Marathon Oil Company v. Environmental Protection Agency

830 F.2d 1346, 96 Oil & Gas Rep. 34, 18 Envtl. L. Rep. (Envtl. Law Inst.) 20300, 26 ERC (BNA) 1907, 1987 U.S. App. LEXIS 14558
CourtCourt of Appeals for the Fifth Circuit
DecidedNovember 2, 1987
Docket86-4739
StatusPublished
Cited by5 cases

This text of 830 F.2d 1346 (Marathon Oil Company v. Environmental Protection Agency) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Marathon Oil Company v. Environmental Protection Agency, 830 F.2d 1346, 96 Oil & Gas Rep. 34, 18 Envtl. L. Rep. (Envtl. Law Inst.) 20300, 26 ERC (BNA) 1907, 1987 U.S. App. LEXIS 14558 (5th Cir. 1987).

Opinion

GEE, Circuit Judge:

Marathon Oil challenges the validity of an Environmental Protection Agency permit authorizing the discharge of pollutants into waters of the State of Alaska. Marathon argues that the EPA has exceeded its statutory authority by requiring restrictions more stringent than necessary under Alaskan law and that the EPA disregarded relevant data submitted by Marathon. We disagree and deny the petition for review.

I.

Marathon operates two oil processing facilities on the shore of Cook Inlet, a large tidal estuary in south-central Alaska. Cook Inlet is a high-energy water environment with extreme tides and fast currents — tides ranging up to 30 feet and tidal currents up to six or seven knots. Marathon’s facilities — referred to by location as the Trading Bay facility and the Granite Point facility — receive a natural mixture of crude oil and water by pipeline from production wells offshore, process the mixture to separate the crude oil from the so-called “produced water,” 1 treat the produced water to reduce remaining traces of hydrocarbons, and discharge the treated water into the Inlet. The Trading Bay facility discharges about 2.8 million gallons per day (MGD) of such effluent through a discharge pipe that ends in the intertidal zone between mean high water and low water marks. The Trading Bay discharge pipe is submerged during half of the daily tidal cycle; during the remainder of the day, the effluent flows in a stream across the tidal flats into Cook Inlet. The Granite Point facility discharges about 0.2 MGD of ef *1347 fluent above the high water mark. The Granite Point effluent is discharged above the high water mark and at all times flows across the mudflats to meet the receiving waters of the Inlet.

Both facilities operated for some years under a national pollutant discharge elimination system (“NPDES”) permit issued to Marathon’s predecessors. In July 1985, the EPA published the draft of a superseding general NPDES permit covering various oil and gas facilities in Cook Inlet, including Marathon’s. 2 The draft proposed to ban the flow of effluents across the mudflats, requiring instead that Marathon construct discharge pipes with submerged outlets. Marathon protested, both to the EPA and to the Alaska Department of Environmental Conservation (“ADEC”), pointing out that it would cost about $3 million to build the extensions to the discharge pipes, and arguing that there had been no showing that the existing arrangement harmed the environment. In addition, Marathon submitted a study by a consultant purporting to show that Marathon’s facilities currently met state water quality standards within reasonable mixing zones. 3 The EPA issued the final NPDES permit in October 1986. That permit requires that the discharge pipes at Trading Bay and Granite Point be extended past the intertidal mudflats, so that the discharge is submerged at all times.

Marathon petitions for review of this aspect of the general permit.

II.

We have some difficulty sorting out Marathon’s contentions to this Court. Marathon’s argument shifts significantly from opening brief to reply brief to oral argument. Mindful of our minimalist review of the EPA’s science, Marathon opens its briefing with an observation calculated to perk up judicial ears: “This appeal does not involve technology-based limitations, such as were at issue in American Petroleum Institute v. EPA, 787 F.2d 965 (5th Cir.1986). Rather, the Court need only concern itself with a single provision of the [Clean Water] Act, which addresses state water quality standards.” The initial argument is this: The Clean Water Act authorizes the EPA to require compliance to the extent necessary to meet Alaska state standards. See 33 U.S.C. § 1311(b)(1)(C). 4 Marathon asserts that the EPA interpreted Alaska law to prohibit absolutely the discharge of effluent across the tidal mudflats, and that this reading was erroneous. Instead, according to Marathon, the EPA should have applied the Alaska Administrative Code standard for contamination of the sediment on the tidal flats around the effluent streams, one that requires only that the contamination not “cause deleterious effect to aquatic life.” 18 A.A.C. 70.020. 5 On this analysis, Marathon contends that there has been no showing or finding of “deleterious effect” during the two decades of effluent discharge, and that the permit’s ban on open discharge is therefore not “necessary” to meet state requirements. It follows, we are told, that the EPA “exceeded its statutory authority” and the permit should be vacated and the matter remanded to the EPA for further review. Marathon’s opening brief does not contain any other argument.

*1348 The EPA has three responses. First, it correctly points out that Marathon never advanced this particular argument below, and that arguments not made to an agency usually cannot be raised for the first time to a reviewing court. See Brotherhood of Railway Clerks v. St. Louis Southwestern Ry. Co., 676 F.2d 132, 136-37 (5th Cir. 1982). Second, it defends its interpretation of the Alaska regulations in dispute. The EPA contends that it is perfectly logical to read the Alaska standards for limiting pollution in the “water column” 6 to include streams of waste flowing across the open landscape of the State. Third, the EPA argues that even if it erred in taking the position that discharges across the mudflats were per se violations of Alaska law, the permits must still be upheld because Marathon does not challenge an equally if not more important reason for the EPA’s decision: The EPA’s computer modeling showed that the discharges must be submerged at all times during the tidal cycle in order to meet state water column standards once the effluent meets the water of Cook Inlet. The EPA contends that its data showed by clear inference that the open effluent streams from Trading Bay and Granite Point into the Inlet could not meet these requirements.

In reply, Marathon shifts ground. It vehemently disagrees with the EPA’s assertion that the effluents violate Alaska standards once they reach the water; it argues that “there is absolutely no record evidence” to support the EPA’s assertion. 7 Marathon asserts that the EPA has never found that its current discharges violate the water column standard once the effluent streams meet the receiving waters, that the EPA decision rests entirely on its allegedly erroneous view that Alaska law forbids the discharge of effluent streams across tidal flats.

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830 F.2d 1346, 96 Oil & Gas Rep. 34, 18 Envtl. L. Rep. (Envtl. Law Inst.) 20300, 26 ERC (BNA) 1907, 1987 U.S. App. LEXIS 14558, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marathon-oil-company-v-environmental-protection-agency-ca5-1987.