In Re: Methyl Tertiary Butyl Ether ("MTBE") Products Liability Litigation

District Court, S.D. New York·Decided June 30, 2025·No. 1:00-cv-01898·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ----------------------------------- X : IN RE: Methyl Tertiary Butyl : Ether (“MTBE”) Products Liability : Master File Litigation : No: : 1:00-1898 This Document Relates To: : Commonwealth of Pennsylvania v. : 14cv6228 (DLC) Exxon Mobil Corporation, et al., : Case No. 1:14-cv-6228 : OPINION AND : ORDER : ---------------------------------- X

APPEARANCES:

For plaintiff Commonwealth of Pennsylvania: James A. Donahue, III Neil F. Mara Pennsylvania Office of the Attorney General Strawberry Square, 14th Floor Harrisburg, PA 17120

Michael Axline Tracey L. O’Reilly Molly McGinley Han Miller & Axline, P.C. 1050 Fulton Avenue, Suite 100 Sacramento, CA 95825

Stewart L. Cohen Robert L. Pratter Michael Coren Eric S. Pasternack Cohen, Placitella & Roth, P.C. 2001 Market Street, Suite 2900 Philadelphia, PA 19103

Yechiel Michael Twersky Daniel Berger Tyler E. Wren Berger Montague PC 1818 Market Street, Suite 3600 Philadelphia, PA 19103 For defendants CITGO Petroleum Corp. and CITGO Refining and Chemicals Co. L.P., and on behalf of moving defendants: Lisa S. Meyer Nathan P. Eimer Susan M. Razzano Gregory M. Schweizer Clare Chiodini Eimer Stahl LLP 224 South Michigan Avenue, Suite 1100 Chicago, IL 60604

DENISE COTE, District Judge: This case is part of a consolidated multi-district litigation (“MDL”) relating to the contamination of groundwater caused by releases of gasoline containing methyl tertiary butyl ether (“MTBE”). In this action, the Commonwealth of Pennsylvania (“Commonwealth”) alleges that the defendants, which include dozens of gasoline manufacturers, distributors, and sellers, are liable for actual or threatened MTBE contamination in Pennsylvania’s drinking water. Certain of the defendants in this MDL, referred to as refiner defendants and local terminal defendants, have moved for partial summary judgment based on a lack of evidence connecting them to certain Focus Sites.1 For the following reasons, the motion is granted in part.

1 The term Focus Sites is explained below. For a list of the defendants that are moving with respect to each Site, see Exhibit 1 to the Reply Declaration of Lisa S. Meyer, docketed at ECF No. 1118, Case No. 1:14-cv-6228. The term “moving defendants” is used in this Opinion’s discussion of particular Focus Sites to refer to those listed in that Exhibit’s third column of the row corresponding to the Focus Site at issue. A list of moving defendants, irrespective of Focus Site, can be Background The following facts are taken from the documents submitted in connection with this motion. They are taken in the light most favorable to the plaintiff, as the non-moving party, unless

otherwise noted. A. MTBE MTBE was blended into gasoline at refineries from the 1980s to 2000s, at least in part to increase the octane level of gasoline, which is meant to reduce harm from tailpipe emissions. Gasoline containing MTBE was widely distributed in Pennsylvania for use in motor vehicles. MTBE can and did enter the environment through spills, leaks, and other releases of gasoline from various storage and delivery systems, such as underground storage tanks (“USTs”) at gas stations. Compared to other ingredients of gasoline, MTBE does not easily adhere to soil particles and is highly soluble in water. Once in water,

MTBE dissolves easily and moves through the ground quickly. As a result, it penetrates deeply into underground aquifers; this contamination can spread underground over great distances. Once contamination occurs, MTBE is difficult to remove and can make

found at Exhibit 1 to the Declaration of Lisa S. Meyer, docketed at ECF No. 1078, Case No. 1:14-cv-6228. An Order of May 23, 2025 granted a request by defendant Getty Properties Corporation to be added to that list. drinking water unfit for consumption, due to its foul taste and odor and potential adverse health effects. B. Gasoline Distribution in Pennsylvania Gasoline in Pennsylvania originates both from refineries

within the Commonwealth and from refineries located elsewhere, especially in the Gulf Coast. It is transported into the state via pipelines, tanker trucks, and ships on the Ohio River or Atlantic Ocean. Six pipeline systems, all used by defendants in this case, bring gasoline into Pennsylvania. Waterborne gasoline shipments enter through Philadelphia Harbor and the Port of Pittsburgh. Once it enters the Commonwealth, gasoline is typically stored at distribution terminals, which often receive and store gasoline from multiple sources. These terminals exist throughout the Commonwealth but are concentrated near the population centers of Philadelphia, Pittsburgh, and Harrisburg.

A terminal may receive gasoline from only one pipeline, or it may receive gasoline from multiple pipeline or waterborne channels. Following storage at a large distribution terminal, gasoline may be transferred to a product terminal, which is a smaller facility that is close to the retail market. Before distribution from a terminal to a gas station, gasoline may be blended with additives, such as ethanol or other proprietary chemicals that correspond with a particular brand. Trucks are typically used for distribution to retail stations. These tanker trucks may travel hundreds of miles when making

deliveries of gasoline. Throughout this supply chain, gasoline that meets certain specifications but that comes from different sources may be mixed, or commingled. This commingling can happen in a pipeline, in a tanker truck, or in the same tank at a terminal.2 Gasoline could be commingled multiple times, if, for instance, it is injected into a pipeline with gasoline from another refinery, then stored with yet another batch of gasoline in a tank at a terminal. Once gasoline is commingled, it is not possible to tell which molecules of the resulting product came from which refinery or supplier, nor can the mixture be separated into its constituent inputs.3 While much gasoline is

commingled, some companies keep their gasoline segregated in order to differentiate its properties from those of differently

2 In other cases, gasoline may leave a refinery only by truck and thus is not commingled in a pipeline or terminal tank. One defendant, United Refining Company (“United”), did not send gasoline to third-party terminals at all.

3 Relatedly, gasoline is considered “fungible” when gasoline from different sources can be commingled without compromising its adherence to standardized specifications that refer to chemical and physical properties. sourced gasoline.4 Practically, this is accomplished by injecting gasoline into pipelines in distinct, segregated batches and by storing it in separate tanks. Given the

complexity of the distribution system, a commingled batch of gasoline may contain product manufactured or supplied by multiple defendants. Because of some divisions within this distribution system, however, a given batch would not contain gasoline from every defendant. Federal law required the use of MTBE in gasoline distributed in designated areas in Pennsylvania beginning in November of 1992. The rest of the Commonwealth used gasoline which may or may not have contained MTBE. C. Focus Sites Pursuant to a protocol overseen by the MDL Court, the parties in this case identified 75 Focus Sites for discovery and the first trial out of more than 5,000 contaminated sites in

Pennsylvania. The moving defendants seek summary judgment based on a lack of evidence.5 In most cases, the moving defendants

4 One of the plaintiff’s experts opined that most of the gasoline that travels through the east coast of the United States is fungible rather than segregated, although defendants dispute the bases of this opinion.

5 For most Focus Sites (that is, all but the eighteen listed below), there is a non-moving defendant.

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In Re: Methyl Tertiary Butyl Ether ("MTBE") Products Liability Litigation, (S.D.N.Y. 2025).

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