# Appendix — Orchards v. United States, 106 S. Ct. 64 (1985) (No. 84-1702)

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 1985

## Text

piss oe |S Office-Supreme Court,
34-1702” FILED
APR 29 1985
No.
— ALEXANDER L. STEVAS,
CLERK

In the Supreme Court—

OF THE

United States

OCTOBER TERM, 1984

H. F. ALLEN ORCHARDS, et al., ELBERT B. SCHINMANN, et al.,
R. E. REDMAN & Sons, INC.,
Petitioners,

VS.

THE UNITED STATES,
Respondent.

APPENDIX TO
PETITION FOR WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE FEDERAL CIRCUIT

BURTON J. GOLDSTEIN
COUNSEL OF RECORD

MEMEL, JACOBS, PIERNO, GERSH
& ELLSWORTH
650 California Street, 33rd Floor
San Francisco, CA 94108
Telephone No. (415) 433-3000

BRYAN G. EVENSON
HALVERSON, APPLEGATE &
McDONALD, INc., P.S.
311 North Fourth Street
P.O. Box 526
Yakima, Washington 98907
Telephone No. (509) 575-6611

Attorneys for Petitioners

BOWNE OF SAN FRANCISCO. INC. « 190 NINTH ST. + S.F., CA 94103 + (415) 864-2300

Sa) Si Soe

oe

aa

TABLE OF CONTENTS TO APPENDIX

Appendix A
Opinion of United States Court of Appeals for the
Federal Circuit, December 10, 1984 .............

Appendix B
Opinion of the United States Claims Court, February
RAE eg cee 5 ne

Appendix C
Judgment of the United States Court of Appeals for the
UE IE ho boc r SCRA OWENS oh ewh ates
Order of United States Court of Appeals for the Fed-
eral Circuit Denying Petition for Rehearing, January
ES a ces rea E RATE L RAEN WoO
Order of United States Court of Appeals for the Fed-
eral Circuit Extending Time Within Which to File
Pe I ec os ek obs ewkseeseeanen

Appendix D
Cmaeene Last OF POUGONETS . ww. 6k cee ee aass

Appendix E
Review of 1977 Water Supply Estimates—Yakima
River Basin, June 1977 (Vissia Report) and accom-
panying Department of Interior memorandum .....

Appendix F
Judgment in Kittitas Reclamation District v. Sunnyside
Valley Irrigation District, Civil No. 21, District Court
of the United States for the Eastern District of
Washington, Southern Division, January 31, 1945
Eee pe eee trae

Appendix G
“Guesstimate” memorandum from Yakima Project
Superintendent to Regional Director.............

Appendix H
icra pa kea ka hiae KEK AEL RK Ore

Appendix I
Roza Irrigation District Amendatory Repayment Con-
IE eS eee. cs A ae waneace ae sneaked

Page

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A-34

A-43

A-77

A-110

A-112

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Appendix A

United States Court of Appeals
for the Federal Circuit
Appeal No. 84-937
H. F. Allen Orchards, et al.,
Elbert B. Schinmann, et al.,
R. E. Redman & Sons, Inc.,
Appellants,

v.

The United States,
Appellee
Decided: December 10, 1984

Before Markey, Chief Judge, Nichols, Senior Circuit Judge, and
Newman, Circuit Judge.

Nichols, Senior Circuit Judge.

This is an appeal from a judgment by the United States Claims
Court denying appellants’ motions for summary judgment and
allowing appellee’s cross-motions for summary judgment. The
jurisdiction of that court was invoked under the Tucker Act, 28
U.S.C. § 1491. Appellants seek damages from the United States
based on the United States Bureau of Reclamation’s (Bureau)
asserted breach of a contractual obligation to inform appellants
accurately in February 1977 of the total amount of water expected
to be supplied to them from the Yakima water project during the
\°77 growing season. The Claims Court found that (1) the
Bureau had no contractual obligation to forecast the water supply
and (2) the appellants were neither parties to any contract with
the Bureau nor third-party beneficiaries of contracts between the
Bureau and the irrigation districts from which the appellants were
furnished their water.

Although we disagree with the Claims Court’s assessment
concerning appellants’ right to sue as third-party beneficiaries to
the district-Bureau contracts, we conclude, as the court below did,
that the Bureau has undertaken no contractual obligation to
furnish accurate water supply projections. Therefore, we affirm

A-2

the Claims Court’s granting of appellee’s motion for summary
judgment and its dismissal of the complaints.

Facts

The circumstances from which this litigation arose have been
set forth in detail by the court below in Orchards v. United States,
4 Cl. Ct. 601, 602-04 (1984). Therefore we recount only briefly
the most salient facts of this case. Appellants, who farm parts of
the eastern section of the State of Washington, are members of
the Yakima Project Irrigation District. In 1905, the Secretary of
Interior, acting pursuant to the Reclamation Act of 1902, 32 Stat.
390 (codified throughout 43 U.S.C. ch. 12 (1976)), authorized
the construction of the Yakima Project, which stores, diverts, and
delivers irrigation water from the Yakima River. The Bureau
contracts to deliver water from the Yakima Project to irrigation
districts organized under Washington State law. The districts, and
ultimately the water users, are charged by assessment to repay the
costs of the project’s construction and for government operating
and maintenance costs.

The method of determining the proper allocation of water for
various irrigation districts is founded upon a consent decree
entered by the United States district court in Kittitas Reclamation
District v. Sunnyside Valley Irrigation District (Eastern District
of Washington, Southern Division, Civil Action No. 21). The
decree sets forth the normal ailotment of water as well as the
procedure for allocation of water in times of shortage. In such
times the “Total Water Supply Available” (TWSA), defined as:

that amount of water available in any year from natural flow
of the Yakima River, and its tributaries, from storage in the
various Government reservoirs on the Yakima watershed and
from other sources, to supply the contract obligations of the
United States to deliver water and to supply claimed rights to
the use of water on the Yakima River, and its tributaries,
heretofore recognized by the United States [,]

is to be allocated first to those with senior, nonproratable water
rights and then to the extent possible to those holding junior,

A-3

proratable nghts. Appellants base their claims on the irrigation
districts’ contracts with the Bureau which incorporate this consent
decree by reference and on the decree itself.

The Yakima area experienced a water shortage in the first
months of 1977 due to drought and low snow pack. On February
7, 1977, the Bureau issued a TWSA estimate projecting that the
districts would receive 100 percent of their nonproratable entitle-
ments and only approximately 7 percent of their proratable
allotments. Farmers having proratable water rights reacted to the
estimate by planting less water-intensive crops, allowing lands to
lie fallow, selling off livestock prematurely, and generally acting to
reduce water consumption.

In the months following the original TWSA estimate, the
Bureau upgraded the TWSA several times. Ultimately those with
proratable rights received 70 percent of their entitlements, the
correct amount under the circumstances. Nevertheless, by the
time the farmers learned that they would receive this water,
allegedly it was too late to avoid losses in the millions of dollars.
Appellants allege that the Bureau breached its contracts by
estimating the TWSA negligently in February 1977. The Bureau
counters that its February estimate, provided by the Bureau as a
sovereign act, was as accurate as possible given the information
available and thus not negligent, and that the upgrading of the
TWSA several times was a result of unforeseen precipitation and
return flow. The appellants believe and would attempt to show
that incorrect forecasting of future weather was not the sole cause
of the errors; that it was due also to errors as to the extent water,
once delivered to users of it, returns to the system and is again
available to downstream users.

Discussion

In reviewing the Claims Court decision granting summary
judgment, we note that appellants receive the benefit of all
applicable presumptions, inferences, and intendments and that
summary judgment is appropriate only when there is no genuine
issue of material fact. Adickes v. S. H. Kress and Company, 398

A-4

U.S. 144 (1970). We agree with the Claims Court’s determina-
tion that there is no genuine issue of material fact and that
appellee is entitled to judgment as a matter of law as the Bureau
was under no coniractual obligation to accurately estimate the
TWSA. Appellants’ action sounds not in contract, but in tort, if it
lies at all, and the Tucker Act, which was the source of jurisdic-
tion, confines it to “cases not sounding in tort.” Section
1491(a) (1).

Appellants assert that their contract right to receive a properly
estimated TWSA is premised upon the Kittitas consent decree,
and contracts which incorporate that decree. The farmers con-
strue the decree as including an implied requirement to commu-
nicate TWSA computations; the requirement is allegedly
necessitated by the farmers’ need to know their allocations in
order to plan correctly which crops to plant and the acreage to be
planted. Thus the right to water is conditioned on timely notice of
the allocation.

We discover no contractual duty to project the TWSA cor-
rectly, or at all, or warranty that any projection made will be
correct. A consent decree is construed as a contract for enforce-
ment purposes, and aids to construction, such as circumstances
surrounding formation of the decree and the technical meanings
words may have had to the parties, may be considered. United
States v. ITT Continental Baking Co., 420 U.S. 223, 238 (1975).
Still, the “scope of a consent decree must be discerned within its
four corners, and not by reference to what might satisfy the
purposes of one of the parties to it or by what might have been
written had the plaintiff established his factual claims and legal
theories in litigation.” Firefighters Local Union No. 1784 v. Stotts,
52 U.S.L.W. 4770, 4779 (U.S. June 12, 1984) (quoting United
States v. Armour & Co., 402. U.S. 673, 681-82 (1971)).

Appellants cannot point to, nor can we find, any provision of
the consent decree which expressly obligates the Bureau to
forecast the TWSA. The consent decree specifies that the “obli-
gations of the United States to deliver water from the * * *
Yakima River” are set forth in the agreement, and in paragraph
18, provides for the instance when a shortage occurs.

Steet tain

A-5

If for any cause it is impossible to supply fully [the normal
water] quantities, the water subject to proration * * * shall
be proportionably diminished. The pro rata share of that
water which each of the parties to this judgment shall receive
during a period of insufficient supply shall be an amount in
the same proportion to the quantity of water subject to the
proration that each of the parties is entitled to under this
judgment as the total water supply available, as hereinafter
defined * * *.

This paragraph and the definition of TWSA are the sum and sole
expression of the government’s decree-based obligation in the
event of a water shortage. Indeed, the parties characterized and
limited the decree in the final paragraph which says that the
“judgment shall constitute a final determination of the obligation
of the United States to deliver water." (Emphasis supplied.)
There is no provision in any subsequent contract which increases
the government’s duties in the event cf a shortage to include
forecasting. Thus, after examining the four corners of the consent
decree, this court can discern no obligation to project the TWSA
accurately. All that is evident is an undertaking by the govern-
ment to deliver water to various water owners.

Looking to the aids of contract construction, we find nothing in
the history surrounding the formation of the contract which
buttresses appellants’ characterization of the decree. The 1945
consent decree was entered ending a suit for declaratory judgment
to determine the obligation of the Bureau to deliver water to the
Sunnyside irrigation district and to determine the respective water
rights of all the users of the Yakima River. The case was settled
following the decision of Fox v. Ickes, 137 F.2d 30 (D.C. Cir.
1943), where the court held that the water users had property
rights and that the Bureau was obligated to distribute the avail-
able water according to priorities established under State of
Washington law. Considering this litigation history from which
the “contract” arose, we note that at the time of contract
formation, only the government's obligation to deliver the Yakima
River water and the farmers’ respective property rights to that
water were at issue. There is nothing surrounding the contract

A-6

formation which suggests that the government sought to expand
the issues resolved in the decree beyond those which were the
subject of the litigation. We also note that prior to the entrance of
the decree, indeed prior to 1977, the government had never
computed a TWSA nor projected any allocations of water in
times of shortage. Thus there is nothing in the circumstances
surrounding the entrance of the decree or in any custom or usage
to suggest that the decree was formalizing any prior act or
obligation of the government to forecast the TWSA. Construing
the consent decree as a contract, as we must for enforcement
purposes, we find that at the time of contract formation the
parties did not intend to obligate the Bureau to forecast accurately
the TWSA. Such an obligation cannot now be added by this
court. (We also have considered appellants’ brief argument that
the February TWSA estimate amounted to an anticipatory breach
of the consent decree; we find this argument unpersuasive. )

Appellants also assert that the government’s obligation is
founded upon an implied-in-fact contract, and that this issue,
which is premised upon disputed facts proving the intent of the
parties to contract, should have been reserved for trial. We agree
with the Claims Court’s determination that summary judgment
wus appropriate in this instance. We can assume that the Claims
Court has jurisdiction over implied-in-fact contracts, as it has
held. Pacific Gas & Electric Co. v. United States, 3 Cl. Ct. 329,
338 (1983). To prove that an implied-in-fact contract exists,
claimants bear the burden they had to bear in the former Court of
Claims. They have to show mutuality of intent to contract, offer
and acceptance, and that the officer whose conduct is relied upon
had actual authority to bind the government in contract. See
generally City of Alexandria v. United States, 737 F.2d 1022
(Fed. Cir. 1984); Cutler-Hammer v. United States, 441 F.2d
1179, 1182 (Ct. Cl. 1971) {the contract “must be stated in the
form of an undertaking, not as a mere prediction or statement of
opinion or intention”). Appellants contend that the authority io
make a contract to forecast the TWSA accurately can be found in
the consent decree to which the government is a signatory.
Appellant has not asserted a basis showing any government
agent’s authority to obligate the governznent to potential liability

—

A-7

for faulty projections of the TWSA separate from the consent
decree. Having considered the decree under the rules of contract
construction, we have found that no term exists in the decree.
Since the government signed only that decree, its authority to
bind itself flows only to that decree and only to that which is
agreed within the decree. The party moving for summary judg-
ment has the burden of proving that no genuine issue of material
fact exists. Where, as here, the moving partv meets that burden,
the nonmoving party must show that an issue of material fact does
exist. (“[Al]lthough the moving party be unaided by any pre-
sumption, when he has clearly established certain facts the
particular circumstances of the case may cast a duty to go forward
with controverting facts upon the opposing party, so that his
failure to discharge this duty will entitle the movant to summary
judgment.” 6 J. Moore, W. Taggart & J. Wicker, Moore's Federal
Practice § 56.15[3] (2d ed. 1984).) Here the government met its
burden; appellants did not.

Appellants’ claims, arising from a predicted natural disaster
that did not happen, is actually the kind of governmental error
which may cause heavy loss, but cannot be placed in the context
of jurisdiction under the Tucker Act, 28 U.S.C. § 1491, that we
must deal with here. City of Manassas Park v. United States, 633
F.2d 18 (Ct. Cl.), cert. denied, 449 U.S. 1035 (1980); Eastport
Steamship Corp. v. United States, 372 F.2d 1002 (Ct. Cl. 1967).
We are aware, and appellants correctly point out, that “an action
may be maintained * * * which arises primarily from a contrac-
tual undertaking regardless of the fact that the loss resulted from
the negligent manner in which defendant performed its contract.”
Bird & Sons, Inc. v. United States, 420 F.2d 1051, 1054 (Ct. Cl.
1970) (quoting Chain Belt Co. v. United States, 115 F.Supp. 701,
711-12, 127 Ct. Cl. 38, 54 (1935)). Moreover, “[t]he absence of
Government tort liability has not been thought to bar contractual
remedies on implied-in-fact contracts, even in those cases also
having elemenis of a tort.” Hatzlachh Supply Co. v. United
States, 444 U.S. 460, 465 (1980). Here, however, no contractual
duty exists; negligent performance of a noncontractual duty can-
not be the basis of a breach of contract claim. Rather, the
negligent disclosure of information by the government, when the

A-8

government had no contractual duty to supply such information
may sound in tort. See United States v. Neustadt, 366 U.S. 696,
706 (1960) (“the duty to use due care in obtaining and commu-
nicating information upon which that party may reasonably be
expected to rely in the conduct of his economic affairs, is * * * the
traditional and commonly understood legal definition of the tort of
negligent misrepresentation * * *.”)

Finally, we disagree with the Claims Court’s determination that
appellants were not correct parties to sue under the consent
decree and subsequent alleged implied contracts. It is undisputed
that appellants have a property right in the water to the extent of
their beneficial use thereof. Fox v. Ickes, supra. The irrigation
districts, which contracted with the Bureau, act as a surrogate for
the aggregation of farmers. They use no water themselves. The
farmers ultimately pay for all the services which the government
supplies. It is clear that the appellants, owners of the property at
issue, the water, also are intended third-party beneficiaries of the
1945 Consent Decree. Under the rules of the Claims Court
“every action shall be prosecuted in the name of the real party in
interest.” Claims Court R. 17(a). Here the farmers, owners of the
water and beneficiaries of the irrigation projects, are the true
parties in interest.

Conclusion

The judgment of the Claims Court granting appellee’s motion
for summary judgment is affirmed.

AFFIRMED

A-9

Appendix B

In the United States Claims Court
(February 21, 1984)
No. 113-80C
H. F. Allen Orchards, et al.
Vi
The United States
No. 226-80C
Elbert B. Schinmann, et al.
v.
The United States
No. 36-81C
R. E. Redman & Sons, Inc.
v.
The United States
Contract between irrigation district and Bureau of Reclama-
tion; implied terms; Bureau not contractually obligated to inform
district members accurately of total water supply to be available
for growing season; irrigation districts not mere agents of their

members, and members not contract principals; members not
third-party beneficiaries of districts’ contracts with Bureau.

OPINION ON CROSS-MOTIONS FOR SUMMARY
JUDGMENT

Miller, Judge:

In these three consolidated cases approximately 160 plaintiffs
seek damages from the United States for breach of claimed
contract obligations by the United States Bureau of Reclamation
(the Bureau) to inform them accurately in February 1977 as to
the total quantity of water it expected to be able to supply to them
for irrigation purposes during the 1977 growing season. Plaintiffs
assert that because the Bureau understated the quantity of water
available it caused them to plant fewer crops than they could have

A-10

had they received accurate estimates, to their financial detriment.
The government defends upon a number of grounds, including:
(1) That the Bureau had no such contractual obligation; (2) that
plaintiffs neither had a contract with the Bureau nor were third-
party beneficiaries entitled to sue under the contracts of their
irrigation districts with the Bureau; (3) that plaintiffs failed to
exhaust the administrative remedies provided for in the contract
between the districts and the Bureau; (4) that under the terms of
such contracts the government is absolved from liability for the
claimed breach; (5) that this court lacks jurisdiction because the
claims sound in tort; and (6) that to the extent plaintiffs rely on
the terms of a consent decree in a district court action for the
meaning of the contract provisions, exclusive jurisdiction to inter-
pret the decree is reserved by the decree to the district court.

It is determined herein that defenses (1) and (2) are valid.
Accordingly, it is unnecessary to rule on the validity of the other
defenses.

FACTS

Plaintiffs are both natural persons and corporations who farm in
an area of eastern Washington state drained by the Yakima River.
They are some of the members of ten Yakima Project irrigation
districts.

The Yakima Project consists of 250 miles of rivers in the
Yakima Basin system. It includes six man-made or enhanced
storage reservoirs with storage capacity of approximately
1,070,700 acre-feet (a.f.) of water and benefits approximately
500,000 acres of irrigated land. The Project stores, diverts, and
delivers irrigation water through its Project works into the works
of the various participating irrigation districts. Water is channeled
from storage reservoirs and the Yakima River and its tributaries,
to the head gates of the districts. The districts then channel the

' Such irrigation districts are: Grandview, Granger, Kennewick, Kitti-
tas, Outlook, Prosser, Roza, Sunnyside Valley, Yakima-Tieton and
Zillah.

A-11

water into their main irrigation district canals, allocate it among
their members and deliver it through their own distribution
systems to the individual farms and fields. The United States is
not involved in the delivery to, or the allocation of water among,
or assessment of members by the districts. Individual water users
within the districts are not billed by the United States but by the
districts proportionately for the water used.

The Yakima Project was first authorized by the Secretary of
the Interior in 1905, pursuant to the Reclamation Act of 1902, 32
Stat. 390 (now embodied throughout 43 U.S.C. ch. 12 (1976)).
Although originally the Bureau contracted directly with some
individual Project water users for a period of time, it now
contracts with water user organizations only, usually irrigation
districts organized under Washington State law. The charges
made by the Bureau to the districts cover amortization of project
construction costs as well as the federal government’s operating
and maintenance costs.

In 1939 a suit for declaratory judgment was instituted in the
United States District Court for the Eastern District of Washing-
ton (Kittitas Reclamation District v. Sunnyside Valley Irrigation
District, Civil No. 21) to determine the obligation of the Bureau
to deliver water to the Sunnyside Valley Irrigation District.
Thereafter, a cross-complaint was filed in.the case requesting the
district court to determine the respective water rights of all the
users of the waters of the Yakima River and its tributaries.

During the pendency of this action, a decision was issued by the
Court of Appeals for the District of Columbia which dealt with
the same Yakima Reclamation Project. Fox v. Ickes, 137 F.2d 30
(D.C. Cir.), cert. denied 320 U.S. 792 (1943). It held that under
the Reclamation Act, the water rights of the irrigation districts
and water users were property rights to the extent they could
beneficially use the water and, accordingly, the Secretary of the
Interior was barred from posting charges for water usage in order
to pay for additional construction costs in excess of the construc-
tion charges authorized by statute. While the Bureau was not
obligated to furnish any more water than was available, the court
determined that the Bureau was obligated to distribute the

A-12

available water according to the priorities of the parties that had
been established according to the law of the State of Washington.

After the decision in Fox v. Ickes, the parties in the Kittitas
Reclamation case elected not to continue the adjudication of the
issue of the actual priorities of the individual water users, but
instead agreed in 1945 upon a consent decree to be entered by the
United States District Court for the Eastern District of Washing-
ton. The decree set forth both the allotment of water to the
various irrigation districts in normal years and a procedure for
allocation of the total water supply available in times of water
shortage. It defined the “Total Water Supply Available”
(TWSA) as:

That amount of water available in any year from natural flow
of the Yakima River, and its tributaries, from storage in the
various Government reservoirs on the Yakima watershed and
from other sources, to supply the contract obligations of the
United States to deliver water and to supply claimed rights to
the use of water on the Yakima River, and its tributaries,
heretofore recognized by the United States.

Irrigation districts holding senior contract rights and others
holding historically recognized rights, designated as “non-prorat-
ables”, were to receive all of their decreed amounts to the extent
possible from TWSA prior to those holding junior or “proratable”
rights. Some districts are entirely non-proratable; others have
both non-proratable and proratable rights. Plaintiffs all claim to
be members of proratable districts.

After the entry of the 1945 consent decree redefining the
irrigation water supply entitlements to the various districts and
establishing the proratable classifications, the Bureau executed
new or amended contracts with all irrigation districts within the
Yakima Project. The contracts referred to the consent decree and
incorporated portions of it either verbatim or by reference.

In 1977 there was a water shortage in the Yakima area because
of drought and low snow pack. Precipitation averaged only about
one-third of normal for several months prior to March. At the
beginning of 1977, the Yakima area snow pack was only 4 percent

A-13

of normal. Although the Bureau generally puts little or no
reliability on forecasts in any year until April or May, the
irrigation districts, with which the Bureau had several meetings,
were eager to know what the Bureau’s preliminary estimate would
be. Accordingly, on February 7, 1977, the Bureau issued a TWSA
estimate of 1,220,000 a.f., including 860,000 a.f. of storage and
360,000 a.f. of runoff. The Bureau’s TWSA forecast projected
continuation of the approximately one-third of normal precipita-
tion which it had been experiencing for several months. Under
this preliminary TWSA estimate the districts would receive 100
percent of their non-proratable entitlement and 6 to 7 percent of
the proratable allotment. Recognizing that more favorable precip-
itation had occurred in March, generating increased snow pack,
on April 7, 1977, the Bureau upgraded the TWSA forecast to
1,390,000 a.f., with proratables projected to receive approximately
13 percent of their normal supply of water. Due to increased
precipitation in March, April and May, greater runoff resulting
from warm April temperatures, greater percentage of return flow
than had been projected and diversions of water well below the
usual amount at that time of the year, on May 17, 1977, the
Bureau updated its TWSA estimate by approximately 350,000
a.f., to a total of approximately 1,740,000 a.f., projecting a 50
percent supply for the wholly proratable districts. By July 1, 1977,
the Bureau’s estimate of the TWSA made available from Febru-
ary to July 1, 1977 was 2,070,000 a.f., an increase of 850,000 a.f.
over the February estimate. This resulted from revised findings as
to return flow, smailer diversions and 500,000 a.f. added by
additional precipitation, throughout the spring and summer. For
the entire irrigation year the proratables received 70 percent of
their normal water supply.

Plaintiffs concede that they received all of the water to which
they were entitled during 1977. Their complaint is only with
respect to the underestimate in February. Plaintiffs claim that the
low forecast of TWSA made in February 1977 was due to the
Bureau’s failure to include projected excess return flow from the
irrigation canals and ditches. Plaintiffs contend that the contracts
between the Bureau and the various irrigation districts of which
they are members obligate the Bureau to make accurate forecasts

A-14

of TWSA and that the failure to make such an accurate estimate
in February 1977 was a breach of the various contracts.

Defendant denies that there was any such contractual obliga-
tion. It asserts that it made the forecast in February 1977
voluntarily as a sovereign act rather than as a contractual require-
ment, in order to accommodate the farmers; that the forecast did
not omit any pertinent factor in estimating the TWSA; that it was
as accurate as could reasonably be accomplished with the infor-
mation available in February; and that the revisions thereafter
were made in the light of changed circumstances.

DISCUSSION
I

After the parties had submitted their briefs in support of their
cross-motions for summary judgment, on August 30; 1983, the
court filed an order, which, after taking note of plaintiffs’ admis-
sion in their brief that “This is not a case in which the damage
was really caused by a shortage of water’, stated in part as
follows:

Plaintiffs allege that defendant breached an obligation to
each plaintiff to furnish a proper estimate of total water
supply available. Plaintiffs are directed to file a statement
containing the appropriate record references to the provisions
in each contract supporting the existence of such an
obligation.

In their responses plaintiffs asserted the following as the basis
for their allegation: /

(a) The obligation of the United States to furnish a proper
estimate of total water supply available has its genesis in the
consent decree of January 31, 1945, in the case of Kittitas
Reclamation District, etc. v. Sunnyside Valley Irrigation District,
et al., (E.D. Wash., Civil Action No. 21). The decree provides
that in the event the TWSA is insufficient, the Bureau is to
diminish proportionately the amount of water going to each of the
irrigation districts of which the plaintiffs are members.

eee ee

A-15

(b) All the irrigation districts to which the plaintiffs belong are
subject to the provisions of the 1945 consent decree, and in many
instances the post-1945 contracts between their districts and the
United States refer to the consent decree.

(c) The provisions of many of the post-1945 contracts as well
as the consent decree necessarily impliedly require the govern-
ment’s Project officer to compute TWSA because it is essential in
order to make the proper prorations to the districts.

(d) Communication of the Bureau’s TWSA computations to
the farmers is also an implied requirement of the consent decree
and the water supply contracts, because (i) they specify that
water deliveries are to commence generally in April of each
irrigation season, and because (ii) the farmers must know how
much water will be available to them well before April | so that
they may be able to plan crops and acreage to be planted, the
irrigation methods to be used and other crucial farming decisions.
Therefore the value of the farmer’s contractual right to irrigation
water is conditioned upon timely notice of the amount of water to
be allocated to them.

Plaintiffs’ reasoning is not persuasive.

Plaintiffs fail to point to a single provision in any of the
contracts wherein the Bureau expressly obligated itself or the
United States to furnish to plaintiffs any advance estimate or
forecast of the total water supply available for irrigation purposes
during the entire growing season.

Contracts are, of course, the expressions of mutual intent and
agreement, and, in the absence of any express provision therefor
in these contracts, there is no basis for imputing to the United
States the assumption of an obligation not merely to make such
forecasts but to do so with accuracy or else subject itself to
liability for large sums in damages.

Lacking an express promise by the government, plaintiffs argue
that because such an accurate annual forecast would be valuable
to the farmers a promise by the government to furnish it or pay
damages should be implied. But the major obstacle to such an

A-16

argument is that there is no proof that the government ever
agreed to such an obligation or ever intended to do so.

With respect to the situation where there is no written contract
whatsoever between the parties, Pacific Gas & Elec. Co. v. United
States, 3 Cl. Ct. 329, 338-39 (1983), aptly summarizes the
requirements for the United States to be deemed to have entered
into an implied contract as follows:

A contract implied-in-fact requires a showing of the same
mutual intent to contract as that required for an express
contract. The fact that an instrument was not executed is not
essential to consummation of the agreement. It is essential,
however, that the acceptance of an offer be manifested by
conduct that indicates assent to the proposed bargain. The
requirements of mutuality of intent, and the lack of ambigu-
ity in offer and acceptance, are the same for an implied-in-
fact contract as for an express contract; only the nature of the
evidence differs. The officer whose conduct is relied upon
must have had actual authority to bind the Government in
contract. It is plaintiff's burden to prove that an implied-in-
fact contract was made. Extensive negotiations in which the
parties demonstrate hope and intent to reach an agreement
are not sufficient in themselves to establish a contract im-
plied-in-fact. [Citations omitted. ]

And see also Baltimore & Ohio R.R. v. United States, 261 US.
592, 597 (1923); Porter v. United States, 204 Ct. Cl. 355, 365,
496 F.2d 583, 590 (1974), cert. denied, 420 U.S. 1004 (1975);
and Prevado Village Partnership v. United States, 3 Cl. Ct. 219,
223-24 (1983).

Plaintiffs’ burden of establishing an implied promise is all the
more difficult where the parties contemplate that their contractual
relationship arises by means of a written agreement. As one
authority states:

Only the least thought is necessary to realize that a “gap”
in an agreement should not be filled merely because a gap
exists. * * * A promise that is not there in language, or an
unexpressed condition of an express promise, shou!d be put

A-17

in by process of implication only when the conduct of the
parties reasonably interpreted already has expressed it.

(3 A. Corbin on Contracts, § 569, at 341 (1960).)

The pertinent case law on implied promises is similarly summa-
rized in 17 Am. Jur. 2d, Contracts, § 255, at 651-52 (1964):

where a contract is reduced to writing, it is generally held, in
the absence of mistake or fraud, that the written contract
includes or embodies the whole agreement of the parties and
all material provisions, and that, therefore, no additional
agreements, obligations, or warranties can be implied. If
there is to be any implication, it must result from the
language employed in the instrument or be indispensable to
carry the intention of the parties into effect. Terms are to be
implied in a contract, not because they are reasonable, but
because they are necessarily involved in the contractual
relationship so that the parties must have intended them and
have only failed to express them because of sheer inadver-
tence or because they are too obvious to need expression.
Insofar as it indicates anything, the absence of a particular
provision from a contract indicates an intention to exclude it
rather than intention to include it. No implied obligation can
exist under a contract upon a point which it is apparent was
not in the minds of the parties when the contract was
executed, and nothing can be implied from a contract which
could not have been lawfully expressed therein.

And see also Somerville Technical Services v. United States, 226
Ct. Cl. 291, 300, 640 F.2d 1276, 1281 (1981); Somali Develop-
ment Bank v. United States, 205 Ct. Cl. 741, 751, 508 F.2d 817,
822 (1974); Hudson Canal Co. v. Penna. Coal Co., 75 U.S. (8
Wall) 276 (1868); Danciger Oil & Re,” Co. of Texas v. Powell,
137 Tex. 484, 154 S.W. 2d 632 (1941); Ives v. City of Williman-
tic, 121 Conn. 408, 185 A. 427 (1936); and Domeyer v.
O'Connell, 364 Ill. 467, 4 N.E. 2d 830 (1936).

Plaintiffs have failed to supply any factual predicate from
which it may be concluded that the Bureau impliedly obligated
itself to make such advance estimates or forecasts. Periodic

A-18

computation of the TWSA may be necessary to enable the
Bureau to make the proper prorations of the water among the
irrigation districts as it becomes available. But plaintiffs have not
demonstrated any discernible need for an advance estimate or
forecast for the whole growing season in order to enable the
Bureau to distribute the water properiy. Nor have plaintiffs
demonstrated any other reason why the Bureau would have been
willing to obligate itself to make such a forecast on pain of
liability for damages if it is mistaken or inaccurate.

Finally, even if such a promise could be implied, it would not
be binding on the government, since plaintiffs have failed to show
that any government officer had authority to obligate the United
States to an agreement to make accurate advance forecasts of the
total water which would be available for the growing season in the
Yakima River basir or to pay damages for its breach. The
authority of the Secretary of the Interior to enter into contracts
with state irrigation districts for payment of charges is contained
in 43 U.S.C. §§ 511-26 (1976). Nowhere do these sections
authorize the Secretary or his delegate to bind the government to
the making of accurate annual advance forecasts of the total
water to be made available for the growing season.

The officer whose promise is relied upon by plaintiffs must have
had actual authority to bind the government to that promise.
Federal Crop Ins. Corp. v. Merrill, 332 U.S. 380, 384 (1947);
Schweiker v. Hansen, 4... J.S. 785, 788-89 (1981); Haight v.
United States, 209 Ct. Cl. 698, 538 F.2d 346, cert. denied, 429
U.S. 841 (1976). “The claimant for money damages for breach of
an express or implied in fact contract must show that the officer
who supposedly made the contract had authority to obligate
appropriated funds.” Kania v. United States, 227 Ct. Cl. 458, 465,
650 F.2d 264, 268, cert. denied, 454 U.S. 895 (1981). It is a
“time-honored principle that the Federal Government is not
bound by its agent acting beyond his authority * * * .” National
Bank of South Carolina v. United States, 223 Ct. Cl. 573, 577,
621 F.2d 1109, 1111 (19890).

oy ee T.,.C.

A-19
II

Assuming that the irrigation contracts could be construed to
provide for the making of the advance estimates, plaintiffs would
still not be entitled to recover herein, because the contracts give
them no enforceable rights against the United States. Even where
a person receives a substantial financial benefit from the govern-
ment’s performance of a contract, he is not entitled to recover for
its breach absent a showing that he has privity of contract with
the United States or that he is a direct third-party beneficiary of
such contract. United States v. Johnson Controls, Inc., 713 F.2d
1541, 1550-51 (Fed. Cir. 1983); Somerville Technical Services v.
United States, supra, 226 Ct. Cl. at 301, 640 F.2d at 1282;
Housing Corp. of America v. United States, 199 Ct. Cl. 705, 712-
13, 468 F.2d 922, 925-26 (1972); D. R. Smalley & Sons, Inc. v.
United States, 178 Ct. Cl. 593, 372 F.2d 505, cert. denied, 389
U.S. 835 (1967). The contracts upon which plaintiffs rely are
contracts between the United States and the irrigation districts of
which plaintiffs are only some of the members, not between the
United States and plaintiffs. Hence there is no privity between the
plaintiffs and the United States.

Plaintiffs contend that they are actually the principals and that
the irrigation districts are merely their agents in the contracts with
the United States. But for this to be true, the districts would have
to be mere agents; agree with the principals to follow their
directions exclusively; own no property of their own; and have no
authority to make independent decisions through their own of-
ficers. See National Carbide Corp. v. Commissioner, 336 U.S. 422
(1949); Moline Properties, Inc. v. Commissioner, 319 U.S. 436
(1943); and Vaughn v. United States, 3 Cl. Ct. 316 (1983).

There is little or nothing in the record which can support such a
scenario. It is well established that irrigation districts are public
corporations or local governmental units organized under author-
ity of state statutes for the purpose of appropriating, regulating,
controlling, and distributing water for irrigation, by the owners of
the land to be irrigated. Fallbrook Irrigation District v. Bradley,
164 U.S. 112 (1896); and see Salyer Land Co. v. Tulare Water

A-20

District, 410 U.S. 719, 723 (1973); and 3 C. Kinney on Irrigation
and Water Rights, § 1404 (2d ed. 1916).

In the State of Washington the organization of an irrigation
district is strictly controlled by state law (Wash. Rev. Code Ann.
§ 87.03.030 (1962)). It requires the county commissioners to
supervise the election and approval by two-thirds of the qualified
landholders in the proposed district (§ 87.03.035-050). It is
operated by a board of directors elected by the landholders, who
in turn elect the officers (§ 87.03.115). The board is granted the
usual powers to make contracts and all necessary rules and
regulations for the conduct of the affairs of the district (§
87.03.115). It is also given the power to acquire, “either by
purchase or condemnation, or other legal means, all lands, and
waters, water rights, and other property necessary” for irrigation
projects (§ 87.03.140). Money may be borrowed and bonds issued
for the payment of the same upon approval of the voters
(§ 87.03.200). All of the real property in the district may be
assessed for the purposes of the district (§ 87.03.240). The
boundaries of the district may be changed and lands added or
excluded (§ 87.03.555-03.695). A district is specifically author-
ized “To construct, repair, purchase, maintain or lease a system
for the sale or lease of water to the owners of irrigated lands
within the district for domestic purposes” and “To assume, as
principal or guarantor, any indebtedness to the United States
under the federal reclamation laws, on account of district lands”
(§ 87.03.015).

Title 43 U.S.C. §§ 511 and 523 (1976) authorize the Secretary
of the Interior to contract with such legally authorized irrigation
districts for the impounding, storage, distribution and delivery of
water to such districts in return for payments by the districts for
the construction and maintenance of reservoirs, irrigation works,
canals and distribution systems. Section 423(e) pro'iibits the
delivery of water upon the completion of any new project or new
division of a project initiated after May 25, 1926, until a contract
in a form approved by the Secretary shall have been made with an
irrigation district providing for payment by the district of the cost
of constructing, operating and maintaining the works during the

-

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4

3
4
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A-21

time they are in control of the United States. All of the contracts
at issue were entered into or amended after 1926, and plaintiffs do
not contend that they are not subject to § 423. Thus, plaintiffs
have failed to demonstrate that the Secretary of the Interior or his
delegate was even authorized to contract with the individual
plaintiffs as principals, let alone intended to do so.

Moreover, the contracts themselves are entirely inconsistent
with any such theory. There is no evidence of any agreements
between the members or water users and the irrigation districts
that the latter are to act as mere agents of the former. Each
contract is executed by the irrigation district in its own name and
specifically designated as a contract between the United States
and the district. In each contract the United States agrees to
deliver water to the irrigation district, and it is the latter which has
the responsibility for the allocation and distribution of the water
to the members of the disicict. In turn the district agrees to repay
the United States periodically and in installments for the govern-
ment’s construction of its reservoirs, dams and irrigation works
and its operating and mainterance costs in connection with the
water supply, distribution and delivery systems. The method of
allocation and distribution of the water to the individual users is
not provided for in the contract, but is the respensibility of the
district. While, of course, the district obtains its funds from its
members or water users, there is no necessary correlation between
the amounts paid the United States and the amounts assessed by
the district or levied against the users, since the district may also
have its own operating and maintenance cost. Furthermore, in
each of the contracts there is a clause which in substance states
the following: “Nothing in this contract shall be deemed to relieve
the District in any way of its general obligation to pay the United
States the full amount owed to the United States hereunder,
regardless of delinquencies in payment of assessments and
charges by the landowner to the District.’”

? From contract between the United States and the Prosser Irrigation
District, executed November 25, 1949, par. 24.

A-22

Plaintiffs claim that they are principals and the irrigation
districts mere agents because the contracts recite that the district
is “the duly authorized representative” of the user. However, even
if this could be equated to “agent”, it would not control over the
substance of the contracts. Fair analysis of the contracts requires
the conclusion that the irrigation districts are representatives of
the water users only in the sense that municipal corporations
generally represent the residents of a municipality or membership
corporations represent their members.

Plaintiffs’ claim that they are entitled to sue the United States
as third-party beneficiaries of the contracts between the govern-
ment and the irrigation districts is also meritless. While this court
has jurisdiction of a suit on a contract by an intended third-party
beneficiary of the contract (Hebah v. United States, 192 Ct. Cl.
785, 792, 428 F.2d 1334, 1339 (1970) ), an individual who is not a
party to an agreement does not have the right to sue for breach of
that agreement merely because he would benefit from its per-
formance or because it would be beneficial to him to have the
right. German Alliance Ins. Co. v. Home Water Supply Co., 226
U.S. 220, 230 (1912); Robo Wash, Inc. v. United States, 223 Ct.
Cl. 693, 697-98 (1980); Ables v. United States, 2 Ct. Cl. 494, 500
(1983), aff'd, __ F.2d _ (Fed. Cir. Jan. 17, 1984). And see also
4 A. Corbin on Contracts, § 775, at 8 (1951) and 17 Am. Jur. 2d,
Contracts, § 304.

Plaintiffs’ claim is based on nothing more than the reasoning
that, because the contracts for the orderly distribution of water by
the United States to the districts were designed to enable the
districts to make sub-distributions to their members, the individ-
ual members are the ultimate beneficiaries of the contracts, and
hence each is entitled to sue the United States individually for
any breach of the contract between the district and the United
States.

The major fallacy in the plaintiffs’ reasoning is that it ignores
the fact that in incorporating the districts to contract in belialf of
their members collectively with respect to their water nights, the
members exchanged their rights to enforce and protect their
individual interests for interests in the public corporations, in the

|

A-23

same way that members or shareholders generally do when they
combine their interests in to membership or business corpora-
tions. Most corporate contracts are entered into for the benefit of
their members or shareholders, but if for that reason alone each
member was entitled to sue individually for an alleged breach
affecting all, irrespective of whether the corporation or a majority
of the members thought there was such a breach, it would
authorize multitudinous litigation and be destructive of the con-
ception of the corporation as an entity separate from its members
or shareholders

Members or shareholders are not per se excluded from being
third-party beneficiaries of corporate contrats entitled to enforce
their individual rights against promisors. But obviously more than
the mere inuring of benefit from performance is required for them
to be entitled to do so. There must be some manifestation of
intent between the parties to the contract that if the promisor
defaults the members or shareholders will be compensated di-
rectly by the promisor. W. Fletcher, Cyclopedia of the Law of
Private Corporations, §§ 5911, 5923 (rev. perm. ed. (1980) and
1983 Supp.). Schaffer v. Universal Rundle Corp., 397 F.2d 893,
896 (Sth Cir. 1968); Robo Wash, Inc. v. United States, 223 Ct.
Cl. 693, 697 (1980); Howell v. Fisher, 49 N.C. App. 488, 272
S.E. 2d 19 (1980), pet. for review denied, 302 N.C. 218, 277 S.E.
2d 69 (1981); Sutter v. General Petroleum Corp., 28 Cal. 2d 525,
170 P 2d 898 (1946).

This rule is given particular emphasis where the claimed third-
party beneficiary is asserting his right as one of many members or
inhabitants of a governmental entity, such as the United States, a
state, a municipality, or an irrigation district as is here involved.
As is pointed out in Calamari & Perillo on Contracts, § 247 (ai
387 (1970)) “Every contract made by a governmental unit is
made for the benefit of its inhabitants. If a city contracts to have a
police station, firehouse, tax office or park built, it does so to
enhance the general welfare and, thus, to benefit the public. Yet,
in such a case, no individual inhabitant has a right to enforce the
contract on his own behalf.” Accordingly, it is only where the
contact between the public corporation and the promisor

A-24

manifests the specific intent to give the individual an enforceable
right to compensation for its breach that he may sue thereon.

The leading case with respect to this rule is German Alliance
Ins. Co. v. Home Water Supply, 226 U.S. 220 (1912). There an
insurance company as assignee of the owner of a number of
houses, brought suit against a water company for losses caused by
a fire which it claimed were attributable to the water company’s
failure to comply with its contract with the city of Spartanburg to
furnish adequate water supplies and pressure for city fire hydrants.
In denying the right of the plaintiff to sue as a third-party
beneficiary of the city’s contract with the water company, the
court explained (226 U.S. at 230-31):

Before a stranger can avail himself of the exceptional privi-
lege of suing for a breach of an agreement, to which he is not
a party, he must, at least show that it was intended for his
direct benefit. * ° °

Here the city was under no obligation to furnish the
manufacturing company with fire protection, * . -
but, like other municipal contracts, was made by Spartan-
burg in its corporate capacity, for its corporate advantage,
and for the benefit of the inhabitants collectively. The
interest which each taxpayer had therein was indirect—that
incidental benefit only which every citizen has in the per-
formance of every other contract made by and with the
government under which he lives, but for the breach of
which he has no private right of action.

The underlying rationale of German Alliance Ins. Co. was
restated succinctly by Justice Cardozo, as a member of the New
York Court of Appeals, in a case involving similar facts (H. R.
Moch Co. v. Rensselaer Water Co., 247 N.Y. 160, 164-65, 159
N.E. 896, 897 (.928)):

In a broad sense it is true that every city contract, not
improvident or wasteful, is for the benefit of the public. More
than this, however, must be shown to give a right of action to
a member of the public not formally a party. The benefit, as

_——

A-25

it is sometimes said, must be one that is not merely inciden-
tal and secondary. * ° * It must be primary and
immediate in such a sense and to such a degree as to bespeak
the assumption of a duty to make reparation directly to the
individual members of the public if the benefit is lost. The
field of obligation would be expanded beyond reasonable
limits if less than this were to be demanded as a condition of
liability. * ° °

By the vast preponderance of authority, a contact between a
city and a water company to furnish water at the city
hydrants has in view a benefit to the public that is incidental
rather than immediate, an assumption of duty to the city and
not to its inhabitants.’

The American Law Institute’s Restatement of the Law Con-
tracts, Second (1981), codifies this rule as follows:

§ 313. Government Contracts

* * * *

(2) In particular, a promisor who contracts with a govern-
ment or governmental agency to do an act for or render a
service to the public is not subject to contractual liability to a
member of the public for consequential damages resulting
from performance or failure to perform unless

(a) the terms of the promise provide for such liability; or

(b) the promisee is subject to liability to the member of
the public for the damages and a direct action against the
promisor is consistent with the terms of the contract and with
the policy of the law authorizing the contract and prescribing
remedies for its breach.

Comment:

’ For other cases following the majority rule that private citizens may
not bring a breach of contract action against a water company for a loss
by fire because of the water company’s failure to perform its contract
with a municipality to furnish an adequate supply of water, see 78 Am.
Jur. 2d, Waterworks and Water Companies, § 51 (at 938-39 (1975)).

A-26

a. Rationale. * . * Government contracts
often benefit the public, but individual members of the
public are treated as incidental beneficiaries unless a differ-
ent intention is manifested. In case of doubt, a promise to do
an act for or render a service to the public does not have the
effect of a promise to pay consequential damages to individ-
ual members of the public unless the conditions of Subsec-
tion (2)(b) are met.*

Recent cases applying the same rule include Miree v. United
States, 538 F.2d 643 (Sth Cir. 1976), per curiam on rehearing en
banc, adopting the dissenting opinion of Judge Dyer in the same
case at 526 F.2d 679, 686-88 and Miree v. United States, 242 Ga.
126, 249 S.E.2d 573 (1978) (Persons suffering injury in an
airplane accident at a county operated airport not entitled to sue
the county for breach of a contract between the county and the
Federal Aviation Administration to operate the airport safely,
because the contract did not manifest an intention that members

ea

ee

* The original Restatement of the Law Contracts (1932) is similar. It
provides:
§ 145. Beneficiaries Under Promises To The United States, A |
State, Or A Municipality. |
A promisor bound to the United States or to a State or munici-
pality by contract to do an act or render a service to some or all of )
the members of the public, is subject to no duty under the contract
to such members to give compensation for the injurious conse-
quences of performing or attempting to perform it, or of failing to
do so, unless,

(a) an intention is manifested in the contract, as inter-
preted in the light of the circumstances surrounding its forma-
tion, that the promisor shall compensate members of the
public for such injurious consequences, or

(b) the promisor’s contract is with a municipality to
render services the non-performace of which would subject the
municipality to a duty to pay damages to those injured thereby.

A-27

of the public be compensated);> Commonwealth of Pa. v. Na-
tional Ass'n of Flood Ins., 378 F.Supp. 1339 (M. D. Pa. 1974),
aff'd in part and rev'd in part, 520 F.2d 11 (3rd Cir. 1975), and.
Schell v. National v. National Flood Insurers Ass'n, 520 F. Supp.
150 (D. Colo. 1981) (Contract between Secretary of Housing
and Urban Development and insurers provided no basis for suit by
third-parties against latter for breach of duty to publicize availa-
bility of flood insurance, because of absence of manifestation of
intent to compensate or to be liable to members of public for
breach of any such duty); Martinez v. Socoma Companies, Inc.,
11 Cal. 3rd 394, 521 P.2d 841 (1974) (Persons certified by
federal government as disadvantaged not entitled to sue corpora-
tion for breach of contract with United States to provide job
training and employment to such class of persons, because the
contracts manifested no intent that defendant compensate plain-
tiffs or other members of public for nonperformance): Matternes
v. City of Winston-Salem, 286 N.C. 1, 209 S.E.2d 481 (1974)
(Plaintiff suing city for wrongful death of minor caused by
accumulation of ice on a bridge not entitled to recover under
city’s contract with state to maintain the state highway system
because of absence of specific intent to make plaintiff third-party
beneficiary of such contract); Davis v. Nelson-Deppe, Inc., $1

* After the decision of the Sth Circuit in Miree, at 538 F.2d 643, vie
Supreme Court vacated the judgment and remanded the case to the
court of appeals for consideration of the claim under Georgia law rather
tives federal commen law, for lack of a federal interest in the case. Miree
v. Dekalb County, 433 U.S. 25 (1977). On remand the court of appeals
certified the question of state law to the Georgia Supreme Court. Miree
v. United States, 565 F.2d 1354 (Sth Cir. 1978). The latter then held
that under Georgia law likewise the mere fact that a member of the
public would have benefited from the performance of the contracts does
not create third-party intended beneficiary status, and that there was no
intention manifested in the contracts that the country compensate any
member of the public for injurious consequences. Miree v. United States,
242 Ga. 126, 249 S.E.2d 573 (1978). Thereupon the court of appeals
affirmed the decision of the district court dismissing the plaintiffs’ suit
against the county. 588 F.2d 453 (Sth Cir. 1979).

eT
A-28

Idaho 463, 424 P.2d 733 (1967) (Truck owner could not main-
tain contract action as third-party beneficiary for damages to
equipment which went off a highway being reconstructed by
defendant under contract with state highway department, because
of absence of third-»arty beneficiary intent in contract); United
Dispatch v. E. J. Albrecht Co., 135 W.Va. 34, 62 S.E. 2d 289
(1950) (Building owner not entitled to recover for damage to
building as third-party beneficiary of defendant’s contract with
United States for construction of concrete wall and levee along
river bank for flood protection to city, absent evidence of specific
intent).

Pe ——-

For a variety of reasons it is perfectly clear that in entering into
the irrigation contracts neither the United States nor the irriga- |
tion districts intended that an individual member of the district be |
entitled to maintain an action against the United States for a
breach.

First, there is no express provision in any of the contracts
manifesting any such intent.

Second, 43 U.S.C. § 423(e) (1976) provides that every federal
contract for the delivery of water must be made with an irrigation
district organized under state law. Thus no officer had authority
on behalf of the United States to contract with an individual
member of such a district. What the federal officers have not been
authorized to do directly they may not be deemed to have been
authorized to accomplish indirectly by making district members
third-party beneficiaries entitled to enforce the contracts on their
own behalf. United States v. National Surety Corp., 309 U.S. 165
(1940); Ables v. United States, 2 Cl. Ct. 494, 501 (1983), afd,
__F.2d__ (Fed. Cir. Jan. 17, 1984); Frangella Mushroom
Farms, Inc. v. United States, 229 Ct. Cl. 578, 582 (1981), cert.
denied, 456 U.S. 916 (1982).

Third, the various contracts contain a clause making the
Secretary of the Interior arbiter of disputes between the parties
arising out of the contract involving questions of fact, and his

A-29

decision is to be conclusive as against the parties. The con-
tracting parties could hardly have intended that the irrigation
district be subject to such clause while at the same time any
member or the district may disregard it by asserting the same
claim as a third-party beneficiary.

i

Fourth, the contracts contain an exculpatory clause, holding the
United States harmless from liability for damages arising by
reason of shortages in irrigation water resulting from distribution
or any other causes.’ To allow a member of a district to:circum-
vent this restriction on the district by bringing suit in his own
name would also be inconsistent with the intent of the signatories
to the contract.

Fifth, absent an express provision entitling a third person not a
party to a contract to enforce the provisions of the contract on his

*The Amendatory Contract between the United States and the
Prosser Irrigation District contains the following typical provision:

Secretary Arbiter of Disputes Involving Questions of Fact
44. In the event of disputes between the parties hereto arising
out of this contract involving questions of fact, and, so far as the
provisions hereof require a determination of fact to be made, the
Secretary is hereby designated as the arbiter of such questions and
as the one required to make such determination of facts and his
decision thereon shall be conclusive as against the parties hereto.

"The same Prosser contract sets forth the following typical clause:
33. No liability shall accrue against the United States or any of
its officers, agents or employees for damage, direct or indirect,
arising by reason of shortages in the quantity of water available
through the irrigation system or interruptions in water deliveries to
lands in the District resulting from drought, inaccuracy in distribu-
tion, hostile diversion, prior or superior claims, accident to or failure
of facilities of the irrigation system, whether or not attributable to
negligence of officers, agents or employees of the United States, or
_other causes of whatsoever kind. Nor shall the District’s obligations
to the United States under this contract be reduced by reason of
such shortages or interruptions. In the event of such shortages or
interruptions, the United States will, however, make every reason-
able effort to remove promptly the cause thereof.

A-30

own behalf, in determining whether or not it could reasonably
have been implied it is fair to consider the consequences of such
an implied provision. It would subject the United States to the
cost of defending multitudinous individual suits of varying natures
with different measures and allocations of damages.* Moreover, it
would allow individual members to assert claims for breach of
contract which the contracting districts themselves and a majority
of their members do not believe are proper. It is noteworthy that
not a single district has joined in or otherwise supported plaintiffs’
claims herein.” These are consequences which Congress obviously
sought to avoid by the enactment of 43 U.S.C. § 423(e).

Conclusion

The pleadings, depositions, affidavits, admissions and other
documents in the record show that there is no genuine issue as to
any material fact and that defendant is entitled to judgment as a
matter of law. Accordingly, plaintiffs’ motions for summary judg-
ment are denied. Defendant’s cross-motions for summary judg-
ment are allowed. It is ordered that judgments be entered
dismissing the complaints, with costs to be awarded to defendant.

/s/ Puivip R. MILLER
Philip R. Miller, Judge

8 Plaintiffs do not state how many members or water users the ten
irrigation districts have, but defendant asserts and plaintiffs do not deny
that there are many thousands. Plaintiffs concede that they are a
minority in each of the districts since they have been unable to persuade
any district to bring suit on the same claim.

* Cf. United States v. Johnson Controls, Inc., 713 F.2d 1541, 1549
(Fed. Cir. 1983): “If direct access were allowed to all Government
subcontractors, contracting officers might, without appropriate safe-
guards, be presented with numerous frivolous claims that the prime
contractor would not have sponsored.”

res en Re

A-31

Appendix C

UNITED STATES COURT OF APPEALS
FOR THE FEDERAL CIRCUIT

No. 84-937

113-80C

226-80C
36-81C

H. F. Allen Orchards, et al.,

Elbert B. Schinmann, et al.,

R. E. Redamn & Sons, Inc.,
Appellants,

V.

The United States,
Appellee.

JUDGMENT
ON APPEAL from the U. S. Claims Court

This CAUSE having been heard and considered, it is OR-
DERED and ADJUDGED: AFFIRMED.

Dated: December 10, 1984.
Petition for Rehearing,
Denied, January 30, 1985.

Entered by Order of the Court
George E. Hutchinson, Clerk

/S/ GEORGE E. HUTCHINSON
Clerk

Issued as a Mandate: February 21, 1985.

A-32
United States Court of Appeals
for the Federal Circuit
No.84-937

H. F. Allen Orchards, et al.,

Elbert B. Schinmann, et al.,

R. E. Redman & Sons, Inc.,
Appellants,

v.
The United States,
Appellee.
ORDER
A petition for rehearing having been filed in this case,

UPON CONSIDERATION THEREOF, it is Ordered by the
court that the petition for rehearing be, and the same is hereby,
Denied.

For the court:

/s/ GEORGE E. HUTCHINSON,
George E. Hutchinson, Clerk

January 30, 1985
Date

A-33

United States Court of Appeals
for the Federal Circuit
717 Madison Place, N.W.
Washington, D.C. 20439

Date: December 21, 1984
Appeal No. 84-937, H.F. Allen Orchards, et al.
v. The United States

Dear Mr. Goldstein:
Pursuant to motion, the time to file the following paper has
been extended to and including January 18, 1985.
( ) Brief/Appendix for Appellant/Petitioner
( ) Brief for Appellee/Respondent
( ) Brief for Amicus Curiae
( ) Reply Brief
(X) Petition for Rehearing for Appellants
( )

For The Court
George E. Hutchinson, Clerk

/s/ELIZABETH J. CARROLL
By Elizabeth J. Carroll
Deputy Clerk

A-34

Appendix D

LIST OF PETITIONERS

The Petitioners in this proceeding, and the reclamation districts
to which they belong are:

H-F. Allen Orchards, et al. v. United States, United States
Claims Court No. 113-80C.

Petitioners Irrigation District

H.F. Allen Orchards.............. Yakima—Tieton
3 ae | Prrrererer rer ir ee Yakima—Tieton
aS ee ee Yakima—Tieton
Law FOGE AMID o.oo s ces cence Roza
Kathryn Allsop ..........--.0000- Roza
~~ FEROS Teer ere eee Roza
Mons AMWOFGE ... 06... cscs cccsee Roza
B 3 Enterprises, Inc............... Sunnyside and Roza
B 3, Inc./Willard Farms .......... Sunhaven Farms
errr er rer rT Roza and Wapato
vo Aree eer Wapato
Diariorte OPER «5. cc cece Wapato
ff 0 RS AP eee ee eee Roza and Wapato
Claude C. Bartsma..............- Kittitas
a er eer rrr er Kittitas
Courtney BR. Gaze ........ 2.22.5. Roza
Gwendolyn Baze ..........:.....: Roza
| | Pee Terre ee eee rr Roza and Sunnyside Valley
PET CT CTE Tee _. Roza and Sunnyside Valley
0 Peers Teer’ CET e Sunhaven Farms
Benton City Mint Farms, Inc....... Roza and Kennewick
POI 5 ok ceases baieoasane Kittitas
Blazing Tree Ranches ............ Kittitas
Claudia Bowehey...... 2... 520550, Wapato
Delmar E. Bouchey and Steven

Bouchey, a partnership.......... Wapato
Delmar E. Bouchey ...........«». Wapato
en Peer re reer eerer Wapato
| er Wapato
Arnold O. Brulotte ............... Roza
ACO POS. cece cnns Roza
Bennett G. Brulotie .............. Roza

Tracey Brulotte ... 2... cc cseccees Roza

Petitioners Irrigation District

Brulotte Farms (a partnership)... .. Wapato
Rosalie M. Brulotte (individually and
as personal representative of

Roland E. Brulotte, deceased) ... Wapato
Richard D. Brulotte .............. Wapato
Ronald L. Grulotte ............... Wapato
Burkholder Farms, Inc. ........... Roza
Cameron Bros. Ranch ............ Roza
PU I ov ia cc cnceceues Roza
MO Tr SOD bc cc ccccccances Roza
eee Roza
Carp-Land Co., a partnership...... Roza
petty Je Carpentér............... Roza
Wht COPORNR . cece ea. Roza
Carpenter Improvement District.... Roza
Thomas Carpenter, Jr............. Roza
Violet I. Caspenter............... Roza
Charron Company, Inc............ Roza
IN bb va io 'e'n dv caw ew Roza
eee Roza
NEE wih n'y 6 a's'b ie bv do Roza
ME I Gk oi cdc ctccdacecs Roza
Fred Christen, D.D.S. and Neil

Bisyak, a partnership ........... Kittitas
Pe IS oe sk sw dacs aces Kittitas
re Roza
MINE, ons sos caseeasees Roza
WO evs k eck scwicces ces formerly Horn Rapids
SPIN sac ck en ccdvedes formerly Horn Rapids
Nd iss 3s Gino cab vm ede Roza
ee ee Roza
pmemere G. Collies ............... Roza
Pee Ge MN cade ae cs Roza
Mee vay cdmaddunwed Wapato
OO Be” a ee Wapato
| ee Roza
Earl Crawford & Sons, Inc., a

iis Web ua ean doe Roza
Earl W. Crawford & Sons, Inc. .... Roza
eee eee Roza
eee rere Roza
a eee Roza

Earn en rere Roza

A-36

Petitioners
aba hen Roza
To ECT EET ee oe Roza
oe Le Aer ee ee Roza
ll, Re ee re Roza
SE ME a ncaa ncdcseun vanws Roza
PEE aie cas ccevvensensccass Roza
Wesley J. DenBeste .............. Roza
PORT Roza

Pr rer errr s
ES Msn g as bbav eben

Irrigation District

Sunnyside Valley
Sunnyside Valley

Drake Land & Cattle Co. ......... Roza
SM, CED oa vce ceeecsoures Roza
Se ee ee Roza
I Ges co ccevosusases Rosa
5 gE iris Roza
oo A errr rr rrr Roza
PPE Roza
Margaret M. DuFault............. Roza
Pk eee Roza

, 2 6 ere rrr: Roza
ED wa ciecesnceseusa Roza
Er Roza
PUI cbc ccsccéscscccees Kennewick
ES accccuwedeccvassas Roza and Sunnyside

James Durfey ............ Re TTY,
PRR TIN, BBs ga cc cc cccusseces
ac cccisewscevesecuans
CE Soc evaeccéseveecads
PE pi ChE Ws ceveseues hoes
PE NE nese ccvcneveccecs
Se ¢ SP rerrr ies
Elizabeth Farms, Inc..............

Glenna Mae Enquist ............. Roza
Bonnie Euteneier ................ Roza
Max W. Euteneier ............... Roza

if 4 8 EA rr
EE, Es ok pe aasneaeae
Farwestern Farms, Inc. ...........
et ccceesnseane
se esis eueene

Roza and Sunnyside
Roza and Sunnyside
Roza and Sunnyside
Roza and Sunnyside
Roza and Sunnyside
Roza and Prosser

Roza and Prosser

Roza and Sunnyside

Roza—Union Gap
Roza—Union Gap
Wapato

Wapato Project
Wapato Project

Forrest Johnson Orchards, Inc...... Roza
EEE PO PO Pe Kennewick
OS ey eee Kennewick

A-37

Petitioners Irrigation District
Nicholas J. Friend ............... Sunnyside Valley
Norma Jean Friend .............. Sunnyside Valley
Leo Gasseling & Sons, Inc......... Wapato
voese, Roza and Wapato Project
WN Vd a'cs vadeccecsces Roza and Wapato Project
Gordon A. Geffe................. USIS—Wapato Project
IN Svc ncc dda scenes USIS—Wapato Project
WE IID. «vnc acueiccccc cues Kittitas
WI DiS one ose deed andeca; Kittitas
Goldcrest Orchards, Inc. .......... Roza
Golob & Sons, Inc................ Sunnyside Valley
Jocelyn L. Goodwin .............. Roza
Quentin G. Goodwin ............. Roza
Green Acre Farms, Inc............ Wapato
Dorothy Groszhans............... Wapato
UII cco cc cvc ce ssc Wapato
cc DIP ARN Wapato
Common BE. Bieta ... 5... c cc ccs Wapato
Gilbert Dean Hata ............... Wapato
ME eal eos os Vads aces Wapato
re Wapato
Hattrup Farms, Inc. .............. Roza
Wareen ©. Plamen ... 06.50.0006 505s Roza
E.T. Hearron Company, Inc........ Roza
Charlotte E. Hensley ............. Roza
i A. Roza
a Roza
ie Kittitas
Nedra M. Hobbs................. Kittitas
me Roza—Sunnyside Valley
MTL a............:.. Roza—Sunnyside Valley
Houghton Farms................. Roza
J a Perr ree Roza
Robert W. Catterall .............. Roza
WIEN RPh a'a.n o.0's o Sa ¥ Semen Wapato
Cyt oe ss arate te) Wapato
8. ERE ore. Kittitas
PN is 6. cae to. Kittitas
CS a chee ee Wapato Project
EUR sd pn \pWececwecan Wapato Project

Elizabeth C. Johnson, individually
and as Executrix of the Estate of
Lawrence W. Johnson, deceased.. Roza

SOP NOS s =

A-38

Petitioners Irrigation District
Vivian T. JORasom .......cccccceee Roza
Jones Building Co. ............... Roza
Kendall Farms, Inc. .............. Roza
Alan R. Kiebaum ..........0.000. Wapato Project
Eileen F. Klebaum ..............- Wapato Project
Harvey Krueger............--+++- North Prosser
Ruth F. Krueger ...........ceeees North Prosser
Masuo Kuribayashi............... Wapato
Sue Kuribayashi ................. Wapato
Phyllis Leach. ......ccccccccccces Roza
Peabert BH. Leeeh. .. 2. ccc ctec cence Roza
Leiske & Son Orchards, a partnership Sunnyside
Leiske & Son Orchards, Inc........ Sunnyside
Berman G. Loektiee. .....ccccccccccss Sunnyside
Marilyn Leiske .........cccccess Sunnyside
Rodney J. Leiske ............000. Sunnyside
TOR F. TMMID go oc cc ccccenccss Sunnyside
i RE in oc cc ciccncccses Roza
Déetetins BD. Lame... ...ccccsccces Roza
Bee WH. BOMONE. . wc kTicccecss Roza
Walter O. Leonard ............... Roza
DR, TE ccc csncdccceccans Kittitas
Beets WH. BAUS... occ ctccccsacs Roza
Elizabeth E. Lewis ..............- Roza
Meme TE. TOU ow cw ccccecccccce Roza
Namey Lewis ........cccccccccees Roza
Lombard Loop Ranches........... Roza
Double M. Ranch.............+5: Roza
errr Roza
Helen L. Mahre ...........0-00: Roza
Norma A. Marquard ............. Roza—Sunnyside Valley
Richard L. Marquard............. Roza—Sunnyside Valley
Arnold Lee Martin .............-. Roza
Eileen M. Martin ...............- Roza
ee RTT Roza
Robert J. Martim..... ccc cecccees Roza
Elizabeth H. McCune ............ Kittitas
Stanley McCune ..........6..0005 Kittitas
Medina Land Co. ..............5: Roza
Framk R. Meyer .......cccccceces Wapato
ee ET Roza
A SE occ ccccccascscnes Roza

erie Roza

A-39

Petitioners Irrigation District

ES Kennewick
Joanne Mare Nashem ............ Roza
a heck ee sss sec 0a’ Kittitas
Joan Elizabeth Nelson ............ Kittitas
EE a Roza
Nickoloff Orchards, Inc. .......... Wapato
ESSE Sao ae Wapato
Ee ee Wapato
SS RE ao Wapato
SE ee eee Wapato
ee we vab ae cas asecas Wapato
EE Wapato
a Wapato
Northwest Building Co............ Roza
ES ere Roza
George M. Oldfield............... Roza
I Roza
Caroline Onstot......... vetiwwkes Kittitas
Frank G. Onstot .......... ME es ath Kittitas
Pacific Coast Nursery............. a
Patnode Hops, Inc................ Grandview
Judith Pierce

(aka Judith Finkbeiner)......... Kittitas
Co Kittitas
a Roza
Plensamt Acres, lac. .............. Roza
a Cacccccaneccscevce Roza and Sunnyside
ee Roza and Sunnyside
EE Roza and Sunnyside
es ok a 66 « bone 4 ais Roza and Sunnyside
_- + aa Kittitas
CO ee ee Kittitas
Frances J. Puterbaugh ............ Sunnyside
Martin R. Puterbaugh ............ Sunnyside
RO tr CN rcs Wapato
Lucille H. Rasmussen ............ Wapato
Robert A. Rasmussen............. Wapato
Rattlesnake Ranch ............... Roza
Roskamp Farming Co., Inc. ....... Roza and Sunnyside Valley
Ree I as oc cicnicnccece Kittitas
Ee Kittitas
IID cic cnccctececcces Roza

A-40

Petitioners Irrigation District
Helen Gene Sabin ..........0005. Kittitas
Pe EN che vo ceNeaa awe Kittitas
ge ee rr Wapato
I oo iver anbeneececas Wapato
ER TED vig nccn cc evadawaste Kittitas
Robert D. Schnebly .............. Kittitas
Harold S. Schrotenboer........... Roza
Thelma S. Schrotenboer .......... Roza
ee eer ree Sunnyside Valley
eS SS rere rrr rrr Sunnyside Valley
Perr reer es Roza and Sunnyside Valley
C&D A ee eee Roza and Sunnyside Valley
I kok Sean nieuesees ches —-
Myra Babee oi ci cere eres —-
Donna Scymanski .............0.. Roza
Peter Scymanski, Jr............... Roza
PPT TET Tee eee _
pS PPP eee ee _
pS A Pe Ty eee Kittitas
oS ere rere Kittitas
I a ssc cece n wes cnsas Kennewick
(lf er ere Kennewick
Charlene Seymour ............... Roza
Nicholas J. Seymour ............. Roza
Willem V. SROMON...... 06 ccecceas Kittitas
Sherandre Farms, Ltd......... toes) ORS
I ED bias odaveewan sce na Roza and Sunnyside Valley
. 0 eee Roza and Sunnyside Valley
Bee PUT odie cto eansdesones Wapato
ee rer ee Roza
BITS TI 5 o.v os ccceccccceuss Roza
Norval W.-Sparks i535 ccvrevcce ce. Roza
PU ID ocr sc cc dccnanncsans Kittitas
er OID on. 5 cc cdiccevccns Kittitas
Seopples P, Ime. ... nc ccccc ences Sunnyside
8k SAAC re irae rs Roza
es oes pis. ay ee aoe Re Roza
OS err Roza
EPPS eT eT Cee ye Roza
ee eee Roza
PE IO os sven cdices cee Roza
Ee rere re Roza

TOR Ben NIN oa nn cn kcdascccs Roza

—————— ee ee Oe

Petitioners Irrigation District

ee eee Roza and Sunnyside Valley

3. Aare ee Roza

I i Ch RG Ceaabcaaesadas Roza |
PS OS cee ice creas Roza and Sunnyside Valley |
Barbara M. Trabant .............. Roza

I acces daeeveees Roza

Triple R. Ranches, Inc. ........... Roza

ES Oe Roza

Ds cane bsb.e vadswaaan Roza

Tudor Hills Vineyards, Inc......... Roza

TR ics ccacccsssce Wapato

Umemoto Farms, Inc. ............ Wapato

Rodney N. Van Allen ............ Kittitas
(. A eee Kittitas

Van Klinken Bros., Inc............ Roza

Clifford R. VanBelle.............. Roza and Sunnyside

Dale Allen VanBelle.............. Roza

SP II ss cece cccsacame Roza |
og” rrr rere Roza and Sunnyside |
Bre Roza |
re Roza and Sunnyside Valley |
UT EEE wa ncaccccaccaces Roza and Sunnyside Valley
Co reer Roza and Sunnyside Valley

Margery Wagner. .............00. Roza

WOME I occ ccc ccccese Roza

DI ook os ca ude nance c Roza

fe Cen = ge Roza

ge er ee Kittitas

Mary Ellen Watson .............. Kittitas

Florence Ann Weaver ............ Kittitas

PU hong ons Suavnwees Kittitas

POE Is Sic ec cc cciscccsan Kittitas

MiG. Wes... Kittitas

SMT DE. WMO occ cccccceen Roza

POE SU rs vc sawn acaccacad Roza

PUI vs Gennes cctsacss Roza

oe ee Roza

Wee Wet, EAE. oo cece eene Roza

ca a hs acigdecss dani 8a Roza

esac ccakas sedans Sunhaven Farms
A Kittitas

eT eee Roza

NE Ba PIR s vevcdancsuusees Roza

Petitioners Irrigation District
VOURRS. TUN Wok dics nicdu Sanus Roza
ST er Sunnyside Valley and Snipes
Mountain
L. & S. Woodworth, Inc. Sunnyside Valley and Snipes
dba Woodworth Bros............ Mountain
3 SK Pe Roza
2 8a, 4 eee! Roza, Sunnyside Valley and

North Outlook

Elbert B. Schinmann, et al., v. United States, United States
Claims Court No. 226-80C.

Petitioners Irrigation District
Elbert B. Schinmann ........ .... Roza and Sunnyside Valley
Teddie Marie Schinmann ......... Roza and Sunnyside Valley

R.E. Redman & Sons, Inc. v. United States, United States
Claims Court No. 36-81C.
Petitioners Irrigation District

R.E. Redman & Sons, Inc. ........ Wapato

‘ea 0A sa AA AE et i tae

A-43

Appendix E

United States Department of the Interior
(Letterhead)

Bureau of Reclamation
Pacific Northwest Region
Federal Building & U.S. Courthouse
Box 043-550 West Fort Street
Boise, Idaho 83724

In reply refer to: 700

Memorandum

To: Commissioner
From: Regional Director, Boise, Idaho
Subject: Yakima Project Water Supply Projections

Enclosed is our report on the review of the water supply
projections for the Yakima Project. As a result of the review, we
are implementing the following actions to improve our forecasting
procedure for the Yakima Project:

1. Procedures for computing the total water supply available
in the Yakima River basin and for distributing this suppiy to
water rights recognized in the 1945 Consent Decree will be
defined in operating instructions for the project. A process will be
developed to resolve any differences in forecasts and computed
water supplies which occur between Yakima Project Office and
Regional Office hydrologists prior to publication uf the data.

2. Review of forecasting procedures in the Yakima River
basin with the National Weather Service, the Soil Conservation
Service and the Washington State Department of Ecology.

3. The effort to develop a computer model for use in operat-
ing the Yakima Project, now underway as a study in the Yakima
Valley Water Management Study, will be expedited.

4. Consideration will be given to providing to water users
variable TWSA estimates which project both “conservative” and
“normal” forecasts.

A-44

We have just reviewed the current water supply situation of the
Yakima Project using the most recent runoff and water use data
available. The current estimate of total water supply fog the period
of July through October is 1,260,000 acre-feet. This estimate
assumes that (1) natural runoff will be equal to the smallest . uly,
August, September, and October of record; (2) return flows will
amount to about 50,000 acre-feet per month, flows realized in
July through October, 1963, the minimum which occured for the
period of 1960-75; (3) an estimated storage content on July 1 of .
900,000 acre-feet, and (4) estimated spills past Parker of 20,000
acre-feet.

The current estimate represents an increase in supply from
previous estimates. Some of the increase is attributed to addi-
tional natural flows over that previously forecasted and some to
the fact that the diversions by the water users during the preced-
ing months have been less than their decreed rights. It appears
that the 1,260,000 acre-feet estimate will be adequate to fully
meet average historical July through October diversions.

Converting our most recent forecast to compare with our mid-
May estimate of April through October proratable water supply of
about 50 percent results now in a 70 percent April through
October proratable water supply.

Rop VISSIA

ENCLOSURE (2)

cc: PROJECT SUPERINTENDENT, YAKIMA WASHINGTON
W/ENCLOSURES (2)

3

A-45
REVIEW OF 1977

WATER SUPPLY ESTIMATES
YAKIMA RIVER BASIN

YAKIMA PROJECT, WASHINGTON

U.S. BUREAU OF RECLAMATION
PACIFIC NORTHWEST REGION
JUNE 1977

NOLONINSTM

LOALOUd VNIMVA
‘ MOuitmerotw 70 Heine
4 > PT Fe Me Stecer © WED
BOIL! Dee 49 ENDL wVEDO
SBivas O2ann

NONLUNW Tax

BEST AVAILABLE COPY

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A-47

INTRODUCTION

Extremely dry conditions occurred in the Yakima River basin
from October 1976 through January 1977. The outlook was for
the drought condition to continue during the remaining months
preceding the 1977 irrigation season when precipitation normally
occurs. Because of this, water users in the Yakima River basin,
local and State agencies, and Federal agencies such as the Bureau
of Reclamation became concerned about the availability of an
adequate irrigation water supply to maintain agricultural produc-
tion in the basin.

In February 1977, the Bureau of Reclamation provided an
estimate of the total water supply available (TWSA). The Febru-
ary estimate of TWSA for the period April | through September
30, 1977, was 1,220,000 acre-feet. This volume is about 50
percent of the water required to satisfy all entitlements under the
1945 Consent Decree which is used to allocate supply among
parties recognized in the decree. Allocation of the 1,220,000 acre-
feet pursuant to the decree resulted in a projection that holders of
proratable, or junior, water rights would witness severe shortages.
The Kittitas Reclamation District and Roza Irrigation District,
whose entire water supplies are proratable, would receive about 7
percent of their water entitlement.

The extreme deficiency in the Western United States water
supply, including the Yakima River basin, resulted in the enact-
ment of the Emergency Drought Act of April 7, 1977, an act to
provide financial as well as technical assistance to relieve the
impacts of the drought.

In April, Reclamation revised its TWSA estimate from
1,220,000 acre-feet to 1,390,000 acre-feet to reflect the favorable
precipitation conditions that occurred in March. This resulted in a
slightly improved water supply outlook for the basin and gave the
proratable rights a 13 percent supply.

In May, there was evidence that irrigation diversions were
being met with less demand on natural flow and storage than had
been anticipated. This necessitated a review of the initial Febru-
ary TWSA estimate. As defined in the 1945 Consent Decree, the
major components included in the computation of TWSA are:

A-48

(1) forecasted natural runoff, (2) available reservoir storage, and
(3) other scurces including diverted water which returns to
streams for reuse—return flows. The review showed that the
return flow component had not been adequately accounted for,
and that this resulted in underestimating the available water
supply by about 350,000 acre-feet. Addition of the 350,000 acre-
feet to the April estimate resulted in a revised May TWSA of
1,740,000 acre-feet for a comparable April through September
period. This change impacted primarily upon the Kittitas Recla-
mation District and the Roza Irrigation District because the
decree’s priority water rights had been satisfied and all newly
projected water accrued to districts holding junior water rights.
The result was an estimated water supply to these districts of
about 50 percent of their entitlement, rather than the February
estimate of 7 percent.

The purpose of this report is to discuss the procedure used in
estimating the TWSA, to summarize a chronology of events froin
October to May, and to identify reasons for the change in the
TWSA estimate.

SETTING

The Yakima River basin, located in south-central Washington,
covers an area of about 6,000 square miles or about 4,000,000
acres. The basin centers around the city of Yakima and includes
most of Yakima, Kittitas, and Benton Counties. Topography is
characterized by a series of long, rather hilly ridges extending
eastward from the Cascades and encircling flat valley areas.
Elevations in the basin range from over 12,000 feet in the
Cascades to about 350 feet at the confluence of the Yakima and
Columbia Rivers.

The Yakima River and its tributaries drain the area. The
Yakima River heads near the crest of the Cascade Range, above
Keechelus Lake at elevation 2,517 and flows for 175 miles
generally south-eastward to its confluence with the Columbia
River near Richland. Major tributaries include the Kachess, Cle
Elum, and Teanaway Rivers in the north and the Naches River,
which has two major tributaries—Bumping and Tieton Rivers.

ee ee eas

CO

A-49

Ahtanum, Toppenish, and Satus Creeks join the river in the lower
portion of the basin. Natural runoff for the basin above Parker
averaged about 3.5 million acre-feet annually over the period
1940-1976. Natural runoff usually peaks in May and June and
drops to its lowest point in August.

About 500,000 acres are now irrigated in the basin, of which
approximately 460,000 acres receive service from federally con-
structed facilities. The major irrigation areas and their facilities
are shown in table 1.

In 1975, the total gross crop value of crops produced on
irrigated land on the Yakima Project was $233 million; an average
of $586 per irrigated acre. Table 2 shows that of the 388,952 acres
irrigated in 1975, perennial crops (hops, mint, asparagus, nursery
stock, seeds, and fruits) accounted for 131,200 acres (34 per-
cent). Perennial crops, if lost, can take from 2 to 8 years to
reestablish, depending on whether they are special seed crops or
fruits.

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A-51

The water supply for the Yakima Project comes from natural
flow, storage, and return flows. The six Federal reservoirs in the
basin which help regulate this supply have a total storage capacity
of 1,070,000 acre-feet—Bumping Lake (33,700 acre-feet),
Keechelus Lake (157,800 acre-feet), Kachess Lake (239,000
acre-feet), Cle Elum Lake (436,900 acre-feet), Rimrock Lake
(198,000 acre-feet), and Clear Lake (5,300 acre-feet). Other
principal features include several diversion dams, two
hydroelectric generating plants, canals, laterals, and pumping
plants.

The Yakima Project is primarily an irrigation project with
hydroelectric power generation an associated function. Project
reservoirs do provide incidental flood control and recreation
benefits, and project operation does provide some flows for fish.

a a i eer eT
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LEGEND

SCHEMATIC

A-61

PART I

The computation of TWSA for the Yakima River basin con-
sists of three major ingredients—(1) a forecusted runoff of the
natural flows which would be realized at the Parker gage’, (2) the
water accumulated in storage, and (3) water that has been
diverted for use and returns to the streams for reuse (return
flows). It is necessary that the components be calculated to cover
compatible time frames; e.g., February through July.

The forecasted runoff of natural flows is computed as follows:

1. The historical snowpack, precipitation, and antecedent
runoff’ data are correlated with historical natural flow data
observed at the Parker gage over a 37 year period of record.
(1940-1976) to provide, for the current period of October
through July, a volume forecast of natural runoff which will

pass the Parker gage.

2. In order that the forecast of natural runoff at the Parker
gage might approximate predevelopment conditions, several
adjustments, based upon historical data over the 37-year
period, are made in its computation. An adjustment is made
to account for natural runoff, which entered the system but
was retained in storage (plus) o: flows in the river that were
attributed to releases of stored runoff (minus); an adjust-
ment is made to recognize the historical diversions of the five
major water users (Kittitas Reclamation District, Roza Irri-
gation District, Sunnyside Division, Wapato Indian Project,
and the Yakima-Tieton Irrigation District) and the numer-
ous small canals upstream of the Parker gage which would
have otherwise, prior to irrigation development, been ob-
served at the gage (plus); and an adjustment is made to

' Parker is the point of regulation on the Yakima River for flood
control and the lowest point on the river which requires storage or
natural flow water to meet irrigation diversions during summer opera-
tions. Diversions below Parker are satisfied by return flows; therefore,
any water passing the Parker gage is essentially lost to the system.

? Antecedent runoff is the late summer runoff of the previous year
which serves as an indicator for the current year base flow.

A-62

account for flows from irrigation diversions which have
historically returned to the stream (minus).

Once the forecast of natural runoff is computed, the quantity of
water available in storage is added as a second component of
TWSA.

The third component in the TWSA computation is the volume
of return flows that can, on the basis of the water supply
anticipated to be available for diversions during the current
irrigation season, be expected to enter the Yakima River system
above Parker. Return flow can be defined as that portion of
diverted water that will return to the stream and be available to
downstream users.

The forecast of natural runoff, water available in storage, and
return flows are combined to yield the total water supply availa-
ble. A simplified example would be:

EE 100 acre-feet
Reservoir storage available .................... 100 acre-feet
ne conn ncdnedassnwned 100 acre-feet
Total water supply available (TWSA) .... 300 acre-feet

Part Il

In the past, the primary purpose of the forecast of natural
runoff, the first ingredient in computing TWSA, has been to
formulate reservoir operations directed at (1) filling reservoirs for
irrigation and (2) providing adequate reserve of storage space for
flood control without jeopardizing irrigation supplies. Due to
normal or above normal water conditions usually with considera-
ble carryover in storage, the emphasis has been on the routing of
the forecasted runoff of natural flows to prevent flooding rather
than on the computation of TWSA and its distribution under the
Consent Decree. Therefore, the procedure discribed (sic) in Part
| has, in the past, been modified in the following respects.

1. In computing the forecasted runoff of the natural flows,
the diversions of the small canals upstream of the Parker
gage and the return flows have not been specifically identi-
fied. Historically, these diversions and return flows have been
approximately equal in volume and have had an offsetting

A-63

affect in the computation of the forecasted natural flow. The
adjustments which have been included, however, have been
sufficient to result in forecasted natural flow reasonably close
to predevelopment conditions for the purpose for which the
forecast has been used, the routing of natural runoff.

2. The concept has been that the third component of the
TWSA, return flows, was accounted for in the computation
of the forecasted natural flow runoff since they were consid-
ered an offsetting factor to the small canal diversions. There-
fore, in the past, this component has not been included as a
specific addition to the TWSA estimate.

In order that the water users would be aware of the anticipated
supplies that they would have available for use in 1977, the
TWSA was computed and distributed under the Consent Decree.
The February, March and April computation of TWSA followed
the procedure outlined in Part II. The fact that the return flows
are not included in the TWSA estimate using this procedure
results in an underestimate of the water supply when making a
distribution under the Consent Decree. Consequently, an errone-
ously lower water supply was projected for proratable water right
holders since these rights are only satisfied after the nonproratable
rights are fully met. In May, TWSA was computed by the
procedure outlined in Part I, which includes return flow as a
specific addition, and the supply available for distribution to the
proratable water rights increased by about 350,000 acre-feet from
the April estimate.

1977 TOTAL WATER SUPPLY AVAILABLE
ESTIMATE AND REVISIONS

This section presents a monthly chronology of conditions and
events related to the 1977 TWSA estimate through May 1977.
Tables 3 and 4 summarize monthly precipitation and runoff data
for the period October 1976 through May 1977 and contrast
precipitation and runoff actually experienced during this period
with normal levels. Table 5 presents runoff forecasts made at the
beginning of each nonth by the Bureau of Reclamation, Soil
Conservation Service, and National Weather Service.

A-64

This section also discusses Reclamation’s February TWSA
estimate, subsequent revisions to that forecast in April and May,
and factors related to those revisions. Table 6 summarizes these
estimates.

October 1976

Major canal diversions for the 1976 irrigation season had
terminated by October 20.

Precipitation levels in October were extremely low. Records
show that precipitation ranged from 28 percent of normal at the
Rimrock measuring station to a high of 50 percent at the
Keechelus station. Total precipitation measured at the five major
reservoirs averaged only 38 percent of normal.

Keechelus Dam was closed for gate replacement, and all inflow
was being stored. The gates at Bumping Lake were open and
inoperable because of damage resulting from a fire at the gate-
house on Labor Day. However, Bumping Lake closure was not a
concern at this time since the dam usually is not closed until later
in the water year. Cle Elum Dam was closed for inspection of
cylinder gates. Kachess and Tieton Dams were operating at a
controlled release of 40 cubic feet per second.

November 1976

November precipitation levels remained extremely low. Rim-
rock station recorded precipitation at 16 percent of normal.
Precipitation measured at Keechelus station was 48 percent of
normal. Precipitation at all reservoirs averaged 36 percent of
normal. October through March precipitation levels in the
Yakima basin bear heavily on calculation of the water supply
forecasts, and one-third of this time period had passed with
critically low recordings.

A-65

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Provided, however, that water solely from the natural flow of
the Yakima River will be delivered by the United States during
October, if desired by the District and found available by the
officer in charge of the administration of the water supply for the
Yakima project.

The United States or its successors in the operation of the said
Canal, in accordance with the contract of June 1, 1925, with the
Grandview Irrigation District and the Prosser Irrigation District,
shall deliver to the Prosser Irrigation District for use upon the
15.21 acres of land, to which reference is made in said contract,
2.75 acre-feet of water per acre; and the amount of water to be
delivered to the Grandview Irrigation District pursuant to its

ee ee ee

1 onctln” Seat

A-81

contract with the United States, dated August 4, 1916, shall be
reduced by the proportional amount applicable to the said 15.21
acres and the amount of water to be delivered by the United
States pursuant to its contract with the Prosser Irrigation District
dated December 1, 1917, shall be correspondingly increased.

The foregoing quantities of water for the Prosser Irrigation
District shall be increased 2,500 acre-feet upon the execution of a
contract for the acquisition of that quantity of water by the
District and the United States as provided in paragraph 6 of this
judgment. The increased quantity of water shall not, however, be
diverted into the Sunnyside Canal when to do so would augment
the schedule of diversions in excess of the safe carrying capacity
of the Canal.

The foregoing obligation of the United States to deliver
water is subject to the conditions and limitations set forth in said
contracts.

(c) SNIPES MOUNTAIN — IRRIGATION _ DIS-
TRICT.—The United States shall divert into the Sunnyside
Canal 9,247 acre-feet of water annually, which quantity of water
includes estimated losses in said Canal between the point of
diversion and the point of delivery, to supply the amounts of water
provided for by contracts between the United States and the
Snipes Mountain Irrigation District dated November 16, 1914,
and July 11, 1931. There shall be delivered by the United States
or its successor in the operation of the Sunnyside Canal a total of
5,265 acre-feet, pursuant to the contract dated November 16,
1914, between the United States and the Snipes Mountain
Irrigation District, at the following points on the Snipes Mountain
Canal: (a) at Mile 9.05, (b) at Mile 10.20, and (c) near Mile
6.42. The annual irrigation season shall be from April to Septem-
ber, inclusive; the maximum rate of flow at the said points of
delivery which the District may demand during any one month,
based on the following schedule, shall be 17.7 cubic feet per
second and the monthly supply of water shall not exceed the
following monthly schedule of deliveries:

A-82

Acre-feet

Total of

Month Contract
ROM aC EAE 685
Pere rer ees srr per ras? oo" 840
PS Sc Saka ee es hs 1050
LEO Ee Pee err e re yee 1055
Ie ois. as Ba ee 950
WE occ hi ciec sc dorceens _685
WOE a cc ch ebeas PART e ae 5265

Provided, however, that water solely from the natural flow of the
Yakima River will be delivered by the United States during
October, if desired by the District and found available by the
officer in charge of the administration of the water supply for the
Yakima project.

In addition to the water supply provided for in said contract of
November 16, 1914, the United States or its successors in the
operation of the Sunnyside Canal pursuant to a contract dated
July 11, 1931, with the District, shall deliver annually a total of
2674 acre-feet at the following points; (a) Mile 9.05 of the Snipes
Mountain Canal; (b) at Mile 1.15 of the West Branch of the
Snipes Mountain Canal; and (c) near Mile 6.42 of the Snipes
Mountain Canal. The annual irrigation season shall be from: April
1 to September 30, inclusive, and the mean monthly supply of
water to be furnished under said contract shall not be in excess of
the following schedule of percentages of the total annual
diversion:

Acre-feet
Per Total of
Month Cent Contract
Pa eee oy ewe Pee es 10 287.40
SEPP Ey ers Pe re ee 16 459.84
PEs gad cas CO as ees ea Se 19 546.06
A Pree Doe para ge maar drier a 21 603.54
ry ee ers oe ee 20 574.80
i AER e ee re, 14 402.36

pS emireys Ja ot 100 2,874.00

LSA LLIN Gc FOE HS Rew we ATO

A-83

The foregoing obligation of the United States to deliver water is
subject to the conditions and limitations set forth in said
contracts.

(d) GRANDVIEW IRRIGATION DISTRICT.—The
United States shall divert into the Sunnyside Canal 14,586 acre-
feet of water annually which quantity of water includes estimated
losses in said Canal between the point of diversion and the point
of delivery, to supply the amounts of water provided for in
contracts between the United States and Grandview Irrigation
District dated October 4, 1916, and February 21, 1933. The
United States or its successor in the operation of the Sunnyside
Canal shall deliver water pursuant to the said contracts at Mile
50.35 of the Sunnyside Canal and at Mile 2.87 of the Rocky Ford
branch canal of the said Sunnyside Canal in an amount not
exceeding the following monthly schedule:

Acre-feet

Month per acre
alae iar pe Rr pram pegee epe 36
ARS ee Sura ae 45
RN Rn Ss ee gs Cia 52
ta a5 os vers haeda dae 53
(SSNS Gare rn, re eer aor BX
RAST TET ETE eer erS _.36
rR ae RAE aa page 2.75

Provided, however, that water solely from the natural flow of the
Yakima River sha!! be delivered by the United States during
October, if desired by the District and found available by the
officer in charge of the administration of the water supply for the
Yakima project.

The annual irrigation season shall be from April to September,
inclusive, and the maximum rate of flow at the said points of
delivery which the District may demand during any one month,
based on the above schedule, shall be 34 c.f.s.

There shall be delivered by the United States or its successor in
the operation of the Sunnyside Canal in accordance with the
contract of June 1, 1925, with the Grandview Irrigation District
and the Prosser Irrigation District, to the Prosser Irrigation

A-84

District for use upon the 15.21 acres of land, to which reference is
made in said contract, 2.75 acre-feet of water per acre; and the
amount of water to be delivered to the Grandview Irrigation
District pursuant to its contract with the United States, dated
August 4, 1916, shall be reduced by the proportional amount
applicable to the said 15.21 acres and the amount of water to be
delivered by the United States pursuant to its contract with the
Prosser Irrigation District dated December 1, 1917, shall be
correspondingly increased.

The United States or its successor in the operation of the
Sunnyside Canal shall also deliver each year, in addition to the
water supply provided for in the foregoing contract of August 4,
1916, pursuant to its contract of February 21, 1933, with the
District, .1970 acre-feet of water at Mile 50.35 of the Sunnyside
Canal. The annual irrigation season for the delivery of water shall
be from April 1 to October 31, inclusive, and the mean monthly
supply of water to be furnished under said contract shall not
exceed the following schedule of percentages of the total annual
diversion:

Acre-feet

Per Total of

Month Cent Contract
AOE iss innisgae iene 9 184
Seerrrrr er res ry yr ri 26 501
DE fg is ikke 8 151
BO kk cecndcndanae see ne ae 9 186
ROE 5 i x cc io Va ee 9 186
DINE 663 CS er 18 362
I oo cae cacaccetna nee a _ 400
TO. fea ree 100 1,970

The foregoing quantities of water for the Grandview Irrigation
District shall be increased 3,000 acre-feet upon the execution of a
contract for the acquisition of that quantity of water by the
District and the United States as provided in paragraph 6 of this
judgment. The increased quantity of water shall not, however, be
diverted into the Sunnyside Canal when to do so would augment
the schedule of diversions in excess of the safe carrying capacity
of the Canal.

eee

A-85

The foregoing obligation of the United States to deliver water is
subject to the conditions and limitations set forth in said contract.

(e) ZILLAH IRRIGATION DISTRICT.—The United
States shall divert into the Sunnyside Canal 362 acre-feet of
water annually, which quantity of water includes estimated losses
from the point of diversion to the point of delivery, to supply the
amounts of water provided for in a contract dated September 29,
1922, as amended by the contract of June 22, 1931, between the
United States and the Zillah Irrigation District. The United
States or its successor in the operation of the Sunnyside Canal
shall deliver water pursuant to the said contracts at turnouts
numbered 15.47 and 15.62 and 16.82 on the Sunnyside Canal and
the mean monthly supply of water shall not exceed the following
schedule of percentages of the total diversion:

Month Per Cent
ae sala eck 4's 'da 9
ac Wx Geb d nak 0-046» x5 15
AER ea 19
Nas Siwicis + ile
SERIA A ap etyth aete A tx > led
EG bt knb.cd he Soe Kas oe ae | 5 il
EN cats sas Wane ck oe heed

Provided, however, that water solely from the natural flow of the
Yakima River shall be delivered by the United States during
October, if desired by the District and found available by the
officer in charge of the administration of the water supply for the
Yakima project.

The foregoing quantity of water for the Granger Irrigation
District shall be increased 1,800 acre-feet upon the execution of a
contract for the acquisition of that quantity of water by the

n ellie

A-87

District and the United States as provided in paragraph 6 of this
judgment. The increased quantity of water shall not, however, be
diverted into the Sunnyside Canal when to do so would augment
the schedule of diversions in excess of the safe carrying capacity
of the canal.

The foregoing obligation of the United States to deliver water is
subject to the conditions and limitations set forth in said contract.

(g) OUTLOOK IRRIGATION DISTRICT.—The United
States shall divert into the Sunnyside Canal 17,855 acre-feet of
water annually, which quantity of water includes estimated losses
from the point of diversion to the point of delivery, to supply the
amount of water provided for in the contract between the United
States and Outlook Irrigation District dated November 23, 1914,
as amended by the contracts of August 1, 1916, and July 1, 1919,
and the contract dated December 20, 1932. The United States or
its successor in the operation of the Sunnyside Canal pursuant to
the said contract of November 23, 1914, as amended, shall deliver
14,530 acre-feet at Mile 30.25 on the Sunnyside Canal. The
annual irrigation season for the delivery of water shall be from
April to September, inclusive, and the maximum rate of flow
which the District may demand during any one month, based on
the following schedule, shall not exceed 46 c.f.s. and the monthly
supply of water shall not exceed the following schedule of
deliveries:

Acre-feet

Total of

Month Contract
cs va Seka caae se swonawn 1,890
PN se ticgieiesterdeen +e

Ses as ae

TN | SOP MET ET OTICRET OTS EE 2%
ETT OTTRE CTL Ee 17%
8 SOE PTT UTTER Le 21%
IES ab Win dd0, 00004 1 b0ecen ee eeee 21%
| TE Te ieee 20%
OUT ones win ant 0 Cue ks ees 13%
NG sis ocatvnsvasew ev euehs vhs 6%

The foregoing obligation of the United States to deliver water is
subject to the conditions and limitations set forth in said
contracts.

The Kittitas Reclamation District has released, pursuant to the
foregoing contract, as amended, to the United States 20,000 acre-
feet of water in the months of April, May and June, and 10,000
acre-feet of water during the months of July, August, September
and October from its water supply provided for in said contract, as
amended, such water to be sold by the United States to the
following irrigation districts in the amounts set opposite the
respective districts:

Yakima-Ticion Irrigation District..... 18,000 acre-feet
Granger Irrigation District........... 1,800 acre-feet
Outlook Irrigation District........... 4,500 acre-feet
Grandview Irrigation District ........ 3,000 acre-feet
Prosser Irrigation District ........... 2,500 acre-feet
Zillah Irrigation District ............ 200 acre-feet

7. ROZA DIVISION (Roza Irrigation District).—The
United States shall deliver to the District, pursuant to a contract
dated July 8, 1921, between the United States and the Yakima-
Benton Irrigation District (now Roza Irrigation District), as
amended by the contract of April 15, 1935, at a point opposite the
headworks of the District located in Section twenty-eight (28),
Township fifteen (15) North, Range nineteen (19) East, W.M.
375,000 acre-feet of water measured at or near said diversion
works for use upon lands within the boundaries of the District.
The annual irrigation season for the delivery of water shall be
from April | to October 31, inclusive; and the mean monthly
supply of water shall not exceed the following schedule of per-
centages of the total annual diversion as hereinafter set forth.

ES bcvvnrd du caves usueeanes 10%
IE 5 55's bbs 4 0 6p 6x0sd ehamwnan 15%
i PPP ree oe 19%
| PTET C Teer eer Tr 19%
EE as dS seducenedssskbeueun 19%
"PPP PET CCRC err er 12%
IE
IN CASE OF DEFAULT

28. (a) No water from the project water supply shall be
delivered to or for the District if the District is in arrears in the
advance payment of operation and maintenance charges owed to
the United States, if any, or more than twelve (12) months in
arrears in the payment of construction charge obligation instal-
ments, or more than twelve (12) months in arrears in the
payment of any other amounts owed to the United States under
this contract. The District shall refuse to deliver water to lands or
parties who are in arrears in the advance payment of operation
and maintenance charges due from such lands or parties to the
United States or to the District, or to lands or parties who are in
arrears for more than twelve (12) months in the payment of
amounts due from such lands or parties to the United States or to
the District for construction charge obligations or for any other
amounts owed by the District to the United States under this
contract. The provisions of this article are not exclusive and shall
not in any manner prevent the United States from exercising any
other remedy given by this contract or by law to enforce the
collection of any payments due under the terms of this contract.

(b) The United States may enter on the transferred works or
any part thereof in possession of the District to shut off water
being delivered in violation of the provisions of this article or
article 31. In the event the United States enters onto the trans-
ferred works or any part thereof in possession of the District,
neither the United States nor its officers or employees shall be
liable for any damages resulting directly or indirectly from the
refusal to deliver water which had been heretofore delivered in
violation of the provisions of this article or of article 31.

PENALTY FOR DELINQUENCY IN PAYMENT

29. Every instalment or charge required to be paid to the
United States under this contract and which remains unpaid after

A-138

it shall become due and payable shall be subject to and the
District shall pay a penalty at the rate of one-half per cent per
month from the date of delinquency.

ALL BENEFITS CONDITIONED UPON PAYMENT

30. (a) Should the District fail to levy the assessments, tolls,
or other charges against any lands in the District required to be
levied to meet the District’s obligation to the United States under
this contract, or, hav _. levied, should the District be prevented
from collecting such assessments, tolls, or other charges by any
judicial proceedings, or otherwise fail to collect them, such lands
shall not be entitled to receive water from the project supply, and
the District, except as otherwise ordered by a court of competent
jurisdiction, shall not deliver water to such lands from the project
water supply unless and until arrangements for its delivery satis-
factory to the Secretary have been made.

(b) As to any such lands the District is hereby authorized, as a
fiscal agent of the United States, to collect whatever charges may
be required under the delivery arrangements made as provided in
this article. Payment shall be required as a condition precedent to
the delivery of water. Collections so made by the District shall be
paid promptly to the United States in the manner directed by the
Secretary.

(c) No action taken by the Secretary under the provisions of
this article shall in any manner relieve the District of the obliga-
tions assumed by it under this contract.

LANDS FOR WHICH WATER IS FURNISHED;
LIMITATIONS ON AREA

31. (a) The water delivered under the terms of this contract
shall be used solely for distribution by the District to water users
for irrigation and domestic uses incidental thereto.

(b) The District (and the United States while it is operating
and maintaining the transferred works) will operate the irrigation
system to the end of making available to each irrigable acre of

A-139

land in the District, during each irrigation season, that quantity of
water to which it is entitled.

(c) Pursuant to the provisions of the Federal Reclamation
Laws, water made available hereunder shall not be delivered to
more than one hundred sixty (160) irrigable acres of land in the
project in the ownership of any one person or other entity, except
that

[Text truncated at 120,000 characters. The full text is on the page linked above.]

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385018_0151%3A2. Public record. Not legal advice.
