West Virginia Land Resources, Inc. and Marion County Coal Resources, Inc. v. American Bituminous Power partners, L.P., a Delaware limited partnership v. West Virginia Land Resources, Inc., Marion County Coal Resources, INC., and West Virginia Environmental Quality Board and American Bituminous Power partners, L.P., a Delaware limited partnership v. West Virginia Land Resources, Inc., Marion County Coal Resources, INC., and West Virginia Environmental Quality Board

CourtWest Virginia Supreme Court
DecidedJune 14, 2023
Docket21-084521-088521-0893
StatusPublished

This text of West Virginia Land Resources, Inc. and Marion County Coal Resources, Inc. v. American Bituminous Power partners, L.P., a Delaware limited partnership v. West Virginia Land Resources, Inc., Marion County Coal Resources, INC., and West Virginia Environmental Quality Board and American Bituminous Power partners, L.P., a Delaware limited partnership v. West Virginia Land Resources, Inc., Marion County Coal Resources, INC., and West Virginia Environmental Quality Board (West Virginia Land Resources, Inc. and Marion County Coal Resources, Inc. v. American Bituminous Power partners, L.P., a Delaware limited partnership v. West Virginia Land Resources, Inc., Marion County Coal Resources, INC., and West Virginia Environmental Quality Board and American Bituminous Power partners, L.P., a Delaware limited partnership v. West Virginia Land Resources, Inc., Marion County Coal Resources, INC., and West Virginia Environmental Quality Board) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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West Virginia Land Resources, Inc. and Marion County Coal Resources, Inc. v. American Bituminous Power partners, L.P., a Delaware limited partnership v. West Virginia Land Resources, Inc., Marion County Coal Resources, INC., and West Virginia Environmental Quality Board and American Bituminous Power partners, L.P., a Delaware limited partnership v. West Virginia Land Resources, Inc., Marion County Coal Resources, INC., and West Virginia Environmental Quality Board, (W. Va. 2023).

Opinion

IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA FILED January 2023 Term _______________ June 14, 2023 released at 3:00 p.m. EDYTHE NASH GAISER, CLERK No. 21-0845 SUPREME COURT OF APPEALS

_______________ OF WEST VIRGINIA

WEST VIRGINIA LAND RESOURCES, INC., and MARION COUNTY COAL RESOURCES, INC., Petitioners,

v.

AMERICAN BITUMINOUS POWER PARTNERS, LP, WEST VIRGINIA DEPARTMENT OF ENVIRONMENTAL PROTECTION, and WEST VIRGINIA ENVIRONMENTAL QUALITY BOARD, Respondents.

AND _______________

Nos. 21-0885 and 21-0893 _______________

AMERICAN BITUMINOUS POWER PARTNERS, L.P., a Delaware limited partnership, Petitioner,

WEST VIRGINIA LAND RESOURCES, INC., MARION COUNTY COAL RESOURCES, INC., and WEST VIRGINIA ENVIRONMENTAL QUALITY BOARD, Respondents.

________________________________________________________

Appeals from the West Virginia Environmental Quality Board, Appeal No. 20-07-EQB

AFFIRMED ________________________________________________________ Submitted: January 11, 2023 Filed: June 14, 2023

Christopher B. Power, Esq. Roberta F. Green, Esq. Robert M. Stonestreet, Esq. Christopher D. Negley, Esq. Babst Calland Clements and Zomnir, PC Shuman McCuskey Slicer PLLC Charleston, West Virginia Charleston, West Virginia Counsel for West Virginia Land Counsel for American Bituminous Power Resources, Inc., and Marion County Coal Partners, LP Resources, Inc.

Jeffrey O. Dye, II, Esq. Office of Legal Services Charleston, West Virginia Counsel for Respondent West Virginia Department of Environmental Protection

JUSTICE HUTCHISON delivered the Opinion of the Court.

JUSTICE BUNN, deeming herself disqualified, did not participate in the Decision of the Court.

JUDGE MARYCLAIRE AKERS, sitting by temporary assignment. SYLLABUS BY THE COURT

1. West Virginia Code § 22B-1-9(a) (2018) requires a court to review an

order of the Environmental Quality Board pursuant to the provisions of West Virginia Code

§ 29A-5-4(g) (2021) of the West Virginia Administrative Procedures Act. Under the Act,

a court reviewing an order by the Environmental Quality Board may affirm the order or

may remand the case for further proceedings. However, the court must reverse, vacate or

modify the order or decision of the Board if the substantial rights of the petitioner or

petitioners have been prejudiced because the Board’s findings, inferences, conclusions,

decisions and/or order are: (1) In violation of constitutional or statutory provisions; (2) In

excess of the statutory authority or jurisdiction of the agency; (3) Made upon unlawful

procedures; (4) Affected by other error of law; (5) Clearly wrong in view of the reliable,

probative, and substantial evidence on the whole record; or (6) Arbitrary or capricious or

characterized by an abuse of discretion or a clearly unwarranted exercise of discretion.

2. “The ‘clearly wrong’ and the ‘arbitrary and capricious’ standards of

review are deferential ones which presume an agency’s actions are valid as long as the

decision is supported by substantial evidence or by a rational basis.” Syl. Pt. 3, In re Queen,

196 W. Va. 442, 473 S.E.2d 483 (1996).

3. “In the absence of any definition of the intended meaning of words or

terms used in a legislative enactment, they will, in the interpretation of the act, be given

their common, ordinary and accepted meaning in the connection in which they are used.”

i Syl. Pt. 1, Miners in General Group v. Hix, 123 W.Va. 637, 17 S.E.2d 810 (1941),

overruled, in part, on other grounds by Lee–Norse Co. v. Rutledge, 170 W.Va. 162, 291

S.E.2d 477 (1982).

4. Under West Virginia Code § 22-11-21 (1994), a person is “adversely

affected” by a decision or “aggrieved” by the terms or conditions of a permit when the

person shows some legal right or interest that is influenced, by either the decision or the

terms and conditions of the permit, in an articulable way that is harmful or contrary to the

person’s right or interest.

ii HUTCHISON, Justice:

This appeal concerns an “Underground Injection Control Permit” issued to

American Bituminous Power Partners, L.P. (“Ambit”) that allows Ambit to pump or

“inject” acid mine drainage into an abandoned underground mine. Several subsidiaries of

a mining company, American Consolidated Natural Resources, Inc. (“ACNR”), challenged

the permit because those subsidiaries would eventually have to pump that drainage out of

the nearby mines that they operate and treat it at their own expense.

The Environmental Quality Board (“the EQB”) considered the challenge by

ACNR’s subsidiaries and issued a decision which modified Ambit’s permit and reduced

the amount of drainage that Ambit was allowed to inject into the abandoned mine. Ambit

and ACNR both appeal that decision. After our review of the record, we conclude that the

EQB acted within its discretion when it modified the permit. Accordingly, as we discuss

below, we affirm the EQB’s decision.

I. Factual and Procedural Background

A. The Conflict Between the Parties

Ambit operates a small electricity-generating plant in Marion County, West

Virginia that is designed to burn “waste coal.” Waste coal consists of lower quality coal

mixed with rock and dirt that mining companies separated from the marketable “clean coal”

sold to customers. During the last century, waste coal was dumped in mounds (called “gob

1 piles”) that now sit on the surface around abandoned underground coal mines. The Ambit

plant was developed to consume the waste coal from abandoned mine sites near its plant.

Ambit has a long-term lease to a parcel of land in Marion County, 1 about 80

acres in size, that overlies the abandoned Joanne Mine. When Ambit signed the lease, it

intended to fuel its plant with the gob piles of waste coal scattered on the surface of the

Joanne parcel. However, because of the high ash and sulfur content of the waste coal,

Ambit later learned it would be unable to use it as fuel.

Unfortunately for Ambit, rain, snow, and surface water percolates through

the gob piles on the Joanne parcel. Through chemical reactions, the water becomes highly

acidic and rich in heavy metals, and it takes on a new title: acid mine drainage (or “AMD”). 2

Ambit’s lease requires it to control the AMD created on the Joanne parcel. Ambit’s

solution is to collect and then inject the untreated AMD down a well bore and into the voids

of the abandoned Joanne Mine beneath the parcel.

1 Ambit leases the Joanne parcel from Horizon Ventures. See Horizon Ventures of W. Va., Inc. v. Am. Bituminous Power Partners, L.P., 246 W. Va. 374, 873 S.E.2d 905 (2022) (discussing how Ambit’s rent is calculated according to whether Ambit’s power plant is fueled with waste coal on certain lands leased from Horizon Ventures or fueled with coal from other sources).

On the permit application at issue in this case, Ambit stated that water 2

samples at the Joanne parcel “display AMD characteristics including elevated readings of iron, manganese, conductivity and total dissolved solids.”

2 The Joanne Mine is part of a large network of interconnected, mined-out

voids beneath Marion County. These voids, carved through the Pittsburgh coal seam in

years past by coal miners, are known as the “Fairmont Mine Pool.” As the name suggests,

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Lee-Norse Co. v. Rutledge
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West Virginia Land Resources, Inc. and Marion County Coal Resources, Inc. v. American Bituminous Power partners, L.P., a Delaware limited partnership v. West Virginia Land Resources, Inc., Marion County Coal Resources, INC., and West Virginia Environmental Quality Board and American Bituminous Power partners, L.P., a Delaware limited partnership v. West Virginia Land Resources, Inc., Marion County Coal Resources, INC., and West Virginia Environmental Quality Board, Counsel Stack Legal Research, https://law.counselstack.com/opinion/west-virginia-land-resources-inc-and-marion-county-coal-resources-inc-wva-2023.