T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on and i s notpr e c e de nt * e xc e pta s pr ovi de d by9th C i r . R . 36- 3. NOT F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS FOR T HE NI NTH CI RC UI T SA LT RI V ER PRO J ECT AG R I C UL T UR AL I MP R OV E ME NT A N D P O W E RD IS T R IC T , a m un i ci pal c orpor a t i on a nd pol i t i c a l s ubdi vi s i on of the S ta te o f A r iz o n a ; e t a l., P l ai n t i ffs - A p p el l an t s, v. R E Y N O L D R . L E E ; e t a l., D efen d an t s - A p p el l ees. N o. 09- 15306 D. C . No . 3 : 0 8 - c v - 0 8 0 2 8 - J AT ME MOR AN DU M *

A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt

f orthe D i s tr i c tof

A r i z ona J a m e s A . T e i l bor g, D i s tr i c tJudge , P r e s i di ng A r gue d a nd S ubm i tt e d F e brua ry10, 2010 S a n F r a n c is c o , C a lif

o rn ia B efo re: G O O D W IN , B E R Z O N an dIK U T A , C i rcu i tJu d g es. S a l tR i ve rP r oj e c tA gr i c ul tur a l I m pr ove m e nta nd P ow e rD i s tr i c ta nd H ea dw at er s R es ou rc es , Inc. , col l ec t i vel y r ef erre d t o as S al tR i ver P roj ec t , appeal



# FI LED MA R 19 2010 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALSth e d is tr ic t c o u rt’s g r a n t o f aF e d . R . C iv . P . 1 2 ( b ) m o tio n to d is m is s f o rf a ilu r e to exhaustthe contra ctual gri evance proce du re s i n a l ea se betw ee n S al tR i ver P roj ec t a nd the N a va

j o N a t i on. W e r e vi e w the di s tr i c tc ourt ’ s appl i c a t i on of s ubs t a nt i ve l a w de no vo , a n dits f

in d in g s o f

f a c t f o rc le a re rr o r . R i t

z v. In t ’l L o n gsh o rem en ’s & W ar e hous e m e n’s U

ni on , 8 3 7 F .2 d3 6 5 , 3 6 9 ( 9 th C ir . 1 9 9 8 ) ( p e rc u r ia m ) . W e re vers e. T h e d is tr ic t c o u rt e rr e din o r d e r in g S a lt R iv e rP r o je c t to r e f

e rits c la im s to th e U n ite dS ta te s S e c r e ta ryo f th e I n te r io rp u r s u a n t to th e g r ie v a n c e p r o c e du r e s in § 2 5 o f th e 1 9 6 9 L e a s e . A s s u m in g , w ith o u t d e c id in g , th a t th o s e p r o c e du r e s ap p ly to S a lt R iv e rP r o

je c t’s c la im s , S a lt R iv e rP r o je c t h a s a lr e a d ys u b m itte dits d is p u te t o the S ec re t ary of the Int er i or un der both § 25 of the 19 69 L ea se and § 10 of the § 323 G r a nt . T he S e c r e t a ry , w i thoutr e ga r d t o the pe ndi ng l i t i ga t i on, r e vi e w e d the s ubs t a nc e of

the di s put e a nd a ddr e s s e d S a l tR i ve rP r oj e c t ’ s r e que s tf ori nt e rve nt i on b y th e S ecret ary. L ett er fro m C arl J. A rtm an , A ssi st an tS ecret ary –In d i an A ffai rs, U . S . D ep’ tof the Int er i or, t o Jane D . A l fano , C orpo ra t e C ou nsel , S al tR i ver P roj ec t ( M a y1 0 , 2 0 0 8 ) . T h e S e c r e ta ryla te rd e c lin e dto r e c o n s id e rh is in itia l d e c is io n . L e tte rf r o m G e o r g e T . S k ib in e , A c tin g D e p u tyA s s is ta n t f o rP o lic ya n dE c o n o m ic D ev el o p m en t , U . S . D ep ’ to f th e In t eri o r, t o Jo h n J. E g b ert , E sq . , Jen n i n g s, S tro u ss & S a l m on, P L C ( O c t obe r2, 2008) . C ontr a ryt o the di s tr i c tc ourt ’ s s uppos i t i on, S al tR i ver P roj ec thas no further obl i gat i on t o sub m i ti t s di sput e t o the S ec re t aryu n d e rth e 1 9 6 9 L e a s e ’s d is p u te r e s o lu tio n p r o v is io n s . I ts c la im s a r e th u s p r o p e r ly

b e f o r e th e d is tr ic t c o u rt. Se e A r i z ona P ubl i c Se rv i c e C o. v . A s paas , 77 F . 3d 1128, 11 32 -34 (9th C i r. 19 95 ). R E V E R S E D a n d R E M A N D E D fo r fu rth er p ro ceed i n g s.