Rayle Coal Co. v. Chief, Division of Water Resources, State Department of Natural Resources

401 S.E.2d 682, 184 W. Va. 549, 115 Oil & Gas Rep. 341, 33 ERC (BNA) 1236, 1990 W. Va. LEXIS 274
CourtWest Virginia Supreme Court
DecidedNovember 13, 1990
DocketNo. 19418
StatusPublished

This text of 401 S.E.2d 682 (Rayle Coal Co. v. Chief, Division of Water Resources, State Department of Natural Resources) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rayle Coal Co. v. Chief, Division of Water Resources, State Department of Natural Resources, 401 S.E.2d 682, 184 W. Va. 549, 115 Oil & Gas Rep. 341, 33 ERC (BNA) 1236, 1990 W. Va. LEXIS 274 (W. Va. 1990).

Opinion

McHUGH, Justice:

This appeal by the Chief of the Division of Water Resources of the State Department of Natural Resources challenges a ruling of the Circuit Court of Ohio County, West Virginia.1 The circuit court’s ruling reversed a final order of the State Water Resources Board requiring the appellee here, Rayle Coal Company, to apply for a water pollution control permit. We conclude that the circuit court applied an erroneous standard of judicial review to the factual findings of the administrative agency and erred as a matter of substantive law. Accordingly, we reverse the ruling of the circuit court and reinstate the final order of the State Water Resources Board.

I

Valley Camp Coal Company, the predecessor in title to Rayle Coal Company (“Rayle”) at the site in question, owned a certain coal mining refuse pile or spoil pile (“gob pile”) in conjunction with deep mining operations, including a preparation plant, near Triadelphia, Ohio County, West Virginia, at the head of Storch’s Run hollow. Valley Camp constructed a sedimentation pond at the base of this huge gob pile, and such pond collected water runoff and drainage from the gob pile before it entered a body of water known as Storch’s Run. The drainage from the gob pile consisted of low pH, high iron and manganese, that is, “acid mine drainage.” The effluent from the sedimentation pond was collected and pumped over a hill to Valley Camp’s water treatment facility. Valley Camp obtained a water pollution control permit from the Division of Water Resources of the State Department of Natural Resources. Valley Camp’s permit allowed the treated effluent from the gob pile to be discharged into a body of water known as Middle Wheeling Creek (into which Storch’s Run flows).

Rayle acquired certain property from Valley Camp, including the property on which the aforementioned gob pile was located. Valley Camp’s water pollution control permit was not transferable to Rayle. Immediately after acquiring the gob pile area Rayle altered the method of collecting and treating the acid mine drainage from the gob pile. Rather than utilizing the pump and water treatment facility of Valley Camp, Rayle utilized a series of settling ponds and ditches or spillways in the stream bed of Storch’s Run.

The State Water Resources Board (“the Board”) found that “[t]he discharge [of acid mine drainage] from the Rayle Coal Company facility is permanent”; that the treatment works utilized by Rayle “will not eliminate the discharge from the Rayle Coal Company facility”; and that “[t]he water quality of the discharge [into Storch’s Run and Middle Wheeling Creek] from the Rayle Coal Company property is poor.”2 In short, while Rayle’s water treatment system has reduced the amount [551]*551of acid mine drainage that would otherwise be discharged from the gob pile into Storch’s Run and Middle Wheeling Creek, this system has not eliminated such drainage.

Rayle did not apply for a West Virginia-administered “national pollutant discharge elimination system” water pollution control permit, despite being ordered to do so by the Chief of the Division of Water Resources (“the DWR”). See W.Va.Code, 20-5A-10 [1978]. Pursuant to W.Va.Code, 20-5A-15 [1978], Rayle appealed the Chiefs order to the Board. During several years of administrative proceedings the Board and the DWR conditionally authorized Rayle to utilize its water treatment system without applying for a permit. For example, by a letter dated November 4, 1983, the DWR stated:

In the interest of correcting the existing pollution problem at this site as quickly as possible, the Division stated its willingness to forego the usual first step of requiring a permit prior to remedial action if Rayle agrees to the immediate implementation of interim remedial measures designed to address the pollution problem. We also agreed that Rayle will apply for a water pollution control permit, unless the interim remedial measures eliminate all polluting discharges from the site.

(emphasis added) Similarly, in its March 13, 1987 interim order, the Board authorized Rayle to use its water treatment system without applying for a permit, pending the receipt of, and a ruling upon, a “final assessment” report on the efficacy of such system prepared by Rayle. However, in that order the Board stated: “Nothing in this Order may be construed to exempt [Rayle] from any violation of regulations or statutes governing the protection of waters of the State.”

After reviewing Rayle’s “final assessment” report and water sample data, the Board, in a supplement to its final order, determined that Rayle “is discharging or disposing pollutants from a point source into the waters of this State and is required to apply for a WV/NPDES permit and to comply with the provisions of West Virginia Code § 20-5A-1 et seq. ”

On appeal by Rayle the Circuit Court of Ohio County reversed the final order of the Board. The circuit court held: “Because of the agreements made between the parties and the results of the efforts thereof, this Court finds [concludes] that a permit is not required.” The Chief of the DWR subsequently brought this appeal.

II

As part of the West Virginia Water Pollution Control Act,3 and as authorized by the Federal Water Pollution Control Act (sometimes called “the Clean Water Act”), as amended,4 the State of West Virginia’s water pollution control permit program is set forth in W.Va. Code, 20-5A-5 to 20-5A-8b, as amended. The language concerning the circumstances under which an application for a permit is required is contained in W.Va.Code, 20-5A-5(b) [1978]. The portions of that subsection which are relevant here are as follows:

(b) It shall be unlawful for any person, unless he [or she] holds a permit therefor from the department, which is in full force and effect, to:
(1) Allow sewage, industrial wastes or other wastes, or the effluent therefrom, produced by or emanating from any point source, to flow into the waters of this State;
(3) Acquire, construct, install, modify or operate a disposal system or part thereof for the direct or indirect discharge or deposit of treated or untreated sewage, industrial wastes or other wastes, or the effluent therefrom, into the waters of this State, or any extension to or addition to such disposal system;
(6) Construct, install, modify, open, reopen, operate or abandon any mine, quarry or preparation plant, or dispose of any [552]*552refuse or industrial wastes or other wastes from any such mine or quarry or preparation plant: Provided, that the department’s permit shall only be required wherever the aforementioned activities cause, may cause or might reasonably be expected to cause a discharge into or pollution of waters of the State, except that a permit shall be required for any preparation plant: Provided, however, that unless waived in writing by the chief, every application for a permit to open, reopen or operate any mine, quarry or preparation plant or to dispose of any refuse or industrial wastes or other wastes from any such mine or quarry or preparation plant shall contain a plan for abandonment of such facility or operation, which plan shall comply in all respects to the requirements of this article.

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Bluebook (online)
401 S.E.2d 682, 184 W. Va. 549, 115 Oil & Gas Rep. 341, 33 ERC (BNA) 1236, 1990 W. Va. LEXIS 274, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rayle-coal-co-v-chief-division-of-water-resources-state-department-of-wva-1990.