A U.S. federal appeals court ruled on Tuesday that the Environmental Protection Agency has the legal authority to retroactively revoke a water pollution permit for one of West Virginia’s largest mountaintop removal coal mines.

The appellate court ordered district court judge Amy Berman Jackson to address the coal industry’s argument that the EPA’s actions were an “arbitrary and capricious” violation of the Administrative Procedure Act, which she previously did not rule on.

The decision could have far-reaching impacts on the coal industry, as well as on other projects that rely on water-pollution permits.