Kerr-McGee Chemical Corp. v. Department of Nuclear Safety

561 N.E.2d 1370, 204 Ill. App. 3d 605, 149 Ill. Dec. 674, 1990 Ill. App. LEXIS 1612
CourtAppellate Court of Illinois
DecidedOctober 18, 1990
Docket4-90-0330
StatusPublished
Cited by10 cases

This text of 561 N.E.2d 1370 (Kerr-McGee Chemical Corp. v. Department of Nuclear Safety) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kerr-McGee Chemical Corp. v. Department of Nuclear Safety, 561 N.E.2d 1370, 204 Ill. App. 3d 605, 149 Ill. Dec. 674, 1990 Ill. App. LEXIS 1612 (Ill. Ct. App. 1990).

Opinion

JUSTICE STEIGMANN

delivered the opinion of the court:

This case is an outgrowth of a controversy over the disposal of nuclear waste on property owned by plaintiff Kerr-McGee Chemical Corporation (Kerr-McGee) in West Chicago. The principal question presented is whether Kerr-McGee may challenge, by means of a declaratory judgment action, rules promulgated by defendant Illinois Department of Nuclear Safety (Department) pertaining to nuclear waste, which are not currently in effect because the State has not yet received permission from the Nuclear Regulatory Commission (NRC) to regulate the type of nuclear waste covered by the rules. We hold the question of whether the rules are valid is not yet ripe for decision and reverse the order of the circuit court which denied the Department’s motion to dismiss Kerr-McGee’s complaint for declaratory judgment.

Although nuclear energy and related matters are generally subject to regulation by the NRC, under certain circumstances the States may assume regulatory authority in this area. (42 U.S.C. §2021 (1988).) In order to assume such regulatory authority, the States must, among other things, promulgate rules that meet NRC requirements. 42 U.S.C. §§2021(d), (o) (1988); 46 Fed. Reg. 7540, 7544 (1981) (criteria 30, 32).

Accepting as true the well-pleaded facts of Kerr-McGee’s complaint for declaratory judgment (Martin v. Federal Life Insurance Co. (1982), 109 Ill. App. 3d 596, 601, 440 N.E.2d 998, 1003), Kerr-McGee asserted that it is the owner of a former thorium milling facility in West Chicago and that nuclear waste, consisting of thorium mill tailings and associated materials, is present on this site. Since 1979, Kerr-McGee has sought a license amendment from the NRC to permit stabilization and closure of its West Chicago facility. After two full evaluations of the site, the NRC staff recommended “on-site stabilization” of the nuclear waste at Kerr-McGee’s West Chicago facility.

The proposal to indefinitely store nuclear waste at Kerr-McGee’s West Chicago facility displeased the Department, which preferred the nuclear waste to be stored elsewhere. Consequently, the Department, in proceedings before the NRC, opposed the on-site stabilization plan recommended by the NRC staff.

On April 28, 1989, the Department published proposed rules which set forth “Licensing Requirements for Source Material Milling Facilities” (13 Ill. Reg. 5874 (1989)), as part of the procedures requisite to obtain permission from the NRC to exercise regulatory authority over nuclear waste, such as those present at Kerr-McGee’s West Chicago facility. According to Kerr-McGee, its West Chicago facility is the only site in Illinois to which these rules could possibly apply. After making only minor modifications in the rules in response to Kerr-McGee’s comments, the Department adopted them in final form on January 19,1990.14 Ill. Reg. 1333 — 78 (adopted Jan. 19, 1990).

Kerr-McGee alleged that the Department’s effort to obtain jurisdiction over its West Chicago facility was designed to thwart the nearly completed proceedings before the NRC for on-site disposal of nuclear waste at the facility. Also, Kerr-McGee argued that the Department’s rules pertaining to its West Chicago facility were tailored to further the Department’s ability to obtain in State court an injunction against Kerr-McGee’s on-site disposal plan.

Kerr-McGee alleged that the Department’s rules relating to source-material milling facilities are invalid because (1) they violate the Illinois Constitution’s proscription of special legislation (Ill. Const. 1970, art. IV, §13); (2) they are contrary to various provisions of the Atomic Energy Act of 1954 (42 U.S.C. §§2021(o), 2114(c) (1988)); (3) they are inconsistent with and different from parallel Federal regulations governing nuclear by-product materials (10 C.F.R. pt. 40, app. A (1989)); (4) they amount to “targeted” rulemaking, which is an impermissible mix of regulatory and litigation functions within the Department and exceeds the Department’s statutory authority; and (5) they are arbitrary, unreasonable, and capricious, and impose unreasonable regulatory burdens in that they (a) do not recognize existing NRC licenses for nuclear facilities and permit the Department to revoke such licenses, (b) do not provide for transfer to the Department and action by the Department on nuclear facility license and license amendment applications pending before the NRC, and (c) do not make appropriate distinctions between existing tailings sites and new tailings sites.

On the basis of the above allegations, Kerr-McGee asserted that an actual controversy exists between it and the Department. Kerr-McGee requested that a declaratory judgment be entered against the Department, holding its rules prescribing licensing requirements for source-material milling facilities to be arbitrary, capricious, contrary to law, and, accordingly, null and void. Kerr-McGee also requested such other relief “as is appropriate under the circumstances.”

The Department filed a motion to dismiss Kerr-McGee’s complaint for declaratory judgment on the bases that the action was premature and no actual controversy existed between it and Kerr-McGee. The Department pointed out that no agreement had yet been executed between Illinois and the NRC allowing the State to regulate nuclear waste of the type present at Kerr-McGee’s West Chicago facility and, thus, the State is incapable of exercising regulatory authority over the site. The circuit court denied this motion, but allowed the Department’s motion to certify for appeal the question presented by the Department’s motion to dismiss. (See 107 Ill. 2d R. 308 (allowing interlocutory appeals by permission).) The court stated the question as follows: This court allowed the Department’s motion for leave to appeal, pursuant to Supreme Court Rule 308 (107 Ill. 2d R. 308).

“ ‘Whether, under the circumstances of this case, an actual controversy" exists between plaintiff and defendant which entitles plaintiff to bring an action for declaratory judgment under Section 2 — 701 of the Code of Civil Procedure.’ ”

The positions of the parties to this appeal are quite simple. The Department contends there is no actual controversy between the parties because the rules which Kerr-McGee challenges are not presently effective and will not become effective unless, and until, the NRC permits the State to exercise regulatory authority over nuclear waste of the type present at Kerr-McGee’s West Chicago facility. The Department points out that because there is no certainty that this will ever occur, there is no certainty that the rules Kerr-McGee challenges will ever become applicable to Kerr-McGee. The Department argues that the courts should not be burdened with declaratory judgment actions such as this, which may well prove to be entirely advisory or hypothetical in nature.

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Bluebook (online)
561 N.E.2d 1370, 204 Ill. App. 3d 605, 149 Ill. Dec. 674, 1990 Ill. App. LEXIS 1612, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kerr-mcgee-chemical-corp-v-department-of-nuclear-safety-illappct-1990.