Jack Scott Farms, Inc. v. Dept. of State Lands

336 Or. App. 139
Court of Appeals of Oregon·Decided November 14, 2024·No. A178900·Published·Cited by 1 cases

Opinion

No. 809 November 14, 2024 139

IN THE COURT OF APPEALS OF THE STATE OF OREGON

JACK SCOTT FARMS, INC.,

Petitioner,

v.

DEPARTMENT OF STATE LANDS, Respondent.

Department of State Lands WD20190640;

A178900

Argued November 7, 2023. Matthew A. Martin argued the cause for petitioner. Also on the briefs were T. Beau Ellis and Vial Fotheringham LLP.

Carson L. Whitehead, Assistant Attorney General, argued the cause for respondent. Also on the brief were Ellen F. Rosenblum, Attorney General, and Benjamin Gutman, Solicitor General.

Before Shorr, Presiding Judge, Pagán, Judge, and Mooney, Senior Judge.

SHORR, P. J. Affirmed.

140 Jack Scott Farms, Inc. v. Dept. of State Lands

SHORR, P. J. Petitioner Jack Scott Farms, Inc. petitions for judicial review of a final order of the Oregon Department of State Lands (DSL), in which DSL asserts regulatory jurisdiction over wetland on petitioner’s property under Oregon’s Removal-Fill Law, ORS 196.800 to 196.990. Petitioner contends that the order lacks substantial evidence and substantial reason and seeks reversal of the order. Its three assignments of error pertain to what it describes as “three distinct features” on petitioner’s property : a historic pond, an irrigation ditch, and a connecting ditch between the two. We conclude that the order is supported by substantial evidence and substantial reason and, therefore, affirm.

We review an agency’s final order for substantial evidence and errors of law. ORS 183.482(8)(a), (c). “Substantial evidence exists to support a finding of fact when the record, viewed as a whole, would permit a reasonable person to make that finding.” ORS 183.482(8)(c). “Implicit in the requirement that orders be supported by substantial evidence is an additional requirement that they be supported by substantial reason. An order is supported by substantial reason when it articulates a rational connection between the facts and the legal conclusions it draws from them.” SAIF v. Coria, 371 Or 1, 12, 528 P3d 785 (2023) (citation, internal quotation marks, and brackets omitted). We are bound by DSL’s findings of historical fact if they are supported by substantial evidence in the record. Id. at 4.

We begin with the regulatory framework. As relevant here, under ORS 196.810(1)(a) (2015), amended by Or Laws 2023, ch 403, §§6, 7, “a person may not remove any material from the beds or banks of any waters of this state or fill any waters of this state without a permit issued under the authority of the Director of the Department of State Lands.” DSL has the authority to take action to enforce the rules on unpermitted removal and fill occurring in any of the waters of this state. ORS 196.860(1), (3). The definition of “waters of this state” is

Cite as 336 Or App 139 (2024) 141

“all natural waterways, tidal and nontidal bays, intermittent streams, constantly flowing streams, lakes, wetlands, that portion of the Pacific Ocean that is in the boundaries of this state, all other navigable and nonnavigable bodies of water in this state and those portions of the ocean shore, as defined in ORS 390.605, where removal or fill activities are regulated under a state-assumed permit program as provided in 33 U.S.C. 1344(g) of the Federal Water Pollution Control Act, as amended.” ORS 196.800(15) (2013), amended by Or Laws 2023, ch 403, §§13, 14; OAR 141-085-0510(107). “ ‘Wetlands’ means those areas that are inundated or saturated by surface or ground water at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions .” ORS 196.800(17) (2013). “Any person who violates any provision of ORS 196.600 to 196.921 or any rule, order or permit adopted or issued under ORS 196.600 to 196.921 shall be subject to a civil penalty in an amount to be determined by the Director of the Department of State Lands of not more than $10,000 per day of violation.” ORS 196.890.

OAR chapter 141, division 90, contains the rules for wetland delineation report requirements and for jurisdictional determinations for the purpose of regulating fill and removal within waters of this state. A “jurisdictional determination ” (JD) is defined as:

“a written decision by the Department that waters of this state subject to regulation and authorization requirements [of certain OARs] are present or not present within a study area. The JD may include a delineation of the geographic boundaries of the area subject to state jurisdiction. For example, a JD may include the location of a wetland boundary or the location of the ordinary high water line (ordinary high water mark) of a waterway. A JD may, but does not necessarily, include a determination that a particular activity in a water of this state is subject to authorization requirements. The decision record includes the basis of the jurisdictional determination and is a final order subject to reconsideration according to the provisions in [OAR] 141-090-0050.”

142 Jack Scott Farms, Inc. v. Dept. of State Lands

OAR 141-090-0020(20). A landowner may seek reconsideration of a JD and then request review through a contested case hearing. OAR 141-090-0050(1), (4).

We turn to the facts of this case.1 Petitioner purchased the subject property in 2013 to expand its hazelnut farming operations. As part of preparing the land for farming , petitioner excavated and graded the land. Subsequently, DSL received a report of excavation work at the subject property possibly in violation of Oregon’s Removal-Fill Law. DSL employees inspected the property and determined that approximately four and one-half acres of wetland existed on the subject property prior to grading. In August 2019, DSL issued a Proposed Order for Corrective Action and Civil Penalty, finding that petitioner had violated Oregon’s Removal-Fill Law. The proposed order required petitioner to, among other things, engage a wetland consultant to prepare a wetland delineation report and submit it to DSL.2 Petitioner did not appeal that proposed order and it became final as a matter of law.

Petitioner hired Terra Science, Inc. (TSI) to perform the wetland delineation and prepare the report. TSI provided a report dated December 9, 2019, to DSL. TSI confirmed the existence of wetlands and concluded that 2.33 acres of “pre-disturbance aquatic features” existed on the property. The report summary included two features: “excavated drainage” in the amount of 0.36 acres and “historically excavated pond” in the amount of 2.3 acres. A map of the subject area is below; within the study area boundary, the solid line that crosses diagonally near the bottom of map represents the excavated drainage and the dotted area represents the pond.

1 We provide additional facts, as necessary, in our discussion of each of petitioner ’s assignments of error.

2 A wetland delineation report is:

“a written document that contains the methods, data, conclusions, and maps used to determine if wetlands and other waters of this state are present within a study area and, if so, describes and maps their locations and geographic extent. A wetland determination report documenting the presence or absence of waters of this state is included within this definition.” OAR 141-090-0020(45).

Cite as 336 Or App 139 (2024) 143

DSL reviewed the report to determine, in part, whether the wetland features identified fell within the jurisdiction of DSL. DSL ultimately accepted TSI’s wetland delineation with certain alterations and, in April 2020, issued a jurisdictional determination concurring with TSI’s wetland identification and finding that the wetlands on petitioner’s property fell within DSL jurisdiction and were subject to the Removal-Fill Law.

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Jack Scott Farms, Inc. v. Dept. of State Lands, 336 Or. App. 139 (Or. Ct. App. 2024).

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Jack Scott Farms, Inc. v. Dept. of State Lands
336 Or. App. 139 (Court of Appeals of Oregon, 2024)