Star Run, Inc. v. Commonwealth Environmental & Public Protection Cabinet

350 S.W.3d 1, 2010 Ky. App. LEXIS 204, 2010 WL 4289934
CourtCourt of Appeals of Kentucky
DecidedOctober 29, 2010
Docket2008-CA-002187-MR
StatusPublished
Cited by1 cases

This text of 350 S.W.3d 1 (Star Run, Inc. v. Commonwealth Environmental & Public Protection Cabinet) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Star Run, Inc. v. Commonwealth Environmental & Public Protection Cabinet, 350 S.W.3d 1, 2010 Ky. App. LEXIS 204, 2010 WL 4289934 (Ky. Ct. App. 2010).

Opinion

OPINION

MOORE, Judge.

Star Run, Inc., appeals from a judgment affirming the final order of the Secretary for the Commonwealth’s Environmental and Public Protection Cabinet. We affirm because the circuit court’s decision was not clearly erroneous and because there was substantial evidence to support the Hearing Officer’s Report.

FACTUAL BACKGROUND

Donna Johnson owned and operated Star Run, Inc., an underground mine in Pike County, Kentucky, between October 1999 and April 2001. The mining operation was thereafter closed.

Adeline and Curtis Conway live in Pike County and constructed a well on their property in 1981. The well is approximately 100 feet deep. The Conways have had problems with the quality of their well water for several years. It is undisputed that some of the problems with their well are of their own making. Other than replacing the pump from time to time, the Conways have never maintained the well since it was dug. The well has bio-fouling, contaminants, white mites and worms. Even without any contamination from another source, the well cannot be used as a source for drinking water without proper cleaning and maintenance and has not been used for drinking water since 2000 due to an odor akin to rotten eggs. Due to discoloration, the Conways do not use the well water for laundry, other than during periods of drought. The Conways, however, do use water from the well for dish-washing and bathing.

In 2000 and 2001, the Conways filed a Citizens’ Request for Inspection with the *4 Regional Office for Environmental and Public Protection Cabinet because they believed the Star Run mine was impacting their well. Star Run’s underground mining works were approximately 255 feet from the Conway well. The Cabinet conducted investigations and analyzed water samples from the Conway well and concluded that there was insufficient evidence to cite Star Run as the source of the problems the Conways were experiencing at that time.

In 2004, Mr. Conway made another Citizens’ Request for Inspection with the Regional Office for the Cabinet. He complained that the Star Run operation had caused his well to go dry.

Todd Alfrey, the Cabinet’s geologist, conducted a survey and took a water sample from the Conway well. Alfrey issued a report wherein he concluded that there had been a mine-related impact on the Conway well. In his opinion, this could be attributed to the underground mine operations associated with Star Run. Alfrey’s conclusion was based on the water sample taken at that time, historical sampling data from his prior investigations and a review of underground mine maps for Star Run.

Inspector Eddie Kelly, an authorized representative of the Cabinet, thereafter issued a Notice of Noncompliance (No. 53-1212) to Star Run for violation of 405 Kentucky Administrative Regulation (KAR) 18:060 and Kentucky Revised Statute (KRS) 350.421. The violation was described as follows:

Permittee has failed to minimize the disturbance to the General Hydrologic balance in the permitted and/or adjacent areas and to prevent material damage to the General Hydrologic outside the permitted area. Permit was impared (sic) user well water, northeast of permit on the property of Curtis Conway on Jimmie’s Creek in Pike County.

The violation was marked as “non-correctable.” The Cabinet sent a letter to Star Run requiring it to take steps to immediately provide drinking water for the Conways and to connect the Conways’ residence to a temporary water supply within 48 hours.

Star Run did not comply with the Cabinet’s requirement to supply the Conways with water. Because of this, the Cabinet issued another Notice of Noncompliance (No. 52-1213) for a violation of 405 KAR 18:060 to Star Run. The description of the violation was as follows:

After receiving notification that the per-mittee had adversely impacted the water well on the property of Curtis Conway of Jimmie’s Creek in Pike County, Ky., the permittee has failed to provide drinking water within (48) hours and has also not provided temporary water supply connected to the existing plumbing in (2) weeks as stated in the notification dated August 11, 2004.

This violation was marked as “correctable.” The remedial measure was “to provide drinking water and connect temporary water supply.”

The Cabinet issued a Failure to Abate Cessation Order to Star Run. The remedial measures specified therein were 405 KAR 18:060 and KRS 350.421, to provide drinking water and connect the Conways to a temporary water supply pursuant to the first Notice of Noncompliance.

In response to the Cabinet’s Notices of Noncompliance and the Cessation Order, Star Run filed timely Petitions for Administrative Hearings for the separate Notices of Noncompliance from the Cabinet.

Regarding the first Notice of Noncompliance (No. 53-1212), a hearing was held over a period of seven days regarding the *5 causation of the adverse mining impact to the Conway well. The Hearing Officer issued a report, recommending that the Secretary of the Cabinet affirm the Noncompliance. The Secretary thereafter entered a final order, adopting the Hearing Officer’s report.

Regarding the second Notice of Noncompliance (No. 53-1213), the Hearing Officer held a one-day hearing and issued a report wherein he recommended that the Secretary affirm the Noncompliance, Cessation Order and penalty assessment. The Secretary entered a final order, adopting the report of the Hearing Officer.

Star Run filed separate Petitions for Review in Franklin Circuit Court from the Secretary’s final order. The circuit court sua sponte consolidated the actions and affirmed. Star Run has now timely appealed before this Court.

STANDARD OF REVIEW

When analyzing a circuit court’s decision affirming an administrative decision, we review whether the circuit court’s decision is clearly erroneous. 500 Associates, Inc. v. Natural Resources and Environmental Protection Cabinet, 204 S.W.3d 121, 131 (Ky.App.2006) (citations omitted). Regardless of whether a reviewing court would decide the case differently or if there are factual issues in dispute, a court may only overturn an agency decision when (1) the agency acts arbitrarily; (2) acts outside the scope of the authority granted to it by the General Assembly; (3) the agency decision is not supported by substantial evidence contained in the record before the agency; or (4) if the agency has incorrectly applied the law. Kentucky Racing Comm’n v. Fuller, 481 S.W.2d 298, 300-01 (Ky.1972); Brown Hotel Co. v. Edwards, 365 S.W.2d 299, 302 (Ky.1963).

When the agency’s decision is supported by substantial evidence, reviewing courts must defer to the agency regardless of whether there is evidence to the contrary.

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Bluebook (online)
350 S.W.3d 1, 2010 Ky. App. LEXIS 204, 2010 WL 4289934, Counsel Stack Legal Research, https://law.counselstack.com/opinion/star-run-inc-v-commonwealth-environmental-public-protection-cabinet-kyctapp-2010.