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DULUTH 鈥� The Minnesota Court of Appeals on Monday sent a water discharge permit for PolyMet鈥檚 proposed copper-nickel mine back to state regulators to determine whether any releases to groundwater should be federally regulated.

, written by Judge Matthew Johnson, the three-judge panel remanded the project鈥檚 National Pollutant Discharge Elimination System, or NPDES, permit back to the Minnesota Pollution Control Agency because the agency originally failed to weigh if the Clean Water Act should apply to pollutants discharged from the project reaching groundwater.

The Clean Water Act prohibits the release of pollutants without a permit.

鈥淲e conclude that the (Minnesota Pollution Control Agency) erred by not properly considering whether the federal Clean Water Act applies to any future discharges from PolyMet鈥檚 facility to groundwater,鈥� Johnson wrote.

Johnson wrote a 2020 decision by the U.S. Supreme Court 鈥渃larified that the (Clean Water Act) also applies to discharges of pollutants from a point source to groundwater, if the discharge 鈥榠s the functional equivalent of a direct discharge鈥� to navigable waters.鈥�

PolyMet is planning an open-pit mine, tailings basin and processing facility near Hoyt Lakes and Babbitt. The mine, which would be the first of its kind for the state, would sit within the Lake Superior watershed.

Plans call for water that seeps from the tailings basin to be captured, treated and released into three creeks that flow, via the Embarrass, Partridge and St. Louis rivers, into Lake Superior.

However, it may not capture everything.

Johnson noted that while PolyMet said there would be no discharges to groundwater, the MPCA鈥檚 鈥渞ecord indicates that some underground seepage 鈥� even if minimal 鈥� is expected.鈥�

Though the NPDES is part of the Clean Water Act, a federal law, the state鈥檚 MPCA issues and enforces the permit with the Environmental Protection Agency serving in an oversight role.

Most parties in the case considered the decision a victory.

鈥淔or a second time, a Minnesota court has firmly decided that the MPCA鈥檚 permitting processes for the PolyMet project were rigorous and prudent," Darin Broton, a spokesperson for the MPCA, said in a statement. "While the agency reviews the court鈥檚 directive to complete additional analysis that wasn鈥檛 required prior to the permit鈥檚 issuance, the MPCA appreciates the court鈥檚 strong decision that the extensive 479-page water permit for PolyMet is protective of Minnesota鈥檚 waters.鈥�

Opponents of the mine were quick to celebrate the decision.

鈥淥nce again the courts have rejected a PolyMet permit,鈥� Kathryn Hoffman, chief executive officer of Minnesota Center for Environmental Advocacy, said in a statement. 鈥淭he agency obviously has more work to do to protect Minnesota's waters and communities from the serious risks of sulfide mining.鈥�

But PolyMet, in a news release, said the court鈥檚 decision affirmed six of the seven issues at hand and that the one remaining issue 鈥� sending the permit back to the MPCA 鈥� wasn鈥檛 a big deal.

鈥淭his will mean a little more process, but it gives us a clear road map to the reactivation of this permit,鈥� Jon Cherry, chairman, president and CEO, said in the release.

Chris Knopf, executive director at Friends of the Boundary Waters Wilderness, said it was 鈥済ood news鈥� that PolyMet still can鈥檛 move forward, but acknowledged several other issues in the decision that the group was considering appealing to the Minnesota Supreme Court.

鈥淭here are disagreements and concerns that we have with the Court of Appeals鈥� decision that we respectfully disagree with,鈥� Knopf told the News Tribune.

by asking the EPA to keep comments on the permit private, but acknowledged such a move was made to prevent comments from reaching the public and leading to "bad press."

Johnson wrote in Monday鈥檚 opinion that although the court did not need to determine whether those procedures were lawful, he said 鈥渢he district court鈥檚 key finding bears repeating.鈥�

In his own words, he wrote: 鈥淭he PCA鈥檚 efforts to discourage the EPA from providing written comments during the public-comment period had the purpose and effect of avoiding or minimizing public criticism of the proposed permit and, in addition, avoiding the need for the PCA to publicly respond in writing to the EPA鈥檚 comments.鈥�

Separately, by reading the comments over the phone to the MPCA instead of in writing, which kept the comments, including concerns, private.

Additionally, the court said the MPCA did not err in denying a petition by mine opponents calling for a contested-case hearing and said the agency did not err in issuing a permit with 鈥渙perating limits鈥� to regulate pollutants in the water before being discharged. It also rejected the Fond du Lac Band of Lake Superior Chippewa鈥檚 claims that said construction and operation of the mine would damage its water-quality standards. The Fond du Lac Reservation sits 70 miles downstream from the proposed mine site.

More than three years after PolyMet received its permits, a number of them remain tied up in legal challenges.

The project鈥檚 permit to mine is currently going through a contested-case hearing and the U.S. Army Corps of Engineers is expected to hold a hearing on the project's Section 404 permit, , after the

and insisted any potential mine expansion would not be possible without the company going through the permitting process again when it released additional analysis required by the Court of Appeals. PolyMet characterized the decision as 鈥渞eactivating鈥� its air permit.

Last week, several environmental groups appealed that decision, asking the Court of Appeals to review it again.

On Saturday, Duluth politicians and environmental group leaders signed a petition asking the state to hold a hearing on the safety of PolyMet鈥檚 upstream tailings dam. Signatures included state Sen. Jen McEwen, D-Duluth, and St. Louis County Commissioner Ashley Grimm. Duluth city councilors Roz Rondorf, Gary Anderson, Mike Mayou and Azrin Awal also signed the petition.

Opponents are expected to hold a rally Tuesday at the Minnesota State Capitol to again ask Gov. Tim Walz to 鈥渕ove on鈥� from PolyMet.

This story was updated at 5:28 p.m. Jan. 24 with a statement from Minnesota Pollution Control Agency spokesperson Darin Broton. It was originally posted at 2:16 p.m. Jan. 24.