Union Pacific Railroad v. Reilly Industries, Inc.

981 F. Supp. 1229, 28 Envtl. L. Rep. (Envtl. Law Inst.) 20477, 45 ERC (BNA) 1999, 1997 U.S. Dist. LEXIS 17834, 1997 WL 684875
CourtDistrict Court, D. Minnesota
DecidedNovember 3, 1997
DocketCIV. 4-96-660 DSD/JMM
StatusPublished
Cited by7 cases

This text of 981 F. Supp. 1229 (Union Pacific Railroad v. Reilly Industries, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Union Pacific Railroad v. Reilly Industries, Inc., 981 F. Supp. 1229, 28 Envtl. L. Rep. (Envtl. Law Inst.) 20477, 45 ERC (BNA) 1999, 1997 U.S. Dist. LEXIS 17834, 1997 WL 684875 (mnd 1997).

Opinion

ORDER

DOTY, District Judge.

This matter is before the court on the cross motions of plaintiff and defendant for summary judgment. Based on a review of the file, record and proceedings herein, and for the reasons stated, the court denies plaintiffs motion, and grants in part and denies in part defendant’s motion.

*1231 BACKGROUND

Plaintiff Union Pacific Railroad Company (“Union Pacific”) seeks injunctive and compensatory relief for past and future costs to clean up contamination resulting from the former creosoting operations of Republic Creosoting Company (“Republic”), the predecessor company of defendant Reilly Industries, Inc. (“Reilly”).

Chicago Great Western Railway Company (“Great Western”) owned approximately 23.8 acres of property located near the intersection of Fourth Street Southeast and Oak Street, in Minneapolis, Minnesota. From 1903 until approximately 1919, Great Western leased approximately five acres of the property (“the site”) to Republic. Republic operated a wood creosoting treatment facility at the site. Republic treated wood products, such as paving blocks, railroad ties, and telephone poles, with creosote oil. Creosote is a distillate of coal or wood tar and consists of numerous aromatic hydrocarbons. In 1968, Great Western merged with the Chicago and North Western Railway Company (“CNW”).

In 1987, the Minneapolis Community Development Agency (“MCDA”) entered into an agreement with CNW to conduct tests on CNW’s property to assess potential environmental concerns which could be associated with the purchase of the property. The MCDA was investigating the development of a University Transitway between the Minneapolis and St. Paul campuses of the University of Minnesota. An investigation was conducted and Barr Engineering issued a report entitled “Preliminary Investigation for Proposed Intereampus Transitway” (“Barr Report”). A copy of the Barr Report was sent to Virgil Steinhoff, Manager of Industrial Development at CNW. The Barr Report investigation included collection and analysis from two monitoring wells, two soil borings, and soil gas probes from thirteen locations on the property. In its summary and recommendations, the Barr Report states:

Based on field and laboratory data, a general description of the site can be constructed. Site soils included sands and swamp deposits. Some of the soils were contaminated with wood treating oils. These soils may represent a source area for semi-volatile organic compound concentrations found in the groundwater. The shallow groundwater beneath the site contains low levels of volatile organic compounds. A source area for volatile organic compound contamination of groundwater was not identified. The shallow groundwater in the vicinity of Well W2 also contains semi-volatile compounds at concentrations which exceed state drinking water criteria. The soil at Well W2 may be a source of the semi-volatile compounds reported in the sample collected from Well W2.
If it is decided to move further on this site, we have several recommendations. First, additional work needs to be done to determine both the vertical and horizontal extent of groundwater contamination. At, least, one additional shallow well on the upgradient edge of the property needs to be installed and sampled. This well will also be needed to more accurately define the direction of flow____
Additional soil work is needed to define the extent of contamination around Well 2 and look for other potential sources on the site. Initially, this work should be strictly reconnaissance type borings to make visual OVA determinations. Some samples should be analyzed to provide data necessary to investigate possible treatment technologies for the soil.
Based oh the preliminary data, comparisons can be made to similar sites in order to speculate on the need for and type of remedial action that might be required at the site. Excavation of contaminated soils will likely be required....

Affidavit of Alexandra B. Klass, Ex. 13 at 9.

In 1990, the University of Minnesota negotiated with CNW to purchase the parcel of property. The University’s proposed uses of the property were the construction of a new laboratory building, a hazardous waste management facility, a bus transitway, and parking lots. CNW retained Dahl & Associates, Inc. (“Dahl”), an environmental engineering firm, to investigate the environmental condition of the property. Dahl researched the historical ownership and uses of the property to determine whether any past uses of the property may have impacted the condition of the property. Dahl obtained a 1912 map of the area which depicted the Republic creo *1232 soting facility on the northeast portion of the property. Dahl then conducted a limited sub-surface investigation consisting of five borings in the area of the former Republic plant, ten borings throughout the remainder of the CNW property, and an analysis of soil and groundwater samples collected from the borings. The results of Dahl’s historical and sub-surface investigations were set forth in a “Phase I and Phase II Property Evaluation,” dated June 18,1990. Analysis of the soil and groundwater samples indicated the presence of polynuclear aromatic hydrocarbons (“PAHs”), which are constituents of creosote. Dahl reviewed the Barr Report as part of its investigation. Well 2 from the Barr Report is approximately 400 feet west of the Repub-, lie site.

Following the results of the June 18, 1990 evaluation, Dahl conducted a further investigation to determine the nature and extent of the soil and groundwater creosote contamination. In July 1990, Dahl drilled twelve borings on the Republic site and analyzed samples from the borings. The results of this investigation were included in Dahl’s “Phase II Property Evaluation,” dated August 1, 1990. Semi-volatile organic compounds (“SVOCs”) were detected in the vicinity of the former creosoting facility. The report defined the extent of the contamination:

Soils with creosote odors and containing SVOCs generally associated with creosote were found in the area where storage tanks and settling basins for creosote sludge were formerly located. Soil contamination is found within the depth interval 3-6 feet below ground surface, and the total volume of contaminated soils and overburden is estimated to be not less than 1500 cubic yards.
Groundwater in the vicinity of the former creosoting plant, and to the south and southwest of the plant in the direction of groundwater flow, was found to be contaminated with SVOCs generally associated with creosote above the [recommended allowable limits] for carcinogenic and non-carcinogenic SVOCs. The apparent source of the groundwater contamination is creosote-containing soils associated with the former creosoting plant. W2, which was found to contain SVOCs above the [recommended allowable limits], is the furthest down-gradient sampling point for groundwater contamination. The extent of groundwater contamination in this direction is unknown.

Affidavit of Rodney M. Jasmer, Exh. 4 at UP 13671. The report recommended that CNW notify the Minnesota Pollution Control Agency of the creosote contamination at the site.

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981 F. Supp. 1229, 28 Envtl. L. Rep. (Envtl. Law Inst.) 20477, 45 ERC (BNA) 1999, 1997 U.S. Dist. LEXIS 17834, 1997 WL 684875, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-pacific-railroad-v-reilly-industries-inc-mnd-1997.