In Re Contested Case Hearing on the Water United Statese Permit Application Originally Filed by Kukui (Molokai), Inc.

431 P.3d 807, 143 Haw. 434
CourtHawaii Supreme Court
DecidedDecember 10, 2018
DocketSCOT-17-0000184
StatusPublished
Cited by2 cases

This text of 431 P.3d 807 (In Re Contested Case Hearing on the Water United Statese Permit Application Originally Filed by Kukui (Molokai), Inc.) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Contested Case Hearing on the Water United Statese Permit Application Originally Filed by Kukui (Molokai), Inc., 431 P.3d 807, 143 Haw. 434 (haw 2018).

Opinion

OPINION OF THE COURT BY POLLACK, J.

When this court first considered this case over a decade ago, we vacated the issuance of two water use permits and remanded the matter to the State of Hawai'i Commission on Water Resource Management (Commission) for further proceedings. On remand, parties indicating that they were the applicant's successors in interest submitted a letter to the Commission stating that they lacked the financial resources to continue to pursue the case. When these same parties filed a new water use application years later, the Commission initially treated it as a continuation of the remanded case before concluding that the letter had constituted a waiver of the applicants' right to continue the original proceedings. The applicants now challenge this conclusion, arguing that the letter was at best ambiguous as to their intention to relinquish the rights at issue. Because we hold that the Commission did not err in finding that the letter was a clear and unambiguous waiver of the right to proceed on the contested case, we affirm.

I. FACTS AND PROCEDURAL HISTORY

A. In Re Kukui (Molokai), Inc.

On May 13, 1992, the Commission designated Moloka'i as a water management area. 1 The designation took effect on July 15, 1992, thereby triggering a one-year period during which all existing users of water from the area's aquifers were required to submit applications for existing water use permits, which if granted would entitle the permittee to continue utilizing the approved amount of water. See HRS § 174C-50(c) (1993). Approximately a year later, on June 8, 1993, the Commission accepted a joint existing water use permit application submitted by Moloka'i Irrigation System and Moloka'i Ranch that sought to pump water from Well No. 0901-01 (Well 17). 2 In 1993, however, ownership of the land overlying Well 17 was transferred to Kukui (Moloka'i), Inc. (Kukui). 3

In light of this transfer, Kukui submitted its own existing use application on December 15, 1993, seeking to divert 2 million gallons of water a day (gpd) from Well 17. Although the statutory one-year period for submitting existing use applications had expired, the Commission treated Kukui's application as timely, considering it an amendment to the existing use application submitted by Moloka'i Irrigation System and Moloka'i Ranch rather than as a new application.

After several revisions, the Commission responded to Kukui's application on March 14, 1995, by authorizing an interim use permit of 871,420 gpd and deferring final action until all existing uses could be established. Approximately a year later, the Commission reviewed a staff recommendation to amend the interim permit to increase Kukui's allowable withdrawal to 1.169 million gpd. The Commission rejected the recommendation and reaffirmed the March 14, 1995 interim existing use allocation of 871,420 gpd. Kukui requested a contested case hearing challenging this decision.

Prior to commencement of the contested case hearing, the Department of Hawaiian Home Lands (DHHL), the Office of Hawaiian Affairs (OHA), and individuals Sarah Sykes, Judy Caparida, and Georgina Kuahuia were granted permission to intervene. The hearing was held over the course of eight days beginning on November 23, 1998. The Commission issued its final "Findings of Fact, Conclusions of Law, and Decision and Order" on December 19, 2001 (2001 Order), awarding Kukui an existing use permit authorizing the withdrawal of 936,000 gpd and a proposed new use permit authorizing the withdrawal of an additional 82,000 gpd.

DHHL, OHA, Caparida, and Kuahuia (collectively, the Intervenors) appealed from the 2001 Order. During the pendency of the appeal, Kaluakoi Land LLC (Kaluakoi Land), a wholly-owned subsidiary of Molokai Properties Limited (Molokai Properties), acquired the assets of Kukui and was substituted as a party for Kukui.

On appeal, this court held that, because Kukui's request for an existing use permit should have been treated as a new existing use application rather than an amendment to the original application, it was untimely, thus rendering the existing use permit void. In the Matter of the Contested Case Hearing on the Water Use Permit Application Filed by Kukui (Molokai), Inc. , 116 Hawai'i 481 , 501, 174 P.3d 320 , 340 (2007) (hereafter In Re Kukui (Molokai), Inc. ). Accordingly, the existing water uses at issue were "presumed abandoned," we concluded, and Kaluakoi Land was required to apply for a new use permit under HRS § 174C-51 if it sought to " 'revive' these expired uses." 4 Id. This court further held that the Commission had erred in granting Kukui the additional proposed new use permit because the Commission had, inter alia, failed to apply the requisite level of scrutiny and impermissibly shifted the burden of demonstrating that the use would interfere with constitutional public trust purposes onto the intervenors. Id. at 506-08 , 174 P.3d at 345-47 . We therefore vacated the Commission's 2001 Order and remanded the case for further proceedings consistent with the opinion.

B. Remand Before the Commission

On remand, the Commission issued a "Minute Order Setting Status Conference" on February 25, 2008, to which Kaluakoi Land did not respond. 5 In its place, Molokai Properties filed a joint Status Conference Statement with its wholly-owned subsidiaries Kaluakoi Water LLC (Kaluakoi Water) 6 and Molokai Public Utilities, Inc. (MPU). 7 The Intervenors also filed a Joint Status Conference Statement. The Commission held the status conference on March 3, 2008, to discuss the hearing on remand. On March 10, 2008, the Commission directed the Intervenors to submit "memoranda regarding their respective position[s] on the scope of the hearing on remand" by May 2, 2008.

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Cite This Page — Counsel Stack

Bluebook (online)
431 P.3d 807, 143 Haw. 434, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-contested-case-hearing-on-the-water-united-statese-permit-application-haw-2018.