Items Of Interest. Division of State Lands 775 Summer Street N.E. Salem, Oregon New Carissa Update. North Tongue Point Offered For Sale

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1 Division of State Lands 775 Summer Street N.E. Salem, Oregon Newsletters Archives Volume 3, Issue March-April Items Of Interest New Carissa Update At the April Land Board meeting, the status of the New Carissa was discussed. Representatives of the vessel stated that because of the high-energy sea conditions at the wreckage site, and the angles at which the two sections of the ship are inclined, it may no longer be possible to remove what remains of the ship. To undertake any salvage efforts, it is necessary to first construct work platforms. Even with such platforms in place, salvage could still entail considerable safety and environmental risks that would have to be appropriately managed. Adding to the concerns of the salvage experts is the possibility that any work platforms could fail, thereby resulting in additional wreckage at the site. If it is determined that the two sections of the ship cannot be safely removed in an environmentally acceptable manner, Governor Kitzhaber made it clear that the State of Oregon fully expects payment of $25 million dollars from the responsible party in compensation for not removing the wreckage. The investment earnings from this money would be used to fund site management costs, the state s liability associated with the wreckage, local emergency response needs, and to enhance the Oregon s marine accident response capabilities. The money would also be available for removal of the wreckage at a future date should conditions change or new technologies and approaches be developed to complete the removal. The next steps in this process depend in part on the results of an assessment of the situation by an independent consultant. For further information contact: Steve Purchase (503) 378-, ext steve.purchase@dsl.state.or.us North Tongue Point Offered For Sale In another action by the Land Board at its April meeting, the decision was made to

2 offer approximately 36 acres of the state s North Tongue Point Industrial Site on the Columbia River at Astoria for sale in a modified surplus property/sealed bid public auction. This property, acquired in 1980 by the Land Board from the United States General Services Administration, had been leased for numerous uses during the past 20 years. Since 1993, Cresmont, Inc. of Seattle has held the lease for the property and has been responsible for developing new uses of the on-site facilities which include five 1,300 foot long piers, 24 acres of concrete pad/laydown area, and two large buildings containing 162,000 feet of useable space. As indicated in the notice attached to this newsletter, the minimum bid price will be $4 million, which includes the Division s landlord interest in the current Cresmont, Inc. lease. The Port of Astoria has been given until 5 PM, Friday, June 23, 2000 to submit a surplus property bid. All public auction bids must be submitted by 1 PM, Friday, June 30, For further information contact: Steve Purchase (503) 378-, ext steve.purchase@dsl.state.or.us Easement Rules Hearings Held The Division held four hearings, two in Portland and one in Salem and Bend to receive public input on its proposed administrative rules governing the granting of easements on Division-managed, state-owned land (exclusive of the Territorial Sea). Concerns raised by the public primarily centered on the applicability of the rules to existing easements; the proposed application fee schedule; and the proposed requirement that each cable placed within a conduit be authorized by an easement. Based on the input received, the Division is currently developing a revised draft of the proposed rules that will be available for public review and comment in late-may. These revised rules will also incorporate new provisions for issuing temporary use permits on state-owned land managed by the Division. You may obtain a copy of the revised rules by contacting the Division, or from our website at: The Division plans to take these revised rules to the Land Board for its consideration at its August 2000 meeting. You may submit written comments to the Division on these rules up to the time of the Land Board meeting. Alternatively, you may comment orally on these rules at the Land Board meeting. For further information contact: Jeff Kroft (503) 378-, ext jeff.kroft@dsl.state.or.us Programmatic Biological Assessment For Oregon s Removal/Fill Program A major continuing challenge to the Division is to successfully combine regulation, enforcement, technical assistance and public outreach to enable sound "fish-friendly" development to occur in the state s waterways and wetlands. As the designated nonfederal representative to the US Army Corps of Engineers, Portland District, the Division is conducting a consultation under Section 7 of the Endangered Species Act (ESA) with the U.S. National Marine Fisheries Service and the Fish and Wildlife Service (Services) on the State s Removal-Fill Program for all federally listed species in Oregon. To complete this consultation, the Division, with the assistance of the Oregon Natural Heritage Program, submitted a Draft Programmatic Biological Assessment (BA) to the Services in February of this year. The final BA will be issued in May. We expect the Services to issue their Biological Opinion a few months later (no later than September 2000). Combined with a State Programmatic General Permit issued by the Corps, the Biological Opinion will help the Division assure applicants who successfully go through the removal-fill permitting process that they

3 will be in compliance with the ESA as well as adding to the recovery of listed species. For further information contact: Eric Metz (503) 378-, ext Two New Rulemaking Efforts Started Given the large number of communications towers being constructed throughout the state, the Division has commenced development of administrative rules to guide the placement of these towers on state-owned land managed by the Division. At the same time, the Division is taking the first steps toward developing administrative rules for the leasing of state-owned land for non-grazing agricultural uses such as the planting of wheat, row crops, and orchards. The Division does not currently have any rules in place for either communications site or agriculture leasing (other than grazing leasing). Information concerning the progress made on these rules will be posted in future issues of this newsletter. For further information contact: Jeff Kroft (503) 378-, ext Rules Adopted Controlling Export Of Unprocessed Timber At the April Land Board meeting, administrative rules governing the export of unprocessed timber from Common School Forest Lands and other Land Board managed lands were adopted. These rules replace outdated rules adopted by the Land Board in 1983, which were effectively overruled by subsequent state constitutional and statutory changes, as well as federal legislation controlling "log exports." For further information contact: John Lilly (503) 378-, ext Land Sales Completed In December 1999, the Land Board authorized the Division to offer nine isolated, unleased parcels of rangeland totaling 1,795 acres in Lake and Klamath Counties for sale through a sealed bid process. On March 31 st, the Division held a sealed bid land sale for these parcels, seven of which were bid upon. A total of 23 bids were submitted with a total bid premium of $19,299. This is estimated to be about 19 percent more than the total appraised value of the parcels sold. In all, 515 acres were sold for a total sale proceeds of $120,000. Excluding the timber tract, the average per acre sales price was about $122 per acre, ranging from a high of $211 to a low of $55 per acre. For further information contact: Nancy Pustis (541) nancy.pustis@dsl.state.or.us

4 A Topic For Discussion What Goes Into Making Administrative Rules? We have often been asked how we develop administrative rules. The rulemaking process involves a great deal of work and planning by Division staff. The complexity of each rulemaking effort depends on whether the rule is: 1. Entirely new or intended to replace an existing rule, 2. Permanent or temporary, or 3. Based on new legislative requirements. Regardless of the nature of the rule, several "first steps" are initially taken, often virtually simultaneously, in the rule writing process: 1. Before the Division can begin developing any administrative rule, it must first request the permission of the Land Board to proceed. 2. Once Land Board authorization is obtained, the Division then establishes a preliminary timeline for the rulemaking process. The sequence and timing is established in state law in the Administrative Procedures Act. 3. If the rule is required because of a legislative action, it is often necessary to conduct research regarding its history and intent. In some instances, this requires Division staff to turn to records, often many years old, held in the Oregon State Archives. Additionally, Division staff always conduct a review of all Attorney General opinions which have been received by the agency on the topic of the rulemaking effort to ensure compliance with legal concepts. 4. Often, a committee of persons indicating an interest in, or affected by the rules is "recruited" by Division staff to help identify areas of concern, and ways to address procedural issues. 5. When the topic of the rulemaking process is one which other states have already addressed (for example, waterway and communications site leasing, and the issuing of easements), the Division will contact those states to obtain copies of their statutes and administrative rules, as well as to discuss problems which may have been encountered in administering their programs. 6. In some cases, no information is readily available to help the Division develop the rules, so it must conduct original research. Such was the case when the Division developed its rules governing the placement of cables within the Territorial Sea. After developing a first draft of the rules, the Division will notify the public of their availability and the dates and locations of hearings. To ensure that the appropriate persons are notified often requires that the Division develop a "tailor made" mailing list. Based on the comments received at, and after the hearings during the public comment period, the Division re-examines the draft rules to see if changes need to be made. The Division will then have the rules reviewed by the Department of Justice. The last step in the process is to take the revised proposed rules to the Land Board for adoption. When the rules are submitted to the Land Board, the Division also submits for the Board s consideration an analysis of the public comments received. Persons interested in the rules may also testify to the Land Board prior to final adoption. In developing administrative rules, the Division makes every attempt to ensure that people are aware of the undertaking, and are given an opportunity to meaningfully participate in the rulemaking process. Proposed Agenda For The June 2000 Land Board The next Land Board meeting will be on Tuesday, June 6 th at 10 AM. The following items are tentatively scheduled for discussion at this meeting: Action Items

5 Request for Approval to Submit FY Agency Budget Request Request for Approval to Proceed with Sandy River Navigability Study Request to Initiate Rulemaking for Land Sales and Exchanges Informational Items North Tongue Point Sale Status Report New Carissa Status Report Removal/Fill Streamlining Status Report Status of Easement Rulemaking Process Legislative Concept Status Report Actions Taken At The April 2000 Land Board Information Item With Instructions Annual review of the Common School Fund (CSF) investment performance and discussion of school distribution for the biennium*. Update on North Tongue Point sale evaluation and consideration of continued state ownership versus sale to other public or private entities. Land Board authorized the sale of the North Tongue Point via sealed bidding. See above item and attachment to this Newsletter for additional details. Request to adopt new administrative rules controlling the export of unprocessed timber from Common School Forest Lands and other Land Board managed lands. See above item for further information. Results of sealed bid process and request for final approval of sale of up to nine isolated unleased parcels of rangeland in Lake and Klamath County. See above item for further information Request for authorization to initiate rulemaking to amend administrative rules governing local wetland inventories, wetland conservation plans, and to develop new rules for preparing, reviewing and approving wetland delineation reports Request for authorization to initiate public rulemaking to revise the Division s administrative rules governing: (1) the establishment and operation of compensatory wetland mitigation banks, (2) freshwater wetland compensatory mitigation, and (3) estuarine mitigation. Request for approval to initiate public rulemaking regarding removal-fill permitting exemptions to conform with HB 3599 (1999), clarifying the definition of "converted wetlands," and to amend the removal-fill rules to conform with SB 11 (1999) regarding consolidation of ocean shore permitting. *CSF market value grew 16 percent in 1999 to a year-end balance of $816 million. School distributions of fund earnings for the FY biennium will total $16 million Request by the Columbia Soil & Water Conservation District for a "channel improvement easement" to reconnect the historic flow between Clatskanie River, Westport Slough, and the Columbia River on stateowned submerged and submersible lands adjacent to the Columbia River located within Columbia County. Request for approval to appear before the June Legislative Emergency Board to seek additional "Other Funds" expenditure limitation for

6 increasing disbursements from the Wetland Mitigation Bank Revolving Fund. Request for approval to appear before the June Legislative Emergency Board for increased Federal Funds expenditure limitation authority for the South Slough National Estuarine Research Reserve Approval of minutes of February 8, 2000 State Land Board meeting. Summary Matrix Of Rulemaking Projects Rule Land Board Authorization For Rulemaking Staff Contact Land Board Adoption (A) Actual (P) Proposed Hearings Schedule Status Granting Easements On Trust And Non- Trust Land 2/10/98 Jeff Kroft ext. 280 (P)June 2000 Completed Final version now being developed. Revise/Update Essential Salmonid Habitat Designations 8/19/99 Eric Metz 380 ext March 21, 2000 Open for more hearings Revise Rules For Issuance Of Removal-Fill Permits 8/19/99 Eric Metz ext. 266 Amend/Repeal Controlling Export Of Unprocessed Logs From Common School Forest Lands 10/12/99 John Lilly ext. 281 (A)April 2000 Completed Completed Amend/Repeal Rules Governing Local Wetland Inventories; Wetland Conservation Plans 4/18/2000 Annette Lalka ext. 233 Develop New Preparing, Reviewing, And Approving Wetland Delineation 4/18/2000 Janet Morlan ext. 236

7 Reports Amend/Repeal Establishment And Operation Of Compensatory Mitigation Banks, Freshwater Compensatory Mitigation, And Estuarine Mitigation 4/18/2000 Larry Devroy ext. 285 Develop New HB 3599; Clarify Removal-Fill Permitting Exemptions To Conform With Definition Of "Converted Wetlands," etc. 4/18/2000 Eric Metz ext. 266 Develop New Communication Site Leasing 2/8/2000 Jeff Kroft ext. 280 Develop New Agricultural Site Leasing 9/13/1994 Jeff Kroft ext. 280 OREGON DIVISION OF STATE LANDS LAND SALE PUBLIC AUCTION NORTH TONGUE POINT INDUSTRIAL SITE ASTORIA, OREGON The Oregon Division of State Lands is offering for sale about 36 acres of its North Tongue Point Industrial Site on the Columbia River at Astoria, Oregon through a modified surplus property/sealed bid public auction. The site is zoned for marine industrial uses and includes two large buildings (162,000 square feet of useable space), five piers (each about 1300 feet long), 24 acres of concrete pad/laydown area, perimeter fencing and deepwater access to the Columbia River. The sale is being offered on an "as is, where is-basis" and includes about 36 acres of upland, all improvements, rights, and interests (except as noted) including the landlord s interest in the current lease. The current lessee is Cresmont, Inc. of Seattle. The State of Oregon will retain all subsurface mineral rights. The site is located in Astoria, Oregon, Clatsop County, within Tax lot 106, Section 2, T. 8 N., R. 9 W. and a small portion of the northwest corner of Tax lot 5700, Section 11, T. 8 N., R. 9 W. A minor lot line adjustment for Tax lot 5700 is pending.

8 The minimum bid price that will be accepted is $4,000,000. In addition to the final bid award price, the successful bidder will be required to pay the cost of advertising and sale preparation at closing. The current lessee has a preference right to meet the highest public auction sealed bid. The Port of Astoria has until June 23, 2000 at 5:00 P.M. PDT to submit a surplus property bid under the preference right allowed by ORS 270. All bids must be submitted in strict adherence to the instructions contained in the bid packet. All bids MUST be received at the address listed below by, Friday, June 30, 2000, 1 P.M. PDT. The State Land Board reserves the right to reject any and all bids. A bid offer form and complete instructions for submitting an acceptable bid are available from the Division of State Lands or by calling the Division or by consulting the Division s website (see address, phone number and website address listed below). Persons interested in bidding on the North Tongue Point Industrial Site Land Sale should contact for a bid packet and instructions: Stephen Purchase Division of State Lands 775 Summer Street NE Salem, Oregon (503) 378- ext 279 [Back to Archives Index] [Home]