Oceanport Industries, Inc. v. Wilmington Stevedores, Inc.

636 A.2d 892, 1994 Del. LEXIS 34
CourtSupreme Court of Delaware
DecidedJanuary 26, 1994
StatusPublished
Cited by239 cases

This text of 636 A.2d 892 (Oceanport Industries, Inc. v. Wilmington Stevedores, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oceanport Industries, Inc. v. Wilmington Stevedores, Inc., 636 A.2d 892, 1994 Del. LEXIS 34 (Del. 1994).

Opinion

MOORE, Justice.

We accepted this interlocutory appeal by Oceanport Industries, Inc. (“Oceanport”) from a decision of the Superior Court, reversing a decision of the Environmental Appeals Board (the “Board” or “EAB”). The Superior Court ruled that, pursuant to 7 Del.C. §§ 6008(a) and 7210, Wilmington Stevedores, Inc. (‘WSI”) had standing to appeal the issuance of environmental permits to Oceanport by the Secretary of the Department of Natural Resources and Environmental Control (“DNREC” or “Department”). Additionally, the Superior Court remanded the case to the EAB with instructions to remand in turn to the Secretary of the DNREC for a review of the status of Ocean-port’s project under the Coastal Zone Act (“CZA”), 7 Del.C. §§ 7001-7013.

The issue of standing is one of first impression, as is the scope of the EAB’s jurisdiction in matters pertaining to the CZA. We conclude that the Superior Court erred in determining that WSI has an interest that is substantially affected by the Secretary’s decision. With regard to the remand to consider the CZA status decision, the Superior Court confused the application of the CZA, found in Title 7, Chapter 70, of the Delaware Code, to the issuance of permits granted under the authority of Chapters 60 and 72. Accordingly, we reverse.

I.

The Parties

Oceanport, a Delaware corporation, is a wholly owned subsidiary of Granite State Minerals, Inc., a New Hampshire corporation. Oceanport is engaged in the business of off-loading, storing, and transferring bulk products.

WSI is a corporate citizen and taxpayer of the State of Delaware, engaged in the steve-doring business at the Port of Wilmington. WSI does not own or control the Port, which is owned and operated by the City of Wilmington. WSI contracts to use the Port’s facilities, which are open to Oceanport and all others who wish to do business there. WSI currently competes with Oceanport at the Port of Wilmington.

The Oceanport Facility

The Oceanport terminal is located in the coastal zone at Claymont, Delaware, approximately six miles north of Wilmington. The site occupies 46.9 acres with eight hundred feet of frontage on the Delaware River. Once known as the Paragon Oil Petroleum Tank Farm, Texaco began operations at the site in 1905. The property includes petroleum storage tanks and a wooden pier extending 740 feet into the Delaware River, which have been used for the off-loading and storage of petroleum for at least thirty-five years. Oceanport purchased the site from Texaco in September 1986, and has operated it since that time.

The area surrounding the Oceanport facility is zoned for heavy industrial use. Aireo is on the southwest; Citisteel is next to Aireo on the south; General Chemical abuts on the northeast; and the manufacturing facility and pier of the Allied Chemical Company is to the immediate north.

The Coastal Zone Status Decision

The CZA prohibits the construction of new bulk product transfer facilities outside of the Port of Wilmington, 7 Del.C. §§ 7002(f) and 7003. However, a bulk product transfer facility in operation on June 28, 1971 constitutes a non-conforming use and is not subject to the CZA prohibition. Id. Although Texaco had obtained non-conforming use status *897 for the facility in 1972, Oeeanport sought a new determination that its proposed use of the facility constituted the continuation of a non-conforming use.

On May 14, 1987 Oeeanport requested a Coastal Zone Status Decision, an administratively created mechanism for the determination of whether or how proposed projects are regulated by the CZA. Oeeanport requested a finding that its facility was exempt from the CZA as a docking facility or pier for a single industrial facility under 7 Del.C. 7002(f), or alternatively, that the site and its proposed use constituted a bulk product transfer facility which was in operation on June 28, 1971, and was therefore a nonconforming use under Sections 7008 and 7002(f).

In the application, Oeeanport proposed to use the property to off-load and store solid bulk product, such as road salt, crushed stone, cement, and other non-toxic products. Oeeanport indicated that it would reduce 25% of the oil storage capacity of the facility, including a cluster of eight tanks closest to the water, and remove two pipelines from the pier, to be replaced with a conveyor belt for the solid bulk products. Although the application indicated that the substitution of the conveyor belt for the pipelines would not in and of itself result in a restructuring, reconfiguration or widening of the existing pier, it also stated that the existing pier would be extended and improved to eliminate the need for frequent dredging.

On June 25, 1987, the Secretary of the DNREC issued a status decision which determined that the proposal was not governed by the Coastal Zone Act. In making the determination, he made three findings about the proposed project:

1.Because the use of the site as an offshore bulk product transfer facility predates enactment of the Coastal Zone Act, the facility enjoyed nonconforming use status at the time the Coastal Zone Act was enacted.
2. The use of the site as an offshore bulk transfer facility had continued to the present despite the temporary decrease in transfer operations caused by the pier fire in May 1987.
3. The proposed modifications did not constitute a significant expansion or extension since there would be no significant increase in production capacity (no production/manufacturing existed), no significant increase in land area encompassing the proposed operation, and no significant increase in environmental impact.

The three-part test applied in the status decision to the proposed modifications is derived, from the regulatory definition of “expansion or extension” of non-conforming uses under the CZA. 1

The status decision was not appealed by WSI or any other entity and, according to its terms, became final fourteen days following the date of the legal notice of the decision.

The Consent Decrees

Thereafter, Oeeanport started work on the pier. On November 10, 1988, DNREC filed a complaint in the Superior Court against Oeeanport, alleging that on September 29, 1988, the Department discovered a project involving “the construction, modification, repair or reconstruction” of an industrial pier without the appropriate permits for the work in private subaqueous lands. On the same day Oeeanport executed a consent decree with DNREC, agreeing to submit the appropriate permit application in accordance with 7 Del.C. § 7205. In return, the consent agreement authorized work to continue without the permit, but with strict guidelines on the physical size of the pier. Additionally, the DNREC reserved the right to order the removal of portions of the pier in the event the DNREC later determined they were unstable or environmentally unsound.

*898

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Bluebook (online)
636 A.2d 892, 1994 Del. LEXIS 34, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oceanport-industries-inc-v-wilmington-stevedores-inc-del-1994.