WildEarth Guardians v. N.M. Env't Improvement Bd.

New Mexico Court of Appeals·Decided December 4, 2023·Unpublished

Opinion

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1 IN THE COURT OF APPEALS OF THE STATE OF NEW MEXICO 2 Opinion Number: _____________ 3 Filing Date: December 4, 2023 4 No. A-1-CA-39522 5 WILDEARTH GUARDIANS, 6 Petitioner-Appellant, 7 v.

8 NEW MEXICO ENVIRONMENTAL 9 IMPROVEMENT BOARD,

10 Respondent-Appellee, 11 and

12 NEW MEXICO ENVIRONMENT 13 DEPARTMENT; XTO ENERGY INC.; 14 and 3 BEAR DELAWARE OPERATING 15 -- NM, LLC; SPUR ENERGY PARTNERS 16 LLC,

17 Intervenors-Appellees.

18 APPEAL FROM THE ENVIRONMENTAL IMPROVEMENT BOARD 19 Phoebe Suina, Board Chair

20 Daniel L. Timmons 21 Samantha Ruscavage-Barz 22 Tim Davis 23 Santa Fe, NM

24 for Appellant 1 Raúl Torrez, Attorney General 2 Karla J. Soloria, Assistant Attorney General 3 Emily Bowen, Assistant Attorney General 4 Santa Fe, NM

5 for Respondent-Appellee

6 Lara Katz, Special Assistant Attorney General 7 Chris Vigil, Assistant General Counsel 8 Santa Fe, NM

9 for Appellee New Mexico Environment Department

10 Montgomery & Andrews, PA 11 Louis W. Rose 12 Kari E. Olson 13 Santa Fe, NM

14 for Appellee XTO Energy Inc.

15 Beatty & Wozniak, P.C. 16 James Martin 17 Santa Fe, NM 18 Jobediah Rittenhouse 19 Chris Colclasure 20 Denver, CO

21 for Appellee 3 Bear Delaware Operating -- NM, LLC

22 Holland & Hart LLP 23 Adam G. Rankin 24 Santa Fe, NM 25 Jill H. Van Noord 26 Boulder, CO 27 Tina R. Van Bockem 28 Denver, CO

29 for Appellee Spur Energy Partners LLC 1 OPINION 2 BUSTAMANTE, Judge, retired, sitting by designation. 3 {1} We are presented with a technically and legally complex direct appeal 4 challenging the New Mexico Environmental Improvement Board’s (the Board) 5 decision to affirm the New Mexico Environment Department’s (the Department) 6 grant of an air quality permit and three 20.2.72.220 NMAC general construction 7 permit registrations. WildEarth Guardians (WildEarth) argues that (1) 8 20.2.72.208(D) NMAC’s requirement that a facility’s emissions not “cause or 9 contribute to” a violation of National Ambient Air Quality Standards (NAAQS) does 10 not allow use of a de minimis standard—commonly called a significant impact level 11 (SIL); (2) the air quality permit and registrations at issue were improperly granted 12 because evidence demonstrates they will cause or contribute to a violation of the 13 NAAQS; and (3) the registrations at issue were improperly granted because they are 14 located in nonattainment areas, pursuant to 20.2.79.7(AA) NMAC (6/3/2011). We 15 conclude the use of a SIL is allowable when determining whether a facility causes 16 or contributes to an increase of the NAAQS, pursuant to 20.2.72.208(D) NMAC, the 17 evidence demonstrates the permit and the registration’s emissions do not cause or 18 contribute to an increase of the NAAQS, and the general construction permit 19 registrations are not located in a nonattainment zone. We affirm the grant of the 20 permits, but remand for redaction of paragraphs 102-105 of the Board’s final order.

1 BACKGROUND 2 {2} This appeal involves ozone emissions. Ozone causes irritation and 3 inflammation in the respiratory system and tissue damage to vegetation. Ozone is 4 beneficial in the stratosphere because it blocks harmful light radiation, but is harmful 5 when it is present in the lower troposphere, where we live and breathe. Ozone is a 6 secondary pollutant, meaning ozone is not emitted on its own, but rather is formed 7 by the chemical reaction between nitrogen oxide (NOx) emissions and volatile 8 organic compounds (VOCs) in sunlight. This makes it difficult and expensive to 9 calculate ozone quantities and to parse out the source of the NOx and VOCs 10 contributing to them. 11 {3} The Clean Air Act’s primary tool to combat pollution relies on National 12 Ambient Air Quality Standards (as previously noted, NAAQS). 42 U.S.C. § 7408(a); 13 42 U.S.C. § 7409(a)(1). NAAQS establish standards for six criteria pollutants, 14 including ozone, which must be met by all the states. 40 C.F.R. pt. 50 (2023). The 15 Clean Air Act is implemented through so-called cooperative federalism—meaning 16 the Federal government sets national standards intended to protect the air, while the 17 states implement those standards. 3 L. of Envtl. Prot. § 29:130 (2023), Westlaw 18 (database updated April 2023). The Clean Air Act is thus administered by the 19 Environmental Protection Agency (the EPA) in coordination with state, local, and 20 tribal governments. Id. New Mexico implements the Clean Air Act through the Air

1 Quality Control Act, NMSA 1978, §§ 74-2-1 to -17 (1967, as amended through 2 2021), 1 and a preconstruction permitting program. The Air Quality Control Act 3 provides two relevant ways to procure air quality control permits, through general 4 construction permits for individual sources, § 74-2-7, and through registrations of 5 individual sources pursuant to 20.2.72.220 NMAC. 6 {4} The Department granted revisions to an air quality construction permit (the 3 7 Bear Permit) to 3 Bear Delaware Operating – NM, LLC (3 Bear), for its Libby Gas 8 Plant (the Libby Plant) in Lea County, New Mexico. The Department also approved 9 three registrations under a 20.2.72.220 NMAC general permit. The registrations 10 were filed under the April 2018 General Construction Permit for Oil and Gas 11 Facilities (the General Permit) by XTO Energy Co. (XTO) for its Corral Canyon 23 12 and Big Eddy Unit DI 38 facilities, and by Spur Energy Partners LLC (Spur) for its 13 Dorami 2H, 4H and 9H Federal Oil Tank Battery (collectively, the Registrations), 14 all of which are located in Eddy County, New Mexico. WildEarth appealed the 15 Department’s approval of the 3 Bear Permit and the Registrations to the Board. The 16 appeals were consolidated in front of the Board. 17 {5} Prior to the online hearing on WildEarth’s appeal, each party filed written 18 direct and rebuttal expert technical testimony. The nine expert witnesses elaborated

All citations throughout this opinion to Sections 74-2-1 to -17 are to the 2019

1

version of the Air Quality Control Act, unless otherwise indicated.

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