In the Matter of Basf Corporation, Chemical Div.

538 So. 2d 635, 19 Envtl. L. Rep. (Envtl. Law Inst.) 20708, 1988 La. App. LEXIS 2808, 1988 WL 141471
CourtLouisiana Court of Appeal
DecidedDecember 20, 1988
Docket87 CA 0625
StatusPublished
Cited by5 cases

This text of 538 So. 2d 635 (In the Matter of Basf Corporation, Chemical Div.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In the Matter of Basf Corporation, Chemical Div., 538 So. 2d 635, 19 Envtl. L. Rep. (Envtl. Law Inst.) 20708, 1988 La. App. LEXIS 2808, 1988 WL 141471 (La. Ct. App. 1988).

Opinion

538 So.2d 635 (1988)

In the Matter of BASF CORPORATION, CHEMICAL DIVISION.

No. 87 CA 0625.

Court of Appeal of Louisiana, First Circuit.

December 20, 1988.
Rehearing Denied February 22, 1989.
Writ Denied April 21, 1989.

*636 William A. Percy III, Daria Burgess, New Orleans, for appellant Sierra Club and the Ascension Parish Residents Against Toxic Pollution.

Roland T. Huson, III, General Counsel, Dept. of Environmental Quality, William D'Armond, Maureen Harbourt, Baton Rouge, for appellee State of La.

Before WATKINS, CRAIN and ALFORD, JJ.

WATKINS, Judge.

This appeal challenges the Louisiana Department of Environmental Quality's (DEQ's) November 18, 1986 settlement with BASF Corporation, Chemical Division, regarding five separate violations at the BASF facility in Geismar, Louisiana of the Louisiana Environmental Quality Act (Act) and the Louisiana Air Quality Regulations.

FACTS

The DEQ began investigating BASF in April of 1986, after BASF reported a release of 50 to 75 pounds of phosgene at the BASF plant on April 2, 1986. On June 14, 1986 the BASF plant experienced a second leak involving the chemical toluene. Although the leak was initially detected on June 14, BASF failed to report it or take corrective steps until June 16, when the plant was shut down.[1] It was estimated that approximately 16,000 pounds of toluene were released. The DEQ investigation also discovered that the emissions from BASF's Toluene Di Isocaynate Phosgene Destruct Tower and the Basagran incinerator exceeded allowable permitted emissions.[2]*637 Additional violations involved BASF's failure to submit written notification to DEQ for asbestos removal on three specific occasions as well as for BASF's annual or non-scheduled asbestos operations for 1983, 1984 and

During July and August of 1986 the DEQ held a series of meetings with representatives of BASF regarding the above described violations. BASF agreed to waive a hearing and accept a civil penalty of $66,700 in settlement of the alleged violations. The DEQ agreed to the settlement and issued a penalty assessment to that effect on November 18, 1986. Prior to the penalty assessment, the DEQ issued a Compliance Order to BASF on October 10, 1986, requiring the following:

1. Revisions to the TDI Phosgene Destruct Tower in order to reduce the toluene emissions by a minimum of 90% across the control system.
2. Installation of additional ambient air phosgene monitors and associated equipment in areas where phosgene is present.
3. Development and implementation in the TDI plant of a training program on the proper use of flexiduct vapor recovery system; installation of ammonia utility line; installation of knock-out pot of sufficient size in order to enable corrective action to be taken in a timely manner.
4. Review with shift supervision and plant management the circumstances of the June 14, 15 and 16 toluene leak to insure immediate corrective action will be taken in the future.
5. Review new tube bundle design and establish increased inspection schedule in order to initiate corrective action before tube failure occurs.
6. Review emission control plans for the Basagran incinerator; design and install control equipment and achieve compliance with emission limits for the incinerator as established by permit by or before January 1, 1988.

Appellants, Sierra Club and The Ascension Parish Residents Against Toxic Pollution, appealed the DEQ's settlement with BASF in accordance with LSA-R.S. 30:1072 C[3] and Uniform Rules—Courts of Appeal, Rule 2. Appellants assert the following errors.

1. Patricia Norton, as secretary of the Department of Environmental Quality, assessed the penalty against BASF without the concurrence of the Attorney General as required in LSA-R.S. 30:1073 H.

2. None of the "hearings" on July 3, 1986, August 4, 1986, and August 20, 1986, upon which penalty assessment was based, between the Department and BASF Corporation Chemical Division, was treated as an "adjudicative hearing", in violation of the Department's Rules of Procedure Number 3.6.

3. At all of these "hearings" the public was denied entry and admission, in violation of the Administrative Procedures Act, LSA-R.S. 49:950, et seq.

4. At none of these "hearings" was evidence properly taken or recorded, including the failure to make transcripts, in violation of both LSA-R.S. 49:955 and the Department's Rules of Procedure Numbers 5.5 and 9.0.

5. None of the "hearings" was publicly noticed and reported, in violation of the Department's Rules of Procedure Numbers 2.11 and 9.1.

6. None of the "hearings" was noticed on the Department's Notice Mailing List, in violation of the Department's Rules of Procedure Number 2.10.

7. Public testimony or comment was not allowed at any of these "hearings", in violation of the Department's Rules of Procedure Numbers 5.1(C) and 9.0.

8. The Department did not afford any person an opportunity to intervene in the *638 Complaint, in violation of the Department's Rules of Procedure 5.1(B).

9. Patricia Norton erred in determining the amount of the civil penalty by failing to consider properly the monetary benefits realized by the violator through noncompliance with the state's environmental laws and regulations, as specified in LSA-R.S. 30:1073E(3)(a)(v).

10. Patricia Norton erred by assessing a penalty disproportionate to the seriousness of the offense and failed to restore to the state damages inflicted by the violator.

11. The penalty assessment ordered by the secretary on November 18, 1986 is arbitrary, capricious, characterized by abuse of discretion, and contrary to law.

The Louisiana Environmental Quality Act, LSA-R.S. 30:1051, et seq., was enacted for the purpose of maintaining a healthful and safe environment in Louisiana which was declared to be a matter of critical state concern. In furtherance of these goals, the DEQ was created as "the primary agency in the state concerned with environmental protection and regulation."[4] The DEQ was vested with jurisdiction over matters affecting the regulation of the environment within the state, including but not limited to the regulation of air quality, noise pollution, solid waste disposal, radiation, hazardous waste management and the protection and preservation of the state's scenic rivers and streams. LSA-R.S. 30:1061A(1). The department is headed by the secretary, who is appointed by the governor and who is vested with all prior powers and duties heretofore granted to the Environmental Control Commission. LSA-R.S. 30:1061B and LSA-R.S. 30:1062. The DEQ is sub-divided into three separate offices,[5] each under the immediate supervision and direction of an assistant secretary also appointed by the governor. Among the secretary's powers and duties set forth in LSA-R.S. 30:1061D, are the following:

(1) To adopt, amend, or repeal all rules, regulations, and standards for the protection of the environment. LSA-R.S. 30:1061D(1).

(2) To grant or deny permits, licenses, registrations, variances, or compliance schedules. LSA-R.S. 30:1061D(2); to delegate this power to assistant secretaries. LSA-R.S. 30:1061D(3).

(3) To hold meetings or hearings

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Related

Matter of Recovery I, Inc.
635 So. 2d 690 (Louisiana Court of Appeal, 1994)
Matter of Carline Tank Services, Inc.
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In re Basf Corp. Chemical Division
539 So. 2d 624 (Supreme Court of Louisiana, 1989)

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538 So. 2d 635, 19 Envtl. L. Rep. (Envtl. Law Inst.) 20708, 1988 La. App. LEXIS 2808, 1988 WL 141471, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-the-matter-of-basf-corporation-chemical-div-lactapp-1988.