03/14/2007

Associated Press

Deschutes County commissioners have once again frustrated the attempts of a developer who wants to put a pumice mine, a geothermal power plant and about 100 homes in the Newberry National Volcanic Monument in Central Oregon.

The commissioners decided Tuesday to grant a Measure 37 waiver requested by James Miller's LPP Resources, but limited the approval in such a way as to preclude much development.

The commissioners turned down Miller's first Measure 37 request in November.

LPP's lawyer, Victor VanKoten, said an appeal of the second action in the courts or a lawsuit against the county is likely.

The national monument consists of more than 50,000 acres owned by the U.S. Forest Service, and it's a popular recreation area. The site is a collapsed volcano that last erupted about 1,300 years ago. The monument was designated in 1990.

The developments proposed by Miller would be on private land within the monument. The Forest Service has opposed the plans, saying the developments would degrade the protected area.

Measure 37, approved by voters in 2004, requires Oregon governments to compensate landowners when changes in zoning rules reduce the value of their properties — or to waive the rules.

In their vote Tuesday, the Deschutes commissioners waived land use regulations put in place since 1988, when LPP was formed.

Tom Anderson, the county's director of community development, said the zoning for the land at that time was for open space and conservation, which would not permit mining, residential developments or geothermal power development.

LPP had argued that its ownership interest in the property dates to 1969, when land-use regulations were less stringent.

A federal official said Tuesday that even if LPP can show its interest extends to 1969, it would be able to mine pumice but not build a steam power plant or houses.

Bob Deane, staff officer for recreation, engineering, lands and minerals with the Deschutes National Forest, said the U.S. government owned the land at the time, while a predecessor of the company had rights only to mine pumice.

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Information from: The Bulletin, http://www.bendbulletin.com