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<br />001.JJl <br /> <br />~ 4 - <br /> <br />The 1953 ....ion of the legi.lature .dopted Senate Concurrent Reeolution <br />No. 80 which reque.ts the Authority and the Stat. Engineer to appear a. reapondents <br />in the Ivanhoe ease by and through the Principal Attorney for the Division of Water <br />Resources and hie staff' lito the end that there 1s a full presentation, including <br />that of the reepondents Water Project Authority and State Engineer, of all i.sues to <br />the appellate courts of thi. State and to the court. of the United States, if an <br />appeal 1s lodged 1n those courts in the ease in question". Even th.ough this reso- <br />lution 15 not strictly a "statute" J nevertheless it does express the viewpoint of <br />the Legislature and should, it is believed, be given due consideration. <br /> <br />Although the foregoing summary is a aharply curtailsd statement of the <br />factual history of the controversy and litigation, it is believed to include those <br />facts which are relevant to a proper consideration of the Authority's future posi- <br />tion on the appeals in the Ivanhoe and Nadera ca.es. While the litigants, ineluding <br />the Attorney General, have argued a number of controvereiallegal problems relating <br />to the validity of certain provisione of the contract, and tha court 'a jud@llent <br />necessarily included 8 determination of those questions, neither the Authority nor <br />tha State Enginaar haa heretofore participated in those arguments and we do not be- <br />lieve that the Authority i. requirad to do so upon appaal. Wa beliave the argument <br />on such subjects can be left to those directly concerned, However, it is submitted <br />that the matters previoU5ly referred to--ownership of water by the State, the right <br />of the State to regulate, control and administer appropriations and UBe of water <br />according to State law and in the publio interaat, tha right of public districts <br />and landowners to receive and beneficially UBe project water in perpetuity Bubject <br />only to reasonabla conditions impo.ad by the State Engineer in the public intareat <br />and to payment of proper charges, and the true status of the Un1 tad States: as merely <br />a carrier and distributor of the water in trust for the water users (SUbject of <br />course to a return of its investment and reasonable safeguards therefor), Bre matters <br />of transcendent importance which vitally affect the future welfare of this state and <br />its inhabitants and are the proper concern of the Authority" insofar as the Central <br />Valley Project i. affected, and of tha Stats Engineer on a .tat.-wide basis. <br /> <br />The judgment of the trial court recognizes state ownership and state con- <br />trol of its water resources. It affirms and protects the right of the State <br />E'ngineer to condition permits to be issued for the appropriation of project water <br />in the public interest. It declares the trust status of the Uhited States and the <br />nece.sity for the United State. to oomply with state law. regulating the appropria- <br />tion of water in California. It determines that the districts are entitled to a <br />contract which recognizes the right to a permanent supply of water. In all of these <br />matters, the trial court has adequately safeguarded the interest of the state and <br />its people, and 'We believe its concluelons in respect thereto should be affirmed. <br />It is considered that as respondents on appeal, it would be proper to limit our <br />position to discussion of these matters and closely related issues" ae was done <br />before the trial court, without becoming involved in argument over the other indi- <br />cated questions. <br /> <br />It is true that the trial oourt, in ita findinga of fact and conclusiona <br />of law, went further than we advocated and declared that upon filing of applications <br />by the Department of Finance to appropriate watar for tha benefit of the Cantral <br />Valley Project, the landowners within the proposed service area acquired vested <br />property rights to receive and use a proportionate share of water to be made avail- <br />able by the project works, Bubject to the powers of the State Engineer previously <br />set forth. It is our position that upon filing an application, the applicant <br />acquiras meraly a conditional right of priority which oan ripen into a vested right <br />to the usa of water only when benaficia1 use i. comp1ated pursuant to parm1t i.aued <br />by tha State Engineer. With re.pect to the applications filad by the State for the <br />benefit of the Central Valley Project, which were later aaaigned to the United <br />States Bureau of Reclamation as the constructing agency, this cond1 tional right of <br />priority was and 18 held in trust for the beneficiaries" the water users, who become <br />identified as such upon execution of valid contracts between their districts and <br />the United States or upon dalivery of watar to them. However, it i. believed that <br />this distinction can be adaquately explainad and olarified in a ra.pondent's brief <br />without attacking the judgment itself. <br /> <br />Tha conclusion of the trial court that under California law the right to <br />the use of water is appurtenant to the land upon which it is used, is considered to <br />be undeniably correct as applied to the facts under review. Reference is made to <br />my memorandum. to A. D. Edmonston, Executive Officer, Water Project Authority, <br />entitled "Appurtenant Water Rights in California", dated May 15, 1953, for a. co:rlp:re- <br />hensive renev of California law upon this question. The apparent exception where <br />