State of Colorado v. Sunoco, Inc.

337 F.3d 1233, 33 Envtl. L. Rep. (Envtl. Law Inst.) 20251, 56 ERC (BNA) 1978, 2003 U.S. App. LEXIS 15993, 2003 WL 21793950
CourtCourt of Appeals for the Tenth Circuit
DecidedAugust 5, 2003
Docket02-1014
StatusPublished
Cited by34 cases

This text of 337 F.3d 1233 (State of Colorado v. Sunoco, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State of Colorado v. Sunoco, Inc., 337 F.3d 1233, 33 Envtl. L. Rep. (Envtl. Law Inst.) 20251, 56 ERC (BNA) 1978, 2003 U.S. App. LEXIS 15993, 2003 WL 21793950 (10th Cir. 2003).

Opinion

BRISCOE, Circuit Judge.

The State of Colorado (Colorado) appeals from the district court’s grant of summary judgment on statute of limitations grounds in favor of defendants A.O. Smith Corporation (Smith), ASARCO, Inc., Bechtel Corporation, and Sunoco, Inc., on Colorado’s cost recovery claims under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), 42 U.S.C. §§ 9601 et seq. The district court concluded that Colorado failed to bring its claims within the applicable six-year statute of limitations, 42 U.S.C. *1236 § 9613(g)(2)(B). We exercise jurisdiction pursuant to 28 U.S.C. § 1291 and reverse and remand for further proceedings.

I.

This case concerns the cleanup of the Summitville Mine Site, an abandoned 550-acre gold mine located in the mountains of southern Colorado. For much of its history, the Site was mined using “conventional underground mining techniques.” App. at 171. Because “these underground workings had a tendency to fill with groundwater during certain seasons, mine adit facilities [i.e., horizontal openings] were installed to drain the workings.” Id. Two of those adit facilities are at issue here. The Reynolds Adit, “driven at one of the lowest topographic elevations” of the Site, “provide[d] one of the highest gradients for groundwater flow” and “has been releasing metal-contaminated, acidic water” into the environment since approximately 1906. Id. At some point in time, a water treatment facility was installed to deal with the contaminated water released by the Reynolds Adit. “The Chandler Adit was also driven to access the workings .., and was located 2,500 feet west of the Reynolds Adit portal at an elevation of 11,500 feet, 180 feet higher than the Reynolds Adit portal.” Id.

During the final'years of the Site’s operation (1986 to 1992), open-pit, heap leach mining techniques were utilized. With these techniques, gold ore was mined from the mountain, crushed, and heaped in a pile on a specially prepared and lined pad known as a “heap leach pad.” Id. at 155. A solution of sodium cyanide was sprayed on and allowed to percolate through the heaped ore to “leach” the gold from the ore. The run-off was pumped from the heap, the gold was recovered, and the solution was renewed and reused on the heap. The heap leach operations produced a substantial amount of contaminated water (i.e., water contaminated with cyanide and toxic metals). To address this problem, two water treatment plants were installed: one to deal with the cyanide and the other to deal with the toxic metals. Apparently, neither plant was completely effective and the treated water could not be released into the environment.

At some point during the heap-leach operations, a leak developed in the liner of the heap leach pad, allowing cyanide solution to leak into the drain system below the pad. Because the cyanide-contaminated water could not be discharged legally into the environment, the mine operator installed a sump system to pump the contaminated water back to the leach pad. The large amount of contaminated water pumped by the operator to the heap leach pile, combined with large amounts of snow and rain water, resulted in the pile becoming a huge pond with millions of gallons of cyanide and metal-polluted water.

In early December 1992, the last operator of the mine, Summitville Consolidated Mining Company, Inc. (SCMCI), filed for Chapter 7 bankruptcy. On December 16, 1992, the State of Colorado and the Environmental Protection Agency (EPA) took control of the Site to prevent a “disastrous release” of contaminated water into the environment due to the likely cessation of water treatment operations by SCMCI. 1 *1237 The EPA’s initial response was aimed primarily at

maintaining site conditions throughout the winter, including prevention of freezing or damage to existing facilities and equipment; preparing for spring runoff; including drawing down the level of water in the Heap Leach Pad to protect against overtopping during spring runoff; operation of the wastewater treatment plants; and improving the quality of water discharged from the facilities.

Id. at 226. As part of these initial steps, the EPA increased the efficiency and capacity of the heap leach pad water treatment systems. On May 31, 1994, the Site was placed on the National Priorities List (NPL), “a list of the most highly contaminated hazardous waste sites in the United States.” Supp.App. at 252. The EPA since has published four Focused Feasibility Studies, issued four Interim Records of Decision, conducted a Sitewide Remedial Investigation and issued a Sitewide Feasibility Study. Actions are ongoing at the Site, and, according to the governments, the final site-wide remedy is still in the planning stages and construction is not set to begin on the final remedy until the summer of 2004.

For purposes of this appeal, only three of the actions at the Site since its takeover are at issue: (1) the plugging of the Chandler adit; (2) the installation of monitoring wells in the Reynolds and Chandler adits; and (3) the construction of the sludge disposal area.

Plugging of the Chandler adit — As previously noted, contaminated water was flowing out of the underground mine workings through the Reynolds adit. At the time the governments took over the Site, a portable water treatment system was being used to treat a portion of that contaminated water. Initially, the EPA modified the water treatment system to increase its treatment capacity but this action did not totally eliminate the discharge of contaminated water. The EPA concluded there were two basic options for dealing with the problem — take no action, leaving the portable water system treatment in place, or install a concrete plug in the adit to block the outflow of contaminated water. The EPA concluded the second alternative was preferable, both from the standpoint of reducing acid mine drainage and from a cost reduction perspective. As part of the process of plugging the Reynolds adit, the EPA decided to simultaneously plug the Chandler adit. Although no contaminated water was being discharged from the Chandler adit, it sat approximately 180 feet above and was hydraulically connected to the Reynolds adit. The EPA was concerned that plugging the Reynolds adit would cause contaminated water in the mine to back up and eventually flow out of the Chandler adit.

Construction of the Reynolds adit plug, consisting of excavating loose rock, drilling numerous radial grout holes, and installing concrete plugs and pipe, began on November 22, 1993, and was completed by January 25, 1994. Construction of the Chandler adit plug began on February 3, 1994, and ended on February 22, 1994. “Once completed, there was an immediate decrease in flow, and an initial 65% decrease in copper loadings from the Site overall.” SuppApp. at 261. “Also, copper loadings directly attributable to the Reynolds Adit decreased by 97%.” Id. The Chandler adit plug was reinforced in November 1994 after leakage occurred as a result of porous or fractured rock surrounding the plug.

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Bluebook (online)
337 F.3d 1233, 33 Envtl. L. Rep. (Envtl. Law Inst.) 20251, 56 ERC (BNA) 1978, 2003 U.S. App. LEXIS 15993, 2003 WL 21793950, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-colorado-v-sunoco-inc-ca10-2003.