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<br />1. !..iabili ty of a Rc~crvoir OW::.cr
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<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
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