in the supreme court of the state of oregon “previously nonexistent entrained clouds of fine...

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IN THE SUPREME COURT OF THE STATE OF OREGON EASTERN OREGON MINING ASSOCIATION; GUY MICHAEL; and CHARLES CHASE, Petitioners-Appellants, Petitioners on Review, v. DEPARTMENT OF ENVIRONMENTAL QUALITY; DICK PEDERSON, in his capacity as Director of the Department of Environmental Quality and NEIL MULLANE, in his capacity as Administrator of the Water Quality Division of the Department of Environmental Quality, Respondents-Respondents, Respondents on Review. __________________________________________________________ WALDO MINING DISTRICT, an unincorporated association; THOMAS A. KITCHAR; and DONALD R. YOUNG, Petitioners-Appellants, Petitioners on Review, v. DEPARTMENT OF ENVIRONMENTAL QUALITY; DICK PEDERSON, in his capacity as Director of the Department of Environmental Quality and NEIL MULLANE, in his capacity as Administrator of the Water Quality Division of the Department of Environmental Quality, Respondents-Respondents, Respondents on Review. Court of Appeals A156161 S065097 ___________________________________________________________ REPLY BRIEF ON THE MERITS OF PETITIONERS ON REVIEW ___________________________________________________________ Continued

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IN THE SUPREME COURT OF

THE STATE OF OREGON

EASTERN OREGON MINING ASSOCIATION; GUY MICHAEL;

and CHARLES CHASE,

Petitioners-Appellants, Petitioners on Review,

v.

DEPARTMENT OF ENVIRONMENTAL QUALITY; DICK PEDERSON, in

his capacity as Director of the Department of Environmental Quality and NEIL

MULLANE, in his capacity as Administrator of the Water Quality Division of

the Department of Environmental Quality,

Respondents-Respondents, Respondents on Review.

__________________________________________________________

WALDO MINING DISTRICT, an unincorporated association; THOMAS A.

KITCHAR; and DONALD R. YOUNG,

Petitioners-Appellants, Petitioners on Review, v.

DEPARTMENT OF ENVIRONMENTAL QUALITY; DICK PEDERSON, in

his capacity as Director of the Department of Environmental Quality and NEIL

MULLANE, in his capacity as Administrator of the Water Quality Division of

the Department of Environmental Quality,

Respondents-Respondents, Respondents on Review.

Court of Appeals A156161

S065097

___________________________________________________________

REPLY BRIEF ON THE MERITS

OF PETITIONERS ON REVIEW

___________________________________________________________

Continued…

___________________________________________________________

On review of the decision of the Court of Appeals

on appeal from a judgment of the Circuit Court for Marion County

Honorable COURTLAND GEYER, Judge

Opinion filed June 1, 2017 (Per Curiam)

Before Judges REX ARMSTRONG (presiding), JAMES EGAN

and SCOTT SHORR

___________________________________________________________

ELLEN F. ROSENBLUM, #753239

Attorney General

BENJAMIN GUTMAN, #160599

Solicitor General

MICHAEL CASPER, #062000

Senior Assistant Attorney General

1162 Court Street NE

Salem, OR 97301-4096

(503) 378-4402

[email protected]

Attorneys for Respondents on Review

JAMES L. BUCHAL, #921618

Murphy & Buchal LLP

3425 SE Yamhill St., Ste. 100

Portland, OR 97214

(503) 227-1011

[email protected]

Attorney for Petitioners on Review

April 5, 2018

iii

TABLE OF CONTENTS

Summary of Argument ....................................................................................1

Response to the Statement of Facts .................................................................1

Argument .........................................................................................................3

I. RESPONDENTS MAY NOT REGULATE SUCTION DREDGE

MINING UNDER § 402 OF THE CWA ..............................................3

A. The Statute and Rules Unambiguously Confirm that Suction

Dredges Discharge “Dredged Material” and “Fill Material” ......3

B. Respondents Cite Obsolete Regulatory Material ........................6

C. The Permits Support Petitioners, Not Respondents ....................8

1. The Corps permits show the repeated exercise of

Corps jurisdiction ..............................................................8

2. The existing EPA § 402 permits represent error this

Court should not follow ................................................. 11

D. Congress and the U.S. Supreme Court Foreclose any “Two

Discharge” Theory ................................................................... 12

E. Respondents Appeal to the Act’s Purposes in Vain ................ 15

F. Even If Suction Dredges “Add a Pollutant,” They Are

Still To Be Regulated Under § 404 .......................................... 15

Conclusion .................................................................................................... 17

CERTIFICATE OF COMPLIANCE ............................................................ 18

CERTIFICATE OF FILING AND SERVICE ............................................. 19

iv

TABLE OF AUTHORITIES

Cases

Bohmker v. State of Oregon,

No. 16-35262 (9th Cir., argued March 8, 2018) ...................................9

Bordon Ranch Partnership v. U.S. Army Corps of Engineers,

261 F.3d 810 (9th Cir. 2001) .............................................................. 17

Catskill Mountains Chapter of Trout Unlimited, Inc. v. New York,

273 F.3d 481 (2d Cir. 2001) ......................................................... 13, 16

Coeur Alaska, Inc. v. Southeast Alaska Conservation Council,

557 U.S. 261 (2009) ........................................................... 1, 11, 14, 15

L.A. County Flood Control Dist. v. NRDC,

568 U.S. 78 (2013) ............................................................................. 16

NEDC v. EQC,

232 Or App 619 (2009),

rev allowed, 349 Or 56,

rev dismissed, 349 Or 246 (2010) .................................................... 7, 9

Rybachek v. United States,

904 F.2d 1276 (9th Cir. 1990) ........................................................ 7, 17

United States v. Mead Corp.,

533 U.S. 218 (2001) ........................................................................... 12

Federal Statutes

33 U.S.C. § 1311(a) ...................................................................................... 16

33 U.S.C. § 1344(e) .........................................................................................8

33 U.S.C. § 1362(12) .................................................................................... 16

33 U.S.C. § 1362(12)(A) .............................................................................. 13

33 U.S.C. § 1362(14) .................................................................................... 13

v

Federal Regulations

33 C.F.R. § 323.2(d) ..................................................................................... 10

33 C.F.R. § 323.2(d)(2)(i) ................................................................................5

33 C.F.R. § 323.2(e)(1) ....................................................................................6

33 C.F.R.§ 323.2(e)(2) .....................................................................................7

33 C.F.R.§ 323.2(f) ..........................................................................................7

40 C.F.R. § 232.2 .............................................................................................4

Oregon Statutes

ORS 183.484 ....................................................................................................2

Other Authorities

ORAP 5.45 .......................................................................................................4

40 Fed. Reg. 31,319 (July 25, 1975) ................................................................5

51 Fed. Reg. 8,871 (Mar. 14, 1986) ............................................................ 6, 7

53 Fed. Reg. 18,764 (May 24, 1988) ...............................................................7

64 Fed. Reg. 25,120 (May 10, 1999) ...............................................................8

66 Fed. Reg. 4,550 (Jan. 17, 2001) ..................................................................5

67 Fed. Reg. 31,135 (May 9, 2002) .................................................................4

73 Fed. Reg. 79,641 (Dec. 30, 2008) ...............................................................6

82 Fed. Reg. 1,860 (Jan. 6, 2017) ............................................................. 9, 10

1

Summary of Argument

This case does not turn on the “addition of a pollutant” argument. It

turns on the plain language of the Clean Water Act (CWA), current federal

regulations and recent court decisions. These authorities confirm that small,

floating suction dredges discharge “dredged” and “fill” materials regulated

exclusively under § 404 of the Clean Water Act. The outdated Federal Register

materials cited by Respondent represent superseded constructions of the CWA.

The Corps § 404 permits confirm that the Corps has jurisdiction, and

because “the Corps has authority to issue a permit for the discharge under

§ 404, then EPA lacks authority to do so under § 402”. Coeur Alaska, Inc. v.

Southeast Alaska Conservation Council, 557 U.S. 261 (2009). As for EPA,

courts do not defer to agency action inconsistent with controlling legal

authority. Nor is there any consistent pattern of administrative interpretation,

and no other agency attempts, contrary to Coeur Alaska and the design of the

Act, to require duplicative § 402 and § 404 permitting. CWA policies can be

fully achieved through application of § 404, as supplemented by EPA review

and § 401 certification by the State of Oregon.

Response to the Statement of Facts

This case generated an extensive factual record documenting the utter

absence of any appreciable adverse impact on the environment, with

Respondents’ most knowledgeable witnesses unable to articulate any actual

2

harm. Respondents ignore the record in favor of law student opinions. (Resp.

Br. at 3-4.) This violates the record-based review required by ORS 183.484,

and Petitioners ask this Court to ignore the outlandish claims presented. While

“dredged spoil” is a “pollutant” within the meaning of the Act, it borders on

delusional to suggest that small disturbances of materials at the bottom of

Oregon wilderness streams from suction dredging “impact human health”.

(Resp. Br. 4.)

Respondents’ brief is also riddled with factual assertions about suction

dredge mining in an attempt to create the impression that they “create turbidity

plumes . . . that are functionally different than mere dredge material . . .”.

(Resp. Br. 49.) Respondents’ own authority confirms that the dredging

authorized by the Corps

“. . . will temporarily increase water turbidity. Particulates will be

resuspended in the water column during dredging activities. The

turbidity plume will normally be limited to the immediate vicinity of the

disturbance and should dissipate shortly after each phase of the dredging

activity.” (Decision Document, NWP 19, at 51 (RJN71).1)

These facts are true of suction dredging and all dredging. Any dredging

“changes the composition of the material” in the sense Respondents claim and

creates “previously nonexistent entrained clouds of fine sediment”. (Resp.

1 Because Respondents riddled their briefs with misleading references to federal

regulatory materials cited with defective hyperlinks, Petitioners file herewith a

separate Request for Judicial Notice with an index of such materials,

consecutively paginated (and cited) as RJN1-71.

3

Br. 32.). The notion that small-scale suction dredging for gold poses “unique

environmental hazards” is utterly unsupported by the record. (Id.) The only

unique thing about suction dredging is its presence in remote areas, which

presence inflames opposition without regard for the rule of law.

Argument

I. RESPONDENTS MAY NOT REGULATE SUCTION DREDGE

MINING UNDER § 402 OF THE CWA.

A. The Statute and Rules Unambiguously Confirm that Suction

Dredges Discharge “Dredged Material” and “Fill Material”.

Respondents admit that permitting for “dredged or fill material” is

“within the purview of the Army Corps of Engineers under § 404”. (Resp. Br.

25.) They admit that under federal regulations (which they previously ignored),

“the ‘discharge of dredge[d] material’ refers to any ‘addition’ or ‘redeposit’ of

‘material . . . dredged’ from waters of the United States. (Resp. Br. 27.) They

admit that “much, and perhaps even all, of the discharge from suction dredge

mining could reasonably be construed to constitute dredge material within the

meaning of th[e federal] regulations”. (Resp. Br. 32; emphasis deleted.) And

they admit that “the two permitting schemes are mutually exclusive”. (Id.)

These concessions ought to end the case, for no one can reasonably

dispute that what comes off the end of a suction dredge is all “dredged” and

“fill” material. “Fill” means “material placed in the waters of the United States

where the material has the effect of . . . [c]hanging the bottom elevation of any

4

portion of a water of the United States”. 40 C.F.R. § 232.2. In raising the

baseless specter of “smother[ing] breeding areas” (Resp. Br. 33), Respondents

are conceding that these are fill materials, under Corps jurisdiction.

Significantly, “discharge of fill material” includes “placement of

overburden, slurry or tailings or similar mining-related materials”. 40 C.F.R.

§ 232.2; see also 67 Fed. Reg. 31,135 (May 9, 2002) (“any mining-related

material that has the effect of fill when discharged will be regulated as ‘fill

material’”) (RJN40). “Slurry” and “tailings” have typically undergone

“processing” far in excess of what suction dredges do. 2

Respondents nonetheless argue that § 402 jurisdiction covers “a

discharge involving something other than the mere addition or redeposit of

dredged material”. (Resp. Br. 27.) This “something other” is simply the fact

that dredged materials are run immediately through a sluice with riffles in the

bottom to collect the gold before the material falls back into the water. That

materials flow over a sluice, rather than in and out of a bucket dredge, or off a

suction dredge without a sluice, is of no regulatory significance.

More importantly, the federal regulations expressly considered and

covered dredging processes involving “something more”. The regulations

2 ORAP 5.45 does not require Petitioners to raise a different point of error for

each bit of regulatory material they invoke concerning which CWA section

applies. (Cf. Resp. Br. 43 n.17.)

5

specifically exclude from “dredged or fill” material “[d]ischarges of pollutants

into waters of the United States resulting from the onshore subsequent

processing of dredged material,” which are subject to § 402. 33 C.F.R.

§ 323.2(d)(2)(i) (emphasis added). But suction dredging does not involve the

“onshore subsequent processing of dredged material”—they are floating on and

discharging into the water, not sitting on land. As the agencies explained when

adopting this provision, it was intended to cover large sand plants and similar

activities: “Discharges of materials from land based commercial washing

operations are regulated under § 402 of the FWPCA”. 40 Fed. Reg. 31,319, at

31,321 (July 25, 1975) (emphasis added) (RJN2).

In-stream mining is regarded differently, particularly suction dredging.

In its 2001 revisions of the definitions, the agencies repeatedly stated that:

“The Corps and EPA regard the use of mechanized earth-moving

equipment to conduct landclearing, ditching, channelization, in-stream

mining or other earth-moving activity in waters of the United States as

resulting in a discharge of dredged material unless project-specific

evidence shows that the activity results in only incidental fallback.”

66 Fed. Reg. 4,550, passim (January 17, 2001) (RJN13-38). The Corps and

EPA specifically and repeatedly discussed suction dredge mining, explaining

that such mining would ordinarily be regarded as “a discharge of dredged

material,” but that

“. . . some suction dredging operations can be conducted in such a

manner that if the excavating material is pumped to an upland location or

other container outside waters of U.S. and the mechanized removal

6

activity takes place without re-suspending and relocating sediment

downstream, then such operations generally would not be regulated.”

Id. at 4,554 (RJN17); see also id. at 4,562 (RJN25). Conversely, if the

materials are discharged off the back of the dredge and re-suspend and relocate

sediment downstream, they were to be regulated under § 404.3

B. Respondents Cite Obsolete Regulatory Material.

To avoid the plain and controlling language of the regulations and their

history, Respondents reach back to earlier rule-development materials, but these

do not have the force of law, and were later superseded.

The first item cited is a 1986 MOU, premised on a superseded definition

of “fill material” which sought to regulate as fill only “materials discharged for

the primary purpose of replacing an aquatic area or of changing the bottom

elevation of a waterbody”. 51 Fed. Reg. 8,871, 8,871 (Mar. 14, 1986) (RJN4;

emphasis added). That regulation has now been amended to focus on the

“effect of” the material, not the purpose of putting it in the water. 33 C.F.R.

§ 323.2(e)(1). It now specifically includes “overburden from mining,”

including the stream sediments that overlay underwater gold deposits excavated

by suction dredge miners. Id. § 323.2(e)(2); see also id. § 323.2(f) (“placement

3 The “instream mining” language was also included in a now-superseded

“Tulloch II” rule, withdrawn not because of any dispute concerning in-stream

mining, but because of its treatment of “incidental fallback”. See 73 Fed. Reg.

79641, 79643 (Dec. 30, 2008) (RJN43). Petitioners do regard their discharges

as “incidental” in the sense of being too small to merit CWA regulation.

7

of overburden, slurry, or tailings or similar mining-related materials”).

The MOU was expressly intended as an “interim arrangement” pending

further regulation that later superseded it. See 51 Fed. Reg. at 8,871 (RJN4).

The language quoted in NEDC v. EQC, 232 Or. App. 619, 637 (2009), rev.

dismissed, 349 Or. 246 (2010) (see Resp. Br. 28), severely cropped the quote

and mangled the meaning. The entire context of the MOU is regulating added

wastes from onshore plants, not floating in-stream mining operations.

The “processing” theory of Corps Regulatory Guidance Letter No. 88-10

(Resp. Br. 28 (citing NEDC, 232 Or. App. at 637); RJN51)) is also obsolete. It

expired December 31, 1990 (RJN51), and a subsequent Letter warned that

Letter No. 88-10 was “considered inappropriate for program execution”

(RJN53).4

Respondents also cite a 1999 modification of the definition of “discharge

of dredged material” referencing Rybachek v. United States, 904 F.2d 1276 (9th

Cir. 1990), theorizing that the miners may cause an “addition of a pollutant”.

As discussed infra Point I(F), this position is outdated, but need not be resolved

to rule in favor of Petitioners. The case is cited in the context of determining

4 Respondents also claim that EPA’s Final Effluent Limitation Guidelines for

Gold Placer Mining express an intent to regulate under § 402 (Resp. Br. 28

n.11), but the dredge mining involved does not consist of suction dredging at

all, but much larger scale dredging (25,000 to 50,000 cubic yards/year) with

onshore processing generating wastewater. See 53 Fed. Reg. 18,764, 18,777

(May 24, 1988) (RJN8).

8

whether CWA jurisdiction is present at all, not in trying to distinguish between

§ 402 and § 404 jurisdiction. 64 Fed. Reg. 25,120, 25,121 (May 10, 1999)

(RJN10).

C. The Permits Support Petitioners, Not Respondents.

Lacking statute and rule support, Respondents invoke the whims of

permit writers. These materials confirm that the Corps has jurisdiction, making

the challenged permit (and all the non-Corps CWA permits) unlawful.

1. The Corps permits show the repeated exercise of Corps

jurisdiction.

The Corps has repeatedly exercised its CWA § 404(e) authority over

suction dredging to “issue general permits on a State, regional or nationwide

basis for any category of activities involving discharges of dredged or fill

material” because it “determine[d] that the activities in such category are

similar in nature, will cause only minimal adverse environmental effect when

performed separately, and will have only minimal cumulative adverse effect on

the environment”. 33 U.S.C. § 1344(e).

While Respondents note that “California has historically required suction

dredge miners to meet [state law] permitting requirements” (Resp. Br. 6 n.3),

they omit to disclose that until recently, suction dredge mining in California

was expressly covered by a § 404 regional permit issued by the Corps of

9

Engineers, not a § 402 permit. (RJN56-61.)5 More frequently, the Corps

recognized that suction dredging’s effects are too small to be of regulatory

significance. (Resp. Br. 45 (citing NEDC, 232 Or. App. at 641-42).) Again,

Respondents’ staff knew that the Corps had jurisdiction over suction dredging

in Oregon. (See TCF, 8/26/13, Buchal Decl. Ex. 10, at 69-71.)

The Corps did not find that “dredge spoils (apart from the turbid

wastewater) have a de minimis impact and do not require authorization under

§ 404”. (Resp. Br. 46.) The Corps found, under § 404(e), that the “activities

involving discharges of dredged or fill material” (including suction dredging)

have only “minimal adverse environmental effect”.

There is no dispute that even now, Nationwide Permit No. 44 authorizes

“discharges of dredged or fill material into non-tidal waters of the United States

for mining activities” provided, inter alia, that the discharge “must not cause

the loss of more than 300 lineal feet of stream bed . . .”. 82 Fed. Reg. 1,860,

1,994-95 (Jan. 6, 2017) (RJN49-50). That notice to the Corps is now required

merely confirms Corps jurisdiction.

Respondents point out that this permit is now interpreted only to

authorize the discharge of the dredged and fill materials into the waters, not the

5 While California upheld its own ban, a constitutional challenge to Oregon’s

partial ban on suction dredging remains sub judice before the Ninth Circuit.

Bohmker v. State of Oregon, No. 16-35262 (9th Cir., argued March 8, 2018).

10

removal of the material itself (or instream mining). Again, the question raised

by this appeal is who has jurisdiction, and NWP 44 represents an express Corps

exercise of jurisdiction, consistent with all the regulatory authority cited above,

authorizing the discharge of even “transformed” materials left over after

mining.

As for NWP 19, it continues to generally authorize minor dredging of

“no more than 25 cubic yards,” but since this litigation began now states that

“dredged material must be deposited and retained in an area that has no waters

of the United States unless otherwise specifically approved by the district

engineer”. 82 Fed. Reg. at 1988 (RJN48). Nothing in this permit forbids its use

by suction dredgers; the Decision Document Respondents cite says that

“[a]ctivities authorized by this NWP will provide a variety of services that are

valued by society” (RJN70).

The Portland District material Respondents cite again confirms that

discharges into the waters of the United States associated with dredging are

under Corps jurisdiction; it reports that “return water” from dredged materials is

“defined as a discharge of dredged material by 33 CFR Part 323.2(d) and

requires separate authorization from the District Engineer (e.g., by NWP 16)”.

(RJN65.) Under Respondents’ theory, this “return water” would be subject to

EPA jurisdiction.

In short, suction dredging can be conducted within the parameters of

11

NWP 19, with disposal authority provided by NWP 44, upon notice to the

Corps. Even if suction dredging fell between the cracks of current Corps

permits, because “the Corps has authority to issue a permit for a discharge

under § 404 of the CWA, then the EPA lacks authority to do so under § 402 of

the CWA” (Coeur Alaska, 557 U.S. at 274).

2. The existing EPA § 402 permits represent error this

Court should not follow.

Quoting a litigation brief, Respondents explain that EPA determined that

“the nature of small-scale suction dredging lends itself to setting effluent

limitations via the NPDES permit process based on the permit writer’s best

professional judgment” (Resp. Br. 30 n.12). The brief contains no recognition

of the question of § 404 jurisdiction, or that effluent limitations can be imposed

by § 401 certification where appropriate. The policy goal of imposing effluent

limitations thus need not involve § 402 at all and certainly provides no basis for

invading § 404 jurisdiction.

Respondents also cite an EPA “Fact Sheet” that states “the primary

pollutant of concern in the discharges from a suction dredge is suspended

solids” (Resp. Br. 16-17). The Fact Sheet also does not report any agency

consideration of the §§ 402/404 issue. To claim that the plural term

“discharges” in this Fact Sheet vindicates Respondents’ “two discharge” theory

(Resp. Br. 47) is far-fetched; “discharges from suction dredges” means multiple

12

discharges from multiple dredges.

None of the regulatory materials provided by Respondents show that “the

permit writer’s best professional judgment” ever even considered the issue

presented by this Petition: whether the CWA authorizes EPA (or a State) to

seize jurisdiction over some portion of the discharge of dredged or fill

materials. The permits are “beyond the Chevron pale”. United States v. Mead

Corp., 533 U.S. 218, 234 (2001).

D. Congress and the U.S. Supreme Court Foreclose any “Two

Discharge” Theory.

In framing the issue as “whether turbid wastewater from suction dredge

mining is subject to regulation under § 402 of the Clean Water Act” (Resp.

Br. 13), Respondents leap over the question whether it is permissible to take a

single discharge of dredged and fill material and split it into different

components for regulatory purposes.

Respondents ask this Court to uphold the “two discharge” interpretation

(Resp. Br. 36), because only “one ineluctable conclusion” can be drawn from

inconsistent regulatory treatment: either (1) “the EPA and the Corps view the

emissions from suction dredge mining as involving multiple discharges” or (2)

there is “a single discharge none of which is dredge[d] material and all of which

is regulated by 402”. (Resp. Br. 36; but see id. at 45 (“neither agency has ever

said that § 404 is not also implicated by the practice”).)

13

It is certainly not the case that (1) or (2) “must be true”. (Resp. Br. 37.)

The obvious conclusion is that there is a single discharge to be regulated under

§ 404, and the EPA (and thus Respondents) erred by issuing unlawful permits.

Perhaps recognizing that the Court of Appeal’s “two discharge” theory is

unsupportable, Respondents say this Court need not “reach that issue to decide

this case”. (Resp. Br. 37.) But if this Court allows Respondents to insist on

§ 402 permitting, it is adopting the “two discharge” theory, because there is

unquestionably also § 404 jurisdiction which the Corps has exercised.

Respondents invite this Court to defy the Supreme Court on the ground

that nothing in the statutory language forecloses a “two discharge theory”. To

the contrary, Congress focused regulation on a “point source,” a statutorily-

defined term6 inconsistent with multiple discharges. “Discharge of a pollutant”

means “any addition of any pollutant to navigable waters from any point

source”. 33 U.S.C. § 1362(12)(A). Under the CWA, responsibility for the

discharge from a point source is assigned to one agency or the other, but not

both.

Respondents claim that whether a single point source could result in two

different discharges “was simply not at issue” in Coeur Alaska, ignoring its

6 “The term ‘point source’ means any discernible, confined and discrete

conveyance, including but not limited to any pipe, ditch, . . . or vessel or other

floating craft, from which pollutants are or may be discharged.” 33 U.S.C.

§ 1362(14).

14

holdings about the mutually exclusive nature of the permitting regimes. (Resp.

Br. 42.) There, the discharge of the turbid wastewater slurry into the lake was

alleged to require both § 404 and § 402 permitting, and the Supreme Court

expressly rejected the environmentalists’ attempt to layer the § 402 permitting

onto the same single discharge. While EPA did not dispute that the discharge

was fill material, neither can Respondents seriously dispute that the suction

dredged material meets the definition of dredged and fill material here. That

Coeur Alaska had to get a § 402 permit for a different, subsequent discharge has

no bearing on this case.

Allowing agencies to divide each and every discharge of dredged or fill

materials completely defeats the careful structure established by Congress.

Congress intended to draw a simple and practical distinction between the permit

system for toxic industrial pollutants (§ 402) and dredging or filling operations

(§ 404). Respondents’ position is unreasonable, impractical and contrary to the

statute, rules, and Coeur Alaska.

No federal agency has ever issued a single piece of paper articulating the

idea that one can parse a single discharge from a single point source into

multiple discharges—even since the Court of Appeal’s innovation in this regard

nearly nine years ago. It is a proposition utterly incompatible with the CWA

and sound regulatory policy to avoid any “confusing division of permit

authority” (Coeur Alaska, 557 U.S at 277).

15

E. Respondents Appeal to the Act’s Purposes in Vain.

Respondents argue that the invocation of § 402 jurisdiction is

“reasonable” in light of the “Act’s core purpose of protecting the chemical,

physical and biological integrity of the Nation’s waterways”. (Resp. Br. 11).

But all of the environmental protection goals of the CWA can be vindicated

through § 404 permitting, with EPA vetoes, and Oregon State certification

pursuant to § 401. Oregon can and does exercise authority to certify § 404

permits—frequently certifying turbidity impacts orders of magnitude higher

than all suction dredging in Oregon put together.

Appeals to policy cannot create legal ambiguity in the statute or

regulations. They cannot support the notion that two “mutually exclusive”

CWA permitting regimes must be applied to a single discharge from a single

point source, contrary to the plain language of the statute and Coeur Alaska.

The discharges here are discharges of “dredged and fill material” which are to

be regulated exclusively by the Corps.

F. Even If Suction Dredges “Add a Pollutant,” They Are Still To

Be Regulated Under § 404.

Respondents focus upon whether suction dredges are involved in the

“addition of a pollutant,” presumably because the federal cases were until

recently in conflict. This Court should hold that suction dredges are not

creating “any addition of any pollutant” within the meaning of the CWA

16

(33 U.S.C. § 1362(12)) and therefore do not involve “the discharge of any

pollutant” within the meaning of 33 U.S.C. § 1311(a). But the Court need not

reach this question to rule in favor of Petitioners and set aside the permit,

because whether or not suction dredges “add pollutants” within the meaning of

the Act, they are clearly to be regulated under § 404, not § 402.

Respondents acknowledge that other cases involving the release of water

from dams and flood control channels support Petitioners’ position. They claim

that these cases involved “simply moving a pollutant from one part of the

stream to another”. (Resp. Br. 22.) This is untrue: the whole fight here is

about tiny effects arising as streambed materials move downstream, and

opening the sluiceway on a dam or channel can and obviously does cause

tremendous turbidity as materials are flushed downstream (they may even add

dead fish pollutants, in the case of certain hydroelectric dams).

There is simply no cause here to defy the Supreme Court’s simple

formulation: “If one takes a ladle of soup from a pot, lifts it above the pot, and

pours it back into the pot, one has not ‘added’ soup or anything else to the pot”.

L.A. County Flood Control Dist. v. NRDC, 568 U.S. 78, 82-83 (2013) (quoting

Catskill Mountains Chapter of Trout Unlimited, Inc. v. New York, 273 F.3d 481,

492 (2d Cir. 2001)). Whether the soup is in a pot or a flowing river is

irrelevant. The material comes up, runs over a riffle, and falls back into the

water body like falling off a spoon. It falls through the water at various speeds,

17

depending upon the size of the particles of matter, but nothing is added. The

tiny particles causing turbidity were already there.

Respondents rely primarily on a single-sentence dictum in Rybachek

which they misrepresent as the holding of the case. There were no suction

dredges in Rybachek, and ill-considered dictum concerning the discharge of

materials “originally com[ing] from the streambed itself” (904 F.2d at 1285) is

neither persuasive nor controlling. Nor did Bordon Ranch Partnership v. U.S.

Army Corps of Engineers, 261 F.3d 810, 815 (9th Cir. 2001), really consider

“the specific question of a redeposit of material that causes entrained solids”

(Resp. Br. 22). It is a wetlands case that sheds little light on the issues here.

Conclusion

This Court should set aside General Permit 700PM and remand the cause

to Respondents for further proceedings in compliance with law.

Dated: April 5, 2018.

MURPHY & BUCHAL LLP

/s/ James L Buchal

James L. Buchal, OSB #921618

3425 SE Yamhill Street, Suite 100

Portland, OR 97214

E-mail: [email protected]

Phone: 503-227-1011

Fax: 503-573-1939

Attorney for Petitioners on Review

18

CERTIFICATE OF COMPLIANCE

WITH BRIEF LENGTH AND TYPE SIZE REQUIREMENTS

Brief length

I certify that this brief complies with the word-count limitation in ORAP

5.05 and the word count of this brief is 3,998 words.

Type size

I certify that the size of the type in this brief is not smaller than 14 point

for both the text of the brief and footnotes as required by ORAP 5.05.

Dated: April 5, 2018.

MURPHY & BUCHAL LLP

/s/ James L Buchal

JAMES L. BUCHAL, #921618

3425 SE Yamhill St., Ste. 100

Portland, OR 97214

(503) 227-1011

[email protected]

19

CERTIFICATE OF FILING AND SERVICE

I hereby certify that I electronically filed the foregoing REPLY BRIEF

ON THE MERITS OF PETITIONERS ON REVIEW with the State Court

Administrator, Appellate Courts Records Section, 1163 State Street, Salem, OR

97301, on April 5, 2018.

I further certify that the foregoing REPLY BRIEF ON THE MERITS OF

PETITIONERS ON REVIEW will be served electronically on April 5, 2018, on

the following:

Michael Casper, #062000

Assistant Attorney-in-Charge

Civil/Administrative Appeals

Oregon Department of Justice

1162 Court Street NE

Salem, OR 97301-4096

(503) 378-4402

[email protected]

Attorneys for Respondents on Review

MURPHY & BUCHAL LLP

/s/ James L Buchal

JAMES L. BUCHAL, #921618

3425 SE Yamhill St., Ste. 100

Portland, OR 97214

(503) 227-1011

[email protected]

Attorney for Petitioners on Review