Yurok Tribe v. Klamath Water Users Association
Yurok Tribe v. Klamath Water Users Association
Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
YUROK TRIBE; PACIFIC COAST No. 23-15499
FEDERATION OF FISHERMEN'S
ASSOCIATIONS; INSTITUTE FOR D.C. No. 3:19-cv-
FISHERIES RESOURCES; HOOPA 04405-WHO
VALLEY TRIBE,
Plaintiffs-Appellees, OPINION
v.
U.S. BUREAU OF RECLAMATION,
Defendant-counter-claimant-
cross-claimant-Appellee,
NATIONAL MARINE FISHERIES
SERVICE,
Defendant-Appellee,
v.
KLAMATH WATER USERS
ASSOCIATION,
Defendant-counter-claimant-
cross-claimant-Appellant,
2 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
KLAMATH TRIBES; KLAMATH
IRRIGATION DISTRICT,
Intervenor-Defendants-
Appellees,
v.
OREGON WATER RESOURCES
DEPARTMENT,
Cross-claim-defendant-
Appellee.
YUROK TRIBE; PACIFIC COAST No. 23-15521
FEDERATION OF FISHERMEN'S
ASSOCIATIONS; INSTITUTE FOR D.C. No. 3:19-cv-
FISHERIES RESOURCES; HOOPA 04405-WHO
VALLEY TRIBE,
Plaintiffs-Appellees,
v.
U.S. BUREAU OF RECLAMATION;
KLAMATH WATER USERS
ASSOCIATION,
Defendants-counter-
claimants-cross-claimants-
Appellees,
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 3
NATIONAL MARINE FISHERIES
SERVICE,
Defendant-Appellee,
KLAMATH TRIBES,
Intervenor-Defendant-
Appellee,
v.
KLAMATH IRRIGATION
DISTRICT,
Intervenor-Defendant-
Appellant,
v.
OREGON WATER RESOURCES
DEPARTMENT,
Cross-claim-defendant-
Appellee.
Appeal from the United States District Court
for the Northern District of California
William Horsley Orrick, District Judge, Presiding
Argued and Submitted June 12, 2024
Submission Vacated October 24, 2024
Resubmitted June 17, 2026
San Francisco, California
4 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
Filed June 17, 2026
Before: Mary M. Schroeder, Ronald M. Gould, and Ryan
D. Nelson, Circuit Judges.
Opinion by Judge Gould;
Dissent by Judge R. Nelson
SUMMARY *
Environmental Law
The panel affirmed the district court’s holding that the
Endangered Species Act (“ESA”) applies to the Bureau of
Reclamation’s operation of the Klamath Project, a very large
water management initiative in Northern California and
Southern Oregon that provides water for irrigation and for
wildlife refuges.
In response to the listing of two endangered species of
suckers, and consecutive critically dry years in the Klamath
Basin, the Bureau began to consult with the National Marine
Fisheries Service and the U.S. Fish and Wildlife
Service. The result of the most recent consultations required
the Bureau to maintain water levels in Upper Klamath Lake
and to provide minimum stream flows in the Klamath River.
Appellants, the Klamath Irrigation District (“KID”) and
the Klamath Water Users Association, argued that the
*
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 5
district court erred in determining that the ESA applied to
the Bureau of Reclamation’s operation of the Klamath
Project, allowing releases from Upper Klamath Lake for
ESA compliance purposes.
The panel held that Section 7(a)(2) of the ESA—which
requires all federal agencies to engage in consultation to
“insure that any action authorized, funded, or carried out by
such agency ( . . . an ‘agency action’) is not likely to
jeopardize the continued existence of any endangered
species or threatened species or result in the destruction or
adverse modification of habitat of such species”—applies to
the Bureau’s operations related to the Klamath
Project. Klamath Water Users Protective Ass’n v.
Patterson, 204 F.3d 1206 (9th Cir. 1999), continues to
govern as controlling precedent for Klamath Basin litigation.
The panel further held that the district court’s decision
was not a “judicial taking” of KID’s water rights because
determining whether the ESA applied to the Klamath Project
is not an adjudication of water rights.
Finally, the panel held that the district court had
jurisdiction to decide the federal appellees’ crossclaim
seeking to confirm the Bureau of Reclamation’s authority to
operate the Klamath Project in compliance with the ESA
because the doctrines of prior exclusive jurisdiction and
Colorado River abstention did not apply.
Judge R. Nelson dissented. He agreed with the
majority’s analysis of the judicial taking and Colorado River
abstention issues, but he would hold that ESA § 7’s
obligations are not triggered by the contractual obligations
in this case. Under National Association of Home Builders
v. Defenders of Wildlife, 551 U.S. 644 (2007), and National
Resources Defense Council v. Haaland, 102 F.4th 1045 (9th
6 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
Cir. 2024), the generalized holding in Patterson that the ESA
applies to the Klamath Project is no longer good law. He
would hold that no statutory provision or contract provided
agency discretion sufficient to trigger the ESA.
COUNSEL
Patti A. Goldman (argued) and Kristen L. Boyles,
Earthjustice, Seattle, Washington; Anna K. Stimmel,
Earthjustice, San Francisco, California; Amy C. Cordalis,
Ridges to Riffles Indigenous Conservation, Ashland,
Oregon; Thomas P. Schlosser and Thane D. Somerville,
Morisset Schlosser Jozwiak & Somerville, Seattle,
Washington; for Plaintiffs-Appellees.
John L. Smeltzer (argued), Kevin McCardle, Robert P.
Williams, Kaitlyn Poirier, and Thomas K. Snodgrass,
Attorneys, Environment & Natural Resources Division;
Todd Kim, Assistant Attorney General; United States
Department of Justice, Washington, D.C.; Megan J. Walline,
Office of General Counsel, National Oceanic and
Atmospheric Administration; Washington, D.C.; Lance C.
Wenger, Solicitor’s Office, United States Department of the
Interior, Washington, D.C.; Brittany K. Johnston (argued)
and Paul S. Simmons, Somach Simmons & Dunn,
Sacramento, California; Maximilian C. Bricker, Somach
Simmons & Dunn, Boulder, Colorado; for Defendant-
Appellee and Defendants-counter-claimant-cross-claimant-
Appellants.
Nathan R. Rietmann (argued), Rietmann & Kim LLP,
Salem, Oregon; Jeremiah D. Weiner (argued), Rosette LLP,
Sacramento, California; John P. Kinsey and Nicolas R.
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 7
Cardella, Wanger Jones Helsley PC, Fresno, California; for
Intervenor-Defendants-Appellees.
Denise G. Fjordbeck and Carson L. Whitehead, Assistant
Attorneys General; Benjamin Gutman, Solicitor General;
Ellen F. Rosenblum, Attorney General; Oregon Office of the
Attorney General, Salem, Oregon; for Cross-claim-
defendant-Appellee.
David E. Filippi and Merissa A. Moeller, Stoel Rives LLP,
Portland, Oregon; Wade C. Foster, Stoel Rives LLP, Boise,
Idaho; Norman M. Semanko, Parsons Behle & Lahtimer,
Boise, Idaho; Paul L. Arrington, Idaho Waters, Boise, Idaho;
Wade Noble and Meghan Scott, Noble Law Office, Yuma,
Arizona; Lawrence E. Martin, Halverson Northwest Law
Group, Yakima, Washington; for Amici Curiae Oregon
Water Resources Congress, National Water Resources
Association, Oregon Farm Bureau Federation, Family Farm
Alliance, Idaho Water Users Association, Agribusiness and
Water Council of Arizona, and Washington State Water
Resources Association.
Meredith E. Nikkel, Samuel Bivins, and Nicolas Chapman,
Downey Brand LLP, Sacramento, California, for Amici
Curiae Association of California Water Agencies and
California Farm Bureau Federation.
Paul S. Weiland and Brian Ferrasci-O'Malley, Nossaman
LLP, Irvine, California; Marcus M. Henderson, Counsel,
Klamath Falls, Oregon; Margaret E. Long, Prentice Long
PC, Redding, California; for Amici Curiae Siskiyou, Modoc,
and Klamath Counties.
Tara Mueller and Daniel M. Fuchs, Deputy Attorneys
General; Tracy L. Winsor, Senior Assistant Attorney
General; Rob Bonta, California Attorney General; Office of
8 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
the California Attorney General, Oakland, California; for
Amicus Curiae State of California.
OPINION
GOULD, Circuit Judge:
In this case, the most recent in a litany of cases regarding
water distribution in the Klamath Basin, we must decide
whether the Endangered Species Act (“ESA”) applies to the
Bureau of Reclamation’s operation of the Klamath River
Basin Project (“Klamath Project”), a very large water
management initiative in Northern California and Southern
Oregon that provides water for irrigation and for wildlife
refuges. We hold that it does.
The Klamath Project was authorized in 1905 under the
Bureau of Reclamation’s authority under the Reclamation
Act and it distributes water throughout the Klamath Basin.
Upper Klamath Lake is the major storage reservoir of the
project and also provides habitat for two endangered species
of suckers, and its downstream flows in the Klamath River
provide habitat for threatened salmon species, which in turn
affects the food supply for endangered whales that feed on
the salmon. In response to the listing of these endangered
species and consecutive critically dry years in the Klamath
Basin, the Bureau of Reclamation began to consult with the
National Marine Fisheries Service (“NMFS”) (collectively,
the “Federal Appellees”), and the U.S. Fish and Wildlife
Service (“FWS”) to ensure that Klamath Project operations
would not jeopardize the continued existence of these
species. Relevant to this appeal, the result of the most recent
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 9
consultations required the Bureau of Reclamation to
maintain minimum water levels in Upper Klamath Lake and
to provide minimum stream flows in the Klamath River.
After a complex procedural history, this case arises from
the district court’s resolution of a crossclaim brought by
Federal Appellees that sought to confirm the Bureau of
Reclamation’s authority to operate the Klamath Project in
compliance with the ESA. The district court confirmed this
authority and concluded that the ESA applies to the Bureau
of Reclamation’s operation of the Klamath Project.
On appeal of this decision, Appellants, the Klamath
Irrigation District (“KID”) and the Klamath Water Users
Association (“KWUA”) contend that the district court erred
in determining that the ESA applied to the Bureau of
Reclamation’s operation of the Klamath Project, allowing
releases from Upper Klamath Lake for ESA compliance
purposes. KID makes two additional arguments on appeal:
First, KID contends that the district court’s decision amounts
to a “judicial taking” of KID’s water rights. Second, KID
contends that the federal district court did not have
jurisdiction to decide the claim.
We note the important competing interests of the parties
at stake in this case and the limited supply of water in the
Klamath Basin. The Tribal Appellees have long relied on
sufficient water to sustain fisheries and support the
subsistence Tribal fishing rights guaranteed to them by
treaty. The irrigators have similarly relied on the same
Klamath Basin water for agricultural production since the
beginning of the twentieth century. And the Bureau of
Reclamation has long sought to manage the distribution of
water in accordance with these competing interests and its
obligations under federal law.
10 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
In this context we conclude that Appellants’ arguments
are without merit. We affirm the district court’s decision and
hold that: (1) the ESA applies to the Bureau of Reclamation’s
operations related to the Klamath Project; (2) the district
court’s decision was not a “judicial taking” of KID’s water
rights because determining whether the ESA applies to the
Klamath Project is not an adjudication of water rights; and
(3) the federal district court had jurisdiction to determine this
issue because the doctrines of prior exclusive jurisdiction
and Colorado River abstention do not apply.
I. FACTS AND PROCEDURAL HISTORY
A
Disputes over allocation of water within the Klamath
Basin in Southern Oregon and Northern California have
been the subject of many lawsuits in our Court and others.
The Klamath Basin encompasses about 12,000 square miles
of interconnected rivers, canals, lakes, marshes, dams,
diversions, wildlife refuges, and wilderness areas. Klamath
Irrigation Dist. v. U.S. Bureau of Reclamation, 48 F.4th 934,
938 (9th Cir. 2022) (KID II).
The Klamath Project is a large water-management
initiative that was authorized by the Secretary of the Interior
in 1905 pursuant to the Reclamation Act of 1902 and by the
1905 Oregon Act, which provided a procedure governing the
appropriation of water for irrigation purposes in Oregon. See
Baley v. United States, 942 F.3d 1312, 1319–20 (Fed. Cir.
2019). The Klamath Project is managed and operated by the
Secretary of the Interior, through the Bureau of Reclamation.
See Klamath Irrigation Dist. v. United States, 635 F.3d 505,
508 (Fed. Cir. 2011). Before the Klamath Project was
created, the Upper Klamath River was dominated by three
shallow lakes and wetlands. To create arable lands suitable
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 11
for agriculture and food production, the Bureau of
Reclamation drained large areas of wetlands and two of the
large lakes in order to construct a network of dams, canals,
and drains. In doing so, the Bureau of Reclamation
reconfigured Upper Klamath Lake, a natural lake at the
headwaters of the Klamath River, to serve as the primary
water storage reservoir. The Klamath Project has “dual
purposes,” providing water to about 240,000 acres of
irrigable crop lands for agricultural uses and providing water
for wildlife needs to several national wildlife refuges,
including the Lower Klamath and Tule Lake National
Wildlife Refuges. Klamath Irrigation Dist., 635 F.3d at 508.
In 1917, the Bureau of Reclamation authorized a public
utility company to construct a hydroelectric dam, the Link
River Dam, to regulate flows through Upper Klamath Lake.
Water is delivered for the Klamath Project through the A
Canal, which diverts water from Upper Klamath Lake above
the Link River Dam, and through diversion structures on the
Klamath River in Oregon below the Link River Dam.
Klamath River water that is not diverted for Project or other
use flows downstream into California and then out into the
Pacific Ocean.
B
Water rights in the Klamath Basin are based on the
doctrine of prior appropriation, which generally means that
the “first in time [is the] first in right” so long as the user
maintains beneficial use of the water. Arizona Power Auth.
v. Morton, 549 F.2d 1231, 1233 (9th Cir. 1977); see also
Klamath Irrigation Dist. v. United States, 227 P.3d 1145,
1150 (Or. 2010).
In 1905, the United States gave notice in accord with
Oregon law of its intent to appropriate for the Klamath
12 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
Project “[a]ll of the waters of the Klamath Basin . . .
constituting the entire drainage basin[] of the Klamath
River,” Baley, 942 F.3d at 1320, and gave similar notice to
appropriate the Klamath Basin waters in California. The
development and use of the Klamath Project perfected the
United States’ water rights under Oregon law with the
priority date of 1905. Id. at 1320–21.
But, these rights were and are subject to preexisting
rights for Klamath Basin Tribes, including the Klamath
Tribe, the Yurok Tribe, and the Hoopa Valley Tribe. Under
federal law, the establishment of a Federal Indian reservation
reserved rights to unappropriated water for the purposes of
the reservation. These rights are often referred to as Winters
rights. See Winters v. United States, 207 U.S. 564, 576–77
(1908). These rights vest no later than the date of the
reservation creation and are “superior to the rights of future
appropriators.” Cappaert v. United States, 426 U.S. 128, 138
(1976). The Klamath Tribe holds instream senior water
rights for tribal fisheries in Upper Klamath Lake and its
tributaries, and the Yurok and Hoopa Valley Tribes hold
instream senior water rights for tribal fisheries in the
Klamath River in California. See Baley, 942 F.3d at 1335–
39.
In 1975, the Oregon Water Resources Division
(“OWRD”) initiated a general adjudication of the rights of
all Klamath Basin water users in the Klamath Basin
Adjudication. See United States v. Oregon, 44 F.3d 758,
762–64 (9th Cir. 1994). In 2014, OWRD issued an
“Amended and Corrected Findings of Fact and Order of
Determination” (“ACFFOD”), that provisionally determined
the water rights of various users. While the ACFFOD is
subject to ongoing judicial review in the Klamath County
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 13
Circuit Court (the “Klamath Basin Adjudication”), the
ACFFOD remains in full force pending review.
The United States in the Klamath Basin Adjudication did
not assert Winters rights on behalf of the Yurok and Hoopa
Valley Tribes, both of whom have rights that are senior to
other users, and that are at least coextensive to the water
flows required by the ESA, meaning that these Tribes have a
senior right to water sufficient to preserve fish species
because of the Tribal subsistence fishing rights guaranteed
to them by treaty. See Klamath Water Users Protective Ass’n
v. Patterson, 204 F.3d 1206, 1213–14 (9th Cir. 1999); Baley,
942 F.3d at 1335–41. We have affirmed that Oregon state
courts lack jurisdiction to adjudicate the rights of these
California Tribes. See In re Klamath Irrigation Dist., 69
F.4th 934, 941–42 (9th Cir. 2023). The ACFFOD, however,
did confirm the instream Winters rights of the Klamath Tribe.
See Hawkins v. Haaland, 991 F.3d 216, 221 (D.C. Cir. 2021).
The adjudication of Tribal water rights was explicitly
reserved for phase two of this litigation in the district court.
The ACFFOD did not determine the relative rights and
priorities to Klamath Project water among users. Instead, the
users’ relative rights and priorities are governed by federal
contracts or leases that specify the terms and conditions for
the supply of Klamath Project water, including repayment
obligations for construction, maintenance, and operation
costs. See Baley v. United States, 134 Fed. Cl. 619, 627–33
(Fed. Cl. 2017). There are four main types of contracts.
First, the Bureau of Reclamation entered repayment
contracts under the Reclamation Act with KID and another
irrigation district. Those contracts were amended in 1954
and provide that the irrigation districts would assume
responsibility for the care and maintenance of canals and
14 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
other irrigation works and would ultimately be responsible
for delivering Project water to their members. However, the
contracts contained a shortage clause, providing that the
irrigation districts may not make deliveries when the Bureau
of Reclamation notifies the districts that the parties are not
entitled to water because of nonpayment or for “other
reasons,” which include shortages caused by droughts or
“other reasons.”
Second, the Bureau of Reclamation also entered into
water-delivery and repayment contracts with many irrigators
and individuals under the 1911 Warren Act, which allowed
the Bureau of Reclamation to provide water to some users
outside of the Klamath Project area when the Bureau of
Reclamation determines there is excess “storage or carrying
capacity.” 43 U.S.C. §§ 523-24. Third, the Bureau of
Reclamation entered into one settlement contract with the
Van Brimmer Ditch Company to compensate it for the
private company’s pre-existing right to divert water from the
Lower Klamath Lake, which had been drained to create the
Project, and promised to deliver the same amount of water
to the company. Baley, 134 Fed. Cl. at 632.
Fourth, the United States leases land within the Lower
Klamath and Tule Lake National Wildlife Refuges for
agricultural use. These leases specify that the United States
cannot be held liable for damages if “irrigation water is not
available.” Id.
Apart from the one settlement contract, the contracts do
not specify or guarantee a specific amount of water to be
delivered to an irrigation district or individual water user.
Instead, the contracts provide terms for an equitable
allocation of available water. Id. at 627–33.
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 15
C
In addition to serving as a storage reservoir for the
Klamath Project, Upper Klamath Lake provides habitat for
endangered suckers (the Lost River sucker and the shortnose
sucker), that are found only in Upper Klamath Lake and the
surrounding Klamath Basin waters. See 53 Fed. Reg. 27,130
(July 18, 1988) (listing the Lost River sucker and shortnose
sucker as endangered); see also 77 Fed. Reg. 73,740, 73,762-
68 (Dec. 11, 2012) (designating Upper Klamath Lake as
critical habitat for the suckers). Upper Klamath Lake’s
downflow into the Klamath River also provides habitat for
threatened Southern Oregon/Northern California Coast coho
salmon (“SONCC coho salmon”). See 62 Fed. Reg. 24,588
(May 6, 1997) (listing SONCC coho salmon as threatened);
see also 64 Fed. Reg. 24,049 (May 5, 1999) (designating the
Klamath River as critical habitat for SONCC coho salmon). 1
The Bureau of Reclamation has long interpreted its
operations of the Klamath Project in a manner to comply
with the mandates of the ESA. After the listing of the two
suckers and SONCC coho salmon, the Bureau of
Reclamation, in accordance with Section 7(a)(2) of the ESA,
began consulting with the U.S. Fish and Wildlife Service
(“FWS”) and the National Marine Fisheries Service
(“NMFS”) to determine whether Klamath Project operations
would jeopardize these species. See Patterson, 204 F.3d at
1209–10; see also 16 U.S.C. § 1536(a)(2). In 2001, after a
1
While not listed under the ESA, the Klamath River also provides
spawning habitat for chinook salmon, whose populations are declining
from the same threats that impact coho salmon. See Parravano v.
Babbitt, 70 F.3d 539, 542 (9th Cir. 1995); Baley, 942 F.3d at 1336.
Chinook salmon are also a primary food source for the engendered
Southern Resident killer whale. See 70 Fed. Reg. 69,903 (Nov. 18, 2005)
(listing the killer whale as endangered).
16 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
forecasted “critical dry” year for Upper Klamath Basin, the
Bureau of Reclamation requested Biological Opinions
(“BiOps”) from FWS and NMFS regarding the species at
issue. See Baley, 942 F.3d at 1323–24. The BiOps
concluded that planned Klamath Project operations were
likely to jeopardize the continued existence of the suckers
and the SONCC coho salmon and then identified reasonable
and prudent alternatives to maintain minimum water levels
in Upper Klamath Lake and in the Klamath River
downstream to preserve the species. 2 Id. at 1324–25.
Since 2001, the Bureau of Reclamation has periodically
revised Klamath Project operations to respond to changed
circumstances and new information. As relevant here, in
2019, the Bureau of Reclamation completed an ESA
consultation with FWS and NMFS for proposed Klamath
Project operations through 2024 in response to consecutive
years of drought and to incidental take of the SONCC coho
salmon, and the Bureau of Reclamation developed a
Klamath Project Operating Procedures Plan as a result of this
consultation. This plan aimed to: (1) maintain Upper
Klamath Lake water levels necessary to protect sucker
habitat, (2) release Upper Klamath Lake water providing
downstream flows necessary to protect salmon spawning
habitat in the Klamath River, and (3) maximize irrigation
water deliveries to Klamath Project users.
2
When this determination was challenged by the Klamath Project users
as a “taking” of Klamath Project water rights, the Federal Circuit found
that no taking had occurred because the Project rights are subordinate to
the Tribal rights that are “at least equal” in amount to the water “needed
to satisfy the Bureau of Reclamation’s ESA obligations.” Baley, 942
F.3d at 1337–42.
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 17
D
This case has a complicated procedural history. The
Yurok Tribe, the Pacific Coast Federation of Fishermen’s
Associations, and the Institute for Fisheries Resources
(collectively, the “Yurok Plaintiffs”) brought the initial
lawsuit in 2019 in the Northern District of California, after
the Bureau of Reclamation completed its 2019 ESA
consultation. The Yurok Plaintiffs challenged the 2019 plan
and assessment, contending that the consultations were
arbitrary, capricious, and contrary to the ESA. KWUA and
KID subsequently intervened. In March 2020, at the parties’
request, the district court stayed the case, and the Bureau of
Reclamation operated the Klamath Project under an Interim
Plan to which the parties stipulated.
While the initial case was underway, KID brought
several suits in state and federal courts, three of which are
relevant to the current appeal. First, in March 2019, KID
sued the Bureau of Reclamation in the United States District
Court for the District of Oregon, seeking declaratory and
injunctive relief. KID contended that the Bureau of
Reclamation’s operation of the Klamath Project pursuant to
the 2019 plan was contrary to law because the plan permitted
releases from Upper Klamath Lake to enhance Klamath
River flows for ESA compliance purposes, without
previously-decreed instream water rights for ESA
compliance purposes. See KID II, 48 F.4th at 942. The
district court dismissed that case for failure to join a required
party based on the Tribes’ sovereign immunity, and we
affirmed. See id.
18 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
Second, in 2021, KID moved in Klamath County Circuit
Court 3 for a preliminary injunction against the Bureau of
Reclamation’s management of water in Upper Klamath
Lake, asking the court to enjoin the non-irrigation water
releases from Upper Klamath Lake that were being released
for ESA purposes. The United States removed the action to
federal district court for the District of Oregon. See In re
Klamath Irrigation Dist., 69 F.4th at 937. KID petitioned
our Court for a writ of mandamus to compel the district court
to remand KID’s motion for a preliminary injunction back to
the Klamath County Circuit Court. We denied that petition.
See id. at 940–42.
Third, in 2020, KID filed suit in Marion County Circuit
Court to compel OWRD to “take charge” of the water in
Upper Klamath Lake under Oregon law and enjoin the
Bureau of Reclamation’s release of stored water for non-
irrigation purposes. See Klamath Irrigation Dist. v. Oregon
Water Res. Dep’t, 518 P.3d 970, 974–95 (Or. Ct. App. 2022).
In response to this lawsuit, OWRD issued an order on April
6, 2021, directing the Bureau of Reclamation to immediately
stop the distribution of water in Upper Klamath Lake for
ESA compliance purposes.
In response to the OWRD order, in June 2021, Federal
Appellees moved to lift the stay in the original proceeding in
the Northern District of California for the limited purpose of
litigating a crossclaim by the United States and a
supplemental complaint by the Yurok Plaintiffs against KID
and KWUA. The district court lifted the stay on September
30, 2021 for this purpose. The crossclaim sought declaratory
relief that the OWRD order was contrary to the ESA and was
3
The Klamath County Circuit Court is the state court that is currently
deciding the Klamath Basin Adjudication of water rights.
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 19
preempted under the Supremacy Clause. Federal Appellees
also sought a permanent injunction against enforcement of
the OWRD order. Alternatively, the crossclaim sought
declaratory relief that the OWRD order was contrary to the
federally-reserved senior water rights to support the Tribal
fisheries of the Yurok and Hoopa Valley Tribes and was
preempted by the Supremacy Clause and the Indian
Commerce Clause.
The district court bifurcated the proceedings into two
phases: phase one resolved only the ESA-related crossclaim;
and phase two would then determine the extent of Tribal
water rights. In February 2023, the district court granted
summary judgment for the United States and the Yurok
Plaintiffs on the ESA-related claim in phase one, which is
the subject of this appeal. See Yurok Tribe v. U.S. Bureau of
Reclamation, 654 F. Supp. 3d 941, 949 (N.D. Cal. 2023). On
the merits, the district court held that because the ESA
applied to the Bureau of Reclamation’s operation of the
Klamath Project, OWRD’s order was preempted, and the
district court enjoined OWRD from attempting to enforce it.
Id. at 964–69. KWUA and KID timely appealed to our Court
in April 2023. 4
Before oral argument, we asked the parties to address the
question of mootness because the OWRD order at issue in
the original litigation had been withdrawn, and thus the only
remaining relief sought was declaratory relief about whether
4
OWRD subsequently withdrew its order, and KWUA moved in the
district court under Federal Rule of Civil Procedure 54(b) for the entry
of a final judgment on the declaratory relief granted in phase one. The
district court entered final judgment on the declaratory relief on August
15, 2023. OWRD does not dispute on appeal that its order was
preempted to the extent it conflicted with the ESA.
20 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
the ESA applies to the Bureau of Reclamation’s operation of
the Klamath Project. At oral argument before us in June
2024, KID urged us to certify questions to the Oregon
Supreme Court regarding the Bureau of Reclamation’s
authority to use and control the water under Oregon law and
subsequently filed a motion for certification of questions
about Oregon water law to the Oregon Supreme Court.
In March 2025, at the Federal Appellees’ request, we
held the case in abeyance for 90 days to permit the
Department of the Interior to update its federal guidance on
the operation of the Klamath Project in relation to the ESA
due to the change in Presidential Administrations. In May
2025, after the Department of the Interior issued new
guidance and Federal Appellees withdrew their earlier legal
position, Federal Appellees moved to dismiss the appeal for
lack of jurisdiction because of mootness and moved to
vacate the district court’s judgment. Alternatively, Federal
Appellees moved for a continued stay to enable the district
court to consider a motion for voluntary dismissal. KID and
KWUA also moved to dismiss the case and vacate the
district court’s judgment.
After briefing on mootness from the parties, we denied
the motions to dismiss and the motion for a continued stay,
concluding that the declaratory relief on whether the ESA
applies to the Klamath Project would give the parties
“meaningful relief,” and presented a live controversy for us
to decide. Ctr. for Biological Diversity v. Lohn, 511 F.3d
960, 964 (9th Cir. 2007). We have jurisdiction under 28
U.S.C. § 1291. We now hold that the ESA applies to the
Bureau of Reclamation’s operation of the Klamath Project.
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 21
II. STANDARD OF REVIEW
We review de novo a grant of summary judgment. Lolli
v. Cnty. of Orange, 351 F.3d 410, 414 (9th Cir. 2003). A
district court’s construction or interpretation of a federal law,
including the ESA, is a question of law that we review de
novo. Arizona v. Tohono O’odham Nation, 818 F.3d 549,
555 (9th Cir. 2016).
III. DISCUSSION
A
We first address whether the Bureau of Reclamation has
the authority to act in its operation of the Klamath Project to
benefit protected species under the ESA. We hold that it
does. The dissent concedes that the answer to this question
must be “yes,” yet it attempts to evade what it describes as a
“truism” by misreading our precedent. Dissenting Op. at 42.
The dissent misconstrues the direct issue on appeal here,
which is whether the district court erred by granting
declaratory relief on the question whether “[the Bureau of]
Reclamation’s operation of the Klamath Project, including
the exercise of its rights to store water in [Upper Klamath
Lake] for irrigation use, is subject to compliance with the
ESA.” Our case law supports that the answer to this
question must be “yes.”
1
We have recognized that Section 7 is the “heart of the
ESA.” Karuk Tribe of Cal. v. U.S. Forest Serv., 681 F.3d
1006, 1019–20 (9th Cir. 2012) (en banc) (quoting W.
Watersheds Project v. Kraayenbrink, 632 F.3d 472, 495 (9th
Cir. 2011)). Section 7(a)(2) of the ESA requires all federal
agencies to engage in consultation to “insure that any action
authorized, funded, or carried out by such agency ( . . . an
22 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
‘agency action’) is not likely to jeopardize the continued
existence of any endangered species or threatened species or
result in the destruction or adverse modification of habitat of
such species.” 16 U.S.C. § 1536(a)(2).
It would be hard to overstate the importance of this ESA
prohibition. As the Supreme Court has recognized, “[w]hen
Congress passed the [ESA] in 1973, it was not legislating on
a clean slate.” Tenn. Valley Auth. v. Hill, 437 U.S. 153, 174
(1978). Indeed, the ESA was born out of the environmental
law movements of the 1960s and 1970s, and Congress had
passed earlier, narrower, and less effective versions of the
ESA in 1966 and 1969. See id. at 175–76. However, by
1973, Congress recognized that these prior Acts did not go
far enough to protect endangered species and to stem hazards
of extinction. See id. at 177 (“The dominant theme
pervading all Congressional discussion of the proposed
[Endangered Species Act of 1973] was the overriding
need to devote whatever effort and resources were
necessary to avoid further diminution of national and
worldwide wildlife resources.” (quoting Coggins,
Conserving Wildlife Resources: An Overview of the
Endangered Species Act of 1973, 51 N.D.L.Rev. 315, 321
(1975))). Greatly troubled by the “unknown uses that
endangered species might have” and “the unforeseeable
place such creatures may have in the chain of life on this
planet,” Congress in 1973 passed the ESA as we know it
today with its broad and clear purpose of ensuring the
conservation of endangered and threatened species,
regardless of the cost. Id. at 178–80.
Section 7 is “a particularly good gauge of congressional
intent” because the language of Section 7 changed from the
earlier 1966 version, which had qualified the obligation of
federal agencies to seek to preserve endangered species only
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 23
“insofar as is practicable and consistent with [the agencies’]
primary purposes.” Id. at 181. By contrast, the current
version of the ESA mandates that all federal agencies must
ensure that their actions will not detrimentally affect an
endangered or threatened species, without reservation. Id. at
181–82. The broad applicability of Section 7 reflects “a
conscious decision by Congress to give endangered species
priority over the ‘primary missions’ of federal agencies.” Id.
at 185; see also O’Neill v. United States, 50 F.3d 677, 681
(9th Cir. 1995) (“[The] ESA was enacted in 1973 to ‘halt and
reverse the trend toward species extinction, whatever the
cost.’” (quoting Tenn. Valley, 437 U.S. at 184)).
With this background in mind, 5 we turn to the ESA
question before us now: whether Section 7(a)(2) of the ESA
applies to the Bureau of Reclamation’s operation of the
Klamath Project. We hold that it does.
We have previously held that that the “ESA generally
applies to” the Bureau of Reclamation’s water contracts for
water management within the Klamath Project. See
Patterson, 204 F.3d at 1213. Although KID and KWUA
urge us to conclude that Patterson is neither controlling nor
good law, we disagree. Patterson continues to govern the
5
If the dissent is contending that this portion of Tennessee Valley
Authority is no longer good law, see Dissenting Op. at 46–47, Home
Builders did not dispute or invalidate the legislative history of the ESA.
See 551 U.S. at 670–71. Instead, this portion of Home Builders
recognized that there was no contrary mandatory obligation from
Congress on Tennessee Valley Authority that would implicitly repeal the
ESA. Id. The Home Builders Court held that because there was no
mandatory “statutory command” in the facts of Tennessee Valley
Authority, the case supported the majority’s conclusion that it involved
a discretionary agency action. Id..
24 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
ESA’s applicability to the Klamath Project, and we discern
no reason to deviate from that holding.
Patterson involved a dispute between Klamath Basin
irrigators, the Bureau of Reclamation, and PacifiCorp over a
contract governing the management of the Link River Dam
within the Klamath Project. Id. at 1209. In Patterson, we
addressed two primary issues: First, and irrelevant to this
appeal, we determined whether the Klamath Basin irrigators
(there, the plaintiffs) were third-party beneficiaries of the
contract between the Bureau of Reclamation and PacifiCorp.
Id. at 1210–12. Second, and relevant here, we affirmed the
district court’s grant of declaratory relief in favor of
PacifiCorp when the district court held that the Bureau of
Reclamation had the authority to direct Dam operations to
comply with the ESA. Id. at 1213. We recognized that
“when an agency, such as [the Bureau of] Reclamation,
decides to take action, the ESA generally applies to the
contract” and explicitly “h[e]ld that . . . [the Bureau of]
Reclamation has the authority to direct Dam operations to
comply with the ESA.” Id.
Although KID and KWUA contend that this part of the
Patterson opinion is mere dicta, we disagree. We devoted a
separate section in the Patterson opinion to resolving the
dispute as to whether the district court’s holding that “the
[i]rrigators’ rights to water are subservient to the ESA” was
correct and whether the ESA applied to the contracts. Id.
Our language in Patterson explicitly said that we intended to
make a holding of law. After careful examination of the
issues and relevant precedent, we “h[e]ld” that the Bureau of
Reclamation has authority over the Klamath Project and we
repeatedly made unequivocal and binding statements that the
Bureau Reclamation must comply with the ESA in operating
the Link River Dam. Id.; see also id. at 1209 (“Operation
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 25
of the dam is also subject to the requirements of federal
statutes, such as the Endangered Species Act.”); id. at 1213
(“Because Reclamation retains authority to manage the
Dam, and because it remains the owner in fee simple of the
Dam, it has responsibilities under the ESA as a federal
agency.”); id. (“[M]eet[ing] the requirements of the ESA. . .
override the water rights of the [i]rrigators.”). This
reasoning was integral to the decision in Patterson and
cannot be considered to be mere dicta. See United States v.
Johnson, 256 F.3d 895, 914 (9th Cir. 2001) (per curiam)
(“[W]here a panel confronts an issue germane to the eventual
resolution of the case, and resolves it after reasoned
consideration in a published opinion, that ruling becomes the
law of the circuit, regardless of whether doing so is
necessary in some strict logical sense.”). The format and
content of the Patterson opinion persuade us that our holding
that ESA applied to the Bureau of Reclamation’s authority
over the Link River Dam is not dicta and continues to bind
our decisions, and we reaffirm that decision here.
After Patterson, we and other Circuits have continued to
recognize that the ESA applies to the Bureau of
Reclamation’s operation of the Klamath Project, and that the
rights of Klamath Project water users are subject to the
requirements of the ESA. See, e.g., In re Klamath Irrigation
Dist., 69 F.4th at 938 (“[U]nder the Endangered Species Act
. . . , Reclamation must maintain specific water levels in
Upper Klamath Lake and instream flows in the Klamath
River.”); KID II, 48 F.4th at 940 (“Reclamation is also
responsible for managing the Klamath Project in a manner
consistent with its obligations under the ESA.”); Baley, 942
F.3d at 1323 (“As noted, the Klamath Project is subject to
the requirements of the ESA. In addition, . . . the Ninth
Circuit has declared the rights of Klamath Project water
26 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
users to be subservient to the requirements of the ESA.”);
Klamath Irrigation Dist., 635 F.3d at 508 (“In light of its
dual purposes of serving agricultural uses and providing for
the needs of wildlife, the Klamath Project is subject to the
requirements of the Endangered Species Act.”). Thus,
Patterson is still good law, and its holding continues to serve
as controlling precedent for Klamath Basin litigation.
2
Section 7(a)(2) of the ESA applies to “agency actions.”
The ESA defines agency action as “any action authorized,
funded, or carried out by [a federal] agency.” 16 U.S.C.
§ 1536(a)(2). The implementing regulations limit Section
7’s application to only actions “in which there is
discretionary Federal involvement or control” to benefit a
protected species. 50 C.F.R. § 402.03; see also Turtle Island
Restoration Network v. Nat’l Marine Fisheries Serv., 340
F.3d 969, 977 (9th Cir. 2003).
Contending that the Bureau of Reclamation does not
retain “discretion” to act for the benefit of protected species
in this case, KWUA and KID urge us to conclude that
Patterson is no longer controlling precedent based on two
more recent cases: one from the Supreme Court (Nat. Ass’n
of Home Builders v. Defs. of Wildlife, 551 U.S. 644 (2007))
and one from our Circuit (Nat. Res. Def. Council v. Haaland,
102 F.4th 1045 (9th Cir. 2024)). We disagree with KWUA’s
and KID’s interpretation of these cases, as well as the
dissent’s interpretation of these cases, and are not persuaded
that either case affects Patterson’s square holding that the
ESA applies to the Klamath Project.
First, in Home Builders, the Supreme Court held that
Section 7(a)(2) of the ESA applies only to discretionary
agency actions and does not apply to actions that an agency
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 27
is required to undertake by a conflicting federal statute. 551
U.S. at 666–67. But, in Home Builders, the issue was
whether Section 7(a)(2) of the ESA applied to the
Environmental Protection Agency’s (“EPA’s”) decision
under Section 402(b) of the Clean Water Act to approve a
state National Pollution Discharge Elimination System
(“NPDES”) permitting program. Id. Although the Supreme
Court recognized that Section 7(a)(2) would apply to the
decision because the NPDES approval decision was an
“agency action,” the Court also noted that complying with
Section 7(a)(2) of the ESA would effectively amend or
repeal Section 402(b) of the Clean Water Act because it
would add an additional criterion to an otherwise “exclusive
list.” Id. at 662–64. Thus, the Court held that the non-
discretionary “transfer of NPDES permitting authority”
under Section 402(b) of the Clean Water Act was not subject
to Section 7(a)(2) of the ESA. Id. at 673.
Even in Home Builders, the baseline assumption was that
Section 7(a)(2) applies to an “agency action.” But, Home
Builders recognized a narrow exception to this rule: When
another federal statute mandates an action that cannot be
harmonized with the consultation requirement in Section
7(a)(2) of the ESA, then the federal agency has no discretion
to consider the protection of listed species in carrying out the
other incompatible statutory mandate. See id. at 666, 673.
After Home Builders, “the real question . . . is what counts
as a non-discretionary action, to which [Section] 7(a)(2)
does not apply.” San Luis & Delta-Mendota Water Auth. v.
Jewell, 747 F.3d 581, 639 (9th Cir. 2014).
In several cases arising after Home Builders, we have
distinguished Home Builders and required compliance with
the ESA’s consultation provision when another federal
statute did not require action that conflicted with the
28 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
consultation provision of the ESA. See Nat’l Wildlife Fed’n
v. Nat’l Marine Fisheries Serv., 524 F.3d 917, 928 (9th Cir.
2008) (distinguishing Home Builders from circumstances of
“broad mandates which do not direct agencies to perform
any specific nondiscretionary actions, but rather, are better
characterized as directing the agencies to achieve particular
goals”); see also Jewell, 747 F.3d at 640 (distinguishing
Home Builders and concluding that there was no “statutory
obligation that Congress has imposed on [the Bureau of]
Reclamation that is both mandatory and inconsistent with its
obligations under the ESA”); Karuk Tribe, 681 F.3d at 1024
(“[T]o avoid the consultation obligation, an agency’s
competing statutory mandate must require that it perform
specific non[-]discretionary acts rather than achieve broad
goals.” (emphasis added)).
We have thus held, after Home Builders, that an agency
retains discretion and the duty to comply with Section
7(a)(2) of the ESA unless the enabling legislation for the
agency’s action is both “mandatory and inconsistent with
[the agency’s] obligations under the ESA.” Jewell, 747 F.3d
at 640 (emphasis added). And even when a statute compels
a certain action, we have held that the ESA still applies if the
statute can be construed in harmony with the ESA’s
language. See, e.g., San Luis Obispo Coastkeeper v. Santa
Maria Valley Water Conservation Dist., 49 F.4th 1242, 1247
(9th Cir. 2022); see also Karuk Tribe, 681 F.3d at 1024 (“An
agency ‘cannot escape its obligation to comply with the ESA
merely because it is bound to comply with another statute
that has consistent, complementary objectives’ . . . The
competing statutory objective need only leave the agency
‘some discretion.’” (internal citation omitted)). By contrast,
when a statute imposes a “broad mandate,” the agency’s
actions are “discretionary” for purposes of Section 7(a)(2) of
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 29
the ESA because the agency retains at least some discretion
to act for the benefit of listed species. Nat’l Wildlife Fed’n,
524 F.3d at 929; see also Jewell, 747 F.3d at 640; Home
Builders, 551 U.S. at 665 (action is discretionary unless the
enabling statute specifically prohibits the agency from
considering “extrastatutory factors”).
Here, there is no such conflict as was present in Home
Builders because there is no statutory mandate in the
Reclamation Act that imposes a specific and non-
discretionary action conflicting with the ESA. The
Reclamation Act authorizes and directs the construction of
“irrigation works,” but does not otherwise specify any
mandates. See 43 U.S.C. § 411. Instead, the Reclamation
Act gives the Secretary of the Interior a broad authority to
“perform any and all acts and to make such rules and
regulations as may be necessary and proper for the purpose
of carrying out the provisions of [the Reclamation Act] into
full force and effect.” 43 U.S.C. § 373. Nothing in the
Reclamation Act requires the Bureau of Reclamation to
perform any specific non-discretionary activities in direct
conflict with the ESA. Instead, the directives of the
Reclamation Act are “better characterized” as provisions
“directing [the Bureau of Reclamation] to achieve particular
goals.” Nat’l Wildlife Fed’n, 524 F.3d at 928. We conclude
that the facts of this case are unlike those in Home Builders,
and nothing in Home Builders affects our holding in
Patterson that the ESA applies to the Klamath Project or
renders that holding inapplicable to this case.
3
Next, KID and KWUA contend that our recent holding
in Haaland confirms that the Bureau of Reclamation does
not have “discretion” under the water contracts to release
30 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
water from Upper Klamath Lake to benefit endangered
species. This contention is unpersuasive and misconstrues
Haaland. Haaland did not retreat from this court’s case law
that the Bureau of Reclamation must comply with the ESA
when operating the Klamath Project.
a
The relevant portion of Haaland involved three claims
about the Bureau of Reclamation’s renewal of “settlement
contracts,” or contracts that determined water delivery for
users that had senior water rights pre-dating the United
States’ water rights on the Sacramento River within
California’s Central Valley Project. 102 F.4th at 1056. The
“agency action” to which the consultation duty under
Section 7(a)(2) of the ESA applied in that case was the
Bureau of Reclamation’s execution of the renewed
settlement contracts. Id. at 1057. Two of the plaintiff’s
claims in Haaland argued that the Bureau of Reclamation
violated its consultation duty under Section 7(a)(2) of the
ESA when it renewed the contracts because it relied on later-
invalidated BiOps and did not conduct a proper consultation.
Id. at 1066–72. We upheld the renewal. Id.
In the third claim (described in the opinion as the fifth),
which relates to the part of the opinion on which KID and
KWUA rely, the plaintiff contended that the Bureau of
Reclamation violated the ESA by implementing the
settlement contracts because it did not reinitiate consultation
in light of the new information about endangered or
threatened species that was discovered after the Bureau of
Reclamation had previously renewed the contracts. Id. at
1062. This factual distinction between execution and
implementation matters in two ways.
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 31
First, under the ESA, the duty to reinitiate consultation
arises after the agency has already engaged in formal or
informal consultation under Section 7(a)(2). An agency
must reinitiate consultation with the relevant wildlife
agencies “where discretionary Federal involvement or
control over the action has been retained or is authorized by
law and . . . new information reveals effects of the action that
may affect listed species or critical habitat in a manner or to
an extent not previously considered.” 50 C.F.R.
§ 402.16(a)(2). Stated another way, new relevant
information may require reevaluation of the agency’s
position, but this assumes that the agency has already
engaged in consultation under Section 7(a)(2) of the ESA.
Second, in making its claim based on the agency’s failure
to reinitiate consultation, the plaintiff in Haaland explicitly
pled that the Bureau of Reclamation “retain[ed]
discretionary federal involvement and control over the
implementation of the [settlement] contracts,” and that
discretion created its duty to reinitiate consultation after
learning of new evidence of impact on threatened or
endangered species. Whether the Bureau of Reclamation
had a discretionary duty to reinitiate consultation in
implementing the settlement contracts necessarily turned on
the terms of those contracts. Id. at 1075–77.
In reviewing the district court’s ruling that the plaintiff
did not state a claim upon which relief could be granted as
to the reinitiation claim, the panel majority held that the
contract provisions at issue did not give the Bureau of
Reclamation discretion to take measures to benefit the
endangered salmon species at issue. Id. at 1077; but see id.
at 1081–83 (Gould, J. dissenting in part) (interpreting two
contract provisions as giving the Bureau of Reclamation
sufficient discretion to reinitiate consultation).
32 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
But there, the question at issue was explicitly framed
under the terms of the contracts because we were
determining whether the Bureau of Reclamation retained
discretion under specific contract provisions to reinitiate
consultation under the ESA in implementing the renewed
settlement contracts after the original Section 7 consultation
duty had previously been applied to the execution of the
renewed contracts. Id. at 1058. In our holding, we relied on
Ninth Circuit cases holding that when an agency no longer
has federal control over a private action, there is no
“discretion” to trigger duties under Section 7(a)(2) of the
ESA. For example, in Sierra Club v. Babbitt, we held that
Section 7(a)(2) did not apply to project action undertaken by
a private party pursuant to a Right-of-Way (“ROW”) that
had been granted before the ESA was enacted because the
federal agency no longer had discretion to impact the private
party’s execution of the project for the benefit of a protected
species. 65 F.3d 1502, 1511–12 (9th Cir. 1995). Instead,
the federal agency’s involvement in the project ended when
it issued the ROW. Id. at 1508–12. Similarly, in
Environmental Protection Information Center v. Simpson
Timber Co. (“EPIC”), we held that FWS did not retain
sufficient discretionary control over an incidental take
permit it had issued to a private company to compel FWS to
reinitiate consultation for the benefit of species beyond the
species specifically mentioned in the permit. 255 F.3d 1073,
1079–83 (9th Cir. 2001). There again, we looked at the
terms of the specific agreements at issue to determine the
scope of the agency’s discretion. Id.
In contrast, the question here is broader than the question
of reinitiation of consultation at issue in Haaland: In this
case, we must decide whether the ESA applies to the Bureau
of Reclamation’s operation of the Klamath Project to
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 33
manage water levels within Upper Klamath Lake and
releases to the Klamath River to protect endangered and
threatened species. There is no issue of contract
interpretation here.
In Haaland, there was no dispute that Section 7(a)(2) of
the ESA applied to the Bureau of Reclamation’s operation
of the Central Valley Project. Nor could there have been.
We recognized in Haaland that Congress enacted legislation
stating explicitly that the Bureau of Reclamation must
comply with federal law, including the ESA, when operating
the Central Valley Project and the Bureau of Reclamation
had long complied with the ESA in its operation of the
Central Valley Project. See 102 F.4th at 1057 (“In 1992,
Congress enacted the Central Valley Project Improvement
Act (CVPIA) . . . , which required that the Secretary of the
Interior operate the CVP in compliance with federal and
state law.”); see also id. at 1056 (recognizing the Bureau of
Reclamation’s “decades-long history of obtaining the
necessary environmental approvals” to operate the Central
Valley Project).
Moreover, two of the plaintiff’s claims in Haaland were
predicated on the assumption that the ESA applies to the
Central Valley Project. The first of these claims contended
that FWS acted arbitrarily and capriciously and violated its
obligations under the ESA when it relied on a particular
BiOp and did not correctly analyze the effects of the contract
renewals on endangered species. Id. at 1065. We rejected
that argument, not because the ESA did not apply to federal
water management of the Central Valley Project, but
because we determined on the merits that “FWS’s
consultation on the renewal of the Settlement Contracts
considered the full scope of the proposed action before
34 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
determining that renewal of those Contracts would not likely
adversely affect the delta smelt.” Id. at 1071.
Similarly, the plaintiff’s second claim was that the
Bureau of Reclamation violated its duties under the ESA by
relying on what the Bureau of Reclamation should have
known was an inadequate consultation with FWS. Id. at
1071–73. We rejected that argument, again not because the
ESA was inapplicable to the Central Valley Project, but
because we determined on the merits that the consultation
was adequate under the ESA. Id. And, although the dissent
contends that these claims were the plaintiff’s APA claims,
and not its ESA claim, see Dissenting Op. at 48, this is a
“distinction without a difference,” see Dissenting Op. at 47,
because all of the plaintiff’s claims were premised on alleged
violations of the ESA and the assumption that the ESA
applied to the Central Valley Project. See id. at 1054. There
is no meaningful difference as to whether the plaintiff
alleged that the ESA was violated because the Bureau of
Reclamation made conclusions the plaintiff contended were
contrary to the ESA and therefore arbitrary under the APA,
or because the plaintiff contended directly that the ESA
required reinitiation of consultation duties; all these claims
assumed that the ESA applied.
In sum, nothing in Haaland suggests that Section 7(a)(2)
of the ESA does not apply to the Klamath Project.
b
Furthermore, under the parties’ contracts in this case, the
Bureau of Reclamation retains discretion because the vast
majority of contracts here are premised on water availability;
only one contract guaranteed a specific quantity of water to
a particular water user; and the Bureau of Reclamation has
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 35
an ongoing obligation to determine water availability for
Project users in the Klamath Project. 6
Under these contracts, unavailability of water can be a
result of either physical unavailability caused by an
inadequate water flow, or by legal unavailability as, for
example, when a legal obligation requires use of water for
other purposes. See O’Neill, 50 F.3d at 682–84 (holding that
“unavailability of water resulting from the mandates of valid
[post-contract] legislation”—including the ESA—
unambiguously “constitute[d] a shortage by reason of ‘any
other causes’” and excused contract performance); see also
Baley, 134 Fed. Cl. at 627; Nat. Res. Def. Council v.
Houston, 146 F.3d 1118, 1126 (9th Cir. 1998) (recognizing
that an agency “can deliver less than a contractually agreed
upon amount of water in order to comply with subsequently
enacted federal law”).
Our reasoning in Haaland that similar shortage
provisions were not, in circumstances there, a source of
discretion requiring reinitiation of consultation is specific to
the nature of the contracts in Haaland, and the distinction
from our case matters in important ways. In Haaland, the
contracts at issue were settlement contracts resolving
disputes between the Bureau of Reclamation and
Sacramento River water users who had preexisting water
rights pre-dating the federal Reclamation statutes and were
senior to the rights held by the United States for the Central
6
That the Bureau of Reclamation has non-discretionary duties in one
contract to the Van Brimmer Ditch Company, which had preexisting
rights, does not allow the Bureau of Reclamation to “ignore potential
jeopardy risks” for endangered or threatened species within the entire
Klamath Project. Nat. Wildlife Fed’n, 524 F.3d at 928; see also Jewell,
747 F.3d at 638–39.
36 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
Valley Project. 102 F.4th at 1056. Those contracts
specifically “quantifie[d] the total amount of water that
could be diverted annually” by the senior rights holders, and
they contained shortage provisions for periods of reduced
water supply. Id. at 1058. When those contracts were about
to expire, the Bureau of Reclamation renewed the contracts.
Id.
In seeking to dismiss the plaintiff’s claim that the Bureau
of Reclamation had to reinitiate consultation on the effect of
the continued implementation of the renewed settlement
contracts, the Bureau of Reclamation contended that these
liability provisions did not give it the authority to alter the
terms of the executed renewed settlement contracts on the
stipulated diversions of water for the senior water rights
holders. Id. at 1075–76. We agreed with that contention
because the terms of the contracts did not give the Bureau of
Reclamation discretion, after the contracts had been
executed, to take additional measures that would benefit the
endangered species. Id.
But here, as explained, most contracts in the Klamath
Project are water supply contracts under which the Bureau
of Reclamation has ongoing obligations to apportion water
equitably. In cases with similar circumstances, we have held
that shortage provisions unambiguously excuse the Bureau
of Reclamation’s obligations to furnish water when it is
unavailable due to “the mandates of valid legislation” or
other causes. O’Neill, 50 F.3d at 683–84; see also Patterson,
204 F.3d at 1213 (following O’Neill in construing Klamath
Project contracts for purposes of whether the ESA applied).
Finally, even in Haaland, we recognized that in the
underlying agency action—the renewal of the settlement
contracts—the Bureau of Reclamation “was obliged ‘to
engage in Section 7(a)(2) consultation prior to renewing the
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 37
[s]ettlement [c]ontracts.’” Haaland, 102 F.4th at 1061
(quoting Nat. Res. Def. Council v. Jewell, 749 F.3d 776, 785
(9th Cir. 2014)).
Haaland’s holding that the terms of the contracts at issue
in that case did not give the Bureau of Reclamation sufficient
discretion to require reinitiation of consultation when
implementing the renewed settlement contracts does not
bear on the question before us today, which is whether the
ESA applies to the Klamath Project. Nothing in Haaland
suggests that we should reevaluate Patterson, which held
that that ESA applied retroactively to the Bureau of
Reclamation’s water contracts in the Klamath Project. Nor
are we persuaded that recent case law compels a conclusion
that the Bureau of Reclamation has no discretion to comply
with the ESA in operating the Klamath Project. Indeed,
precedent suggests, to the contrary: that the Bureau of
Reclamation must comply with the ESA when operating the
Klamath Project. 7
B
Beyond the issue of whether the ESA applies to the
Klamath Project, KID contends that the district court’s
ruling that the ESA preempts OWRD’s order was a “judicial
taking” of KID’s property interests in its water rights. We
disagree.
Four justices of the Supreme Court have recognized that
a state court might cause a “judicial taking,” if, as a matter
7
Because the ESA applies to the Bureau of Reclamation’s operation of
the Klamath Project under existing case law, we do not consider the
parties’ alternative arguments as to Tribal water rights. We also decline
to conclude that there was error in the district court’s ruling striking
KWUA’s arguments about Tribal rights, because the district court
explicitly reserved that issue for phase two of the litigation.
38 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
of adjudicating state-law property rights, it “declares that
what was once an established right of private property no
longer exists.” Stop the Beach Renourishment, Inc. v.
Florida Dep’t of Env’t Prot., 560 U.S. 702, 715 (2010)
(plurality opinion). Because such a claim has not been
recognized by a majority of Justices on the United States
Supreme Court, we question its availability. Id. at 733–45.
But, even if such a claim was clearly recognized, it would
not apply here. In deciding whether the ESA applies to the
Bureau of Reclamation’s operation of the Klamath Project,
neither we nor the district court have adjudicated any water
rights. No party has sought, nor have we or the district court
ruled on any Tribal rights applicable here or on any other
property rights beyond the question of the ESA’s
applicability. Our answer to the ESA question before us
today does not adjudicate property rights. See Patterson,
204 F.3d at 1214 n.3 (“Our decision in this case and that of
that district court relate only to questions involving the
Bureau[] [of Reclamation’s] operation and management of
the Project, and not to the relative rights of others not before
the court to the use of the waters of the Basin.”).
C
Finally, KID’s jurisdictional arguments that the federal
courts are barred from deciding the crossclaim under the
doctrines of prior exclusive jurisdiction and Colorado River
abstention are without merit for the reasons stated below.
1
First, KID contends that the state court hearing the
Klamath Basin Adjudication has “prior exclusive
jurisdiction” that bars federal courts from deciding the
Federal Appellees’ crossclaim on the ESA’s applicability to
the Klamath Project. KID emphasizes that if “a state or
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 39
federal court has taken possession of property, or by its
procedure has obtained jurisdiction over the same, then the
property under that court’s jurisdiction is withdrawn from
the jurisdiction of the courts of the other authority as
effectually as if the property had been entirely removed to
the territory of another sovereign.” Sexton v. NDEX West,
LLC, 713 F.3d 533, 536 (9th Cir. 2013) (internal quotation
marks and citations omitted).
We have previously rejected that argument. In its 2021
lawsuit, KID sought a preliminary injunction in state court
to prevent the Bureau of Reclamation from releasing water
from Upper Klamath Lake to comply with the ESA. After
the United States removed the action to federal district court
for the District of Oregon, KID petitioned our Court for a
writ of mandamus seeking to remand the issue back to the
state court because KID contended that the state court had
prior exclusive jurisdiction. See In re Klamath Irrigation
Dist., 69 F.4th at 940. We rejected that argument and denied
the writ of mandamus, holding that KID mischaracterized its
lawsuit by claiming it was an administration of the Klamath
Basin Adjudication. Id. at 944–45; see also KID II, 48 F.4th
at 946–47 (recognizing that KID’s lawsuit was properly
understood to be a challenge under the Administrative
Procedure Act to the Bureau of Reclamation’s ESA
authority). Although In re Klamath Basin Irrigation District
does not bind us because it was decided under the more
deferential “clear error” standard of review used for review
of a petition for a writ of mandamus, we conclude that its
reasoning is persuasive in resolving this case. See In re
Klamath Irrigation Dist., 69 F.4th at 941–44.
The doctrine of prior exclusive jurisdiction does not
apply here because the question before us today—whether
the Bureau of Reclamation’s obligations under the ESA
40 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
apply to the Klamath Project—does not involve the
adjudication or administration of any provisionally-
determined water rights. In complying with the ESA, the
Bureau of Reclamation is not claiming water rights, and the
Klamath Basin Adjudication did not adjudicate the Bureau
of Reclamation’s ESA obligations.
The United States is participating in the Klamath Basin
Adjudication pursuant to the McCarran Amendment, 43
U.S.C. § 666(a), which “waives the United States’ sovereign
immunity for the limited purpose of allowing the
Government to be joined as a defendant in a state
adjudication [or administration] of water rights.” United
States v. Adair, 723 F.2d 1394, 1400 n.2 (9th Cir. 1983). But
the McCarran Amendment does not “authorize private suits
to decide priorities between the United States and particular
claimants[.]” In re Klamath Irrigation Dist., 69 F.4th at 942
(citation omitted).
There is no dispute that the state court has jurisdiction to
adjudicate the United States’ water-rights claims against
other claimants in Oregon and that the provisionally-
determined rights decided in ACFFOD are enforceable
under Oregon law, pending judicial review. See Oregon, 44
F.3d at 765–70; OR. REV. STAT. §§ 539.130(4), 539.170;
Hawkins, 991 F.3d at 222. But, OWRD in the ACFFOD did
not determine the Bureau of Reclamation’s ESA obligations
because those obligations are not governed by Oregon law.
The state court reviewing the Klamath Basin Adjudication
has no jurisdiction over the federal question whether the
ESA applies or in determining the scope of the Bureau of
Reclamation’s obligations under federal law.
Because this case does not present an adjudication of
water rights and because the doctrine of prior exclusive
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 41
jurisdiction cannot expand the subject matter jurisdiction of
a state court to adjudicate issues beyond its jurisdiction, we
hold that the doctrine of prior exclusive jurisdiction does not
apply.
2
Second, KID contends that the district court abused its
discretion when it denied KID’s motion to stay based on the
doctrine of Colorado River abstention. We conclude that
this argument is without merit. Under the doctrine of
Colorado River abstention, a federal court may decline to
adjudicate federal water rights claims as against other
claimants, where relative rights in a common source are
being comprehensively adjudicated in a state-court
McCarran Amendment proceeding. See Colorado River
Water Conservation Dist. v. United States, 424 U.S. 800,
809–21 (1976). The question before us today and that was
presented by the United States’ crossclaim is whether and
how the ESA applies to the Klamath Project. That question
does not involve the establishment or adjudication of a
federal water rights claim, and the ESA issue was not
adjudicated in the Klamath Basin Adjudication. See In re
Klamath Irrigation Dist., 69 F.4th at 941. We hold that there
is no reason for the district court to have abstained. 8
IV. CONCLUSION
Following Ninth Circuit precedent in Patterson and its
progeny, we affirm the district court’s holding that the ESA
8
We deny KID’s motion to take judicial notice (Dkt. No. 25) because
the documents on which judicial notice is requested are either duplicative
of those already in the record or are irrelevant to our analysis. We also
deny KID’s motion to certify questions of law to the Oregon Supreme
Court (Dkt. Nos. 116 & 117) because no questions of state law remain
relevant to the appeal.
42 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
applies to the Bureau of Reclamation’s operation of the
Klamath Project. We therefore affirm the district court’s
ruling in phase one. We also hold that the district court’s
ruling did not constitute a “judicial taking” and that the
district court had jurisdiction to decide the crossclaim.
AFFIRMED.
R. NELSON, Circuit Judge, dissenting:
I agree with the majority’s analysis of the judicial taking
and Colorado River abstention issues. But its answer to
whether § 7 of the ESA applies here fails to reckon with
Supreme Court and circuit precedent. The majority
repeatedly asks whether the ESA applies to the Klamath
Project. As a general matter, that is a truism. But the
specific question—after National Association of Home
Builders v. Defenders of Wildlife, 551 U.S. 644 (2007), and
Natural Resources Defense Council v. Haaland, 102 F.4th
1045 (9th Cir. 2024)—is whether the contracts allow the
Bureau of Reclamation any non-discretionary duty.
Haaland, which issued after briefing was complete, clarified
how we are supposed to approach this analysis. It foreclosed
finding discretion in contractual provisions that limit
liability in the event of breach because of legal
unavailability—nearly the majority’s entire argument.
The majority fails to grapple with the terms of those
contracts. And it acknowledges that one of these contracts
does have non-discretionary duties. Maj. Op. at 35 n.6.
Under a proper analysis of the contracts, which Haaland
compels, a non-discretionary contractual duty imposes no
ESA obligation. And since these contracts impose non-
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 43
discretionary duties, I would largely reverse the district court
and remand for a proper analysis consistent with Haaland.
As a result, I respectfully dissent.
I
A
Section 7(a)(2) of the ESA mandates that all federal
agencies “‘insure that any action authorized, funded, or
carried out by such agency . . . is not likely to jeopardize the
continued existence’ of any endangered or threatened
species or result in the destruction of critical habitat.” Env’t
Prot. Info. Ctr. v. Simpson Timber Co., 255 F.3d 1073, 1075
(9th Cir. 2001) (quoting 16 U.S.C. § 1536(a)(2)). Over two
decades ago, we held that because Reclamation “retain[ed]
some measure of control” over the operation of the Link
River Dam, “the ESA generally applies to” contracts like
those here. Klamath Water Users Protective Ass’n v.
Patterson, 204 F.3d 1206, 1213 (9th Cir. 1999). The
Patterson holding that the ESA applies relied solely on the
facts that “Reclamation retain[ed] authority to manage the
Dam” and remained “the owner in fee simple of the Dam.”
Id.
But eight years later, the Supreme Court adopted a new
legal framework to determine whether the ESA applies to
agency action. In Home Builders, the Court explained that
ESA § 7 “covers only discretionary agency actions and does
not attach to actions . . . that an agency is required by statute
to undertake once certain specified triggering events have
occurred.” 551 U.S. at 669. Heeding Home Builders, we
have held that ESA § 7(a)(2) “is triggered so long as a
federal agency retains ‘some discretion’ to take action for the
benefit of a protected species.” Nat. Res. Def. Council v.
44 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
Jewell, 749 F.3d 776, 784 (9th Cir. 2014) (quotation
omitted) (Jewell I).
A year after the district court’s order below, we also
clarified that “once the agency has entered into a legally
binding agreement, it has such discretion only to the extent
permitted by the agreement’s terms.” Haaland, 102 F.4th at
1074. By reviewing the contractual terms of those binding
agreements, we decided the agencies had no discretion. Id.
In Haaland, environmental groups argued that contractual
provisions limiting Reclamation’s liability because of legal
unavailability of water gave Reclamation discretion to act on
behalf of endangered species. Id. We rejected that argument
because acting in compliance with legal unavailability is not
discretionary. Rather, “[t]he duty to comply with mandatory
legal obligations is not a source of discretion.” Id. at 1075–
76 (citing Home Builders, 551 U.S. at 669). Haaland’s
holding that legal obligations such as ESA § 7 do not equate
to discretion undermines the majority’s reasoning.
B
The majority argues that Home Builders and Haaland are
inapplicable and relies instead on Patterson’s general
holding that the ESA applies broadly to Reclamation’s
operation of the Klamath Project. That position is untenable.
After Home Builders and Haaland, Patterson is clearly
irreconcilable for the generalized proposition that
Reclamation’s control triggers ESA § 7 obligations in all
circumstances relating to the Klamath Project.
In Patterson, among other things, the irrigators argued
that Reclamation did not control the Link River Dam and the
ESA did not apply to its operation. 204 F.3d at 1212–13.
We held that Reclamation’s operation of the dam constituted
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 45
agency action and so “the ESA generally applies to the
contract.” Id. at 1213.
Yurok and Federal Appellees focus on this conclusion in
Patterson to argue that the ESA must apply to Reclamation’s
operation of the dam. But when “an intervening Supreme
Court decision undermines an existing precedent” and “both
cases are clearly on point,” then “a three judge panel of this
court may reexamine our precedent to determine its
continuing authority.” Landreth v. C.I.R., 859 F.2d 643, 648
(9th Cir. 1988).
The general conclusion reached in Patterson and relied
on by the majority does not account for intervening
precedent in Home Builders and its progeny. In Patterson,
we held “that the district court did not err in concluding that
Reclamation has the authority to direct [Link River] Dam
operations,” the same dam here, “to comply with the ESA.”
204 F.3d at 1213. But Patterson did not discuss the agency’s
discretion, only its ownership of and authority over the Dam.
Id. And Home Builders compels us to determine whether the
agency has sufficient discretion to act on behalf of
endangered or threatened species despite Congressionally
mandated action—here the congressionally authorized and
approved contracts. See Home Builders, 551 U.S. at 669; see
also San Luis & Delta-Mendota Water Auth. v. Jewell, 747
F.3d 581, 639 (9th Cir. 2014) (Jewell II); Haaland, 102 F.4th
at 1076 (“The duty to comply with mandatory legal
obligations is not a source of discretion.” (citing Home
Builders, 551 U.S. at 669)). Because Patterson generally
held that all Klamath Project operations are subject to ESA
§ 7 without discussion of the agency’s specific discretion,
we must revisit that portion of Patterson discussing the
ESA’s applicability considering Home Builders. To the
extent that “[t]he reasoning or theory of” Patterson is
46 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
“clearly irreconcilable with the reasoning or theory” of
Home Builders, that portion of Patterson is no longer good
law. Miller v. Gammie, 335 F.3d 889, 893 (9th Cir. 2003).
The majority emphasizes that Home Builders dealt with
statutory mandates. Maj. Op. at 27 (“When another federal
statute mandates an action . . . then the federal agency has
no discretion to consider the protection of listed species in
carrying out the other incompatible statutory mandate.”)
(emphasis in original). But whether the mandate is statutory
or contractual is not the primary question. “The real
question after Home Builders is what counts as a non-
discretionary action, to which § 7(a)(2) does not apply.”
Jewell II, 747 F.3d at 639. “The agency lacks discretion only
if another legal obligation makes it impossible for the
agency to exercise discretion for the protected species’
benefit,” not just statutory obligations like the Reclamation
Act. Jewell I, 749 F.3d at 784 (emphasis added). Patterson
does not connect its holding that the ESA applies to the Link
River Dam to any discussion of agency discretion as
subsequently required by Home Builders. Under
Patterson’s reasoning, mere control of the dam was enough
to trigger ESA § 7. 204 F.3d at 1213; see also Maj. Op. at
24–26. In this sense, Patterson’s reasoning is “clearly
irreconcilable with” the Supreme Court’s reasoning in Home
Builders. Miller, 335 F.3d at 893.
The problem is that in Patterson we generally concluded
that the ESA applied to Link River Dam operations only
because the ESA was enacted to “halt and reverse the trend
toward species extinction, whatever the cost.” 204 F.3d at
1213 (quoting O’Neill v. United States, 50 F.3d 677, 686 (9th
Cir. 1997)). Patterson relied on Tennessee Valley Authority
v. Hill, 437 U.S. 153, 184 (1979), for this holding. But the
majority fails to note that Patterson’s broad reliance on
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 47
Tennessee Valley Authority was disclaimed by the Supreme
Court in Home Builders. 551 U.S. at 669–70. The Court
noted that Tennessee Valley Authority “had no occasion to
answer the question” whether the ESA applied after new
ESA regulations were adopted. Since Tennessee Valley
Authority, the EPA had adopted a regulation clarifying that
ESA § 7 only applies to discretionary agency action. Plus,
the agency action at issue in Tennessee Valley Authority,
“while expensive, was also discretionary.” Id. at 670. Thus,
since Home Builders, application of ESA § 7(a)(2) hinges on
the agency’s discretion. And Haaland leaves no doubt that
this framework applies that framework to contractual
language.
The majority argues that Haaland is distinguishable
because the agency action is different; in Haaland the action
was Reclamation’s “execution of the renewed settlement
contracts” and here, the action is to calculate the sums to be
released. Maj. Op. at 30–33. That is a distinction without a
difference. Just as in Haaland, Reclamation “entered into a
legally binding agreement,” namely, the “executed
contract[s.]” 102 F.4th at 1074. Therefore, Federal
Appellees need to show agency discretion independent of
legal unavailability in its calculation of who is to receive
what amount of water. See id. at 1076 (finding contractual
provisions do not “give Reclamation discretion to take
measures that would inure to the benefit” of the protected
species (emphases added)). Just like in Haaland, “whether
the Bureau of Reclamation [has] a discretionary duty . . .
necessarily turn[s] on the terms of [these] contracts.” Maj.
Op. at 31. And just as in Haaland, the majority “fails to
explain how such compliance with mandatory legal
obligations can be a source of discretion.” 102 F.4th at 1076
n.12.
48 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
The majority casts Haaland as irrelevant because “there
was no dispute that Section 7(a)(2) of the ESA applied to the
Bureau of Reclamation’s operation of the Central Valley
Project.” Maj. Op. at 33. It suggests that we rejected the
plaintiff’s claims in Haaland “because we determined on the
merits that FWS’s consultation on the renewal of the
Settlement Contracts considered the full scope of the
proposed action.” Id. (quotation omitted). What the
majority neglects to recognize is that this language comes
from Haaland’s discussion of the plaintiff’s APA claim, not
its ESA claim. We rejected the ESA claim in Haaland
because “the renewed Settlement Contracts [did] not give
Reclamation the discretion to take measures that would
benefit the” endangered species. 102 F.4th at 1077. The
majority’s suggested difference is unrelated to the question
Haaland demands we answer (and which the majority thinks
has no relevance here): whether the legally enforceable
contracts give Reclamation discretion. See id. at 1074.
Whether ESA § 7 is implicated at the contract renewal phase
provides no guidance on whether § 7 is implicated under
extant operative contracts.
The majority contends that “nothing in Haaland suggests
that Section 7(a)(2) of the ESA does not apply to the
Klamath Project.” Maj. Op. at 34. But Haaland does
suggest that “we must determine whether Reclamation
retained some discretion to take measures that would inure
to the benefit of a protected species,” before deciding
whether § 7’s requirements apply based on case law pre-
dating Home Builders. 102 F.4th at 1074. And the majority
fails to conduct that analysis.
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 49
II
The majority argues that “[t]here is no issue of contract
interpretation here.” Maj. Op. at 33. But as even the dissent
noted in Haaland, “[w]e look to the terms of the contract to
determine whether the agency retains the power under the
contract to impose measures to protect the species in
question.” 102 F.4th at 1082 (Gould, J., concurring in part
and dissenting in part) (cleaned up). And these contracts do
not provide the agency discretion.
A
The primary argument is that contractual provisions
disclaiming liability during shortages give Reclamation
discretion to act for the benefit of the suckers and salmon.
These are best described as force majeure clauses. See
Haaland, 102 F.4th at 1075. For instance, KID’s 1954
contract explains that “[o]n account of drought or other
causes, there may occur at times a shortage in the quantity of
water available in Project reservoirs.” In that circumstance,
“in no event shall any liability accrue against the United
States.” Tulelake Immigration District’s (TID) 1956
contract contains the same shortage provision to KID’s. So
too with the later-entered Warren Act contracts, which all
disclaim liability for water shortages caused by drought or
any “other cause.”
These clauses, it is argued, trigger the ESA because they
grant discretion to limit water-flow in the event of “legal
unavailability.” These provisions likely do disclaim liability
for legal unavailability. See O’Neill, 50 F.3d at 684. But our
precedent forecloses that disclaimers of liability based on
shortages are sources of discretion.
50 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
In Haaland, 102 F.4th at 1075, we rejected this exact
argument. We concluded that two materially identical
contractual provisions did not create discretionary authority
triggering review under ESA § 7(a)(2). First, “if there is a
shortage of Project Water because of actions taken by the
Contracting Officer to meet legal obligations,” then “no
liability shall accrue against the United States.” Id. And
second, “[t]he United States assumes no
responsibility . . . for or on account of . . . [a]ny
damage . . . caused by a shortage of water” due to “errors in
operation, drought, or unavoidable causes.” Id. at 1076
(cleaned up).
We held that those provisions do “not give Reclamation
discretion to alter the Settlement Contract to benefit a listed
species.” Id. at 1075. Instead, they address circumstances in
which, because of an unavoidable shortage, Reclamation has
“no discretion to act” at all. Id. at 1076.
As we explained, these provisions were “force majeure”
clauses “that limit[] Reclamation’s liability for damages in
the event legal obligations are imposed on Reclamation that
require it to breach the Settlement Contracts by reducing the
diversion of water.” Id. “[N]othing about” similar
“provision[s] require[] the Bureau [of Reclamation] to take
actions to protect” endangered species. Jewell I, 749 F.3d at
783; see also Haaland, 102 F.4th at 1075–76 (discussing the
“similar shortage provision[s]” from Jewell I, 749 F.3d at
783). These provisions are “permissive” and “merely
absolve the United States of liability if there is a water
shortage.” Haaland, 102 F.4th at 1075–76 (quoting Jewell
I, 749 F.3d at 783). Under that same reasoning, these
provisions do not provide Federal Appellees discretionary
authority.
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 51
Nor does the majority’s discussion of O’Neill support the
proposition that these force majeure clauses give
Reclamation discretion to act on behalf of the suckers and
salmon. There is no friction between Haaland and O’Neill.
In O’Neill, we answered whether a water service contract
provision “which absolves the government of liability for
water shortages due to drought or ‘any other causes,’ excuses
the government from supplying the full contractual amount.”
50 F.3d at 682. We held that “the contract’s liability
limitation is unambiguous and that an unavailability of water
resulting from the mandates of valid legislation constitutes a
shortage by reason of ‘any other causes.’” Id. at 684.
Our decision in Haaland did not disturb O’Neill’s
conclusion—we agreed that the government faces no
liability under similar terms when there is a shortage because
of legal unavailability. And Haaland confirms that the
limitation-of-liability clauses do not grant discretion
sufficient to trigger the ESA.
The O’Neill court construed the contracts before it. We
did not answer “whether the district court should have
decided if environmental statutes did, in fact, mandate the
reduction in water.” Id. at 682; see also id. at 687–89 (it was
not an abuse of discretion to “decline[] to evaluate the merits
of the Bureau’s compliance with ESA”). 1 Unlike O’Neill,
we are tasked with answering the merits of ESA obligations.
And the lack of liability for compliance with environmental
1
Even if O’Neill had addressed the merits of the environmental claims
when the district court did not, it would be distinguishable because the
Central Valley Project Improvement Act was amended in 1992 to
“elevate[] ‘mitigation, protection, and restoration of fish and wildlife’ to
Project purposes on par with irrigation.” San Luis & Delta-Mendota
Water Auth. v. United States, 672 F.3d 676, 683 (9th Cir. 2012)
(quotation omitted).
52 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
law does not equate to discretion sufficient to trigger ESA
obligations.
The majority’s discussion of these contracts does all it
can to distinguish them from those in Haaland except look
at the text of the contracts. Maj. Op. at 34–37. In Haaland,
we held that contracts which provided that “if there is a
shortage of Project Water because of actions taken by the
Contracting Officer to meet legal obligations,” then “no
liability shall accrue against the United States” did “not give
Reclamation discretion to alter the Settlement Contract to
benefit a listed species.” 102 F.4th at 1075. Compare that
with the language of these contracts, which provide that if
there is “a shortage in the quantity of water available in
Project reservoirs,” then, “in no event shall any liability
accrue against the United States.” The contract provisions
mirror those in Haaland. The majority’s failure to address
the striking similarities between these contracts’ plain text,
while coming to a different conclusion than Haaland,
undermines our precedent.
B
Beyond those with force majeure clauses, the other
contracts fare little better. For example, Klamath Water
Users Association highlights Reclamation’s contract with
the Van Brimmer Ditch Company. Even the majority
recognizes this contract triggers non-discretionary duties.
Maj. Op. at 35 n.6. Likewise, the Klamath Basin Irrigation
District’s Warren Act contract does not provide discretion
when it allows Reclamation to “apportion the available
surplus water supply among the District and others entitled,
under existing and future contracts . . . to receive water from
the Klamath Project.” All that provision means is that, if
there is a shortage, Reclamation can use available surplus
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 53
according to other contracts. It grants no discretion
sufficient to trigger the ESA.
As for the equitable issue in the Klamath Drainage
District contract, the Secretary still has no discretion to act
in a way that would “inure to the benefit” of the suckers or
salmon. Haaland, 102 F.4th at 1074. All the water prorated
in times of shortage “shall” be prorated “between the district
and others supplied therefrom.” The Secretary can decide
how to release the water, but the water releases must still
only go to those supplied. No one could suggest that the
suckers and salmon are “supplied therefrom” as
contemplated by the contract. So the Secretary has no
discretion under this provision to release water for the
benefit of the suckers and salmon. The same is true for the
1956 TID agreement, which provides that “[i]n the event [of]
a shortage of water” from the Klamath Project “as a result of
drought or other unavoidable causes,” the United States
“may apportion the available supply” among those in TID or
with equal priority rights. That apportionment between TID
or those with equal priority rights is not discretionary in a
way that would “inure to the benefit” of the suckers or
salmon. Haaland, 102 F.4th at 1074.
The closest call on this issue are Reclamation’s contracts
with homesteaders. Federal Appellees explain that
Reclamation’s initial contracts with KID and TID started as
“‘Form A’ agreements for homesteaders” which require that
“in times of ‘shortage,’ Reclamation would furnish an
‘equitable proportionate share’ of available water.” But
Form A is not in the record. Instead, the parties point to a
54 YUROK TRIBE V. KLAMATH WATER USERS ASS’N
case from the Federal Court of Claims, which purports to
quote Form A:
The quantity of water to be furnished
hereunder shall be that quantity which may
be applied beneficially in accordance with
good usage in the irrigation of the land
described in paragraph 2: Provided, That in
case of a shortage at any time the amount to
be furnished shall be an equitable
proportionate share, as nearly as practical
operations will permit, of the water actually
available at the time for all of the area being
watered from the same source of supply, such
proportionate share to be determined by the
project manager.
Id. (second emphasis added).
Even if we accept that this language is in Form A, it is
unclear whether these contracts are current or enforceable.
According to Federal Appellees, “Form A” is
“supplement[ed]” by later agreements, including
Reclamation’s 1954 contracts (discussed above) with the
Irrigation Districts. But Federal Appellees do not specify if
the Form A agreements were incorporated into
Reclamation’s later contracts. And the Court of Federal
Claims has concluded that the Form A agreements were
“supplanted” by later contracts. Baley v. United States, 134
Fed. Cl. 619, 629 (2017), aff’d, 942 F.3d 1312 (Fed. Cir.
2019).
All this to say, whether the equitable language identified
by Federal Appellees in Form A from Baley is current or
enforceable is unclear. Accordingly, we should have, at
YUROK TRIBE V. KLAMATH WATER USERS ASS’N 55
most, remanded to the district court to determine whether
Form A is enforceable, what any current terms of Form A
may be, whether Form A may affect Reclamation’s other
contracts, and whether Form A gives Reclamation discretion
that implicates the ESA.
In the end, the majority has not shown that Reclamation
“retains some discretion to take action for the benefit of a
protected species.” Jewell I, 749 F.3d at 784 (cleaned up).
Thus, ESA § 7 obligations are not triggered by these
contractual obligations, and we should have remanded if
uncertain.
III
Under Home Builders and Haaland, the generalized
holding in Patterson that the ESA applies to the Klamath
Project is no longer good law. Under the proper legal
analysis, no statutory provision or contract provides agency
discretion sufficient to trigger the ESA. Because the
majority misreads our precedent, I respectfully dissent.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.