Quinault Indian Nation v. Imperium Terminal Services, LLC

387 P.3d 670, 187 Wash. 2d 460
CourtWashington Supreme Court
DecidedJanuary 12, 2017
DocketNo. 92552-6
StatusPublished
Cited by7 cases

This text of 387 P.3d 670 (Quinault Indian Nation v. Imperium Terminal Services, LLC) 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. Imperium Terminal Services, LLC, 387 P.3d 670, 187 Wash. 2d 460 (Wash. 2017).

Opinion

Owens, J.

¶1 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 (ORMA), chapter 43.143 RCW, [464]*464applies 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 parties 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

¶2 Westway Terminal Company LLC owns a terminal used for storing petroleum products in the Port of Grays Harbor within the city of Hoquiam. 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 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.

[465]*465¶3 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 of 76 loading 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.

¶4 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 of transportation: 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 of 3.36 million gallons, for a total capacity of 30.24 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.

¶5 Imperium estimated its expansion project would increase terminal operations up to two unit trains per day [466]*466(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 310 percent increase in vessel transits and a 133 percent increase in train transits per year through Grays Harbor.

¶6 In order to gain permission to begin these expansions, Westway and Imperium applied for substantial shoreline development permits (SSDPs). DOE and the city of Ho-quiam worked as “co-leads,” tasked with making a threshold determination of nonsignificance, determination of significance, or mitigated determination of nonsignificance (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. Petitioners2 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.

¶7 Petitioners and respondents3 all filed motions for partial summary judgment. Petitioners claimed that respondents violated SEPA 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.” AR at 1142-52. The Board granted petitioners’ motion for partial summary judgment, holding that respondents’ failure to account for the cumulative impact of all three projects made the issuance of the MDNS clearly [467]*467erroneous. Respondents have not challenged this finding before this court.4

¶8 However, the Board also granted respondents’ motion for partial summary judgment, determining that ORMA was not applicable to the proposal. It reasoned that ORMA applies only to ocean-based projects because of the ORMA implementing regulation promulgated by DOE, WAC 173-26-360. Using the definitions from that regulation, it noted that ORMA was designed to regulate activities in the ocean, such as extraction of oil, gas, and minerals, and concluded that the proposed Westway terminal did not fall within the definition.

¶9 Petitioners appealed this summary judgment order to the Court of Appeals, which accepted direct review. Quinault Indian Nation v. Imperium Terminal Servs., LLC, 190 Wn. App. 696, 360 P.3d 949 (2015). The Court of Appeals affirmed the Board’s grant of summary judgment. Id. at 700. It found that the Westway and Imperium proposals were not subject to ORMA because they are not “ocean uses” or “transportation uses” under WAC 173-26-360(3) and (12). Id. at 712-17. The court reasoned that respondents’ projects were not “ocean uses” because the terminals did not constitute a “primary activity occurring on Washington’s coastal waters.” Id. at 713. The court did not directly address ORMA’s plain language or whether the Board was required to apply it to respondents’ proposals.

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Bluebook (online)
387 P.3d 670, 187 Wash. 2d 460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quinault-indian-nation-v-imperium-terminal-services-llc-wash-2017.