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<br />As part of the Snake River basin adjudication, the Idaho Supreme Court <br />acknowledged a federal reserved right for all unappropriated flows in three Idaho <br />wilderness areas, finding that this quantity of flows was the minimum necessary to avoid <br />the defeat the primary purpose of the wilderness designation (Potlatch v. u.s., 1999 <br />Lexis 119 (Idaho 1999)). Concerned that this finding would preclude all upstream water <br />development after these wilderness areas were designated in 1964, 1978, and 1980, this <br />court then reversed itself on rehearing and decided that wilderness areas implied no water <br />right whatsoever (Ibid, 2000 Lexis 112 (Ida~o 2000)). In the same general adjudication, <br />the USFS was unable to secure all the flows of the wild and scenic portions of the <br />Salmon and Rapid rivers in Idaho. The adjudication court found that a wilderness <br />purpose could not be read into the wild and scenic designations for these rivers. The <br />court consequently held that a federally reserved water right could not be quantified as all <br />unappropriated flows as a matter of law, and that the USFS had to prove that such a <br />quantification was the minimum necessary for their designated wild and scenic purposes <br />(Decision, July 24, 1998, Case No. 39576, Snake River Basin Adjudication, Idaho 5th <br />District Court.) This aspect of the opinion was not appealed. Once the wilderness <br />purpose is cleared away, however, aU the remaining flows might still be proven or <br />negotiated as the minimum amount necessary for these purposes, as was decreed on the <br />Cache la Poudre River in Colorado. <br /> <br />Appropriation of Upside-down Water Rights under State Water Law <br /> <br />Upside-down instream flow water rights have been most frequently crafted as <br />federally reserved water rights, but they can also be appropriated under state law. <br /> <br />Hanging Lake. The CWCB recently appropriated upside-down instream flow water <br />rights to protect the streams flowing in and out of Hanging Lake, a pristine lake and local <br />tourist attraction near Glenwood, Colorado (Decrees, April 10, 1997, Cases Nos. 96- <br />CW350, 351. 352, and 353, Water Division 5). The amount ofthese rights was specified <br />as "all available unappropriated flows" of the Hanging Lake streams, subject to existing <br />rights. Because there was only one existing water right upstream, it defined the amount <br />of excepted water development. The CWCB appropriated this upside-down instream <br />flow water right to protect the "truly unique and complex natural environment" of the <br />Hanging Lake streams, finding that all of the remaining flows were available for instream <br />appropriation, and endorsing the opinion of the Division Engineer that the upside-down <br />instream flow right would be easier to administer than the stair-stepped conventional <br />instream flow water right recommended by the CWCB's staff (D. Merriman, <br />Memorandum to CWCB, Agenda Item 20a, November 18, 1996). <br /> <br />Endangered Fish Recovery: The Upper Colorado River Basin. The appropriation of <br />upside-down instream flow water rights under state law in Colorado was also attempted <br />under a cooperative program to recover four endangered fish species in the Upper <br />Colorado River basin. An initial premise for this recovery program was that the potential <br />conflict between water development under state sanctioned water rights and the legal <br />regulation of such water development under the federal Endangered Species Act (ESA) <br />could be avoided by protecting the instream flows thought necessary for endangered fish <br /> <br />13 <br />