Ahtna, Inc. v. State, Department of Transportation & Public Facilities

296 P.3d 3, 2013 WL 203070, 2013 Alas. LEXIS 7
CourtAlaska Supreme Court
DecidedJanuary 18, 2013
Docket6745 S-14075
StatusPublished
Cited by10 cases

This text of 296 P.3d 3 (Ahtna, Inc. v. State, Department of Transportation & Public Facilities) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ahtna, Inc. v. State, Department of Transportation & Public Facilities, 296 P.3d 3, 2013 WL 203070, 2013 Alas. LEXIS 7 (Ala. 2013).

Opinion

OPINION

STOWERS, Justice.

I. INTRODUCTION

In September 1961, the U.S. Bureau of Land Management (BLM) issued a right-of-way grant to the Alaska Department of Pub-lie Works (now the Department of Transportation and Public Facilities) conveying a "road building material site" along the Denali Highway with no expiration date and no rental fee. The right-of-way grant was issued pursuant to federal statutes and subject to relevant federal highway regulations.

After the Alaska Native Claims Settlement Act (ANCSA) was enacted in 1971, 1 the United States conveyed the surface and subsurface estates encompassing the State's material site to Ahtna, Inc. (Ahtna), an Alaska Regional Native Corporation created pursuant to ANCSA. The conveyance was "subject to" the "Irlights-of-way for Federal Aid material sites."

Section 14(g) of ANCSA 2 allowed the federal government to waive administration of the rights-of-way, which BLM did in 1984. The BLM waiver stated that the State was the grantee of the right-of-way at issue, and instead of providing an expiration date the waiver described the term of duration of the right-of way as "[plerpetual." The waiver entitled Ahtna to "any and all interests previously held by the United States as grantor," but the waiver explicitly stated there were no rental or other revenues associated with the right-of-way. The State removed material from the site until 1988, but the State did not use material from the site for the next 20 years. The State began using the site again in 2008.

Ahtna demanded compensation for the removal of gravel from the material site and directed the State to cease and desist further entry onto Ahtna lands. The State responded that its right to remove the gravel preexisted Ahtna's title interest.

The State filed suit against Ahtna, and the parties filed cross-motions for summary judgment. The superior court granted summary judgment to the State, concluding that the State had a valid interest in the material site right-of-way under the Federal-Aid Highway Act, and that Ahtna could not cancel the right-of-way for nonuse or abandonment so long as the State operated and maintained the Denali Highway. Ahtna appeals.

We affirm the superior court's grant of summary judgment to the State.

II. FACTS AND PROCEEDINGS

A. The State's Material Site Right-Of-Way

On June 6, 1960, the Department of Public Works submitted an application to BLM for a material site easement at milepost 118.5 of the Denali Highway near Cantwell. The State intended to use the l4-acre site to obtain gravel for highway construction. On September 26, 1961, BLM approved the application and granted the State a right-of-way. The grant, F-026069, listed the per *5 mitted use for the right-of-way as "[rload building material site," listed the expiration date as "Inlone," and listed the rental amount as "[nlone." The grant's map was labeled "material site easement." The BLM decision granting the right-of-way indicated it was issued pursuant to "Section 17 of the Federal Highway Act of November 9, 1921 (42 Stat. 216; 23 U.S.C. 18)" 3 and subject to specified federal regulations.

B. BLM Waives Administration Of The Material Site.

ANCSA was enacted on December 18, 1971. 4 Ahtna is one of the 18 Alaska Native Regional Corporations organized under the terms of ANCSA. Pursuant to ANCSA, on October 28, 1981, the United States conveyed the surface and subsurface estates encompassing certain of the State's material site rights-of-way to Ahtna through Interim Conveyance 448 (I.C. 448). This conveyance stated that it was "subject to" the "[rlights-of-way for Federal Aid material sites" and specifically listed F-026069 as one of these rights-of-way. There are at least 61 state material sites on Ahtna's land including F-026069.

Section 14(g) of ANCSA addresses the preservation of existing rights on lands conveyed to an Alaska Native Corporation and waiver of federal government administration. It states in part:

All conveyances made pursuant to this chapter shall be subject to valid existing rights. Where, prior to patent of any land or minerals under this chapter, aln] casement ... has been issued for the surface or minerals covered under such patent, the patent shall contain provisions making it subject to the ... easement, and the right of the ... grantee to the complete enjoyment of all rights, privileges, and benefits thereby granted to him. Upon issuance of the patent, the patentee shall succeed and become entitled to any and all interests of the State or the United States as ... grantor, in any such ... easements covering the estate patented.... The administration of such ... easement shall continue to be by the State or the United States, unless the agency responsible for administration waives administration.[ 5 ]

When implementing Section 14(g) of ANC-SA, the United States Department of the Interior promulgated a regulation making waiver of administration mandatory when the material site was entirely within the conveyance:

Leases, contracts, permits, rights-of-way, or easements granted prior to the issuance of any conveyance under this authority shall continue to be administered by the State of Alaska or by the United States after the conveyance has been issued, unless the responsible agency waives administration. Where the responsible ageney is an agency of the Department of the Interi- or, administration shall be waived when the conveyance covers all the land embraced within a lease, contract, permit, right-of-way, or easement, unless there is a finding by the Secretary that the interest of the United States requires continuation of the administration by the United States.[ 6 ]

*6 BLM waived its administration of all of the rights-of-way contained in 1.C. 448, including material site F-026069, on September 6, 1984. The waiver reiterated that I.C. 448 was "subject to" rights-of-way that had been granted to the State of Alaska. The waiver did not provide an expiration date, instead describing the rights-of-way as "[plerpetual." The waiver also stated:

Pursuant to law, the grantee is entitled to all rights, privileges, and benefits granted by the terms of the grants during the term of the grants until they expire, are relinquished, or are modified by mutual consent of Ahtna, Incorporated and the State of Alaska, Department of Transportation and Public Facilities.
Ahbtna, Incorporated is entitled to any and all interests previously held by the United States as grantor in any such grants within the conveyance boundaries. There are no rental, or other revenues associated with these rights-of-ways.

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Cite This Page — Counsel Stack

Bluebook (online)
296 P.3d 3, 2013 WL 203070, 2013 Alas. LEXIS 7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ahtna-inc-v-state-department-of-transportation-public-facilities-alaska-2013.