Atlantic Richfield Company v. NL Industries, Inc.

District Court, D. Colorado·Decided August 18, 2023·No. 1:20-cv-00234·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Judge Nina Y. Wang

Civil Action No. 20-cv-00234-NYW-KAS

ATLANTIC RICHFIELD COMPANY,

Plaintiff and Counter Defendant,

v.

NL INDUSTRIES, INC., and NL ENVIRONMENTAL MANAGEMENT SERVICES,

Defendants and Counter Claimants.

ORDER

This matter comes before the Court on three motions: (1) Plaintiff’s Motion for Certification for Interlocutory Appeal Pursuant to 28 U.S.C. Section 1292(b) (“Motion for Interlocutory Appeal” or “Motion”), [Doc. 249, filed June 30, 2023]; (2) Plaintiff’s Motion for Stay (“Motion to Stay”), [Doc. 250, filed June 30, 2023]; and (3) the Joint Stipulated Motion to Vacate Scheduling Conference Pending Decisions Re Interlocutory Appeal (“Motion to Vacate”), [Doc. 256, filed August 14, 2023]. Upon review of the record, and for the reasons set forth herein, the Court respectfully GRANTS the Motion for Interlocutory Appeal, GRANTS the Motion to Stay, and GRANTS the Motion to Vacate. BACKGROUND The Court has detailed the background of this case in prior orders, see [Doc. 236; Doc. 244], and will do so here to the extent necessary to resolve the instant Motions. This case arises out of claims brought by Atlantic Richfield Company (“ARCO” or “Plaintiff”) against NL Industries, Inc. and NL Environmental Management Services (collectively, “NL” or “Defendant”), alleging that ARCO has incurred costs and will incur future costs in responding to releases and threatened releases of hazardous substances at certain facilities and locations within the Rico- Argentine Site (or the “Site”)—an area located in and around the Rico-Argentine Mine in Rico, Dolores County, Colorado. [Doc. 171 at ¶ 1]. In response to the release of hazardous substances

within the Site, the United States Environmental Protection Agency (“EPA” or “the Government”) issued a Unilateral Administrative Order (“UAO”) effective March 23, 2011, against ARCO. See [Doc. 217-4]. The UAO directed ARCO to “conduct removal actions . . . to abate an imminent and substantial endangerment to the public health or welfare or the environment that may be presented by the actual or threatened release of hazardous substances at or from the Site.” [Id. at ¶ 2]. ARCO alleges that since March 2011, it has made substantial progress implementing the required response actions as outlined in the UAO, at a cost exceeding $63.7 million. [Doc. 171 at ¶¶ 3, 28]. On January 28, 2020, ARCO brought this civil action against NL, pursuant to § 107(a) of the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), 42

U.S.C. § 9607(a) (“Section 107(a)”), which provides for joint and several liability among potentially responsible parties (“PRP”). See [Doc. 1]. Originally, ARCO sought to recover “response costs under CERCLA [S]ection 107(a) . . . to implement the Removal Action required by the UAO” at the Site, on the basis that NL is a PRP. [Id. at 12]. On June 2, 2021, NL filed a motion for summary judgment arguing that ARCO’s claims against it are barred by CERCLA’s six-year statute of limitations for “remedial” response actions. [Doc. 97]. Thereafter, on December 6, 2021, ARCO entered into an Administrative Settlement Agreement and Order on Consent for Removal Action (the “AOC”) with the EPA, which “settled [ARCO’s] liability to the United States for the matters addressed by the AOC.” [Doc. 171 at ¶ 4]. The AOC continues the “removal action” that ARCO began under the UAO. [Id.]; see generally [Doc. 217-30 at 2–40]. ARCO subsequently moved to amend the operative pleading, arguing that, as a result of its settlement with the United States, it could only pursue a claim for contribution under CERCLA § 113, 42 U.S.C. § 9613 (“Section 113”), rather than cost recovery under Section

107, as a matter of law. [Doc. 153 at 4]. In response, NL agreed that ARCO could no longer pursue a Section 107(a) claim, but could only pursue a Section 113 claim. [Doc. 158 at 3]. Nevertheless, NL opposed the amendment, arguing that ARCO should not be permitted to convert a long-stale Section 107 claim into a contribution claim under Section 113, and that CERCLA could not be applied retroactively to NL. [Id. at 2]. Over NL’s objection, the Court1 granted ARCO leave to amend the Complaint. See [Doc. 164 at 12; Doc. 170 at 4]. The Court also denied the pending motion for summary judgment without prejudice to refiling. [Doc. 170 at 5]. On May 2, 2022, ARCO filed the operative First Amended Complaint, wherein it asserts two claims against NL. See [Doc. 171]. In the first claim, ARCO seeks contribution from NL for its equitably allocated response costs incurred by ARCO as required by the UAO and the AOC

pursuant to CERCLA Section 113(f), 42 U.S.C. § 9613(f) (“Count I”). In the second claim, ARCO seeks declaratory relief in the form of “a judicial determination of the rights, duties, and obligations of the parties to this action with respect to the past, present, and future response costs and other related costs” under CERCLA Section 113(g)(2), 42 U.S.C. § 9613(g)(2), and the Declaratory

1 Originally, this action was assigned to Chief Judge Philip A. Brimmer and Magistrate Judge Kristen L. Mix. [Doc. 5]. It was then reassigned to Judge Regina M. Rodriguez, who adopted Judge Mix’s Recommendation for leave to file an amended complaint that dismissed ARCO’s Section 107(a) claim. [Doc. 110; Doc. 164; Doc. 170]. The case was subsequently reassigned to the undersigned judicial officer upon her confirmation as a District Judge. [Doc. 205]. Judgment Act, 28 U.S.C. § 2201 (“Count II”). [Id. at 10–14]. NL filed its Answer on May 16, 2022. [Doc. 172]. On August 2, 2022, NL filed a Renewed Motion for Partial Summary Judgment against ARCO, seeking partial summary judgment on the grounds that ARCO’s claims against NL—with the exception of a $400,000 payment made to reimburse the EPA under the AOC2—are time-

barred. See [Doc. 202].3 The Court issued an Order granting in part and denying in part the Motion for Partial Summary Judgment on April 26, 2023. See [Doc. 244]. On June 30, 2023, ARCO filed the instant Motion for Interlocutory Appeal, seeking certification for interlocutory appeal of the above-mentioned Order granting in part and denying in part Defendant’s Motion for Partial Summary Judgment. [Doc. 249]. ARCO filed the Motion to Stay the same day. [Doc. 250]. NL responded to the motions on July 21, 2023, [Doc. 251; Doc. 252], and ARCO replied to the Motion for Interlocutory Appeal on August 4, 2023, [Doc. 254]. On August 14, 2023, the Parties jointly moved to vacate the Scheduling Conference—which is currently set for September 6, 2023 before the Honorable Kathryn A. Starnella—pending the

Court’s ruling on the Motion for Interlocutory Appeal and Motion to Stay, “and any related proceeding by the Tenth Circuit.” [Doc. 256 at 1–2]; see [Doc. 247; Doc. 255]. These motions are thus ripe for disposition. LEGAL STANDARD Under 28 U.S.C. § 1292, a district court may certify an issue for interlocutory appeal if three criteria are met: (1) the order involves a “controlling question of law”; (2) there is “substantial

2 See [Doc. 217-30 at 22, ¶ 58 (“Within 30 days after the Effective Date, Respondent shall pay to EPA $400,000 for Past Response Costs.”)].

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