Wow, ignoring legal concerns for a moment, I’d be nervous being that close to the river. With that picture being in October, I’d be curious what spring thaw water levels might be. I’m not sure I’d want to mess with that even if it was 100% legal.
I love the quote from the Amblers,"We didn't know we needed a permit".... They're from San Diego and are wealthy enough to buy one of the inholder properties in Glacier but yet they don't know that permits are required for building a house? I think this is more likely a case of rich Californians coming to Montana and thinking that they can do whatever they want.
If they truely didn't know they needed a permit to build there, or that there were special restrictions on inholder properties, then their contractor and real-estate agents are the ones they should be suing, not the Conservation District.