Matter of Recovery I, Inc.

635 So. 2d 690, 93 La.App. 1 Cir. 0441, 1994 La. App. LEXIS 1075, 1994 WL 140787
CourtLouisiana Court of Appeal
DecidedApril 8, 1994
Docket93 CA 0441
StatusPublished
Cited by24 cases

This text of 635 So. 2d 690 (Matter of Recovery I, Inc.) 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
Matter of Recovery I, Inc., 635 So. 2d 690, 93 La.App. 1 Cir. 0441, 1994 La. App. LEXIS 1075, 1994 WL 140787 (La. Ct. App. 1994).

Opinion

635 So.2d 690 (1994)

In The MATTER OF RECOVERY I, INC.

No. 93 CA 0441.

Court of Appeal of Louisiana, First Circuit.

April 8, 1994.

*691 Daria Burgess-Diaz, Tulane Environmental Law Clinic, New Orleans, for appellants Vietnamese American Voters Assoc., Village de L'Est Homeowner's Assoc., Louisiana Environmental Action Network, etc.

Meredith Lieux, Office of Legal Affairs and Enforcement, Baton Rouge, for appellee State of Louisiana thru the Dept. of Environmental Quality.

Gerald L. Walter, Jr., Baton Rouge, for appellee.

Before LOTTINGER, C.J., and CRAIN and LEBLANC, JJ.

LOTTINGER, Chief Judge.

This appeal arises as a result of a settlement agreement reached by the Louisiana Department of Environmental Quality (DEQ), Recovery I, Inc. (Recovery), and the City of New Orleans that allows a nonhazardous solid waste disposal site to reopen in New Orleans. The Tulane University Environmental Law Clinic (Tulane), as the legal representative of a number of civic and environmental organizations opposed to the reopening of the waste site, intervened.[1] Contending *692 that the DEQ erred by ratifying the agreement which allows the waste site to be reopened, Tulane appeals to this court.

FACTS

Recovery I is a nonhazardous solid waste disposal site encompassing sixty acres in eastern New Orleans. The facility is owned by the City of New Orleans. In 1974, Recovery executed a contract with the City of New Orleans. Pursuant to the contract, Recovery constructed and operated the facility. However, the contract provided that the closure of the facility was the responsibility of the City of New Orleans. Further, the facility only received solid waste from the City of New Orleans. On March 14, 1986, the DEQ issued Recovery a standard permit to operate the facility. The permit expired on October 17, 1988.

Early in 1988, Recovery submitted a permit application to the DEQ. However, in June of 1988, the City of New Orleans decided that it would not renew the contract it had with Recovery that expired on October 17, 1988. Instead, the City of New Orleans considered whether the operation of the facility would continue. Furthermore, the City of New Orleans considered whether Recovery I should be a city-operated facility. Accordingly, Recovery withdrew its permit application.

On October 7, 1988, the DEQ deferred the final closure of Recovery I until December 21, 1988, to allow the City of New Orleans to complete its plan for the continued operation and ultimate closure of the facility. On October 17, 1988, all operations at the facility ceased. Thereafter, the City of New Orleans took custody of the facility and entered discussions with the DEQ. However, the City of New Orleans did not complete the plan for the operation and closure of the facility.

On April 12, 1990, after it became evident that the City of New Orleans would not finalize a closure plan, the DEQ issued a Compliance Order to Recovery. The Compliance Order directed Recovery, as the former permit holder, to submit a closure plan within thirty days. Furthermore, the Compliance Order stipulated that Recovery must close the facility within one year of the approval of the plan. Hence, the DEQ contended that Recovery must shoulder the responsibility of closing the facility. Recovery requested a hearing on the Compliance Order. The matter was referred to the DEQ administrative hearing office.

Recovery claimed that pursuant to the contract it executed with the City of New Orleans, the City of New Orleans assumed responsibility for the closure of the facility. Furthermore, by illuminating the previous actions of the DEQ and the City of New Orleans, Recovery buttressed its position that the closure of the facility was the responsibility of the City of New Orleans. However, the DEQ did not agree with Recovery. Moreover, the City of New Orleans indicated that it was not able to pay for a proper closure of the facility.

During the pendency of the proceedings, the City of New Orleans and Recovery suggested that the most effective means to achieve closure was to allow the facility to reopen for a limited period of time. The City of New Orleans represented that this approach would be advantageous to it for two reasons. First, because a reopening would provide the city with an additional waste site, its disposal costs would be lower. Second, because Recovery would assume the cost associated with the closure, it would save the city approximately eight million dollars. Accordingly, it was generally agreed that allowing the facility to reopen for a limited period of time to accomplish the closure would be in the best interest of all the parties and the environment. Thus, the DEQ, the City of New Orleans, and Recovery reached a settlement.

In May of 1992, the DEQ published notice that it was accepting public comment on the proposed settlement agreement. Thereafter, *693 the DEQ, Recovery, and the City of New Orleans finalized and approved the settlement, evidenced by the "Compromise Agreement."[2] Under the terms of the agreement, Recovery would operate the facility for a period of three years. Further, the funds generated from the operation would be used by Recovery to pay for a proper closure of the facility. Moreover, the agreement fully settled all issues presented under this matter, which included the Compliance Order.

Tulane intervened on behalf of a number of civic and environmental organizations opposed to the agreement. Tulane filed a motion seeking that the Secretary of the DEQ, pursuant to La.R.S. 30:2024(C), grant an appeal to this court.[3] However, the motion was denied under the contention that the agreement was not a "final decision." Tulane immediately applied to this court for supervisory writs. This court granted Tulane's supervisory writ application. Accordingly, we ordered the DEQ to sign the order for the appeal and to forward the record to this court. This appeal followed.

ASSIGNMENTS OF ERROR

Tulane submits seven assignments of error. Tulane maintains: (1) The DEQ erred by allowing Recovery to reopen the facility under the Compromise Agreement without securing a permit; (2) the DEQ erred by approving the Compromise Agreement because the DEQ's approval exceeds its statutory and regulatory authority; (3) the DEQ erred by approving the Compromise Agreement without securing the attorney general's concurrence because the agreement waives penalties to which the DEQ is entitled; (4) the DEQ erred by approving the Compromise Agreement because the agreement divests the DEQ of its constitutional duty that it owes to the public as the trustee of the environment; (5) the DEQ's approval of the Compromise Agreement was arbitrary and capricious, characterized by an abuse of discretion, because evidence indicates that the proposed method of closing the facility is technically unsound and will result in failure; (6) the DEQ's approval of the Compromise Agreement was arbitrary and capricious, characterized by an abuse of discretion, because the record fails to justify a three year period to finance the closure of the facility; and (7) the DEQ erred by approving the Compromise Agreement because it failed to consider more environmentally sound alternatives to reopening the facility.

Additionally, Recovery submits two assignments of error. Recovery maintains: (1) This court lacks subject matter jurisdiction over this case because the Compromise Agreement is not a "final decision or order of the secretary" of the DEQ; and (2) thirteen of the fifteen civic and environmental organizations lack standing to appeal.

ISSUES

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Bluebook (online)
635 So. 2d 690, 93 La.App. 1 Cir. 0441, 1994 La. App. LEXIS 1075, 1994 WL 140787, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-recovery-i-inc-lactapp-1994.