Hermes Consolidated, Inc. v. People

849 P.2d 1302, 36 ERC (BNA) 2033, 1993 Wyo. LEXIS 75, 1993 WL 98255
CourtWyoming Supreme Court
DecidedApril 6, 1993
Docket92-89
StatusPublished
Cited by4 cases

This text of 849 P.2d 1302 (Hermes Consolidated, Inc. v. People) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hermes Consolidated, Inc. v. People, 849 P.2d 1302, 36 ERC (BNA) 2033, 1993 Wyo. LEXIS 75, 1993 WL 98255 (Wyo. 1993).

Opinions

CARDINE, Justice.

After a bench trial, the district court entered an order which required Hermes Consolidated Inc. (Hermes) to implement hazardous waste remediation procedures at their refinery. Hermes appeals claiming that the State Department of Environmental Quality (DEQ) is pre-empted by an EPA federal consent decree entered pursuant to the federal Resource Conservation and Recovery Act (RCRA). We agree and reverse.

Appellant raises these issues:

1. Is the State of Wyoming pre-empted from regulating the defendant’s refinery in a manner that is inconsistent and in conflict with regulations and a remediation plan imposed by the United States Environmental Protection Agency resulting from an action in the United States District Court of Wyoming?
2. Did the district court have statutory authority to order a remediation plan? Since the evidence did not demonstrate irreparable harm and there was no finding of irreparable harm by the court to support issuance of an injunction under the court’s equitable powers, did the district court err in ordering a remediation plan characterized as injunctive relief?
3.Did the district court err in attempting to settle this case as a mediator, in admitting settlement documents into evidence during the trial and ordering settlement negotiations after the trial?

FACTS

Hermes Consolidated, Inc., a Delaware corporation, purchased the oil refinery at Newcastle, Wyoming in 1977. The refinery had been built more than forty years earlier and operated by various owners during that period of time. Hermes continues to operate the refinery under the trade name Wyoming Refining Company (WRC).

When Hermes purchased the refinery, it was aware of its potential pre-existing environmental problems. In 1979, the State of Wyoming initiated environmental enforcement litigation against Hermes because WRC was in violation of a National Pollution Discharge Elimination System (NPDES) permit that they had been issued pursuant to the Clean Water Act. In August of 1979, the State and Hermes reached an agreement for resolution of the problems at the refinery and a consent decree was entered.

In 1983 the United States Environmental Protection Agency (EPA) started enforcement proceedings against Hermes for violations of the Resource Conservation and Recovery Act (RCRA). That action proceeded through the administrative process, an Administrative Law Judge and eventually the EPA Administrator. Hermes was dissatisfied with the result of the administrative process and initiated a suit in federal court against the EPA. EPA counterclaimed for additional violations of RCRA and the Clean Water Act and requested a full site investigation and assessment. Meanwhile, in 1985, Hermes and the State modified the NPDES consent decree.

In April of 1988, before the trial was to begin in federal court, Hermes and the EPA settled the case by agreement upon a [1305]*1305proposed consent decree. Pursuant to federal law, the consent decree was published in the Federal Register, and all interested parties were invited to submit comments. See 28 C.F.R. § 50.7 (1991). In addition, Hermes and the EPA met with State of Wyoming representatives, encouraged them to participate in the federal litigation, and made efforts to include the State of Wyoming’s views in the consent decree.

On June 1, 1988, the federal consent decree was filed and entered in the United States District Court. The consent decree required comprehensive remediation.

On January 6, 1989, just seven months after Hermes had settled the dispute with EPA, the Attorney General of Wyoming commenced a state enforcement action by filing a second suit against Hermes in state district court. The State alleged that structures at the refinery as well as the standard operations of the refinery had caused the discharge of pollution in violation of state law. The State asked for a penalty of $10,000.00 per day and that further violations be enjoined.

Hermes contended that jurisdiction over, the regulation of hazardous waste rested exclusively with the federal government under RCRA provisions. Hermes alleged that the State’s actions violated the Supremacy Clause of the United States Constitution, United States Constitution Article VI, clause 2. Hermes also argued that, since the State had failed to adopt standards and obtain certification of its own hazardous waste program, it was pre-empt-ed and lacked jurisdiction. Hermes moved for summary judgment which, on September 27, 1989, was denied by the district court.

Thereafter, following an eight-day bench trial, the district court issued its opinion letter on September 3, 1991, which asked both sides to submit remediation plans. The district court then, on October 23, 1991, entered findings of fact and an interim order. After a series of additional hearings, letters, and responses, the district court entered an amended final order which outlined the State’s remediation plan that Hermes was to undertake at the refinery. The district court certified its order as a final order. Hermes now appeals to this court asserting, among other objections, that the remediation required by the State directly conflicts with the remediation ordered by the EPA in the federal consent decree.

THE FEDERAL RESOURCE CONSERVATION AND RECOVERY ACT

The Resource Conservation and Recovery Act was enacted in 1976. See William H. Rodgers, Jr., 3 Environmental Law: Pesticides and Toxic Substances, § 7.1 at 510 (1988) (hereinafter Rodgers, Environmental Law). Substantial amendments were added in 1984 through the Hazardous and Solid Waste Amendments Act. Rodgers, Environmental Law, § 7.1 at 511. Two of the expressly stated purposes of RCRA are to: 1) assure that hazardous waste management practices are conducted in a manner which protects human health and the environment; and 2) require that hazardous waste be properly managed in the first instance thereby reducing the need for corrective action at a future date. 42 U.S.C. § 6902(b) (1988).

In order to execute the national policy of safe hazardous waste management, RCRA contains a cooperative federalism scheme. Under that scheme, a state may adopt regulations which at least guarantee the federal minimum in accordance with 42 U.S.C. § 6926(b) (1988), which provides:

Any State which seeks to administer and enforce a hazardous waste program * * * may develop and, after notice and opportunity for public hearing, submit to the Administrator an application * * * for authorization of such program.

If the EPA approves the state’s proposed regulations, the state, rather than the EPA, is then authorized to regulate hazardous waste. State actions taken under the authorized program have the same force and effect as actions taken by the EPA as provided by 42 U.S.C. § 6926(d) (1988):

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849 P.2d 1302, 36 ERC (BNA) 2033, 1993 Wyo. LEXIS 75, 1993 WL 98255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hermes-consolidated-inc-v-people-wyo-1993.