United Copper Industries, Inc. and Texas Natural Resource Conservation Commission v. Joe Grissom

Court of Appeals of Texas·Decided February 3, 2000·No. 03-99-00117-CV·Published

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN




NO. 03-99-00117-CV

United Copper Industries, Inc. and Texas Natural Resource

Conservation Commission, Appellants



v.



Joe Grissom, Appellee



FROM THE DISTRICT COURT OF TRAVIS COUNTY, 98TH JUDICIAL DISTRICT

NO. 98-06046, HONORABLE MARGARET COOPER, JUDGE PRESIDING

This is a suit for judicial review of a Texas Natural Resource Conservation Commission (the "TNRCC" or "Commission") order granting an air quality permit application submitted by United Copper Industries, Inc. ("United Copper") and denying Joe Grissom's request for an adjudicative hearing on whether the permit should be granted. Upon judicial review of the decision, the district court reversed the Commission's order and remanded the cause to the Commission for further proceedings. United Copper and the Commission appeal the district court's judgment, citing three independent grounds for reversal. We will reverse the judgment of the district court and affirm the final decision of the Commission.

BACKGROUND

In 1997, United Copper applied to the Commission for a permit to construct and operate two copper melting furnaces in Denton, Texas. See Tex. Health & Safety Code Ann. § 382.0518 (West Supp. 2000). United Copper intended to use these facilities to produce commercial grade copper rod that would be used to manufacture electrical wire and cable. In its application, United Copper identified the types of emissions the furnaces would release into the environment--primarily copper and lead particulate matter--and attached the results of an "air dispersion computer model" indicating the maximum ground-level concentrations of the contaminants that it predicted would result from its operations. After considering the application and the attached research data, the TNRCC determined that the proposed facilities would not have any negative impact on the health or property interests of the public in the surrounding area, a finding that is necessary before the TNRCC may issue an air quality permit. See id. § 382.0518(b); 30 Tex. Admin. Code § 116.111 (2)(A)(i) (1999). United Copper then alerted the public of its permit application by publishing a notice in a local newspaper and posting signs around the proposed construction site as required by statute. See Tex. Health & Safety Code Ann. § 382.056.

Shortly thereafter, Grissom, who lived about two miles from the proposed facilities, sent a letter to the TNRCC requesting a public hearing on United Copper's permit application. (1) In his written hearing request, Grissom expressed his concern about the negative effects he anticipated the facilities would have on his health, as well as the health of his two sons, both of whom suffer from serious asthmatic conditions. In response to Grissom's letter, United Copper and the Commission's executive director filed written replies urging the Commission to deny Grissom's request for a hearing. See 30 Tex. Admin. Code § 55.26(e) (1999) (permitting TNRCC director, Office of Public Interest Council, and permit applicant to submit written responses to hearing requests). Grissom was served with copies of both responses. United Copper maintained in its response that Grissom's request should be denied because: (1) Grissom was not an "affected person" entitled to a contested-case hearing, (2) the hearing request was "unreasonable," and (3) Grissom failed to present any competent evidence in support of his request. The Commission's director, on the other hand, contended in his response that although Grissom was an "affected person" based on the factors set forth in the agency's rules, Grissom's request nevertheless should be denied solely on the ground that it was "unreasonable." He argued that it was unreasonable because the uncontroverted evidence submitted with United Copper's application established that the emissions would probably not negatively impact Grissom, his family, or any other members of the public.

Grissom did not reply to either of the responses filed by United Copper and the Commission's director, despite notice from the Commission that he was permitted to do so. Apart from the hearing request itself, the only item filed in support of Grissom's request was a report issued by the Office of Public Interest Council ("OPIC"), a division of the Commission that assists those challenging the denial of a permit application or hearing request. Citing its concern for procedural fairness, OPIC recommended that the TNRCC grant Grissom's request. OPIC reasoned that if the Commission were to deny his request, Grissom would be denied fair process because he would be refused an opportunity to prove the merits of his case on the basis of evidence that he had not been given a fair opportunity to refute.

The Commission gave Grissom and United Copper one month's notice of the public meeting scheduled to evaluate and act on Grissom's hearing request. After reviewing Grissom's request and OPIC's response, along with the responses filed by United Copper and the Commission's director, the Commission issued a decision at the scheduled meeting in which it denied Grissom's hearing request after concluding that he had not met the requirements set out in the Commission's rules; it also granted the air quality permit United Copper needed in order to construct and operate the furnaces.

Grissom proceeded to file suit in district court, seeking judicial review of the Commission's decision. (2) Grissom contended that he was entitled to a public hearing where he would have an opportunity to offer competent evidence in support of his request. The TNRCC responded with a general denial, and United Copper intervened to protect its interest in the permit it had been granted. The district court ultimately agreed with Grissom and decided that the Commission erred in determining that the hearing request was not supported by competent evidence without first providing Grissom an opportunity to present evidence at an adjudicative hearing. In its final judgment, the district court reversed the TNRCC's order and remanded the cause to the Commission for an adjudicative hearing to give Grissom an opportunity to present competent evidence in support of his request.

United Copper and the Commission now appeal the district court's final judgment, maintaining that the Commission properly denied the hearing request because: (1) Grissom was not an "affected person" entitled to a contested-case hearing, (2) the hearing request was "unreasonable," and (3) Grissom failed to present any competent evidence in support of his request.



STANDARD OF REVIEW

Grissom filed his request for a contested-case hearing in response to the air quality permit application United Copper submitted in accordance with the Texas Clean Air Act. See Tex. Health & Safety Code Ann. §§ 382.001-.143 (West 1992 & Supp. 2000). Authority to sue the Commission under the Act is found in section 382.032(a) (West Supp. 2000), which provides that "[a] person affected by a ruling, order, decision, or other act of the commission or of the executive director . . .

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United Copper Industries, Inc. and Texas Natural Resource Conservation Commission v. Joe Grissom, (Tex. Ct. App. 2000).

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