Texas Commission on Environmental Quality v. Exxon Mobil Corporation ExxonMobil Oil Corporation Pennzoil-Quaker State Company And Shell Oil Company

504 S.W.3d 532, 2016 Tex. App. LEXIS 11766, 2016 WL 6575230
Court of Appeals of Texas·Decided October 31, 2016·No. NO. 03-14-00667-CV·Published·Cited by 3 cases

Opinion

OPINION

Cindy Olson Bourland, Justice

We withdraw the opinion and judgment dated April 8, 2016, and substitute the following opinion and judgment in their place. We deny appellants’ motion for rehearing.

In this case of first impression, the Texas Commission on Environmental Quality contends that the two. types of Superfund orders it is empowered to issue are mutually-exclusive, meaning that one order cannot be issued under both ordering provisions. The Commission further contends that the Superfund order at issue here is an order issued under Section 361.188 of the Solid Waste Disposal Act and that the order therefore is governed by the substantial-evidence standard of review found in Section 361.321. See generally Tex. Health & Safety Code §§ 861.001-.966 (“Solid Waste Disposal Act” or “Act”). The pending case arose after the Commission issued an administrative order related.to cleanup of the Voda Petroleum State Superfund Site (“Voda Order”). The Commission appeals from a trial court’s order denying its plea to the jurisdiction in a suit filed by appellees Exxon Mobil Corporation, ExxonMobil Oil Corporation, Pennzoil-Quaker State Company, and Shell Oil Company (collectively, “ExxonMobil and Shell”) challenging the Voda Order. On appeal, the Commission asserts, that because the supreme court in City of Waco conducted a substantial-evidence review in the absence of a contested-case or adjudicative hearing, this Court should reverse the trial court’s order denying the Commission’s plea to the jurisdiction and remand the case with a finding that the courts should review the Voda Order only under the substantial-evidence standard provided in Section 361.321 of the Act, not the preponderance-of-evidence standard provided in Section 361.322. 1 See Texas Comm’n on Envt’l Quality v. City of Waco, 413 S.W.3d 409 (Tex. 2013). Specifically, in three issues, the Commission contends that (1) the Act establishes two separate types of Superfund orders found in Sections 361.188 and 361.272 with distinct waivers of immunity found in Sections 361.321 and Section 361.322, respectively; (2) the Commission issued the Voda Order *535 only under Section 361.188 and therefore it is reviewable only under Section 361.321; and (3) courts lack subject-matter jurisdiction to review the Voda Order under any section other than Section 361.321. Because we conclude that Section 361.322 applies to administrative orders issued by the Commission under Section 361.188, we will affirm.

STATUTORY FRAMEWORK

A brief overview of Superfund legislation will give context to our analysis of the two types of administrative orders at issue. The Solid Waste Disposal Act “is our state counterpart to. two • federal environmental statutes: the Resource Conservation and Recovery Act (‘RCRA’), 42 U.S.C. §§ 6901-6992, and the Comprehensive Environmental Response, Compensation, and Liability Act (‘CERCLA’), 42 U.S.C. §§ 9601-9675.” R.R. Street & Co. v. Pilgrim Enters., 166 S.W.3d 232, 238 (Tex. 2005). RCRA primarily regulates “on-going treatment, storage, and disposal of solid and hazardous wastes.” B.F. Goodrich Co. v. Murtha, 958 F.2d 1192, 1201 (2d Cir.1992). CERCLA, on the other hand, is a remedial statute whose purpose is to facilitate a prompt response to a release or substantial threat of a release of hazardous substances into the environment, to provide broad authority for the cleanup of hazardous-substance sites, and to ensure that those responsible for the hazardous substances bear the cost of their actions. United States v. Alcan Aluminum Corp., 964 F.2d 252, 258 (3d Cir.1992). Specifically, it allows the government to clean up contaminated sites using the Hazardous Substance Superfund, a trust, fund, see 42 U.S.C. § 9601(11), and then recover costs from those parties who benefitted from the wastes that caused' the harm, see OHM Remediation Servs. v. Evans Cooperage Co., 116 F.3d 1574, 1578 (5th Cir. 1997). CERCLA creates a broad liability scheme that “extends liability all the way down the causal chain, > from those who generate waste through those who dispose of it” and imposes strict liability that is joint and several when the harm is indivisible. Id. at 1578-79.

The Texas Legislature enacted the Solid Waste Disposal Act “to safeguard the health, welfare, and physical property of the people and to protect the environment by controlling the management of solid waste, including accounting for hazardous waste that is generated.” Tex. Health & Safety Code § 361.002(a); see also R.R. Street, 166 S.W.3d at 238. The Act originally only regulated the collection, handling, storage, and disposal of solid wastes through a permitting program. Solid Waste Disposal Act, 61st Leg., R.S., ch. 405, 1969 Tex. Gen. Laws 1320 (“original Act”), repealed and recodified by Act of May 18, 1989, 71st Leg., R.S., ch. 678, 1989 Tex. Gen. Laws 2230, 2612-64, The original Act authorized the responsible agencies to issue permits governing the operation of and maintenance of solid-waste disposal sites and to establish minimum standards for the management and control of solid waste. Original Act at 1322-23. While the original Act imposed civil penalties for entities that violated its provisions and allowed any “person affected by any ruling, order, decision, or other act of the department or the board” to “appeal by filing a petition in the district court of Travis County,” see original Act at 1326-28, it did not authorize the issuance of administrative orders like the Voda Order. The original Act did not empower the State to clean up contaminated sites or to order the persons responsible for the contamination to pay the cost of a cleanup.

After CERCLA’s enactment, the Legislature amended the Act to create the State’s own Superfund program within the *536 existing solid-waste permitting statute. Act of May 27, 1985, 69th Leg., R.S., ch. 566, 1985 Tex. Gen. Laws 2166-83, repealed and recodified by Act of May 18, 1989, 71st Leg., R.S., ch. 678, 1989 Tex. Gen. Laws 2230, 2612-64. The current Act allows the State to issue two different types of administrative orders, giving it a broader reach than CERCLA. One type of administrative order concerns hazardous substances only (“188 order”), while the other applies to solid waste, a category that includes but is not limited to hazardous substances (“272 order”). Tex. Health & Safety Code §§ 361.188, .272; see also id.

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Texas Commission on Environmental Quality v. Exxon Mobil Corporation ExxonMobil Oil Corporation Pennzoil-Quaker State Company And Shell Oil Company, 504 S.W.3d 532, 2016 Tex. App. LEXIS 11766, 2016 WL 6575230 (Tex. Ct. App. 2016).

504 S.W.3d 532 (Texas Commission on Environmental Quality v. Exxon Mobil Corporation ExxonMobil Oil Corporation Pennzoil-Quaker State Company And Shell Oil Company) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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