State Land Board v. Port of Portland
State Land Board v. Port of Portland
Opinion of the Court
This is an action by the State Land Board against the Port of Portland to recover royalties for riverbed material taken from the Columbia River. The Port appeals from a judgment for the State Land Board.
In 1959 the Port dredged fill material from the river for use in connection with airport improvements and industrial sites. It is agreed that 170,500 cubic yards of material were used more than one-half mile from the bank of the Columbia River. The state demands royalties for this amount only, and concedes that no payment is due for the balance of the material taken.
The Port contends that it need not pay for any of the material because, it says, the material was not used for a “commercial” purpose. We need not decide in this case whether the material was used commercially, because that question is irrelevant. The state correctly points out that under the then controlling statutes the duty to pay for the material taken arises from its use beyond the half-mile limit, and not because the use was a “commercial” one. General Laws of Oregon 1920 ((Special Session), ch 32, is the forerunner of ORS 274.540 to 274.580. In 1953 the original statute, as amended from time to time during the intervening years, was reenacted as Oregon Laws 1953, ch 181, the pertinent part of which reads as follows:
“* * * The removal of gravel, rock, sand, silt or other material from the bed or bars of any navigable stream within the state is authorized when the same is removed for channel or harbor improvement or flood control, and the removal of*609 gravel, rock, sand, silt or other material from the 'bed or bars of any navigable stream ‘within the State of Oregon is authorized when the material is used for filling, diking or reclaiming land located not more than one-half mile from the bank of the stream. No payment of royalty shall be required for such gravel, rock, sand, silt or other material unless the same shall hereafter be removed from the place deposited and sold or used as an article of commerce. Before any such material may be removed from the place deposited and sold or used as an article of commerce, the State Land Board shall be duly notified in writing of such intended removal and sale or use as an article of commerce and payment shall be made to said State Land Board of such royalty as the board may fix therefor. In addition to the purposes above enumerated, any person may take gravel, rock, sand, silt or other material for his own exclusive use to the extent of not more than 50 cubic yards in any one year. Any person, firm or corporation, before taking gravel, rock or sand from state properties, except in the manner and for the purposes aforementioned in this section, shall apply to the State Land Board for a lease, and such application shall be accompanied by a map or plat showing the premises. Upon receipt of such application and map or plat the State Land Board may award a lease to the applicant and fix a royalty. The establishment or placing of a dredging or digging outfit on any waters or stream, the bed of which belongs to the State of Oregon, and the removal of material from the bed thereof for commercial uses, without having applied for and received a lease, hereby is declared to constitute a continuing trespass.
* * * * JJ
In the preparation of the Revised Statutes, the foregoing statute was divided into several sections. These sections, since 1953, have been found in ORS
“Before any person shall take any gravel, rock or sand from state properties, except in the manner and for the purposes mentioned in ORS 274.550, he shall apply to the State Land Board for a lease, and such application shall be accompanied by a map or plat showing the premises. Upon receipt of such application and map or plat the State Land Board may award a lease to the applicant and fix a royalty.”
This section prohibited the removal of stream-bed materials without payment of a royalty unless the use falls within one of the exceptions mentioned in ORS 274.550. The prohibition in ORS 274.540 is not stated in terms of the commercial or noncommercial character of the use. Consequently the removal of materials for any purpose is prohibited without payment of a royalty unless the use is within one of the exceptions in ORS 274.550.
When the relevant sections are read together, particularly in the form in which they were enacted, it is clear that the legislature intended that the state
Affirmed.
Concurring Opinion
specially concurring.
This case was originally assigned to me but the opinion which appears below was not acceptable to my brethren who sat on the case. We all agree that the judgment must be affirmed. Our only point of difference is in the treatment of State v. Port of Portland, 168 Or 120, 121 P2d 478 (1942), which is discussed below.
In my opinion State v. Port of Portland erred in classifying the use in question as a non-commercial use. As I point out in the rejected opinion, “It is difficult to say whether State v. Port of Portland, supra, is still apposite in view of the enactment of intervening amendments * * But if we do not discredit the case now it will continue to haunt us in briefs and arguments. I believe that we are justified in doing this type of housecleaning job on a matter which is so closely related to the interpretation of the existing statutes. The rejected opinion with minor alterations follows.
This in an action brought by the State Land Board for the payment of royalties for the removal by defendant of river bed material from the Columbia river. Defendant appeals from a judgment for plaintiff.
Defendant dredged 328,760 cubic yards of sand and gravel from the Columbia river. Of this amount
Defendant contends that under the Oregon statutes relating to the removal of river bed material it is not obligated to pay for the sand and gravel it used.
“No person shall remove gravel, rock, sand or silt from the bed of any navigable stream of water, or from the bars of any navigable stream, or from any property of the State of Oregon, for commercial uses without complying with the provisions of OBS 274.540 to 274.560.”
Defendant argues that the use of the gravel in making fills for an industrial site and for an airport overrun extension is not a “commercial” use and that, therefore, there is no prohibition against the taking of sand and gravel for such use and no obligation to pay royalties for the removal of sand and gravel for that purpose.
“(3) In addition to the purposes enumerated in subsection (L) of this section, any person may take such gravel, rock, sand, silt or other material for his own exclusive use to the extent of not more than 50 cubic yards in any one year; however, prior to such taking, the person contemplating such taking shall first notify the State Land Board, and the board shall in turn notify the state agencies mentioned in ORS 274.530.”
State v. Port of Portland was in error in holding that the use of the sand in that case was not for a commerical use. Consequently, to the extent that the case is applicable, it should be overruled on this point.
In the present case the use of the stream bed materials in filling land for an industrial site is for a commercial use and comes within the prohibition of ORS 274.580 set out above. It follows that defendant had to obtain a lease
However, the parties have argued the ease on the assumption that defendant’s use was for a non-commerical purpose. The pertinent statutes would present
“Before any person shall take any gravel, rock, sand or silt from state properties, except in the manner and for the purposes mentioned in ORS 274.550, he shall apply to the State Land Board for a lease, and such application shall include a complete description of the location of the contemplated operation, the time and manner of contemplated removal, and such other pertinent information as the board may require. Upon receipt of such application the State Land Board may award a lease to the applicant as provided in ORS 274.530 and fix a royalty.”
These sections read together indicate a legislative purpose to require the payment of a royalty for the removal of stream bed materials unless the taker could show that the removal was for one of the purposes stated in OKS 274.550 (1) and (3).
ORS 274.550 authorizes the removal of stream bed materials “when the material is used for filling, diking, or reclaiming land located not more than one-half mile from the bank of the stream.” No payment of royalty is required for the removal of such materials. ORS 274.550 (2).
No contention is made by defendant that it is exempt from payment because of its status as a municipal corporation. See State v. Port of Portland, 168 Or 120, 121 P2d 478 (1942) recognizing that the Port of Portland is liable for the stipulated royalty unless the material was taken for a noncommercial use.
The court relied upon the following language which appeared in § 121-603, OCLA and which in substance now appears in ORS 274.550 (2):
“No payment of royalty shall be required for such gravel, rock, sand, silt or other material unless the same shall hereafter be removed from the place deposited and sold or used as an article of commerce.”
ORS 274.540 provides: “Before any person shall take any gravel, rock, sand or silt from state properties, except in the manner and for the purposes mentioned in ORS 274.550, he shall apply to the State Land Board for a lease, and such application shall include a complete description of the location of the contemplated operation, the time and manner of contemplated removal, and such other pertinent information as the board may
ORS 274.530 provides: “(1) The State Land Board may, after notice of competitive bidding, and following such competitive bidding, lease the beds of navigable portions of navigable streams for the purpose of removing gravel, rock, sand and silt therefrom. No lease shall be made for a lump sum but only on a basis of the price per cubic yard for the material removed.
“(2) Prior to advertising for bids, the State Land Board shall request information from the appropriate natural resource agencies as to the probable effect of such contemplated gravel, rock, sand or silt removal; and the board shall consult with such agencies relative to provisions which may be included in any lease awarded as a result of competitive bidding.
“(3) The provisions of subsection (2) of this section shall not apply to existing leases, but shall apply to any new lease negotiated after August 9, 1961.”
Reference
- Full Case Name
- STATE LAND BOARD v. PORT OF PORTLAND
- Status
- Published