CA Dept. of Toxic Substances Control v. Chevron Oronite Co. LLC

CourtDistrict Court, E.D. California
DecidedFebruary 15, 2024
Docket2:21-cv-01737
StatusUnknown

This text of CA Dept. of Toxic Substances Control v. Chevron Oronite Co. LLC (CA Dept. of Toxic Substances Control v. Chevron Oronite Co. LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CA Dept. of Toxic Substances Control v. Chevron Oronite Co. LLC, (E.D. Cal. 2024).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 CALIFORNIA DEPARTMENT OF No. 2:21-cv-01737-DJC-JDP TOXIC SUBSTANCES CONTROL, 12 Plaintiff, 13 ORDER v. 14 CHEVRON ORONITE CO. LLC, et al., 15 Defendants. 16 17 This action is one of two Comprehensive Environmental Response, 18 Compensation, and Liability Act (“CERCLA”) enforcement actions in this Court filed by 19 the California Department of Toxic Substances Control (“DTSC”) and the Toxic 20 Substances Control Account (“TSCA”)1 related to former landfill sites managed by the 21 IT Environmental Liquidating Trust (“ITELT”).2 Before the Court is a Motion for 22

23 1 Plaintiff TSCA is an account within the State of California General Fund that may be used by the DTSC to fund response costs. (Pl’s Mot. at 2.) Plaintiff TSCA must be a party to this action under California 24 law, even though Plaintiff DTSC appears to be the main plaintiff in this action. (Id.) Plaintiff DTSC and Plaintiff TSCA will be jointly referred to as “Plaintiffs” for purposes of this order. 25 2 The ITELT was established to oversee the long-term post-closure operation and maintenance of several landfill sites following the bankruptcy of IT Corporation, the former owner and operator of these 26 facilitates. (First Am. Compl. (ECF No. 38) ¶ 31.) The other CERLCA suit filed by the Plaintiffs and pending before this Court is California Department of Toxic Substances Control v. Exxon Mobil 27 Corporation, et al., No. 2:21-cv-01737-DJC-JDP. Plaintiffs have filed a Motion for Approval and Entry of Consent Decree in that action as well. This order and an order in the other ITELT case will be issued 28 simultaneously. 1 Approval and Entry of a Consent Decree entered into by DTSC and named 2 Defendants who disposed of hazardous waste at a landfill located in Rio Hills, 3 California. After a careful review, the Court finds that the Consent Decree is fair and 4 reasonable, and GRANTS DTSC’s Motion for Approval and Entry. 5 I. Background 6 A. Factual Background 7 Plaintiffs filed this action seeking declaratory relief and the recovery of 8 “response costs” under 42 U.S.C. § 9607(a) of CERCLA in connection with the prior 9 and potential future releases of hazardous substances at the Montezuma Hills Facility. 10 (Pl’s Mot. (ECF No. 43) at 1.) The Montezuma Hills Facility is a “former hazardous 11 waste and solid waste landfill” located in Rio Vista, California that closed in 1986. (Id. 12 at 3.) The Montezuma Hills Facility “managed and disposed of” hazardous waste 13 between at least 1979 and 1986. (Id. at 3.) Plaintiffs claim the 17 Defendants to this 14 action and their affiliates disposed of hazardous waste at the Montezuma Hills Facility. 15 (Id. at 2.) Plaintiffs claim that the management of the hazardous waste at this location 16 “resulted in releases of hazardous substances that are present in the soil, soil vapor, 17 and groundwater at the [Montezuma Hills] Facility.” (Id. at 3.) A certification of the 18 Montezuma Hills Facility’s closure was accepted by the DTSC on March 18, 1992. (Id.) 19 Until May 1, 2004, the Montezuma Hills Facility was operated by the IT 20 Corporation. (Id.) After the IT Corporation underwent bankruptcy, the ITELT was 21 created to act as operator of the Montezuma Facility and provide ongoing oversight of 22 the post-closure operations and maintenance. (Id.) ITELT’s post-closure 23 responsibilities included “routine inspections, maintenance and compliance activities, 24 recovery and management of groundwater, leachate, and soil vapor, long-term 25 groundwater, leachate and soil vapor monitoring, soil vapor and water quality 26 sampling and reporting, and response to potential and immediate threats, newly 27 identified releases, and emergency contingencies such as floods, fires, and 28 //// 1 earthquakes.” (Id. at 4.) ITELT was also required to provide adequate financial 2 assurances for these operations. (Id.) 3 On February 29, 2016, Plaintiff DTSC issued a “summary of violations” to ITELT 4 “stat[ing], among other things, that the Facility was in violation of the financial 5 assurance requirements because ITELT’s financial assurance was underfunded and 6 less than the total post-closure cost estimate.” (Id.) ITELT responded by informing the 7 DTSC that it did not have assets or mechanisms to get those assets to meet the 8 financial assurance requirements. (Id.) Plaintiff DTSC determined that ITELT’s inability 9 to meet these requirements would prevent “(a) actions ensuring the protectiveness of 10 the landfill covers, (b) collection and treatment of groundwater and leachate, and (c) 11 monitoring of the surrounding environment for impacts from hazardous waste and 12 solid waste left in place at the [Montezuma Hills] Facility[,]” and informed ITELT and 13 parties who had previously disposed of waste at the Montezuma Hills Facility 14 (including Defendants) “that termination of [post-closure] activities would pose an 15 imminent and substantial endangerment to human health, the public, and the 16 environment.” (Id.) Plaintiff DTSC then engaged in response actions that, as of 17 December 31, 2022, allegedly cost DTSC $816,259.03. (Id. at 5.) 18 In filing this action Plaintiffs seeks past costs for Plaintiff DTSC’s response at the 19 Montezuma Hills Facility as well as a declaratory judgment that Defendants are liable3 20 for future costs Plaintiff DTSC will incur addressing the release of or threatened 21 release of hazardous waste. (Id. at 6.) Pursuant to a settlement between the Parties, 22 Plaintiffs now request the Court approve and enter the Proposed Consent Decree 23 previously lodged with the Court. (Proposed Consent Decree (ECF No. 39-1).) The 24 Defendants jointly do not oppose the present motion (Notice of Pl’s Mot (ECF No. 43) 25 at 2–3) and are signatories to the Proposed Consent Decree (Pl’s Mot. at 1 n.1). 26

27 3 Under CERCLA, parties that are responsible for disposing hazardous waste are generally jointly and severally liable for the costs associated with the management of that waste. Arizona v. City of Tucson, 28 761 F.3d 1005, 1011 (9th Cir. 2014). 1 B. Proposed Consent Decree 2 The Proposed Consent Decree has been agreed to and signed by all parties. 3 (See Proposed Consent Decree at 40–57.) For purposes of the Consent Decree, DTSC 4 estimated that post-closure activities will amount to $29,564,801 over the next 500 5 years. (Pl’s Mot. at 5.) Under the terms of the agreement, the “Settling Defendants” 6 are split into two groups: the Participating Parties and the Cashout Parties, each with a 7 different set of obligations. (Proposed Consent Decree at 9, 14.) 8 The Participating Parties will be required to establish a Qualified Settlement 9 Fund (“QSF”) which shall be responsible for funding the future costs of operating the 10 Montezuma Hills Facility. (Id. at 9.) A Non-Qualified Settlement Fund (“Non-QSF”) will 11 also be established by the Participating Parties. (Qualified Settlement Fund 12 Agreement (ECF No. 39-1, App. B) at 2–3.) Where the QSF is intended to hold 13 settlement funds required by the Proposed Consent Decree, the Non-QSF is 14 designated “to hold and disburse any Settlement Funds received in connection with 15 the Consent Decree that cannot be placed into the QSF, including, but not limited to, 16 revenue generated at the Facility if applicable, together with any investment returns 17 on such Non-QSF funds.” (Id.) The QSF and Non-QSF will provide a continual source 18 of funding for the ongoing operation of the Montezuma Hills Facility. (Pl’s Mot.

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CA Dept. of Toxic Substances Control v. Chevron Oronite Co. LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ca-dept-of-toxic-substances-control-v-chevron-oronite-co-llc-caed-2024.