Free Motion to Dismiss - Rule 12(b)(1) - District Court of Federal Claims - federal

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IN THE UNITED STATES COURTOF FEDERALCLAIMS THE DALLESIRRIGATION DISTRICT, Plaintiff, v. THE UNITED STATES, Defendant. No. 05-1042C (Judge Lettow)

DEFENDANT'S APPENDIX IN SUPPORTOF ITS MOTION DISMISS TO

PETER D. KEISLER Assistant Attorney General DAVID M. COHEN Director FRANKLIN WHITE, JR. E. Assistant Director Of Counsel: CLARK MILLER Attorney-Advisor Office of the Solicitor United States Department the haterior of Pacific NorthwestRegion, Boise Field Office Boise, ID 83706 KELLY B. BLANK Attorney CommercialLitigation Branch Civil Division Departmentof Justice Attn: Classification Unit, 8th Floor 1100 L St., N.W. Washington, D.C. 20530 Tele: (202) 353-7961 Fax: (202) 353-7988 Attorneys for Defendant

January 26, 2006

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INDEX TO APPENDIX Item Public LawNo. 86-745, dated September13, 1960 Contract No. 14-06-100-2276,dated October 19, 1961 Letter to DonDean, from Jolm W. KeysIII, dated August23, 1989 Letter to Jolm W. Keys11I, from DonW. Bailey, dated September6, 1989 Letter to DonW. Bailey, from Terrald E. Kent, dated September28, 1989 Letter to Bureauof Reclamation, from DonW. Bailey, dated October 4, 1989 Notice of PumpingPowerCharges, dated February 15, 1990 Approval of Rate Revision, dated November 1990 16, Rate RevisionNo. 1, The Dalles Project, effective January 1, 1990 Rate RevisionNo. 2, TheDalles Project, effective January 1, 1995 Memorandum, dated May15, 1995 Recordof Execution of Contract, dated May13, 1996 Rate RevisionNo. 3, TheDalles Project, effective January I, 2002 Letter to MikeRichardson, from Terrald E. Kent, dated August24, 2001 Letter to Bill McDonald, from MarvinPolehn, undated Letter to Ten'ald E. Kent, from ArdenE. Shenker, dated May15, 2003 Pa~e 1 3 41 42 43 45 46 47 49 53 57 59 61 65 66 67

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PUBLIC LA~ 86-745--SEPT.

13,

196

0

Public Law 86-745 AN ACT Toauthorizethe Secretaryof the Interior to construct, opera,e, andmahatain the westerndivision of TheDalles Federalreclamation project, Oregon, and for other purposes. t?e it enacted b~.[ the Senate and Houseof Rep~'esentatlves of the Uni~edStates of A~nerlcaln Gongressassembled, That for the purpose o~ ~rnishing water ~or the irrigation of approximately five thousand five hundred acres of arid land in WascoCounty, Oregon, the Secretary of the Interior is authorized to construct~ operate~ and maintain the western division of The Dalles Federal reclamation p.ro~ect Oregon.The western division shall consist of the following principal works: a main pumping~.]ant to be locatdd at a site on the Columbia River; ~ booster and rehft pumpingplants ~ith reregulating reservoirs; and a distribution system. S~c. 2. (a) In constructing~ operating~ and maintaining the western division of The Dalles pro~eet, the Secreta.r.y shall be governedby the Federal reclamation laws (Act of June lq 1902~ 32 Star. 388~ and Acts amendatorythereof or supplementarythereto ). (b) The period provided in subsection (d) o~ section 9 of Reclamation Project Act of 1939~ as amended, for repayment o~ constructiun costs properly allocable to any block of lands and assig-ned to be repaid by the irrigators maybe extendedto fifty years, exclusive of a development peril% from the time water is first delivered to that block or to as near that numberof years as is consistent with the adoption and operation of a rspayment formula as therein provided. Costs allocated to irrigation in excess oz[ the amountdetermined by the Secretary to be within the ability of the irrigators to repay within a fifty-year period shall be returned to the reclamation fund within a fifty-year period from the date of the first defivery of water from the facilities authorized by this legislation from net revenues derived by the Secretary of the Interior from the disposition of power marketed through the Bonneville Power Administratiou, which are over and above those required to meet any present obligations assigned for repayment from such net revenues, The term "construction costs" used herein shall include any irrigation operation and maintenvmce costs during the development period which the Secretary finds it proper to fund because they are beyondthe ability of the water users to pay during that period. (c)Power and energy required for irrigation pumping for the western division of The Dalles Federal reclamation project shall be made available by the Secretary from The Dalles Dampowerplant and other Federal plants intercouneeted therewith at rates not to exceed the costs of such power and energy from The Dalles Dam taking into account all costs of the dam, reservoir~ and powerplant which are determined by the Secretary under the provisions of the Federal reclamatiou laws to be properly allocable to such irrigation pumping power and energy. (d) That portion of the cost of constructing the works authorized by this Act whichthe Secretary finds to be properly allocable to the conservation and developmentof fish and wildlife~ in accordance with the Fish and Wildlife Coordination Act (48 Stat. 401, as amended, 16 U.S.C. 661~ and the following), together with the portion of the operation~ maintenance~ and replacement costs allocated to this ~metion, shall be nonrsimbursabl~ and nonreturnable under the reclamation laws.

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Contract No~.. ""

i~-o6-ioo-~m?6 UNITEDSTATES DEPARtmENT THE INTerIOR OE .'~REAU OF ~ECLAMATION ~es~ ~sion ~e D~e~ ~o~ect, ~eg~ S~" OF ~A

Article
Title

!

6
8 9 10 ¯ Descri_m~ion Cost Project .. ; ...... au~ ~f ~rks .,', ...... P~ymaut ~ ~s~'s Co~c~ ~g~ ~gati~ .. ~ent of ~ ~ents ......... " ....... " ..... D~m~% P~o~ " C~e, ~on ~d ~t~ce of ~d~e~ Works ..," .... ~tion ~d ~%~qe C~ges; ~es . ~ ~ses~ts .............. A ........ ........ ....... ¯ ¯ ~ ~oJect W~.in R~; ~ec~ Res~e ~ R~c~" ~s~ct ~gab!e ~ea ............................... ...~; ...... .

~a~t; ~ ~ C~ol of ~o~ct ~orks ~ t~ ~tea S~tes ......................... P~ for ~~ R~ to.~v~ Nat~ ~ C~e of ~fa~t

........

"...

~ Not .~o Receive ~at~ ~til ~ers ~eof ~ecute CeCUmC~s ............. ~ ¯ ~ ....... ~ ...... V~ ~d S~e of ~cess ~,i.~... ............... Wat~ ~s .......................... " ...... ~ ......... ~otec~on of Wat~ S~p~ .......... ~ ............ " ..... U~ted S~tes ~ ~aBle f~" Water ShOe ~tle to ~o~ectWorks " "

EXHIBIT

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Title 32 Books: Records:~n~ Re~or~cs............................... ~-30 CTO~_ Returns an& Census ................................... 30-31 Inspectlo~an& Other Charges to be Paid ~y the District .............................................. 31-32 ;... Res~ul~Ions~n~ Determinations Fact ................. o~ C~ion of Con%Ta~ .................................. 32-53 Clu~1~esin Dis%l~imt 0rganIz~tlon ........................... 33 Contz~ct ~en~maut ............................. . ........... Notices " 33 Discrlm~n~%ion Agaiz~t)~m~loyees Al~plicauts or for EmploymentProkibite~.................................. 3~-36 Contingent .Ai~rop_ria~ons A?~o~men% 3hm~s . ; ...... on or c~ 36 Assignmentsl~zohibi~e&; Successorsand Assigns Oblig~te~ ....... ........................................... OfficialsNot to ~auafit .................................. 37 Signatures....................................... -. ........ 37

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~

STJ~ES

~e~ern Division ¯ h-e DallesProject, Oregon REPAYMENTCON~CT BE~E~EENT~E UN]N~ED STATES OF AMERICA

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~o ~SEREAS, the District is on high ~r~und adjacent to the Columbia River which flyer provides a reliable source of ~ater for irrigationpurposes~ and 5. WHEREAS~ the District desires the Umited States to construct pu~pin~ fs~illtiesaud am irrigationdistributionsystem substautial~y accordamce with the plau set out in House Document No. ~i~ 86th Con~rmss~ ~a Session; I~o~~ THEREFOKE,In consideration the mutu~l and of stlpul~tionsher~In set forth, it is hereby covemantedaud s~reed as

Definitions 6. The follo~Ing terms use& in this contract shall h~ve.th.e follo~~g re~ectlve meanings: "Secretary"sh~ll mean the Secretar~of the Interlor or his ~ authorized representative. "Federal R~clsm~tlcn I~" shall ~ the Ac~ of June i~~ 190S (3~ Stat. 388), and all acts am~datery thereof or supplementary thereto; Including~Ithon~ limitationby this emumera~on the Act of Sept~ber 13, 1960 (74 star. 88~). "Pro~ect ~orks" shall mean the entire ~crks com~tructed in comnecticm ~rlth this contract.

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notlfy the Districtthe work is dmemed compl.ete~stud the District's con~uctlon c~s~ge obligatlo~ shall be either the amount .mrovided in ¯ ~rticle9 or the amottut~f the then cc~p_It~ted ~ork allocatea TJae ~y Seerete~yto Irrig~tlonfor re~s~mentby the Distrlct~whichever is the

¯ Adjustmentof Anuual lustsllments I0. The amount of each of the annual ~msta~s provided in article 9 ms~ be increase~ or decreased s~ ~_u accordance with mmlm, es~ab~_Imhed ~o make a~m~men~s for ~ variations in ecen~mlc ditioms pertlmez~to the ps~ment capacity of the users of i~rlgation

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in the District ~th ~he objectiveof rep~rlng the District'scenstructlon. charge obligation~rlthln a 50-year repaymentperiod. This foram/~ and the /q, first In~t to ~klch it shall _s~ply, shall be eStabl~ahed by mut~ agreementbetweenthe Boar~ .~f I~Irectorsof the Distr~c~and the Secret~ry supp1"ementlng this contractaud shall theres/~err~a/n in effect f~r roll

su~sequan~years in ~hlch a cens%ructloncharge Snsts/.Imem% ~ue to is the Unfree"States. ,D~elopmem~ Perioa ~_l. aeveD~ment (a) For ~ll Irzi~able (I0) lauds years. ~ter of the Distmlct there ~erioa ~ be vi~ to the of ~

perioa

of ten

The demelc~meat

cc~mence with Di.strict ~ter is

the year for

~hich

is aamounce~ as available smaoumcenent of availability ~rlor

~. th~ Seorets~y. mot aelivared

r~ the sala

to the District

by the Secretamy

to Decen~er

of the yesm ~rece@/ng~ha% for ~hlch ~ater irlll be ~vailahle~the first year of.the devel~pmentperlo~ ~rlll he the first yesr follo~ingthat in ~hlch %n~ter is available as anu~mce~ by the Secretary. Durlmg this ~elopment ~erloa it ~ net be neeessa~/ for the Distrlet to make 9syments %o the i United States on the ccnstruchloncharge obllg~tien,but the Districtshall ¯ collecta devel~pment perlo~ charge for such lam~s, such ahsrge to be anmcunced az~ by al~pruprlate not-Ice to the District frmm the Secr~ha~y en ~r before December 1 of each ealen~r year of the devel~ ~erlo~ for

6

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(k) for each sore-foot or fractlon thereof per acre in excess of three acre-feetper acre~ st a rate p~r acre-foot equal to one hundred sixty ~ercemt (i~0%) of the rate ~er acre-foot charged for water made available foz~e year u~er the mlmlmumdev~lol~ent period charge. ¯

(c) This is to reoogmize Co~traet No. 14-06-100-20~entered into betwee~ the .Umited States amd the District ~ted providimg for the District to advauee th~ s~ of one thousaud dollars ($i~000.00)to complete the laud cl~ssifiostionsuzvey. Th~ said sum one thousaud dollars ($i~000.00),as ~rovided im sai~ comtract~is to aploliedagaimst the first year's Eevelo~me~tperiod charge. Care~ O~eratiom.:anE Maimtemsmeeof Pro~ee~Works i~. (a) Th~ Umited H~ates will operate and mai~taim the project works umtll their trausfer ~o the District, At amy time follo~img ~e motice to the Distric~ of the begizmlmg of the Eevelopmaut ~erio~ the ¯Secretaryma~ upon appropriate ~z~ittemmotice to the D~. strict,tr~usfer to it aud the Iristrictshall assume the ca~e, opa~atloma~d maintemauce of all~ or W~y ~ Of the project works wklch im "the Secretary'sopimlon may be appropriatelyso trausferred-at such tlme. Trausfer of e~uil~ent and Sul~ies required,as determime.~, the Secretary,~' coanectlomwith by the operatiomam~ malutemamceof the project works shall be ease concurrently a~ the costs thereof chargeE to comstru~tlomcosts of the project. :-

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(b) Beginning with the close of the developmentp~riad~ the l~Istri.ctshall assess s~ainstthe lands in the District~n amount necessary to cover the costs of o~e~r~tionand m~int~uance.~he aesessm~atsto be made hereundershall he uniform for 8/i land~ in the District exc~i~ as otherwise provid~ in l~ragra~h(c) of this ~rticle, unless at'the ol~ion ¯ of the District a minlm~ charge is establishedfor tracts of five acres or less in a single ownership.All charges to be m~de under the terms of this contr~ct~exclusiveof construction charge ins.tal~ments, and of ment period charges;shs/l be in~"ud~din such assessments. (c) The District in es~abllshing ~ collecting ~er acr~ chs~ges, shall levy a mSmimum annual ol~ration and mainten~ucecharg~ against ~ch irri~ble acre within the District ~n~ the ~a~ent of such mi~Lmum shall be rs_uu/red whether or not w~ter is use~. !~t ~hall be in vance of the .delivery of ~ter to any i~Ti~b~e land in one o~nership. The amount of w~ter in acre-feet~er acre which is to bc d~D-Ive~edeach y~ar on payment of the mlnim~m annual Charg~ shall be t~o acre-feet.For ~water to be deliveredeach year in excess of that deliv~re~for the chs_rge"the l~ndu~n~sor w~tcr ns~rs invqlva.~shall l~y to the Dis~crictan additionalwater charge ~s follows: il) for the first one-half ~cre-foot per ~cre~ at a r~te ]~er acre-footequ~l to one hu_udred twenty l~rcent (120%) of the rate per acre-foot charge~ for water made availablefor the year under the annual m/nlmumcharge;

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acmes shall be "se/acte~fr~ .the.arableSAnds and fixed prl~ to the o~ the da~elopmeat .parioaup_ore the c~mple~ion an irrigablearea suzvey. of The'Distrlct~ with the a~proval of the Secretary and the ~downers involve~ may for the ]~urposesof s~lJustmemtan~ mattar~ of i~s ~/n Internsl aamlnistrz%ionmak~ cha~g~s in the irriEabl~ acreage fr~ tlm~ to tim~ so long as ~uch b/mmge~ ~o not ~es~tlt in there 5elng a tots/ irrlga~learea ~kich will excee& the flnal.lrrl~able area as determlue~by the irrigable are~ survey. Nothlmg in this sa~Icle shall be de'emed to relieve the District in a~y WB~ of its g~meral ohlig~tlonto ~ey the United States the .full smo~ut of th~ District'sconstruction charge obligationun~er this contract.

I~. (a) Upon the completion of the work

pr6vlded in article for

or the termlna~ion of the work thereon as ~armlmed ~y the Sec~e~ for a~z reasen~the Secretaryshall furnish the District~-Ith ~ written statem~b of the ~ct~al cost of eomstractionof the pro~ect works am& the ~ou~t allc~a+~ to irri~tiom for repayment by ~he D~strlct. (b) ~hm costs wl~!ch m~ke up tb~ various obligationsto be paid by the Districtto the U~Ite~ States trader this contractshall embrace all expen..d/tures whatsoevernature or kind in re~tion to the functionfor af whlc~ the charge is madm, incluEimg,but ~ithsut limitationby reason of ~ tb/s enumeration, cost of surveys and i~vestig~tloas3 labor, property~

tration:everhea~, general Imspectionservices, end damage claims of

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(c) The Secretary m~y enter on the project works to shut off water belug delivered in violation of this article or ~icle i3. General O~!i~ations- Assessments 22. (a) All the project irrigable lauds shall be obligated the ~strlct to p~ to the United States the full amount ~f the construetion charge obligationto be paid ~y the District,as prowl~ed in article of this contract,regerdlessof deldm~uenciesas ~o particulsrlauds in psymautto the Districtof assessmmuts amd ch_~rg~es. (b) The District shall cause to be l~vlea aua collected all n~cess~y assessments and charges, and ~ill use ~ of its auth.o~ty resourcesto make all psymen~s to the Unlte~ States whan due and to meet its o~her obligaticmsunder this contract. (c) Should the District be in default at a~y time in the ment of construction chsr~e Imsta3_Im~nts, the Seoretary,by wrltt~n no~ice to the District,m~/ re%ttlrethe Districtto levy toll chsrgesfor the collectionof its caustructlon charge installm.~nts frc~ water users in adv~uce of water delivery,aua also establisha toll charge tb be in a~vance of wster de3_iver~in s~ition to,- or i~ the place of, a~y toll chargesl~cled by the District. All Bemefits ConditionedU~on

23. (a) Shou!a the ~strict fall to. !e~-/ T~he assessments,tolls~ or
other charges against amy project land~ required to be l~vied to meet the Dis~rlct'sobligationto %he Unite~ States ~nder this contract,or, h~ving

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to such L~ds Not to Receive,Water, Until Owners Thereof E~ecute Certaiu Contracts 25. (a) Except as permitted by the Act of July Ii, 1956 (70 ~tat. 5~4) or the Act of Se~t~m.b.er.2~ 1960 (74 S'~ato 73~)~ no ~atar.sha!~ be ~live~ed to amy excess lands as definedin article"~4 hereof uE.l~ssthe ~ownersthereof shall have axecuted valid record~blecontractsin form satisfactoryto the Secret~ry; ~greslmgto the" ~rovlslonsof T~his ~nhiclean~ s~ticles24 and 26

hereof~ agreeingto the _appraisalproviSedfor in article ~6 hereof and .'th~',,t sue.h appraisal shallbe made on T~he basisof the act-ual.bon~ fide val~e

of such lands at the date of the appraisal~ithout referenceto the constructionof the pro~ect;.and sgreelmgto the sale of such !studs unaer terms and conditionssatisfactoryto the Secretaryand at prices not to exceed those fixed,all as hereins-eter' pr~rlded. (b) Each ismge landowner as cond/tionprecedent to the rlgh% receive %n~ter aellvereahereunderfor ~ of.his ~xeess lands sh~l, ~ wi+~hln ten (lO) yearns fo~-lowimg the announcement" inlti~lavailability ~ater of of

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to the District unbar this contract~ and before any ~ter is dellvsre~ b~ the District to his excess land; execute a vs3/~ recor~ablecontract in form s~tis£actory to the Secretary: ~ Tha~ no ~xcess lan~ ms~ be ma@e e!Ig~ble to receive ~ater hereunderby the~axecutlonof a recor~blecomtract umless such ~cess !and ~as'," on the date of execu"hian of tkls cautract,held i~ the o~mersBi~of the large landc~ar ~xmcutlmg such recordable comtract, lu such recordable comment the "large lamd~amershall agree to the pro~Islom~cautaine&in this article and in sr~Icles24 sn~ 26 hereof and aEree to dls~.o~eof his excess landS ~n acc~daneethere~-Ithto persons ~ho can take title thereto as nonexcesslan& as herein provide~an~ st s ~rice not "to exceed the spprove~. _appraised value of such ~xcess ~ ~Ithln the p~ioa of ten (10) ye~s after the said initial availa~illty ani shs.ll aEree ~ku~herthat Sf sale lama is ~ot so ~tispose~l~ ~ithlu said ~srlo~ of ten (~0) years th~ Secretarysha!l have the power to &Ispese of said la~ subject to the same cond/tionson behalf of such larEe. !and~ner; a~l the District agree~ that it ~ take all nee~ss.,srysteps to insure ~h~t ~ter i~ not "de!iv~re~~;o a~y large lan~ne~ other for Izts nonexcesslauds until such o~ner me~ts the c~n~Itionsprecedent her etu s~atea. (e) Each large landowner as ~ condi~on~reced~ntto the rIEh~ to receive v~ter ~lellvere& by the District for amy of his lan~ ~Ii~ ~h.~ ~ (30)" ds~s after ~h~ .de.re of mc~'i~e i~rtm~ ~;he Uaitea @t~tes

throughth~ Distr~c~re~uestimgsuch large ~audnv~aerto ~eaigm~tehis

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such period of time as the Secre~ considers" reason~le~ ~uch design&~ion will he made by the Secre~ wh~ will ~

¯ hereo~~o the Di~c~ ~u& %o ~he l~r~ l~wner.~he large
o~uer shall ~ec~" ~ou=E ~y a~y such action on %he pa~ of the District or ~he Secret" ~uE %he D~st~Ic~ will ~ake eJ-I necesse-~/ ~eps ~o insure tha~ ~er is ~livereE ~o lands eligible as nonexcess "lands o~ when so desi~nate~as nonexce~s.A large Isndownermawr ~-l~ch the consen~ of the Sec~e~ ~esign~e lan~ o~er T2~an that prevlousl~

contract~nde~ the t~ms hereof#OzLIy ~'Ith respect,

to land cov~re~b/

such. recordablecontract~and only ~o the exten~ that an equal acres~e of the irrigable l~na initiallydesignate~as nonexcess an~ owne@ by such isrge landz~n~r shall, upon such n~w designa~ion~ hec~ excess l~nd sub~e~t ~o the provlsicmsof such recor~ablecontrac~in the same m~uner ~ if such lan~ ha~ bee~ inclu~e~ there~.n.

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.Valuation "and Sale of ExcessLands,.

the District.h~Id in privateo~nmr.~hi~ 3~u:ge l~c~:x~'s, o~ ea~Iclm24, for "the. imn~osesof this contract,"shall ~e

a~ definedin

d~ter~med, subject

. t6 t~e.~.a1~pr~val thereofby the Se~rete~y/ threeal~.~ralseJ~s. of by One

by th~ Districtand the "t~o ~g~raiserssodisjointed .shall name the third. ¯ If th~ a~raisersgo designatedby th~ Secretaryand the District ~re able to agree upon the a~tm~nt- of the

third, .the1~esiCLu~ Judge of

th~ U~ted States.DistriCt. Court for the State of OreEon shs!l'be 't~ n~unethe .th/rda~loraiser. .~

sceoUntof the exls.tingor ~rospectlv~ ]~osslbility of securing~ater from the l~o~ec%. (2) - In'anysuch al~pra/~al ~!rp~o!~ri~te

at±on sha~l given lau~velue be to ,~..~ees for
r~le lands as l:mblishe@by the United States. (S) Th~ value of imgrovamentson the land the time of s~id appraisal"shall be incl~ed t.herein/ but Shall also be set ~ort~ selx~tely in such ~u authorized e~cy, of

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SO

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~cable U~ted ~d rec~

s~te S~t~s of

~s s~ ~e

~

re~ti~, ~ve s~ ~s

~e ~

prier re~e~

r~res~tive to~e acc~t

of

33. pro~cea U~ted

"(~) on Sta~s

~e ~ ea~

~s~ct ~t~n ye~

~ the on

ke~ ~ct. or

~

acute ~e

recta ~s~ct

of s~ ~sh ~ c~

befo~

Dec~

31

a

(b)

~

the

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~th of ~ ~e ~e~ ~ct Imc~e

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3O

Case 1:05-cv-01042-CFL

Document 8-2

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Case 1:05-cv-01042-CFL

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year first above ~ritten.

Regicc~alDirector,Region1 Buresuof Rec]~mma~ion P. 0.'~o~ 937, Boise, Idaho

~7

40