Morton County v. Henke

308 N.W.2d 372, 1981 N.D. LEXIS 333
CourtNorth Dakota Supreme Court
DecidedJuly 9, 1981
DocketCiv. 9937
StatusPublished
Cited by24 cases

This text of 308 N.W.2d 372 (Morton County v. Henke) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morton County v. Henke, 308 N.W.2d 372, 1981 N.D. LEXIS 333 (N.D. 1981).

Opinion

SAND, Justice.

This is an appeal by the respondent, Raymond Henke, in his capacity as director of tax equalization of Oliver County and as treasurer of Oliver County [hereinafter referred to as Oliver County], from a district court peremptory writ of mandamus ordering Oliver County to share its coal production severance tax payments with the petitioners, Morton County, Mandan Public School District No. 1, and New Salem Public School District No. 7 [hereinafter referred to as Morton County and the school districts].

Morton County and the school districts base their claims to share in the coal development fund money upon North Dakota Century Code Ch. 57-62, which went into effect on 1 July 1979. Section 57-62-02, NDCC, allocates the coal severance tax revenue (See NDCC Ch. 57-61) in the coal development fund, and in relevant part provides:

“3. ...
“a. .. .
“b. If the tipple of a currently active coal mining operation in a county is within fifteen miies [24.14 kilometers] of another county in which no coal is mined, the revenue apportioned according to this subsection shall be allocated as follows:
(1) Thirty percent shall be paid by the county treasurer of the coal-producing county to the incorporated cities of that county and to any city of a non-coal-producing county when any portion of the city lies within fifteen miles [24.14 kilometers] of the tipple of a currently active coal mining operation in a coal-producing county, based upon the population of each incorporated city according to the last official regular or special federal census or the census taken in accordance with the provisions of chapter 40-02 in case of a city incorporated subsequent to such census.
(2) Forty percent shall be divided by the county treasurer of the coal producing county between the general fund of the coal-producing county and the general fund of any non-coal-producing county when any portion of the latter county lies within fifteen miles [24.14 kilometers] of the tipple of a currently active coal mining operation in the coal-producing county. The non-coal-producing county portion shall be based upon the ratio which the assessed valuation of all quarter sections of land in that county, any portion of which lies within fifteen miles [24.14 kilometers] of the tipple of a currently active coal mining operation, bears to the combined assessed valuations of all land in the coal-producing county and the quarter sections of land in the non-coal-producing county within fifteen miles [24.14 kilometers] of the tipple of the currently active coal mining operation. It shall be the duty of the county director of tax equalization of the coal-producing county to certify to the treasurer of the same county the number of quarter sections of land in *374 the non-coal-producing counties which lie at least in part within fifteen miles [24.14 kilometers] of the tipple of a currently active coal mining operation and their assess valuations.
(3) Thirty percent shall be apportioned to the county treasurer of the coal-producing county to school districts within that county and to school districts in adjoining non-coal-producing counties when a portion of those school districts’ land includes any of the quarter sections of land certified by the director of tax equalization to the county treasurer to be eligible to share county funds as provided for in paragraph 2. The county superintendent of the non-coal-producing counties shall certify to the county treasurer of the coal-producing county, the number of students actually residing on these quarter sections lying outside the coal-producing county and each school district in non-coal-producing counties shall receive a portion of the money under this paragraph based upon the ratio of the number of children residing on quarter sections of that school district within the fifteen miles [24.14 kilometers] radius of a currently active coal mining operation to the total number of school children from the coal-producing county combined with all the school children certified to be living on quarter sections within fifteen miles [24.14 kilometers] of the tipple of a currently active coal mining operation in the coal-producing county.” [Emphasis added.]

Morton County has been a non-coal-producing county and Oliver County has been a coal-producing county sometime before and since this statute went into effect on 1 July 1979.

In August 1980 William Heisler, Morton County superintendent of schools, in a letter sent to Raymond Henke sought a share of the coal tax funds for the Morton County children residing within a fifteen-mile radius of the tipple of the Baukol-Noonan mine in Oliver County. The Oliver County Commission directed Henke not to disburse any coal development funds to Morton County because the Oliver County Commission was of the opinion that a tipple did not exist at the Baukol-Noonan mine, and therefore the sharing provisions for the money in the coal development fund were not applicable. Based on this, Oliver County declined to share any coal development fund with Morton County and the school districts.

Oliver County’s opinion that no tipple existed was based upon the following three reasons:

(1) A tipple is a facility for crushing and treating coal and loading it into trucks or railroad cars for transit, and Baukol-Noonan does not have such a facility;
(2) The 1979 amendment to Ch. 57-62, NDCC, was meant to alleviate the impact problems of two specific areas, Velva and Reeder-Scranton, and not the Baukol-Noonan mine; and
(3) Where a tipple exists, consumers will travel to the tipple and haul coal from it within a fifteen-mile radius; however, at Baukol-Noonan the coal was used by Minnkota Power at the place it was dumped.

The record reflects that the operation conducted at the Baukol-Noonan mine is in some ways unique. All the coal is strip-mined at Baukol-Noonan and is sold to Minnkota Power Cooperative for the operation of their Milton R. Young and Square Butte coal-fired electric generating plants. After the coal is severed from the Baukol-Noonan mine, it is loaded into trucks and hauled two miles to Minnkota’s generating plants, where it is dumped into underground coal hoppers. Minnkota handles the coal from this point. The underground coal hoppers feed the coal into primary crushers which perform the initial stage of crushing. After the initial stage of crushing, the coal is transferred by conveyor belt to a secondary crusher. From the secondary crusher, the coal is moved to a stockpile for later movement into the plant furnaces.

*375 The coal is weighed on a scale located between the primary and secondary crushers which establishes the coal tonnage. This weight forms the basis of Baukol-Noo-nan’s charge to Minnkota for the tons of coal delivered. This weight also constitutes the basis for calculating the landowner’s royalty and the coal severance tax. See NDCC Ch. 57-61. These operations are all within the fifteen miles of Morton County and the school districts.

On 4 Nov. 1980, Morton County and the school districts filed a petition for an alternative writ of mandamus. The parties filed affidavits on behalf of and against the writ.

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Bluebook (online)
308 N.W.2d 372, 1981 N.D. LEXIS 333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morton-county-v-henke-nd-1981.