Opinion ID: 1913609
Heading Depth: 1
Heading Rank: 11

Heading: Forgone Uses

Text: In order to grant an instream flow application, the director must find that the application is in the public interest. § 46-2,115(5). In order to determine whether an application is in the public interest, the director shall consider ... [t]he economic, social, and environmental value of reasonably foreseeable alternative out-of-stream uses of water that will be foregone or accorded junior status if the appropriation is granted. § 46-2,116(2). At the hearing on CPNRD's application, two witnesses discussed forgone uses. Dr. Raymond Suppalla, an economist, testified on behalf of CPNRD. Dr. Suppalla estimated that 5 percent of CPNRD's applications would constitute water precluded from other reasonably foreseeable alternative out-of-stream uses. Dr. Suppalla's opinion also was embodied in exhibit 49, a report prepared by him and entitled Analysis of Public Interest Factors for Proposed Platte River Instream Flows. Gary Watts, another economist, testified on behalf of Wyoming. Watts estimated that an additional 17 percent of CPNRD's applications would be precluded from such uses. In his order, the director discussed Dr. Suppalla's testimony, exhibit 49, and Watts' testimony. The director did not discuss forgone uses. The director concluded that the application is in the public interest. Wyoming contends that the director is obliged to discuss forgone uses and to document his discussion to the hearing record. The Court of Appeals held that the director was not obliged to document his decision to the hearing record. We hold that the director is not obliged to discuss forgone uses. Wyoming first argues that the director is obligated to discuss forgone uses as a matter of water law. Wyoming cites as authority Neb.Rev.Stat. § 46-289 (Reissue 1988) and our decision in In re Applications A-15145, A-15146, A-15147, and A-15148, 230 Neb. 580, 433 N.W.2d 161 (1988) ( Little Blue III ). Section 46-289 provides that when the director is called upon to determine whether an application for an interbasin transfer is in the public interest, the director must consider certain factors. The statute further provides that the director's order shall contain a discussion of the required factors for consideration... and shall document such decision by reference to the hearing record. § 46-289. In Little Blue III, we noted that the director's order discussed the required factors but lacked references to the record. Both of the authorities cited by Wyoming are inapplicable. Section 46-289, by its own terms, applies only to interbasin transfers. There is no similar statute which requires the director to discuss the factors for an instream flow appropriation. As demonstrated by § 46-289, the Legislature is aware of the desirability of such discussions and is fully capable of requiring such discussions when it so desires. Our decision in Little Blue III does no more than reflect the provisions of § 46-289. Moreover, the result in Little Blue III turned not on the provisions of § 46-289, but, rather, on the invalid assignment of purported water rights. Thus, Wyoming's appeal to these authorities is without merit. Wyoming next argues that the director is obliged to discuss forgone uses as a matter of administrative law. According to this argument, the director's findings are inadequate because they fail to disclose a clear basis for the order. This argument directs us to Nebraska's Administrative Procedure Act (APA). The Department of Water Resources is subject to the APA. In re Water Appropriation Nos. 442A, 461, 462, and 485, 210 Neb. 161, 313 N.W.2d 271 (1981). Under the APA, an agency's order must contain findings of fact and conclusions of law. See Neb.Rev.Stat. § 84-915 (Reissue 1987). The findings of fact shall consist of a concise statement of the conclusions upon each contested issue of fact. Id. The APA imposes this burden on agencies so that reviewing courts can discern why the agency reached its ultimate conclusions. See Yellow Cab Co. v. Nebraska State Railway Commission, 176 Neb. 711, 127 N.W.2d 211 (1964). Our precedents provide considerable guidance as to what sort of findings constitute a sufficient basis for an agency order. An order which does no more than state its ultimate conclusionapplication granted or application deniedclearly fails to provide a sufficient basis for the order. See, Basin Truck Co. v. All Class 1 Rail Carriers, 172 Neb. 28, 108 N.W.2d 388 (1961); Oakdale Tel. Co. v. Wilgocki, 171 Neb. 425, 106 N.W.2d 486 (1960); Skeedee Independent Tel. Co. v. Farm Bureau, 166 Neb. 49, 87 N.W.2d 715 (1958). An order which fails to make findings on each required element also fails to provide a sufficient basis for the order. See, Prigge v. Johns, 184 Neb. 103, 165 N.W.2d 559 (1969); In re Application of Hergott, 145 Neb. 100, 15 N.W.2d 418 (1944). The director's ultimate conclusion with regard to instream flow applications is application granted or application denied. The required elements of this conclusion are listed in § 46-2,115. One of these required elements is that the application must be in the public interest. § 46-2,115(5). Thus, the director's order must explicitly find that the application is in the public interest. Wyoming is arguing, in essence, that a finding regarding forgone uses is a required element of a finding regarding public interest. Section 46-2,116 does not require the director to make a finding regarding forgone uses. If the director is not required to make a finding regarding forgone uses, then such a finding is not a required element of either a finding of public interest or a granting of an application. The real question, then, is whether the director considered forgone uses. As discussed previously, ample evidence was presented regarding forgone usesDr. Suppalla's testimony, exhibit 49, and Watts' testimony. Although it does not discuss forgone uses, the director's order shows that he carefully examined and weighed Dr. Suppalla's testimony, exhibit 49, and Watts' testimony in order to determine whether CPNRD's applications were in the public interest. Unless there is affirmative evidence to the contrary, we will presume that an agency has duly considered all the evidence before it. Accord, City of Alma v. U.S., 744 F.Supp. 1546 (S.D.Ga.1990); Lopez v. Industrial Com'n of Arizona, 162 Ariz. 578, 785 P.2d 98 (App. 1989); Coggins v. Public Employee Relations Board, 2 Kan.App.2d 416, 581 P.2d 817 (1978); Mattison v. City of Signal Hill, 241 Cal.App.2d 576, 50 Cal.Rptr. 682 (1966); Faulkner v. Cal. Toll Bridge Authority, 40 Cal.2d 317, 253 P.2d 659 (1953) (in bank). Cf. Babish v. Babish, 361 Pa.Super. 118, 521 A.2d 955 (1987) (where record affirmatively showed that hearing officer, in calculating child support, disregarded a worker's compensation award paid to father, the hearing officer failed to consider the award). The director's order describes his reasoning process. In the order, the director first notes Dr. Suppalla's opinion that the applications were in the public interest. The director next explains that although Watts criticized Dr. Suppalla's methodology, neither Watts nor any other witness had testified that the applications were not in the public interest. Finally, the director remarks that according to Dr. Suppalla's rebuttal testimony, the methodology suggested by Watts would be inappropriate. Accordingly, the director found that CPNRD's applications were in the public interest. We find that this description of the director's reasoning process provides a sufficient basis for the order. The director was not required to provide, in addition to this description, a discussion of forgone uses.