FILED March 5, 2019 0515 PM Appellate Court Records IN THE SUPREME COURT OF THE STATE OF OREGON CASCADIA WILDLANDS, an Oregon non-profit corporation; AUDUBON Supreme Court No. S066223 SOCIETY OF PORTLAND, an Oregon non-profit corporation; THE CENTER Court of Appeals No. A159061 FOR BIOLOGICAL DIVERSITY, a California Corporation; and JOSHUA Lane County Circuit Court LAUGHLIN, Case No. 162-14-0784 7 Petitioners-Appellants/­ Respondents on Review, v. OREGON DEPARTMENT OF STATE LANDS, an administrative agency in the state of Oregon, Respondent-Respondent/­ Petitioner on Review, and SENECA JONES TIMBER COMPANY, LLC, an Oregon limited liability company, Intervenor-Respondent/Petitioner on Review. OPENING BRIEF ON THE MERITS OF INTERVENOR­ RESPONDENT SENECA JONES TIMBER COMPANY, LLC, PETITIONER ON REVIEW, AND SUPREME COURT EXCERPT OF RECORD Opinion Filed: August l , 2018 Author of Opinion: Armstrong, P.J. Joined by Egan, C.J and Shorr, J. March, 2019 Michael E. Haglund #772030 Daniel R. Kruse #064023 Christopher T. Griffith #154664 KRUSE & SAINT MARIE HAGLUND KELLEY LLP Attorneys At Law 200 SW Market St., Ste 1777 101 E. Broadway Ste. 130 Portland, OR 97201 Eugene, OR 97 401 Telephone: (503) 225-0777 Telephone: (541) 687-6788 Email: [email protected] Email: [email protected] [email protected] Dominic M. Carollo #09305 7 Nicholas Stanton Cady, #112463 YOCKIM CAROLLO LLP CASCADIA WILDLANDS 430 SE Main Street PO Box 10455 PO Box 2456 Eugene, OR 97440 Roseburg, OR 97470 Telephone: (541) 434-1463 Telephone: (541)957-5900 Email: [email protected] Email: [email protected] Attorneys for Petitioners­ Attorneys for Intervenor­ Appellants/Respondents on Responde nt/Petitioner on Review Review ELLEN F. ROSENBLUM, #7 53239, Attorney General INDE D. WELLS #881137 CARSON L. WHITEHEAD #105404 Assistant Attorneys General 1162 Court St. NE Salem, OR 97301-4096 Telephone: (503) 378-4402 [email protected] [email protected] Attorneys for Respondent­ Responde nt/Petitioner on Review TABLE OF CONTENTS TABLE OF AUTHORITIES ........................... ................................ iii INTRODUCTION ................................................................. .. ......... 1 QUESTIONS PRESENTED AND PROPOSED RULES OF LAW .................. ................................................................................ 3 First Question Presented on Review ................................ ..... 3 First Proposed Rule of Law ................................................... 3 Second Question Presented on Review ................................. 3 Second Proposed Rule of Law ................................... ............. 3 Third Question Presented on Review.... .......... ...................... 4 Third Proposed Rule of Law ......... ......................................... 4 NATURE OF THE ACTION ............................... ............. ................ 4 STATEMENT OF MATERIAL FACTS ........................................... 5 SUMMARY OF ARGUMENT .............................................. ...... .... 16 ARGUMENT .................................................................................. 20 A. ORS 530.450 Violates Article VIII, Section 5 of the Oregon Constitution .................................................... 20 B. The Separation of Powers Doctrine Voids ORS 530.450 ......... ....... ......................................................... 25 C. The Admission Act Compact between Oregon and the United States Imposes Trust Obligations on the State 11 Land Board that Cannot be Impaired by Legislative Action ........................................................................... 29 CONCLUSION ......................................... ...................................... 37 SUPREME COURT EXCERPT OF RECORD INDEX ........ ......... 39 lll TABLE OF AUTHORITIES Page(s) Cases Andrus v. Utah, 446 US 500, 100 S Ct 1803, 64 L Ed 2d 458 (1980) ................... 6, 8, 29 Cascadia Wildlands v. Decker, 911 F Supp 2d 1075 (D Or 2012) .. ................................................ 14, 15 Cascadia Wildlands v. Dept. of State Lands, 293 Or App 127, 427 P3d 1091 (2018) .. .. .................................... passim Ervien v. U.S. , 251 US 41, 47, 40 S Ct 75, 76, 64 L Ed 128 (1919) .. ........................... 31 Freedom Socialist Party u. Bradbury, 182 Or App 217, 48 P3d 199 (2002) ................................................... 29 Grand Prize Hydraulic Mines v. Boswell, 83 Or 1, 162 P 1063 (1917) ........................................................... 17, 31 Johnson v. Dept. of Revenue, 292 Or 373, 639 P2d 128 (1982) .................................. ...... 22, 23, 24, 25 Lassen v. Arizona, 385 US 458, 87 S Ct 584, 17 L Ed 2d 515 (1967) .............. 19, 31, 32, 36 Oklahoma Educ. Ass'n v. Nigh, 1982 Ok 22, 642 P2d 230 (Okla 1982) .... ... ........... ......... ..................... 34 Rooney v. Kulongoski, 322 Or 15, 902 P2d 1143 (1995) .......................................... .. ... ..... .. ... 26 Skamania County v. State, 102 Wash 2d 127, 685 P2d 576 (1984) ......................................... 33, 34 State v. University of Alaska) 624 P2d 807 (Ala 1981) ........... ........................................................... 34 JV State v. Joslin, 232 Or 373, 375 P2d 808 (2001) ......................................................... 29 State v. Kennedy, 295 Or 260, 666 P2d 1316 (1983) ..................... ......... ......................... 29 State ex rel. Ebke v. Board of Educ. Lands & Funds, 154 Neb 244, 47 NW2d 520 (Neb 1951) ............................................. 34 State Land Board v. Lee, 84 Or 431, 165 P 372 (1972) ..... ...................................... .. ............ 27, 32 State of Or. By & Through Div. of State Lands v. Bureau of Land Mgmt., Dep't of the Interior, 876 F2d 1419 (9th Cir 1989) ...................................................... BJ 9, 13 Tillamook County v. State By and Through State Bd. of Forestry, 302 Or 404, 730 P2d 1214 (1986) ................................................. 35, 36 United States u. Morrison, 240 US 192, 36 S Ct 326, 60 L Ed 599 (1916) ................................ 8, 31 United States v. Wyoming, 331 US 440, 67 S Ct 1319, 91 L Ed 1590 (1947) .................................. 8 Utah u. Kleppe, 586 F2d 756 (10th Cir 1978), rev'd on other grounds, 446 us 500 (1980) ....................................................................................... 6 White u. Public Employees Retirement Bd, 351 Or 426, 268 P3d 600 (2011) ............................................ ............. 36 Statutes 1 Oregon Code Annotated§ 1 (1930) .................................................... 7, 8 43 USC§§ 851~852 ............................................................................... ..... 8 Act of August 14, 1848, 9 Stat 323 (1848) ...................................... 1, 7, 30 V Act of January 7, 1853, 10 Stat 150 (1853) ........................................ 7, 30 Act of March 1, 1927, 44 Stat 1262-63 (1927) .............................. .......... 12 Act of March 2, 1905, 33 Stat 1264 (1905) ............................................... 9 Admission Act, 11 Stat 383 (1859) ..................................................passim Indemnity Act of 1891, Rev. Stat§§ 2275-76 ...................... ..................... 8 Or Laws 1913, ch 124, § 1 ..................................... .................................. 10 Or Laws 1919, ch 145 ............................................................ .. ................ 11 Or Laws 1957, ch 240, § 1 .................... ................. ............ ...................... 13 ORS 530.450 ............................................. ...... ......................... .........passini ORS 530.510 .................................... .................. ................................ 18, 21 Presidential Proclamation of April 28, 1972, 45 Stat 2907 (1927) ........................................................................................... ....... 13 Other Autho1·ities 37 Op Atty Gen 569 (1975) ...................................... ... ............................ 35 46 Op Atty Gen 468 (1992) ............................ ......................................... 35 Charles H. Carey, A General History of Oregon Prior to 1961 (1936) ........... ......................................................................................... 2 Or Const, Art VIII, § 5 ..................... ................................................passim INTRODUCTION The central issue in this case is straightforward: whether the legislature has the power to prohibit the sale of common school lands, despite the state constitutional and federal compact requirements that these lands be held in trust and sold or managed to maximize economic returns benefiting· Oregon's public schools. ORS 530.450 is unambiguous in its effect: the State Land Board is prohibited from selling common school lands within the Elliott State Forest. In 1848, Congress passed legislation reserving two sections in every square mile of the Oregon Territory "for the purpose of being applied to schools.'' Act of August 14, 1848, 9 Stat 323, ch 177 (1848). In his 1849 inaugural address to the territorial legislature, Governor Joseph Lane declared: In this grant we shall have the means of providing a system of common schools for the education of all the children of the territory. Your attention is invited to the importance of adopting a system of common schools and providing the means of putting them into