Pittston Co. v. Lujan

798 F. Supp. 344, 23 Envtl. L. Rep. (Envtl. Law Inst.) 20217, 36 ERC (BNA) 1488, 1992 U.S. Dist. LEXIS 11230, 1992 WL 166466
CourtDistrict Court, W.D. Virginia
DecidedApril 23, 1992
DocketCiv. A. 91-0006-A
StatusPublished
Cited by6 cases

This text of 798 F. Supp. 344 (Pittston Co. v. Lujan) is published on Counsel Stack Legal Research, covering District Court, W.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pittston Co. v. Lujan, 798 F. Supp. 344, 23 Envtl. L. Rep. (Envtl. Law Inst.) 20217, 36 ERC (BNA) 1488, 1992 U.S. Dist. LEXIS 11230, 1992 WL 166466 (W.D. Va. 1992).

Opinion

MEMORANDUM OPINION

GLEN M. WILLIAMS, Senior District Judge.

The Pittston Company and Clinchfield Coal Company (“Plaintiffs”) initially brought this action seeking a temporary restraining order (“TRO”), preliminary injunction and permanent injunction. The court has previously entered orders granting the TRO and the preliminary injunction. Therefore, the permanent injunction is the only remaining issue. The matter is presently before the court on the motion of the Secretary of the Interior and the Commonwealth of Virginia (“Defendants”) for summary judgment and Plaintiffs’ motion for entry of a permanent injunction. The *345 Plaintiffs assert jurisdiction pursuant to 28 U.S.C. § 1331 and 30 U.S.C. § 1276(a)(1).

FACTUAL AND PROCEDURAL BACKGROUND

The Pittston Company (“Pittston”), through its subsidiaries, is engaged in the business of mining coal in Virginia and other states. Clinchfield Coal Company (“Clinchfield”) is an indirect wholly-owned subsidiary of Pittston operating in Virginia. Manuel Lujan, Jr. is Secretary of the United States Department of Interior (“Secretary”), which, through the Office of Surface Mining Reclamation and Enforcement (“OSM”), administers the Surface Mining Control and Reclamation Act of 1977 (“SMCRA”), 30 U.S.C. §§ 1201-1328, and promulgates regulations governing surface coal mining. The Commonwealth of Virginia, through its Department of Mines, Minerals and Energy (“DMME”) and Division of Mine Land Reclamation (“DMLR”), obtained federal approval in 1981 as the primary regulatory authority and issuer of permits for surface coal mining in this state, with the Secretary, through OSM, retaining certain oversight authority.

Clinchfield is engaged in the business of mining, processing, and selling coal in Virginia. Clinchfield also hires independent contractors, known in the business as “contract miners,” who mine for the company. The parties stipulated that, at certain times from the late 1970s to the mid-1980s, Golden Chip Coal, Inc., Fadco, Inc., Delight Coal Corporation, and Elkins Energy Company (“the Contractors”) were contract miners for Clinchfield at locations in Southwest Virginia. During this time, Clinchfield owned or leased the coal being mined by the Contractors and, pursuant to contracts with them, had the right to receive the coal after mining. The Contractors were independently owned and operated and held their own permits from OSM and DMLR to conduct surface coal mining.

On October 3, 1988, the Secretary adopted regulations, effective November 2, 1988, defining the term “owned or controlled” as used in the SMCRA, 30 U.S.C. § 1260(c) 1 , and revising the scope of review of a permit applicant’s environmental compliance record prior to issuance of new permits. 30 C.F.R. § 773.5, 773.15(b). 2 At the same time, OSM established the Applicant/Violator System (“AVS”), a computer system that identifies whether an applicant for a permit is linked by ownership or control to any person having outstanding violations of federal or state surface mining laws.

Annetta L. Cheek, Chief of OSM’s Applicant/Violator System Office (“AVSO”), submitted an affidavit describing the procedure followed for evaluating permit applications under § 510(c) of SMCRA, 30 U.S.C. § 1260(c). Cheek stated that the primary resource available to regulatory authorities for evaluating permit applications is the AVS. When queried, the AVS makes a recommendation to issue, deny, or condition a permit based on whether the AVS discovers an ownership or control link between the applicant and an outstanding violation. Cheek stated that the states are not required to follow the AVS or AVSO recommendation; but under their respective memoranda of understanding with OSM, the states are required to consider any information they receive from the AVS or AVSO before issuing a permit. However, Bill Bledsoe from the DMME stated that his agency had never overridden an OSM block based on federal violations. (2/6/91 Tr. at 71). Following the February 6, 1991 hearing, the OSM and DMLR entered into an agreement which requires Virginia to participate in the AVS and to refuse permits to any person the AVS links to a violator unless (1) the ownership or *346 control link has been shown to be erroneous or (2) the applicant proves that the violation has been, or is being, abated or is the subject of a good faith appeal. (Plaintiffs’ Exhibit 4 at 5, filed 11/12/91).

Cheek stated that the ownership or control link is determined by using the standards set forth in 30 C.F.R. §§ 773.5, 773.-15(b)(1). The ownership and control information in the AVS comes from two sources: (1) information submitted in applications for surface mining permits pursuant to § 507 of SMCRA, 30 U.S.C. § 1257, and equivalent state requirements, and (2) information developed through research conducted by the AVSO’s Lexington, Kentucky office. At present, violations in the AVS consist of state’s reports of bond forfeitures, OSM’s reports of unabated federal performance standard violations, unpaid federal civil penalties, and unpaid abandoned mine land fees.

Cheek’s affidavit also addressed an applicant’s access to information in the AVS and the applicant’s opportunities to amend adverse information prior to the information being used to block permits. Cheek stated that, when the AVSO identifies a link to an unabated violation, the AVSO sends a letter, hereinafter referred to as the thirty-day letter, to the newly identified entity notifying the entity that the link has been discovered. The entity then has thirty days to submit material that may correct the violation information or rebut an ownership or control link to the outstanding violation. The entity may wish to contest the status of the violation or the ownership or control link. The “status” of the violation includes whether such violation has been corrected, is being corrected, or is the subject of a good faith appeal. The “ownership or control” link is reviewed under 30 C.F.R. §§ 773.5, 773.15(b)(1). However, the AVSO does not review the “validity” of federal or state violations. The validity of the violation refers to whether a violation existed at all or was the responsibility of the party cited.

If there is no response to the thirty-day letter, the AVSO will recommend denial of any pending or future permit.

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Bluebook (online)
798 F. Supp. 344, 23 Envtl. L. Rep. (Envtl. Law Inst.) 20217, 36 ERC (BNA) 1488, 1992 U.S. Dist. LEXIS 11230, 1992 WL 166466, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pittston-co-v-lujan-vawd-1992.