# Amicus Curiae Brief — Alaska v. Southeast Alaska Alaska Conservation Council (No. 07-990)

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Amicus Curiae Brief
- **Published:** January 1, 2009

## Text

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IN THE

Supreme Court of the United States

COEUR ALASKA, INC.,
Petitioner,
Vv.

SOUTHEAST ALASKA CONSERVATION COUNCIL, ET AL.,
Respondents.

STATE OF ALASKA,
Petitioner,
V.

SOUTHEAST ALASKA CONSERVATION COUNCIL, ET AL.,
Respondents.

On Writ of Certiorari to the
United States Court of Appeals
for the Ninth Circuit

BRIEF AMICI CURIAE OF THE
NATIONAL MINING ASSOCIATION, ET AL.
IN SUPPORT OF PETITIONERS

HAROLD P. QUINN, JR. CHRISTOPHER T. HANDMAN*

KAREN BENNETT DOMINIC F. PERELLA

NATIONAL MINING HOGAN & HARTSON L.L.P.
ASSOCIATION 555 Thirteenth St., N.W.

101 Constitution Ave., N.W. Washington, D.C. 20004
Washington, D.C. 20001 (202) 637-5719
(202) 463-2652

*Counsel of Record Counsel for Amici Curiae

WiLSON-EPES PRINTING CO., INC. — (202) 789-0096 — WASHINGTON, D. C. 20002

— a i

TABLE OF CONTENTS

Page
py Fhe iy 6 gy | nnn ill
STATEMENT OF INTEREST. ...............cc..ccccccccccccscees 1
SUMMARY OF ARGUMENT................cccccccccoccscsscccees 4
[ETE ESSE REESE A Na DEE Sn a 8

I. MINES HAVE LONG _ USED
TAILINGS PONDS TO DISPOSE
OF NATURAL MINING BYPROD-
UCTS, AND REGULATORS HAVE
LONG PERMITTED THIS ACTIV-
ITY UNDER SECTION 404.........00.00000 8

A. Tailings And Related Mining By-
products Are Nothing More Than
CL Ee 8

B. American Mines Long Have Dis-
posed Of Tailings In Securely Im-
pounded Tailings Ponds..........................00- 9

C. For At Least 30 Years, Federal
Agencies Have Applied Effluent
Limitations Only To Discharges
From Tailings Ponds, Not To De-
posits Into Tailings Ponds ....................... 10

Il. EVEN IF THE ACT WERE
AMBIGUOUS ON THE TREAT-
MENT OF TAILINGS SLURRY,

THE AGENCIES’ RESOLUTION OF
THE ISSUE WOULD STILL BE
EMINENTLY REASONABLE ...................... 14

il

TABLE OF CONTENTS—Continued

Page
Ill. THE NINTH CIRCUITS READING
OF THE ACT WOULD MAKE IT
NEARLY IMPOSSIBLE FOR MANY
MINES TO LEGALLY STORE
ee SEED ticinachnctinnernsncieiensennineieinns 19

CONCLUSION

Cases:

Bragg v. West Virginia Coal Ass'n, 248

fh 8: ana ee 9
Chevron U.S.A. Inc. v. NRDC, 467
'f 2 Seen 7, 15, 16

Kentuckians for the Commonwealth

ill
TABLE OF AUTHORITIES
v. Rivenburgh, 317 F.3d 425 (4th Cir.

SrEUITTtiE iieth osechsiinissiateiehbaastiniiaiheadiclaasblicigndiadatsinlibsadinaiiids 2, 3, 20
Mylan Labs., Inc. v. Thompson, 389 F.3d
| ETE eee ae 16

National Ass’n of Home Builders v. De-
fenders of Wildlife, 127 S. Ct. 2518

a iislassiahdaiidltihiidalsicieisniasinsenienaieneusiiabadihincnnes 16, 17
National Mining Ass'n v. Fowler, 324

ee Se ls EEE: ME inctisincsccsssdccvpsdionienessnes 2
Rapanos v. United States, 547 U.S. 715

ahahaha illeedigidsaainh ai ioabaeedgicbabilial 20, 21

Statutes:

ee ele MIEN iditiaritecniennconnaciins 6, 7, 10, 14, 15, 17
TTT 15
Ee earner Ean 15, 16
33 U.S.C. § 1316........cccccccececeee. 6, 7, 10, 14, 15, 17.
Se te HI ichignihicsdnnisincatinionsunibsinitaligets 15, 16
Eee ase rene aie passim
I passim

Sy NE. Or III i cchiitivinihsninabiadigninciinepsenteients 17, 18

iV

TABLE OF AUTHORITIES—Continued

Page
Be Ne: Or IED vitscidinvsincasnsianinniecniinnsndtindbcpnentiti 18
Rule:
Be ea is Se eentiscniccsesinnnnsanpisnimnalaninaneinseioniimiinaannte 1
Regulations:
I i sansscccipisencsasiinsiininnnnianmninitteite 11, 18
I IID isn dccsininacitadenndecuhinnineineinnatie 13, 17
I criteteciiniendviicsnnindinicntidcdanecncinidititiy 18
40 C.F.R. § 230.10(a).........cecccesccsecececcesesseecseseeeees 18
TO vcircnccnonicntennisnsinimennetanasunaien 18
ee iicitininnennitnpacedininnininiaanacisins a, =
ee iiiteeitntsncennsiscnnstiiiaicicnetsisecemieimenienn 21
I inclines ielcccriccinnischbenhsnssmnndeiiessebiamaetiae 21
ee i te IE drinbcdiccinnsvtiesntincnnindasssinnes seinen 21
scsesiensinnsmninsaniiounaseiiei 21
I cleitictinnitansiinnsnsniannsinitenieunapinauciiin 11
a ie ee riiiticencninsntctnniccsinenscssinns 11, 21
ek EE TET RINT 21
65 Fed. Reg. 21,292 (Apr. 20, 2000) ............. 12, 17
67 Fed. Reg. 31,129 (May 9, 2002) ..................... 13
Other Authorities:

Army Corps of Engineers, Alaska Dis-
SELLE NESTE enero aD 19, 20

Vv

TABLE OF AUTHORITIES—Continued

Army Corps of Engineers, Record of De-
cision and Permit Evaluation (Mar.

Bay, FIED ccccecvnesenssncnsinmmnesennnenininiiniiiansanss

Army Corps of Engineers & EPA, Re-
sponse to Comments Document for
Final Rule Amending the EPA’s and
Corps’ CWA § 404 Definitions of “Fill
Material” and “Discharge of Fill Ma-

ROPERS GN i SIE seesrtibnirnrntictiininctiinnreenees

Army Corps of Engineers & EPA, Memo-
randum Of Agreement Concerning the
Determination of Mitigation Under
the Clean Water Act Section 404(b)(1)
Guidelines (Feb. 7, 1990), reprinted
at 55 Fed. Reg. 9210, 9211 (Mar. 12,

ID cncccsssescsinvesntensenanannnniomuasitibeniniientess

Coeur Alaska, Inc. Kensington Project:
Slate Creek Lakes Tailings Storage
Facility Report on Water Quality

Monitoring (Feb. 20038)......................220+5

David W. Love & Allen Gellis, What De-
cision Makers Should Know About

Arroyos in New Mexico (2001)................

EPA, Copper Mining and Production

i a i

EPA, Development Document for Final
Effluent Limitations Guidelines and
New Source Performance Standards
for the Ore Mining and Dressing
Point Source Category, EPA No.

440/1-82/061 (Nov. 1982)................. eee

Page

vi

TABLE OF AUTHORITIES—Continued

EPA, EPA’s Detailed Comments on the

Kensington Gold Project (Aug. 2004) ......

EPA, Kensington Gold Mine Project:
Technical Assistance Report for the
U.S. Army Corps of Engineers Alaska

I, IE ssc ceitadicnsonnesscconsonediie

EPA, Record of Decision for Section 402

NPDES Permit (June 28, 2005) ..............

EPA, Technical Resource Document: Ex-
traction and Beneficiation of Ores
and Minerals, EPA 530-R-94-013

EEE ESE Se

Knight Piesold Consulting, Coeur
Alaska, Inc. Kensington Project:
Slate Creek Lakes Tailings Storage
Facility Report on Water Quality

Monitoring (Feb. 20038)................ccc0ece000e

National Mining Association, The Eco-
nomic Contributions of the Mining

Industry in 2005 (2007) .....................2++-++

Surface Mining (Bruce A. Kennedy, 2d

ee Sa

Page

IN THE

Supreme Court of the United States

Nos. 07-984 & 07-990

COEUR ALASKA, INC.,
Petitioner,
v.

SOUTHEAST ALASKA CONSERVATION COUNCIL, ET AL.,
Respondents.

STATE OF ALASKA,
Petitioner,
ws

SOUTHEAST ALASKA CONSERVATION COUNCIL, ET AL.,
Respondents.

On Writ of Certiorari to the
United States Court of Appeals
for the Ninth Circuit

BRIEF AMICI CURIAE OF THE
NATIONAL MINING ASSOCIATION, ET AL.
IN SUPPORT OF PETITIONERS

STATEMENT OF INTEREST!

The National Mining Association (“NMA”) is a na-
tional trade association that represents all aspects of

' Pursuant to Supreme Court Rule 37.6, amici note that no
counsel for a party authored this bricf in whole or in part, and
no counsel or party made a monetary contribution intended to
fund the preparation or submission of this brief. No person
other than amici curiae, their members, or their counsel made a

the niining industry, including producers of most of
America’s coal, metals, and industrial and agricul-
tural mimerals; manufacturers of mining and min-
eral-proceasing machinery and supplies; bulk trans-
porters; financial and engineering firms; and other
businesses related to mining. The mining industry
produces vital resources needed to fuel our economy
and manufacture virtually all commodities sold in
domestic and foreign markets. In 2005, the U.S.
mining industry produced $78.4 billion of finished
mineral, metal, and fuel products. These products
were in turn used to create an additional $2 trillion
worth of consumer and industrial goods. See Na-
tional Mining Association, The Economic Contribu-
tions of the Mining Industry in 2005, at 3 (2007).2

The NMA works with Congress and regulatory
officials to promote practices that foster the envi-
ronmentally sound development and use of mineral
resources. It also participates in litigation raising
issues of concern to the mining community, see, e.g.,
National Mining Ass’n v. Fowler, 324 F.3d 752 (D.C.
Cir. 2003), and has been involved in cases, like this
one, in which parties have attempted to challenge
the jurisdiction of the Army Corps of Engineers (the
“Corps”) to issue permits for “fill material” under the
Clean Water Act. See, e.g., Kentuckians for the

monetary contribution to its preparation or submission. The
parties have consented to the filing of this brief. All petitioners
and respondents except the United States have done so via
consent letters filed directly with the Clerk; a copy of the
United States’ consent letter is being filed with the Clerk
together with this brief.

2 Available at www.nma.org/pdf/pubs/mining_economic_
report.pdf.

Commonwealth v. Rivenburgh, 317 F.3d 425 (4th Cir.
2003).

Amici the Alabama Coal Association, Arizona Min-
ing Association, Coal Operators and Associates,
Colorado Mining Association, Illinois Coa! Associa-
tion, Idaho Mining Association, Indiana Coal Coun-
cil, Kentucky Coal Association, Nevada Mining
Association, New Mexico Mining Association, North-
west Mining Association, Ohio Coal Association,
Pennsylvania Coal Association, Utah Mining Asso-
ciation, and West Virginia Coal Association repre-
sent the interests of the coal and mining industries
at the state level. Their goals are to provide effective
industry leadership, enhance the industry’s ability to
compete, and educate citizens about the wise use of
America’s energy and mineral resources.

The amici have a substantial interest in this case.
The Ninth Circuit held below that mines must obtain
Section 402 effluent-discharge permits from the
Environmental Protection Agency (“EPA”), instead of
a Section 404 “fill” permit from the Corps,? anytime
the excess rock and dirt produced by their operations
happens to contain a substance covered by one of
EPA’s myriad effluent limits. The Ninth Circuit's
rule is wrong not just because of its counter-textual
interpretation of the Act; it is also wrong because it
ignores the practical realities of mining that both the
Corps and EPA carefully considered in fashioning
the “fill” rule. As petitioners have correctly ex-
plained, fill material produced by mines will often
contain some substance regulated by EPA’s effluent

3 Sections 402 and 404 are codified at 33 U.S.C. §§ 1342 and
1344, respectively.

limits, whether it be process water or bits of the
mined metal itself. By its very nature, this volumi-
nous fill material could never qualify for a permit
under Section 402, which is designed to regulate
discharges measured in parts per million, not in
millions of tons. As a result, some mines—those
whose topographical or environmental settings make
storage within waters the only feasible method of
disposal—may well be left without any legal way to
stere the huge quantities of excess rock their opera-
tions produce.

Braushimg aside the considered judgments of the
Corps and EPA—and ignoring 30 years of industry
practsce—the Ninth Circuit announced a rule that
threatens the economic vitality of both the mining
industry and the communities in this Nation that
rely on that industry. Were this Court to endorse the
Ninth Circuit’s approach, many mines would be
forced to cease operations because they could not, as
a practical matter in many areas of the country,
dispose of the tailings all mines inevitably generate.
Such closures would jeopardize the economics of the
States in which these mines operate and the liveli-
hoods of the many men and women they employ.
This Court should reverse the ruling below.

SUMMARY OF ARGUMENT

1. Respondents Southeast Alaska Conservation
Council, the Sierra Club, and Lynn Canal Conserva-
tion (collectively “SEACC”) would have this Court
conceive of the mine discharge at issue here as
“process wastewater” that just happens to have some
particles of solid material floating in it. SEACC
Brief in Opposition (““SEACC BIO”) 10; id. at 4 n.2.
That is wrong—and the inaccuracy is no small

matter. On the contrary, recognizing exactly what
will be discharged into Lower Slate Lake is critical in
understanding how the Clean Water Act’s mutually
exclusive permitting regimes under Sections 402 and
404 operate.

The Ninth Circuit recognized, and no party dis-
putes, that the mine “tailings” placed in Lower Slate
Lake would be largely solid—a slurry composed of 55
percent earth and crushed rock by weight. Pet. App.
6a. These solid materials also would be massive:
1,440 tons of tailings would be placed in the lake
each day, enough to raise the lake bottom by 50 feet
over the life of the project. Jd. The tailings therefore
fall squarely within the regulatory definition of “fill”
jointly promulgated by the Corps and EPA in 2002—
a regulation that, as petitioners correctly note, has
not been challenged in this litigation. For that
reason the mine is subject to the Section 404 permit-
ting scheme designed by Congress to govern the
placement of fill in jurisdictional waters.

SEACC hinges its contrary argument on the fact
that the fill material happens to contain a compo-
nent—process wastewater—that, standing alone, is
subject to an effluent limit. But solid rock tailings
that would otherwise qualify as “fill” do not lose that
status merely by dint of some additional water.
After all, whether deposited in the lake in dry or
slurry form, the solid-rock tailings will satisfy the
regulatory definition of “fill”: They will raise the
elevation of the lake bottom. As petitioners correctly
explain, the Act’s plain language creates an entirely
separate regulatory scheme for “fill” and leaves the
relevant agencies (EPA and the Corps) discretion to
define the term. Coeur Alaska Br. 32-39. Since the

discharge at issue is squarely within the definition of
“fill” that those agencies promulgated, and since that
definition is not challenged here, this Court should
reverse the Ninth Circuit’s decision below.

2. But even if SEACC were correct that the lan-
guage of Sections 301 and 306 requires all dis-
charges—even those of “fill’—to comply with effluent
limits, that would only create a conflict in the Act;
Sections 301 and 306 would be at war with Section
404. SEACC has offered no reason why the expert
agencies are not entitled to reasonably resolve that
purported conflict. Indeed, they plainly are. And
that is exactly what they did by jointly adopting the
“fill” rule.

Under that definitive regulation, the agencies
deemed tailings slurry—a mostly solid substance
that the agencies knew full well often contains
process wastewater—to be “fill” governed by the
Section 404 permitting regime. That choice makes
good sense. After all, tailings typically are deposited
in secure impoundments designed to hold massive
quantities of earth and rock. As a result they act like
fill material: They raise the bottom elevation of the
entire impounded water body and replace water with
dry land. They thus are most naturally regulated
under Section 404, regardless of the components the
earth and rock might contain. At the same time,
EPA and the Corps pay proper homage to Section
402 and its effluent limits: The agencies ensure that
tailings do not cause impurities in other jurisdic-
tional waters—those whose bottom elevations are not
being altered—by treating any water that escapes
from the impoundments as a source subject to Sec-
tion 402. This is an eminently reasonable resolution

of any tension between Sections 301 and 306 on the
one hand and Section 404 on the other. Thus even if
this Court deems the Act ambiguous on the question
whether “fill” containing an effluent may be regu-
lated under Section 404, it should uphold the agen-
cies’ reasonable resolution of that question under
Chevron step two. See Chevron U.S.A. Inc. v. NRDC,
A467 U.S. 837, 842-845 (1984).

3. SEACC’s proposed approach to the regulation of
fill containing effluent materials is not only wrong as
a legal matter but also entirely unworkable. Tailings
and other related mining byproducts, such as the
“overburden” produced by surface mines, naturally
contain. any number of matcrials—from iron to
manganese to “suspended solids’—that are the
subject of effluent limitations. And when mines
store these solid byproducts, they must do so in
massive quantities—amounts that far exceed the
strict parts-per-million limitations on effluent dis-
charges that regulations applicable under Section
402 establish. ‘lhe upshot of SEACC’s proposed rule,
in short, is to effectively (1) outlaw tailings ponds
altogether and (2) render next to impossible the
placement of run-of-the-mill mining byproducts, such
as earth and rock, in water bodies. Such a rule, if
endorsed by this Court, could shutter a number of
American mines. After all, in many areas of the
country—particularly where much of the land is
dotted with wetlands and streams or crisscrossed
with ephemeral drainages deemed to be “waters of
the United States’—the only feasible way to store
mining materials is to place them in waters that the
Corps and EPA have traditionally considered juris-
dictional under the Clean Water Act.

ARGUMENT

I. MINES ‘HAVE LONG USED TAILINGS
PONDS TO DISPOSE OF NATURAL
MINING BYPRODUCTS, AND REGU-
LATORS HAVE LONG PERMITTED THIS
ACTIVITY UNDER SECTION 404.

A. Tailings And Related Mining Byprod-
ucts Are Nothing More Than Earth And
Rock.

Mining operations dislodge large amounts of rock
and earth, only a small percentage of which contain
ore.‘ The initial process of separating ore-containing
rock from the rest is called “beneficiation.” See EPA,
Technical Resource Document: Extraction and
Beneficiation of Ores and Minerals, EPA 530-R-94-
013, at 1-16 (Aug. 1994).5 After beneficiation is
complete, the ore-containing rock is shipped off for
further processing; the material left behind is known
as “tailings.” Tailings are, as the Ninth Circuit
acknowledged, nothing more than ground-up rock
and earth. Pet. App. 4a. And they frequently have
a muddy consistency because beneficiation often
involves combining the mined rock and earth with
water and chemicals in order to separate out ore-
bearing materials. See EPA, Development Document

4 With copper mines, for example, "[t]he amount of
marketable copper produced is small compared to the original
material mined. *** Several hundred metric tons of ore must
be handled for each metric ton of copper metal produced, thus
generating large waste quantities.” EPA, Copper Mining and
Production Wastes, available at http://www.epa.gov/
rpdweb00/tenorm/copper.html.

5 Available at www.epa.gov/osw/nonhaz/industrial/special/
mining/techdocs/gold/goldch1 .pdf.

for Final Effluent Limitations Guidelines and [ew
Source Performance Standards for the Ore Mining
and Dressing Point Source Category 18-26, EPA No.
440/1-82/061 (Nov. 1982) (“1982 Development Docu-
ment”).6 Some of that water remains mixed in the
tailings after the process is complete, leaving the
tailings in semi-solid or “slurry” form. See SER 295-
296 (Knight Piesold Consulting, Coeur Alaska, Inc.
Kensington Project: Slate Creek Lakes Tailings
Storage Facility Report on Water Quality Monitoring
8-9 (Feb. 2003)).?

B. American Mines Long Have Disposed Of
Tailings in Securely Impounded Tailings
Ponds.

The mining process thus leaves mine operators
with massive quantities of muddy, ground-up rock to
dispose of. And while some of these tailings can be
reinserted into the mine, many tons cannot. That is
because “rock taken from its natural state and
broken up naturally ‘swells,’ perhaps by as much as
15 to 25%.” Bragg v. West Virginia Coal Ass’n, 248
F.3d 275, 286 (4th Cir. 2001). Mines therefore rely
on storage facilities to hold the excess tailings.

The conventional storage method for at least the
last 30 years has been to build a “tailings pond.” A
tailings pond is made by (1) creating an embankment
or a containment dam by encircling or crossing an
existing body of water, and then (2) pumping the
tailings slurry into the impounded area for storage.

6 Available at http://nepis.epa.gov/EPA/htm)/Pubs/pubtitle
OAR. htm.

7 “SER” refers to the Supplemental Excerpts of Record filed
in the Court of Appeals.

10

The tailings-pond method has several advantages.
First, in some cases it avoids the creation of huge,
unsightly mountains of tailings—mounds that can
grow as high as 300 feet. Second (and as discussed
further infra at 19-22), it may be the only feasible
disposal technique in large portions of the country
where the landscape is heavily dotted with wetlands,
streams, or ephemeral drainages. And third, be-
cause the impoundment is securely walled off, it
ensures that the solids and minerals in the tailings
will not flow into a nearby water supply.

C. For At Least 30 Years, Federal Agencies
Have Applied Effluent Limitations Only
To Discharges From Tailings Ponds, Not
To Deposits Into Tailings Ponds.

For many years, the EPA and the Corps have con-
sistently taken a bifurcated approach to tailings
ponds. On the one hand, they have authorized
tailings deposits into the tailings ponds as “fill”
under Section 404. On the other hand, they have
applied Section 402 and its effluent limits’ to any
subsequent release of liquids from those tailings
ponds that might reach non-impounded waters.

This regulatory dividing line makes good sense.
Tailings are enormous in volume and are largely
made up of rock. They cannot be assimilated into
bodies of water like the microscopic effluents regu-
lated under Section 402 can. Tailings instead dis-
place water and create either dry land or a water
body of a different size and shape. They therefore
fall squarely into the regulatory definition of “fill
material” that triggers Section 404 permitting:

8 See 33 U.S.C. §§ 1311, 1316.

11

material that “has the effect of * * * [rjeplacing any
portion of a water of the United States with dry
land” or “[cJhanging the bottom elevation of any
portion of a water of the United States.” 33 C.F.R.
§ 323.2(e). And because they are largely solid, the
tailings cannot possibly meet Section 402’s associ-
ated effluent limitations, which typically cap mineral
and solids contents in water at some small number of
parts per million. See, eg., 40 C.F.R. § 440.104(a).
These limitations, in short, were never meant to
apply to tailings.

1. The EPA and the Corps have recognized for
more than 30 years that mine operators, so long as
they comply with Section 404, may cordon off small
bodies of water and use them to store wet tailings as
fill material in isolation from other water bodies.
Throughout that time, the EPA and the Corps have
likewise recognized that Section 402 and its associ-
ated effluent limitations do not apply to the dis-
charge of tailings into those isolated tailings ponds.
Rather, Section 402 comes into play only if there is a
discharge of pollutants from the tailings-storage
facility into downstream waters.

The agencies have consistently hewed to this regu-
latory division of labor. In 1985, the Corps issued a
Section 404 permit that authorized the Red Dog
mine in Alaska to place lead and zinc tailings into an
impoundment made from wetlands and a creek. See
SER 836, 978-979. Even though the tailings were
discharged as slurry, and even though there is an
effluent limitation for discharges from lead and zinc
mines, see 40 C.F.R. § 440.104, only a Section 404
permit was required for deposits into the tailings
pond. Discharges from the tailings pond to adjacent

12

non-impounded waters, however, were subject to
Section 402. See SER 836. Likewise, in 1994 the
Corps issued a Section 404 permit for the Fort Knox
gold mine’s tailings impoundment, established in a
creek and adjacent wetlands. Jd. at 837, 983-991.
This tailings pond also did not require a Section 402
permit. Id. at 837.9

2. This same regulatory approach to tailings ponds
continued through the more recent EPA and Corps
rulemaking. In the 2000 document proposing the
current definition of “fill material,” for instance, the
agencies discussed a common technique by which
excess coal-mining residue (“overburden”) is placed
in valley streams, with dammed “sedimentation
ponds” built downstream to catch and isolate any
runoff from the fill. See 65 Fed. Reg. 21,292, 21,295
(Apr. 20, 2000). The agencies wrote that the fill and
the sedimentation ponds “should be regulated under
CWA section 404” while any effluent subsequently
“discharged into waters of the U.S. from sedimenta-
tion ponds” would require Section 402 permits. Jd.
at 21,295-96 (emphasis added). The final regulations
confirm this approach in clear terms. The promul-
gating document stated that “EPA has never sought
to regulate fill material under effluent guidelines,”

® SEACC has suggested that from 1982 “until 2005, the
Corps never issued a single permit to discharge process waste-
water from a froth-flotation mill—or from any other source
subject to EPA effluent limitations—into navigable waters.”
SEACC BIO 1. Not so. As Coeur Alaska’s opening brief
explains, the Corps has time and again authorized Section 404
permits for mine tailings even when an EPA effluent limitation
existed that would have applied had the discharged material
not otherwise qualified as “fill material.” Coeur Alaska Br. 40-
43.

13

67 Fed. Reg. 31,129, 31,135 (May 9, 2002) (emphasis
added), and the regulations themselves define “dis-
charge of fill material” to include “placement of
overburden, slurry, or tailings or similar mining-
related materials.” 33 C.F.R. § 323.2(f); 40 C.F.R.
§ 232.2 (emphases added).

Finally, the Corps and EPA’s longtime approach
was never altered during the decade-long review of
the Kensington project. In 1994, the EPA wrote that
an earlier Coeur plan, which proposed building a
tailings impoundment in a creck, implicated Section
402 in only one respect: “whether or not * * * a
discharge from the impoundment would meet appli-
cable effluent limits.” See SER 446 (EPA, Kensing-
ton Gold Mine Project: Technical Assistance Report
for the U.S. Army Corps of Engineers Alaska District
v (Oct. 1994)) (emphasis added). In August 2004, the
EPA likewise wrote that certain Section 402 re-
quirements applied not to the tailings pond itself, but
only to “discharge from” the pond “into East Fork
Slate Creek.” See SER 427 (EPA, EPA’s Detailed
Comments on the Kensington Gold Project (Aug.
2004)) (emphasis added). In June 2005, the EPA
wrote that a Section 402 permit was required only
for “discharge from the tailings storage facility.” See
SER 536 (EPA, Record of Decision for Section 402
NPDES Permit 3 (June 28, 2005)) (emphasis added).
And in March 2006, the Corps noted that the dis-
charge of water to the downstream Slate Creek—but
not the discharge of wet tailings into the tailings
pond—was subject to a Section 402 permit. See SER
556 (Army Corps of Engineers, Record of Decision
and Permit Evaluation 2 (Mar. 29, 2006)). Thus,
until the Ninth Circuit’s decision in this case, both
regulators and the industry enjoyed a clear under-

14

standing of how the Clean Water Act applies to
tailings ponds: Section 404 applies to the discharge
of tailings into segregated impoundments, while
Section 402 applies to the discharge of pollutants or
impurities into downstream waters.

II. EVEN IF THE ACT WERE AMBIGUOUS ON
THE TREATMENT OF TAILINGS SLURRY,
THE AGENCIES’ RESOLUTION OF THE
ISSUE WOULD STILL BE EMINENTLY
REASONABLE.

Amici agree with petitioners and with the federal
respondents that the Clean Water Act’s plain lan-
guage is dispositive: The Act creates a bifurcated
permitting scheme and mandates that any material
falling within the definition of “fill” be regulated by
the Corps pursuant to a Section 404 permit. See
Coeur Alaska Br. 22-29; accord Brief for the Federal
Respondents Supporting Petitioners 13-14 (“SG
Brief’) (“The text, purpose, and structure of both the
Act and the 2002 fill rule * * * make clear that
discharges of ‘fill material’ are subject only to the
Section 404 permitting process.”). However, even if
this Court were to reject that interpretation, and
even if it were to further agree with SEACC that
Sections 301 and 306 mandate that all discharges—
even those constituting “fill’—meet effluent limits,
that would not support the result reached by the
Ninth Circuit below. Instead, it would simply create
a statutory ambiguity; the agencies entrusted to
fulfill Congress’s commands would be left to reconcile
conflicting statutory mandates. In that circumstance
the Court should defer to the expert agencies’ resolu-
tion of the issue—a resolution that is clear, that is of
long standing, and that reasonably balances the

15

concerns that led Congress to create two separate
permitting regimes in the first place.

1. SEACC argues that Sections 301(e) and 306(e)
of the Act apply even to “fill,” thus banning the
placement of much fill material in jurisdictional
waters unless that fill material can meet the Act’s
effluent limits—limits it could never possibly meet.
SEACC BIO 16-24. Petitioners and the Solicitor
General have cogently explained why this argument
is fallacious, see SG Brief 23-24 (explaining why the
word “and” in Section 30l(a), a key to SEACC’s
argument, cannot bear the weight SEACC would
assign to it); id. at 25 (debunking SEACC’s reliance
on Section 306(e)), and amici agree with their analy-
sis. But even if SEACC’s argument were correct, it
would not follow that the Ninth Circuit’s decision
below—resolving the case in SEACC’s favor at Chev-
ron step one—was the right one. Instead, one would
be left with an irreconcilable statutory conflict be-
tween Section 404, which authorizes the Corps to
issue permits for placement of any and all “fill,” and
Sections 301 and 306, which (as SEACC reads them)
would forbid the Corps from issuing Section 404
permits for placement of many kinds of fill. '°

This conflict is precisely the sort of statutory ambi-
guity that may be resolved by expert agencies—and
whose resolution thereby is entitled to judicial defer-
ence. As this Court explained just last year, when
one statutory command would “implicitly abrogate or
repeal” another and “[a]n agency cannot simultane-
ously obey the differing mandates” of the two, the

10 Even SEACC agrees that the Act does not require mines to
seek both Section 402 and Section 404 permits for placement of
fill. SEACC BIO 19.

16

court is “left with a fundamental ambiguity that is
not resolved by the statutory text.” National Ass'n of
Home Builders v. Defenders of Wildlife, 127 S. Ct.
2518, 2534 (2007). The Court therefore looked to the
relevant agencys authoritative interpretation;
finding that interpretation “reasonable in light of the
statute's text and the overall statutory scheme,” the
Court held that it was “entitled to deference under
Chevron.” Id. Indeed, this principle—that an
agency's resolution of warring statutory mandates is
analyzed under Chevron—is not open to serious
dispute. The courts have long approached statutory-
conflict questions in just this way. See, e.g., Mylan
Labs., Inc. v. Thompson, 389 F.3d 1272, 1281 (D.C.
Cir. 2004) (noting that “the FDA was called upon to
construe the statutes so as to resolve * * * two con-
flicts” and holding that “the FDA did so in a way that
reflects a permissible construction of the applicable
FDCA provisions and therefore satisfies Chevron”).

2. This well-established principle of agency law
should resolve the case in petitioners’ favor even if
the Court rejects petitioners’ plain-language argu-
ment and even if the Court further agrees with
SEACC that Sections 301(e) and 306(e) have some
bearing on the matter at hand. After all, here, as in
National Association of Home Builders, the relevant
agencies “cannot simultaneously obey the differing
mandates” of Section 404 on the one hand and
SEACC’s vision of Sections 301 and 306 on the other.
127 S. Ct. at 2534. Here, as in National Association
of Home Builders, the expert agencies have offered
an authoritative resolution of the purported statu-
tory conflict, deciding after notice and comment that
the term “fill” includes “slurry” and “tailings,” both of
which the agencies well knew often include effluents

17

otherwise governed by Section 402. 33 C.F.R.
§ 323.2(f); 40 C.F.R. § 232.2. And here, as in Na-
tional Association of Home Builders, the agencies’
interpretation is “reasonable in light ui the statute’s
text and the overall statutory scheme.” 127 S. Ct. at
2534. That is so because, as described supra at 8-10,
tailings and tailing slurry are largely solid dis-
charges that replace waters with massive quantities
of dry land and that are placed at “specified disposal
sites.” 33 U.S.C. § 1344(a). They therefore squarely
implicate the concern that animated Congress’s
decision to create a separate Section 404 permitting
scheme in the first place—namely, a concern for “the
loss of a portion of the water body itself.” 65 Fed.
Reg. 21,293 (Apr. 20, 2000). At the same time, the
agencies have made sure to hew to Congress’s goal of
cleaner jurisdictional waters by applying Section 402
to discharges from fill placements and therefore
ensuring that these placements do not affect down-
stream water bodies. See supra at 10-14. This is a
wholly sensible approach to any tensions between

Sections 301, 306, and 404.

3. SEACC’s apparent concern with this resolution
is that mines will bypass the EPA’s effluent-
discharge limits by mixing pollutants with a trace
amount of tailings, calling it “fill,” and indiscrimi-
nately releasing the combination into America’s
waterways. But this concern is chimerical; the
agencies’ approach to tailings is much more sensible
than that. For at least 30 years, the EPA and the
Corps have required that tailings be deposited in
“specified disposal sites.” 33 U.S.C. § 1344(a). In the
tailings context, these typically have been secure,
impounded tailings ponds that prevent the liquid
components of the deposit from commingling with

18

surrounding waters. The tailings ponds accept huge
quantities of crushed rock and dirt that indisputably
change the bottom elevation and thus fall comforta-
bly within the agencies’ definition of “fill material.”
See 33 C.F.R. § 323.2(e). The Ninth Circuit’s quest
for a limiting principle was therefore unnecessary.
Tailings ponds are well-regulated phenomena that
bear no resemblance to the environmentally apoca-
lyptic vision of companies dumping polluted water
into open rivers and lakes and calling it “fill” based
on some microscopic elevation change. Fill is never
disposed of in the manner SEACC envisions.

Moreover, it is important to recognize that Section
404 permits are not up for grabs for all comers. To
the contrary, Congress mandated that the Corps
must follow guidelines jointly promulgated by the
EPA and the Corps. See 33 U.S.C. § 1344(b). Known
as the 404(b)(1) Guidelines, these standards require
the Corps to determine (i) whether impacts of a
proposed discharge on waters of the United States
have been avoided to the maximum extent practica-
ble; (i) whether any remaining impacts have been
minimized; and (iii) whether the discharger should
compensate for unavoidable losses through restora-
tion, creation, enhancement, or preservation of
aquatic resources. See 40 C.F.R. §§ 230.5; 230.10(a),
(d); 230.70-77. As the EPA and the Corps have
recognized, the 404(b)(1) Guidelines ensure that
mining operations “avoid adverse impacts and offset
unavoidable adverse impacts.” Army Corps of Engi-
neers & EPA, Memorandum Of Agreement Concern-
ing the Determination of Mitigation Under the Clean
Water Act Section 404(b)(1) Guidelines (Feb. 7, 1990),
reprinted at 55 Fed. Reg. 9210, 9211 (Mar. 12, 1990).
SEACC’s implication that the agencies’ resolution of

19

this issue is unreasonable because it will allow mines
to make end-runs around the Act is therefore unwar-
ranted. If the Court deems the Act ambiguous, it
should defer to the agencies’ eminently reasonable
regulation laying out the dividing line between their
respective jurisdictions.

Ill THE NINTH CIRCUIT'S READING OF
THE ACT WOULD MAKE IT NEARLY
IMPOSSIBLE FOR MANY MINES TO
LEGALLY STORE THEIR TAILINGS.

Finally, it should be emphasized that this Court’s
decision is of great practical import to America’s
mines and the communities they serve (and employ).
That is because the Ninth Circuit’s ruling effectively
adopts by judicial fiat a categorical ban on an estab-
lished industry practice that—if outlawed—would
make it virtually impossible, or at least extraordinar-
ily burdensome, for some mines to legally dispose of
tailings and other excess rock and dirt from their
mining operations.

1. In large swaths of the nation where a significant
proportion of American mines are located—Alaska,
the mountain West, the Southwest, and portions of
the Midwest and Appalachia—the terrain surround-
ing ore deposits is covered with wetlands, streams, or
dry washes and arroyos. In Alaska, for example, 170
million acres, or 43 percent of the State, consist of
wetlands. See Corps, Alaska District Website.!!
Similarly, in the Appalachian Mountains—stretching
from Pennsylvania to Alabama and running through
Kentucky, Virginia, and West Virginia—the bottom

'! Available at http://www.poa.usace.army.mil/hm/default.
htm.

20

of mountain hollows are the only stable locations
that mines have to place excess rock. As a basic
matter of topology, these hollows naturally form
streams, which in turn are regulated as waters of the
United States under the Clean Water Act. See
generally Kentuckians, 317 F.3d 425. And in the
Southwest, the terrain is crisscrossed with a network
of small ephemeral washes and arroyos that may be
deemed to be waters of the United States. Although
the washes are dry during most of the year, they
carry runoff after storms. See David W. Love &
Allen Gellis, What Decision Makers Should Know
About Arroyos in New Mexico (2001).'2 Given the
mammoth scope of mining operations in this part of
the country, it is virtually impossible to construct a
tailings impoundment—even one that is essentially a
“dry stack”—without filling one or more of these
ephemeral streams or washes.

Needless to say, mining operations throughout the
country—from Alaska to Appalachia and many areas
in between—will often have “no practicable alterna-
tive” but to store tailings in impoundments created
by walling off an existing pond, stream, or other
wetland. JA 93a (Army Corps & EPA, Response to
Comments Document for Final Rule Amending the
EPA’s and Corps’ CWA § 404 Definitions of “Fill
Material” and “Discharge of Fill Material” (May 3,
2002)). Given the broad reach of the Act, which
extends not just to traditional navigable waters but
also perhaps to all wetlands and streams with such a
“significant nexus” to navigable waters as to affect
their “integrity,” Rapanos v. United States, 547 U.S.

12 Available at http://geoinfo.nmt.edu/geoscience/hazards/
arroyos. html.

21

715, 781 (2006) (Kennedy, J., concurring in the
judgment), most such wetlands and streams are
subject to federal permitting requirements.

2. The panel’s statutory construction renders tail-
ings ponds unpermittable in a wide range of situa-
tions. That is because the EPA has promulgated
effluent limitations for a vast number of substances
commonly present in the excess rock and dirt from
mines located throughout the country. For example,
process water from froth-flotation mills is governed
by effluent limitations not just for gold mining, but
also for the mining of copper, lead, zinc, silver, and
molybdenum. 40 C.F.R. § 440.104(b)(1). Likewise,
coal processing operations are governed by effluent
limitations capping the iron, manganese, and “total
suspended solids” that may be present in the dis-
charge. See id. § 434.22. Phosphate mines are
governed by an effluent limitation that caps the total
suspended solids that may be present in process
water from those operations. See id. § 436.182. And
the list goes on. See generally id. pts. 434, 440.
Under the panel’s reading of the Act, the tailings
produced by all such mines would be subject to
effluent limitations, even though they cannot possi-
bly meet those limitations. After all, a half-solid
tailings deposit will never meet a “total suspended
solids” limit designed for microscopic particles meas-
ured in parts per million.'*

The bottom line is that, under the Ninth Circuit's
approach, many mines could no longer use the long-
accepted tailings-pond technology. And because it is
topographically impossible or exorbitantly cost-

19 See 40 C.F.R. § 440.104(a).

22

prohibitive to avoid a “water[ ] of the United States”
in areas like Alaska, the mountain West, the South-
west, and portions of the Midwest and Appalachia, a
decision by this Court affirming the Ninth Circuit
might well make it impossible, or nearly so, for these
mines to legally dispose of their tailings. That result
would not only undermine 30 years of industry
practice; it would jeopardize a vital industry and the
economies of the States in which these mines play
such an important role. “Since prehistoric times,
mining has been integral and essential to man’s
existence.” Surface Mining 1 (Bruce A. Kennedy ed.,
2d ed. 1990). That is as true now as ever. In these
challenging economic times, and in an era when
mining for minerals critical to our economy and
national security is of paramount importance to so
many Americans, the Court should not endorse a
rule with such ruinous potential.

CONCLUSION

For the foregoing reasons, and those in petitioners’
briefs, the Court should reverse the decision below.

Respectfully submitted,

HAROLD P. QUINN, JR. CHRISTOPHER T’. HANDMAN*

KAREN BENNETT DOMINIC F’. PERELLA

NATIONAL MINING HOGAN & HARTSON L.L.P.
ASSOCIATION 555 Thirteenth St., N.W.

101 Constitution Ave., N.W. Washington, D.C. 20004
Washington, D.C. 20001 (202) 637-5719
(202) 463-2652

*Counsel of Record

Counsel for Amici Curiae
National Mining Association, et al.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385015_0065%3A28. Public record. Not legal advice.
