Paug-Vik, Inc. v. Wards Cove Packing Co.

ERA IV — Early Governance Consolidation
Court Case
1980

Located approximately 3000 feet to the south of Seagull Lake is a cannery owned by appellee, Wards Cove Packing Co., Inc. The cannery draws 400,000 gallons of water per day from the lake, through a 10-inch pipeline constructed in 1930 by the Red Salmon Canning Company, one of Wards Cove’s predecessors in interest. On August 1, 1936, and again on January 17, 1959, the predecessors recorded with the United States Commissioner, Kvichak District at Naknek, Alaska, a Notice of Appropriation of Water Rights, pursuant to 43 U.S.C. § 661.[2] Also in January of 1959, a predecessor filed an application with the Department of the Interior for rights of way for a reservoir, a pipeline, a pumping plant, and a transmission line needed in order to take the water. This was granted in May of 1963 and included a 50 foot wide strip around the lake. Wards Cove filed a Declaration of Appropriation with the Alaska Division of Lands, Department of Natural Resources, on August 24, 1967, declaring the appropriation of water for “cannery operation, domestic use and fire protection.”[3] There have been no competing declarations seeking to use the waters of Seagull Lake.

What Happened

Paug-Vik, Inc., the native village corporation of the village of Naknek, has appealed the Superior Court’s decision that Wards Cove Packing Company, Inc., is entitled to continued water appropriations from Seagull Lake,[1] pursuant to the Alaska Water Use Act, AS 46.15.010, et. seq. For the reasons set forth below, we agree with the conclusion reached by the trial court and affirm its decision.Pursuant to the Alaska Native Claims Settlement Act, 43 U.S.C. § 1607(a), [ANCSA] the native inhabitants of Naknek formed the village corporation of Paug-Vik. Under the terms of ANCSA, patents of land surrounding the village have been conveyed to the corporation. Part of Paug-Vik’s “core township,” as defined in 43 U.S.C. § 1610(a)(1)(A), includes lands surrounding and underlying a number of shallow, freshwater lakes. One of those lakes, Seagull Lake, is between 2.3 and 4.5 feet in depth and is located approximately one mile east of the village of Naknek. It is the focal point of this litigation.Located approximately 3000 feet to the south of Seagull Lake is a cannery owned by appellee, Wards Cove Packing Co., Inc. The cannery draws 400,000 gallons of water per day from the lake, through a 10-inch pipeline constructed in 1930 by the Red Salmon Canning Company, one of Wards Cove’s predecessors in interest. On August 1, 1936, and again on January 17, 1959, the predecessors recorded with the United States Commissioner, Kvichak District at Naknek, Alaska, a Notice of Appropriation of Water Rights, pursuant to 43 U.S.C. § 661.[2] Also in January of 1959, a predecessor filed an application with the Department of the Interior for rights of way for a reservoir, a pipeline, a pumping plant, and a transmission line needed in order to take the water. This was granted in May of 1963 and included a 50 foot wide strip around the lake. Wards Cove filed a Declaration of Appropriation with the Alaska Division of Lands, Department of Natural Resources, on August 24, 1967, declaring the appropriation of water for “cannery operation, domestic use and fire protection.”[3] There have been no competing declarations seeking to use the waters of Seagull Lake.

Why It Matters Today

Adds precedent that influences how ANCSA corporations, regulators, and shareholders interpret governance rights and remedies.

Related Patterns

Pattern 7: Cultural Expectations vs. Corporate Law

Related Governance Themes

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