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<br />1. !..iabili ty of a Rc~crvoir OW::.cr <br /> <br />It is provided by statute in Colorado that the owner of a <br />dam is strictly liable for damage occasioned by its failure. <br />C.R.S. 1963, Sec. 148-5-4 and 148-5-13. There is a doctrine <br />that an Act of God will relieve a dam owner of liability <br />from dam breakage, R an Gulch Reservoir Co. v. Swartz, <br />77 Colo. 60, 243 P. I 5 1925. However, ln a later appeal <br />in the same case, R~an Gulch Reservoir Co. v. Swartz, 83 <br />Colo. 225, 263 P. 7 8 (1928), it was held where the Act <br />of God was contributed to by the negligence of the dam <br />owner, there would be liability. Presumably, negligence <br />accompanying an Act of Cod would be a rather common set <br />of facts, since the exact problem we are raising is the <br />duty of the dam owner to anticipate a certain degree of <br />flooding. In Freel v. Ozark-Mahonin Com an , 208 F.Supp. <br />93 (1962), Ua lllty or am rea age on two occasions of <br />flooding was postulated on the statutory strict liability <br />and the Act of God defense was not raised. The issue is being <br />raised again in a case now on appeal before the Colorado <br />Supreme Court r~garding the failure of Clay Creek dam near <br />Lamar, Colorado, under an unprecedented flood. <br /> <br />few feet of storage for flood purposes. I::. most cases, <br />adequate freeboard and spillway design will physically <br />guarantee the type of storage required, si~ce tem~orary , <br />detention occurs automatically when the sp111way 1s floWln9 <br />full. <br /> <br />One form of consideration flowing to the owners in exchange <br />for these two elements of control could be physical con- <br />structio~ by the District or municipality to make the <br />structure hydrologically safe, either at its sole expense <br />or by ratable participation with the owner. Another form <br />could be indemnification for flood damage liability, elther <br />total or pro rata, and a third form could be participation <br />in maintenance and operation costs. <br /> <br />The Act of God defense mav be inconsistent with the District's <br />overall objectives unless- certain limitations can be drawn <br />upon the concept. In an area of flood-plain zoning, definite <br />legislative categories have been created to delineate re- <br />sponsibilities based on the 100 year flood. If it were <br />found categorically in a flood-plain area that only floods <br />greater than the 100 year frequency flood could qualify as <br />an Act of God, or, alternatively, that design based on any <br />flood less than loa year frequcncy was negligence per se, <br />then the doctrine would be complctely consistent. Otherwise, <br />the doctrine may slightly weaken the District's position. <br /> <br />A simple means of accomplishing all these objectives would <br />be a conveyance from the oWner to the operating municipality, <br />in exchange for an operating criteria whiCh ~oul~ ~rovide <br />for a certain permanent pool (subject to avallablllty of <br />water) to the benefit of the grantor. This would, of course, <br />vest all control in the municipality, subject to the operating <br />criteria, as well as all liability. It is conceivably possible <br />that such an agreement could be formulated and negotiated <br />that would require no cash payment to the owner, but simply <br />a take-over of the problems of ownership. <br />It should be emphasized that where decreed water rights <br />eXlst, there is no necessity for the~r purchase. The o~ner- <br />ship of the "tr\lcture can he ,,"parated frnm the o"mersh,-p <br />of the rights and the right to use the 5tructure for tho~e <br />water rights could still remain. All that would,be requ~red <br />is a sufficient agreement to satisfy the water rlght Owner <br />of his continued right to lIse of the structure. <br />In the case of the large irrigation reservoirs, it is doubt- <br />ful that such a purchase arrangement would be as attractive <br />since both maintenance and control of facilities are the <br />ditch company's stock in trade. In these situatio~s, a <br />contractual arrangement rather than a conveyance mlght b~ <br />favored. If the District is satisfied with the existing <br />safety of the structure or if structural modifications for <br />safety purposes are contemplated a~ ~n initia~ ma~te~ within <br />the contract, then an agreeMent to glYB the Dlstrlct a VOlec <br />~t t~c time of ~~y f~t~rc mcdific~tio~~ might be adequate to <br />satisfy the first element of control. An option to purchase <br />on abandonment, or first right of refusal on any contemplated <br /> <br />In any case, the liability for unsafe structures is of a <br />severe kind. If the District can come in with an offer to <br />help relieve that hazard, there should be a favorable ground <br />for agrce'",cnt. <br /> <br />2. Proposed Form of Agreemf>nt <br />The essential elements of control rcauired by the District's <br />interest in flood control structures "are (1) sufficient <br />control in the ownership to make all safety related decisions <br />and (2) the power to maintain the structure p",rpetually. <br />Beyond this, the only requirement is the right to use the top <br /> <br />11 <br /> <br />12 <br />