Tenneco Oil Co. v. New Mexico Water Quality Control Commission

760 P.2d 161, 107 N.M. 469
CourtNew Mexico Court of Appeals
DecidedDecember 22, 1987
Docket9103, 9106
StatusPublished
Cited by15 cases

This text of 760 P.2d 161 (Tenneco Oil Co. 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
Tenneco Oil Co. v. New Mexico Water Quality Control Commission, 760 P.2d 161, 107 N.M. 469 (N.M. Ct. App. 1987).

Opinion

OPINION

FRUMAN, Judge.

Tenneco Oil Company and Navajo Refining Company appeal from the New Mexico Water Quality Control Commission’s adoption of regulations establishing numerical standards for fourteen organic compounds 1 in groundwater. The issues raised in this consolidated appeal are: (1) what standard of review should this court apply; (2) whether the Commission’s decision was arbitrary, capricious, or an abuse of discretion, or otherwise not in accordance with law; and (3) whether the decision was based on substantial evidence. We affirm.

I. BACKGROUND

Prior to the adoption of the regulations, the Commission received testimony and evidence at its public hearing on September 4-6, 1985. Then, at its public meeting on December 10-11, 1985, the Commission considered the evidence presented at the earlier hearing, voted to adopt the regulations, and asked its counsel to compile a statement of reasons based on the discussions during that meeting. This compilation was adopted at a public meeting on January 14, 1986. The regulations establishing the numerical standards were filed two weeks later.

II. STANDARD OF REVIEW

The Water Quality Act, NMSA 1978, Sections 74-6-1 to -13 (Repl.1986) specifically provides for judicial review of regulations adopted by the Commission. Section 74-6-7(A) states that “appeals shall be upon the record made at the hearing,” and subsection (C) requires a regulation to be set aside 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.” (Emphasis added.)

While the parties agree that Section 74-6-7(A) and (C) sets forth the standard of review applicable to this appeal, they disagree as to what constitutes the record for review. Navajo argues that based on the Open Meetings Act, NMSA 1978, Sections 10-15-1 to -4 (Repl.Pamp.1987), only the transcript and minutes of the Commission’s December public meeting comprise the record, since a public body may deliberate and vote only at a public meeting. § 10-15-1. The Commission contends that Section 74-6-7 mandates that our review include the record of the two public meetings and the public hearing and cites to Duke City Lumber Co. v. New Mexico Envtl. Improvement Bd., 101 N.M. 291, 681 P.2d 717 (1984), for support. Tenneco also relies on Duke City Lumber Co. when it claims that the substantial evidence rule requires that we examine the entire administrative record. We agree with Tenneco and hold that our review must encompass the record of the three Commission sessions.

In Duke City Lumber Co., the standard of review in the Air Quality Control Act, NMSA 1978, Sections 74-2-1 to -17 (Repl. Pamp.1983), was considered in an appeal from the denial of a variance. The court construed the judicial review provisions and decided to:

expressly modify the substantial evidence rule * * * and supplement it with the whole record standard for judicial review of findings of fact made by administrative agencies. A review of the whole record is clearly indicated in those cases where the administrative agency serves not only as the factfinder but also as the complainant and prosecutor.

101 N.M. at 294, 681 P.2d at 720.

Although Duke City Lumber Co. involved adjudication rather than rule-making, Section 74-2-9 of the Air Quality Control Act is similar to Section 74-6-7 of the Water Quality Act in providing that: “appeals shall be upon the record made at the hearing ” and the court of appeals shall set aside the denial of a variance “not supported by substantial evidence in the record.” (Emphasis added.) We therefore find that Duke City Lumber Co.’s express application of the whole record standard of judicial review to findings of fact made by administrative agencies in general controls where the Commission acts in its rule-making capacity.

III. COMPLIANCE OF THE RULE-MAKING PROCEDURE WITH THE LAW

Appellants maintain that the Commission’s decision in setting numerical standards should be set aside, pursuant to Section 74-6-7(C), because it was arbitrary, capricious, or an abuse of discretion, or otherwise not in accordance with law. Appellants allege that the Commission’s rule-making failed to meet various procedural and statutory requirements. Each allegation will be considered separately.

A. Consideration of six criteria mandated by statute.

Appellants claim that the record does not contain evidence of the Commission’s consideration of factors two through six, found in Section 74-6-4(D) of the Water Quality Act; thus, the Commission’s decision was arbitrary, capricious, and not in accordance with law. The Commission responds that it did consider all factors and gave them the weight it deemed appropriate. The Commission acknowledges that, as proponent of the regulations, it has the initial burden of proof in establishing that it did consider all six factors. Cf. International Minerals & Chem. Corp. v. New Mexico Public Serv. Comm’n, 81 N.M. 280, 466 P.2d 557 (1970) (holding that the common-law rule that the moving párty has the burden of proof applies to administrative agencies).

In delineating the Commission’s duties and powers, Section 74-6-4(D) requires that it:

shall adopt * * * regulations to prevent or abate water pollution in the state * * *. Regulations shall not specify the method to be used to prevent or abate water pollution, but may specify a standard of performance for new sources which reflects the greatest degree of effluent reduction which the commission determines to be achievable through application of the best available demonstrated control technology * * * including where practicable, a standard permitting no discharge of pollutants. In making its regulations, the commission shall give weight it deems appropriate to all facts and circumstances, including but not limited to:
(1) character and degree of injury to or interference with health, welfare and property;
(2) the public interest, including social and economic value of the sources of water contaminants;
(3) technical practicability and economic reasonableness of reducing or eliminating water contaminants from the sources involved and previous experience with equipment and methods available to control the water contaminants involved;
(4) successive uses, including but not limited to, domestic, commercial, industrial, pastoral, agricultural, wildlife and recreational uses;
(5) feasibility of a user or a subsequent user treating the water before a subsequent use; and

Free access — add to your briefcase to read the full text and ask questions with AI

Related

NM Top Organics-Ultra Health, Inc. v. Gallagher
New Mexico Court of Appeals, 2021
State ex rel. Stapleton v. Skandera
2015 NMCA 044 (New Mexico Court of Appeals, 2015)
State v. Burke
2007 NMCA 093 (New Mexico Court of Appeals, 2007)
Rio Grande Chapter of the Sierra Club v. New Mexico Mining Commission
2003 NMSC 005 (New Mexico Supreme Court, 2002)
New Mexico Mining Ass'n v. New Mexico Mining Commission
924 P.2d 741 (New Mexico Court of Appeals, 1996)
Old Abe Co. v. New Mexico Mining Commission
908 P.2d 776 (New Mexico Court of Appeals, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
760 P.2d 161, 107 N.M. 469, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tenneco-oil-co-v-new-mexico-water-quality-control-commission-nmctapp-1987.