M & J Coal Co. v. United States

30 Fed. Cl. 360, 24 Envtl. L. Rep. (Envtl. Law Inst.) 21064, 1994 U.S. Claims LEXIS 13, 1994 WL 22695
CourtUnited States Court of Federal Claims
DecidedJanuary 28, 1994
DocketNo. 92-266L
StatusPublished
Cited by8 cases

This text of 30 Fed. Cl. 360 (M & J Coal Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M & J Coal Co. v. United States, 30 Fed. Cl. 360, 24 Envtl. L. Rep. (Envtl. Law Inst.) 21064, 1994 U.S. Claims LEXIS 13, 1994 WL 22695 (uscfc 1994).

Opinion

ORDER

MOODY R. TIDWELL, III, Judge:

This case is before the court on the parties’ cross motions for summary judgment pursuant to RCFC 56. For the reasons set forth below the court grants defendant’s motion and denies plaintiffs’ motion.

FACTS

I. Background

The seeds of this dispute were planted in the early part of this century, when the owners of approximately seven hundred acres of real estate situated in the mountainous terrain of Lincoln District, Marion County, West Virginia began selling mining rights to various coal companies. Between 1904 and 1920 those owners, through various mineral severance deeds, sold for valuable consideration the right to mine the Pittsburgh seam of coal, which lay beneath the surface strata of their property. Included in the severance deeds was the right to mine “without being liable for any injury or damage done to the overlying surface, or to anything therein or thereon.”

Plaintiffs in this action were owners of ' mining rights to the Pittsburgh seam. Plaintiffs acquired their rights after the Pittsburgh seam had been previously and successively mined by two coal companies: the Consolidated Coal Company, Inc. (Consol), [362]*362and Pittsburgh Coal Works, Inc. (PCW). By 1966, Consol had acquired all the rights to mine the Pittsburgh seam from the various coal companies that had purchased the original severance deeds. Sometime before 1970, Consol mined fifty to sixty percent of the coal contained in the Pittsburgh seam using a technique referred to as room-and-pillar mining. In turn, PCW mined coal and the coal pillars that Consol left in place.

After 1980, because of advances in mining techniques, it became possible to remove more coal from the Pittsburgh seam than was once possible using traditional room-and-pillar mining. Consequently, and because of high demand for Pittsburgh coal, Charles Sorbello and John Markovich became interested in purchasing and mining coal that both Consol and PCW left in place. Mr. Sorbello and Mr. Markovich estimated that between 1985 to 1989 they feasibly could remove approximately 75,000 to 100,000 tons of coal per year from what became known as the “Monongah mine.” In making this estimate, they assumed they could subside structures where the surface owners had conveyed the right to subjacent support, and as to those structures required by law to be protected, the angle of draw would be 15 degrees1.

Based on those estimates Mr. Sorbello bought all the corporate stock of the Monon-gah Development Company, the corporation that then owned the Monongah mine. In addition, Mr. Sorbello and Mr. Markovich formed the M & J Coal Company for the purposes of mining and selling the coal. In November and December 1985, M & J Coal invested a total of approximately $500,000 based on the expectation of recovering $400,-000 per year from mining and selling coal.

Before plaintiffs purchased their rights to the Monongah mine, Congress had passed the Surface Mining Control and Reclamation Act of 1977 (SMCRA), which regulates mining practices and techniques. 30 U.S.C. §§ 1201-1328 (1988). SMCRA empowers the Department of Interior to prohibit mining operations that endanger public health and safety or harm the environment:

When, on the basis of any Federal inspection, the Secretary or his authorized representative determines that any condition or practices exist, or that any permittee is in violation of any requirement of this Act or any permit condition required by this Act, which condition, practice or violation also creates an imminent danger to the health or safety of the public, or is causing, or can reasonably be expected to cause significant, imminent environmental harm to land, air, or water resources, the Secretary or his authorized representative shall immediately order a cessation of surface coal mining and reclamation operations or the portion thereof relevant to the condition, practice, or violation____ Where the Secretary finds that the ordered cessation of surface coal mining and reclamation operations, or any portion thereof, will not completely abate the imminent danger to health or safety of the public or the significant imminent environmental harm to land, air, or water resources, the Secretary shall, in addition to the cessation order, impose affirmative obligations on the operator requiring him to take whatever steps the secretary deems necessary to abate the imminent danger or the significant environmental harm.

30 U.S.C. § 1271 (emphasis added).

From late 1985 to early 1990 plaintiffs mined more than 270,000 tons of coal from the Monongah mine. At the time plaintiffs began mining they did not have a mining permit as required by W.Va.Code § 22A-3-8 (1993); plaintiffs had applied for a transfer of the permit held by PCW, Permit No. UO-639, but the transfer did not take effect until March 28, 1986. Plaintiffs also adopted PCWs subsidence control plan, which required a 15-degree angle of draw under certain protected structures. However, plaintiffs did not submit that plan to the State of [363]*363West Virginia until April 14, 1986, and the State did not approve it until April 25, 1986.

II. Subsidence of the Dingus and Tarley Residences

On March 5,1986 the seeds of this dispute began to sprout. On that day Carl Dingus filed a complaint with the West Virginia Department of Energy (WVDOE) alleging that deep mine operations had caused cracks in his driveway and breaks in his water line. State inspectors investigated the complaint and found that the damage had been caused by mining pursuant to Permit No. UO-639. Two days later the State issued a Notice of Violation (NOV) requiring the coal operator to fill in or repair large surface cracks. Because the transfer of PCW’s permit to M & J Coal was not yet complete, the State issued the NOV against PCW.

On March 21, 1986 State and Federal inspectors conducted a joint inspection of the Dingus property, which resulted in the State issuing a NOV against M & J Coal for mining without a permit. The NOV required that M & J Coal cease mining until they obtained a permit. Six days later the State determined that plaintiffs had received but ignored the NOV and issued a formal cessation order. Also, around that time the State issued another NOV in which it ordered plaintiffs to cease mining until they notified all affected surface owners of the mining and possibility of subsidence. Apparently, plaintiffs had relied on notifications that PCW had given surface owners in 1983 and 1984.

During the inspection of the Dingus property, Joseph Tarley, a neighbor of Mr. Dingus, approached one of the state inspectors to complain of subsidence on his property. A few days later, on April 11, 1986, Mr. Tarley sent a letter to Charles Sheets of the Department of Interior’s Office of Surface Mining Reclamation and Enforcement (OSM) complaining of subsidence which caused damage to his house and property. OSM responded by issuing the appropriate notice to the WVDOE advising them of Mr. Turley’s complaint.

April 25, 1986 was an eventful day. At 10:45 a.m. Mrs. Tarley called William Berthy, an OSM inspector, to discuss the subsidence of her house and property.

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30 Fed. Cl. 360, 24 Envtl. L. Rep. (Envtl. Law Inst.) 21064, 1994 U.S. Claims LEXIS 13, 1994 WL 22695, Counsel Stack Legal Research, https://law.counselstack.com/opinion/m-j-coal-co-v-united-states-uscfc-1994.