Background
The case involves a petition for review of a decision by the Virginia Department of Environmental Quality regarding a water quality certification for the Southgate Project. The project is a proposed pipeline traversing North Carolina and Virginia. Petitioners sought a stay of the certification pending review, arguing the agency’s decision was arbitrary and capricious due to the pipeline operator’s history of noncompliance and the omission of necessary conditions.
The court’s reasoning
The court applied the arbitrary and capricious standard under the Administrative Procedure Act. It found that the Virginia Department of Environmental Quality provided a rational explanation for its prediction of future compliance, distinguishing the Southgate Project from the operator’s previous Main Pipeline based on terrain and improved practices. The court also held that the certification explicitly incorporated by reference the required erosion and sediment control agreements, refuting the claim that conditions were unlawfully omitted.
Petitioners have not made a strong showing that they are likely to succeed on the merits.
slip op. at 3
What it means going forward
The denial of the stay allows the Virginia Department of Environmental Quality to proceed with the water quality certification, permitting construction activities to continue while the underlying merits of the case remain pending.