MEETING SUMMARY - KLAMATH BASIN ALTERNATIVE DISPUTE RESOLUTION

Date: Tuesday, April 11, 2000

Location: Klamath County Courthouse Room 20, Klamath Falls, OR

Mike Golden welcomed those present. The days meeting agenda was reviewed. There were no corrections to the ADR meeting notes of March 14, 2000.

Hydrology Subcommittee Report (HSC) Jonathan LaMarche distributed two reports: A Summary of the Upper Klamath Basin Distribution Modeling Preliminary Results and Upper Williamson River Low Flow Statistics. He explained that he had completed eight or nine model runs and had compiled results that showed the main interactions between claimants. He reviewed the Summary which is a general overview of the major claimant interactions identified, using the Klamath basin distribution model. The water distribution model was developed to build understanding of how different water users interact in the basin based on claimed and permitted usage, and historical climatic and flow conditions. Jonathan described components and limitations of the model. For the study period of 1974-97, he used data from consumptive use estimates and available gage records.

Jonathan is also working on modeling estimates for the Wood River area and is contacting water rights holders in that area for information when gage data is not available. A report on the study will be distributed at the May 9 ADR meeting. The report will include instream claims, seven day low flow statistics, and project low flow probability.

Referring to his report on low flow statistics prepared at the request of the Upper Williamson negotiating group, Jonathan explained that he studied 21 and 30 day periods for shortage probabilities. The resulting information illustrates how often shortages will occur during a year for instream claims. To assist other negotiations, Jonathan will develop flow and consumptive use estimates to illustrate probability of low flows.

Discussion of Contest Filing - Reed Marbut advised that answers to the ten questions posed at the February and March meetings are being prepared by the Adjudicator with confirmation by the Oregon Department of Justice. Participants at the March meeting asked that we expedite the question: Is there a cutoff time for adding information to a file? That question was responded to by way of a mailing to the ADR group. The mailing stated that:

"The Adjudicator may not accept information after the beginning of the contest period. However, for claims or preliminary evaluations that have been contested, additional information may be accepted into the record at the discretion of the Adjudicator or hearing officer as appropriate."

Reed explained that answers to the other questions are expected to be available at the May 9 ADR meeting. The Oregon DOJ must approve answers to all questions. Once finalized, answers are posted on the Water Resources Department web site at:

http://www.wrd.state.or.us

After the close of the contest period, it will take a period of time for the adjudication staff to process contests and develop a contest database. It is anticipated that the database will contain fields so that contests can be grouped and sorted. Telephone inquiries are being handled by the adjudication staff, and files are available in Salem for review. If possible, contestants should attempt to group their contests by claim and issue. That is, if a number of contestants are contesting a single claim, and all the contests raise an identical issue of fact or law, the contestants could group their contests.

Legal Action - Water For Life filed a motion for a temporary restraining order (TRO) and preliminary injunction in Klamath County Circuit Court. The motion requests that the Adjudication open inspection period be extended for 180 days, which would delay the contest period to the end of the extended open inspection. The TRO was denied. A hearing on the preliminary injunction is scheduled May 1 at the Klamath County Courthouse. The parties (Water For Life and the State) are currently preparing briefs. Ed Bartell discussed some elements of the legal action.

Legislative Update - Martha Pagel briefly outlined the process used for development of legislative concepts and the schedule state agencies follow to identify legislative proposals. A placeholder has been filed for possible adjudication issues. Nothing specific has yet been proposed by the ADR group.

Oregon has established a central hearings panel to hear cases that include adjudication contested case hearings. There is ongoing discussion between the Department and the Oregon DOJ concerning the interface between the adjudication statute (ORS 539) and the Oregon APA. These discussions include whether a legislative change should be proposed to clarify the relationship between the adjudication process and the APA. There was discussion of the possible legal impact of legislative procedural changes on the holding in U.S. v. Oregon. Martha suggested that a subcommittee be formed to identify possible legislative changes to adjudications. It was agreed that Mike Golden would reinstate the ADR legal subcommittee to discuss possible legislative concepts related to the Klamath Adjudication.

Concerning federal legislation, Martha Pagel is Oregon's representative to the Western States Water Council. The Council is proposing federal legislation to require the federal government to pay fees in water right adjudications, like other (private) claimants.

Progress on Draft Water Rights Settlement Plan - Mike Golden reported on two Administrative Subcommittee meetings which have been held to discuss a proposal intended to move the Klamath Basin water rights settlement process forward. Issues under consideration are: whether to hire an outside consultant to design and coordinate a process; the extent of Water Resources Department involvement in development of a process; and funding. The Subcommittee has agreed that Mike Golden, Martha Pagel, Bob Main and Reed Marbut should continue to work on a preliminary settlement concept for presentation to the Administrative Subcommittee. Prior to the May 9 ADR general meeting, the Subcommittee will review the concept and decide whether and how the concept is presented to the full ADR group.



Klamath Compact Commission Meeting Scheduled for May 8-9 - Alice Kilham reported on plans by the Commission to present public information on water quality issues at the Klamath County Courthouse in meeting Room 20. The agenda for Monday, May 8 from 1:00-5:00 p.m. will include an overview of the Clean Water Act, and a technical overview of water data collection, modeling, and monitoring. Dick Nichols of the Department of Environmental Quality will present a coordination matrix. On Tuesday, May 9, from 8:00 a.m. to noon, the downstream Tribes will present their water quality concerns and activities, and informational panels will address citizen and regulatory issues. No attendance fee will be charged for the meetings. Please contact Alice Kilham for additional information at (541)201-0772, or through the internet at akilham@mp.usbr.gov

Updates

U.S. Fish and Wildlife Service - Paul Rauch reported that the Service is conducting a groundwater feasibility study for development of groundwater at the Lower Klamath National Wildlife Refuge. Phase 1 reconnaissance has been completed. Level study and literature review is underway. Phase 2 in-depth study should be completed in three or four months, and will involve testing existing wells and drilling test wells to assess production potential.

Williamson Negotiating Group - continues progress in its meetings, but had nothing to report.

SB1010 - continues work on the monitoring and conditions portions of draft plans and integration with the Lost River group report.

TMDL/303(d) list - draft completion is hoped for by August.

Klamath Project and Near Term Legislation - Bureau of Reclamation

Jim Bryant said that after the dry weather in March, there may be water shortages in the project later in the year. An operating plan is being considered and will be presented soon that will attempt to meet needs of all water users in the Klamath Project. Options being considered to lessen the impact of less than average water this year include purchase or rent of water from other sources and water storage. National Marine Fisheries Service (NMFS) is being consulted, and discussions are underway about the dry spring in the region which is a dramatic change from last year. Rain is hoped for.

Paul Simmons reported that the water users in the Klamath Project have sent 60 day notice to various federal agencies that they must comply with the consultation requirements of §7 the Endangered Species Act.

A lawsuit pertaining to Klamath Project lease lands has been dismissed, having been resolved in a mutually agreed manner.



Lost River Litigation - A court decision has been issued in the Lost River decree correction action filed by the Langell Valley and Horsefly Irrigation Districts. The Lost River was initially adjudicated in 1918 when the Klamath Project was in the initial stages of development. A decree was issued which recognized water rights in the Lost River drainage in both Oregon and California. As the two districts developed, lands both within and outside the area described in the 1918 Decree were put under irrigation. In 1998, Langell Valley and Horsefly Irrigation Districts asked the Water Resources Department to issue water right certificates based upon their current water use. Since current water use does not conform to the place of use described in the Decree, it became apparent that the Decree must be modified before certificates can be issued. Langell Valley and Horsefly petitioned the Klamath County Circuit Court to amend the 1918 Decree to correctly reflect actual place of use of the Districts' water. The United States filed a motion the intervene in the case simply to argue that the action should be dismissed because their (U.S.) property rights would be affected, and since the case was limited to just a decree correction proceeding and was not a general stream adjudication they were immune. The Circuit Court dismissed the action stating that the U.S. was an indispensable party, that the action was not a McCarran Amendment proceeding, and therefore, it could not proceed. The Court went on to state that the Irrigation Districts could petition for a McCarran Amendment supplemental adjudication. The Court also stated that, since the 1918 adjudication was before adoption of the McCarran Amendment (1952), the Oregon court did not have jurisdiction over the U.S. in that case, and thus the rights of the U.S. in the Lost River remain unadjudicated.

There was discussion of the 1918 Lost River adjudication and how water storage and use relate to the Klamath Adjudication. Martha Pagel will check with the Adjudicator, and report back to the ADR as soon as possible. It was clarified that the initial 1918 Lost River adjudication settled private claims, and that a supplemental adjudication could settle federal claims. Since the Lost River decree correction case has been dismissed, the Lost River litigation will be removed from future ADR agendas.

Other points of discussion included: (1) Adjudication boundaries and equity between individual (private) and federal claimants; (2) Whether water passing from Clear Lake, down Lost River to Tule Lake is a violation of the 1918 Decree; (3) Clarification that existing water rights may be junior to adjudication claims; (4) Certain federal claims can be made for future water needs; (5) The change in law that may allow new claim opportunities for water uses in previously unadjudicated areas; (6) Supplemental adjudications can be initiated for those who did not receive notification in an adjudication; and (7) Individuals who have concerns should file contests.

Dividing-The-Waters ADR Workshop - will be held June 27-28 at the Shilo Inn in Klamath Falls. Reed Marbut reported that invitations are being mailed to those who have expressed interest in participating. Workshop facilitators will present dispute resolution simulation models that include various methods for negotiating positions and interests. The fee is $20 per person, and the group will be limited to 50 participants. Contact Reed at (503) 378-8455 extension 292 if you wish to be sent an invitation.

Klamath Watershed Coordination Group and Hatfield Group

Under the Oregon Resource Conservation Act (ORCA) the Group is required to coordinate resource efforts with the other three task forces in the watershed, toward the goal of cost effectiveness. The Hatfield Upper Basin Working Group usually meets the evening before ADR meetings from 5-7:00p.m. at the Klamath Courthouse, Room 20. Members and participants have been asked to develop one-page position statements regarding opportunities and solutions to basin restoration and other local activities. The purpose of the position statements is to reach the next level of restoration in the Basin. Beginning in June, the Group will resume education and information tours of resources and hydropower projects around the Basin. The tours serve as an introductory overview for persons unfamiliar with Basin issues.

The Coordination Group is receiving a time allocation from the U.S. Forest Service to further develop a basin-wide web page informational resource that is accessible at www.klamathgroup.org

Other Business

- The next ADR meeting will be held Tuesday, May 9, beginning at 1:30 p.m. at the Klamath County Courthouse, Room 20, in Klamath Falls.