People ex rel. Madigan v. Petco Petroleum

CourtAppellate Court of Illinois
DecidedJanuary 4, 2006
Docket4-04-0558, 4-04-0868 cons. Rel
StatusPublished

This text of People ex rel. Madigan v. Petco Petroleum (People ex rel. Madigan v. Petco Petroleum) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People ex rel. Madigan v. Petco Petroleum, (Ill. Ct. App. 2006).

Opinion

NOS. 4-04-0558, 4-04-0868 cons.

IN THE APPELLATE COURT

OF ILLINOIS

FOURTH DISTRICT

THE PEOPLE OF THE STATE OF ILLINOIS ex rel. ) Appeal from LISA MADIGAN, Attorney General of the State of ) Circuit Court of Illinois, ) Sangamon County Plaintiff-Appellee and ) No. 00CH458 Cross-Appellant, ) v. (No. 4-04-0558) ) PETCO PETROLEUM CORPORATION, an Indiana ) Corporation. ) Defendant-Appellant and ) Cross-Appellee, ) and ) JAY DOUGLAS BERGMAN, ) Defendant. ) ___________________ ) ) THE PEOPLE OF THE STATE OF ILLINOIS ex rel. ) LISA MADIGAN, Attorney General of the State of ) Illinois, ) Plaintiff-Appellant, ) v. (No. 4-04-0868) ) PETCO PETROLEUM CORPORATION, an Indiana ) Corporation, and JAY DOUGLAS BERGMAN, ) Honorable Defendants-Appellees. ) Leslie J. Graves, ) Judge Presiding. ____________________________________________________________________________

________

JUSTICE STEIGMANN delivered the opinion of the court:

In December 2000, the State filed an amended two-count complaint against defendants,

Petco Petroleum Corporation and Jay Douglas Bergman, Petco's president, alleging multiple

violations of the Illinois Oil and Gas Act (225 ILCS 725/1 through 28.1 (West 2000)) and seeking

injunctive relief, as well as civil penalties. In February 2004, the trial court entered a judgment

against Petco and Bergman and granted the State most of the relief it sought. However, in May

2004, after considering Petco's and Bergman's motions to reconsider, the court amended its order and (1) reversed its position on the question of Bergman's liability and (2) denied the State's

request for a permanent injunction against Petco and Bergman. In June 2004, Petco filed a notice

of appeal (case No. 4-04-0558), and the State filed a motion to reconsider the court's May 2004

order. In September 2004, the trial court denied the State's motion to reconsider. Later that same

month, the State filed a notice of appeal (case No. 4-04-0868) and a notice of cross-appeal (case

No. 4-04-0558).

Petco appeals, arguing that (1) this court lacks jurisdiction over the State's appeal and

cross-appeal because the State's September 2004 notices of appeal and cross-appeal were not

timely; and (2) the trial court erred by (a) determining that section 240.155 of Title 62 of the Illinois

Administrative Code (62 Ill. Adm. Code '240.155 (Conway Greene CD-ROM April 2000)), under

which the State brought its claims, was valid and (b) imposing on Petco a civil penalty totaling

$168,000. The State appeals, arguing that (1) this court lacks jurisdiction over Petco's appeal

because Petco's notice of appeal was premature; and (2) the trial court erred by (a) finding that

Bergman was not personally liable as a responsible corporate officer, (b) declining to issue an

injunction against Petco and Bergman, (c) failing to order Petco to post a $100,000 bond, and (d)

failing to bar Petco and Bergman from acquiring additional drilling permits.

We conclude that (1) the State's notice of appeal was timely, (2) Petco's notice of appeal

was premature, and (3) the trial court erred by declining to issue an injunction against Petco.

Otherwise, we affirm the trial court's judgment. Accordingly, we dismiss Petco's appeal (case No.

4-04-0558) and the State's cross-appeal (case No. 4-04-0558), reverse the court's denial of the

State's requested injunction against Petco (case No. 4-04-0868), remand for entry of the State's

requested injunctive relief against Petco, and otherwise affirm the court's judgment.

I. BACKGROUND

In December 2000, the State filed an amended complaint for injunctive and other relief

against Petco (count I) and Bergman (count II). The State alleged, in pertinent part, that in the

preceding two years, Petco and Bergman were responsible for 168 documented spill events at the

oil well sites for which Petco had permits issued by the Illinois Department of Natural Resources.

- 2 - For relief, the State requested that the court (1) enter findings that (a) Petco and Bergman had

violated provisions of the Oil and Gas Act (225 ILCS 725/1 through 28.1 (West 2000)) and the oil

and gas regulations contained in the Administrative Code (62 Ill. Adm. Code ''240.10 through

240.1960 (Conway Greene CD-ROM April 2000)) by repeatedly allowing the improper disposal,

release, or discharge of produced fluids, thus resulting in an imminent danger of substantial

environmental harm or environmental damage to property and contamination of surface water or

groundwater causing environmental damage, (b) a pattern of documented events involving

improper disposal, release, or discharge of produced fluids occurred during the preceding two

years, and (c) Petco and Bergman failed to operate in a prudent manner, pursuant to industry

standards; (2) permanently enjoin Petco and Bergman from further violations of the Oil and Gas Act

(225 ILCS 725/1 through 28.1 (West 2000)); (3) order Petco to submit a written oil and gas facilities

operation maintenance plan that would insure compliance with the Department's rules; (4) order

Petco to submit and maintain a $100,000 bond; (5) impose a civil penalty against Petco and

Bergman totaling $223,000; (6) enjoin Petco and Bergman from acquiring additional permits to drill

new oil or gas production wells until the Department released the $100,000 bond; (7) award the

Department its costs; and (8) grant such other relief as the court deemed appropriate.

In May 2002, the State filed a motion for summary judgment as to count I, and in June 2002,

Petco filed a motion for summary judgment, asserting, in pertinent part, that section 240.155 of Title

62 of the Administrative Code, under which the State brought its amended complaint, was invalid.

In July 2002, the trial court granted the State's summary-judgment motion, upon finding that no

genuine issue of material fact existed as to the specific allegations against Petco. The court also

denied Petco's motion for summary judgment.

During October and December 2002, the trial court conducted a bench trial on (1) count II of

the State's amended complaint and (2) the relief to be granted as to Petco and Bergman. (We will

discuss the evidence in the pertinent analysis sections.) At the conclusion of the evidence, the

court instructed the parties to file posttrial briefs in lieu of closing arguments. In January 2003, the

State filed its posttrial brief, and in March 2003, Petco and Bergman filed their posttrial briefs.

- 3 - In February 2004, the trial court entered a written order, in which it (1) found that Bergman

was personally liable as a responsible corporate officer for Petco's violations of the Oil and Gas Act,

(2) entered judgment in favor of the State and against Petco and Bergman, (3) permanently

enjoined Petco and Bergman from committing further violations of the Oil and Gas Act and the

Administrative Code, (4) ordered Petco to submit within 30 days a written oil and gas facilities

operation maintenance plan to ensure compliance with the Department's rules, (5) denied the

State's request for a $100,000 bond, (6) ordered Petco and Bergman to pay civil penalties totaling

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