R.P. Lumber Co. v. State Fire Marshal

688 N.E.2d 379, 293 Ill. App. 3d 402
CourtAppellate Court of Illinois
DecidedDecember 17, 1997
DocketNo. 5—96—0734
StatusPublished
Cited by1 cases

This text of 688 N.E.2d 379 (R.P. Lumber Co. v. State Fire Marshal) 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
R.P. Lumber Co. v. State Fire Marshal, 688 N.E.2d 379, 293 Ill. App. 3d 402 (Ill. Ct. App. 1997).

Opinion

JUSTICE KUEHN

delivered the opinion of the court:

R.P. Lumber Company, Inc. (R.P. Lumber), appeals from the October 17, 1996, order of the Pollution Control Board (Board) affirming the May 20, 1994, determination of the Office of the State Fire Marshal (OSFM) that R.P. Lumber’s underground storage tank (UST) remediation reimbursement request was subject to a $100,000 deductible. We affirm.

The land involved in this case is located in downtown Edwards-ville in Madison County. In April 1986, this entire land parcel was owned by Illinois Lumber. In December 1994, R.P. Lumber purchased the last section of this property, which made it the sole owner of the original Illinois Lumber parcel. R.P. Lumber acquired this property by making four separate land purchases.

On April 14, 1986, Illinois Lumber registered a UST with the OSFM. Later that year, on September 26, 1986, R.P. Lumber purchased its first section of this Illinois Lumber property. What R.P. Lumber did not know at the time of the purchase and would not discover for many years was that there were two unregistered USTs on this piece of property.

On April 14, 1988, R.P. Lumber purchased the second portion of this property from Illinois Lumber.

Sometime after R.P. Lumber’s second purchase, the Bank of Alton foreclosed on the remainder of the property. In October 1991, the Bank of Alton removed and subsequently cleaned up the area of the April 14, 1986, registered UST.

On December 31, 1991, R.P. Lumber purchased the third portion of this property from the Bank of Alton. This third portion did not contain the area of the October 1991 remediation.

Sometime in 1992, R.P. Lumber discovered the first unregistered UST on the first parcel purchased. Because of the early date that this UST was removed from service, it was not necessary to register it with the state. On October 22, 1992, the OSFM designated this UST with a facility number. On December 3, 1992, R.P. Lumber removed this UST and discovered the second unregistered UST. On December 16, 1992, R.P. Lumber registered the second UST with the OSFM.

On February 18, 1993, R.P. Lumber removed the second UST and discovered a significant petroleum release requiring remediation. R.P. Lumber promptly notified the Illinois Emergency Management Agency, and an incident number was issued.

R.P. Lumber asked the OSFM to determine its eligibility for access to the Illinois UST fund for remedial activities. On May 20, 1994, the OSFM concluded that R.P. Lumber was eligible for fund access and determined that the applicable deductible was $100,000.

R.P. Lumber petitioned the Board on June 24, 1994, to challenge the OSFM’s deductible determination, contending that under the applicable statutory provisions, a $15,000 deductible was applicable.

In December 1994, R.P. Lumber purchased the fourth parcel from the Bank of Alton, finally owning the totality of the land originally owned by Illinois Lumber in 1986. This fourth parcel contained the area previously cleaned up by the Bank of Alton.

On July 7, 1995, the Board affirmed the OSFM determination that the $100,000 deductible was factually applicable, by granting the OSFM’s partial summary judgment motion. The Board stayed this matter pending appellate court review of a similar action. That case addressed issues that are not before us on this appeal. On October 17, 1996, following the disposition of that similar case, the Board entered its final order affirming the OSFM’s May 20, 1994, determination.

R.P. Lumber appeals.

Our review of the Board’s decision includes all legal questions previously raised. Township of Harlem v. Environmental Protection Agency, 265 Ill. App. 3d 41, 44, 637 N.E.2d 1252, 1254 (1994). We are not bound by the Board’s decision. Township of Harlem, 265 Ill. App. 3d at 44, 637 N.E.2d at 1254. However, the Board’s decision should be accorded deference and should be upheld if not erroneous. Township of Harlem, 265 Ill. App. 3d at 44, 637 N.E.2d at 1254.

Owners and operators of USTs must register the USTs with the OSFM. 430 ILCS 15/4(b) (West 1994). Owners and operators of USTs are responsible for their removal, repair, and remediation. 415 ILCS 5/57.1 (West 1994).

The OSFM has the authority to determine whether an owner or operator of a UST is eligible to receive compensation for corrective-action costs from the Underground Storage Tank Fund (the Fund). 415 ILCS 5/57.9(c) (West 1994). An owner can access the Fund if it meets certain criteria. 415 ILCS 5/57.9(a) (West 1994). If the UST contained nonexempt fuel, if the UST was properly registered, if appropriate notice of a confirmed petroleum release was provided to the Illinois Emergency Management Agency, and if all costs were incurred as a result of the petroleum release, the UST owner or operator may be able to access the Fund. 415 ILCS 5/57.9(a) (West 1994).

A deductible amount is applied to applications for Fund reimbursement. 415 ILCS 5/57.9(b) (West 1994). If none of an owner’s USTs were registered prior to the legislation’s effective date, July 28, 1989, the applicable deductible is $100,000. 415 ILCS 5757.9(b)(1) (West 1994). If one or more, but not all, of an owner’s USTs were registered prior to July 28, 1989, and the appropriate agency received notice of the release after that date, the applicable deductible is $15,000. 415 ILCS 5/57.9(b)(3) (1994). These varying deductible amounts serve a legitimate state interest encouraging UST registration so that the state knows its approximate UST population. Stroh Oil Co. v. Office of the State Fire Marshal, 281 Ill. App. 3d 121, 130, 665 N.E.2d 540, 547 (1996).

Before the remediation costs are reimbursed to the owner, a number of other legal requirements must be met. See 415 ILCS 5/57.9 (West 1994). At this time, there is no issue about whether R.P. Lumber is eligible for compensation or whether its claim satisfies those legal payment prerequisites. The only issue is which deductible amount is applicable.

The OSFM’s deductible eligibility decision, affirmed by the Board, was based upon the fact that no UST was located on R.P. Lumber’s property at the time of the release for which remediation was necessary and Fund reimbursement was sought. The Board’s order affirming the OSFM’s decision stated that the original determination was correct because none of the USTs at issue were registered prior to July 28, 1989.

The statutory language that sets forth the deductibility eligibility and requirements is specific.

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

Related

Environmental Control Systems, Inc. v. Long
703 N.E.2d 1001 (Appellate Court of Illinois, 1998)

Cite This Page — Counsel Stack

Bluebook (online)
688 N.E.2d 379, 293 Ill. App. 3d 402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rp-lumber-co-v-state-fire-marshal-illappct-1997.