The state Court of Appeals has upheld a decision by the Environment Department that lets Sandia National Laboratories cover a toxic waste dump with dirt rather than dig it up.

The appellate court, in a ruling issued Wednesday, affirmed Environment Secretary Ron Curry's decision in 2005 not to require excavation of the Albuquerque-area landfill.

Activists want the mixed waste — radioactive and other hazardous materials — dug up and stored because of fears it will contaminate groundwater.

Citizen Action, the group that challenged Curry's ruling, will consider an appeal to the state Supreme Court, director Dave McCoy said.

The court decision "does not resolve any of the issues that have arisen at this dump site," he said. "What we need is excavation of these wastes and protection of the drinking water."

The department has found no groundwater contamination at the landfill and says excavating the waste would be riskier than leaving it where it is.

The lab dumped waste containing radioactive materials and hazardous chemicals on the southern part of Kirtland Air Force Base, about five miles from the Albuquerque airport, from 1959 to 1988.

The Environment Department is requiring the lab to cover the landfill with an earthen cap 3 feet deep, under which would be a "bio-intrusion barrier" of rocks intended to prevent animals from burrowing into it.

The lab and the U.S. Department of Energy, which owns the federal facility, say the measures would protect the soil and water.

Curry said in a statement he was gratified by the Court of Appeals decision, and he had given public comments "a great deal of consideration" before making his decision.

"We should not be at odds over this issue with Citizen Action — everyone has the same goal, protecting groundwater," Curry said.

The Court of Appeals said in its ruling that Curry did not abuse his discretion when he adopted the findings of the agency's hearing officer, which Citizen Action contended were flawed.

The landfill has been the source of ongoing dispute while the court challenge was pending.

Most recently, Citizen Action sought a report on possible leaks at the landfill done for the department in 2006 by a consulting company. The Environment Department has sued to keep it secret, citing executive privilege. Citizen Action countersued, accusing the agency of violating open meetings and open records laws.

The state Attorney General's Office said in an opinion that the report is a public record, subject to public inspection.