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Federal water decision could complicate breach of contract claims related to water shortages

Posted by: Maven on October 6, 2009 at 6:54 am

From Best Best & Krieger, Attorneys at Law, this ebulletin:

“In a decision that could have a substantial impact on water agency contract disputes with the Government – especially where they relate to water supply shortages – a federal appeals court has found that the United States Bureau of Reclamation (“Bureau”) breached its contract with the Stockton East Water District and Central San Joaquin Water Conservation District (“Water Districts”) during several years where the federal agency failed to provide contract-specified quantities of water.

Given recent proclamations that California is in an unprecedented water crisis, this decision creates a difficult situation for the Government regarding its reliance on drought or regulatory conditions as an excuse for breaching its water supply contracts.

The case, Stockton East Water Dist. v. United States, highlights an important need to review the shortage provisions within such contracts in order to fully understand the Government’s liability for water shortages during drought conditions. The decision also requires greater scrutiny of the Government’s water allocations among different users to determine if it was impossible to meet the water supply demands of the contracts. …”

Read more from Best Best & Krieger by clicking here.

October 6, 2009 · Filed Under Storage and supply

Comments

2 Responses to “Federal water decision could complicate breach of contract claims related to water shortages”

  1. dfb on October 6th, 2009 11:48 pm

    Next step at DOI: start canceling contracts. This case resolved some outstanding questions but just might get this kicked to the Supreme Court.

  2. WaterSource/WaterBank on October 7th, 2009 5:04 am

    “Start cancelling contracts” … just renege on written governmental agreements rather than remedy ? … this isn’t Russia … yet !

    One remedy would be for the Bureau to utilize the air space ( 15 million acre feet) in Lake Mead by filling it with fresh water from a new non-tributary Source which has been presented for investigation for 6 years. The Source could yield a million acre feet of new water for use, storage or accumulation to solve the Bureau’s dilemmas of complying with contractual obligations under drought scenarios.

    Lake Mead is predicted to go dry. This isn’t necessary ! A full Lake Mead generates 2000 megawatts of renewable energy each year.

    DAM … or … RENT A DAM

    Before RISKING the destruction of the desert environment by spending $4 Billion and spending another $1 Billion lengthening the suction pipe into Lake Mead …

    NV & CA should consider RENTING the air space in Lake Mead (28.5 million acre feet) and FILL it by accumulating fresh water from a non-tributary SOURCE that could be LEASED and developed to provide a 1,000,000 acre feet EACH YEAR without damage to the environment or the water rights of anyone, anywhere.

    UTAH can BROKER the deal … ( water for St. George area).

    The Bureau of Reclamation could have a FULL Lake Mead to insure the continued generation of 2000 megawatts of RENEWABLE ENERGY each year ( worth $3-4 Billion/year).

    The environmentalists can have a restored Colorado River Delta with occassional instantaneous releases with the NEW WATER in Lake Mead ( worth $2 Billion/year).

    CA will have a back-up supply of millions of acre feet of accumulated fresh water in the event of earthquake, severe drought, contamination of existing supplies or heaven forbid – terrorist attack ( … PRICELESS !).

    WANTED: ANY politician who wants a confidential verification by their water attorney … for FREE

    Before CA & NV & the Bureau go completely UNDERWATER … at least investigate the possiblities.

    WaterSource/WaterBank
    waterrdw@yahoo.com
    Retired Water Rights Analyst

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