CA Dept. of Toxic Substances Control v. Exxon Mobil Corp.

CourtDistrict Court, E.D. California
DecidedFebruary 15, 2024
Docket2:21-cv-01739
StatusUnknown

This text of CA Dept. of Toxic Substances Control v. Exxon Mobil Corp. (CA Dept. of Toxic Substances Control v. Exxon Mobil Corp.) 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. Exxon Mobil Corp., (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-01739-DJC-JDP TOXIC SUBSTANCES CONTROL, et 12 al., 13 Plaintiffs, ORDER

14 v.

15 EXXON MOBIL CORPORATION, et al., 16 Defendants. 17 18 This action is one of two Comprehensive Environmental Response, 19 Compensation, and Liability Act (“CERCLA”) enforcement actions in this Court filed by 20 the California Department of Toxic Substances Control (“DTSC”) and the Toxic 21 Substances Control Account (“TSCA”)1 related to former landfill and hazardous waste 22 sites managed by the IT Environmental Liquidating Trust (“ITELT”).2 Before the Court 23 1 Plaintiff TSCA is an account within the State of California General Fund that may be used by the DTSC 24 to fund response costs. (Pl’s Mot. at 2.) Plaintiff TSCA must be a party to this action under California law, even though Plaintiff DTSC appears to be the main plaintiff in this action. (Id.) Plaintiff DTSC and 25 Plaintiff TSCA will be jointly referred to as “Plaintiffs” for purposes of this order. 2 The ITELT was established to oversee the long-term post-closure operation and maintenance of 26 several landfill sites following the bankruptcy of IT Corporation, the former owner and operator of these facilitates. (Second Am. Compl. (ECF No. 84) ¶ 75.) The other CERLCA suit filed by the Plaintiffs and 27 pending before this Court is California Department of Toxic Substances Control v. Chevron Oronite Company, LLC, et al., No. 2:21-cv-01737-DJC-JDP. Plaintiffs have filed a Motion for Approval and Entry 28 of Consent Decree in that action as well. This order and an order in the other ITELT case will be issued 1 is a Motion for Approval and Entry of a Consent Decree entered into by DTSC and 2 named Defendants who disposed of hazardous waste at a landfill located in Benicia, 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 Panoche Facility. (Pl’s 10 Mot. (ECF No. 91) at 1.) The Panoche Facility is a ”former hazardous waste and solid 11 waste landfill” located in Benicia, California. (Id. at 2–3.) The Panoche Facility 12 “managed and disposed of” hazardous waste between at least 1968 to 1986. (Id. at 13 3.) Plaintiffs claim the 56 Defendants to this action and their affiliates disposed of 14 hazardous waste at the Panoche Facility. (Id.) Plaintiffs claim that the management of 15 the hazardous waste at this location “resulted in releases of hazardous substances that 16 are present in the soil, soil vapor, and groundwater at the [Panoche] Facility.” (Id.) A 17 certification of the Panoche Facility’s closure was accepted by the DTSC on March 27, 18 2003. (Id.) 19 Until May 1, 2004, the Panoche Facility was operated by the IT Corporation. (Id. 20 at 3.) After the IT Corporation underwent bankruptcy, the ITELT was created to act as 21 operator of the Panoche Facility and provide ongoing oversight of the post-closure 22 operations and maintenance. (Id.) ITELT’s post-closure responsibilities included 23 “routine inspections, maintenance and compliance activities, recovery and 24 management of groundwater, leachate, and soil vapor, long-term groundwater, 25 leachate and soil vapor monitoring, soil vapor and water quality sampling and 26 reporting, and response to potential and immediate threats, newly identified releases, 27

28 simultaneously. 1 and emergency contingencies such as floods, fires, and earthquakes.” (Id. at 4–5.) 2 ITELT was also required to provide adequate financial assurances for these 3 operations. (Id.) 4 On February 29, 2016, Plaintiff DTSC issued a “summary of violations” to ITELT 5 “stat[ing], among other things, that the Facility was in violation of the financial 6 assurance requirements because ITELT’s financial assurance was underfunded and 7 less than the total post-closure cost estimate.” (Id. at 4.) ITELT responded by 8 informing DTSC that it did not have assets or mechanisms to get those assets to meet 9 the financial assurance requirements. (Id.) Plaintiff DTSC determined that ITELT’s 10 inability to meet these requirements would prevent “(a) actions ensuring the 11 protectiveness of the landfill covers, (b) collection and treatment of groundwater and 12 leachate, and (c) monitoring of the surrounding environment for impacts from 13 hazardous waste and solid waste left in place at the [Panoche] Facility[,]” and informed 14 ITELT and parties who had previously disposed of waste at the Panoche Facility 15 (including Defendants) “that termination of [post-closure] activities would pose an 16 imminent and substantial endangerment to human health, the public, and the 17 environment.” (Id.) Plaintiff DTSC then engaged in response actions that, as of 18 December 31, 2022, allegedly cost DTSC $1,138,644.91. (Id. at 5.) 19 In filing this action Plaintiffs seeks past costs for Plaintiff DTSC’s response at the 20 Panoche Facility as well as a declaratory judgment that Defendants are liable3 for 21 future costs Plaintiff DTSC will incur addressing the release of or threatened release of 22 hazardous waste. (Id. at 6.) Pursuant to a settlement between the parties, Plaintiffs 23 now request the Court approve and enter the Proposed Consent Decree previously 24 lodged with the Court. (Proposed Consent Decree (ECF No. 85-1).) The Defendants 25 //// 26

27 3 Under CERCLA, parties that are responsible for disposing of 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 jointly do not oppose the present motion (Notice of Pl’s Mot (ECF No. 91) at 3–4) and 2 are signatories to the Proposed Consent Decree (Pl’s Mot. at 1 n.1). 3 B. Proposed Consent Decree 4 The Proposed Consent Decree has been agreed to and signed by all parties. 5 (See Proposed Consent Decree at 40–96.) For purposes of the Consent Decree, DTSC 6 estimated that the cost of post-closure activities will amount to $151,676,518 over the 7 next 500 years. (Pl’s Mot. at 5.) Under the terms of the agreement, the “Settling 8 Defendants” are split into two groups: the Participating Parties and the Cashout 9 Parties, each with a different set of obligations. (Proposed Consent Decree at 9, 14.) 10 The Participating Parties will be required to establish a Qualified Settlement 11 Fund (“QSF”) which shall be responsible for funding the future costs of operating the 12 Panoche Facility. (Id. at 9.) A Non-Qualified Settlement Fund (“Non-QSF”) will also be 13 established by the Participating Parties. (Qualified Settlement Fund Agreement (ECF 14 No. 85-1, App. B) at 2–3.) Where the QSF is intended to hold settlement funds 15 required by the Proposed Consent Decree, the Non-QSF is designated “to hold and 16 disburse any Settlement Funds received in connection with the Consent Decree that 17 cannot be placed into the QSF, including, but not limited to, revenue generated at the 18 Facility if applicable, together with any investment returns on such Non-QSF funds.” 19 (Id.) The QSF and Non-QSF will provide a continual source of funding for the ongoing 20 operation of the Panoche Facility. (Pl’s Mot.

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Bluebook (online)
CA Dept. of Toxic Substances Control v. Exxon Mobil Corp., Counsel Stack Legal Research, https://law.counselstack.com/opinion/ca-dept-of-toxic-substances-control-v-exxon-mobil-corp-caed-2024.