Associates Commercial Corp. v. Department of Environmental Resources

11 Pa. D. & C.3d 250
CourtPennsylvania Environmental Hearing Board
DecidedJuly 2, 1979
Docketno. 78-140-B
StatusPublished

This text of 11 Pa. D. & C.3d 250 (Associates Commercial Corp. v. Department of Environmental Resources) is published on Counsel Stack Legal Research, covering Pennsylvania Environmental Hearing Board primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Associates Commercial Corp. v. Department of Environmental Resources, 11 Pa. D. & C.3d 250 (Pa. Super. Ct. 1979).

Opinion

BURKE,

Member,

This matter is before the board on an appeal by Associates Commercial Corporation (Associates), from an order of the Department of Environmental Resources (DER), dated October 3, 1978, which prohibits Associates from repossessing certain pieces of mining equipment located at surface mining operations conducted by Blake Becker, Jr., and the Becker Coal Company (referred to collectively herein as Becker). The DER contends in the order that the mining equipment is needed to reclaim the strip mine sites.

Associates has filed a motion to vacate or dismiss contending that the DER lacks the statutory authority to issue the October 3, 1978, order. Oral argument before the board en banc was held on the motion and both parties have filed briefs in support of their respective positions.

We are empowered to grant a motion to dismiss prior to hearing where, on an appeal from a DER order, appellant shows that there is no genuine issue as to any material fact and that the appellant [252]*252is entitled to judgment as a matter of law: Summerhill Borough v. Com., DER, 34 Pa. Commonwealth Ct. 574, 383 A. 2d 1320 (1978); Primrose Mining Co. v. Com., DER, EHB Docket no. 77-184-B (issued October 4, 1978).

Appellant’s motion to vacate or dismiss is granted for the reasons stated herein.

DISCUSSION

Associates is a commercial lending institution. Its involvement in this surface mining reclamation dispute stems solely from its financing of three pieces of mining equipment for Becker. The pieces of mining equipment, a Caterpillar excavator, a Caterpillar dozer and a Caterpillar wheelloader, are presently being used to mine coal at one or more of Becker’s ten strip mining operations in Pennsylvania.

Becker has defaulted on its monthly installment payments to Associates and Associates has attempted to repossess its equipment. In June 1978, Becker filed a petition in bankruptcy under Chapter 11 of the Federal Bankruptcy Act. Shortly thereafter, Associates filed a complaint in reclamation with the Federal bankruptcy court to recover the three financed pieces of mining equipment. The bankruptcy court on January 5, 1979, issued a memorandum opinion and order requiring Becker to release the three pieces of mining equipment to Associates. Its attempt at repossession is being thwarted by the October 3, 1978, order from DER, which prohibits Associates from removing any mining equipment from any mine site on which Becker is conducting surface mining operations [253]*253until the sites have been completely reclaimed in accordance with the requirements of the Surface Mining Conservation and Reclamation Act of May 31,1945, P.L. 1198, as amended, 52 P.S. §1396.1 et seq. The DER issued the order because it believes that Becker will be unable to reclaim the sites if the three pieces of mining equipment are removed therefrom.

An administrative order cannot create a duty or obligation that does not otherwise exist. An order can only interpret and apply existing law to a given factual situation. Thus, even if these ten strip-mined sites would remain unreclaimed without the use of Associates’ mining equipment, DER cannot by order require Associates to use its equipment for reclamation unless Associates is under an antecedent legal obligation to do so.

The DER grounds its order on three different statutory provisions: (1) 25 Pa. Code §77.92(f)(2) which was adopted under the Surface Mining Conservation and Reclamation Act, supra; (2) §1917-A of the Administrative Code of April 9, 1929, P.L. 177, as amended, 71 P.S. §510-17, which empowers the DER to abate a nuisance; and (3) The Clean Streams Law of June 22, 1937, P.L. 1987, as amended, 35 P.S. §691.1 et seq.

25 Pa. Code §77.92(f)(2) provides that: “Backfilling equipment needed to complete the restoration shall not be removed from the operation until all backfilling and leveling has been completed and released by the Department. Backfilling equipment shall be operable, in use, and capable of meeting the requirements of the reclamation plan throughout the life of the mining operation.”

The regulation is contained in subchapter D of Chapter 77 of 25 Pa. Code which is entitled “Re[254]*254quirements Accompanying Permits Authorizing The Operation Of Surface Coal Mines.” As the title states, it applies to the permittee-operator as a condition of his permit. It helps to assure that the permittee will comply with the duty to reclaim the surface mining operation. The permit can be immediately revoked if reclamation equipment is removed.

We disagree with the DER’s assertion that 25 Pa. Code §77.92(f)(2) also imposes upon Associates a duty to assure that reclamation equipment is present at mining operations. In fact, it is probably not possible for Associates to fully comply with the terms of section 77.92(f)(2). The second sentence requires that the equipment be kept “operable, in use, and capable of meeting the requirements of the reclamation plan.” It is unlikely that Associates can keep the equipment operable unless it has possession of the equipment. Associates cannot take possession of the equipment unless it removes it from the site and out of the control of Becker and the first sentence of section 77.92(f)(2) prohibits the removal of the equipment from the site.

Not only is Associates unable to assure DER that the equipment will remain operable, the order deprives Associates of the ability to protect and maintain its own equipment. It must rely on Becker. Also, the order enables Becker to continue to mine coal with Associates’ equipment at Associates’ loss, but at no cost to Becker for an indeterminate period, and no assurance exists that Becker will use the equipment to reclaim the land. He might use the equipment to mine coal, to restore the land or he might abandon the equipment.

In sum, we are of the view that the interpretation [255]*255placed on section 77.92(f)(2) by the DER is erroneous because: (1) Its interpretation contradicts the title of the subchapter where it is contained. Section 1924 of the Statutory Construction Act of December 6, 1972, P.L. 1339, 1 Pa.C.S.A. §1501 et seq., states that the titles of sections of a statute, although not controlling, may be used to aid in its construction. (2) Its interpretation imposes two irreconcilable duties upon appellant. Section 1922 of the Statutory Construction Act, supra, states that a presumption exists that the General Assembly intends the entire statute to be effective and certain. (3) Its interpretation places a duty upon an innocent third person to rectify a condition that he had no part in creating. (4) Its interpretation places appellant’s property in the hands of the surface mine operator for the profit of the operator, without any assurance that appellant’s property will not be misused or abandoned and without any assurance that the reclamation work will be performed.

The DER’s course of action under 25 Pa. Code §77.92(f)(2) is against the permittee-operator. If the operator has its mining equipment repossessed, it is the operator who has violated 25 Pa. Code §77.92(f)(2), not the creditor. The DER argues that if its order is not sustained, an operator will be able to circumvent section 77.92(f)(2) by selling or otherwise conveying the mining equipment to a third person. We disagree. Nothing said herein permits an operator to lawfully remove equipment from the site by conveyance to a third party.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Yania v. Bigan
155 A.2d 343 (Supreme Court of Pennsylvania, 1959)
Commonwealth v. Harmar Coal Co.
306 A.2d 308 (Supreme Court of Pennsylvania, 1973)
Summerhill Borough v. Commonwealth
383 A.2d 1320 (Commonwealth Court of Pennsylvania, 1978)
Commonwealth v. Barnes & Tucker Co.
319 A.2d 871 (Supreme Court of Pennsylvania, 1974)
United States Steel Corp. v. Commonwealth
333 A.2d 486 (Commonwealth Court of Pennsylvania, 1975)
Philadelphia Chewing Gum Corp. v. Commonwealth
387 A.2d 142 (Commonwealth Court of Pennsylvania, 1978)

Cite This Page — Counsel Stack

Bluebook (online)
11 Pa. D. & C.3d 250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associates-commercial-corp-v-department-of-environmental-resources-paenvhrbd-1979.