Justia Montana Supreme Court Opinion Summaries

Bostwick Properties (Bostwick) sought a water use permit from the Montana Department of Natural Resources and Conservation (DNRC), which was denied. The district court (1) agreed with DNRC that Bostwick failed to prove no net depletion of surface water and lack of adverse effect, and therefore Bostwick was required to mitigate its water usage in order to receive a water use permit; (2) determined that Bostwick had submitted an adequate mitigation proposal, and therefore, ruled that DNRC improperly had denied Bostwick's permit application; and (3) determined that DNRC exhibited bias toward BNRC, but any bias did not prejudice Bostwick. The Supreme Court affirmed, holding (1) DNRC and the district court properly required Bostwick to mitigate its water usage; (2) the district court properly determined Bostwick's mitigation proposal was adequate as a matter of law; and (3) DNRC bias did not substantially prejudice Bostwick. View "Bostwick Props., Inc. v. Dep't of Natural Res. & Conservation" on Justia Law

Plaintiffs commenced a lawsuit against several power companies alleging that the Colstrip power facility, which bordered land owned by Plaintiffs, contaminated groundwater under their property. The parties proceeded with mediation after three years of litigation. The mediation ended with the transmission of a memorandum of understanding (MOU) to the parties' counsel. After some of Plaintiffs expressed reservations about accepting the settlement, the power companies filed a motion to enforce the settlement agreement, arguing that the MOU was a written and signed settlement agreement. After a hearing, the district court granted the motion to enforce the settlement agreement, finding that the MOU was a binding, enforceable settlement agreement. The Supreme Court affirmed, holding that the district court (1) did not err by finding the MOU was an enforceable settlement agreement; (2) did not err by allowing parol evidence to change an option to purchase into a right of first refusal; and (3) erred in admitting evidence protected by the mediation confidentiality statute, but the error was harmless. View "Kluver v. PPL Mont., LLC" on Justia Law

Plaintiffs, in anticipation of Revett Silver Company and RC Resources, Inc. (collectively, "Revett") seeking approval for mine-related construction under a general permit, filed this action against the Department of Environmental Quality (DEQ) seeking a declaratory judgment that use of general permits to approve stormwater runoff from the Rock Creek Mine would violate Mont. Admin. R. 17.30.1341(4)(e) because Rock Creek is an area of "unique ecological significance" based on considerations of impacts on fishery resource and local conditions at proposed discharge. The district court granted summary judgment to Plaintiffs and declared the general permit void. The Supreme Court affirmed, holding that DEQ's approval of the use of the general permit to allow storm water discharges was arbitrary and capricious because DEQ failed to consider the relevant factors set forth in the law prior to its decision, and as a result, committed a clear error of judgment. View "Clark Fork Coalition v. Dep't of Envtl. Quality" on Justia Law

At issue on review in this case was whether the State Board of Land Commissioners properly issued leases to Ark Land Co., a subsidiary of Arch Coal, Inc., without first conducting environmental review under the Montana Environmental Policy Act (MEPA). The State Land Board did not conduct environmental review prior to entering the leases, relying on Mont. Code Ann. 77-1-121(2). The district court granted summary judgment to the State Land Board, Ark Land Co., and Arch Coal (Defendants), determining that the State retained sufficient ability to require adequate environmental protections sufficient to meet its constitutional and trust responsibilities. The Supreme Court affirmed, holding (1) because the leases did not allow for any degradation of the environment and specifically required full environmental review and full compliance with applicable State environmental laws, the act of issuing the leases did not impact or implicate the right to a clean and healthful environment in Mont. Const. art II, 3; and (2) therefore, section 77-1-121(2) was not subject to strict or "middle-tier" scrutiny. View "N. Plains Res. Council, Inc. v. Bd. of Land Comm'rs" on Justia Law

This was a dispute over rights to use water from the Teton River in Montana. Giese, Kelly and Reichelt use water from the downstream portion of the Teton near Fort Benton, Montana. They claimed generally that they are damaged by diversion practices on the upstream portion of the Teton near Choteau, Montana, and that their "calls" on upstream appropriators to release water for their downstream use have been ignored. They first filed a petition for a writ of prohibition in the District Court in February, 2011, and ultimately filed second and third amended petitions seeking to halt certain water diversions from the Teton. The issue underlying this case arose in part from the decision in "Perry v. Beattie." "Perry" decreed the priority date and flow rate of about 40 water right claims in the upper Teton River west of Choteau. The District Court appointed a Water Commissioner pursuant to 85-5-101, MCA, to administer the water rights decreed in "Perry." The majority of water users on the Teton (and their successors in interest, including downstream users Giese, Kelly and Reichelt) were not parties to the Perry case. Giese, Kelly and Reichelt claimed water rights from the Teton with priority dates that are senior to or contemporary with the upstream rights decreed in Perry. Water right claimants on the Teton were participating in the Water Court’s on-going adjudication of water rights under Title 85, Chapter 2 of the Montana Code. While that process was nearing its final stages, it was not yet complete and the Water Court did not issue a final decree. Giese, Kelly and Reichelt challenged the Water Commissioner’s practice of diverting the flow of the Teton down the Bateman Ditch. They contended that their water rights pre-date the rights of many upstream Perry decree rights and pre-date the Water Commissioner’s diversion of the Teton through the Bateman Ditch. They contended that since the Bateman Ditch was not used to divert the entire river at the time of the Perry decree, the Water Commissioner lacked the authority to make the diversion. The Supreme Court restated the issue on appeal as whether the District Court erred in dismissing Appellants’ request for certification to the Chief Water Judge pursuant to 85-2-406(2)(b), MCA. Upon review, the Court reversed and remanded the case to the District Court with instructions to certify all appropriate issues to the Chief Water Judge as provided in 85-2-406(2)(b), MCA, and to grant such injunctive or other relief that, in the District Court’s discretion, it determined to be necessary and appropriate. View "Giese v. Blixrud" on Justia Law

Plaintiff-Appellant Charles Fellows appealed a district court's order that dismissed his complaint. Plaintiff owned a water right in Spring Creek. He claimed that the flow of the creek was for many years recharged by water seeping from the natural channel of the Teton River. He claimed that the practice of diverting water from the natural channel of the Teton implemented by the district court's water commissioner on the Teton adversely affected the water available to satisfy his water right in Spring Creek. The district court dismissed Plaintiff's complaint on the ground that it failed to state a claim upon which relief could be granted. The court held that Plaintiff lacked standing to bring an action as a dissatisfied water user unless he could prove a hydrological connection between Spring Creek and the Teton River. Upon review, the Supreme Court found that Plaintiff's factual allegations and his request for a declaratory ruling were sufficient to invoke the district court's power to issue a ruling on the issue of connectivity. Accordingly, the Supreme Court reversed the district court and remanded the case for further proceedings. View "Fellows v. Water Commissioner et al" on Justia Law

At issue in this case was the Montana Board of Oil & Gas Conservation's (MBOGC) issuance of twenty-three gas well permits to Fidelity Exploration and Production Company in the area known as the Cedar Creek Anticline (CCA). The Montana Wildlife Federation and National Wildlife Federation (collectively, Federations) challenged the issuance of the permits. The district court granted summary judgment in favor of Appellees, MBOGC, Fidelity, and Montana Petroleum Association, holding that the Federations failed to rebut the presumption of validity in the MBOGC's decision. The Supreme Court affirmed, holding that the district court did not err in (1) conducting its review under Mont. Code Ann. 82-11-144 and in considering evidence outside the administrative record; (2) determining that the environmental assessments prepared by MBOGC for gas development in the CCA were adequate under the Montana Environmental Policy Act; and (3) ruling that MBOGC did not have to prepare a programmatic environmental impact statement for oil and gas development in the CCA. View "Mont. Wildlife Fed'n v. Bd. of Oil & Gas Conservation" on Justia Law

The Town filed an application with the Montana Department of Natural Resources and Conservation (DNRC) seeking approval for proposed changes to its municipal well water rights. The DNRC notified the Town that its application was deficient because it did not contain information on the Town's historical use of its rights. The Town did not provide the information, contending that the information was irrelevant to its application. The DNRC then determined that the Town's application was not correct and complete as required by Mont. Code Ann. 85-2-302 and informed the Town that its application was terminated. The district court upheld the DNRC's decision. The Supreme Court affirmed, holding that, based on established Montana law and the applicable regulations, the DNRC was within its lawful authority to request that the Town provide information on its historical use of water as part of its application for approval of its proposed changes. View "Town of Manhattan v. Dep't of Natural Res. & Conservation" on Justia Law

Burglington Northern & Sante Fe Railway Company (BNSF) contaminated the environment surrounding the Livingston Rail Yard (Yard). Plaintiffs, individuals who owned property adjacent to the Yard, sued BNSF in federal court for damages to their property based on claims of, inter alia, nuisance, negligence, and trespass. The magistrate judge granted summary judgment in favor of BNSF, finding that the applicable statute of limitations barred Plaintiffs' claims. The federal district court certified to the Supreme Court the question of whether the continuing tort doctrine should apply to the claims presented by Plaintiffs. The Supreme Court held (1) the continuing tort doctrine in Montana tolls the statute of limitations for property damage claims of nuisance and/or trespass resulting from contamination that has stabilized, continues to migrate, and is not readily or easily abatable; and (2) the limitations period begins to run when abatement is not reasonable or complete abatement cannot be achieved, and a permanent injury exists. View "Burley v. Burlington N. & Santa Fe Ry. Co." on Justia Law

NorthWestern Energy proposed constructing an electric transmission line from Montana to Idaho and submitted its application for a certificate from the Montana Department of Environmental Quality (DEQ). While preparing a draft of the Environmental Impact Statement (EIS), Jefferson County informed DEQ that it expected DEQ to consult with the County in determining the route. Jefferson County subsequently filed a petition for writ of mandamus and injunction relief against DEQ, (1) seeking an order requiring DEQ to comply with the Montana Environmental Policy Act and other environmental legislation, and (2) requesting DEQ be enjoined from releasing a draft EIS. NorthWestern subsequently intervened. The district court ruled in favor of Jefferson County after determining that DEQ had not satisfied its duty to consult with Jefferson County under Mont. Code Ann. 75-1-201(1)(c) and enjoined DEP from releasing the Draft EIS until it had done so. The Supreme Court reversed, holding (1) at this stage in the process, DEQ had not violated a clear legal duty to consult with the County prior to issuing its draft EIS; and (2) because the County had adequate legal remedies once DEQ rendered a final agency action, the County was not entitled to mandamus or injunctive relief.