Department of Health v. Hecla Mining Co.

781 P.2d 122, 13 Brief Times Rptr. 611, 1989 Colo. App. LEXIS 139, 1989 WL 55596
CourtColorado Court of Appeals
DecidedMay 25, 1989
Docket87CA1414
StatusPublished
Cited by12 cases

This text of 781 P.2d 122 (Department of Health v. Hecla Mining Co.) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Department of Health v. Hecla Mining Co., 781 P.2d 122, 13 Brief Times Rptr. 611, 1989 Colo. App. LEXIS 139, 1989 WL 55596 (Colo. Ct. App. 1989).

Opinion

Opinion by

Judge SMITH.

In this eminent domain proceeding, the condemning authority, the Department of Health (State), and the owner of the condemned property, Hecla Mining Company (Hecla), each appeal from a judgment entered on a jury verdict which awarded Hec-la $2,881,821.42 as just compensation for its condemned land. The State appeals the jury’s award and the trial court’s award of Hecla’s expert witness fees. Hecla appeals the trial court’s denial of its motion to dismiss the State’s petition in condemnation and the trial court’s denial of attorney fees and additional expert witness fees. We affirm in part and reverse in part.

Hecla is the owner of property which had previously been used as a mill to process uranium ore for ultimate sale to the United States Government. For many years, the mill site has been inactive and has been, and still is, highly contaminated with radioactive uranium tailings. Hecla acquired the property prior to 1986 with full and complete knowledge of its contaminated condition.

In August 1986, the State filed a petition in condemnation to acquire Hecla’s property. Acquisition was in accordance with the Uranium Mill Tailings Radiation Control Act (Radiation Control Act) 42 U.S.C. §§ 7901 to 7942 (1978) and pursuant to § 25-11-301, et seq., C.R.S. (1982 Repl.Vol. 11). These laws constitute a program whereby the state and federal government cooperate in the decontamination of contaminated inactive uranium mill sites with the costs being shared between the federal and state governments.

The legislative history shows that the Radiation Control Act was enacted due to concern over the health threat posed by unstable and uncontrolled inactive uranium mill tailings and not to meet any legal obligation on the part of the federal government to remedy the hazardous situations at such sites. Concern over costs of the program prompted Congress to provide for state acquisition of mill sites, particularly if decontamination would result in windfall profits to an owner who retained the site after decontamination.

Hecla’s property qualified for decontamination under the Radiation Control Act, and an appraisal commissioned by the federal government disclosed that decontamination would cost approximately $33 million, and that in a decontaminated state the property would have a value of approximately $3 million. Because the costs of decontaminating the site located on Hecla’s property far exceeded the value of the property in its decontaminated state, the Department of Energy directed the State to acquire Heela’s property.

In October 1986, after receiving notice of the condemnation action, Hecla executed a unilateral consent which granted the federal and state government the right to enter and inspect the property as well as the right to remove, or otherwise dispose of, the tailings found on the site.

Notwithstanding this consent, condemnation proceedings continued and in December 1986, the State sought and obtained possession of the property. Thereafter, upon trial of the matter, the jury returned a verdict determining that $2,881,821.42 was the fair market value of the property.

I.

Hecla argues in its cross-appeal that the judgment in condemnation should be vacated and the State’s petition for condemnation should be dismissed because the State does not have the authority to condemn Hecla’s property. We disagree.

Hecla asserts that there is no public purpose to justify condemnation since it voluntarily granted the State the right to enter the property and to clean up the uranium tailings. Thus, it contends, the only purpose of condemnation is to transfer the land from it to someone else, or to prevent it from receiving windfall profits. In support of this argument, Hecla argues that the purpose of the Radiation Control Act is to meet a federal obligation to remedy haz *125 ardous situations caused by government-initiated contamination at the mill site.

Private property may not be condemned unless the purpose for which condemnation is sought is judicially determined to be a public use and there exists express, or necessarily implied, statutory authority to condemn. Colo. Const., art. II, § 15; Buck v. District Court, 199 Colo. 344, 608 P.2d 350 (1980).

While the existence of a public purpose may be judicially determined, the issue of the necessity of the specific condemnation in order to accomplish the public purpose is a determination reserved to the condemning authority. Absent a showing of bad faith by the condemning authority as to that issue, its determination is not to be disturbed by the courts. Thornton Development Authority v. UPAH, 640 F.Supp. 1071 (D.Colo.1986).

We do not find support in the federal law for Hecla’s assertion that the purpose of the Radiation Control Act is to meet an obligation to remedy government-initiated contamination. The Radiation Control Act and § 25-11-301, et seq., C.R.S. (1982 Repl.Vol. 11) expressly set forth, as the purpose for the legislation, the protection of the public health, safety, and welfare from the potential and significant radiation health hazards of uranium mill tailings. 42 U.S.C. § 7901(b) (1978) and § 25-11-301, C.R.S. (1982 Repl.Vol. 11). This is an undisputable public purpose as the trial court found when it denied Hecla’s motion to dismiss.

These federal and state laws also provide explicit statutory authority to condemn. Although the Radiation Control Act does not use the term “condemnation”, it specifically requires that the state have the authority to acquire property if acquisition is deemed appropriate by the Secretary of Energy. 42 U.S.C. § 7914(a). This acquisition authority was expressly enacted by the General Assembly as § 25-ll-303(l)(d), C.R.S. (1982 Repl.Vol. 11). Thus, we hold that the state has not only the constitutional, but the statutory authority as well, to condemn Hecla’s property.

Hecla, however, argues that the State seeks to condemn for non-public purposes because the October unilateral consent, which granted the State access for cleanup, disposes of any public health justification for condemnation. In support of this position, Hecla relies on 42 U.S.C. § 7913(c)(1) of the Radiation Control Act which authorizes, inter alia, cleanup with the consent of the landowner. We disagree.

The decision to acquire Hecla’s property to accomplish the cleanup, rather than to operate under a consent executed by Hecla, is an issue regarding the means for accomplishing a public purpose. Thus, the decision addresses an issue of necessity, authority over which is vested in the condemning authority. Welch v. Denver, 141 Colo. 587, 349 P.2d 352 (1960).

The Radiation Control Act indeed does provide, as Hecla asserts, for cleanup pursuant to a landowner’s consent in 42 U.S.C.

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Bluebook (online)
781 P.2d 122, 13 Brief Times Rptr. 611, 1989 Colo. App. LEXIS 139, 1989 WL 55596, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-health-v-hecla-mining-co-coloctapp-1989.