W.R. Grace & Co. v. United States Environmental Protection Agency

261 F.3d 330, 32 Envtl. L. Rep. (Envtl. Law Inst.) 20093, 52 ERC (BNA) 1993, 2001 U.S. App. LEXIS 18078
CourtCourt of Appeals for the Third Circuit
DecidedAugust 10, 2001
Docket99-5662, 00-3302
StatusPublished
Cited by15 cases

This text of 261 F.3d 330 (W.R. Grace & Co. v. United States Environmental Protection Agency) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
W.R. Grace & Co. v. United States Environmental Protection Agency, 261 F.3d 330, 32 Envtl. L. Rep. (Envtl. Law Inst.) 20093, 52 ERC (BNA) 1993, 2001 U.S. App. LEXIS 18078 (3d Cir. 2001).

Opinions

OPINION OF THE COURT

AMBRO, Circuit Judge.

Two cases are before us. Case No. 99-5662 is a petition for review of a July 29, 1999 order (the “July 29 Order” or “Order”) issued by the United States Environmental Protection Agency (the “EPA”) to W.R. Grace & Co. (“Grace”) pursuant to the emergency provisions of the Safe Drinking Water Act (“SDWA”), 42 U.S.C. § 300i(a). Case No. 00-3302 is also a petition for review, this time of a Statement of Work Grace was required to submit under the EPA’s July 29 Order. The petitions were consolidated by order of this Court on July 6, 2000. For the reasons noted below, we vacate and remand the EPA’s July 29 Order. Thus we need not address the issues raised in the second petition for review.

I. Background Facts

This case involves a water supply hazard at the Dye Water Conditioning Plant (the “Dye Plant” or “Plant”) in Lansing, Michigan. The Dye Plant is one of two water treatment plants owned and operated by the Lansing Board of Water & Light (the “Lansing Board” or “LBW & L”) that supplies drinking water to the City of Lansing. The Dye Plant is designed to operate and treat groundwater (“influent” water) through a disinfection process known as “chloramination,” in which ammonia and chlorine are added to the water to form chloramines that inactivate bacteria.

A plume of ammonia originating at a fertilizer plant owned by Grace entered the Saginaw aquifer from which the Dye Plant draws its water. The ammonia traveled from a smaller aquifer located below the Motor Wheel Disposal Site (but above the Saginaw aquifer) where Grace and other local industries disposed of wastes from their respective plants. On June 10, 1986, the Motor Wheel Disposal Site was placed on a list of hazardous waste sites to be cleaned up pursuant to section 105 of the Comprehensive Environmental Response, Compensation and Liability Act (“CERC-[334]*334LA”), 42 U.S.C. § 9605. Grace joined with Goodyear, Textron, and the Lansing Board in several agreements to engage in long-term study and cleanup of a wide range of chemicals at the Motor Wheel Disposal Site pursuant to CERCLA. However, no agreement was made among these parties to engage in a CERCLA cleanup of the Saginaw aquifer that had become contaminated with excess ammonia originating from the Motor Wheel Disposal Site.

In 1997, the Lansing Board became increasingly concerned about the danger posed by the ammonia plume to its Dye Plant wells located closest to the Motor Wheel Disposal Site. As a precautionary measure, the Lansing Board removed from service ten drinking water wells located closest to the ammonia plume. The loss of these wells constituted approximately 12% of the Dye Plant’s total capacity. Both parties acknowledge that the Lansing Board is able to meet its current drinking water production demands without these ten wells. However, the Lansing Board claims that it may need to replace this lost production capacity in the event of a severe drought or the loss of further wells to contamination from the ammonia plume. As of the date of oral argument in this case, the Lansing Board was monitoring twenty-two drinking water wells for possible ammonia contamination.

On May 4, 1998, the Michigan Department of Environmental Quality notified the Safe Drinking Water Branch of the EPA of its concern that excess ammonia influent to the Dye Plant would cause nitrification that could compromise the Lansing public’s health. The Michigan Department acknowledged that there was “no existing State or Federal Maximum Contaminant Level for ammonia, and no corresponding health effects information for ammonia.”1 Nonetheless, it expressed concern that the ammonia level permitted at the Motor Wheel Disposal Site — 34 milligrams per liter (“mg/1”)- — was a “taste and odor level set for aesthetics only” that would not prevent leaching of ammonia into the Saginaw aquifer at levels that could cause excess nitrification at the Dye Plant. It therefore referred the problem to the EPA’s Safe Drinking Water Branch to consider approaches for cleanup of the Saginaw aquifer with a “stricter clean-up level (stricter than 34 mg/1) for ammonia” pursuant to CERCLA. In a memorandum dated October 5, 1998, the Safe Drinking Water Branch concurred in the Michigan Department’s view that excess ammonia could lead to excess nitrification and microbial growth that could cause noncompliance with a number of Federal and State regulations and pose a threat to the public’s health. The Safe Drinking Water Branch concluded that the 34 mg/1 standard would be insufficient to protect the Lansing public drinking water system and that an appropriate ammonia cleanup standard should be set at 1.75 mg/1.

In a report dated January 20, 1999, an outside consultant hired by the Lansing Board concluded that excess ammonia at the Dye Plant would encourage bacteria growth and increase problems with excess chloramines, nitrates, nitrites, lead, and copper, all of which may threaten the pub-[335]*335lie’s health. The report attacked the 34 mg/1 standard used to clean up the Motor Wheel Disposal Site and urged that a stricter standard be used with respect to the Saginaw aquifer because “[a]ny amount of excess ammonia over existing background levels (0.1-0.5 mg/1 ammonia as nitrogen) will impact the current treatment and operational practices at the Dye [Plant].” The report further noted that if the influent ammonia levels were not kept low or within narrow limits, new processes would have to be developed at the Dye Plant to remove the ammonia completely. These processes would add complexity to the Plant operations, require capital expenditures, and increase operations and maintenance costs.

The Safe Drinking Water Branch later amended its October 5, 1998 memorandum recommending an ammonia cleanup standard for the Saginaw aquifer. It stated that in light of information obtained from meeting with the Lansing Board’s consultant and a review of its report, the Safe Drinking Water Branch would revise its recommendation for the ammonia cleanup standard from 1.75 mg/1 to the more stringent standard of 0.5 mg/1. That cleanup standard was subsequently incorporated into an emergency order issued by the EPA on February 26, 1999, requiring that Grace alone reduce the ammonia levels in the Saginaw aquifer to background levels (about 0.5 mg/1) and replace the drinking water capacity lost by the Lansing Board from shutting down ten of its drinking water wells.

In response to the EPA’s order, Grace proposed forming a technical committee of all interested parties to review the issues and evaluate cooperatively the available options for protecting the operations of the Dye Plant. On April 12, 1999, the EPA agreed to withdraw its first order and to issue a new order based upon the findings of the newly-formed Saginaw Aquifer Technical Evaluation Team (“SATET”), which would include technical representatives from Grace, the EPA, the Lansing Board, and the Michigan Department of Environmental Quality.

SATET was empaneled to evaluate four approaches to protect the public from the health hazards associated with excess ammonia in the Saginaw aquifer. SATET’s mission statement listed those approaches as follows:

Approach

Free access — add to your briefcase to read the full text and ask questions with AI

Related

The Chemours Company FC, LLC v. EPA
109 F.4th 179 (Third Circuit, 2024)
Liquid Labs LLC v. FDA
52 F.4th 533 (Third Circuit, 2022)
SCZESNY v. MURPHY
D. New Jersey, 2022
United States v. COLLINS
W.D. Pennsylvania, 2021
Sierra Club v. EPA
972 F.3d 290 (Third Circuit, 2020)
Varno v. Canfield
664 F. App'x 63 (Second Circuit, 2016)
Tri-Realty Co. v. Ursinus College
124 F. Supp. 3d 418 (E.D. Pennsylvania, 2015)
State of Arizona v. George Anthony Dominguez Jr.
338 P.3d 966 (Court of Appeals of Arizona, 2014)
Kanafani v. Atty Gen USA
99 F. App'x 419 (Third Circuit, 2004)
Yilmaz v. Ashcroft
83 F. App'x 413 (Third Circuit, 2003)
United States v. Union Corp.
259 F. Supp. 2d 356 (E.D. Pennsylvania, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
261 F.3d 330, 32 Envtl. L. Rep. (Envtl. Law Inst.) 20093, 52 ERC (BNA) 1993, 2001 U.S. App. LEXIS 18078, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wr-grace-co-v-united-states-environmental-protection-agency-ca3-2001.