Amoco Oil Co. v. United States

450 F. Supp. 185, 11 ERC 1693, 1978 U.S. Dist. LEXIS 17882
CourtDistrict Court, W.D. Missouri
DecidedMay 8, 1978
DocketNo. 77-539-CV-W-3
StatusPublished
Cited by1 cases

This text of 450 F. Supp. 185 (Amoco Oil Co. v. United States) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amoco Oil Co. v. United States, 450 F. Supp. 185, 11 ERC 1693, 1978 U.S. Dist. LEXIS 17882 (W.D. Mo. 1978).

Opinion

ORDER

RUSSELL G. CLARK, District Judge.

Plaintiff Amoco Oil Company brings this action seeking declaratory judgment and injunctive relief enjoining the defendants from attempting to collect a civil penalty assessed by the defendants against the plaintiff in an administrative agency proceeding for alleged violations of the Clean Air Act, 42 U.S.C. § 7401 et seq., formerly 42 U.S.C. § 1857 et seq. Defendant United States has counterclaimed seeking enforcement of the assessed civil penalty. Both parties have moved for summary judgment and have filed a joint stipulation of material facts. On May 1, 1978, the parties were afforded an opportunity to present any additional evidence and to present their oral arguments in support of their respective motions. For the reasons stated herein, the motion of Amoco Oil Company for summary judgment is hereby granted, and the motion of the United States is denied.

I. FACTUAL BACKGROUND

•The following facts were stipulated and presented to the Court:

1. Amoco Oil Company leases the premises known as Central City Standard from the owner of that property, Myrtle F. Willis. In turn, Amoco subleases the premises to Andrew J. Knobbe, who is the operator-retailer of the gas station which is a “retail outlet” within the meaning of 40 C.F.R. § 80.2CÍ).1 On August 8, 1976, Region YII of the Environmental Protection Agency (E.P.A.), having inspected Central City Standard Station and determined that the retail outlet had failed to equip a leaded gasoline pump with a nozzle having an outside diameter of not less than .930 inches, charged both Amoco and Central Standard with a violation of 40 C.F.R. § 80.22(f)(1).2

2. On or about September 12, 1976, Amoco filed its answer to the administrative complaint denying that it was a “retailer” as that term is used in 40 C.F.R. § 80.22(f)(1) and stating that if a violation of that section occurred then the retail outlet operator Knobbe who owns and controls all gasoline nozzles at Central City Standard was solely liable for the penalties based on such violation.

3. A hearing was held before an Administrative Law Judge on December 17, 1976. On February 1, 1977, the Administrative Law Judge issued his findings which were:

(a) That Amoco was a lessee and in turn Amoco sub-leased the premises to Knobbe d/b/a Central City Standard;
(b) that the nozzles attached to the pump hoses dispensing gasoline were owned by Knobbe and that by the terms of the sublease between Amoco and Knobbe the entire control and direction of the business, operations, and activities conducted at Central City Standard remained with Knobbe; and

(c) that on May 24, 1976, a nozzle on a pump dispensing gasoline was found to have a terminal end less than .930 inches.

[187]*1874. The Administrative Law Judge concluded as a matter of law that Amoco was a “retailer” as the word is defined in 40 C.F.R. § 80.2(k)3 and used in § 80.22(f) and that an appropriate civil penalty should be assessed against Amoco.

5. On April 28,1977, Charles V. Wright, Acting Regional Administrator for Region VII of the Environmental Protection Agency, entered his final order affirming the findings and conclusions of the Administrative Law Judge and assessed a civil penalty of $2,500.00 against Amoco. On June 20, 1977, Charles V. Wright denied Amoco’s motion to reconsider his final order. To date, the penalty has not been paid.

II. JURISDICTIONAL BASIS

The regulations in question were adopted by the defendants under the authority of the provisions of 42 U.S.C. § 7545(c)(1) [formerly § 1857f-6e(c)(l)] which empowers the Administrator to “[by regulation] control or prohibit the manufacture, introduction into commerce, offering for sale, or sale of any fuel or fuel additive” which may contribute to air pollution. The Act provides for judicial review in § 7607 (formerly § 1857h-5) which states that a petition for review of the actions of the Administrator in promulgating “any control or prohibition under § 7545 (§ 1857h-5), . . . may be filed only in the United States Court of Appeals for the District of Columbia,” within sixty days from the date the action appears in the Federal Register. Furthermore, “action . . . which review could have been obtained . . . shall not be subject to judicial review in civil or criminal proceedings for enforcement.”

These provisions, as well as other sections which provide for judicial review and enforcement of individual sections of the Act, have created some confusion in the Courts. As Judge Wright, Circuit Judge, District of Columbia Circuit, has said “the courts play jurisdictional badminton with these provisions,” “batting” cases back and forth between the district courts and the courts of appeals. N.R.D.C. v. Environmental Protection Agency, 168 U.S.App.D.C. 111, 121, 512 F.2d 1351, 1361 (1975). Since the filing of this action, the Act has been amended to read that any final agency action, in addition to the final agency promulgations as described in § 7545, is to be reviewed only in the District of Columbia Circuit Court of Appeals. However, this Court benefits from a recent decision concerning the unamended Act and the jurisdictional basis for judicial review at the district court level.

In Utah Power & Light v. Environmental Protection Agency, 180 U.S.App. D.C. 70, 73, 553 F.2d 215, 218 (1977) the appellate court established a distinction between an action challenging the validity of agency regulations/promulgations and an action challenging interpretations of those regulations. The former are reviewable only by the courts of appeals whereas the latter, being mere challenges to the interpretations of otherwise valid regulations/promulgations, may be brought in the district courts. Thus, jurisdiction of this court lies pursuant to 28 U.S.C. § 1331(a) to entertain plaintiff’s challenge to defendants’ interpretations of an existing valid regulation. Without question this Court has jurisdiction of the defendants’ counterclaim to seek enforcement and payment of the assessed penalty. 42 U.S.C. § 7545(d). Therefore, this Court has jurisdiction to determine the legal issue of the correct interpretation of the term “leases” as found in the definition of “retailer” in 40 C.F.R.

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Bluebook (online)
450 F. Supp. 185, 11 ERC 1693, 1978 U.S. Dist. LEXIS 17882, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amoco-oil-co-v-united-states-mowd-1978.