Looking for something fun and educational to do this weekend? Why not check out the Oregon State Fair! This year’s fair runs through Monday, September 4th. The event boasts tasty snacks, a stacked lineup of musical guests, and events celebrating Oregon’s farm and agriculture community. This coming weekend marks the second and final weekend of the fair and is being held as usual on the Salem, Oregon Fairgrounds.

While you’re there, be sure to stop by the Oregon Women for Agriculture booth. Founded in 1969, Oregon Women for Agriculture educates the community on the importance of sustainable agriculture to the environment and economy.

Find event details on the Oregon State Fair website by clicking here: https://oregonstatefair.org/.

Katherine Schroeder is crossing the United States for the second time on her bicycle. This week at the headwaters of the Mississippi, she encountered the sculpture titled “Heartwaters – Caretaker Woman.” The bronze sculpture was created by artist and member of the Fond du Lac Band Jeff Savage in 2005.

The sculpture depicts a woman with long, flowing hair releasing a group of turtles from a basket. The caption accompanying the piece describes that the woman is “renewing the seasons and continuing the waters of life.” The piece holds a deep meaning and reverence for water which can be found in the Anishinaabe (Ojibwe) belief that women are the caretakers of water. The turtles depicted in the sculpture are also symbols of water, as well as the many directions life can go (as turtles live in water, walk on land, and breathe air).

Ultimately, this beautiful work of art symbolizes the fundamental importance of water as a source of life and as a resource that must be preserved for future generations. The piece can be found at the Mary Gibbs Mississippi Headwaters Center in Itasca State Park. We thank Katherine Schroeder for sharing these photos as she makes her way across the country!  

            Schroeder Law Offices is pleased to announce that Kelsey Seibel has joined the firm as a new associate attorney in Portland, Oregon. Kelsey received her Juris Doctorate from the University of Denver Sturm College of Law in May 2021. She was admitted to the Oregon State Bar on February 24, 2022.

            Kelsey Seibel gained experience in water law through working on the University of Denver Water Law Review during law school, of which she served on the editorial board for two years as an Articles Editor. Kelsey also received a Bachelor of Arts in Economics and Environmental Studies from the University of Wisconsin – Madison. While studying for her Bachelor’s, Kelsey’s area of focus included environmental policy and history surrounding global environmental issues.

            Kelsey’s previous professional experience includes clerking for Judge Christine C. Antoun in the Colorado Judicial Branch Second Judicial District in Denver, Colorado. During her time, she was awarded “2022 Outstanding Courtroom Employee.”

            Kelsey grew up in Milwaukee, Wisconsin along Lake Michigan. When asked about her interest in water law, Kelsey says, “I always knew I wanted to work with natural resources and in the environmental law area. When I decided to go to the University of Denver for law school, I chose to write on the Water Law Review to learn more about water law and water rights in the west. I enjoy the area of water law because it combines my interests in efficient use of natural resources with sustainable growth and allocation of resources.”

            For fun, Kelsey enjoys outdoor activities like camping, running, and biking, as well as baking, cooking, and watching Wisconsin football.

            Kelsey could not be more excited to join Schroeder Law Offices and is determined to work as a passionate advocate to assist in all client needs.

What brought you to Schroeder Law Offices?

I had been interested in the legal field for some years before I started with Schroeder Law Offices. I was working in a different industry and was finally ready to make a change when I found SLO. Ultimately, it was the close-knit office culture, opportunities for education, and fascinating specialty that convinced me that this was where I was meant to be.

What is your go-to productivity trick?

I am a strict to-do list person. No matter how small the task is, it’s added to my list. If I really need to buckle down and focus on a large task I have found that listening to brown noise is extremely effective at calming and providing focus.

What is something you find fascinating about water law?

The first aspect that drew me in was the history. I love to research water rights, and it is also so interesting to learn about rights stemming from the early 20^th century and even earlier.

What do you like to do for fun on the weekends?

My favorite down time activity is spending time with my husband and my dog, either at home or exploring the trails in the Pacific Northwest. Otherwise, I like to binge watch a good television show and catch up on reading.

What is your favorite book or movie?

Pride and Prejudice by Jane Austen.

What’s it like to work at Schroeder Law Offices?

Every day is a new adventure.

April 22^nd, 2023, is the 53^rd annual Earth Day celebration. The theme of this year’s holiday is “Invest in Our Planet.” The preservation and efficient use of water, a vital natural resource, leads all that we do at Schroeder Law Offices. As a water law office, Schroeder assists municipal water users and districts, individual and family farms, and ranches to promote sustainable water use throughout Oregon, Nevada, Idaho, and Washington. To celebrate, let’s brush up on some Earth Day history.

The beginnings of Earth Day can be traced back to an oil spill off the coast of Santa Barbara in 1969. Because of its devastating effect on the surrounding nature and wildlife, the public’s concern over what could be done to protect the environment grew. After the spill, Wisconsin senator Gaylord Nelson inspired a nationwide “teach-in” day. Senator Nelson enlisted the help of a young activist Denis Hayes, fellow senator Pete McCloskey, and numerous volunteers and activists thereby creating the first Earth Day on April 22^nd, 1970. 20 million people celebrated the first holiday, prompting nationwide demonstrations, protests, and teach-ins.

Earth Day is now a global event celebrated each year through demonstrations, events, and acts of service!

To keep the mission of Earth Day in mind this year, Earthday.org created a list of the many ways you can take care of the earth in your day-to-day life. Some ideas you might try:

• Attending a tree planting event
• Participating in a community beach cleanup
• Planting a pollinator garden to help the population of bees, butterflies, and other organisms in your local ecosystem
• Attending an Earth Day event (find one in your area using this interactive map)
• Reading more on Earth Day history to explore the origins of the holiday

This weekend, please join us in celebrating Earth Day’s mission.

To stay up to date on all things water, be sure to subscribe to our weekly e-newsletter to the right.

Oregon Women for Agriculture will be hosting their Annual Auction and Dinner on April 15th, 2023 at the Linn County Fair & Expo Center in Albany, Oregon. This year’s theme is “From Farm to Forest- and Everything in Between.” Shareholder Laura Schroeder, firm administrator Scott Borison, and senior paralegal Tara Lomacz are excited to be attending the event.

Founded in 1969, Oregon Women for Agriculture began with the mission to “work together to communicate the story of today’s agriculture.” The organization is passionate about educating the community on the importance of sustainable agriculture to the environment and economy. Their work can be found in their support of programs including Oregon Agriculture in the Classroom and the Summer Agriculture Institute. These programs are meant to help students learn the importance of agriculture in their day-to-day life, like understanding how their food makes it from the farm to the grocery store. OWA is also responsible for the popular crop identification signs that can be found all along Oregon’s roadways. These signs help spread the word on the hundreds of different crops farmers grow all across the state.

The 2023 Oregon Women for Agriculture Annual Auction will help support OWA so that they can continue their work in the Oregon community for years to come! The event will feature a silent auction and dinner, as well as a live auction beginning at 7:15 pm. Visit the event website here for details on ticket cost, reserving a table, and more. We hope to see you there!

Join the US Committee on Irrigation and Drainage (USCID) on April 12th, 2023 at 11:00 AM (Pacific Time) for a webinar on How to Obtain Title Transfer for Federal Water Projects. Frank Dimick, of Dimick Water Resources Engineering, will host the 30-minute presentation and Q+A session via Zoom. Participants will also learn how the United States can gain international recognition on water projects. After, Schroeder Law Offices’ shareholder and USCID Vice President Therese Stix will give an update on USCID and share more details about the upcoming USCID Conference in October 2023. We hope to see you there!

To learn more about USCID’s mission and upcoming conference, visit their website here.

At the end of 2021, the Nevada Division of Water Resources (NDWR) completed a public survey to update the 1999 State Water Plan. The previous plan made general water data and information available to the public and addressed water policy issues and recommended actions for a sustainable water future. A lot has changed since 1999, and to address those changes, in 2022 NDWR released the results of the 2021 survey.

1,192 people in total participated, including a wide range of agricultural producers, business owners, tribal members, and more. Respondents were also from both urban and rural areas, with 39% of respondents living in rural or semi-rural areas of Nevada.

The biggest consensus in response to the survey was that of water sustainability. A striking 77% of respondents agreed that the sustainable use of water is extremely important. 79% shared that they now think about water issues more than they did in the past.

Among the biggest concerns were long-term water planning, wasteful or inefficient water use, and the need for conserving water for the future. In rural areas, water availability for agriculture and the transfer of water from rural basins to supply urban areas were major concerns.

Respondents were also asked to give their thoughts on potential long-term plans going forward. Many called for more public outreach, emphasizing the need for accessible, research-based data. Respondents also urged NDWR to provide more opportunities for stakeholder engagement. 

NDWR plans to use these findings to develop a water plan that addresses respondents’ concerns. The agency will consider the survey results when mapping out the direction of future outreach and education efforts. To read the full overview of survey responses, click here.

The Oregon Water Resources Department (“OWRD”) has stopped processing new groundwater applications and begun to severely limit groundwater permit extensions. This policy change places a significant burden on groundwater permittees and will directly impact agriculture in Oregon. Ultimately, OWRD’s policy change will significantly limit agricultural expansion in the state. 

In his article “Oregon Moves to Limit Groundwater Development,” Steve Shropshire cites “Draining Oregon,” the 2016 report published in The Oregonian, as the major catalyst for increased regulation. The Oregonian article covered groundwater issues in Oregon and argued that OWRD was over permitting the use of the state’s groundwater supply. Soon after The Oregonian article, OWRD updated their Integrated Water Resources Strategy to name groundwater as one of the biggest issues concerning Oregon’s water future.

Even though OWRD has not passed a rule, OWRD has ceased processing new groundwater applications and limited its issuance of groundwater permit extensions as a policy matter. OWRD has also limited the issuance of new groundwater rights in the Walla Walla, Harney, and Umatilla basins. These actions will pose a big change for agriculture in Oregon, as acquiring new groundwater rights will be much harder, if not impossible. To participate in the rule making process when that occurs, go to:  Water Resources Department: Proposed Rulemaking : Oregon Administrative Rules : State of Oregon

Stay informed on the latest groundwater issues, current events, and all things water by signing up for Schroeder Law Offices’ weekly email newsletter to the right.

The current moment presents a number of unique challenges for water sustainability, including for farmers. When farmers do not have enough water to meet the population’s need for food and goods, the results can be devastating to certain population groups. In his article There Has Never Been a More Important Time to Protect American Food Production, Dan Keppen writes that farmers are facing this water challenge right now.

Due to years-long extreme drought in the west, farmers have been struggling to make ends meet. This has led to a decrease in local agricultural production in the U.S. Unfortunately, this decline comes at a time when the world has been rocked by extreme climate events and global supply chain issues. These challenges make food more costly to produce and purchase.

What makes the situation so urgent is that the need for food is rising. A 2022 GAP Report found that 40 million people around the world experienced “emergency or catastrophic levels” of food insecurity. To meet the population’s growing needs, agricultural output will have to increase by 1.73 percent each year. Keppen writes that bringing U.S. communities the nutritious, affordable food they need will require an increase in local agricultural production.

To learn more about water use and conservation, check out Dan Keppen’s previous blog “There’s a Crisis on the Colorado River.” The article explores the challenges faced by farmers when their water access is reduced. Though reduced water access may be done in an effort to conserve, the reduction can lead to food shortages and financial insecurity for local communities. With so many interests involved, the situation in the west illustrates that a solution to water issues will have to be complex and innovative.

On October 3^rd, 2022, the Supreme Court heard the oral argument for the first case of its 2022-2023 term: Sackett v. EPA. The case calls into question the definition of “Waters of the United States” (WOTUS), as it will decide the proper test to determine which wetlands are considered WOTUS, and therefore subject to federal regulation from the Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers under the Clean Water Act.

The case originated after Michael and Chantel Sackett purchased an Idaho property near Priest Lake in 2004. After the couple began building a home on the property in 2007, the EPA informed the Sacketts that they must stop construction and apply for a permit since their land contained a wetland that was adjacent to protected waters. Since the wetland is separated from Priest Lake by a road, the Sacketts claimed that their land is not subject to the Clean Water Act’s jurisdiction and sued the EPA. What followed is a legal battle that could potentially change which wetlands are considered WOTUS going forward.

The Clean Water Act was passed in 1972 in an effort to protect waters of the United States from pollution. Since then, the extent of protections provided by the Clean Water Act has been extensively questioned and changed. These changes  have been brought about by  Supreme Court rulings, plurality and concurring opinions of Supreme Court justices, and presidential administrations, especially those of Presidents Obama, Trump and Biden. 

The basis of both the Sacketts’ and EPA’s arguments can be found in the two waters tests proposed in the 2006 Supreme Court case Rapanos v. United States. The Sacketts have relied on the plurality opinion written by late Justice Antonin Scalia to support their case, which argued that wetlands should be considered WOTUS if the adjacent channels contained a “permanent” body of water such as a river, lake, or stream. Additionally, Justice Scalia argued that a wetland can only be considered WOTUS if it featured a “continuous surface connection” with a more permanent body of water.

The EPA is relying on retired Justice Anthony Kennedy’s concurring opinion in that same 2006 case. Justice Kennedy argued that wetlands must include a “significant nexus to navigable waters.” According to this definition, a wetland does not necessarily have to be continuously connected to navigable waters in order to be protected. Instead, the wetland must have a significant effect on the “chemical, physical, and biological integrity of the Nation’s waters.”

In response to  Sackett v. EPA, many agricultural groups have shared their experiences of uncertainty and hardship brought on by the shifting definition of WOTUS over the years. The Family Farm Alliance, along with other agricultural groups, including the USA Rice and National Association of Wheat Growers and the National Corn Growers Association, submitted an amicus (“friend of the court”) brief earlier this year to voice its perspective on the matter. The brief highlights the problems farmers and ranchers have faced due to the lack of clarity regarding the Clean Water Act’s jurisdiction, which has created confusion over whether waters on their property are subject to EPA and U.S. Army Corps of Engineers regulation.

During the October 3^rd oral argument hearing for Sackett v. EPA, Justice Ketanji Brown Jackson questioned the Sacketts’ legal counsel on the  difference between “abutting and neighboring wetlands” if the goal of the Clean Water Act is to protect the nations’ waters “chemical, physical, and biological integrity.” Justice Neil Gorsuch commented on the lack of clarity in the Clean Water Act’s definition of “adjacent,” which Justice Sonia Sotomayor pointed out made some of her colleagues critical of whether the term was “precise enough.” Justice Sotomayor went on to question whether there might be “another test that could be more precise and less open-ended” than the adjacency and significant nexus tests to determine which wetlands are protected. Sackett V. EPA, 21-454 U.S. (2022)  

As of now, Sackett v. EPA is pending adjudication before the Supreme Court. Considering the scope of the case, many expect the upcoming decision to have a significant impact on both environmental interests and the agricultural industry.

To learn more about wetlands and Clean Water Act jurisdiction, check out Schroeder Law Offices’ webinar on Wetlands: Due Diligence for Ditches, Drains and Ponds. 

As of September 13^th, Oregon Water Resources Department Director Tom Byler has officially retired after 27 years working for the state of Oregon. A new OWRD director will be appointed by Oregon’s next governor. To serve for the remainder of her term, governor Kate Brown has appointed acting director Doug Woodcock, who previously worked as the Deputy Director of Water Management.  

During his tenure as the director, Tom Byler dedicated his time to modernizing the department’s programs and services to meet the Oregon community’s ever changing water needs. Byler also worked to increase OWRD’s capabilities to collect and analyze data to manage Oregon’s surface and groundwater resources throughout the state.

In the official press release regarding his retirement, Byler said, “As I look to the future of water resources in Oregon, I anticipate that water issues will continue to become more and more complex and challenging.” Byler added, “I am excited about the Department’s increasing capabilities to help communities address those issues.” Though he may be retiring from his current position, Byler intends to carry on his work in water and natural resources issues into his retirement.

The Oregon Water Resources Department is the state agency responsible for ensuring adequate and sustainable water supply to meet present and future needs. To learn more about OWRD, visit their website here: https://www.oregon.gov/owrd/. 

            Schroeder Law Offices had a blast working at the 2022 Oregon State Fair. If you weren’t able to make it down to Salem for the annual festivities, we’re here to fill you in. During the fair’s kickoff weekend, Tara Lomacz and Madeleine Criglow worked the Oregon Women for Agriculture booth in Salem Fairgrounds’ Columbia Hall. This space was dedicated to showcasing agriculture in Oregon along with the beautiful works of local authors, photographers, and textile artists. At the Oregon Women for Agriculture booth, Tara and Madeleine had a great time speaking with fairgoers on agriculture and water issues in Oregon.

            To encourage fairgoers to stop by the booth, guests were challenged to spin the trivia wheel for questions on agriculture and farming in Oregon. The questions tested guests’ knowledge on everything from Oregon’s state beverage (milk, if you’re wondering) to how many gallons of water a cow drinks in a day (a whopping 20-30 gallons!). Guests were delighted to realize that they already knew a thing or two about Oregon agriculture (and were pretty happy about the prizes, too).

The Oregon Women for Agriculture booth also featured a map highlighting the water issues currently affecting agriculture and local farmers throughout Oregon. As fairgoers read through the map, many shared their own experiences with water issues and asked about what might be done to protect the natural resource in Oregon. It was rewarding to see guests take such an interest in local agriculture, and Schroeder Law Offices was happy to spread the word on its importance to the environment and economy.

            As the trivia games and discussions came to a close, the fair was just getting started. There was still tons of fun to be had, from checking out live music to indulging in every snack you could imagine. Leaving the fair with an ice cream cone in hand, we were grateful for the opportunity to join in on the fun!

This year’s Oregon State Fair boasts some truly spectacular sights, including agriculture competitions, musical guests, and plenty of opportunities to learn about Oregon farmers and ranchers. If you’re looking to end your summer on a high note, why not Join Schroeder Law Offices at the Oregon State Fair? Friday marks the start of the 11 day event, which runs from August 26^th to September 5^th at the Salem, Oregon Fairgrounds.

Tara Lomacz will be working the Oregon Women for Agriculture booth on Friday, August 26^th from 1 to 3:30 PM and Sunday, August 28^th from 3:30 PM to 6 PM. Madeleine Criglow will also be working the booth that Sunday afternoon to join in on the fun.

Come celebrate and learn about the achievements of all Oregonians, including Oregon’s farmers and ranchers. While you’re there, check out the exciting special events, thrilling competitions, and tasty food.

Find event details on the Oregon State Fair website by clicking here: https://oregonstatefair.org/. We hope to see you there!

Laura A. Schroeder is the founding partner of Schroeder Law Offices. Long respected in the water rights arena, Laura has generously shared her valuable experiences and provided some great advice. A few questions we asked Laura:

What motivated you to practice water law and start Schroeder Law Offices?

I used to work on a farm and did work related to irrigation. From that experience, I learned the importance of water. Also, my father was a lawyer and I got Influenced by him and became a lawyer. In my early practice years, I worked in a number of law firms and practiced in different areas of law. I then realized that my passion was in water law, so I started my practice.

What is your go-to productivity trick? How do you stay motivated?

The most important thing is that I really enjoy what I do, and I like the people I work with, so I always get motivated when I work. Also, I have the habit of mediation. Meditation helps me center myself.

What do you consider the most important thing about being a good lawyer?

I find the most important thing is to be proud of your profession. I dislike jokes about lawyers because that is disrespectful.

Where can I find you on the weekend?

I love spending time with my family! Last weekend I helped with cleaning at my son’s place, and the week before that I attended my niece’s wedding. I always consider family the most important thing. When I have free time, I also help with writing family genealogy.

What is one thing you like the most about working at Schroeder Law Office?

I like it because lawyering is an intellectually challenging job. In the legal profession, the challenge you need to face constantly changes, and you need to develop new strategies based on the new challenge. Also, at Schroeder Law Offices, everyone has different perspectives on solving problems. I enjoy discussing and developing new strategies with everyone.

Do you have some advice that you can give to young lawyers and law students who are interested in water law?

Beside law school, it is important to have real-life practice experiences as much as possible, because in the legal profession you need to work with people. When I started to practice, I did clerkship with the government, worked with my father, and worked in private law firms. I learned from that experience that working with different kinds of people and lawyers is essential, because it offers you an opportunity to learn from the people you interact with. If you just focus on just one thing, you will definitely miss out on other things.

Echo Zhang is a summer law clerk at Schroeder Law Offices. As a new addition to the office, she is eager to learn everything about water law and gain the necessary skills as a practicing attorney. A few questions we asked Echo:

What brought you to Schroeder Law Offices, and what’s your experience?

I’m currently a rising 3L student at the University of Washington. Before joining Schroeder Law Offices, I had law clerk experiences at Chinese law firms specializing in commercial dispute resolution. On the other hand, I developed an interest in general environmental law and water law. Pursuing my interests, I joined the Washington Journal of Social & Environmental Justice and now serve as the Executive Managing Editor.

I first learned of Schroeder Law Offices when I browsed through its website. I was fascinated by the passion for water law shown there. I went through the educational water rights videos on the website and decided that I wanted to learn more about water law. After coming to work here, I found that everyone is excellent, and I’m eager to learn more from everyone!

What is your go-to productivity trick?

Caffeine in the morning, and music at night.

Favorite recipe?

I love cooking slow-cooked recipes, especially braised beef brisket with tomatoes.

Are you an early bird or a night owl?

Night owl. Although fresh air in the morning is great, I love the feeling of freedom at night!

Where can I find you on the weekend?

At home cooking or going to Gas Works Park with my friends to get some fresh air and admire the Seattle skyline.

Coffee or tea?

Both!

Describe your job in three words:

Fun, challenging, and supportive.

What is working at Schroeder Law Office like?

Everyone is supportive and willing to teach me new things. I’m happy to explore water law with my colleagues.

[This article was originally published in the February, 2022 Oregon Real Estate and Land Use Digest by the Section on Real Estate and Land Use, Oregon State Bar]

In Oregon, water rights must be beneficially used according to their terms at least once every five years to remain in good standing. If they are not, water rights are subject to cancellation for forfeiture. ORS 540.610. Thus, Oregon’s forfeiture statute enacts the “use it or lose it” principle that is common in Prior Appropriation water system states. Water right holders must use their water rights or risk cancellation.

In the late 1980s, the Oregon State Legislature recognized instream beneficial uses for water, allowing the State to hold or lease water rights for instream purposes such as recreation, navigation, pollution abatement, and fish and wildlife. Under ORS 537.348, water right holders may temporarily lease water rights to the State for instream purposes for up to five years, renewing such instream leases thereafter. The statute provides that water rights leased instream are “considered a beneficial use.” ORS 537.348(2). As such, the forfeiture provisions of ORS 540.610 are not triggered during the period a water right holder leases their water right instream. Many water right holders use the instream lease program to safeguard their water rights in times when such water rights might not otherwise be used once every five years. The instream lease program serves dual purposes of providing instream flows while protecting private property interests in water use.

WaterWatch of Oregon v. Water Resources Department, 369 Or 71 (2021), questioned whether a hydroelectric water right could be leased instream and thereafter, once the lease(s) expired, be used again for hydroelectric or other beneficial uses of water. At issue in this case is a hydroelectric water right held by Warm Springs Hydro, LLC (“Warm Springs”). In 1995, Warm Springs’ predecessor shut down the associated hydroelectric project and began a series of instream leases from 1995 to 2020. WaterWatch of Oregon (“WaterWatch”) petitioned for judicial review of the Oregon Water Resources Department’s (“OWRD’s”) final order approving the 2015-2020 instream lease, and Warm Springs intervened.

In addition to the forfeiture provisions that are applicable to all water rights, ORS 543A.305 (enacted in 1997) applies specifically to hydroelectric water rights. The statute provides:

Five years after the use of water under a hydroelectric water right ceases, or upon expiration of a hydroelectric water right not otherwise extended or reauthorized, or at any time earlier with the written consent of the holder of the hydroelectric water right, up to the full amount of the water right associated with the hydroelectric project shall be converted to an in-stream water right, upon a finding by the Water Resources Director that the conversion will not result in injury to other existing water rights.

ORS 543A.305(3). Further, the statute specifies that the conversion to an instream water right “shall be maintained in perpetuity, in trust for the people of the State of Oregon.” ORS 543A.305(2).

Prior to this case, OWRD interpreted ORS 543A.305(3) similar to the forfeiture statute; that is, so long as a hydroelectric water right continues to be used for hydroelectric water use or another beneficial use under an instream lease, the hydroelectric water right is not subject to conversion to a permanent instream water right. WaterWatch challenged OWRD’s interpretation, arguing hydroelectric water rights are subject to conversion five years after the specific hydroelectric use of water ceases. The Marion County Circuit Court and the Oregon Court of Appeals both ruled in favor of OWRD and Warm Springs, but the Oregon Supreme Court reversed and remanded the decision on December 23, 2021.

The Oregon Supreme Court reviewed the text of the two statutes in conjunction with the context of the statutes and legislative history. The Court held “the use of water under a hydroelectric water right” means water use only for hydroelectric purposes as specified in the water right certificate, and does not include beneficial use under an instream lease. WaterWatch of Oregon, 369 Or at 88-89. The Court reasoned that once a hydroelectric water right is leased instream, the beneficial use is converted to another purpose other than hydroelectric water use. Id. at 91-94. The Court further held that “ceases” under the statute has an ordinary meaning, so Warm Springs’ water right was subject to conversion to an instream water right in the year 2000, five years after the hydroelectric project was shut down. Id. at 89-91.

The Oregon Supreme Court’s ruling will have significant impacts on hydroelectric water rights in the State. Most obviously, other hydroelectric water right holders in situations analogous to Warm Springs may face conversion of their hydroelectric water rights to permanent instream water rights. As such, property owners who believed they were appropriately safeguarding valuable water right holdings through instream leases may find themselves mistaken.

Another consequence of the Court’s decision is that instream leases over four years in length are essentially “off the table” for hydroelectric water rights. Hydroelectric water uses must resume within five years or risk conversion to permanent instream water rights. Thus, there is no incentive for hydroelectric water users to lease their water rights instream to avoid forfeiture, and, in the process, guarantee instream flows. Instead, the ruling incentivizes quick transfers to other, possibly more consumptive, water uses through the transfer process before the hydroelectric water right is converted to a permanent instream water right. ORS 543A.305(7).

Finally, conversion of appropriative water rights to instream water rights allows the State to enforce against upstream junior water users to ensure instream rights are satisfied. Conversion of large, early priority hydroelectric water rights to permanent instream purposes may have the outcome of increased regulation against other water right holders.  

The original article is available in PDF format here.

The Oregon Legislature’s short session officially begins today, February 1^st. It is anticipated that water users and water managers alike can catch their breaths somewhat during the short session, since not as many water-related bills will be considered.

The 2021 regular session was a marathon for those of us closely following or involved in water resources policy and law. In that session, efforts continued to correct the State’s questionable opinion that storage water rights cannot be modified through the transfer process. Only character of use transfers are reauthorized for the time being. Additionally, a threat to the due process rights of regulated water users was advanced. Only through great efforts was the attempt abated with some compromises of additional procedures around stays of agency orders during judicial review. Moreover, an onerous and costly water use reporting bill was proposed, despite information from the Oregon Water Resources Department that other types of data should be pursued, like additional stream gages and satellite data for evapotranspiration. The bill did not pass, but it did spur broader conversations about water management and planning that continue currently. Finally, the groundwater exemption for livestock came under attack, as proponents unsuccessfully attempted to limit the exemption to a daily maximum. In addition to these bills, many more were proposed, some of which were enacted into law.

In 2020, I began the position of Water Resources Chair for the Oregon Cattlemen’s Association. The 2021 Legislative Session was my first opportunity to participate in a large number of legislative bills on behalf of the organization. The experience certainly kept me on my toes and gave me an entirely new perspective of legislators and those who engage heavily in legislation. The bills are numerous, long, and ever-changing throughout the session. There is always too much work to be done in too little time to build consensus, draft written testimony, and testify in hearings. In 2021, we also tackled the additional hurdle of remote hearings on proposed bills due to the Covid-19 pandemic. This is to say that the 2021 legislative session was challenging, but also very exciting and rewarding. I was honored to receive an award from the Oregon Cattlemen’s Association in recognition of these efforts for “distinguished Committee leadership, responsibility, knowledge, expertise, advocacy, and tireless service to cattle producers and the Oregon Cattlemen’s Association.”

Short sessions of the Legislature in Oregon are not intended to address substantial changes in the law. Thus, it is not surprising that less water-related bills are anticipated this year. However, one priority that began receiving additional attention in 2021 is anticipated to continue at the forefront in 2022: water theft for illegal cannabis operations. Funding was provided in a special session in 2021, and numerous news articles detail the problem in the midst of the severe and continuing drought in Oregon and the West. House Bill 4061 (2022) would allow the Oregon Water Resources Department to obtain warrants to inspect private property. Additionally, the bill would require persons who both deliver water and receive water deliveries to ensure such water is from legal sources and keep records to that effect. Finally, the bill proposes to increase civil penalties for illegal water use when the crop grown is cannabis.

It is possible that additional water-related bills will be proposed in the 2022 regular session. For the time being, I will enjoy a little bit of a break on this front, being mindful that the 2023 regular session is just around the corner!  

(The below article is reproduced from the January, 2022 issue of Oregon Cattleman, the publication of the Oregon Cattlemen’s Association. For a PDF copy of the article, use this link.)

2021 was a terrible water year in Oregon. We experienced record high temperatures and record low precipitation, after several years of already below-average precipitation, little or no carryover water in reservoirs, historically dry soils, and severe wildfires. This year highlighted the need for additional water storage to increase water security during times of drought.

At the Oregon Cattlemen’s Association’s annual meeting, the Water Resources Committee voted to adopt a resolution promoting water infrastructure and storage to guide the organization’s priorities going forward, and the Board adopted the resolution. This policy will be especially important in coming years, as we face increasing roadblocks to achieving water storage and infrastructure goals. State water policies are oftentimes conflicting, recognizing the importance of creating additional storage, while at the same time promoting activities that foreclose opportunities for storage.

For example, Oregon’s Integrated Water Resources Strategy includes a “recommended action” to plan and prepare for drought resiliency. The Strategy also includes a “recommended action” to develop instream water protections. These two strategies are not necessarily opposed, however, when one strategy is actively pursued while the other falls by the wayside, the State’s actions do not balance both needs. Moreover, only so much water exists within water basins, and the creation of instream water rights takes that water “off the table” for purposes of increasing or creating water storage.

In 1987, the Oregon State Legislature passed the Instream Water Right Act allowing the State to convert minimum perennial instream flows to instream water rights, apply for new instream water rights, and lease or transfer existing water rights to instream uses such as recreation, pollution abatement, and fish and wildlife. Thus, instream water rights are not a new concept. However, the Oregon Department of Fish and Wildlife’s (ODFW’s) website details that the agency “re-established” its instream water rights filing program in 2016, “consistent with Oregon’s Integrated Water Resources Strategy.” Thus, we have seen in the last few years hundreds of applications for instream water rights filed by ODFW in different water basins throughout the State. ODFW’s policy stated in its administrative regulations is “to obtain an in-stream water right on every waterway exhibiting fish and wildlife values.” OAR 635-400-0005.

Unlike appropriative water rights, instream water rights are not constrained by the amount of water actually available to fulfill the instream water right. Rather, ODFW’s applications may request the amount of water ODFW determines is needed to support the fish and/or wildlife species. As such, ODFW applications regularly include requested rates that exceed available stream flows. Such applications, if approved, have the effect of precluding any new appropriative water use rights within or upstream from the stream reach designated in the application.

Moreover, once instream water rights are in place, existing water right holders lose the flexibility to transfer their points of diversion upstream. The instream water right holder (the State) must consent to the “injury” the transfer would cause. In exchange for its consent, the State typically requires mitigation by placing a portion of the transferred water rights instream. The 1987 Instream Water Right Act provided, “The establishment of an in-stream water right…shall not take away or impair any permitted, certificated or decreed right to any waters or to use of any waters vested prior to the date the in-stream water right is established…” ORS 537.334(2). In practice, however, existing water right holders lose the flexibility they might have otherwise enjoyed to modify their water rights as needed for their operations.

This is not to say that instream water rights have no place or value. The reason for outlining the increased emphasis on instream rights recently, and the effects such rights have on new and existing appropriative water rights, is to point out that we, as a State, are falling short on drought resiliency preparation efforts at the same time water resources are being irreversibly committed to instream purposes. In 2013, when the Legislature passed Senate Bill 839, establishing the Water Supply Development Fund, many hoped that the fund would be used to increase water storage throughout the State. As a whole, that fund has not created substantial new storage. The State must do better to carry forward all components of the Integrated Water Resources Strategy, including planning and preparation for drought resiliency through water storage and infrastructure improvements.

The Oregon Water Resources Department (OWRD) received a large funding package in the 2021 regular session of the Legislature. The Oregon Cattlemen’s Association joined a coalition letter to OWRD outlining recommended priorities for implementing that funding. The first priority in that letter is a request that OWRD renew its focus on increasing storage and improving disaster resiliency. Congress recently passed the Infrastructure Investment Jobs Act, and the letter further asks OWRD to develop a plan to leverage federal funds in support of these efforts.

In addition to government reprioritization and implementation of plans to prepare for droughts, individuals and groups from the agriculture community will need to lead the way and identify projects in their communities. It is possible that storage opportunities may be identified through place-based planning efforts in partnership with State agencies. Soil and water conservation districts and other local entities can also assist individuals to navigate the myriad of questions and processes involved. The Oregon Cattlemen’s Association will continue to advocate for legislation and government actions in furtherance of this goal, and assist members who are interested in exploring new or expanded water storage opportunities.

If you are interested, you might also check out Schroeder Law Offices’ free webinar about winter storage, available at: http://water-law.com/water-right-video-handbook-guide/.

Laura Schroeder and Therese Ure Stix joined Alan Schroeder in questioning agency deference in a recent op-ed piece published by the Capital Press: Commentary: Get ready for sage grouse management plan 4.0 | Columns | capitalpress.com

It is not unusual for natural resource attorneys to be on the opposing side of federal and state agency decisions.  Unlike a civil courtroom, where both sides have an even playing field, an individual on the opposite side of an agency decision plays on slanted turf.  The ball rolls more easily to the agency’s goal post.

The cause of the uneven playing field is “agency deference.”  Federal and state establish agencies assuming that such agencies have expertise in the field – for example, water rights or public grazing – that a permittee or civil judge does not have.  This assumption is based on a special set of statutes called the Administrative Procedures Act (“APA”). The APA contains “rules” by which agency decisions are challenged.  There are both state APAs and the federal APA that govern the different types of agencies.  The APA as it is written and interpreted by courts allows for “agency deference.”  For more, see the Capital Press article.

Schroeder Law Offices is often involved in hearings before administrative law judges. The firm has extensive experience in this realm. Recent and pertinent educational videos are found in the Water Rights Video Handbook or Guide.