Oregon Coast Scenic Railroad, LLC v. State of Oregon Department of State Lands, No. 14-35414 (9th Cir. 2016)Annotate this Case
Oregon Coast is a non-profit corporation that operates tourist trains on a portion of track in Oregon that is owned by the Port of Tillamook Bay, a federally regulated railroad authorized by the Board. In 2014, the State sent Oregon Coast a cease and desist order, alleging that Oregon Coast’s repair work was violating a state “removal-fill law,” which, among other things, requires a state permit for the removal of any amount of material from waters designated as Essential Salmonid Habitat. Oregon Coast filed suit seeking declaratory and injunctive relief, arguing that the removal-fill law is preempted by the Interstate Commerce Commission Termination Act (ICCTA), 49 U.S.C. 10101 et seq., which governs federal regulation of railroads. The court concluded that the repair work done by Oregon Coast under its agreement with the Port falls under the Board’s jurisdiction because the work is done under the auspices of a federally regulated rail carrier and is sufficiently related to the provision of transportation over the interstate rail network. The State’s removal-fill law is preempted as applied to this work, and the district court erred in concluding otherwise. The court reversed and remanded for further proceedings because the district court’s rulings on the preliminary injunction, permanent injunction, and declaratory relief were all premised on this incorrect legal determination.