2.26.08 Gardere
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This issue of GEAR (Gardere Environmental Action Report) is provided as an informational service to clients and friends of the firm. It is designed to provide timely information and links to news and websites with relevant updates on environmental issues. We value your time and input, so please provide comments or questions to Environmental Action Report Inquiry.

Environmental News

Green Power

Gardere Leads the Way in ABA-EPA Law Office Climate Challenge

EPA Recognizes Cities, Companies for Commitment to Green Power

Case Updates

Clean Water Act/Citizen Suit

Fourth Circuit Sends CWA Citizen Suit Back to District Court

Public Nuisance

Gardere Files Amicus Brief in Lead Paint Public Nuisance Appeal

New Hampshire Seeks Rhode Island’s Model for its MTBE Litigation

City of Houston Seeks Relief from Texas Petrochemicals, Inc.

CERCLA

District Court Allows PRP to Seek Joint & Several Liability

Clean Air Act

D.C. Circuit Overturns EPA Mercury Emissions Rules

Toxic Tort

Jurors Side with Railroad Tie Factory

Legislative/Rulemaking

TCEQ Takes Final Action on Asarco Smelter Permit

Air Permitting Changes for Rock Crushers Proposed

TCEQ Proposes Amendments to Utility Rules

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Green Power

Gardere Leads the Way in ABA-EPA Law Office Climate Challenge

Showing the firm’s commitment to sustainability, Gardere announces its participation in the ABA-EPA Law Office Climate Challenge. As an Energy Star Partner, Gardere commits to reducing its energy use by at least 10%. The firm is working with EarthPeople, LLC, a Dallas-based sustainability firm, to identify and develop opportunities for energy efficiency and resource conservation. Efforts to reach this goal are well underway in Gardere’s Houston, Dallas, and Austin offices. Gardere’s participation in the Climate Challenge is spear-headed by the firm’s environmental section.

Link to Texas Lawyer article.

Link to Greenbiz News article.

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EPA Recognizes Cities, Companies for Commitment to Green Power

Dallas and Houston are now among the top 25 cities purchasing renewable energy, with a combined impact equivalent to removing 84,000 vehicles from the road. The list of top green purchasers is published by the EPA as part of its Green Power Initiatives which sets a nationwide challenge for cities and companies to increase their use of power which generated from renewable resources. Among the 850 partner organizations, fifty-three Fortune 500 companies are participating in EPA’s challenge with Intel Corporation and Pepsi Co. outranking other companies in their purchase of green power by at least 50%.

For more on the EPA’s Green Power Partnership, click here.

Link to the EPA Region 6 Press Release on Top Green Power Purchasers.

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Case Updates

Fourth Circuit Sends CWA Citizen Suit Back to District Court

In December 2003, a South Carolina district court entered an order awarding civil damages to an environmental group in a Clean Water Act citizens suit addressing discharges from Gaston Copper Recycling Corp.’s facility under a NPDES permit. An en banc Fourth Circuit decision held that the environmental group had standing through one of its members, which owned property downstream from the discharge area. After plaintiff’s revealed that its one member establishing its standing died before the 2003 order, the Fourth Circuit re-examined the citizen suit standing issue, which requires that at least a member of the plaintiff organization be among those parties affected by the alleged violations. On Feb. 7, 2008, the Fourth Circuit remanded the case to the district court to determine whether plaintiffs can establish standing through two additional members.

Link to the Fourth Circuit decision in Friends of the Earth, Inc. v Gaston Copper Recycling Corp. (PDF: 43KB)

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Gardere Files Amicus Brief in Lead Paint Public Nuisance Appeal

Gardere recently filed an amicus curiae brief in the Supreme Court of Rhode Island in support of the Defendants’ appeal from the adverse public nuisance verdict regarding lead-based paints. The brief was filed on behalf of The Coalition for Public Nuisance Fairness and The Property and Casualty Insurance Association of America. Gardere was assisted in this effort by Thomas Lyons of Strauss, Factor, Laing and Lyons in Providence, RI. Gardere’s brief focused entirely on a “seminal error” by the trial court -- its erroneous conclusion that it was not required to defer or even consider the priorities set by the Rhode Island legislature. Once “liberated” from these constraints, the trial court inexorably proceeded to expand the tort of public nuisance beyond any rational limitations. The brief stresses the primacy of the legislature’s role, the importance of judicial deference to its goals, and provides comprehensive argument and authorities to support its position that the trial court erroneously failed to consider the entire “tapestry” of Rhode Island law before making its sweeping decision.

Download Amicus Curiae Brief filed by Rick Faulk and John Gray. (PDF: 39MB)

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New Hampshire Seeks Rhode Island’s Model for its MTBE Litigation

New Hampshire Attorney General Kelly A. Ayotte announced that she is moving forward with a legal action against manufacturers and refiners of MTBE alleging contamination of New Hampshire’s water supply. While that move may have not surprised many, on pages 4 and 5 of a new pleading, she asks the court to adopt the litigation model that was used by Rhode Island’s Attorney General to sue former manufacturers of lead paint. She lauded this model because it removed the state’s burden of identifying whose product is causing the alleged injury or nuisance. If adopted, this Rhode Island model presents a significant threat to known and accepted product liability laws.

Download New Hampshire's MTBE pleading. (PDF: 7MB)

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City of Houston Seeks Relief from Texas Petrochemicals, Inc.

The Texas Petrochemicals, Inc. facility located near the Houston Ship Channel is the target of a recent lawsuit by the City of Houston stemming from two emissions incidents in 2006. The City became aware of the releases while investigating odor complaints from neighbors. The petition claims that the unauthorized releases of chemicals including butadiene violated the plant’s air permits and Texas’ regulation against nuisance conditions created by air emissions and that Texas Petrochemicals failed to accurately report the incidents. The City seeks penalties of $400,000, attorney fees, costs of court, and costs of its investigation in addition to a permanent injunction prohibiting the plant from violating the Texas Clean Air Act.

For more information about this case, contact Diana Larson at 713.276.5458.

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District Court Allows PRP to Seek Joint & Several Liability

On Dec. 21, 2007, the federal district court for the District of Kansas held that a potentially responsible party may seek joint and several liability in a claim filed under CERCLA’s section 107. The court in Raytheon Aircraft Company v. United States disagreed with the government’s position that section 107’s joint and several liability remedy should be reserved for the government, as an enforcer of CERCLA, or innocent parties seeking to recover their response costs from responsible parties. The court reasoned that the incentives a joint and several liability remedy provides, such as rapid and voluntary responses to hazardous waste sites, are “very much in play regardless of whether the party asserting a cost recovery claim is the United States, an innocent party or a PRP."

The court noted that regardless of whether the plaintiff is a PRP, it found no unfairness in shifting the burden of proof to the defendant to establish that the harm is divisible and the degree to which a PRP plaintiff is responsible. Furthermore the court noted a defendant’s ability to seek an equitable allocation of response costs through a contribution counterclaim under CERCLA’s section 113.

For more information about this case, contact Jon Bull at 214.999.4050.

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D.C. Circuit Overturns EPA Mercury Emissions Rules

On Feb. 8, 2008, the D.C. Circuit vacated two EPA rules that would have regulated mercury emissions by coal-fired and oil-fired power plants using performance standards and a cap and trade program. In 2000, EPA listed coal-fired and oil-fired power plants as sources of hazardous air pollutants (HAPs) regulated under Section 112 of the Clean Air Act.

One of the challenged rules was EPA’s 2005 action delisting these sources, which would have removed them from specific and stringent emissions controls requirements under Section 112. The second rule, in 2006, created more flexible regulation of these sources under Section 111, including performance-based standards for new plants, a national emissions cap and state emissions allowances for new and existing plants, and a cap and trade program. New Jersey and 14 other states filed petitions challenging EPA’s rules.

The court held that EPA did not make findings explicitly required by Section 112 of the Act to de-list these sources and vacated EPA’s delisting. Because the Act requires EPA to regulate listed sources using pollution control requirements under Section 112, the court vacated EPA’s Section 111 cap and trade and performance standard regulations.

Download State of New Jersey v. EPA opinion. (PDF 51KB)

Link to ENewsUSA story.

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Jurors Side with Railroad Tie Factory

On Feb. 11, 2008, a jury in the 96th Judicial District Court of Tarrant County, Texas returned a verdict finding that Burlington Northern Sante Fe Railway Company (BNSF) was not responsible for the plaintiff’s stomach cancer. Linda Faust alleged that her illness was caused by toxic chemicals from her husband’s workplace at a railroad tie factory in Somerville, Texas.

She alleged that she was exposed to coal-tar creosote when she washed her husband’s work clothes and she sought at least $6 million in damages. In the month-long trial, defense attorneys argued that plaintiff had presented no scientifically reliable evidence, and that Ms. Faust’s cancer had been caused by her smoking and by Helicobacter pylori bacteria. Numerous other lawsuits by Somerville residents are pending against BNSF and against Koppers Inc., the current owner of the Somerville factory.

Link to Fort Worth Star Telegram article.

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Legislative/Rulemaking

TCEQ Takes Final Action on Asarco Smelter Permit

On Feb. 15, 2008, the TCEQ approved renewal of an air permit for the ASARCO smelter facility in El Paso. TCEQ’s action completes an important step in paving the way for the company to restart operations at the facility, which it has not operated since 1999. TCEQ approved a five-year permit, rather than a 10-year permit. It also required some additional conditions, including submission of a maintenance plan and installation of additional emissions monitoring equipment. Before ASARCO restarts smelting operations, TCEQ must make a finding that ASARCO is not in violation of the Texas Clean Air Act.

Link to: TCEQ page.

Link to KVIA news story.

Link to Environmental News Service story.

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Air Permitting Changes for Rock Crushers Proposed

Noting that regulation of rock crushers through the existing permit by rule had potential issues with enforceability and determination of compliance, TCEQ announced a draft Standard Permit on Feb. 15, 2008. The draft Standard Permit would replace the existing permit by rule authorizing eligible permanent rock crusher and certain concrete crusher facilities. The draft permit addresses concerns regarding nuisance dust, ambient air quality, and potential adverse health impacts associated with these operations. It includes requirements for compliance recordkeeping, updated technical requirements and preconstruction notice, as well as setback requirements and opacity and visible emissions limits. TCEQ will hold a public meeting on March 18, 2008 and it has set a March 21, 2008 deadline to receive comments on the draft Standard Permit.

Download TCEQ Summary document. (PDF: 1MB)

View TCEQ press release.

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TCEQ Proposes Amendments to Utility Rules

The TCEQ will hold a public hearing on Feb. 26, 2008 concerning proposed rule amendments to 30 TAC Ch. 291 implementing changes to the Water Code passed in 2007. The amendments cover a wide range of statutory changes. Among these, the amendments allow for surcharges by a water or sewer utility to reflect changes in documented energy costs without a contested case hearing. They allow a retail public sewer utility to contract with a retail public water utility service to provide consolidated billing for the same service area. And they allow a municipality to extend a Certificate of Convenience and Necessity (CCN) to an area outside its extraterritorial jurisdiction under certain conditions.

Download TCEQ summary. (PDF: 49KB)

Download proposed rules. (PDF: 236KB)

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Environmental Team News

Upcoming Events and Articles

  • Cindy Bishop will discuss Gardere’s Go-Green Initiative at the monthly Women in the Environment Lunch on March 5, 2008.  Anna Clark, President of EarthPeople, LLC, Gardere’s sustainability consultant will also speak at the luncheon.  The event will be hosted by Gardere in our Dallas office.  For more information about this event, contact Cindy Bishop at 214.999.4506.

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  • Kevin Colbert will participate in a Mock Daubert Hearing on “Admissibility of Causation Expert Opinions” before the Honorable Cynthia Rufe of the Eastern District of Pennsylvania.  Also among the panelists is Dean Hartley of Hartley & O’Brien PLLC. The mock hearing is part of ABA’s Tort Trial & Insurance Practice Section conference scheduled for April 10-12, 2008 in Phoenix, Arizona. This year’s conference is entitled “Convergence of Worlds: Kryptonite And Other Toxins in the Courtroom- A Forum for Lawyers, Scientists and Judges.”  Gardere is a section sponsor of this event.

    Download seminar program. (PDF: 992KB)


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Recent Articles and Presentations

  • On Jan. 22, 2008, Rick Faulk was the keynote luncheon speaker at the annual conference of the Environmental Bankers Association in San Antonio, Texas. Mr. Faulk spoke on, “The Impact of Climate Change Issues on Financial Service Providers.”

  • On Jan. 22, 2008, Kevin Colbert spoke at the annual conference of the Environmental Bankers Association in San Antonio, Texas. His topic was, “Vapor Intrusion: Liability Determination is Key to Liability Management.”

  • On Jan. 31, 2008, Celeste Quiralte was a panelist on “Avoiding Unexpected Liabilities in Merger & Acquisition Transactions” at Gardere’s Chemical Industry & Refining Group Breakfast Seminar.

  • On Feb. 12, 2008, Cindy Bishop and Celeste Quiralte presented at GardereÂ’s Environmental Section Breakfast Seminar on “Navigating Cleanups in Houston: New Options for Owners and Developers.” Cindy and Celeste discussed Houston’s Ordinance on Municipal Setting Designations and Ceil Price, Senior Assistant City Attorney, Land Use Division provided the City of Houston’s perspective.

  • On Feb. 14, 2008, Latosha T. Lewis spoke at the “Advanced Civil Litigation” University of Houston CLE Seminar on “TROs and Temporary Injunctions: How to Get One in Blitzkrieg Conditions.”

  • Kevin Colbert and Joy Palazzo’s article entitled “Vapor Intrusion: Liability Determination Protects Profits and Minimizes Risk” was published in Real Estate Finance, February 2008.

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The content of this newsletter is for informational purposes only, and is not intended to constitute legal or professional advice. The information is not guaranteed to be complete,accurate or timely, and you should not rely upon it for any purpose in lieu of seeking direct legal advice from a qualified attorney who is made aware of the specific circumstances which may apply to your situation.

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