Ppl Montana, LLC v. Montana
182 L. Ed. 2d 77, 565 U.S. 576, 2012 U.S. LEXIS 1686 (2012)
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Rule of Law:
The determination of a state's title to a riverbed under the equal-footing doctrine must be made on a segment-by-segment basis, assessing whether each disputed segment was navigable in fact, for commercial purposes, at the time of statehood.
Facts:
- PPL Montana, LLC (PPL) and its predecessor have operated hydroelectric dams for over a century on specific segments of the Upper Missouri, Madison, and Clark Fork rivers in Montana.
- The dams are located on segments characterized by significant natural obstructions, including the 17-mile Great Falls reach of the Missouri River, which consists of five waterfalls and continuous rapids.
- Another dam is located at Thompson Falls on the Clark Fork River, a segment described as a torrential stream with numerous rocks, rapids, and falls.
- Historically, these obstructed segments could not be traversed by watercraft and required overland portage, as famously demonstrated by the Lewis and Clark expedition's 18-mile portage around the Great Falls.
- For decades, PPL and its predecessor paid rent to the United States for the use of these riverbeds.
- Despite being aware of the dams for many years, the State of Montana did not assert an ownership claim or demand rent for the use of the riverbeds until recently.
Procedural Posture:
- Parents of Montana schoolchildren sued PPL in the U.S. District Court for the District of Montana, alleging PPL's dams were on state-owned land.
- The State of Montana joined the lawsuit, seeking rent from PPL for use of the riverbeds.
- The federal case was dismissed for lack of diversity jurisdiction.
- PPL then sued Montana in a Montana state trial court (First Judicial District Court), seeking a declaration that the state could not charge rent.
- Montana filed a counterclaim, seeking a declaration that it owned the riverbeds under the equal-footing doctrine.
- The state trial court granted summary judgment to Montana, awarded the state approximately $41 million in back rent, and PPL appealed.
- The Montana Supreme Court, in a divided decision, affirmed the trial court's ruling.
- The U.S. Supreme Court granted PPL's petition for a writ of certiorari.
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Issue:
Does the determination of navigability for the purpose of state riverbed title under the equal-footing doctrine require a segment-by-segment analysis of the river, where the necessity of overland portage is evidence of non-navigability for that segment?
Opinions:
Majority - Justice Kennedy
Yes. The determination of navigability for state riverbed title must be made on a segment-by-segment basis, and the need for portage demonstrates non-navigability. The Montana Supreme Court erred by rejecting this Court's settled segment-by-segment approach and instead treating entire rivers as navigable despite significant non-navigable interruptions. The court wrongly dismissed the necessity of overland portage; in fact, the need to bypass a river segment over land is compelling evidence of that segment's non-navigability for title purposes. The lower court also erred by relying on evidence of modern, recreational use (like rafting) to determine navigability at the time of statehood in 1889. The proper inquiry focuses on susceptibility for commercial trade and travel in the customary modes of that historical era, and the state failed to show that modern recreational watercraft are analogous to historical commercial boats or that the rivers have not changed in ways that improve their navigability.
Analysis:
This decision reaffirms and clarifies the segment-by-segment approach for determining state riverbed title under the equal-footing doctrine, preventing states from claiming title to an entire river based on the navigability of only some portions. It establishes a clear distinction between the test for 'navigability for title' and the more expansive tests used for federal regulatory authority under the Commerce Clause. The ruling places a significant evidentiary burden on states to prove historical, commercial navigability for each specific segment claimed, thereby limiting retroactive claims against long-standing private or federal uses of riverbeds in historically non-navigable areas.
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