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Dakota Resource Council v. North Dakota Public Service Commission

Citations: 815 N.W.2d 286; 2012 ND 72; 2012 N.D. LEXIS 79; 2012 WL 1205125Docket: No. 20110226

Court: North Dakota Supreme Court; April 10, 2012; North Dakota; State Supreme Court

Narrative Opinion Summary

The Dakota Resource Council (DRC) challenged the North Dakota Public Service Commission's (PSC) order approving Falkirk Mining Company's request to revise a surface mining permit. Falkirk aimed to change the postmining use of land from agricultural to recreational, intending to transfer land to the North Dakota Department of Transportation for wildlife management. DRC argued that the PSC's decision was legally flawed, lacking evidentiary support, and that agricultural use should be prioritized according to state statutes. The PSC, however, determined that there is no statutory hierarchy for postmining land uses, and approved the change due to significant public benefits. The district court upheld the PSC's decision, noting the limited scope of judicial review under the Administrative Agencies Practice Act. The court found that the PSC's decision was supported by substantial evidence and statutory interpretation did not mandate a preference for agricultural use. Thus, the court affirmed the PSC's approval of the recreational use designation, recognizing the potential public benefits and compliance with environmental standards.

Legal Issues Addressed

Administrative Review under the Administrative Agencies Practice Act

Application: The district court's review of the Public Service Commission's decision is limited to specific grounds, such as legal noncompliance and lack of evidentiary support.

Reasoning: The review of agency decisions under the Administrative Agencies Practice Act is limited, and reversal is only warranted on specific grounds, including legal noncompliance, violation of constitutional rights, procedural defects, lack of fair hearing, insufficient evidentiary support for findings, and inadequate explanation for not adopting contrary recommendations.

Bonding and Revegetation Standards for Postmining Land Use

Application: The PSC found that different standards apply to agricultural and recreational lands, influencing the decision to approve the land use change.

Reasoning: Different performance bonding and revegetation standards apply to postmining lands reclaimed for agriculture versus recreation, with agricultural lands requiring a ten-year bond liability and restoration to prior productivity levels, while recreational lands may have shorter bond release periods and less stringent revegetation standards.

Determination of Higher or Better Postmining Land Use

Application: The PSC concluded that the change to recreational use offers substantial public benefits, justifying the departure from agricultural use.

Reasoning: The PSC concluded that substantial public benefits would result from this change and affirmed its approval of Falkirk’s request to revise the land use to recreational purposes.

Statutory Interpretation of N.D.C.C. 38-14.1-24

Application: The court determines that the statute does not establish a hierarchy of postmining land uses, allowing the PSC discretion in approving land use changes.

Reasoning: Restoring land to agricultural use is included as a purpose of the surface coal mining and reclamation program, but it is not designated as the highest or best use, nor is there a hierarchy of postmining land uses established by N.D.C.C. 38-14.1-24(2) or its regulations.