United States v. Aceto Agricultural Chemicals Corp.

699 F. Supp. 1384, 18 Envtl. L. Rep. (Envtl. Law Inst.) 21008, 27 ERC (BNA) 1388, 1988 U.S. Dist. LEXIS 3279, 1988 WL 120790
CourtDistrict Court, S.D. Iowa
DecidedFebruary 26, 1988
DocketCiv. 87-21-W
StatusPublished
Cited by8 cases

This text of 699 F. Supp. 1384 (United States v. Aceto Agricultural Chemicals Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Aceto Agricultural Chemicals Corp., 699 F. Supp. 1384, 18 Envtl. L. Rep. (Envtl. Law Inst.) 21008, 27 ERC (BNA) 1388, 1988 U.S. Dist. LEXIS 3279, 1988 WL 120790 (S.D. Iowa 1988).

Opinion

ORDER

DONALD E. O’BRIEN, Chief Judge.

This matter comes to the Court on motions to dismiss for failure to state a claim filed on behalf of each defendant. These motions challenge the authority of the United States and the State of Iowa to recover the costs of cleaning up a contaminated site of a defunct pesticide formulator through civil actions against the manufacturers who sent active pesticide ingredients to the site for formulation and packaging. The United States and the' State have filed actions under § 107(a)(3) of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), codified at 42 U.S.C. § 9607(a)(3), and § 7003 of the Resource Conservation and Recovery Act (“RCRA”), codified at 42 U.S.C. § 6973. 1 For the following reasons, the Court denies the motions with regard to the CERCLA counts, but grants them with regard to the RCRA counts.

From 1974 until its Chapter 7 liquidation in 1981, Aidex Corporation formulated, packaged and distributed pesticides and herbicides at a site in the Missouri River floodplain near Glenwood, Iowa. At the time of the liquidation, the Aidex site included four metal buildings, an 8,000-gal-lon underground storage tank, two waste burial trenches, the foundation of a liquid formulation building destroyed by fire in 1976, and hundreds of storage drums and tanks containing hazardous wastes and other hazardous substances. According to the United States’ complaint, the 1976 fire and the water used to extinguish it caused various chemicals stored in the building to spill onto the ground and spread over the surface of the site, contaminating the soil. In addition, the storage tank was deteriorating, and chemical wastes were leaking from many of the storage drums.

These conditions attracted the attention of the Environmental Protection Agency, which was empowered under CERCLA with authority to clean up sites in response to imminent and substantial dangers to the public health or welfare created by the release of hazardous substances. See CERCLA, § 104(a), 42 U.S.C. § 9604(a). The State of Iowa’s Department of Natural Resources possesses similar authority under Iowa law. See Iowa Code § 455B.418(l)(c) (1987). Solid and liquid chemical wastes and contaminated debris *1386 were collected and transported to EPA-approved sites for incineration or disposal. Contaminated surface soils were removed from the drum storage area and placed in a storage area constructed on-site. (U.S. Complaint, ¶ 26.) Additional remedial actions were taken in 1986, and future actions may be necessary. “As of November 30, 1986, EPA has expended approximately $10,013,700.00 on these response actions.” (U.S. Complaint, ¶ 27.) As of March 1, 1987, the State of Iowa has incurred expenses of $95,451.00, and is committed by contract with the EPA to pay an additional $780,000.00. (Iowa Complaint at ¶ 7.)

THE CERCLA CLAIMS

To fund the EPA’s response efforts, Congress created the Hazardous Substance Response Trust Fund, better known as the “Superfund”, which is financed through a combination of appropriations, taxes on the manufacture of petroleum products and certain inorganic chemicals, and judgments received through legal actions under § 107 of CERCLA. “CERCLA does not identify expressly the elements of a prima facie case of liability for cleanup costs. Instead, the statute merely lists classes of potentially liable parties [§ 107(a)] and provides three causation-based defenses [§ 107(b) ].” United States v. Bliss, 667 F.Supp. 1298, 1304 (E.D.Mo.1987). Because the defenses are relatively weak, 2 the critical issue in most cases is whether each defendant is a member of one of the following classes of potentially liable parties:

(1) The owner and operator of a vessel or a facility,
(2) Any person who at the time of disposal of any hazardous substance owned or operated any facility at which such hazardous substances were disposed of,
(3) Any person who by contract, agreement, or otherwise arranged for disposal or treatment, or arranged with a transporter for transport for disposal or treatment of hazardous substances owned or possessed by such person, by any other party or entity, at any facility or incineration vessel owned or operated by another party or entity and containing such hazardous substances, and
(4)Any person who accepts or accepted any hazardous substances for transport to disposal or treatment facilities, incineration vessels or sites selected by such person, from which there is a release, or a threatened release which causes the incurrence of response costs, of a hazardous substance[.]

CERCLA, § 107(a), 42 U.S.C. § 9607(a) (emphasis added).

In an ordinary situation, liability under subdivision (a)(3) will extend to generators of hazardous wastes. 3 Generators are typically liable not because they generate wastes, but because they typically arrange for the disposal of wastes they have generated. Bliss, 667 F.Supp. at 1306; Violet v. Picillo, 648 F.Supp. 1283, 1288 (D.R.I.1986); United States v. Ward, 618 F.Supp. 884, 893-94 (E.D.N.C.1985); United States v. Conservation Chemical Co., 619 F.Supp. 162, 190 (W.D.Mo.1985); United States v. Mottolo, 629 F.Supp. 56, 60 (D.N. H.1984).

Generators of wastes seldom operate at the first point in the stream of production; usually other companies operate “upstream” from waste generators, and sell raw materials and unfinished products which are purchased by generators. Because the involvement of upstream producers in the production of wastes ordinarily ends at the point of the sale of raw materials, it could hardly be said that such producers thereby arrange for the disposal of hazardous wastes. Thus, they are not ordinarily liable under § 107(a)(3). Cf. United *1387 States v. Westinghouse, 14 Env.Law Rptr. 20, 483, 20, 484 (S.D.Ind.1983).

Because the pesticides industry is structured in a unique manner, the liability of pesticide manufacturers must be considered separately.

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699 F. Supp. 1384, 18 Envtl. L. Rep. (Envtl. Law Inst.) 21008, 27 ERC (BNA) 1388, 1988 U.S. Dist. LEXIS 3279, 1988 WL 120790, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-aceto-agricultural-chemicals-corp-iasd-1988.