2011 WI 54
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Supreme Court of Wisconsin |
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Case No.: |
2008AP3170 |
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Complete Title: |
Lake Beulah Management District, Petitioner-Appellant-Cross-Respondent, Co-Petitioner-Co-Appellant-Cross-Respondent, v. State of Respondent-Respondent, Intervening-Respondent-Respondent-Cross-Appellant-Petitioner. |
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REVIEW OF A DECISION OF THE COURT OF APPEALS |
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2010 WI App 85 Reported at: 327 (Ct. App. 2010 – Published) |
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Opinion Filed: |
July 6, 2011 |
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Submitted on Briefs: |
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Oral Argument: |
April 13, 2011 |
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Source of Appeal: |
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Court: |
CIRCUIT COURT |
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County: |
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Judge: |
ROBERT J. KENNEDY |
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Justices: |
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Concurred: |
ZIEGLER, J. concurs (Opinion filed). |
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Dissented: |
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Not Participating: |
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Attorneys: |
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For the intervening-respondent-respondent-cross-appellant-petitioner
For the petitioner-appellant-cross-respondent
Lake Beulah Management District there was a brief by Dean P. Laing, O’Neil, Cannon, Hollman, DeJohg & Laing S.C.,
For the co-petitioner-co-appellant-cross-respondent
Lake Beulah Protective and Improvement Association there was a brief by William T. Stuart, Meissner Tierney Fisher
&
For the respondent-respondent
State of Wisconsin Department of Natural Resources there was a brief by Carl A. Sinderbrand, Axley Brynelson, LLP and
Judith M. Ohm, Wisconsin Department of
Natural Resources and oral argument by Carl
A. Sinderbrand.
There was an amicus brief by Andrew C. Cook, Robert I Fassbender and Great Lakes Legal Foundation, Inc., Madison, on behalf of Attorneys for Dairy Business Association, Midwest Food Producers Association, Wisconsin Manufactures & Commerce, and Wisconsin Paper Council.
There was an amicus brief by Michael D. Dean and First Freedoms Foundation, Inc.,
There was an amicus brief by Thomas D. Larson and Wisconsin Realtors Association, Madison on behalf of Wisconsin Realtors Association and the Wisconsin Builders Association.
There was an amicus brief by Jodi Habush Sinykin and Elizabeth Lawton and Midwest Environmental Advocates, Madison on behalf of Wisconsin Wildlife Federation, River Alliance of Wisconsin and Clean Wisconsin.
There was an amicus brief by Claire Silverman and League of Wisconsin Municipalities,
There was an amicus brief by Henry E. Koltz and Schmidt, Darling & Erwin, Milwaukee, on behalf of Wisconsin Trout Unlimited, Inc.
There was a nonparty brief by William P. O’Connor and Mary Beth Peranteau and Wheeler, Van Sickle & Anderson, S.C. on behalf of Wisconsin Association of Lakes.
2011 WI 54
notice
This opinion is subject to further editing and modification. The final version will appear in the bound volume of the official reports.
REVIEW of a decision of the Court of Appeals. Affirmed in part and reversed in part.
¶1 N. PATRICK CROOKS, J. This is a review of a
published decision of the court of appeals[1]
involving the Wisconsin Department of Natural Resources' (DNR) decision to
issue a permit to the Village of East Troy (the Village) for a municipal well,
Well No. 7, on September 6, 2005. Well
No. 7 was constructed and began operating on August 1, 2008.[2] The Lake Beulah Management District (LBMD)
and the Lake Beulah Protective and Improvement Association (LBPIA), referred to
collectively as the conservancies, challenged the DNR's decision to issue the
2005 permit without considering the well's potential impact on nearby Lake
Beulah, a navigable water. The Walworth
County Circuit Court, the
Honorable Robert J. Kennedy presiding, denied the petition for review,
concluding that, while the DNR had some duty to consider the impact of proposed
wells on waters of the state, the DNR did not violate its obligations by
issuing the 2005 permit because there was no evidence that the well would harm
Lake Beulah. The conservancies
appealed.
¶2 The court of appeals held that the DNR has the authority and duty
to consider the environmental impact of a proposed high capacity well if
presented with sufficient scientific evidence suggesting potential harm to
waters of the state.[3] The court of appeals concluded that the DNR
was presented with such evidence in this case and remanded to the circuit court
to order the DNR to consider the impact of Well No. 7 on
¶3 We conclude that, pursuant to Wis. Stat. § 281.11, § 281.12, § 281.34, and § 281.35 (2005-06),[5] along with the legislature's delegation of the State's public trust duties,[6] the DNR has the authority and a general duty[7] to consider whether a proposed high capacity well may harm waters of the state.[8] Upon what evidence, and under what circumstances, the DNR's general duty is implicated by a proposed high capacity well is a highly fact specific matter that depends upon what information is presented to the DNR decision makers by the well owner in the well permit application and by citizens and other entities regarding that permit application while it is under review by the DNR.
¶4 We further hold that to comply with this general duty, the DNR must consider the environmental impact of a proposed high capacity well when presented with sufficient concrete, scientific evidence of potential harm to waters of the state. The DNR should use both its expertise in water resources management and its discretion to determine whether its duty as trustee of public trust resources is implicated by a proposed high capacity well permit application, such that it must consider the environmental impact of the well or in some cases deny a permit application or include conditions in a well permit.
¶5 Thus, we affirm that part of the court of appeals decision holding that the DNR has the authority and a general duty, which it described as something less than an absolute duty, to consider the impact of a proposed high capacity well on waters of the state.[9] We further affirm the court of appeals' conclusion that this general duty requires the DNR to investigate or consider potential harm to waters of the state only when such duty is triggered, and that there are limited ways in which citizens may present evidence of potential harm to the DNR.[10]
¶6 However, we reverse that part of the court of appeals decision that reversed and remanded to the circuit court with directions to remand to the DNR. That part of the court of appeals decision was based on the court of appeals' conclusion that the DNR's duty was triggered in this case by the conservancies' submission of an affidavit by geologist Robert J. Nauta (the Nauta affidavit) to the DNR's in-house attorney regarding a related proceeding.[11] The court of appeals assumed that the DNR's attorney was not one of the decision makers and used the principles of attorney-client imputation——imputing the DNR attorney's possession of the Nauta affidavit to the DNR decision makers——to conclude that the decision makers had this information while reviewing the 2005 permit application and to include it in the record on review.[12] The record is silent regarding who the DNR decision makers were and whether they actually had the Nauta affidavit while reviewing the 2005 permit application. Based on the lack of information on these matters in the record on review, we must reverse the court of appeals decision to remand to the circuit court with directions to remand to the DNR.
¶7 We note that the right to review of the DNR's decision regarding a high capacity well permit application "is dependent upon strict compliance with [Wis. Stat. ch. 227]."[13] "Ch. 227 provides a comprehensive, fully defined, procedure for judicial review of administrative decisions."[14] In a challenge to a DNR decision, "[d]eveloping a factual record . . . is essential, because [§ 227.57] limits judicial power over administrative decisions to review of the agency's actions, based on the record developed before the agency."[15] In this case, based on the record on review, which does not include the Nauta affidavit, the DNR was not presented with sufficient concrete, scientific evidence of potential harm to waters of the state, and thus, we affirm the DNR's decision to issue the 2005 permit.[16]
¶8 Therefore, we affirm in part and reverse in part the decision of the court of appeals.
I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY
¶9 Well No. 7 has been the subject of extensive litigation, and the issues raised in this case are related to the conservancies' challenge to the 2003 permit. While only the DNR's decision regarding the 2005 permit is under review by this court, the history of and litigation involving the 2003 permit is relevant, and thus, is included herein.
¶10 In order to provide adequate drinking water to its growing number of residents, in 2003, the Village first applied to the DNR to construct a municipal well with a capacity of 1,400,000 gallons per day (gpd).[17] Along with its application and fee, the Village submitted reports from the consulting firm Crispell-Snyder, Inc., providing detailed specifications for the well and the results of its well site investigation. The report described the surrounding land use, the surface topography, the hydrogeology of the area, the location of potential contamination sources, the results of test pumping, and the location of nearby wetlands. This report also relied, in part, on an investigation by Layne-Northwest, another consulting firm the Village hired in 2000 to select a suitable site for its well.
¶11 On September 4, 2003, the DNR issued a letter to the Village
granting it a permit to construct and operate Well No. 7, hereinafter referred
to as "the 2003 permit." In
this letter, the DNR relied on its conclusion that Well No. 7 would not
"have an adverse effect on any nearby wells owned by another water
utility." The DNR also included
Layne-Northwest's opinion that Well No. 7, pumping at its full capacity,
"would avoid any serious disruption of groundwater discharge to
¶12 Well No. 7 is located 1,200 feet from
¶13 On August 3, 2005, the Village's attorney sent a letter to the DNR's attorney formally requesting an extension of the 2003 permit for an additional two years.[19] The Village asserted that no additional analysis was required because changes to Wis. Stat. § 281.34[20] did not affect this well, and thus, "neither the relevant law nor facts [had] changed since [the Village's] last application."
¶14 On August 4, 2005, the day after the Village formally requested a permit extension, the conservancies filed a motion for reconsideration of the circuit court's decision in the 2003 permit challenge, to which the conservancies attached the affidavit of Robert J. Nauta. The motion and affidavit were served on the DNR's in-house attorney in that case. In the affidavit, Robert J. Nauta, a Wisconsin-licensed geologist, stated that based on his analysis of the Village's consultants' pumping tests and reports and his own pumping tests and studies, "the existing data can only support the conclusion that pumping of proposed Well No. 7 would cause adverse environmental impacts to the wetland and navigable surface waters of Lake Beulah."
¶15 The DNR granted the permit "extension" in a letter dated
September 6, 2005, hereinafter referred to as "the 2005 permit." The
DNR agreed with the Village's assertion that the "physical
circumstances" of Well No. 7 had not changed and that the issuance of a
permit was appropriate under the standards in Wis. Stat. § 281.34 as modified by 2003
¶16 On
March 3, 2006, the conservancies petitioned the Walworth County Circuit Court
for judicial review of the DNR's decision to issue the 2005 permit. Relevant to this appeal, the conservancies
argued that the DNR, pursuant to its public trust obligations, should have
considered evidence of potential harm to
¶17 The
conservancies appealed, and the court of appeals reversed the circuit court's
decision.[23] Lake Beulah Mgmt. Dist. v. Dept. of
Natural Res. (DNR), 2010 WI App 85, ¶1, 327 Wis. 2d 222, 787 N.W.2d 926. As an initial matter, the court of appeals
agreed with the circuit court that the 2005 permit is not a "nullity"
even though it is a new permit and was referred to as a permit
"extension" in the 2005 permit application.
¶18 The
court of appeals went on to address the DNR's authority and duty under the
public trust doctrine and Wis. Stat. ch. 281.
The court of appeals concluded that the State delegated its duties under
the public trust doctrine——to preserve for public use
¶19 The
court of appeals further held that this duty is not absolute, but must be
triggered by some showing that a proposed high capacity well has the potential
to harm waters of the state.
¶20 The
court of appeals explained how citizens may present evidence to the DNR to
trigger its duty to consider the effects of a proposed high capacity well on
waters of the state.
¶21 The court of appeals concluded that, while the conservancies did
not use any of the above methods, they did provide evidence to the DNR
suggesting that Well No. 7 would harm waters of the state by submitting the
Nauta affidavit to the DNR's in-house attorney, who was involved in the
litigation of both permits. Lake
Beulah Mgmt. Dist. v. DNR, 327
¶22 The
Village petitioned this court for review, which we granted. We first examine the scope of the DNR's
authority and duty under the public trust doctrine and Wis. Stat. ch. 281 to
consider the environmental effects of a proposed high capacity well on waters
of the state before issuing a permit. We
then examine whether the DNR's decision to issue the 2005 permit complied with
its duty and all other statutory requirements.
II. ANALYSIS
¶23 The
question of the scope of an agency's authority requires the interpretation of
relevant statutes, which presents a question of law, which we review de novo. Andersen v. Dep't of Natural Res., 2011
WI 19, ¶25, 332
¶24 When
interpreting a statute, we begin by examining the language of the statute, and
our analysis ends there if the meaning is plain. State ex rel. Kalal v. Circuit Court for
Dane Cnty., 2004 WI 58, ¶45, 271 Wis. 2d 633, 681
N.W.2d 110. Statutory language is
interpreted "in relation to the language of surrounding or closely-related
statutes; and reasonably, to avoid absurd or unreasonable results."
¶25 Upon
resolving the scope of the DNR's authority and duty, we reach the underlying
dispute, which centers on the validity of DNR's decision to issue the 2005 permit. "When an appeal is taken from a circuit
court order reviewing an agency decision, we review the decision of the agency,
not the circuit court." Hilton
ex rel. Pages Homeowners' Ass'n v. Dep't of Natural Res., 2006 WI 84, ¶15,
293
¶26 A
legal challenge to an agency decision is governed by Wis. Stat. ch. 227 and is
limited to the record on review.
A. The
Scope of the DNR's Authority and Duty
¶27 The
focus of the conservancies' challenge to the 2005 permit is their assertion
that the DNR has both the authority and duty to consider the impact of a
proposed high capacity well on waters of the state. To a certain extent, the DNR agrees. The DNR asserts that it has the authority and
a general duty to consider the impacts of a proposed well on waters of the
state when deciding whether to issue a permit though it asserts that this duty
did not require the DNR to undertake its own environmental analysis or to deny
the permit in this case. The DNR and the
conservancies agree that this authority and duty derives from both the public
trust doctrine and Wis. Stat. ch. 281.
¶28
Regarding the public trust doctrine, they argue that the State has delegated
its duties as trustee of public trust resources to the DNR, and that this
imposes a duty on the DNR to protect navigable waters. Further, they assert that the DNR's authority
and duty is also derived from Wis. Stat. § 281.11 setting forth the
purposes and policies of that subchapter, and in Wis. Stat. § 281.12,
outlining the DNR's duties under that subchapter to protect and preserve waters
of the state. They assert that nothing
in the more specific statutory standards for high capacity wells in Wis. Stat.
§ 281.34 and § 281.35 revokes this broad grant of authority or limits
the DNR's duty under the public trust doctrine.
They note that the Village's narrow interpretation of the DNR's
authority would lead to an absurd result where the DNR knew a proposed high
capacity well would cause harm to waters of the state but had to issue the
permit and wait to pursue remedies until after the harm occurred. The DNR asserts that after-the-fact remedies
would not be sufficient to protect public trust resources. Finally, the DNR adds, in response to the
Village's argument to the contrary, that the DNR's long history of conducting
public trust analyses provides sufficient standards and guidance for permitees.
¶29 The
Village argues that the DNR does not have the authority to consider the effect
of a proposed high capacity well on waters of the state or to reject a well
permit application because of such concerns.
The Village asserts that the specific statutory scheme set forth in Wis.
Stat. § 281.34 and § 281.35 circumscribes the DNR's authority to
conduct environmental reviews and limits it to only those proposed high
capacity wells specifically enumerated in the statute (which do not include
Well No. 7): certain wells with a capacity of between 100,000 and 2,000,000 gpd
and all wells with a capacity of over 2,000,000 gpd. The Village argues that the legislative
history of Wis. Stat. § 281.34 and § 281.35 indicates that this
statutory scheme evinces a deliberate legislative choice to limit the DNR's
authority. The Village asserts that this
specific, limited grant of authority cannot be superseded by the public trust
doctrine or the general policy provisions in Wis. Stat. § 281.11 and § 281.12. The Village argues that interpreting the
DNR's authority so broadly would create a permit system without clear standards
and would provide no guidance for permit applicants. The Village notes that concerns about the
environmental impacts of high capacity wells may be addressed through (1) the
DNR's enforcement authority under ch. 30, (2) the State's authority to address
nuisance conditions caused by excessive water withdrawals, and (3) citizen
nuisance actions.[26]
¶30 It
is undisputed that
¶31 This
court has long confirmed the ongoing strength and vitality of the State's duty
under the public trust doctrine to protect our valuable water resources. In Diana Shooting Club v. Husting, we
explained the importance of a broad interpretation and vigorous enforcement of
the public trust doctrine:
The wisdom of the policy which, in the organic laws of our state, steadfastly and carefully preserved to the people the full and free use of public waters cannot be questioned. Nor should it be limited or curtailed by narrow constructions. It should be interpreted in the broad and beneficent spirit that gave rise to it in order that the people may fully enjoy the intended benefits. Navigable waters are public waters, and as such they should enure to the benefit of the public.
156
We reaffirmed this maxim in Muench
v. Public Service Commission in our examination of the history and
evolution of the public trust doctrine, which indicated a "trend to extend
and protect the rights of the public to the recreational enjoyment of the
navigable waters of the state." 261
¶32 From
this fundamental tenet of our constitution, the State holds the navigable
waters and the beds underlying those waters in trust for the public. Hilton, 293
¶33 While
it is primarily the State's duty to protect and preserve these resources,
"[i]n furtherance of the state's affirmative obligations as trustee of
navigable waters, the legislature has delegated substantial authority over
water management matters to the DNR. The
duties of the DNR are comprehensive, and its role in protecting state waters is
clearly dominant."
¶34 Particularly
relevant to this case, and supporting the DNR's expansive duty in this regard,
the Wisconsin's Environmental Decade v. DNR court cited several chapters
of the statutes, which charge the DNR with managing water resources, and
concluded that those statutes act as the State's delegation of its public trust
duties to the DNR. 85
¶35 The statutory scheme governing high
capacity wells, in subchapter II of Wis. Stat. ch. 281, combines the DNR's
overarching authority and duty to manage and preserve waters of the state with
certain specific, minimum statutory requirements.
The department shall serve as the central unit of state
government to protect, maintain and improve the quality and management of the
waters of the state, ground and surface, public and private. . . . The purpose of this subchapter
is to grant necessary powers and to organize a comprehensive program under a
single state agency for the enhancement of the quality management and
protection of all waters of the state, ground and surface, public and
private. To the end that these vital
purposes may be accomplished, this subchapter and all rules and orders
promulgated under this subchapter shall be liberally construed in favor of the
policy objectives set forth in this subchapter.
Wisconsin Stat. § 281.12(1) further sets
forth the DNR's powers and duties under subsection II of Wis. Stat. ch. 281, "The department shall
have general supervision and control over the waters of the state. It shall carry out the planning, management
and regulatory programs necessary for implementing the policy and purpose of
this chapter."
¶36 In
subchapter II of Wis. Stat. ch. 281, the legislature has further directed the
DNR to regulate high capacity wells.
¶37 For
wells with a capacity of between 100,000 and 2,000,000 gpd, the DNR must review
the well permit application using the formal environmental review process in
Wis. Stat. § 1.11 for those wells (1) "located in a groundwater
protection area," (2) "with a water loss of more than 95 percent of
the amount of water withdrawn," or (3) "that may have a significant
environmental impact on a spring."
¶38 For
wells with a capacity of more than 2,000,000 gpd, the legislature has imposed
significant additional requirements.
¶39 We
conclude that, through Wis. Stat. ch. 281, the legislature has explicitly
provided the DNR with the broad authority and a general duty,[28]
in part through its delegation of the State's public trust obligations, to
manage, protect, and maintain waters of the state.[29] Wis. Stat. §§ 281.11, 281.12; see
also
¶40 The
parties agree that there is no requirement either for the formal environmental
review in Wis. Stat. § 281.34(4) nor for the detailed environmental
findings in Wis. Stat. § 281.35(5) for Well No. 7 because it has a
capacity of 1,400,000 gpd and does not fall into any of the special categories
in Wis. Stat. § 281.34(4) for which formal environmental review is
required. However, the Village argues
that the "graduated permit framework" in Wis. Stat. § 281.34 and
§ 281.35 limits the DNR's authority to consider environmental concerns to
only those wells for which minimum review standards are prescribed. The Village's interpretation of the high
capacity well statutes would require the DNR to issue a permit when the minimum
statutory requirements are met.
¶41 To
the contrary, there is nothing in either Wis. Stat. § 281.34 or
§ 281.35 that limits the DNR's authority to consider the environmental
impacts of a proposed high capacity well, nor is there any language in
subchapter II of Wis. Stat. ch. 281 that requires the DNR to issue a permit for
a well if the statutory requirements are met and no formal review or findings
are required.
¶42 Indeed,
the Village's interpretation conflicts with the permissive language in the
statutes, which allow the DNR to exercise its discretion when deciding whether
to issue a permit.[32] The legislature can, and in other contexts
does, mandate that the DNR issue a permit when certain requirements are met,[33]
but the legislature has not done so for high capacity well permits. Finding no language expressly revoking or
limiting the DNR's authority and general duty to protect and manage waters of
the state, we conclude that the DNR retains such authority and general duty to
consider whether a proposed high capacity well may impact waters of the
state. See e.g., Reuter v. Dep't
of Natural Res., 43 Wis. 2d 272, 275-78, 168 N.W.2d 860 (1969);
Maple Leaf Farms, Inc. v. Dep't of Natural Res., 2001 WI App 170,
¶¶15-27, 247 Wis. 2d 96, 633 N.W.2d 720. This interpretation best harmonizes all of
the high capacity well statutes and avoids potential conflicts between the
statutes and with the State's delegation of its public trust duties. See Beard v. Lee Enters., Inc.,
225
¶43 Contrary
to the Village's argument, this does not create a permit system without
standards. The Village's argument
ignores the reality of how the DNR exercises its authority and complies with
its duty within the statutory standards.
As with many other environmental statutes, within the general statutory
framework, the DNR utilizes its expertise and exercises its discretion to make
what, by necessity, are fact-specific determinations.[34] General standards are common in environmental
statutes and are included elsewhere in the high capacity well statutes. See, e.g., Wis. Stat.
§ 281.35(5)(d)1. (requiring the DNR to make a finding "[t]hat no
public water rights in navigable waters will be adversely affected" before
issuing a permit). The fact that these
are broad standards does not make them non-existent ones.
¶44 We
conclude that the meaning of these provisions is clear: the DNR has the
authority and a general duty to consider potential environmental harm to waters
of the state when reviewing a high capacity well permit application.[35]
¶45 The
DNR's general duty certainly does not require the DNR to investigate the potential
environmental harm of every high capacity well permit application or to undertake
a formal environmental review for every application. Such an interpretation would be inconsistent
with the legislature's decision to mandate that level of environmental review
for only certain high capacity wells.
¶46 However,
given its general duty, the DNR is required to consider the environmental
impact of a proposed high capacity well when presented with sufficient concrete,
scientific evidence of potential harm to waters of the state. Upon what evidence, and under what
circumstances, that duty is triggered is a highly fact-specific matter that
depends upon the information submitted by the well owner in the well permit
application and any other information submitted to the DNR decision makers while
they are reviewing that permit application.
The DNR should use both its expertise in water resources management and
its discretion to determine whether its duty as trustee of public trust
resources is implicated by a proposed high capacity well permit application
such that it has an obligation to consider environmental concerns. This is consistent with the fact-specific
determinations that the DNR often must make to comply with its obligations
under other environmental statutes.[36]
¶47 The
limited review available to those who wish to challenge the DNR's discretionary
permitting decisions provides an additional restriction that limits when a
court will hold that the DNR's duty required it to take further action when
considering a particular high capacity well permit application. As outlined in greater detail below, a legal
challenge to the DNR's decision under ch. 227 is limited to the record on
review and is deferential to the DNR's expertise in this area. Thus, citizens must present any evidence of
potential harm to the agency before the decision is made or risk losing
the ability to challenge the DNR's discretionary decision based on such
evidence.
B.
Application to This Case
¶48 The
conservancies argue that the DNR had a duty to consider potential harm to
waters of the state in this case because the conservancies provided the DNR
with concrete, scientific evidence showing potential harm to
¶49 They
assert that "the very unique factual circumstances" coupled with the
"complex procedural history" of this permit, involving the same
parties and legal issues, mean that even though they submitted it regarding the
2003 permit litigation, since the DNR actually had this information while
making its decision regarding the 2005 permit, it triggered the DNR's duty to
consider it. Additionally, the
conservancies assert that the Nauta affidavit became part of the record on
review for the 2005 permit when they submitted it in a binder along with their
brief and later moved the circuit court to supplement that record.[38]
¶50 On
the result required in this case, the Village and the DNR agree. They assert that a remand is not warranted
because the DNR's duty to consider potential harm to waters of the state was
not triggered by the 2005 permit request based on the evidence in the record on
review. They argue that challenges to
DNR's permitting decisions under ch. 227 are limited to the record on review, which
is not simply any information the DNR had, but only that information the DNR
had when making its permit decision that the DNR compiles, certifies, and sends
to the circuit court.
¶51 They
assert that the Nauta affidavit is not part of the record on review in this
case. They note that the conservancies
could have, but did not, utilize one of the following methods to add this
evidence to the record on review: (1) through a contested case hearing
regarding the 2005 permit, or (2) through a motion to supplement or correct the
record on review in the circuit court.
They further note that the conservancies submitted this affidavit to the
circuit court attached to a brief; however, they did not properly move to
supplement the record with this information because their motion to supplement
did not refer to the Nauta affidavit.
They argue that the court of appeals' use of agency imputation
principles to remand based on evidence in the Nauta affidavit is improper
because that argument goes to what information the agency decision makers may
or may not have had, and not what is part of the record on review.
¶52 As
reflected by the parties' arguments, determining what information the DNR had
when making its decision to issue the 2005 permit, which we may do only by
examining the record on review, is critical to the result in this case. It is important to understand that the
"record on review" is a term of art within the context of Wis. Stat.
ch. 227. The record on review is
"the original or a certified copy of the entire record of the proceedings
in which the decision under review was made, including all pleadings, notices,
testimony, exhibits, findings, decisions, orders and exceptions,
therein . . . " that the agency submits to the circuit
court.
¶53 A
challenge to an agency decision under Wis. Stat. ch. 227 is limited to the
record on review in that proceeding.
¶54 Citizens
have several options through which they may present evidence to influence an
agency's decision and to have that information considered in a review of the
decision.
¶55 First
and foremost, in order to ensure that information will be considered by an
agency in its decision making and will be included in the record on review,
citizens should submit evidence to the agency decision makers while they are
deciding what action to take. More
specifically, in regard to proposed high capacity wells, we conclude that to
trigger the DNR's duty to consider the impact of a well on waters of the state,
citizens must present sufficient concrete, scientific evidence of potential
harm to waters of the state directly to the DNR decision makers while they are
considering the well permit application.
¶56 After
the DNR makes its decision, citizens may petition the DNR for a contested case
hearing.
¶57 Additionally,
citizens also have a limited opportunity to add to the record on review before
a circuit court upon making a successful petition for judicial review.
¶58 The
Nauta affidavit is not in the record on review in this case. The conservancies assert that the DNR
actually had this information while making its decision regarding the 2005
permit because they served the Nauta affidavit on the DNR's attorney related to
the 2003 permit challenge while the DNR was reviewing the Village's 2005 permit
application.[39] At this stage in the proceedings, this
argument is of no avail.[40] Instead, before the circuit court, the
conservancies could have asserted this argument in support of proper motions to
correct or supplement the record on review.
See
¶59 During
oral argument the conservancies asserted that they did move the circuit court
to supplement the record on review with information that they submitted in a
binder, along with their brief. However,
the Nauta affidavit is not in the binder referred to in the conservancies'
motion to supplement.[41] Thus, this motion to supplement could not
have added the Nauta affidavit to the record on review.
¶60 Having
clarified the importance of what is and what is not in the record on review in
this case, we address the DNR's discretionary decision to issue the 2005 high
capacity well permit to the Village.
Since the evidence raised in the Nauta affidavit is not part of the
record on review, pursuant to Wis. Stat. § 227.57(1), we may not use the
information in that affidavit as a basis to reverse the DNR's decision.
¶61 We
conclude that the DNR properly exercised its discretion and complied with the
law in issuing the 2005 permit. Its
decision is supported by the evidence in the record on review of the 2005
permit, specifically the documents submitted in the Village's application
including Layne-Northwest's conclusion that Well No. 7, pumping at its full
capacity, "would avoid any serious disruption of groundwater discharge to
III. CONCLUSION
¶62 We conclude that, pursuant to Wis. Stat. § 281.11, § 281.12, § 281.34, and § 281.35, along with the legislature's delegation of the State's public trust duties, the DNR has the authority and a general duty to consider whether a proposed high capacity well may harm waters of the state. Upon what evidence and under what circumstances the DNR's general duty is implicated by a proposed high capacity well is a highly fact specific matter that depends upon what information is presented to the DNR decision makers by the well owner in the well permit application and by citizens and other entities regarding that permit application while it is under review by the DNR.
¶63 We further hold that to comply with this general duty, the DNR must consider the environmental impact of a proposed high capacity well when presented with sufficient concrete, scientific evidence of potential harm to waters of the state. The DNR should use both its expertise in water resources management and its discretion to determine whether its duty as trustee of public trust resources is implicated by a proposed high capacity well permit application, such that it must consider the environmental impact of the well or in some cases deny a permit application or include conditions in a well permit.
¶64 Thus, we affirm that part of the court of appeals decision holding that the DNR has the authority and a general duty, which it described as something less than an absolute duty, to consider the impact of a proposed high capacity well on waters of the state.[43] We further affirm the court of appeals' conclusion that this general duty requires the DNR to investigate or consider potential harm to waters of the state only when such duty is triggered, and that there are limited ways in which citizens may present evidence of potential harm to the DNR.[44]
¶65 However, we reverse that part of the court of appeals decision that reversed and remanded to the circuit court with directions to remand to the DNR. That part of the court of appeals decision was based on the court of appeals' conclusion that the DNR's duty was triggered in this case by the conservancies' submission of an affidavit by geologist Robert J. Nauta (the Nauta affidavit) to the DNR's in-house attorney regarding a related proceeding.[45] The court of appeals assumed that the DNR's attorney was not one of the decision makers and used the principles of attorney-client imputation——imputing the DNR attorney's possession of the Nauta affidavit to the DNR decision makers——to conclude that the decision makers had this information while reviewing the 2005 permit application and to include it in the record on review.[46] The record is silent regarding who the DNR decision makers were and whether they actually had the Nauta affidavit while reviewing the 2005 permit application. Based on the lack of information on these matters in the record on review, we must reverse the court of appeals decision to remand to the circuit court with directions to remand to the DNR.
¶66 We note that the right to review of the DNR's decision regarding a high capacity well permit application "is dependent upon strict compliance with [Wis. Stat. ch. 227]."[47] "Ch. 227 provides a comprehensive, fully defined, procedure for judicial review of administrative decisions."[48] In a challenge to a DNR decision, "[d]eveloping a factual record . . . is essential, because [§ 227.57] limits judicial power over administrative decisions to review of the agency's actions, based on the record developed before the agency."[49] In this case, based on the record on review, which does not include the Nauta affidavit, the DNR was not presented with sufficient concrete, scientific evidence of potential harm to waters of the state, and thus, we affirm the DNR's decision to issue the 2005 permit.
¶67 Therefore, we affirm in part and reverse in part the decision of the court of appeals.
By the Court.—The decision of the court of appeals is affirmed in part and reversed in part.
¶68 ANNETTE KINGSLAND ZIEGLER, J. (concurring). I join the majority opinion because its
holding is the legally correct result.
Given that our review "shall be confined to the record," Wis.
Stat. § 227.57(1),
I simply cannot dissent. Still, I write
separately to express my uneasiness with the result in this case. Notwithstanding our decision today, there
remains credible, concrete evidence that Well No. 7, now constructed and in
operation since August 1, 2008, has the potential to harm the wetland and
navigable surface waters of
¶69 The waters of this state are deeply revered, especially by those
who live alongside them. As the late
Justice William A. Bablitch so eloquently observed, "Fishing is many
things, the least of which to many who indulge is the catching of fish." Cnty. of Adams v. Romeo, 191
¶70 However,
the fact of the matter is that Nauta's affidavit is not part of the record for
purposes of our review. See
majority op., ¶¶57-58. Moreover, there
is nothing in the record indicating that the DNR decision makers possessed the
affidavit. See id., ¶6; Lake
Beulah Mgmt. Dist. v. DNR, 2010 WI App 85, ¶¶15, 35, 327
Wis. 2d 222, 787 N.W.2d 926.
Because that evidence is not part of the record, I simply cannot
conclude that the DNR erroneously exercised its discretion when it issued the
2005 permit to the
¶71 Accordingly,
I respectfully concur.
[1] Lake Beulah Mgmt. Dist. v. Dep't of Natural Res. (DNR), 2010 WI App 85, 327 Wis. 2d 222, 787 N.W.2d 926.
[2]
[3] Lake Beulah Mgmt.
Dist. v. DNR, 327
[4]
[5] All subsequent references to the Wisconsin Statutes are to the 2005-06 version unless otherwise indicated.
[6]
[7] We use "general duty" to describe the DNR's broad obligation to protect waters of the state, which does not demand that the DNR take any particular action unless that duty is triggered by a proposed high capacity well permit application.
[8] "'Waters of the
state' includes those portions of Lake Michigan and Lake Superior within the
boundaries of this state, and all lakes, bays, rivers, streams, springs, ponds,
wells, impounding reservoirs, marshes, watercourses, drainage systems and other
surface water or groundwater, natural or artificial, public or private, within
this state or its jurisdiction."
[9]
[10]
[11]
[12]
[13]
[14]
[15] Charter Mfg. Co.,
Inc. v. Milwaukee River Restoration Council, Inc., 102
[16] If such evidence of
potential or actual harm is presented in the future concerning
[17] A well with this
capacity qualifies as a high capacity well.
[18] See the court of
appeals decision in this case for a detailed summary of the 2003 permit
challenge. See Lake Beulah
Mgmt. Dist. v. DNR, 327
[19] While the Village and
the DNR treated the 2005 permit as an extension of the 2003 permit, in a
decision relating to the 2003 permit, the court of appeals concluded that the
2005 permit was, in fact, a new permit.
[20] In 2004, the
legislature passed 2003
[21] In addition, the conservancies argued that the Village's 2005 permit was invalid because the Village requested a permit "extension," but was required to obtain a "new" permit. The conservancies also defended their petition as timely on the basis that they did not request a contested case hearing and filed within the six month limitation period for judicial review of agency decisions.
[22] For the purposes of its
decision, the circuit court assumed that the conservancies' petition was timely
and also noted that, contrary to the conservancies' argument, the 2005 permit
was a valid "new" permit because the court of appeals, on review of
the 2003 permit, so held in dismissing that appeal for mootness.
[23] The Village also cross-appealed
the circuit court's decision that the conservancies' petition for judicial
review was timely. The court of appeals agreed
with the circuit court and held that the conservancies' petition was timely
because it was not a petition for judicial review of a contested case and was
filed within six months of the DNR's decision.
Lake Beulah Mgmt. Dist. v. DNR, 327
[24] A detailed explanation of the public trust doctrine and its applicability to the high capacity well statutes is provided later in our analysis herein, see infra ¶¶29-33.
[25] The court of appeals
did not specify who the DNR decision makers for the 2005 permit were, and the
record on review appears silent as to that point; nor did the DNR define that
term. The court of appeals' analysis
assumes, however, that the decision makers did not include the DNR's attorney to
whom the conservancies submitted the Nauta affidavit. See Lake Beulah Mgmt. Dist. v. DNR,
327
[26] The Village also asserts that
the court of appeals decision raises separation of powers concerns because,
according to the Village, the decision "has effectively added words"
to the statute and abrogated legislative policy choices. We disagree with the Village's characterization
of the court of appeals decision in that regard, and because this argument is
inadequately developed, we do not address it further. See
[27] The owner of a well
that is not a high capacity well, i.e., one with a capacity of less than
100,000 gpd, must "notify the [DNR] of the location of [the] well . . . before construction of
the well begins."
[28] We use "general duty" to describe the DNR's broad obligation to protect waters of the state, which does not demand the DNR to take any particular action unless that duty is triggered by a proposed high capacity well permit application. Under this general duty, the DNR is required to consider the impact of a proposed high capacity well on waters of the state only if the DNR decision makers are presented with sufficient concrete, scientific evidence that the proposed well poses potential harm to waters of the state. See infra ¶¶44-46.
[29] Because the DNR's authority
and general duty derive from both the public trust doctrine, which protects
navigable waters, and Wis. Stat. ch. 281, which protects waters of the state,
we refer to the DNR's authority and general duty in regard to waters of the
state, which encompasses both. See
[30] Whether the DNR has the authority to consider the environmental impact of proposed wells with a capacity of less than 100,000 gpd, for which only notification, under Wis. Stat. § 281.34(3), is required, is not before this court, and thus we do not decide that issue.
[31] Our conclusion is not affected
by the argument advanced by the Great Lakes Legal Foundation (GLLF) in a letter
recently submitted on behalf of the amici Dairy Business Association, Wisconsin
Manufacturers & Commerce, Inc., Wisconsin Paper Council, Inc., and Midwest
Food Processors Association, Inc. In its
letter, the GLLF asserts that 2011
None
of the parties argues that the amendments to Wis. Stat. ch. 227 in 2011
[32] See, e.g., Wis. Stat. § 281.34(5) (providing in the "[s]tandards and conditions for approval" that, for certain wells, the DNR "may not [issue a permit for] the high capacity well unless" certain conditions are met or included in the permit, but not requiring the DNR to issue the permit if those conditions are met); § 281.35(5)(d) (providing in the "[g]rounds for approval" that "[b]efore [issuing a permit], the [DNR] shall determine all of the following," including certain environmental findings but not mandating permit issuance if the DNR does make such findings).
[33] See, e.g., Wis. Stat.
§ 281.346(4s)(d)3. (providing that the DNR "shall issue a notice of
coverage" under a general permit for a water withdrawal from the
[34]
[35] Because we conclude that the plain language of the relevant statutory provisions is clear, we need not examine the legislative history. State ex rel. Kalal v. Circuit Court for Dane Cnty., 2004 WI 58, ¶46, 271 Wis. 2d 633, 681 N.W.2d 110. Additionally, we are not persuaded by the Village's argument that the legislative history indicates that, by expanding the minimum environmental review requirements for certain high capacity wells, the legislature intended to limit the DNR's authority to consider potential environmental harm to its review of and decision regarding permits for only those wells. We further reject the Village's argument because it is contradicted by the plain meaning of the statute.
[36] See supra ¶42 n.30.
[37] The conservancies note that attached to the Nauta affidavit were a letter from the Southeastern Wisconsin Regional Planning Commission (SWRPC) and an email from the U.S. Geological Society, which raised other concerns about the report submitted by the Village's consultant and Well No. 7's impact on Lake Beulah. When we refer to the Nauta affidavit we refer to all of the evidence presented in that affidavit and the attachments thereto.
[38] In their brief and at
oral argument the conservancies also argued that an order by the circuit court,
in which the circuit court noted that the parties could rely on "any
information shown by the record to have been known to the DNR before and after
the issuance of the [2003] permit," effectively added this evidence to the
record on review. We disagree with this
characterization of the circuit court order because it reflects that the
circuit court would consider only information in the record on review by
referring to "information shown by the record to have been known to
the DNR." (Emphasis added.) Additionally, this order is not properly
before this court because it is not in the record but was provided as an
appendix to LBMD's brief. See
[39] The record on review
does not include any information as to who the decision makers were regarding
the 2005 permit. Thus, as did the court
of appeals, we must assume that the DNR's in-house attorney, to whom the
conservancies submitted the Nauta affidavit, was not a decision maker on the
2005 permit. See Lake Beulah
Mgmt. Dist. v. DNR, 327
[40] For this reason, we do not
address further the attorney-client imputation argument that was the basis for
the court of appeals' decision to remand.
See Lake Beulah Mgmt. Dist. v. DNR, 327
[41] The Nauta affidavit was
included in a binder submitted along with LBMD's initial brief in support of
its petition for review, dated May 1, 2008, when this case, No. 2006CV172, was
pending along with two related matters, Nos. 2006CV673 and 2007CV674. This brief was apparently superseded by
another brief submitted by LBMD, dated August 11, 2008, which references only
the circuit court case that is at issue in this case, No. 2006CV172. Along with the August 11, 2008, brief, LBMD
submitted a different binder of documents, which did not include the Nauta
affidavit. It is clear from the documents
referenced in LBMD's brief in support of its motion to supplement the record or
take judicial notice that the motion to supplement referred to the binder
submitted along with LBMD's August 11, 2008, brief, which does not contain the
Nauta affidavit.
A letter by LBMD's attorney regarding the circuit court record to be sent to the court of appeals confirms that the binder containing the Nauta affidavit was not part of LBMD's motion to supplement the record. LBMD's attorney stated that "the papers listed at R. 18 [LBMD's May 1, 2008, brief], 19 [the binder containing the Nauta affidavit], and 20 do not relate to this case, and should remain in the Court's file in Consolidated Case Nos. 06-CV-673 and 07-CV-674."
[42] We note that the Village has
been operating Well No. 7 since August 1, 2008.
If
the DNR or the conservancies believe that the well is actually causing
harm to
[43]
[44]
[45]
[46]
[47]
[48]
[49] Charter Mfg. Co.,
102
[50] Justice Bablitch continued:
It is, in the winter doldrums, the casual browsing through the fishing catalogues, the fisherperson's equivalent of the gardener's seed catalogues, contemplating the coming renewal;
It is the snap of a twig across the lake on a dew filled morning signalling the approach of a deer taking the first sip of the dawn;
It is the desolate cry of a loon signalling its mate in a most haunting communion indecipherable to mere humans;
It is the screech of the owl ten feet above the river bend warning the invader of its displeasure as we approach at dusk to witness the fleetingly hypnotic hatch of the mayfly, ironically renewing itself at the moment of its demise;
It is the swish swish swish of the giant wings of the heron as it rises reluctantly from its shallow water preserve, glaringly reminding us that this is its home, not ours.
It is all of this, and more, that brings us back again and again. This is fishing; the catching of a fish is merely ancillary.
Cnty. of Adams v. Romeo,
191