A New Mexico hearings officer says the state should deny a wastewater discharge permit for Valley Meat in Roswell, and the Missouri Department of Natural Resources says it will get back to Rains Natural Meats in Gallatin once it decides if horses are livestock.

These state regulatory barriers now face the two companies planning to slaughter horses after the Dec. 13 decision from the Tenth Circuit U.S. Court of Appeals in Denver gave USDA permission to provide equine inspections for the two businesses.

The professional water quality staff in the New Mexico Department of the Environment wanted to give a water discharge permit to Valley Meat, but the hearing officer assigned to hear the case, Felicia Orth, recommended that the application be denied due to the company's previous environmental violations when it was a cattle slaughterhouse.

Valley's past history, Orth stated, shows a "willful disregard" of New Mexico's water quality provisions, a question of law and fact that justifies denial. Her recommendation, along with the 49-page decision, now goes to Ryan Flynn, New Mexico's Secretary of the Environment.

Blair Dunn, attorney for both Valley Meat and Rains Natural Meats, said the Roswell facility requires either a discharge permit for up to 8,000 gallons a day into underground holding tanks, or else it will have to rely on a pump and haul operation, which apparently does not require a permit.

Dunn has 15 days to file a response to the hearing officer's decision, and Flynn then has 30 days after that to make his decision.

In Missouri, where top state officials claim to be staying out of regulatory decisions, the state DNR says it has to decide if horses are included in the permit it already issued to Rains to slaughter livestock. Dunn says horses have long been deemed livestock under Missouri's laws and regulation.

A spokesman for Gov. Jay Nixon says the governor's office is not involved in the decision-making.

Finally, in the ongoing legal action involving possible horse slaughter, the Santa Fe District Court's family law judge will entertain oral arguments on Monday on whether to continue a restraining order against Valley's operation until a civil suit brought by Attorney General Gary King plays out.

Both Valley and Rains want to produce horsemeat for human consumption, but only for export. An estimated 158,000 U.S. horses were slaughtered in Mexico and Canada in 2012. No USDA-inspected horse slaughter has occurred in the U.S. since 2007, but the practice could resume under existing USDA budget authority.