The appellant filed with the state board of irrigation an application for a permit to appropriate the waters of the Niobrara river for power purposes. The state board of irrigation indorsed its approval upon the application, and in that indorsement specified certain limitations and conditions of the approval. Among those specifications of limitations and conditions was the following: “(7) This grant is made subject to the provisions of section 42, article 2, of the Nebraska Irrigation Law, and power generated under and . by virtue of this permit must not be transmitted or used beyond the confines of the state of Nebraska.” The section of the statute referred to in this specification is as follows: “The water of every natural stream not heretofore appropriated, within the state of Nebraska, is hereby declared-to be the property of the public, and is dedicated to the use of the people of the state, subject to appropriation as hereinbefore provided.” Comp. St. 1911, ch. 93a, art. II, sec. 42. The applicant appealed to the district court for Knox county, complaining of this seventh paragraph of the limitations and conditions of his grant. Upon a hearing in that court the
In Manufacturers Gas and Oil Co. v. Indiana Natural Gas and Oil Co., 155 Ind. 545, the.supreme court of that state held that the statute, which attempted to “prohibit the owner of natural gas from transporting the same by safe methods out of the state, contravenes the federal constitution relating to interstate commerce, and is void, since natural gas, when reduced to possession, is an article of commerce.” The defendant was taking natural gas from its own wells on its own land, and the action was brought to enjoin it from transporting this gas through pipes to any point without the state. The statute considered provided: “It shall be unlawful for any person or persons, company, corporation or voluntary association to pipe or conduct natural gas from any point within this state to any point or place without this state.” This statute was held to violate the federal constitution by interfering with interstate commerce. The decision was put upon the ground that the gas, as well as the land from which it was taken, was the property of the defendant, and that the state, representing the public, had no property interest or rights therein. The court distinguishes the case from Geer v. Connecticut, 161 U. S. 519, and in doing so used this language: “In the case of wild animals, before they are reduced to possession, the ownership is in the public, and not in any private person, and they are, therefore, held to be subject to the protection of the sovereign. The privilege of taking, killing, and transporting them may, on this ground, be regulated by the legislature. As to natural gas, however, the public has. no title to or control over the gas in the ground. On the
In this state, running wa'ter is publioi juris. Its use belongs to the public and is controlled by the state in its sovereign capacity. Meng v. Coffee, 67 Neb. 500. A riparian proprietor cannot appropriate it without permission of the state. This state then has such a proprietary interest in the running water of its streams and in the beneficial use thereof that it may transfer a qualified ownership or right of use thereof. When it grants such ownership or right of use it may impose such limitations and conditions as its public policy demands. Under such circumstances the state may reserve such a right of ownership and control of the beneficial use of the running waters of the streams as Avill enable it to prohibit the transmission or use thereof beyond the confines of the state.
We think that the board has not exceeded its powers in the order complained of, and the judgment of the district court dismissing the appeal is
Affirmed.