USI Properties Corp. v. Environmental Protection Agency

517 F. Supp. 1235, 11 Envtl. L. Rep. (Envtl. Law Inst.) 20971, 16 ERC (BNA) 1408, 1981 U.S. Dist. LEXIS 18066
CourtDistrict Court, D. Puerto Rico
DecidedJuly 14, 1981
DocketCiv. 80-2329
StatusPublished
Cited by1 cases

This text of 517 F. Supp. 1235 (USI Properties Corp. v. Environmental Protection Agency) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
USI Properties Corp. v. Environmental Protection Agency, 517 F. Supp. 1235, 11 Envtl. L. Rep. (Envtl. Law Inst.) 20971, 16 ERC (BNA) 1408, 1981 U.S. Dist. LEXIS 18066 (prd 1981).

Opinion

MEMORANDUM OPINION AND JUDGMENT

CEREZO, District Judge.

On October 11, 1980 the Environmental Protection Agency (EPA) issued a cease and desist order under the authority of Section 309(a)(3) of the Clean Water Act of 1977, 33 United States Code, Section 1319(a)(3) 1 averring that plaintiff USI Properties Corp., owner of a property in Humacao, Puerto Rico known as the Santa Teresa farm, in conjunction with other corporations engaged in a common project to develop the land for residential purposes, was violating Section 301(a) of the Act, 33 United States Code, Section 1311(a) in that without having obtained a permit from the U. S. Army Corps of Engineers they were discharging dredged or fill material into wetlands found within the bounds of the Santa Teresa property and without having a permit from EPA were discharging pollutants into the Frontera Creek and the Caribbean Sea which are navigable waters of the United States. This order was issued after on-site inspections by EPA representatives on October 2 and October 10, 1980 and contains the following pertinent findings of fact:

*1237 “VI
U.S.I. Properties owns approximately 370 acres of land in the El Morillo and Santa Teresa sectors in Humacao. The area in question is located in the east coast of Puerto Rico. It is bordered by State Road No. 3 on the north, by the Caribbean Sea on the south, by the Man-dri Creek on the east, and by privately owned land on the west.
VII
The aforementioned area has been determined by the Puerto Rico Department of Natural Resources and the U.S. Environmental Protection Agency to be navigable waters of the United States and a wetland as saturation of water is the dominant factor determining soil development and the species, both plant and animal, that live in the soil and on its surface. There are a number of lagoons in the area.
VIII
A pump station located in the area is used to drain water out of the lagoons and the Mandri Creek which is discharged into the Frontera Creek and eventually into the Caribbean Sea.
IX
U.S.I. Properties intends to develop the aforementioned property with the ultimate goal of converting the area into a low income housing project.
X
The area has been classified by the National Flood Insurance Program as floodplain. The development planned for the area requires that substantial amounts of fill material be placed prior to the construction of the dwellings.
XIV
In the land clearing, land filling and construction activities, M.D. Construction and A.U. Development will be bulldozing, collecting, gathering and transporting sheared trees, vegetation, soil and leaf litter across the wetlands. They (sic) also be transporting fill material and sand across the wetlands.
XV
An on site inspection conducted on October 2, 1980 by a representative of the U.S. Environmental Protection Agency revealed that a concrete and steel bridge is under construction over the Frontera Creek approximately 0.2 miles from the Caribbean Sea. The bridge foundation and structural supports have been built to withstand heavy loads. The area was found to be a wetland habitat for many species of wildlife. The inspection also revealed that the existing pumps located at the lowest point of the lagoon system, seemed to be ready for operation. The water at the wet well of the pump house was found to be a dark orange appearance from silted material suspended in it.
XVI
An on site inspection conducted on October 10, 1980 by representatives of the U.S. Environmental Protection Agency revealed that the above referred pumps were being operated. As a result of the operation of the pumps, the U.S. Environmental Protection Agency representatives found that a dark green substance was being discharged in the Caño Front-era and eventually in the Caribbean Sea. The pumps were pumping 110,000 gallons of water per minute off the wetland into the Frontera Creek and eventually into the Caribbean Sea.
XVII
The October 10 inspection by U.S. Environmental Protection Agency representatives also revealed land clearing and dredging activities. Fill material and sand were also being transported across the wetland.
*1238 XVIII
In light of the results of EPA’s intensive water quality survey conducted on Caño Frontera on October 24, 1979 which showed high mercury concentrations in the sediment of the Caño Frontera, the USEPA believes that any resuspension of this sediment, likely to be caused by the pumping operations, could result in the uptake of mercury in the food chain creating a health hazard.
XIX
The point source discharge of the cleared and dredged materials by A.U. Development and M.D. Construction into adjacent wetland areas obstructs the flow of the waters of the United States.
XX
The above activities constitute a discharge of dredged materials under the Clean Water Act.
XXI
The pumping operations into the Frontera Creek and the Caribbean Sea constitute a discharge under the Clean Water Act.”

Having found that these activities were conducted without a permit, EPA ordered USI Properties Corp. “to cease any operations, pumping, land clearing, construction or any other activities that will lead to the discharge of pollutants into waters of the United States or to the discharge of dredged or fill material into navigable waters, to wit: the wetlands within the area designated as El Morillo and Santa Teresa in Humacao and lying within the property owned by U.S.I. Properties as described in paragraphs VI and VII above.” On November 7, 1980 U.S.I. Properties Corp. filed an unverified complaint against EPA charging that “the defendant lacks statutory authority to issue the aforementioned order and said order is null and void as the pumping operation is not taking place in waters of the United States, no pollutants are being discharged into waters of the United States as provided in the Clean Water Act, and plaintiff’s property is excluded from the provisions of the Clean Water Act, pursuant to 40 CFR Part 122.4.” Plaintiff invokes federal jurisdiction under the Federal Water Pollution Control Act, 33 United States Code Section 1251, et seq., as amended by the Clean Water Act of 1977, and under the Administrative Procedure Act, 5 United States Code Section 702. This action, however, has not been filed to seek enforcement of the Clean Water Act since plaintiff’s basic contention is that its property is not covered by the Act.

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Bluebook (online)
517 F. Supp. 1235, 11 Envtl. L. Rep. (Envtl. Law Inst.) 20971, 16 ERC (BNA) 1408, 1981 U.S. Dist. LEXIS 18066, Counsel Stack Legal Research, https://law.counselstack.com/opinion/usi-properties-corp-v-environmental-protection-agency-prd-1981.