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Facts

  • The case involves an appeal against the New Mexico Water Quality Control Commission's (the Commission) decision to uphold the grant of a discharge permit to New Mexico Copper Corporation (N.M. Copper) for the Copper Flat Mine in Sierra County, New Mexico. The permit, issued by the New Mexico Environment Department (the Department) under the New Mexico Water Quality Act and its implementing regulations, allows N.M. Copper to discharge a significant volume of tailings slurry and other waste materials into a lined impoundment and regulates discharges from various mine units. The mine, a historic open pit copper mine, is located adjacent to Hillsboro Ranch Properties and the Ladder Ranch, collectively referred to as the Ranches (paras 1, 4-5).

Procedural History

  • [Not applicable or not found]

Parties' Submissions

  • Petitioner-Appellant Elephant Butte Irrigation District and the Ranches: Argued that the Commission failed to consider the broader implications of "undue risk to property," which should encompass the mine's impact on both water quality and quantity. They presented evidence of an undue risk to their properties from both contamination and depletion (paras 10-11, 14).
  • Respondent-Appellee New Mexico Water Quality Control Commission and Intervenors-Appellees New Mexico Copper Corporation and New Mexico Environment Department: Defended the Commission's decision, asserting that the discharge permit's scope is limited to regulating discharges from the mine and does not authorize or permit water usage. They argued that the permit does not pose an undue risk to property and that the future pit lake at the mine site does not constitute a surface water of the state subject to water quality standards (paras 12-13, 23-24).

Legal Issues

  • Whether the Commission acted arbitrarily, capriciously, or otherwise not in accordance with the law in upholding the grant of the discharge permit to N.M. Copper.
  • Whether the Commission's interpretation of "undue risk to property" was correct and whether it adequately considered the potential impacts of the mine's operation on water quality and quantity.
  • Whether the future pit lake at the Copper Flat Mine constitutes a surface water of the state subject to water quality standards under the New Mexico Water Quality Act (paras 7, 21).

Disposition

  • The Court of Appeals affirmed the Commission's decision to uphold the grant of the discharge permit to N.M. Copper, finding that the Commission did not act arbitrarily, capriciously, or otherwise not in accordance with the law (para 26).

Reasons

  • The Court of Appeals, per Chief Judge Hanisee, with Judges Bogardus and Medina concurring, held that the Commission's decision was not arbitrary, capricious, or otherwise not in accordance with the law. The court found that the scope of "undue risk to property" as considered by the Commission was appropriate and limited to the discharge permit's regulatory framework, excluding considerations of water usage or depletion. The court also agreed with the Commission's determination that the future pit lake does not constitute a surface water of the state, as it is located entirely on private land and will not combine with other surface or groundwater, thus not subject to the Act's water quality standards. The court deferred to the Commission's expertise in interpreting its regulations and found substantial evidence supporting the Commission's findings regarding the lack of undue risk to property and the classification of the pit lake (paras 10-25).
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