Too little, too late: Judge denies enviros Exxon case role


We’ve reported before on the failed attempt by environmental groups and a state senator to intervene in the environmental damages settlement between New Jersey and ExxonMobil.

  
But we thought you also might enjoy the summary of the issue that Cole Schotz attorney Emily Lamond provided yesterday to readers of the firm’s Environmental Litigation blog. 

A New Jersey state judge ruled on Monday that eight environmental groups and a New Jersey state senator cannot intervene to challenge the $225 million settlement with Exxon Mobil proposed by the New Jersey Department of Environmental Protection (NJDEP) to end litigation lasting more than a decade and originally alleging more than $8 billion in natural resource damages.

The environmental groups and New Jersey Senator Ray Lesniak (D-Union) sought to urge the court to reject the “sweetheart deal” between Exxon Mobil and Christie’s administration and, if the court approved the settlement, to appeal the approval as a party to the litigation. However, Burlington County Superior Court

Judge Michael J. Hogan denied the motions to intervene, ruling that they did not demonstrate the adversity of interest, collusion or nonfeasance necessary to justify their intervention. Instead, the court found that NJDEP adequately represents their interests and that the public comment period provided an adequate forum to voice their objections to the settlement. Judge Hogan also ruled that the motions failed on the timeliness factor, pointing out that the intervenors were aware of the lawsuit since it was filed in 2004 and “have known of their interests in its outcome for eleven years.”

The proposed settlement has been subject to extensive criticism and outcry since NJDEP released the draft consent judgement on April 6, 2015. New Jersey’s environmental statute commonly known as the Spill Act requires a public comment period for at least thirty days for proposed settlements under the statute. Given the controversy and overwhelming public attention, NJDEP doubled the public comment period and collected comments for sixty days. NJDEP received approximately 16,000 public comments – most in opposition to the settlement – by the time the comment period ended on June 5, 2015. The court may also consider the comments in determining if the settlement is fair, reasonable and in the public interest.

Keep in mind that the court has not yet passed judgement on the fairness or reasonableness of the proposed settlement – the hearing for that decision is currently scheduled for Tuesday, July 21, 2015. That is, unless, the intervenors file an appeal of Judge Hogan’s decision on their motions to intervene in the next few days and the hearing is delayed pending that appeal.

Hat tip to Tom Johnson of NJ Spotlight whose story on the case yesterday, included a link to the judge’s full 35-page decision.

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Pa. Governor, House Speaker lock horns over fracking tax

Pa. Governor Tom Wolf

Gov. Tom Wolf emerged from closed-door budget talks Monday saying he was “stunned” by what he called “the continued intransigence” of a top Republican legislator opposed to a new tax on natural-gas drillers, Angela Couloumbis reports in the Philadelphia Inquirer.
Wolf said House Speaker Mike Turzai (R., Allegheny), one of the legislature’s most vocal opponents of the severance tax proposal, “would rather do good things for his friends in the oil and gas industry than help find a way to fund schools.”


“We are not going to have a good future in Pennsylvania until we figure out how to fund schools,” the governor said.
House Speaker Mike Turzai

Wolf said House Speaker Mike Turzai (R., Allegheny), one of the legislature’s most vocal opponents of the severance tax proposal, “would rather do good things for his friends in the oil and gas industry than help find a way to fund schools.”

In an interview Monday, Turzai called Wolf’s comments – and recent propensity for attacking individual legislators – “petty and childish.”

Pa. Governor, House Speaker lock horns over fracking tax Read More »

Judge says no to enviros intervention in Exxon settlement

A Superior Court judge on Monday denied attempts by a coalition of environmental groups and a Democratic state lawmaker to intervene in a pollution settlement between Gov. Chris Christie’s administration and Exxon Mobil, S. P. Sullivan writes today in NJ.com.

The decision comes as the judge prepares to rule on the $225 million deal, which administration officials have defended as the largest of its kind in New Jersey history.

Critics, including state Sen. Ray Lesniak (D-Union) and a collection of environmental groups, have slammed the deal because at trial, the state had claimed it was owed $8.9 billion as compensation for Exxon’s decades of pollution at two North Jersey refineries.

They filed two separate motions to intervene in the case last month, seeking to become parties to the suit.

Writing that such a move would “unduly delay” the conclusion of the decade-old lawsuit, Judge Michael Hogan ruled the groups had not proven the state Department of Environmental Protection had abandoned their obligation to serve the public interest, as they had argued in court on Friday.

In order to intervene, they would have had to have shown attorneys for the state had colluded with Exxon in drafting the deal, which resolves much of Exxon’s liability for contamination at more than a dozen industrial sites and hundreds of gas stations around the state.

But the parties, “have done nothing to overcome the presumption of adequate representation that arises when they share the same ultimate goal with an original party.” Hogan wrote. “They have not demonstrated collusion, nonfeasance, or lack of notice of the opportunity for public comments.”


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NY ghost ship graveyard becomes a sightseeing destination



On the Arthur Kill along New York’s Staten Island "right colored kayaks bobbed around the rotted hull of a World War II submarine chaser that was rusted into a ghostly shell and lapped by water as salty as tears.


"The kayaks paddled by tourists then glided a few feet away to a decayed, partly submerged ferry, part of the "Graveyard of Ships" tour, which winds through a marine salvage yard in New York City that is the final resting place for dozens of working boats and military vessels."

In story for Reuters, Barbara Goldberg writes:

Once considered eyesores to steer clear of, some junkyards, underwater scrap yards and landfills are being recast as sight-seeing attractions.

Sometimes dubbed "ruin tourism" or even "ruin porn," dramatic photographs online showing deteriorated boats emerging at low tide or automobile carcasses swallowed up by lush moss are enticing the public to see the decaying sites for themselves.


"These sites are often appreciated for their authenticity or novelty value as a contemporary ruin," said Karl Kullmann, who teaches landscape architecture, environmental planning and urban design at the University of California at Berkeley.


Ruin tourism draws visitors to such famously dilapidated landmarks as the Michigan Central Train Depot and the former Packard plant in Detroit. In White, Georgia, a crumbling repository of more than 4,000 discarded automobiles encased in trees and kudzu vines known as Old Car City USA draws paying crowds from around the world. In Hot Springs, Arkansas, cycling enthusiasts flock to a re-purposed landfill that features mountain bike trails known as "Tour-de-Trash."

"This type of tourism attracts people interested in the detritus of capitalism," said Rebecca Kinney, assistant professor in the Department of Popular Culture and School of Cultural and Critical Studies at Bowling Green State University.

The Detroit structures are "decades-old reminders of the precipitous rise and fall of industry," she said.

Read the full story here


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Pennsy’s Governor and frackers find plenty to fight over

The shale gas industry and allies of Gov. Wolf ratcheted up
rhetoric this week over a key component of the state’s stalemated budget
debate: Imposition of a severance tax on natural gas production, Andrew Maykuth
reports in the Philadelphia Inquirer.

The Marcellus Shale Coalition says the proposed tax is the
harshest in a series of hostile actions the Wolf administration has taken
against the gas industry, one of the state’s better-performing economic sectors
in the last decade.

“Since Gov. Wolf was elected, he has been talking about this
industry being successful, but his actions really don’t match the words,”
said David Spigelmyer, president of the coalition. He characterized Wolf’s
manner as a “my way or the highway” approach.

The Democratic governor is calling the severance tax a mechanism
to fund schools. The tax on gas production would generate $1 billion in its
first full year, most of which would go to education.
But $225 million
of gas-tax revenue would replace the current shale impact fee, which is
assessed on a per-well assessment and mostly goes to drilling communities.
About $10 million of the severance tax would pay for more drilling enforcement.

An additional
$55 million of the severance tax revenue would pay off a proposed $675
million state 
economic development bond issue, of which $225 million would be
allotted to energy projects, mostly renewable energy.



The shale-gas
coalition objects that the gas industry would subsidize competing green-energy
projects.

“A bill of
goods has been sold here that this is all about school funding, and frankly
it’s more about picking winners and losers and funding a broader environmental
activist agenda,” Spigelmyer said.

Pennsylvania Gov. Tom Wolf

The governor’s
team says the trade group does not speak for the entire industry. John Hanger,
Wolf’s policy chief, said some industry executives recognize the need for a
severance tax to spread shale-gas benefits across the state.

“We had
more than a few companies coming to Pennsylvania who were amazed that we had no
[shale gas] severance tax,” Hanger said of his time as environment
secretary in the Rendell administration. “Privately, they thought
Pennsylvania was being a chump for not having one.”

The sniping is
occurring amid a surge in rival ad campaigns over the state budget standoff.
Wolf on June 30 vetoed a Republican budget that did not include a severance
tax. Until the impasse is resolved, the state has no budget.

An affiliate of
the Democratic Governors Association, whose biggest source of funding is
public-employee unions, last week launched commercials bashing the vetoed GOP
plan as letting the oil and gas industry off the hook, underfunding education,
and deepening the state’s deficit.

On Monday,
Americans for Prosperity, an advocacy group founded by the billionaire energy
executives Charles and David Koch, kicked off a radio campaign that says Wolf
is “cooking up schemes to hike your taxes.”

The shale
coalition says the severance tax is only one of several unfriendly actions Wolf
has taken.

Wolf remade the Oil and Gas Technical Advisory Board, not to the industry’s
liking. It imposed stricter gas-drilling regulations, which the industry says
would raise costs without increasing environmental protections.

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