The Oregon Department of Fish & Wildlife (“ODFW”) filed applications for numerous instream water use rights in the last few months for salmon habitat in the Hood River basin. Instream water use rights in Oregon are held by state agencies for the preservation of a public purpose, like preserving salmon habitat. Beginning in December 1, 2016, ODFW began filing a series of applications with the Oregon Water Resources Department (“OWRD”) in the Hood River basin. The most recent applications were filled May 1, 2017.

ODFW filed similar instream water use applications in the past on various Oregon stream reaches. Such applications have been protested on the grounds that ODFW requested more water than is actually available from the source, that the amount of water requested is more than what is necessary for fish preservation and is not supported by data, injury to senior water users, detriment to the public interest, and more. The amount of water requested in the Hood River basin applications ranges from 10 cubic feet per second (“cfs”) to 175 cfs, depending on the application and time of year.

OWRD’s regulations allow instream water use rights to exceed the volume of water actually available at the source. Instream water use rights may be granted when a stream is already fully appropriated, although regulations state that instream rights may not exceed natural flows. Therefore, should senior water use rights be cancelled in the future, such cancellation would not free up water for new appropriations; rather, the cancelled water use rights would be swallowed by the ODFW instream rights that appropriate more water than is available at the source.

ODFW must provide scientific information used to determine the habitat needs supporting its water use applications. Two scientific methods were used in the recent applications. First, the quantities were determined using the Oregon Method, developed by Thompson in 1972, which determines the theoretical minimum needed for salmon spawning, adult passage, and rearing. (See http://www.dfw.state.or.us/fish/water/). The method focuses on the shallowest portion of a stream and determines the minimum flow required for salmon habitat needs. Using another study, habitat for the East Fork of the Hood River was determined using river modeling software. (See the draft report at http://www.co.hood-river.or.us/vertical/sites/%7B4BB5BFDA-3709-449E-9B16-B62A0A0DD6E4%7D/uploads/Appendix_C_Instream_Flow_Assessment_Draft_Report.pdf).

While the public comment period has passed for many of the applications, comments may still be submitted for the May 1, 2017 applications (Application Numbers IS 88336, IS 88333, IS 88332) after OWRD issues Initial Reviews for those applications. Anyone may comment on the applications within 30 days of the initial review and public notice. Additionally, protests may be filed after OWRD issues Proposed Final Orders for the applications, and additional applications may still be filed by ODFW.

Make sure to stay tuned to Schroeder Law Offices’ Water Blog for more news that may affect you!

This article was drafted with the assistance of Law Clerk Jakob Wiley, a concurrent student at Oregon State University’s Water Resources Policy and Management graduate program and a law student at the University of Oregon School of Law.

As many know, Oregon is home to some pretty diverse soil types that allows Oregon to grow a vast variety of food and fiber. The climate is varied from western to eastern Oregon that also allows farmers to have some choice in farming methods including irrigation practices.  The never ending issue is water, especially if “mother nature” provides too much or not enough at any given time in the growing cycle.

In Oregon, 2,040,200 acres are used for Field Crops (13.1% according to a 2010 study). Of those 2.04 million acres, 37,000 are used for barley, 30,000 acres are used for corn, 370,000 acres are used for alfalfa hay, and 6,600 are used for hops.  While barley and most grains can be grown without applied irrigation, on dry land, all other commodities generally require applied irrigation.   In 2009, hay (all types) and grass seed were among the top 10 commodities in Oregon according to the Oregon Department of Agriculture.  Hay is a feed crop necessary for meat protein production while grass seed is largely used by the landscape industry including golf courses. These two commodities, hay and grass seed, brought in nearly $2 Billion, according to the OSU Extension Service. We use more land on commodity agriculture than any other type of agriculture, it’s no wonder there’s sticker shock when shopping at grocery stores, particularly for organic foods that require more inputs.

You can learn more information about Oregon crops, by visiting the USDA website or by going to the Oregon Department of Agriculture’s website. To keep informed about water use issues and news, subscribe to our blog. 

Schroeder Law Offices is excited to announce that J.D. Paralegal Lindsay Thane passed the Oregon State Bar, and will be licensed to practice law in Oregon upon her swearing in ceremony scheduled for May 18^th, moving into the position of Associate Attorney.

Lindsay joined Schroeder Law Offices in their Portland, Oregon office in 2016 after graduating from the University of Montana School of Law. Lindsay is an avid runner and enjoys competing in local road races. She loves being outdoors hiking with friends and family. Lindsay has also spent many summers water skiing on Flathead Lake near her home town in Montana.

Looking for a fun activity this weekend? Join Schroeder Law at the 30^th Annual Oregon Ag Fest at the Oregon State Fairgrounds in Salem! The event is FREE for children 12 and under with free parking.

Tara Jackson will be working the Oregon Ground Water Association booth Saturday morning and the Oregon Women for Agriculture booth Saturday afternoon. You will find Sarah Liljefelt at the Oregon CattleWomen’s and Cattlemen’s Association booths on Sunday.

Come experience Oregon agriculture! The event features hands-on exhibits, including pony rides, planting seedlings, sheep shearing demonstrations, and lots of farm animals to see and pet.

Find event details on the Ag Fest website by clicking here.

Partner Sarah Liljefelt and Assistant Administrator Kelley Wesson are heading to Olympia, Washington this weekend to race dragon boats with the Oregon Women Lawyers team, the Dragonflies, at the Port of Olympia. The Oregon Women Lawyers Dragonflies is an all-women, competitive dragon boat team made up of attorneys, paralegals, and other legal professionals. The team took bronze at last year’s race, and they are hoping to medal again this year! For more information about the team, visit their website. Come on down to the race if you are in the area. Sarah and Kelley would love to visit with you between race heats.

The Oregon Task Force on Drought Emergency Response met throughout 2016 to propose statewide recommendations to address current and future water shortages throughout the State. One of the task force’s recommendations has been embodied in House Bill 3051,[1] which has garnered support from Democrats and Republicans alike.

H.B. 3051 will help pay for the installation, repair, and replacement of measuring devices on authorized diversions and points of appropriation to measure groundwater use. The bill authorizes the use of the Water Measurement Cost Share Program Revolving Fund, which has been available since 2000 to incentivize surface water users to measure their water use, to now fund the installation or replacement of groundwater measuring devices.

This is a voluntary system that allows the Oregon Water Resources Department (“OWRD”) to work with landowners to install measuring devices at their points of appropriation or points of diversion. Additionally, the fund can pay up to seventy-five percent of the cost of installing the measuring device.

The widespread support for this bill stems from a desire to protect priority of water rights through improving the amount of information about groundwater use available to OWRD. OWRD uses this type of groundwater use data to better understand the availability of water in a basin, to determine how much water is available for withdrawal, and to better manage any interference between junior and senior groundwater users.

H.B. 3051 passed out of the Oregon House of Representatives on April 3, 2017 and has been referred to the Senate Environment and Natural Resources Committee.

[1] https://olis.leg.state.or.us/liz/2017R1/Measures/Overview/HB3051 

Co-Authored By: Attorney Therese Ure & Lisa Mae Gage

In August 2015 the United State Environmental Protection Agency (“EPA”) and the U.S. Army Corps of Engineers (“Corps”) put their stamp of approval on the Waters of the United States (“WOTUS”) final rule. The WOTUS rule significantly expanded the definition of “waters of the United States” under the Clean Water Act, granting federal regulatory control over virtually all waters in the United States. Many groups opposed this rule, arguing that it expands federal jurisdiction, resulting in the imposition of burdensome requirements on agricultural producers.

On February 28, 2017, President Donald Trump signed an executive order directing the Administrator of the EPA and the Assistant Secretary of the Army for Civil Works to review the WOTUS rule to ensure the nation’s navigable waters are protected, as well as to promote economic growth and show due regard for the roles of Congress and the States. See https://www.whitehouse.gov/the-press-office/2017/02/28/presidential-executive-order-restoring-rule-law-federalism-and-economic.

President Trump also directed the administrators, along with the heads of all executive departments and agencies, to consider interpreting the term “navigable waters” as it is defined in 33 U.S.C. 1362(7), and consistent with the opinion of late Justice Antonin Scalia in Rapanos v. United States, 547 U.S. 715 (2006). Considering these interpretations, one might construe “navigable waters” as waters in the United States, including the territorial seas, that are “navigable in fact” or readily able of being so.

This executive order was preceded by a House Resolution . See https://www.congress.gov/bill/115th-congress/house-resolution/152/text. The Resolution states WOTUS should be withdrawn or vacated as the EPA and Corps did not follow proper procedural steps and claimed expansive jurisdiction that infringes upon State authority.

Several agricultural groups are strongly supporting the House Resolution and the Executive Order. As water is a valuable resource to all, regulation upon it must be closely scrutinized and controlled. According to the agricultural community, President Trump’s executive order and the House Resolution regarding WOTUS is a welcomed relief.

As the 2017 irrigation season approaches, Oregon water permit and certificate holders may want to review the terms of those permitted and certificated uses for measurement and reporting requirements.

Many groundwater permits and certificates require annual reporting of various water measurements, most notably measurements for static water levels of wells, flow meter readings or perhaps critical ground water area measurements depending on where these uses are located.

Measurements are typically due annually but sometimes are required to be tracked monthly and submitted to the Oregon Water Resources Department. These recordings allow the Department to track changes in water levels and depending on varying levels between the years may allow the Department to require users to discontinue or reduce the rate of their water use.

Our office encourages all water users to closely review the terms of their water permits and certificates in order to understand and be responsible for the requirements and meet the terms of these rights of use. We also provide services to clients including review of water permits, certificates and related documents, refer to qualified individuals to take these recording measurements and courtesy reminder letters to our clients.

For more information on water use reporting please visit the Oregon Water Resources Departments website. For more water news and information, keep reading Schroeder Law Offices blog!

Oregon Legislative Updates

A drought task force, authorized in 2016 by the Oregon Legislature, submitted their year-end report[1] to the Governor in November discussing how Oregon can better anticipate and adapt to increasingly common years of drought. Specifically, the report encourages the State to review the drought declaration process to better assist with drought response, to help communities with preparedness and resiliency, and to evaluate management options for stored water to better address instream and out-of-stream needs.

The Oregon Water Resources Department (“OWRD”) also extended reservations of water for future economic development in the Hood Basin, the Grande Ronde Basin, the Burnt River Basin, the Malheur Basin, and the Owyhee River Basin.         

Governor’s Office Updates

The Governor’s Office’s strategic initiatives for 2017 emphasize investing in water infrastructure to improve resilience and growth. Despite the decreased allocation of money to OWRD from the general fund budget, OWRD anticipates continued investment for development of instream and out-of-stream water supplies and for capital investment in sewage and water systems.

Cannabis Legalization on Water Usage

The passage of Measure 91 in Oregon has led to an increase in cannabis cultivation, part of which requires individuals who were growing cannabis before Measure 91, as well as new cannabis growers, to apply for water rights to irrigate their crop. However, only state water rights, not federal water rights, such as those under a Bureau of Reclamation contract, may be applied to irrigate cannabis. Federal water rights may be used to grow cannabis if the water is delivered from an irrigation district under a Bureau of Reclamation contract and is commingled with water under a state water right. An additional challenge is that water rights to grow cannabis will likely require a year-round water right and not simply a traditional irrigation season water right.

Upcoming Adjudications

With the Klamath Basin adjudication largely completed, OWRD announced it plans to begin adjudication of the Deer Creek Basin east of Roseburg in late 2016. OWRD will also begin two to four small adjudications in the South Coast Basin in late 2016 or early 2017.

Water Rights Auditing in Real Estate Transactions

The first day of the seminar wrapped up with a panel emphasizing the importance of determining the validity and extent of any water right that is part of a real estate transaction. The panel encouraged anyone involved in a transaction that includes water rights to request the files for any associated water rights from the applicable state department, such as OWRD or the Washington State Department of Ecology. This type of analysis is offered by Schroeder Law Offices at a flat fee. We encourage our clients to contact us for this service before any issue arises!

[1] https://www.oregon.gov/owrd/docs/HB4113/Draft_Final_Task_Force_Report_11_1_2016_Final.pdf.

The U.S. Army Corps of Engineers, Bonneville Power Administration, and the Bureau of Reclamation (“federal agencies”) are engaged in a five year process to analyze the effects of the Federal Columbia River Power System on salmonid species. In May 2016, District Court Judge Michael Simon found the federal agencies had violated the Endangered Species Act and the National Environmental Policy Act.[1] Specifically, Judge Simon said the federal agencies erred in failing to manage the Federal Columbia River Power System with strategies beyond the hydro-mitigation efforts that failed in the past.

Therefore, the Judge ordered the federal agencies to develop a new biological opinion to address: 1) mitigation measures to avoid jeopardy to salmonid species; 2) development of a Biological Opinion that complies with the Endangered Species Act; and 3) development of an Environmental Impact Statement that complies with the National Environmental Policy Act and addresses the impact of the Snake River dams on salmonid species. In his opinion, Judge Simon suggested a proper analysis should include considering breaching, bypassing, or removing the Lower Snake River dams.

The federal agencies will hold public scoping meetings around Washington, Idaho, and Oregon in the next weeks, in addition to two webinars.[2] Written comments will also be accepted until January 17, 2017. The meetings will be held from 4-7 PM as follows:

• November 29th, Boise, Idaho
• December 1st, Seattle, Washington
• December 6th, The Dalles, Oregon
• December 7th, Portland, Oregon
• December 8th, Astoria, Oregon

The scoping meetings are an important way for stakeholders to help the federal agencies narrow the issues and focus on key concerns. After the time period for the scoping meetings, the federal agencies will prepare a draft environmental impact statement that will be available for public comment.[3] The federal agencies must respond to all substantive comments on the draft environmental impact statement.

It is recommended that parties interested in the outcome of the federal agencies’ decision attend a scoping meeting and make comments. If an interested party later wants to challenge the federal agencies’ decision that a certain alternative should have been analyzed in the NEPA document, the court may not hear the concern.

Written comments may be made in person at one of the scoping meetings, submitted via mail, via email, or through the federal agencies’ online portal. Information about how to submit such comments is available at www.crso.info. 

[1] Nat’l Wildlife Federation v. Nat’l Marine Fisheries Serv., 2016 U.S. Dist. LEXIS 59195 (D. Or. 2016).

[2] www.crso.info

[3] 40 C.F.R § 1502.9

Last month, attorney Sarah Liljefelt organized a tour of the Whooshh Innovations fish passage structure constructed for the Washington Department of Fish and Wildlife on the Washougal River. Members of the Oregon State Bar Environmental and Natural Resources Section attended, including attorneys in private practice, working for the State of Oregon, and public interest.

Whooshh has patented new technology that propels fish through a rubber tube fish canon from one location to another in mere seconds, be the end result a truck to haul fish, or to the other side of a dam as a new type of fish passage. Studies have shown that stress on the fish is lesser in the Whooshh system than traditional fish passage, and the cost is only a fraction of renovating a dam for traditional fish passage.

Check out videos of the Whooshh system (and fish flying through the system) at Whooshh’s website: http://www.whooshh.com/.

Stay tuned to Schroeder Law Offices’ Water Law Blog for more news!

With the recent discoveries of lead in Portland Public Schools drinking water and the September 15^th discovery at the University of Oregon, it becomes a reminder for us all to ensure that our groundwater supply is providing healthy and safe drinking water.

According to the Oregon Health Authority, 90 percent of the population of the state draws all or part of their water supply from groundwater, which amounts to about one billion gallons of groundwater every day. Approximately 23 percent of Oregonians use domestic or private wells as their main source of water. For these well owners it is especially important to watch out for common types of contamination that might affect their water supply. These types of contamination include:

1. Improper storage or disposal of hazardous substances
2. Improper use of fertilizers, animal manures, herbicides, insecticides, and pesticides
3. Chemical spills
4. Improperly built and/or maintained septic systems
5. Improperly abandoned wells (these include water wells, groundwater monitoring wells, and wells used in cleaning contaminated groundwater)
6. Poorly sited or constructed water wells

The Portland Water Bureau is currently working to finish a study looking at the issues of lead in Portland’s drinking water, but major changes won’t be possible until 2022. Private well owners can begin taking steps to protect their groundwater today by being more mindful of how they care for their wells and dispose of hazardous materials.

More information on how to keep your well clean and safe can be found by visiting the National Groundwater Association website.

Sources Consulted:

http://www.opb.org/news/series/lead/portland-corrosive-water-study-epa-timeline/

http://www.ngwa.org/Events-Education/groundwater-day/Pages/default.aspx

http://hosted.ap.org/dynamic/stories/O/OR_UO_LEAD_OROL-?SITE=ORLAG&SECTION=STATE&TEMPLATE=DEFAULT

http://www.ngwa.org/Events-Education/groundwater-day/Pages/default.aspx

It’s getting close to that time of year again! As the 2016 irrigation season comes to a close, we here at Schroeder Law Offices want to remind you of the December deadlines to report measurements for your water uses to Water Resources Department (“OWRD”).

There are two different reporting deadlines to be aware of in December. The first applies to ground water uses in either the Stage Gulch or Butter Creek Critical Ground Water Areas (“CGWA”). Ground water users in these CGWA are required to report flow meter and/or power readings to OWRD by December 1^st each year. The photo below shows OWRD’s designation of various ground water areas.

More information about requirements for ground water use in the Stage Gulch or Butter Creek CGWA is contained in Oregon Administrative Rules 690-507-0610 to 690-507-0830.  http://arcweb.sos.state.or.us/pages/rules/oars_600/oar_690/690_507.html. To obtain the required reporting form contact OWRD’s ground water section.

The second December reporting deadline is a permit or certificate specific requirement and applies to both ground water and surface water rights. If your paper water right permit or water right certificate requires annual reporting it will include language along these lines:

You are also required to keep a complete record of the amount of water used each month and submit a report that includes the recorded water use measurements to OWRD annually, or more frequently if required by the Director.  Further, the Director may require you to report general water use information, including the place and nature of use of water under the permit.

Your annual water use report is due to OWRD by December 31 each year.

Water use recording and reporting forms are available on the OWRD website. Additionally, you may report your water use online.

As you will note, the reporting period is based on the “water year” rather than the calendar year. OWRD considers the “water year” October through September annually, as outlined in the enclosed form.

We encourage you to take meter readings at the end of each month and keep these readings in your own files along with a copy of the report that you submit to OWRD.

Stay tuned to the blog throughout the year for more helpful water use related reporting deadlines.

New studies have shown that a large number of older farmers are concerned with their ability to find a successor who is able to afford to buy their land, thus putting their plans for retirement at risk. Currently, the average age of the American farmer is 58 years old. Only less than 6% of American farmers are 35 years old or younger. With the vast majority of farmers nearing the average American retirement age, it is not surprising that over 60% of farmland is ready to be passed onto the next generation of farmers.

The problem is that the younger generation of farmers is losing the battle of being able to afford the land. According to a recent study by American Farmland Trust (”AFT”), land values are set too high for prospective landowners. This puts the land at risk while the banks, equity firms, and larger corporate farms take advantage of these opportunities to snatch up the land that the younger farmers cannot afford. A recent report by the U.S. Department of Agriculture (“USDA”) has shown that 2 of the biggest hurdles faced by the next generation of farmers are accessing credit for, and finding affordable farmland. Being bought out by larger corporations, or even just the threat of the possibility, along with stress of qualifying for a loan and finding affordable land, has led to a large number of younger farmers leaving the farming industry.

How Can You Help?

So, how do we help? The USDA and the AFT are working on programs to assist beginning farmers and ranchers enter the field and help pay farmers for the development rights to their land. But there are ways we all can help. Some examples include: buying direct, purchasing produce from farmers’ markets, or joining community supported agriculture programs.  For more information, please see http://civileats.com/2016/08/05/digested-farm-together-now/

Lindsay Thane

Schroeder Law Offices is happy to announce the newest addition the team, Lindsay Thane!  Lindsay Thane has accepted the position as JD Paralegal in the Portland, OR office.  Lindsay comes to Schroeder Law Offices from Montana where she received her J.D. from the University Of Montana School Of Law with a certificate in Natural Resource & Environmental Law.  Prior to Law School, Lindsay earned her B.A. degree in Political Science from the University of Oregon.  Lindsay has taken the Oregon State Bar exam and is currently awaiting the results with high hopes.

Lindsay brings a wide array of experience to Schroeder Law Offices including legal research, writing, and even judicial clinic experience.  Through her experience, Lindsay has spent valuable time in the natural resources field including positions with the U.S. Department of the Interior as well as the U.S. Environmental Protection agency.

We are looking forward to working with Lindsay!

Other Employment

Schroeder Law Office is currently looking for the right attorney to fill a vacancy in the Reno, NV office.  For more information regarding this position and how to apply, visit our website at: http://www.water-law.com/reno-attorney/

Rights-of Way on Public Lands and Administrative Avoidance

Century old rights-of-way uses of public lands can only be confirmed through a long, expensive federal court process. Because the Bureau of Land Management (BLM) and U.S. Forest Service (USFS) cannot determine the validity of water delivery and road rights-of-way on public lands, farmers, ranchers, and local governments may face an uphill battle to legally confirm and adjudicate these long-standing uses.

Revised Statutes (RS) 2477 and 2339 were components of the Mining Law of 1866, also called H.R. 365. This Act recognized the activities of settlers and miners occupying the West and encourage development of federal lands.

RS 2477 recognized roads and highways on public lands not already withdrawn from entry. RS 2339 protects the use of water infrastructure used for mining, agriculture, manufacture, and other purposes in place prior to the lands being withdrawn as well. These road and ditch laws honored development protocols and uses based on the local custom and laws at the time of early settlement.

While these laws are no longer in effect with the passage of the Federal Land Policy and Management Act (FLPMA), these self-granting rights-of-ways created while the law was in effect have not disappeared.  FLPMA recognizes existing rights on public lands prior to its passage. See: http://www.blm.gov/ca/dir/pdfs/2003/ib/CAIB2003-023ATT2.pdf

Without a way for agencies to definitively determine RS 2477 and RS 2339 rights-of-way claims, federal courts are currently the only venue to address these issues.  For more information, see: http://nvbar.org/articles/content/rs-2477-public-rights-way-era-administrative-avoidance

Make sure to stay tuned to Schroeder Law Offices’ Water Blog for more news that may affect you!

This article was drafted with the assistance of Law Clerk Jakob Wiley, a concurrent student at Oregon State University’s Water Resources Policy and Management graduate program and a law student at the University of Oregon School of Law.

The Oregon Water Resources Commission’s (OWRC’s) rulemaking for the Greater Harney Valley Groundwater Area of Concern (Area of Concern) became effective on April 15, 2016. The new regulations limit pending and new applications for groundwater use in the Malheur Basin. Citing concern over lowering groundwater levels in the region, OWRC passed the new regulations to limit new water development until the Oregon Water Resources Department (OWRD) can adequately study the basin’s groundwater. This regulation is a component of the Malheur Basin Program. The drafts, maps, and rules are available at: http://www.oregon.gov/owrd/Pages/law/Department_Rulemaking.aspx.

Over a year ago, OWRD stopped issuing new ground water permits within the Area of Concern. Until the most recent rulemaking, however, no rules were in place allowing OWRD to halt permit processing and issuance. Usually, OWRC will create by rule Critical Groundwater Areas, Groundwater Limited Areas, and Serious Water Management Problem Areas prior to OWRD ceasing to issue new permits.

OWRC can designate Critical Groundwater Areas for multiple reasons, including declining groundwater levels, substantial interference between wells, overdraft of groundwater, or water quality degradation. OWRD must indicate the boundaries of the area and review the designation at least every 10 years. The designation allows OWRD to, for example, close the area to any further appropriation, limit the total withdrawal from the aquifer, and refuse applications for new groundwater permits.

Groundwater Limited Areas limit future appropriations of water to specified uses, but do not restrict existing consumption of water within the area. Serious Water Management Problem Areas allow OWRD to collect usage data from current water use right holders, but not restrict water consumption. These tools are used to collect information and guide future development of water resources in Oregon.

Rather than designating a critical or limited groundwater area, or a serious water management problem area, OWRD addressed the Harney Valley Groundwater Area of Concern by amending the Malheur Basin Program. Basin programs are used by OWRC to guide water right permitting decisions and coordinate with other state agencies. Within basin plans, OWRC may classify the highest and best uses for particular basins and waterways for future uses, including proscribing types of uses available to future applicants.  Oregon’s basin programs are listed in the Oregon Administrative Rules Chapter 690, beginning at Division 500, and the Malheur Basin Program is located at Division 510, available at: http://arcweb.sos.state.or.us/pages/rules/oars_600/oar_690/690_510.html.

The new regulations for the Greater Harney Valley Groundwater Area of Concern propose to both limit future uses and collect information before OWRD completes a full study of the aquifer, expected to be completed by 2020. The proposed rules received 22 comments, which can be viewed at: http://apps.wrd.state.or.us/apps/misc/vault/vault.aspx?Type=WrdNotice&notice_item_id=6640. In the meantime, 39 groundwater use applications are pending before OWRD, and these applications will not be approved, unless they meet conditions included in the new basin plan regulations. This is in direct opposition to the rule that applications must be processed based on the laws and regulations in effect at the time of filing, but OWRD is taking the position that groundwater is not available for the applications, rather than a regulatory change affected the outcome of the applications (this is not a new approach from OWRD).

The “area of concern” is, in effect, a moratorium on new groundwater development in the region. The new regulations create restrictions on new applications reminiscent of critical groundwater areas, but within the basin program scheme.   The moratorium will put a halt to development in the region, at least while OWRD studies the groundwater in the area. Locals familiar with groundwater in the Malheur Basin are resentful of OWRD’s blanket moratorium when certain areas within the basin do not appear to show the same level of strain as others, and continue to produce great quantities of groundwater.

Make sure to stay tuned to Schroeder Law Offices’ Water Blog for more news that may affect you!

This article was drafted with the assistance of Law Clerk Jakob Wiley, a concurrent student at Oregon State University’s Water Resources Policy and Management graduate program and a law student at the University of Oregon School of Law.

On April 6, 2016, amendments to the Klamath Hydroelectric Settlement Agreement (KHSA) and the new Klamath Power and Facilities Agreement (KPFA) were signed at a ceremony at the mouth of the Klamath River on the Yurok Indian Reservation. These changes come in the wake of the Congress’s decision not to pass legislation for the Klamath Basin Restoration Agreement (KBRA). Negotiations between the signatories of the new agreements in the Klamath Basin were kept secret, the results of their discussions can be seen in these new agreements, available at: https://www.oregon.gov/owrd/Pages/adj/index.aspx.

The amended KHSA’s purpose is to establish a process for removal of Iron Gate, Copco 1, Copco 2 and J.C. Boyle dams under the Federal Energy Regulatory Commissions relicensing procedures. The decision to remove the dams was made based on a cost-benefit analysis that was not released to the public. The amended agreement will also shield PacificCorp and its customers from liability for damages associated with dam removal. The amended agreement transfers the ownership of the dams to the Klamath River Renewal Corporation. The new corporation will conduct the dam removal, while PacificCorp will operate the dams until their decommissioning. The dams are expected to be removed in 2020. The U.S. Department of the Interior, the U.S. Department of Commerce, California and Oregon States, and PacificCorp were parties to the agreement.

The KPFA is an agreement designed to mitigate economic and regulatory issues facing users of water and land in the Klamath Basin. Oregon and California States, the Klamath Water Users Association, public interest groups (including American Rivers, Trout Unlimited, and Sustainable Northwest), the U.S. Department of the Interior, and the National Marine Fisheries Service were parties to the agreement. The KPFA stipulates that the signing parties must meet and confer when there is an unforeseen circumstance related to the fishery restoration and regulatory impacts on the local economy. It also obligates the U.S. Bureau of Reclamation (“BOR”), upon transfer of the operation of Link River and Keno Dams, to operate the dams without adding any associated costs to water users for the maintenance of infrastructure. The BOR will operate those dams consistent with existing contracts for irrigation and flood control, and attempt to prevent salmon from entering irrigation canals and ditches. Funding for projects preventing salmon entry into irrigation infrastructure will come from a variety of sources, including irrigation districts, federal, state, and private parties. The agreement also requires the signing parties to support and defend the KHSA, refrain from making statements in opposition to the KHSA, and support the KHSA in administrative and judicial forums. Notably, representatives of the local landowners that will be affected were not included in negotiations, and are not signatories to the agreement.

In short, after many years of receiving a clear message from Congress that it was not going to fund the KBRA’s dam removal plan, the proponents are moving forward without Congress’s approval, or the approval of the local residents that will be most affected. Rather than retrofit the dams to allow fish passage and other updates, the negotiating parties are removing the dams. Along with the dams, the negotiating parties are doing away with inexpensive power, jobs, and water storage for increased reliability within the basin, in a proverbial “flushing the baby with the bathwater” situation. It remains to be seen how severe the impacts from dam removal will be on top of the other stresses that the Klamath Basin has suffered since the administrative phase of the Klamath Basin Adjudication was completed, and since the region has suffered from severe drought for several years.

Make sure to stay tuned to Schroeder Law Offices’ Water Blog for more news that may affect you!

This article was drafted with the assistance of Law Clerk Jakob Wiley, a concurrent student at Oregon State University’s Water Resources Policy and Management graduate program and a law student at the University of Oregon School of Law.

The Oregon Water Code provides that construction of a water system must be completed within certain time limits from issuance of water use permits (5 years for non-municipal water use permits, and 20 years for municipal permits). ORS 537.230 (“…the holder of a water right permit shall prosecute the construction of any proposed irrigation or other work with reasonable diligence and complete the construction within a reasonable time, as fixed in the permit…”); ORS 537.630. The same provisions allow the Oregon Water Resources Department (“the Department”) to grant extensions of time for completion of construction.

The Oregon Water Code also provides that water use permits may be cancelled when a permittee fails to begin construction within permit deadlines. ORS 537.410(1) (“Whenever the owner of a permit to appropriate the public waters of Oregon fails to commence actual construction work within the time required by law, or having commenced construction work as required by law, fails or neglects to prosecute the construction work with reasonable diligence, or fails to complete the construction work within the time required by law, or as fixed in the permit, or within such further time as may be allowed under ORS 537.230, or having completed construction work, fails or neglects to apply the water to beneficial use within the time fixed in the permit, the Water Resources Commission may cancel the permit on the records in the Water Resources Department as provided in ORS 537.410 to 537.450.”)

In determining whether to grant an extension of time, the Department considers: 1) the cost of the appropriation and application of water to a beneficial purpose, 2) the good faith of the appropriator, 3) the market for water or power to be supplied, 4) the present demand for the water or power to be supplied, and 5) the income or use that may be required to provide fair and reasonable returns upon the investment. ORS 537.230(3); ORS 539.010(5); see also OAR Chapter 690 Division 315. The Department’s general practice has been to liberally grant extensions of time if the permittee is able to show a financial investment to begin construction and/or water use under the permit and a reasonable explanation for the delay. Permit extension of time applications are available on the Department’s website at: http://www.oregon.gov/owrd/PUBS/docs/forms/App_Ext_WR_perm.docx.

Recently, the Department has added the following condition to new permits: “The deadline to begin construction may not be extended.” Although the new permit condition does not mark a departure from the Oregon Water Code’s provisions, it does mark increased seriousness from the Department about what is necessary to obtain an extension of time to develop a new water use right. Permittees should be sensitive to the change in climate regarding beginning construction and applying water to beneficial use.

Now, more than ever, it will be important to begin construction within the 5-year deadline in order to avoid permit cancellation. “Actual construction” means “physical work performed towards completion of the water system, which demonstrates both the present good faith of the water right permit holder and the water right permit holder’s intention to complete the project with reasonable diligence.” OAR 690-315-0020(3)(d)(A). This does not include planning, securing financing, entering into contracts, surveying, or purchasing (but not installing) equipment. OAR 690-315-0020(3)(d)(B).

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The Oregon Water Resources Commission recently awarded nine water supply project proposals in the state of Oregon with a combined $8.9 million for projects focusing mainly on water conservation.

The Commission received funding in the amount of $14 million from the state to implement large-scale water conservation plans across the state. Although urged to fund as many projects as possible with the money, the Commission awarded grants to the nine Oregon Water Resources Department recommended projects.

Oregon is doing its part to conserve water on a large-scale.