United States v. Vineland Chemical Co., Inc.

692 F. Supp. 415, 28 ERC 1789, 19 Envtl. L. Rep. (Envtl. Law Inst.) 20160, 28 ERC (BNA) 1789, 1988 U.S. Dist. LEXIS 8256
CourtDistrict Court, D. New Jersey
DecidedJuly 29, 1988
DocketCiv. A. 86-1936
StatusPublished
Cited by10 cases

This text of 692 F. Supp. 415 (United States v. Vineland Chemical Co., Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Vineland Chemical Co., Inc., 692 F. Supp. 415, 28 ERC 1789, 19 Envtl. L. Rep. (Envtl. Law Inst.) 20160, 28 ERC (BNA) 1789, 1988 U.S. Dist. LEXIS 8256 (D.N.J. 1988).

Opinion

OPINION

GERRY, Chief Judge.

By now this court is quite familiar with the facts of this case. To recapitulate briefly: this is an action under Section 3008(a) and (g) of The Resource Conservation and Recovery Act (RCRA), 42 U.S.C. § 6928(a) and (g), for injunctive relief and civil penalties against The Vineland Chemical Co. (“Vichem”) and its Chief Executive Officer, Arthur Schwerdtle (collectively “defendants”), for violations of RCRA at Vichem’s facility in Vineland, New Jersey. Defendants operate two surface impoundments which are classified as “land disposal facilities”, for hazardous waste 42 U.S.C. § 6924(k), and are subject to the requirements of Section 3005(a) of RCRA, 42 U.S. C. § 6925(a). In August of 1980, defendants, acting pursuant to RCRA’s provisions, notified the Environmental Protection Agency (“EPA”) that they were en *417 gaged in hazardous waste activity. In November, 1980, defendants submitted the first part of a permit application for the authority to continue their hazardous waste activities. The making of this application automatically granted defendants “interim status” to continue their operations pending full review of their application. In January, 1984, defendants submitted the final part of their permit application, although amendments and additions were submitted later.

In early 1984, Congress amended RCRA in one very important way. Believing that many of the statute’s interim status provisions were going unenforced, the Congress provided that all existing hazardous waste land disposal facilities automatically lost interim status (and thus their authorization to operate) unless they certified by November 8, 1985, that they were in compliance with all applicable groundwater monitoring and financial responsibility requirements. See Hazardous and Waste Amendments of 1984, Section 3005(e)(2) of RCRA, 42 U.S.C. § 6925(e)(2), as amended. This provision is called the “loss of interim status” or “LOIS”.

The parties agree that on November 8, 1985 defendants submitted to the EPA a document certifying compliance with groundwater monitoring and incorporating a statement about liability insurance. The EPA determined, however, that the certification failed to comply with the specific requirements of 42 U.S.C. § 6925(e)(2)(B). Consequently, on December 2, 1985, the EPA notified the defendants that their interim status had terminated as a matter of law on November 8, 1985, that they could no longer continue to operate their two RCRA-regulated surface impoundments, that they were required to submit a closure and post-closure plan for the impoundments, and that continued operation could subject them to both civil and criminal penalties.

There seems to be no dispute that defendants did not cease using the surface impoundments after November 8, 1985. See e.g., Defendants’ Response to Plaintiff’s First Set of Interrogatories, No. 10. Instead, in February, 1986, defendants petitioned the Court of Appeals for the Third Circuit, seeking review of the EPA’s determination regarding interim status. In February of last year the circuit issued its opinion, Vineland Chemical Co. v. U.S. Environmental Protection Agency, 810 F.2d 402 (3d Cir.1987), in which it held that defendants failed to satisfy the certification requirements for financial assurance set out in 42 U.S.C. § 6925(e)(2)(B). The court held that there was “no error in the EPA’s decision to terminate interim status in this case”. Id. at 410. This decision is the basis for much of the instant motion.

Before the court at this time is the plaintiff’s motion for summary judgment on liability ^.s to Counts 1 and 4 of the complaint, and to strike or in the alternative for summary judgment on the defendants’ affirmative defenses. We treat with each count and each affirmative defense in turn.

Count I

Count I alleges that despite their loss of interim status defendants continued to treat, store or dispose of hazardous wastes in their two surface impoundments. Complaint II34. The complaint requests civil penalties of $25,000 for each day of violation and injunctive relief to prevent further violations. Because the Court of Appeals has already ruled on the validity of the LOIS determination and because defendants admit using their surface impoundments after November 8, 1985, summary judgment seems clearly appropriate on initial inspection.

But defendants present a very interesting counter-argument. They say: we do not challenge the circuit’s decision, nor do we deny using the impoundment after November 8, 1985. However, we dispute that we are liable for RCRA violations because we dispute that we lost interim status on November 8, 1985. Interim statu?, was lost, defendants say, when the Court of Appeals affirmed the EPA’s decision on February 6, 1987, not before.

The legal basis for this argument is a line of cases beginning with Ex Parte Young, 209 U.S. 123, 28 S.Ct. 441, 52 L.Ed. 714 (1908). The key proposition of law in *418 those cases is that a party has a due process right to contest the validity of an administrative order “without necessarily having to face ruinous penalties if the suit is lost.” Brown & Williamson Tobacco Corp. v. Engman, 521 F.2d 1115, 1119 (2nd Cir.1975), cert. denied, 426 U.S. 911, 96 S.Ct. 2237, 48 L.Ed.2d 837 (1976). Defendants argue that the language and intent of RCRA, as construed by the Court of Appeals, support this as well. Section 6925(e)(2) states that a facility loses interim status on November 8, 1985, “unless the owner or operator of such facility ... (B) certifies compliance with all applicable groundwater monitoring and financial responsibility requirements.” Defendants would have us draw a distinction between those who submit no certification and those whose certification is found to be insufficient. The former, defendants argue, would obviously have lost their interim status on November 8, 1985. The latter have a due process right to dispute the EPA’s determination in court, and cannot be penalized for their decision to exercise that right, defendants contend.

This court finds that the Ex Parte Young line of cases is not applicable in this instance, for several reasons. First, the only decision squarely on point of which the court is aware sides with the plaintiff. In U.S. v. T & S Brass & Bronze Works, Inc., 681 F.Supp. 314 at 321 (D.S.C.1988), the court found that:

Compliance with the [RCRA] statutory deadline was mandatory

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692 F. Supp. 415, 28 ERC 1789, 19 Envtl. L. Rep. (Envtl. Law Inst.) 20160, 28 ERC (BNA) 1789, 1988 U.S. Dist. LEXIS 8256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-vineland-chemical-co-inc-njd-1988.