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ASARCO LLC v. Atlantic Richfield Co.
2014 U.S. Dist. LEXIS 128123
| D. Mont. | 2014
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Background

  • ASARCO operated a lead smelter at the East Helena Site from 1888–2001; Atlantic Richfield’s predecessor ran a zinc plant at the site from 1927–1982.
  • EPA listed the Site on the NPL in 1984, triggering CERCLA cleanup framework.
  • A 1998 consent decree resolved EPA claims under RCRA and CWA, transferring site cleanup to the RCRA program.
  • In 2005 ASARCO filed Chapter 11; 2009 consent decree resolved ASARCO’s environmental liabilities at multiple sites, funding a custodial trust for East Helena.
  • ASARCO filed CERCLA contribution claim in 2012 seeking costs paid under the 2009 Decree; Atlantic Richfield argued the 3-year statute began with the 1998 Decree and that 2009 created no new obligations.
  • Court holds that the 1998 Decree triggered the 3-year statute and the 2009 Decree did not extend or create new obligations outside the 1998 Decree.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether §113(f)(3)(B) requires CERCLA liability to be expressly resolved ASARCO argues 1998 Decree did not resolve CERCLA liability, so statute not triggered Atlantic Richfield contends 1998 Decree triggered the 3-year clock for any “response action” §113(f)(3)(B) does not require CERCLA-specific resolution; Resolve some/all of a response action
Whether the 1998 Decree triggers the 3-year statute of limitations ASARCO asserts the 1998 Decree’s scope and timing start the clock Atlantic Richfield asserts the decree did trigger the clock for covered costs Yes; 1998 Decree triggered the limitations period for contribution claims within 3 years of entry
Whether the 2009 Decree creates new obligations outside the 1998 Decree ASARCO argues 2009 Decree entails off-site and groundwater remediation not covered by 1998 Atlantic Richfield contends 2009 Decree only funds pre-existing obligations No new obligations created beyond those in 1998; 2009 Decree does not broaden liability

Key Cases Cited

  • Consolidated Edison Co. of N.Y., Inc. v. UGI Utils., Inc., 423 F.3d 90 (2d Cir. 2005) (limits contribution rights to CERCLA-liability resolutions under §113(f)(3)(B))
  • W.R. Grace & Co.-Conn. v. Zotos Int'l., Inc., 559 F.3d 85 (2d Cir. 2009) (CERCLA liability resolution required for §113(f)(3)(B) claims under Grace)
  • Niagara Mohawk Power Corp. v. Chevron U.S.A., Inc., 596 F.3d 112 (2d Cir. 2010) (notes EPA's view on scope of §113(f)(3)(B) in context of Niagara Mohawk briefing)
  • Trinity Indus., Inc. v. Chicago Bridge & Iron Co., 735 F.3d 131 (3d Cir. 2013) (rejects requirement that §113(f)(3)(B) require CERCLA-specific resolution; aligns with plain text)
Read the full case

Case Details

Case Name: ASARCO LLC v. Atlantic Richfield Co.
Court Name: District Court, D. Montana
Date Published: Aug 26, 2014
Citation: 2014 U.S. Dist. LEXIS 128123
Docket Number: No. CV 12-53-H-DLC
Court Abbreviation: D. Mont.