Northern Plains Resource Council v. Fidelity Exploration and Development Company

325 F.3d 1155, 2003 Cal. Daily Op. Serv. 3072, 33 Envtl. L. Rep. (Envtl. Law Inst.) 20171, 2003 Daily Journal DAR 3930, 56 ERC (BNA) 1289, 2003 U.S. App. LEXIS 6852, 2003 WL 1847401
CourtCourt of Appeals for the Ninth Circuit
DecidedApril 10, 2003
Docket02-35836
StatusPublished
Cited by41 cases

This text of 325 F.3d 1155 (Northern Plains Resource Council v. Fidelity Exploration and Development Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northern Plains Resource Council v. Fidelity Exploration and Development Company, 325 F.3d 1155, 2003 Cal. Daily Op. Serv. 3072, 33 Envtl. L. Rep. (Envtl. Law Inst.) 20171, 2003 Daily Journal DAR 3930, 56 ERC (BNA) 1289, 2003 U.S. App. LEXIS 6852, 2003 WL 1847401 (9th Cir. 2003).

Opinion

OPINION

GOULD, Circuit Judge.

Defendant-Appellee Fidelity Exploration & Development Company (“Fidelity”) extracts methane gas'for commercial sale from coal seams located deep underground in the Powder River Basin, Montana. In the process of extracting coal bed methane (CBM), Fidelity pumps groundwater to the surface and discharges this water into the Tongue River. The water discharged is “salty,” contains several chemical constituents identified as pollutants by Environ-' mental Protection Agency (EPA) regulations, has characteristics that may degrade soil, and is unfit for irrigation. The Montana Department of Environmental Quality (MDEQ) advised Fidelity that no permit was required to discharge the coal bed methane groundwater because Montana state law exempts unaltered groundwater from state water quality requirements. Plaintiff-Appellant Northern Plains Resource Gouncil (NPRC) filed a citizen suit under the federal Clean Water Act (CWA) in the District Court for the District of Montana, alleging that Fidelity unlawfully discharged pollutants into navigable waters of the United States. NPRC appeals the district court’s grant of summary judgment to Fidelity.

On appeal, we decide (1) whether the CBM discharge water is a “pollutant” within the meaning of the CWA, and (2) whether Montana state law can exempt Fidelity from obtaining National Pollution Discharge Elimination System (NPDES) permits under the CWA. We hold that the unaltered groundwater produced in association with methane gas extraction, and discharged into the river, is a pollutant within the meaning of the CWA. We also hold that states cannot create exemptions *1158 to the CWA, whether or not the EPA has delegated permitting authority to the state.

I

In 1997, Fidelity began exploring and developing natural gas from coal seams in the Powder River Basin, Montana. The coal reserves in Powder River Basin are several hundred feet below the ground and contain reservoirs of methane gas. The methane is trapped by groundwater that fills the interstitial areas of the coal reserves. To extract the methane, Fidelity drills a conventional well into the coal seam and pumps the trapped water to the surface to reduce water pressure. This pumping releases the trapped methane, which is captured at the surface and piped to market. Fidelity does not add chemicals to the pumped groundwater (CBM water). Fidelity discharges the unaltered CBM water into the Tongue River. Because CBM water comes from deep underground aquifers, it would not reach the Tongue River were it not for Fidelity’s extraction process.

Though Fidelity does not add afiy chemicals to the CBM water before discharge, the water in its natural state contains suspended solids, calcium, magnesium, sodium, potassium, bicarbonate, carbonate, sulfate, chloride, and fluoride. The CBM water also contains measurable quantities of the following metals: aluminum, arsenic, barium, beryllium, boron, copper, lead, iron, manganese, strontium, and radium.

The CBM water is “salty,” a characteristic measured by total dissolved solids or specific conductance. The mean total dissolved solids for the Tongue River is 475 mg/1 as compared to 1,400 mg/1 for the CBM water. Related to the “saltiness” of the CBM water is the water’s high Sodium Absorption Ratio (SAR). SAR measures the ratio of sodium to calcium and magnesium in the water. The SAR of the CBM water discharged by Fidelity is on average 40 to 60 times greater than the background SAR of the Tongue River. For all these reasons, the CBM water is distinctly different from the Tongue River water to which it is added.

Farmers who use water from the Tongue River for irrigation are concerned with the “saltiness” and high SAR of CBM water because of the potential hazards these characteristics pose to soil structure. High SAR water, such as CBM water, causes soil particles to unbind and disperse, destroying soil structure and reducing or eliminating the ability of the soil to drain water. The Montana Department of Environmental Quality (MDEQ), in a Final Environmental Impact Statement analyzing coal bed methane extraction, warns that “clayey” soil, like that in the Tongue River Valley, is vulnerable to damage from high SAR water. Montana Statewide Final Oil and Gas Environmental Impact Statement and Proposed Amendment of the Powder River and Billings Resource Management Plans (hereinafter “Montana FEIS”), Soils Appendix SOI-1, available at www.deq.state.mt.us/CoalBedMethane/ finaleis.asp. Fidelity’s soil expert concluded that “the SAR of CBM water creates a permeability hazard and precludes its use for irrigation without mixing, treatment or addition of soil amendments.” The MDEQ cautioned that unregulated discharge of CBM water would cause “[s]urface water quality in some watersheds [to] be slightly to severely degraded, resulting in restricted downstream use of some waters.” Id. 4-72. Some of the CBM water, however, is used by Fidelity’s grazing lessee, CX Ranch, in livestock watering ponds and stock tanks.

In August 1998, Fidelity contacted the MDEQ about the possibility of discharging its CBM water into the Tongue River and Squirrel Creek. By letter, the MDEQ told *1159 Fidelity that it did not need a permit from the MDEQ to discharge into the Tongue River because the discharge was exempt under Montana Code section 75-5-401(l)(b), which provides:

Discharge to surface water of groundwater that is not altered from its ambient quality does not constitute a discharge requiring a permit under this part if: (i) the discharge does not contain industrial waste, sewage, or other wastes; (ii) the water discharged does not cause the receiving waters to exceed applicable standards for any parameters; and (iii) to the extent that the receiving waters in their ambient state exceed standards for any parameters, the discharge does not increase the concentration of the parameters.

The MDEQ, however, warned Fidelity in the same letter that “the EPA, which provides state program oversight under the federal Clean Water Act, does not agree with the [Montana] Water Quality Act permit exclusion under 75-5-401(l)(b). Therefore, they may ask at some point that you obtain an [Montana Pollution Discharge Elimination System (MPDES) ] permit from us, or an NPDES permit from them.” 1 The EPA told MDEQ that section 75 — 5—401(l)(b) of the Montana Code conflicts with the CWA because it exempts some discharges otherwise subject to the CWA from NPDES permitting requirements. The EPA stressed that “the fact that a discharge does not increase the concentration of a particular parameter does not exempt it from permitting requirements.” The MDEQ responded, resisting revocation of the section 75-5-401(l)(b) exemption and arguing that “the exemption is consistent with federal requirements governing NPDES programs because discharges of unaltered, natural groundwater do not contain ‘pollutants’ as that term is defined under the Clean Water Act.” In a final letter sent to the MDEQ by the EPA, the EPA reiterated its objection to section 75-5^i01(l)(b) if applied to discharges that would otherwise require a permit under the CWA.

Even though MDEQ informed Fidelity in August 1998 that Montana state law exempted the discharge of unaltered groundwater, Fidelity filed MPDES permit applications in January 1999.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Pelgrift v. CitiMortgage, Inc
D. Connecticut, 2025
Cottonwood Environmental Law Center v. Ron Edwards
86 F.4th 1255 (Ninth Circuit, 2023)
Hawai'i Wildlife Fund v. Cnty. of Maui
886 F.3d 737 (Ninth Circuit, 2018)
California Sportfishing Protection Alliance v. Shiloh Group, LLC
268 F. Supp. 3d 1029 (N.D. California, 2017)
Wisconsin Resources Protection Council v. Flambeau Mining Co.
903 F. Supp. 2d 690 (W.D. Wisconsin, 2012)
BPI Energy Holdings, Inc. v. IEC (Montgomery), LLC
664 F.3d 131 (Seventh Circuit, 2011)
Northwest Environmental Defense Center v. Brown
640 F.3d 1063 (Ninth Circuit, 2011)
West Virginia Highlands Conservancy, Inc. v. Huffman
651 F. Supp. 2d 512 (S.D. West Virginia, 2009)
West Virginia Highlands Conservancy, Inc. v. Huffman
588 F. Supp. 2d 678 (N.D. West Virginia, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
325 F.3d 1155, 2003 Cal. Daily Op. Serv. 3072, 33 Envtl. L. Rep. (Envtl. Law Inst.) 20171, 2003 Daily Journal DAR 3930, 56 ERC (BNA) 1289, 2003 U.S. App. LEXIS 6852, 2003 WL 1847401, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northern-plains-resource-council-v-fidelity-exploration-and-development-ca9-2003.