Opinion ID: 2637690
Heading Depth: 1
Heading Rank: 3

Heading: The Apache Tribes

Text: ¶ 14 The Apache Tribes first argue that, notwithstanding the Special Order, the adjudication court had an inherent duty to consider the constitutionality, legality, and fairness of the settlement agreement. We rejected this argument in Gila River VII, 217 Ariz. at 279-80 ¶¶ 15-20, 173 P.3d at 443-44. [4] These objections fall outside the narrow scope of review mandated by the Special Order . . . [and] can be addressed at a later date without any injury to the Tribe[s] from delay. Id. at 280 ¶ 17, 173 P.3d at 444 (internal citation, quotation marks, and ellipses omitted). ¶ 15 Nonetheless, in support of their argument, the Apache Tribes rely on San Carlos Apache Tribe v. Superior Court, 193 Ariz. 195, 972 P.2d 179 (1999). In that case, this Court considered the constitutionality of two legislative measures that revised several statutes addressing surface water rights and the adjudication process. Id. at 203 ¶ 4, 972 P.2d at 187. One statute required courts to decree settlement agreements but did not authorize judicial review of the agreements. Id. at 213 ¶ 43, 972 P.2d at 197. That statute, we held, violated the separation of powers doctrine because, [i]n an inter sese proceeding such as this adjudication, a court cannot be required [by the legislature] to incorporate an agreement that may affect the availability of water for other claimants or interfere with senior rights. Id. ¶ 16 Here, the adjudication court applied the Special Order, not a statute enacted by the legislature. Thus, there is no separation of powers issue, and because the Special Order expressly provides the terms under which we review Indian water rights settlements, the analysis in San Carlos Apache Tribe is not applicable. [5] See Gila River VII, 217 Ariz. at 281-82 ¶¶ 25-27, 173 P.3d at 445-46. ¶ 17 The Apache Tribes further assert the adjudication court erred as a matter of law in ruling that they lacked standing to claim material injury. They argue that approval of the settlement agreement will adversely affect the water rights of the San Carlos Apache Tribe and may negatively impact the water rights of the Yavapai-Apache Nation in the future. ¶ 18 The adjudication court did not expressly state that the Apache Tribes lacked standing to contest the settlement. [6] Rather, the court correctly ruled that their objections fell outside the limited scope of review prescribed by the Special Order. A settlement agreement will be approved if the adjudication court determines, among other things, that the objector's water rights are not materially injured or are preserved under the express terms of the settlement agreement. Special Order § (D)(6)(b). Because those two conditions are disjunctive, the adjudication court must approve the settlement agreement as long as the agreement expressly states that the objector is not bound and is free to pursue its claims in the general adjudication. See Gila River VII, 217 Ariz. at 279 ¶ 13, 173 P.3d at 443. ¶ 19 The express terms of the GRIC settlement agreement provide that [n]othing in this Agreement shall be construed to quantify or otherwise affect the Water Rights, claims or entitlements to Water of any tribe, band or community other than [GRIC]. Agreement ¶ 30.22. Similar language appears in paragraph 23 of the adjudication court's judgment and decree. Indeed, the AWSA itself prohibits the agreement from affecting the water rights of any other Indian tribe. AWSA §§ 213(b), 401. Because the Apache Tribes retain all remedies available before approval of the settlement necessary to protect their rights in the general adjudication[,] approval of the settlement agreement did not hinge on absence of any material injury to the Apache Tribes. Gila River VII, 217 Ariz. at 281 ¶ 22, 173 P.3d at 445. And, in any event, because the settlement agreement does not affect their rights or remedies, it cannot materially injure them. See id. ¶ 20 The Apache Tribes next claim that ADWR did not comply with the adjudication court's order requiring it to factually and technically assess the proposed settlement. Therefore, they assert, the court did not have an informed basis on which to determine whether the settlement agreement adversely affected their water rights. The Apache Tribes further argue they were entitled to a hearing on the merits of their material-injury objection. ¶ 21 Pursuant to the court's order, ADWR produced a technical assessment that included a chapter addressing the probable impacts of the settlement agreement on both water resources and other claimants. Assessment at ch. 7. Nothing in the court's order required ADWR to specifically consider the impact of the settlement agreement on the Apache Tribes. Furthermore, an assessment of their rights (by either a technical analysis or a hearing on the merits) is irrelevant to a finding of material injury because the Apache Tribes are not bound by the settlement agreement. See Gila River VII, 217 Ariz. at 282 ¶ 30, 173 P.3d at 446. ¶ 22 The Apache Tribes also contend the adjudication court never saw the executed version of the settlement agreement. But the judgment and decree expressly states that the court considered the Amended and Restated Settlement Agreement dated October 21, 2005. And in the original application for special proceedings, the settling parties stated that copies of the agreement were available for inspection at ADWR as well as every county's superior court clerk's office. Application at 4 ¶ 3. [7] Therefore, we find no merit to this argument. ¶ 23 Finally, the Apache Tribes assert that GRIC will receive more water by settlement than it could have established at trial. The settlement agreement provides GRIC with 653,500 AFY, which includes 328,800 AFY of Central Arizona Project (CAP) water, 156,700 AFY of underground water, 155,400 AFY of surface water, [8] and 12,600 AFY of reclaimed water. Agreement ¶ 4.1. Because CAP water is not from the Gila River system and source and is outside the adjudication court's jurisdiction, we exclude that water from our analysis. ¶ 24 In the adjudication, GRIC claimed aboriginal rights of 934,805 AFY, federal reserved rights of almost 2.5 million AFY, and prior appropriative rights of 2.7 million AFY. The United States on GRIC's behalf also asserted a right to more than 1.5 million AFY. Assessment at 4-4 to 4-9. In addition, according to ADWR, the total average water use on the GRIC reservation for both agricultural and non-agricultural purposes is between 760,586 and 1,347,500 AFY. Id. at 8-4. ¶ 25 The settlement plainly provides for fewer AFY than GRIC was allocated under the Globe Equity Decree (Decree). [9] GRIC is entitled to at least 967,215 AFY under that Decree, [10] consisting of (1) 303,276 AFY (210,000 AFY with a time immemorial priority and 93,276 AFY with a 1924 priority) from the Gila River mainstem for 50,546 acres of GRIC's reservation, Decree, Articles V, VI(1)-(4); (2) 17,950 AFY of natural flow water rights ranging in priority from 1873-1903 for 2,992.5 acres, id. Article VI(6); (3) 645,989 AFY of stored water with a 1924 priority date for 50,546 acres, which is GRIC's pro rata allocation of the San Carlos Irrigation Project's right to 1,285,000 AFY stored in the San Carlos Reservoir, id. Article VI(5); and (4) an unspecified amount of pumped groundwater, id. Article VII. ¶ 26 In sum, the water claimed on behalf of GRIC, its current water use, and GRIC's Globe Equity Decree rights are each considerably greater than the amount allocated to it under the settlement agreement. Accordingly, the adjudication court had a reasonable basis to conclude that [GRIC's] water rights . . . established in the settlement agreement . . . are no more extensive than [GRIC] would have been able to prove at trial. Special Order § (D)(6)(a). ¶ 27 To the extent the Apache Tribes argue the GRIC settlement adversely affects the quality of their water, we conclude that the determination whether an Indian tribe receives more water by settlement than it could have shown at trial is limited to an analysis of water quantity. Settlement approval does not hinge on a finding that the quality of other claimants' water is unaffected. This limitation is necessary because of the nature of the adjudication proceedings, in which parties are settling disputes over water rights at different times and with different parties. The consideration of any factors relating to water quality is not encompassed by the Special Order, would be fraught with speculation, and would unduly hinder and delay settlements. ¶ 28 Although water quality is not a necessary or appropriate consideration under the Special Order, claimants may still assert their rights to a higher quality of water in the general stream adjudication, unless prohibited by agreements, prior decrees, or court rulings. The Apache Tribes' objection about the quality of their water fails here, however, because it falls outside the Special Order's scope of review.