State ex rel. State Engineer v. San Juan Agricultural Water Users Ass'
State ex rel. State Engineer v. San Juan Agricultural Water Users Ass'
Opinion
Factual and Procedural Background
*727
{1} In 1849, after years of intermittent warfare, the United States entered into a peace treaty with the Navajo Tribe (Navajo Nation).
See Treaty With the Navaho
, September 9, 1849,
{2} The Colorado River drains the Colorado Plateau through the Grand Canyon. The San Juan River is the tributary of the Colorado River upon which the Four Corners region 1 relies for surface water and is the largest river in New Mexico. The aboriginal lands of the Navajo Nation originally included the entire San Juan Basin. Navajo Tribe of Indians v. United States of America , 23 Ind. Cl. Comm. 244, 251 (1970). The San Juan still runs through a considerable portion of the Navajo Nation and is a water source much coveted in this arid portion of the country.
{3} In light of the Navajo Nation's potential claim for the majority of water in the San *728 Juan River Basin, the State of New Mexico initiated a general stream adjudication to determine the water rights of the major claimants. The United States asserted claims as trustee for the Navajo Nation, and the Navajo Nation intervened on its own behalf. Following years of litigation, the State entered into settlement negotiations with the Navajo Nation and the United States. The State proposed a blueprint for a settlement and held public meetings in Farmington and Bloomfield seeking input from the non-Indian water users. In response to substantial public input, the State revised its settlement proposals.
{4} In 2005, following more than a decade of negotiation, the Navajo Nation, the United States, and the State of New Mexico (collectively, Settling Parties) reached an agreement (the Settlement Agreement) settling the Navajo Nation's claims to water in the San Juan River Basin (the Basin). Federal legislation to approve and implement the Settlement Agreement was enacted by Congress in 2009 under the Omnibus Public Land Management Act of 2009, Northwestern New Mexico Rural Water Projects Act, Pub. L. No. 111-11, § 10301,
{5} At the initiation of the proceedings, the district court imposed an unusually stringent evidentiary burden on the Settling Parties to prove the Settlement Agreement was fair, adequate, reasonable, and in the public interest. 2 After giving all other water rights claimants in the Basin notice and opportunity to participate and to conduct discovery and file dispositive motions in accordance with Rule 1-071.2 NMRA, the district court entered its order granting the settlement motion for entry of partial final decrees describing the water rights of the Navajo Nation. The court then entered the partial final judgment and decree of the water rights of the Navajo Nation and the supplemental partial final judgment and decree of the water rights of the Navajo Nation (Proposed Decrees). The non-settling parties objected to several terms of the Settlement Agreement and to the inter se procedures adopted by the district court. After full briefing and argument, the district court rejected the objections and issued its order approving the *729 Settlement Agreement and Proposed Decrees (the Settlement Order). 3 In the Settlement Order, the district court concluded that the Settlement Agreement was fair, adequate, reasonable, and consistent with the public interest as well as all applicable laws.
{6} Appellants herein, the San Juan Acequias, are non-settling parties to the underlying proceedings that preceded the Settlement Agreement. Despite having virtually all issues in common with other non-settling parties, each has consistently refused to consolidate their appeals, failed to comply with filing deadlines, and neglected to follow rules of procedure or standard practice. Therefore, it will be necessary to address their claims in separate opinions. The San Juan Acequias challenge more than fifty aspects of the district court's conclusions. However, since this Court finds essentially all of these are based on faulty factual and/or legal premises, we will dispose of them categorically rather than attempt to answer each challenge separately.
Standard of Review
{7} " 'It is the policy of the law and of the State of New Mexico to favor settlement agreements.' "
Am. Civil Liberties Union of N.M. v. Duran
,
I. New Mexico Statutes Refute Appellants' Claim That the Settlement Required the Express Approval of the New Mexico Legislature and Any Such Claim Should Have Been Raised by Writ
{8} Appellants maintain that the Settlement is void under New Mexico law without the express prior approval of the New Mexico Legislature. Initially it must be noted Appellants' brief in chief fails to include any indication of how this issue (and indeed most others) was presented to the district court. This violation of Rule 12-318(A)(4) NMRA makes this Court's job much more difficult.
See
State v. Gomez
,
{9} Appellants recite several iterations of the theme that the Settlement was unauthorized or in violation of New Mexico law. For example, Appellants argue inter alia that the Settlement violates the New Mexico Constitution's separation of powers. This is based on the premise that Governor Richardson lacked the power to sign the Settlement without prior legislative approval. They further contend that through the Settlement, Governor Richardson attempted to infringe the plenary jurisdiction of the New Mexico Courts under Article VI of the New Mexico Constitution.
{10} This contention, like Appellants' entire appeal, is based on a failure to understand the nature of the relationship between Indian nations and the United States government as well as the structure of federalism. It is compounded by a misconception of New Mexico water law procedure and the role of the New Mexico State Engineer. We explain.
{11} First, water is a commodity that can move in interstate commerce, and
*730
does so as the San Juan River crosses several state boundaries. Thus, it is ultimately subject to the control of the federal, not the state, government.
See
Oneida Indian Nation v. Cty. of Oneida
,
{12} Second, the creation of an Indian reservation generally involves the reduction and definition of a tribe's traditional homelands in return for a guarantee of permanent and protected territory.
See
Winters v. United States
,
{13} Third, intergovernmental agreements are particularly useful because they provide benefits beyond what "ordinary state regulation" allows. New Mexico's entry into the congressionally sanctioned intergovernmental agreement as part of the Settlement involved herein reinforces federal preemption of state control over the Navajo Nation's portion of the waters of the San Juan. The Settlement Agreement at issue herein expressly states, "Congress approves, ratifies, and confirms the Settlement." Such a congressionally approved settlement preempts the law of the participating states.
Cf.
Texas v. New Mexico
,
{14} Against this backdrop, the Settlement Agreement interpreted by the district court herein was approved by Congress well prior to Appellants' state law challenges, and thus, federal preemption disposes of many of their arguments, to wit: (1) the Settlement is a nullity because it was not approved by the New Mexico Legislature; (2) the Interstate Stream Commission violated NMSA 1978, Section 72-14-3 (1935), in failing to submit the Settlement to the New Mexico Legislature; and (3) the Settlement violates NMSA 1978, Section 72-1-11(C)(1) (2005) by not addressing all of the Navajo Nation's water needs.
See
W. Va. ex rel. Dyer v. Sims
,
{15} Even under New Mexico rather than federal law, then, Appellants are incorrect in their premise that the Legislature was required to approve the Settlement. However, assuming any of these state law arguments had merit, they should have been tested before the United States Congress stamped its imprimatur on the Settlement by adopting it into federal law. To the extent Appellants' state law arguments had merit, they should have been brought to the attention of the New Mexico Supreme Court by a writ of mandamus and are no longer ripe for adjudication.
See
State ex rel. Clark v. Johnson
,
II. State Law Limitations Do Not Control Navajo Water
A. Indian Tribes Are Not Required to Prove Immediate Beneficial Use to Quantify Their Water Rights
{16} Appellants argue "[b]eneficial use is also an essential and explicit requirement of state law, including Article XVI of the New Mexico Constitution, ratified by Congress in 1911." As noted earlier, New Mexico state law does not control Navajo water allocations. We reiterate that to the extent Appellants are attempting to apply New Mexico water limitations in this instance, federal law has expressly pre-empted such state limitations. If Defendants are arguing the New Mexico Constitution controls the Settlement since Congress approved the Constitution in 1911, this is also incorrect. The Settlement Agreement was approved by Congress in 2009 and was intended by Congress to allocate Navajo water and is thus much more specific than the New Mexico Constitution, which makes no mention of the water allocated to the Navajo Reservation in 1868. Specific and later-enacted statutes control over general, earlier-enacted laws.
See
Morton v. Mancari
,
{17} Apparently recognizing the invalidity of their state law arguments, Appellants further maintain that "[b]eneficial use is an essential requirement of every federal law governing the allocation of water in the arid West, including Winters and subsequent cases." Winters , to which Appellants refer, is indeed an early polestar in recognizing reservation water rights. However, as will become clear, it does not require immediate "beneficial use" as the only measure of Indian water rights. Professor Tarlock succinctly outlines the properly applicable legal principle for the allocation of reservation water:
Indian water rights are proprietary rights. Reserved water rights ... have a priority date, the date of the creation of the reservation, but they are not dependent on the application of water to beneficial use.
*732 Tarlock, supra , § 9:38. 5
{18} Appellants attempt to bolster their interpretation of "beneficial use" as requiring immediate use by relying on inapplicable federal statutes such as the Reclamation Act of 1902,
{19} Appellants are also off base in attempting to graft language from the New Mexico Supreme Court regarding the Pueblo Water Rights doctrine onto the
Winters
doctrine. The Pueblo Water Rights doctrine derives from Spanish and Mexican property law-a unique source having no relationship to
Winters
.
State ex rel.Reynolds v. Aamodt
,
{20} Appellants are closer to the way the "beneficial use" concept has occasionally been referenced in the reservation context in their invocation of the Colorado River Compact. That Compact specifically acknowledges that its purpose is "to establish the relative importance of different beneficial uses of water." Moreover, that Compact expressly contemplated future uses beyond those existing in 1922. See NMSA 1978, § 72-15-5 (art. I) (1923). 7 Thus Compact water was not seen as frozen in time and can clearly be used at various times for various uses. That indeed is exactly how the district court properly employed the concept of "beneficial use" herein:
[b]eneficial use shall be the limit of the rights to use water adjudicated to the Navajo Nation by this Decree. The Navajo Nation shall not be entitled to receive, nor the United States or the State of New Mexico be required to deliver, nor shall non-Navajo water users be required to curtail water uses to provide to the Navajo Nation any water not then necessary for beneficial use under the rights adjudicated herein or acquired hereafter.
{21} Additionally, the Colorado Compact explicitly provides that nothing in the Compact shall be construed as affecting the obligations of the United States of America to Indian tribes.
See
§ 72-15-5 (art. VII); NMSA 1978, § 72-15-26 (art. XIX) (1949). The Settlement herein, as a specific and later-enacted statute, should thus be given precedence over a more general earlier statute.
See
Morton
,
*733
{22} Appellants lastly dovetail their Colorado River Compact argument with reliance on the Colorado River Storage Project, which recites one of its purposes as "storing water for beneficial consumptive use."
B. The District Court Properly Applied the Winters Doctrine and the Practicably Irrigable Acreage (PIA) Standard to Measure the Water Reserved to the Navajo Nation Under the Settlement Agreement
{23} In
Winters
, the Gros Ventre Tribes in Montana, like the Navajos, had ceded the vast majority of their ancestral land by treaty to the United States in return for a permanent reservation.
The Indians had command of the lands and the waters,-command of all their beneficial use, whether kept for hunting, and grazing roving herds of stock, or turned to agriculture and the arts of civilization. Did they give up all this? Did they reduce the area of their occupation and give up the waters which made it valuable or adequate? And, even regarding the allegation of the answer as true, that there are springs and streams on the reservation flowing about 2,900 inches of water, the inquiries are pertinent. If it were possible to believe affirmative answers, we might also believe that the Indians were awed by the power of the government or deceived by its negotiators. Neither view is possible.
{24} While the
Winters
case established a legal foundation that stood for the proposition that upriver use that deprived agricultural Indian reservations of available water was not consistent with treaties that established such reservations in the first instance, lower courts have grappled with how to calculate the water necessary to fulfill the needs and goals of other reservations.
Compare
Conrad Inv. Co. v. United States
,
{25} Determining how to calculate PIA and what it means in less agricultural situations
*734
has required judicial resourcefulness.
See
Walker River Irrigation Dist
.,
{26} Current jurisprudence thus tends to recognize the goal of the federal government in creating Indian reservations was not to produce more farmers or shepherds but "to make the reservation livable" and "to further[ ] and advance[ ] the civilization," allowing the Indians to change to new ways of life.
Arizona
,
{27} In line with current judicial analysis, the district court herein recognized the fundamental purpose of the Navajo Reservation was to create a sustainable homeland for the tribe. Other than frequently repeating the PIA mantra, Appellants have offered no evidence or supportive authority to contradict the district court's finding. Indeed the only evidence to which this Court was directed by Appellants is consistent with that finding.
See
Treaty of 1868 art. XIII,
III. The District Court Properly Applied the Fair, Adequate, and Reasonable Standard to the Settlement of the Navajo Indian Irrigation Project (NIIP)
{28} Appellants make several challenges to the district court's award of water to the NIIP. Once again these challenges fail to understand the origins and scope of the Congressional direction for NIIP.
See Navajo Indian Irrigation Project
, Pub. L. No. 87-483, § 2,
*735 {29} Congress specifically authorized the construction and operation of the NIIP Act "for the principal purpose of furnishing irrigation water to [a service area of not more than 110,630] acres of land[.]" NIIP Act § 2; see Settlement Act § 10402(a) (amending Section 2 of the NIIP Act). In so doing, Congress necessarily determined that up to 110,630 acres of NIIP lands are "irrigable and arable." NIIP Act, 76 Stat. at 96. Moreover, the Settlement Act amends the NIIP Act to significantly broaden the potential uses of NIIP water while confirming the amounts of Navajo diversion (508,000 acre-feet of water per year) and irrigated acreage (110,630) authorized for the project. Settlement Act § 10402(a). "Once reserved rights for Indian reservations have been quantified, they may be applied to any water uses chosen by the tribes." Goldfarb, supra , at 51.
{30} In the 1940s several Colorado River Basin states negotiated the Upper Colorado River Compact. Upper Colorado River Basin Compact, ch. 48, Pub. L. No. 81-37, 31,
{31} In addition to specifying the sources, amounts, distribution, and purposes of the NIIP Act, Congress unambiguously provided:
No person shall have or be entitled to have the use for any purpose ... of water stored in Navajo Reservoir or of any other waters of the San Juan River and its tributaries originating above Navajo Reservoir to the use of which the United States is entitled under these projects except under contract satisfactory to the Secretary and conforming to the provisions of this Act.
NIIP Act § 11.
{32} Appellants argue that "Section 13(c) of the NIIP Act explicitly disclaims any Congressional intention to create a water right[.]" That section provides, in part, that "[n]o right or claim of right to the use of the waters of the Colorado River system shall be aided or prejudiced by" the Act. NIIP Act § 13(c). As the district court explained however, by reasoning with which we agree, this argument takes Section 13(c) totally out of its relevant context. Nothing in Section 13 prohibits the creation of individual water rights within the limitations of the Colorado River Compact.
IV. The District Court's Procedure Complies With Statutory and Constitutional Requirements
{33} Appellants advance several challenges to the procedure adopted by the district court. These challenges exhibit a lack of comprehension of New Mexico statutory procedures for the allocation of water and how constitutional norms apply to those procedures.
A. The District Court Did Not Err in Treating Appellants' "Cross Claims" as Objections to the Settlement
{34} The New Mexico statutory inter se water procedure is specifically designed
*736
to allow the State Engineer to fairly allocate water to all users of a particular stream.
See
NMSA 1978, §§ 72-4-15 (1907), -17 (1965). As the district court explained, this statutory procedure does not follow the typical civil pattern of permitting claims, cross-claims, and counter-claims.
9
New Mexico statutes specifically allow the district court flexibility to adjudicate the senior water rights first, and then address junior claims. This procedure is efficient since it allows the district court to hear all claims against the State Engineer so it can be determined how much water the state will have to allocate.
See
State ex rel. Office of State Eng'r v. Lewis
,
B. Notice of This Inter Se Proceeding Satisfied Constitutional Due Process
{35} To assert a procedural due process claim, an appellant must establish both a deprivation of a protected liberty or property interest and that he or she was not afforded adequate procedural protections.
Barreras v. N.M. Corr. Dep't
,
{36} If this Court could presume Appellants had a property loss, however, their assertion that the parties to the Settlement Agreement intentionally violated due process by failing "to use available data sources to identify and serve the defendants in the Navajo inter se" is not legally viable. Initially it ignores the fact that the settling parties were following the order of the district court and the requirements of Rule 1-071.2(C). Secondly it appears at least part of the problem arose from the failure of Appellants' counsel to supply the current names of all members of the various ditch associations that were available to Appellants. Appellants cannot complain of reversible error they invited and thereby caused.
See
United States v. Lopez-Medina
,
{37} Due process requires only notice "reasonably calculated, under all the circumstances, to apprise interested parties of the pendency of the action and to afford them an opportunity to present their objections."
Mullane v. Cent. Hanover Bank & Tr. Co.
,
C. The District Court Did Not Abuse Its Discretion in Limiting the Time for Discovery
{38} The district court established an orderly and appropriate discovery process, which included an electronic repository for access to discovery documents and regional records repositories for inspection of the older archived government records. 11 Technical reports supporting the United States' and Navajo Nation's Statement of Claims and supporting documents were filed on January 30, 2012. Initial discovery began with the district court's February 3, 2012 order lifting the stay of discovery. Discovery was available to the non-settling parties beginning on April 2, 2012, when the settling parties made their initial disclosures. The parties were able to review documents, make discovery requests, and conduct depositions of the Settling Parties' witnesses at any time after February 3, 2012.
{39} Under the court's scheduling order entered on August 7, 2012, discovery was originally set to close on February 1, 2013. On November 6, 2012, at the request of Appellants and others, the district court entered an order extending discovery. At the request of Appellants and the other non-settling parties, the district court granted another extension of time for discovery until March 31, 2013. Discovery was thus available to Appellants for more than a year during which they sought no further discovery extensions.
V. Appellants' Assertions That the District Court Knowingly Admitted False or Inadmissible Evidence, Allowed the Destruction of Evidence and Ex Parte Contact, and Improperly Excluded Appellants' Evidence Are Unsupported and Subject to Sanctions
{40} Appellants argue the district court committed reversible error by intentionally admitting inadmissible evidence. Again, virtually all these arguments are based on Appellants' inability to comprehend the proper goals and procedure for an inter se water hearing. As we have reiterated, in such a proceeding, issues regarding settlement of other claims and necessity of a pipeline were not required to be addressed at the outset of litigation or alongside superior claims. Appellants' "equitable" arguments regarding global warming, lack of adequate water, the Engineer's *738 failure to fairly allocate, shrinking Navajo population, endangered species, exclusion of other reserved federal water uses, and the failure to include Appellants in the inter se negotiations between the three governments also all miscomprehend the scope and legal effect of the congressional approvals in this case.
{41} Due to the intemperate nature of some of Appellants' language however, this Court cannot fail to address one of their arguments. Appellants claim that
[t]he court abolished the requirement of a hydrographic survey, which is required by statute. [Sections] 72-4-13 through -17. The court substituted a fake hydrographic survey prepared by the United States and the Navajo Nation without any fieldwork.... This pseudo-hydrographic survey was a compilation of unverified information compiled by the adversarial claimants-the Navajo Nation and the United States-from unidentified sources. 12
(Emphasis added.)
{42} In fact the United States clearly created and produced the technical and extremely expensive hydrological report, and the State Engineer followed the usual procedure of adopting it.
See
NMSA 1978, § 72-4-16 (1919). The allegation that the court fraudulently substituted a fake hydrographic survey alleges a felony in New Mexico and is appropriately subject to judicial sanctions.
See
NMSA 1978, § 30-22-5 (2003) ;
see also
Martin v. Essrig
,
{43} Likewise, Appellants' allegations regarding ex parte contact are equally off base. Appellants' counsel states it appears violations of the prohibition against ex parte communication have "contributed to many instances in this and other cases where the basic rights of water owners have been sacrificed to accommodate the interests of the OSE." Appellants' counsel further posits the question, "Did the OSE engage in ex parte contacts to convince the judge that it would be too expensive for the three governments to search readily available public records?" Even more outrageously, without establishing any basis for the accusation of ex parte contact, Appellants' counsel goes on to smear the district judge by stating, "[t]he judge never made any disclosures, and never explained why not."
{44} Truth is not a matter of convenience. "Lawyers are officers of the court and are always under an obligation to be truthful" with the judicial forum.
In re Stein
,
CONCLUSION
{45} For the above stated reasons this Court affirms the order of the district court finding the Settlement was fair, adequate, reasonable, and consistent with the public interest as well as all applicable New Mexico and federal laws.
{46} IT IS SO ORDERED.
WE CONCUR:
LINDA M. VANZI, Chief Judge
J. MILES HANISEE, Judge
The "Four Corners" is the designation given to the point where Colorado, Utah, Arizona, and New Mexico meet.
Normally in an inter se proceeding, the parties objecting to a settlement have the burden to prove the settlement is not fair, adequate, or reasonable.
See
State ex rel. State Eng'r v. Aamodt
,
For purposes of this opinion, when discussed jointly the Settlement Agreement and Settlement Order are referred to as "the Settlement."
The Legislature has likewise delegated to the State Engineer authority to supervise "the apportionment of water in this state according to the licenses issued by him and his predecessors and the adjudications of the courts." NMSA 1978, § 72-2-9 (1907) ;
see also
NMSA 1978, § 72-2-1 (1982) (providing that the State Engineer "has general supervision of waters of the state and of the measurement, appropriation, [and] distribution thereof");
Tri-State Generation & Transmission Ass'n v. D'Antonio
,
Courts and other legal scholars have repeatedly recognized this interpretation of reservation water rights.
See, e.g.
,
Agua Caliente Band of Cahuilla Indians v. Coachella Valley Water Dist.
,
The federal government has the power to reserve water under both the Commerce and Property clauses of the Federal Constitution.
Cappaert v. United States
,
The Settlement Act specifically recognizes the Colorado River Compact and adjusts water allocations to comply with it. Settlement Act § 10603(j).
Appellants' arguments based on other federal laws are again unfounded. They rely on various resolutions, compacts, and statutes from the first half of the 20th century that include (at most) general references to the principle of beneficial use. Even if any of these general resolutions or statutes were applicable in this situation, which they are not, they would be superseded by the subsequent and more specific NIIP and Settlement statutes passed by Congress.
See
Morton
,
On March 13, 1975, the State Engineer initiated the general stream adjudication on the San Juan River stream system by filing the complaint contemplated under Section 72-4-15 in district court. In accordance with the usual procedure in water rights proceedings, no "answer" was required or filed.
See
State ex rel. State Eng'r v. Comm'r of Pub. Lands
,
The Gallup Independent , Navajo Times , Farmington Daily Times , Rio Rancho Observer , Rio Grande Sun , and Albuquerque Journal .
Appellants could then identify documents and repository staff would make the copies. When Appellants' counsel objected that documents must be made available in San Juan County, counsel for the United States informed the court and the non-settling parties that the non-privileged documents would be scanned onto a disk.
Appellants speculate that "a real hydrographic survey ... would have identified many additional water owners who opposed the Navajo [Nation's] claim." This speculation is again a violation of the New Mexico Rules of Appellate Procedure and is not to be countenanced by this Court. See Rule 12-318(A).
Reference
- Full Case Name
- STATE of New Mexico EX REL. STATE ENGINEER, Plaintiff-Appellee, v. UNITED STATES of America, Defendant-Appellee, v. Navajo Nation, Defendant/Intervenor-Appellee, v. San Juan Agricultural Water Users Association, Hammond Conservancy District, Bloomfield Irrigation District, and Various Ditches and Various Members Thereof, Defendants-Appellants.
- Cited By
- 13 cases
- Status
- Published