STATE EX REL INTAKE WATER CO v B

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No. 81-209 IN THE SUPREMF: COURT OF THE STATE OF MONTANA 1982 STATE ex rel., INTAKE WATER CO., a Delaware Corporation, Plaintiff and Relator and Appellant, vs. BOARD OF NATURAL RESOURCES & CONSERVATION OF THE STATE OF MONTANA et al., Defendants Respondents and Respondents, and UTAH INTERNATIONAL, INCORPORATED, a Delaware corporation, Defendant, Respondent and Respondent. Appeal from: District Court of the First Judicial District, In and for the County of Lewis and Clark Honorable Jack Shanstrom, Judge presiding. Counsel of Record: For Appellant: Henry Loble argued and Peter Pauly, argued, Helena, Montana Loble and Pauly,Helena, Montana For Respondents: Donald MacIntyre, Dept. of Natural Resources, argued, Helena, Montana For Respondent: Poore, Roth, Robinson, Butte, Montana Urban L. Roth argued, Butte, Montana Submitted: February 26, 1982 ~ecided: ~ i l e dAPR : 15 1982 ~ p p5 1 M r . C h i e f J u s t i c e F r a n k I . H a s w e l l d e l i v e r e d t h e O p i n i o n of t h e Court. R e l a t o r I n t a k e Water Company f i l e d a p e t i t i o n f o r a w r i t o f m a n d a t e t o compel t h e Board of N a t u r a l R e s o u r c e s and C o n s e r v a t i o n and t h e D e p a r t m e n t of N a t u r a l R e s o u r c e s and C o n s e r v a t i o n t o a s s i g n a p r i o r i t y d a t e o f J a n u a r y 1 4 , 1 9 7 5 , to t h e water r i g h t s a p p l i c a t i o n o f d e f e n d a n t U t a h I n t e r n a t i o n a l , Inc. The D i s t r i c t C o u r t d i s m i s s e d I n t a k e ' s p e t i t i o n . We affirm. On November 20, 1 9 7 3 , U t a h f i l e d i t s a p p l i c a t i o n i n Wyoming, o n Wyoming f o r m s , t o a p p r o p r i a t e 1 0 6 , 7 3 0 a c r e f e e t from t h e Powder R i v e r , o n e o f t h e r i v e r s s u b j e c t t o t h e Y e l l o w s t o n e R i v e r Compact, s e c t i o n 85-20-101 e t seq., MCA. The water was to be d i v e r t e d i n Wyoming f o r u l t i m a t e u s e s i n Montana which i n c l u d e i n d u s t r i a l , i r r i g a t i o n , m u n i c i p a l and r e c r e a t i o n . P u r s u a n t t o A r t . V I I B o f t h e Compact, t h e Wyoming s t a t e e n g i n e e r s e n t d u p l i c a t e s o f U t a h ' s a p p l i c a t i o n to Montana which were r e c e i v e d by t h e D e p a r t m e n t on December 4 , 1 9 7 3 . Article VII B & C p r o v i d e as f o l l o w s : "B. Each claim h e r e a f t e r i n i t i a t e d f o r a n a p p r o p r i a t i o n o f water i n o n e s i g n a t o r y s t a t e f o r u s e i n a n o t h e r s i g n a t o r y s t a t e s h a l l be f i l e d i n t h e o f f i c e of t h e state e n g i n e e r of t h e signat o r y s t a t e i n w h i c h t h e w a t e r is t o be d i v e r t e d , and a d u p l i c a t e copy of t h e a p p l i c a t i o n or n o t i c e s h a l l be f i l e d i n t h e o f f i c e o f t h e s t a t e e n g i n e e r o f t h e s i g n a t o r y s t a t e i n which t h e water is t o be u s e d . A p p r o p r i a t i o n s may h e r e a f t e r be ad j u d i c a t e d i n t h e s t a t e i n w h i c h t h e water is d i v e r t e d , and w h e r e a p o r t i o n or a l l o f t h e l a n d s i r r i g a t e d are i n another s i g n a t o r y state, such adjudicat i o n s s h a l l be c o n f i r m e d i n t h a t s t a t e by t h e proper authority. Each a d j u d i c a t i o n is t o conf o r m w i t h t h e laws o f t h e s t a t e w h e r e t h e water i s d i v e r t e d and s h a l l be r e c o r d e d i n t h e c o u n t y a n d s t a t e w h e r e t h e water is u s e d . " "C. T h e s e d u p l i c a t e s c o n t a i n e d much of t h e same i n f o r m a t i o n t h a t is r e q u i r e d on t h e Montana f o r m s . On March 1 5 , 1 9 7 4 , t h e D e p a r t m e n t n o t i f i e d U t a h t h a t i f i t f i l e d t h e i n f o r m a t i o n f o r t h e same p r o j e c t o n M o n t a n a ' s f o r m s , t h e p r i o r i t y d a t e o f November 20, 1 9 7 3 , would be r e t a i n e d . The D e p a r t m e n t n o t e d t h a t t h e f i l i n g would be p u r s u a n t to s e c t i o n s 85-2-301 and 85-2-302, MCA, t h e l a t t e r o f which p r o v i d e s i n p e r - tinent part: "The d e p a r t m e n t s h a l l r e t u r n a d e f e c t i v e a p p l i c a t i o n f o r c o r r e c t i o n or c o m p l e t i o n t o g e t h e r w i t h t h e r e a s o n s f o r r e t u r n i n g i t . An a p p l i c a t i o n d o e s n o t l o s e p r i o r i t y of f i l i n g because of d e f e c t s , i f t h e a p p l i c a t i o n is c o r r e c t e d , c o m p l e t e d , and r e f i l e d w i t h t h e d e p a r t m e n t w i t h i n 30 d a y s a f t e r i t s r e t u r n to t h e a p p l i c a n t o r w i t h i n a f u r t h e r t i m e a s t h e d e p a r t m e n t may a l l o w . - - a p p l i c a t i o n - -t c o r r e c t e d a n d If an is no c o m p l e t e d w i t h i n 30 d a y s o r w i t h i n a f u r t h e r time 1 8 months, - -a s t h e d e p a r ~ e a l i ? i w s , u p t h e p r i o r i --- h m i c a t i o n s h a l l be t y d a t e t h e d a t e o f r e f i l i n g t h e application withthe c o r r e c t i o n s w i t h t h e d e p a r t m e n t . An a p p l i c a t i o n n o t c o r r e c t e d w i t h i n 1 8 m o n t h s s h a l l be terminated." (Emphasis added.) to On A p r i l 4 , 1 9 7 4 , U t a h r e p l i e d t h a t t h e y i n t e n d e d to f i l e a p p l i c a t i o n s f o r b e n e f i c i a l water u s e p e r m i t s on t h e f o r m s p r e s c r i b e d b y Montana. On S e p t e m b e r 27, 1 9 7 4 , I n t a k e f i l e d a Montana a p p l i c a t i o n w i t h t h e D e p a r t m e n t and s i m u l t a n e o u s l y f i l e d a Wyoming a p p l i c a t i o n w i t h t h e Wyoming s t a t e e n g i n e e r . D u p l i c a t e s of each a p p l i - c a t i o n were f i l e d i n t h e o t h e r s t a t e a t t h e same t i m e . Intake p l a n s t o d i v e r t ( f o r i n d u s t r i a l , m u n i c i p a l , i r r i g a t i o n and o t h e r u s e s ) 5 6 4 , 4 0 0 acre f e e t from t h e Powder R i v e r i n Montana by a dam a n d r e s u l t i n g r e s e r v o i r which w i l l e x t e n d from Montana i n t o Wyoming. On November 1 3 , 1 9 7 4 , t h e D e p a r t m e n t i n f o r m e d U t a h t h a t t h e D e p a r t m e n t had n o t y e t r e c e i v e d t h e a p p l i c a t i o n s f o r p e r m i t s t o a p p r o p r i a t e t h e water on t h e Montana f o r m s . On J a n u a r y 1 4 , 1 9 7 5 , U t a h f i l e d t h e a p p r o p r i a t e f o r m s and p a i d t h e f i l i n g fee. The D e p a r t m e n t a s s i g n e d U t a h t h e Wyoming p r i o r i t y d a t e o f November 2 0 , 1 9 7 3 . I n t a k e made r e p e a t e d demands upon t h e D e p a r t m e n t t o c h a n g e t h e p r i o r i t y d a t e t h a t had b e e n a s s i g n e d to t h e a p p l i c a t i o n s f i l e d by Utah, contending t h a t t h e p r i o r i t y d a t e s h o u l d h a v e b e e n t h e d a t e t h a t t h e c o r r e c t e d d o c u m e n t s were f i l e d w i t h t h e Department, J a n u a r y 1 4 , 1975. The D e p a r t m e n t r e f u s e d to do so. On March 6 , 1 9 7 5 , I n t a k e f i l e d a n a c t i o n w i t h t h e D i s t r i c t Court of ~ e w i s and C l a r k County s e e k i n g a w r i t of m a n d a t e to comp e l t h e Board and t h e D e p a r t m e n t t o a s s i g n a p r i o r i t y d a t e o f J a n u a r y 1 4 , 1 9 7 5 , to U t a h ' s a p p l i c a t i o n . On t h e same d a y t h e D i s t r i c t C o u r t i s s u e d an a l t e r n a t i v e w r i t of mandate r e q u i r i n g t h e Board and t h e D e p a r t m e n t to show c a u s e why t h e y had n o t assigned the requested p r i o r i t y d a t e . On A u g u s t 21, 1 9 7 5 , p l a i n t i f f f i l e d a n amended a p p l i c a t i o n f o r w r i t o f m a n d a t e and d e f e n d a n t s f i l e d a m o t i o n to q u a s h and dismiss the action. About O c t o b e r 1 4 , 1 9 7 5 ( a n d s t i l l w i t h i n t h e t i m e a l l o w e d b y t h e S t a t e D i s t r i c t C o u r t f o r t h e p a r t i e s to f i l e b r i e f s i n r e s p o n s e t o t h e a b o v e m o t i o n s and t o a n s w e r i n t e r r o g a t o r i e s ) , Utah f i l e d a d e c l a r a t o r y judgment a c t i o n a g a i n s t I n t a k e i n F e d e r a l D i s t r i c t C o u r t i n B i l l i n g s and a s k e d t h a t c o u r t t o a d j u d i c a t e t h e r i g h t s of both p a r t i e s i n t h e i r a t t e m p t s t o a p p r o p r i a t e t h e Powder R i v e r waters, U t a h I n t e r n a t ' 1 Inc. v. I n t a k e Water Co. ( 1 9 7 6 ) , 4 8 4 F.Supp. 36. On December 1 5 , 1 9 7 5 , t h e S t a t e D i s t r i c t C o u r t s t a y e d a l l proc e e d i n g s i n t h a t c o u r t pending a r u l i n g of t h e Federal District Court. The F e d e r a l D i s t r i c t C o u r t d e c l i n e d j u r i s d i c t i o n b u t c o n s t r u e d t h e Y e l l o w s t o n e R i v e r Compact to r e q u i r e t h e a p p l i c a t i o n o f Wyoming l a w and s t a t e d t h a t Wyoming c o u r t s d i d n o t h a v e s o l e j u r i s d i c t i o n , 484 F.Supp. a t 45. On J a n u a r y 8 , 1 9 8 0 , t h e S t a t e D i s t r i c t C o u r t d i s s o l v e d i t s s t a y and a l l o w e d f u r t h e r b r i e f s and p r e h e a r i n g c o n f e r e n c e s . On F e b r u a r y 25, 1 9 8 1 , a f t e r h e a r i n g , t h e D i s t r i c t C o u r t g r a n t e d d e f e n d a n t s ' m o t i o n s t o q u a s h and d i s m i s s t h e amended a p p l i c a t i o n i n a 20-page o r d e r i n which t h e D i s t r i c t C o u r t found no c l e a r l e g a l d u t y u n d e r t h e Y e l l o w s t o n e R i v e r Compact or Montana water l a w s r e q u i r i n g t h e Department t o a s s i g n t h e l a t e r p r i o r i t y d a t e r e q u e s t e d by I n t a k e . On March 1 6 , 1 9 8 1 , t h e ~ i s t r i c t o u r t C e n t e r e d j u d g m e n t d i s m i s s i n g w i t h p r e j u d i c e a n y f u r t h e r mandamus p r o c e e d i n g s b y I n t a k e b u t w i t h o u t p r e j u d i c e t o a n y o t h e r remedy I n t a k e might have. Intake appeals. The i s s u e on a p p e a l c a n be s t a t e d as f o l l o w s : Should a w r i t o f mandamus i s s u e t o r e q u i r e t h e D e p a r t m e n t to a s s i g n a p r i o r i t y d a t e o f J a n u a r y 1 4 , 1 9 7 5 , t o U t a h ' s water r i g h t s a p p l i c a t i o n ? A l l p a r t i e s a g r e e t h a t a w r i t o f m a n d a t e c a n b e used to compel t h e performance of an act which t h e l a w r e q u i r e s as a d u t y r e s u l t i n g from an o f f i c e . S e c t i o n 27-26-102, MCA, provides in pertinent part: "When a- - whom i s s u e d . (1) I t may be i s s u e d - - nd by b y t h e s u p r e m e c o u r t or t h e d i s t r i c t c o u r t o r any j u d g e m o f t h e d i s t r i c t c o u r t to a n y i n f e r i o r t r i b u n a l , c o r p o r a t i o n , b o a r d , o r p e r s o n to comp e l t h e p e r f o r m a n c e o f a n a c t which t h e l a w s p e c i a l l y e n j o i n s as a d u t y r e s u l t i n g from a n office . . ." I t is e q u a l l y clear t h a t t h e w r i t w i l l o n l y i s s u e where t h e r e h a s been a s h o w i n g t h a t a c l e a r l e g a l d u t y e x i s t s and t h e r e is no s p e e d y o r a d e q u a t e remedy i n t h e o r d i n a r y c o u r s e o f l a w . C a i n v. D e p a r t m e n t o f H e a l t h ( 1 9 7 8 ) , 1 7 7 Mont. 448, 582 P.2d 332. The b a s i c t h r u s t o f I n t a k e ' s a r g u m e n t is t h a t M o n t a n a ' s Water U s e A c t c o n t r o l s o v e r t h e Compact, m a n d a t i n g t h e a s s i g n - ment of t h e J a n u a r y 14, 1975, p r i o r i t y d a t e . Intake argues t h a t t h e r e are v a r i o u s r e a s o n s why a w r i t o f m a n d a t e l i e s i n t h e instant suit. F i r s t , I n t a k e c o n t e n d s t h a t a w r i t o f m a n d a t e l i e s to comp e l t h e p e r f o r m a n c e o f a n o n d i s c r e t i o n a r y a c t , McCarten v. S a n d e r s o n ( 1 9 4 1 ) , 111 Mont. 407, 1 0 9 P.2d 1 1 0 8 , and t h e a s s i g n - m e n t o f U t a h ' s p r i o r i t y d a t e is s u c h a n a c t . Intake further c i t e s s e c t i o n s o f M o n t a n a ' s Water U s e A c t and r e a s o n s t h a t t h e D e p a r t m e n t h a s no d i s c r e t i o n t o a s s i g n a n e a r l i e r d a t e t h a n t h e d a t e U t a h ' s a p p l i c a t i o n s were r e c e i v e d o n t h e Montana f o r m s . These s e c t i o n s provide i n p e r t i n e n t p a r t : "85-2-401. Priority ... " ( 2 ) P r i o r i t y o f a p p r o p r i a t i o n made u n d e r t h i s c h a p t e r d a t e s from t h e f i l i n g o f a n a p p l i c a t i o n f o r a permit with the department ... "85-2-302. Application f o r permit. E x c e p t as o t h e r w i s e p r o v i d e d i n (1) and ( 2 ) o f 85-2-306, a p e r s o n may n o t a p p r o p r i a t e water o r commence c o n s t r u c t i o n o f d i v e r s i o n , impoundment, w i t h d r a w a l , o r d i s t r i b u t i o n works t h e r e f o r e x c e p t by a p p l y i n g f o r and r e c e i v i n g a p e r m i t be from t h e dewartment. The a w l i c a t i o n s h a l l made o n a f b r m p r e s c r i b e d - -e d e p a r t m e n t . " b;* t h -( ~ m p h a s i added.) s S e c o n d , I n t a k e a r g u e s t h a t a w r i t o f m a n d a t e is a p r o p e r r e m e d y t o compel t h e u n d o i n g o f a t h i n g w r o n g f u l l y o r i m p r o p e r l y d o n e t h a t d e n i e s a p e r s o n t h e r i g h t s to which he is e n t i t l e d , c i t i n g S t a t e e x r e l . Mallott v. C a s c a d e C o . 22 P.2d 8 1 1 . ( 1 9 3 3 ) , 94 Mont. 3 9 4 , O t h e r r e a s o n s g i v e n by I n t a k e f o r t h e i s s u a n c e of a w r i t of mandate i n c l u d e : i f an agency f o l l o w s a fundamentally wrong r u l e , t h e a g e n c y c a n be c o m p e l l e d to f o l l o w t h e l a w b y mandamus, c i t i n g S t a t e ex r e l . B o u r q u i n v. S t a t e Board of E q u a l i z a t i o n ( 1 9 2 3 ) , 67 Mont. 340, 215 P. 667; and a n a g e n c y h a s a n i m p l i e d l e g a l d u t y t o undo a n y a c t i o n t a k e n i n v i o l a t i o n of a s t a t u t e , c i t i n g P a r k s v. Board of C o . C o m m i s s i o n e r s of T i l l a mook C o . ( 1 9 7 2 ) , 11 0r.App. 1 7 7 , 5 0 1 P.2d 8 5 . I n t a k e a l s o a r g u e s t h a t t h e a p p l i c a t i o n o f Compact A r t i c l e X V I I I t o Article V I I ( s e t o u t above) r e s u l t s i n the c o n c l u s i o n t h a t n o t h i n g i n t h e Compact is i n t e n d e d t o d i v e s t Montana of j u r i s d i c t i o n o v e r i t s a l l o c a t e d waters and t h u s t h e p r o v i s i o n s o f M o n t a n a ' s Water U s e A c t s h o u l d a p p l y . A r t i c l e X V I I I p r o v i d e s as follows: "Article XVIII "No s e n t e n c e , p h r a s e , o r c l a u s e i n t h i s compact o r i n a n y p r o v i s i o n t h e r e o f s h a l l be c o n s t r u e d o r i n t e r p r e t e d t o d i v e s t any s i g n a t o r y s t a t e o r a n y o f t h e a g e n c i e s or o f f i c e r s o f s u c h s t a t e s o f t h e j u r i s d i c t i o n o f t h e water o f e a c h s t a t e a s a p p o r t i o n e d i n t h i s compact ." The Board, t h e D e p a r t m e n t and U t a h c o n t e n d t h a t a w r i t o f mandate should n o t i s s u e f o r s e v e r a l r e a s o n s . First, the Department d i d n o t v i o l a t e any c l e a r l e g a l d u t y but followed t h e c o n t r o l l i n g l a w s o f t h e Compact and A c t . These p a r t i e s r e a s o n t h a t t h e Compact is s i m i l a r t o a t r e a t y , s i n c e it was a p p r o v e d by C o n g r e s s , and s t a t e l a w is s u b o r d i n a t e t o i t . Since A r t i c l e V I I , p a r a g r a p h B, o f t h e Compact s t a t e s t h a t t h e a d j u d i c a t i o n is t o c o n f o r m w i t h t h e laws o f t h e s t a t e o f d i v e r s i o n , t h e D e p a r t m e n t c o r r e c t l y g a v e U t a h t h e Wyoming p r i o r i t y d a t e . These p a r t i e s p o i n t o u t t h a t i n t h e Wyoming a d j u d i c a t i o n p r o c e s s , t h e p r i o r i t y d a t e s r e l a t e b a c k t o t h e d a t e o f t h e a p p l i c a t i o n , i . e . November 20, 1973. Also, t h e s e p a r t i e s a r g u e t h a t a w r i t of mandate cannot i s s u e b e c a u s e I n t a k e h a s p l a i n , s p e e d y and a d e q u a t e a d m i n i s t r a t i v e remedies; t h a t t h e Department d i d n o t f o l l o w a fundamentally wrong r u l e ; and t h a t a w r i t o f m a n d a t e i s n o t a p r o p e r remedy t o undo a n a c t a l r e a d y d o n e . F i n a l l y , r e s p o n d e n t s contend t h a t t h e D e p a r t m e n t d i d n o t d i v e s t i t s e l f o f i t s j u r i s d i c t i o n of t h e water a l l o c a t e d to Montana u n d e r t h e Compact, i . e . t h e D e p a r t m e n t r e q u i r e d U t a h t o correct i t s f i l i n g s o n t h e Montana f o r m s i n s u r i n g t h a t water c h a r g e d a g a i n s t i t s Compact a l l o c a t i o n is b e n e f i c i a l l y used. W e note t h a t t h i s Court has r e c e n t l y addressed our scope o f r e v i e w on a p p l i c a t i o n f o r a w r i t of mandate: " T h i s C o u r t i s aware t h a t a D i s t r i c t C o u r t ' s d e c i s i o n to g r a n t or d e n y a w r i t o f m a n d a t e is a m a t t e r o f d i s c r e t i o n and w i l l be s u s t a i n e d on a p p e a l i n t h e a b s e n c e of a showing of abuse of discretion Ingram-Clevenger, I n c . v . L e w i s and C l a r k County ( 1 9 8 1 ) , Mon t 636 P.2d 1 3 7 2 , 1 3 7 4 , 38 ~ t . ~ e p . 9 6 , 1699. ." . The D i s t r i c t C o u r t i n t h i s case d i d n o t a b u s e i t s d i s c r e t i o n i n denying the w r i t . Here a w r i t o f m a n d a t e c a n n o t i s s u e b e c a u s e t h e r e i s no clear l e g a l d u t y r e q u i r i n g t h e Department t o a s s i g n Utah t h e J a n u a r y 14, 1975, p r i o r i t y d a t e . Cain, supra. The Compact, s i g n e d by Wyoming, Montana and N o r t h D a k o t a and r a t i f i e d by C o n g r e s s ( o n O c t o b e r 20, 1 9 5 1 ) h a s t h e s t a t u s o f a t r e a t y and s t a t e l a w is s u b o r d i n a t e t o i t . & See H i n d e r l i d e r v. L a P l a t a R i v e r C h e r r y C r e e k D i t c h Company ( 1 9 3 8 ) , 304 U.S. 92, 58 S.Ct. 803, 8 2 L.Ed 1 2 0 2 ( a n i n t e r s t a t e compact b e t w e e n C o l o r a d o and N e w Mexico w a s f o u n d t o be c o n t r o l l i n g o v e r a C o l o r a d o S t a t e water decree) . T h u s , M o n t a n a ' s water s t a t u t e s are s u b o r d i n a t e to t h e Compact p r o v i s i o n s . Article VII, S e c t i o n C, o f t h e Compact p r o v i d e s t h a t e a c h a d j u d i c a t i o n m u s t c o n f o r m w i t h t h e laws o f t h e s t a t e w h e r e t h e water is d i v e r t e d . case. Wyoming is t h e s t a t e o f d i v e r s i o n i n t h i s I n t a k e d o e s n o t a t t a c k U t a h ' s o r i g i n a l f i l i n g s i n Wyoming o n November 20, 1 9 7 3 . Thus, t h e Department c o r r e c t l y a s s i g n e d t h e November 20, 1 9 7 3 , p r i o r i t y d a t e t o U t a h i n c o n f o r m i t y w i t h Wyoming l a w a s r e q u i r e d by t h e Compact. I n t a k e c o u l d n o t p r e v a i l e v e n u n d e r Montana l a w . The D e p a r t m e n t is g i v e n t h e d i s c r e t i o n u n d e r M o n t a n a ' s Water U s e A c t o f a l l o w i n g up t o 1 8 m o n t h s f o r a c o r r e c t i o n o f d e f e c t i v e f i l i n g . U t a h f i l e d t h e a p p r o p r i a t e Montana f o r m s w i t h t h e D e p a r t m e n t within t h a t period. The D e p a r t m e n t c o r r e c t l y a s s i g n e d U t a h t h e p r i o r i t y d a t e of its f i r s t f i l i n g . I t had no c l e a r l e g a l d u t y t o do otherwise. Af f i r m e d . Chief J u s t i c e

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