The U.S. Supreme Court on Wednesday appeared likely to
rule that property owners can challenge the federal government in court over
the need for permits under a national water protection law in a case involving
a company's plans for a Minnesota peat mine.
The court heard a one-hour argument in a case
balancing #property_rights and #environmental_law, in this instance the landmark
1972 U.S. Clean Water Act. A majority of the eight justices appeared
sympathetic toward North Dakota-based Hawkes Co Inc, which is fighting an Obama
administration finding that its property includes wetlands.
The law mandates that property owners get permits in
such situations.
Whether a particular plot of land falls under the
law's jurisdiction is important to developers and other property owners because
such a finding triggers a lengthy and expensive permitting process.
Hawkes' lawyers argued the company should be able to
contest whether it even needs to go through the permit process.
Liberal and conservative justices alike expressed
concern about the current arrangement's burden on property owners.
Conservative Chief Justice John Roberts said
applicants who disregard a government finding that they need a permit do so at
"great practical risk."
Liberal Ruth Bader Ginsburg called the process
"very arduous and very expensive." Liberal Stephen Breyer called the
government decision that Hawkes needed a permit "perfectly suited for review
in the courts."
Only liberal Elena Kagan expressed support for the
government, raising concerns about the impact a ruling favoring property owners
would have on actions by other government agencies such as the Securities and
Exchange Commission.
Property rights advocates said the permitting process
can take two years and cost up to $270,000, with owners facing penalties of up
to $37,500 a day for noncompliance.
Business groups including the National Association of
Home Builders and the U.S. Chamber of Commerce and 29 states filed court papers
opposing the Obama administration in the case.
The case follows the justices' unanimous 2012 ruling
that property owners facing enforcement action under the Clean Water Act can
ask a court to intervene before being forced to comply or pay financial
penalties.
The Obama administration last year issued a new
regulation defining the scope of federal jurisdiction over bodies of water. A
federal appeals court put the rule on hold after it was challenged by 18
states.
Only eight justices participated in the case following
Justice Antonin Scalia's February death.
A ruling is due by the end of June.
(Reporting by Lawrence Hurley; Editing by Will Dunham)
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