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in reaching a decision on the Long Draw Reservoir. <br />Plaintiffs failed to raise the issues addressed in their Second, Fifth, Ninth and Thirteenth <br />Claims for relief in their administrative appeal. Accordingly, those claims must be dismissed for <br />failure to exhaust their administrative remedies. <br />B. FOREST SERVICE'S AUTHORITY TO IMPOSE BYPASS FLOWS <br />Defendant - Intervenors, as well as certain amicus parties, assert that the issue at the heart <br />of this case is whether Congress has authorized the Forest Service to prohibit historic diversions <br />of water by non - federal parties in order to make water available for downstream use by the Forest <br />Service for fish and wildlife habitat protection. Intervenors contend that Congress has not <br />granted to the Forest Service the authority to impose bypass flow conditions in order to reallocate <br />water from existing uses to unmet National Forest needs. In support of their contention, <br />Intervenors assert, first, that the exercise of this authority by the Forest Service would contradict <br />the repeated and explicit decisions by Congress to defer to and respect state authority over water <br />allocation and use. Second, Intervenors assert that the imposition of bypass flow requirements <br />on existing water uses would be contrary to Congressional intent to authorize the National Forest <br />system principally to enhance the quantity of water that would be available for nonfederal water <br />users. Third, Intervenors argue that the statutes upon which Plaintiffs rely for a grant of bypass <br />flow authority to the Forest Service do not support this claim, and in fact explicitly and broadly <br />disclaim any agency authority to affect existing nonfederal uses of water or to interfere with state <br />3 Defendants contend that Plaintiffs' Thirteenth Claim is moot because the Madigan directive <br />was repealed well before this lawsuit was even filed. Although Plaintiffs argue throughout their briefing <br />that the Madigan directive is evidence of the arbitrary and capriciousness of the Defendants' decision, <br />their Thirteenth Claim challenges the procedures in allegedly adopting this binding rule as violative of <br />the APA. Such a claim is moot because the Madigan directive no longer affects agency decision - making. <br />-14- <br />