Davies v. National Cooperative Refinery Ass'n

963 F. Supp. 990, 45 ERC (BNA) 1174, 1997 U.S. Dist. LEXIS 6623, 1997 WL 244963
CourtDistrict Court, D. Kansas
DecidedMarch 20, 1997
Docket96-1124-WEB
StatusPublished
Cited by11 cases

This text of 963 F. Supp. 990 (Davies v. National Cooperative Refinery Ass'n) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davies v. National Cooperative Refinery Ass'n, 963 F. Supp. 990, 45 ERC (BNA) 1174, 1997 U.S. Dist. LEXIS 6623, 1997 WL 244963 (D. Kan. 1997).

Opinion

Memorandum and Order

WESLEY E. BROWN, Senior-District Judge.

This dispute arises out of the contamination of groundwater underlying plaintiffs, real property near McPherson, Kansas. Count I of the complaint alleges a claim under the Resource Conservation alleges pendent state law claims. The matter is now before the court on summary judgment motions filed by the National Cooperative Refinery Association (“NCRA”) (Doc. 73) and Coastal Refining & Marketing, Inc. (“Coastal”) (Doc. 76).

Facts.

For purposes of summary judgment, the court finds no genuine dispute as to the following facts.

1. Davies Communications, Inc., is the owner of certain real property in the Southeast Quarter of Section 5, Township 10 South, Range 3 West of the 6th Principal Meridian, McPherson County, Kansas (hereinafter “the radio station property” or “the real property”). The property is used to operate a radio station. Located on the property are a broadcast tower, studio, and office building, all of which are owned by Davies Communications, Inc. The individual plaintiffs, Jerry and Diane Davies, are officers and shareholders of the company.

2. The radio station property is about a mile and a half south of McPherson, Kansas. The area immediately around the station has been a center for refining and handling of petroleum products for many years. A National Coop Refinery Association (NCRA) refinery and storage facilities are located west, northwest, and directly north of plaintiffs’ property. To the north and east of plaintiffs’ property are storage and distribution facilities for KANEB Pipeline Company and CE-NEX. Directly to the south is an abandoned distribution terminal that was once operated by Derby Refining Company, a predecessor of defendant Coastal. ¡Coastal now owns the property. The area around the radio station *992 also includes numerous pipelines. (Coastal Exh. 1 at 1).

3. In 1968, Robert B. Hapgood was employed by the radio stations which are now owned by plaintiff Davies. As early as 1968, Mr. Hapgood and other employees were aware of the presence of hydrocarbons in the radio stations’ water. Employees could smell the hydrocarbons in the water and could see a sheen on top of it. They joked that you should not throw cigarettes in the toilet or the radio station might blow up. (Coastal Exh. 2).

4. In 1978, groundwater contamination was found in a well on the Larry Weibert property to the east and north of the Derby tank farm. As a result, NCRA drilled Weibert a new uneontaminated well on November 16,1978, that was 165 feet deep. (Coastal Uneontroverted Fact # 3).

5. In early November of 1984, Joe Engle, the manager and part-owner of the radio station, complained to the Salina District Office of the Kansas Department of Health and Environment (KDHE) about the presence of gasoline in the water well at the station. (Coastal Exh. 6). A sample from the well was obtained by KDHE and tested; it showed the presence of gasoline. (Coastal Uneontroverted Fact # 4).

6. On December 18, 1984, NCRA drilled a new water well for the radio station. (Id). The newer well is located seventy-five feet north of the old well and is deeper than the old well. A water sample collected from the new well on December 27, 1984, was tested by KDHE and showed no petroleum hydrocarbons or gasoline. The original well was retained for future use as an observation well by KDHE and Bengel Broadcasting. (NCRA Uneontroverted Fact # 7).

7. On October 1, 1985, Davies Communications, Inc., purchased the radio station from Bengel Broadcasting. (Coastal Exh. 14). Prior to the purchase, plaintiffs were informed by Joe Engle that NCRA had recently drilled them a new water well because the old well had “gone bad.” 1 (Coastal Uncontroverted Fact # 7).

8. After the discovery of groundwater contamination beneath the radio station, NCRA discovered petroleum hydrocarbon contamination beneath its own property.

9. Since the 1980s, NCRA has operated a containment-recovery system under its refinery north and west of the radio station to recover lost free-phase product and to remediate groundwater contamination at the site. This recovery system includes pumping large volumes of groundwater to create a cone of depression which causes floating free-phase petroleum to concentrate at the lowest areas where it is recovered. The drawdown cone extends southward from NCBA’ 5 refinery and includes the areas under the radio station and the Coastal property. Petroleum products under the Coastal and radio station properties are being drawn into this cone. (Coastal Uneontroverted Fact # 12).

10. On October 26, 1988, NCRA and the KDHE entered into a settlement agreement pursuant to which NCRA agreed to take certain steps to investigate and monitor the pollution, to continue NCRA’s operation of a groundwater/hydrocarbon recovery system, and to submit annual reports relating to the site. (NCRA Exhs. F & G). The agreement further provided that it represented KDHE’s professional judgment based upon currently available information and that if circumstances changed or if data indicated an imminent threat of danger to public health or the environment, then KDHE retained the right to modify or add to the requirements of the agreement. (NCRA Exh. G at 6.)

11. Derby acquired part of the Southeast Quarter of Section 5, Township 20 South, Range 3 West in McPherson County, Kansas, in October, 1947. Derby operated a products terminal and truck loading facility on that *993 property (located approximately one and one-half miles south of McPherson, Kansas) from the late 1940’s until the summer of 1982. At that time operations ceased and the property was vacated. (Coastal Uncontroverted Fact #13).

12. The terminal was connected to the Derby Refinery in Wichita, Kansas, by a four-inch products pipeline which delivered refined products such as gasoline and diesel fuel to the terminal. At the terminal the products were stored in above-ground tanks until being piped to a truck-loading rack to load trucks as needed. (Id. # 14). In May, 1983, the Derby property was sold to Roman, Inc., under a contract of sale with a deed to the property being placed in escrow. In February, 1986, Roman defaulted on the contract of sale and in December, 1989, Coastal received back from the escrow holder the deed to the property. It is Coastal’s information and belief that Roman never conducted operations on the property. In July, 1994, Coastal quieted title to the property but never resumed operations there. (Id. #15).

13. During the time that Derby , operated the terminal, truck drivers would sometimes clean out their trucks and dump hydrocarbon products on the ground at the terminal. At times, hydrocarbon products spilled over as the trucks were being loaded because the driver left the truck unattended. Also, the four-inch pipeline that ran from the Derby Refinery in Wichita to the McPherson terminal had leaks in it from time to time around the terminal facility grounds. (Id. # 16).

14. On or about March 2, 1973, a diesel oil spill of 100 to 150 gallons occurred when a tank truck inadvertently overflowed during a loading operation. (Id. # 17).

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Bluebook (online)
963 F. Supp. 990, 45 ERC (BNA) 1174, 1997 U.S. Dist. LEXIS 6623, 1997 WL 244963, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davies-v-national-cooperative-refinery-assn-ksd-1997.