Citizens for Resp. Devel. in The Dalles v. Walmart

CourtCourt of Appeals of Oregon
DecidedJune 3, 2026
DocketA182055
StatusPublished

This text of Citizens for Resp. Devel. in The Dalles v. Walmart (Citizens for Resp. Devel. in The Dalles v. Walmart) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Citizens for Resp. Devel. in The Dalles v. Walmart, (Or. Ct. App. 2026).

Opinion

No. 477 June 3, 2026 183

IN THE COURT OF APPEALS OF THE STATE OF OREGON

CITIZENS FOR RESPONSIBLE DEVELOPMENT IN THE DALLES, Petitioner, v. WAL-MART STORES INC. and Department of State Lands, Respondents. Department of State Lands 43798RF; A182055

Argued and submitted March 3, 2025. Cary L. Allen argued the cause for petitioner. Also on the briefs were Law Office of Cary Allen LLC and Karl G. Anuta, Corey Oken, and Law Offices of Karl G. Anuta, P.C. Gregory S. Hathaway argued the cause for respondent Wal-Mart Stores, Inc. Also on the brief was Hathaway Larson LLP. Inge D. Wells, Assistant Attorney General, argued the cause for respondent Department of State Lands. Also on the brief were Ellen F. Rosenblum, Attorney General, and Benjamin Gutman, Solicitor General. Before Ortega, Presiding Judge, Lagesen, Chief Judge, and Hellman, Judge. LAGESEN, C. J. Affirmed. 184 Citizens for Resp. Devel. in The Dalles v. Walmart Cite as 350 Or App 183(2026) 185

LAGESEN, C. J. This proceeding for judicial review of a final order of the Department of State Lands (DSL) approving the issu- ance of a removal/fill permit to respondent Wal-Mart Stores, Inc., is before us for the second time, following agency pro- ceedings on remand from the Supreme Court. Petitioner Citizens for Responsible Development in the Dalles (CFRD) raises three assignments of error contending that DSL erred in two primary ways on remand: (1) by conducting the remand proceedings in a manner that exceeded the scope of the Supreme Court’s remand, was contrary to adminis- trative rule, and inconsistent with the doctrines of law of the case and issue preclusion; and (2) by issuing an order unsupported by substantial evidence or reason. We affirm. I. BACKGROUND We set forth the background of this case, which is mainly procedural, before addressing petitioner’s assign- ments of error. This case is about whether Wal-Mart has satisfied the requirements under ORS 196.825 for the issuance of a removal/fill permit subject to that provision. In particu- lar, the issue is whether DSL permissibly determined that Wal-Mart’s proposed project, for which it sought the permit, satisfied ORS 196.825(1)(b)’s requirement that the project “would not unreasonably interfere with the use of the state’s waters for navigation, fishing, and public recreation.” In May 2013, DSL issued a removal/fill permit to Wal-Mart Stores, Inc., having determined that the require- ments of ORS 196.825, among other requirements, were satisfied. CFRD challenged the permit and, following a con- tested case hearing conducted by an Administrative Law Judge at the Office of Administrative Hearings, DSL issued a final order on October 9, 2014. The final order granted the permit and determined that the permit, as conditioned, met all the requirements by statute and rule, and was otherwise within DSL’s discretion to issue. With respect to the require- ments of ORS 196.825, DSL considered the public need, pub- lic benefits, and economic costs to the public of Wal-Mart’s proposed project as required by ORS 196.825(3)(a) and (b) 186 Citizens for Resp. Devel. in The Dalles v. Walmart

and found that the evidence was inconclusive with respect to those factors. Notwithstanding those inconclusive find- ings with respect to the public benefits of the project, the public need for the project, and the economic costs to the public of the project, DSL determined that the issuance of the permit was allowed under ORS 196.825(1) due to the project’s location and the known activities at that location. Specifically, DSL reasoned that there would be no unreason- able interference with the use of the state’s waters for nav- igation, fishing, and public recreation because the “project is not located on a state-owned waterway, and there are no known public fishing or public recreation activities on the site.” CFRD petitioned for judicial review in our court. On review, relying on case law construing a prior version of ORS 196.825, we agreed with CFRD that DSL’s order approving the permit rested on an erroneous interpretation of ORS 196.825. Citizens for Resp. Devel. In The Dalles v. Wal- Mart, 295 Or App 310, 321, 433 P3d 364 (2018) (CFRD I). We concluded that, correctly construed, ORS 196.825 “requires DSL to find that the public need for a proposed project pre- dominates before DSL has the authority to issue a wetland fill and removal permit for the project.” Id. Therefore, “[b] ecause DSL found it was inconclusive whether the proj- ect would address a public need, DSL lacked authority to issue the permit.” Id. We therefore reversed DSL’s order and remanded to the agency. Id. DSL petitioned the Supreme Court for review of our decision, and the Supreme Court allowed review. On review, the court affirmed our decision to remand the case to DSL but disagreed with our interpretation of ORS 196.825. The court rejected our “premise that ORS 196.825 conditions the issuance of every permit on a finding that the proposed proj- ect will serve a ‘public need.’ ” Citizens for Resp. Devel. In The Dalles v. Wal-Mart, 366 Or 272, 274, 461 P3d 956 (2020) (CFRD II). Instead, the court concluded that ORS 196.825(1) requires that “if DSL finds that the proposed fill will ‘interfere with the paramount policy of this state to preserve the use of its waters for navigation, fishing, and public recreation,’ then Cite as 350 Or App 183(2026) 187

DSL must determine whether the interference is ‘unrea- sonable’ by weighing the interference with public uses for which ‘waters of the state’ are preserved against the expanded list of public-benefit considerations [in ORS 196.825(3)]” Id. at 285-86. The court clarified that, as a result, there are “two components” that DSL must address to determine if its authority is limited by ORS 196.825(1)(b): “either the project will not interfere with the public uses for which ‘waters of the state’ are preserved, or the interference is ‘not unrea- sonable’ when weighed against the range of public benefits.” Id. at 286. The court determined that DSL’s order did not reflect that it found either component satisfied. Id. The court explained that DSL’s assertion that the project would not unreasonably interfere with the use of the state’s waters in light of the project site’s location and usage was insufficient because the agency acknowledged that fill or removal “of a private waterway on private land ‘conceivably’ could ‘impact what happens on a downstream [public] river.’ ” Id.

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