March 31, 2025
By: Dwayne Page
Could the county win a legal challenge by enforcing the county powers act on two proposed quarry operations and a cryptocurrency mining company?
During Monday night’s monthly meeting, the county commission voted to seek consultation from a Nashville law firm with expertise in advising local governments on such matters.
Since the county commission adopted the county powers act last October, some members of the public have argued that the three companies — the McMinnville Energy LLC cryptocurrency mining and the Jones Brothers and SRM quarries should be subject to the County Powers Act claiming they were not already “in operation” when the commission passed the local regulations.
The county commission now wants to know where the county stands legally.
“The county attorney (Hilton Conger) gave me a law office name in Nashville that specializes in county and municipal services and Hilton has recommended it,” said Commissioner Larry Green. “We can get a consultation down there probably without charge. Hilton has agreed to go. I would like for as many of us (county commissioners) that can go, schedule a meeting, and get a consultation just to see where we are as far as where our county powers act would apply,” said Green.
(VIEW VIDEO OF ENTIRE MEETING BELOW)
Conger said the firm he is recommending is better suited than him in advising the county on this issue.
“It looks like the county is headed toward three lawsuits with SRM, Jones Brothers, and McMinnville Energy or the Crypto Mine,” said Conger. “We need to see what this is going to cost. This is way above my pay grade. This firm handles these sorts of things. They just did one for Trousdale County where a quarry was trying to come in over there and were successful in that. The attorney needs to talk with the commission and discuss the costs, legal strategies, and that sort of thing. You couldn’t vote on it then, but you would have an informed decision. I think you need to do that and the public needs to know what you are going to do,” said Conger.
“If we could get a group to go down there and see what they say and then we will bring it back to the commission. There wouldn’t be any decisions made. We would just get a consultation, bring it back to the commission, and tell them what we found out,” Green explained.
Conger said a case involving similar issues originated in Grundy County months ago and has now made it to the state supreme court. Oral arguments will be made before the state’s high court in May and Conger urges all to get online to listen.
“In Grundy County, Tinsley versus Grundy County was a lawsuit that was filed in Grundy County over these same issues. Its in the supreme court of Tennessee right now. On May 29th at 9 a.m. you can go online to the administrative office of the courts and listen to the oral arguments before the Tennessee Supreme Court and hear the arguments that are made pro and con over these issues that we are discussing here but the Supreme Court will not decide it then. That’s another factor. It was heard in the Court of Appeals in February 2024. Its just now going to be argued at the Supreme Court level in May, 2025 and they (Court) will take their own sweet time about rendering a decision. They don’t rule from the bench like judges in circuit court,” said Conger.
If it should go to court, Conger warned that it could be costly to the county in legal fees.
“The public has asked many times why haven’t you done anything? Why haven’t you sent a cease-and-desist letter? why haven’t you filed a lawsuit? These things cost money and I’m not talking about me (county attorney). I personally asked the county mayor of Grundy County how much all this has cost. They tried it in Chancery Court. They tried it in the Court of Appeals and now they are in the Supreme Court. He said approximately $100,000 in legal fees. This is no small undertaking. And we are talking about three (companies). I think you need to do your due diligence. Go down and talk to this attorney because that’s what they specialize in. They assist counties in these types of things. Get their opinion about your chances and the costs its going to take,” said Conger.
Commissioner Greg Matthews reminded the commission that pursing this issue could result in a legal battle.
“I said numerous times that we knew this was going to happen. We knew there isn’t going to be three businesses lose millions of dollars and now we have possible pending lawsuits. Its not everybody in this county’s job to pay fees for lawsuits for things that does not affect them. They (companies) were here before this was passed. We all knew they were here. We tried to go back and throw some wrenches in their plans and now they have kinda had enough of us,” said Matthews.
During the public comment period, Lucas Antoniak and Steven Cantrell said it is time the county enforced the county powers act. Both thanked members of the county commission who attended the TDEC public hearing Thursday night.
“There was a public hearing (Thursday night) regarding SRM’s application for a wastewater permit to release into Drivers Branch from the SRM quarry on Snows Hill which is the headwater of Dry Creek,” said Antoniak. ” We learned a couple of things at this meeting. SRM had not submitted their completed wastewater permit to the state until November 13, 2024, a full two weeks after the county powers act was passed and enacted by the county commission on October 28 effective immediately”.
“In 2023 the state legislature amended the Tennessee code via a bill 559 to state that property owners should expect that the merits of a permit application will be judged on the law in effect at the time of application. Given that SRM had not submitted this permit application, nor the one required by TDOT for highway access until well after the passing of the county powers act, they should not qualify for consideration of the acts’ grandfather clause. In fact, on their own website as of today SRM does not list the Driver Road quarry as currently in operation”.
“Several speakers including myself also pointed out that this company has a history of state violations and non-compliance as was the case here when TDEC stopped work twice at the North Driver Quarry for operating without the required permits”.
“SRM does not qualify for the grandfather clause of the county powers act and its up to our county mayor and county commissioners to inform them of this. Failure to enforce the county powers act which has broad support from the citizens of DeKalb County could create legal liabilities no one wants or needs,” said Antoniak.
“This past Thursday, a hearing was held by the Tennessee Department of Environment and Conservation on consideration of a permit by SRM for a proposed quarry on Snows Hill”,” said Cantrell during his public comments.
“For those who could not attend, I wish to highlight the following key items from both the informal education seminar prior to the formal hearing, and the formal hearing itself”.
“If TDEC approves a permit for SRM, it does not negate or supersede any local zoning, planning, or county ordinances that may be in place that would prohibit mining locally. Nor do local or county restrictions such as zoning, planning, or county ordinances prevent the issuance of a water permit”.
“There are only 10 inspectors to inspect mining operations of over 550 operations statewide. As a result, the state relies on the operators for testing twice a month”.
“If damage is made to neighboring properties of the mining operation, the property owners only recourse is to sue the operator. The state can only fine for certain issues, a max of $25,000”.
“Fortunately, we have the County Powers Act; however, if the County fails to enforce the Act the county could also be held liable for damages”.
“Ladies and gentlemen, it is time to stop slow rolling the issues before you concerning the crypto center and the two quarries”.
“The Crypto Center has grown dramatically and its growth or continuing growth is reflective of the $1,000,000 electric deposit they had to pay Smithville Electric”.
“I don’t know where we are concerning the two quarries. But in regards to the Snows Hill site. SRM was forced by the State to take equipment from the site, so it cannot claim grandfather status”.
“It is time to enforce the County Powers Act especially in the apparent lack of respect for the County government and the County’s taxpayer based on the latest information of their continuing refusal to respond to your correspondence,” said Cantrell.