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Objection to Issuance of NPDES Permit No. ING670052 Elrod Water Com=
pany
d/b/a
2009 OEA 43, (08-W-J-4104)
[2009 OEA 4= 3, page 43 begins]
OFFICIAL S=
HORT
CITATION NAME: When referring to 2009 OEA 43, cite this case as
&nbs= p; Elrod Water Company, 2009 OEA 43.
Topics: &=
nbsp;
Notice of Intent
Motion to Dismiss
point source discharge
wastewater
hydrostatic testing
commercial pipelines
NPDES
notice
construction
water quality
ground water
contamination
well field
petition
river
permit
Presiding Environmental Law Judge= :
Mary L. Davidsen
Party representatives:
IDEM: = Sierra L. Alberts, Esq., Eric L. Wyndham, Esq.
Petitioner: &nb= sp; Peter Campbell King, Esq., Tamara B. Wilson, Esq.; Cline, King & King
Respondent: &nb= sp; Philip B. McKiernan, Esq., Joseph M. Hendel, Esq.; Jackman, Hulett & Cracraft<= span style=3D'mso-tab-count:1'> &= nbsp;
Intervenor:  = ; Eugene A. Stewart, Esq.; Stewart Law Office
Order issued:
June 23, 2009
Index category:
Water
Further case activity:
[none]
[2009 OEA 4= 3, page 44 begins]
STATE OF
&n=
bsp;  =
; &n=
bsp; ) SS: &n=
bsp;  =
; ENVIRONMENTAL
ADJUDICATION
COUNTY OF
IN THE MATTER OF: &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; )
&n= bsp;  = ; &n= bsp;  = ; &n= bsp;  = ; &n= bsp; )
OBJECTION TO ISSUANCE OF = &= nbsp; &nbs= p; &= nbsp; ) &= nbsp;
NPDES PERMIT NO. ING67005= 2 &= nbsp; &nbs= p; &= nbsp; )
ELROD WATER COMPANY d/b/a= &= nbsp; &nbs= p; &= nbsp; )
HOOSIER HILLS REGIONAL WA= TER DISTRICT )
_________________________= _____________________ ) CAUSE NO. 08-W-J-4104
Elrod Water Company d/b/a= &= nbsp; &nbs= p; &= nbsp; &nbs= p; )
Hoosier Hills Regional Wa= ter District, &nbs= p; &= nbsp; &= nbsp; )
Petitioner, &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; )
Rockies Express Pipeline = Co., LLC, &nb= sp; = &nb= sp; )
Respondent/Permi= ttee, &= nbsp; &nbs= p; &= nbsp; &nbs= p; )
Board
Intervenor, &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; )
Indiana Department of Environmental Management, = &nb= sp; )
Respondent &= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; )
FINDINGS OF FACT, CONCLUSIONS OF LAW, and FINAL ORDER
This matter came before t=
he
Office of Environmental Adjudication (“OEA” or “CourtR=
21;)
on Respondent/Permittee’s June 27, 2008 Motion to Dismiss or, In the
Alternative, For Summary Judgment (“Motion”). The parties fully briefed their
positions and the Court heard oral arguments on the Motion. The Chief
Environmental Law Judge (“ELJ”) having considered the petitions,
evidence, and pleadings of the parties, now finds that judgment may be made
upon the record. The ELJ, by
substantial evidence, and being duly advised, now makes the following findi=
ngs
of fact and conclusions of law and enters the following Final Order:
FINDINGS OF FACT
<=
span
style=3D'mso-list:Ignore'>1.&n=
bsp;
On March 4, 2008, Rockies Express Pipeline LLC (=
220;
[2009 OEA 4= 3, page 45 begins]
2.&n=
bsp;
On April 15, 2008, IDEM’s Office of Water
Quality, NPDES Permit Section, issued a “Notice of Decision to Issue a
General Permit” (“Notice”). The Notice stated that National Po=
llution
Discharge Elimination System (“NPDES”) general permit number
ING670052 (“Permit”) had been issued to
3.&n=
bsp;
The Permit allows wastewater discharges associated =
with
a project referred to as “REX East” which involves the construc=
tion
of a 638 mile long natural gas pipeline from
4.&n= bsp; On May 2, 2008, Elrod Water Company, d/b/a Hoosier Hills Regional Water District (“Hoosier Hills”) timely filed its Petition for Administrative Review, Adjudicatory Hearing and Stay of Effectiveness (“Petition”) pursuant to I.C. § 13-15-6-1 et seq., I.C. § 4-21.5-3-1 et seq., and 315 IAC 1-3-1 et seq. On June 10, 2008, the Franklin Cou= nty Board of Commissioners’ Petition to Intervene was granted.
5. The Petition identifies eight (8) proposed issues to be considered by this Cour= t. Petition, pgs. 4-5. The issues identified are:
a. &n= bsp; Whether IDEM criteria for evaluating the impact on water quality in relationship to public water supplies was arbitrary and capricious.
b. &n=
bsp;
Whether IDEM’s criteria for the activity soug=
ht by
c. &n=
bsp;
Whether IDEM’s decision to allow
d. &n= bsp; Whether IDEM’s decision was contrary to law s= ince its Permit conflicts with internal agency guidelines and/or requirements for well field protection.
e. &n= bsp; Whether IDEM provided sufficient findings of fact a= nd conclusions of law when it issued the Permit.
f. &n=
bsp;
Whether Rockies submitted all the information requi=
red
by
g. &n= bsp; Whether IDEM should have denied the Permit due to <= st1:place w:st=3D"on">Rockies’ failure to provide complete informat= ion in the NOI or, in the alternative, required additional information.
h. &n= bsp; Whether the probability of groundwater contamination from the construction activity associated with REX East should have caused = &= nbsp; IDEM to deny the Permit.
[2009 OEA 4= 3, page 46 begins]
These issues
allege that hydrostatic testing of REX East will adversely affect the water
quality of the
6.&n= bsp; On June 27, 2008, Rockies filed its Motion, arguing that Hoosier Hills’ Petition fails to state a claim upon which the Of= fice of Environmental Adjudication (“OEA”) can grant relief and that, even if the pleadings are viewed in a light most favorable to Hoosier Hills, Rockies is entitled to dismissal as a matter of law.
7.&n=
bsp;
Hoosier Hills has not filed an amended petition for
review, nor has it sought additional time to do so. Hoosier Hills did not object to Rockies’ June 27, 2008 filing of Affidavit of James D. Thompson, no=
r did
Hoosier Hills present subsequent evidence contesting information contained =
in
the affidavit.
8.&n= bsp; The parties have agreed to vacate the Case Manageme= nt Orders related to discovery pending a ruling on the Motion before the Court= .
CONCL=
USIONS
OF LAW
1.&n=
bsp;
The Indiana Department of Environmental Management
(“IDEM”) is authorized to implement and enforce specified
2.&n= bsp; This is a Final Order issued pursuant to I.C. § 4-21.4-3-27. Findings of Fact= that may be construed as Conclusions of Law and Conclusions of Law that may be construed as Findings of Fact are so deemed.
3.&n=
bsp;
In this case, Respondent/Permittee Rockies’
Motion challenges both the legal sufficiency of the claim, as a motion to
dismiss, and alternatively challenges the sufficiency of the underlying fac=
ts,
as a matter of law, as a motion to dismiss. Per Trial Rule 12(B)(6), a motion =
to dismiss
tests the legal sufficiency of the claim, not the facts which support it. Trail
v. Boys and Girls Clubs of Northwest Indiana, 845 N.E.2d 130, 134 (
[2009 OEA 4= 3, page 47 begins]
4.&n=
bsp;
In determining the facts at issue on summary judgme=
nt,
this Court must apply a de novo standard of review to this
proceeding.
5.&n=
bsp;
The OEA may enter judgment for a party if it finds =
that
“the pleadings, depositions, answers to interrogatories, and admissio=
ns
on file, together with the affidavits and testimony, if any, show that a
genuine issue as to any material fact does not exist and that the moving pa=
rty
is entitled to judgment as a matter of law.” I.C. &=
sect; 4-21.5-3-23. All facts and inferences must be
construed in favor of the non-movant. Gibson v. , 585 N.E=
.2d
700, 703 - 704 (Ind. Ct. App. 1992).
Further, the Indiana Tax C=
ourt
in Allied Collection Service Inc. v=
. Ind.
Dept. of State Revenue, (Ca=
use
No. 49T10-0608-TA-76, December 22, 2008) stated, “If there is =
any doubt
when ruling on a motion (or motions) for summary judgment as to what conclu=
sion
the Court could reach, the Court will conclude that summary judgment is
improper, given that it is neither a substitute for trial nor a means for
resolving factual disputes or conflicting inferences following from undispu=
ted
facts. See Owens Corning Fiberglass Corp. v. Cobb, 754 N.E.2d 905, 9=
09 (
[2009 OEA 4= 3, page 48 begins]
6.&n=
bsp;
OEA is required to base its factual findings on
substantial evidence. Huffman v. Office of Envtl. Adjud., 811 N.E.2d
806, 809 (Ind. 2004)(appeal of OEA review of NPDES permit); see also=
I.C.
§ 4-21.5-3-27(d). While =
the
parties disputed whether IDEM’s determination of Tanner’s
Creek’s soil movement and site control was proper, OEA is authorized
“to make a determination from the affidavits . . . pleadings or evidence.”=
; I.C. § 4-21.5-3-23(b). “Standard of proof generally=
has
been described as a continuum with levels ranging from a "preponderanc=
e of
the evidence test" to a "beyond a reasonable doubt" test. The
"clear and convincing evidence" test is the intermediate standard,
although many varying descriptions may be associated with the definition of
this intermediate test.” Matter
of
7.&n=
bsp;
In order to issue a NPDES general permit for wastew=
ater
discharge associated with hydrostatic testing of a commercial pipeline, IDE=
M is
limited to consideration of three (3) issues. First, IDEM must determine whether=
the
applicability requirements found in 327 IAC 15-11-3 and 327 IAC 15-2-3 are
satisfied. Generally, these r=
ules
state the existence of NPDES general permits in
8.&n= bsp; Per 327 I= AC 15-11-5(c), requirements for a NPDES general permit for wastewater discharge associated with hydrostatic testing of commercial pipelines are:
Following
submittal of a NOI letter to IDEM and publication in the newspaper by the
person requesting coverage under subsection (b), IDEM shall do the followin=
g:
(1)
Re=
view
the NOI for applicability pursuant to section 3 of this rule and for compli=
ance
with the requirem=
ents
of subsection (a).
(2)
Li=
st
this facility, the NPDES general permit tracking number, and the informatio=
n contained
in this notice in a monthly publication to be distributed by IDEM to all
persons who have asked to receive NPDES general permit rule notification. T=
his
monthly publication shall be issued by IDEM on the fifteenth day of every m=
onth
and shall identify all facilities which met both the NOI and newspaper
publication requirements in the preceding month.
[2009 OEA 4= 3, page 49 begins]
9. In
its Petition, Hoosier Hills disputed the propriety of the criteria IDEM use=
d in
evaluating the impact on the river water quality in relationship to public
water supplies. Petition, p. 4. However, the applicable regulation=
s in
this matter do not require IDEM to consider the impact on water quality.
10. Hoosi=
er
Hills also disputed the propriety of criteria used by IDEM for the project,=
as
arbitrary and technically deficient.
Petition, p. 4. IDEM is required to consider only =
the
criteria listed in 327 IAC 15-11-5(c).&nbs=
p;
OEA may only review an IDEM decision to determine whether it conform=
s to
the standards and requirements established by the Indiana General Assembly =
and
the Water Pollution Control Board. <=
/span>
11. Hoosi=
er Hills
disputed that a permit for hydrostatic testing of an industrial pipeline ca=
n be
granted for discharge into a water body which serves as a public water supp=
ly
source. Petition, p. 4.
However, the applicable regulations in this matter do not require ID=
EM
to consider the nature or function of the water body receiving discharge. See
327 IAC 15-11-5(c). OEA may only review an IDEM
decision to determine whether it conforms to the standards and requirements
established by the Indiana General Assembly and the Water Pollution Control
Board.
12. Hoosi= er Hills also questions whether the Permit approval was contrary to law since = it conflicted with internal agency guidelines and requirements for well field protection. Petition, p. 4. However, the applicable regulations in this matter do not require ID= EM to reconcile its own internal agency guidelines and requirements. See 327 IAC 15-11-5(c). Nor do internal agency guidelines = and requirements supersede the standards and requirements established by= the Indiana General Assembly and the Water Pollution Control Board. As a matter of law, IDEM complied = with applicable regulatory guidance.
[2009 OEA 4= 3, page 50 begins]
13. Hoosi=
er
Hills asserted that the Permit approval was deficient, for lack of including
sufficient findings of fact and conclusions of law. Petition,
p. 4. However, the applic=
able
regulations in this matter do not require IDEM to provide findings of fact =
and
conclusions of law with the Permit approval. See
327 IAC 15-11-5(c). OEA may only review an IDEM
decision to determine whether it conforms to the standards and requirements
established by the Indiana General Assembly and the Water Pollution Control
Board.
14.&=
nbsp; In
its Petition, Hoosier Hills requested review of IDEM’s determination =
that
Rockies submitted all information required by
 = ; In addition to the NOI letter requirements contained in 327 IAC 15-3, a person regulated under this rule must identify in the NOI letter each point source discharge of wastewater associated with the hydrostatic testing of new or existing commercial pipelines. This identification of point source discharge shall include the following:
(= 1) The discharge location of each outfall and its associated receiving stream.
(= 2) The type of wastewater discharged through each outfall.
(= 3) An identifying outfall number. The numbering shall start at 001 for the first outfall, &nbs= p; 002 for the second outfall, and continue in that manner until all outfalls are numbered.
The additional NOI content requirements referred to are found in 327 IAC 15-3-2, which states:
 = ; Except for permittees covered under 327 IAC 15-5 and 327 IAC 15-13 and as provided= in 327 IAC 15-14-4, the NOI letter shall include the following:
(= 1) Name, mailing address, and location of the facility for which the notification is submitted.
(= 2) Standard Industrial Classification (SIC) codes, as defined in 327 IAC 5, up to four = (4) digits, that best represent the principal products or activities provided by the facility.
(= 3) The person's name, address, telephone number, e-mail address (if available), ownership status, and status as federal, state, private, public, or other entity.
(= 4) The latitude and longitude of the approximate center of the facility to the nea= rest fifteen (15) seconds, and, if the section, township, and range are provided, the nearest quarter section in which the facility is located.
(= 5) The name of receiving water, or, if the discharge is to a municipal separate st= orm sewer, the name of the municipal operator of the storm sewer and the ultima= te receiving water.
(= 6) A description of how the facility complies with the applicability requirement= s of the general permit rule.
(= 7) Any additional NOI letter information required by the applicable general permit rule.
[2009 OEA 4= 3, page 51 begins]
(= 8) The NOI letter must be signed by a person meeting the signatory requirements in= 327 IAC 15-4-3(g).
15. As a =
matter
of law, substantial evidence was presented that
16. As a =
matter
of law, substantial evidence shows that
17. As a =
matter
of law,
18. In its
Petition, Hoosier Hills requested review of whether the probability of
groundwater contamination from the construction activity associated with REX
East should have caused IDEM to deny the Permit. Petition,
p. 5. However, the applic=
able
regulations in this matter do not require IDEM to consider the possibility =
of
groundwater contamination. See 327 IAC 15-11-5(c). OEA
may only review an IDEM decision to determine whether it conforms to the
standards and requirements established by the Indiana General Assembly and =
the
Water Pollution Control Board.
[2009 OEA 4= 3, page 52 begins]
19. In
addition, the quality of wastewater discharges allowed by the Permit is
controlled by 327 IAC 15-11-7(b) and other regulations[1]. Hoosier Hills has offered no evide=
nce
that the wastewater discharges will fail to meet those water quality
standards. IDEM presumes that=
any
person that receives a permit will comply with the applicable regulations. =
OEA
may not overturn an IDEM approval upon speculation that the regulated entity
will not operate in accordance with the law. In the Matter of: Objection to the Issuance of Appro=
val
No. AW 5404, Mr. Stephen Gettelfinger,
20. As a =
matter
of law, no relief may be granted for Petitioner Hoosier Hills’ claims=
of
potential economic harm to itself, its customers or to
21. To the
extent that Hoosier Hills challenged the design or construction of the proj=
ect
permitted to
IT IS SO ORDERED in
Hon. Ma= ry L. Davidsen
Chief Environmental Law Judge
[2009 O= EA 43: end of decision]
2009 OEA 43 in .doc format
2009 OEA 43 in .pdf format
=
[1] 327 IAC 15-11-7(b)(2) provides dis=
charge
monitoring for pH levels. 327=
IAC
15-11-7(b)(3) prohibits excessive foam from discharge in receiving waters.<=
span
style=3D'mso-spacerun:yes'> 327 IAC 15-11-7(b)(4) sets dischar=
ge standards
to limit free and settleable solids and, along with 327 IAC 15-11-7-(b)(6),
unsightly or deleterious substances.
Objection to Issuance of NPDES Permit No. ING670052 Elrod Water Com=
pany
d/b/a Hoosier
2009 OEA 43, (08-W-J-4104)