Consolidation Coal Co. v. United States Department of Interior

43 F. Supp. 2d 857, 1999 WL 171222
CourtDistrict Court, S.D. Ohio
DecidedMarch 25, 1999
DocketC2-94-248, C2-94-785
StatusPublished
Cited by4 cases

This text of 43 F. Supp. 2d 857 (Consolidation Coal Co. v. United States Department of Interior) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Consolidation Coal Co. v. United States Department of Interior, 43 F. Supp. 2d 857, 1999 WL 171222 (S.D. Ohio 1999).

Opinion

OPINION AND ORDER

KEMP, United States Magistrate Judge.

This is an environmental cleanup action which concerns a municipal dump and coal mine waste disposal site located in Belmont County, Ohio, and referred to by the parties as the Buckeye Landfill. As is typical in such actions, a number of different parties, both owners and operators of the site and generators of waste which was disposed of at the site, have become involved in the litigation and in the effort to clean up the site. As is also fairly typical, although there are still a handful of parties who apparently intend to litigate the issue of their proportional shares of the cleanup costs, there have been many settlements entered into by and among potentially responsible parties, including Consolidation Coal Company, an owner/operator of the site, and Beazer East, Inc., a generator of hazardous wastes. As a result of those parties’ settlement, a “Stipulation of Partial Discontinuance” was filed on July 10, 1998 which dismissed with prejudice all cross-claims between Consolidation, or Consol, and Beazer. Although the settlement agreement itself was not filed with' the Court, the stipulation (which was signed by the Honorable Joseph P. Kin-neary, United States District Judge, on July 13, 1998) stated that it was “[biased upon” the parties’ settlement agreement and that it was “without prejudice to Con-sol’s rights under paragraph l(k) of the ... Settlement Agreement to reopen settlement with Beazer as provided therein.”

*860 On August 12, 1998, Consol filed a motion to enforce the settlement agreement. Although its arguments will be set forth in much greater detail below, for introductory purposes it is sufficient to state that Consol contends that the “reopener” clause of the settlement agreement referred to in the stipulation of partial dismissal has been triggered and permits Consol to revisit the terms of the settlement agreement. The filing of that motion produced a flurry of additional briefing and motions, including a memorandum submitted by Triangle Wire & Cable, one of the other parties to the case, the usual responsive and reply memoranda, a motion by Beazer for leave to file a surreply, a motion by Consol for leave to amend its motion to enforce, and opposing and reply memoran-da with respect to that motion. The parties have agreed that, as a result of the nature of the issues raised by the motion to enforce, that motion should be heard and determined by a different judicial officer than the one who will preside over the allocation trial which is still to come. Consequently, they consented to have the matter decided by the undersigned. This Opinion and Order represents the Court’s decision on the motion to enforce.

I.

The facts underlying the parties’ dispute are relatively easy to state, although the parties’ interpretation of these facts varies greatly. Because the parties’ dispute arises out of a settlement agreement, it is logical to begin with a recitation of the central provisions of that agreement.

The settlement agreement was entered into on June 27, 1996, and involved nine parties. It is fair to characterize the agreement as being between Consol, on the one hand, and the other eight parties, Allegheny Ludlum Corporation, USX Corporation, Beazer East, Inc., National Steel Corporation, SKF USA, Inc., Ashland, Inc., Aristech Chemical Corporation, and the Pullman Company, on the other hand. Those latter eight parties are also defined in the agreement as the “settling parties.”

The agreement recited that all of the parties, including Consol, intended to participate in funding and performing a modified remedy at the site in accordance with the terms of a consent decree which was yet to be negotiated with the United States Environmental Protection Agency. It further recited that these parties desired to resolve among themselves all of their claims against each other for cost recovery and/or contribution under CERC-LA. In order to do that, Consol agreed to be responsible for performing the obligations required to implement the consent decree, in exchange for receiving 20 percent of the total costs to be incurred with regard to the site from the eight settling parties. The settlement agreement makes reference to the fact that other generator parties would also be expected to contribute in some way to the cost of the remedy, although the contribution of one of them, Wheeling-Pittsburgh Steel Corporation, was capped at 10 percent of the total costs. The issue which will be tried in this case, if no additional settlements are reached, involves allocating costs among Consol, Triangle Wire & Cable, and Neville Chemical Company, a third-party defendant.

The settling parties’ 20 percent share of the total costs was -subdivided into shares of each settling party. Beazer’s share was 4.00 percent, as reflected on Exhibit A to the settlement agreement, although Exhibit A-l purported to show a “more accurate volumetric allocation of the 20 percent aggregate share among the settling parties .... ” Settlement Agreement, ¶ l(k). On that exhibit, Beazer’s share is 4.02 percent. Although apparently not set forth in the settlement agreement itself, the parties agree that Beazer’s share was calculated based upon a belief that it contributed 1,195 tons of waste to the landfill, which represents 3.28 percent of the total volume contributed by the settling parties, Wheeling Pitt, and Triangle. See Appendix to Consolidation Coal Company’s Mem *861 orandum in Support of Motion to Enforce Settlement Agreement Against Beazer East, Inc., Exhibit C.

Of central importance to this dispute is the language that the parties chose to include in paragraph l(k) which, under certain circumstances, gave Consol the right to reopen the settlement agreement and provided for a recalculation of the percentage share to be allocated to the settling parties. The pertinent language is as follows:

“This settlement is subject to a reopener by Consol against any Settling Party if it is concluded in the judicial allocation proceeding that any such Settling Party has understated its volumetric contribution to the Site, excluding waste that does not contain hazardous substances, by an amount shown to be .2 percent greater than the larger share attributable to any Settling Party as set forth on either Exhibit A or Exhibit A-l attached hereto.... Upon execution of this Agreement, the Settling Parties shall provide Consol with all data used to prepare the volumetric allocation set forth on Exhibit A attached hereto and all available information concerning the character and the amount of wastes containing hazardous substances allegedly contributed by each Settling Party to the Site.”

The meaning of some of the language . contained in this “reopener clause” is not in dispute. The greater share attributable to Beazer East on either Exhibit A or Exhibit A-l is 4.02 percent, so that if, pursuant to the reopener clause, Beazer’s share is actually determined to be more than 4.22 percent (which is .2 percent greater than the share shown on Exhibit A-l), the settlement is subject to a “reo-pener ....

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Bluebook (online)
43 F. Supp. 2d 857, 1999 WL 171222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consolidation-coal-co-v-united-states-department-of-interior-ohsd-1999.