Idaho Watersheds Project, Inc. v. State Bd. of Land Com'rs
| Citation | 128 Idaho 761,918 P.2d 1206 |
| Decision Date | 20 June 1996 |
| Docket Number | No. 21774,21774 |
| Parties | The IDAHO WATERSHEDS PROJECT, INC., Plaintiff-Appellant, v. STATE BOARD OF LAND COMMISSIONERS, Comprised of Phil Batt, Governor, Pete T. Cenarrusa, Secretary of State, Alan G. Lance, Attorney General, J.D. Williams, State Controller, and Anne C. Fox, Superintendent of Public Instruction, all in their official capacities, Defendants-Respondents. Boise, April 1996 Term |
| Court | United States State Supreme Court of Idaho |
Alan G. Lance, Attorney General; Stephanie A. Balzarini, Deputy Attorney General (argued), Boise, for respondents.
This case involves two competing applications to lease 640 acres of public land owned by the State of Idaho and located in Custer County. The public land in controversy is a section of land that was granted to the State of Idaho by the United States for the support of the common schools. The State Board of Land Commissioners (Board) was created by article IX, section 7 of the Idaho Constitution, for the purpose of directing, controlling, and disposing of such public lands of the State of Idaho. The appellant, the Idaho Watersheds Project, Inc. (IWP), is an Idaho non-profit corporation. IWP's purpose is to lease lands to protect and restore watersheds and riparian areas.
On September 23, 1993, William E. Ingram (Ingram), filed an application to renew his lease of 640 acres of public lands owned by the state with the Idaho Department of Lands (Department). On September 30, 1993, IWP timely filed an application with the Department to lease the same 640 acres of state public land.
On December 21, 1993, the Board held a meeting in which the conflicting applications of Ingram and IWP were discussed. During the December 21, 1993 meeting, Tracy Behrens, a range management specialist for the Department, advised the Board that: (1) Ingram currently leased 52 AUMs of state land on a state parcel in Custer County; (2) the lease expired December 31, 1993; (3) both Ingram and IWP filed timely applications to lease the 640 acres; (4) the 640 acres was grazed in conjunction with the Herd Creek Cattle and Horse Allotment Management Plan (Plan), which was administered by the BLM 1; (5) IWP's intent in acquiring the lease was to fence off the riparian area to improve the habitat for the salmon; (6) IWP submitted an affidavit, through IWP's president, Jon Marvel, stating that IWP had received a copy of the Plan and would comply with the Plan; and (7) the BLM's response to IWP's attempt to lease and fence off a portion of the 640 acres was that as long as fencing was restricted to the south side of the Herd Creek Road, there would be no substantial impact on the overall management of the allotment. Behrens informed the Board that the Department's recommendation was that both lease applications be accepted and the Department proceed with an auction.
During the Board's December 21, 1993 meeting, Jon Marvel addressed the Board on behalf of IWP. Marvel explained that Lake Creek, that runs through the 640 acres of state public land, provides spawning habitat for the threatened Chinook salmon, and if IWP was successful in acquiring the lease of the 640 acres, IWP would propose to fence one mile of Lake Creek south of the Herd Lake road to exclude livestock. Marvel represented to the Board that IWP would abide by the Plan. Marvel provided the Board with letters from the Forest Service and the BLM that indicated IWP's plans would not interfere with the administration of the Plan. Marvel concluded requesting a conflict auction for the lease of the 640 acres of state public land.
Ingram's attorney responded that Ingram disagreed that IWP's plan would not interfere with the administration of the Plan. The Board was advised by Ingram's attorney that the 640 acre lease was a valued part of Ingram's ranching operation, but that the economic reality was that Ingram could not justify paying an increased fee for the grazing lease, and that Ingram would not participate in the bidding process, at least with any great variation from what Ingram was currently paying.
The Board voted to instruct the Department to hold a conflict auction, pursuant to the mandate of section 58-310 of the Idaho Code. On January 11, 1994, the Department On January 12, 1994, Ingram attempted to appeal the decision to hold a conflict auction. The Department rejected Ingram's appeal, on the basis that Ingram did not have a right to appeal the conflict auction until after the auction was held and if Ingram was aggrieved in some manner by the proceedings. 2
[128 Idaho 763] notified Ingram and IWP by certified mail that the Department would be conducting a lease auction for the 640 acres, pursuant to I.C. § 58-310, on Friday, January 28, 1994, at 11:30 a.m. at the Department's office in Idaho Falls. The purpose of the auction was to settle the conflict over the two parties' lease applications for Section 16, Township 9 North, Range 19 East, B.M. for 52 AUMs.
On January 26, 1994, the Department sent a letter to Ingram and IWP, confirming that the conflict auction would take place at 11:30 a.m. on January 28, 1994, at the Department's Idaho Falls office. The January 26, 1994 letter, from the Department, also informed Ingram and IWP that all relevant issues and administrative appeals would be considered during the Board's February meeting.
The conflict auction took place on January 28, 1994. Both Ingram and IWP appeared at the auction. Ingram did not make a bid and IWP made the sole bid of $30.00.
On February 4, 1994, Ingram appealed the auction and award of the lease to IWP. Ingram's grounds for appealing the conflict auction were: (1) The Board members did not understand the significance of the 640 acres of state public land relative to Ingram's overall use of the entire allotment; (2) the Board members were not provided the Plan that specifically stated that the Plan would not work unless BLM and state sections were incorporated to form units; (3) IWP's fencing plan would cause extreme and undue degradation to the state land grazing resource as well as the adjoining BLM lands; and (4) that the Ingram family ranch was a long-term, stable, and contributing factor to the local economy.
On February 7, 1994, the BLM sent Ingram a letter, regarding the BLM's previous letter to Jon Marvel dated December 13, 1993. The BLM's February 7, 1994 letter, informed Ingram that the BLM had reversed its prior opinion, regarding IWP's proposal to fence a portion of Lake Creek on the 640 acres of state public land. After hearing Ingram's detailed explanation, the BLM agreed that a fence on the 640 acres of state public land would create a difficult situation; an increased concentration of livestock around the fence would no doubt create negative impacts on BLM lands and consequently substantially impact the management of the Herd Lake Unit of the Allotment. On February 7, 1994, the Department sent Ingram a letter that restated the Department's continuing belief that the fence proposed by IWP would not pose a serious management impact to the allotment.
On February 8, 1994, the Board determined that the lease of the 640 acres of state public land would go to Ingram. The Board's decision was based upon the long standing lease relationship Ingram had with the Board and that the 640 acres was a part of a larger grazing allotment covered by a multi-agency grazing management plan. Ingram was granted a ten year lease of the 640 acres.
On March 8, 1994, IWP timely appealed to the district court the decision of the Board awarding Ingram the lease for the 640 acres. On March 24, 1994, the district court issued an order concluding that, pursuant to I.R.C.P. 83(u) and I.A.R. 34, the district court would determine IWP's appeal upon the record and not as a trial de novo.
On October 25, 1994, the district court affirmed the decision of the Board. IWP appealed the Board's decision to this Court.
Idaho Code § 67-5279 states this Court's standard of review when reviewing a Idaho Code § 67-5279 provides that this Court is not to substitute its judgment for that of the Board as to the weight of the evidence on questions of fact. I.C. § 67-5279(1). The Court must affirm the Board's action unless the Court determines that the Board's findings, inferences, conclusions, or decisions, are:
[128 Idaho 764] decision of the Board. 3 Idaho Code § 67-5279 applies when the Court is reviewing a decision of an "agency." An "agency" is defined as "each state board, commission, department or officer authorized by law to make rules or to determine contested cases...." I.C. § 67-5201(2). The Board is an "agency" as defined by I.C. § 67-5201(2) and the Rules of Practice and Procedure Before the State Board of Land Commissioners. 4
(a) in violation of constitutional or statutory provisions;
(b) in excess of the statutory authority of the agency;
(c) made upon unlawful procedure;
(d) not supported by substantial evidence on the record as a whole; or
(e) arbitrary, capricious, or an abuse of discretion.
I.C. § 67-5279(3). This Court must affirm the Board's decision unless substantial rights of the appellant have been prejudiced. I.C. § 67-5279(4).
IWP contends that the Board violated article IX, section 8 of the Idaho Constitution by leasing the 640 acres of state public land without requiring a competitive bid for the lease of the state public land. IWP argues that a party must actually place a bid at a conflict auction, in order to be considered a qualified applicant for a lease of state public lands. We agree.
Article IX, section 8 of the Idaho Constitution describes the Board's duties as follows:
It shall be the duty of the [Board] to provide for the location, protection, sale or rental of all the lands ... in such manner as will secure the maximum long...
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