Pope Res., LP v. Dep’t of Nat. Res.

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Between 1853 and 1995, the Port Gamble Bay facility in Kitsap County, Washington operated as a sawmill and forest products manufacturing facility by Pope & Talbot and its corporate predecessors. Close to four decades after Puget Mill Co., predecessor to Pope & Talbot, began operating the sawmill, the legislature authorized the disposal of certain occupied state-owned aquatic lands, including the tidal lands within Port Gamble Bay. The Washington Department of Natural Resources (DNR) issued the first lease for Pope & Talbot's use of the Port Gamble Bay submerged lands in 1974. In 1985, Pope & Talbot transferred 71,363 acres of its timberlands, timber, land development, and resort businesses in the State of Washington to Pope Resources, LP, which in turn leased the mill area to Pope & Talbot. Pope & Talbot ceased mill operations in 1995. Pope sought to develop their Port Gamble holdings for a large, high-density community with a marina. However, the Port Gamble site was contaminated, in part from the operation of sawmill buildings to saw logs for lumber, operation of chip barge loading facilities and a log-transfer facility, particulate sawmill emissions from wood and wood waste burning, in-water log rafting and storage, and creosote treated pilings placed throughout the bay to facilitate storage and transport of logs and wood products. After entering into a consent decree with the Washington Department of Ecology in 2013 for remediation of portions of the site exposed to hazardous substances, Pope/OPG filed a complaint in 2014 seeking a declaration that DNR was liable for natural resources damages and remedial costs, and for contribution of costs. The Superior Court granted summary judgment in favor of DNR in 2016. The Court of Appeals reversed, holding that DNR was an "owner or operator" with potential liability under the Washington Model Toxics Control Act (MTCA). DNR appealed, and the Washington Supreme Court reversed, finding DNR was neither an "owner" nor an "operator" of the Port Gamble Bay facility for purposes of MTCA. View "Pope Res., LP v. Dep't of Nat. Res." on Justia Law