Gravel2Gavel Construction & Real Estate Law Blog
On August 2, 2017, the California Governor’s Office of Planning and Research (“OPR”) released its first update to the General Plan Guidelines (the “Guidelines”) since 2003. The Guidelines provide guidance to cities and counties throughout California on the preparation and content of their General Plans, which govern land uses and zoning within their jurisdictions. The updated Guidelines contain new recommended policies, information resources, and reflect recent legislation regarding General Plans.
Articles Posted in Environmental
Texas’ 2017 Environmental Legislation Summary
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The Texas Legislature meets every two years, and, as befits a large state with varied interest and concerns, typically enacts 
hundreds of new laws during these sessions. The 85th Regular Session of the Legislature has concluded, and over 1000 laws, dealing with matters large and small were passed and signed by the Governor. Most of these new laws will take effect on September 1, 2017.
Can a RCRA Settlement Also Be Used as a Basis for a CERCLA Contribution Action?
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On August 10, the U.S. Court of Appeals for the Ninth Circuit decided the case of ASARCO LLC v. Atlantic Richfield Company, which involves the ongoing liability to clean up the East Helena Superfund Site, located “in and around an industrial area in Lewis and Clark County, Montana.” The Ninth Circuit, vacating the U.S. District Court in Montana’s grant of summary judgment, held that
[Ansarco’s] 1998 RCRA Decree did not resolve Asarco’s liability for at least some of its response obligations under that agreement. It therefore did not give rise to a right to contribution under CERCLA § 113(f)(3)(B). By contrast, the 2009 CERCLA Decree did resolve Asarco’s liability, and Asarco has brought a timely action for contribution under that agreement.
New Groundwater Contamination Case: TVA Ordered To Excavate Large Quantities of Coal Ash Waste
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On August 4, the U.S. District Court for the Middle District of Tennessee issued a very significant ruling in the case of Tennessee Clean Water Network, et al., v. Tennessee Valley Authority. The District Court has ordered the Tennessee Valley Authority (TVA) to excavate huge quantities of coal ash waste generated over many years by the TVA’s coal-fired power plant located in Gallatin, Tennessee, and adjacent to the Cumberland River.
Two large unlined surface impoundments have been used to store this waste: the Non-Registered Site and the Ash Pond Complex. According to the District Court, these waste pits are located in an area with “karst geological features, with sinking streams, shallow bedrock, and sinkholes.” These site characteristics caused the District Court to note that “it is difficult to imagine why anyone would choose to build an unlined ash pond in karst terrain immediately adjacent to a river.”
DC Circuit Weighs In on EPA’s Rule Establishing Renewable Fuel Requirements
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In Americans for Clean Energy, et al v. EPA, decided July 28, 2017, the U.S. Court of Appeals for the District of Columbia 
Circuit upheld the Environmental Protection Agency’s (EPA) 2015 rule establishing renewable fuel volume obligations for the years 2014 through 2017, with one exception: the court held that EPA cannot consider demand-side constraints in setting annual renewable fuel volumes.
Sixth Circuit Balances Rights of Forest Service and Rights of Private Property Owners Provided by Michigan Law
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Balancing the interests of the Federal Government as owner of thousands of acres surrounding Crooked Lake and private owners’ rights, on July 26, 
in a 2 to 1 ruling, the U.S. Court of Appeals for the Sixth Circuit ruled that the U.S. Forest Service exceeded its authority when issuing rules restricting recreational use of Crooked Lake. The federal legislation acquiring the property for the Federal Government contained a provision protecting “valid existing rights.” According to the Court of Appeals, relevant Michigan law established such an existing right, granting owners of property surrounding the lake the right to reasonable use of the lake, and this law must be respected. The case is Herr v. U.S. Forest Service, et al.
Second Circuit Follows Viking Pump Methodology to Calculate Total Insurance Liability for Environmental Cleanup Efforts Spanning Years and Policies
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On July 17, the U.S. Court of Appeals for the Second Circuit decided the case of Olin Corporation v. OneBeacon America Insurance Company, an environmental insurance recovery lawsuit. Olin Corporation has filed such lawsuits against several of its insurance carriers with respect to the contamination indemnification claims generated by Olin Corporation’s ongoing cleanups at its manufacturing facilities around the country. The Court of Appeals affirmed Olin Corporation’s right to recover and also agreed with OneBeacon America Insurance Company (OneBeacon) that the U.S. District Court for the Southern District of New York should have factored in the “prior insurance provision” of OneBeacon’s policies “thereby reducing the limits of its policies by those of any prior policies covering the same loss.”
SCOTUS Update: Environmental and Administrative Law Cases Decided in 2017
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The 2016 Term of the U.S. Supreme Court was fairly quiet, perhaps reflecting the fact that with only eight members, the 
Court needed a working consensus to handle its docket. The Court handed down seventy rulings, but only a few can be described as bearing on environmental or administrative law. A few rulings importantly concerned the operation of federal agencies and their enforcement authorities.
Third Circuit Rejects Oil Producers’ Security Interest Arguments In Midstream Provider’s Bankruptcy Proceeding
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On July 19, the U.S. Court of Appeals for the Third Circuit decided an important case involving oil and gas producers, intermediaries, and the ultimate purchasers of the oil and gas. The case, a bankruptcy matter, is In re: SemCrude, LP, et al.
The appellants, many oil and gas producers located in Texas, Oklahoma and Kansas, sold their product to SemCrude, L.P. (SemCrude), a “midstream” oil and gas service provider, who then sold oil to and traded oil futures with downstream oil purchasers. SemCrude’s unsuccessful futures trading activities cause the company to become insolvent and enter into bankruptcy. However, the producers had taken no steps to protect themselves in case SemCrude went bankrupt in contrast to the downstream purchasers. As a result, when SemCrude filed for bankruptcy, the downstream purchasers were paid in full, and more than a thousand producers were unpaid.
Pennsylvania Supreme Court Holds that Fiscal Legislation Can be Invalidated When Inconsistent with Environmental Rights Amendment
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In 1971, the citizens of Pennsylvania overwhelmingly approved a proposed amendment to the Commonwealth of Pennsylvania’s Constitution’s Declaration of Rights, now known as the “Environmental Rights Amendment” (ERA). The amendment provides:
The people have a right to clean air, pure water, and to the preservation of the natural, scenic, historic, and esthetic values of the environment. Pennsylvania’s public natural resources are the common property of all the people, including generations yet to come. As trustee of these resources, the Commonwealth shall conserve and maintain them for the benefit of all the people.
On June 20, 2017, the Supreme Court of Pennsylvania, in Pennsylvania Environmental Defense Foundation v. Commonwealth of Pennsylvania and Governor Tom Wolf, held , in a 4 to 32 ruling, that two 2009 fiscal laws passed by the legislature were facially unconstitutional under the ERA because they did not provide that all funds generated by royalties from the leasing of state lands for the exploration and production of oil and gas were wholly directed to the protection and preservation of the Commonwealth’s public natural resources.
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