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S-03-000789

IN THE NEBRASKA SUPREME COURT

SPEAR T RANCH, INC.,
APPELLANT,
VS.
MELVIN G. KNAUB, ET AL.,
APPELLEES

APPEAL FROM THE DISTRICT COURT OF MORRILL COUNTY, NEBRASKA BEFORE THE HONORABLE PAUL D. EMPSON

REBUTTAL BRIEF OF PLAINTIFF-APPELLANT TO SUPPLEMENTAL BRIEF
Spear T Ranch, Inc.

Prepared and Submitted by:

Thomas D. Oliver, NSBA #21574
P. O. Box 670
110 West 9th Street
Bridgeport, NE 69336
308.262.2933

Attorney for Plaintiff-Appellant

TABLE OF CONTENTS

TABLE OF CONTENTS

TABLE OF AUTHORITIES

PROPOSIllONS OF LAW

ARGUMENT

TABLE OF AUTHORITIES

Brown v. City Of Omaha, 183 Neb. 430, 160 N. W. 2d 805 (1968)
City of Lincoln v. Nebraska P.P. Dist., 191 Neb. 556 at 561, (1974)
In reInterest of Battiato, 259 Neb. 829, 837 (2000)
Karpisek v. Cather & Sons Constr., Inc., 174 Neb. 234 at 240, 117 N.W.2d 322 (1962)
Sarraillon v. Stevenson, 153 Neb. 182 at 189, 43 N. W. 2d 509 (1950)
State v. Tautges, Rerat & Welch, 146 Neb. 439, 20 N. W. 2d 232
Texas & Pacific Railway Co. v. Abilene Cotton Oil Co., 204 U.S. 426 (1907)
Wagoner v. Central Platte Nat Resources Dist., 247 Neb. 233, 526 N. W.2d 422 (1995)

Statutes

Neb. Rev. Stat. § 46-702
Neb. Rev. Stat. § 46- 703

PROPOSITIONS OF LAW

Appellant relies on the propositions of law set forth in its Initial Brief and Initial Additional brief together with the following:

I. A NATURAL RESOURCES DISTRICT, AS A POLITICAL SUBDIVISION, HAS ONLY THAT POWER DELEGATED TO IT BY THE LEGISLATURE, AND A GRANT OF POWER TO A POLITICAL SUBDIVISION IS STRICTLY CONSTRUED. Wagoner v. Central Platte Nat Resources Dist., 247 Neb. 233, 526N.W.2d422 (1995).

II. A NATURAL RESOURCES DISTRICT POSSESSES AND CAN EXERCISE THE FOLLOWING POWERS AND NO OTHERS: FIRST, THOSE GRANTED IN EXPRESS WORDS; SECOND, THOSE NECESSARILY OR FAIRLY IMPLIED IN OR INCIDENT TO THE POWERS EXPRESSLY GRANTED; AND THIRD, THOSE ESSENTIAL TO THE DECLARED OBJECTS AND PURPOSES OF THE DISTRICT --NOT SIMPLY CONVENIENT, BUT INDISPENSABLE. Wagoner v. Central Platte Nat Resources Dist., 247, Neb. 233, 526 N. W.2d 422 (1995).

III. WHERE ONE'S BUSINESS OPERATION AS CONDUCTED MATERIALLY AND INJURIOUSLY AFFECTS THE COMFORT AND ENJOYMENT AND PROPERTY RIGHTS OF THOSE IN THE VICINITY IT BECOMES A NUISANCE AND MAY BE ENJOINED. Karpisek v. Cather & Sons Constr., Inc., 174 Neb. 234, 117 N.W.2d 322 (1962).

IV. A LEGITIMATE INDUSTRY IS GENERALLY NOT A NUISANCE, BUT IT MAY BECOME A NUISANCE IN FACT BY REASON OF THE MANNER OF ITS OPERATION AND CONDITIONS IMPLICIT IN AND THAT UNAVOIDABLY RESULT FROM ITS OPERATION, ESPECIALLY IN A RESIDENTIAL OR OTHER CLOSELY OCCUPIED AREA. Sarraillon v. Stevenson, 153 Neb. 182, 43 N. W. 2d 509 (1950).

ARGUMENT

Introduction

As noted before, the Court requested additional briefs and arguments from the parties addressing four issues:

(1) The doctrine of primary jurisdiction.
(2) Primary jurisdiction in light of the Ground Water Management and Protection Act and the recent adoption of LB 962.
(3) The effect, if any, of the adoption of LB 962 on this appeal.
(4) Whether the Nebraska Ground Water Management and Protection Act ("the GWMPA) or LB 962 have abrogated any common law remedies that the appellant might have, or provide an adequate remedy at law.

Appellant Spear T Ranch, Inc. ("Spear T") filed its "Initial Additional Brief' following which Appellees filed their "Consolidated Supplemental Brief'. Generally Appellees contend that the district court should defer to the North Platte Natural Resources District ("NPNRD") under the doctrine of primary jurisdiction, that Appellant has no common law remedy, and that any remedy Appellant seeks is found under the GWMPA. Following is Appellant's rebuttal.

II. The parties agree the doctrine of primary jurisdiction was developed to bring uniformity in decisions concerning technical, factual issues and administrative expertise in areas unfamiliar to the courts.

Both parties presented historical background for primary jurisdiction and it is apparent that this judicially created doctrine is meant to serve as an aid to the courts. It is entirely within the discretion of a court and is used primarily when the issue before the court is highly technical and factual in nature, and requires consistency and uniformity of decisions. A second reason for invoking primary jurisdiction grew from the need for specific expertise and specialized knowledge handling those highly technical, factual issues which tended to produce voluminous records. It is no surprise that the cases in which this doctrine was developed involved rates and tariffs of regulated industries.

III. The GWMPA as modified by LB 962 has no bearing on whether primary jurisdiction is applicable. Rather, the doctrine requires a case by case determination by the court. In the case before the Court, the traditional reasons for invoking primary jurisdiction are absent.

Appellant and Appellees seem to agree on the historical development of this doctrine, yet quickly part ways responding to the second question of the Court, that is primary jurisdiction in light of the GWMPA and LB 962. Spear T submits that the GWMPA modified by LB 962, or any legislative act for that matter, cannot in and of itself determine whether primary jurisdiction should be applied because that doctrine is a creation of the courts and within the court's sole discretion whether it is applied. If the legislation required deferral to an agency, that would constitute exclusive jurisdiction and the doctrine of primary jurisdiction would not apply. As stated previously, neither the GWMPA nor LB 962 provides natural resources districts ("NRDs") with exclusive jurisdiction to determine conflicts between surface water appropriators and ground water irrigators. The decision whether to defer decision making to an agency is entirely within the discretion of the court based on the factors outlined above.

Primary jurisdiction requires a case by case analysis and neither of the fundamental reasons for invoking primary jurisdiction is present in this case. While uniformity of decisions is important in defining the relative rights of water users, the decision of one NRD out of twenty- three will not bring that uniformity. Furthermore, specific expertise is unnecessary to resolve this conflict.

Appellees, on the other hand, do not appear to respond to the question of the Court. Appellees chose to reargue their case for exclusive jurisdiction. They focused on the GWMPA, legislative policy, and separation of powers. Apparently Appellees do not understand primary jurisdiction despite briefing the history of the doctrine. Primary jurisdiction does not spring from legislation. It is a tool of the courts. Application of the doctrine is not made by statute. The existence of the Nebraska Ground Water Management and Protection Act does not automatically result in referral of any water issue to the NRDs. Only if the district court desires determination of a technical, factual issue which it feels unqualified to address or is concerned with uniformity in decision making, would it seek "agency" input. The issues to be determined at the trial court do not require a special expertise. But even if the trial court thought so, which "agency" would the district court turn to? The Appellee ground water irrigators would choose the NRD, their alter ego. But LB 962 substantially increases the role of the Department of Natural Resources ("DNR") in the management of hydrologically connected water. This should be a red flag to the Court in its consideration of the issue of primary jurisdiction. How can there be two "agencies" deciding these issues?

Appellees have made a great deal of NRDs being considered "agencies". Law should be grounded in common sense, and while from a procedural standpoint administrative rules may apply to NRDs, as a practical matter NRDs are nothing like State or Federal agencies upon which the concept of primary jurisdiction was built. NRDs are political subdivisions. They are accountable only to voters, not to the executive branch of the government. The board members are elected by the public and without technical qualifications. There is no uniformity in "decisions" among the twenty-three NRDs and there is no grant to NRDs of judicial functions.

Wagoner v. Central Platte Nat Resources Dist., 247 Neb. 233, 526 N. W.2d 422 (1995), cited by Appellees in their Consolidated Supplemental Brief, sets out the stringent requirements placed upon an NRD.

A natural resources district, as a political subdivision, has only that power delegated to it by the Legislature, and a grant of power to a political subdivision is strictly construed. In Re Applications A-15145, A-15146, A-15147, and A-15148, 230 Neb. 580,433 N.W.2d 161 (1988) (power to acquire and dispose of water rights did not grant power to a natural resources district to transfer from one entity to another an application pending before it for water diversion). A natural resources district possesses and can exercise the following powers and no others: first, those granted in express words; second, those necessarily or fairly implied in or incident to the powers expressly granted; and third, those essential to the declared objects and purposes of the district -- not simply convenient, but indispensable. Wagoner at 247 Neb. 241,242.

In the case at hand, none of these three tests are met. There are no express words in the GWMPA or LB 962, providing NRDs with authority to determine conflicts between surface water appropriators and ground water irrigators.

Neither are such quasi-judicial powers "necessarily or fairly implied in or incident" to the authority granted in the GWMPA. The GWMPA provides procedures for managing basins as a whole, on a forward looking basis. One goal appears to be to exercise this management in a manner so as to prevent problems from developing between surface water appropriators and ground water irrigators. But there is no indication the GWMPA was intended to provide a forum for a private party who is presently injured. Rulemaking, contrary to Appellees' assertions, is a legislative function, not a judicial function, and is not a substitute for a party's right to protect its vested property right. (Appellees' Consolidated Supplemental Brief at 31, 35.) Appellees contend that the separation of powers prevents the Court from granting relief to Appellant, yet it is perfectly acceptable for the NPNRD, who engages in rulemaking, to also make judicial decisions (". . . the NPNRD is the only entity with the power to grant the relief Appellant seeks"). Appellees' Consolidated Supplemental Brief at 37.

Finally, determination of such conflicts cannot be said to be indispensable to the declared objects and purposes of the NRD. While it might be convenient, particularly for an NRD board laden with ground water irrigators, to decide such conflicts, it is not essential for managing a basin. In fact, decisions in such cases by district courts would help provide guidance to the NRDs as they, hopefully, make long term plans for basins.

One need only examine the cases cited by Appellees to notice that in each instance in which primary jurisdiction was applied, the "agency" involved was a traditional administrative agency of the State or Federal government. Or stated differently, not one court referred determination of an issue to a political subdivision. It is difficult to imagine a court referring a conflict between private parties to a municipality or a county for determination by the City Councilor the County Commissioners.

Regardless of the shortcomings of NRDs to determine conflicts between surface water appropriators and ground water irrigators, "the nature of the controverted question and the nature of the inquiry necessary for its solution are the determining factors in regard to application of the doctrine of primary jurisdiction." In re Interest of Battiato, 259 Neb. 829, 837 (2000). In the case before the Court, the issues to be determined by the district court do not require special expertise. A review of Appellant's Complaint suggests the key issues are:

-Was Spear T able to use its surface appropriation?
-Did the Appellees' ground water irrigation wells pull water from Pumpkin Creek?
-Does Spear T have a superior right to that water?
-What are Spear T's damages?
-Are Appellees' actions causing irreparable harm to Spear T?
-How are those damages allocated among the Appellees?

While some of these issues are, indeed, questions of fact, they are certainly within the competency of a district judge to determine. They are a far cry from ‘what is the proper tariff to charge on cotton seed being shipped on a railroad'. See Texas & Pacific Railway Co. v. Abilene Cotton Oil Co., 204 U.S. 426 (1907).

There is another dimension to this issue, apparently overlooked by the Appellees. If this case is referred to the NPNRD, that NRD will have to decide several questions of law, including: (1) whether a surface water appropriator has a cause of action against a ground water irrigator when the actions of that ground water irrigator deny the surface water appropriator use of its appropriation; (2) whether the surface water appropriator is suffering irreparable harm; and (3) what constitutes indispensable parties in a conflict between a surface water appropriator and a ground water irrigator.

Obviously the issues now before this Court are questions of law. Should they have been referred to the NPNRD for resolution? That would be contrary to the doctrine of primary jurisdiction of which has been said, "[t]he doctrine does not apply in relation to a question which, while properly determinable by an administrative tribunal, does not involve a question of fact, but one of pure law, is determinable apart from the exercise of administrative discretion, and the requisite uniformity of determination is attainable otherwise than by confining determination of the question to the administrative tribunal." Interest of Battiato, 259 Neb. 829, 838 (2000).

Uniformity of decisions in a regulated industry is the other usual reason for invoking primary jurisdiction. As previously stated, there is minimal chance that twenty-three NRDs will produce a uniform decision regarding the rights of a surface water appropriator to hydrologically connected water vis a vis a ground water irrigator. On the other hand, as the Appellees point out, a district court decision will only be controlling for the case before it. However, the decision will be made by a trained legal expert and, as with any significant decision, no doubt be directly appealed at which time this Court would provide a decision bringing uniformity across the State. The truth is, decision by this Court of these issues will permanently resolve the questions of law and leave fundamental questions of fact for the district court to decide: whether the surface water appropriator is able to use its appropriation; whether the water is hydrologically connected; whether the ground water irrigator is using hydrologically connected water; and what are the damages. Depending on this Court's decision, the case becomes simply one of proving liability and damages.

The Court asked the parties to evaluate primary jurisdiction in light of the GWMPA and LB 962. Spear T submits that the GWMPA and LB 962 should not influence the determination of whether to refer this conflict to the NRDs under primary jurisdiction. Under the traditional tests for primary jurisdiction, a district court should not refer decision making to the NRD. The essence of the doctrine is that it is a tool of the courts, not a statutory creation, and it is to be used when special expertise is necessary and continued uniformity is sought in a regulated industry. The nature of the questions in this case do not require application of primary jurisdiction on either ground.

IV. Appellees did not answer the question of whether LB 962 affected this appeal.

The Court also asked the parties how the adoption of LB 962 affected this appeal. The Appellees did not respond to this question either. They emphasized the size of the committee which "drafted" the GWMPA and the amount of work which went into it. Evidently there is a correlation between the importance and effectiveness of legislation and the number of people and pages involved. They opined about legislative policy and separation of powers. However, as pointed out in Spear T's Initial Additional Brief, LB 962 has no affect on this appeal. It does not define priority of use of hydrologically connected water as between surface water appropriators and ground water irrigators when there is insufficient water to supply the surface water appropriation. It does not supply a conflict resolution process between these water users. It does not provide a process for filing a claim for damages caused by a private party. It simply does not help resolve the issues before the Court on this appeal.

V. The parties agree that the GWMPA amended by LB 962 does not impact common law remedies, but for very different reasons.

The last issue which the Court sought input was the impact of the GWMPA with LB 962 on the common law remedies of Spear T. Interestingly, the parties agreed that it did not impact the common law remedies, but for different reasons. Spear T explained how the facts it plead supported each cause of action, and how the GWMPA did not abrogate either cause of action. The Appellees, on the other hand, simply state there are no common law remedies. This position is necessary, contrary to their initial brief, because continuing to argue that the GWMPA has abrogated all of Spear T's rights would expose the GWMPA to a claim that it is unconstitutional because a vested right cannot be taken without due process.

Spear T questions the logic that no common law remedy exists. In order to fully evaluate whether a remedy exists, one must first consider the underlying cause of action. There does exist a common law cause of action for both conversion and nuisance. Nebraska rules of pleading allow Spear T to advance both theories of tort upon the facts plead. While Nebraska commentators have favored a nuisance action under these circumstances, Spear T is not ready to abandon its claim of conversion. Wrongful possession of property that belongs to another constitutes conversion. That does not change simply because the property right in question is the right to use of some thing, for what value is property if you cannot use it? If the State or an entity with the power of eminent domain assumed use of some property, would not that constitute a taking by condemnation? While decisions must be made consistent with established common law, we are not required to check our common sense at the door of the court house. The truth is that the issue of priority to hydrologically connected water which is before the court is not only a question of first impression in Nebraska, but apparently in the western United States.

One will not find guidance in the States north, south, or west of Nebraska because these States long ago integrated management of surface water and ground water, establishing priorities between the two thus avoiding the plight of Spear T. Rainfall in the States east of Nebraska make such conflicts unlikely. That being the case, resolution lies in the examination of the conflicting rights and application of wisdom and common sense. Very few cases will be relevant to such a case of first impression, and the view of commentators, while helpful, should be scrutinized and not accepted at face value.

Surface water appropriators have a vested property right in the use of an adjudicated amount of water. In the event there is insufficient water for all surface water appropriators on a stream, the rule "first in time is first in right" is applied. The oldest appropriation in time is completely satisfied before the next oldest right is fulfilled, and so on until there is no water left to use. This is the surface water management philosophy implemented in the late 1800' s in Nebraska which continues in effect today.

Ground water users have the right to use the water under the land they own if put to beneficial use on that land and subject to certain priorities of use, i.e. domestic, stock, irrigation, etc. They may use this water so long as it does not interfere with other ground water users. If there is insufficient water, the correlative use doctrine is applied requiring landowners to share the water. Appellees incorrectly include surface water appropriators when they define who is subject to the correlative rights doctrine. (Appellees' Consolidated Supplemental Brief at 15,22, 29, 44.) The statute states, in part, "[e]very landowner shall be entitled to a reasonable and beneficial use of the ground water underlying his or her land subject to the provisions of Chapter 46, article 6, and the Nebraska Ground Water Management and Protection Act and the correlative rights of other landowners when the ground water supply is insufficient for all users." Neb. Rev. Stat. § 46-702. The word "landowners" must refer to ground water users because earlier in the sentence the term "landowner" is used to define ground water rights. Correlative rights exist between ground water users, not between ground water users and surface water appropriators.

It is not so difficult then to define the rights of surface water appropriators and ground water irrigators when the two users come into conflict over hydrologically connected water. We have already established that ground water-users can only use water from under their land to the extent it does not interfere with adjoining landowner use of that ground water. A limitation has therefore been established for ground water users. More importantly, that limitation applies, according to § 46-702 when the ground water supply is insufficient "for all users." Neb. Rev. Stat. § 46-703 recognizes that ground water can be hydrologically connected water. Therefore, when that ground water use interferes with a surface water appropriation, there is a limitation on the ground water user. However, it is not correlative limitation upon the surface water appropriator. The two do not proportionately reduce use; not only because of the explicit words of § 46-702, but also because their rights are of different status, and, practically, a surface water user cannot compete with an irrigation pump.

The difference in the status or rank of the rights of a ground water irrigator and a surface water appropriator is similar to the relative rights as between the owner of a surface estate and the owner of a severed mineral estate. The owner of the surface has the right to use the surface subject to the owner of the mineral estate using the surface to access his or her mineral estate. Another relevant analogy would be use of an easement for access when land is subdivided. The servient estate containing the easement cannot deny or take the "use" of the property constituting the access without liability to the owner of the dominant estate.

Completing the analogy, the injured mineral or easement owner denied access, would not go to the County Commissioners, a political subdivision, to enforce its rights and obtain a remedy. It would go to the district court.

Common law nuisance has also been established by Spear T. "Where one's business operation as conducted materially and injuriously affects the comfort and enjoyment and property rights of those in the vicinity it becomes a nuisance and may be enjoined." Karpisek v. ; Cather & Sons Constr., Inc., 174 Neb. 234 at 240, 117 N.W.2d 322 (1962). Furthermore, "[a] legitimate industry is generally not a nuisance, but it may become a nuisance in fact by reason of the manner of its operation and conditions implicit in and that unavoidably result from its operation, especially in a residential or other closely occupied area." Sarraillon v. Stevenson, 153 Neb. 182 at 189,43 N. W. 2d 509 (1950).

The Sarraillon case specifically rebuts Appellees' contention that there is no basis for a nuisance action because they have done nothing wrong and their actions are reasonable per se because they are complying with the GWMPA. According to Sarraillon, reasonableness is not defined by the action of the offending party but more so by its impact on others. Certainly the actions of a party that result in denying another party all of its water for irrigation and all of its water for livestock is unreasonable on its face. Furthermore, Professor Harnsberger applied his definition of reasonableness in 1984 prior to the current serious depletions of surface water and he used that term as it applied under the modified American rule between ground water users when water is insufficient for all.

We have then established the common law basis for Spear T's cause of action, its common law right to hydrologically connected water. This is not a new theory of water management, it is the capstone to an evolving structure. The building blocks are already in place. Surface water appropriations are obtained by adjudication, and governed by "first in time, first in right". Priority to ground water, between ground water irrigators, is codified in the GWMPA. All that is necessary is the "missing link"- the pronouncement that priority of a ground water user to hydrologically connected water is subservient to surface water appropriations. This is not a sea change in Nebraska, it is built upon existing law with the last piece put in place.

It is important to understand that this is not some new philosophy which Spear T is trying to force Nebraska to adopt for its personal gain. It is the completion of the evolution of Nebraska's water law which, to date, has simply not been articulated. The "rights" of ground water irrigators vis a vis other ground water irrigators are clearly established. The rights of surface water appropriators vis a vis other appropriators are firmly grounded. Neither of these bodies of law change. Surface water has always been the dominant estate but need for that declaration was unnecessary until the development of powerful irrigation pumps resulted in a substantial increase of unregulated irrigation wells.

The Appellees have argued at length that this is the Legislature's domain, that the Legislature has spoken, and that separation of powers dictates the NRD handle this conflict. The truth is that the Legislature has not spoken about the common law rights of surface water appropriators. They have had at least two opportunities to address water management in Nebraska. In 1996 the Nebraska Ground Water Management and Protection Act was implemented. Based on its shortcomings, LB 962 was enacted, effective July 16, 2004. Neither of these pieces of legislation provided a methodology for addressing individual disputes between surface water appropriators and ground water irrigators. Neither did they establish a priority to hydrologically connected water as between the two types of users even though this case had already been filed. In the meantime this Court has waited patiently for the Legislature to address these issues with its "broad strokes and bold colors". It should be apparent that the Legislature, does not want to paint this picture. The Court, as a matter of public policy, must address this issue and is authorized to do so.

"Public policy in matters within the legislative domain is for the Legislature to determine." City of Lincoln v. Nebraska P.P. Dist., 191 Neb. 556 at 561, (1974). But the issue at hand has not been addressed by the Legislature, and the common law still stands. This Court said:

In State v. Tautges, Rerat & Welch, 146 Neb. 439, 20 N. W. 2d 232, this court held: "The courts have power to modify the common law, adopting such of its principles as are applicable and rejecting such others as are in applicable." This court cited with approval the reasons of the soundness of that rule: "The common law by its own principles adapted itself to varying conditions and modified its own rules so as to serve the ends of justice as prompted by a course of reasoning which was guided by these generally accepted truths. One of its oldest maxims was that where the reason of a rule ceased, the rule also ceased, and it logically followed that when it occurred to the courts that a particular rule had never been founded upon reason, and that no reason existed in support thereof, that rule likewise ceased, and perhaps another sprang up in its place which was based upon reason and justice as then conceived. No rule of the common law could survive the reason on which it was founded. It needed no statute to change it but abrogated itself" Brown v. City Of Omaha, 183 Neb. 430 at 433, 160N. W. 2d 805 (1968).

Common law established surface water appropriations as vested property rights. The "modified American rule" of ground water developed by common law. That rule has been codified but the Legislature did not address the rights of ground water irrigators vis a vis surface water appropriators in regard to hydrologically connected water. This issue needs to be addressed now. The reasoning of Brown applies "to serve the ends of justice as prompted by a course of reasoning ... guided by these generally accepted truths." Spear T has set out the "generally accepted truths" above, concerning the limitations on ground water use and the vested property rights of surface water appropriators.

In regard to governmental immunity, the Court in Brown said,

Both the Legislature and this court have power to act to change the doctrine and it may well be that the Legislature will have the ultimate word. This would seem to be a poor reason to avoid the court's obligation to modify the common law to serve the requirements of justice in a modem society. We ought not to thrust upon the Legislature the sole responsibility for injustice on the ground that, "Thus it was said in the reign of Henry IV," nor even on the ground that any change would constitute the traditionally condemned heresy of judicial legislation. Id at 434.

This same passage could be said to apply to determination of the priority of a surface water appropriator to hydrologically connected water. The Legislature has failed to address it. Uncertainty reigns. Surface water appropriators cannot compete with powerful irrigation pumps. Will the Court truly stand by and watch this injustice continue?

Confirmation of the priority of the surface water appropriator clarifies the cause of action from which the common law remedy flows. Whether it be conversion or nuisance, either is justified. The common law remedy is damages or injunction or both. These remedies have always been available for these torts, and neither has been abrogated by the GWMPA nor LB 962. There is no specific language in the GWMPA as modified by LB 962 which limits a surface water appropriator's pursuit of redress to filing an individual claim with the NRD (if that is even possible and we do not think it is), and consequently, there is no limitation on the common law remedies available for the surface water appropriator.

Equally important, neither the GWMPA nor LB 962, is contrary to the integration of priority to hydrologically connected water as between surface water appropriators and ground water irrigators. The GWMPA started out as a management philosophy for ground water users with a slight acknowledgment that hydrologically connected water existed. LB 962 filled in much of the gap for management of hydrologically connected water but it did not establish a priority scheme to the water to guide the NRDs and the DNR when they are constructing an integrated management plan required under LB 962. This Court has the opportunity to provide that guidance. How else will the NRDs and DNR be able to determine who receives the water? It is not in the GWMPA or LB 962.

Contrary to Appellees' assertions, protection of Spear T's vested property rights in District Court will not nullify a legislative regulatory act. Use of the district court, will, in fact, be an enforcement tool for private parties consistent with the management of hydrologically connected water. The Court need only put the capstone in place to supply the missing key for water management in Nebraska.

VI. Summary

Spear T is unable to use its surface water appropriation, a vested property right, because Pumpkin Creek is dry due to the pumping of irrigation wells by Appellees. Appellees' actions constitute conversion and nuisance under common law which has not been abrogated by the GWMPA or LB 962. Referral to the NRD for resolution is not consistent with the doctrine of primary jurisdiction. The GWMPA, with or without LB 962, provides no process for resolution of private conflicts, nor does it supply a remedy. Confirmation that Appellant has a cause of action based on its priority to hydrologically connected water will both prevent an injustice and supply the critical element missing in the management of water in Nebraska.

Dated the 24th day of July 2004.

Respectfully submitted,
SPEAR T RANCH, INC., Appellant
By: Thomas D. Oliver, NSBA #21574
Attorney for Appellant
110 West 9th Street
P. O. Box 670
Bridgeport, NE 69336
(308) 262-2933



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