As used in this chapter, unless the context
requires otherwise:
(1) “Department” means the Department of State Lands.
(2) “Director” means the Director of the Department of State Lands.
(3) “Line of ordinary high water” means the line on the bank or
shore to which the high water ordinarily rises annually in season.
(4) “Line of ordinary low water” means the line on the bank or
shore to which the low water ordinarily recedes annually in season.
(5) “Land” includes water, water rights, easements of every nature
and all appurtenances to land.
(6) “Material” includes gravel, rock, sand and silt, but does not
include hard minerals subject to ORS 274.610, or oil, gas and sulphur
subject to ORS 274.705 to 274.860.
(7) “Submerged lands,” except as provided in ORS 274.705, means
lands lying below the line of ordinary low water of all navigable waters
within the boundaries of this state as heretofore or hereafter
established, whether such waters are tidal or nontidal.
(8) “Submersible lands,” except as provided in ORS 274.705 means
lands lying between the line of ordinary high water and the line of
ordinary low water of all navigable waters and all islands, shore lands
or other such lands held by or granted to this state by virtue of her
sovereignty, wherever applicable, within the boundaries of this state as
heretofore or hereafter established, whether such waters or lands are
tidal or nontidal. [1967 c.421 §98 and 1967 c.616 §13; 1969 c.594 §31;
1991 c.217 §3; 2003 c.253 §20]
For purposes
of this chapter, when the lines of ordinary high or low water cannot be
determined by survey or inspection, then such lines shall be determined
by the use of the annual mean high or mean low water for the preceding
year. [1967 c.421 §99]
(1) The title to the submersible and submerged lands of all
navigable streams and lakes in this state now existing or which may have
been in existence in 1859 when the state was admitted to the Union, or at
any time since admission, and which has not become vested in any person,
is vested in the State of Oregon. The State of Oregon is the owner of the
submersible and submerged lands of such streams and lakes, and may use
and dispose of the same as provided by law.
(2) No person shall acquire any right, title or interest in or to
the submersible and submerged lands of any such navigable lakes, or any
part thereof, by reliction or otherwise, or by reason of the lowering or
drainage of the waters of such lakes, except as provided by statute.
[Formerly 274.420]The Willamette River at
mile 176.5 has been returned to its pre-1971 channel. The Legislative
Assembly finds that in the interests of the state’s ownership in the bed
of the Willamette River and protecting the public rights of navigation,
fisheries, recreation and wildlife habitat, the river at that point
should be allowed to remain at its present location. The Legislative
Assembly further finds that the construction of the dike at river mile
176.5 which returned the river to its pre-1971 channel is hereby approved
as being in accordance with the intent and purposes of ORS 780.010.
Nothing in this section is intended to imply a continuing obligation by
the state to maintain the river in any location or waive the requirements
of ORS 196.600 to 196.905. [1975 c.412 §2](1) Except as provided in ORS 274.043 (1) to (3), in ORS
274.085 for leases of submersible lands acquired as an investment for the
Common School Fund, in ORS 274.530 (1) for leases of submersible lands of
less than one year’s duration, in ORS 274.530 (3) for licenses of less
than three years’ duration and in subsections (2) and (3) of this
section, submersible lands owned by the State of Oregon may be leased
only to the highest bidder, bidding at least the minimum amount
designated by the Department of State Lands under subsection (6) of this
section for the lease of any such lands, after being advertised not less
than once each week for two successive weeks in one or more newspapers of
general circulation in the county in which the lands are situated.
However, any owner of lands abutting or fronting on such submersible
lands shall have the preference right to lease the lands unless the
submersible lands are occupied by a person claiming the right of
occupancy under a conveyance recorded before January 1, 1981, from the
present owner or predecessor in interest of lands abutting or fronting
the submersible lands. If so, the occupant of the submersible lands shall
have the preference right to lease the lands. An easement or license
related to utility service on the submersible lands does not establish a
preference right under this subsection. The lands shall be leased for the
amount designated by the department under subsection (6) of this section
as the minimum amount for the lease of any such lands. The preference
provided in this subsection applies to any lease of submersible land for
one year or more offered or issued under ORS 274.530. The preference
provided in this subsection does not apply to any lease offered or issued
by the department under ORS 274.705 to 274.860.
(2) Submersible lands owned by the State of Oregon that are
determined by the State Land Board to be available for sale may be sold
only to the highest bidder, after being advertised not less than once
each week for two successive weeks in one or more newspapers of general
circulation in the county in which the lands are situated. However:
(a) No such lands shall be sold for less than for a fair appraised
value as determined by an appraiser appointed by the department.
(b) All sales of such submersible lands shall be approved by the
State Land Board.
(c) Any owner of lands abutting or fronting on such submersible
lands shall have the preference right to purchase such lands for the fair
appraised value provided that the sale of such lands be approved by the
State Land Board.
(3)(a) The department may grant, to any person holding a permit
from the Water Resources Director authorizing the impoundment for
beneficial use of the waters of any lake or stream, easements over
submersible lands for flowage and storage of waters, and for the
construction, maintenance and operation of any structures or facilities
necessary for the use of the water under the terms of the permit upon
payment of just compensation by the grantee.
(b) In addition to the authority of the department under paragraph
(a) of this subsection to grant easements over submersible lands, a
person holding a water right permit, water right certificate, proposed or
final order approving a water right permit or court decree evidencing a
water right may occupy state-owned submersible lands for the
construction, maintenance and operation of any structure or facility
necessary for the use of water if the proposed use under the permit,
certificate, order or decree is for irrigation or domestic use. The
department may not charge for the occupation of state-owned submersible
lands pursuant to this paragraph, nor may the department require that a
person obtain written documentation to substantiate the permission
granted under this paragraph. Upon request by the Department of State
Lands, the Water Resources Department shall provide information to the
Department of State Lands regarding any change of use of the water right.
A person may continue to occupy state-owned submersible lands pursuant to
this paragraph until:
(A) The water right permit is canceled pursuant to ORS 537.260;
(B) The water right is canceled pursuant to ORS 540.641; or
(C) The water is no longer being applied to irrigation or domestic
use.
(c) An easement or the permission granted under this subsection may
not be construed to be a sale or lease of the submersible lands within
the meaning of subsections (1) and (2) of this section.
(d) A person granted an easement or permission to use or occupy
state-owned submersible lands under this subsection shall indemnify and
hold harmless the state from all liability and claims arising from or
attributable to the use or occupation.
(4) All easements or the permission granted pursuant to subsection
(3) of this section shall be subject to conditions that will ensure the
safety of the public and the preservation of economic, scenic and
recreational values and to lawful rules promulgated by state agencies
affected by the activities of the grantee.
(5) Nothing in this section affects the provisions of ORS 509.505,
509.510, 511.606 to 511.806, 622.270 or 622.320 to 622.350.
(6) The Department of State Lands shall designate the minimum
acceptable amount for the lease of any submersible lands otherwise
authorized by law, other than any lease offered or issued by the
department under ORS 274.705 to 274.860.
(7) For the purpose of sale, the value of state-owned submersible
lands shall be determined by an appraiser appointed by the department.
(8) The act of any person entering into an agreement with the
department under this section or ORS 274.530 for the lease of submersible
lands shall not be considered a waiver by such person of any claim of
ownership in the submersible lands described in the agreement. [Amended
by 1961 c.37 §1; subsection (3) enacted as 1961 c.37 §2; 1967 c.421 §104;
1969 c.594 §32; subsection (4) enacted as 1969 c.675 §17; 1975 c.547 §1;
1975 c.765 §2; 1979 c.793 §3; 1981 c.158 §1; 1981 c.432 §1; 1991 c.217
§5; 1995 c.113 §2; 2003 c.350 §1] (1) A privately owned
float or dock occupying an area of 200 square feet or less is exempt from
the leasing requirements of ORS 274.040 if:
(a) The structure belongs to the immediately adjacent riparian
landowner; and
(b) The float or dock is uncovered, unenclosed and open on all
sides.
(2) A privately owned float or dock constructed prior to September
29, 1991, and exempted under ORS 274.042 (1989 Edition) is exempt from
the provisions of ORS 274.040.
(3) The Department of State Lands may, by rule, provide for
additional exemptions to the leasing requirements of ORS 274.040.
(4) Any float or dock described in subsections (1) to (3) of this
section shall be registered with the department. [Subsections (1) to (3)
enacted as 1991 c.521 §2 in lieu of 274.042; subsection (4) enacted as
1991 c.521 §6](1) Nothing in ORS 274.040 prevents the
Legislative Assembly from providing for regulation of the building of
wharves or other improvements in any bay, harbor or inlet of this state,
subject to ORS 780.060, or grants the exclusive right to any person to
use the natural oyster beds of this state.
(2) The grantee of any submersible lands under ORS 274.040 shall
hold the same subject to the easement of the public, under the provisions
and restrictions of law, to enter thereon and remove oysters and other
shell fish therefrom. [Amended by 1967 c.421 §105; 1969 c.594 §§33,33a]Whenever it appears to the State Land Board to be prudent
and to the financial benefit of the Common School Fund, the State Land
Board may acquire as an investment for the Common School Fund any parcel
of land, whether or not submerged, and submersible lands or formerly
submerged and submersible lands. The consideration for such acquisition
may be an exchange of other lands under the jurisdiction of the State
Land Board including submerged and submersible lands or formerly
submerged and submersible lands or cash or a combination of such lands
and cash. In leasing any lands acquired as an investment for the Common
School Fund, the board may use negotiation, competitive bidding,
solicitation of proposals or whatever procedure or combination of
procedures the board determines will maximize the financial benefit to
the Common School Fund. The board may determine on a case-by-case basis
what notice, publication or bidding procedures, if any, it wishes to use
in implementing its authority under this section. [1979 c.546 §1; 1981
c.158 §2]
As used in ORS
274.210 to 274.290, “reclamation” includes, but is not limited to,
irrigation. [1969 c.594 §36]The Department of State Lands on behalf of
the State of Oregon may enter into contracts for:
(1) The drainage of submersible and submerged lands adjoining or
underlying any lakes, marshes or swamps in this state, or for the
drainage of that part which is in this state of submersible and submerged
lands adjoining or underlying any lake, marsh or swamp lying partly in
this state and partly in another state, and for the reclamation of any
such lands; and
(2) The sale or disposal of such drained and reclaimed lands as
provided for in ORS 274.210 to 274.260. [Amended by 1967 c.421 §121; 1969
c.594 §37; 2001 c.104 §82] (1) Any
person desiring to enter into a contract to drain submersible and
submerged lands under ORS 274.210 to 274.260 and reclaim such lands shall
file with the Department of State Lands an application.
(2) The applicant, at the expense of the applicant and without any
cost or charge to the state, shall make the necessary surveys and prepare
a map of the lands proposed to be reclaimed. The map shall exhibit a plan
showing the area that is submersible or submerged and the mode of the
contemplated drainage and reclamation, and shall be accompanied by a list
of the lands proposed to be drained, with sufficient description to
identify the lands in accordance with rules promulgated by the department.
(3) The application shall contain an estimate of the cost of the
construction of the proposed system of drainage and reclamation. [Amended
by 1967 c.421 §122; 1969 c.594 §38](1) Upon receipt of the application, map and plan of
drainage and reclamation under ORS 274.220, the Department of State Lands
may require the Water Resources Director to make an investigation and
report at the expense of the applicant. If the project appears feasible
and desirable and such applicant responsible, the department may enter
into a contract with the applicant for construction of the drainage and
reclamation works.
(2) The applicant shall agree:
(a) To drain the submersible and submerged lands substantially in
accordance with the plans set forth in the contract;
(b) To make such proofs of reclamation as are required by the
department;
(c) To pay all costs incident to the contract and making of the
proof and any other expense connected therewith;
(d) That work will be commenced upon the ditches or other works
necessary for such drainage and reclamation at a time fixed by the
department and agreed upon in the contract;
(e) That by the end of the first year after the time fixed in the
contract for beginning such work, 10 percent of the necessary expenditure
will be made; and
(f) That this work will be prosecuted with due diligence until
complete and the required proof of reclamation is made.
(3) The department shall require a bond subject to its approval in
any sum it finds necessary to insure the faithful performance of the
contract. [Amended by 1967 c.421 §123; 1969 c.594 §39] (1)
Immediately upon execution of the contract, the contractor undertaking
the drainage and reclamation may enter upon the lands for the purpose of
reclaiming the same.
(2) The Department of State Lands shall fix the amount to which the
contractor is entitled for reclaiming the lands and shall also fix the
amount to be paid to the state for such lands. The department may permit
the contractor to sell or dispose of the lands at such price and upon
such terms as the department may fix in tracts not to exceed 640 acres to
any one person under such rules as the department may promulgate
governing disposal.
(3) Upon proof satisfactory to the department that the amount fixed
by the department as due for reclamation and the amount due the State of
Oregon has been fully paid, the department shall issue a quitclaim deed
for not more than 640 acres to the purchaser of such land. [Amended by
1967 c.421 §124; 1969 c.594 §40](1) Upon failure of any parties having contracts with the
state for construction of drainage and reclamation works to begin the
same within the time specified by the contract, or to complete the same
within the time or in accordance with the specifications of the contract,
the Department of State Lands shall give such parties written notice of
such failure. If the parties have failed to proceed with the work or to
conform to the specifications of the contract on or before the 60th day
after the sending of such notice, the contract and all work constructed
thereunder is forfeited to the state.
(2) Upon forfeiture, the department shall immediately give notice
once every week for a period of four weeks in some newspaper of general
circulation in the county in which the work is situated, and in one
newspaper of general circulation in this state, declaring the forfeiture
of the contract, and that upon a day stated in the notice proposals will
be received at the office of the department for the purchase of
incomplete works and for the completion of the contract, the time for
receiving such bids to be not earlier than the 60th day after issuance of
the last notice of the forfeiture. The sales shall be for cash to the
highest responsible bidder. The money received from the sale of the
partially completed works under this section shall first be applied to
the expenses incurred by the state in their forfeiture and disposal, and
any surplus shall be paid into the State Treasury and become a part of
the Common School Fund.
(3) The contractors may appeal from the decision of the department.
The appeal shall be heard in chambers by the circuit court of the
district wherein the head works of the drainage system are situated.
[Amended by 1967 c.421 §125] (1) The title of owners of land
riparian to lakes and ponds drained under ORS 274.210 to 274.260 extends
to only so much of the submersible or submerged lands adjoining or
underlying such lake or pond which may be reclaimed by such drainage as
is required to fill up the fractional subdivision or subdivisions of a
section which the owner owns and which are rendered fractional by such
lake or pond, and the title of such owner is so limited when the waters
of such lake or pond receding, because of such drainage, uncover the
submersible or submerged lands adjoining or underlying such lake or pond.
(2) This section shall not affect the right of riparian owners to
land acquired by natural accretion or reliction because of the gradual
and natural recession of the waters of the lake or pond to which the
lands of such owners are riparian. [Amended by 1967 c.421 §126; 1969
c.594 §41]SWAMP AND SUBMERSIBLE LANDS In addition to
its powers under ORS 274.210 to 274.260, the Department of State Lands
may cause reclamation surveys, plans and specifications to be made for
the reclaiming of any unsold swamp lands and submersible lands under the
control of the department. [Amended by 1967 c.421 §127; 1969 c.594 §42] The Department of State Lands may direct
the Water Resources Director to submit an estimate of the probable cost
of any survey, plan or specification of any contemplated reclamation
project under ORS 274.280. On consideration thereof, if the department
finds it to be in the interest of the state, the department shall direct
the Water Resources Director to cause such survey and plans and
specifications to be made and prepared. Upon receipt thereof the
department may proceed under the plan to the extent and in such manner as
it considers advisable. [Amended by 1967 c.421 §128]BEDS OF STREAMS, LAKES AND BAYS(Ownership) As used in ORS
274.400 to 274.412, “board” means the State Land Board. [1995 c.471 §2](1) The State Land Board has
exclusive jurisdiction to assert title to submerged or submersible lands
in navigable waterways on behalf of the State of Oregon.
(2) The board shall not in any manner assert title to submerged or
submersible lands in any waterway in this state unless either:
(a) A court having jurisdiction to determine title to real property
in Oregon has determined that the waterway or part of the waterway is
navigable and that determination is final; or
(b) The board has made a declaration under ORS 274.406 that
contemplates the assertion of such title. [1995 c.471 §3](1) On or before July 1, 1996, the State Land Board shall
adopt by rule a procedure that is consistent with ORS 274.400 to 274.412
by which the board and the Department of State Lands shall make a final
administrative determination as to whether a waterway or part of a
waterway is navigable, and if so, the extent of the interest claimed by
the State of Oregon in the navigable portion of the waterway.
(2) The rules adopted under subsection (1) of this section shall
incorporate the following procedures that the board and the department
shall follow:
(a) The board may direct the department to make a determination of
navigability if there is sufficient economic justification or if there is
a broad and substantial public interest. If the board so directs, the
department shall conduct a study to make the determination.
(b) The department shall provide prompt public notice to affected
property owners that the department is beginning the study.
(c) Upon completion of a study directed under paragraph (a) of this
subsection, the department shall prepare and submit to the board a draft
report setting forth the department’s findings and conclusions as to
whether the waterway or part of the waterway under study is navigable
and, if so, the extent of the State of Oregon’s interest in the waterway
or part of the waterway.
(d) The department shall provide appropriate prior public notice to
affected property owners and other interested parties concerning the
draft report. The notice shall provide an opportunity for a public
hearing in the area of the affected waterway and an opportunity for the
public to submit written comments on the draft report and to submit
testimony or other evidence concerning the navigability of the affected
waterway or part of the waterway or the State of Oregon’s interest in the
waterway or part of the waterway.
(e) Following the public hearing, the board may adopt the draft
report submitted by the department if substantial evidence in the record
supports the report’s findings and conclusions, or the board may refer
the report to the department for further action as determined by the
board. [1995 c.471 §4] (1) Upon the adoption
of a report by the State Land Board under ORS 274.404 (2)(e), the board
shall declare the nature and extent of the state’s claim to any interest
that remains or is vested in the State of Oregon with respect to any land
or waterway described in the report.
(2) Except as it may be modified upon review pursuant to ORS
274.412, a declaration made by the board pursuant to subsection (1) of
this section shall be binding upon the State of Oregon with respect to
the interest, if any, of the State of Oregon in any land or waterway
described in the declaration.
(3) Nothing contained in this section is intended to affect the
ability of a court of competent jurisdiction to make a determination with
respect to a private claim to or interest in real property. [1995 c.471
§5] Immediately following a
declaration made by the State Land Board pursuant to ORS 274.406, the
board shall:
(1) Cause reasonable public notice of the declaration to be given
to interested parties. The notice shall:
(a) Describe the land or waterway affected and the nature and
extent of the state’s claim. Such notice need not describe the land or
waterway in legal terms, but by the use of common descriptions or maps
shall be designed to identify the land or waterway in a manner
intelligible to the layperson and useful in establishing the exact
location of the state claim in relation to existing legal descriptions.
(b) Advise that any person aggrieved by the declaration may seek
judicial review of the declaration pursuant to ORS 274.412.
(2) Send to each owner of record of land described in the
declaration a copy of the declaration made with respect to the land and a
statement advising such owner that any aggrieved party may seek judicial
review of the declaration pursuant to ORS 274.412. [1995 c.471 §6] Any person
who is aggrieved by a declaration of the State Land Board made pursuant
to ORS 274.406 may seek judicial review of the declaration in the manner
provided in ORS chapter 183 for judicial review of final orders in other
than contested cases. For purposes of ORS 183.484 (2), the date three
days after the date of mailing of notice under ORS 274.408 (2) shall be
considered the date the order is served on the owner. [1995 c.471 §7] As used in ORS
274.430 to 274.520, “meandered lake” means a lake wholly or partly within
this state that has been meandered by the United States surveys. [1967
c.421 §131](1) All meandered lakes are declared to be navigable and
public waters. The waters thereof are declared to be of public character.
The title to the submersible and submerged lands of such meandered lakes,
which are not included in the valid terms of a grant or conveyance from
the State of Oregon, is vested in the State of Oregon.
(2) ORS 274.430 to 274.450 shall not apply to any nonnavigable
lakes lying within the boundaries of any duly organized and incorporated
drainage district which was in existence on January 1, 1921.
(3) Nothing in this section impairs the title of any upland or
riparian owner to or any vested rights in land which was added prior to
May 25, 1921, by natural accretion or reliction to the lands of such
upland owner. [Amended by 1967 c.421 §132](1)
There are no vested rights in or to any future accretion or reliction to
the lands of any upland or riparian owner on any meandered lake. No
person shall acquire any right, title or interest in or to the submerged
or submersible lands of any such lakes, or any part thereof, by
reliction, accretion or otherwise, or by reason of the lowering or
drainage of the waters of such lakes, except as provided by statute.
(2) Upon drainage of meandered lakes, the title of owners of land
riparian to such lakes drained under any law shall extend to so much of
the submersible and submerged lands reclaimed by such drainage as is
required to fill out the least fractional subdivision or subdivisions of
any section owned by such riparian owners and which is rendered
fractional by the meander line of such lake; and the title of such owners
shall be so limited when the receding lake waters, because of such
drainage, uncover the submersible and submerged lands. Where by reason of
natural accretion or reliction such fractional subdivision or
subdivisions of such upland owners were filled out thereby prior to May
25, 1921, such upland owners shall hold to the line of such lands as
extended by the natural accretion or reliction.
(3) Submersible and submerged lands covered at ordinary high water
at ordinarily recurring seasons by the waters of meandered lakes, or from
which the waters of any such lakes have not at ordinarily high water
permanently receded, are not considered to be accreted or relicted lands,
but the same and all accretions and relictions occurring or formed over
any of the lands of the State of Oregon, as provided by ORS 274.430, are
the property of the State of Oregon, and may be by it leased, sold or
managed in the manner provided by law. [Amended by 1967 c.421 §133] The
Department of State Lands may acquire by purchase, gift, condemnation or
otherwise, any riparian rights which may, by any court of competent
jurisdiction, be held to be owned by or vested in any upland or riparian
owner on any meandered lakes, and may institute such suits or actions as
may be necessary in such condemnation proceedings. [Amended by 1967 c.421
§134]All persons qualified to become
entrymen and to secure land patents under the homestead laws of the
United States and who prior to January 1, 1921, in good faith settled
upon lands within the meander lines of lakes returned as navigable by the
United States surveys and who, on January 1, 1921, by reason of
settlement, cultivation and improvements on any such lands would be
entitled to patent from the United States if such lands were open or
subject to homestead entry are given a preference right to purchase from
the State of Oregon such lands so settled upon by them, not exceeding 160
acres for any one person, upon such terms and at such prices and within
such times as shall be fixed by the Department of State Lands. However,
owners of the upland bordering upon such ordinary high water mark have a
preference right to purchase, at the best price bid, state lands
described in ORS 274.430 and riparian to their lands, and not exceeding
160 acres, in addition to the lands granted them by ORS 274.430 and
274.440. [Amended by 1967 c.421 §135](1) Any person who in good faith settled upon lands within the meander
lines of any meandered lake and who, on January 1, 1921, actually resided
thereon, who maintained residence thereon for at least five years
immediately prior to such date, and who complied with the requirements of
settlement, residence, cultivation and improvement, specified for
homestead entrymen under the homestead laws of the United States, and
which would be sufficient to acquire title by patent if such lands were
subject to homestead entry by qualified entrymen, upon proof of such
facts to the satisfaction of the Department of State Lands:
(a) Is entitled to a deed from the state, conveying and granting
such lands not exceeding 160 acres without cost; and
(b) Has a preferential right to purchase from the State of Oregon
160 acres of additional lands, chiefly valuable for agricultural purposes.
(2) Any person who did not reside on any lands described in
subsection (1) of this section for five years immediately prior to
January 1, 1921, but who purchased the improvement or possessory rights
or claims of a prior occupant, and whose residence and possession when
tacked to that of such prior occupant extended for a period of not less
than five years immediately prior to such date, shall have a preferential
right to purchase such lands, not exceeding 160 acres, the price of which
shall be fixed without reference to the value of the improvements
thereon. [Amended by 1967 c.421 §136] The
owners of lands riparian to Malheur and Mud Lakes, in Harney County,
Oregon, shall be granted title to so much of the lands within the meander
lines of such lakes as is required to fill out the least fractional
subdivision or subdivisions of any section owned by such upland owners,
and which is rendered fractional by the meander line of such lakes, in
addition to the rights recognized by ORS 274.430 to 274.460 to any
natural accretion or reliction added to the lands of such upland owners
prior to May 24, 1923. Owners of any upland bordering upon such meander
lines shall have a preferential right to purchase, in addition, 160 acres
of such state lands, chiefly valuable for agricultural purposes. [Amended
by 1967 c.421 §137] Settlers
within the meander line of any meandered lake have the first preferential
right, and the Department of State Lands shall, so far as practicable,
work out the various preferential rights by securing to each, all the
lands which would be most advantageously used by such several persons. In
case of conflict, the department shall give the parties a reasonable time
in which to agree, and if they cannot agree, the department shall decide
the matter and make conveyances as it considers equitable, and its
decision in the matter shall be final. The department shall fix the time
within which such preferential rights shall be exercised. [Amended by
1967 c.421 §138] (1)
All of the lands referred to in ORS 274.470 and 274.480 granted or
conveyed by the state, shall be granted and conveyed in a reasonably
compact area, to be determined by the Department of State Lands.
(2) All sales of such state lands shall be at prices fixed by the
department, and no more than 320 acres shall be sold or conveyed to any
one person. [Amended by 1967 c.421 §139] (1) If the
federal government claims title or interest in any lands referred to in
ORS 274.470 or 274.480 the same shall not be conveyed or otherwise
disposed of, or preferential right therein accrue until such claim is
settled. The Department of State Lands may enter into such agreements
with the federal government affecting such lands as it deems best in the
interest of the public, and make such deeds and conveyances to the United
States in consideration of the issuance of such patents by the United
States to the State of Oregon of such lands within the meander lines of
any such lakes as the department and the federal government agree.
(2) Nothing in this section is a recognition of any title or
interest in the United States within the meander lines of any meandered
lake to any lands or waters of any such lake prior to the execution and
delivery of a deed or conveyance from the State of Oregon as provided for
in this section.
(3) In carrying out such agreements the department may utilize the
proceeds from the sale of such lands in which title or interest is
claimed by the federal government. This section does not authorize the
department or any other state agency to enter into any agreement which
will divest any person of any water rights acquired under the laws of
this state or otherwise. [Amended by 1967 c.421 §140]Any person who elects to take any deed from the State of
Oregon under ORS 274.430 to 274.520 to any lands within the meander lines
of a lake takes the same in lieu of any claim to any other lands within
the meander line of such lake in which such deeded lands lie, and shall
not thereafter maintain in any court any claim to any lands inside the
meander line of such lake other than to the lands conveyed to such person
by deed from the state under ORS 274.430 to 274.520 or which such person
acquires in good faith from a grantee or purchaser from the State of
Oregon under such statutes. [Amended by 1967 c.421 §141](Removing Materials) (1) Any city of the State
of Oregon bordering on a navigable stream may dredge out and use material
from submersible and submerged lands of the stream, owned by the State of
Oregon and in front of such city, for the purpose of filling in or
reclaiming the submersible lands within such city, under the rules of the
Department of State Lands. The consent of the appropriate agency of the
United States Government shall be first obtained by such city.
(2) Any contractor who has entered into a contract with any such
city to fill in or reclaim any of its submersible lands may dredge and
use such material in the same manner as may be done by such city.
[Formerly 274.410; 1967 c.421 §145; 1969 c.594 §43](1) The Department of State
Lands may, after notice of competitive bidding, and following such
competitive bidding, lease or license submersible and submerged lands of
navigable streams owned by the State of Oregon for the purpose of
removing material therefrom. Competitive bid requirements may be waived
for leases of less than one year’s duration. No lease shall be made for a
lump sum but only on a basis of the price per cubic yard or ton for the
material removed.
(2) The department may prescribe by rule the manner in which the
volume in cubic yards or the weight in tons for the material removed
shall be determined.
(3) Notwithstanding subsections (1) and (2) of this section, the
department may enter into a license for the removal of material from
submersible and submerged lands of navigable streams owned by the State
of Oregon based on a competitive market rate that reflects fair market
value.
(4) The department shall, prior to any competitive bidding notice,
establish prebid qualifications that include but are not limited to the
following:
(a) The minimum yardage amount of material that must be removed for
each year for which the lease is valid.
(b) Evidence that all bidders have an established market, as
provided by each bidder. [Amended by 1961 c.509 §2; 1961 c.676 §3; 1967
c.421 §144; 1967 c.567 §§15, 15a; 1971 c.509 §1; 1995 c.113 §1](1) A person may remove material from submersible and
submerged lands owned by the State of Oregon without payment of royalties
to the Department of State Lands if the material is:
(a) Removed for channel or harbor improvement or flood control;
(b) Used for filling, diking or reclaiming land owned by the state
or any political subdivision as defined in ORS 271.005 and located not
more than two miles from the bank of the stream;
(c) Used for the creation, maintenance or enhancement of fish or
wildlife habitat;
(d) Used for the maintenance of public beaches; or
(e) Contaminated with hazardous material, as defined in ORS
466.605, provided that the person gives the department written notice of
the removal at least 30 days prior to disposal.
(2) A person does not have to pay royalties to the state for the
following uses of material, if the person provides at least 30 days’
written notice to the department of the intended use:
(a) The filling of any property up to an elevation of one foot
above the line of ordinary high water of a waterway by a state agency or
political subdivision, as defined in ORS 271.005.
(b) The material is used solely for a public purpose by a political
subdivision, as defined in ORS 271.005.
(3) A person may not remove any material from the place it was
first deposited or use the material as an article of commerce without
providing, prior to the removal of the material, written notification to
the department and payment of any royalties for the material as
determined by the department.
(4) In addition to the purposes enumerated in subsection (1) of
this section, any person may take material for the exclusive use of the
person to the extent of not more than 50 cubic yards or the equivalent
weight in tons in any one year. However, before taking the material, the
person shall first notify the department.
(5) Upon the removal of material from submersible or submerged
lands not exempt from the payment of royalties, royalties in an amount
established by the department must be paid to the department.
(6) For purposes of this section:
(a) “Article of commerce” means any material, other than material
used for upland disposal or contaminated material put to beneficial use,
that is bought, sold or exchanged in any manner for goods or services and
that otherwise would have to be acquired from alternative sources.
(b) “Reclaiming land” means raising the elevation of a portion of
land within a 100-year floodplain to not more than one foot of elevation
higher than the highest elevation of the 100-year floodplain, or
protecting land otherwise in the 100-year floodplain by the construction
of dikes or other flood control improvements. [Amended by 1961 c.149 §1;
1961 c.676 §5; 1967 c.421 §146; 1969 c.594 §44; 1971 c.509 §3; 1981 c.787
§53; 2003 c.465 §1](1) The Department of
State Lands may enter into contract of lease for purposes of ORS 274.525
to 274.590 with such stipulations protecting the interest of the state as
the department may require, and may require a bond with a surety company
authorized to transact a surety business in this state, as surety, or
other form of security, to be given by the lessee for performance of such
stipulations, and providing for forfeiture for nonpayment or failure to
operate under the contract. No contract shall be entered into giving any
person an option of leasing or purchasing the property of the State of
Oregon. The lessee in all such contracts shall report monthly to the
department the amount of material taken under the contract and pay to the
department the amount of royalty thereon provided in the contract.
(2) The department shall adopt rules to establish criteria to
determine when security is required. [Amended by 1965 c.375 §1; 1967
c.421 §147; 1969 c.594 §45; 1991 c.264 §1]The Department of State Lands
shall cooperate with the proper authorities of the State of Washington in
contracting for, receiving and collecting royalties or other revenues for
the taking of material from the submersible and submerged lands of the
Columbia River and enter into such agreements as may be advisable or
necessary with such officers of the State of Washington for the division
of such royalties. [Amended by 1967 c.421 §148]EXPLORATION FOR MINERALS(1) The Department of State Lands
shall not enter into contracts for governmental or private development or
exploration for hard minerals on state-owned submersible and submerged
lands within the territorial sea and navigable bays that are subject to
the jurisdiction of the department.
(2) Nothing in this section shall be considered to prohibit
scientific research conducted by or on behalf of an academic institution
or a government agency.
(3) As used in subsection (1) of this section, “hard minerals”
includes but is not limited to natural deposits or mineral sources of
gold, silver, copper, lead, iron, manganese, silica, chrome, platinum,
tungsten and zirconium. “Hard minerals” does not include oil, gas or
sulphur deposits subject to ORS 274.705 to 274.860.
(4) As used in this section:
(a) “Exploration” means any activity the principal purpose of which
is to define, characterize or evaluate hard mineral deposits for possible
commercial development or production.
(b) “Scientific research” means any activity the principal purpose
of which is to improve scientific or technical understanding of earth,
ocean or atmospheric processes, hazards and resources and for which the
data generated are nonproprietary or public. [1991 c.217 §1]Note: 274.610 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 274 by legislative action.
See Preface to Oregon Revised Statutes for further explanation.TIDAL SUBMERGED AND SUBMERSIBLE LANDS(General Provisions) As used in ORS
274.705 to 274.860, unless the context requires otherwise:
(1) “Filled lands” includes submerged and submersible lands
reclaimed artificially through raising such lands above the highest
probable elevation of the tides to form dry land, by placement of a fill
or deposit of earth, rock, sand or other solid imperishable material.
(2) “Gas” means all natural gas and all other fluid hydrocarbons
not defined as oil in subsection (4) of this section, including
condensate originally in the gaseous phase in the reservoir.
(3) “Lease” means an oil, gas and sulphur lease issued pursuant to
ORS 274.705 to 274.860.
(4) “Oil” means crude petroleum oil and all other hydrocarbons,
regardless of gravity, which are produced in liquid form by ordinary
production methods, but does not include liquid hydrocarbons that were
originally in a gaseous phase in the reservoir.
(5) “Person,” in addition to the meanings defined by ORS 174.100,
includes quasi-public corporations, political subdivisions and
governmental agencies and instrumentalities.
(6) “Structure” means any construction works, including but not
limited to derricks, pipelines, lines for the transmission and
distribution of electricity, telephone lines, wharves, piers, slips,
warehouses and units designed to act as groins, jetties, seawalls,
breakwaters or bulkheads.
(7) “Tidal submerged lands” means lands lying below the line of
mean low tide in the beds of all tidal waters within the boundaries of
this state as heretofore or hereafter established. [1961 c.619 §1; 1967
c.421 §158](1) The Department of State
Lands has exclusive jurisdiction over all ungranted tidal submerged lands
owned by this state, whether within or beyond the boundaries of this
state, heretofore or hereafter acquired by this state:
(a) By quitclaim, cession, grant, contract or otherwise from the
United States or any agent thereof; or
(b) By any other means.
(2) All jurisdiction and authority remaining in the state over
tidal submerged lands as to which grants have been or may be made is
vested in the department.
(3) Notwithstanding ORS 273.551, the department shall administer
and control all tidal submerged lands described in subsections (1) and
(2) of this section under its jurisdiction, and may lease such lands and
submersible lands and dispose of oil, gas and sulphur under such lands
and submersible lands in the manner prescribed by ORS 274.705 to 274.860.
However, submerged and submersible lands lying more than 10 miles
easterly of the 124th West Meridian shall be subject to leasing for oil,
gas and sulphur under ORS 273.551, rather than under ORS 274.705 to
274.860.
(4) Notwithstanding any other provision of ORS 274.705 to 274.860,
the department may not permit any interference other than temporary
interference with the surface of the ocean shore, as defined in ORS
390.615. The department may, however:
(a) Grant easements underlying that part of the surface of the
ocean shore owned by the state at such times and at such places as the
department finds necessary to permit the extraction and transportation of
oil, gas or sulphur from state, federal or private lands; and
(b) Issue oil and gas leases underlying the ocean shore under the
same terms and conditions as provided in ORS 274.705 to 274.860. [1961
c.619 §2; 1967 c.421 §159; 2005 c.22 §197]ORS 274.705 to 274.860 shall apply equally
to the exploration and leasing of lands subject thereto for the
production of sulphur. [1961 c.619 §34; 1967 c.421 §160] (1) Any
interests in lands, or lands in fee simple, acquired by the Department of
State Lands by purchase, donation, lease condemnation or otherwise, may
be made available to any lessee of the state for the purposes contained
in ORS 274.705 to 274.860 and upon such terms as may be determined by the
department.
(2) No permit or lease shall be granted to any person then in
violation of any laws or rules applicable to ORS 274.705 to 274.860.
[1961 c.619 §§32, 38,43; 1967 c.421 §162](Geological and Geophysical Surveys) (1)
The Department of State Lands upon application by any person may permit
geological, geophysical and seismic surveys, including the taking of
cores and other samples for purposes related to exploration for oil, gas
and sulphur on lands subject to ORS 274.705 to 274.860. However:
(a) Such permits shall be nonexclusive and shall not give any
preferential rights to any oil, gas and sulphur lease.
(b) The Department of State Lands in consultation with the State
Department of Geology and Mineral Industries may grant permission for the
taking of cores and other samples.
(c) After consultation with the State Fish and Wildlife Commission,
the Department of State Lands shall include such rules and regulations in
the permit as are necessary to protect the fish and wildlife resources.
(2) Each application under this section must contain at least the
following information:
(a) A description of the areas where the applicant proposes to
conduct a survey.
(b) The name and address of the applicant.
(c) Such other relevant information as the Department of State
Lands requires. [1961 c.619 §3; 1967 c.421 §163; 1987 c.300 §9; 2003
c.253 §21] (1) Upon
compliance of an applicant with ORS 274.735, the Department of State
Lands may issue to the applicant a permit to conduct a geological,
geophysical and seismic survey, including the taking of cores and other
samples, in areas of the lands subject to ORS 274.705 to 274.860 that are
described on the permit. The department may prohibit such surveys on any
area if, in consultation with the State Department of Geology and Mineral
Industries, it determines that a lease, if applied for, should not be
granted as to such areas. The Department of State Lands shall include in
a permit conditions and payments proper to safeguard the interests of the
state.
(2) Permits issued under this section may not exceed two years, and
may be renewed for like periods upon application to the department and
upon showing due compliance with applicable laws and regulations.
(3) The department shall require the permittee to provide the State
Fish and Wildlife Commission with complete information with respect to
the area or areas of proposed operations, type of exploration and a
schedule showing the period or periods during which such explorations
will be conducted. Such information shall be treated as confidential
unless released by the permittee. [1961 c.619 §4; 1967 c.421 §164; 2003
c.253 §22] (1) Records of drilling
conducted by a permittee under ORS 274.740 shall be filed by the
permittee with the State Department of Geology and Mineral Industries as
prescribed by ORS 520.095.
(2) The Department of State Lands may require, as a condition to
the issuance of any lease under ORS 274.705 to 274.860, that the lessee
make available to the Department of State Lands, or the State Department
of Geology and Mineral Industries, upon request, all factual and physical
exploration results, logs and records resulting from the operations under
the lease. [1961 c.619 §5; 1967 c.421 §165; 1973 c.794 §18](Bid Procedure) (1) Before
granting any easement under ORS 274.705 to 274.860, and before offering
lands for leasing under ORS 274.705 to 274.860, or whenever any person
files a written application with the Department of State Lands requesting
that an easement be granted for such lands or that such lands be offered
for leasing under ORS 274.705 to 274.860, accompanying the same with the
required fee, the department shall hold a public hearing as provided in
this section.
(2) Before granting an easement or inviting bids on any lands
subject to ORS 274.705 to 274.860, the department shall cause written
notice describing the area under consideration and other pertinent
information to be transmitted to:
(a) State Geologist;
(b) Director of Transportation;
(c) Director of the Department of Environmental Quality;
(d) State Fish and Wildlife Director;
(e) The applicant, if any, requesting the lease;
(f) Prospective applicants or bidders, by publication thereof in
two or more publications of general circulation in the oil and gas
industry; and
(g) The public, by publication thereof once each week for not less
than four weeks in a newspaper of general circulation throughout the
State of Oregon, and in addition in a newspaper of general circulation in
the county in which the lands lie or the county or counties contiguous to
the area under consideration for bidding.
(3) The notice shall set forth the place of hearing and shall set
its time at not earlier than the 20th day after date of the last
newspaper publication.
(4) Notwithstanding ORS 183.635, hearings under this section may be
conducted by an administrative law judge assigned from the Office of
Administrative Hearings established under ORS 183.605 or may be conducted
by a hearing officer designated by the State Land Board. An officer or
employee of each interested state agency, board or commission named in
subsection (2) of this section may question any witnesses appearing in
the hearing, and any interested person may offer evidence and otherwise
be heard. [1961 c.619 §6; 1965 c.375 §3; 1967 c.421 §166; 1969 c.593 §34;
1993 c.741 §25; 1999 c.849 §§57,58; 2001 c.104 §§83,84; 2003 c.75 §31]
After the public hearing the Department of State Lands shall determine
whether the granting of an easement or an invitation for bidding to lease
the area under consideration would be in the public interest. In such
determination the department shall consider whether an easement or a
lease or leases of the area under consideration would:
(1) Be detrimental to the health, safety, or welfare of persons
residing in, owning real property, or working in the neighborhood of such
areas;
(2) Interfere with the residential or recreation areas to an extent
that would render such areas unfit for recreational or residential uses
or unfit for park purposes;
(3) Destroy, impair or interfere with the aesthetic and scenic
values of the Oregon coast, or other affected area;
(4) Create any air, water or other pollution;
(5) Substantially endanger marine life or wildlife;
(6) Substantially interfere with commerce or navigation; and
(7) Protect state lands from drainage of oil and gas. [1961 c.619
§7](1) The Department of State Lands may offer
to lease lands subject to ORS 274.705 to 274.860 by publication of a
notice of its intention to do so, once each week for not less than two
weeks in two or more newspapers of general circulation in this state, one
of which is published or has general circulation in the county in which
the lands lie or county or counties contiguous thereto. The notice shall
describe the lands so offered, and shall specify the rate of royalty,
including the royalty for sulphur, and the rental, the manner in which
bids may be filed with the department, the amount of the deposit that
must accompany each bid, and the time and place for filing bids, which
time shall not be earlier than the 30th day after the date of last
publication of such notice. Further, the notice shall state that the
lease will be awarded to the bidder offering the highest cash bonus, and
that the form of lease, conditions for bidding and bid form may be
obtained from the department upon request.
(2) Each bid shall be enclosed in a sealed envelope, shall be on
the form provided by the department and shall be accompanied by duplicate
lease forms executed by the bidder, and by a certified or cashier’s check
or checks payable to the State of Oregon in the amount fixed by the
department, which sum shall be deposited as evidence of good faith and
except in the case of the successful bidder shall be returned to the
bidder. If the successful bidder fails to pay the balance of the cash
bonus bid and the annual rental for the first year not later than the
15th day after the award of the lease, or fails to post any bond required
by the lease or the rules in effect at the date of the invitation for
bids within the time prescribed, the amount of the deposit shall be
forfeited to the state.
(3) At the time and place specified in the notice the department
shall publicly open the sealed bids and shall award the lease for each
parcel to the bidder who, in addition to complying with all of the
conditions for bidding, offers the highest cash bonus. The department
may, however, reject any or all bids for cause.
(4) Following the award of the lease, the payment by the successful
bidder of the balance of the cash bonus, the annual rental for the first
year, and the fee specified in this section, and the posting of any
required bonds, the department shall execute the lease in duplicate on
behalf of the state and transmit one counterpart thereof to the lessee.
The lease shall become effective as of the date of such execution.
(5) The department shall prescribe a reasonable fee to cover the
procedures under this section, which shall be paid by the successful
bidder. [1961 c.619 §27; 1967 c.421 §167] In leasing lands
subject to ORS 274.705 to 274.860, the Department of State Lands may not
discriminate between bidders by requiring drilling from:
(1) Upland or littoral drill sites;
(2) Sites on filled land, whether contiguous or noncontiguous to
the littoral lands or uplands; or
(3) Any pier, platform or other fixed or floating structure in, on
or over lands subject to ORS 274.705 to 274.860, with respect to which
this state or any other owner thereof has consented to use. [1961 c.619
§30; 1967 c.421 §168](Leases)(1) The form of lease shall contain, in
addition to other provisions deemed necessary and desirable by the
Department of State Lands, after consultation with the State Department
of Geology and Mineral Industries, the State Fish and Wildlife Commission
and other interested agencies, boards and commissions, the provisions of
ORS 274.780 to 274.860.
(2) The form of a permit shall contain, in addition to other
provisions deemed necessary and desirable by the Department of State
Lands, after consultation with the State Department of Geology and
Mineral Industries, the State Fish and Wildlife Commission and other
interested agencies, boards and commissions, the provisions of ORS
274.785 (3).
(3) All leases and other instruments required in carrying out ORS
274.705 to 274.860 shall be executed by the Department of State Lands.
All bonds, contracts and other instruments required by ORS 274.705 to
274.860 for the protection of the interests of this state and political
subdivisions, persons and property therein shall be executed and
delivered to the department. [1961 c.619 §§9,28; 2003 c.253 §23](1) The lease shall grant the
exclusive right to drill for and produce all oil, gas and sulphur
deposits in the leased land and be for a primary term of 10 years and for
so long thereafter as oil, gas or sulphur is produced in paying
quantities from the leased land, or lessee is diligently conducting
producing, drilling, deepening, repairing, redrilling or other necessary
lease or well maintenance operations on the leased land or is excused
from conducting such operations under the terms of the lease.
(2) The maximum area which shall be included in any single lease to
any person shall be 13,200 acres.
(3) No permit, easement or lease, or any portions thereof shall be
assignable without the prior written consent of the Department of State
Lands. [1961 c.619 §§8,10,22; 1963 c.359 §1] (1) The Department of State Lands shall specify
in the notice described by ORS 274.765 and in the lease the rate of
royalty paid under such lease which royalty shall not be less than 12-1/2
percent of gross production, or the value thereof, produced and saved
from the leased lands and not used by lessee for operations thereon or
for injection therein. Such royalty shall, at the department’s option, be
paid in kind or in value, and be computed after an allowance for the
actual cost of oil treatment or dehydration of not to exceed five cents
per barrel of royalty oil so treated or dehydrated.
(2) The royalty for sulphur produced under ORS 274.705 to 274.860
shall not be less than $1 per long ton.
(3) The State of Oregon shall have a lien upon all production for
unpaid royalties. [1961 c.619 §§11,12; 1967 c.421 §169] The Department of State Lands shall specify a rental
payable annually in advance of not less than 50 cents for each acre of
land subject to the lease at the rental date. After production has been
established, rent paid shall be deducted from any royalty due under the
terms of a lease during the year for which such rent has been paid. [1961
c.619 §13] Sufficient bonding requirements, as determined by
the Department of Geology and Mineral Industries, shall be specified to
secure to the State of Oregon performance and the faithful compliance by
the lessee with the terms of the lease, and further to secure adjacent
landowners and the public generally as to all proper claims for damages
arising from operations thereunder. [1961 c.619 §14] Unless otherwise determined by the Department
of State Lands, each well drilled pursuant to the terms of the lease may
be drilled or slant drilled to and into the subsurface of the lands
covered by the lease from upland or littoral drill sites owned or
controlled by the state or owned by or available to the lessee, or from
drill sites located upon any filled lands heretofore or hereafter filled,
whether contiguous or noncontiguous to the littoral lands or uplands, or
from any pier heretofore or hereafter constructed owned by or available
to the lessee and available for such purpose, or from platforms or other
fixed or floating structures in, on or over the lands covered by the
lease or otherwise available to the lessee. [1961 c.619 §16; 1967 c.421
§170] Subject
to the lessee’s right to surrender, the lessee shall commence operations
for the drilling of a well within five years from date of the lease and
commence production within three years of discovery of oil, gas or
sulphur in paying quantities, unless the Department of State Lands shall
have, for cause, granted an extension of time for such act. In addition,
the lease shall have such exploratory, drilling and producing
requirements as the Department of State Lands in consultation with the
Department of Geology and Mineral Industries deems necessary to encourage
the exercise of due diligence on the part of lessee. [1961 c.619 §20]If the lessee, as disclosed by information submitted with
the bid of the lessee, proposes to drill one or more wells from filled
land, whether contiguous or noncontiguous to the littoral lands or
uplands, or from any pier or from platforms or other fixed or floating
structures to be constructed for such purpose, and if permission from any
federal or state agency is legally required in order to construct any
such filled lands or structures, the lessee shall be allowed a reasonable
time following the execution of the lease within which to secure the
necessary permission from such federal and state agencies as shall be
legally required, and, upon the securing of such permission, a further
reasonable time, determined with regard to the nature of the filled lands
or structure or structures to be constructed within which to commence
operations for the drilling of such well or wells, and if necessary, the
drilling term provided for in ORS 274.810 shall be extended by the
Department of State Lands to the date to which the time to commence
operations for the drilling of such well or wells has been extended.
[1961 c.619 §19] (1) Avoidable pollution
or avoidable contamination of the ocean and of the waters covering lands
subject to ORS 274.705 to 274.860, avoidable pollution or avoidable
contamination of the beaches or land underlying the ocean or waters
covering lands subject to ORS 274.705 to 274.860, or any substantial
impairment of and interference with the enjoyment and use thereof,
including but not limited to bathing, boating, fishing, fish and wildlife
production, and navigation, shall be prohibited, and the lessee shall
exercise a high degree of care to provide that no oil, tar, residuary
product of oil or any refuse of any kind from any well or works shall be
permitted to be deposited on or pass into the waters of the ocean, any
bay or inlet thereof, or any other waters covering lands subject to ORS
274.705 to 274.860. However, this section does not apply to the deposit
on or passage into such waters of water not containing any hydrocarbons
or vegetable or animal matter.
(2) For the purposes of this section, “avoidable pollution” or
“avoidable contamination” means pollution or contamination arising from:
(a) The acts or omissions of the lessee or its officers, employees
or agents, or
(b) Events that could have been prevented by the lessee or its
officers, employees or agents through the exercise of a high degree of
care. [1961 c.619 §18; 1967 c.421 §171] The State of Oregon
reserves the right to permit reasonable nonconflicting uses, including
seismic surveys but excluding core hole drilling, on lands under lease as
long as:
(1) Such uses do not unreasonably impair or interfere with
operations of the lessee; and
(2) Requirement is made that the permittee indemnify the lessee
against any damage caused by such use. [1961 c.619 §21; 1999 c.59 §71] The lessee shall at all
times proceed with due diligence to protect the leasehold from drainage
by wells on lands not owned by the state. [1961 c.619 §23]
It shall be a continuing condition of such lease that the lessee shall
conform to all applicable laws of the State of Oregon and all duly
promulgated rules and regulations pursuant thereto in effect at the date
of the invitation for bids in pursuance of which the lease was awarded.
Periodic mutual negotiations between lessee and lessor may be carried out
to make conditions, rules and regulations current as warranted by changes
in environment or operational methods. [1961 c.619 §26] In the
event production on the leasehold shall cease at any time or from time to
time, before or after the expiration of the primary term of the lease,
the lease shall nevertheless continue in full force and effect if the
lessee shall, within six months after the cessation of production or
within such longer period of time as the Department of State Lands may
authorize, commence and thereafter prosecute with reasonable diligence
drilling, deepening, repairing, redrilling or other operations for the
restoration of production of oil, gas or sulphur from the leased lands.
[1961 c.619 §15] The lessee may at any time file with
the Department of State Lands a written surrender of all rights under the
lease or any portion thereof or any separate or distinct zone or
geological horizon or any portion thereof. Such surrender shall be
effective as of the date of its filing subject to the continuing
obligation of the lessee to pay all rentals and royalties theretofore
accrued and to place all wells on the lands or in the zones or horizons
surrendered in condition for suspension or abandonment in accordance with
the applicable lease terms, regulations and law. Thereupon the lessee
shall be released from all obligations under such lease with respect to
the lands, zones or horizons surrendered, but no such surrender shall
release such lessee from any liability for breach of any monetary
obligation of the lease with respect to which such lessee is in default
at the time of the filing of such surrender. [1961 c.619 §24]The Department of State Lands shall reserve and may
exercise the authority to cancel any lease upon which oil, gas or sulphur
has not been discovered in paying quantities, upon failure of the lessee
after 30 days’ written notice and demand for performance to exercise due
diligence and care in the prosecution of the prospecting or development
work in accordance with the terms of the lease. After discovery of oil,
gas or sulphur in paying quantities on lands subject to any lease, such
lease may be forfeited and canceled only by appropriate judicial
proceedings upon failure of the lessee after 90 days’ written notice and
demand for performance to comply with any of the provisions of the lease
or of laws or regulations applicable thereto and in force at the date of
the invitation for bids in pursuance of which the lease was awarded;
provided, however, that in the event of any such cancellation, the lessee
shall have the right to retain under such lease any and all drilling or
producing wells as to which no default exists, together with a parcel of
land surrounding each such well and such rights of way through the leased
lands as may be reasonably necessary to enable such lessee to drill and
operate such retained well or wells. In the event of the cancellation of
any lease, the lessee shall have a reasonable time within which to remove
all property, equipment and facilities owned or used by the lessee in
connection with operations under the lease. [1961 c.619 §25] Upon any
partial or total termination, surrender or forfeiture of its permit or
lease, the Department of State Lands may require that the permittee or
lessee, within a reasonable time, restore that portion of the premises
that is visible at extreme low tide to substantially its original
condition. [1961 c.619 §17] Under a lease
entered into by the Department of State Lands pursuant to ORS 274.705 to
274.860, the fill constituting filled lands may be retained in place or
protected by bulkheads, seawalls, revetments or similar enclosures and
may be placed at any location approved by the Department of State Lands,
in consultation with the Department of Geology and Mineral Industries,
the State Fish and Wildlife Commission and other interested agencies,
boards and commissions. [1961 c.619 §31](Kelp Fields) (1) The Department of State Lands may
lease submerged lands owned by the State of Oregon for the purpose of
harvesting kelp and other seaweed after consultation with the State Fish
and Wildlife Commission.
(2) The lease may be for a term of not to exceed 50 years and shall
provide for the payment to the State of Oregon of a sum to be fixed by
the department for all kelp or other seaweed harvested under the lease,
to be paid at the end of each year. Not more than 40 miles of coast line
shall be leased to one person. [Formerly 274.010; 1967 c.421 §172; 1993
c.298 §1]The first lease issued to an
applicant under ORS 274.885 to 274.895 with respect to any submerged
lands may allow the applicant six months in which to make a practical
survey of the field which the applicant has leased, and another 12 months
in which to erect a plant and commence operation. The lessee shall,
within six months of the time of obtaining the lease, make or cause to be
made a practical survey showing the amount and condition of kelp within
the territory described in the lease, and shall file a copy of the survey
with the Director of the Department of State Lands within six months.
Upon the failure of the lessee so to do, the lease shall be canceled by
the Department of State Lands. [Formerly 274.020; 1967 c.421 §173] Except in the case of a person
harvesting or removing less than 2,000 pounds of kelp each year for the
purposes of human consumption, no person shall harvest or remove any kelp
or other seaweed from any submerged lands owned by the State of Oregon
unless the person has first obtained a lease from the Department of State
Lands. [Formerly 274.030; 1967 c.421 §174]SUBMERSIBLE, SUBMERGED AND NEW LANDS As used in ORS
274.905 to 274.940, unless the context requires otherwise:
(1) “New lands” means those lands protruding above the line of
ordinary high water, whether or not connected with the adjoining or
opposite upland or riparian lands on the same side of the body of water,
which have been created upon submersible or submerged lands by artificial
fill or deposit. “New lands” does not include bridges, wharves and
similar structures constructed upon submersible or submerged lands by
other than artificial fill or deposit.
(2) “Public body” means the State of Oregon or any port organized
under the laws of this state or any dock commission of any city of this
state. [1963 c.376 §1; 1967 c.421 §175; 1973 c.328 §1](1) ORS 274.905 to 274.940 shall
not apply to submersible, submerged or new lands fronting upon the
Pacific Ocean.
(2) The provisions of ORS 274.905 to 274.940 apply to new lands
created before, on or after May 28, 1963.
(3) Nothing contained in ORS 274.905 to 274.940 shall divest the
State of Oregon of its rights to minerals, oil, gas and sulphur. [1963
c.376 §§2,9; 1967 c.421 §176] (1)
Except as otherwise provided in ORS 274.905 to 274.940, the Department of
State Lands may sell, lease or trade submersible or submerged lands owned
by the state in the same manner as provided for submersible lands in this
chapter or ORS chapter 273.
(2) Except as otherwise provided in ORS 274.905 to 274.940, the
department may sell, lease or trade new lands created upon submersible or
submerged lands owned by the state in the same manner as provided for
lands acquired as an investment for the Common School Fund in ORS 274.085
or ORS chapter 273. [1963 c.376 §3; 1967 c.421 §177; 1969 c.594 §47; 1973
c.203 §3; 1989 c.64 §1]
No one other than the United States, while engaged in the promotion of
navigation, shall artificially create new lands by fill or deposit upon
submersible or submerged lands without the approval of the owner of such
lands and the owner of the adjoining or opposite upland on the same side
of the body of water. [1963 c.376 §4; 1973 c.203 §7](1) Whenever the United States, while engaged in the
promotion of navigation, creates new lands upon submersible or submerged
lands owned by the state and the adjoining or opposite upland or riparian
land on the same side of the body of water is owned by a public body, the
public body has the right to purchase the new lands as provided in this
section. The public body shall pay to the Department of State Lands for
the new lands a sum equal to the difference between the value of the
tract, consisting of the new lands and the adjoining or opposite upland
on the same side of the body of water, and the value of the adjoining or
opposite upland before the creation of the new lands and an amount
prescribed by the department to pay its administrative costs incurred
with respect to the new lands. Such payment shall be made by the public
body within one year after the date of the receipt by it of actual notice
by the department of the creation of the new lands, the sum equal to the
difference between the value of the tract, consisting of the new lands
and the adjoining or opposite upland on the same side of the body of
water, and the value of the adjoining or opposite upland before the
creation of the new lands and the administrative costs incurred by the
department with respect to new lands. If the public body fails to make
payment for the new lands as provided in this subsection within one year
after the date of such notice, the department may dispose of the new
lands as provided in ORS 274.915.
(2) If a public body and the department cannot agree on the sum to
be paid under subsection (1) of this section, the sum to be paid shall be
determined by three appraisers, one appointed by the public body, one by
the department, and the third by the first two, and their determination
shall be final. The cost of the third appraiser shall be borne equally by
the public body and the department. [1963 c.376 §5; 1965 c.375 §4; 1967
c.82 §1; 1973 c.203 §4](1) Whenever the
United States, while engaged in the promotion of navigation, creates new
lands upon submersible or submerged lands owned by the state and the
adjoining or opposite upland or riparian land on the same side of the
body of water is owned by other than a public body, the nonpublic
riparian owner has the right to purchase the new lands as provided in
this section.
(2) A nonpublic riparian owner entitled to purchase the new lands
under subsection (1) of this section shall pay to the Department of State
Lands for the new lands a sum equal to the difference between the value
of the tract, consisting of the new lands and the adjoining or opposite
upland on the same side of the body of water, and the value of the
adjoining or opposite upland before the creation of the new lands and an
amount prescribed by the department to pay its administrative costs
incurred with respect to the new lands. Such payment shall be made by the
nonpublic riparian owner within six months after the date of the receipt
by the nonpublic riparian owner of actual official notice by the
department of the creation of the new lands, the sum equal to the
difference between the value of the tract, consisting of the new lands
and the adjoining or opposite upland on the same side of the body of
water, and the value of the adjoining or opposite upland before the
creation of the new lands and administrative costs incurred by the
department with respect to the new lands. If the nonpublic riparian owner
fails to make payment for the new lands as provided in this subsection,
the department, after the expiration of the six-month period, may dispose
of the new lands as provided in ORS 274.915.
(3) If a nonpublic riparian owner and the department cannot agree
on the sum to be paid under subsection (2) of this section, the sum to be
paid shall be determined by three appraisers, one appointed by the
nonpublic riparian owner, one by the department, and the third by the
first two, and their determination shall be final. The cost of the third
appraiser shall be borne equally by the nonpublic riparian owner and the
department.
(4) Notwithstanding ORS 274.910 (2), this section applies only to
new lands created on or after October 5, 1973. [1973 c.203 §2](1) Whenever a public body, in accordance with ORS
274.920, creates new lands upon submersible or submerged lands owned by
the state, the public body has the right to purchase the new lands as
provided in this section. The public body shall pay to the Department of
State Lands for the new lands the value of the state-owned submersible or
submerged lands upon which the new lands were created immediately prior
to the creation of the new lands thereon and an amount prescribed by the
department to pay its administrative costs incurred with respect to the
new lands. Such payment shall be made by the public body within one year
after the date of the receipt by it of actual notice by the department of
the creation of the new lands, the value of the state-owned submersible
or submerged lands upon which the new lands were created and the
administrative costs incurred by the department with respect to the new
lands. If the public body fails to make payment for the new lands as
provided in this subsection within one year after the date of the notice
by the department, the department may dispose of the new lands as
provided in ORS 274.915.
(2) If a public body and the department cannot agree on the value
of the state-owned submersible or submerged lands upon which the new
lands were created under subsection (1) of this section, the value shall
be determined by three appraisers, one appointed by the public body, one
appointed by the department and the third appointed by the first two. The
determination of the appraisers shall be final. The cost of the third
appraiser shall be borne equally by the public body and the department.
[1973 c.203 §5]Whenever new lands are created upon
submersible or submerged lands owned by other than a public body, such
new lands shall be owned by the owner of the submersible or submerged
lands upon which the new lands are created. [1963 c.376 §8](1) Whenever an individual, in
accordance with ORS 274.920, creates new lands upon submersible or
submerged lands owned by the state, such individual has the right to
purchase the new lands as provided in this section. The individual shall
pay to the Department of State Lands for the new lands the value of the
state-owned submersible or submerged lands upon which the new lands were
created immediately prior to the creation of the new lands thereon and a
reasonable portion of the private benefit realized from the creation of
the new lands as an addition to the adjoining or opposite upland in front
of which the new lands were created. The individual shall also pay to the
department for the new lands the administrative costs incurred by the
department with respect to the new lands. If the individual fails to make
payment for the new lands as provided in this subsection within six
months after the date of the notice by the department, the department may
dispose of the new lands as provided in ORS 274.915.
(2) If an individual and the department cannot agree on the sum to
be paid for new lands under subsection (1) of this section, the sum to be
paid shall be determined by three appraisers, one appointed by the
individual, one appointed by the department and the third appointed by
the first two. The determination of the appraisers shall be final. The
cost of the third appraiser shall be borne equally by the individual and
the department. [1973 c.203 §6]Notwithstanding ORS 274.905,
274.915 to 274.925, 274.929, 274.932 and 274.937, the Department of State
Lands may reserve new lands from sale, transfer or lease where upon
notice and hearing it determines that the public interest requires such
lands to be preserved for recreation, conservation of fish and wildlife
or the development of navigation facilities, but in case of such
reservation the adjoining or opposite upland or riparian owner shall be
allowed reasonable access across such reserved new lands to navigable
water. [1963 c.376 §7; 1967 c.421 §178; 1973 c.203 §8]FORMERLY SUBMERGED, SUBMERSIBLE LANDS As used in ORS
274.960 to 274.985, unless the context requires otherwise:
(1) “Board” means the State Land Board.
(2) “Submerged land” means land lying below the line of ordinary
low water of a body of water in this state.
(3) “Submersible land” means land lying between the line of
ordinary high water and the line of ordinary low water of a body of water
in this state. [1973 c.329 §2; 2003 c.253 §24] (1) The Legislative Assembly finds
and declares that:
(a) Uncertainty exists as to the nature and extent of the state’s
interest in land formerly submerged or submersible lands within the bed
and banks of navigable bodies of water in this state.
(b) Such uncertainty causes conflicts in the use and ownership of
such land, endangers the rights and titles of landowners and restricts
the development of the economic, scenic and recreational potential of
such lands.
(c) Although the State Land Board and the Department of State Lands
are authorized by law to negotiate settlements with respect to the
ownership of such lands, action by the State of Oregon to determine and
assert its interests, if any, in such lands is necessary for a prompt and
orderly resolution of such uncertainty.
(2) The Legislative Assembly finds therefore, that it is in the
public interest to direct the State Land Board and the Department of
State Lands to continue the study of the Willamette River and to conduct
studies of the lands formerly submerged or submersible within other
navigable bodies of water in this state and, at the conclusion of each
such study, to resolve conflicting ownership claims between the state and
private owners by asserting interests remaining or vested in the state in
such lands. [1973 c.329 §1](1) The State Land Board shall direct the Department of
State Lands to determine whether any interest remains or is vested in the
State of Oregon with respect to land that was formerly submerged or
submersible land within the bed and banks of a navigable body of water in
this state.
(2) In directing a determination by the department under subsection
(1) of this section, the board may designate a specifically described
area of land within which the department shall make its determination.
(3) The board and the department shall conclude their study of
lands formerly submerged or submersible within the Willamette River and
carry out their duties under ORS 274.960 to 274.985 with respect to such
lands prior to July 1, 1979.
(4) The board and the department shall carry out their duties under
ORS 274.960 to 274.985 with respect to lands formerly submerged or
submersible within navigable bodies of water in this state, other than
the Willamette River, prior to July 1, 1979. [1973 c.329 §3; 1977 c.757
§1]
(1) At the direction of the State Land Board pursuant to ORS 274.965, the
Department of State Lands shall conduct a study to determine:
(a) The location of any land that was formerly submerged or
submersible within the bed and banks of a navigable body of water.
(b) Nature and extent of the interest, if any, that remains or is
vested in the State of Oregon with respect to such land.
(2) Upon completion of its study of land required by the board
pursuant to ORS 274.965, the department shall prepare a report of its
findings under subsection (1) of this section with respect to such land.
The department shall submit the report to the board.
(3) The department shall hold such public informational hearing or
hearings as the board may direct, with appropriate notice to affected
property owners. [1973 c.329 §§4,5; 1977 c.757 §2](1) Upon receipt by the State Land Board of a report submitted
by the Department of State Lands, the board shall review the report of
the department.
(2) If the board finds that the report is incomplete in any
respect, it may refer the report back to the department for further
study. In case of such referral the board may request additional
information and may request modification of the department’s report.
(3) If a report is referred back to the department pursuant to
subsection (2) of this section, the department shall compile the
additional information, if any, that was requested and shall revise the
report in compliance with the directions, if any, of the board.
(4) The board shall adopt a report of the department submitted
pursuant to ORS 274.967 (2), if it finds the report to be complete and
accurate. [1973 c.329 §6] (1) Upon the
conclusion of each public hearing held under ORS 274.967 (3) and the
modification, if any, of the report upon which such hearing was held, the
State Land Board shall declare the nature and extent of any interest that
remains or is vested in the State of Oregon with respect to the land
described in the report.
(2) Except as it may be modified upon review pursuant to ORS
274.985, a declaration made by the board pursuant to subsection (1) of
this section shall be binding upon the State of Oregon with respect to
interest of the State of Oregon in the land described in the declaration.
[1973 c.329 §8; 1983 c.740 §71]
Immediately following a declaration made by the State Land Board pursuant
to ORS 274.975, the board shall:
(1) Cause notice of the declaration to be published once each week
for four successive weeks in each county that has within its boundaries
land described in such declaration:
(a) Describing such land. Such notice need not describe the land in
legal terms, but by the use of common descriptions or maps shall be
designed to identify the lands in a manner intelligible to the layperson;
(b) Stating that a copy of the declaration has been recorded in the
deed records of the county; and
(c) Advising that any person aggrieved by the declaration may seek
judicial review of the declaration pursuant to ORS 274.985.
(2) Send to each owner of record of land described in the
declaration a copy of the declaration made with respect to the land and a
statement advising such owner that the owner may seek judicial review of
such declaration pursuant to ORS 274.985. [1973 c.329 §9](1) The State Land Board shall send a copy of each
declaration made pursuant to ORS 274.975 to the recording officer of each
county that has within its boundaries land described in the declaration.
(2) Upon receipt of the copy of a declaration submitted to the
recording officer under subsection (1) of this section, the recording
officer of the county shall record the declaration in the permanent deed
records of the county. [1973 c.329 §11; 1999 c.803 §6](1) The
State Land Board shall forward the original of each declaration made
pursuant to ORS 274.975 (1) and the administrative record upon which such
declaration was based to the Director of the Department of State Lands.
(2) The director shall maintain each declaration in the permanent
deed records of the State of Oregon and maintain all other materials
submitted to the director with each such declaration in the files of the
Department of State Lands.
(3) A copy of a declaration or any part of the administrative
record upon which the declaration is based, that is in the custody of the
department pursuant to subsections (1) and (2) of this section, and that
is certified by the director as a true and correct copy of the original
thereof, shall be received into evidence by any court of this state with
like force and effect as the original. [1973 c.329 §§10,13] Any person who is
aggrieved by a declaration of the State Land Board made pursuant to ORS
274.975 may seek judicial review of such declaration in the manner
provided in ORS chapter 183 for judicial review of final orders in
contested cases. [1973 c.329 §12]PENALTIESViolation of ORS 274.745 or 274.895, or
(1) Any person
who violates any provision of ORS 274.040 or any rule, order or lease
adopted or issued under ORS 274.040 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 $1,000 per day of violation.
(2) Civil penalties under this section shall be imposed in the
manner provided in ORS 183.745.
(3) The provisions of this section are in addition to and not in
lieu of any other penalty or sanction provided by law.
(4) Any civil penalty recovered under this section shall be
deposited in the Common School Fund for use by the Department of State
Lands in administration of ORS 274.040 and as otherwise required by law.
[1991 c.521 §4; 1991 c.734 §113](1) The Director of the
Department of State Lands shall adopt by rule the amount of civil penalty
that may be imposed for a particular violation of ORS 274.040.
(2) In imposing a penalty under the schedule adopted under
subsection (1) of this section, the director shall consider the following
factors:
(a) The past history of the person incurring a penalty in taking
all feasible steps or procedures necessary or appropriate to correct any
violation.
(b) Any prior violations of statutes, rules, orders and leases
pertaining to submerged and submersible lands.
(c) The impact of the violation on public interests in fishery,
navigation and recreation.
(d) Any other factors determined by the director to be relevant and
consistent with the policy of ORS 274.040.
(3) The penalty imposed under this section may be remitted or
mitigated upon such terms and conditions as the director determines to be
proper and consistent with the policy of ORS 274.040. Upon the request of
the person incurring the penalty, the director shall consider evidence of
the economic and financial condition of the person in determining whether
a penalty shall be remitted or mitigated. [1991 c.521 §5]
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