State Ex Rel. Department of Environmental Quality v. BNSF Railway Co.

2010 MT 267, 246 P.3d 1037, 358 Mont. 368, 2010 Mont. LEXIS 440
CourtMontana Supreme Court
DecidedDecember 21, 2010
DocketDA 09-0510
StatusPublished
Cited by3 cases

This text of 2010 MT 267 (State Ex Rel. Department of Environmental Quality v. BNSF Railway Co.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Department of Environmental Quality v. BNSF Railway Co., 2010 MT 267, 246 P.3d 1037, 358 Mont. 368, 2010 Mont. LEXIS 440 (Mo. 2010).

Opinion

JUSTICE WHEAT

delivered the Opinion of the Court.

¶1 The Montana Department of Environmental Quality (DEQ) brought suit under Montana’s Comprehensive Environmental Cleanup and Responsibility Act (CECRA), seeking to compel BNSF Railway Company (BNSF) to abate contamination at three former industrial sites. The First Judicial District Court, Lewis and Clark County, found BNSF jointly and severally liable for contamination as an owner, past owner and operator, and arranger under CECRA. The court ordered BNSF to abate the contamination but did not order that abatement occur pursuant to DEQ’s Record of Decision (ROD). DEQ appeals and BNSF cross-appeals. We affirm.

¶2 We review the following issues on direct appeal:

¶3 Whether the District Court erred when it ruled that BNSF is not required to comply with DEQ’s ROD until the ROD is approved by the District Court.

¶4 Whether the District Court erred when it determined that apportionment was a defense under CECRA.

¶5 Whether the District Court erred when it dismissed DEQ’s public nuisance claim.

¶6 Whether the District Court abused its discretion when it allowed Pat Keim to testify as an expert.

¶7 For reasons discussed below, we do not reach the merits of the second and fourth issues raised by DEQ.

¶8 We restate and review the following issues on cross-appeal:

¶9 Whether the District Court erred when it concluded that BNSF was liable for contamination as an arranger.

¶10 Whether the District Court erred by allowing DEQ to pursue both administrative and judicial remedies under CECRA.

¶11 Whether the District Court abused its discretion when it approved a consent decree entered into by other stakeholders.

¶12 Whether the District Court erred by failing to reduce BNSF’s liability after other defendants had settled.

FACTUAL AND PROCEDURAL BACKGROUND

¶13 This case involves three adjoining facilities listed as state Superfund sites under §75-10-704, MCA: 1) the Kalispell Pole and Timber (KPT) site, a former wood treatment plant; 2) the Reliance Refining Company (Reliance) site, a former crude oil refinery; and 3) the Yale Corporation site, a former crude oil refinery and petroleum *371 storage site. These sites are located near the Stillwater River north of Kalispell. The first two sites are the subject of this appeal.

¶14 BNSF and its predecessors leased property to KPT from 1945 to 1990. KPT used the property to treat wood poles. As a result of its operations, KPT contaminated the groundwater and soil with pentachlorophenol (PCP), oils, dioxins, and furans. BNSF transported these materials to and from the KPT site.

¶15 The Reliance site is adjacent to and located to the east of the KPT site. The facility was used by various companies over the course of forty years to refine crude oil into gasoline, kerosene, and diesel. BNSF transported petroleum products into and out of the site. Some BNSF railroad cars arrived at the Reliance site ‘leaking badly.” Refinery workers occasionally “got a soaking” when unloading crude oil from BNSF cars. Moreover, when shipments of crude oil arrived and the holding tanks were full, the crude oil was dumped onto the ground in pools on BNSF property in the area. The District Court found that BNSF had been involved in dumping petroleum products onto the surface of the earth. The Reliance site has been further contaminated by PCP and petroleum products from the KPT site.

¶16 DEQ filed suit against seven defendants, including BNSF, in 2004 to require the defendants to abate the contamination at all three facilities, to recover past and future remedial action costs, and to obtain a declaratory ruling. DEQ asserted various statutory causes of action under CECRA and also raised several common law causes of action. DEQ subsequently entered into consent decrees with the other defendants, which the District Court approved.

¶17 DEQ eventually obtained two CECRA abatement orders under §75-10-711(8), MCA, that required BNSF to abate “the imminent and substantial endangerment to the public health, welfare, and safety, and the environment.” The first abatement order was issued after the District Court had granted summary judgment to DEQ on the issue of BNSF’s liability for the KPT site. The second abatement order was issued after a bench trial on BNSF’s liability for the Reliance site. The court ultimately determined that BNSF was jointly and severally hable for contamination at the KPT and Reliance sites. The District Court combined these two orders into a Final Unified Abatement Order.

¶18 DEQ issued its ROD on June 30,2008. The ROD sets forth DEQ’s plan to abate the contamination. The ROD accounts for the many complicated factors that DEQ is required to consider pursuant to §75-10-721, MCA. In essence, the ROD is the product of a lengthy study and review process that requires on-site investigations, evaluations of *372 field data, determinations of appropriate cleanup levels, feasibility studies, and public comment. The substance of the ROD is not subject to review on appeal in this case.

¶19 BNSF appealed the ROD in another district court. BNSF contends that DEQ acted arbitrarily and capriciously in issuing its decision. At the time the District Court issued its final order in this case, however, BNSF’s appeal of the ROD was still pending.

¶20 The District Court observed that “the ROD is a highly technical document that will provide assistance to BNSF and DEQ in complying with their abatement responsibilities.”The court noted that, on the one hand, ‘it would be unfair to impose the ROD on BNSF when in fact parts or all of the ROD may ultimately change,” and, on the other hand, “the ROD will provide the parties with valuable technical guidance in complying with the requirements of abatement.”

¶21 The District Court ultimately concluded that ‘it would be unfair to BNSF to require it to comply with the ROD since it was never presented prior to this Court’s Order and is currently on appeal.” Although the court stated that it would incorporate the ROD ‘in whatever final form it takes when it is finally approved by a court of competent jurisdiction,” the court determined that “this ruling is the best way to safeguard the interests of both parties.”

¶22 DEQ appeals. BNSF cross-appeals.

STANDARDS OF REVIEW

¶23 We review a district court’s findings of fact for clear error. In re Charles M. Bair Family Trust, 2008 MT 144, ¶ 28, 343 Mont. 138, 183 P.3d 61 (citing Slauson v. Bertelsen Family Trust, 2006 MT 314, ¶ 10, 335 Mont. 43, 151 P.3d 866). We review a district court’s conclusions of law for correctness. Id.

¶24 The parties agree that we should review a decision by a district court to approve a CECRA consent decree for abuse of discretion. We hereby adopt this standard.

DISCUSSION

¶25

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Bluebook (online)
2010 MT 267, 246 P.3d 1037, 358 Mont. 368, 2010 Mont. LEXIS 440, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-department-of-environmental-quality-v-bnsf-railway-co-mont-2010.