COTEAU PROPERTIES CO. v. Oster

2000 ND 23, 606 N.W.2d 876, 2000 N.D. LEXIS 27, 2000 WL 199442
CourtNorth Dakota Supreme Court
DecidedFebruary 22, 2000
Docket990264
StatusPublished
Cited by1 cases

This text of 2000 ND 23 (COTEAU PROPERTIES CO. v. Oster) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
COTEAU PROPERTIES CO. v. Oster, 2000 ND 23, 606 N.W.2d 876, 2000 N.D. LEXIS 27, 2000 WL 199442 (N.D. 2000).

Opinion

NEUMANN, Justice.

[¶ 1] Herbert Oster and Ruth Oster appeal from the trial court’s order 1 affirming the Public Service Commission’s decision approving Coteau Properties’ mining permit revision. We affirm.

[¶ 2] Coteau Properties Company operates the Freedom Mine located north of Hazen in Mercer County. In 1992, the North Dakota Public Service Commission (“PSC”) issued Coteau Properties a mining permit. On April 28,1998, Coteau Properties applied for a permit revision to add approximately 80 acres and change the post-mining use on 637 acres. The proposed post-mining use change included a 45-acre lake, Harmony Lake. Harmony Lake would be fed by Antelope Creek and used for recreational boating and fishing. Herbert and Ruth Oster own 960 acres located below Harmony Lake’s proposed site. East Antelope Creek crosses the Osters’ land.

[¶ 3] On August 31, 1998, the North Dakota State Water Commission (“Water Commission”) held a public hearing concerning the proposed lake. 2 The Osters attended the hearing and argued against the Harmony Lake proposal. On October 30, 1998, the Water Commission found Harmony Lake would not unduly affect the Osters’ downstream water interests and issued a conditioned permit to Coteau Properties. The conditioned permit allowed senior downstream users to file a complaint with the Water Commission if the superior downstream rights were unduly affected. The State Engineer, acting on behalf of the Water Commission, 3 could then pass inflows through Harmony Lake and to the unduly affected downstream user, or order a modification of Harmony Lake.

[¶ 4] On December 2, 1998, the PSC approved the mining permit revision (Revision No. 10). On December 17, 1998, the Osters requested a formal hearing. A formal PSC hearing was held on January 15, 1999, and on January 27, 1999, Revision No. 10 was affirmed. On February 28, 1999, the Osters appealed the PSC’s decision to the district court, but did not appeal the October 30, 1998, Water Commission decision. The district court affirmed the PSC’s decision. The Osters now appeal to this Court.

[¶ 5] An appeal from a PSC decision is governed by the Administrative *879 Agencies Practice Act, N.D.C.C. ch. 28-32. Northern States Power Co. v. North Dakota Public Service Com’n, 452 N.W.2d 340, 342 (N.D.1990). In Singha v. North Dakota State Bd. of Medical Examiners, 1998 ND 42, ¶¶ 13-14, 574 N.W.2d 838, we explained our standard of review under the Administrative Agencies Practice Act.

Under N.D.C.C. § 28-32-19 we must affirm the [agency’s] decision unless:
1. The order is not in accordance with the law.
2. The order is in violation of the constitutional rights of the appellant.
3. Provisions of this chapter have not been complied with in the proceedings before the agency.
4. The rules or procedure of the agency have not afforded the appellant a fair hearing.
5. The findings of fact made by the agency are not supported by a preponderance of the evidence.
6. The conclusions of law and order of the agency are not supported by its findings of fact.
If the order of the agency is not affirmed by the court, it shall be modified or reversed, and the case shall be remanded to the agency for disposition in accordance with the order of the court.
Our review of the factual basis for the [agency^ decision involves a three-step process to decide whether its findings of fact are supported by a preponderance of the evidence, its conclusions of law are supported by its findings of fact, and its decision is in accordance with the law and is supported by its conclusions of law. [Sletten v.] Briggs, 448 N.W.2d [607, 610 (N.D.1989) ]. In applying the preponderanee-of-evidence standard, we do not make independent findings of fact or substitute our judgment for that of the [agency]; rather, we decide only whether a reasoning mind reasonably could have decided the [agency]’s factual conclusions were proved by the weight of the evidence from the entire record. Id. See Power Fuels, Inc. v. Elkin, 283 N.W.2d 214, 220 (N.D.1979). It is not our function to act as a super board when reviewing decisions by an administrative agency. Skjefte v. Job Serv. N.D., 392 N.W.2d 815, 817 (N.D.1986). In technical matters involving agency expertise, we have acknowledged the agency decision is entitled to appreciable deference. Montanc-Dakota Util. Co. v. Public Serv. Comm’n, 413 N.W.2d 308, 312 (N.D.1987).

Singha, at ¶¶ 13-14.

[¶ 6] The Osters argue the PSC’s findings concerning the diminution of water quantity and quality were not. supported by a preponderance of the evidence. We disagree.

[¶ 7] The Harmony Lake project must “not result in the diminution of the quality or quantity of water utilized by adjacent or surrounding landowners for agricultural, industrial, recreational, or domestic uses.” N.D.C.C. § 38 — 14.1—24(7)(f). The Osters contend this statute mandates absolutely zero increased water alkalinity or decreased water flow in East Antelope Creek. The Osters fail to recognize the Harmony Lake project must not result in quality or quantity diminution of water utilized. The Water Commission, PSC, and Coteau experts agreed Harmony Lake, as conditioned by the water permit, would not adversely affect the Osters’ use of East Antelope Creek as a downstream livestock watering source. A neighbor of the Osters also testified the area could support livestock through groundwater fed pools. Additionally, the Environmental Health Section of the North Dakota Department of Health certified the “project will not violate applicable State Water Quality Standards.” The Osters provided *880 only speculations. The PSC’s findings were supported by a preponderance of the evidence.

[¶ 8] The Osters argue the PSC must make, its own determination of whether Harmony Lake will “not result in the diminution of the water quality or quantity of water utilized by adjacent and surrounding landowners for agricultural, industrial, recreational, or domestic uses” and whether “[t]he rights of a prior appropriator will not be unduly affected.” N.D.C.C. §§ 38 — 14.1—24(7)(f), 61-04-06(1). We agree. Coteau incorrectly argues this is an impermissible collateral attack on the Water Commission’s decision to grant the water permit, from which the Osters did not appeal.

N.D.C.C. § 38-14.1-24 applies to the PSC and provides:

General performance standards ... must require the permittee at a minimum to:

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Bluebook (online)
2000 ND 23, 606 N.W.2d 876, 2000 N.D. LEXIS 27, 2000 WL 199442, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coteau-properties-co-v-oster-nd-2000.