Two firms sue CRMO over Obyan project

Two private corporations have sued the Coastal Resources Management Office for stopping the operation of their Obyan site, the staging area for the two companies’ construction activities project.

Hayden Corp. and its sister corporation, GPPC Inc., asked the Superior Court to review CRMO’s decision and rescind its order.

Hayden and GPPC, through counsel Mark Hanson, asked the court to issue a finding that their activities at the Obyan site does not constitute a “quarry” as that term is found in the CRMO regulation.

The plaintiffs also asked the court to declare that the “quarries” stated in the CRMO regulation is unenforceable due to vagueness.

Hayden acquired a long-term leasehold interest in a lot located at Obyan on May 29, 2007. Hayden acquired the site with the intent that its sister corporation, GPPC, would develop the site as a staging area for GPPC’s construction activities on the island.

Hanson said that consistent with the Division of Environmental Quality permit, GPPC excavated limestone material at the site and removed the material to other permitted sites, reusing the material for its ongoing construction projects.

The lawyer said GPPC has not sold any limestone material excavated from the site to any third party for any use.

“GPPC does not have as any part of its business the production and sale of quarried limestone products,” he said.

Hanson said that upon completion of the staging area—as specified in the Earthmoving and Erosion Control Commercial Permit Application (EEC application)—there won’t be a large, unused hole in the ground.

“There will actually be a staging area for construction material and heavy equipment. The staging area will have a warehouse, batch plants, storage facilities and a large ponding basin,” he explained.

Hanson said that on Feb. 5, 2008, CRMO director John B. Joyner sent GPPC a letter ordering GPPC “to immediately cease all quarrying activities” at Obyan. That day, Hanson said, a congressman had called Joyner to raise some of his constituents’ concerns about certain aspects of the project.

Hanson said that GPPC, through its counsel, immediately responded that the company was not conducting any quarrying activities. It asked CRMO for clarification.

On Feb. 9, 2008, GPPC ceased all excavation at the site.

Hanson said that on Feb. 21, 2008, GPPC received a letter from CRMO’s attorney advising GPPC that it cannot further excavate any material from the site until the company explains what it will do with the excavated material.

On April 16, 2008, CRMO administrative hearing officer Linn Asper held a hearing. Asper affirmed the notice and order to cease.

Asper also ordered the corporations to stop with their staging area project without first applying for a CRM major siting permit.

Hanson said that CRMI’s order is “arbitrary, capricious, an abuse of discretion and not otherwise in accordance with the law.” He asserted that the order is unsupported by substantial evidence.