Snowstone LLC SW Discharge - Decision on Motion

CourtVermont Superior Court
DecidedJanuary 28, 2020
Docket151-11-17 Vtec 76-7-19 Vtec
StatusPublished

This text of Snowstone LLC SW Discharge - Decision on Motion (Snowstone LLC SW Discharge - Decision on Motion) is published on Counsel Stack Legal Research, covering Vermont Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Snowstone LLC SW Discharge - Decision on Motion, (Vt. Ct. App. 2020).

Opinion

STATE OF VERMONT SUPERIOR COURT ENVIRONMENTAL DIVISION Docket No. 76-7-19 Vtec

Snowstone LLC Stormwater Discharge Authorization

ENTRY REGARDING MOTION

Docket No. 76-7-19 Vtec: an appeal from ANR Authorization to Discharge under an MSG Permit.

Title: Motion to Dismiss Neighbors’ Statement of Questions (Motion 5) Filer: Snowstone, LLC Attorney: Lawrence G. Slason Filed Date: November 22, 2019 Response in Opposition filed on 12/20/2019 by Attorney Merrill E. Bent for Appellant Neighbors Response in Partial Support filed on 01/06/2020 by Attorney David R. Cooper for Petitioners to Intervene Maureen and Justin Savage Further Response in Opposition filed on 01/21/2020 by Atty. Merrill E. Bent for Neighbors

The motion is GRANTED.

This appeal concerns a determination by the Vermont Agency of Natural Resources (“ANR”) to authorize the discharge of stormwater proposed by Snowstone, LLC (“Snowstone”), pursuant to Vermont Multi-Sector General Permit #3-9003 (“MSG Permit”) at Snowstone’s proposed dimensional stone extraction project on a 0.93 acre parcel of land off of Tierney Road in Cavendish, Vermont.1 When ANR issued this MSG Permit Authorization, a group of neighbors

1 Snowstone asserts that its dimensional stone extraction operation will occur on less than one acre of land and is therefore exempt from the obligation to secure an Act 250 state land use permit. Snowstone LLC’s Motion to Dismiss Neighbors’ Questions as Beyond the Scope of JO Appeal at 2–4, filed Nov. 22, 2019. Snowstone’s jurisdictional assertion is the subject of a separate appeal filed by Snowstone from an adverse jurisdictional opinion determination by the District 2 Environmental Commission Coordinator (“District Coordinator”). See In re Snowstone, LLC JO #2-308, No. 151-11-17 Vtec, slip op. at 2 (Vt. Super. Ct. Envtl. Div. Feb 21, 2019) (Durkin, J.) [hereinafter Revised Bifurcated Merits Decision]; see also Jurisdictional Opinion #2-308; Snowstone, LLC, Cavendish, Vermont (Dist. 2 Coord. Decision Oct. 18, 2017) [hereinafter JO #2-308] (finding that the proposed extraction project at a previously-existing quarry in Cavendish “constitutes development for a commercial purpose on more than one acre of land in Cavendish, Vermont —a ‘one-acre town’ for Act 250 jurisdictional purposes”). In re Snowstone, LLC SW Discharge Auth., No. 76-7-19 Vtec (EO on Mot. To Intervene) (01-28-2020) Page 2 of 9.

(“Neighbors”) field a timely appeal with this Court. 2 Now pending before the Court is Snowstone’s motion to dismiss all of the Neighbors’ Statement of Questions, which if granted would result in this appeal being dismissed. As noted above, the Neighbors object to this dismissal motion; Intervenors Justin and Maureen Savage (“Landowners”) offer mostly support for Snowstone’s dismissal motion. The Agency and other parties listed below have chosen not to offer comment on the pending motion. Snowstone bases its dismissal motion upon two general assertions. First, that the Neighbors lack standing pursuant to 10 V.S.A. § 8504(a) to raise the legal issues presented in Questions 1–18, 22, 26, and 28 of Neighbors’ Response to Motion to Clarify (“Clarified Statement of Questions”). Neighbors’ Response to Motion to Clarify Statement of Questions, filed Oct. 29, 2019. Second, Snowstone asserts that the Neighbors’ remaining seven Questions raise issues that are outside this Court’s jurisdictional scope concerning the Agency MSG Permit determinations.3 We address Snowstone’s assertions and the Neighbors’ objections in these groupings. In the interest of providing context and clarity to the pending motion, we provide the following procedural background. Snowstone’s proposed project was first presented to this Court in the jurisdictional opinion (“JO #2-308”) appeal cited above. See In re Snowstone, LLC JO Appeal, No. 151-11-17 Vtec (Vt. Super. Ct. Envtl. Div. Feb 21, 2019) (Durkin, J.); see also JO #2-308, at 13. Initially, the District Coordinator concluded that all of Landowners’ 176 acres should be considered for the purpose of determining Act 250 jurisdiction, rather than just the 0.93-acre portion that Snowstone had contracted to acquire. JO #2-308, at 11–13. The District Coordinator concluded that the parties’ purchase and sale contract was not an “arm’s-length transaction” and that the entire Savage parcel should be considered “involved land” for the purpose of determining whether Snowstone‘s proposed extraction operation was subject to Act 250 jurisdiction. Id. Snowstone appealed J.O. #2-308 to this Court; the appeal was assigned Docket No. 151-11-17 Vtec (“JO appeal”). After the parties completed discovery and some settlement discussions, the Court set the JO appeal for a de novo merits hearing on May 17–18, 2018. At trial, it became apparent that the JO appeal presented two principal legal issues: (1) was the Savage-to-Snowstone revised purchase and sale agreement4 an “arm’s-length transaction” and (2) did the evidence presented support Snowstone’s assertion that its activities could be contained within the 0.93-acre parcel that it intended to acquire.

2 The Neighbors who filed the above-captioned appeal are: Michael Harrington, Bruce and Linda Watson, Izzet and Sandy Haci, Kim and James Bergeron, Paul Hogan, Maryellen and James Wichelhaus, Ellen and Edward Beatty, Kevin and Ann Brown, Kern and Svetlana Phillips, Judy and Dan Massey, Joe Calzone, and Teresa Harrington. 3 The remaining questions include Questions 19–21, 23–25, and 27. 4 The Savages and Mr. Snowstone revised their purchase and sale agreement on March 15, 2018, after Mr. Snowstone received the adverse jurisdictional opinion from the District Coordinator. See Revised Bifurcated Merits Decision, at 9, ¶ 35. In re Snowstone, LLC SW Discharge Auth., No. 76-7-19 Vtec (EO on Mot. To Intervene) (01-28-2020) Page 3 of 9.

After Snowstone completed its case in chief, the Neighbors represented that they had no evidence to contest Snowstone’s claim that its proposed purchase from Landowners was an arm’s length transaction. The Court therefore noted that its merits decision would likely include such a legal conclusion. See In re Snowstone, LLC JO #2-308, No. 151-11-17 Vtec, slip op. at 13– 15 (Vt. Super. Ct. Envtl. Div. Nov. 27, 2018) (Durkin, J.) (concluding the contract represents an arm’s length transaction). However, as to the second disputed legal principal, Neighbors contested Snowstone’s assertion that both its extraction operation and any containment or treatment of stormwater discharged by the extraction operation could be contained within the 0.93-acre parcel that Snowstone proposed to purchase. Snowstone then proposed that the Court bifurcate its merits decision by first rendering a decision on the first legal principal (the “arm’s length transaction” issue) and that Snowstone would seek review of its proposed stormwater plans by ANR, with the thought that ANR’s review could assist the parties and the Court in determining whether Snowstone’s proposed activities could occur within the 0.93-acre parcel.5 Neighbors agreed to Snowstone’s procedural proposal and the Court directed the parties to prepare draft language for an interim order. The parties each filed their own proposed interim order language. After consideration of the proposed language, the Court issued its own Interim Order. See In re Snowstone, LLC JO #2-303, No. 151- 11-17 Vtec (Vt. Super. Ct. Envtl. Div. June 14, 2018) (Durkin, J.) [hereinafter Interim Order]. The Interim Order provided a timeline by which Snowstone shall submit an application “for all stormwater and discharge permits required for the proposed quarrying operation.” Id. at 4. The Order continued with the following directives: 4. Snowstone, LLC or its agent(s) shall transmit copies of the permit application(s) and supporting materials [to] Neighbors’ counsel via e-mail or first- class mail on the same day as it is submitted. 5.

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