Offshore Systems-Kenai v. State, Department of Transportation & Public Facilities

282 P.3d 348, 2012 WL 3055126, 2012 Alas. LEXIS 112
CourtAlaska Supreme Court
DecidedJuly 27, 2012
DocketNo. S-13994
StatusPublished
Cited by14 cases

This text of 282 P.3d 348 (Offshore Systems-Kenai 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
Offshore Systems-Kenai v. State, Department of Transportation & Public Facilities, 282 P.3d 348, 2012 WL 3055126, 2012 Alas. LEXIS 112 (Ala. 2012).

Opinion

[351]*351OPINION

STOWERS, Justice.

I. INTRODUCTION

Offshore Systems-Kenai (Offshore) operates a commercial dock facility on Cook Inlet in the Kenai Peninsula Borough (Borough). Nikishka Beach Road traverses Offshore's property. The public has used this road to access the beach since the 1950s. In 2007 Offshore installed a gate blocking the road. The State and the Borough sought an injunetion against Offshore, alleging a public right-of-way or prescriptive easement exists over Nikishka Beach Road.1 Offshore counterclaimed for a declaratory judgment quieting title to its property. The parties disputed the length and history of Nikishka Beach Road.

The superior court concluded that Nikish-ka Beach Road provided public access to the beach on several alternative grounds, ruling: (1) Nikishka Beach Road was a public highway under the 1959 federal deed conveying the road to the State and the road extended all the way to the beach, although the location of the road had shifted over time; (2) the 1980 patent conveying the surrounding property from the State to the Borough reserved a separate public access easement to and along the beach, and that easement was located over Nikishka Beach Road; and (8) the public had established a prescriptive easement over the road for access to the beach. Offshore appeals.

Because we affirm the superior court's ruling that the 1980 patent reserved a valid easement for public access to the shoreline of Cook Inlet, and hold the superior court had the authority to locate that easement over Nikishka Beach Road, we do not address the court's alternative rulings. We reverse and remand the award of attorney's fees to the Borough.

II. FACTS AND PROCEEDINGS

A. Facts

Offshore owns three parcels of property in Section 836, Township 8 North, Range 12 West of the Seward Meridian (Section 86). Lots 1 and 3 are adjacent to the shoreline of Cook Inlet along their northern boundaries. Lot 2 is directly south of Lot 1 and does not contain any shoreline.

Nikishka Beach Road branches off from the Kenai Spur Highway and ends on Off shore's property. At a bluff above the shoreline, the road splits into a "Y" intersection. One branch proceeds to the right or north, providing access to the north beach, and the other branch proceeds to the left or south, providing access to Offshore's dock and the south beach.2 The parties and superior court refer to the north branch as the "beach access road" and the south branch as the "dock access road."

A homesteader named Mack McGahan first plowed Nikishka Beach Road through Section 36 in the early 19508. This road was the predecessor to the current beach access road. McGahan's son and nephews testified that local residents have used the road to access the beach for commercial fishing and recreational purposes since it was first constructed.

The federal government soon accepted responsibility for Nikishka Beach Road. A 1954 report from the federal Alaska Road Commission stated: "Set ditch and slope stakes Nikishka No. 2 Beach Road." A 1957 map from the U.S. Bureau of Public Roads shows Nikishka Beach Road extending from the Kenai Spur Highway (formerly known as Route 490) to the shoreline. In 1959 the federal government conveyed its interest in all public highways, including Nikishka Beach Road, to the State by quitclaim deed. The deed described Nikishka Beach Road as reaching "[fJrom a point on FAS Route 490 approx. 15.5 miles north of the Village of [352]*352Kenai, north to Nikishka Beach. Length 0.8 mile[s]."

The federal government conveyed Section 36 to the State after its admission to the Union in 1959. In the 1960s the State entered into a series of leases for Lots 1, 2, and 3 in Section 36 with James Arness, a local resident, and these leases acknowledged Nik-ishka Beach Road as a public road providing access to the beach. In 1960 Arness submitted his first lease application, which noted that improvements on the land included a "road, installed by bureau of public roads ... to beach." A 1961 appraisal report determining the rental value 'of Lot 1 stated it was "traversed by the Nikishka #2 State road, which leads through [the property] and offers a road approach to the beach." The report also included a drawing showing Nik-ishka Beach Road extending from the bluff to the shoreline in a northeasterly direction. In 1962 Arness entered into a five-year lease for Lot 1 that provided "the Lessee shall not prevent the public from using the Nikishka Beach Road."

By 1963 Arness had constructed a dock on Lot 1 and an access road connecting the dock to Nikishka Beach Road. The public began using the dock access road to travel from the bluff down to the beach shortly after that road was constructed.

In 1966, as part of a project to widen and pave Nikishka Beach Road, the State issued highway right-of-way permit ADL 82264. This right-of-way stopped short of the "Y" intersection and bluff. Shortly after issuing this permit, the State entered into 55-year leases with Arness for Lots 1 and 2. The lease for Lot 2 was subject to highway permit ADL 32264, and both leases were subject to "a 60 foot wide right-of-way for existing roads to the beach." 3

In 1980 the State conveyed Section 86 to the Borough by patent. The patent stated that the property was subject to a 50-foot wide public easement for access to and along the shoreline of Cook Inlet, and provided:

Said public access easement shall be identified by the [Borough] and shall be subject to the covenant that no development or conveyance shall occur on the land conveyed by this patent until the [Borough] has platted such easements and formally notified the [State] of the location of such public access easements.

The Borough never located or platted this easement.

The Arness leases were ultimately assigned to Offshore in 1985. By that time the original beach access road had become overgrown, and the dock access road had fallen into disrepair. Offshore improved the dock facilities and reconstructed the dock access road with a gravel surface and a gentler grade. Offshore also reconstructed the beach access road in order to obtain gravel from the north beach. The public began using the beach access road to access the north beach at that time.

In 1990 the Borough sold Lots 1, 2, and 3 to Offshore by quitclaim deed. The deed did not specifically mention Nikishka Beach Road or a public access easement, but contained a general reservation clause stating the conveyance was subject to "[rJights and reservations of record and any easements . of record or ascertainable by physical inspection." The public has used both the beach access road and the dock access road to access the beach since Offshore purchased the property.

Offshore did not object to the public's use of these roads until 2007 when, in response to security requirements imposed by the Coast Guard, it installed a gate and guard shack across Nikishka Beach Road shortly before the bluff and "Y" intersection. The State notified Offshore that it was illegally obstructing a public right-of-way. Offshore refused to remove the gate.

B. Proceedings

In 2008 the State filed a complaint against Offshore providing three alternative arguments: (1) Nikishka Beach Road had existed [353]

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Cite This Page — Counsel Stack

Bluebook (online)
282 P.3d 348, 2012 WL 3055126, 2012 Alas. LEXIS 112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/offshore-systems-kenai-v-state-department-of-transportation-public-alaska-2012.