Richmond, Va.–In a very complicated case the U.S. Court of Appeals for the Fourth Circuit on April 4 let stand an earlier U.S. District Court for the District of South Carolina at Charleston decision that found that PCS Nitrogen Inc. has some liability for cleanup costs at the site of a former Charleston fertilizer plant. The ruling apportioned cost recovery for pollution under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). The pollution dates back to the late 1880s to early 1990s and continued on into the 1970s when it was owned by Columbia Nitrogen Corp. (old CNC). The 43-acre site had several owners over the years. Ashley II of Charleston Inc., the current owner of part of the site, brought suit against PCS Nitrogen Inc. for cost recovery. While the courts found that neither successor “new” CNC and PCS ever owned or operated any portion of the Charleston site at issue in the appeal, they nevertheless, found that PCS was a corporate successor to the “old” CNC via the “new” CNC and thereby liable for response costs as a potentially responsible person (PRP) for the site. PCS acquired its interest in the “new” CNC mainly for the company’s Augusta, Ga., nitrogen plant. To date, the court said Ashley had incurred at least $197,000 in response costs. Liability was allocated 30 percent for PCS, and for others—45 percent Ross Development Corp., 16 percent Holcombe & Fair, 5 percent Ashley, 3 percent All Waste Tank Cleaning Inc., 1 percent Robin Hood Container Express Inc. and zero percent City of Charleston. PCS is reviewing the court’s decision and has not decided whether to appeal at this time.
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