Petition for Writ of Certiorari — Eastern Oregon Mining Association, et al., Petitioners v. Oregon Department of Environmental Quality, et al.

Supreme Court briefDec 20, 2019

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Appendix A-1

FILED: July 25, 2019

IN THE SUPREME COURT OF

THE STATE OF OREGON

EASTERN OREGON MINING ASSOCIATION;

Guy Michael; and Charles Chase,

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 on Review.

(CC 10C24263)

WALDO MINING DISTRICT,

an unincorporated association;

Thomas A. Kitchar; and Donald R. Young,

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 on Review.

(CC 11C19071) (CA A156161) (SC S065097)

On review from the Court of Appeals. *

On appeal from the Marion County Circuit Court, Courtland

Geyer, Judge. 285 Or App 821, 398 P3d 449 (2017).

*

Appendix A-2

Argued and submitted May 10, 2018.

James L. Buchal, Murphy & Buchal, LLP,

Portland, argued the cause and filed the briefs for

petitioners on review.

Michael A. Casper, Assistant Attorney General,

Salem, argued the cause and filed the brief for

respondents on review. Also on the brief were Ellen

F. Rosenblum, Attorney General, and Benjamin

Gutman, Solicitor General, Salem.

Before Walters, Chief Justice, and Balmer,

Nakamoto, Flynn, Duncan, and Nelson, Justices, and

Kistler, Senior Judge pro tempore. **

KISTLER, S.J.

The decision of the Court of Appeals is affirmed.

Balmer, J., dissented and filed an opinion.

Garrett, J., did not participate in the consideration or decision

of this case.

**

Appendix A-3

KISTLER, S. J.

The Clean Water Act, 33 USC §§ 1251-1388,

prohibits the discharge of any pollutant into the

waters of the United States unless the Environmental

Protection Agency (the EPA) or the Army Corps of

Engineers (the Corps) has issued a permit authorizing

the discharge. 33 USC §§ 1311(a), 1342, 1344. Acting

under authority delegated by the EPA, the Oregon

Department of Environmental Quality (DEQ) issued a

general permit in 2010 for the discharge of certain

pollutants resulting from suction dredge mining.

Petitioners filed this proceeding arguing, among other

things, that only the Corps has authority under the

Clean Water Act to permit the discharge of materials

resulting from suction dredge mining. The Court of

Appeals disagreed and affirmed the trial court’s order

upholding DEQ’s permit. Having allowed review, we

now affirm the Court of Appeals decision.

As applicable here, suction dredge mining involves

using a small motorized pump mounted on a boat to

“vacuum up” water and sediment from stream and

river beds. 1 The water and sediment are passed over

a sluice tray, which separates out heavier metals, such

as gold, and the remaining material is then

discharged into the water. In addition to discharging

the leftover sediment and water, suction dredge

mining creates a turbid wastewater plume and can

remobilize pollutants, such as mercury, that

Small suction dredge mining is a type of in-stream placer

mining. See Nadia H. Dahab, Muddying the Waters of Clean

Water Act Permitting: NEDC Reconsidered, 90 Or L Rev 335, 33839 (2011) (discussing placer mining generally and small suction

dredge mining).

1

Appendix A-4

otherwise would have remained undisturbed and

relatively inactive in the sediment.

This litigation began when DEQ’s predecessor, the

Oregon Environmental Quality Commission (EQC),

issued a general permit in 2005 authorizing suction

dredge mining in Oregon as long as that activity met

certain water quality standards. See Northwest

Environmental Defense Center v. EQC, 232 Or. App.

619, 223 P.3d 1071 (2009). The 2005 permit was

challenged by both miners and environmentalists. In

considering those challenges, the Court of Appeals

reviewed regulations promulgated by the Corps and

the EPA, as well as those agencies’ application of the

regulations to suction dredge mining. See id. at 63142, 223 P.3d 1071. Based on that review, the Court of

Appeals concluded that the process of suction dredge

mining created both turbid wastewater plumes and

dredged spoil. Id. at 643-44, 223 P.3d 1071. It

reasoned that turbid wastewater plumes are

pollutants that may not be discharged into navigable

water without a permit from the EPA (or a state

agency to which the EPA has delegated its permitting

authority) while dredged spoil constitutes dredged

material that requires a permit from the Corps before

it may be discharged. Id. at 644-45, 223 P.3d 1071.

Both sides sought review of that decision. After

this court allowed review, the 2005 permit expired,

and the case was dismissed as moot. See Northwest

Environmental Defense Center v. EQC, 349 Or. 246,

245 P.3d 130 (2010). In 2010, DEQ issued a new fiveyear permit for suction dredge mining that complied

with the distinction that the Court of Appeals had

drawn in NEDC. See Eastern Oregon Mining Assoc. v.

DEQ, 285 Or. App. 821, 826, 398 P.3d 449 (2017).

Appendix A-5

Petitioners challenged the 2010 permit, which expired

while the case was pending in the Court of Appeals,

and the Court of Appeals dismissed the case as moot.

Eastern Oregon Mining Assoc. v. DEQ, 273 Or. App.

259, 361 P.3d 38 (2015). This court reversed that

decision, reasoning that the issue was capable of

repetition yet evading review. Eastern Oregon Mining

Association v. DEQ, 360 Or. 10, 376 P.3d 288 (2016).

We remanded this case to the Court of Appeals so that

it could consider whether to exercise its discretion to

hear one or more of the issues that petitioners sought

to raise.

On remand, the Court of Appeals exercised its

discretion to consider petitioners’ first assignment of

error—whether DEQ, acting under authority

delegated by the EPA, legally could issue a permit for

suction dredge mining. EOMA, 285 Or. App. at 833,

398 P.3d 449. The Court of Appeals did not exercise its

discretion to consider petitioners’ other assignments

of error. Id. at 834, 398 P.3d 449. Specifically, it did

not exercise its discretion to consider petitioners’ third

assignment of error claiming that DEQ’s factual

findings were not supported by substantial evidence.

Id. Focusing only on the legal issues raised by the first

assignment of error, the Court of Appeals adhered to

its decision in NEDC; more specifically, it considered

and rejected the grounds that petitioners raised for

reconsidering that decision. Id. at 838-39, 398 P.3d

449. We allowed review to consider the single

assignment of error that the Court of Appeals decided.

Before turning to that assignment of error, we note

that neither petitioners nor the state disputes that the

material discharged as a result of suction dredge

mining constitutes a “pollutant” for the purposes of

Appendix A-6

the Clean Water Act. That act provides that

“pollutant” means, among other things, “dredged

spoil,” “rock,” and “sand.” 33 USC § 1362(6). The

parties’ dispute arises over which agency (the EPA or

the Corps) has authority under the Clean Water Act

to permit the discharge of those pollutants into the

waters of the United States. Petitioners raise

essentially two arguments on that issue. They argue

initially that suction dredge mining does not come

within the EPA’s authority because that activity does

not entail the “discharge” or “addition” of a pollutant

to the water. They argue alternatively that, even if

discharging material resulting from suction dredge

mining adds a pollutant to the waters of the United

States, the discharge is “dredged material,” which the

Corps has exclusive authority to permit. We begin

with petitioners’ first argument.

I. ADDITION OF A POLLUTANT

Petitioners’ first argument starts from the

proposition that the EPA’s permitting authority

applies only to the “discharge of a pollutant,” and they

note that the statutory phrase “discharge of a

pollutant” is defined as “any addition of any pollutant

to navigable waters from any point source.” 33 USC

§ 1362(12). Petitioners contend that, because suction

dredge mining does not add anything to the water that

was not already there, there is no addition of any

pollutant and thus no discharge of a pollutant for the

EPA to permit.

Petitioners’ first argument is problematic. Almost

30 years ago, the United States Court of Appeals for

the Ninth Circuit held that, “even if the material

discharged [as a result of placer mining] originally

comes from the streambed itself, [the] resuspension [of

Appendix A-7

the material in the water] may be interpreted to be an

addition of a pollutant under the [Clean Water] Act.”

Rybachek v. EPA, 904 F.2d 1276, 1285 (9th Cir 1990);

accord National Mining Assoc. v. Army Corps of

Engineers, 145 F.3d 1399, 1406 (DC Cir 1998)

(reaffirming Rybachek while holding that the

“addition” of a pollutant does not include incidental

fallback of dredged material). As we read Rybachek,

the court recognized that the statutory term

“addition” is ambiguous, and it deferred to the EPA’s

reasonable conclusion that the suspension of solids

resulting from placer mining—a practice that includes

suction dredge mining—constitutes the “addition” of a

pollutant within the meaning of the Clean Water Act.

Since Rybachek, the EPA has confirmed that

conclusion. In 2018, in responding to comments

regarding the reissuance of a general permit for

suction dredge mining in Idaho, the regional office of

the EPA reaffirmed that the suspension of solid

materials caused by suction dredge mining constitutes

the “addition” of a pollutant to the water. EPA,

Response to Comments on Idaho Small Suction

Dredge General Permit 5 (May 2018). 2 Similarly, the

EPA explained in response to another comment:

“If, during suction dredging, only water was

picked up and placed back within the same

waterbody, the commenter would be correct that

no permit would be necessary. See South Florida

Water Management Dist. v. Miccosukee Tribe of

Indians, 541 U.S. 95 [124 S.Ct. 1537, 158

2 Both petitioners and the state ask us to take judicial notice of

various documents, permits, and explanations that the Corps

and the EPA have issued. We do so.

Appendix A-8

L.Ed.2d 264] (2004). However, in suction

dredging, bed material is also picked up with

water. Picking up the bed material is in fact the

very purpose of suction dredging—the bed

material is processed to produce gold. This

process is an intervening use that causes the

addition of pollutants [rock and sand, see CWA

§ 502(6) ] to be discharged to waters of the

United States.”

Id. at 6 (bracketed material in original).

We also note that, when the EPA reissued a

general permit for suction dredge mining in Idaho in

2018, it prohibited suction dredge mining that

resulted in visible turbidity “above background

[levels] beyond any point more than 500 feet

downstream of the suction dredge operation,” directed

operators to avoid “concentrated silt and clay,” which

could cause “a significant increase in suspended solids

resulting in increased turbidity and downstream

sedimentation,” and provided that, if mercury is found

during suction dredge mining, the operator must stop

suction dredge mining “immediately if that is the only

way to prevent remobilization of the collected

mercury.” EPA, General Permit for Small Suction

Dredge Miners in Idaho 19-20 (April 25, 2018). Those

restrictions reflect the EPA’s considered conclusion

that suction dredge mining can result in the addition

of pollutants to navigable waters in the form of

suspended solids and “remobilized” heavy metals.

Beyond that, the Corps and the EPA have issued

numerous regulations in which they have recognized

that redepositing materials dredged from stream and

river beds constitutes a regulable discharge or

addition of a pollutant. See, e.g.,

Appendix A-9

(2001); 40 Fed Reg 31321 (July 25, 1975) (explaining

the types of redeposits of dredged material that would

constitute a “discharge of dredged material” under the

regulations). 3 Those regulations implementing the

Clean Water Act, as well as the agencies’ consistent

interpretation of them, warrant deference as a matter

of federal law. See Coeur Alaska, Inc. v. Southeast

Alaska Conservation Council, 557 U.S. 261, 277-78,

129 S. Ct. 2458, 174 L. Ed. 2d 193 (2009) (setting out

standards for deferring to agency regulations that

interpret ambiguous statutes and the agencies’

interpretation of their own regulations).

Petitioners contend, however, that Los Angeles

County Flood Control District v. Natural Resources

Defense Council, 568 U.S. 78, 133 S. Ct. 710, 184 L.

Ed. 2d 547 (2013), requires a different conclusion. In

that case, the Court reaffirmed that “the transfer of

polluted water between ‘two parts of the same water

body’ does not constitute a discharge of pollutants

under the [Clean Water Act].” Id. at 82, 133 S. Ct. 710

(summarizing South Florida Water Management

District v. Miccosukee Tribe of Indians, 541 U.S. 95,

109-112, 124 S. Ct. 1537, 158 L. Ed. 2d 264 (2004)). As

the Court explained, “no pollutants are ‘added’ to a

water body when [polluted] water is merely

transferred between different portions of the same

3 Both the Corps’ and the EPA’s permitting authority extends

only to the discharge of pollutants into navigable water. See

33 USC §§ 1342, 1344. If the EPA lacks authority to issue a

permit for the pollutants resulting from suction dredge mining

because there is no addition of pollutants to the water, then the

Corps lacks that authority too—a conclusion that is contrary to

numerous regulations issued by the Corps treating the redeposit

of dredged material into navigable waters as the addition of a

pollutant.

Appendix A-10

water body.” Id. In this case, by contrast, the EPA

reasonably could find that suction dredge mining does

more than “merely transfe[r]” polluted water from one

part of the same water body to another. Rather, the

EPA reasonably could find that suction dredge mining

adds suspended solids to the water and can

“remobilize” heavy metals that otherwise would have

remained undisturbed and relatively inactive in the

sediment of stream and river beds. We agree with the

Oregon Court of Appeals that the reasoning in Los

Angeles County Flood Control District and Miccosukee

does not call Rybachek’s holding into question. To be

sure, a federal Court of Appeals decision does not bind

a state court interpreting federal law. 4 However, we

agree with Rybachek that the EPA reasonably has

concluded that the suspension of solids and the

remobilization of heavy metals resulting from suction

dredge mining constitutes the “addition” of a pollutant

that requires a permit under the Clean Water Act.

II. POLLUTANTS RESULTING FROM

SUCTION DREDGE MINING

Petitioners mount a second, more substantial

argument. They contend that, even if suction dredge

mining adds pollutants to the water, the material

discharged as a result of suction dredge mining

constitutes “dredged material” over which the Corps

has exclusive permitting authority. 5 Petitioners

Only the United States Supreme Court’s interpretations of

federal law bind state courts.

4

5 Petitioners suggest that the material discharged as a result of

suction dredged mining can be viewed alternatively as “fill

material,” over which the Corps also has exclusive permitting

authority. See 33 USC § 1344. Petitioners, however, did not raise

that issue before the Court of Appeals and may not raise it here

Appendix A-11

recognize that the Clean Water Act does not define the

phrases “dredged * * * material” or the “discharge of

dredged * * * material,” but they argue that the

regulations implementing the Act necessarily lead to

the conclusion that material discharged as a result of

suction dredge mining qualifies as “dredged material.”

The state, for its part, argues that the EPA reasonably

has concluded that suction dredge mining results in

the discharge of processed waste that is subject to the

EPA’s permitting authority. In the state’s view, the

statutes and the implementing regulations are

ambiguous on that issue; that is, the state recognizes

that the material discharged as a result of suction

dredge mining reasonably could be characterized

either as dredged material or processed waste. The

state maintains, however, that, in interpreting and

administering their regulations, the Corps and the

EPA reasonably have concluded that the material is

processed waste subject to the EPA’s permitting

authority rather than unprocessed dredged material

subject to the Corps’ permitting authority and that we

should defer to those agencies’ reasonable

interpretation.

In considering the parties’ arguments, we note, as

a preliminary matter, that the United States Supreme

Court addressed a related but separate question in

Coeur Alaska. Because that decision resolves some of

the issues in this case, we begin by briefly describing

as a basis for reversing the Court of Appeals decision. Moreover,

even if they had raised it, we note that petitioners’ argument is

difficult to square with the preamble to the current regulatory

definition of “fill,” which the Court quoted in Coeur Alaska. See

557 U.S. at 289, 129 S.Ct. 2458 (quoting 67 Fed Reg 31135

(May 9, 2002)).

Appendix A-12

the Court’s reasoning in Coeur Alaska. The initial

issue in Coeur Alaska was whether the EPA or the

Corps had authority under the Clean Water Act to

issue a permit for the discharge of mining slurry into

a lake. 557 U.S. at 273, 129 S.Ct. 2458. Coeur Alaska

planned to use a process known as “froth flotation” to

remove gold bearing minerals from rock taken from a

defunct gold mine; specifically, it planned to churn

crushed rock from the mine in chemically treated

water, which would cause gold-bearing minerals in

the rock to rise to the surface of the water. Id. at 267,

129 S.Ct. 2458. After skimming off those minerals, the

company planned to discharge the resulting slurry

(the leftover rock and chemically treated water) into a

lake, where the mine tailings would sink to the bottom

of the lake and the chemically treated water would be

purified before it left the lake and drained into an

adjacent creek. 6 Id.

Given regulations issued by both the EPA and the

Corps, no party in Coeur Alaska disputed that the

slurry constituted “fill,” which was subject to the

Corps’ permitting authority. Id. at 275, 129 S Ct 2458;

see 33 USC § 1344(a) (authorizing the Corps to issue

permits for the discharge of “dredged or fill material”).

There were two discharges that required a permit in Coeur

Alaska. The first involved the discharge of slurry into the lake.

The second involved the discharge of the purified water from the

lake into the adjacent creek, which was a separate water body.

Cf. Los Angeles County Flood Control District, 548 US at 82

(explaining that the transfer of polluted water from one part of a

water body to another part of the same water body would not

implicate the Clean Water Act). The parties disagreed in Coeur

Alaska whether the EPA or the Corps had authority to issue a

permit for the first discharge. They agreed that the EPA had

exclusive permitting authority over the second discharge.

6

Appendix A-13

However, there was also no dispute that the

chemically treated slurry constituted a “pollutant”

that was subject to the EPA’s permitting authority.

See 33 USC § 1342(a)(1) (authorizing the EPA to issue

permits for the discharge of pollutants other than

dredged or fill material). The Court concluded that, in

those circumstances, the Clean Water Act gave the

Corps sole authority to issue a permit for the

discharge of the slurry into the lake. 557 U.S. at 27374, 129 S.Ct. 2458. 7 The Court then turned to a second

issue, which this case does not present; specifically,

the Court considered the extent to which the Corps

had to follow or, at a minimum, accommodate the

water quality standards that the EPA had established

for froth flotation mining in deciding whether to

permit discharging the slurry into the lake. Id. at 27791, 129 S Ct 2458.

As relevant here, Coeur Alaska holds that, if a

single discharge constitutes “dredged or fill material”

and another “pollutant,” only the Corps has authority

under the Clean Water Act to issue a permit

authorizing the discharge of that material into

navigable water. As noted, this case differs from Coeur

Alaska primarily in one respect. Although no party

disputed that the slurry in Coeur Alaska constituted

In reaching that conclusion, the Court relied on the text of

section 402(a)(1), which gave the EPA permitting authority over

pollutants “[e]xcept as provided in” section 404 of the Act—the

section that gave the Corps permitting authority over dredged

and fill material. (Sections 402 and 404 are the Public Law

sections, which have been codified respectively as 33 USC § 1342

and 33 USC § 1344.) The Court reasoned that, even if the

statutory text was ambiguous, EPA’s regulations reasonably

established that the Corps had exclusive permitting authority

over dredged or fill material. Coeur Alaska, 557 U.S. at 273-74,

129 S.Ct. 2458.

7

Appendix A-14

“fill,” which was subject to the Corps’ permitting

authority, the parties in this case disagree whether

the material discharged as a result of suction dredge

mining constitutes “dredged material” over which the

Corps has permitting authority or processed waste

over which the EPA has permitting authority.

Coeur Alaska teaches that, if Congress has not

spoken directly to that issue, then the Corps and the

EPA’s reasonable interpretation of the Clean Water

Act both in issuing regulations and interpreting their

regulations is entitled to deference in determining

whether a discharge constitutes “fill,” “dredged

material,” or some other “pollutant.” See id. at 277-78,

129 S Ct 2458 (describing when the agencies’

regulations and interpretation of their regulations

will bear on the meaning of the Clean Water Act). As

Justice Breyer explained, the majority opinion in

Coeur Alaska:

“recognizes a legal zone within which regulating

agencies might reasonably classify material

either as ‘dredged or fill material’ subject to

[regulation under section 404 of the Clean Water

Act by the Corps] or as a ‘pollutant’ subject to

[regulation under section 402 of the Clean Water

Act by the EPA]. Within this zone, the law

authorizes the environmental agencies to

classify material as one or the other, so long as

they act within the bounds of the relevant

regulations, and provided that the classification,

considered in terms of the purposes of the

statutes and relevant regulations, is reasonable.”

Id. at 291-92 (Breyer, J., concurring) (citations

omitted); see also id. at 295-96, (Scalia, J., concurring

in part and concurring in the judgment) (describing

Appendix A-15

the majority’s opinion as reflecting a form of deference

to the agencies’ interpretation and administration of

the Clean Water Act). Following Coeur Alaska, we

consider the text of the Clean Water Act, the

implementing regulations, and the agencies’

interpretation of those regulations. Finally, we

consider what deference, if any, we owe to the

agencies’ interpretation of the Act and their

regulations.

A. Text

Section 404 of the Clean Water Act authorizes the

Corps “to issue permits, after notice and an

opportunity for a public hearing, for the discharge of

dredged or fill material.” 33 USC § 1344(a). Unlike the

term “pollutant,” the Clean Water Act does not define

what the phrase “discharge of dredged *** material”

means. More specifically, it does not define whether

material that was dredged from navigable water

remains “dredged material” after it has been

processed. And, if processing dredged material can

change its character, the text does not identify the

point at which the processed material becomes a

pollutant other than dredged material that is subject

to the EPA’s rather than the Corps’ permitting

authority.

It follows that the text of the Clean Water Act does

not speak directly to the issue that this case presents;

it does not answer whether the material discharged as

a result of suction dredge mining is “dredged material”

over which the Corps has permitting authority or

some other pollutant over which the EPA has

permitting authority. We accordingly turn first to the

regulations promulgated to implement the Act and

then to the agencies’ interpretation and application of

Appendix A-16

those regulations. See Coeur Alaska, 557 U.S. at 27778, 129 S.Ct. 2458 (explaining that, if the text of the

Clean Water Act is ambiguous, courts look to the

agencies’ implementing regulations and, if those

regulations are ambiguous, to the agencies’

interpretation and application of their regulations to

determine what the Act means).

B. Regulation and administration

of the Clean Water Act

The regulations issued by the Corps and the EPA

to implement the Clean Water Act do not specifically

address which agency has authority to permit the

discharge of material resulting from suction dredge

mining. However, in later interpreting the

regulations, the Corps and the EPA explained first in

1986 and later in 1990 that the EPA, not the Corps, is

authorized under the Clean Water Act to issue

permits for the discharge of material resulting from

suction dredge mining. More importantly, since that

time, the EPA has issued general permits after notice

and comment for the discharge of material resulting

from suction dredge mining, and the Corps has acted

consistently with the EPA’s permitting authority. As

we discuss below, last year, the EPA reaffirmed that

allocation of authority in issuing a general permit for

suction dredge mining in Idaho.

That regulatory history goes a long way toward

answering the second issue that petitioners raise.

Petitioners, however, argue that regulations adopted

in 1975 and 2001 support their view that the Corps

has exclusive permitting authority. We accordingly

set out the regulatory history in greater (some might

say mind-numbing) detail below. Cf. Save Our Rural

Oregon v. Energy Facility Siting, 339 Or. 353, 363, 121

Appendix A-17

P.3d 1141 (2005) (providing similar trigger warning).

We begin with the Corps’ promulgation of regulations

defining “dredged material” and the “discharge of

dredged material” in 1975. We then turn to a separate

but related dispute over the difference between “fill”

and “waste,” which led to the Corps’ express statement

in 1990 that the EPA had exclusive authority to

permit the discharge of waste resulting from suction

dredge mining. After that, we consider the EPA’s

efforts from 1999 to 2001 to comply with a federal

decision that “incidental fallback” of dredged material

does not constitute the “discharge of dredged

material,” efforts that petitioners contend led to a

2001 regulation that supports their position. We also

consider the Corps’ 2008 rules, which the dissent

views as dispositive. Finally, we look to the EPA’s and

the Corps’ history of issuing permits for suction

dredge mining.

1. “Dredged material” and the

“discharge of dredged material”

On May 6, 1975, the Corps published four

alternative sets of proposed regulations in response to

a federal district court decision issued less than two

months earlier. See 40 Fed Reg 31320 (July 25, 1975)

(recounting that history). The district court had ruled

that the statutory phrase “navigable waters” to which

the Clean Water Act applies was broader than the

Corps had understood, and it directed the Corps to

adopt final regulations within 30 days (later extended

to 80 days) that applied to “the entire aquatic system,

including all of the wetlands that are part of it, rather

than only those aquatic areas that are arbitrarily

distinguished by the presence of an ordinary or mean

Appendix A-18

high water mark.” See 42 Fed Reg 37124 (July 19,

1977) (recounting the regulatory history).

In carrying out that task, the Corps adopted

definitions of “dredged material” and the “discharge of

dredged material” in 1975 that, in relevant part, have

remained largely unchanged. The regulations defined

“dredged material” as “material that is excavated or

dredged from navigable waters.” 33 CFR §

209.120(d)(4) (1976). That definition, however, did not

add much to the statutory phrase “dredged * * *

material.” The regulatory definition essentially

restated the statutory term and left unanswered

when, if ever, dredged material that has been

processed will become some other form of a pollutant

that is subject to the EPA’s permitting authority

rather than the Corps’.

The 1975 definition of “discharge of dredged

material” shed more light on the issue. It provided:

“The term ‘discharge of dredged material’ means

any addition of dredged material, in excess of one

cubic yard when used in a single or incidental

operation, into navigable waters. The term

includes, without limitation, the addition of

dredged material to a specified disposal site

located in navigable waters and the runoff or

overflow from a contained land or water disposal

area. Discharges of pollutants into navigable

waters resulting from the onshore subsequent

processing of dredged material that is extracted

for any commercial use (other than fill) are not

included within this term and are subject to 402 of

the [Clean Water Act] ***.”

33 CFR § 209.120(d)(5) (1976).

Appendix A-19

Not surprisingly, that definition makes clear that,

if unprocessed dredged material is reintroduced into

navigable water, it remains “dredged material,” which

is subject to the Corps’ permitting authority. In

explaining its proposed regulations, the Corps

observed:

“The types of activities encompassed by this term

[discharge of dredged material] would include

the depositing into navigable waters of dredged

material if it is placed alongside of a newly

dredged canal which has been excavated in a

wetland area. It would also include maintenance

of these canals if excavated material is placed in

navigable waters. Also included is the runoff or

overflow from a contained land or water disposal

area.”

40 Fed Reg 31321 (July 25, 1975). All those activities

focused on the placement of unprocessed dredged

material adjacent to or in navigable waters, and the

commentary to the regulations makes clear that the

Corps’ focus was on the discharge of dredged material

in wetlands. That focus is hardly surprising since the

district court’s order had directed the Corps to include,

for the first time, wetlands as part of the navigable

waters to which the Clean Water Act applies.

The definition of “discharge of dredged material”

also identified an exception to that definition. It

provided that “[d]ischarges of pollutants into

navigable waters resulting from the onshore

subsequent processing of dredged material extracted

for any commercial use (other than fill) are not

included within the term and are subject to section

402 of the [Clean Water] Act.” 33 CFR § 209.120(d)(5)

(1976). In explaining the exception, the Corps stated

Appendix A-20

that “[d]ischarges of materials from land based

commercial washing operations are regulated under

section 402 of the [Clean Water Act]” by the EPA. 40

Fed Reg 31321 (July 25, 1975).

That exception resolves a question that the

statutory text and the regulatory definition of

“dredged material” had left unanswered. The

exception makes clear that the act of processing

dredged material can result in the discharge of a

“pollutant” that requires a permit from the EPA under

section 402 rather than the discharge of “dredged

material” that requires a permit from the Corps under

section 404. 8

Petitioners, however, rely on that exception to

argue that the definition of “discharge of dredged

material” draws a broad distinction between

discharges resulting from processing dredged

material on land, which will be subject to the EPA’s

permitting authority, and discharges resulting from

processing dredged material over water, which will be

subject to the Corps’ permitting authority. 9 Because

8 Dredged material, of course, is a subset of the broader statutory

term pollutant. However, in this context, the exception’s

reference to “pollutants” that are subject to section 402

establishes that the act of processing dredged material can result

in pollutants other than dredged material.

9 In making that argument, petitioners contrast the exception to

the definition of “discharge of dredged material,” which was

enacted in 1975, with a rule defining “incidental fallback,” which

was enacted in 2001 and repealed in 2008. Not only does the

repeal of the 2001 rule call into question the contrast on which

petitioners’ argument depends, but, as explained below,

petitioners misperceive the effect of the 2001 rule. In considering

petitioners’ argument, we analyze the 1975 rule and the repealed

2001 rule separately.

Appendix A-21

dredged material is typically processed over water

during suction dredge mining, it necessarily follows,

petitioners reason, that the material discharged as a

result of suction dredge mining is “dredged material,”

which requires a permit from the Corps rather than

the EPA.

Petitioners’ argument is problematic for at least

two reasons. First, the exception to the definition of

“discharge of dredged material” does not draw the

distinction that petitioners perceive. The exception

does not distinguish between discharges that result

from processing dredged material over water and

discharges that result from processing dredged

material over land. Rather, the exception applies to

discharges from the onshore processing of dredged

material that is extracted for a commercial use. If,

however, dredged material is extracted for some other

use (a recreational one, for example), then the

exception does not apply regardless of whether the

dredged material is processed over land or water. 10

Second, petitioners’ argument depends on drawing

a negative inference from the existence of a single

exception to the definition of “discharge of dredged

material.” That is, petitioners’ argument depends on

the proposition that, by recognizing that discharges

resulting from the onshore processing of dredged

10 To the extent that petitioners intended to draw a distinction

between discharges resulting from onshore and offshore

processing of dredged material extracted for a commercial use,

that distinction does not advance their argument. The EPA has

deemed suction dredge mining a recreational activity, not a

commercial one. See EPA, Response to Comments on Idaho Small

Suction Dredge General Permit at 13 (explaining that the EPA

deemed suction dredge mining as a “recreational activity”).

Appendix A-22

material extracted for a commercial use are pollutants

subject to the EPA’s permitting authority, the rule

implies that all other discharges resulting from

processing dredged material will be dredged material

that is subject to the Corps’ permitting authority.

Apparently, in petitioners’ view, that is true however

the dredged material is processed and regardless of

the type of chemicals that are discharged into the

water as a result of processing.

Ordinarily, the sort of negative inference upon

which petitioners’ argument depends is appropriate

when there is “a series of terms from which an

omission bespeaks a negative implication.” Chevron

U.S.A. Inc. v. Echazabal, 536 U.S. 73, 81-82, 122 S. Ct.

2045, 153 L. Ed. 2d 82 (2002) (declining to infer that,

by identifying a single statutory exception, Congress

had precluded an agency from recognizing other

exceptions). When, as in this case, a statute or a rule

identifies only a single exception, a negative inference

is unlikely. See id. (explaining that the canon of

construction for negative inferences “depends on

identifying a series of two or more terms or things that

should be understood to go hand in hand”). Beyond

that, nothing in the Corps’ explanation for recognizing

the exception suggests that the Corps intended that

all other discharges resulting from land-based and

water-based processing of dredged material would be

subject to the Corps’ rather than the EPA’s permitting

authority.

In our view, the better reading of the 1975

definition of “discharge of dredged material” is as

follows: First, as a general rule, the redeposit of

unprocessed dredged material into navigable water

will constitute the “discharge of dredged material” and

Appendix A-23

require a permit from the Corps. Second, some

onshore processing of dredged materials will result in

discharges of pollutants that require a permit from the

EPA under section 402 rather than the Corps under

section 404. Third, that exception to the definition of

discharge of “dredged material” does not go further

than identifying a single exception. That is, in

recognizing an exception for one category of onshore

processing (discharges from dredged material

extracted for commercial uses), the rule leaves

unanswered whether other categories of water-based

or land-based processing operations will result in the

“discharge of dredged material” that requires a permit

from the Corps under section 404 or the discharge of a

pollutant that requires a permit from the EPA under

section 402. 11 Because the 1975 regulatory definition

11 Although petitioners do not cite it, the EPA promulgated

proposed water quality guidelines for the discharge of dredged or

fill material that, among other things, incorporated the Corps’

definitions of “dredged material” and “discharge of dredged

material.” See 40 Fed Reg 41293, 41297 (Sept 5, 1975). In

responding to comments on the proposed guidelines, the EPA

noted that “many commenters [had] object[ed] to the execution

[sic] of raw material extraction from the section 404 permit

process.” Id. at 41292. It then responded to that concern by

observing that the Corps’ regulatory authority “included”

discharges from material extracted and processed on shipboard

while discharges from “land-based processing are included ***

under section 402 of the Act.” Id. That response provides a

general rule of thumb regarding what each agency’s sphere of

authority “includes,” but it does not define the precise boundary

between them. That much follows from the 1975 definition of

“discharge of dredged material,” which did not assign discharges

from all onshore processing to the EPA. Moreover, as explained

below, both the EPA and the Corps later concluded that the

discharges from suction dredge mining fall within the EPA’s

Appendix A-24

of “discharge of dredged material” either does not

address or does not unambiguously resolve whether

discharges resulting from suction dredge mining are

subject to the Corps’ or the EPA’s permitting

authority, we look to the ways in which the Corps and

the EPA subsequently resolved that issue.

2. Fill and waste

In 1977, the Corps renumbered and amended the

regulations to address issues that had arisen since it

promulgated them two years earlier. See 42 Fed Reg

37122-30 (July 19, 1977). Of relevance here, the Corps

considered when the discharge of “waste materials

such as sludge, garbage, trash, and debris in water”

would constitute “fill” that was subject to the Corps’

permitting authority and when they would constitute

another pollutant that was subject to the EPA’s

permitting authority. Id. at 37130. Initially, the Corps

took the position that the answer to that question

turned on the purpose for which those materials were

discharged into the water. Id. It modified the

definition of “fill” in the 1977 regulations to “exclude

those pollutants that are discharged into water

primarily to dispose of waste,” with the result that the

EPA would have permitting authority over waste

discharged primarily for that purpose while the Corps

would have permitting authority over waste that was

discharged primarily to convert wetlands into dry

land. Id.

In 1986, the EPA and the Corps entered into a

Memorandum of Agreement to resolve a lingering

dispute about the scope of “fill” materials that were

permitting authority, even though the processing occurs over

water.

Appendix A-25

subject to the Corps’ permitting authority. See 51 Fed

Reg 8871 (Mar 14, 1986) (publishing the 1986

agreement). The 1986 agreement was intended to be

an interim measure pending the completion of studies

that were being undertaken to determine the effect of

solid waste disposal on ground water and human

health. Id. Among other things, the 1986 agreement

established criteria to determine when waste would be

considered “fill” subject to the Corps’ authority and

when it would be considered another pollutant subject

to the EPA’s authority. Id. at 8872 (setting out the

agreement).

Paragraph B.4 of the agreement identified four

criteria for determining when waste discharged into

water ordinarily would be regarded as fill subject to

the Corps’ authority. 12 Paragraph B.5 then described

when waste discharged into the water would be

considered a pollutant subject to the EPA’s authority.

It provided:

“‘a pollutant (other than dredged material) will

normally be considered by the EPA and the

Corps to be subject to section 402 [and the EPA’s

permitting authority] if it is a discharge in liquid,

semi-liquid, or suspended form or if it is a

discharge of solid material of a homogenous

12 Factors that bore on whether the material constituted “fill”

were: (1) whether the primary or one principal purpose was to

replace the waters of the United States with dry land or to raise

the bottom elevation; (2) whether the discharge resulted from

activities such as road construction; (3) whether the principal

effect of the discharge was the physical loss or modification of the

waters of the United States; and (4) whether the discharge was

“heterogeneous in nature and of the type normally associated

with sanitary land fill discharges.” 51 Fed Reg 8872.

Appendix A-26

nature normally associated with single industry

wastes, and from a fixed conveyance, or if

trucked, from a single site and set of known

processes. These materials include placer mining

wastes, phosphate mining wastes, titanium

mining wastes, sand and gravel wastes, fly ash,

and drilling muds. As appropriate, EPA and the

Corps will identify additional such materials.’”

Id. (quoting that paragraph of the agreement).

The first sentence in paragraph B.5 identifies the

properties of discharged material that ordinarily will

render the discharge subject to the EPA’s permitting

authority: That is, the sentence asks whether the

discharged materials are liquid, semiliquid, or

suspended, or, if solid, whether they are of a

homogenous nature from a single source. 13 Those

properties were broad enough to include unprocessed

“dredged material,” and, presumably for that reason,

the first sentence of paragraph B.5 expressly excepted

“dredged material” from materials that possess those

characteristics. The second sentence in paragraph B.5

took a different approach to defining which materials

are subject to the EPA’s permitting authority. Instead

of listing the properties of discharged material, the

second sentence listed specific examples of processed

waste that will be subject to the EPA’s authority. Not

only does the second sentence expressly name the

specific types of processed waste over which the EPA

will have permitting authority, but it lists “placer

mining wastes,” which includes waste from suction

As noted above, one criteria for “fill” subject to the Corps’

permitting authority is that the discharge is “heterogeneous in

nature,” as opposed to homogeneous.

13

Appendix A-27

dredge mining, as one of the wastes that will fall

within the EPA’s authority. Put differently, the second

sentence makes clear that placer mining wastes are

pollutants other than dredged material and thus

subject to the EPA’s permitting authority. 14

Four years after the Corps and the EPA issued the

1986 memorandum of agreement, the Corps issued a

regulatory guidance letter that interpreted the 1986

agreement and stated that the material discharged as

a result of placer mining is subject to the EPA’s

exclusive permitting authority. The 1990 guidance

letter stated in full:

“Paragraph B.5 in the Army’s 23 Jan 86

Memorandum of Agreement (M[O]A) with EPA,

concerning the regulation of solid waste

discharges under the Clean Water Act, states

that discharges that result from in-stream

mining activities are subject to regulation under

Section 402 [by the EPA] and not under Section

404 [by the Corps].

14 As petitioners note, the 1986 memorandum of agreement was

not intended to be the last word on “fill” material. Since then, the

Corps and the EPA have redefined fill material as any material

that has the effect of changing the bottom elevation of water. See

Coeur Alaska, 557 US at 268. Despite that fact, in Coeur Alaska,

decided almost 25 years after the 1986 memorandum of

agreement, the Court relied on the fact that the Corps’

permitting decision was consistent with the principles set out in

the 1986 memorandum of agreement in upholding the Corps’

decision to permit Coeur Alaska to discharge slurry into the lake.

See id. at 288 (explaining that “[t]he MOA [the 1986

memorandum of agreement] is quite consistent with the

agencies’ determination that the Corps regulates all discharges

of fill material and that § 306 does not apply to these

discharges”).

Appendix A-28

“Dredged material is that material which is

excavated from the waters of the United States.

However, if this material is subsequently

processed to remove desired elements, its nature

has been changed; it is no longer dredged

material. The raw materials associated with

placer mining operations are not being excavated

simply to change their location as in a normal

dredging operation, but rather to obtain

materials for processing, and the residue of this

processing should be considered waste.

Therefore, placer mining waste is no longer

dredged material once it has been processed, and

its discharge cannot be considered to be a

‘discharge of dredged material’ subject to

regulation under Section 404.”

Corps Regulatory Guidance Letter 88-10 (July 28,

1990). 15

3. Incidental fallback

Before 1993, the Corps excluded “de minimus,

incidental soil movement occurring during normal

dredging operations” from the definition of “discharge

of dredged material.” See National Mining Assoc., 145

F3d at 1401. In response to litigation, the Corps

15 The Corps’ guidance letter expired on December 31, 1990. In

2005, the Corps issued another guidance letter, in which it

explained that some expired guidance letters continue to provide

useful information while others “have been superseded, replaced

or otherwise made obsolete.” Corps Regulatory Guidance Letter

05-06 (Dec 7, 2005). The Corps noted that, although the second

class of regulatory guidance letters provide historical context,

“they are no longer valid.” The Corps did not include the 1990

regulatory guidance letter on a list of expired guidance letters

that continue to provide useful information. See id.

Appendix A-29

removed the de minimus exception in 1993 and

expanded the regulatory definition of “discharge of

dredged material” to include “‘[a]ny addition,

including any redeposit of dredged material, including

excavated material, into waters of the United States.’”

Id. at 1402 (quoting 33 CFR § 323.2(d)(1)(iii) (1993))

(emphasis omitted). Various trade associations

challenged that expanded definition on the ground

that it erroneously included “incidental fallback” that

occurred during dredging. They reasoned that

“incidental fallback” that occurs during the removal of

dredged material does not constitute the discharge—

namely, the addition—of dredged material. Both the

district court and the Court of Appeals for the District

of Columbia Circuit agreed.

The Court of Appeals explained that “incidental

fallback occurs, for example, during dredging, ‘when a

bucket used to excavate material from the bottom of a

river, stream, or wetland is raised and soils or

sediments fall from the bucket back into the water.’ ”

Id. at 1403. The court noted that “[f]allback and other

redeposits also occur during mechanized land

clearing, when bulldozers and loaders scrape or

displace wetland soil.” Id. In holding that such

“incidental fallback” did not require a permit under

the Clean Water Act, the Court of Appeals explained

“that the straightforward statutory term ‘addition’

cannot reasonably be said to encompass the situation

in which material is removed from the waters of the

United States and a small portion of it happens to fall

back.” Id. at 1404. The Court of Appeals accordingly

directed the Corps to exclude “incidental fallback”

from the definition of “discharge of dredged

materials.”

Appendix A-30

In directing the Corps to exclude “incidental

fallback,” the Court of Appeals specifically

distinguished the discharges at issue in Rybachek

from incidental fallback. Id. at 1406. It explained that

Rybachek had:

“held that the material separated from gold and

released into the stream constituted a pollutant,

and, to the extent that ‘the material discharged

originally comes from the streambed itself, [its]

resuspension [in the stream] may be interpreted

to be an addition of a pollutant under the Act.’”

Id. (quoting Rybachek, 904 F2d at 1285) (bracketed

material added by National Mining Assoc.). As the

court explained in National Mining Assoc., Rybachek

addressed “the discrete act of dumping leftover

material into the stream after it had been processed,”

not “imperfect extraction, i.e., extraction accompanied

by incidental fallback of dirt and gravel.” 145 F3d at

1406.

Although the concept of incidental fallback seems

relatively straightforward, defining the concept

proved difficult. The Corps initially declined to define

“incidental fallback” and explained that it would

identify it on a case-by-case basis. See 64 Fed Reg

25120 (May 10, 1999). The next year, the Corps issued

a proposed rule in the form of a rebuttable

presumption that identified the types of mechanized

earth-moving activities that ordinarily would result in

the discharge of dredged material. See 65 Fed Reg

50108, 50111-12 (Aug 16, 2000). Procedurally, the

effect of the proposed rule was to shift the burden of

persuasion to the regulated party to prove that any

discharge was only incidental fallback. Id. After

receiving comments on the proposed rule, the Corps

Appendix A-31

issued a final rule in 2001 that retained the substance

of the presumption but stated that the burden of proof

would not shift. 33 CFR § 323.2(d)(2)(i) (2001). Finally,

in 2008, the Corps repealed the 2001 rule listing the

type of earth moving activities that ordinarily would

result in the discharge of dredged material and simply

excepted “incidental fallback,” without further

explanation, from the definition of discharge of

dredged material. 33 CFR § 323.2(d)(2)(iii) (2008).

Petitioners argue that the 2001 rule demonstrates

that material discharged as a result of suction dredge

mining constitutes “dredged material” over which the

Corps has exclusive permitting authority. 16 We first

set out the relevant terms of that rule and then

explain why we reach a different conclusion.

The 2001 rule sought to define the phrase

“incidental fallback” in two ways: first, by identifying

the types of activities that ordinarily will result in

something more than incidental fallback, 33 CFR

§ 323.2(d)(2)(i) (2001); and second, by providing a

specific definition of the phrase, 33 CFR

§ 323.2(d)(2)(ii) (2001). Section 323.2(d)(2) (2001)

provided:

“(i) The Corps and the EPA regard the use of

mechanized earth-moving equipment to conduct

land clearing, ditching, channelization, instream mining or other earth moving activity in

16 As noted, the part of the 2001 rule on which petitioners rely

has been repealed. We hesitate to rely too heavily on that fact,

however. Neither the 1986 memorandum of agreement or the

Corps’ 1990 guidelines letter on which the state relies are

currently in force. And, as noted above, the Court relied on the

principles stated in the 1986 memorandum in deciding Coeur

Alaska in 2009.

Appendix A-32

waters of the United States as resulting in a

discharge of dredged material unless projectspecific evidence shows that the activity results

in only incidental fallback. This paragraph (i)

does not and is not intended to shift any burden

in any administrative or judicial proceeding.

“(ii) Incidental fallback is the redeposit of small

volumes of dredged material that is incidental to

excavation activity in waters of the United

States when such material falls back to

substantially the same place as the initial

removal. Examples of incidental fallback include

soil that is disturbed when dirt is shoveled and

the back-spill that comes off the bucket when

such small volume of soil or dirt falls into

substantially the same place from which it was

initially removed.”

Petitioners argue that the reference to “in-stream

mining” in paragraph (i) includes suction dredge

mining and, as a result, establishes that suction

dredge mining ordinarily results in the discharge of

dredged material that is subject to the Corps’

permitting authority. Petitioners focus on only half

the sentence. Although “in-stream mining” most likely

includes suction dredge mining, the general rule

stated in paragraph (i) applies only to “the use of

mechanized earth-moving equipment to conduct ***

in-stream mining.” The small shop-vac-like

equipment used to conduct suction dredge mining

hardly qualifies as “mechanized earth-moving

equipment,” unless one views vacuum cleaners and

other small suction devices as “mechanized earthmoving equipment.” Were there any doubt about the

matter, the explanation for the 2001 rule removes it.

Appendix A-33

It explains that the phrase “mechanized earth-moving

equipment” refers to “bulldozers, graders, backhoes,

bucket dredges, and the like.” 66 Fed Reg 4552

(Jan 17, 2001).

More importantly, the point of the rule was to

distinguish large-scale earth moving activities where

any redeposit of unprocessed dredged material into

the water was likely to be a regulable discharge of

dredged material from smaller scale activities where

the redeposit of unprocessed dredged material was

likely to be only “incidental fallback.” The 2001 rule

was not intended to determine, nor did it determine,

whether discharges resulting from processing dredged

material were subject to the Corps or the EPA’s

permitting authority. When both the entire rule and

the reason for promulgating it are considered, we

cannot agree with petitioners that the 2001 rule

signaled a departure from the Corps and the EPA’s

stated position in the 1986 memorandum of

agreement. Similarly, we do not agree with petitioners

that the 2001 rule reflects the Corps’ conclusion that

discharges resulting from processing dredged

material over water, as opposed to processing it over

land, will be automatically subject to the Corps’

permitting authority under section 404.

That same conclusion follows from the explanation

for the 2001 final rule, which incorporated the

preamble to the 2000 proposed rule. 17 See 66 Fed Reg

17 Both rules stated that using mechanized earth-moving

equipment to conduct certain dredging activities ordinarily will

result in a regulable redeposit of dredged material. The two rules

differed only in how they allocated the burden of proving or

disproving whether activities that came within that general rule

resulted in incidental fallback. Presumably for that reason, the

Appendix A-34

4552 (Jan 17, 2001). Specifically, the preamble to the

2000 proposed rule expressly recognized that the

discharge of material resulting from placer mining is

“the ‘addition of a pollutant’ under the [Clean Water

Act] subject to EPA’s section 402 regulatory

authority.” 65 Fed Reg 50110 (Aug 16, 2000).

In the preamble to the 2000 proposed rule, the

Corps recognized that one problem in defining

“incidental fallback” is that it shares many

characteristics with regulable discharges of dredged

material. See 65 Fed Reg 50109 (Aug 16, 2000). The

Corps accordingly sought to identify the “nature of

th[e] activities and the types of equipment used” that

ordinarily will result in the regulable discharge of

dredged materials. See id. The Corps also reviewed

federal decisions holding that the redeposit of dredged

material constituted a regulable discharge. See id. at

50110. In doing so, the Corps listed cases concluding

that the discharge of unprocessed dredged material

resulted in a discharge of dredged materials subject to

the Corps’ authority under section 404 of the Clean

Water Act. See id. (discussing cases involving

sidecasting of dredged material, the redeposit of

dredged material on adjacent sea grass beds, and

backfilling trenches with dredged material).

After citing cases involving the redeposit of

unprocessed dredged material, the Corps cited one

decision that involved the discharge of processed

dredged material, which it distinguished from the

other cited cases with a “see also” cite. The

explanation stated:

preamble to the proposed 2000 rule remained relevant to

explaining the final 2001 rule.

Appendix A-35

“see also, Rybachek v. EPA, 904 F.2d 976 [1276]

(9th Cir. 1990) (removal of dirt and gravel from

a stream bed and its subsequent redeposit in the

waterway after segregation of minerals is ‘an

addition of a pollutant’ under the CWA subject to

EPA’s section 402 regulatory authority).”

Id. That explanation is consistent with the District of

Columbia Circuit’s decision in National Mining

Assoc., which explained that Rybachek had addressed

“the discrete act of dumping leftover material into the

stream after it had been processed,” not “imperfect

extraction, i.e., extraction accompanied by incidental

fallback of dirt and gravel.” See National Mining

Assoc., 145 F.3d at 1406. The Corps’ description of

Rybachek, however, went further than that and

stated, consistently with the 1986 memorandum of

agreement, that the material discharged as a result of

placer mining “is ‘an addition of a pollutant’ under the

CWA subject to EPA’s section 402 regulatory

authority.” Far from suggesting an intent to depart

from the conclusion in the 1986 memorandum of

agreement, the 2001 final rule and the explanation for

the 2000 proposed rule are consistent with the Corps’

and the EPA’s earlier conclusion that the discharge of

placer mining waste is not the discharge of dredged

material and that, as a result, the EPA is authorized

to issue permits under section 402 of the Clean Water

Act for the processed waste discharged as a result of

suction dredge mining.

4. The Corps’ 2008 rules

As explained above, the 1975 exception to the

definition of “discharge of dredged material” identified

one instance in which the act of processing dredged

material will result in the discharge of a pollutant that

Appendix A-36

requires a permit from the EPA under section 402. It

did not, however, unambiguously resolve whether

other instances of processing dredged material would

result in such a discharge. The dissent reasons that,

even if that is a correct interpretation of the 1975

definition of “discharge of dredged material,” the 2008

version of that definition resolved the ambiguity. We

reach a different conclusion. The 2008 version of the

definition of “discharge of dredged material” left the

relevant part of the 1975 regulations unchanged, and

the differences between the 1975 version and the 2008

version of the definition provide no reason to think

that the 2008 regulation somehow changed what the

1975 regulation meant when it was initially

promulgated.

The relevant part of the 1975 definition of

“discharge of dredged material” does not differ in any

material respect from the 2008 definition. The 1975

regulation provided that “[t]he term ‘discharge of

dredged material’ means any addition of dredged

material * * * into navigable waters.” 33 CFR

§ 209.120(5) (1976). It then provided that

“[d]ischarges of pollutants into navigable waters

resulting from the onshore subsequent processing of

dredged material that is extracted for any commercial

purpose (other than fill) are not included within th[e]

term [discharge of dredged material].” Id. The 2008

regulation says the same thing. It provides that

“[e]xcept as provided in paragraph (d)(2) below, the

term discharge of dredged material means any

addition of dredged material into *** the waters of the

United States.” 33 CFR § 323.2(d)(1) (2009).

Paragraph (d)(2) then provides that the term

“discharge of dredged material does not include the

following: *** discharges of pollutants into the waters

Appendix A-37

of the United States resulting from the onshore

subsequent processing of dredged material that is

extracted for any commercial use (other than fill).”

33 CFR § 323.2(d)(2)(i) (2009).

There are two potentially relevant changes to the

definition of the phrase “discharge of dredged

material” between 1975 and 2008. First, the

exceptions are organized slightly differently, an

organizational change that occurred in 1993 and that

prompted no discussion when it occurred. 58 Fed Reg

45008 (Aug 25, 1993), codified as 33 CFR § 323.2(d)

(1994). 18 That is, the 1993 regulation (and the 2008

regulation) group initially two and later three

exceptions together and put them in one place rather

than stating each exception in a separate sentence, as

the regulations did from 1977 to 1993.

Second, between 1975 and 2008, the Corps added

two exceptions to the term “discharge of dredged

material.” In 1977, the Corps restated what had been

an exception to the definition of “dredged material” for

“material resulting from normal farming, silviculture,

and ranching activities, such as plowing, cultivating,

seeding, and harvesting, for the production of food,

fiber, and forest products” and moved it to become an

exception to the definition of “discharge of dredged

material.” See 33 CFR § 209.120(d)(4) (1976); 33 CFR

§ 323.2(l) (1978). The Corps explained that it had

The explanation for the changes in the Federal Register

focused almost completely on the Corps’ decision to expand the

definition of “discharge” to include incidental fallback. See 58 Fed

Reg 45008-26 (Aug 25, 1993). More specifically, the discussion

focused on when the incidental discharge of unprocessed dredged

material would constitute a regulable discharge. See id.

18

Appendix A-38

intended in 1975 to make clear that “activities such as

plowing, seeding, harvesting, and any other activity

by any other industry that do not involve discharges of

dredged or fill material” do not require section 404

permits. 42 Fed Reg 37130 (July 19, 1977) (emphasis

added). It reasoned that restating and moving that

exception to the definition of “discharge of dredged

material” clarified its intent to except only those

ordinary sorts of activities that do not result in a

discharge of dredged material. 19 Id. The third

exception was added in 1999 (and restated several

times) to exclude “incidental fallback” from the

definition of discharge of dredged material. That

exception is discussed at some length above.

The second and third exceptions (added in 1977

and 1999) are excluded from the definition of

“discharge of dredged material” because the Corps

concluded that they do not involve any “discharge” of

dredged material. The first exception stands on a

different footing. That exception assumes that there is

a “discharge” but establishes that, as a result of the

19 In 1993, the Corps restated that agricultural exception one

more time. 33 CFR § 323.2(d)(2)(ii) (1994). As restated, the

exception provided that the discharge of dredged material does

not include:

“activities that involve only the cutting or removing of

vegetation above the ground (e.g., mowing, rotary cutting,

and chainsawing) where the activity neither substantially

disturbs the root system nor involves mechanized pushing,

dragging, or other similar activities that redeposit excavated

soil material.”

Id. As before, the Corps explained that the reason for the

exception was that the listed activities “would not cause either

the addition or redeposition of dredged material.” 58 Fed Reg

45017 (Aug 25, 1993).

Appendix A-39

act of processing dredged material, the material

discharged is a “pollutant” subject to section 402

rather than “dredged material” subject to section 404.

That is, the second and third exceptions turn on the

absence of a discharge; the first turns on the nature of

the material being discharged.

Contrary to the dissent’s reading of the 2008

definition of “discharge of dredged material,” the

changes to that definition between 1975 and 2008

provide no reason to say that the exception

promulgated in 1975 means anything other than what

it meant in 1975. Specifically, both the 1975 and the

2008 regulations leave open the question whether

other instances of processing dredged material—

namely, instances other than the one instance

identified in the 1975 exception—will result in the

discharge of a pollutant subject to section 402 or the

discharge of dredged material subject to section 404.

It is precisely because the regulations leave that

question open that the EPA and the Corps’ application

of the statute and regulations matters.

5. Regulatory approval

Either the EPA or a state agency acting under

authority delegated by the EPA may issue a permit

under section 402 of the Clean Water Act for the

discharge of pollutants after providing an opportunity

for a hearing. See 33 USC § 1342(a)(1) (permits issued

by the EPA); 33 USC § 1342(b) (states acting under

delegated authority). However, in considering

regulatory approval of permits for suction dredge

mining, we focus on permits issued by the EPA or the

Corps and do not rely on permits issued by states, such

as Oregon, that are acting pursuant to authority

delegated by the EPA. Without some showing that the

Appendix A-40

EPA has formally adopted a state agency’s issuance of

a permit, the states’ regulatory actions do not provide

a strong basis for determining the meaning of a

federal statute. Cf. DeCambre v. Brookline Housing

Auth., 826 F3d 1, 19 (1st Cir 2016) (explaining that

deference to state agency interpretations of federal

statutes could undercut the uniform interpretation of

federal law).

Focusing on the EPA’s issuance of permits, the

state argues and petitioners do not dispute that the

Regional Administrator of the EPA has issued general

permits for suction dredge mining in Alaska that were

in effect from 1994 to 2015. 20 Not only has the EPA

issued general permits for suction dredge mining in

Alaska, but the Corps in Alaska administers a general

permit for “mechanical placer mining,” which notes

that small scale suction dredge mining is not an

activity covered by the Corps’ general permit but is

instead regulated under a permit issued by the state

agency acting under delegated authority from the

EPA. 21 Specifically, the Corps’ permit provides that

the “use of a suction device to remove bottom

substrate from a water bod[y] and discharges of

material from a sluice box for the purpose of

extracting gold or other precious metals *** [are]

regulated by the ADEC [Alaska Department of

20 Since that time, the responsibility for issuing permits for

suction dredge mining has been delegated to Alaska’s

counterpart to Oregon’s DEQ. While the Alaska counterpart has

acted consistently with the EPA, we look primarily to the EPA’s

permitting decisions.

21 The Corps may issue a permit under section 404 only after

notice and an opportunity for a public hearing. See 33 USC

§ 1344(a)(1); 33 CFR § 325.3.

Appendix A-41

Environmental Conservation] under a Section 402

Alaska Pollution Discharge Elimination System

(APDES) permit.”

To be sure, in 2012, the Corps extended another

regional general permit, 2007-372-MI, that regulates

“floating recovery devices” used for the purposes of

recovering metals. That permit, however, was not

issued under the Clean Water Act but under the

Corps’ authority under Section 10 of the Rivers and

Harbors Act. Moreover, the Corps’ permit excepts

small suction dredge mining. It provides:

“[N]o Corps authorization is required for these

operations. Recovery of metals in a Section 404

water results in discharge from a sluice,

trommel, or screen, however this discharge is

regulated

by

Alaska

Department

of

Environmental Conservation (ADEC) under a

Section 402, Alaska Pollutant Discharge

Elimination System Permit (APEDS).” 22

As the Corps’ and the EPA’s joint exercise of authority

in Alaska demonstrates, those agencies have adhered

to the distinction reflected in the 1986 memorandum

of agreement and stated in the Corps’ 1990 regulatory

guidance letter. The EPA has issued permits for

discharges resulting from small scale suction dredge

22 In a 2017 notice stating that it was extending the permit until

2018, the Corps added:

“The Corps DOES NOT regulate the discharge or release

of rocks and or sediment from a sluice box mounted on a

recovery device. The sluice box discharge is regulated by

the ADEC under a section 402 APDES permit.”

(Capitalization in original.)

Appendix A-42

mining, and the Corps has recognized the EPA’s

authority to do so.

Additionally, as noted above, in April 2018, the

Regional Administrator of the EPA reissued a general

permit for suction dredge mining in Idaho after notice

and comment. Before doing so, the EPA addressed

several comments questioning the EPA’s authority to

issue a permit for suction dredge mining. See EPA,

Response to Comments on Idaho Small Suction

Dredge General Permit at 3-7. Some commenters took

the position that suction dredge mining should not be

regulated at all. Id. at 3-4. Similarly, others argued

that the material discharged as a result of suction

dredge mining was incidental fallback and thus not

subject to regulation. Id. at 5-6. In responding to those

comments, the EPA explained that “commenters often

confuse the ‘discharge of dredged material’ with the

‘discharge of a pollutant.’ ” Id. at 7. The EPA

reaffirmed its position that the material discharged as

a result of suction dredge mining was the “discharge

of a pollutant” subject to regulation under section 402

and not incidental fallback, which does not constitute

a regulable discharge of dredged material. Id. The

EPA then noted that, consistently with that

conclusion, “the Corps routinely informs applicants

who request a 404 permit for small suction dredging

in Idaho that, unless a regulable discharge of dredged

or fill material will occur, the EPA is the lead agency

for the activity.” Id.

The EPA thus reaffirmed that the material

discharged as a result of suction dredge mining is a

pollutant that requires a permit from the EPA under

section 402 and not dredged material that requires a

permit from the Corps under section 404. Petitioners

Appendix A-43

argue, however, that the Corps has issued three

permits that lead to a different conclusion.

Specifically, they rely on two nationwide permits

(NWP) issued by the Corps and a regional permit also

issued by a division of the Corps. We consider each

permit separately.

The first permit, NWP 19, authorizes dredging of

“no more than 25 cubic yards below” the plane of the

ordinary high water mark. 82 Fed Reg 1988 (Jan 6,

2017). Notably, NWP 19 only authorizes dredging—

the removal of dredged material from navigable

waters. It does not authorize the discharge or addition

of dredged material to the navigable waters of the

United States, which is the statutory predicate for a

section 404 permit under the Clean Water Act. See

National Mining Assoc., 145 F3d at 1404

(distinguishing between the Corps’ authority to

permit dredging under the Rivers and Harbors Act of

1899 and its authority to permit the discharge of

dredged or fill material into navigable waters under

section 404 of the Clean Water Act). Because a permit

authorizing the removal of dredged material from

navigable water differs from a permit authorizing the

discharge of dredged material into navigable water,

NWP 19 does not advance petitioners’ argument.

The second permit, NWP 44, is arguably closer to

the mark. It authorizes the discharge of “dredged or

fill material” into the nontidal waters of the United

States for mining activities, provided that either the

discharge does not cause the loss of “greater than 1/2acre of nontidal wetlands” or as long as the total

mined area does not exceed 1/2 acre for open waters,

such as rivers, streams, lakes, and ponds. 82 Fed Reg

1994 (Jan 6, 2017). By its terms, NWP 44 applies to

Appendix A-44

the issuance of a permit for a single mining project

that can entail water impoundments and construction

on fill or dredged material discharged into the water.

See NWP 44, General Conditions Nos. 8, 9, 14, 15, 23,

and 24. Moreover, it requires preconstruction

notification for certain activities and remedial

mitigation by the project proponent. Id.

At first blush, the fact that NWP 44 authorizes the

discharge of dredged material for mining purposes

appears to support petitioners’ argument. On closer

inspection, however, we reach a different conclusion.

First, NWP 44 is directed at individual mining

projects that can involve the impoundment of water

and construction of temporary or permanent

structures for mining, rather than recreational

suction dredge mining. Second, in authorizing the

discharge of up to one-half acre of fill or dredged

material, NWP 44 appears to refer to unprocessed

dredge material or fill. It does not expressly address

whether processed dredged material remains subject

to the Corps’ permitting authority under section 404

or whether processing can result in the addition of a

pollutant subject to the EPA’s permitting authority

under section 402. Third, and consistently with the

second observation, the commentary to NWP 44 states

that “[d]ischarges of processed mine materials into

waters of the United States may require authorization

[by the EPA] under section 402 of the Clean Water

Act.” 82 Fed Reg 1921 (Jan 6, 2017).

Finally, petitioners rely on a regional general

permit that the Corps issued in 1995 for northern

California for “certain work activities and incidental

discharges of dredged or fill material associated with

suction dredge mining.” Department of the Army,

Appendix A-45

Regional General Permit No. 21181-98 (June 7, 1995).

Again, at first blush, the permit appears to support

petitioners’ view that the Corps has exercised

permitting authority over suction dredge mining.

However, from 1961 to 2009, the State of California

issued permits authorizing suction dredge mining

under section 5653 of the California Fish and Wildlife

Code, see People v. Rinehart, 1 Cal 5th 652, 658, 206

Cal.Rptr.3d 571, 377 P.3d 818 (2016), cert den sub nom

Rinehart v. California, 138 S Ct 635 (2018), 23 and the

Corps’ permit on which petitioners rely specifically

provides that “[w]ork under this regional general

permit is authorized only for holders of current and

valid California Department of Fish and Game

[section] 5653 Permits * * * commonly referred to as

‘standard permits’, for the purpose of engaging in

suction dredge mining for mineral extraction.”

(Emphasis added.)

Moreover, the Corps issued the 1995 regional

permit two years after it promulgated the 1993

regulations that defined the “discharge” of dredged

materials as including “any addition, including any

redeposit, of dredged material, including excavated

material, into the waters of the United States, which

is incidental to any activity * * *.” 32 CFR

§ 323.2(d)(1)(iii) (1994). That rule was later modified

in 1999 to except “incidental fallback,” and it is

unclear whether the Corps’ 1995 regional permit was

issued merely to comply with the rules in effect from

1993 to 1999 that the discharge of unprocessed

dredged material that was incidental to any activity

23 In 2009, the California imposed a temporary moratorium on all

suction dredge mining, which was scheduled to sunset in 2016.

See Rinehart, 1 Cal 5th at 658, 377 P3d 818.

Appendix A-46

required a permit under section 404 of the Clean

Water Act. See Regional General Permit No. 21181-98

(authorizing “incidental discharges of dredged or fill

material associated with suction dredge mining”).

Beyond that, the 1995 regional permit does not

purport to be the exclusive permitting authority for

suction dredge mining but serves instead only as

auxiliary authorization. The Corps’ permit applies

only if a person possesses a standard permit for

suction dredge mining issued by the State of

California. Finally, the 1995 regional permit expired

on July 1, 2000, and petitioners do not identify any

other permit issued by the Corps after it amended its

regulations in 1999 to exclude incidental fallback that

provides auxiliary authorization for incidental

discharges resulting from suction dredge mining.

Ultimately, we do not view NWP 19, NWP 44, or

Regional General Permit No. 21181-98 as persuasive

authority for petitioners’ position. Rather, NWP 19

does not authorize the discharge of dredged materials;

the commentary to NWP 44 recognizes that the

discharge of processed mining waste may require a

permit from the EPA under section 402; and the 1995

regional

general

permit

provided

auxiliary

authorization for incidental discharges associated

with suction dredge mining at a time when the Corps’

regulations recognized that any discharge of

unprocessed dredged material that was “incidental to

any activity” was a regulable discharge under section

404.

In our view, the regulatory history reveals that,

from 1986 to 2018, the EPA and the Corps have been

on the same page. From the 1986 memorandum of

agreement between the EPA and the Corps to the

Appendix A-47

general permits issued by the EPA in 2018 and the

Corps in 2017, both agencies consistently have

recognized that processed waste discharged as a result

of suction dredge mining is a pollutant that requires a

permit from the EPA under section 402. Similarly,

they consistently have concluded that the discharge

resulting from suction dredge mining is not “dredged

material” that requires a permit from the Corps under

section 404. With that regulatory history in mind, we

turn to the deference owed those agency decisions.

C. Deference

In Coeur Alaska, the Court explained that

Congress had not “directly spoken” to the precise

question in that case, and it looked “to the agencies’

regulations construing [the statutory text], and [the

Corps and] the EPA’s subsequent interpretation of

those regulations” to determine the answer to that

question. 557 US at 277.

As Coeur Alaska recognized, agencies charged with

administering a federal statute may interpret that

statute in ways that call for deference. See id. The

agencies may promulgate rules after notice and

comment. See Chevron U.S.A., Inc. v. Natural

Resources Defense Council, Inc., 467 US 837, 104 S.

Ct. 2778, 81 L. Ed. 2d 694 (1984); accord United States

v. Mead Corp., 533 US 218, 226-27, 121 S Ct 2164, 150

L Ed 2d 292 (2001). Or they may engage in formal

adjudication following notice and comment, which will

also warrant Chevron deference. See Mead Corp., 533

US at 227 (explaining that “[d]elegation of such

authority may be shown in a variety of ways, as by an

agency’s power to engage in adjudication or noticeand-comment rulemaking”); Charles H. Koch, Jr. and

Richard Murphy, 4 Administrative Law & Practice

Appendix A-48

§ 11.34.10 (3d ed 2010) (recognizing “a safe harbor for

Chevron deference where an agency uses notice and

comment, formal adjudication, or similarly extensive

procedures

to

develop

the

interpretation”).

Additionally, the Court recently reaffirmed that an

agency’s reasonable interpretation of its own

regulations will warrant deference. See Kisor v.

Wilkie, 588 U.S. ––––, 139 S. Ct. 2400, 2414-18, ––– L.

Ed. 2d –––– (2019) (listing the criteria for deferring to

an agency’s interpretation of its own regulations). 24

Finally, agency interpretations contained in opinion

letters and the like are entitled to respect but only to

the extent that they have the power to persuade.

Christensen v. Harris County, 529 U.S. 576, 587, 120

S. Ct. 1655, 146 L. Ed. 2d 621 (2000) (citing Skidmore

v. Swift & Co., 323 U.S. 134, 140, 65 S. Ct. 161, 89 L.

Ed. 124 (1944)).

As explained above, the text of the Clean Water Act

does not speak directly to the question whether

discharges resulting from suction dredge mining

constitute the “discharge of dredged *** material”

subject to the Corps’ permitting authority or the

discharge of processed waste subject to the EPA’s

permitting authority. One would hardly expect

Congress to have focused on such a small detail.

Rather, that is precisely the sort of issue that

ordinarily would be (and was) left to the EPA’s and the

Corps’ application of the broader principles stated in

the Clean Water Act. We also conclude that the

regulations that those agencies have promulgated do

24 In Kisor, a majority of the Court joined in only part of Justice

Kagan’s opinion. See Kisor, 139 S Ct at 2424 (Roberts, C.J.,

concurring in part) (joining in Parts I, II-B, III-B, and IV of

Justice Kagan’s opinion). In discussing Kisor, we refer only to

those parts of the decision that state the opinion for the Court.

Appendix A-49

not resolve that issue. The regulations expressly

recognize that the act of processing dredged material

can result in the discharge of a pollutant that requires

a permit from the EPA under section 402 rather than

the discharge of dredged material that requires a

permit from the Corps under section 404. However, as

explained above, the regulations do not resolve

whether the discharges resulting from suction dredge

mining constitute a pollutant subject to section 402 or

dredged material subject to section 404. Both the

statutes and the regulations are genuinely ambiguous

on that question.

In our view, the most persuasive answer to that

question lies in the general permits for suction dredge

mining that the EPA has issued after notice and

comment. Because the level of formality that attends

the issuance of those permits bears on the deference

due the EPA’s interpretation, see Mead Corp., 533 US

at 230, we discuss that issue briefly. Congress has

provided that the EPA may issue a permit for the

discharge of a pollutant into the navigable waters of

the United States only “after opportunity for a public

hearing.” 33 USC § 1342(a)(1). Consistently, the

EPA’s rules provide that the Regional Administrator

of the EPA may issue an individual or a general

permit only after providing notice and an opportunity

for comment. See 40 CFR § 124.10 (requiring notice

and an opportunity for comment); 40 CFR § 124.8

(requiring preparation of a fact sheet); 40 CFR

§ 124.17 (requiring a response to all significant

comments as a prerequisite to the issuance of a final

permit); 40 CFR § 122.28(b)(4) (providing that general

permits are subject to the procedures in 40 CFR Part

124). Any person who filed comments on the draft

permit or participated in a public hearing on the draft

Appendix A-50

permit may petition for review to the Environmental

Appeals Board. 40 CFR § 124.19 (a)(2). Only when the

petition for review is finally resolved may the Regional

Administrator issue a permit. 40 CFR § 124.19(l).

As we read both the Clean Water Act and the

EPA’s rules, they require the opportunity for a

hearing before the Regional Administrator following

notice and comment and provide for an appeal to the

Environmental Appeals Board, which serves as the

arm of the Administrator of the EPA to ensure that

the agency speaks with one voice. 40 CFR § 1.25(e)

(defining the role of the Environmental Appeals

Board). 25 Not only does the formality that attends the

issuance of individual permits call for Chevron

deference under Mead Corp., but that is particularly

true for the general permits that the EPA issues.

General permits are not limited to discharges from a

single point source, as an individual permit is;

instead, they apply to multiple discharges resulting

from an activity, such as suction dredge mining, that

can occur across a wide geographic area. See 40 CFR

§ 122.2 (defining “general permit”). As such, general

permits possess many if not more similarities with

rules than they do individual adjudications.

As discussed above, the EPA has issued general

permits for suction dredge mining in Alaska that were

in force from 1994 to 2015, and it reissued a general

permit for suction dredge mining in Idaho in 2018.

Similarly, in extending a general permit for floating

recovery devices in 2012 and again in 2017, the Corps

25 As noted above, the Corps follows similar procedures in issuing

permits under section 404. See 33 USC § 1344(a)(1); 33 CFR

§ 325.3.

Appendix A-51

agreed that “no Corps authorization is required” for

the processed waste discharged as a result of small

suction dredge mining. The Corps explained instead

that those discharges are regulated by the Alaska

Department of Environmental Conservation under

section 402. All those permits, issued after notice and

comment and an opportunity for a hearing, reaffirm

the EPA’s and the Corps’ conclusion that the EPA is

authorized under section 402 of the Clean Water Act

to issue permits for the processed waste discharged as

a result of suction dredge mining.

Not only do those permits possess a sufficient

measure of formality to warrant Chevron deference,

but the EPA’s conclusion that it is authorized to

permit discharges resulting from suction dredge

mining and the Corps’ acquiescence in that conclusion

are reasonable. Cf. Coeur Alaska, 557 US at 283

(deferring to a similar issue that had been “addressed

and resolved in a reasonable and coherent way by the

practice and policy of the two agencies”); id. at 291

(Breyer, J., concurring) (recognizing a “legal zone

within

which the regulating agencies might

reasonably classify material as ‘dredged *** material’

subject to § 404 *** or as a ‘pollutant’ subject to §§ 402

and 306”). As explained above, it is possible to classify

the material discharged as a result of suction dredge

mining as “dredged material” subject to the Corps’

permitting authority. However, is it equally possible

to classify the material discharged as a result of

suction dredge mining as a “pollutant” that is subject

to the EPA’s permitting authority under section 402.

Petitioners argue, however, that the material

discharged as a result of suction dredge mining is

indistinguishable from the discharge of unprocessed

Appendix A-52

dredged material over which the Corps has permitting

authority. Both can remobilize heavy metals, such as

mercury, and both can result in turbid wastewater

plumes. As we understand petitioners’ argument, they

contend that it is arbitrary to classify the discharge

resulting from suction dredge mining as anything

other than “dredged material.” 26 One difference,

however, between the two types of discharges is the

cumulative impact of suction dredge mining. Unlike

the discharge of dredged material, which often is

project-specific, suction dredge mining is a

recreational activity that numerous people can pursue

simultaneously in the same or multiple locations.

EPA, Response to Comments on Idaho Small Suction

Dredge General Permit at 13 (explaining that the EPA

The dissent starts from a similar but analytically separate

premise in interpreting the regulations. It reasons that, if the act

of processing dredged material consists only of only removing

part of the dredged material and adds nothing to it, then the

resulting discharge will necessarily be “dredged material.” The

dissent, however, never identifies the basis for that premise,

other than its own intuitive sense of the matter. Certainly,

nothing in the text of the regulations stands for that proposition.

Indeed, the one regulation that addresses discharges resulting

from processing dredged material points in precisely the opposite

direction. That regulation excepts discharges of pollutants

resulting from the onshore processing of dredged material

extracted for a commercial use from the “discharge of dredged

material,” without regard to whether the processing consisted of

removing part of the dredged material or adding something to it.

Finally, the dissent’s premise is contrary to over 30 years of the

EPA’s and the Corps’ consistent interpretation of their rules that

the discharge of placer mining waste (waste left over after

minerals have been removed from dredged material) is the

discharge of a pollutant that requires a permit from the EPA

under section 402.

26

Appendix A-53

deemed suction dredge mining as a “recreational

activity,” which numerous people can undertake).

In responding to similar objections to treating the

discharge from suction dredge mining as a pollutant

subject to section 402, the EPA has observed that

suction dredging is “ ‘of special concern where it is

frequent, persistent, and adds to similar effects

caused by other human activities.” Id. at 11 (quoting

Bret C. Harvey and Thomas E. Lisle, Effects of Suction

Dredging on Streams: a Review and an Evaluation

Strategy 15 (Aug 1998)). In determining the extent to

which suction dredge mining should be permitted, the

EPA considers the total maximum density load of

sediment that a stream is capable of handling. That

varies depending on, among other things, the type of

sediment where the suction dredge mining will be

conducted, the extent to which a stream is already

impaired by sediment, the rate of stream-flow, and the

number of point sources—i.e., suction dredge

miners—discharging additional sediment into the

stream. Id. at 26. The concern is not with the

navigability of the water body, a concern that falls

within the Corps’ expertise; rather, the concern is with

the health of the water body, a concern that lies at the

heart of the EPA’s expertise.

The Corps and the EPA reasonably could conclude

that the EPA was better suited than the Corps to

make those types of water quality decisions. The risks

posed by the cumulative effects of multiple suction

dredge mining operations on the overall health of a

stream differ from the sort of engineering issues that

the Corps typically addresses. See Nadia H. Dahab,

Muddying the Waters of Clean Water Act Permitting:

NEDC Reconsidered, 90 Or L Rev 335, 352-54 (2011)

Appendix A-54

(discussing the EPA and the Corps’ respective spheres

of expertise). Specifically, the effect of increased

sedimentation on water quality posed by multiple

suction dredge mining operations requires the

permitting agency to consider the number of permits

that should be issued, the streams in which suction

dredge mining should be permitted or limited, and the

appropriate restrictions that should be included for

each stream on the intensity, duration, and frequency

of the activity.

Perhaps the Corps could have made those same

kinds of water quality decisions. However, in light of

the cumulative impact of sedimentation on water

quality that can result from suction dredge mining

and in light of the need to include appropriate limits

on the permits to maintain the health of affected

water bodies, the Corps and the EPA reasonably could

conclude, as they have, that permits for the discharge

of material resulting from suction dredge mining

should be issued by the EPA under section 402 rather

than by the Corps under section 404. It follows, we

think, that the general permits issued by the both the

EPA and the Corps are reasonable agency

interpretations of a statute following notice and

comment procedures that warrant deference under

Mead. 27

27 Both the EPA and the Corps are charged with implementing

the Clean Water Act. Because both agencies have issued general

permits after a formal adjudication recognizing that discharges

from small suction devices are subject to a permit issued by the

EPA (or its state delegate) under section 402, this case does not

require us to decide whether only one agency’s formal order

would be sufficient under Mead. Cf. Proffitt v. FDIC, 200 F3d

855, 860 (DC Cir 2000) (explaining that when two agencies

Appendix A-55

We note alternatively that the EPA’s and the

Corps’ resolution of this issue can be viewed as the

agencies’ interpretation of their own “genuinely

ambiguous” regulations. As explained above, the

regulations recognize that the act of processing

dredged material can result in the discharge of

“pollutants” that require a permit under section 402

rather than the discharge of “dredged material” that

requires a permit under section 404. However, as

explained

above,

the

regulations

do

not

unambiguously answer the specific question in this

case—whether the processed waste discharged as a

result of suction dredge mining falls into the former or

the latter category. See Kisor, 139 S Ct at 2415

(directing courts to consider “the text, structure,

history, and purpose of a regulation” in determining

whether it is genuinely ambiguous). We accordingly

look to the agencies’ interpretation of their regulations

and conclude, for the reasons set out above, that their

consistent conclusions come “within the bounds of

reasonable interpretation.” See id. at 2416 (internal

quotation

marks

omitted).

Moreover,

their

interpretation reflects the agencies’ authoritative or

official position. See id. As noted above, the

Administrator of the EPA has delegated authority to

issue general permits to the Regional Administrators,

a decision that is subject to centralized review by the

Environmental Appeals Board. The agencies’

interpretation also implicates their substantive

expertise, as the Court recognized in Coeur Alaska.

See Kisor, 139 S Ct at 2417 (listing that criterion);

Coeur Alaska, 557 US at 291-92 (Breyer, J.,

administer a statute, one agency’s interpretation is not

sufficient).

Appendix A-56

concurring) (describing the Court’s decision as

deferring to the agencies’ expertise). Finally, the

agencies’ interpretation reflects their fair and

considered judgment. See Kisor, 139 S Ct. at 2417-18.

Their interpretation is not a convenient litigating

position, a post-hoc rationalization, or a new

interpretation that creates unfair surprise. See id.

Indeed, since entering into a memorandum of

agreement in 1986, both the EPA and the Corps

consistently have recognized that the processed waste

discharged as a result of small suction dredge mining

is a pollutant that requires a permit from the EPA

under section 402 rather than dredged material that

requires a permit under section 404. Even if deference

to the agencies’ formal interpretation of their

regulations were not sufficient under Mead, the EPA

and the Corps’ consistent and reasonable

interpretation of the regulations warrants deference

under Kisor. 28

Two other issues require mention. First, much of

petitioners’ opening brief focuses on evidentiary

challenges to the factual premises underlying DEQ’s

issuance of the permit. The Court of Appeals, however,

declined to exercise its discretion to consider

petitioners’ third assignment of error contending that

DEQ’s findings were not supported by substantial

evidence. Petitioners have not argued that the Court

of Appeals abused its discretion in making that

decision, and it is unclear how much, if any, of

petitioners’ fact-specific challenges are properly before

28 We would reach the same conclusion even if we viewed the

agencies’ actions less deferentially as a persuasive agency

interpretation under Skidmore.

Appendix A-57

us. Beyond that, as we understand the legal question

before us, it is whether the EPA and the Corps

reasonably have concluded that the EPA (and by

extension DEQ) has permitting authority under

section 402 over discharges resulting from suction

dredge mining. It is difficult to understand how the

factual record developed in a state hearing somehow

limits the Corps’ and the EPA’s interpretation of their

own regulatory authority, as opposed to establishing

the appropriate numeric, geographic, and temporal

limitations on suction dredge mining permitted in

local rivers and streams.

Second, petitioners argue that the Court of

Appeals erred in concluding that the single discharge

resulting from suction dredge mining was subject to

permits issued by both the Corps and the EPA (or its

state delegate). In petitioners’ view, only one agency

had the authority to permit the discharge. Although

petitioners do not cite Coeur Alaska in support of their

argument, we note that that decision is consistent

with their position. See Coeur Alaska, 557 US at 286

(agreeing that a “two-permit regime [for a single

discharge] is contrary to the [Clean Water Act] and

the regulations”); see also Dahab, Muddying the

Waters of Clean Water Act Permitting, 90 Or L Rev at

354-56 (critiquing the two-permit reasoning in NEDC,

232 Or App at 644-45).

We need not resolve that issue to decide this case.

As explained above, we defer to the EPA’s and the

Corps’ reasonable conclusion that the EPA (or its state

delegate) has the authority to issue a permit under

section 402 for all the processed waste discharged as

a result of suction dredge mining. Given the Corps’

and the EPA’s conclusion that the EPA has authority

Appendix A-58

over that permitting decision, we need not decide

whether those agencies could have divided permitting

responsibility for a single discharge between them. To

be sure, DEQ’s 2010 permit may have been too narrow

in that it applied to only part of the discharge

resulting from suction dredge mining. However,

petitioners do not challenge the 2010 permit on the

ground that it is too narrow. Rather, they challenge it

on the ground that it is too broad. In their view, the

EPA did not have any permitting authority over

discharges resulting from suction dredge mining. That

argument is not well taken and provides no basis for

reversing the Court of Appeals decision.

The decision of the Court of Appeals is affirmed.

BALMER, J., dissenting.

The majority opinion reaches a result that may be

sensible, but takes a path that is closed off by the

federal caselaw that we are bound to follow. When an

agency reasonably interprets an ambiguous statute by

promulgating a rule, we must give deference to its

interpretation. Here, the two agencies charged with

administering the Clean Water Act (CWA) created

rules interpreting some of its ambiguous terms; those

definitions, to which we must defer, clearly resolve

this case in petitioners’ favor. The majority colors

outside the lines of agency deference, and in the

process ends up interpreting the statute by deferring

to certain actions of the two federal agencies involved

here, and perhaps to their desires, but not, as we

must, to their duly promulgated interpretation of the

Clean Water Act. I respectfully dissent.

The CWA imposes responsibilities on both the

Army Corps of Engineers and the Environmental

Appendix A-59

Protection Agency (EPA). Section 402, administered

by the EPA, gives that agency permitting authority

over “the discharge of any pollutant.” 33 USC

§ 1342(a)(1). The Corps, under section 404, “may issue

permits, after notice and opportunity for public

hearings for the discharge of dredged or fill material

into the navigable waters at specified disposal sites.”

33 USC § 1344(a). But that authority does not overlap.

“If the Corps has authority to issue a permit, then the

EPA may not do so.” Coeur Alaska, Inc. v. Southeast

Alaska Conservation Council, 557 US 261, 275,

129 S Ct 2458, 174 L Ed 2d 193 (2009).

In 2010, Oregon’s Department of Environmental

Quality (DEQ) issued a general permit for suction

dredge mining under the authority of section 402.

DEQ issued the general permit on the understandable

theory that suction dredge mining involves the release

of dirt and gravel into the water, creating a plume of

turbidity that is the “addition of a pollutant.”

Petitioners argue that DEQ exceeded its authority

under section 402 because, even if the release of dirt

and gravel from suction dredge mining would

otherwise constitute the “discharge” or “addition” of a

pollutant, it is a “discharge of dredged *** material”

under section 404 and therefore properly subject to

permitting only by the Corps.

This case therefore turns on the meaning of the

phrase “discharge of dredged * * * material” in section

404. “When a court reviews an agency’s construction

of the statute which it administers,” Chevron U.S.A. v.

Natural Resources Defense Council, 467 US 837, 842,

104 S Ct 2778, 81 L Ed 2d 694 (1984), it is bound to

apply an interpretive canon known as Chevron

deference. Chevron involves a two-step inquiry. At the

Appendix A-60

first step, the court interprets the statute “employing

traditional tools of statutory construction ***.” Id. at

843 n 9. “If the intent of Congress is clear, that is the

end of the matter; for the court, as well as the agency,

must give effect to the unambiguously expressed

intent of Congress.” Id. at 842-43. At the second step,

“if the statute is silent or ambiguous with respect to

the specific issue, the question for the court is whether

the agency’s answer is based on a permissible

construction of the statute.” Id. at 843, 104 S Ct 2778.

“Even under that deferential standard, however,

‘agencies must operate within the bounds of

reasonable interpretation.’ ” Michigan v. EPA, –––

US ––––, –––– 135 S Ct 2699, 2707, 192 L Ed 2d 674

(2015) (quoting Utility Air Regulatory Group v. EPA,

573 US 302, 321, 134 S Ct 2427, 189 L Ed 2d 372

(2014)).

Chevron does not require deference to all agency

interpretations, because Chevron depends on the

scope of Congress’s delegation to the agency and how

the agency has set forth its interpretation. However,

“administrative implementation of a particular

statutory provision qualifies for Chevron

deference when it appears that Congress

delegated authority to the agency generally to

make rules carrying the force of law, and that

the agency interpretation claiming deference

was promulgated in the exercise of that

authority.”

United States v. Mead Corp., 533 US 218, 226-27, 121

S Ct 2164, 150 L Ed 2d 292 (2001).

Appendix A-61

I begin with the first step, interpreting CWA

section 404 itself, and determining whether suction

dredge mining involves “the discharge of dredged or

fill material into the navigable waters ***.” 33 USC

§ 1344(a). It could be argued that this text is enough

to settle the case. After all, suction dredge mining does

“dredge” material. And, in a literal sense, that

material is then “discharged” into water. But suction

dredge mining also involves passing that dredged

material over a sluice tray in order to separate out

gold. It may be that dredged material remains

dredged material indefinitely. But it might reasonably

be thought that in some circumstances material that

has been dredged will cease to qualify as dredged

material. For example, the gold removed from the

stream may be “dredged material” initially, but it

might be anomalous to refer to it as “dredged

material” once it has been turned into a wedding ring.

Additionally, the context of section 404 is relevant.

The words “discharge of dredged or fill material”

demarcate the jurisdictional line between the EPA

and the Corps, and thus might be read in a way that

takes into account the relative competencies of the

agencies—such as by focusing on the purpose or the

environmental effects of the discharge. Thus, at

Chevron step one, I find the statute ambiguous.

Chevron’s first step being satisfied, it is

appropriate to turn to agency interpretations. The

Corps and the EPA have promulgated rules, through

notice and comment rulemaking, to clarify the

definitions of “dredged material” and “discharge of

dredged material.” Those rules, which were most

recently revised in 2008, define dredged material as

follows:

Appendix A-62

“The term dredged material means material that

is excavated or dredged from waters of the

United States.”

33 CFR § 323.2(c). 1 Thus, “dredged material” is

defined based solely on the source of the material—the

waters of the United States—and the process by which

it is removed—excavation or dredging. There is no

temporal caveat, and no qualification based on

subsequent processing or environmental effects. 2 To

read the definition to be conditioned on such

requirements would require a judicial addition to the

rule’s text, which would be entirely inconsistent with

the Supreme Court’s directive that we “must employ

traditional tools of interpretation” to interpret

regulations. Christopher v. SmithKline Beecham

Corp., 567 US 142, 161, 132 S Ct 2156, 183 L Ed 2d

153 (2012).

There are parallel and identical definitions contained in rules

issued by the EPA and located in 40 CFR § 232.2. For

convenience, I cite only to the Corps’ rules in 33 CFR § 323.2.

1

The omission of any consideration of effects is particularly

telling because in the context of fill material, the Corps and the

EPA did opt for an effect-based definition:

2

“(e)(1) Except as specified in paragraph (e)(3) of this

section, the term fill material means material placed in

waters of the United States where the material has the

effect of:

“(i) Replacing any portion of a water of the United

States with dry land; or

“(ii) Changing the bottom elevation of any portion of

a water of the United States.”

33 CFR § 323.2.

Appendix A-63

To be sure, an interesting question would be raised

if we were faced with a mixture of dredged material

and some other substance which had not been

“excavated or dredged from waters of the United

States.” The definition does not, perhaps, speak

clearly to the question of whether such a mixture, or a

portion thereof, would constitute “dredged material.”

Suction dredge mining, however, processes material

only by removing part of it. All of the remaining

material, absolutely everything ultimately added to

the water, was “excavated or dredged from waters of

the United States.”

Because everything released by suction dredge

mining is “dredged material,” the next question is

whether the release of that material into the water

qualifies as “discharge of dredged material”:

“(d)(1) Except as provided below in paragraph

(d)(2), the term discharge of dredged material

means any addition of dredged material into,

including redeposit of dredged material other

than incidental fallback within, the waters of

the United States.”

33 CFR § 323.20(d)(1). Leaving aside, for the moment,

the exceptions, this definition also favors the Corps’

authority. The material released from suction dredge

mining, all of which is “dredged material,” is released

into—added to—the water. Thus, it is captured by

“any addition of dredged material into *** the waters

of the United States.”

I turn to the exceptions set out in paragraph (d)(2):

“(2) The term discharge of dredged material

does not include the following:

Appendix A-64

“(i) Discharges of pollutants into waters of the

United States resulting from the onshore

subsequent processing of dredged material that

is extracted for any commercial use (other than

fill). These discharges are subject to section 402

of the Clean Water Act even though the

extraction and deposit of such material may

require a permit from the Corps or applicable

State section 404 program.

“(ii) Activities that involve only the cutting or

removing of vegetation above the ground (e.g.,

mowing, rotary cutting, and chainsawing)

where the activity neither substantially

disturbs the root system nor involves

mechanized pushing, dragging, or other similar

activities that redeposit excavated soil

material.

“(iii) Incidental fallback.”

33 CFR § 323.20(d)(2). The first exception confirms

that “dredged material” does include material that has

subsequently been processed, including that which

has been processed onshore. If it did not, then

subparagraph (d)(2)(i) would be superfluous—it would

serve no purpose to exclude from the definition of

“discharge of dredged material” the release of

something that was not “dredged material” in the first

place. See Corley v. United States, 556 US 303, 314,

129 S Ct 1558, 173 L Ed 2d 443 (2009) (referring to

the rule against superfluities as “one of the most basic

interpretive canons”).

The exclusion from the Corps’ jurisdiction of

certain subsequently processed material also shows

that the Corps and the EPA considered how to handle

Appendix A-65

processed dredged material. And the only exception to

the Corps’ jurisdiction related to processing is not one

that applies here. To fall under subparagraph (d)(2)(i),

and thus be subject to permitting under section 402

rather than section 404, the processing must be

“onshore,” and the dredged material must be

“extracted for any commercial use (other than fill).” It

could reasonably be disputed whether the second

condition is satisfied here—many suction dredge

miners are hobbyists—but the first is not. Suction

dredge mining typically involves processing that is not

“onshore,” and DEQ’s permitting scheme—and

certainly its assertion of authority over petitioners’ instream suction dredging—reaches beyond onshore

processing.

The agencies’ regulations interpret the ambiguous

terms “dredged material” and “release of dredged

material,” and they do so reasonably. The definitions

that they have selected are natural and permissible

constructions of the statutory text. Under Chevron,

the deferring court “need not conclude that the agency

construction was the only one it permissibly could

have adopted to uphold the construction, or even the

reading the court would have reached if the question

initially had arisen in a judicial proceeding.” Chevron,

467 US at 843 n. 11. The definitions contained in the

rules therefore pass Chevron’s second step. Because

those rules were adopted through notice and comment

rulemaking, and agreed on both agencies charged

with administering the relevant sections of the CWA, 3

3 Some courts have held that “[w]hen a statute is administered

by more than one agency, a particular agency’s interpretation is

not entitled to Chevron deference.” Proffitt v. F.D.I.C., 200 F3d

855, 860 (DC Cir 2000). However, where, as here, both agencies

Appendix A-66

they satisfy Mead. This is heartland Chevron

territory, and we are bound to defer to the agencies’

interpretation.

The majority does not dispute that the 2008 rules

are owed deference, but concludes that those rules are

best read not to speak, one way or the other, to the

question at hand. However, the majority’s analysis of

the definition of “discharge of dredged material”

places heavy reliance on a textual ambiguity that no

longer exists. The majority reasons that the 1975

version of the same regulation sets forth a “general

rule” that “redeposit of unprocessed dredged material

into navigable water will constitute the ‘discharge of

dredged material,’ ” Eastern Oregon Mining Assoc. v.

DEQ, 365 Or 313, 329, 445 P.3d 251 (2019); that there

is an exception for some dredged material that is

processed onshore; and that “the rule leaves

unanswered whether other categories of water-based

or land-based processing operations will result in the

‘discharge of dredged material’ that requires a permit

from the Corps under section 404,” Id. at 329, 445 P.3d

at 260.

It does not matter whether that was a permissible

reading of the 1975 regulation; it is clearly foreclosed

by the current text of 33 CFR § 323.2(d)(1),

promulgated in 2008:

“Except as provided below in paragraph (d)(2),

the term discharge of dredged material means

any addition of dredged material into, including

charged with administering a statute have jointly promulgated a

single interpretation, deference is appropriate. See Loan

Syndications & Trading Association v. S.E.C., 882 F3d 220, 222

(DC Cir 2018) (holding that Chevron does apply when the

multiple involved agencies have issued a joint interpretation).

Appendix A-67

redeposit of dredged material other than

incidental fallback within, the waters of the

United States.”

(Emphasis added.) The present structure of the

definition makes clear that aside from redeposit of

“incidental fallback” and the express exceptions

contained in paragraph (d)(2), every other “addition of

dredged material” is a “discharge of dredged

material.” There is no longer—if there ever was—a

phantom category of dredged material additions that

the definition simply does not address. The only

exception for processed dredged material is the

express exception contained in subparagraph (d)(2)(i).

Having brushed past the easy answer, the majority

wends through a thicket of past regulatory decisions

by the EPA and the Corps. Those materials, which

postdate the statute, are not relevant to our Chevron

step one interpretation of section 404, using the

ordinary tools of statutory construction. Instead, the

majority interprets section 404 by deferring, under

Chevron, to a few of those agency materials: a general

permit issued by the EPA in Idaho in 2018, and

general permits issued by the Corps and the EPA in

Alaska over the past decade.

Any attempt to defer to those materials faces an

insurmountable hurdle. Chevron requires deference to

an agency’s interpretation of a statute, but nothing in

the permits, or even in the associated materials,

contains an interpretation of section 404 or any of its

terms. Of course, implicit interpretations can still

merit deference. In National Railroad Passenger

Corporation v. Boston & Maine Corp., 503 US 407,

420, 112 S Ct 1394, 118 L Ed 2d 52 (1992), the

Supreme Court reasoned that

Appendix A-68

“the fact that the ICC did not in so many words

articulate its interpretation of the word

‘required’ does not mean that we may not defer

to that interpretation, since the only reasonable

reading of the Commission’s opinion, and the

only plausible explanation of the issues that the

Commission addressed after considering the

factual submissions by all of the parties, is that

the ICC’s decision was based on the proffered

interpretation.”

That case, however, involved a situation where it was

clear, at least contextually, that the agency had

interpreted the statute and what the interpretation

was. When those features are lacking, courts typically

do not defer to implicit interpretations. As the D.C.

Circuit explained in declining to defer to an agency

manual,

“even if we were prepared to accord Chevron

deference to the PRO Manual, that document

contains no interpretation of [the statute] to

which we might defer. * * * Most important,

there is no place in the manual where the

agency explains why it believes that a PRO

satisfies the statutory injunction to inform a

complainant of the ‘final disposition’ of the

complaint simply by telling him that it has

investigated the matter and will take action if

appropriate. Because the manual thus contains

no reasoning that we can evaluate for its

reasonableness, the high level of deference

contemplated in Chevron’s second step is

simply inapplicable.”

Public Citizen, Inc. v. U.S. Department of H.H.S., 332

F3d 654, 661 (DC Cir 2003) (emphasis in original); see

Appendix A-69

also Former Employees, Marathon Ashland Pipe Line

v. Chao, 370 F3d 1375, 1382 n 2 (Fed Cir 2004)

(expressing confusion about deference to an implicit

interpretation because “it is not entirely clear what it

is that the government wishes us to defer to”).

The non-overlapping authority of the EPA and the

Corps means that when EPA issues a general permit

under section 402, it must have concluded that the

permitted activity is not the subject of the Corps’

permitting authority under section 404. Similarly, the

Corps permits state that the EPA has authority over

suction dredge mining. But none of that allows us to

discern what either agency understood “discharge,”

“dredged material,” or any other statutory term in

section 404, to mean (much less that they agreed on

an interpretation). The majority does not hazard a

guess as to what their interpretation is. Therefore,

rather than assessing the agency interpretation of the

statute for reasonableness, as Chevron’s second step

requires, the majority evaluates only the

reasonableness of its practical consequence—that the

EPA rather than the Corps gets to regulate suction

dredge mining. See 365 Or at 351-52.

Moreover, it is doubtful that the agencies’ analysis

of section 404 extended any further than concluding

(as they must) that the answer really turns on the

meaning of the more specific definitions contained in

33 CFR § 323.2, not the bare text of the CWA.

Consequently, the permitting decisions that the

majority relies on are very likely interpretations of the

agencies’ regulations, not a statute. That

interpretation would be entitled to deference, if at all,

not under Chevron, but under Auer v. Robbins, 519 US

452, 117 S Ct 905, 137 L Ed 2d 79 (1997), which

Appendix A-70

requires courts, when interpreting regulations, to

defer to the agency’s interpretation of its own

regulations. Not long ago, the distinction might not

matter in a case like this one, because Auer was

generally understood to give even more deference to

agency interpretations of rules than is accorded to

agency interpretations of statutes under Chevron.

However, the Supreme Court recently emphasized

that it “has cabined Auer’s scope in varied and critical

ways.” Kisor v. Wilkie, ––– US ––––, –––– 139 S Ct

2400, 2418, ––– L Ed 2d –––– (2019). The upshot of

that shift is that while courts previously could have

been insensitive to whether the implicit agency

interpretation of a statute that they were deferring to

under Chevron was actually an implicit interpretation

of a rule—because even if it were, deference would be

required anyway—accepting that uncertainty is no

longer an option. Given that Auer and Chevron have

different, non-coextensive limits, it cannot be

appropriate to defer to an agency’s implicit

interpretation under Chevron unless it is either clear

that the agency really is interpreting a statute, or, at

minimum, that the agency’s interpretation would be

owed deference under Auer and Kisor even if the

agency were interpreting a rule. 4 For that reason, the

majority decides, in the alternative, that it can defer

to the same materials under Auer in interpreting the

4 In Coeur Alaska, Justice Scalia accused the Court of invoking

Auer to defer to what was effectively an agency’s interpretation

of a statute, in order to avoid the limitations that Mead had

imposed on Chevron deference. 557 US at 295, 129 S.Ct. 2458

(Scalia, J, concurring in part and concurring in the judgment).

Now, Auer’s own application having been restricted, we should

not use Chevron to avoid Kisor’s limitations.

Appendix A-71

applicable regulations. 365 Or at 352, 445 P.3d at 27273.

In light of Kisor, Auer now requires a five-step

analysis before deference can be accorded to an

agency’s interpretation of its rules. “First and

foremost, a court should not afford Auer deference

unless the regulation is genuinely ambiguous.” Kisor,

––– US at ––––, 139 S Ct at 2415. Before deferring to

the agency, “a court must ‘carefully consider[ ]’ the

text, structure, history, and purpose of a regulation, in

all the ways it would if it had no agency to fall back

on.” Id. at ––––, 139 S Ct at 2415 (quoting Pauley v.

BethEnergy Mines, Inc., 501 US 680, 707, 111 S Ct

2524, 115 L Ed 2d (1991) (Scalia, J., dissenting)).

Second, the agency’s reading “must come within the

zone of ambiguity the court has identified after

employing all its interpretive tools.” Id. at ––––, 139

S Ct at 2416. Third, the interpretation “must be the

agency’s ‘authoritative’ or ‘official position,’ rather

than any more ad hoc statement not reflecting the

agency’s views.” Id. at ––––, 139 S Ct at 2416. Fourth,

“the agency’s interpretation must in some way

implicate its substantive expertise.” Id. at ––––,

139 S Ct at 2417. Fifth, “an agency’s reading of a rule

must reflect ‘fair and considered judgment’ to receive

Auer deference,” Id. (quoting Christopher, 567 US at

155, meaning that, among other things, a court

generally should not give “Auer deference to an agency

construction ‘conflict[ing] with a prior’ one.” Id. at

––––, 139 S Ct at 2417-18 (quoting Thomas Jefferson

University v. Shalala, 512 US 504, 515, 114 S Ct 2381,

129 L Ed 2d 405 (1994)).

The first and simplest reason that no agency is

owed deference in its interpretation of

Appendix A-72

is that that rule is not genuinely ambiguous as to the

question at hand, once ordinary interpretive methods

have been applied. Neither the majority nor the state

offers a permissible reading of the 2008 rule under

which suction dredge mining involves the discharge of

anything other than “dredged material.” But even if

the regulation were ambiguous, deference would not

be appropriate here.

Although the majority points to recent general

permits by the EPA regulating suction dredge mining

under section 402, the Corps has also issued a general

permit for suction dredge pursuant to section 404.

That occurred in California, in 1995, with the permit

expiring in 2000. See Department of the Army,

Regional General Permit No. 21181-98 (Jan 7, 1995).

The majority downplays that fact, suggesting that

“the 1995 regional permit does not purport to be the

exclusive permitting authority for suction dredge

mining, but serves instead only as an auxiliary

authorization” to state permits. 365 Or at 345. The

same is true of the 2018 EPA Idaho permit that the

majority does rely upon—suction dredge miners also

need approval from the Idaho Department of Water

Resources—and is of no consequence for either. More

substantial is the majority’s suggestion that the 1995

permit may have been issued as part of the Corps’

short-lived efforts to regulate in-stream excavation

under the theory that the “incidental fallback” from

excavation constituted a regulable “discharge of

dredged material.” 365 Or at ____. If the 1995 permit

were directed only to the excavation involved in

suction dredging, and not to the release of processed

dredged material back into the water, then any

inconsistency with the EPA’s subsequent permitting

of suction dredge mining would be lessened. But the

Appendix A-73

majority’s suggestion does not hold up to scrutiny,

because the 1995 general permit plainly was not

limited to “incidental fallback” from excavation. As

the permit was “for certain work activities and

incidental discharges of dredged or fill material

associated with suction dredge mining” (emphasis

added), its coverage was not limited to incidental

discharges, much less to incidental fallback. And the

requirements of the permit made clear that it applied

to the post-processing discharge of dredged material,

not (or, at least, not just) incidental fallback as a result

of excavation. For example, it specified that

“[m]ercury recovered from the waterway as part of the

suction dredging-process may not be returned to the

waterway.” That requirement makes sense only if it is

understood as a limitation on the release of dredged

material that has been fully removed from the water

and processed in some form.

Thus, in 1995, under the same statute and a

functionally-identical operative regulation, the Corps

concluded that suction dredge mining involved a

discharge of dredged material under section 404, from

which it would necessarily follow that the EPA would

not have permitting authority. If there is an agency

interpretation in play here, it does not appear to have

been a consistent one, as Kisor requires. Those

inconsistent actions, the product of regional offices,

also raise serious concerns that the regional

permitting process may not “ ‘reflect[ ] the considered

judgment of the agency as a whole’ ” as to the meaning

of the regulations. Kisor, ––– US at ––––, 139 S Ct at

2424 (quoting Mead, 533 US at 233.

But even putting those qualms to one side, any

deference would require the interpreting court first to

Appendix A-74

perform its task of ensuring that “the agency’s reading

[falls]

‘within

the

bounds

of

reasonable

interpretation.’ Kisor, ––– US at ––––, 139 S Ct at

2416 (quoting Arlington v. FCC, 569 US 290, 296, 133

S Ct 1863, 185 L Ed 2d 941 (2013)). The Supreme

Court has reaffirmed that Auer “gives agencies their

due, while also allowing—indeed, obligating—courts

to perform their reviewing and restraining functions.”

Id. at ––––, 139 S Ct at 2415 (emphasis added); see

also id. at ––––, 139 S Ct at 2449 (Kavanaugh, J.,

concurring in the judgment) (“after today’s decision, a

judge should engage in appropriately rigorous

scrutiny of an agency’s interpretation of a regulation,

and can simultaneously be appropriately deferential

to an agency’s reasonable policy choices within the

discretion allowed by a regulation”). We cannot satisfy

that obligation here because, as discussed above in the

context of Chevron deference, it is impossible to tell

what the supposed joint interpretation is. Certainly,

the cited materials give no hint. 5 The majority points

to the purpose and effects of suction dredge mining—

suction dredge mining is recreational and may cloud

the water—and to the EPA’s expertise on the health

of water bodies. 365 Or at 350-51. But the regulation

is, on any reading, completely unambiguous that those

considerations do not factor into the division of

jurisdiction between the two agencies. In any event, “a

court should decline to defer to a merely ‘convenient

5 The majority highlights a 1990 guidance letter that that did

offer an interpretation of the relevant regulation, 365 Or at 33233, but acknowledges that that letter expired almost thirty years

ago and that the Corps has since indicated that that letter is no

longer valid and no longer provides useful information, id. at

333 n. 15. It is not, therefore, an interpretation that might merit

deference.

Appendix A-75

litigating position’ or ‘post hoc rationalizatio[n]

advanced’ to ‘defend past agency action against

attack,’ ” Kisor, ––– US at ––––, 139 S Ct at 2417

(quoting Christopher, 567 US at 155). That being the

case, this court certainly should not square the circle

by deferring to its own post hoc rationalization.

It is true that, as the majority documents, there are

some indications that both agencies might presently

prefer discharges from suction dredge mining to be

regulated by the EPA. But those signals do not qualify

for deference under either Chevron or Auer. 6 And the

only agency product that does demand deference, the

regulations promulgated by both agencies after notice

and comment, points decisively in the other direction.

That leaves one final issue: whether there are, as

the Court of Appeals held, two discharges from suction

dredge mining—“ ‘dredged spoil and mining tailings’ ”

and “ ‘turbid wastewater’ ”—or one. Eastern Oregon

Mining Assoc. v. DEQ, 285 Or App 821, 825, 398 P3d

449 (2017) (quoting Northwest Environmental Defense

Center v. EQC, 232 Or App 619, 644, 223 P3d 1071

(2009)). To find, as the Court of Appeals did, two

simultaneous discharges, one regulated by each

agency, would seem to contravene the Supreme

Court’s interpretation of the CWA in Coeur Alaska

and its holding that “a two-permit regime is contrary

to the statute and regulations.” 557 US at 286. In any

event, even if there are two discharges, both would fall

Other agency actions may still qualify for deference under

Skidmore v. Swift & Co., 323 US 134, 65 S Ct 161, 89 L Ed 124

(1944), to the extent that they have the power to persuade. But,

because the general permits that the majority relies on do not

advance an interpretation or a justification, Skidmore deference

also is unavailable.

6

Appendix A-76

under the Corps’ permitting authority. However the

discharge is characterized or subdivided, it involves

only the “redeposit of dredged material.”

Nothing that I have said should suggest that

suction dredge mining might not be better regulated

by DEQ in concert with the EPA, rather than by the

Corps. I take no position on that policy question and

heed instead the Supreme Court’s caution “that

‘judges ought to refrain from substituting their own

interstitial lawmaking’ for that of an agency.”

Arlington, 569 US at 304-05 (quoting Ford Motor

Credit Co. v. Milhollin, 444 US 555, 568, 100 S Ct 790,

63 L Ed2d 22 (1980)). I also do not mean to suggest

that the CWA cannot permissibly be read to divide

authority between the agencies as the majority does.

If the Corps and the EPA were to promulgate a new

rule, clarifying that suction dredge mining was not

within the Corps’ jurisdiction, I doubt that I would

have any difficulty concluding that that also was a

reasonable interpretation of section 404. The point is

simply that those agencies have not done so. The last

time that they spoke in a way that merited

deference—when they jointly promulgated the 2008

regulations—they put suction dredge mining within

the Corps’ purview. The Corps may now wish to

disclaim permitting authority over suction dredge

mining. But the current rules say what they say, and

no principle of agency deference accords the

emanation of an intention the same stature as a rule

promulgated after notice and comment.

Accordingly, I respectfully dissent.

Appendix B-1

FILED: June 01, 2017

IN THE COURT OF APPEALS

OF THE STATE OF OREGON

EASTERN OREGON MINING ASSOCIATION;

GUY MICHAEL; and CHARLES CHASE,

Petitioners-Appellants,

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.

Marion County Circuit Court

10C24263

___________________________________________

WALDO MINING DISTRICT, an unincorporated

association; THOMAS A. KITCHAR;

and DONALD R. YOUNG,

Petitioners-Appellants,

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.

Marion County Circuit Court

11C19071

A156161

Appendix B-2

On remand from the Oregon Supreme Court, Eastern

Oregon Mining Association v. DEQ, 360 Or 10, 376

P3d 288 (2016).

Courtland Geyer, Judge.

Submitted on remand August 23, 2016.

Argued on remand May 04, 2017.

James L. Buchal argued the case for appellants. With

him on the briefs was Murphy & Buchal LLP.

Michael A. Casper, Assistant Attorney General,

argued the cause for respondents. On the answering

brief were Ellen F. Rosenblum, Attorney General,

Anna M. Joyce, Solicitor General, and Inge D. Wells,

Assistant Attorney General. On the supplemental

brief were Ellen F. Rosenblum, Attorney General,

Benjamin Gutman, Solicitor General, and Michael A.

Casper, Assistant Attorney General.

Before Armstrong, Presiding Judge, and Egan, Judge,

and Shorr, Judge.

SHORR, J.

Portion of judgment concluding DEQ had authority to

issue 2010 700-PM permit under section 402 of the

Clean Water Act affirmed; otherwise declining to

address remaining moot issues under ORS 14.175.

Appendix B-3

_________________________________________________

DESIGNATION OF PREVAILING

PARTY AND AWARD OF COSTS

Prevailing party:

Respondents

[ ] No costs allowed.

[X] Costs allowed, payable by Appellants.

[ ] Costs allowed, to abide the outcome on remand,

payable by

_________________________________________________

SHORR, J.

This case returns to us on remand from the

Supreme Court. The first issue on remand is whether

we will exercise our discretion under ORS 14.175 to

decide the otherwise moot issues presented by this

case. As discussed below, we decide to exercise our

discretion to reach only petitioners’ first assignment

of error. With respect to the merits of that assignment,

we determine, based on our decision in a prior related

case, that the trial court did not err in concluding that

respondent Department of Environmental Quality

(DEQ) had the delegated authority under section 402

of the Clean Water Act 1 to issue the general permit to

regulate “visible turbidity” from small suction dredge

mining. We decline to exercise our discretion to reach

the second through fourth assignments of error.

This litigation and the type of small suction dredge

mining permit at issue has a long history. Some

background is helpful to understand our opinion. We

1 As we have done in the past, we refer to the Federal Water

Pollution Control Act Amendments of 1972, 33 USC §§ 12511387, by the more commonly used “Clean Water Act.”

Appendix B-4

start with a brief history of the prior related case,

which, as we later discuss, resolves our decision on the

first assignment of error. The two primary parties

involved in this case, petitioner Eastern Oregon

Mining Association (EOMA) and respondent DEQ,

were also parties to that prior case, Northwest

Environmental Defense Center v. EQC, 232 Or App

619, 223 P.3d 1071 (2009), rev. dismissed, 349 Or 246

(2010) (Northwest Environmental Defense Center I). In

that case, petitioners EOMA and other petitioners

(collectively

petitioners) 2

sought

a

judicial

determination from us under ORS 183.400 that would

have invalidated a general discharge permit, which

was known as the “700-PM permit,” that was issued

by DEQ in 2005. 3 232 Or App at 622. The 2005 700PM permit placed conditions on the operation of small

suction mining dredges in Oregon waters. Id.

Petitioners are individual small suction dredge

miners and associations of such miners. Small suction

dredge mining generally involves using a gas-powered

pump to pull streambed sediments and water through

a small intake hose, which passes the material

through a sluice tray that separates out gold and other

dense particles for collection, and then returns the

discharged water and lighter material back into the

stream. Id. at 623.

2 There is some, but not complete, overlap among petitioners in

Northwest Environmental Defense Center I and petitioners in this

appeal.

The 700-PM permit was adopted by DEQ’s policy and rulemaking board, the Oregon Environmental Quality Commission,

and issued by DEQ. Northwest Environmental Defense Center I,

232 Or App at 623 n. 2.

3

Appendix B-5

In the prior case, petitioners argued to us that the

permitting of discharges from small suction dredge

mining was within the exclusive regulatory authority

of the Army Corps of Engineers (Corps) under the

Clean Water Act. Id. at 622. In other words,

petitioners claimed that DEQ had no authority under

federal law to issue the 700-PM permit. Conversely,

DEQ argued that it had the delegated authority to

issue the permit under the Clean Water Act’s National

Pollution Discharge Elimination System (NPDES)

and ORS 468B.035, by which the state accepted that

delegated authority. 4 Northwest Environmental

Defense Center I, 232 Or App at 622. Broadly stated

for these introductory purposes, the Corps has

exclusive authority under section 404 of the Clean

Water Act to regulate the permitting of the “discharge

of dredged or fill material” into navigable waters. 33

USC § 1344(a). Separately, the Environmental

Protection Agency (EPA) has the authority under

Northwest Environmental Defense Center (NEDC), an

environmental interest group, was also a party to the prior case

and argued that the 700-PM permit was invalid because DEQ

“failed to follow certain procedural requirements and because the

permit violates aspects of the Clean Water Act.” Northwest

Environmental Defense Center I, 232 Or App at 622.

4

NEDC is not a party to this case, although issues related to

NEDC are raised here. In later litigation, NEDC again

challenged DEQ’s practices with respect to the issuance of small

suction dredge mining permits by filing a petition for review in

the circuit court. NEDC ultimately reached a settlement

agreement with DEQ that resolved that litigation. As part of this

case, petitioners contest DEQ’s authority to resolve certain issues

relating to the permitting of small suction dredge mining through

that settlement agreement rather than through administrative

rule-making or contested-case procedures. As discussed below,

we do not exercise our discretion to reach that issue.

Appendix B-6

section 402 of the Clean Water Act to regulate the

permitting of the “discharge of any pollutant” into

navigable waters. 33 USC § 1342(a)(1), (4). As part of

the NPDES program, states also have the delegated

authority to administer their own permit programs for

the discharge of pollutants into navigable waters.

Id. § 1342(a)(3), (b).

In December 2009, we issued our opinion in

Northwest Environmental Defense Center I, which

addressed the 700-PM permit that DEQ issued in

2005. We examined whether the small suction dredge

mining that was regulated by that 700-PM permit

involved the discharge of dredged material,

exclusively regulated by the Corps, or the discharge of

pollutants, which can be regulated by the state. 232

Or App at 630. We concluded that small suction

dredge mining usually “involves the placement of

dredged spoil and mining tailings in piles and that

such a discharge constitutes the ‘discharge of dredged

material’ ” that is regulated exclusively by the Corps.

Id. at 643-44. However, we further concluded that

small suction dredge mining also involves the

discharge of “turbid wastewater—i.e., the discharge of

water that contains suspended solids.” Id. at 644. We

determined that turbid wastewater sent further

downstream is a “pollutant” regulated by the EPA

and, by federal statutory delegation, the state. Id. at

644-45. We noted that the problem was that the 2005

700-PM permit regulated “all waste discharges from

small suction dredges,” which would include the

regulation of both the discharge of “dredged material”

that piles up in navigable waterways and turbid

wastewater that disperses water and suspended solids

further downstream. Id. at 645 (emphasis in original).

Appendix B-7

The United States Supreme Court has held that

the regulatory authority granted to the Corps by

section 404 (governing, in part, the discharge of

“dredged or fill material”) forecloses the EPA’s

authority to act under section 402 (governing the

discharge of “any pollutant[s]”). Coeur Alaska, Inc. v.

Southeast Alaska Conservation Council, 557 U.S. 261,

274, 129 S Ct 2458, 174 L Ed 2d 193 (2009) (stating

that the Clean Water Act “is best understood to

provide that if the Corps has authority to issue a

permit for a discharge under § 404, then the EPA lacks

authority to do so under § 402”). As a result of the

encroachment of the 2005 700-PM permit on the

Corps’ exclusive regulation of the discharge of dredged

material (even if the permit also regulated pollutants

in the form of turbid wastewater), we held that the

permit exceeded the state’s “statutory authority to

implement the Clean Water Act.” Northwest

Environmental Defense Center I, 232 Or App at 645.

Following

our

decision

in

Northwest

Environmental Defense Center I, the parties sought

and initially were allowed review by the Oregon

Supreme Court. In the meantime, after our decision,

the 2005 700-PM permit expired and was replaced by

DEQ in July 2010 by a newly issued 700-PM permit

regulating small suction dredge mining. Rather than

exercising its rule-making authority, DEQ issued the

new permit as an “order in other than a contested

case.” See ORS 468B.050(2) (giving DEQ authority to

issue certain permits by rule or order). The new 2010

permit, compared to the 2005 permit, focused on

regulating just the discharge of “visible turbidity” in

streams and narrowed the permit to respond directly

to our decision in Northwest Environmental Defense

Center I. DEQ stated in an accompanying fact sheet

Appendix B-8

that the 2010 permit was changed expressly to

“address[ ] a pending Oregon Court of Appeals ruling

that DEQ had not adequately articulated the basis for

prior permit conditions and requirements.”

As a result of the expiration of the 2005 permit, the

issues in Northwest Environmental Defense Center I

were rendered moot. Northwest Environmental

Defense Center v. Environmental Quality Commission,

349 Or 246, 245 P3d 130 (2010) (Northwest

Environmental Defense Center II). Accordingly, the

Supreme Court dismissed the petition for review. Id.

At that time in our history, our courts did not have the

“judicial power under the Oregon Constitution” to

decide a moot case even if the issues presented by the

case were “capable of repetition, yet evading review.”

Yancy v. Shatzer, 337 Or 345, 363, 97 P3d 1161 (2004),

overruled by Couey v. Atkins, 357 Or 460, 520, 355 P3d

866 (2015). Thus, the case in Northwest

Environmental Defense Center II concluded. 349 Or at

246.

That brings us to the current litigation, which in

many ways is “déjà vu all over again” 5 of the prior

litigation. Following DEQ’s issuance of the 2010 700PM permit, the mining petitioners again challenged

the small suction dredge mining permit. This time,

however, they filed a petition for judicial review in the

circuit court under ORS 183.484 challenging the

permit (instead of filing directly with us as a rule

challenge under ORS 183.400). 6 In the operative

5 Attributed to Yogi Berra.

6 Several mining petitioners filed two separate petitions for

judicial review. The environmental group NEDC filed its own

petition for judicial review, which was later resolved by

Appendix B-9

petition, petitioners ultimately asserted two claims for

relief alleging several violations of law. In their first

claim for relief, petitioners alleged that DEQ violated

federal law in issuing the 2010 700-PM permit

because—petitioners claimed again—the permit

regulated the discharge of dredged material that was

exclusively regulated by the Corps under section 404

of the Clean Water Act, and, accordingly, was not

within the EPA and the state DEQ’s delegated

regulatory authority over the discharge of pollutants

under section 402. As part of their first claim,

petitioners also contended that DEQ violated state

water quality laws in issuing the 2010 700-PM permit.

In their second claim for relief, petitioners alleged that

a settlement agreement reached between DEQ and

NEDC that related to the 2010 700-PM permit

violated Oregon law, because it was a privately

negotiated agreement that resolved issues that were

required to be addressed publicly through either

administrative rule making or procedures applicable

to the issuance of agency orders. Petitioners sought,

among other things, to set aside the 700-PM permit

and a declaration that the settlement agreement could

not be used to issue any new suction dredge mining

permit. DEQ moved for summary judgment on all of

petitioners’ claims for relief, and petitioners crossmoved for summary judgment on most, but not all, of

their claims.

The trial court granted summary judgment to

DEQ, agreeing with DEQ on nearly every issue. There

settlement agreement. For ease of reference, we follow the

parties’ practice of relying on the operative petition filed by lead

petitioner EOMA in Marion County Circuit Court Case

No. 10C-24263.

Appendix B-10

are four issues that are relevant to this appeal. First,

the trial court concurred with DEQ that it had the

delegated authority under section 402 of the Clean

Water Act to issue the 2010 700-PM permit to regulate

turbid wastewater. Second, the trial court agreed with

DEQ that it had the authority under state law to issue

the 700-PM permit. Third, the trial court also agreed

with DEQ that substantial evidence supported DEQ’s

decision to issue the 700-PM permit. Fourth, and

finally, the trial court concluded that DEQ had

authority to reach a settlement agreement with

NEDC that resolved pending litigation, and that DEQ

did not have to reach that agreement through either

rule-making or contested-case procedures. After the

parties stipulated to the resolution of one outstanding

issue, the trial court granted DEQ summary judgment

on all claims and denied petitioners summary

judgment on all claims.

Petitioners then appealed the trial court’s

judgment. As happened previously with respect to the

2005 permit, the 2010 700-PM permit expired during

the pendency of the appeal and a new 2015 permit was

issued. Eastern Oregon Mining Assoc. v. DEQ, 273 Or

App 259, 261, 361 P3d 38 (2015) (Eastern Oregon

Mining Assoc. I), rev.’d and rem’d, 360 Or 10, 376 P3d

288 (2016) (Eastern Oregon Mining Assoc. II).

However, unlike during the prior Northwest

Environmental Defense Center litigation, when, under

Yancy, the appellate courts lacked the judicial power

to decide moot cases, by the time we issued our

decision in Eastern Oregon Mining Assoc. I, the

Supreme Court had overruled Yancy, holding in Couey

that Oregon courts do have discretion to decide certain

otherwise moot cases that are “public actions” or

Appendix B-11

involve “matters of public interest.” Couey, 357 Or at

520.

Couey held that the legislature had the authority

under the Oregon Constitution to enact ORS 14.175, 7

which confirms the authority of Oregon courts to

consider otherwise moot cases if they meet three

statutory factors. 357 Or at 463. We applied those

factors in Eastern Oregon Mining Assoc. I and held

that the issues presented did not satisfy the third

factor, which requires that “[s]imilar acts[ ] are likely

to evade judicial review in the future.” 273 Or App at

262. We concluded that a future “challenge to the 2015

permit is not likely to evade judicial review” and that

petitioners could use the accumulated work from their

challenge to the 2010 permit to challenge the 2015

permit. Id.

On review, the Supreme Court disagreed and

concluded that petitioners had met each of the three

factors under ORS 14.175. Eastern Oregon Mining

Assoc. II, 360 Or at 19. The Supreme Court remanded

7 ORS 14.175 provides, in part, that, in any action in which a

party alleges that a certain government act, policy or practice is

unconstitutional or otherwise contrary to law,

“the party may continue to prosecute the action and the court

may issue a judgment on the validity of the challenged act,

policy or practice even though the specific act, policy or practice

giving rise to the action no longer has a practical effect on the

party if the court determines that:

“(1) The party had standing to commence the action;

“(2) The act challenged by the party is capable of repetition, or

the policy or practice challenged by the party continues in

effect; and

“(3) The challenged policy or practice, or similar acts, are likely

to evade judicial review in the future.”

Appendix B-12

the case to us to decide whether we would exercise our

discretion to review the issues in this otherwise moot

case. Id. With that long procedural history stated and

our stage set, we turn to the two issues presently

before us. First, we consider whether we should

exercise our discretion to reach some or all of the

otherwise moot issues presented by petitioners’ four

assignments of error. Second, after deciding to

consider just petitioners’ first assignment of error, we

consider whether the trial court erred in determining

that DEQ had the authority to issue the 2010 700-PM

permit under section 402 of the Clean Water Act.

We consider first whether to exercise our discretion

to consider any of the issues on appeal. As stated

above, petitioners raise four assignments of error

arising from the trial court’s grant of DEQ’s motion for

summary judgment and the denial of petitioners’

cross-motion for summary judgment. Petitioners urge

us to exercise our discretion to consider the merits of

all four assignments of error. In response, DEQ agrees

that we should consider the first assignment of error,

regarding whether DEQ had authority under the

Clean Water Act to issue the 2010 700-PM permit to

regulate turbid wastewater. It contends, however,

that we should not consider the remaining three

assignments. As we discuss below, we agree with DEQ

and choose to address only petitioners’ first

assignment of error.

There has been little, if any, guidance since Couey

on what should guide our exercise of discretion to

consider the merits of otherwise moot issues. See, e.g.,

Hooper v. Division of Medical Assistance Programs,

273 Or App 73, 84, 356 P3d 666 (2015) (concluding

that we will exercise our discretion under

Appendix B-13

and noting “the ongoing relationship between the

parties and the petitioner’s need for the medical

transportation service ultimately at issue”). Couey,

however, offers potential guideposts in its review of

the history of the mootness doctrine.

In Couey, the Supreme Court concluded that

mootness is a prudential, rather than a constitutional,

constraint on justiciability in cases involving “public

actions” or “matters of public interest.” 357 Or at 520.

The court noted that the legislature’s enactment of a

statute, ORS 14.175, to permit consideration of

certain otherwise moot cases merely codified the

historical practice of courts to consider whether to

exercise their judicial power under the Oregon

Constitution over such cases. 357 Or at 521 (stating

that “[s]uch legislation purports to confer no more

authority than what we have just concluded the courts

possess under Article VII (Amended), section 1”).

Consequently, considering that Couey carefully

discussed the history of the prudential justifications

for addressing certain otherwise moot cases, we find it

appropriate to look to those same justifications when

deciding whether to exercise our discretion to consider

the issues in this case. See Eastern Oregon Mining

Assoc. II, 360 Or at 15 (stating that “[e]xisting case

law on the subject of mootness offers guidance

concerning the circumstances under which the court

will continue to dismiss moot claims” even when

considering just prudential considerations).

Although the following list is not exhaustive, we

identify several significant considerations bearing on

whether to exercise our judicial power over moot cases

involving “public actions” or “matters of public

interest.” Couey, 357 Or at 520. Those factors may

Appendix B-14

include, but are not limited to, the adversarial nature

of the parties’ interests, the effect of the decision on

both the parties and others not before the court,

judicial economy, and the extent of the public

importance of the issues presented.

First, Couey recognized that the nature of the

parties’ adverse interests may guide a court’s exercise

of discretion in considering whether to decide

otherwise moot cases. In Couey, when reviewing the

historical prudential justifications for dismissing

moot cases, the court observed that early courts

dismissed moot cases to avoid creating “ ‘rules for the

government of cases in which the real parties would

have had no opportunity to be heard.’ ” 357 Or at 500

(quoting Smith v. Cudworth, 41 Mass 196, 197 (1837)

(emphasis added)). Relatedly, existing case law on the

issue of mootness has also considered whether the

“court’s decision no longer will have a practical effect

on or concerning the rights of the parties.” Brumnett

v. PSRB, 315 Or 402, 406, 848 P2d 1194 (1993). 8 Given

that history, when deciding whether to exercise our

discretion, we conclude that it is appropriate to

8 Of course, in “public action” cases or those involving “matters of

public interest,” the court first considers those same two factors

in determining whether a case is moot before turning to the test

in ORS 14.175(1) to (3) and then whether to exercise discretion

to consider the otherwise moot case. See, e.g., Eastern Oregon

Mining Assoc. II, 360 Or at 15-19 (undertaking analysis). The

application of those factors, even if they have already been

addressed as part of mootness analysis, may still be relevant to

the later issue of whether to exercise discretion to consider the

issues in the case. The parties’ interests may or may not be

adverse in the future even if the litigation at issue has been

resolved. As is the case here, petitioners and DEQ appear likely

to have adverse interests into the future.

Appendix B-15

consider whether the parties’ interests remain

adverse as to future disputes that are likely to recur.

Second, and relatedly, we may also consider whether

the parties are advocating only narrow arguments and

rules of law that may benefit just themselves or are

presenting arguments affecting a wider group of

parties or interests.

Third, Couey recognized “judicial economy” as a

factor that past courts have considered when deciding

whether to exercise judicial power over moot cases.

357 Or at 501. Courts disposed of moot cases, in part,

to avoid “ ‘decid[ing] questions which might never

arise.’ ” Id. at 500 (quoting Smith, 41 Mass. at 197). Of

course, ORS 14.175 already provides that we are to

consider whether an act challenged by a legal action

is “capable of repetition” and yet “likely to evade

judicial review.” ORS 14.175(2)-(3). However, in

deciding whether to exercise our discretion, we may

dig deeper to consider if the challenged act is likely to

arise often. We may also consider whether judicial

economy supports addressing the issue presented by

the litigation before us based on the existing record

and circumstances or whether another, future case

might present a more developed record or more

thoroughly developed arguments.

Considering judicial economy as a relevant factor

is also consistent with our decisions in other similar

areas where we exercise discretion. For example, in

plain-error analysis, we will often exercise our

discretion to correct plain error where not doing so

would “waste further judicial resources.” State v.

Simkins, 263 Or App 459, 461, 330 P3d 1235 (2014).

Appendix B-16

Fourth, Couey recognizes the relative “public

importance” of a case as a historical consideration in

guiding courts’ discretion to exercise judicial power

over otherwise moot cases. 357 Or at 508, 510-11, 519,

521-22. That includes consideration of the “public

interest” in the issues involved as well as the universe

of people and interests potentially affected by the

challenged rule or practice. Id. at 508. Couey

concludes that the Oregon Constitution does not

“require dismissal” of a case that is moot if it is a

“public action[ ]” or one involving “matters of public

interest.” Id. at 520 (emphasis in original). The facts

in Couey did not require the Supreme Court to “define

the outer limits of what might constitute a ‘public

action’ or one involving issues of ‘public interest’ ” for

the purpose of determining the authority of a court to

decide an otherwise moot case. Id. at 522. Although

we do not undertake to define those outer limits here

either, we conclude that courts may consider the

relative public importance of the issues and the

universe of people or interests potentially affected as

part of its exercise of discretion.

As stated, this list is not exhaustive. In addition,

some factors could be in conflict but still lead a court

to exercise discretion to hear a moot case or issue. For

instance, a challenged practice may not be likely to

repeat very often in the future, but it may have such

widespread public effect and importance that the

latter factor still leads us to exercise our discretion.

Applying those factors here, we conclude that we

should exercise our discretion to consider the issues

presented in petitioners’ first assignment of error, but

not the second through fourth assignments of error.

As part of their first assignment of error, petitioners

Appendix B-17

contend that the trial court erred in concluding that

DEQ had authority under federal law, viz., section 402

of the Clean Water Act, to issue a permit that

regulates petitioners’ small suction dredge mining.

We conclude that the discretionary factors that we

discuss above—(a) the past and continuing adversity

of the parties’ interests, (b) the application of the

disputed federal and state laws to wider interests

than those of the parties themselves, (c) judicial

economy, and (d) the relative public importance of the

case and the breadth of people and interests

potentially

affected—support

resolving

that

assignment of error. These same parties have been

litigating a nearly identical legal issue for years, and

there is no indication that the litigation of these issues

will end if we dismiss this appeal as moot. Indeed,

DEQ has issued a new 700-PM permit that relies on

section 402 of the Clean Water Act as a continuing

source of its authority to regulate small suction dredge

mining. The litigated issues certainly affect the

parties, but they also affect a wider class of interests—

those interested in the proper regulation and practice

of small suction dredge mining, including government,

environmental, and mining interests. Judicial

economy also favors considering the first assignment

of error. The factual record has been completely and

well developed. The first assignment presents a legal

issue. The parties have already developed and

presented their arguments to the court twice—each

time being prevented from reaching a conclusion due

to mootness. Refusal to consider petitioners’ argument

on the first assignment of error would lead to a waste

of further judicial resources in developing the factual

and legal issues again in new litigation. Finally,

although we do not consider this a matter of

Appendix B-18

overarching public importance, it raises a significant

issue that affects the public interests noted above.

In their second assignment of error, petitioners

argue that the trial court erred in concluding that

DEQ properly issued the 2010 700-PM permit under

state law. Although petitioners’ argument in this

assignment is not entirely clear, they appear to argue

that, although the 2010 700-PM permit “purports” to

be issued under state law, ORS 468B.050, as well as

the federal Clean Water Act, it actually is solely

authorized, incorrectly in petitioners’ view, under the

Clean Water Act and contains requirements unique to

federal law. DEQ, in response, appears to contend that

its authority is under “both” state and federal law in

furtherance of the “partnership” contemplated by the

Clean Water Act—presumably the state’s delegated

authority under section 402 of the Clean Water Act to

issue NPDES permits. In their reply brief, petitioners

then argue that “whether or not [DEQ] might exercise

state-law-based regulatory power * * * is not before

this Court” and asks us to remand the case back to

DEQ for new permitting under state law or possibly

under different authority, viz., section 401 of the

Clean Water Act.

Without reaching the merits of this dispute, we

choose not to exercise our discretion to reach

petitioners’ second assignment of error because the

argument, as framed by the parties, is not well

developed for this court and may be quite narrow.

Both parties’ arguments can be read to contend that

Appendix B-19

the purely state-law issues are not even properly

before us. For that reason, we will not reach them. 9

We also do not exercise our discretion to reach

petitioners’ third and fourth assignments of error. In

the third assignment of error, petitioners contend that

the trial court erred in concluding that DEQ’s findings

were supported by substantial evidence. Without

discussing each of the discretionary factors that apply

here, we find most persuasive that this assignment of

error raises a case-bound question that, although

perhaps significant to this now-mooted case, does not

present a recurring legal issue that has implications

beyond this particular litigation. Petitioners also no

longer have any ongoing or future “adverse interest”

in whether the 2010 700-PM permit is supported by

“substantial evidence.” Petitioners are no longer

subject to that expired 2010 permit and, significantly,

the 2015 permit is based on a different factual record.

9 There is a chance that there may be new state laws with respect

to small suction dredge mining in the coming years. In 2013, the

legislature passed Senate Bill (SB) 838, which imposed a

moratorium on suction dredge mining from January 2, 2016,

until January 2, 2021, in “any river and tributary thereof” that

contains “essential indigenous anadromous salmonid habitat

* * * or naturally reproducing populations of bull trout,” except

where the populations do not exist due to a “naturally occurring

or la

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Petition for Writ of Certiorari — Eastern Oregon Mining Association, et al., Petitioners v. Oregon Department of Environmental Quality, et al. | Frix