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All opinions are subject to modification and technical correction prior to official publication in the North Carolina Reports and North Carolina Court of Appeals Reports. In the event of discrepancies between the electronic version of an opinion and the
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CLARK STONE COMPANY, INC., Petitioner, v. N.C. DEPARTMENT OF
ENVIRONMENT & NATURAL RESOURCES, DIV. OF LAND RESOURCES and NORTH
CAROLINA MINING COMMISSION, Respondents, APPALACHIAN TRAIL
CONFERENCE NATIONAL PARKS CONSERVATION ASSOCIATION;
UNINCORPORATED ASSOCIATION OF CITIZENS TO PROTECT BELVIEW
MOUNTAIN; OLLIE COX; AND FAYE WILLIAMS, Respondent/Intervenors
NO. COA03-526
Filed: 4 May 2004
1. Administrative Law_judicial review_standard of review
The trial court appropriately used the whole record test for assertions that the revocation
of a mining permit was unsupported by the evidence and de novo review for assertions that the
decision was in excess of authority and made upon unlawful procedure. The contested case
petition in this case was filed before the effective date of N.C.G.S. § 150B-51(c).
2. Mining and Minerals_revocation of mining permit_application of whole record
test_evidence supporting findings
The trial court erred in its application of the whole record test when reversing an agency
decision to revoke a mining permit. Contrary to the trial court's conclusion, the findings made
by the agency in revoking the permit were supported by substantial, uncontroverted evidence that
the mining operation had a significant adverse impact on the Appalachian Trail, a publically
owned and federally designated National Scenic Trail.
3. Mining and Minerals
_revocation of mining permit_authority
The trial court erred by determining that the Department of Environment and Natural
Resources lacked authority to revoke a mining permit based on a finding that the mine operation
had a significant impact on the Appalachian Trial, a publically owned and federally designated
National Scenic Trail. An operation violates the Mining Act when it adversely affects the
purposes of a publicly owned park, forest, or recreation area to a significant degree. N.C.G.S. §§
74-51(d)(7), 74-58.
4. Mining and Minerals
_revocation of mining permit_procedure
The trial court erred by concluding that a mining permit was revoked upon improper
procedure; DENR could have modified the permit had it so chosen, but there was no obligation
to do so. N.C.G.S. §§ 74-57, 74-58(a).
5. Mining and Minerals_revocation of mining permit_violation of permit terms_willful
The trial court erred by concluding that a mining permit could not be revoked because any
violation of the Mining Act was not willful. Petitioner took inadequate steps to properly and
effectively address the violation after being put on notice and despite guidance from DENR.
That failure cannot be deemed anything other than willful.
6. Mining and Minerals
_vested rights_revocation of mining permit_permit mistakenly
granted
The doctrine of vested rights did not protect a mining permit where the permit was
mistakenly issued in violation of an existing statute. Permits mistakenly issued do not create avested right; moreover, the vested rights doctrine arises from a validly issued permit, while this
permit's validity has been specifically and consistently challenged.
Appeal by respondents and respondent/intervenors from order
entered 31 December 2002 by Judge Stafford G. Bullock in Superior
Court, Wake County. Heard in the Court of Appeals 24 February
2004.
Hatch, Little & Bunn, L.L.P., by Harold W. Berry, Jr., A.
Bartlett White, and Tina L. Frazier, for petitioner appellee.
Attorney General Roy Cooper, by Senior Deputy Attorney General
James C. Gulick and Assistant Attorney General Jennie Wilhelm
Mau, for respondent appellants.
Southern Environmental Law Center, by Donnell Van Noppen, III,
and Sierra B. Weaver, for respondent/intervenor appellants
Appalachian Trail Conference and National Parks Conservation
Association, and Sigmon, Clark, Mackie, Hutton, Hanvey &
Ferrell, P.A., by Forrest A. Ferrell, for
respondent/intervenor appellants Association of Unincorporated
Citizens to Protect Belview Mountain, Ollie Cox, and Faye
Williams.
WYNN, Judge.
The North Carolina Department of Environment and Natural
Resources (DENR) and the North Carolina Mining Commission
(collectively hereinafter Respondents), together with the
Appalachian Trail Conference, the National Parks Conservation
Association, the Unincorporated Association of Citizens to Protect
Belview Mountain, Ollie Cox and Faye Williams (collectively
hereinafter Respondent-Intervenors) appeal from an order of the
trial court reversing a final agency decision by the North Carolina
Mining Commission (the Commission). In its final agency
decision, the Commission upheld the revocation of a mining permit
issued by DENR to Clark Stone Company, Inc. (Petitioner). Thereafter, the trial court reversed the decision of the
Commission.
On appeal to this Court, Respondents and Respondent-
Intervenors contend the trial court erred by (I) reversing the
decision of the Commission upholding the revocation of Petitioner's
permit; (II) concluding that the revocation was not made upon
proper procedure; (III) concluding that revocation was improper
because it was not willful; and (IV) concluding that the doctrine
of vested rights prohibited revocation of Petitioner's permit. For
the reasons stated herein, we reverse the decision of the trial
court.
The pertinent procedural and factual history of the instant
appeal is as follows: Petitioner filed a petition for a contested
case hearing in the Office of Administrative Hearings on 10 October
2000. The administrative law judge reviewing the matter thereafter
allowed two private, non-profit groups, the Appalachian Trail
Conference and the National Parks Conservation Association,
together with the Unincorporated Association of Citizens to Protect
Belview Mountain, and neighboring land owners Ollie Cox and Faye
Williams to intervene in the case. Petitioner filed a motion for
summary judgment, contending there were no genuine issues of
material fact and that it was entitled to judgment as a matter of
law.
On 9 April 2001, the administrative law judge held a hearing
pursuant to Petitioner's motion for summary judgment. The evidence
presented at the hearing tended to show the following: In February
of 1999, Petitioner applied to DENR for a mining permit to conductmining operations on land in Avery County, North Carolina. DENR
reviewed Petitioner's application and issued a mining permit on 13
May 1999. Petitioner subsequently began preparing the land for
mining operations. At the time DENR issued the mining permit,
neither DENR nor Petitioner were aware that the mining operation
was within visual and audible range of the Appalachian Trail, a
publicly owned and federally designated National Scenic Trail.
On 10 February 2000, Jay Leutze, a resident of the area near
the mining site and a member of the Unincorporated Association of
Citizens to Protect Belview Mountain, contacted Charles Gardner,
the Director of the Division of Land Resources within DENR. Leutze
informed Gardner of his concerns about Petitioner's mining
operation and its potential impact on the Appalachian Trail. After
learning of the mining operation's proximity to the Appalachian
Trail, DENR initiated an investigation. Gardner traveled to the
area on several occasions to view the mining site from the
Appalachian Trail. Gardner testified that the mining operation was
clearly visible in good weather from [the Appalachian Trail] and
particularly the portion of the [T]rail that goes down Hump
Mountain toward the quarry. DENR also hired landscape and
acoustical consultants to assess the situation. The site analysis
submitted by the landscape architect reported that [t]he Mine Site
is visible from a substantial section of the [T]rail along Hump
Mountain for a duration of approximately 20-25 minutes walking
time. . . . The distance between the [T]rail at Hump Mountain and
the mine site is approximately 2 miles. The analysis further
found that the visual prominence of the mine site as viewed fromLittle Hump Mountain appears almost equal in magnitude to that
viewed from Hump Mountain. The distance between the Trail on
Little Hump Mountain and the mining site is three miles. The
analysis report noted that [b]ased on the relationship of the
Appalachian Trail to the Mine and the magnitude of the Phase I
quarry operations, it would be difficult to meet federal land
management plan criteria for national forest properties.
Kathy Ludlow, a landscape architect and recreation analyst for
the U.S. Forest Service, also prepared a scenery analysis of the
mining operation. Ludlow testified that the view from [that
portion of the Trail on] Hump Mountain is an outstanding 360-degree
panorama with a very natural-appearing landscape. Ludlow
characterized the Hump Mountain site as an important viewing
location given the large number of persons using that portion of
the Appalachian Trail who have high expectations for viewing
natural-appearing scenery and attractive scenery. Further
findings by Ludlow in her analysis included the following: (1) the
proximity of the mining operation to the Appalachian Trail is less
than three miles; (2) the duration of the direct view of the mining
operation while walking along the Appalachian Trail on Hump
Mountain is approximately twenty-five minutes; (3) the high quality
of the view from Hump Mountain increases the duration of time spent
by visitors at that particular portion of the Trail; and (4) the
view of the mining site from the Appalachian Trail is very clear
in good weather.
Dr. Noral D. Stewart, an acoustical consultant, provided an
acoustical assessment of the impact of the mining operation on theAppalachian Trail. In his report, Dr. Stewart noted that [t]he
[T]rail location of primary concern is particularly unique. It is
one of the few locations where there is a long unobstructed view
from the [T]rail for a long walking distance along the [T]rail.
Further, the quiet mountain environment makes control of noise
particularly difficult and means it is easier to hear a distant
source. The report concluded that the mining site's primary jaw-
crusher is the major noise problem and would be noticed by and
would likely be a major irritant to any hearing person walking the
[T]rail.
On 28 February 2000, Gardner informed Paul Brown, president
and stockholder of Petitioner company, that DENR would hold a
public meeting concerning the mine. Approximately one hundred and
fifty people attended the public hearing held on 16 March 2000.
Petitioner presented information on its mining site and its effects
on the Trail. Approximately thirty-one persons spoke on the
subject of the mine, most in opposition thereto.
Over the next several weeks, DENR and Petitioner discussed
proposed modifications to the mining permit conditions to mitigate
the impact of the mine on the Appalachian Trail. On 19 April 2000,
DENR sent Petitioner a notice of its intent to revoke the mining
permit unless an appropriate resolution of the problem could be
found. DENR also advised Petitioner of its statutory right to an
informal conference to discuss the matter. The informal conference
was held 22 May 2000. During the conference, DENR requested that
Petitioner submit a modification proposal, including a landscaping
plan addressing the visual and acoustical impact of the miningoperation on the Appalachian Trail.
Petitioner thereafter submitted proposed permit modifications
and a landscape plan. Landscape architects in DENR's Division of
Parks and Recreation reviewed the proposed landscape plan and
determined that little professional work [had] gone into [its]
preparation. According to the architects, the proposed plan
lacked the requisites of [a] comprehensive planting plan in that
there was no mention of soil preparation, species identification,
design details, planting techniques, irrigation or general plant
maintenance. Although the plan showed a protective/visual
screening buffer, it contained no descriptive engineering or
landscape data. Finally, the plan failed to develop line-of-
sight profiling between the quarry and surrounding viewpoints . . .
to determine effective locations and heights of visual screens.
They recommended that Petitioner submit a plan that has been
prepared by a professional landscape architectural firm which would
have the expertise to do a comprehensive assessment of the visual
impacts of [the mine] and determine what, if any, plantings or
other landscape techniques would effectively mitigate those
impacts.
Gardner informed Petitioner that its proposed landscape plan
was inadequate and invited Petitioner to propose additional
modifications by 4 August 2000. Gardner gave Petitioner a copy of
the concerns and recommendations articulated by DENR's landscape
architects. Petitioner requested an extension of time to submit a
revised plan, stating that the landscape architect engaged by it
was unable to do the work. DENR extended the deadline to 25 August2000, at which time Petitioner submitted a one-page document
entitled Supplemental Proposed Permit Modifications. The document
was not prepared by a professional landscape architect and did not
address the concerns raised by DENR's landscape architects. Four
days later, DENR held a second public meeting to receive public
comment on Petitioner's proposed modifications.
On 6 September 2000, DENR revoked Petitioner's permit on the
grounds that the operation had a significantly adverse effect on
the Appalachian Trail in violation of the Mining Act. In its
notice of revocation, DENR concluded that Petitioner's violation
was willful, in that the mine was so located and its
operation . . . so designed that its ordinary operation as intended
has had and would continue to have significant adverse effects,
both visual and acoustical, on the purposes of the [Appalachian]
Trail.
After reviewing the evidence submitted by the parties, the
administrative law judge issued a recommended decision in favor of
Petitioner's motion for summary judgment, concluding that DENR
improperly revoked Petitioner's permit. The administrative law
judge determined that, although DENR could properly deny an
application for a mining permit if it found that the proposed
operation would have a significantly adverse effect on a publicly
owned park, forest or recreation area, it had no authority under
the applicable statutes to revoke a permit on such grounds.
The matter came before the Mining Commission on 17 October
2001 for final agency decision. The Commission rejected the
recommended decision of the administrative law judge, concludingthat
[i]n order to satisfy the agency's duty to
uphold the Mining Act and the intent behind
that statute, it is necessary for [DENR] to
have the power to revoke the permit even after
it was initially granted where the significant
adverse effect created by the Mine did not
become apparent to [DENR] until after the
permit had been granted. To decide otherwise
would render the permitting system
contemplated by the Mining Act impotent, and
would allow a permittee to escape regulation
under the Act where new facts are discovered
or conditions are changed.
Petitioner filed a petition for judicial review, which came before
the trial court on 30 October 2002. The trial court reversed the
Commission on the grounds that the decision upholding revocation of
Petitioner's permit (1) violated Petitioner's constitutional
rights; (2) exceeded DENR's statutory authority; (3) was made
pursuant to unlawful procedure; (4) was affected by error of law;
(5) was unsupported by substantial evidence in the whole record;
and (6) was arbitrary and capricious. Respondents and Respondent-
Intervenors appealed.
______________________________________________________
Respondents and Respondent-Intervenors contend the trial court
erred in (I) applying the whole record test and determining that
the Mining Commission's decision was unsupported by substantial
evidence; (II) concluding that DENR lacked authority under the
General Statutes to revoke Petitioner's permit; (III) concluding
that the revocation was made upon improper procedure; (IV)
concluding that revocation was improper because it was not willful;
and (V) concluding that the doctrine of vested rights prohibited
revocation of Petitioner's permit. We determine first whether thetrial court applied the appropriate standard of review; thereafter,
we address these arguments in turn.
Standard of Review
[1] We review the trial court's reversal of a final agency
decision to determine (1) whether the trial court exercised the
appropriate standard of review; and (2) whether the trial court
properly applied the standard of review.
Town of Wallace v. N.C.
Dep't of Env't & Natural Res., 160 N.C. App. 49, 52, 584 S.E.2d
809, 812-13 (2003). Our scope of review is the same as that
employed by the trial court.
Id. at 52, 584 S.E.2d at 812. Under
the General Statutes, the trial court may reverse or modify an
agency's final decision if the substantial rights of the
petitioners 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 in view of the entire record as submitted; or (6)
arbitrary, capricious, or an abuse of discretion.
See N.C. Gen.
Stat. § 150B-51(b) (2001);
County of Wake v. N.C. Dep't of Env't &
Natural Res., 155 N.C. App. 225, 233, 573 S.E.2d 572, 579 (2002),
disc. review denied, 357 N.C. 62, 579 S.E.2d 387 (2003). Alleged
errors of law, including questions of statutory interpretation by
the agency, are reviewed
de novo by the trial court.
See N.C. Gen.
Stat. § 150B-51(c) (2001);
Friends of Hatteras Island v. Coastal
Resources Comm., 117 N.C. App. 556, 567, 452 S.E.2d 337, 344
(1995). Where an allegation is made that a final agency decisionis not supported by competent evidence or is arbitrary and
capricious, the trial court must review the decision under the
whole record test.
See N.C. Gen. Stat. § 150B-51(b)(5) (2001);
Walker v. N.C. Dept. of Human Resources, 100 N.C. App. 498, 502,
397 S.E.2d 350, 354 (1990),
disc. review denied, 328 N.C. 98, 402
S.E.2d 430 (1991). The whole record test requires the trial court
to examine all of the evidence before the agency in order to
determine whether the decision has a rational basis in the
evidence.
Town of Wallace, 160 N.C. App. at 54, 584 S.E.2d at 813.
If the trial court concludes there is substantial competent
evidence in the record to support the findings, the agency decision
must stand.
Little v. Board of Dental Examiners, 64 N.C. App. 67,
69, 306 S.E.2d 534, 536 (1983). The trial court may not weigh the
evidence presented to the agency or substitute its own judgment for
that of the agency.
King v. N.C. Environmental Mgmt. Comm., 112
N.C. App. 813, 817-18, 436 S.E.2d 865, 868 (1993).
(See footnote 1)
According to the trial court in the instant case, it reviewed
de novo Petitioner's assertions that the final agency decision was
in excess of statutory authority and made upon unlawful procedure,
erroneous, and in excess of constitutional protections. The trial
court applied the whole record test to Petitioner's assertions that
the final agency decision was unsupported by substantial evidenceand was arbitrary and capricious. These being the appropriate
standards of review, we now must determine whether the trial court
properly applied the standards.
I. Whole Record Test
[2] Respondents and Respondent-Intervenors first argue the
trial court erred in applying the whole record test and determining
that the Commission's decision was unsupported by substantial
evidence on the grounds that there was no evidence heard on the
issue of 'adverse effect' and no finding was made that [the mine]
would constitute an 'adverse effect' on the Appalachian Trail. We
agree that the trial court erred in applying the whole record test.
In the instant case, most of the findings made by the
Commission were based on facts agreed upon and stipulated to by the
parties. Contrary to the trial court's conclusion, Respondents
presented substantial evidence that Petitioner's mining operations
had a significant adverse impact on the Appalachian Trail. Gardner
testified that the visibility of the mining site from that portion
of the Trail on Hump Mountain had a significant adverse impact on
the [T]rail. The three analyses submitted by the consultants
hired by DENR reported in detail the negative visual and acoustical
impact of the mining site on the Appalachian Trail. The evidence
submitted consistently demonstrated that the mining operation has
a significantly adverse impact on the purposes of the Appalachian
Trail. Petitioner submitted no evidence to the contrary; indeed,
whether the mine has an adverse impact on the Appalachian Trail
does not appear to have been an issue of true dispute between the
parties. In its motion for summary judgment, Petitioner contendedDENR lacked authority to revoke the permit under the Mining Act,
but made no argument concerning adverse impact. Because the
findings by the agency were supported by substantial,
uncontroverted evidence, the trial court erred in reversing the
decision on the ground that it was unsupported by the evidence.
II. Authority to Revoke a Permit Under the Mining Act
[3] Respondents contend the trial court erred in concluding
that DENR lacked authority under the General Statutes to revoke
Petitioner's permit. DENR revoked Petitioner's mining permit
pursuant to the Mining Act of 1971, N.C. Gen. Stat. §§ 74-46
et
seq. We therefore examine the relevant language and stated purpose
of the Mining Act to determine DENR's authority under its
provisions.
No mining may occur in the State unless pursuant to a valid
operating permit issued by DENR.
See N.C. Gen. Stat. § 74-50(a)
(2003).
The Mining Act clearly declares that [DENR] is
vested with the authority to decide who will
be granted mining permits in North Carolina.
[DENR] also has the authority to condition a
party's ability to mine on compliance with
various requirements, and in doing so must
attempt to protect the surrounding environment
from potential hazards caused by specific
projects.
Martin Marietta Technologies v. Brunswick County, 126 N.C. App.
806, 810, 487 S.E.2d 145, 147 (1997),
reversed on other grounds,
348 N.C. 688, 500 S.E.2d 665 (1998).
DENR is authorized to deny an application for a mining
operation permit upon finding:
(1) That any requirement of [the Mining Act]
or any rule promulgated hereunder will beviolated by the proposed operation;
(2) That the operation will have unduly
adverse effects on potable groundwater
supplies, wildlife, or fresh water, estuarine,
or marine fisheries;
(3) That the operation will violate standards
of air quality, surface water quality, or
groundwater quality that have been promulgated
by [DENR];
(4) That the operation will constitute a
direct and substantial physical hazard to
public health and safety or to a neighboring
dwelling house, school, church, hospital,
commercial or industrial building, public road
or other public property, excluding matters
relating to use of a public road;
(5) That the operation will have a
significantly adverse effect on the purposes
of a publicly owned park, forest or recreation
area;
(6) That previous experience with similar
operations indicates a substantial possibility
that the operation will result in substantial
deposits of sediment in stream beds or lakes,
landslides, or acid water pollution; or
(7) That the applicant or any parent,
subsidiary, or other affiliate of the
applicant or parent has not been in
substantial compliance with [the Mining Act],
rules adopted under [the Mining Act], or other
laws or rules of this State for the protection
of the environment or has not corrected all
violations that the applicant or any parent,
subsidiary, or other affiliate of the
applicant or parent may have committed under
[the Mining Act] or rules adopted under [the
Mining Act] and that resulted in:
a. Revocation of a permit,
b. Forfeiture of part or all of a bond or
other security,
c. Conviction of a misdemeanor under G.S.
74-64,
d. Any other court order issued under
G.S. 74-64, or
e. Final assessment of a civil penalty
under G.S. 74-64.
N.C. Gen. Stat. § 74-51(d) (2003). Once issued, all permits are
expressly conditioned upon . . . any . . . reasonable and
appropriate requirements and safeguards that [DENR] determines are
necessary to assure that the operation will comply fully with the
requirements and objectives of [the Mining Act]. N.C. Gen. Stat.
§ 74-51(f) (2003). For example, DENR may require an operator to
install visual screening, vegetative or otherwise, so as to screen
the view of the operation from public highways, public parks, or
residential areas, where [DENR] finds screening to be feasible and
desirable.
Id. If at any time after issuance of a permit, DENR
determines that the mining activities under the permit are failing
to achieve the purposes and requirements of [the Mining Act], DENR
may modify the terms and conditions of the permit as it deems
appropriate. N.C. Gen. Stat. § 74-57 (2003). In doing so, DENR
must give written notice to the operator of its intent to modify
the permit, and inform the operator of the right to a hearing on
the proposed modification.
See id.
Whenever DENR has reason to believe that a mining operation
violates (1) the Mining Act, (2) any rules adopted under the Mining
Act, or (3) the terms and conditions of a permit, it shall serve
written notice of the apparent violation upon the operator,
specifying the facts constituting the apparent violation and
informing the operator of the operator's right to an informal
conference with [DENR]. N.C. Gen. Stat. § 74-58(a) (2003). If
the operator fails to appear at the informal conference, or if DENRfollowing the informal conference finds there has been a violation,
DENR may suspend the permit until the violation is corrected or
may revoke the permit where the violation appears to be willful.
Id.
In the instant case, after issuing a mining permit to
Petitioner, DENR determined that Petitioner's mining operation
violated the Mining Act, in that it had a significant adverse
effect on the purposes of the Appalachian Trail.
(See footnote 2)
The trial court
determined DENR lacked authority to revoke Petitioner's permit.
The trial court reasoned that the grounds for denying a permit
listed in section 74-51 of the General Statutes did not constitute
violations of the Mining Act, and so concluded that, although DENR
found the mining operation to have a significantly adverse effect
on the Appalachian Trail, such a finding only supported initial
denial of a permit and could not serve as a basis for revocation.
We disagree with the trial court's interpretation of the Mining
Act.
It is the function of the judiciary to construe a statute when
the meaning of a statute is in doubt.
Sunscript Pharmacy Corp. v.
N.C. Bd. of Pharmacy, 147 N.C. App. 446, 452, 555 S.E.2d 629, 633
(2001),
disc. review denied, 355 N.C. 292, 561 S.E.2d 506 (2002).
In construing the laws creating and empowering
administrative agencies, as in any area of
law, the primary function of a court is toensure that the purpose of the Legislature in
enacting the law, sometimes referred to as
legislative intent, is accomplished. The best
indicia of that legislative purpose are the
language of the statute, the spirit of the
act, and what the act seeks to accomplish.
Comr. of Insurance v. Rate Bureau, 300 N.C. 381, 399, 269 S.E.2d
547, 561 (1980) (citations omitted) (quoting
Stevenson v. City of
Durham, 281 N.C. 300, 303, 188 S.E.2d 281, 283 (1972));
In re
Declaratory Ruling by N.C. Comm'r of Ins., 134 N.C. App. 22, 27,
517 S.E.2d 134, 139,
disc. review denied, 351 N.C. 105, 540 S.E.2d
356 (1999). The court should be guided by the rules of
construction that statutes
in pari materia, and all parts thereof,
should be construed together and compared with each other.
Comr.
of Insurance, 300 N.C. at 400, 269 S.E.2d at 561;
Redevelopment
Commission v. Bank, 252 N.C. 595, 610, 114 S.E.2d 688, 698 (1960).
Thus, the court must reconcile such statutes with each other when
possible, and resolve any irreconcilable ambiguity so as to
effectuate the true legislative intent.
Comr. of Insurance, 300
N.C. at 400, 269 S.E.2d at 561;
In re Declaratory Ruling, 134 N.C.
App. at 27, 517 S.E.2d at 139.
Where, however, the language of a
statute is clear and unambiguous, there is no room for judicial
construction and the courts must give the statute its plain and
definite meaning.
State v. Green, 348 N.C. 588, 596, 502 S.E.2d
819, 824 (1998),
cert. denied, 525 U.S. 1111, 142 L. Ed. 2d 783
(1999).
Under section 74-58 of the North Carolina General Statutes,
DENR must initiate suspension or revocation proceedings whenever it
has reason to believe that a mining operation violates (1) the
Mining Act, (2) any rules adopted under the Mining Act, or (3) theterms and conditions of a permit.
See N.C. Gen. Stat. § 74-58(a)
(stating that DENR shall serve written notice of the apparent
violation). According to the plain language of section 74-58, a
violation of the terms and conditions of a permit is separate and
distinct from a violation of any rules adopted under the Mining Act
or from a violation of the Mining Act itself.
See id.;
see also
N.C. Gen. Stat. § 74-64(b) (2003) (distinguishing between
violations of (1) the provisions of the Mining Act; (2) its rules;
and (3) the terms and conditions of a permit). The question
presented by the instant case is whether the grounds for denial of
a permit as listed in section 74-51(d) may also serve as grounds
for violation of the Mining Act. The Mining Act does not expressly
define the term violation or specify what actions constitute a
violation of the Mining Act. Such ambiguity requires this Court to
examine the spirit of the Mining Act and what the legislation seeks
to accomplish to determine the meaning of section 74-58.
See
Sunscript Pharmacy Corp., 147 N.C. App. at 452-53, 555 S.E.2d at
633 (where the statutory language is ambiguous, the Court must look
to the spirit and purpose of the legislation).
The Mining Act was enacted to ensure (1) [t]hat the
usefulness, productivity, and scenic values of all lands and waters
involved in mining within the State will receive the greatest
practical degree of protection and restoration and (2) to prevent
any mining in the State unless plans for such mining include
reasonable provisions for protection of the surrounding environment
and for reclamation of the area of land affected by mining. N.C.
Gen. Stat. § 74-48 (2003). In order to fulfill these purposes, theGeneral Assembly charged DENR with the responsibility for enforcing
the provisions of the Mining Act.
See N.C. Gen. Stat. § 74-64
(2003). DENR may issue, condition, suspend, modify, renew, and
revoke permits in its capacity as enforcer of the Mining Act.
See
N.C. Gen. Stat. § 74-51
et seq. DENR may deny a permit upon
finding that the proposed operation will have a significantly
adverse effect on the purposes of a publicly owned park, forest or
recreation area. N.C. Gen. Stat. § 74-51(d)(5).
The language and stated purposes of the Mining Act indicate
that the General Assembly was concerned with the effect of mining
on the State's environment. Section 74-51(d)(5) expresses the
General Assembly's specific concern over the potential adverse
effects of mining on the State's publicly owned parks, forests, and
recreation areas. In light of the purpose of the Mining Act to
provide the greatest practical degree of protection and
restoration to the scenic values of all lands and waters involved
in mining with the State in benefit of the general welfare,
health, safety, beauty, and property rights of the citizens,
see
N.C. Gen. Stat. § 74-47, we conclude, contrary to the decision of
the trial court, that where a mining operation adversely affects
the purposes of a publicly owned park, forest, or recreation area
to a significant degree, such operation violates the Mining Act.
A contrary decision renders the protections of the Mining Act
meaningless and contravenes the stated purposes of the legislation.
As the Commission concluded, it is inconceivable that the General
Assembly would authorize [DENR] to deny a permit for a harm that
was
predicted, but provide no remedy where the harm was
actuallyfound to occur. According to the reasoning set forth by the trial
court, any mistake by DENR in its initial permitting process,
irrespective of due diligence by the agency, is simply not
correctable, even where significant harm to the environment occurs.
For example, if DENR issued a permit but later discovered that the
operation of a mine constituted a direct and substantial physical
hazard to public health and safety under section 74-51(d)(4), DENR
would have no authority, under the trial court's reasoning, to
revoke the permit, even where modification of the permit was not
possible and a substantial physical hazard to public health
definitely proven. Following this reasoning, the illogical
conclusion is that DENR would lack even the authority to deny
renewal of such a permit.
See N.C. Gen. Stat. § 74-52(b) (2003)
(noting that the sole basis for denial of a renewal permit shall
be an uncorrected violation of the type listed in G.S. 74-
51[(d)](7), or failure to submit an adequate reclamation plan).
Thus, under the trial court's narrow reading of section 74-58, a
mining operation could pose a substantial physical hazard to public
health and safety but continue to operate under a permit
indefinitely. We reject such a narrow interpretation of section
74-58 and conclude the trial court erred in determining that DENR
lacked authority to revoke Petitioner's permit on the basis of its
finding that the operation had a significant adverse effect on the
Appalachian Trail.
III. Proper Procedure for Revocation
[4] Respondents further argue the trial court erred in
concluding that revocation of Petitioner's permit was not made uponproper procedure. We agree. DENR notified Petitioner of the
violation by letter dated 19 April 2000, and of its intent to
revoke the permit unless sufficient modifications to mitigate the
adverse effects could be taken. DENR also advised Petitioner of
its statutory right to an informal conference to discuss the
matter, which was held 22 May 2000. During the conference, DENR
requested that Petitioner submit a modification proposal, including
a landscaping plan addressing the visual and acoustical impact of
the mining operation on the Appalachian Trail. Petitioner
subsequently submitted two modification proposals, but DENR
rejected both proposals because they did not adequately address the
specific concerns raised by DENR. By letter dated 6 September
2000, DENR informed Petitioner that it was revoking the mining
permit. The uncontroverted evidence shows that, once it determined
that Petitioner's mining operation violated the Mining Act, DENR
complied with the procedure set forth in section 74-58(a) of the
General Statutes by (1) serving Petitioner with written notice of
the violation; (2) informing Petitioner of its right to an informal
conference; (3) holding an informal conference with Petitioner; (4)
allowing Petitioner the opportunity to correct the violation; and
(5) revoking Petitioner's permit after Petitioner failed to correct
the violation. In so doing, DENR fulfilled its statutory duties to
both Petitioner and the people of North Carolina in revoking the
permit.
Petitioner argues DENR should have proceeded under section 74-
57 of the General Statutes, which allows DENR to modify the terms
and conditions of a permit as it deems appropriate. N.C. Gen.Stat. § 74-57. By failing to act pursuant to section 74-57,
Petitioner asserts and the trial court concluded, that DENR's
revocation was made upon improper procedure. We disagree.
Certainly, DENR could have modified Petitioner's permit pursuant to
section 74-57 had it so chosen, but it was under no statutory
obligation to do so. Nothing in the Mining Act requires DENR to
first modify a permit before initiating revocation proceedings.
The trial court therefore erred in concluding that revocation of
Petitioner's permit was made upon improper procedure.
IV. Willful Violation
[5] By further assignment of error, Respondents contend the
trial court erred in concluding that Petitioner's permit could not
be revoked because any violation of the Mining Act was not
willful. The trial court concluded that there was no deliberate
act of Petitioner that has resulted in a violation of the
permit[,] and that there was nothing 'willful' about the fact
that the [mining operation] is visible from the Appalachian Trail.
According to the trial court, there was nothing correctable about
the violation, and thus no willful action on Petitioner's part.
Again, we must disagree with the trial court.
Under section 74-58, DENR may suspend the permit until the
violation is corrected or may revoke the permit where the violation
appears to be willful. N.C. Gen. Stat. § 74-58. After being put
on notice that its operation violated the Mining Act, Petitioner
took inadequate steps to properly and effectively address the
violation, despite specific guidance by DENR on the issue.
Contrary to the trial court's unsupported conclusion that there wasnothing correctable about the violation, DENR twice advised
Petitioner to employ a landscape architect in order to develop an
effective modification proposal and landscaping plan. DENR related
its specific concerns to Petitioner, and shared with Petitioner the
results and proposals of the various consultants hired by DENR to
review the effects of the mining site on the Appalachian Trail.
All three of the reports submitted by the consultants contained
concrete, detailed suggestions for mitigation of the visual and
auditory impact of the mining site on the Trail. Petitioner
declined to employ a professional landscape architect, and its
modification proposals did not significantly address the problems
articulated by DENR. Had there indeed been nothing correctable
about the violation, there would have been no reason for DENR to
twice give Petitioner the opportunity to correct the violation by
developing a professional landscaping plan to effectively address
the adverse effects of the mining operation on the Appalachian
Trail. DENR put Petitioner on notice of its violation and gave
Petitioner the opportunity to correct the situation. Petitioner
failed to act. Such failure cannot be described as anything other
than willful. The trial court erred in concluding otherwise.
V. Vested Rights Doctrine
[6] Finally, Respondent argues the trial court erred in
concluding the doctrine of vested rights prohibited revocation of
Petitioner's mining permit. Respondents contend the doctrine of
vested rights does not protect Petitioner in the present case. We
agree.
The doctrine of vested rights provides that one who, in good faith and in reliance upon a
permit lawfully issued to him, makes
expenditures or incurs contractual
obligations, substantial in amount, incidental
to or as part of the acquisition of the
building site or the construction or equipment
of the proposed building for the proposed use
authorized by the permit, may not be deprived
of his right to continue such construction and
use by the revocation of such permit, whether
the revocation be by the enactment of an
otherwise valid zoning ordinance or by other
means, and this is true irrespective of the
fact that such expenditures and actions by the
holder of the permit do not result in any
visible change in the condition of the land.
Town of Hillsborough v. Smith, 276 N.C. 48, 55, 170 S.E.2d 904, 909
(1969). Here, the trial court concluded that, because Petitioner
invested substantial expenditures in reliance upon the permit
issued by DENR, it had acquired a vested right to conduct mining
operations at the site[.] One does not acquire a right to
violate an otherwise valid zoning ordinance, already in existence,
however, by making expenditures or incurring obligations merely
because when he made them he did not know the ordinance had been
adopted.
Id. at 58, 170 S.E.2d at 912. Here, no new law was
enacted to alter the requirements
of a mining permit. Rather, the
permit was mistakenly issued in violation of the existing
requirements of section 74-51(d)(5). Permits unlawfully or
mistakenly issued do not create a vested right.
See Raleigh v.
Fisher, 232 N.C. 629, 635, 61 S.E.2d 897, 902 (1950);
Mecklenburg
County v. Westbery, 32 N.C. App. 630, 635, 233 S.E.2d 658, 660-61
(1977).
We also note that the issue of the permit's validity has been
specifically and consistently challenged by Respondent-Intervenors,
who argue Petitioner failed to give notice of its application forthe permit to neighboring landowners, as required under section 74-
50(b1) of the General Statutes. Without such notice, Respondent-
Intervenors contend the permit was not valid. The trial court
declined to address the issue, as it was not considered by the
administrative law judge or the Commission. However, because the
vested rights doctrine arises from a validly-issued permit only, it
was error for the trial court to conclude that the doctrine
protected Petitioner, where material issues of fact remained
outstanding on the issue of notice. We conclude the trial court
erred in determining that Petitioner had a vested right to operate
its mine.
For the reasons stated herein, we conclude the trial court
improperly applied the whole record test and erred in its
interpretation of the Mining Act. The order of the trial court is
therefore,
Reversed.
Judges McGEE and STEELMAN concur.
Footnote: 1 Subsection (c) of N.C. Gen. Stat. § 150B-51 requires the
reviewing court to engage in a
de novo review of a final agency
decision where the agency did not adopt the ALJ recommendation.
This subsection was enacted in 2000 and is applicable to
contested cases commenced on or after 1 January 2001. Because the
contested case petition in the instant case was filed 10 October
2000, the standard of review articulated in subsection (c) does
not apply.
Footnote: 2 In addition to its responsibilities in enforcing the Mining
Act, DENR is statutorily required to give due consideration to
the conservation of the environment of the Appalachian Trail.
N.C. Gen. Stat. § 113A-75(b) (2001);
see also N.C. Gen. Stat. §
113A-73(a) (2001) (stating that the Appalachian Trail should be
protected in North Carolina as a segment of the National Scenic
Trails System).
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