Title to Riverbeds (Federal Case)

State of Montana v. Talen Montana
9th Circuit (3/4/25)

In an appeal by the State of Montana and a cross-appeal by owners and operators of hydroelectric dams, the panel affirmed the district court’s judgment (1) quieting title to the United States for the riverbeds underlying four designated "Segments" of rivers within Montana's borders, and (2) quieting title to Montana for the riverbeds within the Sun River to Black Eagle Falls Segment of the Missouri River.

Whether Montana or the United States holds title depends on whether the rivers were "navigable in fact" at the time of Montana's statehood in 1889. Upon statehood, the State gained title within its borders to the beds of waters then navigable, while the United States retained title to riverbeds underlying non-navigable rivers. Applying the "navigability in fact" test for determining riverbed title, as clarified in PPL Montana, LLC v. Montana, 565 U.S. 576 (2012), the district court found only one Segment—the Sun River to Black Eagle Falls Segment—to be navigable in fact.

Addressing the State of Montana's appeal, the panel held that the district court correctly applied the PPL framework to the evidence and did not violate any PPL mandate in quieting title to the United States for the riverbeds underlying four designated Segments of rivers within Montana's borders. The panel affirmed the district court's analysis of each Segment in their entirety and held that it correctly identified and analyzed each segment under PPL, which requires that navigability for title must be determined on a segment-by-segment basis. The panel rejected Montana's argument that evidence of "actual use" of the rivers, by itself, establishes navigability. The panel also rejected Montana's arguments challenging the district court's factual findings and conclusions that the four Segments were not navigable.

On cross-appeal, the panel rejected Talen Montana, LLC and Northwestern Corporation's argument that the district court should not have considered the navigability of the Sun River to Black Eagle Falls Segment because it is part of the "17-mile Great Falls reach" that PPL held was not navigable. The panel held that the district court's review and ruling of navigability of the Sun River to Black Eagle Falls Segment was consistent with the mandate from PPL.