Laurel Mountain Resources, LLC ex rel. Miller Bros. Coal, LLC v. Commonwealth, Energy & Environment Cabinet

360 S.W.3d 791, 2012 WL 512580, 2012 Ky. App. LEXIS 34
CourtCourt of Appeals of Kentucky
DecidedFebruary 17, 2012
DocketNo. 2010-CA-001860-MR
StatusPublished
Cited by2 cases

This text of 360 S.W.3d 791 (Laurel Mountain Resources, LLC ex rel. Miller Bros. Coal, LLC v. Commonwealth, Energy & Environment Cabinet) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Laurel Mountain Resources, LLC ex rel. Miller Bros. Coal, LLC v. Commonwealth, Energy & Environment Cabinet, 360 S.W.3d 791, 2012 WL 512580, 2012 Ky. App. LEXIS 34 (Ky. Ct. App. 2012).

Opinion

OPINION

LAMBERT, Senior Judge:

This appeal arises from an order of the Secretary of the Commonwealth of Kentucky, Energy and Environment Cabinet (“the Cabinet”) denying a “Lands Unsuitable for Mining” petition filed by Beverly May but nonetheless imposing numerous restrictive conditions on all future surface coal mining in the petition area. The order was affirmed by the Franklin Circuit Court. Appellants Laurel Mountain Resources, LLC (as successor in interest to Miller Bros. Coal, LLC) and Gene D. Campbell2 challenge the determination on a variety of grounds. After careful consideration of the record and the parties’ arguments, we reverse and remand for further proceedings consistent with this opinion.

Facts and Procedural History

On or about March 26, 2008, May, on behalf of the Floyd County Chapter of Kentuckians for the Commonwealth (“FCCKC”), petitioned the Cabinet to designate 2,000 acres of the Wilson Creek watershed in Floyd County as unsuitable for surface coal mining operations pursuant to KRS 350.465(2)(b),3 KRS 350.610, and 405 KAR4 24:030 Section 8. On April 9, 2008, Miller Bros. Coal, LLC filed a preliminary application for a permit to conduct surface coal mining operations in a portion of the Wilson Creek watershed. [793]*793Because Miller Bros, applied for this permit, the Cabinet permitted the company to be a party to the unsuitability petition proceedings.

KRS 350.610 sets forth the process and criteria to be followed by the Cabinet in considering a petition to designate lands as unsuitable for surface coal mining, as well as the circumstances under which a finding of unsuitability is mandatory or subject to the discretion of the Cabinet Secretary. A finding of unsuitability is mandatory on those occasions when the standard set forth in KRS 350.610(2) is met: “[T]he secretary shall designate an area as unsuitable for all or certain types of surface coal mining operations, if the secretary determines that reclamation pursuant to this chapter is not technologically and economically feasible.” In contrast, KRS 350.610(3) gives the secretary the discretion to designate an area as unsuitable for certain types of surface mining operations under the following circumstances:

(3) Upon petition and hearing pursuant to subsection (6) of this section, a surface area may be designated unsuitable for certain types of surface coal mining operations if such operations will:
(a) Be incompatible with existing state and local land use plans; or
(b) Affect fragile or historic lands in which such operations could result in significant damage to important historic, cultural, scientific, and aesthetic values, and natural systems; or
(c) Affect renewable resource lands in which such operations could result in a substantial loss or reduction of long-range productivity of water supply or food or fiber products, and such lands to include aquifers and aquifer recharge areas; or
(d)Affect natural hazard lands in which such operations could substantially endanger life and property, such lands to include areas subject to frequent flooding and areas of unstable geology.

The language of 405 KAR 24:030 Section 8(1) and (2) tracks the “mandatory” and “discretionary” provisions of KRS 350.610, with Section 8(1) addressing the former and Section 8(2) the latter.

In her petition, May raised four allegations to support her claim that the petition area was unsuitable for surface mining. She specifically argued that it was: (1) a “natural hazard land” subject to frequent flooding; (2) a “historic land” due to the presence of the Cedar Cliffs rock outcropping; (3) a “natural hazard land” prone to landslides, subsidence, and unstable geology as a result of previous deep mining and auger mining operations; and (4) a “renewable resource land” because Wilson Creek constituted a portion of the headwaters of the Big Sandy River. Thus, the petition’s allegations allude to the criteria for discretionary designation of lands as unsuitable for mining that are set forth in KRS 350.610(3) and 405 KAR 24:030 Section 8(2). The petition also made reference to concerns about the possible effects of surface mining operations on Wilson Creek Road and Big Fork Road, although these concerns were not specifically set forth in an allegation.

Following a public hearing and public comment period,5 the Cabinet issued an order denying May’s petition to designate the Wilson Creek watershed as an area unsuitable for surface coal mining. In the order, the Cabinet addressed each allegation raised in the petition and explained how each of them failed to support an [794]*794unsuitability determination. As to Allegation No. 1, the Cabinet found that any risk of flooding in Wilson Creek was “minimal” and that it was “questionable whether Wilson Creek watershed is, in fact, a natural hazard land due to flooding characteristics since it is typical of watersheds in the region.” The Cabinet further found that this concern could be adequately addressed through a separate surface mining permit review process. The Cabinet rejected Allegation No. 2 after finding that the alleged “historic lands” were actually located well outside of the petition area. The Cabinet rejected Allegation No. 3 on the grounds that there was no significant or unique risk-of-stability concern in the petition area and concluded that any such concerns could also be addressed through the surface mining permit review process. Finally, the Cabinet similarly found, for purposes of Allegation No. 4, that while the petition’s concerns about water quality in Wilson Creek were valid, any such concerns could be effectively addressed through the surface mining permit review process and were “not appropriately dealt with in the context of a Lands Unsuitable for Mining Petition.”

However, despite rejecting all four of the petition’s allegations and declining to designate the Wilson Creek watershed as unsuitable for surface mining, the Cabinet nonetheless imposed five restrictive conditions on all future surface mining in the area pursuant to 405 KAR 24:030 Section 8(3). These conditions: (1) prohibited the use of Wilson Creek Road and Big Fork Road for coal haulage and for access to mining and reclamation operations due to their condition, size, and setting;6

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Bluebook (online)
360 S.W.3d 791, 2012 WL 512580, 2012 Ky. App. LEXIS 34, Counsel Stack Legal Research, https://law.counselstack.com/opinion/laurel-mountain-resources-llc-ex-rel-miller-bros-coal-llc-v-kyctapp-2012.