DNR-86-002-BC

                                                       2-2000-45-2

 

 

                               STATE OF MINNESOTA

                       OFFICE OF ADMINISTRATIVE HEARINGS

 

                     FOR THE DEPARTMENT OF NATURAL RESOURCES

 

 

In the Matter of the Application                          FINDINGS   OF_FACT,

of Barbara A. Orr to Place Structures                     CONCLUSIONS AND

in Mille Lacs Lake.                                       RECOMMENDATION

 

 

 

    The above-entitled matter came on for hearing before  Bruce D. Campbell,

Administrative Law Judge, on September 25 and 26, 1985, at  the  Aitkin  County

Courthouse in Aitkin, Minnesota.

 

    Appearances:  Donald A. Kannas, Special Assistant Attorney General, Second

Floor, Space Center Building, 444 Lafayette Road, St.  Paul,  Minnesota  55101,

appeared on behalf of the Department of Natural Resources (Department or DNR);

and William G. Peterson, William Peterson & Associates,  Ltd.,  Attorneys  at

Law, 8400 Lyndale Avenue South, Suite 7, Minneapolis, Minnesota 55420,

appeared on behalf of Barbara A. Orr (Mrs.  Orr or Applicant).

 

    The record closed on January 31, 1986, after the receipt by the

Administrative Law Judge of the final post hearing reply brief.

 

    Notice is hereby given that, pursuant to Minn.  Stat.   14.61  the  final

decision of the Commissioner of Natural Resources shall not be made until this

Report has been made available to the parties to the proceeding  for  at  least

ten days, and an opportunity has been afforded to each party adversely

affected to file exceptions and present argument to the Commissioner.

Exceptions to this Report, if any, shall be filed with  the  Commissioner  of

Natural Resources, Joseph N. Alexander, Third Floor, Centennial Office

Building, 658 Cedar Street, St. Paul, Minnesota 55155.

 

                               STATEMENT OF ISSUE

 

    The issue to be determined in this proceeding is whether Barbara A, Orr

should be granted a permit to place structures in Lake Mille Lacs adjacent to

her commercial campground.

 

    Based upon all of the proceedings herein, the  Administrative  Law  Judge

makes the following:

 

                                 FINDINGS OF FACT

 

    1.  On October 24, 1984, Barbara A. Orr submitted a permit application to

the Department requesting a permit to construct a "waterbreak"  in  Lake  Mille

Lacs adjacent to her commercially operated campground.  Pet.  Ex. 3.

 


    2. The structures, as more particularly described in  Pet.  Ex.  2,  consist

of two natural rock breakwaters placed 120 feet apart and extending both

perpendicular and parallel to the shoreline.  The shoreline  in  this  area  runs

generally north and south.  The southerly structure would extend from the

shoreline perpendicularly a distance of 90 feet and then at an  angle  of  45'

to the north for a distance of approximately 100 feet.  The northerly

structure would extend perpendicular to the shoreline  approximately  90  feet

with a lateral arm to the south approximately 25  feet  long.  The  configuration

of the structures leaves an entrance between the separate structures

approximately 20 feet wide.  The height of the structures would be

approximately two feet above the ordinary high water mark.  Within the

protected area created by the structures, the Applicant would  construct  a  dock

with slips for 20 boats.  In conjunction with  the  Application,  permission  to

perform maintenance dredging of the area within the two  structures  was  also

requested.

 

    3. On November 27, 1984, the project was approved  by  the  Aitkin  County

Soil and Water Conservation District.  Pet.  Ex. 6; Pet.  Ex. 8.

 

    4. An identical application was made to the United  States  Army  Corps  of

Engineers.

 

    5.  On December 18, 1984, the Corps of Engineers approved the project.

Pet.  Ex. 17.  It was the opinion of the Corps that the project would not

adversely affect the game fish population of  the  lake.

 

    6. On December 21, 1984, the Minnesota  Pollution  Control  Agency  approved

the project, provided that permits were issued in accordance with the

requirements of the Department.  Pet.  Ex. 19.

 

    7. On March 14, 1985, the Commissioner notified  the  Applicant  that  the

permit would be denied and that formal findings would be  transmitted  within  30

days.  Pet.  Ex. 25.

 

    8. On April 10, 1985, the Commissioner, by  Order,  deried  the  Application

both as to the primary request to place the structures  heretofore  described  in

Lake Mille Lacs and as to an alternative request to constract an inland

harbor.  Pet.  Ex. 30.

 

    9.  The Applicant filed a timely Notice of Appeal    DNR Ex  5

 

    10. On August 23, 1985, the Commissioner issued a  Notice  and  Order  for

Hearing.  DNR Ex. 1.

 

    !I. The Notice of Hearing was published in the  EQB  Monitor  of  September

9, 1985.  The Notice was published in the Aitkin Independent  Age  on  August  28,

1985 and September 4, 1985.  DNR Ex. 4.

 

    12. The Permit Application, the  Notice  of  Hearing  and the Affidavits  of

Publication are proper in form, content,  execution  and  filing.

 

    13. Mrs. Barbara A. Orr  operates  Orr's  campground  and trailer park in  the

Malmo Bay Area of Lake Mille Lacs, a distance  south  of  the Town of Malmo  in

Aitkin County, Minnesota.  Malmo Bay is  located  in  the  northeastern portion  of

the lake.  The campground and trailer  park  is  licensed  for 120 sites, 2/3  of

 

 

                                        -2-

 


which are occupied by essentially permanent residents and 1/3 of which  are

occupied by temporary guests.  The campground and trailer park has  a  dining

facility which also caters to transient fishermen.

 

    14. The campground occupies approximately 13 acres and has 344  feet  of

shoreline, characterized by the presence of fine sugar-like sand.  Pet.  Ex. 68.

 

    15. Mrs. Orr currently maintains permanent docks 150  feet  long.  In

addition, approximately 80 mooring posts are located up to 50 feet past  the

existing dock.  The posts are approximately 40 feet apart,  When docking space

is unavailable boats are attached to the posts.

 

    16.  The campground has a concrete boat ramp from which boats are launched

and retrieved with the aid of a four-wheel drive vehicle or a  backhoe.  The

boat ramp is frequently clogged with sand as a result of the winds and bottom

movement hereinafter described.  Mrs. Orr has received a  DNR  maintenance

permit to remove sand from her boat ramp, and does so periodically.

 

    17. The shallowness of the water, the presence of fine sand  and  the

frequent rough water make the safe launching and retrieval of boats at  the

Orr's facility difficult.

 

    18.  Lake Mille Lacs is an oval, shallow fresh water lake which has a

surface area of approximately 200 square miles and a drainage area of

approximately 400 square miles.  The prevailing winds during the  spring  and

summer, the open water fishing season, are from the south and  southwest.

 

    19. The shallowness of the northeastern portion of the lake  and  the

prevailing wind patterns make the Malmo Bay area particularly susceptible to

extremely rough water conditions.

 

    20.  During the fishing season of 1985, at least 12 strong storms caused

extreme difficulty in retrieving boats at the Orr Campgrounds.  In  the  high

winds and choppy water, there is a likelihood of damage to boats and  docks

and of personal injury.  Frequently, boats must be removed at night  in  high

winds under extremely unsafe conditions.  When a severe storm approaches, all

boats at the Orr Campground must be removed from the water.

 

    21.  In the last several years, a number of persons have been injured

attempting to retrieve boats in high winds.

 

    22. There is no evidence in the record of the average number  of  boats

launched and retrieved from the Orr Campground on any particular day.  At its

busiest time, opening weekend, the campground may handle as many as 200 boats.

 

    23.  During opening day weekend of 1985, tornado warnings and storms made

it necessary to remove as many as 200 boats from the water under  extremely

adverse conditions.

 

    24. The proposed structures will be beneficial by creating  a  sheltered

area for the launching and retrieval of watercraft.  It will  eliminate  the

threat to physical safety posed by the current open condition of the  Orr

dock,  The calmer water will enable a larger number of boats to be retrieved

more quickly and will permit the Applicant to moor her large launch at  the

campground, instead of at a neighboring resort with an inland harbor.

 

 

                                      -3-

 


    25. The construction of the structures would prevent drift  material  from

filling the boat launching area and thus make it possible to launch boats

without driving a four-wheel drive vehicle into the water.  TR. 281.

 

    26. Lake Mille Lacs, due to its oval shape without substantial  bays  or

sheltered areas, has not experienced a significant rough fish  problem.  The

shearing action of moving sand along the bottom and the prevailing wind

patterns prevent the growth of vegetation which is conducive to the  spawning

and feeding of carp and bullhead.  The lake is the state's most important lake

for the production of walleyes.

 

    27. The quieter water partially enclosed by the structures  would  provide

some habitat which may be favored by carp and bullheads.

 

    28.  The quieter, shallow waters within the structures will produce an

undetermined amount of aquatic vegetation which may be used by certain species

of rough fish to reproduce and feed.

 

    29. There is no evidence in the record regarding the  additional  quantity

of rough fish that would be introduced into Lake Mille Lacs as a  consequence

of the Orr project.

 

    30. The construction proposed in the Application would not have  a  direct

effect on the walleye population of Lake Mille Lacs or significantly  affect

the presence of rough fish in the lake.

 

    31. The Department is concerned about creating an  unfavorable  precedent

if construction is allowed.  TR. 539.  For the last 15  years,  the  Department

has imposed an unofficial moratorium on the granting of permits like this  on

Lake Mille Lacs.  The Department reasons that all future  construction  permits

will have to be granted if the unofficial moratorium is not followed and  the

cumulative effect will be detrimental to the walleye population of the  lake.

 

    32. Beginning in the early 1970's, the Department of  Natural  Resources

adopted an informal moratorium on the construction of inland harbors and

offshore structures in the lake.  Prior to the moratorium, 32  inland  harbors

and 8 breakwaters and inlake structures had been constructed in Lake Mille

Lacs.  A number of the protected areas are in Malmo Bay which is  subject  to

the wind and water conditions heretofore described.

 

    33.  Gill net information and creel census data from the early 1960's

until the present date indicate that the walleye population in Lake Mille Lacs

is as high as it has ever been.  There is no significant rough fish

incursion.  TR. 553-554.

 

    34. Although indicating an intention to do so, the Department  has  never

undertaken a study of the effect of inland harbors and inlake structures  on

the walleye population of the lake.

 

    35. The unofficial policy of the DNR of not allowing  additional  inland

harbors or structures in Lake Mille Lacs was not promulgated as a rule  under

the Administrative Procedures Act.

 

 

 

                                       -4-

 


    36.  The project will result in some erosion of the sand shoreline

adjacent to the northern most structure for a distance of up to several

hundred feet.

 

    37.  The erosion could be controlled through the use of riprap.

 

    38. Carp exhibit some rooting tendency which may have a  minor  adverse

effect on water quality.  TR. 491.

 

    39. The beach and shoreline in front of the Orr Campground  provides  no

particular habitat for walleyes or other game fish and is not located in  a

posted fish spawning area.

 

    40.  The posts currently placed several hundred feet into the  lake  provide

no protection for boats in the event of storms.  Moreover, placing and

removing boats at the posts is dangerous in rough water.

 

    41. Boatlifts could not be used to provide protection to  the  numerous

boats launched and landed at the Orr facility.  Each lift can  accommodate  only

one boat.

 

    42. There is not sufficient area on the Orr property for the  creation  of

an inland harbor of sufficient size to service the commercial traffic at  the

campground.  TR. 75; TR. 369-370.  Moreover, an inland harbor  with  a  mouth

along the Orr shoreline would be subject to frequent sand accumulations,

requiring continual dredging and maintenance.  TR. 634-635.

 

    43. On August 31, 1984, a representative of the Army Corps  of  Engineers

and the DNR met with Mrs. Orr at her campground.  At that meeting,  both  the

DNR representative and the representative of the Army Corps of Engineers

dissuaded Mrs. Orr from proposing an inland harbor based on the  practicality

of the proposal and the history of the denial of such requests.  TR.  163;  TR.

75-76; TR. 634-635.  Mrs. Orr proceeded with the current proposal  primarily  on

the basis of the representations of the governmental officials.

 

    44.  The Department of Natural Resources has indicated on a number of

occasions that an inland harbor at the Orr property would be  objectionable.

TR. 497; TR. 541-542; TR. 618, 620.  In her permit application, Mrs.  Orr  made

the alternative proposal of an inland harbor.  Pet.  Ex. 3. The  Order  of  the

Commissioner denied both the proposed breakwater and the alternative of  an

inland harbor.

 

    45. As a consequence of Findings 42-44, supra, an inland harbor  at  the

Orr Campground is not a feasible alternative.

 

    46. A winching system would not be acceptable since it would  not  offer

protection in the event of storm conditions and would not appreciably  reduce

physical injury or property damage experienced in retrieving boats under

adverse conditions

 

    47. The erosion to the sand shoreline north of the  northernmost  structure

could be ameliorated by depositing the sand periodically taken from the

protected area into any portion of the shoreline subject to erosion or  scour.

 

 

 

                                      -5-

 


    48. Creating some additional habitat suitable for the  reproduction  and

feeding of rough fish could be mitigated by the periodic removal of any

accumulations of aquatic vegetation and by including the structures the

maximum openings as are consonant with their structural stability.

 

    49. The proposed construction allows for the mooring of twenty  boats,  or

approximately .17 protected moorings for each authorized campsite or  mobile

home site at the Orr Campground.

 

    50. Due to the shallowness of the water along the Orr property,  there  is

no water traffic near the shoreline.  Moreover, the proposed structures will

extend some 80 to 100 feet less out into the water than the existing docks and

mooring posts, reducing the waterward occupation by 112.

 

    Based upon the foregoing Findings of Fact, the Administrative Law  Judge

makes the following:

 

                                   CONCLUSIONS

 

    1.  The Administrative Law Judge and the Minnesota Department of Natural

Resources have jurisdiction over the Permit Application herein.

 

    2.  All relevant substantive and procedural requirements of law and rule

have been fulfilled.

 

    3. At the time Barbara A. Orr made an application to place  structures  in

Lake Mille Lacs, it constituted protected public waters of the state as  those

terms are used in Minn.  Stat.  Ch. 105.

 

    4. The structures herein sought to be placed in Lake Mille Lacs  will  not

obstruct navigation or create a water safety hazard.

 

    5. A grant of the permit herein will not be detrimental  to  significant

fish and wildlife habitat or protected vegetation.

 

    6.  The proposed project represents the minimal impact solution to a

specific need with respect to all other reasonable alternatives.

 

    7. The project will involve a minimum of encroacnment, change,  or  damage

to the envi ronment , i ncluding but not limited to f ish and wild I ife habitat,

navigation, water supply, and storm water retention.

 

    8. The proposed structures are consistent with  applicable  governmental

management standards and ordinances for the waters involved.

 

    9. Modifications to the plan proposed and the imposition  of  additional

requirements on the Applicant, as discussed in the Findings and Recommendation

herein, would mitigate any adverse effects on the physical or biological

character of the waters.

 

    10.  An alternative dock or inland facility at the Orr Campground is

infeasible.

 

    11.  The structures are adequate in relation to the appropriate

engineering factors listed in the applicable Minnesota Rules.

 

                                       -6-

 


    12. The application and plan for construction is adequate in  relation  to

the geologic and hydrologic factors contained in Minnesota Rules.

 

    13.  The size and shape of the structures are designed in a compact

fashion so as to blend in with the surrounding shoreline while minimizing  the

surface area occupied in relation to the number of watercraft to be served.

 

    14.  The structures do not exceed the minimum thickness necessary to

withstand the anticipated forces consistent with maintenance requirements  and

are constructed of natural materials.

 

    15.  The structures minimize encroachment waterward of the ordinary high

water mark and provide a number of protected mooring spaces consistert with

Minnesota Rules.

 

    16.  The Applicant herein has established by a preponderance of the

evidence that the application is reasonable, practical and will adequately

protect the public safety and promote the public welfare if the conditions for

mitigation of the possible adverse environmental consequences discussed in the

Findings herein are made a condition of the permit.

 

    17,  The Applicant has met any burden of proof under the Minnesota

Enviromental Protection Act and the Minnesota Environmental Rights Act

relating to a lack of feasible and prudent alternatives.

 

    18.  The proposed construction does not violate any Departmental rule

relating to excavation in protected waters,

 

    19. Any of the foregoing Findings of Fact which are more  properly  termed

Conclusions and any of the Conclusions herein contained more properly termed

Findings of Fact are hereby expressly adopted as such.

 

    Based on the foregoing Conclusions, the Administrative Law Judge makes the

following:

 

                                 RECOMMENDATION

 

    It is the recommendation of the Administrative Law Judge that the

Commissioner grant the Application herein to construct the structures in  Lake

Mille Lacs in accordance with the submitted design with the following

conditions:

 

    1,  In addition to the water connections to the lake through the

navigation channel and through the natural rock structure, the Commissioner

should designate such reasonable culverts or other interruptions in the wall

surface as will accomplish adequate water flows and allow maximum  particulate

movement, consonant with the stability and purpose of the structures.

 

    2.  The Applicant must periodically remove from the area of sheltered

waters any aquatic vegetation that occurs under such permits or conditions  as

may be determined by the Commissioner.

 

 

 

 

                                      -7-

 


    3.  The Applicant must install and maintain on the structures such

navigational lights and guiding devices as are required by the United States

Coast Guard.

 

    4.  The Applicant must place the sand material taken from within the

structures and adjacent areas to such reasonable locations upland or adjacent

to the structure or such areas in the bed of Lake Mille Lacs as may sustain

any scouring or erosion as a result of the structures as may be directed by

the Commissioner.

 

 

Dated this 3rd day of March, 1986.

 

 

 

 

                                            BRUCE D. CAMPBELL

                                            Administrative Law Judge

 

 

 

 

                                       NOTICE

 

    Pursuant to Minn.  Stat.  14.62, subd. 1, the agency is required to serve

its final decision upon each party and the Administrative Law Judge by first

class mail.

 

Reported:  Court Reported by

           Mary Ann Hintz

           Route 4, Box 142

           Isanti, MN  55040

 

 

                                     MEMORANDUM

 

    Barbara Orr's application for a permit to place structures in Lake Mille

Lacs is made pursuant to Minn.  Stat.  105.42 (1984), which requires

permission from the the Commissioner of Natural Resources prior to certain

described construction in public waters of the state.  Lake Mille Lacs is,

certainly, within the definition of public waters of the state.  Minn.  Stat.

 105.45  (1984), sets the standards for the grant of the permit herein.  The

statute,  in relevant part, provides:

 

         If the commissioner concludes that the plans of the

         applicant are reasonable, practical, and will adequately

         protect public safety and promote the public welfare, he

         shall grant the permit . . ..  In all other cases the

         commissioner shall reject the application or he may require

         such modification of the plan as he deems proper to protect

         the public interest.  In all permit applications, the

         applicant has the burden of proving that the proposed

         project is reasonable, practical and will adequately

         protect the public safety and promote the public welfare.

 

 

                                         -8-

 


         In granting a permit the commissioner may include therein

         such terms and reservations with respect to the amount and

         manner of such use or appropriation or method of

         construction or operation of controls as appears reasonably

         necessary for the safety and welfare of the people of the

         st ate

 

Hence, it is apparent that the burden of proof herein is on  the  Applicant.

 

    Since the environment is involved, however, the Commissioner  must  also

comply with the Minnesota Environmental Rights Act, Minn.  Stat.  Ch.  116B

(1984), and the Minnesota Environmental Policy Act, Minn.  Stat.  Ch.  116B

(1984).  Basically, those Acts prohibit the grant of  any  administrative  permit

which will impair, pollute, or destroy the air, water, land or  other  natural

resources of the state if there is a feasible and prudent alternative

consistent with reasonable requirements of the public health,  safety  and

welfare and the state's pairmount concern for the protection of the

environment.  Minn.  Stat.  116B.09, subd. 2 (1984); Minn.  Stat.  116D.04,

subd. 6 (1984).  A violation of the Minnesota Environmental Rights  Act  or  the

Minnesota Environmental Policy Act may be established by showing that a

governing rule is violated.  Minn.  Stat.  116B.02, subd. 5 (1984).

 

    The main Departmental rule of concern in this proceeding is  Minnesota  Rule

6115.0210, subp. 3, which lists conditions under which structures may  not  be

placed in public waters.   There is no serious contention that  the  structures

Mrs. Orr intends to place  in the lake will obstruct navigation or  create  a

water safety hazard.  Nor  is there any suggestion that the structures  will  be

used for human habitation, as a boathouse, or as a structure  including  walls,

a roof or sewage facilities.  The primary objection of the  DNR  relates  to

Minnesota Rule 6150.0210, subp. 3B, which prohibits the placement of

structures when the work "will be detrimental to significant fish  and  wildlife

habitat or protected vegetation.  Construction is prohibited in posted fish

spawning areas." It is stipulated that the Orr beachfront is  not  a  fish

spawning area.  The waters in front of the Orr property provide no

particularly beneficial walleye or game fish habitat,

 

    The position of the Department, apparently, is that the word  "habitat"  as

contained in tne rule refers to the entirety of the shoreline of ake Mille

Lacs   It is argued that the structure will enclose an amount of  water,  foster

the development of vegetation within the orotected area and serve as  a  place

of incubation for unwanted rough fish.  Some undetermined level  of  rough  fish

may compete with walleye, the preferred species, for food and may  make  fishing

on the lake generally less desirable.

 

    The record, however, leads only to the conclusion that  the  development

proposed by Mrs. Orr will not have a significant impact on  any  particular

habitat for walleye on Lake Mille Lacs or upon the presence of rough  fish  in

the lake.  Some 40 inland harbors and inlake protected  areas  were  created

prior to the moratorium announced by the DNR in the early  1970s.  However,  the

record establishes that the walleye population of the lake has  never  been

higher and that rough fish pose no current problem for the lake.  As  noted  in

the Findings, the real concern of the Department is not the effect  of  Mrs.

Orr's proposal alone, but rather the effect it may have as a  precedent  for

other development in the lake.  It was conceded by the DNR  that  rough  fish

 

 

                                       -9-

 


habitat in the lake is not a problem and that Mrs. Orr's  proposed  construction

itself would not threaten the walleye or game fish population of the lake.

TR. 512; TR. 539; TR. 531; TR. 540.

 

    Since the unofficial moratorium on construction in Lake Mille Lacs was

adopted by the Department in the early 1970s, no study of the degree  to  which

inland harbors or inlake structures contribute to the rough  fish  population

has been undertaken by the Department.  There has been no showing in any

proceeding, whether contested case or rulemaking, that the "no build" policy

it has adopted is necessary and reasonable.  Simply stated,  the  Department  has

attempted to place Lake Mille Lacs in a total "no build" condition  despite  the

existence of rules allowing building if an applicant meets the stated criteria.

 

    The Department argues that its position with respect to  the  interpretation

of its rule is reasonable since it would be required to grant the permits of

all similarly situated individuals, eventually resulting in a cumulative

adverse effect on the walleye population of the lake.  Northwestern colleqe  v.

City of Arden Hills, 281 N.W.2d 865 (1979).  That decision, however, does  not

prohibit the Department of Natural Resources from protecting the  integrity  of

Lake Mille Lacs.  The touchstone of the Northwestern College  decision  is  that

there may not be invidious and arbitrary discrimination against applicants

similarly situated.  It cannot be seriously argued that every permit

application, irrespective of the area of the lake involved or the need

demonstrated, would be identical.  See, Prior Lake Aggregates, Inc.  y.  City  of

Savage, 349 N.W.2d 575, 580 (Minn.App. 1984).

 

    Moreover, subsequent applicants may not otherwise be similarly  situated.

If additional structures or inland harbors are created in the lake,  the  effect

of those structures and additional inland harbors would bear on  the  propriety

of granting any further permit.  A later applicant for a permit  in  Lake  Mille

Lacs is not similarly situated with a current applicant.

 

    What is needed is for the Department not to abdicate its regulatory

authority by an unwritten moratorium, but to determine the point at  which  a

demonstrable adverse effect on the game fish population of the lake may be

established in a contested case proceeding.  They have not done so here.

 

    Noreover, it is apparent that the specter of an adverse precedent is  not

sufficient grounds for abrogating or refusing to enforce an  existing  rule.  In

Odell v. City of Eagan, 348 N.W.2d 792 (Minn.App. 1984), the Court  refused  to

accept as a reason for denying an otherwise valid permit application the

precedential value of the action,  Moreover, in Cardon v. Cromarty, 221

N.Y.S.2d 924, 926 (Sup.  Ct. 1961), the Court held that each application  must

be viewed on its own merits without reference to other applications.

 

    What the Department has attempted to do is place Lake Mille Lacs in a

special protected category, denying all inlake and inland  construction.  Its

attempt to do so, irrespective of the directive of its rules, is, in  itself,

an invalid unpromulgated rule.  It is clear that a moratorium to  suspend  the

application of an existing statute or ordinance is inappropriate.  The

Minnesota State Supreme Court has expressly disapproved such moratoriums.

Ostrand v. Village of North St. Paul, 147 N.W.2d 571 (Minn. 1967);  Alexander

v. City of Minneapolis, 125 N.W.2d 583 (Minn. 1963).

 

 

 

                                      -10-

 


   The actions of the Department in imposing an unofficial moratorium on

future development irrespective of a demonstrated impact on the fish  resources

of Lake Mille Lacs is clearly an invalid, unpromulgated rule.  In  Laura  Baker

School v. Department of Human Services, 377 N.W.2d 465 (Minn.App. 1985),  the

Commissioner of Human Resources imposed an administrative moratorium on the

application of certain of the Agency's rules.  The Court of Appeals hold:

 

        The administrative moratorium adopted by DHS was  illegal.

        The moratorium is clearly within the statutory  definition

        of a rule  . . . .  Minn.  Stat.  14.02, subd. 4 (1982).  In

        the case of the moratorium, DHS adopted a new policy for

        determination of need.  Rather than considering the various

        factors set out in Minn.R. 9525.0080, it instead adopted a

        flat rule that no determinations of need would be  issued.

        When a rule such as this is not adopted according to the

        procedures set out in the APA, Minn.  Stat.  14.131 -

        .365, the rule will be invalidated.  White Bear  Lake  Care

        Center, 319 N.W.2d at 9.

 

It is clear that the "no build" status into which the Department has placed

Lake Mille Lacs is an abrogation of DNR's existing rules regarding the

placement of structures in public waters.

 

   The Department may argue the reasonableness of its position and  the  need

to protect Lake Mille Lacs, the most valuable walleye resource of the State  of

Minnesota, from any type of degradation.  If the necessity  and  reasonableness

for such a rule can be established, the Department should engage in a

rulemaking proceeding rather than by adopting an unofficial moratorium

abrogating existing rules.  The Department cannot claim that an emergency

situation requiring immediate action has been established.  The  moratorium  has

been in effect longer than the initial rules of the Department.  Moreover,  as

late as 1983, the Department substantially revised its rules and took no

action with respect to protecting particular public waters from additional

construction.

 

   Having chosen not to demonstrate the need and reasonableness of  a  complete

no build" solution in a rulemaking proceeding, the Department must  show  that

the application of Mrs. Orr will have a material adverse impact on  significant

fish or wildlife habitat.  This it has failed to do.  Under such

circumstances, the Administrative Law Judge concludes that none of the

conditions contained in Minnesota Rule 6115.0210, subp. 3, prohibiting the

placement of the structures, has been established.

 

   It should be noted that counsel for the DNR stated at the hearing  that  the

impact of the development on the walleye population of the lake was the  reason

for denial of the permit,  TR. 11.

 

   Minnesota Rule 6115.0211, subp. 4 contains specific standards for the

grant of a permit for breakwaters and marinas.  The only  condition  contained

in that rule raised at the hearing was the requirement that "alternative  dock

or inland facilities are infeasible".  As demonstrated in the record,  there  is

adequate reason to conclude that an inland facility at the Orr campground  is

infeasible.  Moreover, it is disingenuous of the Department to raise that

issue in this proceeding after Mrs. Orr was advised by DNR personal that  such

an inland harbor was not feasible on her property.  It was, primarily,  on  the

basis of such representations that she proceeded with her current proposal.

 

 

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Under such circumstances, Mrs. Orr might well argue an estoppel on the part  of

the Department to raise the issue at this stage of the proceedings.  Hart  v.

Bell, 222 Minn. 69, 24 N.W.2d 41 (1946).  See, 31 C.J.S., Estoppel,    117.

The DNR also in its contacts with Mrs. Orr and in the Order of the

Commissioner denied the grant of a permit for an inland harbor.

 

    The Administrative Law Judge, however, need not rely on the presence of  an

estoppel.  The record adequately demonstrates that the area available  for  an

inland harbor on the Orr property would be inadequate and that it would  be

subject to perpetual clogging from the moving sands experienced at  that

portion of the lake.

 

    The recent revisions to the DNR rules contain general criteria in  addition

to those previously discussed limiting the grant of permits for  construction

in public waters of the state.  Minnesota Rule 6115.0210,  subp.  5.  The

requirements of that Rule are satisfied by the Findings which demonstrate  the

absence of a feasible alternative, including a "no build" alternative and  the

conditions that the Administrative Law Judge has imposed on the grant of  the

permit.

 

    While the conditions imposed on the grant of the permit are

self-explanatory, a discussion of the alternatives available to Mrs. Orr

appears appropriate.  As demonstrated in the Findings, no reasonable

alternative would alleviate the problem Mrs. Orr experiences in operating  her

commercial campground.  The concern is not for the economic viability  of  Mrs.

Orr's enterprise but for the protection of property and persons using her

facility.

 

    The only alternative that the Department seriously suggests is  appropriate

in this circumstance is the "no build" alternative.  The Administrative Law

Judge finds that alternative inappropriate.  As previously  demonstrated,  the

proposal will have an insignificant impact on the environment.  The  "no  build"

alternative, however, will still subject those persons who use Mrs. Orr's

facility to the risk of property damage and physical injury.  Under such

circumstances, weighing the argued precedential effect of granting the  permit

against the real harm occasioned by the "no build" solution, the

Administrative Law Judge finds that it is not a reasonable  alternative.

 

    it was suggested at the hearing that the regulations of the  Deoartment

relating to excavation in public waters for haroors and boatlifts might  be

relied upon to deny the application herein.  The only two sections of the

applicable rule advanced by the Department at the hearing for the denial of

the permit are contained in Minnesota Rule 6115.0200, subp. 3 A and  C.  Those

two prohibitions, however, parallel the rule regarding the placement  of

structures in public waters.  The rule prohibits an excavation when  there  is

an alternative means which would result in less environmental impact or  when

the excavation would be detrimental to significant fish and wildlife  habitat

or protected vegetation and there are alternative means to mitigate  the

effects.  As demonstrated with respect to the rule regarding the  placement  of

structures in public waters, the proposal of Mrs. Orr represents a  minimum

impact solution.  The proposal will not have an appreciable impact on  the  fish

population of the lake and those minor adverse environmental impacts that  can

be predicted are subject to acceptable methods of mitigation.  Hence,  the  rule

regarding excavations in public waters may not be used to deny the  permit.

 

                                     B.D.C.

 

 

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