Matter of Marine Shale Processors, Inc.

566 So. 2d 994, 1990 WL 88910
Louisiana Court of Appeal·Decided June 26, 1990·No. CA 89 0928·Published·Cited by 10 cases

Opinion

566 So.2d 994 (1990)

In the Matter of MARINE SHALE PROCESSORS, INC. Request for an Air Quality Variance.

No. CA 89 0928.

Court of Appeal of Louisiana, First Circuit.

June 26, 1990.
Writ Denied November 2, 1990.

*995 Joseph E. LeBlanc, Jr., New Orleans, for appellant Marine Shale Processors, Inc.

John Sheppard and William Ridlon, La. Dept. of Justice, Baton Rouge, for appellee La. Dept. of Environmental Quality.

Before EDWARDS, LANIER and FOIL, JJ.

LANIER, Judge.

This action is on appeal from an administrative proceeding in which the Louisiana Department of Environmental Quality (DEQ) denied the appellant's request for a variance from its point source air emissions permit. These proceedings commenced when appellant filed a written application with DEQ requesting modification of its existing point source air emissions permit and seeking a variance to continue operations until a modified permit could be granted. After a public hearing was held on the requested variance, an assistant secretary of DEQ denied the appellant's request for a variance. The appellant then requested an adjudicatory hearing on the denial of its variance which was denied by the secretary of DEQ. This appeal followed.

FACTS

The facts of this case were set forth in In the Matter of Marine Shale Processors, Inc., 563 So.2d 278 (La.App. 1st Cir.1990) as follows:

The record reveals that MSP [Marine Shale Processors, Inc.-appellant] currently operates its facility under Permit Number 1036 M-1, issued by DEQ, as modified, on January 3, 1986. This permit governs the point source air emissions at MSP's facility. In April, 1988, DEQ requested that MSP submit an Emissions Inventory Questionnaire for all emission points at the facility. MSP complied, and identified point source emissions in the inventory that were not included under its present air permit. On October 7, 1988, MSP filed a Permit Modification Application with DEQ, requesting that DEQ include in its permit those point source emissions not covered, but listed on the inventory. MSP also requested a variance to continue operation of these point sources until a modified permit was granted. DEQ requested additional information before it could act on the request, which was supplied by MSP. On December 15, 1988, a public hearing was conducted by DEQ for the purpose of taking public comment on MSP's variance request.
By letter dated February 1, 1989, DEQ denied MSP's request for a variance, noting that 29 emission points required a variance to operate legally. As reasons for its denial, DEQ cited MSP's past poor performance in adhering to Louisiana's air quality regulations and in complying with DEQ directives. Additionally, DEQ found the request presented an unacceptable risk to persons in the vicinity of the facility. The following day, MSP requested a hearing with DEQ on the variance denial. DEQ refused to hold a hearing, stating it is not required by law to hold an adjudicatory hearing on a variance denial. MSP thereafter timely appealed *996 DEQ's denial of its request for a variance to this court.

DENIAL OF VARIANCE

(Assignment of error number 1)

MSP contends the denial of its request for an air quality variance by DEQ is contrary to law and an abuse of discretion in that: (1) the variance denial is based, in part, on the contents of a July 29, 1986 compliance order, the provisions of which were suspended by its request for a hearing; (2) the variance denial is based, in part, on the contents of a December 27, 1985 compliance order which was never served on it[1]; and (3) its request for a variance was denied despite a clear showing by it that denial of the requested variance will result in the practical closing and/or elimination of a significant portion of its lawful business without corresponding benefit or advantage to the people of the State of Louisiana, contrary to the Louisiana Air Control Law and due process protections of the Louisiana and United States Constitutions.

La.R.S. 30:2057(A) provides as follows:

A. No person shall:
(1) Discharge air contaminants or noise pollution into the air of this state in violation of regulations of the secretary or the terms of any permit, license, or variance issued hereunder.
(2) Violate any rule or regulation adopted by the secretary under this Chapter.

A variance is a special authorization to operate in violation of the law or a permit, and contemplates that the party obtaining the variance will make progress toward compliance with the air quality regulations. La.R.S. 30:2004(7); In the Matter of Marine Shale Processors, Inc., 563 So.2d at 281. A variance gives the potential violator a legal remedy authorizing noncompliance with the air quality regulations for a limited period of time, and relieves the violator from the penalties prescribed for noncompliance. In the Matter of Marine Shale Processors, Inc., 563 So.2d at 281.

La.R.S. 30:2056(A) and (B) provide as follows:

A. The secretary may grant individual variances beyond the limitations prescribed under this Chapter. Such variances may be granted upon presentation of adequate proof that compliance with any provision of this Chapter, with any rule or regulation thereunder, or with any final order or determination of the secretary will result in the practical closing and elimination of any lawful business, occupation, or activity without sufficient corresponding benefit or advantage to the people of the state.
B. In determining under what conditions and to what extent a variance from this Chapter or rule or regulation hereunder may be granted, the secretary shall give due recognition to the progress which the person requesting such variance shall have made in controlling or preventing any condition which may have existed as defined by R.S. 30:2053(2). In such case the secretary shall grant such variance conditioned upon such person effecting a partial abatement over a period of time which it shall consider reasonable under the circumstances, or the secretary in conformity with the intent and purpose of this Chapter to protect health and property may prescribe other and different requirements with which the person who receives such variance shall comply. (Emphasis added)

Louisiana Administrative Code (LAC) 33:III.917 provides as follows:

A. Where, upon written application of the responsible person or persons, the administrative authority finds that by reason of exceptional circumstances strict conformity with any provisions of these regulations would cause undue hardship, would be unreasonable, impractical or not feasible under the circumstances, *997 the administrative authority may permit a variance from these regulations.
B. No variance may permit or authorize the maintenance of a nuisance, or a danger to public health or safety. (Emphasis added)

When used in the Revised Statutes or an air quality regulation, the word "shall" is mandatory, and the word "may" is permissive. La.R.S. 1:3; Succession of Holloway, 531 So.2d 431 (La.1988); Petitto v. McMichael, 552 So.2d 790 (La.App. 1st Cir. 1989); Johnson v. Southern University, 551 So.2d 1348 (La.App. 1st Cir.1988), writ denied, 553 So.2d 475 (La.1989). In this context, the word "may" denotes discretion. Johnson v. Southern University, 551 So.2d at 1362.

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Matter of Marine Shale Processors, Inc., 566 So. 2d 994, 1990 WL 88910 (La. Ct. App. 1990).

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