United States v. Exxonmobil Corp.

264 F.R.D. 242, 40 Envtl. L. Rep. (Envtl. Law Inst.) 20028, 75 Fed. R. Serv. 3d 1109, 71 ERC (BNA) 1821, 2010 U.S. Dist. LEXIS 3449, 2010 WL 333671
CourtDistrict Court, N.D. West Virginia
DecidedJanuary 15, 2010
DocketCivil Action No. 1:08CV124
StatusPublished
Cited by4 cases

This text of 264 F.R.D. 242 (United States v. Exxonmobil Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Exxonmobil Corp., 264 F.R.D. 242, 40 Envtl. L. Rep. (Envtl. Law Inst.) 20028, 75 Fed. R. Serv. 3d 1109, 71 ERC (BNA) 1821, 2010 U.S. Dist. LEXIS 3449, 2010 WL 333671 (N.D.W. Va. 2010).

Opinion

MEMORANDUM OPINION AND ORDER GRANTING MOTIONS TO INTERVENE OF CBS CORPORATION AND VERTELLUS SPECIALTIES INC. (DKT. NOS. 17 & 55)

IRENE M. KEELEY, District Judge.

Pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), 42 U.S.C. §§ 9601-75, the United States (“the government”) filed this environmental cleanup cost recovery action against Exxonmobil Corporation (“Exxon”) on June 10, 2008. At the time it filed this action, the government also lodged a consent decree with the Court that purported to resolve Exxon’s liability as a potentially responsible party (“PRP”) for cleanup operations at several adjacent industrial sites in Marion County, West Virginia. Following that, on July 10, 2008, the government moved for entry of the consent decree.

The Environmental Protection Agency (“EPA”), which has regulatory responsibility for the administration of CERCLA, has identified Vertellus Specialties Inc. (“Vertellus”) and CBS Corporation (“CBS”) as additional PRPs for these same sites. Based on their status as PRPs, Vertellus and CBS seek leave to intervene in this case to oppose entry of the government’s proposed consent decree with Exxon as both substantively and procedurally unfair. They claim that the consent decree would relieve Exxon of its liability for certain portions of the sites in question, while unfairly exposing Vertellus and CBS to disproportionate liability for the remainder of the cleanup costs, which the government estimates could potentially exceed $24 million.

The government opposes the motions to intervene and contends that neither CBS nor Vertellus has a protectable interest in the subject matter of this litigation. Additionally, it argues that CBS’s motion to intervene is untimely.

The question presented by the motions is whether Vertellus and CBS may intervene as of right under Fed.R.Civ.P. 24(a)(2) and CERCLA, 42 U.S.C. § 9613(i). For the reasons that follow, the Court concludes that, as PRPs, both have significantly protectable interests in the outcome of the present litigation that permit intervention as a matter of right for the limited purpose of challenging the consent decree. The Court therefore GRANTS the motions to intervene subject to the limitations discussed below.

I. Background

This litigation focuses on a body of water referred to by the parties alternatively as Sharon Steel Run or Unnamed Tributary # 1 [244]*244(“the Tributary”), and also the former industrial sites located on either side of the Tributary. On one side of the Tributary lies the Big John’s Salvage Site (“BJS site”), where, between 1923 and 1973, Reilly Tar and Chemical Corporation (“Reilly”), a predecessor to Vertellus, operated a tar refinery plant acquired by Big John’s Salvage, Inc. (“BJS”) in 1973. BJS maintained a salvaging operation for metal, glass and oil on the site until 1997. As part of its operations, BJS obtained waste glass from Westinghouse Electric Corporation, a CBS predecessor, that may have contained mercury and other contaminants. On the other side of the Tributary lies the Fairmont Coke Works Site (“FCW site”) where, from 1920 until 1997, Exxon’s predecessor, Domestic Coke, owned and operated a coke production business at the FCW site that sent coal tar to Reilly for processing on the BJS site.

The government has identified Vertellus, CBS and Exxon as PRPs as to the BJS site. Under the consent decree, in exchange for a payment of $3 million, the government has agreed to reheve Exxon of any and all liability for pollution at the BJS site and in the Tributary,1 with the exception of waste materials still present in the adjacent Monongahela River. Additionally, and of crucial importance to Vertellus and CBS, the terms of the consent decree bar other PRPs from seeking contribution from Exxon.

Both CBS and Vertellus assert that the consent decree unreasonably underestimates Exxon’s liability for the BJS site. They claim that, under CERCLA, Exxon may be responsible as an “arranger” for contamination of the BJS site,2 and thus liable for a greater share of the pollution at that site than the parties currently contemplate under the terms of the proposed consent decree.

II. Discussion

A. CERCLA

CERCLA “imposes retroactive, strict, and joint and several liability upon a broad class of persons whom Congress has deemed ‘responsible’ for hazardous waste contamination.” Christopher D. Man, The Constitutional Rights of NonSettling Potentially Responsible Parties in the Allocation of CERCLA Liability, 27 Envtl. L. 375, 376 (1997)(citing 42 U.S.C. § 9607).

While CERCLA provides that a PRP has the right to pursue a claim for contribution against another person who is liable or potentially liable for pollution at a given site, 42 U.S.C. § 9613(f)(1), it also affords immunity from such claims to a PRP who settles with the EPA. 42 U.S.C § 9613(f)(2). While this latter provision creates added incentives for PRPs to settle with the EPA, it has led many non-settling PRPs to seek intervention under both Fed.R.Civ.P. 24(a)(2) and CERCLA, 42 U.S.C. § 9613(i). Man, supra, at 376. As have Vertellus and CBS in this case, these PRPs generally seek to halt the entry of a consent decree that extinguishes their contribution rights.

B. Intervention as of Right

Fed.R.Civ.P. 24(a)(2) provides:

On timely motion, the court must permit anyone to intervene who: claims an interest relating to the property or transaction that is the subject of the action, and is so situated that disposing of the action may as a practical matter impair or impede the movant’s ability to protect its interest, unless existing parties adequately represent that interest.

CERCLA “provides for intervention in terms nearly identical to those of Fed.R.Civ.P. 24(a)(2);” thus, the test applied to motions to intervene is the same under either statute. Cal. Dep’t of Toxic Substances Control v. Commercial Realty Projects, 309 F.3d 1113 (9th Cir.2002).3 See also United States v. [245]*245Union Elec. Co., 64 F.3d 1152, 1156-57 (8th Cir.1995); United States v. Alcan Aluminum Inc.,

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264 F.R.D. 242, 40 Envtl. L. Rep. (Envtl. Law Inst.) 20028, 75 Fed. R. Serv. 3d 1109, 71 ERC (BNA) 1821, 2010 U.S. Dist. LEXIS 3449, 2010 WL 333671, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-exxonmobil-corp-wvnd-2010.