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Contested revocable-permit renewal on Kaua'i draws legal challenge and pledge to negotiate fence solution
Summary
A beneficiary asked the commission to deny renewal of revocable permit RP-495, saying Kahua Ranch had failed to maintain a five‑strand fence and allowed cattle to enter a neighboring homestead; the commission approved the renewals but staff pledged to pursue a negotiated engineered fence and signaled potential contested-case steps.
The commission considered a package of revocable-permit renewals for parcels across North and West Hawaii and approved the renewals on June 16. The renewal of revocable permit RP-495 (Kahua Ranch Limited) drew sustained public comment and a legal challenge from a neighboring homestead lessee.
Henderson Huihui, staff attorney at the Native Hawaiian Legal Corporation, testified on behalf of beneficiary Oliver Lum and asked the commission to deny renewal of RP-495. Huihui said Kahua Ranch, a non-beneficiary operator, had failed to comply with the RP's terms requiring a five‑strand barbed-wire fence and that the absence of fencing and other maintenance had allowed Kahua Ranch cattle to graze on and commingle with Mr. Lum's cattle. Huihui urged the commission to deny renewal; his client requested a contested case hearing should the commission proceed with renewal.
Russell Kaupu, office of the chair, and land management staff described a multi-step approach LMD is pursuing: renew the permit to maintain continuity of ranch operations, then require the ranch to install a fully engineered cattle fence to create a clear boundary and resolve a specific watering-cell dispute; LMD proposed an arrangement under which the ranch could proceed with fencing and the department would indemnify or reimburse the ranch for fence costs should the RP be terminated before the ranch had amortized the fencing expense.
Commissioners and staff said the facts reflect a long-running boundary and water-rights dispute dating back to a settlement that carved a homestead out of a larger ranch parcel. Commissioners noted that the dispute is contentious and likely to require additional legal and administrative steps; Huihui indicated Mr. Lum may pursue a contested case if the renewal proceeds. The commission approved the RP renewals at the meeting after discussion; staff and the parties said they would continue negotiations and that the department would consider contested‑case procedures if required.
Why it matters: The matter raises typical trust-administration tensions: balancing continued productive use of trust lands by permittees with the commission's fiduciary duty to protect beneficiary homestead uses and rights to water and boundary integrity.
