Phelps Dodge Tyrone, Inc. v. New Mexico Water Quality Control Commission

2006 NMCA 115, 143 P.3d 502, 140 N.M. 464
CourtNew Mexico Court of Appeals
DecidedJuly 19, 2006
Docket25,027
StatusPublished
Cited by24 cases

This text of 2006 NMCA 115 (Phelps Dodge Tyrone, Inc. v. New Mexico Water Quality Control Commission) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phelps Dodge Tyrone, Inc. v. New Mexico Water Quality Control Commission, 2006 NMCA 115, 143 P.3d 502, 140 N.M. 464 (N.M. Ct. App. 2006).

Opinion

OPINION

WECHSLER, Judge.

{1} The opinion filed in this case on June 15, 2006 is hereby withdrawn and the following substituted therefor. The joint motion for rehearing of the New Mexico Water Control Commission and the New Mexico Environment Department is denied.

{2} This appeal concerns a groundwater discharge permit, No. DP-1341, issued by the New Mexico Environment Department (NMED) to Phelps Dodge Tyrone, Inc., 1 and raises important issues under the Water Quality Act, NMSA 1978, §§ 74-6-1 to -17 (1967) (amended 2005) (the Act). 2 The permit requires Tyrone to take certain steps when mining operations are completed at its Tyrone copper mine. Among other things, the permit requires Tyrone to regrade its leach ore and waste rock piles to slopes no steeper than 3:1 and to completely cap the piles with three feet of alluvium (i.e., silt, clay, gravel, or similar material). The Water Quality Control Commission upheld these conditions. Tyrone contends that NMED has no authority to impose these conditions and that the conditions are invalid because NMED and the Commission misinterpreted the Act. Tyrone also raises several due process issues related to the composition of the Commission and conduct of the Commission hearing.

{3} We hold that NMED has the authority to impose reasonable permit conditions. However, we hold that the Commission failed to use a proper analysis in determining whether the conditions are reasonable and remand for further, limited proceedings. We also hold that Tyrone’s due process claims do not require reversal.

BACKGROUND

A. THE TYRONE MINE

{4} Some context is required to understand the permit conditions and the issues presented by this appeal. The Tyrone mine is extremely large. It covers approximately 9400 acres and includes eight open mining pits and six pits that were previously mined. The main pit is 1400 feet deep. Waste rock from the pit excavations has been deposited in piles near and adjacent to the open pits. Leaehable-grade ore has also been placed in stockpiles near and adjacent to the pits. The leach ore stockpiles and waste rock piles cover approximately 2800 acres and contain about 1.7 billion tons of rock.

{5} Tyrone leaches the stockpiles by placing acidic leach solution on the tops and sides of the piles. The solution percolates through the piles and dissolves the copper, and the resulting pregnant leach solution is then collected at the stockpile toes. The solution is then pumped to a solvent extraction and electrowinning plant where the copper is removed from the solution.

{6} The process of mining copper produces acid drainage that significantly and adversely affects groundwater. Piles continue to create acid drainage for hundreds of years after mining has ceased, as the piles are exposed to water and oxygen.

B. THE PERMIT

{7} The permit imposes requirements on Tyrone’s mine closure and contains 117 conditions. Tyrone challenges conditions 4 and 17. Condition 4 requires Tyrone to “regrade all Waste Rock Pile and Leach Ore Stockpile slopes to interbench slopes of no steeper than 3:1 (horizontal: vertical).” Condition 17 requires Tyrone to cover all waste rock and leach ore piles and tailing impoundments with at least three feet of approved non-acid generating alluvium. Other conditions require Tyrone to establish vegetation on the covers. The reason for these conditions is that, according to NMED’s experts, a three-foot soil cover, on which vegetation is established, acts as a cover that keeps precipitation from infiltrating the piles and then creating acid drainage. These conditions have been referred to as “source control” because they greatly reduce acid drainage at its source, the piles. The Commission affirmed these conditions.

{8} Tyrone believes that these conditions are overly burdensome and unlawful. At the evidentiary hearing before the Commission, Tyrone offered its own method, the “open-pit capture zone.” An open-pit capture zone is an area into which all groundwater flows, and is then captured, instead of flowing into the regional aquifer. Under this method, the open pits naturally catch contaminated water, which is then pumped out and treated. Pumping and treating would occur over a period of approximately one hundred years. According to Tyrone, this method does not require Tyrone to regrade the piles to the same extent and limits the covers that will be required. Tyrone proposes to cover only some of the piles, to cover with two feet of material, and to cover the tops of the piles but not the sides.

{9} NMED’s expert testified that Tyrone’s method was flawed for several reasons. He indicated that the pit capture zone might only protect one aquifer, while another aquifer became contaminated and allowed the contamination to move offsite. In addition to that problem, he indicated that there existed uncertainty about the actual location of the pit capture zone. Finally, NMED’s expert testified that if contamination still exists after the pumping and treatment stop, nothing would prevent it from moving offsite and contaminating water elsewhere. The Commission denied Tyrone’s appeal and upheld the permit conditions.

STANDARD OF REVIEW

{10} Under the Act, we set aside an action of the Commission only if it is “(1) arbitrary, capricious or an abuse of discretion; (2) not supported by substantial evidence in the record; or (3) otherwise not in accordance with law.” Section 74 — 6—7(B)(1)— (3); Regents of the Univ. of Cal. v. N.M. Water Quality Control Comm’n, 2004-NMCA-073, ¶ 8, 136 N.M. 45, 94 P.3d 788. “An action is arbitrary or capricious if it is unreasonable, irrational, wilful, and does not result from a sifting process” or “if there is no rational connection between the facts found and the choices made.” Regents of the Univ. of Cal., 2004-NMCA-073, ¶ 35, 136 N.M. 45, 94 P.3d 788 (internal quotation marks and citations omitted).

NMED’S AUTHORITY TO IMPOSE REASONABLE PERMIT CONDITIONS

{11} The first issue we address is whether NMED may include conditions that specify the methods of controlling pollution in a discharge closure permit when those conditions were not proposed by the applicant. Because NMED’s authority is derived from statute, we review this issue de novo. See Morgan Keegan Mortgage Co. v. Candelaria, 1998-NMCA-008, ¶ 5, 124 N.M. 405, 951 P.2d 1066 (applying de novo review to construction of a statute). We give little or no deference to agencies engaged in statutory construction because they have no expertise in that area. Pub. Serv. Co. of N.M. v. N.M. Pub. Util. Comm’n, 1999-NMSC-040, ¶ 14, 128 N.M. 309, 992 P.2d 860.

{12} Tyrone argues that the Act limits NMED’s authority to impose permit conditions and that the Act does not authorize the conditions Tyrone challenges in this case. Tyrone relies on two sections of the Act. First, it relies on Section 74-6-4(D), which states that regulations adopted by the Commission may not specify the method to be used:

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Cite This Page — Counsel Stack

Bluebook (online)
2006 NMCA 115, 143 P.3d 502, 140 N.M. 464, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phelps-dodge-tyrone-inc-v-new-mexico-water-quality-control-commission-nmctapp-2006.