December 23, 2004


U.S. Agrees to Pay for Diverting Water to Aid Two Rare Fish

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This might not seem like much, but it could be a right-wing wet dream.
Anything is property.  The gov't must pay if it wants to regulate it.

AP SACRAMENTO, Dec. 22 - The federal government has agreed to pay four
California water districts $16.7 million for water that the government
diverted a decade ago to help two rare fish in the Central Valley,
officials said Tuesday.

The settlement came after a federal judge awarded $26 million to the
water districts a year ago. The debate over appealing that decision or
settling the case grew into a larger debate over the Endangered Species
Act and privacy rights.

Some politicians, including Senator Dianne Feinstein, Democrat of
California, urged the government last week to fight the decision, while
the chairman of the House Resources Committee, Representative Richard W.
Pombo, Republican of California, urged the government to agree with the
judge's ruling that the water districts were entitled to money for water
they had lost.

Environmental groups feared that the ruling would force the government
to pay millions of dollars each time it reserved water to help
threatened wildlife.

But the water districts argued, and the judge ruled, that they deserved
compensation under the Fifth Amendment, which protects private property
from government seizure.

The water districts said in a statement that Senior Judge John Wiese of
the Court of Federal Claims had carefully safeguarded states' rights to
make water allocation decisions even as he protected property rights.

The four agencies are the Tulare Lake Basin Water Storage District, the
Kern County Water Agency, the Lost Hills Water District and the Wheeler
Ridge-Maricopa Water Storage District. They will get their legal costs
on top of the water's market value for water diverted to aid endangered
winter-run Chinook salmon and threatened delta smelt.

Senator Feinstein said the decision "could seriously harm California's
historic water rights system."

"This precedent could make it impossible for the state and federal
agencies to protect and manage the San Francisco Bay-Delta, the heart of
the state's water system," without vastly increased expenditures, she said.

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Michael Perelman
Economics Department
California State University
michael at ecst.csuchico.edu
Chico, CA 95929
530-898-5321
fax 530-898-5901

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