ESSO Standard Oil Co.(Puerto Rico) v. Mujica Cotto

327 F. Supp. 2d 110, 2004 WL 1700970
CourtDistrict Court, D. Puerto Rico
DecidedJune 30, 2004
DocketCIV.03-2319 CCC JA
StatusPublished
Cited by4 cases

This text of 327 F. Supp. 2d 110 (ESSO Standard Oil Co.(Puerto Rico) v. Mujica Cotto) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ESSO Standard Oil Co.(Puerto Rico) v. Mujica Cotto, 327 F. Supp. 2d 110, 2004 WL 1700970 (prd 2004).

Opinion

OPINION AND ORDER

ARENAS, United States Magistrate Judge.

I. INTRODUCTION

Plaintiff Esso Standard Oil Company (Puerto Rico) (hereinafter “Esso”) filed the present action against defendants: (1) Esteban Mujica Cotto (hereinafter “Mujica”) in his official capacity as president of the Puerto Rico Environmental Quality Board (hereinafter “EQB”) and in his personal capacity; (2) Flor Del Valle López (“Del Valle”) in her official capacity as current vice-president of the EQB and in her personal capacity; (3) Ángel Berrios Silvestre (“Berrios”) in his official capacity as Associate Member of the EQB and in his personal capacity; and (4) Norman Velázquez Torres (hereinafter “Velazquez”) in his official capacity as a lawyer of the EQB and in his personal capacity. (Amended Complaint, Docket No. 10.) The present action is brought under the provisions of 42 U.S.C. § 1983 for violations of rights guaranteed to Esso by the Fourteenth Amendment of the United States Constitution. Supplemental jurisdiction is alleged for claims brought under Puerto Rico law. Esso seeks declaratory and injunctive relief.

The central allegation in Esso’s amended complaint is that the EQB has issued an administrative order directing Esso to investigate and cleanup soil and ground water contamination at a gasoline station located in Barranquitas, Puerto Rico. The administrative order also directs Esso to show cause why it should not be fined $75,960,000. Esso maintains that it cannot obtain a fair hearing before the EQB on the proposed penalty since it has been subjected to greatly biased adjudicative proceedings that infringe its rights under the Due Process Clause of the United States Constitution.

*113 This matter is before the court on motion for preliminary injunction filed by Esso on March 3, 2004. (Docket No. 13.) An “Opposition to Plaintiffs Petition for Preliminary Injunction” was filed by all defendants on April 19, 2004. (Docket No. 86.) A hearing was held before me on April 27, 2004. (Docket No. 98.) Esso filed its post-hearing brief on May 12, 2004. (Docket No. 103.) A response in opposition was filed by all defendants on June 10, 2004. (Docket No. 108.) After considering the arguments of the parties, the evidence presented at the hearing and for the reasons stated below, Esso’s motion for preliminary injunction is DENIED.

II. BACKGROUND

This case concerns a gasoline station located on road 156, km. 4.7, at La Vega Ward in Barranquitas, Puerto Rico (hereinafter “the station”). Carlos Rodriguez Pérez (hereinafter “Rodriguez”) assumed control of the station in 1971. In May, 1979, Rodriguez entered into a contract with Esso for the lease of storage tanks and for the purchase of fuel supplies. He operated the station, including its tank system, until the Barranquitas Fire Department ordered the station closed in August, 1998.

Prior to 1991, the station’s fuel was stored in an underground storage tank (hereinafter “UST”) system consisting of two 4,000-gallon storage tanks for premium and regular gasoline and one 2,500-gallon above-ground storage tank for diesel. In 1991, Esso replaced the UST system with two 10,000-gallon storage tanks and one 4,000-gallon above-ground tank respectively. In 1992, Rodriguez filed suit against Esso in the Puerto Rico Court of First Instance, Bayamon Superior Part alleging the loss of approximately 65,000 gallons of gasoline from the old UST system. Over the years, the claimed loss has grown to 80,000 gallons (as reported to the National Response Center in 1997) and even 100,000 gallons (as reported by the EQB in 1998).

The EQB is an administrative agency created under the laws of the Commonwealth of Puerto Rico, specifically under the Environmental Public Policy Act, 12 P.R. Laws. Ann. § 1121 et seq, to promote conservation of the environment and the natural resources of Puerto Rico. In its enforcement capacity, the EQB has authority to issue “Orders to Do” to compel compliance with environmental statutes and regulations. Pursuant to this authority, in August, 1998, the EQB issued an order (“first order”) directing Esso to empty and test the integrity of the station’s UST system. Esso promptly complied, conducting a preliminary site assessment and submitting a report with its findings to the EQB. Esso reported, inter alia, (1) that a total of 1.74 gallons of fuel were found and recover from the 12 new monitoring wells that Esso had installed; (2) that the replacement UST system installed , in 1991 was intact and had not leaked; and (3) that ambient and air testing revealed no adverse impact due to the alleged fuel release.

On September 8, 1998, the EQB issued another order (“second order”) directing Rodriguez, Esso and the owners of the land to immediately undertake certain geophysical tests, perform a horizontal and vertical characterization of the area, place a product-gathering barrier along the banks of a river running behind the station (the Piñonas River), and prepare a soil remediation plan. Esso delivered the requested remediation plan within 48 hours and promptly submitted the work plan for the geophysical investigation.

During this time, the EQB transferred enforcement responsibilities and oversight of the station from the EQB’s UST program to a special committee. The transfer *114 was allegedly motivated by claims of corruption orchestrated by Carlos Belgodere Pamies (hereinafter “Belgodere”) who worked as a consultant for Rodriguez. The committee apparently failed to give timely responses to Esso’s work plan, thus delaying implementation of corrective measures. Esso’s efforts to ascertain the presence of any environmental impact at the station premises and surrounding areas, were hindered by the EQB’s alleged failure to approve the submitted plans despite the fact that Esso repeatedly indicated its availability and interest in resuming field investigation activities. It is also claimed that both Rodríguez and Belgo-dere denied or interfered with Esso’s access to the station in order to resume some of the field work. Notwithstanding Esso’s compliance with the first order and its demonstrated willingness to comply with the second one, a third order to do (“third order”) was issued by the EQB on October 25, 1999. Said order superceded and expanded on some of the requirements of the second order.

Esso submits that it has substantially completed the site investigation and evaluation required by the third order, 1 despite the EQB’s delay in approving the work plans and despite significant interference on the part of Rodríguez and Belgodere. Investigation and remediation efforts by Esso revealed and recovered about 550 spilled gallons of fuel which evidently is inconsistent with the claims made by Rodriguez and Belgodere of a spill of over 100,000 gallons.

On May 21, 2001, and despite Esso’s efforts to reduce the environmental impact at the station premises, the EQB issued a show cause order in which a $75,960,000 fine was proposed against Esso. 2

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Bluebook (online)
327 F. Supp. 2d 110, 2004 WL 1700970, Counsel Stack Legal Research, https://law.counselstack.com/opinion/esso-standard-oil-copuerto-rico-v-mujica-cotto-prd-2004.