Opinion ID: 2612687
Heading Depth: 2
Heading Rank: 6

Heading: Administrative Aspects of Reserved Rights Doctrine

Text: The water court ruled that adjudicated reserved rights could not be used by any permittee, licensee, or concessionaire of the federal government. We see no reason why the federal government cannot control the disposition of reserved water through private contractors and therefore reverse the water court's ruling. The purposes for which water was reserved must be determined by reference to the various documents creating the reservation, statutes, and case law. United States v. New Mexico, supra . The only limitation properly placed upon use of reserved waters is that the water be used only for reservation purposes and in amounts necessary to fulfill those purposes. Id. The 1916 National Park Organic Act, 16 U.S.C. งง 1 et seq. (1976), allows for permit and lease agreements to augment the usage and accessibility of public lands. There is no reason why the federal government should be forced to abandon a proven, efficient, and congressionally-sanctioned system employing private contractors and instead hire government employees to perform the same functions. Of course, use of a federal water right pursuant to a lease, license, permit, concession, or other agreement will not enlarge that right in any way. Accordingly, we modify the water court's order to permit the federal government to fulfill reservation purposes by use of private contractors.
The water court ruled that the federal government must make a quadrennial showing of its progress in applying reserved water not currently in use. The United States argued on appeal that the ruling could cause it to lose reserved rights. We do not believe the water court intended to cause the forfeiture of federal reserved claims if the United States failed to use reasonable diligence in developing its proposed appropriation. See section 37-92-301(4), C.R.S.1973 (conditional water rights must be reduced to absolute decrees in a reasonably diligent fashion). Federal reserved water rights are immune from Colorado's non-use requirement to the extent necessary to fulfill the purposes of the reservation. United States v. New Mexico, supra . See also United States v. California, 332 U.S. 19, 67 S.Ct. 1658, 91 L.Ed. 1889 (1947). Once the federal right has been quantified, that amount is then outside the state appropriation system. It is reasonable, however, to require the United States to appear quadrennially to report its progress in applying reserved water to beneficial use.
The water court restricted the water source for reserved water rights decreed to accomplish the purposes of particular land reservations to waters on, under, or touching the reserved lands. The federal government argues that there may be circumstances in which water not adjacent to a reservation could be reserved and in which off-reservation use of waters flowing on a reservation may be justified. These issues are presently hypothetical. We decline to resolve them in a case where there has not been a specific factual claim presenting an actual case or controversy. We are aware that a pending case involving naval oil shale reserves presents these issues in a proper factual context and will reserve our judgment accordingly. See In the Matter of the Application for Water Rights of the United States of America, No. W467 (Water Div. No. 5 filed Dec. 31, 1971).
The federal government argues that federal reserved rights are junior only to prior properly adjudicated water rights. It is true that Cappaert v. United States, supra , held that the federal government has a right only to unappropriated water at the time of the reservation. 426 U.S. at 138, 96 S.Ct. at 2069. State law determines what water is unappropriated. At this time, however, there are no parties before this court who have claimed water rights in conflict with the federal government's priority. We will resolve such a conflict when it arises.
The federal government agrees with the water court that it must follow Colorado law when and if it seeks a change of use or change of point of diversion for reserved water rights. It objects, however, to the water court's ruling that no future change of use shall be granted unless the change effectuates a valid reservation purpose. At this time the United States has made no application for a change of use and we therefore decline to decide the issue until it has been properly brought up on appeal.
The United States has stipulated that it agrees to water court determination of federal reserved water rights. That position comports with the McCarran Amendment, 43 U.S.C. ง 666 (1976), and United States v. District Court for Eagle County, supra . Additionally, it agrees that water rights ultimately adjudicated to it are subject to administration by the State Engineer.
The federal government argues that the water court improperly refused to consider certain omitted reserved and appropriative claims. We agree with the water court's conclusion that it lacked jurisdiction to consider the claims until the United States had filed proper applications which will give notice to potential objectors. Breckenridge v. Denver, Colo., 620 P.2d 1048 (1980). The United States is free to file a new application and prove the factual basis for the claims.