Judge confirms Alcoa’s ownership of Yadkin River property and dismisses state’s lawsuit

Alcoa Power Generating Inc. (APGI) scored another key legal victory over the State of North Carolina in federal court Monday when a federal judge confirmed the company’s ownership of the Yadkin River property where it operates four hydroelectric dams. U.S. District Court Judge Terrence Boyle granted APGI’s motion for summary judgment and dismissed the state’s lawsuit seeking ownership of the riverbed beneath the dams. 

“The evidence, even viewed in the light most favorable to the State, overwhelmingly demonstrates that Alcoa has title to the bed of the Relevant Segment,” concluded Judge Boyle.

APGI successfully argued that the company has valid title to the riverbed and has been in actual, open, adverse, exclusive, and continuous possession of the property for more than 50 years.

“Alcoa is pleased with the court’s ruling affirming our ownership of the Yadkin River property,” said Ray Barham, APGI Relicensing Manager. “With this ruling we encourage the State of North Carolina to quickly issue the 401 water quality certificate so we can begin making investments in water quality improvements and bringing other significant benefits to the region once a new federal license is issued.”

This is the latest in a string of legal victories for APGI. Judge Boyle in April ruled in Alcoa’s favor that the relevant portion of the Yadkin River was not navigable, a crucial distinction that squashed the state’s argument that it was entitled to special property rights.

On Friday, September 25, a Wake Court Superior Court judge upheld a previous ruling that the N.C. Division of Environment and Natural Resources exceeded its authority, acted erroneously and failed to act as required by law when it denied APGI a 401 water quality certificate. The denial was overturned and the state agency has been ordered to act on APGI’s application within 30 days.

Court rules in favor of Alcoa

Judge Terrence Boyle on Wednesday denied the State of North Carolina’s motion to remand its lawsuit against Alcoa back to state court. With that ruling, the lawsuit shall remain in federal court.

Alcoa has maintained that the suit belongs in federal court because the case revolves around the question of navigability as defined by Federal law. Judge Boyle agreed, noting that "questions of navigability for determining state riverbed title are governed by federal law."

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