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Supreme Court Hears Challenge to Rio Grande Consent Decree; U.S. Says Decree Would Bind Federal Claims

Supreme Court of the United States · March 20, 2024

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Summary

At oral argument the U.S. Solicitor’s Office urged the Supreme Court not to approve a consent decree between Texas and New Mexico that, the government said, would dispose of the United States’ compact claims without its consent and could impose operational obligations on the federal government.

The Supreme Court on Thursday heard arguments over a proposed consent decree that would resolve an interstate dispute under the Rio Grande Compact, with the United States urging the justices not to approve the settlement because it would dispose of federal claims without the federal government’s consent.

"A consent decree requires consent," United States counsel Mister Liu told the Court. He argued the proposed decree "would dispose of the United States' claims without its consent" and could "impose obligations on the United States" that conflict with downstream federal contracts and the Reclamation Act. The government said the decree would permit ongoing, unsustainable groundwater pumping and could leave the United States unable to vindicate its compact-related rights elsewhere.

Why it matters: The dispute centers on which baseline should govern measurements of the compact’s water allocation — an older "1938" baseline the government says should apply, or a longstanding operational "D2" baseline reflected in later accounting — and on whether the decree would effectively alter the compact’s protective scheme for the federal reclamation project that delivers water to two irrigation districts and to Mexico.

State counsel defended the decree as a limited, reasonable clarification of how to measure the states' apportionment. "No one disputes that the Rio Grande Compact divides the river's waters 57% to New Mexico and 43% to Texas," Miss Bennett told the Court, and she said the decree "merely tweaks a methodology" to measure deliveries and would not contradict the compact. Counsel for the states and the special master told the justices that technical questions about gauges, accounting and transfers are better addressed through cooperative administration and lower-court or administrative fora for intrastate enforcement, not by denying a settlement between the compacting states.

Key arguments: The United States said the decree would be preclusive on the question of what the compact requires in this case and that, if the consent decree became part of the constellation of controlling law, the government could be left unable to bring compact-based enforcement claims later. Counsel warned the decree would shift practical control of certain allocation choices from the United States and the project’s districts to the states, potentially forcing interdistrict transfers that the federal contracts do not contemplate.

The states countered that (1) the special master found no treaty problem with Mexico, (2) the decree follows longstanding measurement practices, and (3) the federal government retains other fora to litigate reclamation or intrastate allocation claims if necessary. "The court should overrule The United States' exception and enter the consent decree," counsel for one state told the justices, urging prompt approval.

What the Court asked: Justices repeatedly probed whether the United States' claims are distinct from Texas's and whether permitting the United States to proceed here would expand the Court’s original jurisdiction. They asked whether the decree would bind the United States in a way that precluded later litigation, and whether the operational changes the decree would require are minor accounting tweaks or substantive alterations to project operations and federal contractual obligations.

Next step: After rebuttal the case was submitted. The justices did not announce a decision from the bench; the Court will issue an opinion at a later date.

Background: The Rio Grande Compact roughly apportions the river's waters between New Mexico and Texas and has been interpreted and administered in conjunction with the federal reclamation project that supplies two irrigation districts and the United States' treaty obligations to Mexico. The parties and the special master disagree over whether the proposed consent decree constitutes a permissible clarification of measurement methodology or an impermissible modification of the compact's legal protections for federal project deliveries.

Sources: Oral argument transcript before the Supreme Court (argument submitted).