Still No Remedy after All These Years: Plugging the Hole in the Law of Leaking Underground Storage Tanks

Indiana Law Journal

Volumn 73, Issue 2, 1998, Pages 675-690

  Basile, Jason M ^a  

^a INDIANA UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0032378285     PISSN: 00196665     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (152)

1. See HAZARDOUS AND SOLID WASTE AMENDMENTS OF 1984, H.R. CONF. REP. No. 98-1133, at 128, reprinted in 1984 U.S.C.C.A.N. 5649, 5699 (reporting the EPA's estimate).
2. See Underground Storage Tanks; Technical Requirements, 52 Fed. Reg. 12,662, 12,664 (1987).
3. See Don Ritter, Foreword to MICHAEL L. ITALIANO ET AL., LIABILITY FOR STORAGE TANKS at xxiii, xxiii (2d ed. 1992).
4. Id. at xxiv.
5. Id. at xxiii.
6. See ITALIANO ET AL., supra note 3, at 3-4.
7. See Ritter, supra note 3, at xxiv.
8. 42 U.S.C. §§ 9601-9675 (1994).
9. See id. § 9601(14).
10. See John A. Chanin, Comment, LUST on Your Corner: Strict Liability, Victim Compensation, and Leaking Underground Storage Tanks, 62 U. COLO. L. REV. 365, 371-72 (1991) (citing NEW JERSEY DEP'T OF HEALTH, HAZARDOUS SUBSTANCE FACT SHEET FOR GASOLINE (1985)).
11. Superfund: Hearings on Leaking Underground Gasoline Storage Tanks Before the Subcomm. on Commerce, Transp., and Tourism of the House Comm. on Energy and Commerce, 99th Cong. 1007 (1985) (statement of Rep. Thomas J. Downey).
12. Industry Opposes Tightening RCRA Rules, OIL & GAS J., Sept. 16, 1991, at 41, 41.
13. See 42 U.S.C. § 9613(f)-(g).
14. See id. § 9601(14).
15. Id. §§ 6901-6992k.
16. See id. § 6928(a), (g); see also Kevin R. Duncan & B. Todd Bailey, Innocence Amid "LUST": The Innocent Buyer and Leaking Underground Storage Tanks Containing Petroleum, 7 BYU J. PUB. L. 245, 260 (1993) (noting that the available remedies do not provide damages to an innocent purchaser).
17. See id. § 6928(a), (g); see also Kevin R. Duncan & B. Todd Bailey, Innocence Amid "LUST": The Innocent Buyer and Leaking Underground Storage Tanks Containing Petroleum, 7 BYU J. PUB. L. 245, 260 (1993) (noting that the available remedies do not provide damages to an innocent purchaser).
18. See Meghrig v. KFC W. Inc., 116 S. Ct. 1251 (1996).
19. STAFF OF HOUSE COMM. ON PUB. WORKS AND TRANSP., 96TH CONG., COMPENSATION FOR VICTIMS OF WATER POLLUTION 12 (Comm. Print 1979).
20. Bradley C. Bobertz, Legitimizing Pollution Through Pollution Control Laws: Reflections on Scapegoating Theory, 73 TEX. L. REV. 711, 712 (1995).
21. See id. at 713 n.9.
22. See infra Part 1.
23. See Chanin, supra note 10, at 369.
24. See Ritter, supra note 3, at xxiv.
25. See Chanin, supra note 10, at 370.
26. See id.
27. See Duncan & Bailey, supra note 16, at 247.
28. Id. at 248.
29. See Wilshire Westwood Assocs. v. Atlantic Richfield Corp., 881 F.2d 801, 803 (9th Cir. 1989).
30. See Chanin, supra note 10, at 371-72.
31. See id. at 374-78.
32. See id. at 376.
33. STAFF OF HOUSE COMM. ON PUB. WORKS AND TRANSP., 96TH CONG., COMPENSATION FOR VICTIMS OF WATER POLLUTION 25-27 (Comm. Print 1979).
34. 42 U.S.C. §§ 7401-7671q (1994) (originally enacted as Clean Air Act, Pub. L. No. 88-206, 77 Stat. 392 (1963)).
35. 33 U.S.C. §§ 1251-1387 (1994) (originally enacted as Clean Water Act, Pub. L. No. 92-500, 86 Stat. 816 (1972)).
36. See BRADFORD F. WHITMAN, SUPERFUND LAW AND PRACTICE 4 (1991); Roger Armstrong, Comment, CERCLA's Petroleum Exclusion: Bad Policy in a Problematic Statute, 27 LOY. L. A. L. REV. 1157, 1159-60 (1994).
37. See BRADFORD F. WHITMAN, SUPERFUND LAW AND PRACTICE 4 (1991); Roger Armstrong, Comment, CERCLA's Petroleum Exclusion: Bad Policy in a Problematic Statute, 27 LOY. L. A. L. REV. 1157, 1159-60 (1994).
38. See Armstrong, supra note 35, at 1160.
39. See id. at 1164-65.
40. See id. at 1165.
41. H.R. 7020, 96th Cong. (1980).
42. See Frank P. Grad, A Legislative History of the Comprehensive Environmental Response, Compensation and Liability ("Superfund") Act of 1980, 8 COLUM. J. ENVTL. L. 1, 4 (1982).
43. H.R. 85, 96th Cong. (1979).
44. See Grad, supra note 40, at 3.
45. See id. at 4.
46. See Armstrong, supra note 35, at 1171.
47. Id. at 1173.
48. See id. at 1172.
49. Id.
50. See infra Part H.A.
51. Armstrong, supra note 35, at 1166.
52. See 42 U.S.C. § 9613(f)-(g) (1994); see also Duncan & Bailey, supra note 16, at 261.
53. See 42 U.S.C. § 9607(a)(4)(B); id. § 9613(f).
54. See id. § 9607(a)(4)(B).
55. See id. § 9613(f)(1).
56. See Duncan & Bailey, supra note 16, at 261.
57. 42 U.S.C. § 9601(14).
58. See Wilshire Westwood Assocs. v. Atlantic Richfield Corp., 881 F.2d 801 (9th Cir. 1989) (interpreting the scope of the petroleum exclusion); see also Cose v. Getty Oil Co., 4 F.3d 700 (9th Cir. 1993) (noting that crude-oil-tank bottoms are not petroleum within the meaning of CERCLA's petroleum exclusion).
59. See Wilshire, 881 F.2d at 810.
60. See Underground Storage Tanks; Technical Requirements, 52 Fed. Reg. 12,662, 12,664 (1987).
61. See 42 U.S.C. §§ 6991-699li.
62. See id. § 6991a(a). 61. See id. § 6991b(c)(1).
63. See id. § 6991b(c)(3).
64. See id. § 6991b(c)(4).
65. See id. § 6991c(a).
66. See Duncan & Bailey, supra note 16, at 250 (reporting that ten states have approval and two have tentative approval).
67. See id; see also infra Part ILD (discussing Indiana statute that expands leaking-UST liability beyond RCRA).
68. See 42 U.S.C. § 6972(a).
69. See id.
70. See id. § 6972(b).
71. See id. § 6972(a)(1)(B).
72. David R. Case, Resource Conservation and Recovery Act (RCRA), in ENVIRONMENTAL LAW HANDBOOK 406, 406 (J. Gordon Arbuckle et al. eds., 11th ed. 1991).
73. See Richard G. Stoll, Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA or Superfund), in ENVIRONMENTAL LAW HANDBOOK, supra note 71, at 75, 75.
74. See id. at 93.
75. See Armstrong, supra note 35, at 1190-91.
76. See id. at 1191; see also MARY DEVINE WOROBEC & CHERYL HOGUE, TOXIC SUBSTANCES CONTROLS GUIDE 195 (1992).
77. See Walls v. Waste Resource Corp., 761 F.2d 311, 316 (6th Cir. 1985); Duncan & Bailey, supra note 16, at 260.
78. 116 S. Ct. 1251, 1253 (1996).
79. See 42 U.S.C. § 6978 (1994).
80. See KFC W., Inc. v. Meghrig, 49 F.3d 518, 521 (9th Cir. 1995), rev'd, 116 S. Ct. 1251.
81. Id. at 523-24 (footnotes omitted).
82. See Meghrig, 116 S. Ct. at 1256.
83. See id. at 1254-56.
84. Meghrig only dealt with the recovery of past remediation costs by a present landowner. It did not address the issue of an injured party implying a cause of action under RCRA to recover damages for physical injuries and damage to property values due to a leaking UST. However, this would be more tenuous than implying the right to recover past remediation costs (which the government can do under RCRA), so it probably can be safely assumed the Court would reject any attempts to further imply RCRA rights. Indeed, trial courts have now begun reacting to Meghrig by further constricting leaking-UST victims' available remedies under RCRA. See Michelle Kok Moritz, Note, Cleaning Up: Equitable Considerations in the RCRA Citizen Suit Provision Controversy, 72 IND. L.J. 869 (1997); Hazardous Waste: RCRA Does Not Allow Past Cost Recovery Even Where Danger Is Ongoing, Court Says, 27 Env't Rep. (BNA) 1316 (Oct. 11, 1996).
85. Meghrig only dealt with the recovery of past remediation costs by a present landowner. It did not address the issue of an injured party implying a cause of action under RCRA to recover damages for physical injuries and damage to property values due to a leaking UST. However, this would be more tenuous than implying the right to recover past remediation costs (which the government can do under RCRA), so it probably can be safely assumed the Court would reject any attempts to further imply RCRA rights. Indeed, trial courts have now begun reacting to Meghrig by further constricting leaking-UST victims' available remedies under RCRA. See Michelle Kok Moritz, Note, Cleaning Up: Equitable Considerations in the RCRA Citizen Suit Provision Controversy, 72 IND. L.J. 869 (1997); Hazardous Waste: RCRA Does Not Allow Past Cost Recovery Even Where Danger Is Ongoing, Court Says, 27 Env't Rep. (BNA) 1316 (Oct. 11, 1996).
86. See Allison Rittenhouse Hayward, Common Law Remedies and the UST Regulations, 21 B.C. ENVTL. AFF. L. REV. 619, 619 (1994).
87. See id. at 659.
88. See United States v. Colorado, 990 F.2d 1565, 1575-76 (10th Cir. 1993) (dicta) (actually interpreting CERCLA, although noting analysis would be the same under RCRA).
89. See Hayward, supra note 84, at 662-63.
90. See Bennett v. Mallinckrodt, Inc., 698 S.W.2d 854, 868-69 (Mo. Ct. App. 1985); RESTATEMENT (SECOND) OF TORTS § 519 (1965).
91. See Hayward, supra note 84, at 659.
92. See id.; see also Malone v. Ware Oil Co., 534 N.E.2d 1003, 1006-07 (Ill. App. Ct. 1989) (requiring the plaintiff to prove that the defendant acted negligently or intentionally to maintain action).
93. See RESTATEMENT (SECOND) OF TORTS § 520.
94. See Hayward, supra note 84, at 659 n.258.
95. See ITALIANO ET AL., supra note 3, at 118.
96. See id. at 146-56.
97. See id at 157-61.
98. See id. at 128-38.
99. KFC W., Inc. v. Meghrig, 49 F.3d 518, 524 (9th Cir. 1995), rev'd, 116 S. Ct. 1251 (1996).
100. See Duncan & Bailey, supra note 16, at 271-72.
101. See Hayward, supra note 84, at 665.
102. See Duncan & Bailey, supra note 16, at 266-68.
103. See Chanin, supra note 10, at 368.
104. See id.
105. See Industry Opposes Tightening RCRA Rules, supra note 12, at 41.
106. See Michael M. Gibson & David P. Young, Oil and Gas Exemptions Under RCRA and CERCLA: Are They Still "Safe Harbors" Eleven Years Later?, 32 S. TEX. L. REV. 361, 364-65 (1991); Carter Signs $227-Billion Excise Tax Measure, OIL & GAS J., Apr. 7, 1980, at 49, 49 ("'It is beyond rational comprehension that Congress could approve and the President sign a massive tax on the U.S. oil industry at a time when our domestic and foreign policies are held hostage to our dependence on foreign oil.'") (quoting the president of the Independent Petroleum Association of America).
107. See Michael M. Gibson & David P. Young, Oil and Gas Exemptions Under RCRA and CERCLA: Are They Still "Safe Harbors" Eleven Years Later?, 32 S. TEX. L. REV. 361, 364-65 (1991); Carter Signs $227-Billion Excise Tax Measure, OIL & GAS J., Apr. 7, 1980, at 49, 49 ("'It is beyond rational comprehension that Congress could approve and the President sign a massive tax on the U.S. oil industry at a time when our domestic and foreign policies are held hostage to our dependence on foreign oil.'") (quoting the president of the Independent Petroleum Association of America).
108. See Michael Parrish, The Oil Crisis: 20 Years Later, L.A. TIMES, Nov. 14, 1993, at D1.
109. See Carter Signs $227-Billion Excise Tax Measure, supra note 104, at 49.
110. See Parrish, supra note 105, at D1.
111. See id.
112. See Armstrong, supra note 35, at 1175.
113. Id.
114. See Ritter, supra note 3, at xxiii.
115. See Armstrong, supra note 35, at 1188.
116. Benzene is listed as a hazardous substance under CERCLA. See 42 U.S.C. § 9601(14)(A)-(F) (1994).
117. See supra Part I.C-D.
118. Most recently, Congress added new limits on emissions of nonmethane hydrocarbons as well as other pollutants, which were to be completely phased in by 1996. See 42 U.S.C. § 7521(g).
119. See Industry Opposes Tightening RCRA Rules, supra note 12, at 41.
120. See 42 U.S.C. § 6921(b)(2)(A).
121. See Industry Opposes Tightening RCRA Rules, supra note 12, at 41.
122. See id.
123. See id.
124. See Peter Hong & Michele Galen, The Toxic Mess Called Superfund, BUS. WK., May 11, 1992, at 32, 32-33.
125. See Norman W. Bernstein, Superfund Reform Needs Drastic Simplification, 25 Envtl. L. Rep. (Envtl. L. Inst.) 10,008 (Jan. 1995).
126. Victims are continuing to fall through every day. See, e.g., Illinois Court Dismisses CERCLA, RCRA Suit for Failure to State Claim, MEALEY'S LITIG. REP.: SUPERFUND, Sept. 23, 1996, at 10 (reporting the dismissal of CERCLA, RCRA, and state-law UST claims); No Recovery for Cost of Past Cleanup Under RCRA, Illinois Judge Rules, MEALEY'S LITIG. REP.: SUPERFUND, Sept. 23,1996, at 9 (reporting the dismissal of RCRA and state-law UST claims).
127. Victims are continuing to fall through every day. See, e.g., Illinois Court Dismisses CERCLA, RCRA Suit for Failure to State Claim, MEALEY'S LITIG. REP.: SUPERFUND, Sept. 23, 1996, at 10 (reporting the dismissal of CERCLA, RCRA, and state-law UST claims); No Recovery for Cost of Past Cleanup Under RCRA, Illinois Judge Rules, MEALEY'S LITIG. REP.: SUPERFUND, Sept. 23,1996, at 9 (reporting the dismissal of RCRA and state-law UST claims).
128. See Mary Elizabeth Bosco & Russell V. Randle, Underground Storage Tanks (UST), in ENVIRONMENTAL LAW HANDBOOK, supra note 71, at 607, 607.
129. See supra Part I.C-D.
130. See Stoll, supra note 72, at 77.
131. See id.
132. CERCLA was enacted in 1980, and Subtitle I was enacted in 1984.
133. The following argument applies equally to the previous section, Part H.A.
134. See WOROBEC & HOGUE, supra note 75, at 188.
135. See supra Part I.A.
136. See supra Part I.E.
137. See J. William Futrell, The Environmental Law Institute Study: Statutory Reform of Toxic Torts, 14 Envtl. L. Rep. (Envtl. L. Inst.) 10,108 (Mar. 1984).
138. For instance, now the wide-ranging dangers of leaking USTs are better known, and oil companies are also better able to pay their fair share of the damage they cause. See supra Part II.A.
139. Causation issues are perhaps the largest obstacle for common-law UST plaintiffs. See supra Part I.E.
140. See JEFFREY TRAUBERMAN, STATUTORY REFORM OF TOXIC TORTS 119 (Environmental Law Inst, ed., 1983); Futrell, supra note 133, at 10,109.
141. See Frank P. Grad, Remedies for Injuries Caused by Hazardous Waste: The Report and Recommendations of the Superfund 301(e) Study Group, 14 Envtl. L. Rep. (Envtl. L. Inst.) 10,105, 10,107 (Mar. 1984).
142. See STAFF OF HOUSE COMM. ON PUB. WORKS AND TRANSP., 96TH CONG., COMPENSATION FOR VICTIMS OF WATER POLLUTION 299-306 (Comm. Print 1979).
143. See id.
144. See Chanin, supra note 10, at 403-04. [Strict liability] removes difficult barriers to recovery that exist under negligence and nuisance theories relating to issues of fault and reasonableness. It ensures that a LUST [leaking underground storage tank] victim will be compensated for his personal and property injuries on a simple showing that his damages were caused by an actor's leaking tanks. The victim will, of course, still have to prove his damages . . . . Id.
145. See supra Part II.A-C.
146. See 42 U.S.C. § 6929 (1994).
147. See IND. CODE § 13-23-13-8(b) (1996). Title 13 of the Indiana Code was recodified by the Indiana legislature in 1996. Section 13-23-13-8(b) is the revised citation.
148. See The Pantry, Inc. v. Stop-N-Go Foods, Inc., 777 F. Supp. 713, 720 (S.D. Ind. 1991).
149. See Hayward, supra note 84, at 662-63.
150. See Ritter, supra note 3, at xxiii.
151. Joseph L. Sax, Environmental Law in the Law Schools: What We Teach and How We Feel About It, 19 Envtl. L. Rep. (Envtl. L. Inst.) 10,251, 10,251 (June 1989).
152. Bobertz, supra note 19, at 712-13 (citations omitted).