Arnold & Porter

157 Pages·2006·7.97 MB·English

32B
Natural Resource
Damages
Brian D. Israel, Esq.
Arnold & Porter LLP
555 12th Street, N.
Washington, D.C. 20004
[phone]
brian israel (g) aporter.com
This chapter addresses the ability of the government to
recover damages at sites where natural resources have been
injured or destroyed due to the release of hazardous substances
or oil, among other things. Sections 32B.01 through 328.04
damages (NRD) law
discuss the basics of natural resource
including the context of an NRD claim, the principal statutes
authorizing NRD recoveries, the key regulations promulgated
by the federal government and the main statutory defenses.
Section 32B.05 provides a discussion of the difficult evidentiary
issues related to NRD claims including the government's bur-
den to prove injury, baseline, causation, and damages. Section
32B.O6 addresses some of the considerations at a trial of NRD
claims. Section 32B.07 provides an overview of one of the most
controversial aspects of NRD, namely, the methodologies for
calculating damages. Section 32B.08 addresses the recent in-
crease in prosecution of groundwater NRD claims. Finally,
Section 32B.09 discusses the advantages, disadvantages and
mechanics of cooperating with the government in an NRD
matter.
Many NRD assessments are now handled through a coopera-
.. The author gratefully acknowledges the invaluable assistance of Chris
Anderson, Esq., Sandhya Gupta, Esq., and Leigh Logan of the Environmental
Practice Group of Arnold & Porter LLP.
32B-
(ReI. 39.7/200(, l'ub.793)
WASTES 32B.
tive process that involves both the government and the poten-
tially responsible party (PRP). Part C of this chapter (consisting
of Sections 328.10 and 32.Bll) provides two model cooperative
agreements between a PRP and a government trustee.
NRD claims may be brought by both the federal government as well as state
governments. Part D of this chapter (Section 32B.12) provides a comprehensive,
state-by-state guide of the current NRD program in each state. This 50-state
guide discusses the nature of each state s NRD program, an overview of major
matters where applicable, and contact information.
SYNOPSIS
PART A: LEGAL BACKGROUND
~ 32B. Natural Resource Damages: The Basics
(1)
Introduction to Natural Resource DamaKes
(2) NRD in Context: The Life Cycle of a Contaminated Site
(3) NRD Litigation in a Nutshell
(a)
Hazardous Waste and Other Superfund Sites
(b)
Spills and Other Discrete Events
(c)
Regulatory Challenges
~ 328. Overview of the NRD Statutes
(11 The Principal NRD Statutes
(a) The Superfund Statute
IbJ
The Oil Pollution Act
(c) The Clean Water Act
(dl
Other Federal Laws
lei
State Statutory Authority
(2) Who Is a Trustee?
(a)
The Main Federal Trustees
(b)
States, Tribes, Territories and Cities
(c)
StandinK to Assert an NRD Claim
~ 328.03 The Key Federal Regulations, Their Troubled History and Why They Matter
III CERCLA Regulations - The Statutory Mandate
(2) Round One - The 1980s
(3)
Round Two - The 1990s
(4) The Type A Regulations - A Closer Look
(5) The Type B Regulations - A Closer Look
(6) The Oil Pollution Act Regulations
(a)
History or the OPA Regulations
rb1
Framework or the OPA Regulations
lei Main Difference Between the CERCLA and OPA Regulations
(ReI. 39-712006 Pub,793)
32B.
NATURAL RESOURCES DAMAGES
(7) Round Three - What's Next for NRD Regulations
~ 328.04 Principal Statutory Defenses
(11
Statute of Limitations
la)
The NRD Statute of Limitations Under CERCLA
Ii)
General (non-NPL) Limitations Period
Iii I
Limitations Period for NPL and Scheduled Remedial Sites
(bl
The NRD Statute of Limitations Under OPA
(2) Wholly Before December 11, 1980
(3) Federally Permitted Release
(4) Irretrievable Commitment of Resources
(5) Double Recovery
(61 Determination of Amounts
~ 32B. Principal Evidentiary Issues
(1)
Injury
Injuries
(a) Per Se
I b)
Adverse Biological Changes
I c) Defined Injuries
(d)
Injury and Issues of Proof
(2) The Relationship Between Baseline and Causation
(3)
Baseline - A Closer Look
(4)
Causation - Which Standard Applies?
(5)
Damages
~ 32B. Trial Considerations
(1) Right to a Jury
(2) The Rebuttable Presumption
(3) Scope and Standard of Review
PART B: PROCEDURAL GUIDE
~ 328.07 How to Value Nature
11)
Calculating Restoration or Replacement Costs
(2)
Compensation for Interim Lost Uses
(a)
Recreational Losses
Ib)
Economic Losses
(c)
Cultural Losses
(d)
Aesthetic Losses
(3)
Calculating Compensatory Damages
fa)
Appraisal Method
(b)
Production Cost Method
(c)
Averting Expenditures Method
(d)
Hedonic Pricing Method
(e)
Stated Preference Approaches
(i)
Contingent Valuation Studies
(ReI,39-712006 Pub,793)
(g)
WASTES 32B.
(ii)
Conjoint or Attribute-Based Studies
(4)
Equivalency Offset Approaches
~ 328. Groundwater - The Next Frontier
(1) The Unique Features of a Groundwater NRD Claim
(2) The Seminal Groundwater Case: New Mexico v. General Electric
(3)
Calculating Groundwater Damages
(4) The New Jersey Initiative
(5)
Strategic Issues Related to Groundwater NRD Claims
~ 32B. NRD Defense Strategies: Litigation Versus Cooperation
111 The Litigation Advantage
(a)
PuttinK the Trustees to Their Proof'
Ib)
Attacking Assessment Bias
Icl
Developing Caselaw on Legal Defenses
Id)
Postponing Liabilities
lei
Avoiding Liabilities
121 The Cooperation Advantage
la I Trusting the Trusting Trustee
(bJ
Impacting the Scope and Type of the NRD Assessments
(c)
Proactive Restoration
Idl
Integration of Restoration and Remediation
(e)
Information Sharing
(t)
Avoiding Litigation
Reducing Transaction Costs
131 Mechanics for Cooperation
(a)
Trustee Cooperative Assessment Programs
(b)
Cooperative Agreements
(i)
Statements of Principle
(ii) Funding Arrangements
(iii)
Tolling and Standstill Provisions
(iv)
Termination Provisions
(v)
Information Sharing
lvi)
Reservation of'Rights
(c)
Avoiding Cooperation Pitfalls
PART C: . FORMS
!i 32B. Cooperative Assessment Project Initiation Agreement
~ 328. Cooperative Injury Assessment Agreement
PART D: REFERENCE GUIDE - NRD IN THE STATES
~ 32B. A State-by.State Guide to NRD Programs in All SO States
(1)
Alabama
la) Overview
(b) Contact Information
(Rei, 39-7/2006 Pub.793)
32B- NATURAl. RESOURCES DAMAGES
(2) Alaska
(a) Overview
(h) Major Matters
(c) Contact Information
(3) Arizona
La)
Overview
(b)
Contact Information
(4) Arkansas
(5) California
(a)
Overview
(b)
Major Matters
(c)
Contact Information
(6) Colorado
(a) Overview
(hI Major matters
(c) Contact Information
(7) Connecticut
(a)
Overview
(b)
Major Matters
(c)
Contact Information
(8) Delaware
(a)
Overview
(b)
.Major Matters
(c)
Contact Information
(9) Florida
La)
Overview
(b)
.Major Matters
Ic)
Contact Information
(to) Georgia
(a)
Overview
Ib I Major Matters
Ic)
Contact Information
(11) Hawaii
(a)
Overview
IbJ
Contact Information
(12) Idaho
laJ
Overview
(b)
.Major Matters
Icl
Contact Information
(13) Illinois
(a)
Overview
(b)
Major Matters
(ReI 39-712006 Pub.793)
WASTES 32B~
(c)
Contact Information
fl41 Indiana
(a) Overview
(bl Major Matters
lei Contact Information
1151 Iowa
laJ
Overview
Ibl
Major Matters
(c)
Contact Information
Kansas
1161
laJ Overview
(h) Contact Information
(171 Kentucky
rat
Overview
IbJ
Contact Information
(18) Louisiana
rat Overview
(b) Major Matters
(c) Contact
119) Maine
(a)
Overview
fb)
Major Matters
(c)
Contact Information
(201 Maryland
(al
Overview
(h)
Major Matters
(c)
Contact Information
1211 Massachusetts
la!
Overview
(b I Major Matters
I C 1 Contact Information
Michigan
1221
fa)
Overview
(b)
Major Matters
fc)
Contact Information
f231 Minnesota
(a)
Overview
(h)
Contact Information
f24) Mississippi
la)
Overview
Ibl
Major Matters
IcJ
Contact Information
(ReI. 39-7/2006 PlIb.793)
32B- NATURAL RnSOI.lRCES DAMAGES
(25) Missouri
Overview
La)
(b) Major Matters
(c) Contact Information
Montana
126)
lal Overview
(h) Major Matters
(c) Contact Information
(27) Nebraska
(a) Overview
(b) Contact Information
(28) Nevada
fal Overview
(b) Contact Information
(29) New Hampshire
fa) Overview
(b) Contact Information
(30) New Jersey
(a) Overview
(b) .Major Matters
(e) Contact Information
(31) New Mexico
(a) Overview
(b) Major Matters
(c) Contact Information
New York
1321
(a) Overview
(b) Major Matters
(c) Contact Information
133) North Carolina
(a)
Overview
(h)
Contact Information
(34) North Dakota
(35) Ohio
lal
Overview
Ib)
Major Matters
(c)
Contact Information
(361 Oklahoma
(a)
Overview
(b)
Major Matters
fc)
Contact Information
137) Oregon
(Re!, 39-7/2006 Pub,7'J3)
WASTES 32B.
lal
Overview
Ibl
Contact Information
(38) Pennsylvania
(a)
Overview
(h)
Major Matters
(cl
Contact Information
(39) Rhode Island
(a)
Overview
Ibl
Major Matters
(c)
Contact Information
140) South Carolina
fa)
Overview
Ib)
Major Matters
(c)
Contact Information
141) South Dakota
fal Overview
fbl Contact Information
1421 Tennessee
la! Overview
Ibl Contact Information
1431 Texas
lal
Overview
(b)
Major Matters
(c)
Contact Information
f441 Utah
(a)
Overview
(b)
Major Matters
(c)
Contact Information
(451 Vermont
lal
Overview
Ib)
Contact Information
(46) Virginia
(a)
Overview
(b)
Major Matters
fc)
Contact Information
(47) Washington
la1
Overview
(h)
Major Matters
(c1
Contact Information
West Virginia
1481 lal
Overview
(bl
Major Matters
(ReI. 39-7/2006 Pub,793)
32B- NATURAL RESOURCES DAMAGES
(e)
Contact Information
(49) Wisconsin
la)
Overview
(b)
Contact Information
Wyoming
150) (a)
Overview
(b)
Contact Information
(Re!,39-7/2006 Pub,7'!3)