In Re Mid-States Materials, LLC Permit NO. 1236-A2; The Osage Nation; Randal S. Dobyns and Leslie R. Dobyns, Individually and as Trustees of the Dobyns Family Trust Dated October 15, 2018 v. Missouri Department of Natural Resources & Missouri Mining Commission, Mid-States Materials, LLC

Missouri Court of Appeals·Decided December 17, 2024·No. WD87090·Published

Opinion

IN THE MISSOURI COURT OF APPEALS WESTERN DISTRICT

IN RE MID-STATES MATERIALS, LLC) PERMIT NO. 1236-A2; THE OSAGE ) NATION, )

Appellant, )

)

RANDAL S. DOBYNS AND LESLIE R. ) DOBYNS, INDIVIDUALLY AND AS ) TRUSTEES OF THE DOBYNS FAMILY ) TRUST DATED OCTOBER 15, 2018, )

)

Appellants, )

)

v. ) WD87090 (Consolidated with ) WD87144)

MISSOURI DEPARTMENT OF NATURAL ) RESOURCES & MISSOURI MINING ) Opinion filed: December 17, COMMISSION, ) 2024 )

Respondents, )

)

MID-STATES MATERIALS, LLC, )

)

Respondent. )

APPEAL FROM THE MISSOURI DEPARTMENT OF NATURAL RESOURCES

Division Two: Alok Ahuja, Presiding Judge, Edward R. Ardini, Jr., Judge and W. Douglas Thomson, Judge

Randal and Leslie Dobyns and the Osage Nation appeal from the Missouri Mining Commission’s (MMC) final decision granting Mid-States Materials a

permit to mine limestone at a site to be called the Bates City Quarry. On appeal, both the Dobyns Appellants and the Osage Nation argue the MMC erred in entering its final decision because Mid-States’s application failed to comply with Section 444.772.2(1). The Dobyns Appellants also argue the MMC erred in entering its final decision because the Bates City Quarry will unduly impair their health, safety, and livelihood. The Osage Nation also argues on appeal that Mid- States’s permit should be rescinded because it violates Missouri’s Unmarked Human Burial Sites Act. Finally, the Osage Nation argues the MMC acted arbitrarily, capriciously, and unreasonably in granting Mid-States a permit without imposing a condition that an archaeological survey be conducted before mining activity begins. We reverse and remand for proceedings consistent with this opinion.

I. FACTUAL AND PROCEDURAL HISTORY This appeal concerns Mid-States Materials’s permit to mine limestone at the Bates City Quarry (also referred to as “the Property”). The Department of Natural Resources, through the Missouri Mining Commission, issued Mid-States’s permit to mine limestone (the “Permit”). The Appellants collectively are adjacent landowners who object to the issuance of the Permit.

Randal Dobyns and Leslie Dobyns, as individuals and as Trustees of the Dobyns Family Trust (“Dobyns Appellants”) own property adjacent to Mid-States Materials’s proposed surface mining. The Dobyns Appellants timely filed their

objections to the Permit before the Administrative Hearing Commission (AHC) and timely filed their appeal before this Court.

The Osage Nation is also an adjacent landowner and owns land that is entirely surrounded by Mid-States’s proposed mining at the Bates City Quarry. On the land owned by the Osage Nation are Osage burial mounds (the “known Osage burial site”). The Osage Nation also timely filed their objections to the Permit before the AHC and timely appealed before this Court. A. The Mining Application Process To engage in mineral mining, Mid-States must first obtain a permit. See Sections 444.770.1; 444.772.1; 444.786; 10 CSR 40-10.010(1). The Department of Natural Resources administers the Missouri Land Reclamation Act (the “Act”), under which Mid-States must apply to permit limestone mining. See Section 444.760 et. seq. The commercial mining of limestone, which Mid-States seeks to do in this case, requires a permit from the Missouri Mining Commission (MMC). See 10 C.S.R. 40-10.010(1)(A). The MMC has the power to review and approve all applicable mining applications. Section 444.767. The MMC staff director receives a written application for a permit and makes a threshold determination regarding whether the application is complete. Section 444.772.1. Once the staff director determines that an application is complete, the applicant must issue a public notice and comment period that, in this case, involved a public hearing. Section 444.772.10. The staff director of the MMC must investigate a mining permit application, consider all public comments, issue or deny the permit, and impose

reasonable conditions upon the permit. Section 444.773.1. The staff director’s decision is deemed the decision of DNR.

The staff director’s decision is appealable to the Administrative Hearing Commission (AHC). See Section 444.773.2; Section 460.013; Section 621.250.1. On appeal to the AHC, DNR bears the burden to prove by a preponderance of the evidence that it lawfully issued the permit. Section 640.012. The AHC then makes a recommended decision to the MMC on “permit issuance, denial, suspension, or revocation.” Section 444.773.2. The AHC considers whether Sections 444.773.2-.5 of the Act have been satisfied. The AHC may also consider whether an interested party’s health, safety, or livelihood will be unduly impaired by the issuance of the permit, and whether the applicant has displayed a pattern of noncompliance “that suggests a reasonable likelihood of future acts of noncompliance.” Section 444.773.2. The AHC may also recommend any permit be subject to reasonable conditions consistent with the Act. See Lake Ozark-Osage Beach Joint Sewer Bd. v. Mo. Dep’t of Nat. Res., 491 S.W.3d 667, 676-78 (Mo. App. W.D. 2016).

Once the AHC issues its recommended decision, the MMC issues its final decision, which is then appealable to this Court. B. Mid-States’s Mining Application On April 17, 2023, Mid-States applied for an expansion permit for surface mining of limestone at a new quarrying site known as the Bates City Quarry. 1 The application included a five-page DNR Mining Plan form.

1 Mid-States already had a permit to mine at a different location.

The information Mid-States listed on page three of that form is at issue in this appeal. Page three includes several critical elements. First, an applicant must list the name, address, and phone number of the landowner and is instructed to attach additional sheets if necessary. In this section, Mid-States listed one landowner – M.K. – and his address and phone number. 2 Second, an applicant must list the mineral rights owner or indicate that the mineral rights owner is the same as the landowner. In this case, Mid-States indicated that the mineral rights owner was the same as the landowner and did not list any additional individuals.

Third, page three includes a block asking the applicant to indicate the source of their legal right to engage in mining and offers several choices: mineral deed, warranty deed, lease, verbal, or other. This block also asks for the date of any such agreement granting the applicant a right to mine. In this section, Mid-States indicated the source of its legal right to mine was a lease dated June 1, 2022.

Finally, page three also requires the landowner to attest to the following:

1. I have received a copy, understand and give approval of the proposed post-mining land use(s) and revegetation plan(s) to be utilized during reclamation.

2. I understand that if the operator seeks to revise the post-mine land use(s) or revegetation plan(s), the operator shall obtain my approval and signature. I will be given a copy of the revised post-mining land use(s) and revegetation plan(s) prior to the revision being implemented.

2 Section 509.520.1 states that “any judgment or orders issued by the court … shall

not include the following confidential and personal identifying information: … (5) Witness information, including the name, address, and other contact information of the witness.” Therefore, as required by this statute, we do not identify the landowner(s) by name.

3. I hereby grant to the Staff Director of the Land Reclamation Program and authorized representatives the right of entry upon our lands or surface mining operations for the purpose of making necessary field inspections, covering land reclamation in order to ensure compliance with The Land Reclamation Act, Sections 444.760 to 444.790, RSMo.

M.K. is the sole signatory listed on Mid-States’s application attesting to the above.

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In Re Mid-States Materials, LLC Permit NO. 1236-A2; The Osage Nation; Randal S. Dobyns and Leslie R. Dobyns, Individually and as Trustees of the Dobyns Family Trust Dated October 15, 2018 v. Missouri Department of Natural Resources & Missouri Mining Commission, Mid-States Materials, LLC, (Mo. Ct. App. 2024).

In Re Mid-States Materials, LLC Permit NO. 1236-A2; The Osage Nation; Randal S. Dobyns and Leslie R. Dobyns, Individually and as Trustees of the Dobyns Family Trust Dated October 15, 2018 v. Missouri Department of Natural Resources & Missouri Mining Commission, Mid-States Materials, LLC (In Re Mid-States Materials, LLC Permit NO. 1236-A2; The Osage Nation; Randal S. Dobyns and Leslie R. Dobyns, Individually and as Trustees of the Dobyns Family Trust Dated October 15, 2018 v. Missouri Department of Natural Resources & Missouri Mining Commission, Mid-States Materials, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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