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 Supreme Court·Decided June 14, 2023·No. 21-084521-088521-0893·Published

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,

v.

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

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.”

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, the mined-out tunnels in the Fairmont Mine Pool are partially or completely flooded with water that mostly drains in from above, and which weeps, seeps and flows from one mine to the next (and, again, through chemical reactions becomes AMD). On the permit application at issue in this case, Ambit claimed the AMD it injects into the Joanne Mine flows east and through the abandoned, mined-out voids of the Bethlehem No. 44 Mine, then through the Bethlehem No. 41 and the Dakota Mines, before arriving at the Jordan Mine. To maintain the water level throughout the Fairmont Mine Pool (partly as a safety measure for individuals working in nearby active underground mines, and partly to ensure that AMD does not accidentally reach the surface), water is pumped out of the Jordan Mine. The water is then delivered to the Dogwood Lakes AMD Plant where the acid and heavy

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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).

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) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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