In re Huntley

Annotate this Case
In re Huntley (2003-369); 177 Vt. 596, 865 A.2d 1123

2004 VT 115

[Filed 09-Nov-2004]

                                 ENTRY ORDER

                                 2004 VT 115

                      SUPREME COURT DOCKET NO. 2003-369

                              APRIL TERM, 2004

  In re Richard and Elinor Huntley	}	APPEALED FROM:
                                        }
                                        }
                                        }	Environmental Board
                                        }	
  	                                }
                                        }	DOCKET NO. Declaratory 
                                                           Ruling 419

             In the above-entitled cause, the Clerk will enter:


       ¶  1.  Richard and Elinor Huntley, owners of a five-acre gravel
  mine, appeal a declaratory ruling by the Environmental Board.  The Board
  determined that the Huntleys' mine and associated property remained subject
  to Act 250 jurisdiction even though the site had been fully reclaimed, and
  its former permit had expired.  We reverse and hold that, when a permit
  expires pursuant to 10 V.S.A. § 6090(b)(1), the land is no longer subject
  to Act 250 jurisdiction absent some activity to trigger the statute's
  application.

       ¶  2.  In 1986, the Huntleys' predecessors in interest applied for
  an Act 250 permit, under § 6090(b)(1) (extraction of mineral resources), to
  extract gravel from a five-acre segment of their approximately 100-acre
  farm in Bethel.  They proposed a three-phase mining operation with detailed
  reclamation requirements to be completed at each phase.  The District 3
  Environmental Commission approved the proposal contingent that it be
  "completed and maintained in conformance with all of the terms and
  conditions of that application, and of Land Use Permit #3W0473."  That
  permit obligated the applicant to "complete and maintain" the project only
  as approved by the district commission and permit conditions.  The
  commission found, that if the project was operated and reclaimed in
  accordance with the permit's conditions, it would "not result in undue harm
  to the environment and [would] result in an area suitable for continued
  agricultural use."  The permit specified that the district environmental
  commission would "maintain[] continuing jurisdiction during the lifetime of
  the permit" and that the permit would expire on July 1, 1995, unless
  extended. 

       ¶  3.  The Huntleys subsequently acquired the property.  In 1995, they
  obtained a permit amendment authorizing minor changes in mining operations
  and extending the completion date for all mining and reclamation activities
  to October 1, 2002. (FN1)  By the October deadline, the Huntleys had ceased
  mining operations, and fully reclaimed and rehabilitated the property in
  accordance with the permit requirements.  A month later, as part of
  preparations to sell the property, the Huntleys requested an opinion from
  the district commission determining whether their property remained subject
  to Act 250 jurisdiction.  In response, the District 3 coordinator concluded
  that, although all mining had ceased, the permit had expired and the land
  had been reclaimed in compliance with permit requirements, the project
  remained subject to continuing Act 250 jurisdiction, and that "[a]ny
  subsequent activity on the land may require a permit." 
   
       ¶  4.  The Huntleys appealed to the Environmental Board, which
  framed the issue as follows:

    Does a sand and gravel extraction project remain subject to Act
    250 jurisdiction when the project's land use permit has expired
    pursuant to 10 V.S.A. § 6090(b)(1); and where the project tract
    has been reclaimed in accordance with the requirements of 10
    V.S.A. § 6086(a)(9)(E)(ii); and where said reclamation results in
    there being no potential for future environmental impacts from the
    prior sand and gravel extraction project?  

       ¶  5.  The Board found that it had continuing jurisdiction over the
  project.  The Board reasoned that permit duration and jurisdiction are two
  different concepts: the permit duration determines the life of a project,
  while jurisdiction determines the Board's oversight authority.  In cases
  involving a sand and gravel extraction operation, the Board concluded that
  the need to ensure that future property owners maintain compliance with the
  permitted reclamation plan supported continuing jurisdiction beyond the
  permit's expiration date.  The Board acknowledged, however, that only a
  "material or substantial change" to the permitted project would require a
  permit amendment.  See Environmental Board Rule (EBR) 2(A)(1)(e), 4 Code of
  Vermont Rules 12 003 001-6 (2004).  This appeal followed. 

       ¶  6.  In reviewing the Board's decision, the Board's interpretation
  of Act 250 and its rules control, unless a compelling indication of error
  exists.  In re Rusin, 162 Vt. 185, 188, 643 A.2d 1209, 1210 (1994).  If the
  Board operates outside the bounds authorized by its enabling legislation,
  we will intervene.  In re Agency of Admin., 141 Vt. 68, 75, 444 A.2d 1349,
  1352 (1982).  When examining the legislative grant of authority to the
  Board, we look to the plain meaning of the statutory language and are
  guided by the Legislature's intent, "as evidenced by the statutes
  themselves."  In re Audet, 2004 VT 30, ¶ 9, 15 Vt. L. Wk. 114, 850 A.2d 1000 (internal citations and quotations omitted).  We conclude that, under
  the circumstances in this case, Act 250 jurisdiction ended when the permit
  expired.

       ¶  7.  The Board's decision in this case equates jurisdiction with
  continuing oversight of the land and the authority to "ensure" that the
  Huntleys followed certain aspects of the reclamation plan and other permit
  requirements.  For example, the original permit required a vegetative
  buffer to screen the project.  The Board was concerned that if jurisdiction
  was lifted, the Huntleys could remove this buffer.  The Board further
  believed it needed jurisdiction to ensure that the Huntleys did not ignore
  the reclamation plan.  The Board's decision, in effect, extended its
  enforcement powers beyond the permit's expiration date.
   
       ¶  8.  In enacting Act 250, the Legislature conferred authority on
  the Board to bring enforcement actions.  For example, the Board can impose
  penalties for violations of a permit or failure to obtain a permit.  10
  V.S.A. § 6003.  The Board can revoke permits if a holder violates a
  permit's terms or conditions and fails to correct the violation.  Id. §
  6090(2)(c); EBR 38, 6 Code of Vermont Rules 12 003 001-33 to 001-34 (2004). 
  Additionally, the Board can investigate to determine compliance with a
  permit, 10 V.S.A. § 8005, and the Board can request that the secretary
  issue a warning for violations.  Id. §§ 8004, 8006(b).  

       ¶  9.  However, the Board's enforcement authority is tied to
  development, as defined in Act 250, and the existence of a permit.  Under
  Act 250, commencing development triggers jurisdiction and the obligation to
  obtain a permit.  10 V.S.A. § 6081.  "Development" includes, among other
  things: (1) the construction of improvements for commercial or industrial
  purposes on more than one acre within a municipality that does not have
  zoning laws and bylaws, or on more than ten acres if the municipality does
  have permanent zoning and bylaws, or in municipalities that choose to have
  one-acre jurisdiction apply; (2) construction of ten or more housing units;
  (3) construction above 2500 feet in elevation; and (4) extraction of oil,
  gas, or fissionable source materials.  10 V.S.A. § 6001(3)(A).  In the
  present case, the Huntleys ceased the sand and mining operation and
  reclaimed the land.  At this time, they are not conducting any activity
  that constitutes development as defined by Act 250.  Thus, the Board has no
  enforcement authority over the Huntley's land because no development is
  taking place.

       ¶  10.  Furthermore, the permit's plain language states that the
  permit expired on October 1, 2002.  Because the Huntley's permit expired,
  the Board  has no authority to enforce the terms and conditions of the
  expired permit.  See Sec'y, Vt. Agency of Natural Res. v. Handy Family
  Enter., 163 Vt. 476, 481, 660 A.2d 309, 312 (1995) (relying on the plain
  meaning of permit's words).  In reaching the opposite conclusion, the Board
  relied on a 2001 amendment to Act 250, § 6086, which terminated continuing
  jurisdiction for temporary film, television, or advertising projects that
  had no long-term impacts. (FN2)  The Board interpreted this amendment to
  mean that, the Legislature knew how to terminate jurisdiction but it had
  not terminated jurisdiction for permits granted under § 6090(b)(1)
  (extraction of mineral resources).           
   
       ¶  11.  Permits for the development of physical improvements for
  film, television, or advertising are granted for an indefinite term.  §
  6090(b)(1).  In enacting § 6086(e), the Legislature did not want permits
  for the temporary construction of film, television, and advertising
  projects that caused no long-term impact to go on indefinitely.  To
  effectuate this intent, it stated in § 6086(e), that if all the permit's
  conditions are met, and improvements are no longer in place, the permit
  ends earlier than it would have and, thus, the Board has no more
  jurisdiction.  In contrast, with respect to other permits issued under Act
  250, even if a permit's conditions are met, the permit's expiration date
  remains effective.  Or, if the permit is valid indefinitely under §
  6090(b)(1), then the Board's jurisdiction continues indefinitely.  §
  6090(b)(1).  In those situations, the Board's jurisdiction continues beyond
  the point when the permit's conditions are met and the improvements have
  been removed.  § 6086(e).  Thus, this section does not create a new rule
  that the Board's jurisdiction extends beyond the permit's expiration date
  in cases involving the extraction of mineral resources, but merely
  terminates the Board's jurisdiction under a specific set of circumstances.

       ¶  12.  The Board also erroneously interpreted our case law to mean,
  that once Act 250 is triggered, subsequent events, including the permit's
  expiration and the completion of reclamation, do not dissolve jurisdiction. 
  The Board relied on In re Rusin, 162 Vt. 185, 643 A.2d 1209 (1994), and In
  re Wildcat Construction. Co., 160 Vt. 631, 648 A.2d 827 (1993) (mem.) for
  this proposition.  However, in both cases, the permits had not expired and
  the permit holders were arguing that events that occurred after the permit
  was issued dissolved the Board's jurisdiction.  In re Rusin, 162 Vt. at
  188, 643 A.2d  at 1210 (rejecting argument that jurisdiction could not
  continue because the modified project would not have been subject to Act
  250 in the first instance); In re Wildcat Constr. Co., 160 Vt. at 632, 648 A.2d  at 828-29 (rejecting argument that jurisdiction dissolved because town
  adopted permanent zoning and subdivision bylaws.)  Under these
  circumstances, we held that "[o]nce jurisdiction attaches [under § 6081(a)
  (permits required)], and a permit . . . is issued, that permit and its
  conditions will remain in force."  In re Wildcat Constr. Co., 160 Vt. at
  632, 648 A.2d  at 828.  In contrast, the Huntleys are not trying to avoid
  the permit's expiration date; their permit has expired.  The above cases
  involved only subsequent events after jurisdiction had attached, but before
  the permit expired.  Thus, those cases are inapplicable here.

       ¶  13.  The State in its amicus curiae brief also relies on In re
  Audet for a similar proposition.  In re Audet involved a landowner who had
  not yet received an Act 250 permit, and argued that, even though the
  activities on his land originally triggered Act 250, he abandoned his use
  and no longer needed to obtain a permit.  2004 VT 30, at ¶ 13.  We noted
  in dicta that, in most circumstances, once Act 250 jurisdiction attaches,
  it does not dissolve.  Id.  However, we agreed with the landowner and held
  that he abandoned use of his land.  Id. ¶ 14.  In re Audet does not
  contradict our holding today that addresses the situation where a person
  obtained a permit and the permit expired.

       ¶  14.  The danger that the Board tries to address-the Huntleys
  failing to maintain the permit's reclamation requirements-by applying
  continuing jurisdiction beyond the permit's expiration date can be
  addressed through the Board's statutory authority.  First, the Board has
  the power to attach appropriate conditions to the permit to "ensure that
  the development is completed as approved."  EBR 32, 6 Code of Vermont Rules
  12 003 001-29 (2004).  Any condition the Board places on the permit is
  subject to the requirement that it is an "allowable proper exercise of the
  police power" and is appropriate.  § 6086 (c).  Second, when a sand and
  gravel mining operation is involved, the Board must approve the site
  rehabilitation plan before it grants the permit.  § 6086(a)(9)(E)(ii).  At
  this stage, the Board has the power to require compliance with the plan by
  setting the permit expiration date beyond reclamation.  See id. 
  (containing no language to prevent such an arrangement). 
        
       ¶  15.  Because the Board's decision extends its power beyond the
  bounds authorized by its enabling legislation, we reverse its decision.  We
  hold that when the Huntleys' permit expired pursuant to 10 V.S.A. §
  6090(b)(1), the land was no longer subject to Act 250 jurisdiction.

       Reversed.

        

                                       BY THE COURT:


                                       _______________________________________
                                       John A. Dooley, Associate Justice

                                       _______________________________________
                                       Denise R. Johnson, Associate Justice

                                       _______________________________________
                                       Marilyn S. Skoglund, Associate Justice

                                       _______________________________________
                                       Paul L. Reiber, Associate Justice


------------------------------------------------------------------------------
                                  Footnotes


       Note:  Chief Justice Amestoy sat for oral argument but did not
  participate in this decision.


FN1.  Despite a 1994 revision to Act 250 requiring that gravel mine permits
  "shall be for a specified period," 1993, No. 232 (Adj. Sess.), § 35
  (codified at 10 V.S.A. § 6090(b)(1)), the permit stated that it was "issued
  for an indefinite term, as long as there is compliance with the conditions
  herein."  The Huntleys, the Environmental Board, and the district
  coordinator all agree that this provision was a mistake.  There is no
  dispute that the permit in fact expired on October 1, 2002.

FN2.  Section 6086(e) of Title 10 states:
      This subsection shall apply with respect to a development that
    consists of the construction of temporary physical improvements
    for the purpose of producing films, television programs, or
    advertisements.  These improvements shall be considered "temporary
    improvements" if they remain in place for less than one year,
    unless otherwise extended by the permit or a permit amendment, and
    will not cause a long-term adverse impact under any of the 10
    criteria after completion of the project.  In situations where
    this subsection applies, jurisdiction under this chapter shall not
    continue after the improvements are no longer in place and the
    conditions in the permit have been met, provided there is not a
    long-term adverse impact under any of the 10 criteria after
    completion of the project; except, however, if jurisdiction is
    otherwise established under this chapter, this subsection shall
    not remove jurisdiction.  This termination of jurisdiction in
    these situations does not represent legislative intent with
    respect to continuing jurisdiction over other types of development
    not specified in this subsection.



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