# Record and brief — Coeur Alaska, Inc. v. Southeast Alaska Conservation Council

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Record and brief
- **Published:** January 1, 2009
- **Citation:** 557 U.S. 261

## Text

MUCAS IUE Vi 70" rave i OF

No 07-984
Vide 07-990
Title Coeur Alaska, Inc.. Petitioner
.
Southeast Alaska Conservation Council, et al
Docketed January 29, 2008
Lower Ct United States Court of Appeals for the Ninth Circuit
Case Nos. (06-35679)

Decision Date: May 22, 2007
Rehearing Denied: October 29, 2007
Questions Presented

-~~Date~~~ ~~~~~ ~~Proceedings and Orders~~~~~~~~~~~~~~~~~~~~~

Jan 28 2008 Petition for a writ of certiorari filed. (Response due February 28, 2008)
Feb || 2008 Brief of respondent Goldbelt, Inc. in support filed. VIDED.

Feb 21 2008 Letter of February 19, 2008, from counsel for respondent Alaska received.

Feb 25 2008 Order extending time to file response to petition to and including March 31, 2008, for all
respondents.

Feb 28 2008 Brief amici curiae of National Mining Association, et al. filed.
Feb 28 2008 Brief amicus curiae of Mountain States Legal Foundation filed.

Mar 26 2008 Order further extending time to file response to petition to and including April 30, 2008,
for all respondents.

Apr 25 2008 Order further extending time to file response to petition to and including May 14, 2008,
for all respondents.

May 14 2008 Brief of Federal Respondents in opposition filed. VIDED.

May 1|4 2008 Brief of respondent Southeast Alaska Conservation Council, et al. in opposition filed
VIDED

May 27 2008 DISTRIBUTED for Conference of June 12, 2008
May 27 2008 Reply of petitioner Coeur Alaska, Inc. filed. (Distributed)

May 28 2008 Letter and attachment dated May 27, 2008, proposing a lodging, received from counsel
for the petitioner. (Distributed)

Jun 16 2008 DISTRIBUTED for Conference of June 19, 2008.

Jun 23 2008 DISTRIBUTED for Conference of June 26, 2008.

Jun 27 2008 Petition GRANTED The case is consolidated with No. 07-990, and a total of one hour is
allotted for ora! argument

Jul 15 2008 The time within which to file the joint appendix and petitioners’ briefs on the merits is
extended to and including September 2, 2008. VIDED

Jul 15 2008 The time within which to file respondents’ briefs on the merits is extended to and
including October 23, 2008. VIDED

Aug 13 2008 Consent to the filing of amicus briefs, in support of either party or neither party, received
from counsel for the petitioner Alaska. VIDED

Aug 13 2008 Consent to the filing of amicus briefs, in support of either party or neither party, received
from counsel for the respondent Goldbelt, Inc VIDED

Aug 13 2008 Consent to the filing of amicus briefs, in support of either party or neither party, received
trom counsel for the respondents Southeast Alaska Conservation, Sierra Club, and Lynn

Vocket tor U/-Y34

Aug 14 2008
Aug 14 2008
Aug 19 2008

Sep 17 2008
Sep 17 2008

Sep 17 2008
Sep 17 2008
Sep 17 2008
Sep 24 2008
Sep 24 2008
Sep 24 2008
Sep 24 2008
Sep 24 2008
Sep 24 2008
Oct 7 2008

Nov 4 2008
Nov 7 2008

Nov 14 2008

Nov
Nov
Nov
Nov
Nov
Nov
Nov

i4 2008
14 2008
14 2008
14 2008
14 2008
28 2008
28 2008

Dec | 2008
Dec 8 2008
Dec § 2008
Dec 8 2008
Dec 8 2008
Jan 12 2009

Page 2 of 5

Canal Conservation. VIDED
The time within which to file the joint appendix and petitioners’ briefs on the merits is
further extended to and including September 17, 2008. VIDED

The time within which to file respondents’ briefs on the merits is further extended to and
including November 7. 2008. VIDED

Consent to the filing of amicus briefs, in support of either party or neither party, received
from counsel for the petitioner Coeur Alaska. VIDED

Brief of petitioner Alaska filed. VIDED. "

Brief of respondents United States Army Corps of Engineers, et al. in support of
petitioners filed. VIDED

Brief of petitioner Coeur Alaska, Inc. filed. VIDED.

Brief of respondent Goldbelt, Inc. in support of petitioners filed. VIDED
Joint appendix filed (2 volumes). Statement of costs received. VIDED

Brief amici curiae of National Mining Association, et al. filed. VIDED.
Brief amicus curiae of National Association of Home Builders filed. VIDED
Brief amicus curiae of Council of Alaska Producers filed. VIDED

Brief amici curiae of Pacific Legal Foundation, et al. filed. VIDED.

Brief amicus curiae of Mountain States Legal Foundation filed. VIDED.
Brief amicus curiae of Resource Development Council for Alaska, Inc. filed. VIDED
SET FOR ARGUMENT ON Monday, January 12, 2009

CIRC LATED.

Brief or respondents Southeast Alaska Conservation Council, Sierra Club, and Lynn
Canal Conservation filed. VIDED. (Distributed)

Brief amici curiae of David M. Chambers, Catherine Coumans, and Carol Ann Woody
filed. VIDED. (Distributed).

Brief amici curiae of American Rivers, et al. filed. VIDED. (Circulated)

Brief amicus curiae of Honorable G. Tracy Mehan, II filed. VIDED (Circulated)
Brief amici curiae of Members of Congress filed VIDED. (Circulated)

Brief amici curiae of Nondalton Tribal Council, et al. filed VIDED. (Distributed)
Motion of the Solicitor General for divided argument VIDED

Record received from the U.S.C_A. for the 9th Circuit. (1 box)

Record received from the Chambers of Honorable Judge Procter Hug, Jr. (U.S.C_A. for
9th Circuit) for the U.S D.C. for the District of Alaska (1 « lope)

Motion for divided argument filed by the Solicitor General GRANTED. VIDED
Reply of Federal Respondents supporting petitioners filed. VIDED (Distributed)
Reply of petitioner Coeur Alaska, Inc. filed. VIDED. (Distributed)

Reply of respondent Goldbelt, Inc. supporting petitioners filed VIDED. (Distributed)
Reply of petitioner Alaska filed VIDED. (Distributed)

Argued. For federal respondents in support of petitioners: Gregory G_ Garre, Solicitor
General, Department of Justice, Washington, D.C. For petitioners: Theodore B_ Olson,
Washington, D.C. For respondents’ Thomas S. Waldo. Juneau, Alaska

Docket for 07-984

Name-- -~ Address ~ -

Attorneys for Petitioner:

Jonathan S. Franklin Fulbright & Jaworski L.L.P
Counsel of Record 801 Pennsylvania Avenue, N W

Washington, DC 20004
jfranklin@fulbright.com
Party name: Alaska

Theodore B. Olson Gibson Dunn & Crutcher LLP
Counsel of Record 1050 Connecticut Avenue, N.W
Washington, DC 20036
TOlson@gibsondunn.com
Party name: Coeur Alaska, Inc
Attorneys for Respondents:
David C. Crosby $280 Thane Road
Counsel of Record Juneau, AK 99801-7717
Party name: Goldbelt, Inc.

Edwin S. Kneedler Acting Solicitor General
Counsel of Record United States Department of Justice
950 Pennsylvania Avenue, N.W
Washington, DC 20530-0001
Party name: United States Army Corps of Engineers, et al.

Thomas S. Waldo Earthjustice
Counsel of Record 325 Fourth Street

Juneau, AK 99801
twaldo@earthjustice org

Party name: Southeast Alaska Conservation Council, et al.

Other:

James S. Burling Pacific Legal Foundation
3900 Lennane Drive, Suite 200
Sacramento, CA 95834

Party name: Pacific Legal Foundation, et al.

Duane J. Desiderio National Association of Home Builders
1201 1Sth Street, NW
Washington, DC 20005

Party name. National Association of Home Builders

Christopher T. Handman Hogan & Hartson, LLP

Pave 3 of 5

Phone

(202) 662-0466

(202) 955-8500

(907) 586-6262

(202) 514-2217

(907) 586-275 |

(916) 419-7111

(202) 866-8200

(202) 637-5719

Docket for 07-984 Pave 4 of 5

Columbia Square

$55 Thirteenth Street, N. W.

Washington, DC 20004
Party name: National Mining Association, et al

Michael Jungreis Hartig Rhodes Hoge & Lekisch (907)-276-1592
717K Street
Anchorage, AK 9950]

Party name: Resource Development Council for Alaska, Inc.

Paul J. Lawrence K&L Gates LLP (907) 276-1969
420 L Street, Suite 400
Anchorage, AK 99501-1971

Party name: Council of Alaska Producers

Jeffrey C. Parsons Western Mining Action Project (303 )-823-5738
440 Main Street, Suite 102
P.O. Box 349
Lyons, CO 80540
WMAP @igce.org
Party name: David M. Chambers, Catherine Coumans, and Carol Ann Woody

William Perry Pendley Mountain States Legal Foundation (303) 292-2021
2596 South Lewis Way
Lakewood, CO 80227

Party name: Mountain States Legal Foundation

Ethan G. Shenkman Wilmer Cutler Pickering Hale and Dorr, LLP (202) 663-6000
1875 Pennsylvania Ave., NW
|
Washington, DC 20006

Party name: Nondalton Tribal Council, et al

Deborah A. Sivas Environmental Law School (650)-723-0325
Mills Legal Clinic of Stanford Law School
$59 Nathan Abbott Way
Stanford, CA 94305-8610

Party name American Rivers, et al

David C. Vladeck Georgetown University Law Center (202) 662-9540
600 New Jersey Ave, NW

Docket for 07-984

Washington, DC 20001

Party name’ Members of Congress

Amy J. Wildermuth University of Utah
S.J. Quinney College of Law
332 South 1400 East, Rm. 10!
Room 101
Salt Lake City, UT 84112
Party name: Honorable G. Tracy Mehan.I1), et al

Pave 5 of 5

(801) 581-6833

PETITION
FOR

WRIT OF
CERTIORARI

Supreme :
preme Court, U.S

07-984 JAN 2 8 2008

OFFICE OF THE CLERK
No.
is IN THE iy

Supreme Court of the United States

COEUR ALASKA, INC.,
Petitioner,
V.

SOUTHEAST ALASKA CONSERVATION COUNCIL, ET AL.,
Respondents.

On Petition For A Writ Of Certiorari
To The United States Court Of Appeals
For The Ninth Circuit

PETITION FOR A WRIT OF CERTIORARI

ROBERT A. MAYNARD THEODORE B. OLSON
PERKINS COLE LLP Counsel of Record
251 Kast Front St. Ste. 400 MATTHEW D. MCGILL
Boise, 1D 83702 AARON D. LINDSTROM

GIBSON, DUNN & CRUTCHER LLP
1050 Connecticut Ave., N.W.
Washington, DC 20036

(202) 955-8500

Counsel for Petitioner

QUESTION PRESENTED

The Clean Water Act provides two separate pro-
grams for the permitting of discharges into navigable
waters of the United States. Under Section 404 of
the Act, the Army Corps of Engineers may issue
permits for discharges of “fill material,” subject to
the water-quality restrictions imposed by Section
404(b)(1). Under Section 402 of the Act, the Envi-
ronmental Protection Agency may issue permits for
the discharge of all other pollutar’s, subject to the
effluent limitations prescribed under Sections 301
and 306 of the Act.

In 2002, after notice and comment, the EPA and
the Corps jointly promulgated a regulation defining
the statutory term “discharge of fill material” to in-
clude “tailings or similar mining-related materials.”
Pursuant to its authority under Section 404 to grant
permits for the discharge of “fill material,” the Corps
granted petitioner a permit to deposit certain mine
tailings in a lake.

In the decision below, the Ninth Circuit invali-
dated that permit even though it acknowledged that
the proposed discharge “facially meets the current
regulatory definition of ‘fill material.” Upsetting 35
years of established agency practice, the court of ap-
peals held that the Corps may not issue a Section
404 permit for the discharge of fill material if the fill
material in question otherwise would be subject to a
Section 301 or 306 effluent limitation.

The question presented is whether the Ninth
Circuit erred in reallocating the Corps’ and EPA’s
permitting authority under the Act.

u
PARTIES TO THE PROCEEDING

In addition to Southeast Alaska Conservation
Council, the Sierra Club and Lynn Canal Conserva-
tion were appellants in the court of appeals. In addi-
tion to Coeur Alaska, Inc., the following parties (or
their predecessors in office, see this Court’s Rule
35.3) were appellees in the court of appeals and are
respondents in this Court pursuant to this Court’s
Rule 12.6: the United States Army Corps of Engi-
neers; Kevin J. Wilson, in his official capacity as Dis-
trict Engineer; Michael Rabbe, in his official capacity
as Chief of the Regulatory Branch; George S. Dunlop,
in his official capacity as Principal Deputy Assistant
Secretary of the Army (Civil Works); the United
States Forest Service; the State of Alaska; and
Goldbelt, Inc.1

Pursuant to this Court’s Rule 29.6, undersigned
counsel state that Coeur d’Alene Mines Corporation
is the parent company of Coeur Alaska, Inc. and that
no other publicly held company owns 10% or more of
its stock. Coeur d'Alene Mines Corporation has no
parent company and no publicly neld company owns
10% or more of its stock.

| Kevin J. Wilson replaced Timothy J. Gallagher as District
Engineer, Mi-hael Rabbe replaced Larry L. Reeder as Chief of
the Regulatory Branch, and George S. Dunlop replaced Dominic
Izzo as Principal Deputy Assistant Secretary of the Army (Civil
Works).

‘

Il.

ITT.

ill

TABLE OF CONTENTS

THE BROAD RAMIFICATIONS OF THE
NINTH CIRCUITS DECISION MARK THIS
CASE AS ONE OF _ EXCEPTIONAL

SIT Soinisnddscspimuastanibnamiapumiiabioiactine ines

A. The Ninth Circuit’s Decision
Radically Alters The Longstanding
Structure Of The Clean Water

Act’s Discharge Permit Programs ......

B. The Ninth Circuit’s Decision Will
Severely Harm the Nation’s

I icine hccsnitiiiaciisiaiiibiginsinnignans

C. The Ninth Circuit’s Decision
Threatens To Disrupt The
Economies Of Alaska And Other

, ESR CLEA ae

THE NINTH CIRCUIT'S CONSTRUCTION
OF THE CLEAN WATER’ ACT
CONTRAVENES THE ACTS TEXT AND
STRUCTURE, DECISIONS OF THIS COURT,
AND DECISIONS OF OTHER COURTS OF

EERE Pe ate CI a

THE NINTH CIRCUITS REFUSAL To
DEFER TO CORPS’ INTERPRETATION OF
ITS OWN REGULATION CONFLICTS WITH

THIS COURT'S PRECEDENTS ..................e0000.
CONCLUSION

IPP POP eee eee eee eee eee ee eee eee ee ee eee eee eee eee eee eee

re ee ee ee ee ee ee ee ee ee ee

—

weed

iv
TABLE OF CONTENTS—Continued
APPENDIX A: Opinion of the United States

Court of Appeals for the Ninth Circuit ................

APPENDIX B: Order of the United States
Court of Appeals for the Ninth Circuit

Denying Rehearing En Banc ...................ceseeeeeeeeee

APPENDIX C: Opinion of the United States

District Court for the District of Alaska...............

APPENDIX D: Order of the United States
Court of Appeals for the Ninth Circuit

Granting Injunction Pending Appeal...................

APPENDIX E: Order of the United States
Court of Appeals for the Ninth Circuit
Denying Motion to Vacate the Injunction

I tins haiiindtensiantidmeeimemenbiedenakein

APPENDIX F: Order of the United States
Court of Appeals for the Ninth Circuit Staying

Et ERE ee einer as me Pe Pe ae

APPENDIX G: Order of the United States
Court of Appeals for the Ninth Circuit

Directing Preparation of Reclamation Plan.........

APPENDIX H: Relevant Provisions of the

I aisubeuillelie

Vv

TABLE OF AUTHORITIES
Page(s)

Cases
Auer v. Robbins, 519 U.S. 452 (1997) .............2.cceceees 28
Bates v. United States, 522 U.S. 23 (1997)............... 25
Bragg v. W. Va. Coal Ass’n,

248 F.3d 275 (4th Cir. 2O0Z).......cccccccccscccscsssccseees 16
Chevron U.S.A. Inc. v. Echazabal,

ES, ee Oe ee RR 2 29
Chevron U.S.A. Inc. v. Natural Res. Def.

Council,

a I icici iceiseretensnsciesiedsscepsiassiesadecinl tall 31
Friends of Crystal River v. U.S. E.P.A.,

35 F.3d 10738 (6th Cir. 1904)........ccccccccccoccscsccceeses 23
Greenfield Mills, Inc. v. Macklin,

361 F.3d 934 (7th Cir. 2004)................ccccccccresseees 22
HCSC-Laundry v. United States,

I Na ta a 26
Kentuckians for the Commonwealth, Inc.

v. Rivenburgh,

317 F.3d 425 (4th Cir. 2003)................ 2, 23, 29, 30
Morales v. Trans World Airlines, Inc.,

ee a Se ictiininicssdeciscinsencncdenciiiatadtnagasianl 26
Nat'l Ass’n of Home Builders v. Defenders

of Wildlife,

oe Ss En EE 29

vi

TABLE OF AUTHORITIES—Continued

Page(s)
Nat'l Cable & Telecomms. Ass’n v. Gulf

Power Co.,

I ccatneneiel 26
Officemax, Inc. v. United States,

428 F.3d 66S (Gth Cir. 2006)...........cccccccsccccccsccseee. 22
Purcell v. Gonzalez, 127 S. Ct. 5 (2006).................... 10
Rapanos v. United States,

I Rs Is ccensenscressesensacecoeson 21, 22
S.D. Warren Co. v. Me. Bd. of Envtl. Prot.,

Es Gy, FE CP ccccsccoccscececesccccscccscocceses 21, 25
Slodov v. United States,

i cnnoamnuions 22
State of Minn. by Spannaus v. Hoffman,

B43 F.Ba DIGS (Oth Cir. 1976).....000...000ccccecsecescees 23
Townsend v. Little, 109 U.S. 504 (1883)................... 26
United States v. Fisk, 70 U.S. 445 (1866)................. 22
United States v. Locke, 471 U.S. 84 (1985)............... 28
Statutes
a sniiminiednbdeneaiials 8
Lo isin ddbhladmundenedunenilihe 13
ss saandeceiesonadunbens 3, 4, 21
ST Se eee aR 5
a sdineuideceinisenaiiialanigil 19
sp icciliiebiesanendions passim

a canadandicenevsehecedoens passim

vil

TABLE OF AUTHORITIES—Continued

Page(s)
EN ERLE MERTEN OMT CN 19
Regulations
TE is sicocnsinsidsacnoneciinnisaningiunisdandaiaioasidl passim
ET iiccntrnissctinisdinctdabiniundaiimitiiddaniinenel passim
ON a 9
easel 14
Other Authorities

Proposed Revisions to the Clean Water Act
Regulatory Definitions of “Fill Material”
and “Discharge of Fill Material,”
65 Fed. Reg. 21,292 (Apr. 20, 2000)............ 3,4, 14

Final Revisions to the Clean Water Act
Regulatory Definitions of “Fill Material”
and “Discharge of Fill Material,”

67 Fed. Reg. 31,129 (May 9, 2002) ................ 22, 27
Reissuance of Nationwide Permits,

72 Fed. Reg. 11,092 (Mar. 12, 2007).................... 17
U.S. Army Corps of Engineers, Regulatory

Program Mission Statement........................-.....-. 29

U.S. Geological Survey, Mineral Commodity
is 17, 18

U.S.G.S., 2005 Minerals Yearbook,
Statistical Summary (Aug. 2007).....................4:. 19

PETITION FOR A WRIT OF CERTIORARI

Petitioner Coeur Alaska, Inc. respectfully sub-
mits this petition for a writ of certiorari to review the
judgment of the United States Court of Appeals for
the Ninth Circuit.

OPINIONS BELOW

The court of appeals’ opinion is reported at 486
F.3d 638. App., infra, la. The order denying the pe-
tition for rehearing en banc is unreported. Id. 36a.
The opinion of the United States District Court for
the District of Alaska is also unreported. /d. 38a.

JURISDICTION

The district court had jurisdiction over respon-
dent’s claims pursuant to 28 U.S.C. § 1331. The
court of appeals had jurisdiction to review the dis-
trict court’s final judgment pursuant to 28 U.S.C.
§ 1291. The court of appeals filed its opinion on
May 22, 2007, and it denied, on October 29, 2007, pe-
titioner’s timely filed petition for rehearing en banc.
This Court’s jurisdiction rests on 28 U.S.C. § 1254(1).

STATUTORY PROVISIONS INVOLVED

The pertinent provisions of the Clean Water Act,
33 U.S.C. §§ 1257-1387, are set forth in the Appen-
dix, infra, at 68a.

STATEMENT

This case presents a question of exceptional im-
portance to the administration of the Clean Water
Act. Since the Clean Water Act’s enactment in i972,
both the Environmental! Protection Agency and the
Army Corps of Engineers have consistently recog-
nized that the Clean Water Act treats discharges of
“fill material” differently from discharges of other

2

pollutants: Discharges of “fill material” are subject
to regulation under Section 404 of the Clean Water
Act (33 U.S.C. § 1344) and to effluent guidelines
promulgated under Section 404(b)(1), while dis-
charges of other poilutants are subject to regulation
under Section 402 (33 U.S.C. § 1342) and the differ-
ent effluent limitations (including standards of per-
formance) that Section 402 specifies. Rejecting this
well-settled statutory dichotomy and enforcement
protocol developed by the specialized agencies re-
sponsible for administering the Act, by numerous
courts, by state governments, and by the mining in-
dustry, the Ninth Circuit imposed a novel and con-
flicting requirement. In the Ninth Circuit, dis-
charges of “fill material” must now comply with ef-
fluent limitations not only under Section 404, but
also those specified for “other pollutants” by Section
402. This decision overturns the settled understand-
ing of the Act and the enforcement regime developed
over the course of 35 years by EPA and the Corps
through their joint administration of the Clean Wa-
ter Act, disregards the twu-part statutory scheme
Congress enacted, significantly impacts the mining
industry by prohibiting a common practice often nec-
essary for hard rock and other mining (including
mining for gold, silver, copper, lead, zinc, phosphate,
and molybdenum ores), and jeopardizes the econo-
mies (and therefore the people) of States dependent
on mining.

1. Prior to the decision below, the Clean Water
Act’s bifurcated permitting scheme was well estab-
lished. See, e.g., Kentuckians for the Commonwealth,
Inc. v. Rivenburgh, 317 F.3d 425, 447 (4th Cir. 2003)
(explaining how the Act’s structure “reinforc[es] the
fill-effluent distinction that has been followed by the
agencies”). Section 301 of the Act broadly prohibits

3

the discharge of pollutants into navigable waters of
the United States “[e]xcept as in compliance” with
permit programs established by the Act. 33 U.S.C.
§ 1311(a). The Clean Water Act makes clear that the
Section 404 and Section 402 permitting schemes are
mutually exclusive: It entrusts to the Corps of Engi-
neers the authority to issue permits “for the dis-
charge of... fill material into the navigable waters,”
33 U.S.C. § 1344, while the authority to issue per-
mits for all pollutants other than “fill material” rests
with EPA, id. § 1342 (“Except as provided in section|{]
... 1344 ..., the [EPA] Administrator may .. . issue
a permit for the discharge of any pollutant ... .”)
(emphasis added). Indeed, below, even the appel-
lants agreed that “[t]he Act provides that a single
discharge will be governed by either section 402 or
section 404, but not both.” Appellants’ C.A. Br. 24.

This bifurcation makes sense, as the appellants
below also acknowledged: “The dual permitting
structure of sections 402 and 404 reflects Congress’s
view that discharges of ... fill material did not pose
the same threats to water quality as discharges of
industrial and municipal wastes.” Appellants’
Emergency Mot. under Cir. R. 27-3, at 6. As EPA
and the Corps have explained, “[iJn keeping with the
fundamental difference in the nature and effect of
the discharge that each program was intended by
Congress to address, sections 404 and 402 employ
different approaches to regulating the discharges to
which they apply.” Proposed Revisions to the Clean
Water Act Regulatory Definitions of “Fill Material”
and “Discharge of Fill Material,” 65 Fed. Reg. 21,292,
21,293 (Apr. 20, 2000). “The section 402 program is
focused on ... discharges such as wastewater dis-
charges from industrial operations and sewage
treatment plants, stormwater and the like.” Jd. “Fill

4

material,” on the other hand, “differs fundamentally
from the types of pollutants covered by section 402
because the principal concern is the loss of a portion
of the water body itself.” Jd.; see also id. (noting that
Section 404(b)(1) guidelines “provide for considera-
tion of the effects of chemical contaminants on water
quality in a number of ways” but also “go beyond
such a water quality based approach to require nu-
merous additional considerations” including “effects
of the discharge on the aquatic ecosystem as a
whole,” such as loss of wetlands); 33 U.S.C. § 1343(c)
(setting out criteria, cross-referenced by Section
404(b)(1), that consider, among other things, effects
on “economic values” and “mineral exploitation”).

Discharges of “fill material” governed by Section
404 must satisfy guidelines (known as Section
404(b)(1) guidelines) jointly developed by EPA and
the Corps. Section 404 does not require compliance
with effluent limitations promulgated by EPA; in
fact, Section 404(p) provides that “[c]lompliance with
a permit issued pursuant to [Section 404] .. . shall be
deemed compliance ... with [Section 301].” 33
U.S.C. § 1344(p). Section 404(c), moreover, provides
an additional protection for water quality by stating
that EPA may veto any permit the Corps proposes to
grant.

In contrast, discharges that fall under Section
402—also known as the National Pollution Discharge
Elimination System (“NPDES”) program—must meet
“all applicable requirements” under Sections 301 and
306 of the Clean Water Act. 33 U.S.C. § 1342(a).
Section 301 requires compliance with “[{e]ffluent limi-
tations” applicable to existing point sources, Jd.
§ 1311(e), while Section 306 applies more stringent
effluent limitations, known as “standards of per-

5

formance,” to new point sources, id. § 1316(e). See
App., infra, 13a n.8 (“A standard of performance is
one type of effluent limitation.”). These effluent limi-
tations are promulgated in the form of regulations
issued by EPA.

Because the term “fill material” is not defined by
the Clean Water Act, these agencies, acting on the
discretion delegated to them by Congress, issued a
joint regulation to delineate which discharges would
be regulated under Section 404 of the Clean Water
Act and which would fall under Section 402. In their
joint regulation, the agencies clearly defined “fill ma-
terial” as “material placed in waters of the United
States where the material has the effect of ...
[c]hanging the bottom elevation of any portion of a
water of the United States.” 33 C.F.R.
§ 323.2(e1\ii); 40 C.F.R. § 232.2. Additionally, the
agencies provided that the term “discharge of fill ma-
terial” “generally includes ... placement of overbur-

den, slurry, or tailings or similar mining-related ma-
terials.” 33 C.F.R. § 323.2(f); 40 C.F.R. § 232.2.

The discharge at issue in this case is the place-
ment of mine tailings, transported in a siurry form,
into Lower Slate Lake in southeastern Alaska,
where, all agree, the tailings would “raise the bottom
elevation of the lake by 50 feet.” App., infra, 3a.

2. Nearly twenty years have passed since peti-
tioner Coeur Alaska first proposed revitalizing the
historic Kensington gold mine, located about 45
miles north of Juneau, Alaska, and initiated the
process of obtaining the requisite permits from the
U.S. Forest Service, EPA, the Corps, and other agen-

6

cies. C.A. E.R. 6.1 Over the next 15 years, the Ken-
sington project underwent extensive environmental
analysis, encompassing several different proposed
methods of operations. More than 900 studies, cost-
ing over $26 million, examined the project’s envi-
ronmental impact; numerous federal and state agen-
cies, including the Forest Service, the Corps, EPA,
the Alaska Department of Environmental Conserva-
tion (“DEC”), the Alaska Department of Natural Re-
sources, the National Marine Fisheries Service, and
the U.S. Fish and Wildlife Service, reviewed its pro-
posals and their expected effects. See, e.g., C.A. E.R.
397.

Coeur Alaska’s plan of operations provides for
milling ore on-site through a conventional “froth-
flotation” process that separates valuable ore from
the remaining minerals. Over the 10- to 15-year life
of the project, the mill processing operations will
yield a great deal of valuable ore, but also several
million tons of mine tailings. Only forty percent of
the tailings can be stored in the mine. App., infra,
4a. Because depositing the excess tailings on land in
this rainy, steep area of Alaska would require de-
structive conversion of more than 100 acres of wet-
lands to uplands (C.A. J.S.E.R. 401-02) and would
raise other environmental, energy, safety, economic,
and technical issues, Coeur Alaska sought a permit
to dispose of the remainder—up to 4.5 million tons—
by placing them into a carefully designed impound-
ment in Lower Slate Lake. The Corps carefully con-

1 “C.A. E.R.” refers to the Excerpts of Record filed in the court
of appeals. “C.A. J.S.E.R.” refers to the Joint Supplemental Ex-
cerpts of Record also filed in the court of appeals.

7

sidered these alternatives in its Record of Decision,
id. 555-71, and ultimately concluded that upland
disposal would be “more damaging” than deposition
in Lower Slate Lake because upland disposal would
cause a “permanent loss of wetland|{s]” that would
“outweigh[] the temporary losses to the lake.” C.A.
J.S.E.R. 872.2

Because Coeur’s largely solid mine tailings con-
stitute “fill material” (the tailings indisputably would
“[c]Jhang[e] the bottom elevation” of the lake, 33
C.F.R. § 323.2(e)1)(ii)), Coeur sought a discharge
permit from the Corps under Section 404. After re-
viewing the final proposal and the input of several
other agencies (including a Record of Decision by the
Forest Service), the Corps approved the proposal in
June 2005 and granted Coeur Alaska a Section 404
permit, which incorporated numerous protective re-
quirements under Section 404(b)(1) guidelines, to
discharge tailings into Lower Slate Lake. C.A. E.R..
522-33.

2 The tailings discharge is likely to result in the loss of some
small fish and other aquatic life in the lake. App., infra, 44a—
45a; see alsu C.A. J.S.E.R. 745, 755, 943-52, 959-62. This loss,
however, is expected to result from the physical impact of the
tailings, not from toxicity or poor water quality. App., infra,
43a (anticipating that aquatic life would be lost “primarily due
to being covered with the discharged materia!”). By the time
operations conclude, however, the settled tailings fill will have
reduced the lake's depth from 51 feet to approximately 33 feet,
and increased its surface area trom 23 acres to more than 60
acres, thereby substantially improving the available fish habi-
tat by providing more shallow, productive areas. C.A. E.R. 349.
Coeur’s plan of operation calls for it to reintroduce fish into the
lake at the close of operations.

8

Originating from the mine ore processing mill,
the tailings slurry unavoidably contains some proc-
ess water potentially subject to Section 301 effluent
limitations and Section 306 performance standards
under the Section 402 program. Recognizing, how-
ever, the clear fill effect of the tailings discharge into
the Lower Slate Lake impoundment, EPA concurred
that Section 404 was the applicable permitting re-
gime and that Section 301 and Section 306 limits did
not apply. After reviewing multiple analyses and
working with the Corps to resolve environmental
concerns, EPA affirmed the permit by declining to
exercise its ultimate veto authority under Section
402(c). EPA also issued a Section 402 permit, incor-
porating effluent limitations, to govern the subse-
quent discharge of water from the lake impoundment
into the small adjacent creek leading to more sub-
stantial downstream waters. C.A. E.R. 412-14, 534—
36, 542-43; C.A. J.S.E.R. 656, 662-664. Similarly,
the Alaska DEC certified that the proposal would
comply with Section 401 of the Clean Water Act and
with Alaska’s water-qudlity standards. C.A. J.S.E.R.
827-832.

3. Southeast Alaska Conservation Council, the
Sierra Club, and Lynn Canal Conservation (collec-
tively “SEACC”) sued the Corps of Engineers and the
Forest Service, arguing that the issuance of the per-
mit violated the Administrative Procedure Act, 5
U.S.C. § 706(2\Ka), and Sections 301l(a), 301(e), and
306(e) of the Clean Water Act. SEACC relied on an
EPA regulation that stated “there shall be no dis-
charge of process wastewaler to navigable waters
from mills that use the froth-flotativn process ... for
the beneficiation of copper, lead, zinc, gold, silver, or
molybdenum ores,” 40 C.F.R. § 440.104(b)(1), argu-
ing that this “no discharge” performance standard

9

(promulgated under Section 306) precluded the grant
of a Section 404 permit.

SEACC also challenged, in the alternative, the
agencies’ interpretation of their own joint regulation,
arguing that it was arbitrary and capricious to inter-
pret the term “discharge of fill &.aterial”—a term
which the joint regulation provides “includes ...
placement of ... tailings or similar mining-related
materials,” 33 C.F.R. § 323.2(f); 40 C.F.R. § 232.2—to
include mine tailings. C.A. E.R. 15 J 72. SEACC did
not challenge the regulation itself or contest the Sec-
tion 404 permit’s compliance with the Section
404(b)(1) guidelines.

After Coeur Alaska, the State of Alaska, and
Goldbelt, Inc. intervened, the district court decided,
on summary judgment, that “|t]he Corps properly
issued the permit to Coeur Alaska, Inc. under § 404.”
App., infra, 55a. The district court recognized that
the Clean Water Act “divides the permitting process
into two segments” and that different standards ap-
plied under Sections 402-and 404, id. 51a; accord-
ingly, the district court concluded that “[i]f the per-
mit was properly issued under § 404, (Sections 301(e)
and 306(e)] are inapplicable,” id. 48a n.35. The dis-
trict court also rejected SEACC’s argument that
statements in the regulatory history compelled the
conclusion that the agencies’ interpretation of their
own rule—an interpretation that “facially falls
within the definition of ‘fill material’ contained in the
regulations,” id. 53a—was unreasonable.

4. SEACC filed an emergency motion for an in-
junction pending appeal. A two-judge panel of the
Ninth Circuit (Reinhardt, J., and Goodwin, J.)
granted the injunction without providing any reason-
ing for its order. App., infra, 57a—58a. After Coeur

10

Alaska asked the Ninth Circuit to vacate the injunc-
tion pending appeal in light of this Court’s decision
in Purcell v. Gonzalez, 127 S. Ct. 5, 6—7 (2006) (va-
cating an injunction where “(t]he Court of Appeals
offered no explanation or justification for its order”
and “fail{ed] to provide any factual findings or indeed
any reasoning of its own”), the merits panel denied
the motion to vacate, while providing little additional
explanation of the grounds for its decision. App.,
infra, 59a.

The Ninth Circuit eventually reversed the judg-
ment of the district court and invalidated Coeur’s
Section 404 discharge permit. The court of appeals
concluded that the Corps, by issuing a permit for a
discharge that “facially meets the Corps’ current
regulatory definition of ‘fill material,” App., infra,
10a, and “facially qualiflies) for permitting under
§ 404,” id. 15a, had nevertheless “violated the Clean
Water Act,” id. 34a.3

The panel purported to base its conclusion on
“the plain language of the Clean Water Act.” App.,
infra, 10a. The panel reasoned that Section 301(a)
“prohibits all discharges of any pollutant ... except
when the discharge complies with the requirements
of, inter alia, § 301, § 306, § 402, and § 404.” Td.
lla—12a. Relying on Section’s 301’s “use of ‘and’ as a
connector,” the panel concluded that “§ 301(a) pro-
hibits any discharge that does not comply with ...

3 The Ninth Circuit also invalidated a separate Section 404
permit issued to Goldbelt Alaska Native Corporation for rock
fill for a dock for the southern marine terminal for the Kensing-
ton mine project, solely because the dock was permitted for
mine operations. App., infra, 35a.

11

both § 301 and § 306, as well as § 402 and § 404.” Z/d.
15a. Thus, the panel concluded that “[iJf EPA has
adopted an effluent limitation or performance stan-
dard applicable to a relevant source of pollution,
§ 301 and § 306 preclude the use of a § 404 permit
scheme for that discharge.” Jd. 17a. “[T]he NPDES
program administered by EPA under § 402 is the
only appropriate permitting mechanism for [such]
discharges.” Jd. 18a.

The panel also reached the alternative holding
that, even though Coeur’s proposed discharge “fa-
cially meet[s] the definition of the term ‘fill mate-
rial,” App., infra, 22a, the “regulatory history” none-
theless demonstrated that the Corps had unreasona-
bly interpreted its own regulation as encompassing
Coeur’s discharge. Jd. 19a. The regulation’s plain
language notwithstanding, the panel concluded that
the regulation must be interpreted to include only
“those tailings and other mining-related materials
that are not subject to effluent limitations or stan-
dards of performance.” Id. 30a—3 1a.

5. The court of appeals denied rehearing, App.,
infra, 37a, but, on Coeur’s motion, stayed its man-
date pending review by this Court. Jd. 65a. After
granting the stay, however, the court of appeals is-
sued an order, on SEACC’s motion, to require Coeur
Alaska, the Corps, and the Forest Service to prepare
and approve a reclamation plan by April 1, 2008. Jd.
66a.

REASONS FOR GRANTING THE PETITION

The decision of the Ninth Circuit effectively re-
writes the structure of the Clean Water Act: It
changes the Section 404 permit program from a dis-
tinct permitting scheme that carves out an important
exception to Section 402, see 33 U.S.C. § 1342(a\(1)

12

(“Except as provided in section|] ... 1344”), into a
secondary permitting scheme that has only residual
application.

Left undisturbed, the consequences of this deci-
sion will be extensive. It has the immediate impact
of upsetting national uniformity in the administra-
tion of the Clean Water Act by reallocating (in the
Ninth Circuit) the division of labor and expertise fol-
lowed by EPA and the Corps for the past three dec-
ades. It imposes new requirements on mining in this
country—much of which occurs under the jurisdic-
tion of the Ninth Circuit—by threatening to restrict
the industry’s ability to conduct common types of ore
processing. And it correspondingly weakens the
economies of western States that rely significantly on
mining.

The decision below also warrants review because
it contravenes basic, firmly established principles of
statutory interpretation consistently recognized in
the decisions of this Court and of the courts of ap-
peals. Moreover, by refusing to defer to the Corps’
interpretation (in which EPA concurred) of the joint
EPA-Corps regulation defining “fill material”—even
as it acknowledged that the agencies’ interpretation
was consistent with the joint regulation’s plain
text—the Ninth Circuit set itself against a long line
of this Court’s decisions concerning the extraordi-
nary deference due to an agency's interpretation of
its own regulation. This Court should grant the peti-
tion to resolve the questions arising out of the Ninth
Circuit’s transformative construction of the Clean
Water Act and to restore to EPA and the Corps their
rightful roles in administering this important federal
statute.

13

I. THE BROAD RAMIFICATIONS OF THE NINTH
CIRCUIT’S DECISION MARK THIS CASE AS
ONE OF EXCEPTIONAL IMPORTANCE
The Ninth Circuit’s decision immediately im-

pacts the administration of the Clean Water Act. It
also has serious, direct economic implications for
both the mining industry and western States, such
as Alaska, Arizona, California, and Nevada, that
produce, as a group, nearly a third of the nation’s
nonfuel minerals and that rely significantly on min-
ing for their economic well-being. Moreover, should
this decisiun stand, environmental groups that dis-
agree with how Congress, EPA, and the Corps have
exercised their discretion by balancing environ-
mental interests with wise use of natural resources
are likely to use this decision as a springboard to
challenge hard rock and other mining throughout the
country.

A. The Ninth Circuit’s Decision
Radically Alters The Longstanding
Structure Of The Clean Water Act’s
Discharge Permit Programs

For over three decades, EPA and the Corps have
specialized in different, important aspects of manag-
ing our Nation’s waters. In the Clean Water Act,
Congress tasked EPA with protecting water quality
by restricting the addition of toxic chemicals into ju-
risdictional waters. 33 U.S.C. § 1251(a), (d). Efflu-
ent limitations promulgated by EPA typically ad-
dress issues such as toxicity by restricting concentra-
tions of contaminants and total suspended solids
(“TSS”) to small amounts that are measured in milli-
grams per liter. See, e.g., 40 C.F.R. § 440.12(a) (lim-
iting “(t]he concentration of pollutants discharged in
mine drainage from mines operated to obtain iron

14

ore” to a daily average of 1.0 mg/L of iron and of 20.0
mg/L of TSS); id. § 440.24 (for aluminum ore mining,
limiting daily averages to 0.5 mg/L of iron, 1.0 mg/L
of aluminum, and 20 mg/L of TSS). As EPA and the
Corps have explained, however, “[t]here are no statu-
tory or regulatory provisions under the section 402
program designed to address discharges that convert
waters of the U.S. to dry land.” Proposed Revisions
to Regulatory Definitions, 65 Fed. Reg. at 21,292.

Discharges of fill material, in contrast, are not
measured in milligrams per liter; instead, such dis-
charges may exceed a thousand tons of relatively
solid material per day. C.A. E.R. 295. The Corps has
long experience with special considerations arising
from filling jurisdictional waters. Under the Section
404(b)(1) program, the Corps evaluates whether to
permit a discharge of fill material into a body of wa-
ter through a “careful consideration of the effects of
the discharge on the aquatic ecosystem as a whole,
as well as evaluation of alternatives to the discharge
and measures to minimize and compensate for un-
avoidable adverse effects,” and it also considers “ef-
fects on human health, recreation, aesthetic, and
economic values.” Proposed Revisions to Regulatory
Definitions, 65 Fed. Reg. at 21,293.

In spite of Congress’s clear intent to create Sec-
tion 404 as a separate program to permit discharges
of fill material and to address the special considera-
tions such discharges present, future requests for
permission to discharge fill material will, at least in
the Ninth Circuit, have to comply with the require-
ments of Section 402 when EPA has promulgated ef-
fluent limitations. See App., infra, 15a (rejecting ar
gument that “§ 301 and § 306 do not apply to § 404
permits”). The Ninth Circuit's decision significantly

15

narrows the application of the Section 404 pro-
gram—previously an important permitting mecha-
nism that covered all discharges of fill material—to
only that subset of fill material discharges for which
EPA has not yet imposed an effluent limitation. No
longer, in the Ninth Circuit, does the Section 404
permit program operate as an exception to the Sec-
tion 402 program. There, the Section 404 program is
allowed only residual application.

Left undisturbed, this interpretation will require
EPA and the Corps to restructure how they adminis-
ter the Act and will narrow the role that Congress
set out for the Corps in the Act. For example, the
Corps’ ability to efficiently address common fill ac-
tivities by issuing a Nationwide Permit (“NWP”) for
such activities will be hampered whenever an efflu-
ent limitation might apply, as each instance of the
activity would then need to be evaluated under the
Section 402 program. At the same time, the Corps’
personnel will need to become familiar with all po-
tentially relevant effluent limitations in order to en-
sure that they do not issue Section 404 permits con-
flicting with those numerous now-applicable _re-
quirements; correspondingly, EPA personnel will
have to increase their oversight under Section 404(c)
to ensure compliance. The joint development of Sec-
tion 404(b)(1) guidelines to meet specific criteria set
out by Congress, see 33 U.S.C. §§ 1344(b)(1), 1343(c),
will be largely supplanted by the technology-based
criteria of Sections 301 and 306. Topping things off,
the agencies will need to decide whether to imple-
ment these changes nationwide or to develop a spe-
cial process within the Ninth Circuit.

16

B. The Ninth Circuit’s Decision Will
Severely Harm the Nation’s Mining
Industry

The Ninth Circuit’s decision severely restricts
the mining industry’s ability to use the Section 404
permit program within the Ninth Circuit. Indeed,
requiring discharges of mine tailings to comply with
effluent limitations significantly “impair[s] ... envi-
ronmentally sound mine operations of all kinds
throughout the country.” Nat’l Mining Ass’n C.A.
Amicus Br. 2 (hereinafter “NMA C.A. Br.”).

Section 404 permits are often necessary because
“[mJining activities must occur where the mineral
resources are found, and the terrain in those areas is
often such that the only feasible site for disposal is in
a water body.” NMA C.A. Br. 7. Mining inherently
produces excess materials, including rock, dirt, and
other tailings. These materials, particularly crushed
rock, swell in volume and so cannot all be disposed of
by backfilling. See Bragg v. W. Va. Coal Ass’n, 248
F.3d 275, 286 (4th Cir. 2001); C.A. J.S.E.R. 835-36.
At the same time, minerals are often located in
mountainous regions, such as in Alaska and “in the
Appalachian Mountains, in a broad area stretching
from Pennsylvania to Alabama|] and including Ken-
tucky, Virginial,]) and West Virginia,” where the
available “stable locations for the placement of excess
rock are mostly the bottom of hollows which, as a
simple matter of topology, form streams.” NMA C.A.
Br. 8.

Applying effluent limitations to mine tailings
will affect mumerous types of mines because “EPA
has promulgated effluent limitations for a vast num-
ber of substances commonly present in the excess
rock and dirt from mines.” Nat’l Mining Ass'n C.A.

17

Amicus Br. In Support of Pet. for Reh’g En Banc 17;
see generally 40 C.F.R. Pts. 434, 440 (listing effluent
limitations for numerous types of mining operations).
By eliminating the ability of mines to use a body of
water to settle out excess dirt and rock, mining op-
erations will have to seek out alternative means of
disposal that may, as the Corps found in rejecting
such alternatives for the Kensington mine, lead to a
greater loss of wetlands, to aesthetic harms (such as
the creation of unsightly tailings stacks), and other
environmental costs. See, eg., C.A. J.S.E.R. 872.
These additional costs inevitably will stifle both re-
source exploration and mine development.

As Coeur’s situation illustrates, if Section 402 ef-
fluent limitations replace Section 404 as the regime
governing discharges of mine tailings, mines previ-
ously eligible for Section 404 permits will be unable
to operate as planned, years of planning and signifi-
cant financial investments (here, approximately $200
million, C.A. J.S.E.R. 1064) made in reliance on dec-
ades of agency practice notwithstanding. For exam-
ple, NWP 44, issued to authorize “aggregate mining
and hard rock/mineral mining activities” where the
discharge would “not cause the loss of greater than
Y-acre of non-tidal waters of the United States,” Re-
issuance of Nationwide Permits, 72 Fed. Reg. 11,092,
11,139, 11,189 (Mar. 12, 2007), is now vulnerable to
challenge; despite the fact that it “authorizes mining
activities that [in the judgment of the agencies] have
no more than minimal individual and cumulative
adverse effects on the aquatic environment,” id. at
11,140, any “no discharge” effluent limitation would
prohibit even these “minimal” discharges.

The effects of Ninth Circuit’s decision will be felt
throughout the Nation. The mining industry is a

18

significant contributor to the national economy. “The
total value of U.S. raw nonfuel mineral production
alone was about $64.4 billion.” Mineral Commodity
Summaries 2007, at 7. Six metals, five of which are
governed by the same froth-flotation performance
standard relevant to this case (and the sixth of which
is governed by other effluent limits), contribute a
combined total of $22.7 billion dollars towards that
total. Id. at 52 (copper: $8.6 billion), 70 (gold: $5.1
billion), 116 (molybdenum: $3.2 billion), 82 (iron ore:
$2.8 billion), 186 (zinc: $2.3 billion), and 92 (lead:
$702 million).

Most of those metals are mined in the Ninth Cir-
cuit. See U.S. Dep’t of the Interior, U.S. Geological
Survey, Mineral Commodity Summaries 2007, at 13,
available at http://minerals.usgs.gov/minerals/pubs/
mces/2007/mcs2007.pdf. Gold is produced primarily
in Alaska and other western States; Alaska and Ne-
vada are the leading producers of silver; Arizona,
Nevada, and Montana are three of the top five cop-
per-producing States; Idaho, Arizona, Montana, and
Nevada are leading producers of molybdenum;
Alaska, Idaho, Montana, and Washington are four of
the top five lead-producing States; and three of the
four states that produce 99% of the Nation’s domestic
zine are Alaska, Montana, and Washington. IZd. at
70, 148, 52, 110, 92, & 186.

Effluent limitations currently in place apply to
each of these types of ores and to numerous types of
mining operations, including open-pit operations,
underground operations, placer depusits, froth-
flotation processes, dump processes, heap processes,
in-situ leach processes, vat-leach processes, and
gravity separation methods. See generally 40 C.F.R.
Part 440, Subparts J & M. Should the Ninth Cir-

19

cuit’s decision stand, discharges of mining-related
materials that previously qualified as fill material in
the Ninth Circuit must now comply with these regu-
lations, including zero-discharge standards of per-
formance, formerly applicable only under Section
402.

C. The Ninth Circuit’s Decision
Threatens To Disrupt The
Economies Of Alaska And Other
Western States

“Mining is a critical part of [Alaska’s] economy,”
Alaska’s C.A. Br. Re Reh’g En Banc 15; for example,
it contributed $1.8 billion dollars to Alaska’s econ-
omy in 2005. C.A. J.S.E.R. 644. As explained above,
mining inherently produces excess rock, dirt, and
other tailings that swell in volume and so cannot all
be disposed of by backfilling. Approximately half of
Alaska’s land mass consists of wetlands. Taken to-
gether, these facts demonstrate the importance of
fill-material permits to the State of Alaska and to the
citizens of Alaska who rely on mining for their liveli-

hood.

If discharges of these excess mining materials
into wetlands in Alaska must comply with a zero-
discharge Section 306 standard of performance, then
other important mining projects in Alaska, including
pending and future projects for which “(t]he agencies’
[Section 404] permitting plan is expected to be a
critical component,” Alaska’s C.A. Pet. Reh’g En
Banc 16, will have to cease or delay operations (or
pay penalties, 33 U.S.C. §§ 1319, 1365) until such
time as their operations can be brought into compli-
ance with the zero-discharge standard of perform-
ance—which is to say, never. In many locations
placement of tailings on dry land is not practicable,

20

and compliance with the Ninth Circuit’s construction
of the Act otherwise is not possible. The decision be-
low thus threatens serious harm to the Alaskan
economy.

Alaska, moreover, is not alone. Other States
within the jurisdiction of the Ninth Circuit also rely
on mining (and its creation of jobs and income for
their residents) as a significant part of their econo-
mies. Indeed, the top three States in the Nation in
terms of nonfuel mineral production are Arizona
($4.35 billion in 2005), California ($4.25 billion in
2005), and Nevada ($3.88 billion in 2005), and the
nine states combine to contribute 31% of total U.S.
nonfuel mineral production. U.S. Dep’t of the Inte-
rior, U.S. Geological Survey., 2005 Minerals Year-
book, Statistical Summary at 2.5-2.6 (Aug. 2007),
available at http://minerals.usgs.gov/minerals/pubs/
commodity/statistical_summary/myb1-2005-stati.pdf.
Mining in these States often takes place in moun-
tainous areas where it is often impracticable to dis-
pose of mine tailings except by placing them as fill
material in drainage channels, wetlands, or other
waters. The Section 404 permit program thus is im-
portant in these States just as it is in Alaska. In the
absence of a permit program that permits deposition
of tailings in jurisdictional waters, these mines, too,
will have to develop new plans of operations—plans
that promise to be more expensive and that may well
be more environmentally damaging (as the Corps
found to be the case for the alternatives to issuing a
Section 404 permit for the tailings placement at is-
sue here).

21

II. THE NINTH CIRCUIT’S CONSTRUCTION OF
THE CLEAN WATER ACT CONTRAVENES THE
AcT’s TEXT AND STRUCTURE, DECISIONS OF
THIS COURT, AND DECISIONS OF OTHER
COURTS OF APPEALS

In restructuring EPA’s and the Corps’ permitting
authority under the Act to invalidate Coeur’s Section
404 permit, the Ninth Circuit ignored well-
established rules of interpretation, basic principles of
logic, the structure of the Clean Water Act, and even
a provision expressly exempting Section 404 permits
from effluent limitations. Unsurprisingly, the result
achieved cannot be reconciled with this Court’s deci-
sions, including Rapanos v. United States, 126 S. Ct.
2208 (2006), and S.D. Warren Co. v. Me. Bd. of Envitl.
Prot., 126 S. Ct. 1843 (2006), or with the decisions of
other courts of appeals.

1. The Ninth Circuit grounded its novel recon-
struction of the Act’s permitting programs—“[i]f EPA
has adopted an effluent limitation or performance
standard applicable to a relevant source of pollution,
§ 301 and § 306 preclude the use of .a § 404 permit
scheme for that discharge”—on the use, in Section
301(a), of the conjunction “and.” App., infra, 12a,
15a; see 33 U.S.C. §1311(a) (“Except as in compli-
ance with this section and sections [302], [306], [307],
(318], [402] and [404] of this title, the discharge of
any pollutant by any person shall be unlawful.” (em-
phasis added)). “The use of ‘and’ as a connector, in-
stead of ‘or,” the panel reasoned, meant that “any
discharge” had to comply with “both § 301 and § 306,
as well as § 402 and § 404,” and “indicates that Con-
gress intended for [Section 301) effluent limitations
and |Section 306) standards of performance to apply
to all applicable discharges, even those that facially
qualify for permitting under § 404.” App., infra, lida.

22

But context clearly demonstrates that the conjunc-
tion “and” cannot be read to impose the statutory ob-
ligations that the Ninth Circuit ascribed to it.

As this Court explained long ago, “courts are of-
ten compelled to construe ‘or’ as meaning ‘and,’ and
again ‘and’ as meaning ‘or.’ United States v. Fisk, 70
U.S. 445, 447 (1866); see also Slodov v. United States,
436 U.S. 238, 246-48 (1978) (interpreting “and” as
“or” to avoid result “obviously at odds with the stat-
ute’s purpose”). When the word “and” “conjoins a list
of mutually exclusive alternatives,” “context requires
the term to be construed disjunctively.” Officemax,
Inc. v. United States, 428 F.3d 583, 591 (6th Cir.
2005) (Sutton, J.) (emphasis added).

This, clearly, is such a case. Section 391 does
not, as the panel states, require one to obtain per-
mits under both Section 402 and 404 for the same
discharge. This Court recently recognized that Sec-
tion 402 and Section 404 are mutually exclusive
permitting schemes. See Rapanos, 126 S. Ct. at 2228
(plurality opinion) (contrasting “pollutants normally
covered by the permitting requirement of [Section
402(a)]” » th “dredged or fill material” and explain-
ing that “(t}he Act recognizes this distinction by pro-
viding a separate permitting program for such dis-
charges in [Section 404(a)]”); id. at 2237 (Kennedy,
J., concurring) (“Apart from dredged or fill material,
pollutant discharges require a permit from [EPA\,
which also oversees the Corps’ ... permitting deci-
sions.”) (emphasis added). Numerous courts of ap-
peals have similarly acknowledged this mutual ex-
clusivity. See, e.g., Greenfield Mills, Inc. v. Macklin,
361 F.3d 934, 946 (7th Cir. 2004) (“[A] defendant who
wishes to discharge a pollutant must first obtain a
permit either under [Section 404] fo: the discharge of

23

dredged or fill material or under [Section 402] for
other pollutants.”) (emphases added).4 Both agen-
cies charged with administering the two permitting
schemes agree that Section 301 only requires com-
pliance with “one of the two permitting programs.”
Final Revisions to the Clean Water Act Regulatory
Definitions of “Fill Material” and “Discharge of Fill
Material,” 67 Fed. Reg. 31,129, 31,130 (May 9, 2002).
Even SEACC acknowledged that “(t]he Act provides
that a single discharge will be governed by either
section 402 or section 404, but not both.” Appellants’
C.A. Br. 24.

2. Nor is it true, as the panel stated, that the use
of “and” in Section 301 compels the conclusion that
“(Section 301] effluent limitations and [Section 306]
standards of performance [| apply to... discharges”
that “qualify for permitting under § 404.” The text of
the Clean Water Act, in addition to its two-part
structure, in fact compels the opposite conclusion.
Whereas Section 402(a) explicitly requires that per-
mitted discharges comply with both Section 301 ef-
fluent limitations and Section 306 performance stan-

4 See also Kentuckians, 317 F.3d at 447 (4th Cir. 2003) (rec-
ognizing that “cross-references, exclusions, and vetoes” inter-
locking Sections 404 and 402 “reinforcled) the fill-effluent dis-
tinction that has been followed by the agencies”); Friends of
Crystal River v. U.S. E.P.A., 35 F.3d 1073, 1075 (6th Cir. 1994)
(“The Act establishes two discrete permitting systems by which
individuals might obtain permits from the appropriate federal
agency.”); State of Minn. by Spannaus v. Hoffman, 542 F.2d
1198, 1208 (8th Cir. 1976) (“Unlike all other pollutants, dredged
spoil [and fill material) [are] not regulated under the NPDES,
since [§] 402(a)1) establishing the NPDES begins, as we have
seen, with the words, ‘(e)xcept as provided in sections 318 and
404.’”) (citation and footnote omitted).

24

dards, Section 404 does not, instead expressly requir-
ing compliance with different water-quality stan-
dards (and additional requirements) developed under
Section 404(b)(1). Compare 33 U.S.C. § 1342(a), with
id. § 1344. The panel dismissed this fact—that
“$ 402 explicitly requires compliance with [Sections
301 and 306] whereas § 404 does not”—as a mere
“negative inference” of an “implied exception.” App.,
infra, 15a.

But the exception is hardly inferential: Section
404(p), apparently overlooked by the panel, explicitly
provides that “|clompliance with a permit issued
pursuant to this section ... shall be deemed compli-
ance ... with [Section 301].” 33 U.S.C. § 1344(p).
Compare id., with App., infra, 18a (“§ 404 does not
contain an explicit exception to effluent limita-
tions”).> But even setting aside Section 404(p)’s af-
firmative, express exception for effluent limitations,
this Court recently reiterated, in another Clean Wa-
ter Act case, that “if ‘Congress includes particular
language in one section of a statute”—as Congress
did in Section 402, stating that Sections 301 and 306
apply under that section—“but omits [that language]
in another section of the same Act””—as Congress did
in Section 404—“‘it is generally presumed that Con-

° SEACC has suggested that Section 404(p) does not apply
here because it refers only to Section 301, and not to Section
306. Given, however, that “[a] standard of performance is one
type of effluent limitation” and that all effluent limitations
“have the same practical effect” of restricting the discharge of
pollutants, App., infra, 13a n.8, it would be quite strange if
compliance with Section 404 did not also similarly constitute
compliance with the particular type of effluent limitation (ie.,
performance standards) mandated by Section 306.

25

gress acts intentionally and purposefully in the dis-
parate inclusion or exclusion.” S.D. Warren Co., 126
S. Ct. at 1852 (quoting Bates v. United States, 522
U.S. 23, 29-30 (1997)). Congress clearly expressed
its intent to impose different requirements under the
different programs—compliance under Section 402
with effluent limitations, including performance
standards, and compliance under Section 404 with
Section 404(b)(1) guidelines—and even expressly ex-
empted discharges of fill material from compliance
with effluent limitations. Yet the Ninth Circuit con-
cluded that Congress intended that Section 404 per-
mits comply with effluent limitations.

3. Attempting to bolster its conclusion that Sec-
tion 306(e) applies under Section 404, the Ninth Cir-
cuit also relies on the fact that Congress phrased
Sections 301(e) and 306(e) broadly to establish (in
the panel’s words) “blanket prohibitions” that apply
to “all” and “any” discharges. App., infra, 15a—16a.
This conclusion, however, is at odds with a number
of more specific requirements set out in the Act:
first, the requirement that permits issued under Sec-
tion 404 comply with Section 404(b)(1) guidelines, 33
U.S.C. § 1344(b)(1); second, Section 404’s exemption
from compliance with Section 301, id. § 1344(p); and
third, Congress’s conspicuous failure to specify that
Sections 301 and 306 apply under Section 404, cf.
§ 1342(a).

In the face of these more specific provisions, the
Ninth Circuit’s reliance on Section 301’s and Section
306’s more general language violates the well-settled
canon of statutory interpretation that “specific statu-
tory language should control more general language
when there is a conflict between the two.” Nat'l Ca-
ble & Telecomms. Ass’n v. Gulf Power Co., 534 U.S.

26

327, 335 (2002); see also Morales v. Trans World Air-
lines, Inc., 504 U.S. 374, 384 (1992) (“it is a common-
place of statutory construction that the specific gov-
erns the general”). This is particularly disturbing in
light of the Ninth Circuit’s acknowledgement of this
canon, see App., infra, 32a, and its recognition of Sec-
tion 404 as “a limited permit program that applies
only to dredged or fill material,” id. 15a. Thus, to the
extent that the general prohibitions on discharges in
Sections 301 and 306 appear to conflict with Section
404’s specific exception permitting discharges of fill
material as long as they comply with Section
404(b)(1) guidelines, Section 404 ought to control.
See HCSC-Laundry v. United States, 450 U.S. 1, 6
(1981) (“[I]t is a basic principle of statutory construc-
tion that a specific statute . . . controls over a general
provision ..., particularly when the two are interre-
lated and closely positioned, both in fact parts of” the
same statutory scheme.); Townsend v. Little, 109
U.S. 504, 512 (1883) (explaining the “well-settled
rule” that “general and specific provisions, in appar-
ent contradiction ..., may subsist together, the spe-
cific qualifying and supplying exceptions to the gen-
eral”).

4. The Ninth Circuit's flawed construction of the
Clean Water Act is @ rect result of its cart-before-
the-horse approach to statutory interpretation: The
Ninth Circuit started with the proposition that the
two regulations potentially implicated by the dis-
charge—that is, the froth-flotation effluent limitation
and the regulation defining “fill material”—conflicted
intractably, and then interpreted the Act in light of
those regulations. See, e.g., App., infra, 9a-10a
(“Two different regulations contain plain language
interpreting the Clean Water Act that would appear
to govern ..., but they result in different interpreta-

27

tions of the Act.”). Under this approach, the exis-
tence of an EPA regulation setting out effluent limi-
tations on rock, sand, and dirt (quintessential exam-
ples of fill material) could nullify a statutory provi-
sion (Section 404) and could negate Congress’s clear
intent to create a Corps-administered program for
permitting discharges of fill material. As the Clean
Water Act itself makes clear, however, one must first
determine which permitting scheme applies before
one can know whether effluent limitations would ap-
ply to the discharge. And, according to the two agen-
cies charged with administering the Act, the line of
demarcation between the two permit programs is the
definition of “fill material,” which is supplied by a
joint EPA-Corps regulation not challenged in this
litigation.

Ill. THE NINTH CIRCUIT’S REFUSAL TO DEFER
To CORPS’ INTERPRETATION OF ITS OWN
REGULATION CONFLICTS WITH THIS
COURT’S PRrCEDENTS

As an alternative holding, the Ninth Circuit pos-
ited that the Corps (and EPA) unreasonably :nter-
preted the joint EPA-Corps fill rule—which provides
that a “discharge of fill material” “includes
placement of... slurry, or tailings or similar mining-
related materials.” 33 C.F.R. § 323.2(f/—to include
Coeur’s proposed mine tailings. See App., infra, 19a—
3la. The Ninth Circuit refused to defer to the Corps’
interpretation of its regulation defining fill material,
concluding that statements in the “regulatory his-
tory’—not the regulation itself—were “dispositive
and compel the conclusion that the Corps over-
stepped its authority in issuing a permit to Coeur
Alaska under § 404.” Id. 3la. But see Final Revi-
sions to Regulatory Definitions, 67 Fed. Reg. at
31,135 (“mining-related material that has the effect.

28

of fill when discharged will be regulated as ‘fill mate-
rial”); see also id. (“EPA has never sought to regulate
fill material under effluent guidelines”). The Ninth
Circuit’s approach cannot be reconciled with this
Court’s decisions.

1. It is axiomatic that a court must defer to an
agency’s construction of its own regulation unless
that interpretation is “plainly erroneous or inconsis-
tent with the regulation.” Auer v. Robbins, 519 U.S.
452, 461 (1997). The joint EPA-Corps regulation de-
fining “discharge of fill material” explicitly states
that the term “includes, without limitation,
placement of overburden, slurry, or tailings or simi-
lar mining-related materials.” 33 C.F.R. § 323.2(f);
40 C.F.R. § 232.2.

It is, of course, difficult to envision how an
agency's interpretation can “facially meet)” a regula-
tion, App., infra, 10a, yet nevertheless be “inconsis-
tent with the regulation.” Auer, 519 U.S. at 461.
The Ninth Circuit’s position seems to be that, even
where agency’s interpretation is consistent with the
text of its regulation, that interpretation may never-
theless be rejected as unreasonable if an examina-
tion of regulatory history demonstrates that the text
does not accurately reflect the agency’s regulatory
intent. See App., infra, 19a-20a. That is clearly
wrong. In United States v. Locke, 471 U.S. 84 (1985),
this Court explained that where statutory language
“is plain and the agency’s construction completely
consistent with that language, the agency’s construc-
tion simply cannot be found ‘sufficiently unreason-
able’ as to be unacceptable.” Jd. at 96. If courts may
not find an agency's interpretation of a statute un-
reasonable when the interpretation is consistent
with the statute’s text, it is even more apparent that

29

they may not, under an even more deferential test,
find an agency’s interpretation of its own regulation
unreasonable when that interpretation is completely
consistent with the regulation’s plain text.

The court of appeals’ refusal to defer to the agen-
cies’ interpretation of their own joint regulation
wrested from the agencies the authority Congress
delegated to them to determine where to draw the
line separating discharges of fill material from dis-
charges of ali other pollutants. This contravenes this
Court’s guidance that Congress expects agencies to
make “substantive choices” when it “leaves the inter-
section of competing objectives ... imprecisely
marked.” Chevron U.S.A. Inc. v. Echazabal, 536 U.S.
73, 85 (2002); see also Nat'l Ass’n of Home Builders v.
Defenders of Wildlife, 127 S. Ct. 2518, 2534 (2007)
(agency interpretations that resolve “fundamental
ambiguit[ies]” resulting from “differing mandates” in
statutory texts by developing a “reasonable interpre-
tation’ of the statutory scheme” are “entitled to def-
erence”).

As the Fourth Circuit has explained, Sections
402 and 404 “might overlap on certain types of ‘fill
material’ that adversely affect the quality of water,”
but any such overlap can be resolved by regulations
defining “fill material.” Kentuckians, 317 F.3d at
447-48. In other words, the Fourth Circuit recog-
nized that a regulation defining “fill material” does.
not conflict with a regulation establishing an effluent
limitation, as the Ninth Circuit would have it. Quite
the opposite, it resolves any “overlap” between Sec-
tions 404 and 402 by determining the appropriate
permitting regime for a particular discharge. Thus,
the plain language in the 2002 regulation—which
defined “discharge of fill material” to include “slurry,

30

or tailings or similar mining-related materials,” 40
C.F.R. § 232.2—is entirely consistent with the agen-
cies’ settled understanding that tailings, including
tailings left over after time-honored practices such as
the froth-flotation process regulated under an efflu-
ent limitation since 1982, are governed by Section
404, not Section 402.

There is no reason to think the Ninth Circuit is
better equipped than Congress, EPA, or the Corps—
let alone all three—to decide how to balance inter-
ests in protecting the environment against interests
in “reasonable development,” “infrastructure devel-
opment,” and “growth of the economy.” U.S. Army
Corps of Eng’rs, Regulatory Program Mission State-
ment, http://www.usace.army.mil/cw/cecwo/reg/ mis-
sion. htm (last visited Jan. 7, 2008).

2. As the Ninth Circuit acknowledged, SEACC
did not challenge the validity of the joint EPA-Corps
regulation defining “fill material.” App., infra, 25a—
26a n.12. Accordingly, the court of appeals stated
that it did “not reach the issue of the validity of these
regulations.” Jd. In addition to this disclaimer, the
Ninth Circuit affirmatively recognized that “(t]he
Clean Water Act does not define the term ‘fill mate-
rial” and that, instead, “Congress implicitly left that
term to the Corps and EPA to define.” Jd. 22a; see
also Kentuckians, 317 F.3d at 444 (“[W]e conclude
that Congress has not clearly spoken on the meaning
of ‘fill material{.]”). This admission demonstrates
that the Ninth Circuit had no authority under Chev-
ron step one to invalidate the regulation. Under step
one of Chevron, a court may strike down an agency
interpretation of a statute only when “Congress has
spoken directly to the precise question at issue” and
the agency interpretation deties “the unambiguously

31

expressed intent of Congress.” App., infra, lla
(quoting Chevron, U.S.A., Inc. v. Natural Res. Def.
Council, Inc., 467 U.S. 837, 842-43 (1984)).

Under these circumstances (where SEACC had
not raised the issue and where the Ninth Circuit ac-
knowledged that Congress did not unambiguously
express its intent, but rather “left that term to the
Corps and EPA to define,” App., infra, 22a), the
Ninth Circuit, by its own admission, had no author-
ity to invalidate the agencies’ reasonable joint inter-
pretation of ambiguous statutory language. Thus,
the decision’s references to the Act’s “plain” and “un-
ambiguous” language, see App., infra, 10a, 15a, 19a,
35a. can only be understood either as relating to
statutory language other than “discharge of fill ma-
terial” or as a backdoor attempt to challenge the va-
lidity of the joint regulation itself—a regulation
SEACC has not challenged and would have had no
basis to challenge under Chevron.

CONCLUSION

Further percolation in the courts of appeals is
unnecessary—the issue raised by this petition is al-
ready crystallized. Moreover, additional decisions by
other courts of appeals are unlikely to lead the Ninth
Circuit to change its view, given that it has already
denied rehearing en banc. In light of the exceptional
national importance of this case and for all of the
foregoing reasons, the petition for a writ of certiorari
should be granted.

32

Respectfully submitted.

ROBERT A. MAYNARD THEODORE B. OLSON

PERKINS COIE LLP Counsel of Record

251 East Front St. Ste. 400 MATTHEW D. MCGILL

Boise, ID 83702 AARON D. LINDSTROM
GIBSON, DUNN & CRUTCHER LLP
1050 Connecticut Ave., N.W.
Washington, DC 20036
(202) 955-8500

Counsel for Petitioner
January 28, 2008

APPENDIX

la

APPENDIX A

UNITED STATES COURT OF APPEALS,
NINTH CIRCUIT.

No. 06-35679.

SOU'THEAST ALASKA CONSERVATION
COUNCIL; Sierra Club;
Lynn Canal Conservation,

Plaintiffs-Appellants,
v.

UNITED STATES ARMY CORPS OF
ENGINEERS; Timothy J. Gallagher, Colonel, in his
official capacity as District
Engineer; Larry L. Reeder, in his official
capacity as Chief of the Regulatory Branch; Dominic
1zzo, in is official capacity as Principal Deputy Assis-
tant Secretary of the Army (Civil Works); United
States Forest Service,

Defendants-Appellees,

Coeur Alaska, Inc.; Goldbelt, Inc.;
State of Alaska,

Defendants-Intervenors-Appellees.

Argued and Submitted Dec. 4, 2006.
Filed May 22, 2007.

2a
* * * +

Thomas S. Waldo and Demian A. Schane, Earthjus-
tice, Juneau, AK, for plaintiffs-appellants. John T.
Stahr and Mark A. Nitcezynski, U.S. Department of
Justice, Environment & Natural Resources Division,
Washington, D.C., for defendants-appellees.

David J. Burman and Robert A. Maynard, Perkins
Coie LLP, Boise, Idaho; John C. Berghoff, Jr., and
Michael P. Rissman, Mayer Brown Rowe & Maw
LLP, Chicago, IL; Cameron M. Leonard, State of
Alaska, Department of Law, Fairbanks, AK; and
David C. Crosby, David C. Crosby PC, Juneau, AK,
for defendants-intervenors-appellees.

Melissa Powers and Allison LaPlante, Pacific Envi-
ronmental Advocacy Center, Portland, OR; Joseph
M. Lovett, Appalachian Center for the Economy &
the Environment, Lewisburg, WV; and Peter Van
Tuyn, Bessenyey & Van Tuyn, Anchorage, AK, for
amici curiae in support of plaintiffs-appellants.

John W. Hartle, City and Borough of Juneau, Jun-
eau, AK; Amy Gurton Mead, Robertson, Monagle &
Eastaugh, Juneau, Alaska; Steven J. Lechner, Moun-
tain States Legal Foundation, Lakewood, CO;
Michael R. Shebelskie, Hunton & Williams LLP,
Richmond, Virginia; Harold P. Quinn, Jr., National
Mining Association, Washington, D.C.; and Stephen
F. Sorensen, Simpson, Tillinghast & Sorensen PC,
Juneau, AK, for amici curiae in support of defen-
dants-appellees.

Appeal from the United States District Court for the
District of Alaska; James K. Singleton, Senior Dis-
trict Judge, Presiding. D.C. No. CV-05-00012-J-JKS.

Before PROCTER HUG, JR, A. WALLACE
TASHIMA, and SUSAN P. GRABER, Circuit Judges.

3a

HUG, Circuit Judge.

This case presents the question of whether the issu-
ance of a permit by the U.S. Army Corps of
Engineers violates the Clean Water Act.! The permit
issued in this case authorizes Coeur Alaska, Inc., to
discharge process wastewater containing tailings
from its gold mine into a lake that is a navigable wa-
ter of the United States. Coeur Alaska proposes to
discharge daily 210,000 gallons of process wastewa-
ter containing 1,440 tons of tailings from its mine
into Lower Slate Lake. The tailings in the discharge
will raise the bottom elevation of the lake by 50 feet.
A 90-foot high, 500-foot long dam will be built to con-
tain the discharge and the area of the lake will be
increased about three-fold. The U.S. Army Corps of
Engineers contends that the permit was properly
granted under § 404 of the Clean Water Act, which
relates to the disposal of “fill material,” and that it is
not subject to the effluent restrictions of § 301 or
§ 306 of the Clean Water Act. The plaintiffs contend
that this mine disposal discharge must comply with
the effluent restrictions of § 301 and § 306, and that
any permit allowing discharge must be issued by the
Environmental Protection Agency. The district court
held that the issuance of the permit was proper. We
reverse and remand with instructions to vacate the
permit.2

1 33 U.S.C. §§ 1251-1387.

2 We also vacate the permit granted to Goldbelt, Inc., to
construct the Cascade Point Marine Facility in Berners
Bay and the U.S. Forest Service’s Record of Decision ap-
proving the general plan because they are dependent on

[Footnote continued on next page}

4a

I.

Coeur Alaska intends to open the Kensington Gold
Mine on the site of a prior mine in southeast Alaska
that operated from 1897 to 1928. Although the min-
ing operation will include several above-ground
facilities, the mine itself will be entirely subterra-
nean.

To process the gold ore retrieved from the mine,
Coeur Alaska will construct a froth-flotation mill fa-
cility. In the froth-flotation process, ore-bearing rock
from the mine will be transported to a mill and
moved through a series of mechanical crushing and
grinding procedures. After the rock is finely ground,
it will be fed into a tank where water and chemicals
referred to as conditioners, frothers, surfactants, and
scale inhibitors will be added. Air is then pumped
into the tank, producing bubbles that attach to the
gold deposits. The bubbles rise, bringing the gold
with them and forming a froth that is skimmed off
the top.

After the gold has bubbled up to the surface and the
froth is removed, the tailings-residual ground rock-
remain as a waste product. Of the 2,000 tons of ore
that the Kensington mine will process each day, only
about 100 tons (5 percent) contain economicaily vi-
able gold minerals. About 40 percent of the tailinys
will be used as backfill in the mine. %'he remaining
volume is, according to Coeur Alaska, too large to
transport off site and presents a waste disposal prob-

[Footnote continued from previous page]

the validity of the permit issued by the U.S. Army Corps
of Engineers to Coeur Alaska.

5a

lem. This dispute arises from Coeur Alaska’s current
plan for addressing that disposal problem.

Coeur Alaska’s earlier plan of operations for the
Kensington Gold Mine called for the construction of a
“dry tailings facility,” in which the mine would dis-
pose of waste from its froth-flotation mill on dry
“uplands.” This disposal process involved the con-
struction of berm and drainage structures around
the designated disposal area, dewatering the process
wastewater, and placement of the tailings within an
enclosure. After the closure of the mine in about 10
to 15 years, Coeur Alaska would have been required
to cover the disposal area with native material to
support revegetation. The U.S. Forest Service (“For-
est Service”) approved the plan of operations for the
dry tailings facility, and the U.S. Army Corps of En-
gineers (“Corps”) and the Environmental Protection
Agency (“EPA”) issued permits to the company au-
thorizing the construction of this facility in 1997. The
price of gold subsequently dropped to $400 an ounce,
however, prompting Coeur Alaska to investigate less
expensive ways to develop the mine project.3 In 2004,
Coeur Alaska proposed a new plan of operations with
significant amendments. The most important change
for our purposes was that, instead of the dry tailings
facility, Coeur Alaska proposed to discharge its proc-
ess wastewater containing the tailings directly into
nearby Lower Slate Lake.

3 The price of gold has since been rising steadily and is
currently over $680 an ounce, thus the original motiva-
tion for the change in waste disposal from the mine no
longer exists.

6a

Lower Slate Lake, a 23-acre subalpine lake in the
Tongass National Forest, is one of several small
lakes in the vicinity of the mine. The lake is a fish
and wildlife habitat and supports about 1,000 Dolly
Varden Char (a freshwater fish) and other native
fish and aquatic life. The lake is also a tributary of
Slate Creek and drains into Berners Bay.

Coeur Alaska’s current disposal plan involves piping
approximately 210,000 gallons of process wastewa-
ter, including 1,440 tons of tailings, each day to the
bottom of Lower Slate Lake in the form of a slurry.
This slurry would consist of about 45 percent water
and 55 percent tailings. A polymer and flocculent
would be added to the slurry to enhance settling of
the tailings. Over the 10- to 15-year life of the mine,
approximately 4.5 million tons of tailings would be
deposited into the lake. The discharge ultimately
would raise the bottom of the lake 50 feet, to its cur-
rent high water mark, and nearly triple its surface
area. Coeur Alaska and the Corps admit that the
discharge and settling of the tailings into the lake
would kill all the fish and nearly all the aquatic life.
The effluent would have a pH factor of over 10,
which is considerably higher than the lake’s current
pH factor, and would contain concentrations of sev-
eral potentially hazardous materials, including
aluminum, copper, lead, and mercury. The toxicity of
the discharge may have lasting effects on the lake
and may negatively affect its ability to sustain
aquatic life in the future. The Corps intends that
aquatic life would be reintroduced into the lake, but
the extent to which aquatic life could be restored
eventually is unclear.

To prepare the lake for use as a wastewater disposal
facility and the consequent expansion of the lake’s

Ja

surface, Coeur Alaska would construct a 90-foot high,
500-foot long dam at the lake’s outfall point. Coeur
Alaska’s long-term plan to use the lake as a disposal
facility also includes the construction of a diversion
ditch. Constructing the ditch would require cutting
trees on 7.6 acres of forested land, building a 30-foot
wide road, excavating and digging a 3,000-foot ditch,
and filling in 4.3 acres of nearby wetlands with
28,800 cubic yards of fill material. In addition, dur-
ing the 10- to 15-year period of the lake’s use as a
disposal facility, Slate Creek would be diverted
around the lake through a pipeline.

The Forest Service approved Coeur Alaska’s current
plan of operations at the Kensington Gold Mine, in-
cluding the revised disposal plan, in a Record of
Decision (“ROD”) on December 9, 2004. Because the
proposed discharge would have the effect of raising
the bottom elevation of Lower Slate Lake, the Corps
reasoned that the permit program under § 404 of the
Clean Water Act, rather than § 402, applies to Coeur
Alaska’s planned discharges. Accordingly, the Corps
issued a permit for the discharge into Lower Slate
Lake on June 17, 2005.

Under the permit, when operations at the mine even-
tually cease, the Corps would require Coeur Alaska
to mitigate the environmental impacts at the lake by
installing a cap of native material over the tailings at
the bottom of the lake. The Corps would also require
Coeur Alaska to reintroduce native fish species into
the lake and monitor the health of the ecosystem.

If.

Southeast Alaska Conservation Council, the Sierra
Club, and Lynn Canal Conservation (collectively
“SEACC”) filed this lawsuit challenging the Corps’
permit and the Forest Service’s ROD approving the

8a

general plan on the grounds that they violate
§ 301(a), § 301(e), and § 306(e) of the Clean Water
Act. The crux of SEACC’s argument is that the Corps
violated the Clean Water Act by issuing a permit for
the discharge of process wastewater from a froth-
flotation mill into a body of water protected by the
Clean Water Act.

After the complaint was filed, the Corps decided to
suspend the permit and reconsidered its decision to
issue the permit. For that purpose, the Corps moved
for voluntary remand of the case before briefing on
the merits began, which the district court granted on
November 14, 2005. The Corps reinstated the origi-
nal permit, without changes, on March 29, 2006. At
the same time, the Corps issued a revised ROD in
which it explained its rationale. SEACC then filed an
amended complaint, in which it reiterated its allega-
tions and reasserted its causes of action. Coeur
Alaska, Goldbelt, Inc., and the State of Alaska inter-
vened as defendants. The parties filed cross-motions
for summary judgment.

The district court granted summary judgment to the
defendants on August 4, 2006. In its opinion, the dis-
trict court focused on whether the Corps misapplied
§ 404 of the Clean Water Act. The district court
noted that SEACC challenged the granting of the
permit on the grounds that it did not comply with
§ 301(e) and § 306(e). It held that if the permit was
issued under § 404 for the disposal of “fill material,”
then § 301(e) and § 306(e) were inapplicable.

SEACC appealed on August 7, 2006, three days after
the district court’s decision, and this court, on
SEACC’s motion, granted an injunction pending ap-
peal on August 24, 2006, which prohibited Coeur
Alaska, the Corps, and the Forest Service from pro-

9a

ceeding with further construction activities related to
preparing the lake for use as a waste disposal site.
See SEACC v. U.S. Army Corps of Eng’rs, 472 F.3d
1097, 1099 (9th Cir. 2006). Since granting the injunc-
tion, we have addressed two emergency motions
related to stabilizing a temporary coffer dam that
was hastily constructed by Coeur Alaska prior to the
injunction. Id.; SEACC v. U.S. Army Corps of Eng’rs,
479 F.3d 1148, 1151—52 (9th Cir. 2007).

III.

We review the district court’s grant of summary
judgment de novo and must determine whether the
district court correctly applied the relevant substan-
tive law. Turtle Island Restoration Network v. Nat'l
Marine Fisheries Serv., 340 F.3d 969, 973 (9th Cir.
2003); United States v. City of Tacoma, 332 F.3d 574,
578 (9th Cir. 2003). “De novo review of a district
court judgment concerning a decision of an adminis-
trative agency means the court views the case from
the same position as the district court.” Turtle Is-
land, 340 F.3d at 973 (citing Nev. Land Action Ass’n
v. U.S. Forest Serv., 8 F.3d 713, 716 (9th Cir. 1993)).
Judicial review of administrative decisions under the
Clean Water Act is governed by § 706 of the Admin-
istrative Procedure Act (“APA”). Natl Wildlife Fed’n
v. U.S. Army Corps of Eng’rs, 384 F.3d 1163, 1170
(9th Cir. 2004). Under the APA, a court may set
aside an agency action if the court determines that
the action was “arbitrary, capricious, an abuse of dis-
cretion, or otherwise not in accordance with law.” 5
U.S.C. § 706(2\(A); Turtle Island, 340 F.3d at 973.

IV.
Two different regulations contain plain language in-

terpreting the Clean Water Act that would appear to
govern Coeur Alaska’s proposed plan of operations at

10a

the Kensington Gold Mine, but they result in differ-
ent interpretations of the Act. The discharge of
wastewater containing tailings from Coeur Alaska’s
froth-flotation mill operation facially meets the
Corps’ current regulatory definition of “fill material”
because it would have the effect of raising the bottom
elevation of the lake. See 33 C.F.R. § 323.2(e). Ac-
cordingly, under this interpretation, the discharge
would be subject to the permit process governed by
§ 404 of the Clean Water Act. However, EPA previ-
ously promulgated a _ performance _ standard,
pursuant to § 301 and § 306 of the Clean Water Act,
that prohibits discharges from froth-flotation mills
into waters of the United States. See 40 C.F.R.
§ 440.104(b)(1).

Both of the reguiations appear to apply in this case,
yet they are at odds. As explained below, the plain
language of the Clean Water Act resolves this con-
flict and requires that the performance standard
controls. The statute is unambiguous on this point,
and the performance standard applies to discharges
from the froth-flotation mill at Coeur Alaska’s Ken-
sington Gold Mine into Lower Slate Lake.
Furthermore, the federal agencies’ clear statements
at the time they adopted the current regulatory defi-
nition of the term “fill material” demonstrate that
they did not intend for waste products subject to ef-
fluent limitations and performance standards to be
regulated as “fill material.” For these reasons the
Corps should not have issued a permit to Coeur
Alaska under § 404. The district court’s grant of
summary judgment in favor of the Corps is reversed,
and we remand for summary judgment to be entered
in favor of the plaintiffs with directions to vacate the
permit granted by the Corps.

lla

A.

We begin, as we must, with the text of the Clean Wa-
ter Act itself to determine “whether Congress has
directly spoken to the precise question at issue. 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.” Chevron, U.S.A., Inc. v. Natural Res. Def.
Council, Inc., 467 U.S. 837, 842-43, 104 S. Ct. 2778,
81 L.Ed.2d 694 (1984). “If a court, employing tradi-
tional tools of statutory construction, ascertains that
Congress had an intention on the precise question at
issue, that intention is the law and must be given ef-
fect.” Id. at 843 n.9, 104 S. Ct. 2778.

1.

Congress passed the Clean Water Act in 1972 “to re-
store and maintain the chemical, physical, and
biological integrity” of the waters of the United
States. 33 U.S.C. § 1251(a). To achieve this objective,
the Clean Water Act sought to eliminate completely
the discharge of all pollutants into the nation’s navi-
gable waters by 1985. 33 U.S.C. § 1251(a)(1). It also
sought to make those waters suitable for fish, shell-
fish, wildlife, and recreation. 33 U.S.C. § 1251(a)(2).
One of Congress’s principal concerns in passing the
Clean Water Act was the use of water for waste dis-
posal, which Congress deemed “unacceptable.” See
S. Rep. No. 92-414, at 7 (1971), reprinted in 1971
U.S.C.C.A.N. 3668, 3674 (“The use of any river, lake,
stream or ocean as a waste treatment system is un-
acceptable.”), quoted in Weyerhaeuser Co. v. Costle,
590 F.2d 1011, 1043 (9th Cir. 1978).

The “cornerstone” and “fundamental premise” of the
Clean Water Act is § 301, which prohibits all dis-
charges of any pollutant except in compliance with

12a

specified provisions of the statute. Ass’n to Protect
Hammersley, Eld, & Totten Inlets v. Taylor Res., Inc.,
299 F.3d 1007, 1009 (9th Cir. 2002); Natural Res.
Def. Council, Inc. v. EPA, 822 F.2d 104, 109 (D.C.
Cir. 1987). Specifically, § 301(a) provides that “the
discharge of any pollutant by any person shall be
unlawful” except when the discharge complies with
the requirements of, inter alia, § 301, § 306, § 402,
and § 404.4 33 U.S.C. § 1311(a). In furtherance of
this mandate, § 301(b) requires EPA to adopt in-
creasingly stringent, technology-based _ effluent
limitations® for point sources.§ Once an effluent limi-
tation is promulgated, § 301(e) requires that it “shall
be applied to ad/ point sources of discharge of pollut-

4 The full text of § 301 states: “Except as in compliance
with this section and sections 1312, 1316, 1317, 1328,
1342, and 1344 of this title, the discharge of any pollutant
by any person shall be unlawful.” 33 U.S.C. § 1311(a).

5 “The term ‘effluent limitation’ means any restriction
established by a State or the [EPA] on quantities, rates,
and concentrations of chemical, physical, biological, and
other constituents which are discharged from point
sources into navigable waters, ... including schedules of
compliance.” 33 U.S.C. § 1362(11).

6 “The term ‘point source’ means any discernible, con-
fined and discrete conveyance, including but not limited
to any pipe, ditch, changel, tunnel, conduit, well, discrete
fissure, container, rolling stock, concentrated animal feed-
ing operation, or vessel or other floating craft, from which
poliutants are or may be discharged.” 33 U.S.C.
§ 1362(14).

l3a

ants in accordance with the provisions of” the stat-
ute. 33 U.S.C. § 1311(e) (emphasis added).

Similarly, § 306 requires EPA to implement even
more stringent “standards of performance” for new
sources such as the new Coeur Alaska mine project.’
33 U.S.C. § 1316(b). To carry out § 306’s directive,
EPA must promulgate a list of categories of sources
and, for new sources within each category, establish
a national standard of performance (also referred to
as a New Source Performance Standard). Jd. A stan-
dard of performance is defined as “a standard for the
control of the discharge of pollutants which reflects
the greatest degree of effluent reduction which [EPA]
determines to be achievable through application of
the best available demonstrated control technology,
processes, operating methods, or other alternatives,
including, where practicable, a standard permitting
no discharge of pollutants.” 33 U.S.C. § 1316(a)(1)
(emphasis added). As with the effluent reductions
promulgated under § 301,8 § 306 states that, once a

7 “The term ‘new source’ means any source, the con-
struction of which is commenced after the publication of
proposed regulations prescribing a standard of perform-
ance under this section which will be applicable to such
source, if such standard is thereafter promulgated in ac-
cordance with this section.” 33 U.S.C. § 1316(a)(2).

“The term ‘source’ means any building, structure, facility,
or installation from which there is or may be the dis-
charge of pollutants.” 33 U.S.C. § 1316(a)3).

8 A standard of performance is one type of effluent limi-
tation. See 33 U.S.C. § 1362(11). Therefore, § 301(e) and
$ 306(e) have the same practical effect in this case.

l4a

standard of performance takes effect, “it shall be
unlawful for any owner or operator of any new source
to operate such source in violation of any standard of
performance applicable to such source.” 33 U.S.C.
§ 1316(e). Congress thus “intended these regulations
to be absolute prohibitions.” E.J. du Pont de Nemours
& Co. v. Train (“Du Pont”’, 430 U.S. 112, 138, 97
S. Ct. 965, 51 L.Ed.2d 204 (1977) (citing S. Rep. No.
92-414, at 58 (1971)). The legislative history of § 306
indicates that Congress made a “deliberate choice
not to allow variances for new sources.” Riverkeeper,
Inc. v. EPA, 358 F.3d 174, 192 (2d Cir. 2004). As
such, no exceptions to a standard of performance are
allowed. See id.; Du Pont, 430 U.S. at 138, 97 S. Ct.
965.

To ensure compliance with effluent limitations and
performance standards established pursuant to § 301
and § 306, Congress created the National Pollutant
Discharge Elimination System (“NPDES”) permit
program under § 402 of the Act. Through the NPDES
program, EPA may permit a discharge, but only if it
complies with § 301 and § 306. Additionally, NPDES
permits are supposed to limit the release of pollut-
ants into waterways as much as possible by imposing
numerical discharge restrictions. Rybachek v. EPA,
904 F.2d 1276, 1283 (9th Cir. 1990). For this reason,
the NPDES permit program is considered “central to
the enforcement” of the Clean Water Act. Natural
Res. Def. Council, Inc. v. Costle, 568 F.2d 1369, 1374
(D.C. Cir. 1977).

In addition to the NPDES permit program, the Clean
Water Act established a secondary permit program
for the discharge of “dredged or fill material” under
§ 404. According to § 404, the Corps “may issue per-
mits ... for the discharge of dredged or fill material

15a

into the navigable waters at specified disposal sites.”
33 U.S.C. § 1844(a). We conclude that the permit
scheme under § 404 is a limited permit program that
applies only to dredged or fill material, not to the
discharge of pollutants from industrial or municipal
sources.

2.

The language of the Clean Water Act is clear on the
issue at the center of this dispute. First, § 301(a)
prohibits any discharge that does not comply with
several enumerated sections, including both § 301
and § 306, as well as § 402 and § 404. 33 U.S.C.
§ 1311(a). The use of “and” as a connector, instead of
“or,” indicates that Congress intended for effluent
limitations and standards of performance to apply to
all applicable discharges, even those that facially
qualify for permitting under § 404. Second, § 301(e)
applies effluent limitations established by EPA to all
discharges. 33 U.S.C. § 1311(e). Third, § 306(e) pro-
hibits any discharge that does not comply with
performance standards promulgated by EPA. 33
U.S.C. § 1316(e). In clear and precise terms, § 301
and § 306 require that discharges comply with appli-
cable effluent limitations and = standards’ of
performance. Neither § 301 nor § 306 contains an ex-
ception for discharges that would otherwise qualify
for regulation under § 404. Rather, § 301 and § 306
are “absolute prohibitions” with no _ exceptions.
Du Pont, 430 U.S. at 138, 97 S. Ct. 965.

Nevertheless, the defendants argue that § 301 and
§ 306 do not apply to § 404 permits because § 402 ex-
plicitly requires compliance with those sections
whereas § 404 does not. The defendants then reason,
by way of negative inference, that § 404 contains an
implied exception to the requirements of § 301 and

16a

§ 306 whenever a proposed discharge would meet the
agencies’ regulatory definition of “fill material.” We
disagree. Negative inferences and implied exceptions
are generally disfavored. As the Supreme Court
stated in United States v. Rutherford, 442 U.S. 544,
99 S. Ct. 2470, 61 L.Ed.2d 68 (1979): “Exceptions to
clearly delineated statutes will be implied only where
essential to prevent ‘absurd results’ or consequences
obviously at variance with the policy of the enact-
ment as a whole.” Id. at 552, 99 S. Ct. 2470 (citing
Helvering v. Hammel, 311 U.S. 504, 510-11, 61 S. Ct.
368, 85 L.Ed. 303 (1941)). That is because courts
have “generally presumed that Congress acts inten-
tionally and purposely in the disparate inclusion or
exclusion” of particular language. S.D. Warren Co. v.
Me. Bd. of Envtl. Prot., --- U.S. ----, 126 S. Ct. 1843,
1852, 164 L.Ed.2d 625 (2006) (quoting Bates v.
United States, 522 U.S. 23, 29-30, 118 S. Ct. 285,
139 L.Ed.2d 215 (1997)). The defendants have pro-
duced no compelling reason to believe that Congress
intended an exception within § 404 that it did not
explicitly create. If the defendants’ interpretation
were correct, Congress would have written § 301 and
§ 306 within § 402, not as separate sections. More-
over, the implied exception urged by the defendants,
if adopted, would turn § 404 into an exception that
swallows the rule created by § 301, § 306, and § 402
by allowing the Corps to use a negative inference
from an exception clause within § 402. Thus, § 404’s
silence regarding the explicit and detailed require-
ments in § 301 and § 306 cannot create an exception
to those sections’ strongly-worded blanket prohibi-
tions.

The defendants’ interpretation would render § 301(e)
and § 306(e) effectively meaningless. Courts strive to
avoid interpreting a statute “in a manner that ren-

17a

ders other provisions of the same statute inconsis-
tent, meaningless, or superfluous.” Boise Cascade
Corp. v. EPA, 942 F.2d 1427, 1432 (9th Cir. 1991),
quoted in Cuevas-Gaspar v. Gonzales, 430 F.3d 1013,
1024 (9th Cir. 2005); see also Ratzlaf v. United
States, 510 U.S. 135, 140-41, 114 S.Ct. 655, 126
L.Ed.2d 615 (1994); Watt v. Alaska, 451 U.S. 259,
267, 101 S. Ct. 1673, 68 L.Ed.2d 80 (1981) (“We must
read the statutes to give effect to each if we can do so
while preserving their sense and purpose.”). If the
defendants were correct, the words “all” in § 301(e)
and “any” in § 306(e)? would lose their meaning en-
tirely.

There is a much simpler explanation for the differ-
ence in language between § 402 and § 404 than the
defendants’ proposed negative inference. If EPA has
adopted an effluent limitation or performance stan-
dard applicable to a relevant source of pollution,
§ 301 and § 306 preclude the use of a § 404 permit
scheme for that discharge. See 67 Fed. Reg. 31,129,

9 Section 301(e) provides: “Effluent limitations estab-
lished pursuant to this section or section 1312 of this title
shall be applied to al/ point sources of discharge of pollut-
ants in accordance with the provisions of this chapter.” 33
U.S.C. § 1311(e) (emphasis added).

Section 306(e), which applies to new sources like the
Coeur Alaska mine project, provides: “After the effective
date of standards of performance promulgated under this
section, it shall be unlawful for any owner or operator of
any new source to operate such source in violation of any
standard of performance applicable to such source.” 33
U.S.C. § 1316 (emphasis added).

18a

31,135 (May 9, 2002); EPA/Corps, Joint Response to
Comments 12 (May 3, 2002). Accordingly, the
NPDES program administered by EPA under § 402
is the only appropriate permitting mechanism for
discharges subject to an effluent limitation under
§ 301 or a standard of performance under § 306.
Consequently, there was simply no need for Congress
to enumerate § 301 or § 306 within § 404 because
Congress never intended for § 404 to govern dis-
charges subject to effluent limitations or
performance standards. Rather, when a discharge is
subject to an effluent limitation or performance
standard, that discharge must comply with the
NPDES program as required by § 402. See 67 Fed.
Reg. at 31,135; 47 Fed. Reg. 54,598, 54,606 (Dec. 12,
1982). This construction of the statute preserves the
full meaning of all of its provisions without rendering
any provision superfluous or resorting to negative in-
ferences and implied exceptions.

Additionally, although § 404 does not contain an ex-
plicit exception to effluent limitations or standards of
performance, it does contain exceptions to other pro-
visions of the Clean Water Act. Specifically, § 404(f
exempts discharges of dredged or fill material from
certain activities from regulation under § 301(a),
§ 402, and § 404. 33 U.S.C. § 1344(M(1). Discharges
related to agricultural activities and road construc:
tion, among others, are exempted under § 404(f)(1).
Mining is not listed as an exempt activity. “Where
Congress explicitly enumerates certain exceptions to
a general prohibition, additional exceptions are not
to be implied, in the absence of evidence of a contrary
legislative intent.” Andrus v. Glover Constr. Co., 446
U.S. 608, 616-17, 100 S. Ct. 1905, 64 L.Ed.2d 548
(1980). The defendants have produced no reason to
believe that Congress intended additional exemp-

19a

tions to be created later. Therefore, the lack of any
explicit exception to § 301 and § 306 within § 404,
and the lack of an exception for process wastewater
from mines, is strong evidence that Congress did not
intend one. Jd. Even stronger evidence is Congress’s
insistence in § 404(f) that even the discharges from
the enumerated activities continue to be subject to
effluent standards. 33 U.S.C. § 1344(f).

Thus, the plain language of the Clean Water Act di-
rectly resolves the conflict between the regulatory
definition of “fill material” afd EPA’s performance
standard for froth-flotation mill operations. Pursu-
ant to § 301 and § 306, EPA’s performance standard
for froth-flotation mills governs this situation. The
language of § 404 does not lead to a contrary conclu-
sion.

B.

Although the piain language of the Clean Water Act
resolves the apparent regulatory conflict at the heart
of this case, the regulatory history further demon-
strates that neither the Corps nor EPA intended for
the current regulatory definition of “fill material” to
replace the performance standard for froth-flotation
mills. Courts consider contemporancous explanations
of regulations, such as those published in the Federal
Register through notice-and-comment rulemaking, in
order to determine an agency’s intent. See Hiillsbor-
ough County v. Automated Med. Labs., Inc., 471 US.
707, 714-16, 105 S. Ct. 2371, 85 L.Ed.2d 714 (1985);
Friends of Yosemite Valley v. Norton, 348 F.3d 789,
797 (9th Cir. 2003); League of Wilderness Defend-
ers/Blue Mountains Biodiversity Project v. Forsgren,
309 F.3d 1181, 1189-90 (9th Cir. 2002); Kentuckians
for the Commonwealth, Inc. v. Rivenburgh, 317 F.3d
425, 416-47 (4th Cir. 2003). And courts will not defer

20a

to an agency’s interpretation of a regulation that
contradicts the agency’s intent at the time it promul-
gated the regulation. Gonzales v. Oregon, 546 U.S.
243, 126 S.Ct. 904, 916, 163 L.Ed.2d 748 (2006);
Thomas Jefferson Univ. v. Shalala, 512 U.S. 504,
512, 114 S. Ct. 2381, 129 L.Ed.2d 405 (1994); Alaska
Trojan P’ship v. Gutierrez, 425 F.3d 620, 627-28 (9th
Cir. 2005); see also Auer v. Robbins, 519 U.S. 452,
461, 117 S.Ct. 905, 137 L.Ed.2d 79 (1997) (an
agency’s interpretation of a regulation is not entitled
to deference where it is “plainly erroneous” or “incon-
sistent with the regulation”) (quoting Bowles uv.
Seminole Rock & Sand Co., 325 U.S. 410, 414, 65
S. Ct. 1215, 89 L.Ed. 1700 (1945)). When the agen-
cies promulgated the current definition in 2002, they
foresaw and specifically addressed the potential con-
flict between the effects-based definition of “fill
material” and performance standards already in
place. To that end, the agencies explicitly stated that
wastes subject to performance standards and efflu-
ent limitations would not be considered “fill
material.” The Corps’ application of the fill rule in
this case, therefore, contradicts its interpretation at
the time the regulation was promulgated.

1.

Following its statutory obligation under § 301 and
§ 306, in 1982 EPA promulgated effluent limitations
and standards of performance for sources within the
category of ore mining. See 47 Fed. Reg. 25,682
(June 14, 1982) (proposed); 47 Fed. Reg. 54,598
(Dec. 3, 1982) (final). Within this category, FPA es-
tablished a subcategory that applied to gold mining.
See 40 C.F.R. §§ 440.100-440.104. For gold mines us-
ing the froth-flotation mill process, EPA promulgated
a zero-discharge standard:

2la

Except as provided in paragraph (b)[2]
of this section, there shall be no dis-
charge of process waste-water to
navigable waters from mills that use
the froth-flotation process alone, or in
conjunction with other processes, for the
beneficiation of copper, lead, zinc, gold,
silver, or molybdenum ores or any com-
bination of these ores.

40 C.F.R. § 440.104(b)(1) (emphasis added); see also
47 Fed. Reg. at 25,697 (proposing zero discharge).
EPA found that the zero-discharge standard was
practicable because the majority of facilities existing
at the time already achieved zero discharge through
recycling and evaporation processes. 47 Fed. Reg. at
54,602. EPA promulgated this standard knowing
that process wastewater discharges from froth-
flotation mills contain a large amount of suspended
solids that could otherwise qualify for regulation un-
der § 404 pursuant to its effects-based definition of
“fill material.” See 47 Fed. Reg. at 25,685 (“Mill proc-
ess wastewater is characterized by very high
suspended solids levels (often in the percent range
rather than milligrams per liter) ... .”). In determin-
ing that a_ strict zero-discharge limit was
appropriate, EPA determined that the best available
control technology included the complete recycling of
process wastewater. See 47 Fed. Reg. at 54,602.
Given that the regulation facially applies to any dis-
charge from a froth-flotation mill, and that it
provides some limited exceptions that do not include
“fill material,” EPA intended for the prohibition to
apply to discharges that would otherwise qualify as
fill material under § 404. See 67 Fed. Reg. at 31,135.
This conclusion is also supported by the fact that
EPA promulgated the regulation notwithstanding its

22a

definition of “fill material,” which was identical to
the definition used by both agencies today.

3.

The history of the current fill rule also demonstrates
that both agencies intended for effluent limitations
and performance standards to apply even to dis-
charges that facially meet the definition of the term
“fill material.” The Clean Water Act does not define
the term “fill material.” Instead, Congress implicitly
left that term to the Corps and EPA to define. See
Res. Invs., Inc. v. U.S. Army Corps of Eng’rs, 151
F.3d 1162, 1166 (9th Cir. 1998). As with most regula-
tory definitions, the agencies’ definitions of “fill
material” have evolved over time. In fact, prior to the
current regulatory definition of “fill material,” the
Corps and EPA defined “fill material” differently.
The Corps initially used an effects-based test, which
defined “fill material” as “any pollutant used to cre-
ate fill in the traditional sense of replacing an
aquatic area with dry land or of changing the bottom
elevation of a water body for any purpose.” 4C Fed.
Reg. 31,320, 31,325 (July 25, 1975). EPA later
adopted the identical definition. 40 Fed. Reg. 41,292,
41,298 (Sept. 5, 1975). Two years later, the Corps re-
vised its definition and adopted a purpose-based test,
which excluded from its definition “any pollutant dis-
charged into the water primarily to dispose of
waste.” 42 Fed. Reg. 37,122, 37,145 (July 19, 1977).
In adopting its purpose-based definition, the Corps
explained that there were many waste materials
“which technically fit within our definition of ‘fill ma-
terial’ but which were intended to be regulated under
the NPDES program.” Jd. at 37,130. EPA, in 1980,
chose to keep its effects-based test. See 45 Fed. Reg.
33,290, 33,421 (May 19, 1980).

23a

The agencies’ differing definitions of “fill material”
created a potential regulatory overlap. See, e.g., Res.
Invs., 151 F.3d at 1165-66, 1168—69 (acknowledging
overlap); Kentuckians, 317 F.3d at 432 (“the Corps
acknowledged that the differing approaches in defin-
ing ‘fill material’ employed by EPA and the Corps in
their regulations had created some uncertainty about
their interpretation of the Clean Water Act”). Many
industrial wastes contain a high proportion of sus-
pended solids and, therefore, have the effect of
changing the bottom elevation of a body of water. As
such, those wastes could have been considered fill
material under EPA’s definition. However, EPA con-
tinued to regulate many of those industrial wastes
under § 402, and also continued to promulgate new
effluent limitations and standards of performance for
industrial pollutants with high concentrations of sol-
ids, regardless of their potential to raise the bottom
elevation of a body of water. See, e.g., 46 Fed. Reg.
8,260, 8,292 (Jan. 26, 1981) (regulating discharges of
suspended solids from log-washing processes). In-
deed, the new source performance standard for froth-
flotation mills was adopted in 1982, despite the fact
that waste from this process would have the effect of
raising bottom elevation and, therefore, could other-
wise constitute fill material under EPA’s effects-
based test. See 47 Fed. Reg. at 25,685. Thus, not-
withstanding the potential regulatory overlap
created by the agencies’ differing definitions, EPA
regulated many industrial pollutants under § 402.
The agencies formally adopted this practice in a
Memorandum of Agreement on Solid Waste (“MOA”)

24a

in 1986. 51 Fed. Reg. 8,871 (Mar. 14, 1986). After
adoption of the MOA in 1986, the Corps continually
declined to exercise jurisdiction over mine tailings.!9

In 2002, the agencies promulgated their joint regula-
tion defining the terms “fill material” and “discharge
of fill material.” 67 Fed. Reg. at 31,130. The current

regulatory definition of “fill material” provides:

(1) Except as specified in paragraph
(e\(3) of this section, the term “fill mate-
rial” means material placed in waters of
the United States where the material
has the effect of:

(i) Repiacing any portion of a wa-
ter of the United States with dry land;
or

(ii) Changing the bottom elevation
of any portion of a water cf the United
States.

10 See, e.g., Memorandum from Col. John W. Pierce, U.S.
Army Corps of Eng’rs, “Agency Jurisdiction over Certain
Activities Connected with Mineral Extraction, Specifically
Gold Mining, in Alaska” 1—2 (Apr. 14, 1992) (“The tailings
behind the dam, however, are a waste product of the min-
ing operation and are not under our jurisdiction according
to the 1986 Memorandum of Agrecment....”); Letter from
Glen E. Justis, U.S. Army Corps of Eng’rs 2-3 (June 18,
1991) (“The Corps has neither special expertise [nJor ju-
risdiction by law to evaluate the impacts of the tailings
discharge... The tailings do not meet the Corps’ definition
of fill material.”).

25a

(2) Examples of such fill material in-
clude, but are not limited to: rock, sand,
soil, clay, plastics, construction debris,
wood chips, overburden from mining?!
or other excavation activities, and ma-
terials used to create any structure or
infrastructure in the waters of the
United States.

(3) The term fill material does not in-
clude trash or garbage.

33 C.F.R. § 323.2(e) (Corps’ reguiation); 40 C.F.R.
§ 232.2 (EPA’s regulation) (emphasis added). The
agencies also defined “discharge of fill material” as
follows:

The term “discharge of fill material”
means the addition of fill material into
waters of the United States. The term
generally includes, without limitation,
the following activities: ... placement of
overburden, slurry, or tailings or simi-
lar mining-related materials... .

33 C.F.R. § 323.2(f); 40 C.F.R. § 232.2.12

11 “Overburden” is generally defined as rock or soil
cleared away before mining. See EPA, Terms of Environ-
ment, http://www.epa.gov/OCEPAterms/oterms. html
(May 14, 2007).

12 The amici brief of 14 members of Congress argues
persuasively that the adoption of these regulations by the
Corps and EPA violates the purposes and plain language
of the Clean Water Act by allowing waste material to be
dumped into lakes, rivers, and other waters of the United

Footnote continued on next page|

26a

At the same time, however, the agencies made clear
that they did not intend to change their long-
standing practice, according to which EPA regulates
discharges of pollutants for which it has established
effluent limitations or standards of performance un-
der the NPDES program.1%

[W]e emphasize that today’s rule generally is in-
tended to maintain our existing approach to
regulating pollutants under either section 402 or 404
of the CWA. Effluent limitation guidelines and new
source performance standards (“effluent guidelines”)

[Footnote continued from previous page]

States. SEACC bases its argument on a narrower ground
pertaining to this particular mine. Thus, we do not reach
the issue of the validity of these regulations.

13 In Kentuckians, the Fourth Circuit recognized the
Corps’ prior practice of not regulating discharges subject
to effluent limitations under § 404:

{We conclude that the Corps’ interpretation of “fill
material” as used in § 404 of the Clean Water Act
to mean all material that displaces water or
changes the bottom elevation of a water body ex-
cept for “waste’—meaning garbage, sewage, and
effluent that could be regulated by ongoing effluent
limitations as described in § 402—is a permissible
construction of § 404.

317 F.3d at 448. The court also explained the Corps’ prior
position that it was not authorized to regulate discharges
subject to effluent limitations. /d. at 445.

27a

promulgated under section 304!4 and 306 of the
CWA establish limitations and standards for speci-
fied wastestreams from industrial categories, and
those limitations and standards are incorporated
into permits issued under section 402 of the Act.
EPA has never sought to regulate fill material under
effluent guidelines. Rather, effluent guidelines re-
strict discharges of pollutants from _ identified
wastestreams based upon the pollutant reduction
capabilities of available treatment technologies. Rec-
ognizing that some discharges (such as suspended or
settleable solids) can have the associated effect, over
time, of raising the bottom elevation of a water due
to settling of waterborne pollutants, we do not con-
sider such pollutants to be “fill material,” and
nothing in today’s rule changes that view. Nor does
today’s rule change any determination we have made
regarding discharges that are subject to an effluent
limitation guideline and standards, which will con-
tinue to be regulated under section 402 of the CWA.
Similarly, this rule does not alter the manner in
which water quality standards currently apply under
the section 402 or the section 404 programs.

67 Fed. Reg. at 31,135 (emphasis added). Addition-
ally, in their Joint Response to Comments to the
proposed rule, the agencies restated this position:

14 Sections 304 and 301 are interchangeable in this in-
stance. Section 304 directs EPA in how to determine the
degree of effluent reduction attainable under § 901. Citi-
zens Coal Council v. EPA, 447 F.3d 879, 883 (6th Cir.
2006) (en banc) (citing 33 U.S.C. § 1314).

28a

Under todays rule, we will continue,
consistent with our long-standing prac-
tice, to rely on the existence of effluent
limitation guidelines or standards or a
NPDES permit to inform the determi-
nation of how a particular discharge is
regulated under the Act. If a specific
discharge is regulated under Section
402, it would not also be regulated un-
der Section 404, and vice versa.

EPA/Corps, Joint Response to Comments 30. In the
same document, the agencies clarified that the new
rule would not expand the jurisdiction of the Corps
or permit previously prohibited discharges: “the sug-
gestion that this rulemaking now provides a legal
basis for previously illegal activities is not the case-
no discharges that were previously prohibited are
now authorized as a result of this rulemaking.” /d.
Thus, the agencies clearly intended to exclude dis-
charges subject to _ effluent limitations’ or
performance standards from the new definition of
“fill material.”

In fact, when the Corps and EPA first proposed the
revised, coordinated definition in 2000, they included
an explicit exemption from the definition of “fill ma-
terial” for discharges subject to effluent limitations
or standards of performance. See 65 Fed. Reg.
21,292, 21,299 (Apr. 20, 2000). The stated purpose of
the exemption was to maintain the agencies’ “current
practice,” which was “consistent with paragraph B.5
of the 1986 Solid Waste MOA.” Id. at 21,297. Al-
though the agencies removed the explicit exemption
from the fina! rule, they did so only because com-
menters expressed concern that the exception was
vague and would create uncertainty regarding

29a

whether the reference to effluent guidelines applied
prospectively or only to those guidelines already in
existence at the time. See 67 Fed. Reg. at 31,135. As
such, the agencies still intended to regulate dis-
charges subject to effluent limitations and standards
of performance under § 402.

The defendants attempt to undermine the clear in-
tent of the agencies by focusing on a single sentence
of the preamble in which the agencies stated “min-
ing-related material that has the effect of fill when
discharged will be regulated as ‘fill material.” Jd.
The district court also relied on that one sentence.
However, the defendants and the district court give
far more weight to that singular statement than it
deserves. It is difficult to understand why the agen-
cies would painstakingly explain in the preamble
that the new definition would not change their
treatment of discharges subject to effluent limita-
tions and standards of performance, only to
completely contradict themselves two paragraphs
later. The agencies themselves cleared up any poten-
tial confusion in their Joint Response to Comments:

Today’s final rule clarifies that any ma-
terial that has the effect of fill is
regulated under section 404 and further
that the placement of “overburden,
slurry, or tailings or similar mining-
related materials” is considered a dis-
charge of fill material. Nevertheless, if
EPA has previously determined that cer-
tain materials are subject to an [effluent
limitation guideline] under specific cir-
cumstances, then that determination
remains valid.

30a

EPA/Corps, Joint Response to Comments 12. Thus,
the current fill rule only applies to those tailings and
other mining-related materials that are not subject
to effluent limitations or standards of performance. 15
The agencies could not have been more clear in ar-
ticulating that this would be their preferred
approach.

3.

In fact, the agencies followed that approach with
Coeur Alaska for quite some time. The Corps consis-
tently informed Cocur Alaska that discharges from
its froth-flotation mill would not be regulated as fill
material under § 404. At least, the agencies took that
approach up until the time that the Corps granted
the permit that led to this dispute. Prior to the
promulgation of the current fill rule in 2002, the
Corps relied on the 1986 MOA in informing Coeur
Alaska that it lacked jurisdiction and expertise to
permit discharges of tailings from the Kensington

15 The Fourth Circuit's holding in Kentuckians is consis-
tent with our conclusion. In Kentuckians, the court
addressed the issue of whether the Corps had authority
under § 404 to permit valley fills from mountain-top coal
mining “when the valley fills serve no purpose other than
to dispose of excess overburden from the mining activity.”
317 F.3d at 439. EPA had not promulgated a performance
standard for mountain-top coal mining, so neither § 301
nor § 306 was implicated in that case. Jd. at 445. More-
over, in that case, the Corps admitted that, under the
2002 definition, “it was authorized to regulate discharges
of fill, even for waste, unless the fill amounted to effluent
that could be subjected to effluent limitations.” Id. (em-
phasis a

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385015_0064%3A0. Public record. Not legal advice.
