Safety Kleen Inc v. State of SC

274 F.3d 846, 32 Envtl. L. Rep. (Envtl. Law Inst.) 20438, 53 ERC (BNA) 1744, 2001 U.S. App. LEXIS 26910, 38 Bankr. Ct. Dec. (CRR) 261
CourtCourt of Appeals for the Fourth Circuit
DecidedDecember 19, 2001
Docket00-2170, 00-2179 to 00-2182, 00-2213 and 00-2214
StatusPublished
Cited by1 cases

This text of 274 F.3d 846 (Safety Kleen Inc v. State of SC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Safety Kleen Inc v. State of SC, 274 F.3d 846, 32 Envtl. L. Rep. (Envtl. Law Inst.) 20438, 53 ERC (BNA) 1744, 2001 U.S. App. LEXIS 26910, 38 Bankr. Ct. Dec. (CRR) 261 (4th Cir. 2001).

Opinions

Affirmed in part, reversed in part, and dismissed in part by published opinion. Judge MICHAEL wrote the opinion, in which Judge WIDENER joined and in which Judge LUTTIG joined except for part III.A. Judge WIDENER wrote a concurring opinion, and Judge LUTTIG wrote a concurring opinion.

[855]*855OPINION

MICHAEL, Circuit Judge.

Safety-Kleen, Inc., a Chapter 11 debtor, filed this adversary proceeding against the South Carolina Department of Health and Environmental Control (DHEC) in an effort to prevent the agency from closing Safety-Kleen’s Pinewood facility, a commercial hazardous waste landfill. Safety-Kleen appeals the district court’s order denying the company a preliminary injunction to enjoin DHEC from closing the Pinewood facility. DHEC, in turn, cross-appeals the district court’s determinations (1) that the Rooker-Feldman doctrine does not bar Safety-Kleen’s action and (2) that the automatic stay blocks DHEC’s attempt to require Safety-Kleen to comply with state financial assurance regulations. DHEC also attempts to take an interlocutory appeal from the district court’s order denying its motion to dismiss Safety-Kleen’s complaint. Finally, the Official Committee of Unsecured Creditors of Safety-Kleen (“Official Committee”) appeals the denial of its motion to intervene. We hold that (1) Rooker-Feldman does not bar Safety-Kleen’s action; (2) the district court did not err in denying Safety-Kleen’s motion for a preliminary injunction; (3) the automatic stay does not apply to DHEC’s efforts to enforce the financial assurance requirements; (4) DHEC may not appeal the denial of its motion to dismiss; and (5) the Official Committee’s motion to intervene should have been allowed. As a result, we affirm in part, reverse in part, and dismiss in part.

I.

Safety-Kleen operates the Pinewood facility, one of only twenty commercial hazardous waste landfills in the country. Pinewood is located in Sumter County, South Carolina, and is within 1200 feet of Lake Marion, a popular recreation spot and a source of drinking water for several thousand people. Pinewood began accepting hazardous waste in 1978 and operated under a permit issued by DHEC. DHEC issued the original permit without providing public notice or a hearing. After Congress passed the Resource Conservation and Recovery Act (RCRA), Pub.L. No. 94-580, 90 Stat. 2795 (1976) (codified as amended at 42 U.S.C. §§ 6901-6992k), Safety-Kleen was required to apply for a new hazardous waste permit from DHEC. Under RCRA Pinewood qualified for “interim status,” which allowed Pinewood to remain open pending DHEC’s determination of whether to award Safety-Kleen a final permit.

DHEC scheduled a public hearing and solicited comments on whether and under what conditions Safety-Kleen was entitled to a final permit to operate Pinewood. In July 1989 DHEC staff, in consultation with the EPA, issued a final permit to Safety-Kleen to operate Pinewood. The permit provided that Pinewood had a capacity limit of 2250 acre-feet1 of waste, but it did not specify whether nonhazardous waste counted toward the capacity limit. Safety-Kleen objected to some of the permit’s conditions and requested a hearing with a DHEC hearing officer.2 Several environmental groups also requested a hearing to [856]*856challenge the issuance of a final permit. Before the hearing Safety-Kleen and DHEC agreed to resolve their differences over the permit terms by entering into a stipulated agreement. The agreement contained two important provisions. First, Pinewood could store up to 2461 acre-feet of nonhazardous waste in addition to 2250 acre-feet of hazardous waste. Second, Safety-Kleen agreed not to apply for additional landfill space until Pinewood was within three years of reaching its capacity. The agreement, however, was not binding on either the hearing officer or the DHEC Board.

The DHEC hearing officer recommended approval of the agency’s decision to issue the final permit as modified by the stipulated agreement. The environmental groups asked the DHEC Board to review the hearing officer’s recommendation. The Board upheld the issuance of the final permit but rejected the stipulated agreement’s separate allowance for nonhazardous waste. In other words, the Board concluded that Pinewood’s capacity should be limited to a total of 2250 acre-feet of total waste, whether hazardous or nonhazardous. The Board’s decision, however, was prospective only. Therefore, any nonhazardous waste stored in Pinewood prior to the Board’s decision would not be counted against the cap. While Safety-Kleen was not pleased with the Board’s decision to reject the separate cap for nonhazardous waste, Safety-Kleen estimated that Pinewood would have between four and one-half to six years of unused space left under the permit.

Both Safety-Kleen and the environmental groups petitioned the Sumter County Court of Common Pleas for judicial review of the Board’s decision. Safety-Kleen sought reversal of the Board’s decision to reject the separate cap for nonhazardous waste, and the environmental groups challenged the issuance of the permit for Pinewood. The Court of Common Pleas denied each of the petitions for review, and both sides then appealed to the South Carolina Court of Appeals. The Court of Appeals upheld the Board’s decision, but with one significant change. See Leventis v. S.C. DHEC, 340 S.C. 118, 530 S.E.2d 643 (App.2000). The court concluded that the rejection of the separate cap for nonhazardous waste would operate retrospectively as well as prospectively. See id. at 660. In other words, any nonhazardous waste stored in Pinewood before the Board’s decision would count against the total cap. See id. As a result of this decision, Pinewood became immediately full under the permit. Specifically, the combination of the existing nonhazardous and hazardous waste stored at Pinewood exceeded the 2250 acre-feet cap. The Court of Appeals’ decision had dramatic consequences for Safety-Kleen. The instant before the decision, Pinewood had a substantial amount of unfilled space, and Safety-Kleen was barred by the stipulated agreement from seeking additional space. The instant after the decision, Pinewood suddenly had no more permitted space. Safety-Kleen promptly petitioned for a writ of certiorari to the South Carolina Supreme Court.

While the petition for certiorari was pending, Safety-Kleen encountered another serious problem, this one relating to the bonds posted by the company to secure certain facility-related obligations. On June 1, 2000, the U.S. Treasury removed Frontier Insurance Company from its list of approved sureties. Frontier was the issuer of the bonds posted by Safety-Kleen to secure the costs associated with Pinewood’s closure and post-closure maintenance. Safety-Kleen’s permit and state law require that the surety company issuing the required bonds be among those listed as acceptable by the Treasury. On June 9 DHEC ordered Safety-Kleen to acquire substitute bonds within 18 days or [857]*857cease accepting waste (the “bond order”). Safety Kleen did not have the financial ability to comply with DHEC’s order, and later that day the company filed for Chapter 11 bankruptcy in the District of Delaware.

Four days later, on June 13, the South Carolina Supreme Court denied Safety Kleen’s petition for a writ of certiorari to review the Court of Appeals’ decision.

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Related

Safety-Kleen, Incorporated (Pinewood), and Toronto Dominion (Texas), Incorporated, as Agent and Advisor for Secured Creditors Td Securities (Usa), Incorporated, as Agent and Advisor for Secured Creditors, Intervenors/plaintiffs, and Official Committee of Unsecured Creditorsof Safety Kleen Corporation, Amicus Curiae v. Bradford W. Wyche, Chairman, South Carolina Board of Health and Environmental Control, in His Official Capacity South Carolina Boardof Healthand Environmental Control Douglas E. Bryant, Commissioner, South Carolina Department of Health and Environmental Control, in His Official Capacity South Carolina Departmentof Healthand Environmental Control, Sierra Club Phil P. Leventis Citizens Askingfor a Safe Environment, Incorporated (Case) South Carolina Departmentof Natural Resources South Carolina Public Service Authority, Intervenors/defendants-Appellees, and State of South Carolina, United States of America, Amicus Curiae. Safety-Kleen, Incorporated (Pinewood), Toronto Dominion (Texas), Incorporated, as Agent and Advisor for Secured Creditors Td Securities (Usa), Incorporated, as Agent and Advisor for Secured Creditors, Intervenors/plaintiffs-Appellees, and Official Committee of Unsecured Creditorsof Safety Kleen Corporation, Amicus Curiae v. Bradford W. Wyche, Chairman, South Carolina Board of Health and Environmental Control, in His Official Capacity South Carolina Boardof Healthand Environmental Control Douglas E. Bryant, Commissioner, South Carolina Department of Health and Environmental Control, in His Official Capacity South Carolina Departmentof Healthand Environmental Control, and State of South Carolina, and Sierra Club Phil P. Leventis Citizens Askingfor a Safe Environment, Incorporated (Case) South Carolina Departmentof Natural Resources South Carolina Public Service Authority, Intervenors/defendants, United States of America, Amicus Curiae. Safety-Kleen, Incorporated (Pinewood), and Toronto Dominion (Texas), Incorporated, as Agent and Advisor for Secured Creditors Td Securities (Usa), Incorporated, as Agent and Advisor for Secured Creditors, Intervenors/plaintiffs, and Official Committee of Unsecured Creditorsof Safety Kleen Corporation, Amicus Curiae v. State of South Carolina Bradford W. Wyche, Chairman, South Carolina Board of Health and Environmental Control, in His Official Capacity South Carolina Boardof Healthand Environmental Control Douglas E. Bryant, Commissioner, South Carolina Department of Health and Environmental Control, in His Official Capacity South Carolina Departmentof Healthand Environmental Control,defendants, and Sierra Club Phil P. Leventis Citizens Askingfor a Safe Environment, Incorporated (Case) South Carolina Departmentof Natural Resources, Intervenors/defendants, and South Carolina Public Service Authority, Intervenor/defendant-Appellant, United States of America, Amicus Curiae. Safety-Kleen, Incorporated (Pinewood), and Toronto Dominion (Texas), Incorporated, as Agent and Advisor for Secured Creditors Td Securities (Usa), Incorporated, as Agent and Advisor for Secured Creditors, Intervenors/plaintiffs, and Official Committee of Unsecured Creditorsof Safety Kleen Corporation, Amicus Curiae v. State of South Carolina Bradford W. Wyche, Chairman, South Carolina Board of Health and Environmental Control, in His Official Capacity South Carolina Boardof Healthand Environmental Control Douglas E. Bryant, Commissioner, South Carolina Department of Health and Environmental Control, in His Official Capacity South Carolina Departmentof Healthand Environmental Control, South Carolina Departmentof Natural Resources South Carolina Public Service Authority, Intervenors/defendants, and Sierra Club Phil P. Leventis Citizens Askingfor a Safe Environment, Incorporated (Case), Intervenors/defendants-Appellants. United States of America, Amicus Curiae. Safety-Kleen, Incorporated (Pinewood), and Toronto Dominion (Texas), Incorporated, as Agent and Advisor for Secured Creditors Td Securities (Usa), Incorporated, as Agent and Advisor for Secured Creditors, Intervenors/plaintiffs, and Official Committee of Unsecured Creditorsof Safety Kleen Corporation, Amicus Curiae v. State of South Carolina Bradford W. Wyche, Chairman, South Carolina Board of Health and Environmental Control, in His Official Capacity South Carolina Boardof Healthand Environmental Control Douglas E. Bryant, Commissioner, South Carolina Department of Health and Environmental Control, in His Official Capacity South Carolina Departmentof Healthand Environmental Control, and Sierra Club Phil P. Levenis Citizens Askingfor a Safe Environment, Incorporated (Case) South Carolina Public Service Authority, Intervenors/defendants, and South Carolina Departmentof Natural Resources, Intervenor/defendant-Appellant. United States of America, Amicus Curiae. Safety-Kleen, Incorporated (Pinewood), and Toronto Dominion (Texas), Incorporated, as Agent and Advisor for Secured Creditors Td Securities (Usa), Incorporated, as Agent and Advisor for Secured Creditors, Intervenors/plaintiffs-Appellants, Official Committee of Unsecured Creditorsof Safety Kleen Corporation, Amicus Curiae v. Bradford W. Wyche, Chairman, South Carolina Board of Health and Environmental Control, in His Official Capacity South Carolina Boardof Healthand Environmental Control Douglas E. Bryant, Commissioner, South Carolina Department of Health and Environmental Control, in His Official Capacity South Carolina Departmentof Healthand Environmental Control, Sierra Club Phil P. Leventis Citizens Askingfor a Safe Invironment, Incorporated (Case) South Carolina Departmentof Natural Resources South Carolina Public Service Authority, Intervenors/defendants-Appellees, and State of South Carolina, United States of America, Amicus Curiae. Safety-Kleen, Incorporated (Pinewood), Toronto Dominion (Texas), Incorporated, as Agent and Advisor for Secured Creditors Td Securities (Usa), Incorporated, as Agent and Advisor for Secured Creditors, Intervenors/plaintiffs, and Official Committee of Unsecured Creditorsof Safety Kleen Corporation, Amicus Curiae-Appellant v. Bradford W. Wyche, Chairman, South Carolina Board of Health and Environmental Control, in His Official Capacity South Carolina Boardof Healthand Environmental Control Douglas E. Bryant, Commissioner, South Carolina Department of Health and Environmental Control, in His Official Capacity South Carolina Departmentof Healthand Environmental Control, Sierra Club Phil P. Leventis Citizens Askingfor a Safe Environment, Incorporated (Case) South Carolina Departmentof Natural Resources South Carolina Public Service Authority, Intervenors/defendants-Appellees, and State of South Carolina, United States of America, Amicus Curiae
274 F.3d 846 (Fourth Circuit, 2001)

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Bluebook (online)
274 F.3d 846, 32 Envtl. L. Rep. (Envtl. Law Inst.) 20438, 53 ERC (BNA) 1744, 2001 U.S. App. LEXIS 26910, 38 Bankr. Ct. Dec. (CRR) 261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/safety-kleen-inc-v-state-of-sc-ca4-2001.