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Government's construction of fences around the water and streams amounts to a physical taking during <br />the time period in which Plaintiffs' still had a grazing permit and their cattle had the right to water at these <br />streams." <br />Plaintiffs also argued USFS policy, such as allowing brush and riparian vegetation to overgrow the stream <br />beds and allowing beavers to establish dams in upper reaches of streams, prevented Plaintiffs from using <br />water in the upper reaches of the Plaintiffs' patented lands and amounted to a regulatory taking. Plaintiffs <br />showed that historical flows in streams they used to irrigate patented portions of their lands decreased by <br />8,000 acre-feet (61%). Using established principles from the U.S. Supreme Court's Penn Central <br />decision, the court found "...that the Government's actions had a severe economic impact on Plaintiffs <br />and that the Government's actions rose to the level of a taking." <br />Next, the Plaintiffs argued that through intimidation, threats, an indictment and conviction, the <br />government prevented Plaintiffs from maintaining their ditches. The court wrote, "The evidence is clear <br />that the ditches to which Plaintiffs have established a property right were in need of routine maintenance. <br />In order to access the water, trees and undergrowth had to be removed, as well as roots, silt, and other <br />deposits." Given that USFS threatened to prosecute Plaintiffs, and had earlier secured a conviction <br />against them which was overturned by the Ninth Circuit, seeking a special use permit would have been <br />futile. "Based on the history between [USFS] and Plaintiffs, the special use permit requirement for ditch <br />maintenance rises to the level of a prohibition, and is therefore a taking of their property rights. Further, <br />the hand tools requirement prevented all effective ditch maintenance, as it cannot be seriously argued that <br />the work normally done by caterpillars and back hoes could be accomplished with hand tools over <br />thousands of acres." Using the Penn Central factors, the court held that the "Government's actions in <br />both preventing access to the ditches and in limiting the maintenance to the use of hand tools constituted a <br />taking of Plaintiffs' water rights in the 1866 Act ditches...." <br />Finally, Plaintiffs argued that USFS devoted their grazing allotment to another "public purpose" after <br />USFS cancelled their grazing permit which entitled them to "...a reasonable compensation for the adjusted <br />value...of [their] authorized permanent improvements....on lands covered by [the] permit..." under 43 <br />U.S.C. § 1752(g). Plaintiffs argued that the lands are no longer used for grazing and are now used for <br />wildlife and recreational purposes, with development of an elk preserve and arecently-constructed <br />mountain bike trail. The court agreed and ordered compensation for fences, roads, ditches, pipelines, and <br />wells they constructed. To date, the United States has not filed a notice of appeal. (Source: Western <br />States Water News Service) <br />BUSH SIGNS BILL TO RECOVER WATER FROM ENERGY DEVELOPMENT - <br />Federal legislation to explore putting groundwater pumped out during oil and gas production to use was <br />signed into law recently. <br />The bill signed by President Bush directs the Interior Department to assess the feasibility of recovering <br />and cleaning up the millions of gallons of water that are reinjected into the ground or disposed of during <br />oil and gas development. <br />The water's fate has become contentious as natural gas development has increased in the Rockies. Large <br />volumes of water are pumped out during coal-bed methane production. Pumping groundwater relieves the <br />pressure that traps the gas in the coal seams. <br />New Mexico Sens. Jeff Bingaman, a Democrat, and Pete Domenici, a Republican, and Sen. Mike Enzi, <br />R-Wyo., were the other sponsors. The House version of the bill was approved last year. <br />~~~ ~4 <br />5 ~ <br />