United States v. W.R. Grace & Co.

134 F. Supp. 2d 1182, 31 Envtl. L. Rep. (Envtl. Law Inst.) 20559, 52 ERC (BNA) 1245, 2001 U.S. Dist. LEXIS 4824, 2001 WL 262454
CourtDistrict Court, D. Montana
DecidedMarch 9, 2001
DocketCV 00-167-M-DWM
StatusPublished
Cited by1 cases

This text of 134 F. Supp. 2d 1182 (United States v. W.R. Grace & Co.) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. W.R. Grace & Co., 134 F. Supp. 2d 1182, 31 Envtl. L. Rep. (Envtl. Law Inst.) 20559, 52 ERC (BNA) 1245, 2001 U.S. Dist. LEXIS 4824, 2001 WL 262454 (D. Mont. 2001).

Opinion

ORDER

MOLLOY, Chief Judge.

I. Procedural Background

On September 14, 2000, the United States Department of Justice, acting on behalf of the Environmental Protection Agency (“EPA”), filed a complaint and moved for an Order permitting it immediate access to properties in Libby, Montana. The properties are owned and/or *1183 controlled by W.R. Grace & Company and Kootenai Development Corporation. 1 The Court scheduled a hearing for September 21, 2000, in order to give Defendants an opportunity to respond. On September 20, 2000, that hearing was vacated, because the HPA had not yet served the complaint. On October 2, 2000, Defendants responded to the EPA’s motion. On the same date, Defendants filed a motion for court-ordered mediation. The EPA responded on October 16, 2000.

After a hearing on December 20, 2000, 2 I granted Defendants’ motion for court-ordered mediation. The mediation was unsuccessful.

II. Factual Background

The EPA seeks access to “two properties,” or three sites owned and/or controlled by Defendants, in advancement of its investigation and formulation of response actions to redress asbestos contamination that it believes has occurred at the vermiculite Mine and Screening Plant in Libby. Before Grace ceased operations in 1990, Libby supplied about 80% of the world’s supply of vermiculite. See EPA Ex. 1, Attachment 1 (“Action Memorandum”) at 3. Ore was strip mined, dry-milled at the mine to remove extraneous materials, and then trucked down Rainy Creek Road to the Screening Plant. There it was separated into five size ranges for use in various products, such as insulation, construction materials, soil conditioner, and fertilizer and other agricultural chemicals. See Action Memorandum at 2. Throughout this process, asbestos fibers were distributed through the air, primarily in the form of dust. Chronic exposure to such fibers can result in asbestosis, mesothelioma, or lung cancer. Despite under-reporting, EPA tests have detected significant amounts of amphibole asbestos both in ambient air samples and in soil samples taken in and around Libby. 3

The present motion concerns three sites that once were crucial to Grace’s operations in Libby. 4 The properties now belong to the Kootenai Development Corporation. The first, the “Mine Site,” comprises about 3600 acres seven miles northeast of Libby. A mining permit issued by the Montana Department of Environmental Quality applied to roughly 1200 acres of the Mine Site. Reclamation activities have yet to be completed with respect to approximately 120 of these acres. 5 The second, the “Kootenai Flyway,” is located between Highway 37 and the Kootenai River. The Flyway is adjacent to and upstream from the Screening Plant. 6 See PI. Fig. 4 (running from center to lower center-right). A conveyor *1184 belt connected the Screening Plant to a third site, “the Bluffs,” which lie across the River from the Screening Plant. The Bluffs comprise 42 acres and contain a quarter-acre railroad loading area and two stockpiling areas, each covering one-half to one acre. The Kootenai Development Corporation acquired each of these properties — at least the portions at issue here — from Grace.

The United States refers to the Flyway and the Bluffs together as “the Screening Plant parcels.” They request access to “two properties,” i.e., the Mine Site and “the Screening Plant parcels.” The Screening Plant itself is currently owned by Mel and Lerah Parker, who operate a plant nursery and reside on the site. 7 To preserve the Defendants’ greater precision, this Order will refer to the properties in question as the Mine Site, the Flyway, and the Bluffs.

The EPA began to negotiate with the Kootenai Development Corporation in November, 1999, to obtain access to its properties for investigation and cleanup. Mark Owens, then president and majority shareholder of the Corporation, granted access to the Mine Site for soil sampling and analysis and other investigatory activities on several occasions. It is not clear whether he granted access to the Flyway and the Bluffs. Compare Def.Ex. J, at 2, ¶ 3 (“I understood the access to the Mine Site was for — sampling and analytic activities.”), with id. ¶¶ 3, 4 (discussing access to “KDC properties”). The Montana Department of Environmental Quality and representatives of Grace frequently accompanied the EPA in its visits to the Corporation’s properties.

Although Owens did not agree to allow the Corporation’s property to be used for waste disposal or other response activities, he discussed possible disposal locations with the EPA. The EPA informed Owens that it would eventually investigate the Mine Site and that recovery costs “could run into the millions.” Def.Ex. J, ¶ 7. The EPA also told Owens that it expected to look elsewhere, presumably to Grace, to recover those costs. An EPA attorney, Matt Cohen, discussed with Owens an arrangement whereby the EPA would release the Corporation from liability and give it a covenant not to sue in exchange for use of the Mine as a disposal site and a 25% share in any amounts realized on the Corporation’s sale of its properties. Defendants think this offer was “an odd twist.” Def.Br. at 4.

On July 14, 2000, Grace became the majority shareholder of the Kootenai Development Corporation. On July 18, Grace notified the EPA that any previous, unwritten access authorizations given to the agency by Kootenai Development would not be honored. On September 1, after several attempts by the parties to reach an agreement, Kootenai Development gave the EPA a “Consent for Access to Property,” limiting the EPA’s access to investigatory activities at the Mine Site. In that Consent, Kootenai apparently did not give the EPA access to the Flyway or the Bluffs. Kootenai refused to authorize the EPA to take any response actions or to dispose of any hazardous materials at the Mine Site.

The EPA has presumably continued to conduct investigatory activities at the sites in question, but it brought the present action in order to obtain access for response actions, possibly including disposal.

III. Analysis

To prevail on its motion for immediate access, the United States must establish five facts or legal conclusions:

*1185 (1) The entry the EPA seeks is authorized by 42 U.S.C. § 9604(e)(2), (3), or (4).
(2) The EPA’s right of entry has been obstructed by the Defendants. Id. § 9604(e)(5)(A) and (B)(i).

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Related

United States v. Grace
455 F. Supp. 2d 1122 (D. Montana, 2006)

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Bluebook (online)
134 F. Supp. 2d 1182, 31 Envtl. L. Rep. (Envtl. Law Inst.) 20559, 52 ERC (BNA) 1245, 2001 U.S. Dist. LEXIS 4824, 2001 WL 262454, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-wr-grace-co-mtd-2001.