National Wildlife Federation v. Department of Environmental Quality

856 N.W.2d 252, 306 Mich. App. 336
Michigan Court of Appeals·Decided August 12, 2014·No. No 1; Docket No. 307602·Published·Cited by 9 cases

Opinion

Per Curiam.

Appellants appeal by leave granted the circuit court’s order affirming the decision of the Department of Environmental Quality (DEQ) to grant a mining permit to the Kennecott Eagle Minerals Company. We affirm.

I. FACTS

This case reflects the attempt to balance the potentially conflicting imperatives of exploiting a great economic opportunity and protecting the environment, natural resources, and public health. At issue is appellee Kennecott’s proposal to develop an underground mine to extract nickel and copper from the sulfide ores beneath the headwaters of the Salmon Trout River in the Yellow Dog Plains in Marquette County.

Governing such activities is 2004 PA 449, which added Part 632, MCL 324.63201 to MCL 324.63223, to the Natural Resources and Environmental Protection Act, MCL 324.101 et seq. MCL 324.63205(1) states: “A person shall not engage in the mining of nonferrous metallic minerals except as authorized in a mining permit issued by the department.” A “nonferrous metallic mineral” is “any ore or material to be excavated from the natural deposits on or in the earth for its metallic content, but not primarily for its iron or iron [340]*340mineral content, to be used for commercial or industrial purposes.” MCL 324.63201(j). The Legislature set forth certain findings on this subject in MCL 324.63202, including the following:

(c) Nonferrous metallic sulfide deposits are different from the iron oxide ore deposits currently being mined in Michigan in that the sulfide minerals may react, when exposed to air and water, to form acid rock drainage. If the mineral products and waste materials associated with nonferrous metallic sulfide mining operations are not properly managed and controlled, they can cause significant damage to the environment, impact human health, and degrade the quality of life of the impacted community.
(d) The special concerns surrounding nonferrous metallic mineral mining warrant additional regulatory measures beyond those applied to the current iron mining operations.
(e) Nonferrous metallic mineral mining may be an important contributor to Michigan’s economic vitality. The economic benefits of nonferrous metallic mineral mining shall occur only under conditions that assure that the environment, natural resources, and public health and welfare are adequately protected.

In February 2006, Kennecott submitted applications to the DEQ for a nonferrous metallic mineral mining permit and a groundwater discharge permit. In January 2007, the DEQ consolidated the applications for public hearings, which were held in September 2007. In December 2007, the DEQ issued the mining and discharge permits to Kennecott.

Appellants requested contested case hearings on both permits. The DEQ’s administrative law judge (ALJ) held consolidated hearings over the spring and summer of 2008. In August 2009, the ALJ issued a proposal for decision, rejecting all challenges but crediting the concern of appellant Keweenaw Bay Indian [341]*341Community that the proposed location for the mine’s portal, Eagle Rock, was a place of worship, and concluding that the permit application should therefore include a specific assessment in that regard.

The DEQ initially remanded the matter to the ALJ for additional findings on whether Eagle Rock was a place of worship, then vacated that order and referred that issue along with the rest of the case to its final decision-maker for a final determination and order.

The final decision-maker concluded that a stipulation prevented appellants from making the religious status of Eagle Rock an issue, and, alternatively, that Mich Admin Code, R 425.202(2)(p), which calls for assessment of mining impacts on “places of worship,” concerned only buildings used for human occupancy, not purely outdoor locations such as Eagle Rock. The final determination and order thus departed from the ALJ’s recommendations in that regard, but otherwise adopted the findings of fact and conclusions of law set forth in the proposal for decision, with minor additions, and granted the mining permit.

Appellants sought judicial review in the circuit court, which, in a lengthy and detailed opinion and order, affirmed the DEQ in all regards. This Court granted leave to appeal in an unpublished order entered August 7, 2012.1

II. STANDARDS OF REVIEW

The circuit court’s task was to review the administrative decision to determine if it was authorized by law and supported by competent, material, and substantial evi[342]*342dence on the whole record. Const 1963, art 6, § 28; MCL 24.306(1). An agency decision is not authorized by law if it violates constitutional or statutory provisions, lies beyond the agency’s jurisdiction, follows from unlawful procedures resulting in material prejudice, or is arbitrary and capricious. Northwestern Nat’l Cas Co v Comm’r of Ins, 231 Mich App 483, 488; 586 NW2d 563 (1998).

“[W]hen reviewing a lower court’s review of agency action this Court must determine whether the lower court applied correct legal principles and whether it misapprehended or grossly misapplied the substantial evidence test to the agency’s factual findings.” Boyd v Civil Serv Comm, 220 Mich App 226, 234; 559 NW2d 342 (1996). “This latter standard is indistinguishable from the clearly erroneous standard .... [A] finding is clearly erroneous when, on review of the whole record, this Court is left with the definite and firm conviction that a mistake has been made.” Id. at 234-235.

A tribunal’s interpretation of a statute is subject to review de novo. In re Complaint ofRovas, 482 Mich 90, 102; 754 NW2d 259 (2008). A tribunal’s interpretation of an administrative rule is reviewed likewise. Aaronson v Lindsay & Hauer Int’l Ltd, 235 Mich App 259, 270; 597 NW2d 227 (1999). A tribunal’s evidentiary decisions are reviewed for an abuse of discretion. See Price v Long Realty, Inc, 199 Mich App 461, 466; 502 NW2d 337 (1993).

Unpreserved issues, however, are reviewed for plain error affecting substantial rights. Kern v Blethen-Coluni, 240 Mich App 333, 336; 612 NW2d 838 (2000).

III. SCOPE OF CONTESTED CASE PROCEEDINGS

Appellants argue that the ALJ erred by allowing the introduction of new evidence in the contested case proceedings, or otherwise in treating the contested case [343]*343as an extension of the original process of deciding the permit application. Appellants suggest that the original application proceedings leading up to the initial decision to issue the mining permit should be deemed a completed adjudication, with the contested case proceedings that followed then serving as the first stage of appellate review, which, for that reason, should have proceeded with a conservative approach to taking new evidence. We disagree.

As noted in our opinion affirming the circuit court’s rejection of this argument in connection with appellants’ objections to the DEQ’s decision to issue a groundwater discharge permit, Nat’l Wildlife Federation v Dep’t of Environmental Quality (No. 2), 306 Mich App 369; 856 NW2d 394 (2014) (Docket No.

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National Wildlife Federation v. Department of Environmental Quality, 856 N.W.2d 252, 306 Mich. App. 336 (Mich. Ct. App. 2014).

856 N.W.2d 252 (National Wildlife Federation v. Department of Environmental Quality) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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