NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION, ETC. VS. RARITAN SHOPPING CENTER, LP (DEPARTMENT OF ENVIRONMENTAL PROTECTION)

New Jersey Superior Court Appellate Division·Decided October 17, 2018·No. A-1150-16T1·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-1150-16T1

NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION, SITE REMEDIATION COMPLIANCE AND ENFORCEMENT,

Petitioner-Respondent,

v. RARITAN SHOPPING CENTER, LP,

Respondent-Appellant.

Argued May 2, 2018 – Decided October 17, 2018 Before Judges Fuentes, Koblitz and Suter.

On appeal from the New Jersey Department of Environmental Protection.

Lawrence S. Berger argued the cause for appellant (Berger & Bornstein, LLC, attorneys; Lawrence S.

Berger, on the brief).

Elspeth L. Faiman Hans, Deputy Attorney General, argued the cause for respondent (Gurbir S. Grewal, Attorney General, attorney; Jason W. Rockwell,

Assistant Attorney General, of counsel; Elspeth L.

Faiman Hans, on the brief).

The opinion of the court was delivered by SUTER, J.A.D.

Defendant Raritan Shopping Center, LP (Raritan) appeals the October 6, 2016 Final Decision by the Commissioner of the New Jersey Department of Environmental Protection (Final Decision) that granted summary decision to petitioner Department of Environmental Protection (DEP) and affirmed its January 13, 2014 Administrative Order and Notice of Civil Administrative Penalty Assessment (AONOCAPA), that found Raritan violated certain environmental remediation statutes and regulations and imposed $66,200 in administrative penalties. Because the Final Decision was entered following the parties' motions for summary disposition, our review on the legal issue is de novo. L.A. v. Bd. of Educ. of City of Trenton, 221 N.J. 192, 204 (2015). We affirm the Final Decision based on our review of the uncontested facts, statutes and case law and determine that the penalties imposed do not represent an abuse of discretion.

I

Raritan owns a shopping center in the Borough of Raritan (Borough). It was built on land that from 1959 to 1979, was operated by the Borough as a A-1150-16T1

municipal landfill. The landfill closed in 1979. The property was sold in the mid-1980's to Raritan Center Realty Associates and developed by Raritan Mall Associates.1 Raritan Associates hired a consultant to evaluate the contents of the landfill. The landfill was capped with silty soil, a gravel bed, plastic membrane and protective clay. Ground water monitoring wells were installed as well as a degasification system. DEP's approval under the Environmental Cleanup Responsibility Act (ECRA), N.J.S.A. 13:1K-1 to -42,2 was obtained to transfer the property. The Borough agreed with DEP to conduct monitoring of the ground water and treatment after 1991. Sampling at various times showed volatile organic compounds and heavy metals exceeding the ground water permit that may have come from offsite or natural sources. Raritan Mall Associates built a shopping center on the site.

Raritan purchased the shopping center in March 1993. Prior to purchase, it hired HTS Environmental Group to conduct environmental testing at the property. HTS's testing reported the presence of tetrachloroethylene above federal drinking water standards. However, it noted that the water in the area

1 These entities are not related to Raritan.

2 ECRA was replaced by the Industrial Site Recovery Act (ISRA) in 1993. N.J.S.A. 13:1K-6.

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"is not used for consumptive purposes" and that "low levels of chemicals of this kind are expected in the groundwater in the vicinity of a closed municipal landfill." HTS recommended that "any additional well testing required by [DEP] be completed in accordance with their instructions or requests." HTS gave its opinion that the property "represents a low environmental risk scenario contingent upon completion of the aforementioned items."

In 2003, a prospective purchaser of the property hired an environmental consulting firm to conduct ground water testing and discovered a "hot spot" of contamination containing levels of benzene, toluene, ethylbenzene, xylenes (BTEX), chlorobenzene, TCE, PCE, dichloroethene (DCE), and vinyl chloride above DEP groundwater-quality standards. Raritan hired Enviro-Sciences, Inc. (ESI) to delineate the extent of the contaminated area. With DEP's approval, Raritan excavated the indicated area that revealed three steel drums, containing "yellow sandy soil of an unknown composition." Raritan disposed of seventeen hundred pounds of hazardous solid waste contaminated with lead and TCE.

DEP and Raritan signed a memorandum of agreement in February 2004, where Raritan acknowledged that TCE was present at the site, but had been removed through soil excavation. Raritan claimed that "[a]ll contaminants found at the site [were] related to the former landfill operations." It

A-1150-16T1

acknowledged that "[b]ased on past investigations, both soil and groundwater have been slightly impacted by benzene, toluene, ethylbenzene, and total xylenes, and/or chlorobenzene." The "hot spot" impacted soil and groundwater with TCE, however, "after the impacted soils were excavated," Raritan claimed, "[a] continuing [TCE] source no longer remain[ed] on-site." Raritan agreed to submit a Remedial Investigation Report/Remedial Action Report (RIR/RAR) to DEP.

ESI submitted the RIR/RAR report for Raritan in September 2004. It requested that DEP issue a "No Further Action" letter for the site, but with a "Classification Exception Area" (CEA)3 to restrict ground water usage because there still were "low" levels of benzene present at the site. DEP rejected this request in March 2007, issuing a Notice of Deficiency, because it claimed ESI's ground water sampling methodology was flawed and the proposed CEA did not address chlorinated compounds that previously had been detected at the site. DEP requested a remedial investigation workplan in sixty days. Raritan

3 DEP may establish a CEA when it determines "that constituent standards for a given classification are not being met or will not be met in a localized area." N.J.A.C. 7:9C-1.6(a). Within that area, DEP shall "define appropriate designated uses." N.J.A.C. 7:9C-1.6(b).

A-1150-16T1

responded in June 2007 by referring any ground water issues to the Borough and did not submit a workplan.

It was not until 2011 that DEP again addressed the RIR/RAR deficiencies with Raritan. DEP advised Raritan by letters of its obligations under the Site Remediation Reform Act (SRRA), N.J.S.A. 58:10C-1 to -29, to retain a licensed site remediation professional (LSRP), complete the remediation within mandatory timeframes, complete an initial receptor evaluation and conduct a proper site evaluation. In December of 2012, Raritan had still not complied, and DEP advised the matter was transferred to enforcement and that it would issue an administrative order with penalties.

DEP issued the AONOCAPA on January 13, 2014. In it, DEP found that "on August 21, 2003, [Raritan] conducted ground water sampling and reported [TCE], cis-1, 2-dichloroethene, vinyl chloride, methylene chloride, benzene, and toluene above the Ground Water Quality Standards (GWQS) at concentrations of 120,000 parts per billion (ppb), 98,000 ppb, and 4,500 ppb, 2,000 ppb, 7.3 ppb, and 1,100 ppb, respectively." Because these were "hazardous substances pursuant to the Spill Compensation and Control Act

A-1150-16T1

[Spill Act], N.J.S.A. 58:10-23.11b," Raritan was responsible under the Spill Act for remediation.4 The AONOCAPA alleged Raritan violated applicable regulations by (1)

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NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION, ETC. VS. RARITAN SHOPPING CENTER, LP (DEPARTMENT OF ENVIRONMENTAL PROTECTION), (N.J. Ct. App. 2018).

NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION, ETC. VS. RARITAN SHOPPING CENTER, LP (DEPARTMENT OF ENVIRONMENTAL PROTECTION) (NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION, ETC. VS. RARITAN SHOPPING CENTER, LP (DEPARTMENT OF ENVIRONMENTAL PROTECTION)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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