ILNews

Civil penalty claim against BP to move forward

Back to TopCommentsE-mailPrintBookmark and Share

A U.S. District judge in Hammond has dismissed two counts against gas company BP Products North America, finding he has jurisdiction to hear the claims but deciding not to do so because of similar action ongoing elsewhere.

But U.S. Judge Philip P. Simon is keeping one count against BP alive, holding that he will decide a claim about the gas company starting construction on its Whiting oil refinery before it had obtained a proper state permit.

The 32-page order issued June 26 comes in the nearly one-year-old case of Natural Resources Defense Council v. BP Products North America, No. 2:08-cv-00204. The citizen environmental group alleges that BP violated the Clean Air Act by allowing too much pollution under the permitting it had received, as well as a claim of not getting the proper permit to modernize its Whiting plant. Part of the suit's request is to have BP fined up to $32,500 per day for construction days and for not having the proper permit.

BP filed a motion to dismiss in January, but Judge Simon decided to hear arguments in April before making a decision. After two months of analyzing the decision, the judge granted in part and denied in part the motion.

The court dismissed Counts I and III, which involve claims that BP had deceived state officials about how much pollution it would emit and, as a result, didn't obtain the proper permits that are needed when triggering federal pollution control requirements. Judge Simon found those claims are identical to the ones filed within the Indiana Department of Environmental Management's Office of Environmental Adjudication (OEA), the agency handling those types of environmental appeals that can then be taken to state court, if necessary.

In its arguments, BP said the federal court doesn't have jurisdiction over these claims because of those similar ones raised within the OEA. In his ruling, the judge analyzed two specific U.S. Supreme Court precedents on whether to use his jurisdiction or not - Burford v. Sun Oil Co., 319 U.S. 315 (1943), and Colorado River Water Conservancy Dist. v. U.S., 424 U.S. 800 (1976). Both provide frameworks for how courts should make abstention decisions, but they differ on how to do so; Burford involves special forums for regulation and adjudication, while Colorado River involves an inquiry about whether other litigation or actions can be considered "parallel."

"While I am satisfied that the Court has jurisdiction, I nevertheless think this case really presents a call to be made by the expert environmental agencies that Indiana has selected for the job," Judge Simon wrote, finding that both abstention precedents apply but that Colorado River is more applicable here.

"In sum, the NRDC's suit and the OEA action are parallel proceedings, and my evaluation of the relevant factors leads me to the strong belief that extraordinary circumstances exist here," he wrote. "Despite the starting balance being 'heavily weighed in favor of the exercise of jurisdiction,' I believe abstention under the Colorado River doctrine is appropriate."

But the judge kept the second count in his court's control, deciding that the statute specifically allows for suits seeking "appropriate civil penalties" and that doesn't conflict with the pending OEA action.

A pre-trial conference is set for Aug. 20 before Magistrate Judge Paul Cherry, according to the federal docket online.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. The ADA acts as a tax upon all for the benefit of a few. And, most importantly, the many have no individual say in whether they pay the tax. Those with handicaps suffered in military service should get a pass, but those who are handicapped by accident or birth do NOT deserve that pass. The drivel about "equal access" is spurious because the handicapped HAVE equal access, they just can't effectively use it. That is their problem, not society's. The burden to remediate should be that of those who seek the benefit of some social, constructional, or dimensional change, NOT society generally. Everybody wants to socialize the costs and concentrate the benefits of government intrusion so that they benefit and largely avoid the costs. This simply maintains the constant push to the slop trough, and explains, in part, why the nation is 20 trillion dollars in the hole.

  2. Hey 2 psychs is never enough, since it is statistically unlikely that three will ever agree on anything! New study admits this pseudo science is about as scientifically valid as astrology ... done by via fortune cookie ....John Ioannidis, professor of health research and policy at Stanford University, said the study was impressive and that its results had been eagerly awaited by the scientific community. “Sadly, the picture it paints - a 64% failure rate even among papers published in the best journals in the field - is not very nice about the current status of psychological science in general, and for fields like social psychology it is just devastating,” he said. http://www.theguardian.com/science/2015/aug/27/study-delivers-bleak-verdict-on-validity-of-psychology-experiment-results

  3. Indianapolis Bar Association President John Trimble and I are on the same page, but it is a very large page with plenty of room for others to join us. As my final Res Gestae article will express in more detail in a few days, the Great Recession hastened a fundamental and permanent sea change for the global legal service profession. Every state bar is facing the same existential questions that thrust the medical profession into national healthcare reform debates. The bench, bar, and law schools must comprehensively reconsider how we define the practice of law and what it means to access justice. If the three principals of the legal service profession do not recast the vision of their roles and responsibilities soon, the marketplace will dictate those roles and responsibilities without regard for the public interests that the legal profession professes to serve.

  4. I have met some highly placed bureaucrats who vehemently disagree, Mr. Smith. This is not your father's time in America. Some ideas are just too politically incorrect too allow spoken, says those who watch over us for the good of their concept of order.

  5. Lets talk about this without forgetting that Lawyers, too, have FREEDOM OF SPEECH AND ASSOCIATION

ADVERTISEMENT