Crown Resources, Corp. v. Dep't of Ecology

Court of Appeals of Washington·Decided October 8, 2019·No. 35199-8·Unpublished

Opinion

FILED

OCTOBER 8, 2019

In the Office of the Clerk of Court WA State Court of Appeals, Division III

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION THREE

CROWN RESOURCES, ) No. 35199-8-III CORPORATION, )

)

Appellant, )

)

v. )

)

STATE OF WASHINGTON, ) DEPARTMENT OF ECOLOGY; and ) UNPUBLISHED OPINION OKANOGAN HIGHLANDS ) ALLIANCE, )

)

Respondents. )

SIDDOWAY, J. — Crown Resources Corporation, owner and operator of the Buckhorn Mine, administratively appealed the terms of a federal and state water discharge permit issued to it by the Washington State Department of Ecology (Ecology) in 2014. The 2014 permit renewed a permit Ecology had initially issued in 2007. The Pollution Control Hearings Board (Board) affirmed the 2014 permit,1 and the Ferry County Superior Court denied Crown’s petition for judicial review.

1 During the administrative appeal of the 2014 permit, Crown identified several problems with the permit that were acknowledged by Ecology and the intervenor. The problems were corrected by a modified permit issued by Ecology after the hearing, but before the Board issued its decision. The record was supplemented and the Board based its findings, conclusions, and order on the 2014 permit as modified. Distinctions between the original and modified permit are not important to the appeal, so for the most part, we refer to the permit in both its original and modified form as “the 2014 permit.”

Crown Resources Corp. v. Dep’t of Ecology

Crown assigns error to the superior court’s order and judgment on grounds that three aspects of the 2014 permit are contrary to law, are unsupported by substantial evidence, or are arbitrary or capricious: (1) its newly imposed and more stringent final water quality effluent limits, (2) interim limits and a 10-month interim compliance period imposed before the final limits would take effect, and (3) a new definition and mapping of a capture zone that Ecology viewed as merely clarifying a capture zone required by the 2007 permit. Crown also contends the court erred in upholding the Board’s determination that the effective date of the 2014 permit was not stayed during Crown’s appeal to the Board.

Crown has not met its burden of demonstrating that the Board’s order is contrary to law, unsupported by substantial evidence, or arbitrary or capricious. We affirm.

FACTS AND PROCEDURAL BACKGROUND The parties to the appeal have over 20 years’ experience with the proposed, and ultimately developed, Buckhorn Mine. Crown discovered the gold deposit in the Okanogan Highlands in 1988. The mine property is forested and surrounded by national forest. The mine was originally proposed to be an open pit mine, by a joint venture to which Crown was a party.

Okanogan Highlands Alliance (OHA), a public interest, not-for-profit organization, was formed in 1992 by people living downstream from the mine property, in response to the open pit mine proposal. An environmental impact statement (EIS) was

Crown Resources Corp. v. Dep’t of Ecology

completed on that proposal in 1997. In 2000, in a challenge brought by OHA and others, the Board reversed a number of Ecology’s water right determinations and a Clean Water Act (CWA), 33 U.S.C. § 1341, certification it had issued for the open pit mine. Okanogan Highlands Alliance v. Dep’t of Ecology, PCHB Nos. 97-146, -182, -183, -186, 99-019 (Jan. 19, 2000), 2000 WL 46743.

Crown acquired control of the property and, in February 2004, proposed the present underground mine. As proposed and developed, the mine project area consists of approximately 46 acres of private land. Most of the mine workings are below the water table and must be dewatered to enable mining. The mine’s belowground facilities include shafts and sumps. Its aboveground facilities include a mine water treatment plant, an access road, maintenance shops, ore and development rock stockpiles, and detention ponds. Dewatering wells, monitoring wells, surface water monitoring stations, and piezometers surround the mine.

A supplemental environmental review was completed on the underground mine in 2006. The resulting final supplemental EIS (FSEIS) is the foundational environmental document for the current mine. The FSEIS necessarily examined potential water quality impacts of the underground mine and proposed and recommended mitigation measures to address the impacts, concluding that “[w]hile there is a potential that water quality could become degraded, these potential impacts are considered avoidable with the proposed and recommended mitigation measures.” Administrative Record (AR) at 3331 (§ 3.17.7),

Crown Resources Corp. v. Dep’t of Ecology

3160 (§ 3.7-72). The FSEIS contemplated that water quality monitoring would occur during construction, operations, reclamation, closure, and post-closure—until conditions have stabilized below permit limits or water quality criteria. It provided that the treatment plant would continue to operate until water quality standards were met.

On November 1, 2007, Ecology issued to Crown an initial “National Pollutant Discharge Elimination System” (NPDES) and “State Waste Discharge Permit” (2007 permit) under state and federal water quality law.2 The permit authorized the discharge of treated mine water and stormwater to four outfalls (Outfalls 001, 002, 003 and 004) subject to compliance with specified effluent limits. It also authorized discharges of stormwater from industrial areas, undisturbed areas, and nonindustrial areas collected in identified storm water retention ponds, detention ponds, and infiltration trenches to

2 Washington’s “Water Pollution Control Act,” chapter 90.48 RCW, was enacted in 1945 and gave Ecology the responsibility and jurisdiction to control and prevent the pollution of waters of the state. RCW 90.48.030. Later amendments to the act make it unlawful for any person conducting a commercial or industrial operation of any type to dispose of solid or liquid waste material into the waters of the state without obtaining a state waste discharge permit. RCW 90.48.160.

The federal “Water Pollution Control Act,” also known as the CWA, makes it unlawful for any person to discharge pollutants from a point source into navigable waters of the United States unless the discharge complies with a NPDES permit. 33 U.S.C. §§ 1311(a), 1342(a), 1362(12). Congress authorized the Environmental Protection Agency (EPA) to delegate the NPDES permit program to states, 33 U.S.C. § 1342(b), and Ecology is designated as the state Water Pollution Control Agency for all purposes of the CWA in Washington. RCW 90.48.260.

Ecology regulates water quality under both state and federal law primarily through the use of combined NPDES and state waste discharge permits, such as those at issue in this case.

Crown Resources Corp. v. Dep’t of Ecology

Outfall 002, where it, too, was subject to compliance with specified effluent limits. The effluent limits for the end-of-pipe discharges were set at levels equal to State surface and groundwater quality standards.

The 2007 permit required Crown to “establish and maintain a ground water capture zone to include all underground mine workings, the surge pond, and all surface stockpiles of ore and development rock.” AR at 2028. The 2007 permit also required Crown to monitor water quality at identified monitoring wells, surface waters, and seeps and springs outside the capture zone. AR at 2025, 2032-35, Conditions S2.B5, S2.C. The 2007 permit provided a narrative description of the capture zone but did not include a capture zone definition or boundary map. It also did not set numeric compliance limits for the monitoring locations outside the capture zone. Ecology used monitoring data to determine if the required capture zone was being maintained, however.

OHA appealed the 2007 permit but settled its appeal within a matter of months, agreeing that the mine would proceed, but would provide funding that OHA could use (among other things) to monitor the environmental impacts of the mine.

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

Crown Resources, Corp. v. Dep't of Ecology, (Wash. Ct. App. 2019).

Crown Resources, Corp. v. Dep't of Ecology (Crown Resources, Corp. v. Dep't of Ecology) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Pilling v. Eastern & Pacific Enterprises Trust
702 P.2d 1232 (Court of Appeals of Washington, 1985)
Dioxin/Organochlorine Center v. Department of Ecology
837 P.2d 1007 (Washington Supreme Court, 1992)
Communities for a Better Environment v. State Water Resources Control Board
34 Cal. Rptr. 3d 396 (California Court of Appeal, 2005)
Motley-Motley, Inc. v. State
110 P.3d 812 (Court of Appeals of Washington, 2005)
Verizon Northwest, Inc. v. Wash. Emp. SEC. Dept.
194 P.3d 255 (Washington Supreme Court, 2008)
Bowers v. Pollution Control Hearings Bd.
13 P.3d 1076 (Court of Appeals of Washington, 2000)
State v. Gonzalez
226 P.3d 131 (Washington Supreme Court, 2010)
Buechel v. Department of Ecology
884 P.2d 910 (Washington Supreme Court, 1994)
State, Dept. of Ecology v. Campbell & Gwinn
43 P.3d 4 (Washington Supreme Court, 2002)
PUBLIC UTILITY DIST. v. State, Dept. of Ecology
51 P.3d 744 (Washington Supreme Court, 2002)
Aviation West Corp. v. Department of Labor & Industries
980 P.2d 701 (Washington Supreme Court, 1999)
Department of Ecology v. Campbell & Gwinn, L.L.C.
146 Wash. 2d 1 (Washington Supreme Court, 2002)
Public Utility District No. 1 v. Department of Ecology
146 Wash. 2d 778 (Washington Supreme Court, 2002)
Washington Education Ass'n v. Public Disclosure Commission
80 P.3d 608 (Washington Supreme Court, 2003)
Port of Seattle v. Pollution Control Hearings Board
90 P.3d 659 (Washington Supreme Court, 2004)
Verizon Northwest, Inc. v. Employment Security Department
164 Wash. 2d 909 (Washington Supreme Court, 2008)
State v. Gonzalez
168 Wash. 2d 256 (Washington Supreme Court, 2010)
Bowers v. Pollution Control Hearings Board
103 Wash. App. 587 (Court of Appeals of Washington, 2000)