Secured Environmental Management, Inc. v. Texas Natural Resource Conservation Commission, Jeffrey Saitas, and the City of Mont Belvieu

CourtCourt of Appeals of Texas
DecidedDecember 19, 2002
Docket03-02-00219-CV
StatusPublished

This text of Secured Environmental Management, Inc. v. Texas Natural Resource Conservation Commission, Jeffrey Saitas, and the City of Mont Belvieu (Secured Environmental Management, Inc. v. Texas Natural Resource Conservation Commission, Jeffrey Saitas, and the City of Mont Belvieu) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Secured Environmental Management, Inc. v. Texas Natural Resource Conservation Commission, Jeffrey Saitas, and the City of Mont Belvieu, (Tex. Ct. App. 2002).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN




NO. 03-02-00219-CV

Secured Environmental Management, Inc., Appellant



v.



Texas Natural Resource Conservation Commission, Jeffrey Saitas, and

The City of Mont Belvieu, Appellees



FROM THE DISTRICT COURT OF TRAVIS COUNTY, 200TH JUDICIAL DISTRICT

NO. GN102659, HONORABLE PAUL DAVIS, JUDGE PRESIDING

In this case, we determine whether a Texas statute, section 361.114 of the Health and Safety Code, which bans hazardous waste disposal in salt-dome formations, is preempted by the Federal Resource Conservation and Recovery Act ("RCRA"). See Tex. Health & Safety Code Ann. § 361.114 (West Supp. 2003); 42 U.S.C.A. §§ 6901-6991 (West 1995 & Supp. 2003). Before the Texas statute was passed, Secured Environmental Management ("SEM") had applied for a permit to dispose of hazardous waste in a salt-dome formation. After passage of the statute, the Texas Natural Resource Conservation Commission (1) (the "Commission") informed SEM that it would no longer consider the aspects of SEM's application dealing with hazardous waste disposal in salt domes and requested that SEM revise its application to omit any mention of salt-dome hazardous waste disposal. In response to the Commission's request, SEM sought a declaratory judgment that section 361.114 was preempted by federal law and an injunction preventing the statute's implementation. The trial court held that 361.114 is not preempted. We agree with the trial court and will affirm.

BACKGROUND

In 1992, SEM applied to the Commission for a permit allowing a comprehensive waste disposal scheme, part of which involved a plan to store non-liquid hazardous waste in salt-dome formations. At that time, Texas provided by statute that certain regulatory requirements had to be met before hazardous waste could be deposited in salt domes. Among other things, a license applicant had to demonstrate that: (1) there existed an urgent public necessity; (2) salt-dome disposal was at least as safe as alternative disposal methods; and (3) the project would protect groundwater and public water supplies. Act of June 7, 1991, 72d Leg., R.S., ch. 296, § 1.20, 1991 Tex. Gen. Laws 1251 (amended 2001) (current version at Tex. Health & Safety Code Ann. § 361.114 (West Supp. 2003)). In addition, under the Commission's then-current rules, SEM would have had to explain the appropriateness of disposing of the particular type of waste in a given salt dome, taking into account the unique geology of that salt dome. See Tex. Admin. Code §§ 331.121(a), (d), (g) (2002) (superseded by statute, Act effective Sept. 1, 2002, 77th Leg., R.S., ch. 965, § 9.02, 2001 Tex. Gen. Laws 1965) (codified at Tex. Health & Safety Code Ann. § 361.114 (West Supp. 2003)). SEM faced a substantial statutory and regulatory hurdle in obtaining its permit.

The federal government has also placed substantial limitations on licenses for salt-dome hazardous waste disposal. RCRA, the federal omnibus statute regarding hazardous waste disposal, provides strict limitations on the licensing of salt domes for hazardous waste disposal. RCRA's provisions serve as minimum regulations; the states are generally empowered to adopt more strict regulations regarding hazardous waste disposal. See 42 U.S.C.A. § 6929.

If approved, SEM's program would have been the first use of salt-dome caverns to store hazardous waste in Texas. Salt-dome formations are mounds or plugs of salt buried in the earth's upper strata. They occur in areas where the soil is relatively porous and prone to groundwater contamination; sometimes they contain natural deposits of oil and natural gas. One method for exploiting salt domes for industrial use is "solution mining." A borehole is drilled deep into the salt, and water is pumped in to dissolve a portion of the salt. When the solution is extracted, a cavern remains inside the salt deposit. This method is traditionally used for storing reserves of natural gas and oil. Experience with the storage of fossil fuels suggests that such solution-mined caverns are not stable. They tend gradually to close because the salt itself tends to move. This movement can cause the cavern walls to crack, allowing whatever is contained inside to leach out into the surrounding area. Because of this danger, both the federal and state governments have created statutes carefully limiting any proposed use of solution-mined salt-dome caverns to dispose of hazardous wastes.

This Court has twice decided cases dealing with applications for this type of disposal program. Hunter Indus. Facilities v. Texas Nat. Res. Conservation Comm'n, 910 S.W.2d 96 (Tex. App.--Austin 1995, writ denied) (upholding Commission's rejection of applications to dispose of non-liquid hazardous waste in solution-mined salt domes); United Res. Recovery v. Texas Water Comm'n, 815 S.W.2d 797 (Tex. App.--Austin 1991, pet. denied) (upholding Commission's rejection of plan to dispose of semi-solid hazardous waste in salt domes). The potential dangers involved in salt-dome disposal are considerable; only strict enforcement of federal and state waste-disposal systems can adequately protect the public health. See Hunter, 910 S.W.2d at 101; United Res., 815 S.W.2d at 804 (holding that Water Commission could require stronger showing of salt dome's structural integrity than required by federal guidelines).

In 1999, the Texas Legislature banned the disposal of hazardous waste, solid or liquid, in solution-mined salt domes or sulphur mines. (2) Accordingly, the Commission issued a letter to SEM indicating that it was no longer possible to grant a permit for salt-dome hazardous waste disposal. The Commission requested that SEM revise its application to remove any plans to dispose of hazardous waste in salt domes. SEM chose not to amend its applications; instead, SEM brought this declaratory judgment action against the Commission to establish that the Texas statute was preempted by the applicable federal statute, RCRA.

SEM moved for summary judgment, contending that section 361.114 is preempted because it conflicts with RCRA's stated object and purpose. The Commission and the City of Mont Belvieu (3) both filed cross-motions for summary judgment against SEM on the ground that section 361.114 did not conflict with the object and purpose of RCRA. The trial court granted the Commission's motion, held that its action on the Commission's motion impliedly disposed of any issues raised in Mont Belvieu's motion, and denied SEM's motion. SEM now appeals, arguing that the statute is, as a matter of law, preempted by federal law.

SEM argues that section 361.114 is preempted because, by specifically addressing salt domes in RCRA, Congress has mandated that they remain a potential means of disposing of hazardous waste in any waste disposal regime promulgated by the federal Environmental Protection Agency or an authorized state such as Texas.

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Secured Environmental Management, Inc. v. Texas Natural Resource Conservation Commission, Jeffrey Saitas, and the City of Mont Belvieu, Counsel Stack Legal Research, https://law.counselstack.com/opinion/secured-environmental-management-inc-v-texas-natur-texapp-2002.