Quinault Indian Nation v. Imperium Terminal Services, LLC

360 P.3d 949, 190 Wash. App. 696
CourtCourt of Appeals of Washington
DecidedOctober 20, 2015
Docket45887-0-II; 45947-7-II; 45957-4-II
StatusPublished
Cited by4 cases

This text of 360 P.3d 949 (Quinault Indian Nation v. Imperium Terminal Services, LLC) 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
Quinault Indian Nation v. Imperium Terminal Services, LLC, 360 P.3d 949, 190 Wash. App. 696 (Wash. Ct. App. 2015).

Opinion

Johanson, C.J. —

¶1 The Quinault Indian Nation, Friends of Grays Harbor, Grays Harbor Audubon Society, Sierra Club, and Citizens for a Clean Harbor (collectively Quinault) appealed the Shoreline Hearings Board’s (Board) grant of summary judgment on certain issues to Westway Terminal Company LLC, Imperium Terminal Services LLC, the Department of Ecology (DOE), and the city of Hoquiam (City). Quinault argues that (1) RCW 88.40.025 requires that Westway and Imperium demonstrate financial responsibility at the State Environmental Policy Act (SEPA) 1 threshold determination phase and before permitting and (2) the Ocean Resources Management Act (ORMA) 2 applies to Westway’s and Imperium’s terminal development projects. We reject Quinault’s arguments and hold that (1) RCW 88.40.025 does not require permit applicants to demonstrate financial responsibility prior to permitting and (2) ORMA does not apply to the Westway or the Imperium terminal development projects.

¶2 Imperium cross petitions and argues that the Board erred when it invalidated DOE’s and the City’s SEPA threshold determinations because they did not consider the cumulative impact of U.S. Development Group LLC’s (USD) similar terminal development project. We conclude this *700 issue is moot because DOE’s and the City’s mitigated determinations of nonsignificance (MDNSs) were withdrawn, the parties have agreed to a determination of significance (DS), an environmental impact statement (EIS) will be prepared, and the continuing and substantial public interest exception to the mootness doctrine does not apply. We affirm the Board’s grant of summary judgment.

FACTS

I. Substantive Facts

A. The Westway and Imperium Terminal Projects

¶3 Westway owns a terminal for storing methanol in the Port of Grays Harbor (Port) in Hoquiam. The Westway facility currently includes four 3.34 million gallon storage tanks, two rail spurs with 18 loading and unloading points, pipelines, and office and warehouse buildings.

¶4 On November 30, 2012, Westway applied for a substantial shoreline development permit (SSDP) based on plans to expand its operations. The purpose of the expansion was “to allow for the receipt of crude oil unit trains, storage of crude oil from these trains and shipment of crude oil by vessel and/or barge from the Port.” Admin. Record (AR) at 73. The project involved adding four new storage tanks, each with a capacity to hold 200,000 barrels of crude oil. Westway would have expanded the adjoining rail facility by lengthening the existing rail spurs and adding two additional spurs. Westway estimated that the expanded rail facility will receive 9.6 million barrels of crude oil per year—approximately equivalent to one 120-railcar train every three days.

¶5 Imperium operates a similar facility adjacent to the Westway terminal that is currently permitted for storage of biodiesel, methanol, and other products. In February 2013, Imperium applied for an SSDP for an expansion similar to *701 Westway’s expansion. 3 Imperium proposed nine new storage tanks with a total capacity of 720,000 barrels. Imper-ium also proposed to construct a “berm” large enough to contain the contents of the largest tank plus rainwater, to add 6,100 feet of railroad track and new rail spurs, and to expand the rail yard. Imperium would also have constructed pipelines to connect the port terminal to the new storage tanks.

B. SEPA Review

¶6 Under the Shoreline Management Act of 1971, 4 Westway’s and Imperium’s proposals must comply with SEPA, and both Westway and Imperium submitted SEPA environmental checklists with their permit applications. Working together as “Co-leads,” DOE and the City were charged with making either a SEPA threshold determination of nonsignificance (DNS), a DS, or an MDNS on both the Westway and the Imperium proposals.

¶7 In April and May 2013, the Co-leads issued an MDNS for both the Westway and Imperium proposals. 5 As one of the mitigation measures, the MDNSs required Westway and Imperium to submit oil spill prevention plans “required by . . . WAC 173-180.” AR at 779, 234.

¶8 Before making their determinations, the Co-leads considered Westway’s and Imperium’s SEPA checklists, held telephone and in-person meetings with Westway and Imperium personnel, and reviewed additional information. The Co-leads, however, did not consider the cumulative impact of USD’s similar terminal development proposal because USD “had not submitted an environmental checklist or permit application” and its proposal was still in its *702 “conceptual stage.” AR at 1522. USD’s plans involved construction of new storage tanks with a 1.1 million-barrel storage capacity and receipt of about five vessels per month.

II. Procedural Facts

¶9 After the Co-leads issued the MDNSs for both projects, the City issued permits to Westway and Imperium. Quinault appealed the permits and the MDNSs to the Board. 6 Quinault argued, in relevant part, that (1) the MDNSs were invalid because the Co-leads “failed to adequately consider the direct, indirect, and cumulative impacts of three proposed crude-by-rail terminals in Grays Harbor,” (2) the MDNSs and permits were invalid because they failed to require demonstrations of financial responsibility under RCW 88.40.025, and (3) the MDNSs and permits were invalid because “responsible official[s]” failed to consider ORMA. AR at 211.

¶10 Quinault Indian Nation, Friends of Grays Harbor, the Co-leads, Westway, and Imperium each moved for summary judgment. The Board invalidated the MDNSs and remanded the permits to the Co-leads for further SEPA analysis. The Board agreed with the Co-leads, Westway, and Imperium that (1) ORMA does not apply to the Westway and Imperium projects and (2) Westway and Imperium need not demonstrate financial responsibility until they file their oil spill prevention plans. But the Board agreed with Quinault on the cumulative impact issue and concluded that the MDNSs were clearly erroneous because the Co-leads failed to consider the cumulative impact of USD’s proposal.

¶11 Following the Board’s decision, the Co-leads withdrew the MDNSs and the permits, Westway and Imperium agreed to a DS, and the Co-leads began to prepare an EIS. *703 Quinault and Imperium appeal the Board’s order, petitioning for discretionary review by this court pursuant to RCW 34.05.518.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Quinault Indian Nation v. Imperium Terminal Services, LLC
387 P.3d 670 (Washington Supreme Court, 2017)
Quinault Indian Nation v. City of Hoquiam
Washington Supreme Court, 2017
Quinault Indian Nation v. Imperium Terminal Servs., LLC
185 Wash. 2d 1017 (Washington Supreme Court, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
360 P.3d 949, 190 Wash. App. 696, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quinault-indian-nation-v-imperium-terminal-services-llc-washctapp-2015.