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4 IN THE CIRCUIT COURT OF THE STATE OF OREGON
5 FOR THE COLINTY OF KLAMATH
6 In the Matter of the Determination of the Relative Rights of the'Waters of the Klamath River,A Tributary of the Pacific Ocean
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9 In Re:
10 Waters of the Klamath River Basin
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Case No. W41300001
RECOMMENDATIONS FOR THESTRUCTURE AND PROCESSING OFFUTURE PROCEEDINGS OFAGENCY SEVEN, LLC; DHHOREGON COMPANY, LC; FAMOSOCATTLE CO., INC.; JELD-WEN, INC.;JRS PROPERTIES III L.P.; JWTR,LLC; JAMES ROOT; VALERIEROOT; THOMAS FAMILY LIMITEDPARTNERSHIP; JENNIFER \ilALT;KATHLEEN WALT
17 I. INTRODUCTION
18 The Court invited parties to submit recommendations for the structure and processing
19 of future proceedings related to the Court's review of the Corrected Findings of Fact and
20 Order of Determination (the "Determination") in this case. See Case Management Order #7.
21 The claimants identif,red in the caption of this pleading (the "Claimants") submit these
22 recommendations in response to the Court's invitation. The Claimants recommend that the
23 Court adopt a structure and process for future proceedings that expedite the issuance of a
24 partial decree applicable to certain, similarly situated claimants. Issuance of apartial decree
25 would be consistent with the Court's limited role in reviewing the Determination, promote
26 finality and effectuate settlements between parties, allow for the eff,rcient resolution of the
Page 1 RECOMMENDATIONS FOR THE STRUCTURE AND PROCESSING OF
FUTURE PROCEEDINGS
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1 issues raised in exceptions, and allow for the more efflcient use of water, without causing
2 injury to other claimants.l Altematively, the Claimants request conf,rrmation from the Court
3 that those Partial Orders of Determination that were not specifically identified in exceptions
4 will not be altered through the Court's resolution of exceptions. That is, the nature and scope
5 of the water use approved in such Partial Orders of Determination will not be altered as a
6 result of the Couft's resolution of exceptions filed to the Determination, provided that the
7 Pafüal Orders of Determination were not specifically identified in an exception.
8 II. DISCUSSION
9 Water rights in the Klamath Basin have been in a state of uncertainty for decades. As
10 the Court knows, the Klamath River Basin General Stream Adjudication (the "Adjudication")
1 1 was initiated in I975, and the administrative phase of the Adjudication concluded on March
12 7 , 2013. Certain parties to the Adjudication have predicted that the Court's review of the
13 Determination could last for many more years. The Claimants hope these predictions are
14 wrong. But regardless of the length of time necessary for the Court to complete its review of
15 the exceptions and to resolve the issues raised therein, the Court has an opportunity to move
16 the resolution of certain claims closer to finality with a partial decree. The process necessary
17 to identify those claims that could be included in a parlial decree would be minimal and
18 would not need to delay the review and resolution of the remaining claims. As such, the
19 holders of claims not included within the partial decree would not be adversely affected by
20 the issuance of a partial decree.
21 The claims held by the Claimants are representative of the types of claims the Court
22 should include in a partial decree. These claims are similar in the following key respects: (1)
23 no exceptions were filed to any of the Partial Orders of Determination that approved these
24 claims; and (2) the holders of these claims (i.e., the Claimants) did not file any exceptions.
25 ' This recommendation to issue apafüaldecree is consistent with the recommendation submitted by Stoel Rives
26 LLP to the Court in a June 21,2013 letter after the initial Case Management Conference.
Page 2 RECOMMENDATIONS FOR THE STRUCTURE AND PROCESSING OFFUTURE PROCEEDINGS
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I This means the Claimants have not challenged the nature or scope of the water use approved
2 in the Partial Orders of Determination that arose out of their claims, and no other party has
3 specifically challenged the nature or scope of the water use approved in those Partial Orders
4 of Determination. In short, no party has asked the Courl to review any of the Partial Orders
5 of Determination that approved the Claimants' claims. Therefore, with respect to these
6 claims, the only action left to be taken by the Court is the entry of a decree.
7 The Claimants recommend that the Court issue a partial decree2 to evidence the final
8 resolution of the claims held by the Claimants and other, similarly situated claimants.
9 Altematively, the Claimants request the Court to conf,trm that its resolution of the exceptions
10 will not affect the nature or scope of the water use approved in the Partial Orders of
11 Determination that were not specifically identified in exceptions.
12 A. The Claimants recommend that the Court issue a partial decree.
13 The Claimants believe that the issuance of a partial decree would (1) be consistent
14 with the Court's limited role in reviewing the Determination, (2) promote finality and
15 effectuate settlements between parties, (3) allow for the efficient resolution of the issues
16 raised in exceptions, and (4) allow for more efficient use of water, without causing injury to
17 other claimants. For these reasons, the Claimants recommend the Court issue a partial decree
18 that applies to those Partial Orders of Determination to which no specific exceptions were
19 filed, provided that the holders of such claims did not file exceptions.3 The possibility that an
20 exception to other Partial Orders of Determination could indirectly affect Partial Orders of
21 Determination to which no specihc exceptions were filed (as discussed in Section II.B
22
23 2 The exact title of the decree (e.g., "partial decree," "initial decree," etc.) is not important to the Claimants. If1¡ rhe Court issues such a decree, the Claimants recommend that the decree specifrcally state that it is "a coutt
decree" that establishes water uses. ,See ORS 540.505(aXa) (defining "water use subject to transfer" to include
25 "u water use established by . . . [a]n adjudication under ORS chapter 539 as evidenced by a coutl decree").
"^ ' The Claimants believe inclusion in a partial decree should not be mandatory, which would allow claimants too" opt out if they prefemed to wait to be included in the Court's final decree.
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I below) should not preclude the Court from including the latter group of Partial Orders of
2 Determination in a partial decree.
3 The legislature created a limited role for circuit courts in reviewing orders of
4 determination in water right adjudications and intended that the process of filing exceptions
5 would define the scope of such review. The text and context of ORS 539,150 reflect the
6 legislature's intent to limit the scope of the Court's review to specif,rc issues raised in
7 exceptions, ORS 539.150(3) provides: "If no exceptions are filed the court shall . . . enter a
8 judgment affirming the determination of the Water Resources Director." (Emphasis added.)
9 As such, the coufi lacks authority to modify an order of determination, unless exceptions are
10 filed to the determination. This suggests that the coutl's role is not to engage in an
11 independent review of the entire determination to identifi'whether it contains any effors.
12 Rather, the court's role is to resolve specific issues raised by the parties to the adjudication,
13 as evidenced by the exceptions filed by those parties. Here, the Court's limited role in
14 reviewing the Determination supports issuance of a partial decree that applies to claims to
15 which no specific exceptions were filed because no issues have been raised that require
16 resolution by the Court.
17 The issuance of a partial decree would promote finality and effectuate settlements
l8 between parties. As noted above, the Adjudication has been ongoing since I 97 5. The
19 issuance of a partial decree would move many claims toward finality. Moreover, many of
20 the Claimants (and similarly situated parlies) invested significant resources into settlement
21 negotiations during the administrative phase of the Adjudication. As a result, many
22 claimanfs entered settlement agreements with most, if not all, contestants to their claims. For
23 example, the holders of Claim 51 entered settlement agreements with the United States and
24 the Oregon Water Resources Department to resolve all contests to Claim 51 that were not
25 voluntarily withdrawn by other contestants. One of the primary motivations to enter
26 settlement agreements is a desire for finality. The issuance of the pafüal decree would
RECOMMENDATIONS FOR THE STRUCTURE AND PROCESSING OFFUTURE PROCEEDINGS
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1 effectuate these settlements and might create incentives for other pafiies to enter settlement
2 agreements during the judicial phase of the Adjudication to resolve exceptions.
3 The issuance of a partial decree would promote the efficient resolution of the
4 remaining claims by reducing the number of claims at issue in the judicial phase of the
5 Adjudication. This would allow the Court to focus its review on a limited number of claims,
6 without the need for involvement from all parties to the Adjudication. Apart from the
7 minimal process necessary to issue a partial decree, the remaining structure and process for
8 the judicial phase of the Adjudication could be designed around a more limited group of
9 parties (i.e., those not included in the partial decree).
10 The issuance of a partial decree would allow the holders of claims included within the
11 partial decree to engage in efficient transfers of water rights. Until the court issues a decree,
12 the water use approved in the Par"tial Orders of Determination are not subject to transfer. See
13 ORS 540.505(4). This means that the holders of such claims cannot change the point of
14 diversion, place of use, or character of use until a decree is issued evidencing such water use.
15 See ORS 540.510(l). Given the scarcity of water within the Klamath Basin, the ability of
16 water right holders to transfer water rights can ensure that scarce supplies of water are used
17 eff,rciently. The issuance of a partial decree would allow the holders of the claims included
18 in the partial decree to engage in such transfers, subject to existing statutes and rules.
19 n. In the Alternative, the Claimants recommend the Court confirm that the judicialphase of the Adjudication will not affect Partial Orders of Determination to¿u which no specific exceptions were filed.
21 The Claimants request confirmation from the Court that those Partial Orders of
22 Determination that were not specifically identified in exceptions will not be affected by the
23 Court's resolution of exceptions during the judicial phase of the Adjudication. The
24 Claimants acknowledge that some of the exceptions to specif,rc Partial Orders of
25 Determination also challenged the general conclusions of law on which those Partial Orders
26 of Determination relied. The general conclusions of law are set forth in Section B of the
Page 5 RECOMMENDATIONS FOR THE STRUCTURE AND PROCESSING OFFUTURE PROCEEDINGS
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1 Determination (the "General Conclusions") and are incorporated by reference into many of
2 the Partial Orders of Determination, including some of the Partial Orders of Determination
3 that approved claims held by the Claimants. As such, every modification to the General
4 Conclusions has the potential to indirectly affect each of the Partial Orders of Determination
5 that incorporates those conclusions.
6 For example, a number of the Partial Orders of Determination that approved the
7 claims held by the Claimants incorporate the "General Conclusions of Law Conceming
8 V/alton Claims." None of these Partial Orders of Determination were specif,rcally challenged
9 in exceptions. However, the Klamath Project Water Users filed an exception to another
10 Partial Order of Determination and, in that exception, also challenged ceftain aspects of the
11 General Conclusions of Law Concerning Walton Claims.a The Claimants understand that
12 this exception was intended to challenge only the specific Partial Order of Determination
13 identified in the exception and was not intended to function as a blanket challenge to all
14 Pafüal Orders of Determination that incorporate the General Conclusions of Law Concerning
l5 Walton Claims.
16 Given this context, the Claimants recommend that the Court structure its review and
17 resolution of the exceptions in a way that does not affect the Partial Orders of Determination
18 to which no specific exceptions were filed. The limited scope of the Court's review under
19 ORS 539.150, as described in Section II.A above, supports such a structure. The Court could
20 limit the scope of its review by interpreting the relevant exceptions as challenging the
21 General Conclusions as applied to the specific Partial Orders of Determination identified in
22 those exceptions, rather than as blanket challenges to every Partial Order of Determination
23 that incorporates by reference portions of the General Conclusions. This would promote
24
25 o ,", Statement of Exceptions of Klamath Project Water Users to Amended and Corrected Findings of Fact and
^, Order of Determination in the Klamath Basin Adjudication; Exceptions to Partial Order of Determination
" Conc.-ing Water Right Claim or Claims Number 279,CaseNo. WAl30000l (Oct. 15,2014).
Page 6 - RECOMMENDATIONS FOR THE STRUCTURE AND PROCESSING OFFUTURE PROCEEDINGS
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I finality for a significant number of claims and avoid uffaveling many carefully negotiated
2 settlement agreements reached during the administrative phase of the Adjudication.
3 Moreover, the Claimants believe that this approach would be consistent with the
4 intent of many, if not all, parties that challenged certain aspects of the General Conclusions
5 in their exceptions. The parties had more than 18 months to review the Determination,
6 including each of the Partial Orders of Determination. As such, the parties had suffrcient
7 time to identify the Partial Orders of Determination that they intended to challenge and
8 should not be allowed to rely on a general exception to the General Conclusions as a means
9 to challenge every Partial Order of Determination that incorporates those General
10 Conclusions, unless the exception specifically identified each of the Partial Orders of
I 1 Determination being challenged.
12 ilI. coNCLUSIoN
13 For the reasons set forth above, the Claimants recommend that the Court adopt a
14 structure and process for the judicial phase of the Adjudication under which the Court would
15 issue a partial decree before resolving the exceptions. In the alternative, the Claimants
16 request the Court to confirm that Partial Orders of Determination to which no specific
17 exceptions were filed will not be altered during the judicial phase of the Adjudication.
18 If the Court will not provide such confirmation, the Claimants believe it could be
19 interpreted that each exception that challenges one or more of the General Conclusions
20 functions as an exception to each of the Partial Orders of Determination that incorporates by
21 reference the challenged General Conclusion(s). If so, it would follow that the holder of each
22 claim that could be indirectly affected by the Courl's resolution of the exceptions be allowed
23 ilt
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Page 7 RECOMMENDATIONS FOR THE STRUCTURE AND PROCESSING OFFUTURE PROCEEDINGS
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1 to protect their interest in the resolution of such exceptions, regardless of whether the holder
2 fi"drequests to be heard on those exceptions.
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DATED: February¡$ ZOf S
STOEL RIVES rrp
David E. Filippi,Greg D. Corbin,
OSB No. 96OSB No. 0
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Sarah Stauffer Curtiss, O JJKirk B. Maag, OSB No. 1
RECOMMENDATIONS FOR THE STRUCTURE AND PROCESSING OFFUTURE PROCEEDINGS
Page I
JJNO.0507
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1 CERTIFICATE OF SERVICE
Z On February 73,2015, I caused the foregoing RECOMMENDATIONS FOR THE
3 STRUCTURE AND PROCESSING OF FUTURE PROCEEDINGS to be served by first
4 class mail, postage prepaid, on those listed on the Service List dated October 77,2074, a
5 copy of which is attached hereto (total26l recipients) and seven (7) bV first class mail,
6 postage prepaid on the following:
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Noel F KerseyTHE LAW OFFICE OF NOEL F, KERSEYP,O. BOX 1493
Klamath Falls, OR 97601Attorney for Malin ID, Pine Grove ID,Shasta View ID
Reagan L.B. DesmondCLYDE SNOW & SESSIONS, P.C.
377 SW Century l)rive, Ste 206Bend, OP.97702Attorney for Klamath l)rainage DistMidland trC, Ady Dist IC
Edward D Tompkins (water cl #21)Merrie L Tompkins, TrusteesPO Box22Guinda, CA95637
Kevin HaroffMarten Law PLLC455 Market Street, Suite 2200San Francisco, CA 94015Attorney for Mathis Family Trust
Kite Ranches, Inc. (water cl# 207)PO Box 154
Keno, OR97627
Willis Stanley Tompkins (water cl #21)2610 Lenz RoadChiloquin, OPt97624
Curtis & Carolyn Johnston (water cl# 187)
8910 Hwy 66Klamath Falls, OR 97601
Larcy E Peacore (water cl# 206)Carolyn F Peacore12780 Keno Worden RoadKeno, OR97627
DATED: February lß, ZOIS
STOEL
David E. F OSB 095
Greg D, Corbin, O JJJ
o.076333Sarah Stauffer
Page I - CERTIFICATE OF SERVICE
78193517 .3 00 I 553 1 -00022
Kirk B. Maag, OSB No, 105507
First Name
GREGORY
STEVECLIFFHERMANKENNETH JMARK DKATINAFRANKLIN LOCI(VVOOD
Last Name
ABEL
ALLENAMBERSANDERSONANDERSONANDERTONAVGERISBARNES JR
Company NameGRANTLAND BLODGETÏSHAW
ARLENE ALLENJUDY AMBERSDEBORAH ANDERSONJERRY D ANDERSONANDREW ANDERTONC/O STEVE AVGERISJANE M BARNES
SYDNEY's 1995IRREVOCABLE TRUSTTRACIE G¡BSON
TOM BENGARDYTURRI ROSE LLP
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MERNICE BOEHME
BBANDSNESS AND RUDDPCSPRING CREEKPROPERTIES INC
FRANCES M BROOKS
GLENDA AND ROBERTBUCHANAN; RUTH ANDLEWIS HAGELSTEIN
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MODOC POINTIRRIGAT1ON DISTRICT
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CINDY COMBSGARRETT HEMANNROBERTSONTPC LLCSTOEL RIVES LLP
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UNITED STATESDEPARTMENT OF JUSTICEANN HALLBONNIE HALLBONNIE HALL
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ELIZABETH EJEANETTEJEFFBECKY HATFIELDDOUGLEROYRODNEY ZI.ARRY ORVILLECURTIS
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FREDTED TSCULLDAVID
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UNITED STATES BUREAUOF RECLAMATIONWILLIAM NICHOLSONMARYANN NICHOLSON
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