Quinault Indian Nation v. City of Hoquiam

CourtWashington Supreme Court
DecidedJanuary 12, 2017
Docket92552-6
StatusPublished

This text of Quinault Indian Nation v. City of Hoquiam (Quinault Indian Nation v. City of Hoquiam) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Quinault Indian Nation v. City of Hoquiam, (Wash. 2017).

Opinion

F'ft:E·~ a00 / I N CLERKS OFFICE This opinion was filed for record .._COURT. . DATE 1111

JAN 12.1817 at ll&\ onlw ~ 21Jin j-1 ' ;_IAAA hAIIA.&t I CHili/' JUSTICE c9 . 8~~c:x.~. SUSAN L. CARLSON SUPREME COURT CLERK

IN THE SUPREME COURT OF THE STATE OF WASHINGTON

QUINAULT INDIAN NATION, FRIENDS ) OF GRAYS HARBOR, SIERRA CLUB, ) GRAYS HARBOR AUDUBON, and ) No. 92552-6 CITIZENS FOR A CLEAN HARBOR, ) ) En Bane Petitioners, ) ) v. ) ) Filed __J_A_N_1_2_2_111_7_ IMPERIUM TERMINAL SERVICES, LLC;) CITY OF HOQUIAM; WASHINGTON ) STATE DEPARTMENT OF ECOLOGY; ) WESTWAYTERMINALCOMPANY, ) LLC; and WASHINGTON SHORELINES ) HEARINGS BOARD, ) ) Respondents. ) _________________________)

OWENS, J. - Two companies applied for permits to expand their oil

terminals on the shores of Grays Harbor. The expansion would facilitate the storage

of additional fuel products, which would arrive by train or truck and depart by ocean-

bound ship. The issue here is whether the Ocean Resources Management Act Quinault Indian Nation, eta/. v. Imperium Terminal Svcs., eta/. No. 92552-6

(ORMA), chapter 43.143 RCW, applies to these expansion projects. 1 The Shoreline

Hearings Board (Board) and the Court of Appeals held that ORMA does not apply to

these projects based on limited definitions in the Department of Ecology's (DOE)

ORMA implementation regulations. We hold that this interpretation improperly

restricts ORMA, which was enacted to broadly protect against the environmental

dangers of oil and other fossil fuels. The pmties also contest whether these projects

qualify as "ocean uses" or "transportation" under DOE's regulations. We hold that

these projects qualify as both ocean uses and transportation. Finally, though not

discussed by the parties or the Court of Appeals, these projects qualify as "coastal

uses" under DOE's regulations. Accordingly, we reverse the Court of Appeals and

remand for further review under ORMA's provisions.

FACTS

Westway Terminal Company LLC owns a terminal used for storing

petroleum products in the Port of Grays Harbor within the city ofi-Ioquiam. Grays

Harbor and the areas along the rail and ocean vessel route contain many

environmentally sensitive areas including streams, rivers, wetlands, and migratory

bird habitats. Westway applied to the city of Hoquiam and DOE to expand its

1 ORMA was originally passed in 1989 in the wake of the Nestucca and Exxon Valdez oil spills. When the legislature passed the law, it explicitly noted the danger that oil spills pose to the state's marine environment. LAWS OF 1989, 1st Ex. Sess., ch. 2.

2 Quinault Indian Nation, et al. v. Imperium Terminal Svcs., et al. No. 92552-6

existing bulk liquid storage terminal to allow for the receipt of oil trains, storage of

crude oil from those trains, and outbound shipment of oil by vessel and barge. The

crude oil would be shipped from the Port of Grays Harbor to regional refineries.

Westway's expansion project is situated on the shores of both Grays Harbor and

the Chehalis River in the city of Hoquiam. Construction of the proposed project

will be at least 160 feet from the river.

Westway plans to expand its existing facility by constructing four

aboveground storage tanks for storing crude oil. Each tank will have a capacity of

8.4 million gallons, meaning the entire Westway project will have a capacity of

33.6 million gallons. Westway also plans to expand its rail facility from two short

rail spurs to four longer spurs with a total of76loading spots. Westway would

also add a vapor combustion unit and a structural hose support system to

accommodate loading tanker vessels with crude oil. Once complete, Westway's

expanded terminal is estimated to receive 403.2 million gallons of oil per year.

This is equivalent to two "unit train" transits (one loaded and one empty, with 120

railcars each) every three days. Westway's expansion is estimated to increase the

amount of train traffic by up to 243 transits per year. Westway's expansion project

is also estimated to increase ocean vessel traffic by up to 120 transits per year.

3 Quinault Indian Nation, eta/. v. Imperium Terminal Svcs., eta/. No. 92552-6

Imperium Terminal Services LLC operates a similar terminal facility next to

Westway's in Grays Harbor, also adjacent to the Chehalis River. Like Westway,

Imperium applied to expand its bulk liquid storage terminal to allow for the

receipt, storage, and shipment of crude oil, biofuels, and other fuel products. This

expanded facility "would be served by three independent modes oftransportation:

water, rail, and truck, each of which would provide pathways for inbound raw

materials or outbound products." Admin. Record (AR) at 228, 524. Imperium's

expansion would include construction of nine additional storage tanks, each with a

storage capacity of3.36 million gallons, for a total capacity of30.24 million

gallons. Approximately 6,100 feet of new track would be constructed to expand

their current railyard. Two new pipes would also be constructed, connecting the

tank farm with a preexisting shipping terminal. Finally, a marine vapor

combustion unit would be installed in order to incinerate vapors displaced during

vessel loading. The unit would overhang the harbor's waters.

Imperium estimated its expansion project would increase terminal operations

up to two unit trains per day (one loaded and one empty), each consisting of 105

tank cars, and would result in up to 200 ships or barges a year. Combined, the

Westway and Imperium expansion projects would increase vessel traffic by 520

transits per year and increase train traffic by 973 transits per year. This would be a

4 Quinault Indian Nation, eta!. v. Imperium Terminal Svcs., eta!. No. 92552-6

310 percent increase in vessel transits and a 133 percent increase in train transits

per year through Grays Harbor.

In order to gain permission to begin these expansions, Westway and

Imperium applied for substantial shoreline development permits (SSDPs). DOE

and the city of Hoquiam worked as "co-leads," tasked with making a threshold

determination of nonsignificance, determination of significance, or mitigated

determination ofnonsignificance (MDNS). The co-leads issued an MDNS to both

Westway and Imperium for their proposals and issued SSDPs for both terminals in

April and June 2013. Petitioners 2 appealed the permits and MDNS to the Board,

arguing in part that DOE and the city of Hoquiam failed to consider both the State

Environmental Policy Act (SEPA), chapter 43.21C RCW, and ORMA before

issuing the MDNSs.

Petitioners and respondents 3 all filed motions for partial summary judgment.

Petitioners claimed that respondents violated SEP A because they ignored the

cumulative impact of their own projects, as well as the foreseeable additional

impact of a third, similar project when assessing environmental impact at the

"threshold determination stage." Id. at 1142-52. The Board granted petitioners'

2 Petitioners are Quinault Indian Nation, Friends of Grays Harbor, Sierra Club, Grays Harbor Audubon, and Citizens for a Clean Harbor. 3 Respondents are Imperium, the city of Hoquiam, DOE, Westway, and the Board.

5 Quinault Indian Nation, et al. v. Imperium Terminal Svcs., et al. No. 92552-6

motion for partial summary judgment, holding that respondents' failure to account

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