Minnesota Department of Natural Resources appeals ruling against PolyMet Mine

February 13, 2020

The Minnesota Department of Natural Resources (DNR) asked the state Supreme Court to overturn a decision from the Minnesota Court of Appeals in January that rejected some of the most important permits for the proposed PolyMet copper-nickel mine.

The agency said in a statement that the Court of Appeals’ decision could affect future mining proposals, the state's currently operating iron mines and a wide range of other state permit decisions. The agency called the decision “a significant departure from the DNR’s long-standing application of state mining law.”

PolyMet chief executive officer Jon Cherry echoed those statements, saying in a press release, “We are respectfully asking the Supreme Court to right what we believe is a wrong. The court of appeals effectively opened the door to an unpredictable loop of review and additional litigation for Minnesota permittees with its interpretation of the statute,” said Jon Cherry, president and CEO. “The court’s ruling increases uncertainty and permitting time not only for mining projects but also for many other projects in the state that require DNR or MPCA permits

The Associated Press reported that in January, the Court of Appeals ruled that the DNR erred when it declined to order a trial-like proceeding before a neutral administrative law judge known as a “contested case hearing” to gather more information on the potential environmental impacts from the mine. So the court sent PolyMet’s permit to mine and two dam safety permits back to the agency with an order to hold the potentially lengthy proceeding before deciding whether to reissue the permits.

PolyMet’s opponents include the Minnesota Center for Environmental Advocacy, WaterLegacy and the Fond du Lac Band of Lake Superior Chippewa. They hope to use a contested case hearing to argue that the project’s environmental and financial safeguards are inadequate to protect against acid mine drainage or a waste pond dam collapse.

PolyMet says it has proven the project’s safety by navigating the most comprehensive environmental review and permitting process in Minnesota history. It says the project between Babbitt and Hoyt Lakes in northeastern Minnesota will create nearly 360 long-term jobs.

At issue in the DNR and PolyMet appeals is how to properly interpret a state statute that governs when the agency should order contested case hearings, and how much discretion it has to determine when they are or aren’t required.

The DNR said in its announcement that it's not questioning the value of contested case hearings when they would help the agency to resolve a disputed issue of fact.

“However, in this case, we believe the DNR thoroughly considered all of the disputed factual issues, produced substantial findings documenting the basis of our conclusions, and appropriately concluded that holding a hearing would not resolve these disputes,” the agency said.

PolyMet’s attorneys wrote in their petition that if the Court of Appeals’ decision stands, “permitting and environmental review throughout the state will become less predictable and more burdensome.”
 

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