Taylor Shellfish, state settle dispute over South Puget Sound tidelands

After nearly a year of wrangling, Taylor Shellfish and the state have settled a dispute over state-owned tidelands in South Puget Sound that contain farmed geoduck clams and oysters.

Taylor Shellfish, based in Shelton, Mason County, will get to harvest all of the shellfish it planted on the tidelands in Totten Inlet near Olympia, but it won't get to replant or lease those tidelands, the state announced Wednesday.

As part of the agreement, the shellfish company will pay the state Department of Natural Resources (DNR) $1.5 million over three years and drop its lawsuit against the state.

Both the state and Taylor say the agreement is a favorable end to the dispute. "We felt like it was a fair outcome," said company President Bill Taylor. "We're very pleased to have this behind us."

Last year Taylor was found to be growing shellfish on about 25 acres of state tidelands. The company said it believed it owned the property, but the DNR said Taylor was trespassing on state land.

Several months ago, Taylor sued to seek ownership rights to the land, which holds valuable geoducks and oysters.

Taylor also asked the state for $4.5 million to replace revenue the company lost from not having access to the property this past year.

The lawsuit and damages claim will be dismissed. The settlement makes it clear the land belongs to the state, said Aaron Toso, a DNR spokesman.

Taylor and former Public Lands Commissioner Doug Sutherland had signed an agreement before Sutherland left office in January that required Taylor to pay more than $800,000 for back rent and scientific research — with an expectation Taylor would get a five-year lease to harvest the shellfish.

Under the agreement with new Commissioner Peter Goldmark, Taylor won't get a lease, but the company gets to harvest all of its shellfish planted on the land. Taylor must remove its oysters within six months and the geoducks within five years.

Goldmark hasn't said whether he would consider leasing the property for shellfish farming at a later date.

Michelle Ma: 206-464-2303 or mma@seattletimes.com