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CHAPTER I 13 <br />As a result of that Congressional action, Arizona filed a motion in the Supreme Court on August 13, 1952, <br />for leave to file a Bill of Complaint against California and seven public agencies in the State. It alleged that <br />Arizona's entitlement to Colorado River water was adversely affected by the California claimants and that <br />Arizona's existing and prospective projects were" threatened. The United States was permitted to intervene as <br />was Nevada. Utah and New Mexico were joined to the extent of their capacity as Lower Basin States. <br />On June 1, 1954, the Court appointed George I. Haight as Special Master and on his death appointed <br />Judge Simon H. Rifkind as Special Master on October 10, 1955. The trial before the Special Master began on <br />June 14, 1956, in the United States Courthouse in San Francisco and concluded August 28, 1958. Follow- <br />ing circulation among the parties of a draft report by the Special Master dated May 5, 1960, and the receipt of <br />comments and oral arguments, the Special Master submitted his Report dated December 5, 1960, to the <br />Supreme Court. <br />The Supreme Court heard oral arguments in January 1962 and reargument. On June 3, 1963, it rendered <br />its decision, 373 U.S. 546. <br />The Special Master's Report and Recommended Decree were in large measure adopted by the Supreme <br />Court, although departures were made in important areas. The major conclusions of the Court follow. <br />Congress, in enacting the Boulder Canyon Project Act, under its powers granted by the Commerce and <br />Property Clauses of the Constitution, provided a solution of the Lower Basin water controversy by <br />establishing a statutory apportionment of mainstream waters among the Lower Basin States. <br />The Special Master was correct in holding that the Colorado River Compact, the law of prior appropria- <br />tion, and the doctrine of equitable apportionment do not control the issues of the case. Equitable apportion- <br />ment was inapplicable because of the Congressional statutory allocation. The Compact was inapplicable since <br />it provided an inter -Basin division of water and did not determine the further division of the Lower Basin's <br />share. It was, however, relevant for some purposes, e.g., some of its terms are incorporated in the Project <br />Act and are applicable to the Lower Basin. <br />The Court stated that the Project Act dealt only with the waters of the mainstream and that the tributaries <br />i were reserved to the exclusive use of the State wherein the tributaries are located. <br />Congress made it clear that no one should use mainstream water except in strict compliance with the <br />scheme set up in the Act; i.e., Section 5 provided that no water could be used except under contract with the <br />Secretary; the- Secretary is- "bound to observe the Act's limitation of 4.4 maf on California's consumptive uses <br />out of the first - 7:5 maf of mainstream water, leaving the remaining 3.1 maf for the use of Arizona and <br />Nevada; that Nevada's needs were 300,000 acre -feet, which left 2.8 maf for Arizona; the Congress intended <br />that the Secretary carry out the allocation of mainstream waters among the Lower Basin States and to decide <br />which users within each State would get water; that the Secretary has, by his contracts, made this apportion- <br />ment. <br />The Secretary is not controlled by State law in contracting with water users within each State nor do State <br />law priorities govern. Thus, contrary to the Master's conclusion, the priorities accorded to the water supply to <br />Boulder City, Nevada, by the Act of September 2, 1958, were not to be determined by Nevada law. <br />The Court agreed with the Special Master's conclusion that the Secretary cannot reduce water deliveries to <br />Arizona and Nevada by the amounts of their uses from tributaries above Lake Mead, since Congress intended <br />to apportion only the mainstream waters, leaving to each State its own tributaries. The Court disagreed, how- <br />ever, with the Master's holding that the Secretary is powerless to charge States for diversions from the main- <br />stream above Lake Mead (the Special Master had held that Lower Basin apportionment was to be made out <br />of waters stored in Lake Mead or flowing in the mainstream below Lake Mead, and that the Secretary was <br />without power to charge Arizona and Nevada for diversions made by them from the 275 -mile stretch of river <br />between Lee Ferry and Lake Mead or from the tributaries above Lake Mead). The Court held that main- <br />stream uses between Lee Ferry and Lake Mead are subject to the Secretary's control. <br />The Court upheld the Secretary's right to subcontract with Nevada water users since to do otherwise would <br />transfer to Nevada the Secretary's power to determine with whom he will contract and on what terms. <br />The Court disagreed with the Master and held that the Secretary had the authority to determine the <br />methods of apportioning shortages. The Special Master had held that shortages be pro rated among the three <br />States in accordance with the percentages allocated to them out of the 7.5 maf apportioned to the Lower <br />