State of New Hampshire v. Exxon Mobil Corporation & a.

168 N.H. 211
CourtSupreme Court of New Hampshire
DecidedOctober 2, 2015
Docket2013-0591 and 2013-0668
StatusPublished
Cited by25 cases

This text of 168 N.H. 211 (State of New Hampshire v. Exxon Mobil Corporation & a.) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State of New Hampshire v. Exxon Mobil Corporation & a., 168 N.H. 211 (N.H. 2015).

Opinion

DALIANIS, C.J.

The defendants, Exxon Mobil Corporation and Exxon-Mobil Oil Corporation (collectively, either Exxon or ExxonMobil), appeal-from a jury verdict awarding approximately $236 million in damages due to groundwater contamination to the plaintiff, the State of New Hampshire, after a trial in Superior Court {Fauver, J.). The State cross-appeals from the trial court’s order imposing a trust upon approximately $195 million of the damages award. We affirm the trial court’s rulings on the merits and reverse its imposition of a trust.

I. Background

In 1990, Congress amended the Federal Clean Air Act to require the use of an “oxygenate” in gasoline in areas not meeting certain national air quality standards. See 42 U.S.C. § 7545(k) (Supp. 1991) (amended 2005, 2007). An oxygenate is a substance used to reduce gasoline emissions. See Oxygenated Fuels Ass’n Inc. v. Davis, 331 F.3d 665, 666 (9th Cir.2003). The amendment did not mandate the use of any particular oxygenate; it simply required that “[t]he oxygen content of the gasoline shall equal or exceed 2.0 percent by weight.” 42 U.S.C. § 7545(k)(2)(B). To implement the requirement, the Environmental Protection Agency (EPA) launched the Reformulated Gasoline Program (RFG Program), which required gasoline contain *219 ing an oxygenate of the manufacturer’s choice. See 40 C.F.R. § 80.46(g)(9)(i) (2000). Methyl tertiary butyl ether (MTBE) was one among several possible oxygenates. Id. MTBE is a gasoline additive that increases the octane levels of fuels. Metropolitan areas with significant concentrations of ambient ozone were required to use reformulated gasoline. See 42 U.S.C. § 7545(k). Other areas, like New Hampshire, could opt in to the program to receive credit toward mandatory emissions reduction requirements. See 42 U.S.C. § 7545(k)(6)(A).

New Hampshire joined the RFG Program in 1991, with respect to the State’s four southern-most counties, effective January 1, 1995. Between 1995 and 2006, gasoline with MTBE was sold throughout the State. In 1997, employees at the New Hampshire Department of Environmental Services (DES) became aware that MTBE could pose increased risks to groundwater. In 1998, studies from Maine and California raised concerns about MTBE. In 1999, DES adopted regulations setting a maximum contaminant level for MTBE in drinking water and groundwater at 13 parts per billion (ppb).

In 2000, the EPA advised:

MTBE is capable of traveling through soil rapidly, is very soluble in water ... and is highly resistant to biodegradation .... MTBE that enters groundwater moves at nearly the same velocity as the groundwater itself. As a result, it often travels farther than other gasoline constituents, making it more likely to impact public and private drinking water wells. Due to its affinity for water and its tendency to form large contamination plumes in groundwater, and because MTBE is highly resistant to biodegradation and remediation, gasoline releases with MTBE can be substantially more difficult and costly to remediate than gasoline releases that do not contain MTBE.

Advance Notice of Intent to Initiate Rulemaking under the Toxic Substance Control Act to Eliminate or Limit the Use of MTBE as a Fuel Additive in Gasoline, 65 Fed. Reg. 16094, 16097 (Mar. 24, 2000).

In 2001, the Governor petitioned the EPA to allow the State to opt out of the RFG Program, but did not receive a reply until 2004. See Removal of the Reformulated Gasoline Program From Four Counties in New Hampshire, 69 Fed. Reg. 4903 (Feb. 2, 2004). In 2004, the legislature enacted legislation banning MTBE gasoline effective in 2007. See RSA 146-G:12 (2005) (repealed 2015). In 2005, Congress eliminated the oxygenate requirement and enacted a renewable fuels mandate to increase ethanol usage. See Energy Policy Act of 2005, Pub. L. No. 109-58, §§ 1501, 1504, 119 Stat. 594, 1067, 1076 (2005).

*220 In 2008, New Hampshire sued several gasoline suppliers, refiners, and chemical manufacturers seeking damages for groundwater contamination allegedly caused by MTBE. Before trial, all defendants except Exxon settled with the State. After almost ten years of litigation, the case went to trial in 2013 on three causes of action: negligence; strict liability — design defect; and strict liability — failure to warn. After an approximately three-month trial, the jury found in favor of the State on all of its claims. The jury rejected Exxon’s defenses that “in designing its MTBE gasoline, it complied with the state of the art”; that “the hazards posed by the use of MTBE in gasoline were obvious, or were known and recognized by the State”; and that Exxon “provided distributors with adequate warnings of the hazards of MTBE gasoline.” The jury also found that Exxon failed to prove that “the actions of someone other than the State or ExxonMobil (which were not reasonably foreseeable to ExxonMobil) were the sole cause of the State’s harm,” that “the State committed misconduct that contributed to its harm,” or that some or all of Exxon’s fault should be allocated to certain nonparties.

The jury awarded total damages in the amount of $816,768,018. These damages included: (a) $142,120,005 for past cleanup costs; (b) $218,219,948 to assess and clean up 228 high-risk sites; (c) $305,821,080 for sampling drinking water wells; and (d) $150,607,035 for treating drinking water wells contaminated with MTBE at or above the maximum contaminant level. The jury found that Exxon’s market share for gasoline in New Hampshire during the applicable time period was 28.94%. Accordingly, the trial court entered an amended verdict of $236,372,644 against Exxon. The trial court subsequently awarded the State prejudgnient interest in accordance with RSA 524:l-b (2007).

On appeal, Exxon contends that: (1) the State’s suit should have been dismissed on the grounds of separation of powers and due process; (2) the suit should have been dismissed due to waiver; (3) the State’s claims are preempted by the 1990 amendments to the Federal Clean Air Act; (4) the State failed to establish that Exxon departed from the applicable standard of care; (5) Exxon did not have a duty to warn the State; (6) market share liability is not an acceptable theory of recovery; (7) the State should not have been permitted to rely upon aggregate statistical evidence; (8) Exxon was unfairly prejudiced in its ability to present evidence of fault on the part of other nonparties; (9) the trial court erred in deciding the State had parens patriae standing; (10) the State’s damages claims for future well impacts are not ripe; and (11) the trial court erred in awarding prejudgment interest on future costs.

*221

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

Related

Contoocook Valley Sch. Dist. v. State
2025 N.H. 29 (Supreme Court of New Hampshire, 2025)
Medeiros v. Town of Rindge
D. New Hampshire, 2025
Hardy v. Chester Arms, LLC
2024 N.H. 5 (Supreme Court of New Hampshire, 2024)
Simone, Jr. v. Monaco
D. New Hampshire, 2022
Moore v. Atrium Medical Corp
D. New Hampshire, 2019
James M. Virgin v. Fireworks of Tilton, LLC & a.
Supreme Court of New Hampshire, 2019
Fred S. Teeboom v. City of Nashua Daniel Moriarty v.
213 A.3d 877 (Supreme Court of New Hampshire, 2019)
Patrick Short, et al. v. Civ. Amerada Hess Corp. et al.
2019 DNH 062 (D. New Hampshire, 2019)
State v. Priceline.com, Incorporated n/k/a The Priceline Group, Inc. & a.
206 A.3d 333 (Supreme Court of New Hampshire, 2019)
Natalie Anderson v. Adam Robitaille
205 A.3d 1105 (Supreme Court of New Hampshire, 2019)
Rhode Island v. Atl. Richfield Co.
357 F. Supp. 3d 129 (D. Rhode Island, 2018)
Maryland v. Exxon Mobil Corp.
352 F. Supp. 3d 435 (D. Maryland, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
168 N.H. 211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-new-hampshire-v-exxon-mobil-corporation-a-nh-2015.