Great Lakes Restoration: An Interactive Map of GLC Work

Great Lakes Commission.jpgThe Great Lakes Commission (GLC) has released a new interactive map of the nearly 1,000 restoration projects being implemented under the Great Lakes Restoration Initiative (GLRI). The interactive map is available on the GLC website. 

It includes map overlays of Congressional districts, and state and county boundaries. The website references restoration projects funded in fiscal years 2010-2012.  It also includes searchable project table.  43 of the GLC projects are in Indiana.

When county or congressional district boundaries are turned on, the map shows what county a project is located in or which Member of Congress represents the district and the percentage of the district that lies within the Great Lakes Basin. The map also shows separate contaminated sediment cleanups implemented under the Great Lakes Legacy Act program.

The website does not include some projects focused on research, monitoring, public education and other broad-scale activities not focused at a specific site. The Commission has also produced state-specific factsheets showcasing how the GLRI is benefiting each of the eight Great Lakes states.

You can find the interactive map here.

Class Status Granted in Soil Solutions Litigation

VIM fire.jpgU.S. District Court Judge Philip Simon of South Bend granted class-action status in the litigation involving the Soil Solutions wood recycling facility in Elkhart.  The litigation was filed by a group of neighbors living around the operation on Elkhart’s west side.  The litigation also involves VIM Recycling, the company that operated the facility before selling it to Soil Solutions in July 2011. 

The neighbors allege that dust and other emissions from the Soil Solutions wood grinding operation pose a nuisance and a health threat.  Soil Solutions grinds waste wood into mulch and animal bedding.  The request for class certification was made in September 2011.  There are more than 1,700 potentially affected individuals near the plant.

The litigation was originally dismissed, but later reinstated through an appeal to the Seventh Circuit Court of Appeals. 

IDEM has also filed its own lawsuit against the plant, alleging that it has improperly accepted waste wood containing glues, resins and other substances.

Key documents are found here: Motion for Class Certification.pdf    Memorandum in Support.pdf   Order Granting Class Certification.pdf

CAFO Applications Pending in Harrison and Jackson Counties

CAFO 1.jpgIDEM has the permit applications and planning and zoning authorities in Harrison and Jackson Counties will grant approval – or not – for the expansion of confined hog operations numbering 4,000 head each.

In Elizabeth, a town in Harrison County, D Livestock, Inc. operates a 4,000 head facility that it seeks to double in capacity.  And roughly 50 miles north, near the Jackson County seat of Brownstown, another farmer hopes to obtain zoning approval and IDEM permitting for a similar operation.  Both are likely to meet stiff opposing, though both are located in rural counties with a significant agricultural component to their economies.

Neighbors of the D Livestock, Inc. farm near Elizabeth have appealed the Indiana Department of Environmental Management’s approval for the expansion, which has delayed the issuance of a final permit.  Opponents also plan to file a lawsuit against the farm owners and their corporation.  The Jackson County permitting and zoning processes are not so far along, but neighbors are making similar arguments.

The assertions include the standard arguments: contaminated groundwater, other health risks, and lowering of property values.

The D Livestock, Inc. operation includes spreading manure over their own fields.  IDEM reviewed the application and approved the permit in March.  Thirty-three neighboring property owners to filed an appeal last month.  The appeal maintains that the farmland already is being used to apply manure and additional spreading will overload the capacity of the land.  The appeal also alleges that additional manure from 4,000 more hogs would harm surface water and groundwater and that there has been no engineering study supporting the permit.

The Office of Environmental Adjudication will hold a hearing.

D Livestock, Inc. has been in compliance since opening in 2007.  The Jackson County operation, if approved, will be new, though the county itself is host to roughly a half-dozen such facilities.

Ralston Street Lagoon 26 Years Later . . .

Ralston Street Lagoon.jpgThe Ralston Street lagoon.  One of Indiana’s most notorious toxic sludge pits.  And remediation is in in its initial phase – 26 years after the Consent Decree was lodged. 

 The Indiana Toll Road’s 1956 construction is thought to be the genesis of the borrow pit now known as the Ralston Street lagoon.  The lagoon is near Clark Road on Gary’s far west side, not far from the Grand Calumet River. The Gary-Chicago International Airport is just northwest of the lagoon. 

The lagoon is home to PCBs (polychlorinated biphenyls) - banned in 1976.  Because of its size — reportedly more than 500,000 cubic yards of sludge — trucking it to a landfill was not an option.  “It would fill Soldier Field and rise to 200 feet high,” said Daniel F. Vicari, an environmental engineer with CDM Smith, the company overseeing the epic cleanup. “

The remediation/containment plan for the sludge is estimated at $66.9 million. 

The EPA found significant evidence of PCBs in the sludge but none in the ground water. The Gary Sanitary District agreed to clean up the sludge in a federal consent decree ordered in 1986. 

The remedy is complex. a “long stick” excavator will dig a 60-foot deep trench around the lagoon.  Piping will transfer a slurry mix of clay powder and water to backfill the trench as the excavator digs. The resulting slurry wall surround the lagoon, effectively containing any contamination from leaching out. 

This first phase should be completed by November.  Then, work begins on solidifying the sludge and capping it, a process that could last until 2017. 

The cost is enormous: In 2011, the Gary City Council approved a 30 percent increase in stormwater fees to cover a $27.5 million bond for the cleanup.  In addition, the Dary Sanitary District spent nearly $1.2 million for replacement housing and moving expenses for residents – former owners of 6 acres now used as the staging area for crews cleaning up the lagoon.

In 2011, the Gary Sanitary District petitioned the EPA to declare the lagoon a Superfund site making it eligible for federal funding but the request was denied.

Here’s the timeline:

  • 1962: Sludge dumping begins in borrow pit
  • 1976: PCBs banned
  • 1983: EPA sues Gary for violating Clean Water Act
  • 1986: Consent Decree lodged, halts dumping
  • 1988: Sludge dumping stops
  • 2009: EPA announces $66.5 million cleanup plan
  • 2011: City purchases residents homes, work begins on Phase 1
  • 2011: City raises stormwater fees 30 percent to pay for cleanup
  • 2012: Phase 1 of cleanup

Other documents related to the site.

EPA Final Decision 2009.pdf 

Technical Cost Assessment 2007.pdf

Photo attributed to the Post-Tribune.

Unintended Consequences: Ammunition, Crop Damage, and the California Condor

california condor.jpgMy wife's cousin - let's call him Dan - called me to discuss an environmental issue on his family's farm a few years ago. 

These are folks who farm several thousand acres in southern Indiana, so I was thinking it could be any number of things. But it wasn't anything I expected to hear.

As it turns out, one of Dan's farms lay adjacent to a conservation club.  The ground immediately adjacent to the club was far less productive than neighboring dirt. He attributed the lack of productivity to the club.

"What are we talking about here, Dan?"

"Well" he said, "you know how the club has its shooting range next to the farm - and you know all the outings, and the contests, and how the high school trap shooting team used the range for 50 years or more?. The buckshot lands in our field"

"Yea, I know that.  So what?"

"I think all that lead in the shot landing in our field has contaminated our ground. The crops won't grow."

Don't ever let it be said that farmers don't know their chemistry.  As it turns out, Dan was absolutley correct.  And we addressed the issue.  That's another insurance claim story for another post.

But I thought about that today as I read about a lawsuit filed yesterday in the DC District. My first thought was that we may have just another group of environmental organzations hugging a tree or two.  My second thought was my experience with Dan's case.

A group of conservationists sued the EPA on Thursday to force regulation of ammunition whcih indirectly kills endangered California condors.  The organizations assert that lead poisoning from ammunition kills not only condors but eagles, swans, loons and other birds that feed on dead animals in the wild. The lawsuit, filed in federal District Court in Washington, DC, asks the EPA to initiate a public process to determine whether that ammunition can be controlled. The complaint does not, however,  ask for a ban.

The Complaint is here.  Trumpeter Swan v. EPA.pdf

The same groups filed a petition with EPA and it responded in April - saying it does not have the authority under the Toxic Substances Control Act to regulate lead ammunition. Furthermore, the agency said the petition was similar to one filed by some of the groups in 2010 and declined to review the most recent one.

Lead poisoning has long been recognized as one of the leading causes of death of the condor. They once numbered in the thousands across North American but were nearly extinct in the early '80s.

So what have we learned?  We learned what we already knew.  Even indirectly, lead has consequences. No doubt this will become a political issue. It shouldn't - but it will.

Poisoning the Great Lakes: NRDC's Take on Mercury Emissions from Coal Fired Plants

coal fired plant.jpgThe US Senate is soon to address the EPA's authority to clean up mercury and other toxic air pollutants.  In anticipation of the debate, the Natural Resources Defense Council issued a report showing that the 25 worst coal-fired power plants account for more than half of the dangerous mercury pollution emitted by the total of 144 electricity generation facilities in the Great Lakes region. The report also finds that almost 90 percent of the toxic emissions could be eliminated with "off-the-shelf technologies".

NRDC says that by EPA and state agency numbers these are the 5 worst coal-fired power plants in Indiana: 

  1. Wabash River (Vigo County, IN)
  2. Clifty Creek (Jefferson County, IN)
  3. Rockport (Spencer County, IN)
  4. State Line (Lake County, IN)
  5. Tanners Creek (Dearborn County, IN)

Mercury emitted into the air from coal-fired power plants is the leading man-made source of mercury reaching the Great Lakes and the lakes, rivers, and streams of the Great Lakes region.  The EPA estimates that coal-fired power plants are the largest man-made source of mercury pollution, accounting for 50 percent of mercury air emissions in the United States.

The report, although slanted in the way you would expect from the NRDC, (it's entitled Poisoning the Great Lakes) and designed to inform and influence the debate, offers insight as we address regulatory issues in Indiana.

 The Indianapolis Star is also reporting on the same topic. The article is here.

VIM Recycling: IDEM Prevails in Contested $150,000 Fine for Failure to Meet Cleanup Deadline

VIM.jpgThe Indiana Department of Environmental Management filed a lawsuit against VIM roughly three years ago, contending it was improperly accepting waste wood containing glues, resins and other substances at its facility near Elkhart. A settlement was reached, but VIM was fined $150,000 after it failed to meet a June 2011 deadline to remove the wood.

The Elkhart Superior Court rejected an April 2012  request by the former wood recycling plant operator that the $150,000 fine against the now defunct company be waived. VIM’s operator, Ken Will, the Court last month to review its January order.

The Attorney General’s Office and IDEM filed suit against VIM in December 2009 over a large pile of industrial wood waste piled on the wood recycler’s grounds, west of Elkhart. State officials alleged that VIM illegally accepted the material, lacking the proper state permit, and had sought its removal. 

EPA also monitored the site, as a result of smoldering and burning wood piles.   

A settlement was reached requiring the gradual removal of the wood, but VIM missed the June 2011 deadline leading to the $150,000 fine.  Soil Solutions, which bought out VIM in July 2011, actually got rid of the disputed wood, not VIM or Will. 

In addition to the $150,000 fine for the six months VIM had been out of compliance with an accord to get rid of a disputed pile of wood waste, VIM has to pay $2,800 in attorney fees.  Will said in his response that the now defunct firm lacked money to pay the penalty.  The AG's office apparently intends to pursue collection, but likely stands behind other creditors.

EPA Announces $4.4 Million in Grants to Clean Contaminated Sites in Indiana

brownfield.jpgThe Environmental Protection Agency announced $4.4 million in grants to redevelop contaminated properties in Indiana. These “brownfield grants” are used to assess and clean up abandoned industrial and commercial properties. 

The Indiana brownfield grants were distributed as follows: (1) Clinton County, Site Assessment, $400,000;  (2) Eastern Indiana Development District, Site Assessment, $540,000; (3)Indianapolis, Site Assessment, $400,000; (4) Indianapolis, Cleanup, Former National Malleable Castings Company, $200,000; (5) Kokomo, Site Assessment, $600,000; (6) Logansport, Site Assessment, $686,500; (7) Muncie, Site Assessment, $591,600; (8) Noblesville, Site Assessment, $400,000; and (9) Union City, Site Assessment, $600,000.

The Indiana grants are part of the EPA’s $69.3 million 2012 nationwide brownfields grants to clean up and redevelop contaminated properties.

EPA - BP Agreed Settlement: $400 Million in Pollution Controls and $8 Million Penalty at Whiting Refinery

BP Whiting.jpgThe EPA and the Department of Justice announced that BP North America Inc. has agreed to pay an $8 million penalty and to invest more than $400 million to install state-of-the-art pollution controls and cut emissions from BP’s petroleum refinery in Whiting.  The Whiting facility has a refining capacity of approximately 400,000 barrels per day, and is the 6th largest refinery in the United States.

The DOJ said that BP North America had not lived up to all of its obligations under an earlier settlement agreement and committed new violations of the Clean Air Act at its Whiting refinery. The complaint alleged violations of Clean Air Act requirements at the Whiting refinery in connection with construction and expansion of the facility, as well as violations of a 2001 Consent Decree with the company that covered all of BP’s refineries and was entered into as part of EPA’s Petroleum Refinery Initiative.

The settlement will require the installation of pollution controls on the largest sources of emissions at the Whiting refinery, including extensive new controls on the refinery’s flaring devices. Under the settlement, BP will install new equipment that will limit the amount of waste gas sent to flaring devices in the first place, as well as implement controls to ensure proper combustion efficiency for any gases that are burned in a flaring device.

The requirements, similar to those included in a recent settlement with Marathon Petroleum, are part of EPA’s national effort to reduce emissions from flares at refineries, petrochemical and chemical plants.

In addition to the controls on the refinery’s flares, the settlement will also impose enhanced controls on wastewater containing benzene and providing for an enhanced leak detection and repair program. It settlement also requires the Whiting refinery to spend $9.5 million on projects at the refinery to reduce the emissions of greenhouse gases.

BP will perform a supplemental environmental project in which they will install, operate and maintain a $2 million fence line emission monitoring system at the Whiting refinery and will make the data collected available to the public by posting the information on a publicly-accessible website. Fenceline monitors will continuously monitor benzene, toluene, pentane, hexane, sulfur dioxide, hydrogen sulfide and all compounds containing reduced sulfur.

The State of Indiana, the Sierra Club, Save the Dunes, the Natural Resources Defense Council, the Hoosier Environmental Council, the Environmental Law and Policy Center, and the Environmental Integrity Project also joined in this settlement.

Board Consolidation: In the Name of Regulatory Reform

IndianaSenate.jpgHEA 1002 (PL 133) merges three rule-making boards into a single panel called the Environmental Rules Board.  The new law repeals the air, water and solid waste boards effective January 1, 2013.  In their place, we will soon have a 16 member (5 of those members ex officio) Environmental Rules Board — which takes effect July 1, 2012.  Of the remaining 11 members, one represents environmental interests. The board may appoint a non-voting technical secretary and legal counsel from names approved by the governor.

But the complexity of the specialized regulatory requirements for air, water, and solid waste may be beyond the capacity of the single agency.  Issues such as the impact of confined feeding operations on water quality, industrial air emissions, sludge from sewer plants, and everything in between, will now be handled by one agency.

To the extent that the former agencies were independent of IDEM, we had some assurance of state agencies with rule-making authority without reliance upon IDEM's processes.  In addition to the regulatory environment, both staffing and funding will now be an issue.  The end result of this legislation is most likely to be a weaker regulatory and enforcement framework. 

Marcia Oddi, editor and publisher of the excellent Indiana Law Blog and the author of many articles on environmental law, has written extensively on this legislation.  You can find her most recent post here and backtrack for her earlier commentary.  She opposed the legislation.

Rep. David Wolkins, who sponsored the bill, will also chair that summer study committee, which makes recommendations to the Legislature and agencies on environmental issues. Wolkins said his committee will take up the funding issue, among other issues.

"That was one of the major problems with that bill — there was no funding for the technical secretary. Everybody who was against combining the boards said, 'OK we'll accept it reluctantly if you'll have a full-time technical secretary who's not an employee of IDEM.' So we'll be looking at that funding question."

Sen. Beverly Gard, a Greenfield Republican who's been the Senate's leader on environmental issues for years, said she's doubtful funding can be found given the state's tight fiscal situation.

The Indiana Chamber of Commerce and the Hoosier Environmental Council both opposed the bill.  The environmental lobby was concerned about an agency that would provide weaker air, water and land pollution rules; business interests in precisely the opposite view, but the agency would implement tougher regulations.

As of January 1, 2013, the Water Pollution Control Board, Air Pollution Control Board, and Solid Waste Management Board will cease to exist.  The Environmental Rules Board will replace these agencies.

Both the Hoosier Environmental Council and the Indiana Chamber of Commerce support the summer study committee and to recommend that the state search for money to fund a technical adviser for the new board who is outside of IDEM's control to help guide ERB members through the issues.

Law Meets Science: Hydraulic Fracturing and Wastewater Disposal

fracking well.jpg"Ladies and gentlemen of the jury, all the State offers to you today is a case built upon circumstantial evidence.  There is no eyewitness to the crime." 

If you've ever tried a jury (particularly a criminal case); in fact, if you've ever watched television, you've heard that refrain.  As attorneys, we know that circumstantial evidence, particularly evidence built upon scientific study can be compelling. 

Right now, with the earthquakes in Ohio, that's all we have: circumstantial evidence.  But analysis will soon tell us whether the 4.0 magnitude earthquake in Youngstown, Ohio are a result of the disposal of waste from the hydraulic fracturing drilling process.  Two earthquakes occurred close to the bottom of a 9,200-foot-deep disposal well where for months, brine and other liquid waste from natural-gas wells had been injected under pressure. They were the 10th and 11th earthquakes to occur near the well since March 2011.

The finding provides further evidence to support what some scientists had begun to suspect: that the waste products from fracking.  Hydraulic fracturing (fracking) is the process  that is used to extract natural gas from shale.  Seismologists suspect that the waste may have migrated from the disposal well into deeper rock formations.  Similar earthquakes occurred in Texas and Arkansas.

The owner of the disposal well, D & L Energy, entered into an agreement with the Ohio Department of Natural Resources to cease operations indefinitely.  ODNR also suspended operations on five deep well sites in the Youngstown area until the analysis of the 4.0 earthquake is completed. The D & L Energy wells are among 177 "class two" deep wells in Ohio operating with permits under the Clean Water Act.

A seismologist at Columbia University said that circumstantial evidence suggests a link between the earthquake and the high-pressure well activity.  Data collected from four seismographs set up in November in the area confirm a connection between the quakes and water pressure at the well.

Reports indicate that this is not the first time Ohio tremors have been linked to deep well drilling.  A 4.2 magnitude earthquake in Ashtabula, Ohio in 2001 was believed to be due to deep-well injection.

Law meets science.  Hydraulic fracturing and wastewater disposal.  Clean Water Act permitting.  The seismic activity in Youngstown leads to a great many questions for which neither law nor science currently have answers.

Case Law Round-up: A Couple of Cases Worth a Glance

roundup.jpgA couple of cases of note - worth reading when you have a few minutes.

State of New York v. Solvent Chemical

New York sought contribution under the Comprehensive Environmental Response and Compensation Act (CERCLA), 42 U.S.C. 9601-9675, for both past and future costs of cleanup. The district court awarded contribution for past cleanup costs but declined to issue a declaratory judgment as to future contribution. The Second Circuit Court of Appeals reversed the denial of a declaratory judgment and held that the judgment (1) would serve a useful purpose in settling the legal issues involved, (2) was not being used for procedural gamesmanship or a race to res judicata, (3) would not increase friction between sovereign legal systems, and (4) there was no better or effective remedy. The Second Circuit noted that it would not matter that a declaratory judgment of liability alone would not finalize the controversy and eliminate all uncertainty. Other issues raised on appeal were decided in a summary order issued simultaneously with this opinion.

State of New Jersey, et al. v. EPA

This case involved a motion for fees and costs under section 307(f) of the Clean Air Act, 42 U.S.C. 7607(f), which authorized courts to award costs of litigation whenever they determined that such award was appropriate. In the underlying litigation, a group of Native American tribes and tribal associations intervened on behalf of petitioners who were challenging EPA rules regulating mercury emissions from power plants. The DC Circuit Court of Appeals vacated the mercury rules and agreed with petitioners that the rules violated the Act.  The parties subsequently sought the court to order the EPA to pay their fees and costs. The court concluded that they merited a fee award because they contributed to the proper implementation and administration of the Act or otherwise served the public interest. The court declined, however, to determine the appropriate amount. Instead, the court directed the parties to its Appellate Mediation Program.

Bergman v. Michigan State Transportation Commission

In 1979, Bergmann bought land from the Michigan State Transportation Commission.  In 1989, he sued the Department of Transportation under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. 9601-9675, claiming that there was contamination on the site. After conducting discovery, the parties settled. The district court entered a consent decree in 1991 that required the Department to remediate the property by March 31, 1995.  A consent decree contained a liquidated damages provision that provided that if the Department failed to make a good-faith effort to remediate by that date, the State had to pay Bergmann the amount of $2,000 per month until remediation was complete. The Department failed to remediate or to pay the liquidated damages. On July 31, 2009 — more than 14 years after those obligations came due — Bergmann filed a motion with the same district court to enforce the decree. The district court held that the Department had waived its sovereign immunity and that a 10-year statute of limitations barred enforcement of the remediation obligation, but that each of the missed $2,000 payments triggered its own 10-year limitations period. The Sixth Circuit Court of Appeals vacated, holding that the court should have relied on the doctrine of laches rather than the limitations period because the consent decree amounted to a remedy in equity. The waiver of immunity remained effective. As Judge Posner explained: "From the standpoint of interpretation a consent decree is a contract, but from the standpoint of remedy it is an equitable decree."

Additional Toxic Coal Ash Contamination Sites Found in 10 States

EIP.jpgA total of 20 additional coal ash dump sites causing groundwater and soil contamination in 10 states, including Indiana. The other states are Florida, Georgia, Illinois, Iowa, Kentucky, Nevada, South Carolina, Tennessee and Texas.  The sites were included in a new report by the Environmental Integrity Project (EIP).

Since 2010, EIP claims to have identified 90 coal ash ponds and landfills with  groundwater contamination that it alleges have been overlooked in reports prepared by the Environmental Protection Agency (EPA).   

19 of the 20 of the newly identified coal ash dump sites have contaminated groundwater with arsenic or other toxic metals exceeding  at least one Safe Drinking Water Act Maximum Contaminant Level (MCL) as well as other health-based standards.  The Indiana site has contaminated soil along a rail trail with arsenic 900 times the federal screening levels for site cleanups.

In the course of environmental investigations undertaken as part of a rails-to-trails project in Bloomington, extensive arsenic and lead contamination was found in a railroad right-of-way as a result of coal ash and cinders used for ballast for the rail bed. Sampling along the 2.5-mile section of the former CSX railroad right of way found the following:

Arsenic: 97.8% of 46 samples taken from cinders and ballast and soil samples to a depth of one foot in the northwest section of the trail exceeded the Indiana Department of Environmental Management’s default closure levels (DCL) for residential (3.9 mg/kg) and industrial (5.8 mg/kg) arsenic-contaminated soil. The highest concentration of arsenic in a sample, 347 mg/kg, was 88 times higher than the DCL for residential use and 60 times higher than the DCL for industrial use of soils. It was also almost nine hundred times the EPA screening level of 0.39 mg/kg for arsenic.

Lead: Lead also exceeded the residential use DCL of 81 mg/kg in a majority of samples (62.5%). The highest lead concentration, 1,200 mg/kg, was 14.8 times higher than the DCL for residential use, 5.2 times higher than the DCL for industrial use of soils, and three times the EPA screening level of 400 mg/kg.

You can find the press release from EIP, the complete report, and EIP's letter to Congress at its website.  

Southern Union v. US: Supreme Court to Review Criminal Fines

mercury.jpgThe US Supreme Court agreed to review whether some fines in environmental criminal cases must be approved by a jury rather than imposed by a judge.

On November 28, 2011, the Supreme Court granted a petition for review of the question of whether a criminal environmental fine must be approved by a jury.  The case, Southern Union Co. v. United States, concerns the illegal storage of mercury in violation of the Resource Conservation and Recovery Act.

Southern Union is a Texas-based natural gas distributor.  In October 2009, after a 12 day trial, a jury in the District Court for the District of Rhode Island found the company guilty of illegally storing mercury without a permit on property it owned in Pawtucket, R.I.  Judge William E. Smith imposed $18 million in penalties, which included a $6 million criminal fine and $12 million in payments to community interests.

Southern Union Co. argues that it should have faced a fine of $50,000 for a single incident of illegally storing mercury at its property in Pawtucket, R.I.  Any amount over $50,000 should have been presented to a jury, and the government should have had to prove beyond a reasonable doubt to the jury that the facts justified the higher penalty, according to the company.

Southern Union filed a petition for a writ of certiorari - arguing that Sixth Amendment principles as interpreted in Apprendi v. New Jersey, 530 U.S. 466 (2000) require “any fact” other than a prior conviction “that increases the penalty for a crime beyond the prescribed statutory maximum must be submitted to a jury and proved beyond a reasonable doubt

The government argued that the First Circuit properly interpreted the Supreme Court's warning “against expanding the Apprendi doctrine far beyond its necessary boundaries.”  The government also argued that the Supreme Court has never taken up the question of whether the imposition of a fine falls under the Apprendi rule.  The government further maintained that the Sixth Amendment allows a trial court to make the findings needed to impose a criminal fine, rather than a jury.

EPA Proposes Stronger UST Regulations

lust.jpgEPA maintains that there are about 595,000 active UST’s at about 214,000 sites in the United States.  On November 18, 2011, the Federal Register published Revising Underground Storage Tank Regulations—Revisions to Existing Requirements and New Requirements for Secondary Containment and Operator Training, that would update and expand the Environmental Protection Agency’s original 1988 regulations for underground storage tanks (UST’s).

In view of EPA’s and state regulatory agencies’ claims of thousands of petroleum and hazardous chemical leaks each year, the Federal government has proposed stronger rules for underground storage tanks, with new requirements for containment, training, codes of practice and technologies.

The proposed rule comes in the wake of the March 2011 release of EPA’s Leaking Underground Storage Tank Corrective Action Compendium, which provides state and Federal leaking underground storage tank remediation specialists with resources and information.

The proposed new rule includes:

New secondary containment and interstitial monitoring requirements for new and replaced tanks and piping;

•A requirement for installation of under-dispenser containment for new dispenser systems;

Requirements for periodic spill, overfill, secondary containment, and release detection testing, along with periodic walkthrough inspections to prevent and quickly detect releases;

Ending current exemptions for UST systems with field-constructed tanks. These 239 or so tanks, most owned by the Department of Defense, would now be subject to the requirements of 40 CFR part 280, regarding design, construction, installation and notification, operating requirements, release detection and other provisions.  Ranging in size from 20,000 to more than two million gallons, these tanks pose “a substantial threat to human health and the environment,” according to EPA;

Ending similar exemptions for wastewater treatment tank systems that are not part of a wastewater treatment facility regulated under § 402 or 307(b) of the Clean Water Act. EPA exempted these and other tank categories from leak detection requirements in 1988 because monitoring technology for such systems was not available then, but it is now, according to EPA.

•Allowing for the use of new technologies in tank cladding and jacketing, non-corrodible piping, and operations and detections. The 1988 rule allows these tank technologies: coated and cathodically protected steel; fiberglass reinforced plastic; steel-fiberglass reinforced-plastic composite; and metal without additional corrosion protection, provided that a corrosion expert determines the site is not corrosive enough to cause a release from corrosion during the tank’s life. These would remain unchanged under the new rule.

New training requirements for three UST system operator classes. Depending on the class, the training would emphasize spill prevention, system operation, corrosion protection, detection and emergency response.

New training requirements for three UST system operator classes. Depending on the class, the training would emphasize spill prevention, system operation, corrosion protection, detection and emergency response.

EPA's proposal (all 89 pages) would affect a number of industries that use UST’s, including transportation (air, water, truck, transit, pipeline and airport operations), communications and utilities (wired telecommunications carriers and electric power generation, transmission and distribution).

The proposed regulations would apply to tanks that hold petroleum or hazardous chemicals, which are regulated under Subtitle I of the Resource Conservation and Recovery Act. They would not affect UST’s containing hazardous waste, which are regulated under RCRA Subtitle C.

Egan Marine v. Great American Insurance: 7th Circuit Resolves Coverage Dispute

tugboat.jpgThe 7th Circuit Court of Appeals resolved an insurance coverage dispute earlier this week.  The District Court found in favor of Egan Marine and against Great American Insurance. The 7th Circuit affirmed. Egan Marine v. Great Am. Ins.pdf

Egan Marine Corporation (EMC) and Service Welding and Shipbuilding, LLC (SWS) sued their insurance company, Great American Insurance Company (GAIC).  EMC transports products on waterways. SWS runs the shipyard where EMC maintains its vessels. Dennis Egan principally owns both EMC and SWS. EMC and SWS obtained insurance coverage from GAIC.

In January 2005, EMC was hired to transport several loads of clarified slurry oil from the Exxon/Mobil refinery in Joliet, Illinois to Ameropan Oil Company via the Chicago Sanitary and Ship Canal. An EMC tank barge carrying petroleum exploded in the canal.  Following the explosion, the EMC tanker discharged some of its petroleum cargo into the canal. Most of the cargo remained aboard the barge, which ultimately sank along the side of the canal, having been towed by an EMC tugboat.  Both tanker and the tug were insured under GAIC’s policy.

EMC contacted GAIC. The dispute involved the scope of the their insurance policy. The policy indemnified EMC and SWS them against liability under several federal environmental protection laws or the state law equivalents. EMC and SWS attempted to invoke their policy for up to $10 million in coverage following an explosion on one of their vessels that resulted in an oil spill in the Chicago Sanitary and Ship Canal.

GAIC took issue with the indemnification amounts requested by EMC and SWS. GAIC concluded that the explosion implicated only the EMC tanker and its corresponding $5,000,000 of coverage. It based its conclusion on a Coast Guard letter to EMC, in which it identified the EMC tanker as responsible for the oil spill, but did not similarly designate EMC’s tugboat as responsible. In short, GAIC did not believe that it owed any indemnification for the tugboat’s actions.  At no time, however, did GAIC advise EMC as such or issue a reservation-of-rights letter in connection with EMC’s request for coverage.

GAIC sent a letter to SWS, stating that it had exhausted its $5,000,000 policy limit.  GAIC had not actually paid $5,000,000 to or on behalf of EMC and SWS.  GAIC ultimately paid EMC and SWS, but still refused payment of any kind for the tugboat’s actions.

The District Court found for EMC and SWS on coverage, damages and defense costs. The 7th Circuit affirmed.

It owed $5,000,000 per vessel, per incident vessel; it owed no coverage for either of two others for in rem liability. It granted the insureds summary judgment on their breach of contract claim, finding that the insurer owed $5,000,000 in coverage for a vessel, was obligated to pay defense costs up to that amount, and had breached its contract by not doing so. It denied summary judgment on a claim of breach of the duty of good faith and fair dealing.