The announcement late Friday by district judge Amy Berman Jackson reverses a January 2011 ruling by the US Environmental Protection Agency that pulled Mingo Logan Coal’s Spruce No.1’s permits initially issued by the US Army Corps of Engineers in 2007.

Prior to the first issue nearly six years ago, the company worked for a decade to address the EPA’s environmental concerns.

Mingo Logan subsequently filed a lawsuit to get the permit back.

The EPA argued at the time of its revocation that mining in the area would have caused unacceptable damage to rivers, as well as wildlife and nearby communities.

Also, the large mine would have had tons of residue which would have buried hundreds of miles of streams in the region.

Jackson said the EPA in its unilateral ruling did not have the authority to invalidate an existing permit and it overstepped its authority under the nation’s Clean Water Act.

Calling it a “stunning power for an agency to arrogate to itself”, according to a New York Times report, the judge concluded that the federal agency had used “magical thinking” to justify its actions.

While owner Arch Coal did not issue a public statement on the decision or provide ILN with comment, spokesperson Kim Link told the newspaper the producer was happy with the outcome.

“We’re pleased the district court has ruled in our favor, confirming that our Spruce No.1 permit remains valid,” she said.

Another party with a favorable response was West Virginia governor Earl Ray Tomblin, who called for the EPA late Friday to “play within the rules and issue permits” for mining projects.

“I want to thank Judge Jackson for recognizing that the EPA and the federal government were completely wrong in revoking this permit,” he said.

“I now call upon Lisa Jackson and the EPA to admit that they have gone too far – enough is enough. 

“Issue our permits so that we can put our people back to work and provide the resources that will power America.”

Also providing words of endorsement was former governor Joe Manchin, who was in office when the EPA’s revocation was made.

“I always knew that the EPA’s decision to retroactively veto a coal mining permit for the Spruce No.1 mine in Logan County was fundamentally wrong and an unprecedented act by the federal government,” he said.

One group not pleased with the overturned decision was the Sierra Club, which spoke alongside the Ohio Valley Environmental Coalition, River Mountain Watch and West Virginia Highlands Conservancy to the Times.

“It is a sad day not only for the people who live near mountains and streams threatened by mountaintop removal coal mining but for all Americans who understand the need to protect our waterways and the health of communities that depend on them,” it said.

At full production, Spruce is expected to employ 235 miners and create another 300 indirect or induced jobs.