Town of Wallace v. North Carolina Department of Environment & Natural Resources

584 S.E.2d 809, 160 N.C. App. 49, 2003 N.C. App. LEXIS 1673
CourtCourt of Appeals of North Carolina
DecidedAugust 19, 2003
DocketNo. COA02-1119
StatusPublished
Cited by6 cases

This text of 584 S.E.2d 809 (Town of Wallace v. North Carolina Department of Environment & Natural Resources) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Town of Wallace v. North Carolina Department of Environment & Natural Resources, 584 S.E.2d 809, 160 N.C. App. 49, 2003 N.C. App. LEXIS 1673 (N.C. Ct. App. 2003).

Opinion

STEELMAN, Judge.

The Town of Wallace (“petitioner” or “Wallace”) operates a waste-water treatment plant under a national pollutant discharge elimination system (“NPDES”) permit issued by the North Carolina Department of Environment and Natural Resources (“DENR”) and the Division of Water Quality (“DWQ”). One of the main trunk lines into the plant runs along Little Rockfish Creek in Wallace.

On 16 June 1999, plant operator Doug Mears (“Mears”) arrived at 7:00 a.m. to discover that little or no sewage was flowing into the treatment plant. Mears informed Paul Parker (“Parker”), Director of Public Works in Wallace, of the problem around 7:30 a.m. He also telephoned the DWQ office in Wilmington, North Carolina, where he left a message that the treatment plant was not receiving flow and that petitioner was investigating the problem to determine the cause.

About 8:30 a.m. on 16 June 1999, DWQ environmental chemist George Colby (“Colby”) received Mears’ message and telephoned Mears, who again stated that the plant was not receiving any flow of sewage. At 12:30 p.m., Colby telephoned Parker who informed him that a broken pipe had been discovered on the main trunk line running along Little Rockfish Creek. This pipe was 18 inches in diameter, was one and one-half to two inches thick and was constructed of reinforced concrete.

Colby arrived at the site of the break at approximately 1:15 p.m. and observed that Wallace employees had removed the section of the pipe where the break had occurred. He estimated the break caused one million gallons of untreated sewage to spill into Little Rockfish Creek. Colby sampled the waters of the creek near the sewage entry point, upstream and downstream on 16 June 1999 and for several subsequent days.

During a discussion about the break and subsequent spill, Parker told Colby that the trees and bushes surrounding the section of broken pipe had been cut for right-of-way maintenance three to four years prior to June 1999. However, petitioner had not inspected the interior of the pipes in that section by “TV”ing them with a special camera or any other method before the break occurred.

On 17 June 1999, Parker filed an initial written report in which he stated the break and sewage spill were caused by “[d]ecayed tree stump roots [that] grew into pipe joints and . . . high rainfall . . . .” This report also stated that tree stumps were removed from the area [51]*51surrounding the broken pipe and that a temporary, sleeved channel was constructed with steel and plywood until a new section of pipe could be installed.

Parker later testified that during the excavation of the broken pipe, he observed a small, decayed tree stump on the ground above the break. He further testified that none of the roots had intruded any section of the pipe and that an inspection of the adjacent pipe sections revealed no roots growing into the pipe or other defects.

Petitioner had been under a Special Order of Consent (“SOC”) with DENR to investigate and repair sections of its sewage collection system identified by engineers as needing repairs. However, the section of pipe which broke and caused the spill was not part of the SOC.

A laboratory analysis of the water samples collected by Colby showed violations of the State water quality standards for dissolved oxygen levels and fecal coliform bacteria. DWQ Director Kerr T. Stevens (“Stevens”) investigated the incident and issued a decision assessing petitioner a $4,000.00 civil penalty for its violations of N.C. Gen. Stat. § 143-215.1(a)(6) (2001) plus investigation costs of $530.82.

On 13 March 2000, Wallace filed a contested case petition pursuant to N.C. Gen. Stat. § 150B-23 (2001) to challenge DWQ’s assessment. After an administrative hearing, the administrative law judge (“ALJ”) issued a recommended decision finding that the civil penalties had been assessed improperly. On 26 April 2001, the Environmental Management Commission (“EMC”) issued the final agency decision in which it rejected the ALJ’s recommendation but reduced the civil penalty to $2,000.00 plus investigation costs of $530.82.

Wallace petitioned for judicial review on 10 May 2001, seeking to have the EMC’s final agency decision declared null and void. On 11 March 2002, the trial court filed its judgment reversing the EMC’s final agency decision and permanently restraining and enjoining DENR from imposing any civil penalty or costs on petitioner. Respondent appeals the trial court’s reversal of the EMC decision.

I.

Respondent contends the trial court erred in reversing the EMC’s final agency decision. Specifically, it argues the trial court erred in concluding there was insufficient credible evidence that petitioner [52]*52caused or permitted the break in the sewer line to occur by failing to maintain or inspect it properly.

Our review of the trial court’s reversal of a final agency decision involves two inquiries: (1) whether the trial court exercised the appropriate standard of review; and (2) whether the trial court properly applied the standard of review. Kea v. Dep’t of Health and Human Servs., 153 N.C. App. 595, 570 S.E.2d 919 (2002), appeal dismissed, 356 N.C. 673, 577 S.E.2d 120 (2003). This Court’s scope of review is the same as that employed by the trial court. Wallace v. Bd. of Trs., 145 N.C. App. 264, 550 S.E.2d 552, disc. review denied, 354 N.C. 580, 559 S.E.2d 553 (2001).

The trial court may reverse or modify an agency’s final decision or adopt the ALJ’s decision

if the substantial rights of the petitioners may have been prejudiced because the agency’s findings, inferences, conclusions, or decisions are:
(1) In violation of constitutional provisions;
(2) In excess of the statutory authority or jurisdiction of the agency;
(3) Made upon unlawful procedure;
(4) Affected by other error of law;
(5) Unsupported by substantial evidence admissible under G.S. 150B-29(a), 150B-30, or 150B-31 in view of the entire record as submitted; or
(6) Arbitrary, capricious, or an abuse of discretion.

N.C. Gen. Stat. § 150B-51(b). Alleged errors of law, including questions of statutory interpretation by the agency, are reviewed de novo by the trial court. Friends of Halteras Island Nat’l Historic Maritime Forest Land Trust for Preservation v. Coastal Resources Comm’n, 117 N.C. App. 556, 452 S.E.2d 337 (1995). Where an allegation is made that a final agency decision is not supported by competent evidence or is arbitrary and capricious, the trial court must review the decision under the whole record test. Walker v. North Carolina Dep’t of Human Resources, 100 N.C. App. 498, 397 S.E.2d 350 (1990), cert. denied, 328 N.C. 98, 402 S.E.2d 430 (1991).

In this case, the petition for judicial review of the EMC’s final agency decision alleged that its findings and conclusions were unsup

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584 S.E.2d 809, 160 N.C. App. 49, 2003 N.C. App. LEXIS 1673, Counsel Stack Legal Research, https://law.counselstack.com/opinion/town-of-wallace-v-north-carolina-department-of-environment-natural-ncctapp-2003.