Pacific Sound Resources v. Burlington Northern Santa Fe Railway Corp.

130 Wash. App. 926
CourtCourt of Appeals of Washington
DecidedDecember 27, 2005
DocketNo. 54491-8-I
StatusPublished
Cited by6 cases

This text of 130 Wash. App. 926 (Pacific Sound Resources v. Burlington Northern Santa Fe Railway Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pacific Sound Resources v. Burlington Northern Santa Fe Railway Corp., 130 Wash. App. 926 (Wash. Ct. App. 2005).

Opinion

¶1

Schindler, J.

—A contribution claim under Washington’s Model Toxics Control Act (MTCA), chapter 70.105D RCW, for recovery of cleanup costs against other potentially liable persons must be brought within three years “from the date remedial action confirms cleanup standards are met.”1 While the legislature broadly defines “remedial action,” it did not define what action “confirms” when cleanup standards are met. Pacific Sound Resources (PSR) and the port of Seattle (the Port) sued Burlington Northern Santa Fe Railway Corporation and J.H. Baxter and Company (collectively BNSF) and others2 under the MTCA to recover environmental cleanup costs incurred at the PSR Superfund Site (Site). PSR and the Port also alleged claims under common law tort theories of negligence, nuisance, and trespass. On summary judgment, the trial court dismissed the lawsuit as barred by the statute of limitations. In dismissing the claims under the MTCA, the trial court relied on assertions in the final Remedial Investigation and [929]*929Feasibility Study (RI/FS) approved by the Environmental Protection Agency (EPA) to conclude PSR and the Port’s contributions claims were barred by the statute of limitations.

¶2 We conclude that the language in RCW 70.105D.080 that “remedial action confirms cleanup standards are met” requires some official decision by the lead agency. EPA’s approval of the RI/FS is not an official decision that triggers the statute of limitations. The RI/FS is a predecision document that identifies the nature and extent of the problems at the site and evaluates and recommends alternative cleanup actions. After completion of the RI/FS, the lead agency issues a formal decision selecting the cleanup action. Because we conclude that the earliest the statute of limitations began to run for the MTCA contribution claims was when EPA officially selected the cleanup remedy for the Site and established site cleanup levels in the Record of Decision (ROD), we need not definitively decide what remedial action “confirms” when cleanup standards are met under the MTCA. In order to fulfill the stated purpose of the statute to encourage and promote hazardous waste site cleanup by private parties, the legislature or the Washington Department of Ecology (DOE), through administrative rule making, needs to clearly define what remedial action confirms that cleanup standards are met under RCW 70.105D.080.

¶3 We conclude the common law tort theories are barred by the three-year statute of limitations because there were actual and substantial damages known well over three years before PSR and the Port filed their lawsuit. But we reverse the trial court’s decision to dismiss the contribution claims under RCW 70.105D.080 and remand for trial.

FACTS

¶4 The PSR Site was a wood-treatment facility that began operation in the early 1900s. PSR, formerly the Wyckoff West Seattle Wood Treating facility, owned and [930]*930operated the Site from 1959 to 1994. The Site is contaminated with creosote, pentachlorophenol, chemonite, and other hazardous substances. The Site is located on the south shore of Elliott Bay in the Puget Sound and includes 25 acres of upland property and 50 acres of adjacent aquatic lands.

¶5 In August 1984, EPA issued an administrative order directing PSR to investigate contamination at the facility. In March 1985, PSR’s president and three of its employees pleaded guilty to criminal violations of federal environmental laws. In September 1987, PSR and EPA entered an Administrative Order on Consent (consent order) under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), 42 U.S.C. § 9601, and the Resource Conservation and Recovery Act of 1976 (RCRA), 42 U.S.C. §§ 6901-6992k. The consent order required PSR to complete the investigation of hazardous substances at the facility, study necessary corrective alternatives, perform interim corrective action, and submit a closure plan.

¶6 In January 1990, EPA issued another administrative order to PSR under CERCLA and RCRA. The order required PSR to prepare an RI/FS. As a part of the RI/FS, PSR conducted extensive investigations, including soil and groundwater sampling. In March 1990, PSR notified EPA that it did not have sufficient funds to complete the RI/FS. EPA estimated the cost to clean up the Site would be between $40 to $50 million.

¶7 Because PSR could not continue with cleanup efforts, EPA assumed primary responsibility for the Site under CERCLA. EPA designated two operable units at the Site for purposes of investigation: the Upland Unit that included soil and groundwater3 and the Marine Sediments Unit, the adjacent offshore portion of the Site.4 In May 1994, EPA [931]*931listed the PSR Site on the National Priorities List for cleanup under CERCLA.5

¶8 In August 1994, PSR and EPA entered into a Consent Decree. The consent decree required PSR to contribute all its assets to the PSR Environmental Trust and to pay for cleanup actions at the Site. Under the consent decree, PSR contributed more than $10.5 million to remediate the Site.

¶9 While EPA was negotiating the consent decree with PSR, the Port began efforts to purchase the upland portion of the Site for container terminal operations. To limit its liability for cleanup costs at the Site, the Port negotiated a Prospective Purchaser Agreement (PPA) with EPA. Under the PPA, the Port agreed to deposit $9 million into the PSR Environmental Trust and to pay $7.2 million for environmental response activities at the Site and the adjacent properties. In exchange, EPA agreed that the Port would not be liable for future claims from preexisting contamination. The Port purchased the upland portion of the Site from PSR in October 1994.

flO In the Administrative Order on Consent re PSR Superfund Site, the Port agreed to assume responsibility to continue cleanup efforts at the Site including (1) project management, (2) assessing current conditions, (3) site stabilization and plant demolition, (4) early removal actions, (5) completing the RI/FS, and (6) surface capping.

¶11 In November 1994, EPA and the DOE entered a Memorandum of Understanding (MOU) defining the roles of EPA and DOE in relation to the cleanup of the upland portion of the Site. Under the MOU, EPA was the lead agency responsible for overseeing the investigation and cleanup at the Site. DOE was the support agency in the [932]*932cleanup process, which included evaluating and commenting on major decisions at the Site.

¶12 In 1995, the Port demolished the wood-treating facility and excavated and removed approximately 4,000 cubic yards of contaminated soil and sludge from the Site. In 1996, the Port installed a slurry wall to prevent contaminants from migrating from the upland area into the offshore portion of the Site and to lessen the tidal effects on groundwater.

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Bluebook (online)
130 Wash. App. 926, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacific-sound-resources-v-burlington-northern-santa-fe-railway-corp-washctapp-2005.