Superfund Liability Attaches for Traces of Gasoline in Water

Environmental due diligence is a critical component of any property transaction where potential environmental risks are a concern—minimize risks and protect yourself from...

By Peter Hayes

An environmental contractor working for the state of Texas can’t escape superfund liability for the disposal of well water containing traces of gasoline, a federal trial court ruled June 29 ( USOR Site PRP Grp. v. LEI Rone Eng’rs, Ltd. , 2017 BL 226362, S.D. Tex., No. 4:14-CV-2441, 6/29/17 ).

The superfund petroleum exclusion, which exempts parties from liability for petroleum spills, doesn’t apply, the U.S. District Court for he Southern District of Texas said.

The court also rejected the contractor’s argument that it is immune from suit because it was working under a contract with the state.

The contractor, LEI Rone Engineers Ltd. is one of hundreds of parties that sent material to the U.S. Oil Recovery disposal site.

A group of parties that settled their liability for contamination at the site, USOR Site PRP Group, filed the superfund contribution claim against LEI Rone.

Judge Kenneth M. Hoyt issued the ruling.

The Justis Law Firm LLC in Overland Park, Kan., represents USOR Site PRP Group.

Law Offices of Brad Jackson in Dallas represent LEI Rone.

For More Information

The opinion is available at http://src.bna.com/qoR.

Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.

Try Environmental Due Diligence Guide™ & Environmental Due Diligence Guide Report™