Mallinckrodt US LLC v. Department of Environmental Protection

2014 ME 52, 90 A.3d 428, 2014 WL 1317513, 2014 Me. LEXIS 57
CourtSupreme Judicial Court of Maine
DecidedApril 3, 2014
DocketDocket BCD-13-121
StatusPublished
Cited by5 cases

This text of 2014 ME 52 (Mallinckrodt US LLC v. Department of Environmental Protection) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mallinckrodt US LLC v. Department of Environmental Protection, 2014 ME 52, 90 A.3d 428, 2014 WL 1317513, 2014 Me. LEXIS 57 (Me. 2014).

Opinion

MEAD, J.

[¶ 1] Mallinckrodt US LLC and United States Surgical Corporation 1 (collectively, “Mallinckrodt”) appeal from a judgment entered in the Business and Consumer Docket (Nivison, J.) affirming a decision of the Board of Environmental Protection, which modified and affirmed a compliance order issued by the Commissioner of the Department of Environmental Protection. The Commissioner’s order required Mal-linckrodt to excavate material containing mercury and other contaminants from five landfills located on a site adjacent to the Penobscot River in Orrington, and to transfer the material to off-site landfills. The Board’s decision modified the Commissioner’s order, requiring that Mallinck-rodt excavate only two of the landfills and that it secure and monitor the others. We affirm the judgment.

I. BACKGROUND

[¶ 2] Mallinckrodt is the only viable remaining entity to take responsibility for the site of the former HoltraChem chemical plant on the banks of the Penobscot River in Orrington. 2 One of Mallinck-rodt’s corporate predecessors constructed the plant on a 235-acre site adjacent to the river in 1967. The plant used a mercury-cell process to produce chlorine and other chemical products used primarily in Maine’s paper industry. Byproducts of this process, including thousands of tons of mercury-contaminated brine-sludge and other hazardous waste, remain stored in five landfills located on the site. Approximately seventy-seven acres of the site are contaminated by various hazardous substances including mercury, chloropicrin, carbon tetrachloride, and tetracholoroeth-ene. Hazardous substances from the site have been discharged both into the Penob-scot River and into the air.

[¶ 3] The United States Environmental Protection Agency (EPA) first became involved in managing the site in 1986 when it entered into an administrative agreement with the site’s owners to investigate conditions at the site. HoltraChem Manufacturing Company, LLC, acquired the plant in 1994. Mallinckrodt and HoltraChem cooperated with the EPA and the Maine Department of Environmental Protection *431 (the Department) to perform a site investigation in 1995 and 1998.

[¶4] The plant ceased operations in 2000. Since HoltraChem’s dissolution in 2001, the EPA and the Department have dealt exclusively with Mallinckrodt on issues related to the site, including the development of possible alternatives for remediating the site. The Town of Orring-ton became the owner of the site by virtue of a tax lien certificate filed in 2002 and subsequent foreclosure in 2003.

[¶ 5] Mallinckrodt worked cooperatively with the EPA and the Department for several years. During that time, the Department developed and considered four options for remediating the site: Option 1 would require moving and consolidating the contents of one of the landfills into an on-site unit without a liner; Option 2 would require moving and consolidating all five landfills into an on-site unit without a liner; Option 3 would require moving and consolidating all five landfills into an on-site unit with a liner; and Option 4, which was referred to as the “dig-and-haul” remedy, would require excavating all five landfills and shipping their contents offsite. Option 1 was attractive because it would result in the least amount of air emissions but would achieve environmental-protection results comparable to those provided by the other options. Option 1 would take the least amount of time, result in fewer transportation issues, and, at an estimated cost of $46 million, be the least expensive of the four options. In contrast, Option 4, the “dig-and-haul” remedy, was the most expensive, with estimated costs exceeding $200 million. It would also result in the highest level of mercury air emissions.

[¶ 6] During the summer of 2004, the Maine People’s Alliance 3 (MPA), which had been monitoring the Department’s efforts to ensure that the site was cleaned up, prepared to launch a media campaign to attack the delay in the cleanup of the site. It sought Governor John Baldacci’s cooperation in its efforts. In September 2004, the MPA and the Governor issued a joint press release calling for the accelerated cleanup of the site.

[¶ 7] Department staff concluded that Option 3 would be the most cost-effective and the most protective of public health. They recommended this option to the Governor, but the Governor strongly preferred the “dig-and-haul” remedy. In September 2005, the Governor and the Commissioner of the Department held a press conference announcing that the “dig-and-haul” remedy would be undertaken.

[¶ 8] Between 2005 and 2008, Mallinck-rodt continued to monitor groundwater at the site, operate and maintain a wastewa-ter treatment system, and dismantle and remove infrastructure and mercury-contaminated debris; however, it did not excavate the landfills. In November 2008, the Commissioner issued an order pursuant to Maine’s Uncontrolled Hazardous Substance Sites Law (the UHSSL), 38 M.R.S. § 1365(1)(B) (2013), requiring Mal-linckrodt to excavate all five landfills and to transfer the contaminated materials off-site in accordance with the “dig-and-haul” remedy announced in 2005. Mallinckrodt appealed the order to the Board of Environmental Protection and requested a hearing pursuant to 38 M.R.S. § 1365(4) (2013). 4

*432 [¶ 9] Before the hearing, the Board conducted several conferences with the parties to address procedural issues. The presiding officer issued a total of thirteen procedural orders detailing the outcomes of these pretrial conferences and explaining specific procedures that would be followed. 5 The Board issued a “Procedures Document,” which was developed with input from the parties and set forth procedural guidelines relating to issues such as the location of the hearing, serving and filing of papers, and prefiled testimony. Mallinckrodt moved to dismiss the appeal on the grounds that no procedural rules had been formally adopted, but the Board’s presiding officer orally denied the motion at a prehearing conference. The presiding officer also denied Mallinckrodt’s request that it be allowed to present evidence of alleged political bias resulting from the Governor’s involvement in the remedy-selection process. However, she ruled that Mallinckrodt would be permitted to challenge witnesses’ credibility by cross-examining them about whether their testimony may have been tainted by bias.

[¶ 10] The Board retained an outside consultant to assist in its consideration of technical evidence because the Commissioner, being a party to the proceeding, was unable to serve in an advisory capacity. A Department staff member was tasked with performing a similar consulting function. The consultants’ role was to summarize technical information presented by the parties, identify inconsistencies in the data, suggest questions to be asked of witnesses, and ask questions of witnesses at the direction of the presiding officer. The consultants would not offer testimony, and the Board ruled that, consequently, they would not be subject to cross-examination.

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2014 ME 52, 90 A.3d 428, 2014 WL 1317513, 2014 Me. LEXIS 57, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mallinckrodt-us-llc-v-department-of-environmental-protection-me-2014.