DocketNumber: Case No. 01 BA 18.
Judges: VUKOVICH, P.J.
Filed Date: 6/14/2002
Status: Non-Precedential
Modified Date: 4/18/2021
The area of land appellants sought to be named unsuitable included the town of Bethesda, Ohio, Dysart Woods and the surrounding area of land. Dysart Woods is owned by Ohio University and contains trees ranging from three to four hundred years old; it is one of the last remaining old growth forests. Appellants fear that if mining is allowed in the Dysart Woods area, the side effects of mining are going to have a devastating impact on the old trees. Appellants claim that regardless of what type of mining occurs, whether it is long wall mining or room and pillar mining,1 the settling surface area may have an effect on the water level and the trees.
OVCCO, AEC and CLC, who now own the right to mine this area of land, oppose the LUP. Under the area of land sought to be named unsuitable, runs a section of the Pittsburgh No. 8 coal seam, which has an abundance of coal. OVCCO, AEC and CLC claim they are exempt from the status of unsuitability by R.C.
To fall under these exemptions, what was occurring on this land prior to 1977 must be considered. In the late 1960s early 1970s, two mining systems existed in this area of land. One mining system was the Allison Mine and the other mining system was the Powhatan No. 6 Mine. Through buying, selling, and land swapping, in 1977 the western part of this area was the Allison Mine and the eastern part was Powhatan No. 6 Mine. In the 1970s, both of these mines were actively mining coal. In 1977, both mines had a coal contract with Cleveland Electric Illuminating Company (CEI). The actual mining that had occurred in Allison Mine was 5.7 miles from Dysart Woods. Powhatan's No. 6 Mine actual mining occurred 4.5 miles from Dysart Woods. However, the rest of land that was not mined was dedicated to its respective mine. Through the change in the coal market over the past two decades these mines were sold. OVCCO, AEC and CLC now own the rights to mine the Powhatan No. 6 Mine, Allison Mine and the mine reserves for those respective mines.
The Chief of the Division of Mines and Reclamation considered these facts and made a ruling in the May 3, 2000 letter to OVCCO. The Chief first made a finding that Dysart Woods was unsuitable for mining. Regardless of this fact, the Chief stated that Pittsburgh No. 8 coal seam was exempt from the unsuitability status. The Chief stated that the Pittsburgh No. 8 coal seam was a part of the original Allison Mine and Powhatan No. 6 Mine. The Chief found that under R.C.
"THE BURDEN OF ESTABLISHING ENTITLEMENT TO A STATUTORY EXEMPTION IS UPON THE ENTITY CLAIMING THE EXEMPTION, AND ANY AMBIGUITY IN THE EXEMPTION STATUTE OR IMPLEMENTING REGULATIONS IS TO BE NARROWLY CONSTRUED AGAINST THE CLAIMANT."
Appellants argue two claims under this assignment of error. First, appellants claim that the Chief and the Commission incorrectly placed the burden of proof upon them to prove the exemption did not apply. Second, appellants state that exemptions must be narrowly construed and both the Chief and the Commission broadly construed the exemptions.
At the commission hearing, Commissioner Menzie stated that the burden of proof was upon appellants. Pursuant to the Rules of the Reclamation Commission enumerated in OAC
"FOR THE ACQUISITION OF COAL TO CONSTITUTE A ``SUBSTANTIAL LEGAL AND FINANCIAL COMMITMENT IN A COAL MINING OPERATION' UNDER THE STATUTORY EXEMPTION, THE COAL MUST HAVE BEEN ACQUIRED FOR THE PURPOSE OF FULFILLING A LONG-TERM COAL CONTRACT IN EXISTENCE ON OR BEFORE JANUARY 4, 1977."
Areas of land can be named unsuitable for mining if the coal mining operations will affect fragile or historic lands and result in significant damage to important historic, cultural, scientific and esthetic values and natural systems. R.C.
The Commission made SLFC findings for both the Allison and Powhatan No. 6 Mines. The phrase "substantial legal and financial commitments in a coal mining operation" is not defined in R.C. Chapter 1513, however, it is defined in the Ohio Administrative Code. OAC
"``Substantial legal and financial commitments in a coal mining operation' means significant investments that have been made on the basis of a long-term coal contract in power plants, railroads, coal-handling, preparation, extraction or storage facilities and other capital-intensive activities. An example would be an existing mine, not actually producing coal, but in a substantial stage of development prior to production. Costs of acquiring the coal in place or of the right to mine it without an existing mine, as described in the above example, alone are not sufficient to constitute substantial legal and financial commitments."
Therefore, according to the OAC and the Revised Code, the coal reserve must constitute part of a significant investment in Allison Mine and Powhatan No. 6 Mine based on a long term contract that was in existence prior to January 4, 1977, in order for this area of land to be grandfathered in and allowed to be mined. In examining the SLFC status, a mine is examined as it was on January 4, 1977. R.C.
While OAC clearly states that the purchase of a reserve without the existence of a mine would not be enough to justify a SLFC finding, no reference is made about a coal reserve for an existing coal mine. No cases have been decided in Ohio determining whether or not the purchase and dedication of a coal reserve to an already producing mine is a SLFC.
In addition to the above, in 1969 Allison Mine and Powhatan No. 6 Mine executed a land swap between the two mines whereby the mines traded the right to mine parcels of land between each other. Prior to this land swap, Powhatan No. 6 Mine owned the right to mine under Dysart Woods. However, this section of land was not connected to any land that Powhatan No. 6 Mine had the right to mine at that time. Allison Mine was in a similar situation. Part of the land Allison Mine was authorized to mine was not connected to any other land it was authorized to mine. Instead it was situated in the middle of the land Powhatan No. 6 Mine was authorized to mine. Powhatan No. 6 Mine and Allison Mine swapped the right to mine these parcels of land, thereby creating a continuous mining system.
Prior to the mine swap, as described above, a checkerboard mining system existed in and around Dysart Woods. The easiest way to understand this is to picture a checkerboard with black and red squares. Prior to the coal land exchange, Powhatan No. 6 Mine was the red squares on the checkerboard and Allison Mine was the black squares. When the coal land exchange went through it was as if all the black checkerboard squares were moved to one side of the board and all the red checkerboard squares were moved to the other side. The coal land exchange created a "logical mining system" — a continuous block of land instead of unconnected parcels of land.
The problem with having a checkerboard mining system is that the mines owned by one company would not be connected, therefore making mining more costly. According to the amicus, appellees and the Commission's judgment entry, typically a mine has one entrance through which coal is extracted. If a coal company has checkerboard land, then they would need entrances to mines on every parcel of land. This would make mining more costly.
Therefore, due to the land swap, in 1977 Allison Mine owned the right to mine to the west and under Dysart Woods, and Powhatan No. 6 Mine owned the right to mine to the east of Dysart Woods. Therefore, the land swap could be seen as a substantial financial investment. The land swap allowed both the Allison Mine and Powhatan No. 6 Mine to effectively mine their reserves so that the companies could fulfill coal contracts. Under the limited standard of review, we find that this argument lacks merit; the decision of the Commission is not arbitrary, capricious or inconsistent with the law.
Allison's Mine contract with CEI is not as clear cut as the contract with Powhatan No. 6 Mine. The Allison Mine contract was entered into in 1969. Allison Mine discontinued producing coal in 1981. The record on appeal only contains the first page of this contract and does not state the ending date of the contract. The contract states that CEI will be consuming a great deal of bituminous coal and wants to secure a dependable source for this coal. Affidavits provided from workers of Allison Mine, state that mapping projects were done for future mining. In these mapping projections all of Allison Mining Reserve was included.
The Commission determined that both of these contracts were long term. The Commission's decision is supported by competent evidence, therefore it was not arbitrary, capricious or inconsistent with the law.
However, appellants argue that regardless of whether it was a long term contract, the coal reserves in the LUP area are too remote and were not needed to fulfill the contracts. During the time the CEI contract was being fulfilled, neither Powhatan No. 6 Mine nor Allison Mine extracted coal from the LUP area. Powhatan's No. 6 Mine closest operation to Dysart Woods was 4.5 miles. Allison's Mine closest operation to Dysart Woods was 5.7 miles. The Commission stated that the fact that reserves are located 5-6 miles from the mines' surface facilities is not troubling for those familiar with underground mine plans. In explaining this, it stated that typically coal mines use the same entrance to extract the coal. Machinery does not need to be moved or duplicated at the site of the actual mining. The Commission is the "expert" regarding these claims, therefore we give deference to its findings. R.C.
Appellants insist that the contracts entered into in 1969 with CEI must state in it that the coal in Allison Mine Reserve and the coal in Powhatan No. 6 Mine Reserve were intended to be used to fulfill the contracts. Appellees and the amicus brief point out that coal reserves are a major thing for coal companies. They insist that companies like CEI will not enter into contracts for coal if the mining company does not have coal reserves. Furthermore, they claim it is an industry wide practice to not include in the contract which area of land the coal is being extracted from to fulfill the contract. Given the fact that the Commission stated that the coal reserves dedicated to Allison Mine and Powhatan No. 6 Mine were part of the SLFC made to those mines on January 4, 1977, we must give deference to that factual finding. As such we cannot state that the determination was arbitrary, capricious or inconsistent with law.
The Commission's findings are supported by the evidence. The amount of money invested in the mine, the effect of the land swap, the distance between the coal mine and the reserves, and the absence of language in the contract that the reserves are needed to fulfill the contract are determinations that this court should give deference to the Commission since it is the "expert." R.C.
"EVEN IF ACQUISITION OF THE DYSART WOODS COAL WAS A ``SIGNIFICANT LEGAL AND FINANCIAL COMMITMENT,' IT SERVES ONLY TO EXEMPT THE ``COAL MINING OPERATION' AS OF 1977, AND NOT TO EXEMPT THE DYSART WOODS COAL RESERVES THAT WERE NOT BEING ACTIVELY MINED AT THAT TIME."
Appellants argue that even if this court finds SLFC status, the LUP area cannot be mined because that area of land was not in "operation" in 1977. Appellants' argument is based on the definition of "operation" and the West Virginia case of Cogar v. Faeber (1988),
In Ohio, "coal mining operation" or "operation" is defined as:
"(1) Activities conducted on the surface of lands in connection with a coal mine, the removal of coal from coal refuse piles, and surface impacts incident to an underground coal mine. Such activities include excavation for the purpose of obtaining coal, including such common methods as contour, strip, auger, mountaintop removal, box cut, open pit, and area mining; the use of explosives and blasting; in situ distillation or retorting; leaching or other chemical or physical processing; and the cleaning, concentrating, or other processing or preparation of coal. Such activities also include the loading of coal at or near the mine site.
"* * *
"(2) The areas upon which such activities occur or where such activities disturb the natural land surface. Such areas include any adjacent land the use of which is incidental to any such activities, all lands affected by the construction of new roads or the improvement or use of existing roads to gain access to the site of such activities, and for hauling, and excavation, workings, impoundments, dams, ventilation shafts, entryways, refuse banks, dumps, stockpiles, overburden piles, spoil banks, culm banks, holes or depressions, repair areas, storage areas, processing areas, shipping areas, and other areas upon which are sited structures, facilities, or other property or materials on the surface, resulting from or incident to such activities. Separation by a stream, roadway, or utility easement does not preclude two or more contiguous tracts of land from being considered contiguous." R.C.
1513.01 (H). See, also, OAC 1501-13-1-02(W).
This definition of operation indicates that activities occurring need to produce coal or be incidental to the production of coal. As explained earlier, an existing mine not actually producing coal, but in a substantial stage of development prior to production is a "substantial legal and financial commitment in a coal mining operation." This definition does not require the actual production of coal. These definitions are in conformity with each other; SLFC status is incidental to the production of coal. However, neither definition references a coal reserve as being part of a coal mining operation.
Appellants insist a coal mining operation, in addition to the above definition, means an area covered by permit or in the process of a permit application. In Cogar, the Supreme Court of West Virginia was asked to determine whether a permit to mine could be modified to allow a new entrance to an underground mine. The new entrance would be close to a public road and occupied dwellings, and thereby in violation of the West Virginia Code. Id. The mine operators were looking to be grandfathered in by W. Va. Code
The Supreme Court of West Virginia stated that, "A person possessesvalid existing rights if he can demonstrate that the coal is immediately adjacent to an ongoing mining operation which existed on August 3, 1977 and is needed to make the operation as whole economically viable." Id. citing W. Va. C.S.R.
Cogar is distinguishable from the case at hand. The West Virginia Court stated that in the context of valid existing rights, operation means that portion of land under permit. In the subsection that is applicable to the case at hand, valid existing rights are not the issue; SLFC in a coal mining operation under R.C.
Furthermore, the case at hand involves the subsection of the statute dealing with the SLFC in a coal mining operation. Therefore, that specific definition should apply. Since the coal mine already existed and was in a substantial stage of development, the coal reserves could fall within the definition of operation under the OAC. The Commission's judgment emphasized how important coal reserves are to a coal mining operation in acquiring and fulfilling a coal contract. As such, we give deference to the expertise of the Commission in this area. R.C.
"THE COMMISSION'S BROAD EXEMPTION OF PASSIVE COAL RESERVES VITIATES THE LEGISLATIVE PURPOSE UNDERLYING THE AREA UNSUITABILITY PROCESS OF PROTECTING FRAGILE LAND AND UNIQUE NATURAL AREAS."
In the absence of any ambiguity in the language of the statute, there is no need to consider the legislature's intent in enacting the statute.In re M.B. (June 29, 2000), 10th Dist. No. 99AP-922. A court only has the right to interpret a statute when the words of the statute are ambiguous, uncertain in meaning or conflicting. Id.; State ex rel.Burrows v. Industrial Comm. (1997),
R.C.
"(A)(1) Upon petition pursuant to division (B) of this section, the chief of the division of mineral resources management shall designate an area as unsuitable for all or certain types of coal mining operation if the chief determines that reclamation pursuant to the requirements of this chapter is not technologically and economically feasible.
"(2) Upon petition pursuant to division (B) of this section, a surface area may be designated unsuitable for all or certain types of coal mining operation if the operations will:
"(b) affect fragile or historic lands in which the operations could result in significant damage to important historic, cultural, scientific, and esthetic values and natural systems:
"(5) The requirements of this section do not apply to lands on which coal mining operation were being conducted on August 3, 1977, or under permit issued pursuant to this chapter or where substantial legal financial commitments in the operation were in existence prior to January 4, 1977."
The language of this statute is not ambiguous. As such, this assignment of error is without merit.
For the foregoing reasons, the decision of the Reclamation Commission is hereby affirmed. In so doing, we note that our decision does not per se authorize mining to occur under or around Dysart Woods. In order for mining to occur in this area, appellees must seek and be granted a permit under R.C.
Donofrio, J., and Waite, J., concur.