Monterey Sand Co. v. California Coastal Commission

In this matter we hold that petitioner’s extraction of sand from offshore surf zone areas of Monterey Bay was and is exempt from the coastal development permit requirements of the 1976 Coastal Act because it was authorized pursuant to a 1968 mineral lease granted by the California State Lands Commission.

The California Coastal Commission (Coastal Commission) appeals from a judgment compelling it to annul administrative decisions in which it was determined that respondents Monterey Sand Company and Monterey Sand Company, Inc. (hereinafter collectively Monterey Sand) were not exempt from the permit requirements of the coastal act, which judgment has the effect of allowing Monterey Sand to continue its sand mining operations without obtaining coastal development permits. We conclude that the sand extraction activities in question were “developments” as defined in the 1972 and 1976 Coastal Acts. However, we also conclude that Monterey Sand acquired the vested right to continue its activities exempt from regulation under those acts. Accordingly, we affirm.

I. Facts and Procedure

Monterey Sand began sand extraction operations at Sand City on the coast of Monterey Bay in…