The state Department of Land and Natural Resources said it is seeking a reconsideration or stay after Second Circuit Court Judge Peter Cahill issued an order that would stop the renewal of commercial use permits in Kaanapali ocean waters.

According to officials inside the department, it is looking into a solution that addresses the environmental concerns detailed in a lawsuit and is hoping the court will reconsider or stay the injunction.

The lawsuit was brought by Na Papa’i Wawae ‘Ula’ula, Randy Draper and the West Maui Preservation Association. The suit was filed in 2017, saying a “hard look” was needed at Kaanapali commercial ocean users’ impacts on wastewater discharge and the alleged misuse of beach access including parking previously designated for residents.

In April, the Intermediate Court of Appeals ruled that the group represented by attorney Lance Collins had a legal basis to ask for an environmental review for commercial operators in Kaanapali waters — something the Second Circuit Court had previously denied.

According to the department, the ruling does not halt operations that have permits now or might be qualified for an exemption that shows their activity has no significant cumulative impact, but it does cancel future permits until an environmental review takes place or they receive an exemption.

Collins said the state had the opportunity to seek a Supreme Court review but chose not to do so and the appeals court’s ruling is binding. Collins said the group planned to file a motion finding the state in contempt of court for defying Cahill’s order and issuing four commercial permits.

The department noted that the stay could have financial implications for the families and employees of the permittees.

Attorney Denver Coon said his family has been operating Trilogy trips to Kaanapali since 1973 and makes eight stops at Kaanapali beach a day to pick up and drop off passengers for a trip to Lanai or for a dinner cruise.

He said the business is hurting after the August 2023 wildfire left them with fewer places for cruises.

In the lawsuit, Draper alleged he has been thwarted from using public parking stalls due to the occupancy of those stalls by commercial use permit holders’ employees, agents, contractors or customers.

The lawsuit also says the Lahaina pumpout station for wastewater does not have the capacity to allow all passenger-carrying ocean vessels in West Maui to use the pumpout station on a regular basis.

Collins said there were other issues as well including the impact on traditional fishing and the safety of boat paddlers, surfers and snorkelers.