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Water Resources: Compensation to Water Users Did Not Reflect the Value of Rights and Interests

RCED-90-116 Published: Apr 18, 1990. Publicly Released: May 18, 1990.
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Highlights

GAO reviewed the Bureau of Reclamation's compensation to the Strawberry Water Users Association (SWUA) for operation of the Strawberry Valley Project.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Interior To assist Congress when it deliberates on the just compensation for the termination of contractual rights of organizations managing Bureau projects, the Secretary of the Interior should direct the Commissioner of the Bureau of Reclamation to provide Congress with specific information on the: (1) legal rights and interests of the organization; and (2) remaining economic value of those rights and interests for which the organization should be compensated.
Closed – Not Implemented
The Bureau recognized that it was critical for Congress to have information on which to base decisions regarding the compensation of organizations managing Bureau projects that would facilitate action by Congress on future compensation issues. There is no specific outstanding compensation claim at this time.
Department of the Interior To ensure that the Bureau of Reclamation awards just compensation for the termination of contractual rights of organizations managing Bureau projects, the Secretary of the Interior should direct the Commissioner of the Bureau of Reclamation to develop a policy to guide the compensation of organizations.
Closed – Implemented
The Bureau distributed its compensation policy to regional directors in an April 17, 1991 memorandum from the Assistant Commissioner of Resources Management.

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Topics

Contract performanceContract terminationEminent domainFederal property managementGovernment liability (legal)Land managementLegal rightsWater resources developmentWater supplyCompensation