Greenwich Terminals LLC v. Department of Natural Resources & Curran v. Department of Natural Resources

Superior Court of Delaware·Decided April 14, 2025·No. N24A-06-002 KMM; N24A-06-005 KMM·Published

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

GREENWICH TERMINALS LLC, ) GLOUCESTER TERMINALS LLC and ) GMT REALTY, LLC, )

)

Appellants, )

)

v. ) C.A. No. N24A-06-002 KMM )

DEPARTMENT OF NATURAL ) RESOURCES AND ENVIRONMENTAL ) CONTROL AND DIAMOND STATE ) PORT CORPORATION, )

)

Appellees. )

)

)

WALTER F. CURRAN, )

)

Appellant, )

)

v. ) C.A. No. N24A-06-005 KMM )

DEPARTMENT OF NATURAL ) RESOURCES AND ENVIRONMENTAL ) CONTROL AND DIAMOND STATE ) PORT CORPORATION, )

)

Appellees. )

)

Date Submitted: January 14, 2025 Date Decided: April 14, 2025

MEMORANDUM OPINION AND ORDER

Appeal from Environmental Appeals Board: Affirmed in part, Reversed and Remanded in part.

Thaddeus J. Weaver, DILWORTH PAXSON LLP, Wilmington, DE, Shoshana (Suzanne Ilene) Schiller (argued), Jill Hyman Kaplan, Brandon P. Matsnev, MANKO GOLD KATCHER FOX LLP, Bala Cynwyd, PA, Attorneys for Appellants Greenwich Terminals LLC, Gloucester Terminals LLC, and GMT Realty, LLC.

Patrick M. Brannigan, ECKERT SEAMANS CHERIN & MELLOTT, LLC, Wilmington, DE, Michelle M. Skjoldal, ECKERT SEAMANS CHERIN & MELLOTT, LLC, Harrisburg, PA, David A. Rockman (argued), ECKERT SEAMANS CHERIN & MELLOTT, LLC, Pittsburgh, PA, Attorneys for Appellant Walter F. Curran.

Devera Breeding Scott, (argued) STATE OF DELAWARE DEPARTMENT OF JUSTICE, New Castle, DE, Attorneys for Appellees Department of Natural Resources and Environmental Control.

Wali W. Rushdan II, William J. Burton (argued), Gabriella Mouriz, BARNES & THORNBURG LLP, Wilmington, DE, Attorneys for Appellee Diamond State Port Corporation.

ii

I. INTRODUCTION

The former DuPont Edge Moor facility, located along the Delaware River Channel (the “Channel”) just east of Wilmington, was plagued by toxic contamination for years. After the plant closed, Diamond State Port Corporation (“Diamond State”) purchased the site and announced plans to develop a new state- of-the-art port. The project provided both a solution to the contamination and a boost to Delaware’s economy. The new port would quadruple the Wilmington Port’s capacity, cleanup the toxic waste, create over 10,000 jobs, and generate millions in tax revenue for Delaware.

To proceed with the project, Diamond State applied for various state and federal permits, including a permit from the Department of Natural Resources and Environmental Control (“DNREC”) under the Subaqueous Lands Act. Diamond State’s DNREC permit application drew lots of support and several objections, including objections by Walter F. Curran (“Curran”), and Greenwich Terminals LLC, Gloucester Terminals LLC, and GMT Realty, LLC (collectively “Greenwich”). Curran raised objections based on the project’s impact on recreational fishing in the area. Greenwich, which owns and operates ports north of the site, raised objections based on the negative impact the new port would have on navigation in the Channel, among other concerns.

After a long public comment period and a hearing, DNREC’s Secretary issued an Order approving Diamond State’s permit application. Greenwich and Curran appealed to the Environmental Appeals Board1 (the “Board”). The Board consolidated the appeals and heard oral argument after the parties submitted testimony through affidavits. The Board ruled that Greenwich and Curran did not carry their burden to demonstrate that the Secretary’s Order was not supported by the evidence in the record, and DNREC’s decision was affirmed.

Here, Greenwich argues that the Board’s procedural errors require its decision to be reversed and remanded, asserting that the Board applied an incorrect standard of review and failed to make factual findings. Curran argues that the Board improperly consolidated his appeal with the other appellants. Both argue that the Board’s decision is not supported by substantial evidence and that the Board committed error by not requiring Diamond State to file an updated permit application.

Curran has shown no prejudice, let alone undue prejudice, by the consolidation. The Board did not abuse its discretion in consolidating the appeals. The Board’s ruling on consolidation is AFFIRMED.

1 The Philadelphia Regional Port Authority (“Philadelphia Port Authority”) also appealed to the Board but it did not pursue a further appeal in this Court.

The parties spar over whether the Board effectively rubber-stamped DNREC’s decision or applied the appropriate standard of review. Greenwich points to language in the decision that it says supports the notion that the Board essentially conducted a “check-the-box” review. Diamond State and DNREC argue that the Board properly deferred to the Secretary’s judgment. But because the Board did not explain its reasoning, the Court cannot determine what level of review the Board actually applied.

The Board concluded that Greenwich and Curran did not sustain their burden of proof on appeal. Given the magnitude of the project and the significant amount of dredging that will be required, it appears that Greenwich’s and Curran’s experts raised valid and serious concerns, but the Board summarily rejected this evidence without explanation. While this Court’s review of an administrative board’s decision is deferential, it cannot defer to a decision that fails to reflect a rational consideration of the evidence. The Court cannot conduct its review if the administrative board does not make findings and provide an explanation for its decision. Here, the Board did not make factual findings, provide an analysis of the evidence presented, or explain its reasoning. Accordingly, the decision is REVERSED, and the matter is REMANDED.

II. FACTUAL AND PROCEDURAL BACKGROUND A. The Site and the Parties Until 2016, DuPont, and later Chemours, operated a titanium dioxide production facility at its Edge Moor facility.2 The site is approximately 115 acres located along the Delaware River Channel just east of Wilmington. The site has been plagued by toxic contamination for years. The facility was demolished prior to Diamond State’s purchase of the site in 2017.

The Channel begins just off the Delaware coast between Lewes, Delaware and Cape May, New Jersey and runs up to Trenton, New Jersey. Many commercial ports are situated along the Channel. The Pilots’ Association for the Bay & River Delaware (the “Pilots’ Association”) is responsible for the safe navigation of commercial vessels in the Channel.3 A pilot will board a ship before it enters the Channel and directs the navigation of the vessel through the Channel.4 Diamond State is “a public entity within the Delaware Department of State, created to support the public interest and to serve Delaware citizens.”5 It was created in “1995 [after] the State of Delaware purchased the Port of Wilmington from the

2 Secretary’s Order, p. 2, PORTAPPX000029. 3 https://delpilots.org/ 4 Id. 5 Environmental Appeals Board Hearing Transcript, February 13, 2024 (“Board Tr.”), p. 140, CURRANAPPX-0162.

City of Wilmington.”6 Diamond State is responsible for promoting and maintaining the Port of Wilmington as a competitive and viable commercial operation.7 Curran is a Delaware citizen who has a background in the shipping industry.

He worked as a Stevedore/Marine Terminal operator at several ports and assisted in dredging projects.8 He has worked, boated, and fished on the Delaware River in the area near the proposed new port for over 30 years.9 In recent years, he fished on the Delaware River three to four times a year.

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