Cose v. Getty Oil Company

4 F.3d 700 (9th Cir. 1993)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

D produced crude oil from wells. The oil was transported to its refinery. It was stored at the pumping stations in tanks and heated to reduce its viscosity. The oil was then pumped farther along the pipeline. The crude is stored and suspended sedimentary solids in the crude oil settle to the bottom of the tanks. Because water is heavier than oil, it separates from the oil and also collects at the bottom of the tank. The bottom layer of the tank is known as basic sediment and water, or 'crude oil tank bottoms.' Crude oil tank bottoms are typically drained from crude oil storage facilities and disposed of in nearby sumps. On the property at issue about once a week, the crude oil tank bottoms were drained and dumped. In May 1974, Ps purchased a 40-acre parcel of undeveloped land that was used as a dump site, from D for $ 50,000. When Ps purchased the property, a layer of topsoil concealed the crude oil tank bottom materials dumped on the property and hence, a reasonable inspection of the premises did not disclose the dumped materials. Ps discovered the presence of a 'subsurface asphalt or tar-like material' on the property in November 1987 when they undertook to develop the property for housing. After investigation and testing, they discovered the concentration level of Chrysene in crude oil in the region was determined to be 28.0 ppm. This level is considered hazardous by many regulatory agencies. Ps filed suit under CERCLA to recover 'response costs' needed to clean up the property. D moved for summary judgment. D claims that Ps could not prove that D had disposed of a 'hazardous substance' because CERCLA excludes from its 'hazardous substances' definition crude oil tank bottoms. The court agreed and granted summary judgment to D. Ps appealed.