The Environmental Protection Agency has taken another defeat in court:

A federal judge says the U.S. Environmental Protection Agency exceeded its authority in revoking permits for what could now become West Virginia‘s largest mountaintop removal mine.

In a ruling Friday, U.S. District Judge Amy Berman Jackson in Washington, D.C., ruled in favor of St. Louis-based Arch.

She declares a U.S. Army Corps of Engineers water pollution permit for the Spruce No. 1 mine in Logan County is “valid and in full force.”

Arch spokeswoman Kim Link says the company is pleased with the decision.

The EPA had overruled the Army Corps of Engineers in January 2011. Last week, the EPA lost another major battle in the Supreme Court.