Oregon Department of State Lands outlines rules for historically filled lands

Oregon's Senate Bill 165, introduced on April 9, 2025, aims to clarify and streamline the management of historically filled lands, particularly concerning mineral and geothermal resource rights. The bill seeks to address longstanding ambiguities in property rights and state ownership of these lands, which have been a source of contention among property owners, environmental advocates, and state agencies.

One of the key provisions of SB 165 is the stipulation that the Department of State Lands (DSL) cannot reserve mineral and geothermal resource rights in historically filled lands unless a significant resource is determined to exist. This change is expected to benefit property owners by transferring previously reserved rights back to them, thereby enhancing their property value and development potential. Additionally, the bill mandates that by December 31, 2028, the DSL must record a notice of historically filled lands with county clerks, providing clarity on state ownership and rights associated with these areas.

The bill has sparked notable debate, particularly regarding its implications for public access to waterways. In negotiations with property owners, the DSL is instructed to prioritize public access over obtaining fair market value for historically filled lands. This provision has raised concerns among some stakeholders about the potential for reduced compensation for landowners, while others argue it is a necessary step to ensure public enjoyment of Oregon's natural resources.

Economically, SB 165 could lead to increased development opportunities for property owners, potentially stimulating local economies. However, it also raises questions about environmental stewardship and the balance between private property rights and public access to natural resources.

Experts suggest that the bill's passage could set a precedent for how historically filled lands are managed in the future, impacting not only property owners but also the broader community's access to waterways. As the legislative process unfolds, stakeholders will be closely monitoring amendments and discussions surrounding SB 165, which could shape the future landscape of land management in Oregon.