I N T H E SUPR EM E C O UR T O F M I SS I SS I PPI NO. 2 0 1 2 - S A- 0 0 6 9 9 - S CT RI VERBEND U TI

LI TI ES , I NC.
v. M I SS I SS I PPI EN VI RO NM EN TAL Q UA LI TY PERM I T BOARD AN

D H ARR I SON CO UN TY UTI LI TY AU TH OR I TY
D A T E O F JU D G M E N T : 03/ 30/ 2012 T RI AL J UDGE : HON. J AM E S B. P E RS ONS COURT F ROM W HI CH APP EAL ED: HARRI S ON COU NTY CHANCERY COURT AT T OR NE YS F OR AP P E L L ANT : HAR RY R. AL L E N M ARGARET P
. M c ARTHUR ATTO RN EYS FOR A PP ELLEES : LI SA TH OM PS ON OU ZTS RO Y F UR RH T H E O D O R E D . L A M P T O N , III J A M E S C . S IM P S O N , J R . NA TUR E OF THE C ASE: CI VI L - STATE BO AR DS A ND AG ENC I ES D I SPO SI T I O N : A FFIRM E D - 01/ 30/ 2014 M OT I ON F OR RE HE AR I NG F I L E D: M ANDAT E I S S UE D:
B E F O R E W A L L E R , C . J. , L A M A R A N D P I E R C E , JJ. LAM AR, J UST I CE, FOR TH E COU RT: ¶1. R i verbend U t i l i t i es , I nc. , chal l enges t he M i s si ssi pp i D epart m entof E nvi r onm ent al Q ual i t y P erm i tB oar d’ s deci s i on t o gr antt w o gr oundw at erw i t hdr aw al perm i t s t o t he H arr i s on C ount y U t i l i t y A ut hor i t y. F i ndi ng no err or , w e af f i r m t he Per m i tB oar d’ s deci s i on.

### The Harris on CountyU til it y Authorit

y cons is ts of s eve n me mbe rs : t he m ayor s of 1 

### Bil oxi, D’Iber

vil le , Gul fport, Long Beach, an d Pas s Chris ti an and two m em ber s f rom the Bo ard o f Superv isors. M iss. C o d e A n n . § 4 9 -17 -70 3 (R ev . 2 0 1 2 ). 2 

### 2

F ACT S AND P ROCE DURAL HI S TORY ¶2. A l t hough t he i s s ues bef or e t hi s C our t ar e l i m i t ed, w e f i nd t hat a f

actual and hi s t or i cal backgr ou nd i s he l pf

ul i n u nd e r s t a nd i ng t he i s s ue s pr e s e nt e d f orr e s ol ut i on . Fol l ow i ng H ur r i cane K atr i na, G overnorH al ey B arbour“di r ect ed thatt he M i s s i s s i ppi D epart m entof E nvi r onm ent al Q ual i t y ( M D E Q ) devel op a r egi onal u t i l i t y pl an t o r ecomm end s hor t - and lo n g -te rm im p ro v e m e n ts fo r w a ter , w a ste w a ter a n d sto rm w a ter in fra stru c tu re d e v e lo p m e n t” in th e C o u n ties o f G e o rg e , H a n c o c k , H a rriso n , Ja c k so n , P e a rl R iv e r, an d S to n e (th e G u lf R egi on)
. A s a r es ul t , M D E Q contr act ed w i t h t he M i s s i s s i ppi E ngi neer i ng G r oup, I nc. ( M E G ) i n A pr i l 2006 t o devel op t he M i s s i s s i ppi G ul f R egi on W at erand W as t ew at erPl an ( t he Pl an)
. O n A pr i l 18, 2006, t he M i s s i s s i ppi G ul f C oas tR egi on U t i l i t y A ct( t he A ct ) w as
s i gned i nt o l aw w i t h the purpos e of c ons ol i dat i ng “ w at er , w as t ew at era nd st ormw at er
s ervi ces i n or dert o r educe cos t s , prom ote r es i l i ence i n t he eve ntof a di s as t er , i m pr ove the q u ali ty o f th e n atura l env ir o n m en t, an d im p rov e the p lann ing a n d d eli v ery o f qu ali ty w ater,
w as t ew at erand s t or m w at ers ervi ces ” w i t hi n the G ul f Regi on. M i s s . Code A nn. § 49- 17- 703 (R e v . 2 0 1 2 ); s ee M iss C o d e A n n . § § 4 9 -1 7 -7 0 1 to -7 7 5 (R e v . 2 0 1 2 ). T o fa c ili tate its purpos es , t he A ctcr eat ed the G eor ge, H ancoc k, H arr i s on, J acks on, Pea r l Ri ver , a nd St one 1 C ou nty U t i l i t y A uthori t i es. 2 ¶3. I n de vel opi ng the Pl an, M D E Q a nd M E G w orked w i t h st akeh older s i n the l ocal
comm uni t i es i ncl udi ng t he “c ount y ut i l i t y author i t i es , publ i c of f i ci al s , . . . l eade r s hi p f

r om

### The s tateage nci es prim arily involve d in r evi ewi ng the Plan we retheMDEQ Off ic e 3 

### of Po l luti onCo ntr oland

theMi s s i s s ipp iDepartm e nt of He a l th. Ne i the r

a ge nc y r e vi e ws app lication s for g roundwater w ithdrawal p ermits. Rive rbe nd di d not

object to W-13 ’ 

### s or

W-15’ s de si gn during thePlan’s publi c- 4 

### app rov al pro cess. 3 th e p riv a te s e c to r, an d sta te a n d re g io n a l ag e n c ies ” in o rd e r to id e n tify a n d p rio ritize th e G u lf R egi on’ s “ m os tc r i t i cal w at er , w as t ew at er , a nd s t or m w at eri nf r as t ructur e needs
. ” “[ O ] ver 300 pr oj ect s w er e i dent i f i ed thataddr es s ed the per cei ved i nf r as t ructur e nee ds t hr oughoutt he G u lf R e g io n ,” in c lu d in g p rojec ts W -1 3 a n d W -1 5 in H a rriso n C o u n ty . W -1 3 w a s to c re a te a “w at ersuppl y s ys t em t o s erve the ar ea nort h of I
- 10, t he D eLi s l e C om m uni t y, and the ci t i es of Pas s C hr i s t i an and Long B each.” W -15 w as t o cr eat e a “ w at ers uppl y s ys t em fr om L o rra in e -C o w a n R o a d a re a in N o rth G u lfp o rt to L y m a n C o m m u n ity .” T h e H a rriso n C o u n ty U t i l i t y A ut ho ri t y ( H C U A ) r ece i ved l ocal engi neer i ng i nputf orW
- 13’ s conce ptual des i gn f r om B r ow n and M i t chel l E ngi neer i ng, I nc. , and f orW
- 15’ s conce ptual des i gn f r om K nes al E n g inee ri n g S erv ices (K E S ). ¶4
. A fte r a dra ftof th e P lan w as p u b li sh ed i n N o v em b er 20 0 6 , “a tw e n ty -d a y p u b lic
c o m m e n t pe rio d w a s p ro v id e d , d u rin g w h ich ti m e thr e e p u b lic m e e tin g s w e re c o n d u c ted in t he G ul f R egi on [ and i ] nputfr om t hi s publ i c com m entproc es s subs equent l y w as i nt egr at ed i nt o t he Pl an. ” The Pl an ul t i m at el y w as adopt ed by the U ni t ed St at es D epart m entof H ous i ng and U rban D evel opm enti n 2007 and i t s adopt i on w as notl egal l y chal l enged. 3 ¶5 . T h e a p p rov ed d esig n s for W -13 an d W -15 co v er p arts of R iverb en d U ti li ti es, Inc . ’s ( R i verbend) c e rtifica te d s e rv ic e a re a . R iv e rb e n d is a p riv a tely o w n e d , p u b lic u til ity 4 company t hathas t he exc l us i ve r i ght“t o pr ovi de w at ers ervi ces and w as t ew at ert r eatm ent5 

### River bend Uti li ti es , Inc . v. Miss. Envt

l. Quali ty Per mit Bd. , No. C2401-10- 01275, (Harris on County Chance ry Cour t, 1st Judi ci alDis tric t, Januar

y 19, 2012)
. See Miss. C od e Ann. § 77 -3-1 2 (R ev. 2 00 9) (statin g “[a] certificate o f public 6 

### conven ience an d n ecessity issu ed b yth e P ub lic Serv ice Co mmissionauth orizin g p ub lic utilityservices to o r for th e public fo r comp ensatio n inan area g rants anexclu sive rig ht to thepubli c util it

y to providethat s er

vic e in thece rtif

ic at ed are a” ). Acco rding t o the Mis si ss ippiSec re tary of

Statewebs it e, Rive rbe nd Uti li ti es , Inc. , wa s c re at ed on Nove mbe r 1, 1995. It

has had i ts ce rtif

ic at e s inc e at l ea st

1996. See Mis s. Code Ann. § 51-3- 5 (Re v. 2003)
. 7 

### The Pe rm it

Board was cr eate d: 8 

### [F] or the pur

poseof i ss uing, rei ss uing, modif ying, re voking or

denying, unde r thecondi ti ons, li mi tati ons and exe mptions pre sc ribed in Sec ti on 49-17- 29: ( a) per mi ts to c ontrol or

pre vent thedis chargeof c ontaminant s and was te s into t he air and wat er s of

thest at e; (b) per

mits requir ed unde r the Sol id Wa st es Dis posa l Law of 1974 ( Title17, Cha pte r 17) ; ( c) per

mits requir ed unde r 4 w i t hi n an appr oxi m at e tw enty- t hr ee s quar e mi l e ar ea ge ner al l y cent er ed att he i nt er s ect i on of County Fa r m R oa d a nd H i gh w a y 5 3 i n Har r i s on County, M i s s i s s i pp i , ” pur s uantt o a
cert i f i cat e of publ i c nec es s i t y and conven i ence f r om t he M i s s i s s i ppi Publ i c Servi ce C om m i s s i on. 5 ,6 ¶ 6
. H C U A w a n ted to p la c e tw o w e lls o n la n d th a t i t o w n e d w h ic h w a s lo c a ted in R i verbend’ s cert i f

i cat ed ar ea a s a means of pr ovi di ng w at ert o t he i nf r as t ructur e cr eat ed by pr oj ect s W
- 13 and W
- 15. H C U A w as r equi r ed t o getperm i t s f ort he w el l s f

r om t he M i s s i s s i ppi D epart m entof E nvi r onm ent al Q ual i t y O ff i ce of L and and W at erR es our ces ( M D EQ
- O LW R)
. H CU A s ub mi t t e d the r e qu i r e d a pp l i c a t i on s , w hi c h Ri ve rbe nd t hen 7 p ro te s te d
. ¶7. G r oundw at erw i t hdr aw al perm i t s a r e i s s ued by a Perm i tBoar d c r eat ed by Sect i on 49- 17- 28 of t he M i s s i s s i ppi C od e. A hear i ng w as hel d bef or e the Perm i tB oar d on O ct ober 8 ,9

### Sec ti ons 51- 3-1 through 51-3- 55; ( d) wate r qua li ty c erti fi cati ons r equire d by

se ction 401 of

thefe der alCle an Wate r Ac t; and ( e) al l othe r pe rm it s wi thin the juris dic ti on of the Pe rm it Board. Mis s. Code Ann. § 49-17- 28(1) (Re v. 2012)
. The Pe rm it

Board cons is ts of 9 

### [T] he Chi ef

of the Bur ea

u of Environm ent alHea lt h of the St at e Board of Hea lt h, or his desi gnee ; theExecutiveDir ec tor of the Departm ent

of Wi ldl if

e, Fis herie s and Par

ks, or hi s de si gnee ; theHead of the Of fi ceof Land and Wate r Res ourc es of the Departme nt of Environme nta l Qual it y, or his des igne e; the Super vis or of theStateOil and Gas Board, or his des igne e; theExec uti ve Dir ec tor of the Departme nt of MarineRe source s, or hi s de si gnee ; t he He ad of theOff ic e of Geol ogy and EnergyR esourc es of the Departm ent of Environme nta l Qua li ty, or hi s des igne e; the Comm is si oner of Agric ult

ureand Co mmerce, or h is design ee; a retired pro fession al engin eer kn ow ledg eable in theenginee ring of wat er

well s and wat er

supply sys te ms , t o be a

ppoint ed by the G ov erno r for a term co ncurrent w ith th at of th e Go vern or an d until h is suc ce ss or is appoint ed and qual if ie d; and a re tire d wate r we llcontra ct or, to be appointe d by theGovernor for a te rm concur re nt wit h that of theGover

nor and unti l hi s s uc c e s s or

i s a pp oint e d and

qu a l i f i e d. Th e r e t i r e d p r of

e s s i on al eng ineer and the r etir ed wate r we llcontra ct or s hal l only voteon matt er s pertain ing to th e Office o f Lan d an d W ater Reso urces. Mis s. Code Ann. § 49-17- 28(1) (Re v. 2012)
. 5 1 3 , 2 0 0 9 , fo llo w in g w h ich th e P e rm it B o a rd g ra n ted H C U A ’s p e rm it ap p lica tio n s. P e rm it M S- G W
- 16614 ( Per m i t14) author i zed a w el l t hatw oul d pr ovi de w at ert o W
- 13 ’s i nf r as t ructur e w hi l e Perm i tM S- G W
- 16631 ( Per m i t31) author i zed a w el l t hatw oul d pr ovi de
w at ert o W
- 15’ s i nf

r as t ructur e. R i verbend as ked t he Per m i tBoar d t o r econs i deri t s deci s i on and r eques t ed a f

ul l evi dent i ary hear i ng. O n D ece m ber11, 2009, the P erm itB o ard not i f i ed t he part i es t hata f

ul l evi dent i ary hear i ng w as s etf orM ar ch 9, 2010.

### Crawford has bee n a r egi st er ed profe ss iona l ge ologi st in Mi ss is sippi s ince 1998. 10 

### He wa s e mpl oyed wi th MDEQ f or twenty-f

our ye ar s and was with MDEQ-OLWR for fi ft ee n of thoseye ar s. He is the as si st ant dir ec tor , and has pre vious ly be en the dire ct or, of MDEQ-OLWR. His prim ar y r es ponsibil it

y i s to r evi ew and is suegroundwate r wi thdrawa l per mi ts . Heal so previ ously se rve d as Chief of MDEQ’s Groundwat er Planning Branc h and as a hydrogeol ogis t and Chie f of MDEQ-OLWR’ s pe rm itting branch. Oak ley is a reg istered p rofessio nal g eolo gist inthe S tate of M ississipp i. Prio r to h is 11 

### cons ult ation wi th HCUA, Oakl ey wa s employed by the U. S. Ge ologi ca l Sur vey’ s Wate r Reso urces D ivisio n fo r thirty -six y ears. H e is also a memb er o f th e M ississipp i Water W ell Contrac tor s As soci ation, theMis si ss ippiGeol ogic alSoci ety, the Nati onalGround Wate r Asso ciation , andthe M ississipp i Water R esources Adviso ry C ouncil. Ell iot is a r egi st er ed profe ss iona l e ngine er in Mi ss is sippi, Loui si ana , and Ke ntuc ky 12 

### wi th m or e than f

or ty- f i veye ar s e xp e ri e nc e a s aprof e s s i on a le ng i ne e r

and ci ty pl ann e r . He was an e ngine ering of

fi ce r wi th t

he U. S. Navy and ha s s er ved a s the CEO, principal enginee r, and c hie f pl anne r of Dive rs if ie d Consultants , Inc. Kn e s a lEn gine e ri ng Servic e s , I nc . , wa s r e t a i ne d b y M DE Q 13 

### as a local en gin eer to provi de input into t

he Pl an. Knesal and Fis her

provi ded their te stim ony li ve, as the y wer e not subpoe nae d by 14 

### Rive rbe nd unti l Marc h 3, 2010. 6 ¶8. M D E Q , H C U A , an d R i verben d al l su b m it t ed pref i l ed t est i m on y t hroug h aff i dav i t s. M DEQ s u b mi t t e d t e s t i mo n y f r o m J a mi e Cr a wf

o r d , t h e a s s i s t a n td i r e c t o ro f M DEQ
- OLW R. 10 HC UA p r e s e n t e d t e s t i mo n y f r o m W i l l i a m T . Oa k l e y , a c o n s u l t i n g h y d r o l o g i s tf o rHC UA, 11 and M ar l i n L adner , t he vi ce pr es i dentof H C U A
. R i verbend pr es ent ed t es t i m ony f r om St even D ay, t he pr es i dentand co- ow nerof R i verbend, and J ames “ J i m ” El l i ot , a cons ul t i ng ci vi l engi neerforR i verbend. W i l l i am “B i l l ” K nes al , a cons ul t i ng ci vi l engi neerf orK nes al 12 E ngi neer i ng Ser vi ces , I nc. , and Trudy Fi s her , M D E Q ’ s e xecut i ve di r ect or , w er e al s o cal l ed 13
as w i t nes s es by R i verbend. 14 ¶9. K nes al t es t i f

i ed t hat he pr opos ed an al t ernat i ve des i gn f or W
- 15 t hat w oul d nothave pl ace d w el l s i n R i verbend’ s cert i f i cat ed ar ea. K nes al c l ai m ed the or i gi nal conce ptual des i gn

### 7

w a s a c c e p ted in ste a d o f h is a ltern a tiv e d e sig n s o th a t a f e d e ra l fu n d in g d e a d lin e c o u ld b e m e t. T o t he contr ary, Fi s hert es t i f i ed thatt he conc eptual des i gn w as s el ect ed f oreng i neer i ng
reas on s and thatt he f

eder al f undi ng de a dl i ne pl a ye d n o r ol e i n W
- 15 ’ s de s i gn s e l e c t i on. M D E Q and H C U A repea t edl y obj ect ed t o K nes al ’ s and Fi s her ’ s t es t i m ony r egar di ng t he
s el ect i on of

W
- 15’ s des i gn on t he gr ound of r el evan ce. T he hea r i ng of f i ceral l ow ed R i verbend t o pur s ue i t s t heory butul t i m at el y found thatt he appr oval of t he Pl an and the
s el ect i on of

W
- 15’ s des i gn w er e i r r el evantt o t he appr opr i at enes s of t he i ssuance of

t he g r o u n d wa t e rwi t h d r a wa l p e r mi t s t o HC UA. ¶1 0. A t t he hea r i ng’ s conc l us i on , the Pe r mi tBoa r d a f f i r med i t s deci s i on t o i s s ue t he perm i t s t o H C U A and l at erdet ai l ed i t s r eas oni ng i n a t en- page Fi nd i ng s of Factand C oncl us i ons of

L aw deci s i on. R i verbend appe al ed the Perm i tB oar d’ s deci si on t o t he H arr i s on Count y Chancery Court
. A f t erhe ar i ng or al a r gum ent s , t he cha ncery cour taf f i r m ed t he Perm i tB oar d’ s deci s i on. Fol l ow i ng t he deni al of i t s m ot i on f

orr econs i der at i on, R i verbend appe al ed t o thi s Courta nd r ai s ed t he f ol l ow i ng i s s ues , w hi ch have been r es t at ed f orpurpos es of

cl ar i t y: I. W h e th e r th e P e rm it B o a rd ’s d e c isio n to g ra n t th e H a rr iso n C o u n ty U t i l i t y A ut hor i t y t w o gr oundw at erw i t hdr aw al perm i t s i s s us t ai nabl e. II. W h e th e r th e p e rm its g ra n ted to th e H a rriso n C o u n ty U til ity A u th o rity vi ol at e R i verbend’ s cert i f i cat e of publ i c nec es s i t y and conve ni ence f r om t he M i s s i s s i ppi Publ i c Servi ce Com m i s s i on. I I I W hethert he Perm i tB oar d err oneous l y excl ud ed docum ent s and t es t i m ony f

r om t he M ar ch 9, 2010, evi dent i ary hear i ng. ¶11. Fi ndi ng no er r or , w e af f i r m t he deci s i ons of

t he H arr i s on C ount y C hance r y C our t and t he Perm i tB oar d.15 M iss. C o d e A n n . § 4 9 -17 -29 (5)(b ) (R ev . 2 0 1 2 ).



### W.C . Fore v . Mi ss. De p’t of Re venue , 90 So
. 3d

57 2, 57 7 ( Mi s s . 20 12 ) ( i nt e rna l 16 

### quotati ons and ci tati ons om itte d). Id. 17Mis s . De

p ’ t o f E n v tl . Qu a lit y v . We e ms 18 , 6 5 3 S o . 2 d 2 6 6 , 2 8 0 -81 (M iss. 1 9 9 5 ).
19 Si er r a Cl ub v. Mis s . D ep’ t of E nvtl . Q ualit y Perm it B d. , 9 43 S o. 2 d 6 73 , 68 1 (M i ss. 2 0 0 6 ). 

### 8 L A W A N D A N A L Y S IS ¶12. A ppeal s f

r om t he Per m i t B oard “shal l be cons i der ed onl y upon t he r ecor d as m ade b e fo re th e P e rm it B o a rd .” G e n e ra lly , 15 “tr i al cour t s and appel l at e cour t s w i l l r ever s e the deci s i on of

an admi ni s t r at i ve agenc y onl y i f the dec i s i on ( 1) w as uns uppor t ed by s ubs t ant i al evi dence ; ( 2) w as arbi t r ary and ca pr i ci ous ; ( 3) w as beyond the pow erof the admi ni s t r at i ve
a g e n c y to m a k e ; o r ( 4 ) v io la te d th e c o m p la in in g p a rt y ’s s ta tu to ry o r c o n s titu tio n a l r ig h t.” 16 H ow ever , an age ncy’ s i nt erpr et at i on of a gover ni ng s t atut e i s s ubj ectt o de novo r evi ew as

“ [t] h e u lti m a te a u th o rity a n d re sp o n sib ili ty to in ter p re t th e la w , in c lu d in g s tatu tes , res ts w ith th is C o u rt .” 17 ¶13. Sub st anti al ev i den ce i s “s om ethi ng l es s t han a pr eponder ance of t he evi dence but
m or e than a s ci nt i l l a orgl i m m er . [ T hi s C our t ] i s conce r ned onl y w i t h t he r eas onabl enes s of th e a d m in is tr a tiv e o rd e r, n o t its c o rr e c tn e s s .” 18 [ A ] n a gency m us tc l ear l y e xpl ai n i t s f actf i ndi ng and r eas oni ng f

ora dec i s i on i n or derto faci l i t at e r evi ew by t he court s . C oncl us or y r emar ks al one do not equi p a cour t t o r evi ew t he age ncy’ s f i ndi ngs . A ccor di ngl y, f i ndi ngs on f actual is sues m us tbe s peci f i c enough f

ort he r evi ew i ng cour tt o det erm i ne w hethert he dec i s i on i s s uppor t ed by s ubs t ant i al evi dence
. 1920 

### Sierra Club , 943 So. 2d at 681 (inte rna l c it ations omi tt ed)
. 21 McG ow an v. Mis s . State O il & G as B d. , 6 0 4 S o . 2 d 3 1 2 (M is s . 1 9 9 2 ), cer tdeni ed , 5 0 6 U .S
. 1 0 5 2 , 1 1 3 S . C t. 97 6 , 1 2 2 L . E d . 2 d 1 3 0 (1 9 9 3 ); s ee al s o Falco L im e, Inc. v. Mayor an d A lderm en of Cit

y of V i cksbu rg , 836 So. 2d 711, 721 ( M i s s . 2002) (not i ng t hat “[ w ] hethera dec i s i on i s arbi t r ary and capri ci ous s eems t o have mel t ed s om ew hati nt o t he s ubs t ant i al evi dence s t and ard .
. . a hol di ng w hi ch i s s uppor t ed by s ubs t ant i al evi dence ca n n o t be a rbit rary an d ca p ri ciou s”) (interna l ci tat ion s o m itted). 

### 9 ¶1 4. A deci s i on “ i s a rbi t a r y orc a pr i c i ou s i f the a ge nc y e nt i r e l y f

ai l ed t o cons i der an i m por t antas pectof

t he pr obl em, orof

f er ed an e xpl anat i on f

ori t s de ci s i on thatruns count er t o t he evi dence bef

or e the age ncy ori s s o i m pl ausi bl e thati tcoul d notbe as cr i bed t o a d if fe re n c e in v ie w o r th e p ro d u c t o f a g e n c y e x p e rt is e .” 20 “ [ U ] nr eas oned pr ef er ence of one by def i ni t i on i s arbi t r ary . . . . W e nee d t o know s om ethi ng of t he cos t s and r i s ks as s oci at ed
w i t h eac h of

t hes e conf

l i c t i ng i nt er es t s bef

or e w e ca n on j udi ci al r evi ew i nt el l i gent l y cons i der
w hethert he B oar d act ed arbi t r ar i l y orcapr i ci ous l y or w hetheri t s deci s i on w as s uppor t ed by
s u b s ta n tia l e v id e n c e .” 21 I. T h e Iss u a n ce o f H a rr ison C o u n ty U ti li ty A u th o rity’s G ro u n d w a ter P er m it s ¶ 1 5 . T h e p a rt ie s d is a g re e a b o u t th e re q u ire m e n ts fo r a g ro u n d w a ter w ith d ra w a l p e rm it. G r oundw at erw i t hdr aw al perm i t s ar e governed by Ti t l e 51, C hapter3 of the M i s s i s s i ppi C ode, nam el y Sect i ons 51- 3- 1 and 51- 3- 13. Sect i on 51- 3- 1 of t he M i s s i s s i ppi C ode dec l ar es th e S tate ’s p o licy o n th e c o n se rv a tio n o f w a ter re so u rc e s: I tis h er eby dec l ar ed thatt he gene r al w el f ar e of t he peopl e of

t he St at e of M i s s i s s i ppi r equi r es t hatt he w at err es our ces of t he s t at e be putt o benef i ci al us e t o t he f

ull estex t ent of

w hi ch they ar e ca pabl e, t hatt he w as t e or unr eas onabl e us e, orunr eas onabl e met hod of us e, of w at erbe pr event ed, t hat th e c o n se rv a tio n o f su c h w a ter b e e x e rc ise d w ith th e v iew to th e re a so n a b le and bene f

i ci al us e ther eof

i n t he i nt er es tof

t he peopl e, a nd thatt he publ i c and pr i vat e f unds f ort he pr om ot i on and expa ns i on of t he bene f

i ci al use of

w at er22 M iss. C o d e A n n . § 5 1 -3-1 (R ev . 2 0 0 3 ).
23 M is s . C o d e A n n . § 5 1 -3 -1 3 (R e v . 2 0 0 3 ). 

### Eff ec ti ve Augus t 26, 2013, Mi ss is sippi’s e nvironme nta l r egul ations havebee n 24 

### re numbe re d and r ef

orm atte d purs uant

to t he ame nded Adm ini strati ve Proce dure s Ac t pa ss ed byth e st at e legislature. Th e regu lation s hav e no t beensub stantiv ely ch ang ed. Inord er to cor re spond wi th t

he r ec ord and theparti es ’ bri ef s, this opinion re fe re nce s there gulati ons by their fo rmer citation s. Th e newcitation s will also be p rov idedin th e foo tno tes. 10 r es our ces s hal l be i nves t ed t o t he end thatt he bes ti nt er es t s and w el f ar e of t he peopl e ar e s erved. 22 A nd S ect i on 51 -3- 13 st at es: U se o f w a ter s o f th e sta te s h a ll n o t co n stitu te a b so lu te o w n e rsh ip o r a b so lu te r i ght s of us e of s uch w at er s , buts uch w at er s s hal l r emai n s ubj ectt o t he p rin c ip le o f b e n e fic ial u se . It sh a ll b e th e d u ty o f th e b o a rd to a p p ro v e a ll appl i cat i ons m ade i n s uch f or m a s s hal l m eett he r equi r ement s of t hi s chapt er and s uch rul es and r egul at i ons as s hal l be pr om ul gat ed by the boar d and w hi ch c o n tem p late th e u til iza tio n o f w a ter fo r b e n e fic ial p u rp o se s, w ith in re a so n a b le lim itatio n s, p ro v id e d th e p ro p o se d u se d o e s n o t p re ju d icia lly a n d u n re a so n a b ly af f ectt he publ i c i nt er es t . I f i ti s det erm i ned thatt he pr opos ed us e of t he w at er so u g h t t o b e p erm itted is n o t f o r be n eficial p u rpo ses, i s n o t con sist en t w ith sta n d a rd s e sta b lish e d b y th e c o m m iss io n , o r is d e trim e n tal to th e p u b lic i nt er es t , i ts hal l be the duty of t he boar d t o ent eran o r derr ej ect i ng s uch appl i cat i on orr equi r i ng i t s m odi f i cat i on. 23 A l i s tof f act or s f ort he Perm i tB oar d t o c ons i derw hen cons i der i ng a gr oundw at erw i t hdr aw al perm i ti s notpr ovi ded by s t atut e orr egul at i on. 24 ¶16. R i verbend f

ocus es on Sect i on 51- 3- 1’ s m andat e “that t he w as t e or unr eas onabl e us e,
orunr eas onabl e met hod of us e, of w at erbe pr event ed. ” I tar gues t hata perm i t shoul d not be i s s ued unl es s t he appl i cants how s ( 1) t hatt her e i s a pr es entneed f ort he w at erand ( 2) t hat t he r eques t ed w el l i s pa r tof the m os te f

f i ci entpl an t o s at i s f

y t he nee d. T he Perm i tB oar d and H C U A fo c u s o n S e c tio n 5 1 -3 -1 ’s m a n d a te “ th a t t h e w a ter re so u rc e s o f th e sta te b e p u t to

### “Be nefic ia l us e”is def ine d by re gulati on as “the a ppli cati on of wate r, exc luding 25 

### waste of water, to a p urp ose that pro du ces eco no mic o r oth er tang ible o r intan gib le ben efits to t he s tateand i tsci ti ze ns. Such uses include, but arenot l im it ed t o, di ver si ons or withdrawal s f

or publ ic , industri al , or a gri cul turaluse .”Mis s. Dep’ t of Envtl . Qua li ty Land and Wate r Re source s Re g. LW-2( I) (E) , Surf ac e Wat er and Groundwat er

Useand Prote ction (2009), htt p:/ /www. deq. st at e. ms .us /m de q. ns f / pd f / l e ga l_1 1M i s s . Adm i n. Code Pt. 7Ch.1. /$Fi le /11% 20Mis s. %20Admin.%20Code %20Pt. %207%20Ch.%201.. pdf? OpenEl em ent (l as t vi si te d Jan. 29, 2014); Mis s. Admin. CodeR. 11- 7:1. 1(E) (2013)
. Wh eeler v. Miss. Dep’t of

Envt l. Quali ty Per mit Bd. , 85 6 S o. 2 d 7 00 , 70 4 (M iss. 26 

### Ct. App. 2003)
. Miss. C od e Ann. § 51 -3-1 3 (R ev. 2 00 3) (autho rizing the P ermit Bo ard to establish 27 

### re quir em ent s f

or wate r pe rm it s by r egul ation s o long a s the r egulation s “contem platethe uti li zati on of water f

or be nef ic ia l pur pose s, within r ea sona

bleli mi tati ons, provi ded the propos ed us e doe s not

pre judi ci al ly and unre as onably af fe ct thepubli c inte re st ”)
. SeeMis s. Dep’ t of

Envtl . Qua li ty Land and Wate r Re source s Re g. LW-2, Surf ac e 28 

### Wat e r and Groundw a t e r Us e a n d Pr o t e c t ion( 2009), http ://ww w.d eq.state.ms.u s/mdeq .nsf/p df/leg al_1 1M iss .Adm in. CodePt .7Ch. 1./ $Fil e/ 11% 20Mis s. %20Admin.%20Code%20Pt .%207%20Ch. %201.. pdf? OpenEl em ent (l as t vi si te d Jan. 29, 2014); Mis s. Admin. CodeR. 11- 7:1. 1-1. 7 (2013)
. 11 benef i ci al us e t o t he f

ul l estex t ent of

w hi ch they ar e ca pabl e. ” T hey ar gue thatneed a nd 25 ef f i ci ency ar e i r r el evanta nd t hatt he Perm i tB oar d has onl y t o consi dert he pr opos ed use of t he w at er and t he w i t hd raw al ’s eff ecton t he aq uif

er and ex i st i ng w el l s. ¶ 1 7 . In lig h t o f “ th e p ra c tica l u n d e rsta n d in g th a t a n a g e n c y fa r b e tter u n d e rsta n d s its d a ily
o p e ra tio n s n ee d s tha n the ju d ici ary ev er c o u ld,” the P erm itB o ard w as g iven statu tory 26 author i t y t o es t abl i s h r equi r ement s f orw at erpe r m i t s by r egul at i on. T he Per m i tB oar d has 27 pr opounded s ever al gr oundw at err egul at i ons w hi ch out l i ne, butdo notdef i ni t i vel y es t abl i s h,
w h a t th e P e rm it B o a rd m u st c o n sid e r w h e n r e v iew in g g ro u n d w a ter w ith d ra w a l p e rm it appl i cat i ons . R egul at i on L W
- 2( I I ) ( C ) i dent i f i es t he bas i c r equi r ement s fora gr oundw at er 28
w i t hdr aw al perm i tappl i cat i on:

### Mis s. Dep’ t of Envtl . Qua li ty Land and Wate r Re source s Re g. LW- 2( I I ) (C) , Sur fa ce 29 

### Wat e r a n d G r o u n d w a t e r Us e a nd Prot e c t i on (2009) , htt p:/ /www. deq. st at e. ms .us /m deq. nsf /pdf /l ega l_11M i s s . Adm i n. Co de Pt . 7C h. 1. / $F i l e / 11% 20Mis s. %20Admin.%20Code %20Pt. %207%20Ch.%201.. pdf? OpenEl em ent (l as t vi si te d Jan. 29, 2014); Mis s. Admin. CodeR. 11- 7:1. 2(C) (2013)
.

30 I d. 

### Mis s. D ep’ t of

Envtl . Qua li ty Land and Wate r Re source s Re g. LW- 2(I V)( B), 31 

### Surf a c e Wa t e r a nd Gr o u n d w a t e r U s e a n d P r o t e c t i on (2009) , htt p:/ /www. deq. st at e. ms .us/mdeq.n sf/pd f/legal_ 11 Miss.A dmin .Co deP t.7C h.1 ./$F il e/ 11% 20Mis s. %20Admin.%20Code %20Pt.%207%20Ch. %201.. pdf? OpenEl em ent (l as t vi si te d Jan. 29, 2014); Mis s. Admin. CodeR. 11- 7:1. 4(B) (2013)
. Mis s. Dep’ t of

Envtl . Qua li ty Land and Wate r Re source s Re g. LW-2( IV) ©, Sur fa ce 32 

### Wat e r and Gr oundwat e r Use a n d P r o t e c t ion ( 2009), htt p:/ /www. deq.state.ms.us/mdeq .nsf/p df/leg al_1 1M iss.Admin.C od ePt.7Ch. 1./ $Fil e/ 11% 12 ( 1) T he appl i cat i on m us tcompl et el y and ac cur at el y descr i be t he purpos e f or the p rop o sed u se o f w ater; (2) S uch use m ustno tbe p rohi bit ed b y st at e o r f ederal st atutes o r r egu l at i on s; and ( 3) T he pr opos ed s our ce of w at erm us tbe f

r ee of C om m i ssi on -i m pos ed r es t r i ct i ons t hatpr ecl ude pr oces s i ng of t he appl i cat i on. 29 R egul at i on L W
- 2( I I ) ( C ) goes on t o s t at e that“[ a] ppl i cat i ons s hal l be compl et ed us i ng
m axi m um vol um e of

w at err equi r ed, es t i m at ed dat es forini t i al us e of t he w at er , and
es t i m at ed val ues forw i t hdr aw al or di ver s i on ra t es . ” T he popul at i on’ s need and ef f i ci ency 30
ar e notm ent i oned. S ect i on f ourof R egul at i on L W
- 2 s peci f i cal l y addr es s es gr oundw at er
w i t hd raw al s:

• L W
- 2( I V ) ( B ) pr i or i t i zes t he us es of gr oundw at erw i t hd raw al s as f ol l ow s : 1) publ i c s uppl y, 2) i ndus t r i al / com m er ci al , 3) l i ves t ock, 4) enhan c e mento f

wi l dl i f e h a bi t a ta nd o t he rr e c r e a t i on a l u s e s , a nd 5) otheruses. 31

• L W -2 (IV )(C ) a d d re ss e s w e ll sp a c in g a n d p ro v id e s m in im u m a c c e p tab le s paci ng di s t ance s and a means t o r eques tan exe m pt i on f r om t he spaci ng requi rem ents . 32

### 20Mis s. %20Admin.%20Code %20Pt. %207%20Ch.%201. .pdf ?OpenEl em ent

(l as t vi si te d Jan. 29, 2014); Mis s. Admin. CodeR. 11- 7:1. 4(C) (2013)
. Mis s. Dep’ t of

En vtl . Qua li ty Land and Wate r Re source s Re g. LW- 2(I V)( D), 33 

### Surf a c e Wa t e r a nd G r o u n d w a t e r U s e a n d P r o t e c t i on (2009) , htt p:/ /www. deq .state.ms.us/md eq.n sf/pd f/legal_ 11 Miss.A dmin .Co dePt .7Ch. 1./ $Fil e/ 11% 20Mis s. %20Admin.%20Code %20Pt. %207%20Ch.%201.. pdf? OpenEl em ent (l as t vi si te d Jan. 29, 2014); Mis s. Admin. CodeR. 11- 7:1. 4(D) (2013)
.

34 See 

### Mis s. Dep’ t of

Envtl . Qua li ty Land an d Wate r Re source s Re g. LW- 2(I I) (G) , Surf a c e Wat e r and Groundwat e r Us e a n d Pr o t e c t i o n ( 2009) , http ://ww w.d eq.state.ms.u s/mdeq .nsf/p df/leg al_1 1M iss .Adm in. CodePt .7Ch. 1./ $Fil e/ 11% 20Mis s. %20Admin.%20Code%20Pt .%207%20Ch. %201.. pdf? OpenEl em ent (l as t vi si te d Jan. 29, 2014); Mis s. Admin. CodeR. 11- 7:1. 2(G) (2013)
. 13 • L W -2( IV )( D ) i den t i fi es “once
- thr ough, non- contactcoo l i ng w at er” a nd “ un c on tr ol l e d f

r e e - f l owi ng w e l l s ”as nonbenef i ci al us es of

w at er . Itals o s t at es t hat“[ t ] he Per m i tB oar d m ay det erm i ne thatot her dis charges/ w i t hd raw al s of gr ou nd w at er ar e no tben efi ci al uses, cons t i tut e w as t e, and/ orar e pr ohi bi t ed t o pr ot ectt he publ i c i nt er es tand may de ny p e r mi t s b a s e d o n s u c h d e t e r mi n a t i o n s . ” Not a b l y , LW
2( I V ) ( D ) does nots t at e thata l ack of need oref

f i ci ency c ons t i tut es w as t e. “W as t e” i s notot herw i s e def i ned by s t atut e orr egul at i on. 33 T he s t ructur e of

t he G r oundw at erW i t hdr aw al s s ect i on i s t el l i ng. I tcont ai ns s ubs ect i ons on benef i ci al us e, w el l
- s paci ng , an d l i m i t at i ons on w at erus es butno s ect i ons on need or effici en cy . A lso, L W -2 d o es n o t l ista c h an g e in th e p o p u lat ion ’s ne ed s as a reaso n t o m o d if y a perm i t . M or eover , M D E Q
- O L W R di d nothave the author i t y t o appr ov e o rr ej ectt he

34 engi neer i ng des i gns f

orW
- 13, W
- 15, orany otherpr oj ectunde rthe Pl an. D es i gn deci s i ons
w er e made by t he O f

f i ce of Pol l ut i on C ont r ol and the M i s s i s s i ppi D epart m entof H eal t h. ¶ 1 8
. In its F in d in g s o f F a c t a n d C o n c lu sio n s o f L a w , the P e rm it B o a rd sta ted th a t it is
r equi r ed t o consi der onl y t he f ol l ow i ng f

act or s w hen r evi ew i ng a gr oundw at erw i t hdr aw al p e rm it:

### 14

[ W ] hethert he appl i cantow ns orcontr ol s t he l and upon w hi ch the gr oundw at er w i t hdr aw al w el l s w i l l be pl ace d,
. . . how t he perm i tappl i cantpl ans t o us e the w at er , . . . t he am ountof w at erre ques t ed,
. . . w hethert he w el l s w i l l be s pace d i n a mannert o avoi d i nt er f er ence w i t h exi s t i ng w el l s , . . . an d t he pr oj ect ed d raw d o w n o f th e a q u if

er. I n l i ghtof

t he appl i cabl e s t atut es and r egul at i ons , w e f i nd t hatt he f

act or s consi der ed by the Per m i tB oar d t o anal yze gr oundw at erw i t hdr aw al perm i t s ar e r eas onabl e. T h e P erm itB o ard
m ade s peci f

i c f i ndi ngs w i t h r egar d t o eac h of t he f i ve f act or s , and ea ch of

i t s f i ndi ngs w as
s uppor t ed by s ubs t ant i al evi dence
. 1. O w ner s hi p of

L and ¶19. T he Perm i tB oar d f ound t hat“H C U A an d/orH arr i son C ount y ow n t he l and upon
w h ich H C U A w ill in sta ll th e tw o w e lls fo r th e p e rm itt e d g ro u n d w a ter w ith d ra w a l.” T h is fi n d ing w as u n d ispu ted a n d w as su p p o rt ed b y the p refil ed test im o n y o f C raw ford
. 2. U s e of

W at er ¶ 2 0
. T h e P e rm it B o a rd fo u n d th a t “ H C U A p la n s to u s e th e w a te r f o r p u b lic w a te r s u p p ly .” T hi s i s the hi ghes t - r anked benef i ci al us e of

w at er . T he Per m i tBoar d’ s f i ndi ng w as s uppor t ed by t he perm i t s t hemsel ves and the pr ef i l ed t es t i m ony of

C r aw f or d. 3. A m ountof

W at er ¶ 2 1
. Th e P e r mi tBo a r d f o u n d t h a t“ t h e p e r mi t s i s s u e d t o HCU A a l l o w HC UA t o p u mp
w at erata maxi m um r at e of 1, 000 gal l ons perm i nut e . . . [ and] onl y al l ow w i t hdr aw al of up to 3 5 0 ,0 0 0 g a llo n s p e r d a y p e r w e ll. ” T h e P e rm it B o a rd sp e c ifica lly f o u n d th a t “ th e re is
su ffic ien t w a ter in th e a q u ife r to s u p p ly R iv e rb e n d ’s a n d H C U A ’s c u sto m e rs’ n e e d s.” T h is f i ndi ng w as undi s put ed and w as s uppor t ed by the pr ef i l ed r ebu t t al t es t i m ony of C r aw f or d. 4. W el l Spaci ng

### 15

¶22. T he Per m i t B oar d f ound t hat “the i nt ended pl ace m ent of t he H C U A w el l s m eet s t he
r e g u l a t o r y r e c o mm e n d a t i o n s f o rwe l l p l a c e me n t. . . [ a n d ] t h a tt h e p l a c e me n to f th e HC UA
w e lls a t th e p e rm itte d s ite s is a p p ro p ri a te a n d th e re is n o n e e d to re q u ir e f u r th e r s p a c in g .” T hi s f i ndi ng w as s uppor t ed by the pr ef i l ed r ebut t al t es t i m ony of C r aw f or d and the pr ef

i l ed t es t i m ony of

O akl ey. 5. D r aw dow n of

A qui f er ¶ 2 3
. T h e P e rm it B o a rd fo u n d th a t: Spaci ng of

H C U A ’ s w el l s i n t he per m i t t ed l ocat i on s houl d be s uf f i ci ents uch t hataqui f

erdr aw dow n w i l l be ac cept abl e and ther e s houl d be no i nt er f er ence w i t h R i verbend’ s exi st i ng w el l s . M D E Q di d nots peci f i cal l y cons i dert he dr aw dow n caus ed by R i verbend’ s w el l s i n det erm i ni ng t he addi t i onal i m pact of t he tw o H C U A w el l s on t he aqui f er . H ow ever , t he w at erw i t hdr aw al perm i t s R i verbend hol ds f ori t s w el l s ar e f

ora r el at i vely smal l amount of w at er . T hi s a r ea of

H arr i s on Count y s houl d notexper i ence any hea vy aqui f er dr aw dow ns i n t he nea rf utur e. ¶24. T he Per m i tBoa rd w ent on t o say “[t ] here i s no ev i den ce t hat w i t hd raw al of gr oundw at erf

r om t he tw o H C U A w el l s w i t hi n R i verbend’ s cert i f i cat ed ar ea w oul d have a
m at er i al adver s e ef

f ecton t he ava i l abi l i t y of w at eri n t he aqui f

er . ” T his f

i ndi ng w as
s uppor t ed by C r aw f

or d’ s and O akl ey’ s pr ef i l ed t es t i m ony. ¶25. R i verbend r el i es on McG ow an v. Missi ssi pp iS tate O il

& G as B oa rd , 604 So. 2d 3 1 2 (M iss. 1 9 9 2 ), and Mis s is s i ppiState D epar t

m ent of Heal th v. Mis s is s i

ppiB aptis t

Medi cal Center , 6 6 3 S o . 2 d 5 6 3 (M iss. 1 9 9 5 ), t o argue t hat the P erm i tB oard’s Fi ndi ngs of Factand C oncl us i ons of

L aw a re in su ffic ien t to su p p o rt its d e c isio n . B o th c a se s a re d istin g u ish a b le f r om t he one a thand.35 McG ow an , 604 So. 2d at314.
36I d. a t 3 2 0
. 37 I d. 

### Id. at 314. 38
39 Mis s is s i

ppiB aptis t

Medi cal Center , 6 6 3 S o . 2 d a t 5 6 4
. 40I d. at579. 

### 16 ¶2 6. I n McG ow an , M cG ow an appl i ed t o t he O i l and G as B oar d t o r enew hi s e xi s t i ng perm i t s and t o seek is suance of new perm i t s f or several pack erl ess s al t w at er di sposal w el l s. 35 A f t erM cG ow an pr es ent ed hi s cas e, t he B oar d t ook t he m at t erunderadvi s ementand r ece i ved evi dence f

r om i t s s t af

f oppos i ng t he i s s uance of t he perm i t s . M cG ow an w as notnot i f i ed 36 t hath i s appl i cat i ons w er e goi ng t o be oppos ed and w as notgi ven ac ces s t o t he oppos i ng evi dence
. T he B oar d deni ed M cG ow an’ s appl i cat i ons t hr ough a s er i es of or der s t hatf

ai l ed 37 to ex p lai n the b asis for it s d ec isi o n s. In c o n tr ast, R iverb en d rec eive d a fu ll ev iden ti ary 38 hear i ng bef

or e the Perm i tB oar d and a t en- page e xpl anat i on of t he Perm i tB oar d’ s deci s i on. ¶27. I n Mis s is s i

ppiBaptis t

Medi cal Center , R iv e r O a k s H o sp ital a n d th e M iss iss ip p i S tate D ep artm en t of H ea lth a p p ea led the ch an ce ry co u rt ’s rev ersa l of the D ep artm en t of H ea lth ’s deci s i on t o i s s ue R i verO aks a ce r t i f i cat e of need. 39 In a ffi rm ing the c h an ce ry c o u rt ’s d e c isio n , this C o u rt n o ted th a t: [ T ] hi s i s not a cas e w her e the H eal t h O f f i cer , f ace d w i t h conf

l i ct i ng evi dence , ch o se to cre d itthat ev iden ce fav o ri n g ap p rov al of the C O N . R athe r i t app ea rs t o t hi s C our ta s i tuat i on w her e the H eal t h O f f i cers i m pl y chose t o di s m i s s t he overw hel m i ng evi dence i ndi cat i ng t hatcr i t er i a of need w er e notm eta nd t he C O N as a r es ul ts houl d have be en deni ed. 4041 R i verbend U til s . , Inc. v. Mis s . E nvtl

. Q ualit y Perm it B d. , N o . C 2 4 0 1 -1 0 -0 1 2 7 5 , ¶ 15 ( H arr i s on C ounty C hance r y Court , 1s tJ udi ci al D i s t r i ct , f i l ed J anuary 19, 2012) ( quot i ng M i s s . C ode A nn. § 77- 3- 12( 2) ( R ev. 2009) ). 

### 17 T he s ame cannotbe s ai d aboutt he cas e at han d. H er e, conf l i ct i ng evi dence w as pr es ent ed
a b o u t th e e ffe c t an d th e in ten d e d u se o f th e g ro u n d w a ter w ith d ra w a l p e rm its, an d th e m a jo rity of t he evi dence s uppor t ed the Perm i tB oar d’ s de ci s i on. B as ed on the f or egoi ng, w e f

i nd t hat t he Perm i tB oar d’ s deci s i on w as s uppor t ed by s ubs t ant i al evi dence , w as not arbi t rary and
c a p ri c io u s , a n d s h o u ld b e a ff ir m e d
. I I . R i verbend' s C ert i f i cat e of P ubl i c N ece s s i t y and C onveni ence R i verbend ar gues t hatt he Perm i tB oar d’ s deci s i on vi ol at es i t s r i ghtt o be the e x c l u s i v e p r o v i d e ro f

w a t e rs e r v i c e s i n i t s c e r t i f i c a t e d a r e a b e c a u s e th e t wo [ perm i t t ed] w el l s and as s oci at ed w at erm ai ns ar e an “ or i gi nat i on poi nt” of w a t e rs up pl y “ t o o rf

ort he pu bl i c f

orc ompe ns a t i on ” a nd no ta n “ e xt e ns i on” t hr ough i t s cert i f

i cat ed ar ea. R i verbend r el i es on M i s s . C ode A nn. [ §] 77- 3- 1 2 (2 ) w h ich , in s u m , p ro v id e s th a t a u tility sy ste m m a y e x ten d “
. . . it s p lan t, l i nes , orot herf

aci l i t i es i n orthr ough the ce r t i f i cat ed ar ea of

anotherut i l i t y f

or p u rp o se s o th e r th a n p ro v id in g se rv ice s to o r fo r th e p u b lic fo r c o m p e n sa tio n in s u c h c e rt if

ic a te d a re a . . . .” 41 R i verbend’ s cert i f

i cat e of publ i c conve ni ence and nec es s i t y gi ves i tonl y t he excl us i ve r i ght t o sel l w at er i n it s cer t i fi cat ed area. Itdo es not gi ve R i verben d the exclusi ve ri gh tt o acce ss th e g ro u n d w a ter u n d e rly in g its c e rtifica ted a re a . H C U A ’s g ro u n d w a ter w ith d ra w a l p e rm its d o n o t al low H C U A t o sell w ater in R iverb en d ’s ce rt if icated are a, an d n o thing in the rec o rd
su g g ests that H C U A inten d s to d o so . In fa ct, H C U A rep ea tedly ac k n o w ledg es in the re co rd
a n d its b ri e fs th a t it c a n n o t s e ll w a te r i n R iv e rb e n d ’s c e rt if ic a te d a re a . R iv e rb e n d a lso a rg u e s th a t H C U A ’s p lan to in sta ll fire h y d ra n ts a d jac e n t to R i verbend’ s f

i r e hydr ant s i s a s ame ors i m i l ars ervi ce pr ovided by Ri verbend and i s a vi ol at i on of i t s ri ghtt o be an excl us i ve pr ovi derw i t hi n i t s cert i f i cat ed42I d . 43 M is s . C o d e A n n . § 7 7 -3 -1 2 (2 ) ( R e v . 2 0 0 9 ) ( e m p h a s is a d d e d ). 

### 18 a re a . . . . A n y w a ter ta k e n fr o m H C U A fire h y d ra n ts w ill b e w ith o u t c h a rg e to r es i dent s of

R i verbend’ s cert i f

i cat ed ar ea. 42 S e c tio n 7 7 -3 -1 2 p ro h ib its H C U A o n ly from p ro v iding a sim il ar se rvice in R iverb en d ’s
cert i f i cat ed ar ea f

orcom pens at i on . A g a in , n o th in g in th e re c o rd s u g g e sts H C U A in ten d s to

43
us e i t s gr ound w at erw i t hdr aw al perm i t s t o s el l w at eri n R i verbend’ s cert i f i cat ed ar ea f

or compensa t i on. R ather , the r ecor d s ugges t s t hatH C U A i nt ends t o expand i t s r egi onal w at er
s ys t em by bui l di ng w el l s on l and thati tow ns i n R i verbend’ s cert i f i cat ed ar ea a nd s el l i ng
w at ert o cus t om er s out s i de of R i verbend’ s cert i f

i cat ed ar ea. H C U A ’ s pl an i s perm i s s i bl e. ¶28
. R i verbend’ s content i on w i t h H C U A st em s f rom fai l ed n ego t i at i on s bet w een the part i es
re g a rd in g th e tre a tm e n t o f R iv e rb e n d ’s w a ste w a ter . R iv e rb e n d b lam e s H C U A fo r its in a b ili ty t o ge ta w a s t e w a t e rpe r mi tf ori t s c e r t i f

i c a t e d a r e a . M D EQ de ni e d Ri ve rbe nd ’ s w a s t e w a t er p erm itreq u est an d told itto co o rdin ate w ith H C U A
. H C U A re fu se s to trea t R iverb en d ’s
w a ste w a ter u n les s R ive rb e n d a g re e s to b u y “ w h o les a le” w a ter fro m it, w h ich R iv e rb e n d c o u ld t hen m ark up a nd sel l t o the r esi den t s i n it s cer t i fi cat ed area at“ret ai l ” pri ces. ¶29. R i verbend argues t hat t he par t i es ’ w as t ew at er negot i at i ons i l l us t r at e H C U A ’ s i nt ent t o take i t s prop erty

– the exclusi ve ri gh tt o sel l w at er i n it s cer t i fi cat ed area – w i t ho ut j ust compensa t i on. H C U A a nd the Per m i tBoar d c l ai m thatthe part i es ’ w as t ew at ernegot i at i ons
a r e i r r e l e v a n tt o t h e s u s t a i n a b i l i t y o f t h e P e r mi tBo a r d ’ s d e c i s i o n t o i s s u e HC UA two g ro u n d w a ter w ith d ra w a l pe rm its. W e ag re e w ith H C U A an d the P e rm it B o a rd . T h e P e rm it B oar d’ s deci s i on does notvi ol at e any r i ghtof R i verbend and i s af

f i r m ed.

### The MEG s ubpoena co mm ande d it to produce“[ a] ny cor

re sponde nce , e ma il s or 44 

### do cuments of any d escriptio n relatin g to Pro je ct s W -1 3 an d W -15 of th e Mississip pi Gulf Reg ion al Water and Waste water Planof MDE Q, inclu din g but not limited to p lan s, specificatio ns an d d esigndata sh eets, inclu din g b ut no t limited to con ceptu al anddesig n d ata . . . onor b efore M arch 8 [, 20 10 ] at 9:30 a.m.” The s ubpoena s to MDEQ, HCUA, Knes alEnginee ring Se rvi ce s, Inc. , and Brown and Mit che llEngine ering, Inc ., as ked e ac h party “t o produceone or m oreknowle dge pe rs ons on its beh alf” to g ive ev iden ce regard ing : The Gul f Re giona l Wate r an d Was te wat er Plan prepar ed by Mi ss is sippi Engine ering Group; t

he Conc ept

ualDes ign Bookl et

prepar ed by Mi ssissippi Engine ering Group on Proje ct W-13 and W-15; Wate r We llPer mi t Nos . MSGW-16614 and MS-GW-16 631; al l c orr es pondenc e or em ai ls exc hange d betwee n [the s ubpoena ed partie s], HU D, and MDA, re late d to t he f ore going subj ec t m atte r. Th e sub po enas to HC UA , Kn esal En gin eering Serv ices, Inc., an d B rown an d M itche ll Engine ering, Inc. , al so orde re d the parti es t o producet o Ri ver bend the aforem entione d corresp on den ce andemails befo re March8, 2 01 0, at 9 :30 a.m. 19 I I I . T he H eari ng O f f i cer ’ s E vi dent i ary R ul i ngs ¶3 0
. R i verbend s ubpoenaed M i ssi ssi pp i E ng i neeri ng G roup (“M E G ”) on F ebruary 24, 2010, and M D E Q , H CU A , K ne s a l Engi ne e r i ng Servi ces , I nc. , and B r ow n and M i t chel l E ngi neer i ng, I nc. , on M ar ch 3, 2010. A l l f i ve s ubpoenas s oughte vi dence r egar di ng the Pl an and W
- 13 44 and W
- 15. R i verbend r eques t ed document s f r om al l t he s ubpoenae d par t i es butM D E Q and
c o mm a n d e d a wi t n e s s b e p r o d u c e d o n b e h a l f o f a l l t h e s u b p o e n a e d p a r t i e s b u tM E G. ¶ 3 1
. O n M a rc h 9 , 2 0 1 0 , a t th e o u tse t o f th e e v id e n tiary h e a rin g , M D E Q m o v e d to q u a sh a ll fiv e su b p o e n a s, a rg u in g th e re q u e sts w e re u n tim e ly , g iv e n th a t th e y w e re iss u e d so c lo se to t he hea r i ng. M D E Q a lso c laim e d th a t th e ev id e n c e so u g h t b y th e su b p o e n a s w a s irre lev a n t. T he hea ri ng o ff

i ceral l ow ed the s ubpoenae d w i t nes s es t o t es t i f y butpr ohi bi t ed them fr om t es t i f yi ng “t o i t ems of

evi dence t hatm ay be c ont ai ned i n t hos e s ubpoenas that[ w e] r e not

### The proce dure s f or theevide nti ar

y hearing stat ed that “ [a ] t l ea st se ven ( 7) days prior 45 

### to thehearing, a llparti es involved s hal l e xchange c opie s of al l e xhibi ts that wi llbe int roduc ed during t

he he aring indic ating t

he party of

fe ring and thewitnes s who wi llspons or ea ch. 20 al r eady i n t he r ecor d” bef or e t he hear i ng. Ri verbend cl ai m s t hatt he hea r i ng of f i cerabus ed h is discreti o n in ex clud ing ev iden ce n o t p rod u ce d p ri o r t o the h ea ri n g , w h il e the P erm itB o ard
ar gues t hatt he hea r i ng of f i cer ’ s rul i ngs w er e ac cept abl e. W e agr ee w i t h t he Perm i tB oar d. ¶3 2
. T h e p arti es w ere n o ti fi ed o f th e d isco v ery d ea d li n es fo r th e M arc h 9 , 2 0 1 0 , ev iden ti ary hear i ng on D ece m ber11, 2009. N ot abl y, t he dea dl i ne f orpr ef i l ed dir ectt es t i m ony w as February 5, 2010, t he deadl i ne f orpre f i l ed r ebut t al t es t i m ony w as F ebruary 22, 2010, and the deadl i ne f

orpr oduci ng exh i bit s w as M ar ch 2, 2010. D es pi t e havi ng t hr ee mont hs ’ not i ce 45 of t he hea r i ng, R i verbend w ai t ed t o i s s ue the di s put ed s ubpoenas unt i l af t ert he pre f

i l ed
r ebut t al t es t i m ony and exhi bi tpr oduct i on de adl i nes and l es s t han a w eek be f or e the hea r i ng. T he Perm i tB oar d’ s pr ef i l i ng p roc edur es ar e i nt ended t o expedi t e evi dent i ary hear i ngs , and t he hea r i ng of

f i ceract ed w i t hi n hi s di s cr et i on w hen he pr event ed R i verbend f r om underm i ni ng t he pr ocedur es ’ i nt entw i t h a ser i es of l as t - m i nut e subpoe nas . A ddi t i onal l y, t he
s ubpoenae d evi dence w as i r r el evant , as i tper t ai ned t o t he appr oval proc es s fort he Pl an and W
- 1 ’ s d e s i g n , n e i t h e ro f wh i c h h a d b e a r i n g o n t h e P e r mi tBo a r d ’ s d e c i s i o n t o i s s u e HC UA tw o g ro u n d w a te r w ith d ra w a l p e rm its
. Fi ndi ng no err or , w e af f i r m the j udgm entof

t he H a rriso n C o u n ty C h a n c e ry C o u rt a n d th e d e c isio n o f th e M iss iss ip p i E n v iro n m e n tal Q u a lity Per m i tB oar d.

### 21

¶ 3 3
. AF F I RM ED . W A LL ER , C . J. , D I C K I N SO N A N D R A N D O LP H , P. JJ . , K I TC H EN S, CHANDL ER , P I ER CE , KI NG AND COL EM AN, J J . , CONCUR.