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Preserve the Dunes, Inc v. Department of Environmental Quality
684 N.W.2d 847
Mich.
2004
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*1 471 Mich 508 DUNES, PRESERVE THE INC v OF DEPARTMENT ENVIRONMENTAL QUALITY (Calendar 10). 16, 2003 122611, 122612. Argued Docket Nos. October No. July Decided 2004. Dunes, Inc., brought Michigan Preserve the an action under the protection seq., act MCL 324.1701 et the (MEPA), Department County against Berrien Trial Court the of Environ- TechniSand, Inc., Quality seeking injunctive mental and (DEQ) against mining operation relief TechniSand sand dune and challenging mining permit the decision to a sand dune issue deq’s court, Peterson, J., to TechniSand. The David denied the defen- summary disposition, finding dants’ for motions that the suit mepa provided independent not and that time-barred for an cause Later, court, Schofield, J., plain- of action. Scott denied the summary disposition, determining tiffs for motion that plaintiffs and, they not, claims were even if time-barred were qualified permit exception TechniSand for an amended under the 324.63702(l)(b). provided subsequent in MCL After the bench court, trial, that, Maloney, J., although Paul L. found plaintiff prima had established a case facie under mepa, prima showing by establishing defendants had rebutted the facie any impact adverse on natural resources would not rise impairment the level of of destruction natural resources required by Appeals, EJ., for relief. The Court of mepa and Owens, JJ., injunction granted pending Markey first an Murray, appeal order, September 9, (unpublished [Docket entered 231728]), court, then No. reversed of the decision the trial concluding plaintiffs was not action time-barred and qualify exception prohibi- that TechniSand did not for an to the tion on sand dune in critical dune areas under MCL 324.6302, entry and remanded the case to the circuit court for granting summary disposition plaintiff. an order for the 253 Mich App appealed. defendants each opinion joined In an Chief Justice Justices Corrigan, Supreme Court held-. Young, Taylor, Markman, The claim of Preserve the Dunes is time-barred. TechniSand’s 324.63702(1) eligibility permit may for a under MCL not be brought as a claim. mepa v Dunes agency judicial an basis review of 1. affords no Mepa protect is to The focus decision under MCL mepa Michigan’s harmful conduct. offers resources from natural Mepa invalidating on an for sand dune no basis for issued any conduct. to the holder’s basis unrelated *2 by treating plaintiffs Appeals the 2. The Court of erred permit challenge eligibility a under MCL for to TechniSand’s 324.63702(1) plaintiffs claim is time-barred claim. The as a mepa brought than plaintiff in the trial court more because the its claim the the nineteen months after issued deq Appeals the Court for 3. The must be remanded to of case finding expedited that TechniSand’s of the circuit court review mining did not violate MEPA. conduct remanded. Reversed and joined by dis- Cavanagh and Weaver, Justice Justices mining permit application senting, that a sand dune stated 324.63704(2) dune and of the sand satisfies MCL 324.63702 may challenged Michigan under the environ- act be (SDMA) subject seq. protection act et It is not mental MCL 324.1701 (MEPA), periods in the Administrative to the of limitations delineated Act, Act, seq., Revised Procedures MCL 24.201 et or the Judicature seq. MCL 600.601 et prohibition mining sand The sdma a flat of in a critical includes mining entity a in the

dune area the had interest unless July 5, purchased land in 1991. area before 1989. TechniSand not, not, eligible statute, for TechniSand and is Under the permit to mine critical sand dunes. permit procedure for the issuance of a Under SDMA, specifically potential an of environmental includes examination mining prohibition mining might quali- harm that the cause. The procedure antipollution fies as an under mepa, wrongly permit majority’s insulates the sdma The determination eligibility judicial from review. Because of the determinations component permit process, the issuance environmental challenged permit may be Court mepa. entry granting correctly the case of an remanded for order summary plaintiff. disposition for the Mining Michigan — — — Dune Permits Environ- Mines and Minerals Sand mental Act. Protection Michigan protection for act affords no basis judicial Department of a decision Environmental review of Quality mining permit area dune in a critical dune issue a sand 324.64702(1), pursuant focus act is to to MCL because conduct; only protect Michigan’s from harmful natural resources 471 Mich 508 op Opinion the Court basis related to the holder’s for invalidation conduct (MCL seq.). can be reviewed under act et 324.1701 Neal, (by Neal), & Eisenberg Gerber Phil C. Taglia (by Fette), Fette Dumke & PC White Thomas R. and Howlett, Beier PC. (by Haynes K. and L. Jeffrey Rider Brice, IIP, for the plaintiff. Cox, Attorney General, A.

Michael Thomas L. Casey, General, Solicitor R. and James Assistant Piggush, Attorney General, for Department defendant of Envi- Quality. ronmental & Attorneys

Howard Howard PC H. (by James Geary, Susan Padley, E. Heflin) Cara Edwards TechniSand, defendant Inc.

Amici Curiae: Damm, (by

Clark Hill PLC Homes, F.R. Peter D. Smith) *3 Paul C. for Michigan Manufacturers Associa- tion.

Warner Norcross & LLP (by Judd Kenneth W. Ver- Bursch) meulen and John J. for the Michigan Aggre- gates Association.

Law, & Weathers Richardson (by PC. James P. En- Bennett) right and Alan Michigan for West Environ- Council, mental Action Inc.

Baker & (by McKenzie David P. Hackett Eric W. Sievers) Michigan and Lake (by Federation Laurel O’Sullivan) for the Michigan Lake Federation. C.J. Michigan Defendant Department of

Corrigan, Environmental Quality and defendant Tech- (DEQ) Inc., niSand, appeal a Court of Appeals decision holding improperly granted a sand dune mining THE DUNES V PRESERVE Opinion of the Court environ- Michigan TechniSand, contrary seq.1 et MCL 324.1701 act protection mental (MEPA), autho- us is whether before only properly issue to issue decision challenge to the DEQ’s a collateral rizes mining dune the sand under mining permit dune a sand et action that seq., in an MCL 324.63701 act (SDMA), unrelated to process permitting in the challenges flaws or polluted, impaired, has conduct involved whether the destroy or impair, likely pollute, or destroyed, will does MEPA. Because protected resources natural attack, we reverse a collateral such not authorize remand to that of the Court decision remaining issues of review expedited Court Dunes Preserve the plaintiff (PTD).2 PROCEDURAL POSTURE FACTUAL BACKGROUND AND I. a sand purchased TechniSand defendant set to mining permit that was with mining operation not allow That did in 1993. expire Area Expansion the Nadeau Site adjacent property, in 1989 as a “critical had classified which been (NSE), seq. 324.35301 et dune” area under MCL after prohibited in critical dune areas was Mining excep- defined 5, 1989, narrowly to certain July subject 324.63702(1): to MCL tions provision part,

Notwithstanding any other of this mining permit department not a sand dune shall issue part [MCL defined in critical dune area as within a 5,1989, except either of July seq.] et after 324.35301 following circumstances: (a) dune operator to renew or amend sand seeks 5,1989, subject prior July permit that was issued applicable to a renewal and standards to the criteria *4 amendatory application. [1] instituting 253 Mich Ptd is an ad hoc App this lawsuit. 263; organization [655] NW2d 263 of local citizens formed for the purpose Mich 508 op Opinion the Court

(b) operator mining permit a sand holds dune pursuant seeking issued to section 63704 and is to amend mining permit adjacent the land is to include that to mine, property operator prior permitted and 5, 1989, July operator rights owned the land owned operator sand in for mine dune the land which the seeks permit. an amended 1994,

In late TechniSand for an applied amended 324.63702(l)(b). April 1995, In Department Natural Resources denied the (DNR)3 application ground on the that ineli- TechniSand was 1(b) gible for an amended under subsection 5, because it had purchased operation after July 1989. 1996,

In May TechniSand amended and resubmitted application its and supporting documentation to the public hearing, After a approved Tech- DEQ. 25, niSand’s on application November 1996. Tech- began mining niSand the NSE area thereafter. later, Nineteen months in July 1998, sued defen- PTD dants, seeking injunctive declaratory relief under provides a cause of for declaratory action MEPA. MEPA equitable other relief conduct that is likely to result pollution, impairment, or destruction of Michigan’s natural resources. MCL 324.1701 et seq. that alleged violated when it PTD approved TechniSand’s amended mining It fur- ther alleged TechniSand’s conduct violated sought Defendants summary disposition because MEPA. PTD’s action was time-barred. The circuit court denied defendants’ motion. time, During agency regu this the DNR was administrative mining. responsibility

lated sand this transferred from the (codified deq Reorganization to the dnr Executive Order No. 1995-16 324.99903). at MCL *5 513 the Dunes v Opinion the Court of original after the summary disposition sought PTD that PTD’s ruled retired. His successor judge had circuit It also indeed time-barred. the SDMA claim under facie MEPA prima a had established plaintiff held that conduct. of TechniSand’s claim on the basis alone, the MEPA claim trial on seven-day After a bench successfully rebut- defendants had ruled that the court no judgment a of case and entered facie prima ted PTD’s “any found that specifically court of action. The cause will resources which on the natural impact adverse to the level of not rise the sand will result from within of natural resources or destruction impairment meaning of MEPA.” remanded for reversed and Appeals Court of summary for disposition entry granting of an order PTD. (1) the concluded that of The Court DEQ’s at challenged any a could be grant decision (2) did not qualify TechniSand time under filed and TechniSand § 63702. The Court, and we in this appeal for leave applications granted leave.4

II. STANDARD OF REVIEW statutory question The issue involves presented of statu- questions de novo We review interpretation. Co, Ins v Nat’l interpretation. Oade Jackson tory Life (2001). 244, 250; 632 NW2d A. OF MEPA OVERVIEW et seq., MCL 324.1701 part contained in MEPA Protection and Environmental the Natural Resources 468 Mich 869 471 Mich 508 Opinion of the Court Act, MCL 324.101 et To seq. prevail claim, on a plaintiff must make a facie “prima showing that conduct of the defendant polluted, has impaired, or destroyed or is likely pollute, impair, destroy air, water, or resources, other natural or the public trust in these resources . ...” MCL The defen- dant may rebut the plaintiffs showing with contrary (1) evidence or raise an affirmative defense there is no prudent feasible and alternative to the conduct and (2) the “conduct is consistent promotion with the public health, safety, and welfare in of” light the state’s *6 concern with protecting Michigan’s natural resources. Id. The focus of onis the defendant’s conduct. provides for judicial immediate review of alleg- edly harmful conduct. The statute does not require exhaustion of administrative remedies a plaintiff before 324.1701(2). files suit in circuit court. MCL A court may, however, “direct the parties to seek relief” in available administrative proceedings. MCL B. OVERVIEW OF SDMA PERMIT PROCESS The may authorize mining in critical sand dune DEQ areas under two specific conditions set forth in MCL 324.63702(l)(a) (b): and (1) Notwithstanding any provision other part, of this the

department shall not mining issue a sand dune permit within a critical dune part area as defined in 353 [MCL seq.] 5, 324.35301 et July after except under either of following the circumstances:

(a) operator seeks to renew or amend a sand dune mining permit prior July 5,1989, subject was issued to to the criteria and applicable standards to a renewal or amendatory application.

(b) operator mining holds a sand permit dune pursuant issued to seeking section 63704 and is to amend DEQ the Dunes v

Opinion Court of the adjacent to land that is mining permit to include the mine, prior permitted to operator is property the rights land or owned 5, 1989, operator the July the owned operator seeks in the land for which mine dune sand an amended limited one of these fall within does not operator

If an dunes in critical mining on to the SDMA ban exceptions inquiry in this initial areas, the ends. Nowhere inquiry seeker’s to evaluate required is the DEQ be Indeed, inquiry an would such conduct. proposed determined first unless pointless of the on the basis eligible applicant or operator. owner past as either applicant’s status eligible applicant that an Once the determines dune in a critical mining permit dune for a sand apply must fulfill 63702(1), applicant § area are applicants Specifically, §of 63704. requirements to the following to submit DEQ: required (a) provided permit application on a form A department.

(b) proposed impact statement An environmental activity prescribed 63705. mining as section (c) plan reclamation progressive A cell-unit activity prescribed in as section proposed for the 63706. *7 (d) by mining plan prescribed section 15-year as A 324.63704(2).] [MCL

63707. applicant has determines After the 63702(1) 63704(2), next deter- and it must §§ satisfied requirement meets applicant mine whether DEQ from approv- prohibits § 63709. Section applicant’s proposed if the ing an amended air, destroy or likely pollute, impair, “is conduct trust in public or the water, natural resources or other Thus, MEPA, resources, by part 17.” provided as those 471 Mich Opinion of the Court 17, MCL 324.1701 et seq., controls part expressly § 63709 DEQ’s determinations. C. MCL 324.1701 AND NEMETH v ABONMARCHE DEVELOPMENT In addition to conferring power upon Attorney 324.1701(1) General, MCL private authorizes a cause of action under MEPA: attorney general any person may or maintain an

action in having jurisdiction the circuit court where the alleged likely violation occurred or is to occur for declara- tory equitable against any person relief protec- for the air, water, tion of the and other natural resources and the public trust in these pollution, resources from impairment, or destruction. 324.1701(2) provides: granting provided by (1), relief subsection if there is pollution standard for or for an antipollution device or

procedure, by otherwise, fixed rule or the state or an instrumentality, agency, political subdivision of the state, may: the court (b) If a court deficient, finds a standard to be direct the adoption approved of a specified by standard the court. Thus, in Nemeth v Abonmarche Development, Inc,457 16; 641 (1998), NW2d we held that a violation of the soil erosion and sedimentation control act (SESCA), MCL 324.9101 et seq., may plaintiffs establish a prima facie showing under because the SESCA contains a pollution control standard.

MCL 324.1702 is not applicable in because, this case unlike the the SDMA does not contain an antipol- SESCA, lution standard. Consequently, it is not within the exception created MCL Nemeth, there- *8 517 v the Dunes Opinion of the Court of a violation that argument fore, support not does of facie violation prima as a may the SDMA serve MEPA. contrary was to the decision Appeals of The Court in holding Nemeth: of our misinterpretation aon based 1701(2) of speaks in terms [A]lthough subsection antipollution device or pollution for or a “standard whether exists, specifically include whether does not procedure” but of a natural impairment or destruction a standard did not seem exists, Supreme Court in Nemeth our resource point case in which important in that find that to be an commonly thought erosion, of as than rather what soil 2;n 655 App 286 pollution, [253 at issue. was (2002).] 263 NW2d In incorrect. conclusion is Appeals of Court part in holding our Nemeth, justified expressly we Nemeth, at supra of pollution. erosion is a form because (“Sedimentation well- [sic] and erosion is 27 pollution.”). of water recognized source actions, the focus Nemeth, in all Moreover, in as this Specifically, conduct.5 on the defendant’s actual 5 pollution Although control in that the sesca creates a we held Nemeth mepa claims, specifically applicable stated: we also standard inquiry. emphasize The trial that is not the end of the We this showing plaintiffs’ defendants’ SESCA violations court held that of mepa. Then, prima defendants facie claim under the established a showing prima opportunity that facie either

had the to rebut contrary, i.e., plaintiffs submitting have shown to the evidence destruction, pollution, impairment, nor the likelihood nor neither violations, by showing thereof, spite proof or in the sesca of prudent to defendants’ con- alternative there is no feasible added).] 1703(1). (emphasis at n 10 [Nemeth duct. Subsection prima Thus, opportunity facie to rebut it is clear that a defendant’s has been estab- that violation violation remains the same whether mepa pollution control independently statute’s or reference another lished the defen- standard, is whether the determinative consideration and that destroy will, fact, pollute, impair, resource. a natural in dant’s conduct erroneously case, concluded that In the instant the Court of 471 MICH Opinion op the Court findings Court reiterated Nemeth the of fact required Ray a trial court announced in v Mason Co as Drain Comm’r, 294; 224 Ray, 393 Mich NW2d *9 we stated: judge plaintiff must on trial find the facts which the prima 1703(1)], a [§

claims to made facie case under have “has, namely likely that conduct or is to defendant’s pollute, destroy air, impair or or other water natural Obviously necessary resources.” ... the evidence to consti- prima showing tute vary a facie will with nature of the alleged degradation [Ray involved. at 309 (some supplied).] emphasis Appeals That of to recognize Court failed that only MEPA readily concerned with harmful conduct is apparent from its characterization circuit court’s focus on TechniSand’s conduct as error:

Judge simply Schofield addressed whether Tech- proposed mining likely “pollute, impair, niSand’s to or destroy” the natural resource in case —the this critical App [253 dune area. 286.] Plaintiff and the dissent us to hold al- urge that though TechniSand’s mining operation may may or not likely be to pollute, impair, destroy air, water, or resources, other natural its predecessor’s allegedly de- ficient past relationship mining property to the nega- pollution § 63702 of the SDMA a creates control standard and that defendant Having concluded, effectively violated it. so the Court of concluded mepa § per defendant’s violation of 63702 amounted se. violation It failed to consider all at whether TechniSand had submitted evidence mepa alleged prima court, sufficient to rebut the facie violations. The trial however, finding presented did consider this evidence after that PTD prima independent facie MEPA violation of the SDMA. The trial court held mepa prima that TechniSand had rebutted the facie violation. The Court (errone- Appeals failure to consider whether TechniSand could rebut the mepa found) ously prima facie violation evidences extent to it which improperly failed to consider whether conduct TechniSand’s would actu- ally “pollute, destroy” impair, or a natural resource. the Dunes v Opinion the Court decline their invita- We affects the environment. tively a defendant’s fuzzy logic. Where accept such tion not offend no violation itself does conduct MEPA, exists. 624.63702(1) DECISIONS6

D. OF THE DEQ’S REVIEW this gloomy prediction reject the dissent’s We understanding of MEPA “insulates orderly [SDMA] at judicial from review.” Post determinations eligibility 539. discussed, per- determinations of previously As 63704(2) 63702(1) are un- §§

mit eligibility activities proposed the applicant’s related to whether Therefore, provides property on the violate MEPA. for plaintiffs of action circuit court private no cause permit eligibil- determinations of challenge the DEQ’s 63702(1) 63704(2). §§ made under ity *10 decision, alone, standing An administrative improper conduct Only -wrongful harm the does not environment. offends MEPA. deci judicial review of an administrative general, following statutory the schemes:

sion is available under (1) appli in the statute prescribed the process review (2) to circuit agency, appeal an particular cable to the the Judicature Act court Revised pursuant (RJA), 7.104(A), 600.631, Michigan Court Rules MCL and (3) 7.103, in the 7.101, provided review (APA), MCL 24.201 et Procedures Act Administrative Care, Social Dep’t Foster Inc v Group Palo seq. of 140, 145; Services, 577 NW2d App procedures establish expressly The SDMA does not in case determination a contested disputing a requirements challenge TechniSand’s satisfaction of the Ptd not does 63704(2). § [July- 471 Mich 508 Opinion op the Court unrelated to MEPA. We need not decide here whether PTD’s challenge to the permit decision is governed DEQ’s by the EJA or the APA because challenge is time- barred under either statute. PTD brought this action nineteen months after grant decision to DEQ’s application TechniSand’s for an amended permit, which far the sixty-day period exceeds allowed by APA, 24.304(1), MCL twenty-one-day period pro- 7.101(B)(1), vided MCR governs which appeals under 7.104(A). MCL 600.631 of pursuant the EJA to MCR and TechniSand properly interposed this defense in their initial pleadings. Thus, PTD’s claim was time- barred.

E. PARTICIPATION AND INTERVENTION DURING THE PERMIT PROCESS THE UNDER SDMA OR Parties who wish to intervene during the permit process have two options. They may intervene either under the procedures governed by the SDMA or those governed by MEPA. 324.63708(5) the SDMA a proce- establishes

dure for notifying interested parties applica- tions: department provide shall pending list of all sand mining applications

dune upon request person. from a give The list shall the name and applicant, address of each legal description of the lands project, included in the summary and a purpose statement of applica- tion. Thus, provides a mechanism whereby inter- SDMA parties may

ested learn of and participate agency decisions regarding approval of critical dune area min- *11 ing permits.

MEPAprovides procedure another for intervention in permit proceedings. This statute the Dunes v Opinion of the Court pleading a intervenor to file a requires potential assert- judicial that or action for review ing proceeding violated, violate, likely conduct that has or is involves Thus, PTD could intervened in Tech- while have MEPA. for permit process only niSand’s under its basis MEPA, proposed intervention would have been TechniSand’s conduct. MEPA does not allow such intervention on the anything alleged wrongful basis of other than conduct. F. REVIEW OF MCL 324.63709 DETERMINATIONS DEQ’S discussed, may a under MEPA be already challenge As during filed in circuit court the time that the before occurs, violation alleged any requirement without Thus, a litigant exhaust administrative remedies. ineligible whether TechniSand was for the un- §der 63709 on the basis of harmful alleged conduct was question that was the circuit properly before court. The circuit court ruled against PTD.

The Court of Appeals has not reviewed the circuit court’s decision that TechniSand’s conduct did not violate the incorporated standard into the SDMA § 63709. Because the Court Appeals never reached PTD’s claim that TechniSand’s opera- tion violates that issue ripe is not for this Court’s MEPA, review. remand the We case to the Court of review the circuit findings regarding court’s Tech- mining activity. niSand’s sand The Court Appeals is directed to expedite its consideration of this case.

G. THE RESPONSE TO DISSENT initially undisputed dissent contends that it is “ineligible for a permit.” TechniSand is Post at 525. disagree. We The time for challenging TechniSand’s eligibility long past. TechniSand is *12 471 Mich 508 Opinion of the Court Michigan mine in ac- lawfully entitled to sand dunes permit- the cording permit. Whether DEQ’s an about- ting “unprincipled” “illegal decision was or Court to make. Post face” is not a determination this at 525. That decision is time-barred.

The dissent further asserts that the DEQ’s of directly decision “will enable destruction critical (emphasis supplied). dunes.” Post at 526 The dissent that critical will destroyed asserts dunes be because Court of stated that TechniSand had acknowl- edged impact as much in an environmental statement. impact The entire environmental statement is not in Moreover, the record.7 the trial court found expressly contrary when it ruled on the MEPA It claim. specifically held TechniSand’s would not destroy a critical dune. The Court of Appeals never finding. addressed this conclusion that permitting process dissent’s subject to collateral attack is not on the defensible structure, language, purpose.

basis or Count- MEPA’s for and apply permits less entities receive for conduct that affects natural Michigan’s resources. Under the regime, dissent’s can permitting decision never be final. adopt Were we to the dissent’s extreme under- standing every permit that has ever been issued MEPA, subject any would be undotted “i” challenge; potentially uncrossed “t” could invalidate an existing permit. do the Legislature We not believe intended MEPA system to destabilize the state’s in permitting this manner. excerpt acknowledged in the record indicates that TechniSand project “greatly approximately

that the would alter” 61% of the nse. case, any expressly the trial court found more credible TechniSand’s ultimately expert impact witnesses and held “the adverse on the envi permitted ronment caused as will not rise to the level of impairment meaning or destruction within the of MEPA.” Dunes v Opinion of the Court Imagine reasoning the world that the dissent’s would present energy good example. create. The crisis offers a many years, country sought For our has to decrease our foreign reliance on sources of oil. an oil com- Suppose in in pany exploration Michigan decided to invest oil in DEQ-issued reliance on Under the dissent’s view, challenge any would authorize a at time to permitting process. Moreover, flaws under the reasoning, dissent’s a court must as true the accept bare assertion that a conduct company’s destroy will natural *13 rely resources. It can never on a to do business. sane investor would take gas What such risk? As soar, in prices people Michigan few would thank this “protecting” Court for the environment in this radical fashion. regime

The dissent’s would render the permitting process a useless exercise. It would cripple economic expansion in Michigan probably lead to disinvest- ment. money No one would invest to obtain a permit subject that is to endless collateral attacks. strips nowhere of final permitting process

MEPA It ity. is the dissent that a mockery legislative makes of intent by failing to anchor its in exaggerated claims statute’s actual language. post See at 526. does MEPA not impose requirement radical that courts indefi nitely police agencies’ permit proce administrative dures and As in decisions. noted Oscoda Chapter of PBB Comm, Action v Dep’t Resources, Inc Natural (1978) 215, 232-233; (opinion by 248 NW2d 240 J.): Levin, empowered prevent any

A court is not conduct.. . which does not rise to the level of environmental risk standard, proscribed by likely [MEPA]. ‘has or is pollute, impair destroy,’ grant is a limitation as well as a power. 471 Mich 508

Opinion of the Court Moreover, Appeals the Court of never reached actual conduct is likely issue of whether TechniSand’s already noted, to harm natural resources. As the trial specifically court held that TechniSand’s conduct did not this are procedural posture, violate Given we MEPA. by the dissent’s statement puzzled defendant’s destroy “will” critical dunes. taking testimony issue,

After extensive on that any trial court ruled “adverse on the impact by mining permitted environment caused as will not impairment rise to the level of or destruction within the of MEPA.” meaning explic- Court of did not reject Instead, the trial itly findings. court’s it errone- ously concluded that a that affects the environ- any may ment in at way challenged any be time under above, MEPA. For the reasons articulated the Court of Appeals erred in MEPA interpreting this manner.

CONCLUSION MEPA no judicial affords basis for of agency review 324.63702(1) decisions under MCL because that inquiry purview is outside the of MEPA.The focus of is to protect our natural state’s resources from harmful conduct. It offers no basis for invalidating an issued *14 reasons unrelated to the permit holder’s conduct. To by judicial hold otherwise would broaden fiat the of MEPAand create a scope cause of action that has no basis in MEPA’slanguage or structure.

The Court of erred Appeals by treating PTD’s chal- lenge to eligibility TechniSand’s for a permit 324.63702(1) MCL as a claim. Because PTD brought its claim more than nineteen after months permit, issued the PTD’s claim is time-barred. We DEQ reverse the of the Appeals decision Court of on that issue. Dunes v Dissenting Opinion by Kelly, J. remand the

We case to the Court of Appeals review the circuit findings court’s mining TechniSand’s conduct not does violate and direct the Court of MEPA, expedite its review. JJ.,

Taylor, Young, Markman, and concurred with Corrigan, C.J. In (dissenting). Michigan Depart-

ment of Natural Resources denied defendant (DNR) permission TechniSand to mine critical dunes because it ineligible for a permit under the sand dune act1 MCL 324.63701 et seq. year One (SDMA), later, following Engler’s Governor reorganization of the DNR, the newly Department created of Environmental Quality invited TechniSand to apply again, citing (DEQ) “changes government.” in state TechniSand reapplied and the granted a permit despite fact, now undisputed, that TechniSand remained ineligible to mine critical result, dunes. As a critical dunes that would otherwise remain untouched will be impaired and perhaps destroyed.

Through case, the decision in this a court majority of four sanctions unexplained illegal about- DEQ’s face on TechniSand’s critical dune mining process, it strikes a devastating Michigan’s blow to environmental law.2 This majority perpetuates part The sand dune act is codified as 637 of the Natural Act, Resources and seq. Environmental Protection MCL 324.101 et majority’s significantly scope decision to narrow of the applicability Michigan protection act (mepa), seq., compounded by 324.1701 et in this case is its recent decision in Nat ’l Upper Federation & Peninsula Environmental Council v Cleve Wildlife land Co, 608; There, Iron 684 NW2d 800 the same Cliffs majority ignores thirty years precedent applies judge-created standing plaintiffs. ruling despite tests to It makes this the fact that *15 Mich 508 471

526 by Opinion Dissenting Kelly, J. mining permit illegal decision to unprincipled DEQ’s scrutiny of the it from by insulating dunes critical act MCL protection environmental Michigan (MEPA). decision to holding that seq. et Its 324.1701 DEQ’s to” critical dunes is “unrelated to mine grant permit reality. defies It of those critical dunes the destruction environmen Legislature’s prevent our intent mocks addition, to this Court’s contrary harm. In it is tal 3 earlier MEPA decisions. case, dunes, in this like those at issue Critical sand natural resources. protected are specially The. by strictly resources protects irreplaceable act these mine them. works in eligible who is limiting to, words, act its own tandem with regulatory administrative “existing supplement by law.” MCL 324.1706. Issuance provided procedures directly enable destruction critical will Hence, otherwise remain untouched. dunes that would to issue the inescapable it is decision DEQ’s may challenged under environmental be act. protection

Moreover, act protection the environmental does not on ac- statutory legal of limitations impose period party’s that a conduct will cause tions assert impairment, or destruction. pollution, Therefore, challenge I is not plaintiffs would hold that of either the Adminis- statutory period limited person” explicitly grants standing “any to maintain an the statute pollution, impairment, prevent of our natural action to or destruction resources. 3 453, 454; (1975), See, e.g., Eyde Michigan, Mich 225 NW2d 1 v 393 Comm’r, 294, 304-305; Ray Mich 224 NW2d 883 v Mason Co Drain 393 (1975), Michigan v Re Environmental Action Council Natural West (1979) (WMEAC), Comm, 741, 751; Mich 275 NW2d 538 sources Dev, Inc, 16; Nemeth v Abonmarche 576 NW2d Dunes v Dissenting Opinion trative Act Procedures or the Revised Judicature (APA) Act MCL 24.201 et seq., seq. MCL 600.101 et (RJA).

I dissent the majority’s because decision subverts the of the purposes mining sand dunes act and the environ- mental protection by incorrectly act insulating DEQ’s permit scrutiny decision from under the environ- protection mental act. Defendant TechniSand is not eligible for a to mine permit critical dunes sand under the sand dunes act. I Accordingly, would affirm Appeals. decision of the Court of

THE MAJORITY’S RESPONSE TO THE DISSENT majority’s “Response to the Dissent”4 is an abrupt departure precedent from its of declining to legislative amend policy decisions with which it dis- agrees.5 Its discussion of the wisdom of Legisla- ture’s decision to bar sand dune mining by anyone who does not meet limited eligibility criteria is unsuited for judicial a opinion. Moreover, the majority’s comparison eligibility in problem a permit to clerical error and its suggestion my position would allow endless challenges for such trifles are gross exaggerations. Ante at 522. Granting permit to mine critical dunes to an ineligible operator is a substantive fault. It is a violation of the law that likely allows conduct to pollute, impair, or destroy a natural specially resource protected by the Legislature. Economic in development this state has not in ceased the past thirty years. It will not grind now to a halt under the oppressive weight of if permit challenges

4 Ante at 521-524. 5 scrupulously This Court has declined to consider the wisdom of the Legislature’s See, policy e.g., decision. Oakland Co Rd Comm’rs v Michigan Prop Ass’n, Guaranty 590, 612-613; & Cas 456 Mich 575 NW2d 471 Mich Dissenting Opinion that allows holdings prior reaffirms its

this Court deci- permit environmentally destructive challenges to sions. BELOW

FACTS AND PROCEEDINGS in property real purchased TechniSand Defendant dune critical and noncritical included both permit it obtained Along purchase, with its areas. portion dune areas on one mine sand noncritical an amendment applied TechniSand property. dune to critical sand expand of this adjacent portion property. on an dune areas Resources, the of Natural Michigan Department applica- agency charged reviewing with SDMA time, ground on the application at the denied the tions for an amended ineligible that TechniSand was *17 in noncritical dune original permit The was to mine property’s not include the critical dune areas and did Also, the land and purchased TechniSand had areas. deadline to for an apply after the mining operation mine the critical dune areas. permit unassociated 324.63702(1) (b). created a new 1995, Engler agency, John Governor Quality Michigan Department of Environmental Order No. 1995-16 Reorganization Executive (DEQ). 324.99903). (codified given respon- at MCL The DEQ and other environ- sibility administering for SDMA ap- and the Governor permitting programs, mental its director. The then wrote TechniSand pointed DEQ “changes government” that indicating state from TechniSand would allow “additional information” the permit application.6 to review DEQ 6 1, 1996, Kimberly April Douglas from Daniels and Rice Letter dated 20, 1995, April letter of the The letter makes reference to an DEQ. Preserve Dunes v DEQ Opinion by Dissenting Kelly, J. the environmental impact TechniSand resubmitted that it had plan statement and reclamation submitted without addi- previous application, providing with its information eligible how it was for demonstrating tional The later permit. permit an amended issued the DEQ met the year. explain It did not how TechniSand Also, in the it not now eligibility criteria does SDMA. for a dispute ineligible that TechniSand is Plaintiff formed in 1996. In Dunes was injunctive it sued TechniSand and the for stop expansion. relief to TechniSand’s mine Plaintiff alleged ineligible that TechniSand was for an SDMA permit expansion and that its mine violated MEPA. plaintiffs challenge

The trial court ruled that to the time-barred under the Admin- permitting decision was istrative Procedures Act

impact was insufficient to implicate MEPA. ruling. The Court of reversed the Mich Appeals App (2002). 263; 655 NW2d 263 It held that the DEQ’s to grant permit decision TechniSand’s amended could challenged under and that did not be TechniSand § for a of the SDMA. qualify decision to amend it con- permit, TechniSand’s DEQ’s cluded, violated MEPA. remanded the trial Court of case to the court for entry summary disposition plaintiff. ineligible Because it had found TechniSand for a area, to mine the critical dune it did not review the trial that the violated MEPA. finding court’s itself This granted applications appeal Court for leave to filed and TechniSand. 468 *18 that, pursuant Roger Whitener of the dnr informed TechniSand which General, opinion Attorney ineligible an of the state TechniSand was 1, 1996, April did address Tech- mine critical dunes. letter not ineligibility niSand’s to mine critical dunes. 471 Mich Dissenting Opinion MINING THE SAND DUNE ACT PROTECTS MICHIGAN’S CRITICAL DUNES FROM DESTRUCTION It Legislature is without contest enacted the dune act to stringently protect Michigan’s sand They sand dune areas from further destruction. are one prized Legislature of state’s natural resources. The in the act special provisions preserve included dune it areas labeled “critical.” It expressly indicated: unique,

The critical dune areas of this state are a irreplaceable, fragile provide significant resource that recreational, economic, scientific, scenic, geological, botani- cal, educational, agricultural, ecological benefits to the people people of this and the state from other states and 324.35302(a).] countries who visit this [MCL resource. The Legislature enacted the SDMA out of concern that mining the dunes them consumes and harms the envi- ronment. The act expression is an “para- state’s mount” in protecting interest the dunes. See MCL 324.1701. It mining” defines “Sand dune as the “re- moval of sand from sand dune areas for commercial or 324.63701(1).7 industrial purposes.” MCL It requires all persons seeking to mine sand dunes to obtain a sand dune mining permit. MCL Regarding 324.63704. criti- dunes, cal the act states that “the removal any volume of sand is not sand dune mining within a critical dune area as defined in part subject 353 is to the critical dune protection provisions part 353.” MCL exempts The statute from this definition the removal of “volumes of 3,000 than less tons” of sand if the removal is a “1-time occurrence and the reason the sand is removed is not for the direct use for an industrial purpose.” or commercial *19 Dunes v Dissenting Opinion Kelly, J. mining any sand prohibition against The SDMA’s flat to subject only in critical sand dune areas is designated is, mining That authorized entities exception. a narrow may continue that existed when the SDMA was enacted (1) in had a they mining on land which operation (2) 5, 1989, adjacent on land to July interest before mining in had a interest property they which before 324.63702(1).8 that date. MCL exceptions Legis- reflect the “grandfathering” These mining pre- to interests that attempt lature’s balance 5,1989, designation July dated the critical dune with remaining newly designated and preservation begin critical dunes. New entities would be unable to operation. Existing oppor- entities would have limited to mine additional critical By limiting tunities areas. to those entities with a inter- mining preexisting dune est, existing entities would be allowed to continue would not operating ensuring mining while last indefinitely. Legislature excep-

The mandated that these narrow mining implemented tions for sand dune would be 324.62702(1) provides in 8 MCL full: Notwithstanding any provision part, depart- other of this mining permit ment shall not issue a sand dune within a critical 5, 1989, part July except area as defined in 353 after dune following either of the circumstances: (a) mining operator The seeks to renew or amend a sand dune July 5,1989, subject prior that was issued to the criteria amendatory application. applicable and standards to a renewal or (b) operator mining permit holds a sand dune issued seeking mining pursuant to section 63704 and is to amend the adjacent property operator is to include land that is mine, prior July 5, operator permitted to 1989 the owned rights in the land or to mine dune sand the land for owned operator which the seeks the amended 471 Mich

Dissenting Opinion by through regulatory permits. MCL 324.63704. act procedure created a to ensure that future permitting only by parties pre-existing would be with a interest, legal protective a manner of critical reasonably suggested dune areas. It cannot be that the eligibility completely prohibit criteria that all but an defined from critical expressly operators few protection. dunes are not a measure of environmental Only if eligibility is verified do additional environmen- *20 protections play. tal come into Permit applications by eligible entities are on a case-by-case reviewed basis to proposed ensure that the is mining environmentally acceptable. The an applicant must submit environmental statement impact describing anticipated the environ- mental that damage will occur from the mining opera- 324.63704(2)(b). tion. MCL applicant must explain why mining alternative locations were not chosen. MCL 324.63705(h). It plan must include a reclamation for the 324.63704(2)(c), area to be mined. MCL 324.63706. reviewing application, must ensure that the proposed mining unlikely pollute, is impair, or destroy natural resources or the public trust in those Any resources. MCL 324.63709. issued must require provisions that the applicant’s progres- sive cell-unit plan reclamation are met. If threatened endangered or species present, plan are must provisions include either to them protect mitigate or to' effect of on 324.63706(3) them. MCL (g). MAY

PLAINTIFFS CHALLENGE THE PERMIT ELIGIBILITY DETERMINATION UNDER THE MICHIGAN ENVIRONMENTAL ACT

PROTECTION protection provides act Dunes v by Dissenting Opinion Kelly, J. may in circuit any person maintain an action . . . likely alleged violation occurred or is court. .. where the against any declaratory equitable relief occur for air, water, protection of the and other person for the public trust in these resources natural resources and pollution, impairment, [MCL or destruction. from 324.1701(1).] act, prima makes a facie case plaintiff

Under this likely to .. . showing “that the conduct of defendant or the trust destroy public the . . . natural resources 324.1703(1).9 The Legislature these resources.” MCL existing provided supplements expressly that were law. MCL regulatory procedures provided 324.1706. critical eligibility protect

The SDMA’s restrictions con- mining by ineligible operators dunes from whose critical dunes that likely impair destroy duct is Hence, remain untouched. the envi- would otherwise ronmental act is to decisions re- protection applicable The SDMA garding permit applicant’s eligibility. an SDMA specifically incorporates Legislature’s recognition are natural re- “irreplaceable” that critical dunes 324.35302(a). It that “the re- provides sources. MCL dune any moval of volume of sand . . . within critical *21 subject protection provi- area ... is to the critical dune part provisions sions of 353.” MCL Its limiting eligibility to mine critical dunes are strictly help protect pollution, intended to critical dunes from or impairment, destruction.

Thus, eligibil- majority’s suggestion permit the conduct will ity permitted is unrelated to whether 324.1702(2) misplaced. majority’s MCL is Ante at reference to challenging imposition not on TechniSand of 516. Plaintiffs are deq’s They challenge pollution standards. do not the manner the sdma’s control They permissible activity challenge whether in which is undertaken. permissible all. TechniSand’s conduct is at 471 Mich

Dissenting Opinion harm the environment is untenable. Issuance of a permit ineligible operator engage any mining an likely of critical dunes will allow “conduct... pollute, destroy. . . natural impair, public resources or the 324.1703(1); trust in these resources.” MCL see also WestMichigan Environmental Action Council v Natural Comm, 741, 751; Resources 405 Mich 275 NW2d 538 (1979) (WMEAC). intended prevent "to conduct that is likely to

harm the environment as well as to stop conduct that is presently harming WMEAC, it. In this Court ordered permanent injunction that a prohibiting be entered drilling gas of oil and pursuant wells to DNE The “issuance of permits properly before the circuit court conduct alleged likely as to be to pollute, impair, or destroy” natural resources under MEPA. WMEAC at drilling 751. The would “apparently cause serious and lasting, though unquantifiable, damage” to elk herd population. at WMEAC 760. This Court concluded that

the previous 691.1203(1), is violated when- MEPA, ever the effects of issuance harm the environ- ment to the requisite degree. WMEAC at 760.

Unlike eligibility for fuel drilling fossil other may activities that pollute the environment if done improperly,10 SDMA permit eligibility is severely restricted. The applicant must demonstrate a preexist- ing mining interest, and mining may no occur until this requirement has been satisfied. It the Legisla- reflects premise ture’s that the removal of even one bucket of sand from a critical dune an ineligible operator will inordinately impair the state’s critical dune An areas. 324.3106, requiring permits See also MCL 324.5505 and for activities may pollute imposing stringent eligibility the air and water without criteria. *22 535 v the Dunes by Dissenting Opinion challenged as be may such conduct action that enables MEPA. impairment destruction of a that a violation in Nemeth11 Court observed This facie claim support prima can procedure permitting ‘not facie case is prima A “plaintiffs under MEPA. but also degradation restricted to actual as to the environment damage encompasses probable ” v Mason Co Nemeth, 25, quoting Ray supra at well.’ 294, 309; 224 883 Comm’r, Drain NW2d 393 control and sedimentation In the soil erosion control stan- act,12 pollution created a Legislature through enforced Court held could be dard that this Nemeth, supra MEPA. at 35. more protec- to make the SDMA Legislature

The chose than the soil erosion of the environment tive already explained,13 control act. As sedimentation of critical any mining Legislature determined destruc- unacceptable entities is an ineligible dunes Hence, majority’s tion of this natural resource. is unrelated to conduct eligibility conclusion that hypertechnical an artificial and bifurcation premised on concluding When permitting process. of the conduct, majority buries eligibility is unrelated to its head in the sand. eligibility of the review as an

Its characterization language is not based on the inquiry”14 “initial in MCL are as criteria 324.63702 eligibility statute. in critical sand dune engage much a condition to through §§ 63704 63706. requirements as followed hierarchy enact a or order to be SDMAdoes not Unlike this reviewing permit application. those 11 nSee 3. seq. et MCL 324.9101 13 Supra beginning at 530. Ante at 515. 471 MICH Dissenting Opinion by Kelly, J. Nemeth, Court’s recent decision in here the majority reads to” out of the “likely statute. *23 that an into the effect on majority argues inquiry proposed mining

the environment of the “would be pointless unless first determined that DEQ applicant eligible permit on the basis of the applicant’s status.” Ante at 515. agree We could not pointless more. It would be for the to review the proposed effect of the if mining applicant were for a If ineligible permit. applicant is not no eligible, mining will occur. Critical destroyed. dunes will not be

The majority attempts to restrict the inquiry into TechniSand’s conduct to consideration of the nature its to the at relationship property issue. This is mislead- in ing.15 question The conduct more is than Tech- niSand’s “relationship mining to the property.” It nec- essarily encompasses TechniSand’s proposal remove large quantities of sand from designated critical dunes that would otherwise remain untouched. This is the “actual conduct” that the permit at issue allows plaintiff that alleges “likely pollute, impair, or destroy” critical dunes under MEPA.

Because the critical dunes could not have been mined by TechniSand at all without the erroneous eligibility determination, plaintiff should be allowed to pursue its cause of action.

Statutory provisions must in be read the context of the entire act produce so as to a harmonious whole. Macomb Co Prosecutor v 149, 159; 464 Mich Murphy, 63702(1) 627 NW2d 247 § Subsections a and b of must be read together because of their juxtaposition. 15 See, e.g., majority’s implicit recognition ante at n 517-518 5. The “[cjountless apply permits entities for and receive for conduct that affects Michigan’s resources,” 522, natural ante at demonstrates the internal inconsistency argument. of its v Dunes Opinion by Dissenting holder seeks applies permit b when Subsection that con- adjacent land to include expand permit July it before critical dune area that owned tains a to the amend- contrast, applies subsection 1989. already authorizes permit of a ment renewal in a area. particular authorized to TechniSand permit issued had to dune areas. TechniSand in the noncritical only adjacent amendment to add the for a apply Therefore, subsection b critical dune areas to its own However, TechniSand did not to this case. applies to mine the sand before 1989 as rights the land or the Therefore, it could not have by the statute. required and could not have amendment obtained any mining. critical sand dune engaged ac- impact statement16 TechniSand’s *24 the critical dunes at issue knowledged mining the environment would “significantly impair would 269. destroy App critical dune.” 253 permanently that the testified from the statement Witnesses in the environ- change “the nature of result will “large years”17 percent ... for hundreds of ment expert critical dune removed.”18Plaintiffs will be gone.”19 testified that “The critical dune will be Nonetheless, that the deter- majority holds DEQ’s to mine critical eligible mination that TechniSand is 16 citing majority “not in the record.” me for a document The criticizes trial, However, Ante at 522. 21 at and witnesses read from it was Exhibit 122, 582, 785, appeal in the Tr and 932. Plaintiffs brief on it. See Trial at quoted p appeal all it 6. The record on includes Court of at 7.311(A). original papers Plaintiff included filed in the courts below. MCR 14b) argument excerpt appendix (p before to its brief on oral an this Court. See MCR 7.308. at Trial Tr 935. 18 Id. at 785.

19 Id. at 122. 471 Mich 508 Dissenting Opinion

dunes is unrelated to whether TechniSand’s pollute, activities will impair, destroy a natural Thus, resource. it concludes that plaintiff rely cannot on MEPA to challenge permit that has been issued. The majority’s reasoning undermines the critical dunes protections in the the intent of and this SDMA, MEPA, Court’s earlier MEPA decisions.

Plaintiff is not required to challenge issuance of the an as administrative decision under either the Administrative Procedures Act or the Revised (APA) Judicature Act The MEPA is “supplementary to (RJA). existing administrative and regulatory procedures pro- vided law.” MCL 324.1706. It was intended to create a common law of protection. environmental at Ray 306. does require It not plaintiff that a exhaust administra- tive remedies. MCL Accordingly, the statu- tory period of limitations of neither the APA nor the RJA apply plaintiffs MEPA claim.20 challenge Plaintiffs TechniSand’s permit under the is not time-barred. The does not dispute that TechniSand is ineli- gible for Recognizing plaintiffs claim under protection act expresses no disre- spect for an administrative agency’s decision. The ma- jority abdicates its responsibility by refusing review this eligibility determination under MEPA.21 mepa imposes statutory itself period limitations, no but equitable claims under the Natural Resources and Environmental Pro Act, tection which subject houses have six-year been held to the mepa, statutory period Attorney Harkins, MCL 600.5813. General v 257 Mich 564, 571; App 669 NW2d 296 majority Chapter Comm, cites Oscoda Dep’t Action Inc v of PBB *25 Resources, 215, 233; Natural (1978), 403 Mich support NW2d to of finality argument. its quotation But its from the case is taken out of opinion context and garner is from an majority that did not of votes. The authority statement addressed the court’s prudent to consider feasible and proposed conduct, alternatives to entirely an issue unrelated to the majority’s permit challenge decision that this mepa under is time-barred. Dunes v Dissenting Opinion J. Kelly,

CONCLUSION Sand today wrongly insulates majority’s The decision from permit eligibility Act determinations Mining Dune dune The to issue a sand review. decision judicial includes inherently the SDMA pursuant to mining permit I that issu- would hold component. an environmental challenged case can be ance of the this act. Michigan protection to to permit the act Legislature apply intended of the act to deter- Application determinations. entirely Legislature’s with consistent minations dunes stringently Great Lakes sand preserve intent integrity against degradation protect majority’s reasoning environment. frustrates intent. limi- statutory

Plaintiffs cause is not barred of the APA and the RJA. The Court periods tations case of an correctly entry remanded the for Its summary disposition plaintiff. order granting should be affirmed. decision reality majority ignores

Because both the permitting process Legislature’s pro- and the intent destruction, tect critical dune from I must dissent. areas Cavanagh JJ., Weaver, concurred with

Case Details

Case Name: Preserve the Dunes, Inc v. Department of Environmental Quality
Court Name: Michigan Supreme Court
Date Published: Jul 30, 2004
Citation: 684 N.W.2d 847
Docket Number: Docket 122611, 122612
Court Abbreviation: Mich.
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