act of December 22,  1944, ch. 665, 58 Stat. 887. By Presidential direction, only
        those  flood control projects of  direct importance  to  the nation were to be
        undertaken during the war. These projects were designed to be carried out after the
        war and  were  designed to provide the additional  benefit of jobs  for returning
        servicemen. 1944 U.S. Code Cong. Service 1349, 1351.

234.    Act of December 22, 1944, ch. 665, sec. 2, 58 Stat. 887.

235.    1944 U.S. Code Cong. Service 1349, 1354.

236.    Act of December 22, 1944, ch. 665, sec. 6,  58 Stat. 887. Section 6 in the original
        text  concerned  the  "Secretary  of  War" and the "Department of War."  The
        "Department of War" has since  been  designated the  "Department of the Army"
        and "Secretary of War" was  changed  to "Secretary of the Army," These newer
        phrases are used in the present text of the section-33 U.S.C.A., sec. 708 (1957).

237.    Hearings on H. R. 4485 Before the Senate Flood Control Committee, 78th Cong.,
        2dSess.  at 558 (1944).

238.    Id, at 559.


                                          138

-------
239.    jd.

240.    Id at 560.

241.    Act of October 31, 1951, P.L. 247, sec. 1 (59), 65 Stat. 703.

242.    Act of May 23, 1952, P. L. 360, 66 Stat. 93.

243.    1952 Code Cong. & Ad. News 1488.

244.    The  Reclamation Act of 1902, ch. 1093, 32 Stat. 388.

245.    City of Fresno v.  California,  372 U.S. 627, 629-30 (1963); Ivanhoe  Irrigation
        District v.  McCracken, 357 U.S. 275 (1958).

246.    This requirement is contained in the contracts between the Corps of Engineers and
        water users. See  United  States Army Corps of Engineers, "Contract Between the
        United States of America and	" (1968).

247.    Watershed Protection and Flood Prevention Act, P.L. 566, sec. 4, 68 Stat. 666, 667
        (1954)

248.    Hite v. Town of Luray.  175 Va. 218,  226,  8 S.E. 2d 379, 382  (1940); see also
        Fioughton  v. Thiele Kaolin Ca, 209 Ga. 577, 74 S.E. 2d 844 (1953); Herminghaus
        v.  Southern California Edison  Co., 200  Cal. 81,  252  P 607 (1926); Kraven v.
        Smith,  164 Ky. 674, 177  S.W. 286 (Ct. App. 1915).

249.    Thurston v. City of Portsmouth, 205 Va. 909, 914, 140 S.E. 2d 678 (1965).

250.    Virginia Hot Springs  Ca v. Hoover, 143 Va. 460,  467, 130 S.E.  408 (1925); see
        also  Carlsbad Mutual  Water Co. v. San Luis  Rey Development Co., 178 P 2d 844,
        78 Cal. App. 2d 900 (D.C. 1947); City of Louisville v. Tway, 297 Ky.  565, 180
        S.W. 2d 278 (1944);  Robertson v. Arnold, 182Ga. 664, 186 S.E. 806 (1936).

251.    Davis v. Town of Harrisonburg, 116 Va. 864, 869,  83 S.E. 401 (1914).

252.    Pabst v. Finmand, 190 Cal. 124, 211 P 11, 13 (1922); see also  Price v.  High Shoals
        Mfg. Ca, 132 Ga. 246, 64 S.E. 87, 88 (1909).

253.    Hite  v.  Town of Luray, 175 Va. 218, 226, 8 S.E. 2d 369 (1940), quoting from 1
        Minor, Real Property, sec. 55 (2d. ed. 1928).

254.    Kyser v. New York  Cent. FT Co., 151  Misc. 226,  271 NYS  182, 186  (Sup. Ct.
        1934).

255.    Trevett v. Prison Ass'n., 98 Va. 332, 365 S.E. 373, 376 (1900).
                                          139

-------
 256.    See, e^ Va. Code Ann. sec. 62.1-17 (1950); Ga. Code Ann. sec. 17-510(2) (Supp.
        1968);Cal. Water Code sec. 13000.2 (West Supp. 1968).

 257.    Water Quality Act of 1965, P.L. 89-234, 79 Stat. 903.

 258.    Arminius Chemical Co. v. Landrum, 113 Va. 7,  13, 73S.E. 459 (1912).

 259.    143 Va. 460, 130 S.E. 408 (1925).

 260.    jd.  at 467; see also Stratton v. Mt. Hermon Boys' School, 216 Mass. 83, 103 N.E.
        87 (1913).

 261.    Town of Gordonsville v. Zinn, 129 Va. 542, 560, 106 S.E. 508 (1921).

 262.    Lawrie v. Sillsby, 82 Vt. 505, 74 A. 94, 96 (1909).

 263.    See, Town of Gordonsville v. Zinn. 129 Va. 542, 561-62, 106 S.E. 508 (1921).

 264.    Mt. Shasta Power  Corp. v. McArthur. 109 Cal. App. 171, 292 P. 549 (D.C. 1930).

 265.    This discussion of prescription is based on 93 C.J.S. Water sec. 158-66 (1956).

 266.    178 Cal. 450, 173  P. 994 (1918).

 267.    ]d. at 996.

 268.    200 Cal. 81, 252 P. 607 (1926), cert, denied. 2,275 U.S. 486 (1927).

 269.    339 U.S. 725(1950).

 270.    Gin S.  Chow v. City of Santa Barbara. 217 Cal.  673, 22 P. 2d 5, 10 (1933); see also
        Gallatin v. Corning Irrigation Co., 163 Cal. 405, 126 P. 864 (1912).

 271.    Cal. Const.. Art. 14, sec. 3.

 272.    See, Town of Gordonsville v. Zinn. 129 Va. 542, 560, 106 S.E. 508 (1921).


 273.    102111.177(1882).

 274.    ]d at 201-02.

275.    Id at 184.

276.    Id. at 192.
                                         140

-------
277.    Jd at 193-95.

278.    Ellis, Mann, Krausz, Water-Use Law in Illinois, p. 52.

279.    Druleyv. Adam. 102 III. 177. 201 (1882).

280.    Id at 204.

281.    1 Saxton (N. J.) 157 (1830).

282.    Druleyv. Adam. 102 III. 177, 200 (1882).

283.    ]d. at 194.

284.    Id. at 197.

285.    id. at 204.

286.    1 Saxton (N. J.) 157 (1830).

287.    9 N. H. 454 (1838).

288.    23 Cal. 2d 68, 142 P. 2d 289 (1943).

289.    Id. at 293.

290.    Gin S. Chow v. City of Santa Barbara. 217 Cal. 673, 22 P. 2d 5, 10 (1933).

291.    102111.177(1882).

292.    id at 193-94.

293.    Town of Purcellville v. Potts, 179 Va. 514, 521, 19 S.E. 2d 700 (1942); see also
        Pernell v. City of Henderson, 220 N.C. 79, 16 S.E. 2d 449 (1941).

294.    179 Va.  514, 19 S.E. 2d 700 (1942).

295.    id, at 524.

296.    See Town of Gordonsville v. Zinn, 129 Va. 542, 560-62, 106 S.E. 508 (1921).

297.    143 Va. 460, 130 S.E. 408 (1925).

298.    185 Mich. 454, 152 N.W. 251 (1915).
                                         141

-------
299.    ]d, at 255.

300.    3 U. Va. L. Rev. 65-66 (1915).

301.    116 Va. 864, 83 S.E. 401  (1914).

302.    ]d at 868.

303.    jd, at 870.

304.    jd. at 868.

305.    Seneca  Consolidated Gold Mines C_o. v. Great Western Power Co.. 287 P 93, 97
        (1930).

306.    129 Va. 542, 106  S.E. 508 (1921).

307.    Peabodyv. City of Vallejo. 2Cal. 2d351.40P 2d 486, 494 (1935).

308.    72 Ohio App. 93,  50 N.E. 2d 897 (1943).

309.    |d, at 901.



310.    190 Cal. 124,211  P 11 (1922).

311.    Id at 14-15.

312.    Lindblom v. Round  Valley Water Co., 178 Cal. 450, 173 P. 994,997 (1918).

313.    Stein v. Burden, 24 Ala. 130,149 (1853).

314.    Miller and Lux v. Enterprise Canal and Land Co., 169 Cal. 415,  147  P  567,573
        (1915).

315.    United States v. Fallbrook Public Utility Dist, 110 F. Supp. 767 (D.C.  Cal. 1953).


316.    93 C.J.S., Waters,  sec.  163.

317    102111.177(1882).

318.    Mitchell v. Warner, 5 Conn. 497 (1825).

319..    S. 0. & C. Co. v. Ansonia  Water Co., 83 Conn. 611, 78 A. 432 (1910).
                                         142

-------
320.    Nielson v. Newmyer,  123 Colo. 189, 228 P. 2d 456 (1951); Wright v. Best, 19Cal.
        2d 368, 191 P 2d 702 (1942); Duckworth v. Watsonville Water & Light Co., 150
        Cal. 520, 89 P  338 (1907).

321.    Black v. Taylor, 128  Colo. 449, 264 P. 2d 502 (1953); Town of Sterling v. Pawnee
        Ditch Extension Co., 42 Colo. 421, 94 P. 339 (1908).

322.    See, e.g. Slosser v. Salt River Val. Canal Co., 7 Ariz. 376, 65 P  332(1901).

323.    See,  e.g.  Hindevlider  v.  La, Plata  River & Cherry Creek Ditch Co., 304 U.S. 92
        (1937); Metropolitan  Finance Corp. v. Pierce, 231 F  2d 617  (9th-Cir. 1956): City
        of Colorado Springs  v.  Bender,  148 Colo. 458, 366 P  2d  552 (1961); Orange
        County Water Dist. v. City of Riverside, 1 73 Cal. App. 2d  137, 343 P. 2d 450 (D.C.
        1959); City &_ County of Denver  v. Northern  Colorado Conservancy District, 130
        Colo. 325, 276 P  2d 992 (1954); City of Pasadena v. City of Alahambra, 33 Cal.
        2d908, 207 P  2d  1 7  (1949).

324.    283 U.S.  423 (1931).

325.    Id^at459.

326.    See, e^. Cal. Water Code sec. 1610 (West Supp. 1968); Okla. Stat. Ann, tit. 82, sec.
        26 (1952); Ariz. Code Ann, sec. 45-142 (I956).

327.    Whitten v.  Coit, 153 Colo.  157, 385 P. 2d 131  (1963); Fairfield  Irrigation Co. v.
        Carson,  122 Utah 225,  247 P  2d 1004 (1952); jn. Re Determination of Relative
        Rights to Use of Waters of Pontano Creek in, Pirna County, 45 Ariz. 156, 41 P. 2d
        228 (1935).

328.    Colo. Const., art XVI, sec. 6.

329.    Black v. Taylor, 128  Colo. 449, 264 P. 2d 502 (1953); Town of Sterling v. Pawnee
        Ditch Co., 42 Colo. 421, 94  P. 339 (1908).

330.    City  of Pasadena v. City of Alhambra, 33 Cal. 2d 908, 207 P 2d 17, 29 (1949).

331.    39 Cal. L Rev. 369.

332.    See,  e.g. City  of  Pasadena  v.  City of Alhambra, 33 Cal. 2d  908,  207  P. 2d  17
        (1949).

333.    Cal. Water Code sec. 1202(1956).

334.    Stevinson Water Dist. v. Roduner, 36 Cal. 2d 264, 223 P.  2d 209 (1950); Meridian.
        Ltd,  v.  City and. Co. of San Francisco,  13 Cal. 2d 424,  90 P. 2d 537 (1939);
        Peabodyv. City of Vallejo, 2 Cal.  2d 351, 40 P. 2d 486 (1935).
                                          143

-------
335.    United States v.  Haga, 276 Fed. 41 (Idaho 1921). See also Ides v. jJnjted States,
        263 U.S. 497 (1924).

336.    Cal. Water Code sec. 7075 (West 1957).

337     Okla. Stat. Ann, tit. 82, sec. 3 (1969).

338.    See, e_^  Cal.  Const..-art. 14, sec. 3; Crawford v. Lehi  Irrigation Co., 10 Utah 2d
        165, 350 P 2d 147 (1960); Thorne v. McKinley Brothers, 5 Cal. 2d 704, 56 P. 2d
        204 (1936); Peabody v. City of Vallejo, 2 Cal. 2d 351, 40 P. 2d 486 (1935).

339.    City & County of Denver v. Sheriff, 105 Colo. 193, 96 P. 2d 836 (1939).

340.    Akin V. Spencer, 21 Cal.  App. 2d 325, 69 P. 2d 430, 432 (D.C. 1937).

341.    Grienv. Chafee Ditch Co., 150 Colo. 91, 371 P. 2d 775 (1962).

342.    Farmers Reservoir & Irrigation Co., v.  Fulton Irrigation Ditch Co., 108 Colo. 482,
        120 P. 2d 196 (1941);  Commonwealth Irrigation Co. v. Rio Grande Canal Water
        Users' Ass'n, 96 Colo. 428, 45 P 2d 622 (1935).

343.    jd,; Barton v. Pierce, 131  Cal. App. 33,  20 P. 2d 736 (D.C. (1933).

344.    jj, _Re_ Water  Dist. No.  47 in Water Div. No, 1, 119 Colo. 404,  204 P.  2d  153
        (1949); Strain v.  Superior Court of Los Angeles County,  168  Cal.  216, 142 P 62
        (1914).

345.    Commonwealth  Irrigation Co. v. Rio Grande Canal Water Users' Ass'n., 96 Colo.
        478, 45 P  2d622 (1935).

346.    Town  of  Sterling v. Pawnee Ditch Extension Co., 42 Colo. 421, 94 P 339 (1908).

347.    City and County of Denver v. Sheriff, 105 Colo.  193, 96 P. 2d 836,  841  (1939).

348.    Id, at 842.

349.    Denver v.  Northern Colorado Water Conservancy Dist., 130 Colo.  375,  276 P  2d
        992,997  (1954).

350.    Metropolitan Suburban  Water  Users' ASS'FK v. Colorado Water Conservancy Dist
        365 P. 2d 275 (Colo. 1961).                                                 '

351.    Lindblom v. Round Valley Water Co^, 178 Cal. 450, 173 P. 994, 997 (1918).

352. •   Id.
                                          144

-------
353.    13 Cal. 2d 424, 90 P. 2d 537 (1939).

354.    ]d at 549.

355.    Holbrook  Irrigation Dist v. Ft Lyon Canal Co.. 84 Colo. 174, 269 P. 574 (1928};
        Greeley and Loveland Irrigation Co. v. Hupte, 60 Colo. 535, 155 P. 386 (1916).

356.    Enlarged  Southside Irrigation Ditch  Co. v. John's Flood Ditch Co., 120 Colo. 423,
        210  P. 2d 982 (1949); Union Grain & Elevator Co. v. McCammon Ditch Co., 41
        Idaho 216, 240 P. 443 (1925).

357.    Finleyv. Cache La Poudre Co.. 44 Colo. 234.  98 P. 173 (1908).

358.    City  & County of Denver v. Northern Colorado Water Conservancy Dist., 130 Colo.
        575,  276  P. 2d 992, 999 (1954).

359.    Colo. Rev. State Ann, sec.  148-5-1 (1963).

360.    Windsor Reservoir and Canal Co. v. Lake Supply Ditch Co., 44  Colo. 214, 98 P.
        729 (1908).

361.    See., e.g.   Handy Ditch Co.  v. Greely and Loveland Irrigation  Co., 86 Colo. 197,
        280 P. 481, (1929); Holbrook Irrigation Dist. v. PL Lyon Canal Co., 84 Colo. 174,
        269 P. 574 (1928); Finley v. Cache La Poudre Irrigation Co.. 44 Colo. 234, 98 P.
        173 (1908).

362.    Colo. Const., art. XVI, sec 6.

363.    City  and County  of Denver v. Sheriff. 105 Colo.. 193,96 P. 2d 836 (1939).

364.    The Reclamation Act of 1902, ch. 1093, sec. 8, 32 Stat. 388, 390.

365.    See text beginning at n. 84, supra.


366.    372 U.S. 627(1963).

367.    Ivanhoe Irrigation District v. McCracken. 357  U.S. 275, 291 (1958).

368.    The Reclamation Act of 1902, ch. 1093, sec. 7,  32 Stat. 388, 389-90.

369.    Nebraska v. Wyoming, 325 U.S. 589  (1945); Ickes v. Fox. 300 U.S. 82 (1937).

370.    Seejext at n. 335-37.

371.    Colo. Rev. Stat. Ann. sec.  148-5-2.
                                         145

-------
 372.     Kan. Stat. Ann, sec. 82a-706b (Supp.  1968).

 373.     ]d. sec. 82a-937 (Supp. 1968).

 374.     Id sec. 82a-935.

 375.     Act of February 25, 1920, ch. 86, 41  Stat. 451.

 376.     See text at n. 4, supra.

 377     See e.g.,  Boulder  Canyon Project Act. ch. 42, sec. I, 45 Stat. 1057 (1928); Act of
         August 26, 1937,  ch. 832, sec. 2, 50 Stat. 844, 850.

 378.     Statements by the Under Secretary of the Interior in a letter to the Committee on
         Public Works regarding the desirability of enactment of dilution  water storage
         legislation  indicated that the  Bureau of Reclamation  already  operated under
         procedures which accomplished, to a great degree, the objectives of the proposed
         legislation. Hearings Before the Water Pollution Control Committee on  S. 120,
         87th Cong., Sess.  76 (1961).

 379.     Act of December  22, 1944, ch. 665, 58 Stat. 887.

 380.     1944 U.S. Code Cong. Service 1349, 1354.

 381.     Water Pollution Control Act, ch. 758,  62 Stat. 115 (1948).

 382.     jd. sec. 1.

 383.     Act of July 9, 1956, P.L. 660, 70 Stat. 498.

384.    Act of July 20, 1961, P.L. 87-88, 75 Stat. 204.

385.    Water Quality Act of 1965, P.L. 89-234, 79 Stat. 903.

386.    Clean Water Restoration Act of 1966,  P.L. 89-753, 80 Stat. 1246.

387.    Act of July 20, 1961, P.L 87-88, sec. 2(b)(1), 75 Stat. 204.

388.    Hearings before the Subcommittee  of the Committee on Public Works on S.  120,
        87th Cong., 1st Sess. (1961).

389.    jd. at I32.

390.    Id, at 191.

391.    United  States  v.  Appalachian  Electric Power Co., 311  U.S.  377  (1940);  New
        England Dredging Co. v. United Sjates, 144 F. 932 (1st Cir. 1906).

                                           146

-------
392.    311 U.S. 377 (1940).

393.    2 U.S. Code Cong, and Adm. News 2085 (1961).

394.    See "The Rrparian Water Right" and "The Appropriative Water Right," supra.

395.    See "Application of Navigational Servitude," supra.

396.    Act of December 22, 1944, ch. 665, 58 Stat. 887.

397.    See text at n. 160, su^a.

398.    Reclamation Act of 1902, ch. 1093, sec. 7, 32 Stat. 388, 390-91.

399.    Watershed Protection and Flood Prevention Act, P.L. 566, 68 Stat. 666 (I954).

400.    Federal Water Power Act, ch. 285, 41 Stat. 1063 (1920).

401.    Public  Utilities Act  of  1935,  tit.  II,  ch.  687,-sec.  202(e), 49  Stat. 803, 840,
        formerly ch. 285 sec. 4(e), 41 Stat. 1063 (1920).

402.    Act of August 3, 1968, P.L. 90-451, 82 Stat. 616.

403.    Public  Utilities Act  of  1935,  tit.  II,  ch.  687, sec.  202(e), 49  Stat. 803, 840,
        formerly ch. 285 sec. 4(e), 41 Stat. 1063 (1920).


404.    Hearings on H.R. 8716 Before the House Comm.on Water Power, 551 65th Cong.,
        2nd Sess. (1918).

405.    Section  10  (a) provides the following:
                        That the  project  adopted,  including  the  maps,  plans  and
                specifications, shall be such as in the judgment  of the commission will be
                best adopted to a comprehensive scheme of improvement and utilization
                for the purposes of navigation, of  water power development, and of other
                beneficial  uses;  and if  necessary  in order to secure  such  scheme the
                commission shall have authority to require the modification of any of the
                plans and  specifications fo  the  project works before  approval.  Federal
                Water Power Act. ch. 285, sec. 10(a), 41 Stat. 1063, 1068 (1920).

406.    Act of August 8, 1917, ch. 49, 40 Stat. 250, 269.

407.    Act of August 3, 1968, P.L. 90-451, 82 Stat. 616.

408.    H.R. 7367, 91st Cong., 1st Sess., (1969).

409.    355 F. 2d 683 (1st Cir. 1966).
                                          147

-------
410.    ]d at 686.

411.    Town of Gordonsville v. Zinn, 129 Va. 542, 106 S.E. 508 (1921).

412.    United  States v. Twin  City  Power Co.. 350 U.S.  222 (1955);  United States v.
        Appalachian Electric Power Co., 311 U.S. 377 (1940).

413.    See text at n. 159, supra.

414.    The Reclamation Act of 1902, ch. 1093, sec. 8, 32 Stat. 388, 390.

415.    Ivanhoe Irrigation District v. McCracken, 357 U.S.  275, 291 (1958).

416.    City of Fresno v. California. 372 U.S. 627 (1963).

417.    Kan. Stat. Ann, sec. 820-927 (Supp. 1968).

418.    ]d, sec. 82a-928 (17).

419.    New Mexico Water Quality Comm'n., "Implementation and Enforcement Plan for
        Water Quality Control" 53 (1967).

420.    36 U. Colo. L Rev. 415 n.  13 (1964).

421.    Letter from Donald H.  Hamburg to William  R. Walker,  September 17, 1968.

422.    Slosser v. Salt River Valley Canal Co.. 7 Ariz. 376,  65 P. 332, 339  (1901).

423.    Water Quality Act of 1965, P.L. 89-234, 79 Stat. 903.

424.    "Guidelines for Establishing Water Quality  Standards  for  Interstate Waters,"
        United  States Department of the Interior,  FWPCA,  May 1966, revised Jan. 1967.

425.    See, e.g.. Va. Code Ann, sec. 62.1-27 (Repl. Vol. 1968).

426.    See text at n. 277, supra.

427.    Druley  v. Adam. 102 III. 177 (1882).

428.    See text at n. 335.

429.    Act of  December 22, 1944, ch. 665, sec. 1, 58 Stat.  887.
                                         148

-------

-------
                                APPENDICES

I.   TABLE OF PROJECTS HAVING WATER SUPPLY STORAGE AND MAPS OF RESERVOIRS
    USING NATURAL CHANNELS AS CONDUITS

II.   TYPICAL CORPS OF ENGINEERS CONTRACT

III.  SUMMARY OF FEDERAL POLLUTION CONTROL LEGISLATION

IV.  STATE LAW RELATED  TO ASPECTS OF WATER  QUALITY STORAGE IN 17 WESTERN
    STATES

V.   STATUTES  RELATING TO THE RECLAMATION  LAW OF THE   UNITED  STATES

VI.  TITLE III -PUBLIC LAW 85-500-JULY 3, 1958
                                      151

-------
                    APPENDIX I

  TABLE OF PROJECTS HAVING WATER SUPPLY STORAGE AND
MAPS OF RESERVOIRS USING NATURAL CHANNELS AS CONDUITS
                        153

-------
      ARKANSAS
en
en
PROJECT LOCATION
Beaver Res.,
Ark.
Millwood,
Ark.
Norfork,
Ark.

DeGray Res. ,
Ark.
WATER SUPPLY
STORAGE
AC. FT.
108,000
150,000
2,400

238,730(8)
AGENCY OWING
RIGHT
Beaver Water
Dist.
Southwest Ark.
Water Dist.
Water &
Sewer
Improvement
Dist. #3,
Mountain
Home , Ark .
Ouachita
River
Water Dist.
CITIES OR AGENCIES
SERVED
Rogers, Springdale,
& Fayetteville, Ark.
Filtration Plant
Millwood, Ark.
City of Mountain
Home , Ark .

Quachita River
Water Dist.,
Arkadelphia, Ark.
METHOD OF WATER TRANSPORTATION
(NATURAL, CONDUIT, ETC,)
Transported by 1 3/4 miles of
pipeline to the plant
Open concrete lined channel
for about 12 miles
1,000 feet from treatment
plant to intake & water is
conveyed by pipeline

Natural Water Channels
      DeQueen Res.,
      Ark.
      Gillham Res.,
      Ark.
17,900
28,700
Tri-Lakes
Water Dist.,
Ark.
Tri-Lakes
Water Dist.,
Ark.
Not determined
Not determined
Under construction - Method of
transportation not definite
but it is possible that a
natural water channel and a
pipeline will be used

Same as for DeQueen Res., Ark.

-------
      CALIFORNIA
      PROJECT LOCATION
WATER SUPPLY
STORAGE-
AC. FT.
AGENCY OWNING
RIGHT
CITIES OR AGENCIES
SERVED
METHOD OF WATER TRANSPORTATION
(NATURAL, CONDUIT, ETC.)
      Warm Springs
      Dam, Calif.*
132,000
Sonoma County
F.C. & Water
Cons. Dist«8
Calif.
Santa Rosa, Forest"
ville, Rohnert Park,
Petaluma, Sonoma &
to Novato
      Coyote Dam
      Project*
               Sonoma County   Same as above
01
Dry Creek, natural channel
(13.7 mi.) then in Russian
River for 7.6 mi. then water
is diverted to two Ranney
Collectors (40 mil. gal. per
day)

Natural channels of the East
Fork & Russian Rivers for 72
mi., then diversion to same
two Ranney collectors men-
tioned for Warm Springs Dam.
     * These Dams  are both a part  of  the "Russian River Pool."  The  "Pool" is an operational concept
     whereby both water stored in reservoirs  plus natural  flows  in Russian River which are excess  to> other
     needs,  may be utilized for water supply.

     CONNECTICUT
     Colebrook River      30,700
      Res., Conn.
               City of
               Hartford,
               Conn.
                Hartford, Conn.
                      Estimated that by 1975 water
                      will be released into West
                      Branch Res. (1 mile  downstream)
                      and tied into water distribu-
                      tion system by means of a
                      tunnel

-------
      GEORGIA
      PROJECT LOCATION   WATER SUPPLY
                         STORAGE
                         AC. FT.
             AGENCY OWNING
             RIGHT
                                                  CITIES OR AGENCIES
                                                  SERVED
                      METHOD OF WATER TRANSPORTATION
                      (NATURAL, CONDUIT, ETC.)
      Clark Hill Res.,
      Ga. & S. C.
  210
Allatoona Res.,     13,140
Ga.

                     1,340
01
      Hartwell Res.,
      Ga. & S.C.
3,690
                                  McCormick,
                                  S.C.
                                        Cobb County-
                                        Marietta
                                        Water Dist.
                                        City of
                                        Cartersville
                                  Duke Power Co.
                                  Water & Sewer
                                  Improvement
                                  Dist.. #3
                                  Mountain
                                  Home, Ark.
McCormick, S.C. &
Lincolnton, Ga.
Treatment Plant,
Acworth, Ga.

Treatment Plant,
(Powerhouse Rd. &
U.S. Highway 41)

Duke Power Co.,
Clemson, S.C.,
Hartwell, Ga.,
Utica-Mohawk &
Excelsior Mills
Use of underground conduits on
the Soap Creek Arm of. reservoir
(Lincolnton) Little River Arm
of reservoir (McCormick)

Conduit
                                                  Proposed  conduit
Natural channel of 26 miles of
Mile Creek to underground
conduit
      KANSAS
      Pomona, Kansas
  230
                             160
                                  Rural Water
                                  Dist. #3,
                                  Kan.
                                  Pomona Res.
                                  Water Co.,Kan.
Treatment Plant
Kan. State Park &
Resources Auth.,
Vassar, Kan., &
Vassar State Park
6" pipeline to treatment plant

-------
     KANSAS CONT'D
PROJECT LOCATION
                        WATER SUPPLY   AGENCY OWNING
                        STORAGE        RIGHT
                        AC. FT.
                                                  CITIES OR AGENCIES
                                                  SERVED
                                                                        METHOD OF WATER TRANSPORTATION
                                                                        (NATURAL, CONDUIT,  ETC.)
CJl
00
Toron t o, Kansas
Council Grove,
Kan.
John Redmond,
Kan.

Milford, Kan.
     Elk City, Res.
     Kan.
                            265
                          24,400
                          34,900
                          300,000
                    42,300
     Perry Reservoir,    150,000
     Kan.
     Cheney Res.,
     Kan.
                                                  Toronto, Kan.
                                                  City of Council
                                                  Grove, Kan.
City of
Toronto,
Kan.

Council
Grove &
Emporia, Kan.
                                  State of Kan.
                                  State of Kan.   Milford, Kan.
                                  State of Kan.
                                  State of Kan.   Milford, Kan.
                                  Bureau of       Wichita, Kan.
                                  Reclamation
                                                                        1/2 mile conduit to city of
                                                                        Toronto.
                                                                        Will make use by 1,500 foot,
                                                                        10" cast iron pipe to Council
                                                                        Grove.  Natural water course
                                                                        (Neosho River) from reservoir
                                                                        to Emporia.
                                                                        Pump lift (75 ft.) and 1500 ft.
                                                                        of Horizontal pumping.  Up-
                                                                        stream users pipeline and down»
                                                                        stream users natural waterway.
                                                                        Points of delivery not yet
                                                                        defined but supply may be con-
                                                                        veyed by short natural channels.

                                                                        25 miles of pipe.

-------
     KENTUCKY
     PROJECT LOCATION
01
CO
WATER SUPPLY
STORAGE
AC. FT.
      Barren River,
      Ky.

      Rough  River  Res.
      Ky.

      Red  River, Ky.
      Green River,
      Ky.
      Cave Run,  Ky.

      Eagle Creek,
      Ky.
    681
    120
 24,700
    870



None

  13,370
AGENCY OWNING
RIGHT
CITIES OR AGENCIES
SERVED
City of
Glasgow, Ky.

Leitchfield,
Ky.

Ky. Water
Resource
Auth.
City of
Campbellsville
Ky. Water
Resource Auth.
Treatment Plant &
Glasgow, Ky.

Treatment Plant &
Leitchfield, Ky.

Frankfort, Lexing-
ton , Harrod sburg,
Winchester,
Nicholasville,
Stanton*

Campbellsville, Ky.
METHOD OF WATER TRANSPORTATION
(NATURAL, CONDUIT, ETC.)
12 miles of 20" pipeline be-
tween plant and city

8 1/2 miles of 10" pipeline
between plant and city

Water supply contract with Ky,
Water Resource Authority
is pending.  (Use of both
conduits and Natural channel)
Contract with Campbellsville,
Ky. is being negotiated.
Tentative use of 18" pipeline

Under construction

Negotiations with Ky. Water
Resources Authority have not
been initiated.
      *Versailles, Mount Sterling,  Wilmore,  Lawrenceburg, Richmond, & Lancaster, Ky.

-------
 ILLINOIS
PROJECT LOCATION   WATER SUPPLY
                   STORAGE
                   AC. FT.
              AGENCY OWNING
              RIGHT
                CITIES OR AGENCIES
                SERVED
                      METHOD OF WATER TRANSPORTATION
                      (NATURAL, CONDUIT,  ETC.)
Carlyle Res.,
111.
Oakley, 111.*
Lincoln Res.
111.
33,000
Shelbyville Res.,   25,000
111.

Rend Lake, 111.    109,000
11,000
16,400
State of 111.
Carlyle and areas
that are subject
to overflow from
head of navigation
to Mississippi
              State of 111.   Shelbyville,  111.
              State of 111.
City of
Decatur, 111
Jefferson &
Franklin Counties

Decatur, 111.
State of 111.
City of Charleston,
111.
Natural channel (Kaskaskia
River)
                                      Natural channel (Kaskaskia
                                      River)

                                      Water transported by pipeline
Water released from reservoir
will be sluiced through Oakley
Dam into Lake Decatur and
passed downstream into the
Sangamon River

Draw water from a wet well
flooded by the reservoir and
transported to the treatment
plant through one piping
system, possibly 30" or 36"
*Water from Oakley Reservoir sluiced into Lake Decatur.  City of Decatur has option of constructing
an intake on Oakley Reservoir or request sluicing into Lake Decatur for city use.

-------
INDIANA
PROJECT LOCATION   WATER SUPPLY   AGENCY OWNING
                   STORAGE        RIGHT
                   AC. FT.
                               CITIES  OR AGENCIES
                               SERVED
                                      METHOD OF WATER TRANSPORTATION
                                      (NATURAL, CONDUIT,  ETC.)
Brookville,
Ind.
Patoka, Ind.
Big Walnut
Res.,  Ind.

Big Blue, Ind.
 89,300
129,800



153,000


 34,400
State of Ind.
Monroe Res.,       159,900(6)     State of Ind.
Ind.
State of Ind.
State of Ind.
State of Ind.
Franklin & Union
Counties

Bloomington,
Bedford, & Boy
Scout Camp, U.S.
Forest Serv.
Dubois, Orange
& Crawford
Counties
There are tentative plans
only available

Treatment plant located at
reservoir site with about 12
miles of pipeline between
plant and Bloomington.
Natural channel, Salt Creek
to treatment plant in Bedford,
located 12 miles downstream
from reservoir.  Treatment
plant serves Boy Scout Camp
in immediate vicinity

Pending
                      Tentative plans are available
                      only

                      Tentative plans are available
                      only

-------
MASSACHUSETTS
PROJECT LOCATION
Mass.
WATER SUPPLY
STORAGE
AC. FT.
MISSISSIPPI
AGENCY OWNING
RIGHT
CITIES OR AGENCIES
SERVED
METHOD OF WATER TRANSPORTATION
(NATURAL, CONDUIT, ETC.)
East
Res.
T -!l-t-
Brimfield
, Mass.
1 Qir-M 1 o
1,140
9,400
Amer.
Optical
Co. Mass.
Springfield,
Amer. Optical Co.
Mass.
Springfield, Mass.
1,140 acre-feet of storage
natural water channel for
11.6 miles
Water is conveyed from reser-
                                  Mass.
                                                    voir  to Cobble Mountain Dam
                                                     (owned by city) by a 7.5  mile
                                                    48" pipeline	
Okatibbee,
Miss.
 13,100
Pat Harrison    Meridian, Miss.
Waterway Dist.,
Hattiesburg,
Miss.
                      Plans not certain
MISSOURI
Clarence Cannon
Dam & Res., Mo.
 20,000
Mo. Water Re-   Multi-county water
sources Board   supply district(3)
                      Pipeline system (this has not
                      been formed as yet)
NORTH CAROLINA
W. Kerr Scott,      33,000
N.C.
               Winston-Salem   Winston-Salem,
               & Wilkes Co.,   N.C.
               N.C.
                                      Natural channel of 95 mi. to
                                      Winston-Salem; intake located
                                      immediately upstream from
                                      Idols Dam

-------
     NORTH DAKOTA
o>
00
     PROJECT LOCATION  WATER  SUPPLY
                       STORAGE
                       AC. FT.
     Bowman-Haley,
     N. Dak.
              AGENCY OWNING   CITIES OR AGENCIES
              RIGHT           SERVED
                                      METHOD OF WATER TRANSPORTATION
                                      (NATURAL, CONDUIT, ETC.)
Baldhill Dam,
N. Dak.
Horame Res . ,
N. Dak.
69,500 Eastern N.
Dak. Water
Dev. Assoc.
3,650(1) Park River
& Graf ton,
N.D.
Fargo, Grand Forks,
N. Dak.
Graf ton, Park
River, N.D.
Releases water into Sheyenne
River and Red River of the
north for these cities.
12 inch pipe 1 1/2 miles long
supplies Park River
Natural channel (South Branch
Park River) to Graf ton, N.D.
16,000
State of
North Dakota
Bowman, Scranton
Gascoyne, & Reeder,
North Dakota
Tentative 35 miles of pipeline
planned for cities to be served
OHIO
Berlin Res., 19,400
Ohio
Mosquito Creek 11,000
Res., Ohio

Mahoning
Valley
Sanitary
Dist.
Warren,
Ohio

Indirectly-Niles ,
McDonald, Youngs ton
Canfield-all
Ohio
Warren, Ohio

From reservoir 9 mi. conduit
to Meander Creek Reservoir
where stored then conveyed to
cities by conduit
4 mi. conduit

-------
      OHIO CONT'D
      PROJECT LOCATION   WATER SUPPLY
                         STORAGE
                         AC.  FT.
              AGENCY OWING
              RIGHT
                CITIES OR AGENCIES
                SERVED
                      METHOD OF WATER TRANSPORTATION
                      (NATURAL, CONDUIT, ETC.)
CD
      Tom Jenkins  Res.,
      Ohio
     West  Branch
     Res., Ohio
     Caesar Creek
     Res., Ohio
     East Fork
     Res., Ohio
     Alum Creek
     Rp,s., Ohio
 5,800
52,900(6)
39,200
35,500
State of
Ohio
Mahoning &
Trumbill
Counties

State of
Ohio
State of
Ohio

State of
Ohio
To Water Treatment
Plant then to 7
communities in
Sunday Creek Valley*

Mahoning & Trumbill
Counties
Warren, Clinton &
Green Counties,
Ohio
Clermont, Ohio
                              Columbus,  Ohio
225 ft. pipe
Not presently withdrawn but
could be used for the mentioned
counties

Plans for specific uses and
methods for withdrawing water
supplies have not yet been dev-
eloped.  Domestic water supplies
from reservoirs are in most in-
stances picked up at the reser-
voir or only a short distance
downstream.  Perhaps Little
Miami R.

Same as for Caesar Creek Res.


Pipe of 60" to the site of pump-
ing station.  The station dis-
charge will be piped to Hoover
Reservoir.
     *Gloucester, Trimble, Jacksonville, Hollister, Murray City, New Straitsville, Shawnee, all Ohio.

-------
     OKLAHOMA
     PROJECT LOCATION
WATER SUPPLY
STORAGE
AC. FT.
AGENCY OWNING
RIGHT
                CITIES OR AGENCIES
                SERVED
METHOD OF WATER TRANSPORTATION
(NATURAL, CONDUIT, ETC.)
en
en
     Canton Res.,
     Okla.

     Heyburn Res.,
     Okla.
     Wister Res.,
     Okla.
     Ologah
90,000
 1,000
   300
 1,600


 4,800



38,000
   500

 5,000

 2,500


   100
Oklahoma City,  Oklahoma City
Oklahoma
                Rural Water Dist
                #1 & city of
                Keifer
                Heavener Utilities
                Auth.
Keifer, Okla.
Rural Water
Dist. #1
Creek Co.,
Okla.

Heavener
Utilities
Auth.
Poteau Valley
Improve.
Auth.
Tulsa, Okla.
Collinsville
Okla.
Puhlic Service  Public Ser. Co.,
Co., Okla.
Claremore
Foundation,
Okla.
Rural Water
Dist. #1
Nowata Co.,
Okla.
                Collinsville, Okla.
                Collinsville, Okla.
                                                       Okla.
                                      123 mi. natural water channel
Conduit, mileage unknown
10 mile conduit to Heavener
water plant.  Use of Poteau
River down to plant.  Natural
channel to Poteau, Oklahoma
10 mi. conduit
10 mi. conduit

2 mi. conduit
                                                       3 Rural Water Dist.   Conduit milage unknown

-------
      OKLAHOMA CONT'D
      PROJECT LOCATION
      Ologah
      cont'd
WATER SUPPLY
STORAGE
AC. FT.
    300
                             300
AGENCY OWNING
RIGHT
CITIES OR AGENCIES
SERVED
METHOD OF WATER TRANSPORTATION
(NATURAL, CONDUIT, ETC.)
R. Wat. Dist.
#3, Rogers Co.
Okla.
Rural Water
Dist., #4
Rogers Co.,
Okla.
CD
CD
      Fort  Supply,
      Okla.
      Tenkiller
      Ferry,  Okla.
     Broken Bow
     Okla.

     Keystone Res.,
     Okla.
    400
    300
                             100
                             100
153,000
 14,300
Okla. State     Okla. State Board
Board of Public of Public Affairs
Affairs, Okla.
E. Central
Okla. Water
Auth.
Rural Water
Dist. #2
Cherokee
County, Okla.
Rural Water
Dist. #4
Cherokee
County, Okla.

State of Okla,
Public Serv.
Co. of Okla.
E. Central Water
Auth.
Westiles Eng. Co.
                      2 mi. conduit
10 mi. conduit
                                                                             Conduit milage unknown
Secondary oil recovery 1
conduit milage unknown

-------
      OKLAHOMA CONT'D.
      PROJECT LOCATION
      Keystone, Okla.
WATER SUPPLY
STORAGE
AC. FT.
    130
AGENCY OWING
RIGHT
Gulf Oil
Corp. of
Okla,
CITIES OR AGENCIES
SERVED
Gulf Oil
METHOD OF WATER TRANSPORTATION
(NATURAL, CONDUIT, ETC.)
Conduit with milage unknown
      Pine Creek Res.,    70,000
      Okla.
               Mountain
               Lakes Water
               Dist.
o>
      Kaw Ro.s.,  Okla.     232,000(9)
               City of Ponca
               Ok}a. Water
               Resources
               Board
      Optima Res.,
      Okla.
 76.200
Okla. Water Re-
sources Board
      OREGON
      Foster Res.,
      Ore.
  2,000
Sweet Home,
Ore.
Sweet Home, Ore,
Proposed 3-5 mile pipeline to
Sweet Home
      PENNSYLVANIA
      Beltzville Res.,    27,900
      Pa.
               Delaware River  Beltzville, Pa.
               Basin Com-
               mission
                                      Storage has  not yet  been resold

-------
      TEXAS
O)
00
PROJECT LOCATION
San Angelo
Res., Tex.
Hords Creek
Res., Tex.
Lewlsvllle Res.,
Tex.
Grapevine Res . ,
Tex.
La von Res. ,
Tex.
WATER SUPPLY AGENCY OWNING
STORAGE ' RIGHT
AC. FT.
80,400
5,780
415,000
21,000
85,000
1,250
50,000
100,000
Upper Colo-
rado, River
Authority
Coleman, Texas
Dallas, Tex.
Denton, Tex.
Dallas, Tex.
City of
Grapevine,
Texas
Park Cities,
Texas
North Texas
Municipal
CITIES OR AGENCIES
SERVED
San Angelo, Tex.
Coleman, Texas
Denton, Texas
Dallas, Texas
(Protection to)
Dallas , Texas
Grapevine , Texas
University & High-
land Parks, Texas
Farmville, Forney,
Garland, Mesquite,
METHOD OF WATER TRANSPORTATION
(NATURAL, CONDUIT, ETC.)
Intake at reservoir
Angelo
8 mile pipeline
8 mile pipeline
Denton Creek for 22
2 mile pipeline
Denton Creek for 22
for San


miles
miles
60 reinforced concrete cy-
linder pipeline - 11,000'
                                       Water District  McKinney, Piano,
                                                       Princton, Rock-
                                                       wall, Royse City,
                                                       Wylie*
48' concrete pipeline to filter
plant - 17,300
     *Fairview, Dallas, Fate, Rowlett, Sachse, and Sunnyvale, Texas

-------
     TEXAS CONT'D
CD
PROJECT LOCATION
Texarkana Res . ,
Tex. & Ark.

Lake Texoma
(Denison)
Tex. & Okla.




Belton Res.,
Tex.




Cooper Res. ,







WATER SUPPLY
STORAGE
AC. FT.
13,400


21,300

16,400


1,150

113,700

12,000(1)

247,000(5)

240,900







AGENCY OWNING
RIGHT
Cities of
Texarkana,
Tex, & Ark.
Denison, Tex.

Texas Power &
Light Co.

Sinclair Oil
& Gas Co.
Brazos River
Authority
Fort Hood,
Tex.
Brazos River
Authority
City of
Irving Sul-
phur River
Municipal
Water Dist.
North Tex.
Municipal
Water Dist.
CITIES OR AGENCIES
SERVED
Internat. Paper
Plant Texarkana

Denison, Texas

Texas Power &
Light Co.

Sinclair Oil &
Gas Co.
Temple, Tex.
Killeen & Fort
Hood, Texas



Irving, Sulphur
Springs, Sulphur
River Municipal
Water Dist.

North Texas Muni-
cipal Dist.

METHOD OF WATER TRANSPORTATION
(NATURAL, CONDUIT, ETC.)
Texarkana intake at reservoir.
City will supply paper plant.
(in planning stage)
3 mi. conduit to Denison, Tex.

13 mi. nat. water channel-
short conduit to Texas Power
& Light Co.
2 conduits to others (mileage
unknown)
Temple picks up water approx.
1 mile below dam.
12 mile pipeline to Fort Hood.



(Not certain) Closed conduit or
open channel to Irving







-------
TEXAS CONT'D
PROJECT LOCATION
WATER SUPPLY  AGENCY OWNING
                    STORAGE
                    AC. FT.
              RIGHT
CITIES OR AGENCIES
SERVED
METHOD OF WATER TRANSPORTATION
(NATURAL, CONDUIT, ETC.)
Whitney Res.,       50,000
Tex.

Stillhouse         204,900
Hollow Res.,
Tex.

Somervllle Res.,   143,900
Tex.
Pat Mayse Res.,     87,700
Tex.
Dam "B" Tex.
Ferrels Bridge,    251,100
Tex. (same as
Lake O'the Pines)

Navarro Mills,      53,200
Tex.
              Brazos River
              Authority

              Brazos E.iver
              Authority
              Brazos River
              Authority
Waco, Texas
Surrounding Texas
area
Surrounding Somer-
ville area
              City of Paris,   Paris,  Texas
              Texas
94,200(1)     Lower Neches    Lower Neches Valley
              Valley          Authority,  Silsbee,
              Authority       Beaumont
              Northeast       Hughes Springs
              Tex. Munici-    Daingerfield
              pal Water Dist.

              Trintity River  Treatment Plant to
              Authority       Dawson, Tex.
                              Corsicana, Tex.
Power Releases Downstream Use
Helps supply water to mouth of
Brazos River.  No contracted
users

Helps supply water to mouth of
Brazos River.  No contracted
users

10 mi. conduit to city
                      Principal users:  Lower Neches
                      Valley Authority, Silsbee,
                      Beaumont.  Use of natural
                      channel

                      8" line
                      16" line
                      Pipeline for 3 miles

                      14 mile pipeline

-------
TEXAS CONT'D
PROJECT LOCATION
Waco Res., Tex.
Canyon Res . ,
Tex.
McGee Bend
Res. Tex.
WATER SUPPLY
STORAGE
AC. FT.
91,074
13,026(3)
366,400
1,383,500
(4)
AGENCY OWNING
RIGHT
Brazos River
Authority
Waco, Texas
Guadalupe-
Blanco River
Auth.
Lower Neches
Valley
CITIES OR AGENCIES
SERVED
Pumping Plant to
Treatment Plant to
Waco, Texas
Springs Hill Water
Supply Corp.
Port Lavaca, Tex.

METHOD OF WATER TRANSPORTATION
(NATURAL, CONDUIT, ETC.)
Pipeline
Springs Hill Water Supply Corp
(Rural water supply) and Port
Lavaca, Tex. Contractual
users. Natural channel used

Proctor Res.,
Tex.
BardwelJ. Res.,
Tex.
31,400
42,800
Authority

Brazos River
Authority
Hamilton, Texas
Upper Leon River
Water District
Trinity River   Treatment Plant
Authority       Ennis,  Texas
Upper Leon River Water Dist.
takes water at Dam to treatment
plant - pipeline to members.
Natural channel to Hamilton

3 mile pipeline

-------
TEXAS CONT'D
PROJECT LOCATION
  WATER SUPPLY
  STORAGE
  AC. FTfc
                                  AGENCY OWNING
                                  RIGHT
                CITIES OR AGENCIES
                SERVED
                      METHOD OF WATER TRANSPORTATION
                      (NATURAL, CONDUIT,  ETC.)
Wallisvllle
Res., Tex.
   42,900
Benbrook Res.,
Tex.

Sam Rayburn
Res. Tex.
  170,350
1,145,000
                                                                        Water sources will be from Lake
                                                                        Livingston utilizing Trinity
                                                                        River Channel for conveyance to
                                                                        Pump Station.  This is a ten-
                                                                        tative plan, it is not certain
                                                                        whether an open canal or pipe-
                                                                        line will be used.  Natural
                                                                        channel to Anahuac.*

                                                                        Use of Clear Fork of Trinity
                                                                        River 10 miles

                                                                        Helps supply Dam B Reservoir.
                                                                        (See Dam B for Details)

                                                                        Located 128 miles upstream from
                                                                        the mouth of the Trinity River.
                                                                        This reservoir is to work as a
                                                                        unit with the Wallisville Res.
                                                                        Water is conveyed from Living-
                                                                        ston Res. to Wallisville Res. by
                                                                        the Trinity River Channel. Na-
                                                                        tural channel from Livingston to
                                                                        Houston intake on Trinity River.
                                                                        Natural channel from Livingston
                                                                        to Wallisville Reservoir.

*Anahuac's water will come from the Reservoir through Big Hog Bayou into Lake Anahuac by  gravity
flow.  It will then be lifted into their canal system by pumps at the Anahuac Pumping Plant.
Livingston Res.,  1,750,000
Tex.
City of
Houston
Trinitv River
Authority
Chambers-
Liberty
County Navi.
Dist.

Trinity River
Auth.

Neches River
Valley Auth.

Trinity River
Auth.
City of Houston

Wallisville, Tex.

Anahuac,  Tex.
Liberty,  Tex.



Fort Worth


Beaumont, Tex.


City of Houston

-------
     VIRGINIA
     PROJECT LOCATION    WATER SUPPLY  AGENCY OWNING   CITIES OR AGENCIES    METHOD OF WATER TRANSPORTATION
                         STORAGE       RIGHT           SERVED                (NATURAL, CONDUIT, ETC.)
     	AC. FT.	

     North Fork of                                     Pound, Va. &          2337 Pipeline (8") to plant,
     Pound, Va.                                        Treatment Plant       2370' of 4" pipe from filter
                                                                             plant to the dam.
CO

-------
                    ARKANSAS
  Regulating Dam
DE GRAY DAM SERVING ARKADELPHIA ARKANSAS
                175

-------
 CALIFORN  I A
                        COYOTE  DAM AND
                        LAKE  MENDOCINO
                                               \
       WARM SPRJflGS-DAM!
         ND~LAKE SONOMTPlrA  VS>
WARM SPRINGS DAM AND COYOTE DAM SERVING  SANTA ROSA,
FORESTVILLE, ROHNERT PARK, PETALUMA,  SONOMA  AND
NOVATO, CALIFORNIA
                      176

-------
                  KANSAS
                               Pottawatomie
                                      Lyon
COUNCIL  GROVE RESERVOIR SERVING COUNCIL GROVE,
                   KANSAS
                   177

-------
           IADWJ

    GARlttE DAW
    w* ar **" l0**
CARLYLE  DAM SERVING CARLYLE,  ILLINOIS
                    178

-------
SHELBYVILLE DAM SERVING SHELBYVILLE, ILLINOIS
                     179

-------
              Bloomi ngton
                          MONROE RESERVOIR
             ^Pumping Station
                  Bedford
MONROE RESERVOIR SERVING BLOOMINGTON AND BEDFORD,
                    .INDIANA
                       180

-------
oo
                     EAST BRIMF I ELD DAM SERVING AMERICAN OPTICAL COMPANY, MASSACHUSETTS

-------
oo
NJ
W. KERR SCOTT

-RESERVOIR
                       W, KERR SCOTT RESERVOIR SERVING WINSTON-SALEM,  NORTH CAROLINA

-------
HOMME RESERVOIR SERVING GRAFTON AND PARK RIVER,  AND
BALDHILL DAM SERVING FARGO AND GRAND FORKS, NORTH
                      DAKOTA
                       183

-------
CO
                                                                                   \[
                                                  v





                           CANTON RESERVOIR SERVING  OKLAHOMA CITY, OKLAHOMA

-------
OKLAHOMA
                     Spiro
              3 Reservoirs
              1,850,000 gal.
Poteau Water
Plant
WISTER RESERVOIR SERVING THE  HEAVENER UTILITIES
             AUTHORITY, OKLAHOMA
                    185

-------
                          TEXAS
                  GRAPEVINE
                     RESERVOIR
                   Grapevine
GRAPEVINE RESERVOIR SERVING GRAPEVINE AND DALLAS, TEXAS
                         186

-------
oo
EXAS
                  LAKE TEXOMA SERVING DEN I SON,  TEXAS AND TEXAS POWER AND LIGHT COMPANY

-------
                        TEXAS
BELTON RESERVOIR SERVING FORT HOOD, KIILEEN, AND
              TEMPLE, TEXAS

-------
    TEXAS
                       urnlReservoir
                       tations
                     Sabine Lake
                                   LOUISIANA
   Lveston
SAM RAYBURN RESERVOIR AND  DAM "B" SERVING  SILSBEE
              AND BEAUMONT, TEXAS
                      189

-------
                                TEXAS
             BENBROOK RESERVOIR
BENBROOK RESERVOIR  SERVING FORT WORTH, TEXAS
                   190

-------
PROCTOR DAM SERVING HAMILTON, TEXAS
                191

-------
                   Livingston
                   Reservoir
                                  TEXAS
                   Wallisville
                    Reservoir
LIVINGSTON  RESERVOIR AND WALLISVILLE RESERVOIR  SERVING
  HOUSTON,  WALLISVILLE, ANAHAUC,  AND LIBERTY, TEXAS
                        192

-------
                                   TEXAS
CANYON
RESERVOIR
SPRINGS HILL WATER
SUPPLY CORPORATION
 CANYON RESERVOIR SERVING  SPRINGS HILL  WATER SUPPLY
        CORPORATION AND PORT LAVACA,  TEXAS
                       193

-------
                                        APPENDIX II


                         TYPICAL CORPS OF ENGINEERS CONTRACT

                                                                CONTRACT NO.

                              WATER SUPPLY CONTRACT WITH
                                    CORPS OF ENGINEERS
                         CONTRACT BETWEEN THE UNITED STATES
                                        OF AMERICA
                                            AND

                                            FOR
                             WATER SUPPLY STORAGE SPACE IN
                                   	  RESERVOIR
     THIS CONTRACT is made this	day of	19	, by and between the United States of
America (hereinafter called the "United States"), represented by the  Contracting Officer executing this
contract, and the	  (hereinafter called the "User").

     WITNESSETH:

     WHEREAS, the Flood Control Act of 19	(	Stat.	), authorized the construction, operation,
and  maintenance of the	  Reservoir, on	River, in the State  of	)
(hereinafter called the "Project"); and

     WHEREAS, the User desires to contract with the United States for inclusion in the Project of storage
for municipal and industrial water supply, and for payment of the cost thereof in accordance with the
provisions of the Water Supply Act of 1958, as amended (43 U.S.C. 390b-f); and

     WHEREAS, the User is empowered so to contract and is vested  with  all  necessary powers for
accomplishment of the purpose of this contract.

     NOW, THEREFORE, the parties hereto do mutually agree as follows:

     ARTICLE 1.    WATER SUPPLY STORAGE
          a.     Rights of User. The User shall have the right to utilize [an undivided	per cent of]
the storage space in the Project between elevations	 feet above mean sea level and	feet above
mean sea level,  estimated to be	acre-feet, to impound water for  [present] [present and anticipated
future] [future] demand or need for municipal and industrial water supply. The User shall have the right to
withdraw water from the reservoir, or to order releases to be made by the United States, to the extent the
aforesaid storage space will  provide; and shall have the right to construct all such works, plants,  pipelines,
and appliances as may be necessary and convenient for the purpose of diversions or with drawals, subject to
the approval of the Contracting Officer as to design and location. The grant of an easement for right-of-way
                                                195

-------
over, across, in and upon land of the United States at the Project shall be by a separate instrument in a form
satisfactory to the Secretary of the Army, without additional cost to the User, under the authority and in
accordance with the provisions of 10 U.S.C. 2669. Subject to the conditions of such easement, the User
shall have the right to use so much of the Project land as may reasonably be required in the exercise of the
rights and privileges herein granted.

           b.      Rights Reserved.  [The United  States reserves the  right  to  maintain  at all times a
minimum downstream release of	cubic feet per second through the gates or spillway of the dam.]
[	to lower the water in the Project to elevation	feet above  mean sea level during each flood
control season and to maintain the water at that elevation for such periods of time as is deemed necessary,
in its sole discretion,  for flood control purposes.]  The  United  States [further]  reserves the  right to take
such measures as may be necessary in the operation of the Project to preserve life or property.

           c.      Quality or Availability of Water. The User recognizes that this contract provides storage
space for raw water  only. The  United States makes no representations with respect to  the quality or
availability of water and assumes no responsibility therefor, or for the treatment of the water.

      ARTICLE 2.     REGULATION OF AND RIGHT TO USE OF WATER

           The regulation of the use of the  water supply from  the aforesaid storage space shall be the
responsibility of the User. The User has the full responsibility to acquire in accordance with State laws and
regulations, and if necessary to establish and defend, any and all water rights needed for utilization of the
storage space provided under this contract. The United States shall not be responsible for diversions by
others, nor will it become a  party to  any controversies involving the use of the storage space by the User
except as such  controversies may affect the operations  of the United  States. The User shall utilize the
aforesaid storage space in a manner consistent with Federal and State laws.

      ARTICLES.     OPERATION AND MAINTENANCE

           The United States shall operate and maintain the dam and reservoir and the User shall pay to
the United States a share of the costs of such operation and maintenance as provided herein. The User shall
have the  right to direct releases of water to be made for its purposes as provided in Article 1. The User shall
be responsible for operation and  maintenance of all installations and facilities which it may construct for
the diversion or withdrawal of water,  and shall bear all costs of construction, operation  and maintenence of
such installations and facilities.

      ARTICLE 4.     MEASUREMENT OF WITHDRAWALS AND RELEASES

           The User* agrees  to furnish and  install, without cost to the United States, suitable meters or
measuring devices satisfactory to the Contracting Officer for the measurement of water which  is withdrawn
from the Project by any means other than through the Project outlet works. The User shall furnish to. the
United States monthly statements of all such withdrawals. Releases from the water supply storage space
through the Project outlet works shall be made in accordance with written schedules furnished by the User
and approved by  the  Contracting Officer. The measure of all such releases shall be by means of a rating
curve of  the outlet works, or by such other suitable means as may be agreed upon prior to use of the water
supply storage space.

      ARTICLE 5.     CONSIDERATION AND PAYMENT

           In consideration  of the right to utilize the aforesaid storage  space in the Project for municipal
and industrial water supply purposes, the User agrees to pay to the United States the fo1'owing sums:
                                                  196

-------
           a.      Project Investment Costs

                 (1)      The User shall repay to the United States, at the times and with interest on the
unpaid balance as hereinafter specified, the amounts stated below which, as shown in Exhibit "A" attached
to and made a  part  of this contract, constitute the entire amount of the construction costs, including
interest during  construction, allocated  to water supply. The  interest rate to  be  used for purposes of
computing interest during  construction  and interest on the unpaid balance will be determined by the
Secretary of the Treasury as of the beginning of the fiscal year in which construction of the project is
initiated, on the basis set forth in the Water Supply Act of 1958, as amended. The  User shall repay:
      100% of the construction cost of specific
      water supply facilities, estimated at
      	% of the total project joint-use
      construction costs, estimated  at                                      $

      Interest during construction, estimated at                            $

           Total estimated amount of Project
           investment costs allocated to
           water supply                                                  $
                 (2)	 acre-feet, or	%  of  the aforesaid storage space,  is storage provided for
immediate use by the User for present water supply demands. The Project investment costs allocated to this
storage provided for present demand is currently estimated at $	, on the basis of the costs presented in
Exhibit "A". The amount of the Project investment costs allocated to the storage for present demand shall
be paid in 50 consecutive annual installments, the first of which shall be due and payable  [on the first
anniversary of the date] [within 30 days after] the	 is notified by  the Contracting Officer that the
Project is completed and operational for water supply purposes. Annual installments thereafter will be due
and  payable on the anniversary date of the first payment.  [Except for  the first payment which will be
applied solely to the retirement of principal,] all installments shall include accrued interest on the unpaid
balance at the rate provided above. The last annual installment shall be adjusted upward or downward when
due to assure repayment of all of the investment costs allocated to the storage for present demand within
50 years.
                 (3)      The remaining	acre-feet, or	:% of the aforesaid storage space, is storage
provided for anticipated future water supply demand. The amount of the Project investment costs allocated
to this storage for future water supply is currently estimated at $	  on the basis of the costs presented
in Exhibit "A". No principal or interest payment with respect to this storage for future water supply is
required to be made during the  first 10 years following the date the Project is operational for water supply
purposes,  unless all or a portion of such storage is used during this period. The amount to be paid for any
portion of such storage which is used shall be determined by multiplying the percentage of the total storage
for future water supply which is placed  in use by the total amount of the Project investment costs allocated
to future  water supply. Interest at the  rate provided above will be charged on the amount of the Project
investment costs allocated to the storage for future water supply which is not being used from the 10th
year following the date the Project is operational for water supply purposes until such time as the storage is
                                                   197

-------
first used. The User may at its option pay the interest as it becomes due or allow the interest to accumulate
until the storage is used.  If this latter option is exercised, the interest will be compounded annually and
added to the principal amount. When any portion of the storage for future water supply is used, payment in
both principal and interest for the portion used must be started, and the amount of the Project investment
costs allocated thereto, with interest on the unpaid balance as provided above, shall be paid within the life
of the Project in not to exceed  50 consecutive annual  installments beginning [on the anniversary]  [within
30 days after the] date of first use.

                (4)      An estimated schedule of annual payments for the storage provided for present
demand is attached as Exhibit "B" of this contract. The annual payments as provided therein shall be made
until the actual construction costs of the project are determined, the  annual payments due thereafter will
be adjusted  to reflect any increase or decrease in the actual costs, including interest during construction,
from the estimated amounts shown in Exhibit "A". Payment schedules for the storage provided for future
water supply demands will be furnished by the Contracting Officer when use of such storage is started.

                (5)      If the User shall fail to make any of the aforesaid payments when due, then the
overdue payments shall bear interest at the rate provided until paid.

                (6)      The User shall have the right at any time it so elects to prepay the indebtedness
under this Article 5a, in whole or in part, with accrued interest thereon to the date of such prepayment.

           b.     Major Capital Replacement Costs

                The User will be required to pay the costs for any major capital replacements of  the
specific water supply facilities. In addition, the User shall pay to the United States	% of the costs of
joint-use major capital replacement items, when incurred. Payment shall be made  with the first annual
payment on the Project investment costs becoming due after the date said major capital replacement costs
are incurred.

           c.     Annual Operation and Maintenance Costs

                (1)      The  User  will  be  required to  pay the  annual  experienced operation and
maintenance costs of the specific water supply facilities. In addition, the User shall  pay	% of  the
annual experienced joint-use operation and maintenance costs of the  Project until such time as the storage
for future water supply is used. As the storage provided for future water supply demands is used, the share
of the annual experienced joint-use operation and maintenance costs, which the  User  will  be  required to
pay in  addition to the operation and  maintenance costs of the specific water supply facilities, will  be
increased commensurate with the percentage of the water supply storage being used, up to a total of	%
of such costs.

      ARTICLES.      PERIOD OF CONTRACT

           This contract  shall become effective as of  the date of approval by the Secretary of the Army,
and shall continue in full  force and effect under the conditions set forth herein, not to exceed the life of
the Project.

      ARTICLE 7.      PERMANENT RIGHTS TO STORAGE

           Upon completion of payments by the User, as provided in Article 5a herein, the User shall have
a permanent right, under  the provisions of Public Law 88-140, to the use of the water supply storage space
in the Project as provided in Article 1, subject to the following:
                                                  198

-------
           a.     The User shall continue payment of annual operation and maintenance costs allocated
to water supply.

           b.     The User shall bear the costs allocated t6 water supply of any necessary reconstruction,
rehabilitation or replacement of Project features which  may be required to continue satisfactory operation
of the  Project. Such costs will  be established by  the Contracting Officer.  Repayment  arrangements
including schedules will be in writing and will  be made a  part of this contract.

           c.     Upon  completion of  payments by  the  User  as  provided  in  Article 5a herein,  the
Contracting Officer shall  redetermine the storage space for municipal and industrial water supply, taking
into account such equitable reallocation of reservoir storage  capacities among the  purposes served by the
Project as may be necessary  due  to sedimentation. Such findings,  and the storage space allocated to
municipal and  industrial water supply, shall  be defined and described in an  exhibit which will be made a
part of this contract. Following the same principle, such reallocation of reservoir storage capacity may be
further adjusted  from  time to time as the result of sedimentation  resurveys to reflect actual rates of
sedimentation  and the exhibit revised  to  show the revised storage  space allocated to municipal and
industrial  water supply.

           d.     The permanent  rights of the User  under this contract shall be continued so long as the
United  States  continues  to operate the Project. In the event the United States no longer operates the
Project, such rights may be continued  subject  to the execution of a separate contract,  or additional
supplemental agreement providing for:

                 (1)      Continued operation by the User of such part of  the facility as is necessary for
utilization of the water supply storage space allocated to it;

                 (2)      terms which will protect the public  interest; and

                 (3)      effective  absolvement  of the United States  by  the User from all  liability In
connection with such continued operation.
     ARTICLE 8.      RE LEASE OF CLAIMS

           The User shall hold and save the United States, including its officer, agents, and employees,
harmless from  liability  of any nature or kind for or on account of any claim for damages which may be
filed or asserted as a result of the storage  and withdrawal or release of water from the Project made or
ordered by the User, or as a result of the construction, operation, or maintenance of the features or
appurtenances owned and operated by the User.
      ARTICLE 9.       TRANSFER  OR  ASSIGNMENT

           The User shall  not transfer or assign this contract nor any rights acquired thereunder, nor
sub-allot said water or any part thereof, nor grant any interest, privilege or license whatsoever in connection
with this contract, without the approval of the Secretary of the Army or his authorized representative;
provided that this restriction shall not be construed to  apply to any water which may be obtained from the
water supply  storage space by the User and furnished to any third party or parties or the rates charged
therefor.
                                                  199

-------
     ARTICLE 10.      OFFICIALS NOT TO BENEFIT

           No member of or delegate to Congress, or Resident Commissioner, shall be admitted to any
share or part of this contract, or to any benefit that may arise therefrom; but this provision shall not be
construed to extend to this contract if made with a corporation for its general benefit.

     ARTICLE 11.      COVENANT AGAINST CONTINGENT FEES

           The User warrants that no person or selling agency has been employed or retained to solicit or
secure  this contract upon an agreement  or understanding for a commission, percentage, brokerage, or
contingent  fee, excepting bona fide  employees or bona fide established commercial  or selling agencies
maintained by  the User for the purpose of securing business. For breach or violation of this warrenty, the
United States shall have the right to annul this contract without liability or, in its discretion, to add to the
contract price or  consideration the full amount of such commission, percentage, brokerage, or contingent
fee.

     ARTICLE 12.      APPROVAL OF CONTRACT

           This contract shall be subject to the written approval of the Secretary of the Army, and shall
not be binding until so approved.

           IN  WITNESS WHEREOF, the parties hereto have executed this agreement as of the day and
year first above written.

APPROVED:                                               THE UNITED STATES OF AMERICA
                                                           By
Secretary of the Army                                               (Contracting Officer)

DATE: 	
                                               200

-------
                                        APPENDIX III
             SUMMARY OF FEDERAL WATER POLLUTION CONTROL LEGISLATION

      The Water  Pollution Control Act  of  1948, ch. 758, 62 Stat. 1155, was the first serious effort by
Congress  to  recognize,  preserve, and  protect the  primary  responsibilities  and rights of the States in
controlling water pollution. Further Congressional attacks upon water pollution came about in the form of
amendments to the 1948 Act in  1956, 1961, 1965, and 1966. Each act will be discussed below in an effort
to show its major provisions, to show its effects on  each preceding act, and to show generally the present
state of Federal water pollution law.
                               The Water Pollution Control Act of 1948
                                           (62 Stat. 1155)

      The 1948 Act is the basic act dealing with water pollution control.  Section 1 of the act sets out the
policy of Congress to be:

        ...  to recognize, preserve and protect the primary responsibilities and rights of the States in
        controlling  water pollution, to support and  aid technical research to devise and perfect
        methods  of treatment  of  industrial wastes which are not susceptible to known effective
        methods  of treatment, and to provide Federal technical services  to State and interstate
        agencies and to municipalities, in the formulation and execution of their stream pollution
        abatement programs.

Section  1 also indicates that the Surgeon  General of the Public  Health  Service and the Federal  Works
Administrator would be generally vested with power to administer the act.

      Section 2 of  the act is a rather long and involved section which basically sets out how the Surgeon
General  shall go about  implementing the policies underlying the act as  set out in Section 1. First the
Surgeon General is given the power to prepare or adopt comprehensive programs for eliminating or reducing
pollution of interetate waters and in so doing is expressly told to give express regard to the improvements
necessary to conserve such water for public water supplies, propogation of fish and aquatic life, recreational
purposes, and agricultural, industrial  and other legitimate purposes. In order to effect such  programs the
Surgeon General is given authority to make joint investigations with state or interstate agencies of the
conditions of any State  waters, including any discharges of sewage, industiral wastes, or substance which
may be affecting the reasonable  purity  of such  waters. The Surgeon General is urged by Congress to
cooperate fully with the State in all these matters and activities.

      In Section 2(c) the states are given authority to enter into interstate compacts with other states for
the purpose of preventing and/or abating pollution in mutual waters. It should be noted that such consent
by Congress for interstate agreements by states is required by Artical I, section 10, clause 3 of the United
States Constitution.

      Significantly, in sections 2(d) (1)-(7) the pollution of interstate waters is declared a public nuisance.
These sections set up the jurisdiction and authority for the Surgeon General to take administrative actions
to abate the pollution of interstate waters and goes so far as to permit (with the consent of the appropriate
State) the Attorney General of the United States to bring a suit for abatement against the polluter.
                                                   201

-------
      Another significnat feature of the Act is Section 5, which allows the Federal Works Administrator to
authorize  loans  to  any state, municipality, or  interstate agency for  the planning and construction of
treatment works. Section 8 allows for grants to States to aid in financing activities preliminary to the
construction of projects approved by the State and the Surgeon General. Obviously, the control of water
pollution at the local and state level is an expensive undertaking  and these sections help to alleviate that
problem.

      In section  6(b) a Water Pollution Control Advisory Board is created whose duties are to review the
policies and programs of the Public Health Service and to make recommendations thereon in reports to the
Surgeon General.

      Section 7 authorizes a sum  not to exceed $20,000,000 to be appropriated in each of five fiscal years
(1948-1953) for the purposes of making loans under section 5. The remainder of the Actdeals primarily
with necessary appropriations needed to carry out and implement the Act.
                             Federal Water Pollution Control Act of 1956
                                           (70 Stat. 498)

      This  act  amended the Water Pollution Control Act of 1948 by replacing it  with new provisions
designed to extend and strengthen the  Act. There were several changes in the existing law. Appropriations
for the Water Pollution Control Act were to terminate on June 30,  1956, so that the 1956 Act is initially
significant  for extending this comprehensive federal legislation in the field of water pollution control. See,
1956 U.S. CODE. & CONG. & AD. NEWS 3024.

      Aside from this, however, the 1956 amendments added three  other significant  improvements to the
1948 Act by: 1) intensifying the national research effort in water pollution; 2) providing a broader basis for
support  to State and interstate pollution-control agencies; and 3)  providing a reasonable and equitable
mechanism for  Federal-State cooperation in resolving serious interstate pollution problems.

      In  looking at the first change  (No. 1  above)  Congress felt there was an important need (more
important that that expressed in the 1948 Act) for research to determine the impact of new pollutants on
public health and to find  more practical and economically feasible abatement measures. To this end the
1956 amendments  in sections 2-4 provided for  a  broadened and intensified national  research effort by
authorizing the Public Health Service to: 1) authorize contract research, thus making available for special
projects  specialized equipment  and personnel not needed by the Government  on a continuing basis; 2)
make research  grants to universities and other institutions for essential studies; and  3) to award research
fellowships in order to attract top talent to the field of water pollution control.

      The second basic change (No. 2 above) deals with support to  State and interstate programs. Section
8(c) of the 1948 act was  a  short statement indicating that  the Federal government would make grants
available to state and interstate  programs for preparatory activities preliminary to the construction of
projects approved by the Surgeon General.  Section 5 of the 1948 Actauthorized loans for the construction
of treatment works. The 1956 Act expands in great detail both these sections. In section 5 of the 1956 Act
grants are authorized for States and interstate agencies to assist them in meeting the costs of establishing
and maintaining adequate measures for the prevention and control of water pollution. This section sets out
in great detail how the grants are to be disseminated and used. These grants would be allotted on a formula
basis. The 1948 Act,was modified by requiring the grants to be on matching basis, and by authorizing their
use for all  essential phases of water-pollution control at the discretion of the State or  interstate agency.
Section 6 of the 1956 Act makes grants (as opposed to loans) available to the States for the construction of
treatment works.
                                                  202

-------
      The third major change deals with a more detailed mechanism in bringing about abatement of water
pollution. The 1956 Act, in effect, clarifies the procedures short of court action for administrative action
for abatement of water pollution and adds the provision that the States, if affected by pollution,  may
request the Attorney General to bring a court action against the polluter.

                       •Federal Water Pollution Control Act Amendments of 1961
                                           (75 Stat. 204)

      With  the passage of this Act Congress continued to recognize the value of a comprehensive national
program for water pollution control. Moreover the enormity of the problem continued to reveal itself.  As a
result. Congress, in Section 1 of these amendments, transferred  the administration  of the federal water
pollution control program from the Surgeon General to the Secretary of Health, Education and Welfare.

      A most significant addition to federal law on Water pollution control was in the area of water quality
control. The 1961  amendments, in section 2, states that in  planning any reservoirs by the Corps of
Engineers,  Bureau of  Reclamation or  any  other Federal agency consideration  should  be  given to the
inclusion of storage for  regulation  of streamflow for the purposes of water quality control.  By such
language congress approved such a technique of water quality control, although the Act was quick to add
that storage and  water releases should not  be provided as a substitute  for adequate treatment or other
methods of controlling waste at the source.

      In addition to transferring the administration of the Act to the Secretary of Health, Education, and
Welfare and in authorizing dilution water storage, the 1961 amendments made other significant changes.
One  was  related to  the extension of the  enforcement jurisdiction  of  the  Act.  Previously, federal
enforcement authority had applied  only to pollution of interstate water, "interstate waters" being defined
to exclude all coastal  waters  and  all  inland bodies of  waters not  crossing or  forming a  part of state
boundaries. In Section 9(e) of the  1961 amendments this definition was changed to include all navigable
waters, including coastal waters. This change was obviously designed to expand coverage of the act to all
waters which Congress could reach via the Commerce clause, which, under established court interpretations,
is a considerable reach.

      A final change in existing law is found in section 8(f) of the 1961 amendments. Under existing law
the consent of the appropriate State  or States was necessary before the United  States Attorney General
could bring any abatement actions. However, the 1961 amendments, in section 8(f), allow the Secretary to
request the Attorney General to bring suits in  the case  of pollution of waters which is endangering the
health or welfare of persons in a State other than that in which the discharge or discharges originate.

                                     Water Quality Act of 1965
                                           (79 Stat. 903)

      These amendments to the Federal Water Pollution  Control Act, besides providing additional grants
for research and development and additional grants for construction of sewage treatment works, make two
signifcant changes.

      The first change  appears in  section 2 of the 1965 Act wherein  is created the Federal Water Pollution
Control Administration within the Department of Health, Education, and Welfare.  The purpose of this
change was to provide appropriate identity to the importance of the water pollution control program and
to provide  for its more effective administration. The enforcement features of the Water Pollution Control
Act, as amended, which are already on the books, can be carried out in proper fashion by being placed
completely under the  jurisdiction of an Administration that will  devote its full time to seeing that every
step possible will be taken to clean up the Nation's waters.
                                                   203

-------
      The second significant change called for the establishment of water quality criteria for interstate
 waters. The 1965 Act at section 5(c)(3) places the following qualifications on these standards:

             Standards of quality established pursuant to this subsection shall be such as to protect
        the public health or welfare, enhance the  quality of water and serve the purposes of this
        Act. In establishing such standards the Secretary, the Hearing Board, or the appropriate
        State authority shall take into consideration their use and value for public water supplies,
        propagation of fish and wildlife, recreational purposes, and agricultural, industrial, and other
        legitimate uses.

 At Section 5(c)(T)-(4) provision is made for the establishment of these water quality criteria by each state
 for the interstate waters within its borders. These criteria become the water quality standards for that state
 when approved by the Secretary of Health, Education, and Welfare. In the event such criteria, and a plan
 for their  implementation and enforcement, are not established according to the conditions in the Act; the
 Secretary  has the authority to promulgate these standards, subject to the recommendations of a hearing
 board, should the governor of the affected state call for public hearings as provided for by the Act.

      The Water Quality Act states at section 5(c)(5)  that any discharge which reduces the quality of
 interstate  waters below the water quality standards established under the Act is subject to abatement.
 However, provision is made for a review of the standards by the court in any suit brought under the Act.
 The following quotation at section 5(c)(5) defines the jurisdiction of the court in such a case:

        The court, giving due consideration to  the practicability and to the physical and economic
        feasibility of complying with such standards, shall have jurisdiction to enter such judgment
        and orders enforcing such judgment as the public interest and the equities of the case may
        require.
                                  Reorganization Plan No. 2 of 1966
                                           (SOStat. 1608)

      It should be noted that under Reorganization  Plan  No. 2 the administration of the Federal Water
Pollution Control Act, as amended, was transferred from the Department of Health, Education, and Welfare
to the Department of Interior. The Secretary of Health, Education, and Welfare presently involves himself
in water pollution problems only to the extent that such problems affect the public health.

                                Clean Water Restoration Act of 1966
                                           (SOStat. 1246)

      The Clean Water Restoration Act is merely an expansion of the concepts developed by Congress in
the water quality standards provisions of the Water Quality Act of 1965. The major provision in the 1966
Act, found in Title I, provided for the establishment  of clean river restoration programs through planning
agencies. The agencies are designated at the request of the Govenor or Governors of the appropriate State
or States  affected by the river  basin in question, provided the agencies adequately  represent affected
state(s) involved  and are capable of developing an  effective, comprehensive water quality control and
abatement plan for  the  river basin  in question. Title I  further  provides for grants to  finance approved
planning agencies.

      The remainder of  the  Act provides for appropriative measures needed to finance Title I  and for
additional grants for research and development, construction of sewage treatment works, oil pollution
studies, and other matters.
                                                   204

-------
                               Water Quality Improvement Act of 1970
                                             (84Stat. 91)

      The most recent extension  of pollution control legislation is contained in Title I of the Water and
Environmental Quality Improvement Act of 1970 popularly known as the Water Quality Improvement Act
of 1970.

      The  Act  contains  special provisions  regarding pollution by oil and  certain other substances.  It
prohibits the'discharge of oil into thejiavigable waters of the United States except under special conditions
determined  not to be harmful. Other substances presenting an imminent and substantial danger to the
public health and welfare are to be removed from all discharges.

      Control of sewage  discharges from vessels is  within  the  purview of  the Act. The Secretary of the
Interior  is given the responsibility of promulgating federal standards of performance for marine sanitation
devices designed to prevent discharge of untreated or inadequately treated sewage into the navigable waters
of the United States. A related provision authorizes federal research concerning equipment for human waste
disposal  on vessels, particularly in the case of small recreational craft.

      Another significant provision of the 1970 Act concerns cooperation by the various federal agencies in
the control  of pollution.  Every federal agency having jurisdictions over real property or facilities is directed
to insure compliance with  applicable water quality standards and the purposes  of the Federal Water
Pollution Control  Act in  the administration of the property or  facilities. Organizations other than federal
agencies  who make application for a federal license to conduct activities resulting in  discharges into
navigable waters are  required  by  the Act to provide the federal licensing agency with certification from
either a  state,  interstate  agency, or the Secretary of the Interior that water quality slSntterds will  not be
violated. In  the event the Secretary determines that water quality standards  in another state might be
violated, the license can be conditioned by the licensing agency to insure compliance with such standards.  If
construction has been initiated or an application is pending at the date of enactment of the 1970 Act,
certification  regarding  compliance with applicable water quality standards is not required. However, any
such  license issued without this  certification is of limited duration,  and this condition will have  to be
fulfilled  at a later date.  Licenses issued in compliance  with  this Act  can  be suspended if water quality
standards are ever  violated by the license.

      Authorization for federal participation  in several experimental projects is provided by the Act. One
project involves the demonstration of methods for the elimination or control of acid or other mine wastes.
Another  involves  the  elimination or control of  pollution within all or any  part of the watershed of the
Great  Lakes. Projects to demonstrate methods of providing for central community facilities for safe water
and control of pollution  in Alaskan villages without such facilities is authorized for federal  participation.
Provision is also made for contracts and  grants for study  of means to reduce or control man made pollution
in lakes.

      Education and trainingg of personnel  in the area of water quality control also comes within the scope
of this legislation. Authorization  is provided for training grants and contracts with institutions of higher
education to assist in the  preparation of  undergraduates in  this occupational area. The  awarding of
scholarships for persons entering an occupation involving operation and maintenance of treatment works is
authorized.  Provision is also  made for a pilot program for manpower development and training in the field
of operation and maintenance of treatment works.

      The Act contains several other unrelated provisions. The Corps of Engineers  is authorized to allow
non-federal  organizations to  use  federal spoil disposal areas.  A  program  is established to give official
recognition to outstanding achievement  in waste treatment and pollution abatement. The Secretary of the


                                                    205

-------
Interior is directed to convey the latest scientific knowledge concerning the effects of pesticides on health
and welfare to the states.  Finally, the name of the agency responsible for the administration of the Federal
Water Pollution  Control Act is changed from the Federal Water Pollution Control Administration to the
Federal Water Quality Administration.
                                                  206

-------
                                          APPENDIX IV
               STATE LAW RELATED TO ASPECTS OF WATER QUALITY STORAGE
                                     IN 17 WESTERN STATES

     The water law of the western states shows considerable variation among the individual states with
respect  to  three  issues  of possible importance in  the  implementation of federal water quality storage
legislation. These issues include:
     (1)   The status of low-flow augmentation as a beneficial use,
     (2)   The water right as an appurtenance to land, and
     (3)   The maintenance of control  over water stored for  quality purposes after it is released from
           storage.
Provisions of  the  laws of the individual states that are applicable to each of these three issues will  be
discussed.

                                             Arizona

Water Quality Storage as a Beneficial Use

     Beneficial use  is recognized  in Arizona both  by statute and judicial interpretation.^ Although this
concept has not been defined, the legislature has passed an act enumerating the uses for which water might
be appropriated.

       Any person  or the state of Arizona or  a  political subdivision thereof may appropriate
       unappropriated water  for  domestic,  municipal, irrigation, stock watering, water  power,
       recreation, wildlife, including fish, mining  uses,  for his personal use or for delivery to
       consumers. The  person or the  state  of Arizona or political  subdivision  thereof  first
       appropriating the water shall have the better right.^

Storage for stream flow augmentation for water quality control is not included as a permitted use, but the
wording of the statute does not appear to be restrictive. It would seem that water may be appropriated for
a use not stated in the statute if it can be shown that the proposed use is in direct support of one of the
enumerated uses.  For example, dilution water to improve a stretch of stream which is  devoid  of fish
because of pollution would seem to be an appropriation in direct support of one of the specified uses and,
therefore, consistent with the intent of the statute.

Water Rights as Appurtenances to Land

     The doctrine requiring that  water  rights  be appurtenant  to land was first espoused in  1901. It has
been the consistent holding of the Arizona courts to the present day.
       . . .[A] water right, to be effective, must be attached to and pertain to a particular tract of
       land, and is in no sense a 'floating' right. We do not wish to be understood as holding that a
       water right which is so attached becomes inseparable from such land. That is to say, we do
       not  hold that  a prior appropriator  of water  may  not convey his prior appropriation to
       another, without the land, so as to confer upon his vendee of such water right all the rights
       which the vendor may possess, provided such vendee makes a beneficial use of such water
       right upon lands which he owns or possesses. But we desire to  be  understood simply as
       holding that, so long as a water right is attached to a particular piece of land, it cannot be
                                                   207

-------
        made  to do duty to such land, and as well  to other land not owned or possessed by such
        water-right holder, at the will or option of the latter.-*

The latest case where the question was considered arose in 1953.

        . . .[A] water right is attached to the land on which it is beneficially used and becomes
        appurtenant thereto, and that  the right is not in any individual or owner of the land. It is in
        no sense a floating  right, nor  can the right, once having attached to a particular piece of
        land, be made to do duty to any other land, with certain exceptions, e.g., where the land is
        washed away.^

Control of Dilution Water

      The use of  a natural  waterway  to carry water of another  is recognized by statute. Use of a natural
channel as a conduit would seem to be well established in practice since the method of arbitrating  disputes
over the division of water is detailed in the legislation.

        Although  the waters which naturally flow  in the natural  channel of a stream have  been
        previously appropriated and put  to beneficial  use  by others, the channel may be used to
        carry water of another, if such use can be made without diminishing the quantity of water
        which naturally flows therein the use of which has been appropriated."

                                              California

Water Quality Storage as a Beneficial Use

      Beneficial use is not defined by  statute, and  no court decisions clearly indicate the criteria for what
constitutes beneficial use. Most of the  cases on the subject have involved interpreting specific fact situations
as to whether the use in question is beneficial. The case of Tulare Irrigation District v.  Lindsay-Strathmore
 Irrigation District^ provides the criteria cited in much of California's case law.

        What is a beneficial  use, of course, depends upon the facts and circumstances of each case.
        What may  be a reasonable beneficial use, where water is present in excess of all needs, would
        not be a reasonable beneficial use in  an area of great scarcity and great need. What is a
        beneficial  use at one time may, because of changed conditions, become a waste of water at a
        later time7
The language does not preclude water quality control from being a beneficial purpose.

      The California  Water Code specifies that the use of  water for preservation  of fish and wildlife
resources is beneficial.

             The use of water for recreation and preservation enhancement of fish and wildlife
       resources is a beneficial use of water.&

The language of this statute suggests that the use of water for water quality purposes would be useful and
beneficial under California law. In addition,  the Code provides for salinity control in the Sacramento-San
Joaquin  Delta9 Although this is legislation for a specific area it would suggest support for a water policy
that includes quality control as a beneficial use.
                                                   208

-------
Water Rights as Appurtenances to Land

      Riparian rights have been held to be inseparable from the land but there has been no distinct holding
as to whether appropriated water rights are appurtenant to land.

        [S] uch right [riparian]  are  inseparately  annexed to the soil and pass with a grant of the
        land, not necessarily as an easement for appurtenance but as parcel of the land itself.10

Control of Dilution Water

      Recognition by statute is given to the right to commingle water and then reclaim it.

        Water which has been appropriated may be turned into the channel  of another  stream,
        mingled with its  water,  and then  reclaimed;  but in  reclaiming it  the  water  already
        appropriated by another shall not be diminished.11

                                              Colorado

Water Quality Storage as a Beneficial Use

      The  application of water to  beneficial  use is  an  indispensable part  in defining a water right  in
Colorado.1^ The statutes and the case law are silent as to whether the storage of water for water quality
purposes is a  beneficial use. The Water Commission appears to have taken the  position that use of water for
dilution purposes is not a beneficial use.1**

Water Rights as Appurtenances to Land

      Only  one Colorado case concerns the question  of  whether an appropriation for a beneficial use is
appurtenant to land. Some confusion surrounds this case. Corpus Juris Secundum cites the case for holding
that the ownership or possession of the land on which beneficial application is to be made is necessary to
constitute one an appropriator;1^ however, the language of the court suggests an opposite view.

             Judge Lewis in an opinion-summarizes [Colorado cases on the point] as follows: 'If I
       rightly  understand these cases, they hold:  ...(3)  he who  applies  water thus diverted to
       beneficial use acquires a property right in the use of the water thus applied which he, and he
       only, can sell, dispose of and convey by deed separate and  apart from the land to which it
       has been applied or with the land to which it has been applied.'15

Control of Dilution Water

      Colorado by statute specifically protects the right  of storage owners to use a natural  stream  as a
conduit. The language would seem broad enough to protect legally stored  water  discharged into a stream
for quality purposes.

       The owners  of any reservoir may conduct the  waters legally stored therein  into and along
       any  of the natural streams of the  state,...and  may  take  the  same out again at any point
       desired with due regard to the prior or subsequent rights of others to other waters in said
       natural streams. Due allowance shall be made for evaporation and other losses from  natural
       causes for the protection of all rights to the waters flowing in said streams such losses to be
       determined by the state engineer.1^
                                                   209

-------
                                               Kansas

Water Quality Storage as a Beneficial Use

      Kansas apparently has recognized stream flow regulation as a beneficial use.

             The development, to meet the anticipated future needs of the people of the state, of
        sufficient supplies of water for beneficial purposes, including but not limited to purposes
        that  are domestic,  stockwater, municipal, irrigation,  agricultural,  industrial, streamflow
        regulation,  public   recreational  and  fish  and  wildlife,  water  power,  and  navigation
        purposes;....[Emphasis added]17

The  general goals and  objectives of  the  state  of  Kansas  as set  forth  by  statute include  low-flow
augmentation.

        . . .[T]he  inclusion in  publicly financed structures  for the development, conservation,
        control, or management of the water resources of the state of reasonable amounts of storage
        capacity for the regulation of the low flows of the watercourses of the state.  °

Water Rights as Appurtenances to Land

      By statute, water rights are both appurtenant and severable from the land. Thus the acquisition of
water rights for dilution purposes could  not be complicated because of the water right being appurtenant to
the land.

             "Water right' means any vested right or appropriation right under which a person may
        lawfully divert and use water. It is a real  property right appurtenant to and severable from
        the land on or in connection with which  the water is used and such water right passes as an
        appurtenance with conveyance of the land by deed, lease, mortgage, will, or other voluntary
        disposal, or by inheritance.


Control of Dilution Water

      Water quality releases would appear to be fully protected under Kansas statutes.

        It shall  be  unlawful... for any person  without an agreement  with the state of  Kansas to
       divert or take any water that has been released from storage under authority of the state of
        Kansas or that has been released from storage  pursuant to an agreement  between the state
       and federal  government.

                                               Idaho

Water Quality Storage as a Beneficial Use

      The right to use water is by statute contingent on applying the water to  some useful or beneficial
purpose.21 As to what constitutes a beneficial use, there appears to be neither case nor statute establishing
a criterion.  The question is apparently decided on  a  case  by case basis. Domestic use  is defined by
statute,22 and a general policy favorable to irrigation formerly existed.23 The latter was repealed by a 1969
amendment. Mention is also made  that minimum stream flows will be fostered  and encouraged, thus
indicating, indirectly, that water used for quality improvement would be a beneficial use.
                                                   210

-------
             Subject to the primary use of water for the beneficial uses now or hereafter prescribed
        by law, minimum streamflow  for aquatic life and the minimization of pollution shall be
        fostered and encouraged....  *

Water Rights as Appurtenances to Land

      By statute the right to use water  is not considered a property right but an appurtenance to land.

        [A] nd  the right to the use  of  any of the public waters which have heretofore been or may
        hereafter be allotted or beneficially applied, shall not be considered as being a property right
        in itself, but such right shall  become the complement of, or one of the appurtenances of, the
        land or other thing to which, through necessity, said water is being applied;...?$

Control of Dilution Water

      One statute allows water to be commingled with those of a stream and reclaimed later, and another
specifically allows the owner of a reservoir to use the bed of the stream to carry stored water. The language
of the two statutes seems broad enough to preclude others from utilizing water released to a stream for
water quality purposes and to confer a  special privilege on the storers of water.

        ...[W] ater appropriated may be turned into the channel of another stream and mingled with
                                     r\C
        its water, and then reclaimed;../0

        A reservoir  owner may use the  bed of a stream, or a natural water course, for the purpose of
        carrying stored water.2?

                                              Montana

Water Quality Storage as a Beneficial Use

      Montana  specifies by statute that appropriation must be for beneficial use,2** but no effort has been
made to spell out the general criteria.

Water Rights as Appurtenances to Land

      In 1936  a case came  before the Montana Supreme Court  regarding the validity of a water right
separate and  apart from the land  to which it was attached. The decision of the court seems to support the
proposition that a nonappurtenant water right is a proper subject of transfer.

       Hence,  as applied to a water right which is held independent of the land, transfer thereof
       does  not result in creating additional buraens upon other appropriates,... We accordingly
       hold that a water right in gross may be the subject of transfer.29

Contra! of Dilution  Water

      Protection is provided by statute for those releasing appropriated water into the channc I of another
stream.

             The water appropriated may be turned into the channel of another stream, or from a
       reservoir into a stream and mingled with its waters, and then reclaimed; but in reclaiming it,
                                                   211

-------
       water already appropriated by another shall not be diminished in quantity, nor deteriorated
       in quality.  ^

                                             Nebraska

Water Quality Storage as a Beneficial Use

     Although Nebraska would appear to have adopted the beneficial use concept as the measure and limit
of a water use, there is no specific statutory authority. Mention is made of beneficial use in statutory and
case law; but there apparently has been no need to establish a criteria for what constitutes beneficial use.31
Use of water for quality purposes would not appear to be foreclosed under Nebraska  law.

     A  statute,  setting  forth the public policy  of  the  state with  respect to pollution,  provides  for
cooperation with the federal government to reach the desired objectives. The language suggests that  if water
quality storage were to improve materially the waters of the state, the state would cooperate.

       .  . .[l]t is hereby declared to be the public policy'of this state to conserve waters of the
       state and to protect, maintain and improve the quality thereof for public water supplies, for
       the propogation of wildlife, fish and aquatic life, and for  domestic, agricultural, industrial,
       recreational and other legitimate beneficial  uses; to provide that no waste be discharged into
       any waters of the state without first receiving the necessary treatment or other corrective
       action to protect the legitimate beneficial uses of such waters; to provide for the prevention,
       abatement and control of new  or  existing water  pollution; and to cooperate with other
       agencies of the state,  agencies of other states and the federal government  in carrying out
       these objectives.3^


     The language of the Act detailing the powers and duties of the State Water Pollution Control Council
provides broad authority permitting storage of water for dilution.

       ...(9)  To issue, modify, or revoke orders:... (b) requiring the construction of new disposal
       systems or any parts  thereof or the  modification, extension or the adoption of other
       remedial measures to prevent, control or abate pollution;,..33

Water Rights as Appurtenances to  Land

     Appropriated water  rights appear to be appurtenant to land and do not exist apart from the land to
which the water is applied.

       It is apparent from  the evidence that Smith intended to abandon any irrigation  rights
       existing under Docket No. 847. There was a complete nonuser of  the irrigation rights by
       Smith. Such abandonment  is binding upon the defendant,  since  he claims title to the
       property and the water rights  appurtenant  to  it under Smith and his co-owner Langford.3^

Control of Dilution Water

     Nebraska  law, by statute, may prevent water for water quality purposes from being diverted from a
natural channel where it had  been  introduced.

            Any person may conduct water into or along any of the natural streams or channels of
       this state,  and may  withdraw all such water at  any point without regard to any  prior
                                                   212

-------
        appropriation  of water  from  such  stream,  due  allowance being  made  for  losses in
        transit....35

                                               Nevada

Water Quality Storage as a Beneficial Use

      The application of water to beneficial use has been a part of Nevada's  appropriative doctrine since
early times and now exists as- part of the statutory law.36 This statute has never been construed by the
courts although an early case seemed to equate beneficial use to reasonable use.37 The limitation to a
reasonable use was later codified, but in so doing, the concept of economical  use was added.3** The use of
the term "economical" in the statute does not appear to preclude the use of dilution water as a beneficial
use. All uses must not only be beneficial in the abstract sense, but must also be a reasonable and economic
use in the light of other demands for water allocation. Stream augmentation by the 1961 amendment is not
a substitute for adequate treatment. However, dilution as an aid to improved water quality in a stream may
be much more economical than to attempt one hundred per cent treatment with existing processes.

Water Rights as Appurtenances to Land

      Water used in the state for beneficial purposes remains appurtenant to land according to statute.
             All water  used in this state for beneficial purposes shall remain appurtenant to the
       place of use; provided:

       1.      That if for any reason it should at any time become impracticable to use water
       beneficially or economically  at the  place to which it is appurtenant, the right may be
       severed from such place of use and simultaneously transferred and become appurtenant to
       other place or places of use, in the  manner provided in  this chapter, and not otherwise,
       without losing priority of right heretofore established;

       and

       2. That the provisions of this section shall not apply in cases of ditch or canal companies
       which have appropriated water for diversion and transmission to the lands of private persons
       at an annual charge.3"

This latter provision establishes a precedent for the separation of water rights from the ownership of land
which could be extended to include water stored for quality regulation.

Control of Dilution Water

     The use of a natural  channel  as a mixing basin for  dilution water appears  to  be protected under
existing statutory enactment.

             Water may be stored for a beneficial purpose. Water turned into any natural channel
       or watercourse by any person entitled to the use thereof, whether stored in Nevada or in an
       adjoining state, may be claimed for beneficial  use below, and diverted from the channel or
       watercourse by such person, subject to existing rights, due allowance for losses to be made,
       as determined by the state engineer.^0
                                                  213

-------
                                            New Mexico

Water Quality Storage as a Beneficial Use

      The Water Quality Act passed in  1967 by the New Mexico legislature established a Water Quality
Control  Commission with  authority  to adopt and enforce water quality standards.  This  commission
adopted an Implementation and Enforcement plan for Water Quality  Control  which does not recognize
low-flow augmentation as a beneficial use.

        [B] eneficial  use  is the basis, the measure and the limit of a right to the use of water; and
        priority  or appropriation gives the better right. In New Mexico, water supply is so limited
        that storage for later release to control pollution by dilution in general would constitute an
        intolerable waste of a vital resource.^

Water Rights as Appurtenances to Land

      A New Mexico statute indicates that irrigation water is appurtenant to land but may be transferred to
other land and  in some cases to other purposes. There is no specific provision for severability from  land
although the possibility does not seem to be precluded.

             All water used in this state for irrigation purposes, except as otherwise provided in this
        article, shall be considered appurtenant to the land upon which it is used, and the right to
        use the same upon said land shall never be severed from the land without the consent of the
        owner of the land; but by and with the consent of the owner of the land, all or any part of
        said  right may  be severed from said  land, and  simultaneously transferred, and  become
        appurtenant to other land, or may be transferred for other purposes, without losing priority
        of right theretofore established, if such changes can be made without detriment to existing
        rights,  on the  approval  of  an  application  of the  owner by the state  engineer. Before the
        approval of such application, the applicant must given notice thereof by publication, in the
        form  required by  the state engineer, once a week  for three(3)  consecutive weeks in a
        newspaper of general circulation in the stream system in  which the tract or tracts of land
        may  be situated. [Emphasis added] 42

Control  of Dilution Water

      The use of a stream as  a conduit is protected by statute. It would also seem to protect the water in
the stream from use by others, provided dilution were considered a beneficial use.

            Whenever the  owner of a ditch, canal, pipeline,  reservoir, or other works shall  turn or
       deliver water from one stream or drainage into another stream or drainage, such owner may
       take and use the same quantity of water, less a reasonable deduction for evaporation  and
       seepage to be determined by the state engineer,  and such owner may be required by the
       state engineer to construct or maintain suitable measuring flumes or devices at the point or
       points where said water  leaves its natural stream  or  watershed, or is turned into another
       stream or watershed. Where the rights of others are not injured thereby, it shall be lawful for
       the owner of any reservoir, canal or other work, to deliver water into any ditch, stream, or
       watercourse,  to supply, appropriations therefrom and to take in exchange therefor, either
       above or below such point of delivery, a quantity  of  water equivalent to  that so delivered,
       less a  proper deduction for evaporation and  seepage to be determined by the state engineer;
       Provided, such owner  shall, under the direction of the state engineer, construct and maintain
       suitable measuring devices at the points of delivery and diversion.^
                                                   214

-------
                                            North Dakota

 Water Quality Storage as a Beneficial Use

      By statute beneficial use is made a part of the right to use water.44 The criteria as to what constitutes
 beneficial use is not defined by either case or statutory law. The test of whether or not a use is reasonable is
 based upon all  the  circumstances of the case.45 Priorities ambng various uses are  recognized  by
 statute-domestic, livestock, irrigation and industry, and fish, wildlife, and other outdoor reasonable uses.46
 All of these uses would be presumed beneficial, and use of water for quality control purposes would not
 seem to  be prohibited.

 Water Rights as Appurtenances to Land

      Statutory language suggests that appropriated water can be severed from the land when it is applied
 to other beneficial uses than irrigation.
       All waters appropriated  for  irrigation purposes shall  be appurtenant to specified  lands
       owned  by the person  claiming  the  right to use the water, so long as the  water is used
       beneficially thereon unless such  rights to use water have been severed for other beneficial
       uses as  provided by section 61-04-15. Priority in time shall give the better right. [Emphasis
       added]47

Section 61-04-15 authorizes the State Engineer to approve the assignment of water rights.

             Any conditional or perfected water  permit to  appropriate water  for  irrigation
       purposes  shall  be  assigned  only  upon approval  by the  state engineer of an application for
       such  assignment. Any conditional  or perfected water permit may also  be transferred with
       the approval of the state  engineer to any parcel of land owned by the holder of such water
       permit.48

The two  statutes read together  would seem to provide some authority for the transfer of water rights
appurtenant  to land to other beneficial uses. If water for dilution were considered a beneficial use the state
law provides some vehicle for applying the water to quality purposes without regard to the ownership of
land.

Control of Dilution Water

      By statute  natural watercourses can be utilized to convey water, and the language appears general
enough to allow various stretches  of a stream  to be used as a basin for dilution purposes.

           Water turned  into any natural  or artificial watercourse by any party entitled to the use of 'such
      water may  be reclaimed below and diverted therefrom by such party, subject to existing rights, due
      allowance for losses being made, as determined by the state engineer.49

                                             Oklahoma

Water Quality Storage as a Beneficial Use

      Beneficial use  is construed by statute to be the measure and the limit of the right to use water.50 The
Oklahoma Water Resources Board has defined beneficial use as follows:
                                                   215

-------
        Beneficial  use is the use  of such quantity of water  when  reasonable  intelligence and
        reasonable diligence are exercised in its application for a lawful purpose, as is economically
        necessary for that purpose.  '

 In Chapter 2, Section 205.1  (1964) of the Rules, Regulations and Modes of Procedures of the Board, water
 quality control is listed as a beneficial use for which waters of the State of Oklahoma may be appropriated.
 Such right to appropriate water is granted by the Oklahoma Water Resources Board upon the filing of an
 application for a permit. Although  no specific mention is made of stream flow augmentation as being a
 beneficial use for water quality control in the regulations of the Oklahoma Water Resources Board, the
 statute creating the Pollution Control Coordinating Board provides that the Coordinating Board has the
 power to:

             . . . prescribe .  . . beneficial uses of the waters of the State for the prevention, control
        and abatement of pollution.5^
     The state policy on the use of storage facilities appears favorable to use of structures of the Federal
Government for the use and benefit of the public.

       It is  the purpose  of this Act  to  provide or assist  in  providing  for the acquisition,
       development and utilization of storage and control facilities of the waters of this State for
       the use and benefit of the public and for the conservation and distribution of water for
       useful  purposes  in  or from reservoirs or other storage facilities constructed ... by the
       United States of America  or the State of Oklahoma or any agency, department, subdivision
       or instrumentality thereof  ... ,5^

     The statutes  and regulations  set out above provide a  strong  basis  for  the  Pollution  Control
Coordinating Board to accord legal recognition to stream flow augmentation for water quality control as a
beneficial use.
Water Rights as Appurtenances to Land

      By statute, irrigation water rights are appurtenant to land, but provision  is made whereby the water
right can be severed. The status of other water rights as they relate to land are unresolved.

       All water used in  this State for  irrigation purposes shall remain appurtenant to the land
       upon which  it is  used:  Provided,  that  if for any  reason  it should at  anytime become
       impractical to beneficially or economically use water for the irrigation of any land to which
       the right of use of same is appurtenant, said right may be severed ... ,5^

Control of Dilution Water

      Protection is afforded by statute for those releasing water into a natural watercourse.

       Water turned into  any natural or artificial watercourse by any party entitled to the use  of
       such water may be reclaimed below and diverted therefrom by such party,  subject  to
       existing rights, due allowance for losses being made by the State Engineer.55
                                                   216

-------
                                               Oregon

Water Quality Storage as a Beneficial Use

     The common law appears to have recognized the beneficial use concept as it relates to water rights.^
The criteria for determining beneficial use has not been made specific in either the statutes or case law. The
language on pollution control would seem broad enough to allow water to be used for dilution purposes.

             (1)  Whereas the pollution of the waters of this state constitutes a menace to public
       health and welfare, creates public nuisances,... it is hereby declared to be the public policy
       of the state  to  conserve the waters of the state  and to protect,  maintain and improve the
       quality thereof for public water supplies,...  for domestic, agricultural, industrial, municipal,
       recreational and other legitimate beneficial uses;...57


Water  Rights as Appurtenances to Land

      The case law has uniformly held that water rights are not appurtenant to land.

             The water right  . . . was a valid property right that might be sold and transferred
       separately from his land:...^

The court then proceeded to quote with approval language from a Wyoming decision.

             The only  limitation upon the right of sale of a water right separate from the land to
       which it was first applied, and to which it has become appurtenant, laid down by any of the
       authorities, is, that it shall not injuriously affect the rights of other appropriators.'^

Control of Dilution Water

      The right to use a channel as a conduit is limited by statute to water stored in reservoirs. The language
would seem to cover the situation related to water quality storage.

             Whenever the owner, manager or lessee of a reservoir constructed under the provisions
       of the Water Rights Act... desires to use the bed of a stream, or other watercourse, to carry
       stored or impounded water from the reservoir to the consumer thereof, he shall, in writing,
       notify the watermaster of  the district in which  the  stored or impounded water from the
       reservoir  is to  be used, giving  the date when it  is  proposed to discharge  water from the
       reservoir, its volume, and  the names of all persons and ditches entitled to its  use. The
       watermaster shall then close,  or so adjust  the headgates of all ditches from the stream or
       watercourse, not entitled to the use of such stored water,  as will enable those having the
       right to secure the volume to which they are entitled."0
                                            South Dakota

Water Quality Storage as a Beneficial Use

      By  statute the general welfare requires that the water resources of the  state be put to beneficial
use.61 Beneficial use is defined in general terms:
                                                   217

-------
             'Beneficial  use,'  any use of water that is reasonable and useful and beneficial to the
       appropriator, and at the same time is consistent with the interests of the public in the best
       utilization of water supplies."^

 In order for the United States  to become the appropriator of water for quality purposes, this use must be in
 the public interest. The latter is a question of fact to be decided by a jury. Previous cases have not indicated
 the type of activities that are considered to be within the public interest.
Water Rights as Appurtenances to Land

      Irrigation water is by statute appurtenant to land although no mention is stated with respect to other
water uses.

            All water used in this state for irrigation purposes shall remain appurtenant to the land
       upon which it is used; but if for any reason it should at any time become impracticable to
       use all  or any part of such water beneficially or  economically for the irrigation of any land
       to which the  right of its use  is appurtenant, all or any part of such right may be severed
       from such  land  and  simultaneously transferred and become appurtenant  to  other land
       without losing priority of right theretofore established, if such change can be made without
       detriment to  existing rights,  upon the approval of  an  application of the owner to the
       commission."

An inference can be made that if this  restriction were to apply to other uses, the language could easily have
been made more comprehensive.  It must be presumed that the restriction is limited only  to "All water... for
irrigation  purposes  ...."  Water rights appropriated or condemned for other purposes appear to be outside
the purview of this statute.

Control of Dilution Water

      The rights to water are not  lost by its release to natural or artificial channels.

            Water turned into any natural or artificial  watercourse by any person  entitled to the
       use of  such  water may be reclaimed below and diverted therefrom by such person,  subject
       to existing  rights, due allowance for losses to be made, as determined by the commission."'*

                                               Texas

Water Quality Storage as a Beneficial Use

      The water of all rivers, streams, lakes, and the bays or arms of  the Gulf  of Mexico in Texas are
declared to be the property of  the State, subject  to appropriation for the  purposes  set forth in  Texas
Statutes."^ The Texas Water Rights Commission has the power to grant permits for appropriation of water,
and for the construction of  any  impounding or diversion facility."" The purposes for which public waters
may  be appropriated and  the  priorities  of  these uses  are specified by statute.^  Impoundment or
appropriation of water for later release to control the quality of a waterway was not originally approved.

      The Twenty-Seventh Report  of the Texas  Water Rights Commission covering the  fiscal  biennium
from September 1, 1964, to August 31, 1966, contained  the following recommendation for legislation:
                                                   218

-------
             Because  of our  rapidly expanding economy  and technological development,  the
        purposes for which water may be appropriated (listed in Articles 7468 and 7470, Vernon's
        Civil  Statutes)  are  rapidly being outdated.  For example,  inclusion of conservation storage
        for water ©jality and mosquito control are matters of accomplished fact in Federal projects.
        The future may well  require inclusion of storage for the protection of aquatic habitat in the
        State's bays and estuaries.

             The Commission  recommends that Articles 7468 and 7470 be  amended to add at the
        ending of the specific listing of uses, words to the effect that water may be appropriated for
        other  beneficial uses  prescribed  from  time  to  time  in  the Commission's  Rules and
        Regulations. The Commission also recommends that an eighth category be added to Article
        7471 to  the same effect.

      Pursuant to this recommendation amendments were introduced into the Texas Legislature to modify
the  statutory language. The  amendments did  not pass  during the  1967 legislative  session,  but  the
proponents were successful during the 1969 term. Article 7468 was changed to include the language "or for
any  other beneficial use"  and  a subsection (8) was added to article 7471 providing for "other beneficial
uses." The Texas Water Rights Commission would  now appear to  have the necessary authority to make
dilution water a  beneficial use under state law.

Water Rights as Appurtenances  to Land

      The statutory language suggests that all water rights are appurtenant to land.

        The permanent  water  right shall be an easement to the land and  pass with the title
        thereto;...68

Some modification of this position may be necessary to  implement the use of water for dilution if this use
is given acceptance as a beneficial use.

Control of Dilution Water

      The banks and beds of any flowing natural stream are available for conveying water from the place of
storage to the place of use. The language would seem to provide  protection  for low-flow augmentation if
the latter were deemed a beneficial use under state statute.

             For the purpose of conveying and delivering storm, flood or rain water from the place
        of storage to the place of use as provided  in  the  preceding Article, or of conveying and
        delivering the same to the diversion plant of the  appropriator thereof, it shall be lawful for
        any person, association  of persons, corporation, water improvement or irrigation district, to
        use the  banks and beds of any flowing natural stream within this State, under and in
        accordance  with such rules and  regulations... for such purpose. No  person, association of
        persons,  corporation, water  improvement or irrigation district who  has not acquired  the
        riqht to the use of such conserved or stored waters, as provided in the last preceding Article
                                                                    RQ
        or the right to appropriate the same shall take, use or divert same.03

                                               Utah

Water Quality Storage as a Beneficial Use

      In 1943 the Supreme  Court of Utah reiterated  the  beneficial use doctrine as a  part of Utah state
                                                   219

-------
law.7u" This common  law doctrine was codified into law  in  1953.71 Courts have now expanded the
beneficial use to include the requirement of reasonableness.

       '...[A]  prior appropriator does not have an unlimited right to the use of water, but is subject
       to a reasonable limitation  of his rights for the benefit of junior appropriators. That it is
       necessary and  proper to  limit prior appropriators to the volume of water  reasonably
       required to raise crops under reasonably sufficient methods for applying water to the land.
       That beneficial use is the basis and the measure and the limit to the use of water and water
       used in  excess of the amount reasonably necessary to produce crops  is not beneficially
       used.'72

The question as to what constitutes beneficial use has been considered in a number of cases. The court, in
an early case, indicated several water uses to be beneficial.

       The appropriation, intention of the appropriator, use, and beneficial purpose are the tests
       which  determine the  rights acquired  by the diversion of a stream.  This is so under  the
       statutes, and the use  may be for domestic purposes, irrigating  lands,  propelling machinery
       and the like; that is, the water may be applied to any useful purpose.7^

Another example of a specific holding on what constituted a beneficial use is a 1946 case.

       The only manner in which water can be appropriated is by being placed to a beneficial use.
       The use of water for the precipitation of salt is such a beneficial  use,...'^

Neither the statutes nor the case holdings indicate the criteria for determining what constitutes beneficial
use and thus offer little guide as to whether water quality storage would be considered beneficial.

      The state policy on pollution appears  broad enough to  include dilution water within its scope.

            Whereas the  pollution of the waters of this state constitutes a  menace to public health
       and welfare,  creates public  nuisance,... and whereas such pollution is contrary to the best
       interests of the state..., it is hereby  declared to be the public policy  of this state to conserve
       the waters of the state and  to protect, maintain and  improve the quality thereof for public
       water supplies, for the propogation of wildlife...and other legitimate  beneficial uses;... and
       to cooperate with...the federal government in carrying out these objectives.7^

The use of the phrases "improve  the quality",  "other legitimate beneficial uses", and  "to cooperate
with...the federal government" suggest that it  would not take a strained interpretation  of the language to
place  storage for water quality purposes within the policy declaration of the state.


Water Rights as Appurtenances to Land

      The  statutory  evidence indicates that some water rights are considered appurtenant to land, for
conveyancing purposes but they can also be transferred separately from the  land.

            A right to the use of  water appurtenant to land shall pass to the grantee of such land,
       and in cases  where such right has  been exercised in irrigating different parcels of  land at
       different times, such  right shall pass to the grantee of any parcel of  land of which such right
       was exercised next proceeding the time of the execution of any  conveyance thereof; subject,
       however,  in all cases  to  payment  by the grantee in any such conveyance  of all amounts
                                                   220

-------
       unpaid on any assessment then due upon any such right; provided that any such right to the
       use of water, or any part thereof, may be reserved by the grantor, in any such conveyance
       by making such  reservation  in express terms in such conveyance, or it may be separately
       conveyed. "

Control of Dilution Water

      The commingling of water without the forfeiture of the property interest in the water is permitted by
statute.

             Upon application  in writing  and approval of the  state engineer,  any appropriated
       water may for the purpose of preventing waste and facilitating distribution be turned from
       the channel  of any  stream  or any  lake or other body of water, into  the channel of any
       natural stream of natural body of water or into a reservoir constructed across the bed of any
       natural stream, and commingled with its waters, and a like quantity less the quantity lost by
       evaporation and seepage may be taken out, either above or below the point where emptied
       into the stream, body of water or reservoir,..?"?

      An early case decided that the burden  of proving ownership of the water commingled and  the absence
of injury to a third person is on the person commingling the water.

       The defendant corporation having, without the consent of the plaintiff, suffered the water
       from said tunnels to flow into the natural channel of Butterfield Creek and commingle with
       the waters of the stream previously  appropriated by plaintiff, it assumed the burden, when
       it afterwards claimed the right  to  divert any portion  of the mingled  water, of clearly
       showing the quantity owned by it, and that such diversion  does not diminish the quantity of
       water  previously appropriated by the  plaintiff; and,  if the  conditions are such after the
       commingling of the water that that fact cannot be established, then the defendants must
       lose all right to divert any of the water flowing in the natural channel in said creek, for it is
       an elementary principle, firmly established, that one who, without consent, intentionally
       confounds his  property with the property of a stranger, though they be of the same kind,
       will lose the whole, unless he can prove the true quantity belonging to himself.'°
                                             Washington

Water Quality Storage as a Beneficial Use

      Beneficial use is recognized by statute but not in the typical form found in other western states.

       A strong beneficial use requirement as a condition precedent to the continued ownership of
       a right to withdraw or divert water is essential to the orderly development of the state,,
                                                                                          79
Certain uses are set out by statute to be beneficial although the language does not preclude other use. There
appear to be no guide lines as to the policy of the state on whether water quality would be beneficial.

             (2)  'Beneficial  use' shall  include, but  not be limited  to, domestic water supplies,
        irrigation, fish, shellfish, game and other aquatic life, municipal, recreation, industrial water
        generation of electric power, and navigation.^
                                                    221

-------
Water Rights as Appurtenances to Land

      A general  intent of the state legislation is to make water rights freely transferable. This transferability
would appear to entail severance from the land.

             Water rights will gain sufficient certainty of ownership as a result of this chapter to
       become more freely transferable, thereby increasing the economic value of the uses to which
                                                                O "\
       they are put, and augmenting the  alienability of titles to land.0'

Control of Dilution Water

      The statutory language contemplates the use of streams as conduits for the conveyance of water from
one point  to another, but it would appear to afford protection to water released  by the Government for
dilution purposes.

             Any person may convey any water which he may have a right to use along any of the
       natural  streams or lakes of this state, but not so as to raise the water thereof above ordinary
       highwater  mark,  without making just compensation  to  persons injured thereby; but due
       allowance  shall be made for evaporation and seepage, the amount  of such seepage to be
       determined by  the  supervisor of water  resources,  upon  the application  of  any person
       interested.°2

                                             Wyoming

Water Quality Storage as a Beneficial  Use

      Beneficial  use, as in most western states, is the measure of the water right in Wyoming.0-* Neither the
statutes nor the cases  give any indication as to whether storage  for water quality  purposes  is likely to be
considered a beneficial  use. Broad  powers are given  to  control  pollution. Thus the status of low-flow
augmentation is unresolved.
Water Rights as Appurtenances to Land

      Reservoir water rights are not attached to land since passage of a-1921 statute.

            The reservoir water and rights acquired under reservoir permits and adjudications shall
       not attach to arty particular lands except by deed,...and such water and water rights, except
       when attached to particular lands as aforesaid, may be sold, leased, transferred and used in
       such manner and upon such lands as the owner of such rights or partial right may desire,
       provided, that such water must be used for beneficial purposes.^4

     The annotations  point  out that before this section was passed, all water rights, including reservoir
rights,  were attached to  land and could not be severed therefrom. This section allows such severance for
reservoir rights, but others water rights, presumably,  are still  attached  to land. This exception would
facilitate storage of water for quality purposes.

Control of Dilution Water

     Statutory law provides  the procedure whereby  a natural channel can be used to convey stored water.
                                                   222

-------
Whenever the owner, manager or lessee of a reservoir, constructed under the provisions of
this act...shall desire the use of the bed of the stream, or other water course, for the purpose
of carrying stored or impounded water from the reservoir to the consumer thereof, or shall
desire the use of any ditch to carry, convey or transmit through the same any such stored or
impounded water for the benefit of any person having the right to  have such reservoir water
carried, conveyed or transmitted through the same under the laws of this state, he shall, in
writing notify the water commissioner of the district in which such stored or impounded
water is to be used... It shall  then be the duty of such water commissioner to so adjust the
headgates of  all ditches of  ditch companies  or appropriators from the stream or water
course, and the division boxes of individual  consumers of water, not entitled to the use of
such stored water,  as will  enable those having the right to secure the volume of water to
which they are entitled;...  °
                                             223

-------
                                         FOOTNOTES

 1.   Ariz. Rev. Stat. Ann, sec. 45-101B (1956); Salt River Valley Water Users' Ass'n v. Kovacovich, 3 Ariz.
     App.28, 411 P. 2d 201, 203 (1966).

 2.   Ariz. Rev. Stat. Ann, sec. 45-141 (Supp. 1969).

 3.   Slosser v. Salt River Valley Canal Co., 7 Ariz. 376, 65 P. 332, 339 (1901). See also Gould v. Maricopa
     Canal Co., 8 Ariz. 429, 76  P. 598  (1904); Brockman v. Grand Canal Co., 8 Ariz. 451, 76 P. 602
     (1904);Tattersfield v. Putman, 45 Ariz. 156,41 P. 2d. 228 (1935); Olsen v. Union Canal & Irrigation
     Co., 58 Ariz. 306, 119, P. 2d. 569 (1941).

 4.   Gillespie Land & Irrigation Co. v. Buckeye Irrigation Co., 75 Ariz. 377, 257 P. 2d 393, 398 (1953).

 5.   Ariz. Rev. Stat. sec. 45-173 (1956).

 6.   3Cal.2d.489, 45 P.  2d 972 (1935).

 7.   ]d. at 1007.

 8.   Cal. Water Code sec.  1243 (West Supp. 1968).

 9.   Cal. Water Code sec.  12200-12205 (West Supp. 1968).

10.   City and County of San Francisco v. Alameda Co., 5 Cal. 2d 243, 54 P. 2d 462,464 (1936).

11.   Cal. Water Code sec.  7075 (West 1956).

12.   Board of County Comm'ss v. Rocky Mt. Water Co.. 79 P. 2d. 373, 377 (1939).

13.   36 U. Colo. L. Rev. 413,415 n. 13 (1964).

14.   93 C.J.S. Water sec. 177 (1956).

15.   Board of County Comm'ss v. Rocky Mt. Water Co., 102 Colo. 351, 79 P. 2d. 373,377 (1939).

16.   Colo. Rev. Stat. Ann, sec. 148-5-2 (1963).

17.   Kan. Stat. Ann, sec. 82a-927 (Supp. 1968).

18.   Kan. Stat. Ann, sec. 82a-928 (Supp. 1968).

19.   Kan. Stat. Ann, sec. 82a-701(g) (Supp. 1964).

20.   Kan. Stat. Ann, sec. 82a-706(b) (Supp. 1968).

21.   Idaho Code Ann, sec. 42-104 (1948).

22.   Idaho Code Ann, sec. 42-111 (1948).
                                                 224

-------
23.   Idaho Code Ann, sec. 42-1501 (1948). Repealed (Supp. 1969) No apparent substitute.

24.   Idaho Code Ann, sec. 42-1734 (c) (iv) (Supp. 1969).

25.   Idaho Code Ann: sec. 42-101 (1948).

26.   Idaho Code Ann, sec. 42-105 (1948).

27.   Idaho Code Ann, sec. 42-801 (1948).

28.   Mont. Rev. Codes Ann. sec. 89-802 (1947).

29.   Osnes Livestock Co. v. Warren, 103 Mont. 284, 62 P. 2d. 206, 210 (1936).

30.   Mont. Rev. Codes Ann, sec. 89-804 (1947).

31.   Neb. Rev. Stat. sec.  46-204 (1968);  Enterprise Irr. Dist. v. Willis, 135 Neb. 827, 284 N.W. 326, 327
      (1939).

32.   Neb. Rev. Stat. sec. 71-3001 (Cum. Supp. 1967).

33.   Id., sec. 71-3004 (Cum. Supp. 1967).

34.  -State v.  Nielsen, 163 Neb. 372, 79 N.W. 2d 721, 728 (1956).

35.   Neb. Rev. Stat. sec. 46-252  (1968).

36.   Nev. Rev. Stat. sec. 533.035 (1967).

37.   Barnes v. Sabron, 10 Nev. 217, 243-44 (1875).

38.   Nev. Rev. Stat. sec. 533.060 (1967).

39.   Nev. Rev. Stat. sec. 533.040 (1967).

40.   Nev. Rev. Stat. sec. 533.055 (1967).

41.   Implementation and Enforcement Plan for Water Quality Control adopted by New Mexico Water
      Control Commission; June 20, 1967 at p. 53.

42.   N.M. Stat. Ann. 75-5-22 (1953).

43.   N.M. Stat. Ann. 75-5-24 (1953).

44.   N.D. Cent. Code sec. 61-01-02 (Supp. 1969).

45..   N/plkman v. City of Crosby. 120 N.W. 2d 18 (N.D. 1963).

46.   N.D. Cent. Code sec. 61-01-01.1 (Supp. 1969).


                                               225

-------
47.  N.D. Cent. Code sec. 61-01-02 (1960).

48.  N.D. Cent. Code sec. 61-04-15 (Supp. 1969).

49.  N.D. Cent. Code sec. 61-01-05 (1960).

50.  Okla. Stat. Ann, tit. 82, sec. 1-A (Supp. 1969).

51.  Rules, Regulations and Modes of Procedure of  the Oklahoma Water  Resources Board, ch. 1, sec.
     115.1(3) (Supp. 1964).

52.  Okla. Sess. Laws 439 (1968).

53.  Okla. Stat. Ann, tit. 82, sec. 1351 (Supp. 1969).

54.  Okla. Stat. Ann, tit. 82, sec. 34 (1952).

55.  Okla. Stat. Ann, tit. 82, sec. 3 (1952).

56.  In Re Water Rights of Deschutes River,  148 Ore. 389, 36 P. 2d 585, 587 (1934).

57.  Ore. Rev. Stat. sec. 449.077 (1967).

58.  Haney v. Neace-Stark Co.. 109 Ore. 93, 216 P. 757, 764 (1923)

59.  Id.

60.  Ore. Rev. Stat. sec. 540.410 (1963).

61.  S.D. Code sec. 46-1-4 (1967).

62.  S.D. Code sec.46-1-6(6) (1967).

63.  S.D. Code sec. 46-5-34 (1967).

64.  S.D. Code sec. 46-5-14 (1967).

65.  Tex. Rev. Civ. Stat. art. 7467 (1954).

66.  Tex. Rev. Civ. Stat. art. 7492 (1954).

67.  Tex. Rev. Ciy^Stat art. 7468, 7470 and 7471 (1954).


68.  Tex. Rev. Civ. Stat. art. 7559 (1954).

69.  Tex. Rev. Civ. Stat. art. 7548 (1954).

70.  Sigurd City, v. State, 105 Utah 278, 142 P. 2d 154, 157 (1943).
                                                 226

-------
71.  Utah Code Ann^sec. 73-1-3 (1953).

72.  Jr^ge Water Rights of Escalante Valley Drainage Area, 10 Utah 2d 77, 348 P. 2d 679, 682 (1960).

73.  Hague v. Nephi Irrigation Co., 16 Utah 421, 52 P. 765, 767 (1898).

74.  Desert Livestock Co. v. State, 110 Utah 239, 171 P. 2d 401, 403 (1946).

75.  Utah Code Ann, sec. 73-14-1 (1953).

76.  Utah Code Ann, sec. 73-1-11 (1953).

77.  Utah Code Ann, sec. 73-3-20 (1953).

78.  Herriman Irrigation Co. v. Butterfield Mining Co., 19 Utah 453, 57 P. 537, 540 (1899).

79   Wash  Rey^Code sec. 90.14.020 (3) (Supp. 1968).

80.  Wash. Rev. Code sec. 90. 14.031 (Supp. 1969).

81.  Wash  Rev. Code sec. 90.14.020(7) (Supp. 1968).

82.  Wash. Rev. Code sec. 90.03.030 (Supp. 1961).

83.  Lincoln Land Co. v. Davis, 27 F. Supp. 1006, 1008 (D. C. Wyo. 1939); Wyo. Stat. Ann, sec. 41-47
     (1957).

84.  Wyo.  Stat. Ann, sec. 41-37 (1957).

85.  Wyo.  Stat. Ann. sec. 41-29 (1957).
                                                227

-------
                                       APPENDIX V
                       STATUTES RELATING TO THE RECLAMATION
                               LAW OF THE UNITED STATES*
 32 Stat. 388, Ch. 1093(1902)

 33Stat. 714, Ch. 567 (1905)

 33 Stat. 1032, Ch. 1459 (1905)

 34 Stat. 116, Ch. 1631 (1906)

 34 Stat. 259, Ch. 3288 (1906)

 34 Stat. 519, Ch. 3559 (1906)

 36 Stat. 835, Ch. 407 (1910)

 36 Stat. 895, Ch. 32 (1911)

'36 Stat. 925, Ch. 141 (1911)

 37 Stat. 265, Ch. 278(1912)

 38 Stat. 686, Ch. 247 (1914)

 38 Stat. 727, Ch. 316 (1914)

 38 Stat. 822, Ch. 75 (1915)

 40 Stat. 105, Ch. 27 (1917)

 41 Stat. 163, Ch. 24(1919)

 41 Stat. 451, Ch. 86 (1920)

 41 Stat. 605, Ch. 192(1920)

 43 Stat. 116, Ch. 150(1924)

 43 Stat. 672, Ch. 4 (1924)

 45 Stat. 1057, Ch. 42 (1928)

 45 Stat. 1522, Ch. 541 (1929)

 46 Stat. 367, Ch. 292(1930)

 46 Stat. 1421, Ch. 307 (1931)
                                             228

-------
 48Stat. 401, Ch. 55(1934)





49 Stat. 1570, Ch. 688 (1936)




50 Stat. 844, Ch. 832 (1937)




50 Stat. 869, Ch. 870 (1937)




52 Stat. 291, Ch. 187 (1938)




53 Stat. 1187, Ch. 418(1939)




53 Stat. 1418, Ch. 717 (1939)




54 Stat. 49, Ch. 51 (1940)




54 Stat. 155, Ch. 132 (1940)




54 Stat. 402, Ch. 390 (1940)




54 Stat. 1178, Ch. 888 (1940)




54 Stat. 1219, Ch. 922 (1940)




57 Stat. 14, Ch.  14 (1943)




62 Stat. 725, Ch. 651 (1944)




58 Stat. 879, Ch. 665 (1944)




59 Stat 10, Ch.  19 (1945)




60 Stat. 641, Ch. 596 (1946)




60 Stat. 1080, Ch. 965 (1946)




63 Stat. 722, Ch. 630 (1949)




63 Stat. 724, Ch. 650 (1949)




64 Stat. 39, Ch. 78 (1950)




64 Stat. 595, Ch. 896 (1950)




64 Stat. 1124, Ch. 1183(1950)




66 Stat. 282, P.L. 415 (1952)




66 Stat. 325, P. 1.444(1952)




66 Stat. 549, P.L. 495 (1952)
                                              229

-------
67Stat. 566, P.L. 258(1953)




68Stat. 568, P.L. 540(1954}




68Stat. 666, P.L. 566(1954)




68Stat. 752, P.L. 606(1954)




68Stat. 890, P.L. 683(1954)




68Stat. 1190, P.L. 774(1954)




69Stat. 244, P.L. 130(1955)




69Stat. 354, P.L. 163(1955)




70Stat. 28, P.L. 419 (1956)




70 Stat. 105, P.L. 485 (1956)




70Stat. 155, P.L. 520(1956)




70 Stat. 247, P.L. 575(1956)




70 Stat. 483, P.L. 643 (1956)




70 Stat. 524, P.L. 690(1956)




70 Stat. 775, P.L. 858(1956)




70 Stat. 1044, P.L. 984 (1956)




70 Stat. 1058, P.L. 992(1956)




70 Stat. 1059, P.L. 993 (1956)




71 Stat. 48, P.L. 85-47(1957)




71 Stat. 372, P.L. 85-152 (1957)




71 Stat. 590, P.L. 85-264 (1957)




71 Stat. 608, P.L. 85-283 (1957)




72 Stat. 82, P.L. 85-370 (1958)




72 Stat. 297, P.L. 85-500 (1958)




72 Stat. 542, P.L. 85-611 (1958)





72 Stat. 563, P.L. 85-624 (1958)
                                                230

-------
 72 Stat. 963, P.L. 85-797 (1958)




 73 Stat. 641, P.L. 86-357 (1959)




 74 Stat. 156, P.L. 86-488 (1960)




 74 Stat. 225, P.L. 86-529 (1960)




 74 Stat. 411, P.L. 86-624 (1960)




 74 Stat. 732, P.L. 86-648 (1960)




 74 Stat. 882, P.L. 86-745 (1960)




 75 Stat. 204, P.L. 87-88 (1961)




 76 Stat. 96,  P.L. 87-483 (1962)




 76 Stat. 389, P.L. 87-590 (1962)




 76 Stat. 395, P.L. 87-594 (1962)




 76 Stat. 407, P.L. 87-612 (1962)




 76 Stat. 634, P.L. 87-706 (1962)




 76 Stat. 1173, P.L. 87-874 (1962)




 77 Stat. 49, P.L. 88-29 (1963)




 77 Stat. 68, P.L. 88-44(1963)




 77 Stat. 249, P.L. 88-140 (1963)




 78 Stat. 156, P.L. 88-278 (1964)




 78 Stat. 744, P.L. 88-536 (1964)




 78 Stat. 808, P.L. 88-561  (1964)




 78 Stat. 848,  P.L. 88-565 (1964)




 78 Stat. 897, P.L. 88-578 (1964)




78 Stat. 925, P.L. 88-583 (1964)




78 Stat. 955,  P.L. 88-599 (1964)





 79 Stat. 213, P.L. 89-72 (1965)




 79 Stat. 244,  P.L. 89-80 (1965)
                                                231

-------
79 Stat. 902, P.L. 89-232 (1965)




80 Stat. 376, P.L. 89-553 (1966)
 *This is a partial listing only, and it does not purport in any manner to be all inclusive.
                                                     232

-------
                                           APPENDIX VI


                           TITLE III - PUBLIC LAW 85-500 - JULY 3,1958

                                    TITLE III - WATER SUPPLY

      SEC. 301.  (a)  It is hereby declared to  be  the policy of the  Congress to  recognize the primary
responsibilities of the States and  local interests in developing water supplies for domestic,  municipal,
industrial, and other purposes and that the Federal Government should participate and cooperate with
States and  local  interests  in  developing such water supplies  in  connection with  the construction,
maintenance, and operation of Federal navigation, flood control, irrigation, or multiple purpose projects.

      (b)  In carrying out the policy set forth in  this section, it  is hereby provided that storage may be
included  in any reservoir  project  surveyed, planned,  constructed or to  be planned, surveyed and/or
constructed by the  Corps of Engineers or the  Bureau of Reclamation to impound water for  present or
anticipated future demand or need for municipal or industrial water, and the reasonable value thereof may
be taken  into account in  estimating the economic value of the entire project: Provided,  That before
construction or modification of any project including water supply provisions is initiated, State or local
interests shall  agree to pay for the cost of such  provisions on the  basis that all authorized purposes served
by the project shall  share equitably  in the benefits of multiple purpose construction as determined by the
Secretary  of the Army or the Secretary of the Interior as the case may be:  Provided further, That not to
exceed  30 per centum  of the total estimated cost of any project may be allocated to anticipated future
demands where States or local  interests give reasonable assurances that they will contract for  the use of
storage  for anticipated  future demands within  a period of time which will permit paying out the costs
allocated to water supply within the life of the  project: And provided further, That the entire  amount of
the construction costs, including interest  during construction, allocated to water  supply shall  be repaid
within the life of the project but  in no event to exceed fifty years after the project is first used for the
storage  of water for water supply  purposes, except that (1) no payment need be made with  respect to
storage  for future water supply  until such  supply is first used, and (2)  no interest shall be charged on such
cost until  such  supply  is first used, but  in no  case shall  the interest-free period exceed ten years. The
interest rate used for purposes of computing interest during construction and  interest on the unpaid balance
shall  be determined  by the Secretary of  the Treasury, as of the beginning  of the fiscal year in which
construction is initiated, on the basis of the computed average interest rate  payable by the Treasury upon
its outstanding marketable public obligations, which are neither due nor callable for redemption  for fifteen
years from date  of issue. The provisions of this  subsection insofar as they relate to the  Bureau  of
Reclamation and the Secretary of the Interior shall be alternative to and not a substitute for the provisions
of the Reclamation Projects Act of 1939 (53 Stat. 1187) relating to the  same subject.


      (c) The  provisions of this section shall not be construed to modify the provisions of section 1 and
section  8  of the Flood Control  Act of  1944 (58 Stat. 887), as amended and extended, or the provisions of
section  8 of the Reclamation Act of 1902 (32 Stat. 390).

      (d)  Modifications of a reservoir project heretofore authorized, surveyed, planned, or constructed to
include storage as provided  in subsection  (b), which would seriously affect  the purposes for  which the
project  was authorized, surveyed,  planned, or constructed, or which would  involve major structural or
operational changes shall be made only upon the approval of Congress as now provided by law.

      SEC. 302. Title III of this Act may be cited as the "Water Supply Act of 1958".
                                                  233

-------
                                      ACKNOWLEDGMENT

     The authors gratefully acknowledge the financial support of the Federal Water Pollution  Control
Administration which made this research possible. A special thanks to Mr. Theodore Rogowski, Solicitor
for the Department of Interior, and his staff who reviewed the final draft of the report and made helpful
suggestions.

     Mr. Wayne Bell and Mr. Michael  Colo, Washington and Lee law students, were most diligent in their
research assignments. Several other students at the law school made contributions to the research effort.

     No manuscript becames a reality without the willing assistance of a clerical staff in repeated cycles of
typing,  proofing, and retyping. Mrs.  Ruth Hickman,  Mrs. Priscilla Dawson,  and  Mrs. Nancy  Cardwell
exercised saintly amounts of patience throughout the development of this report.
                                                     William R. Walker, Director
                                                     Water Resources Research Center
                                                     Virginia Polytechnic Institute and State University

                                                     William E. Cox, Assistant Professor
                                                     Department of Engineering Technology
                                                     Virginia Commonwealth University
                                                    235

-------