Town Of Oyster Bay v. Commander Oil Corporation

759 N.E.2d 1233 (2001)

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Nature of the Case

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Facts

Since 1929, D has owned and operated a petroleum storage facility on land adjacent to Oyster Bay Harbor in Nassau County. D stores gasoline, diesel fuel, and home heating oil at the facility. Town (P) owned the underwater land in the harbor. In 1952, replacing a previous pier, D built the pier that currently extends from its land into the harbor. Barges dock at this pier while the oil they carry is pumped through pipes to storage tanks. The basins become shallower as they accumulated silt deposited by a creek that borders D's property to the south, and a sand spit to the south and west. Stormwater runoff systems maintained by P and by the State of New York contribute to the silt deposits from these sources. In 1966, due to the accumulation of silt, D performed dredging with P's permission, under a lease effective between 1960 and 1985. Commander also had the permission of the Corps of Engineers. By 1995, the east basin was as shallow as one foot deep, while the west basin ranged from 4 to 14 feet. D did not ask P for permission to dredge but applied to State and Federal agencies. The State issued a permit effective March 20, 1995. One month later, the State Department of State issued a Consistency Certification Concurrence, concurring in D's certification that maintenance dredging was consistent with the Long Island Sound Coastal Management Program. P brought two proceedings challenging the permits. The Supreme Court dismissed both proceedings. In September 1996 P sued D seeking to enjoin D from dredging, and D cross-moved for summary judgment. The Court denied the P's application for a preliminary injunction. On the P's appeal, the Appellate Division reversed. The court held that D's right of way may not interfere with P's ownership of the underwater land and that D, in its cross-motion, had not demonstrated that the harbor conditions made dredging necessary to preserve access. On remand the Supreme Court denied the P's application for a permanent injunction, finding that 'in its natural condition prior to dredging and the augmented deposit of silt attributable to P and State stormwater runoff systems both basins of the dock were usable for tying up barges and offloading oil.' On P's appeal, the Appellate Division again reversed and this time granted the Town a permanent injunction. D appealed.