Summary
This appellate court opinion reviews the Texas Commission on Environmental Quality’s denial of requests for contested case hearings by environmental groups and individuals challenging a minor source air permit for a crude condensate terminal expansion. The court applies the substantial evidence standard to determine whether the appellants qualify as “affected persons” entitled to a hearing under state water and health codes. Concluding that expert modeling and regulatory factors supported the Commission’s finding that the appellants lacked a personal justiciable interest, the court reverses the trial court’s remand and renders judgment affirming the agency’s permit approval.
Topics
Practice areas
Questions Presented
- Whether the Commission's denial of contested‑case hearing requests was supported by substantial evidence.
- Whether the court has jurisdiction to review the merits of the air permit because the appellants failed to exhaust administrative remedies.
Holdings
- The Commission's denial is supported by substantial evidence; the appellate court affirms the Commission's decision and reverses the trial court's judgment on that issue.
- The court lacks jurisdiction to review the merits of the permit because the appellants did not exhaust the required administrative remedies; the appellate court reverses the trial court on this issue.
Key quotations
“We hold that substantial evidence supported the Commission’s decision to deny a contested case hearing.”
“We therefore lack jurisdiction to review the merits of issuance of the permit.”
Factual background
TCEQ issued a minor‑source air permit to Max Midstream for expanding the Seahawk Terminal in Calhoun County. Appellees—San Antonio Bay Estuarine Waterkeeper, Texas Campaign for the Environment, and S. Diane Wilson—requested contested‑case hearings, were denied, and challenged the denial and the permit in district court. The trial court reversed the denial and remanded; the appellate court now reviews that decision.
Procedural history
The Texas Commission on Environmental Quality (TCEQ) granted Max Midstream a minor source air permit for the Seahawk Terminal expansion. Appellees sought contested case hearings, were denied, and sued. The trial court reversed the Commission's denial and remanded for a hearing. The Commission and Max Midstream appealed.