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HomeMy WebLinkAboutDSHW-2025-001181 1 SL_7627807.1 DENTONS DURHAM JONES PINEGAR P.C. Bradley R. Cahoon (5925) Tyler R. Cahoon (16412) Cole P. Crowther (16432) 111 South Main Street, Suite 2400 Salt Lake City, Utah 84111 (801) 415-3000 brad.cahoon@dentons.com tyler.cahoon@dentons.com cole.crowther@dentons.com Attorneys for Promontory Point Resources, LLC BEFORE THE EXECUTIVE DIRECTOR OF THE UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY In re matter of: Promontory Point Resources, LLC SW416 PROMONTORY POINT RESOURCES, LLC’S MOTION TO SUPPLEMENT THE ADMINISTRATIVE RECORD By Promontory Point Resources, LLC January 23, 2025 Pursuant to Utah Code § 19-1-301.5(9)(c)(ii) and Utah Admin. Code R305-7-209(1), Petitioner Promontory Point Resources, LLC (“PPR”), through undersigned counsel, submits this Motion to Supplement the Administrative Record (“Motion”).1 1 On November 5, 2024, PPR filed its initial Motion to Supplement the Administrative Record, seeking to supplement the record with (i) certain waste contracts between PPR and Utah companies (“Local Waste Contracts”), and (ii) the Declaration of Lauren Chauncey (“Chauncy Declaration”) regarding the legislative history of Utah Code § 19-6-108. On January 23, 2025, PPR withdrew its initial motion because the Local Waste Contracts and the Chauncey Declaration are no longer necessary. The administrative record, which the Director served after PPR filed its initial motion, already reflects that PPR has waste disposal contracts with local Utah businesses that will become effective upon approval of the Commercial Application (defined below). (See PPRPFR004836) (“PPR also has contracts with local businesses to haul several hundred thousand tons of municipal solid waste annually for disposal at the Landfill once it is changed to a Class V.”).) Moreover, the Chauncy Declaration is unnecessary because the Director included the legislative history of Utah Code § 19-6-108 in the administrative record. (See id. 000001-748.) To be clear, however, as set forth in PPR’s Petition for Review, the legislative history of Utah Code § 19-6-108 is irrelevant because the statutory language is clear and unambiguous. But even if the legislative history was relevant, it is unhelpful. But it does confirm the legislature was worried about violating the dormant Commerce Clause with the amendment to the statute. 2 SL_7627807.1 INTRODUCTION PPR is the owner of Promontory Point Landfill, currently permitted as a for-profit Class I landfill, located in Box Elder County, Utah. In 2020, PPR filed an application to convert its landfill from a Class I landfill to a Class V commercial landfill (“Commercial Application”). On October 7, 2024, the Director (“Director”) of the Division Waste Management and Radiation Control, Utah Department of Environmental Quality issued an order denying PPR’s Commercial Application. The Director’s sole basis for denying the Commercial Application was that PPR did not satisfy Utah Code § 19-6-108(10)(b)(i) because PPR did not demonstrate a need in the state for additional physical landfill capacity. But the Director’s interpretation of Subsection (10)(b)(i), as applied to PPR by the Director, violates the dormant Commerce Clause of the United States Constitution. Put another way, by rejecting the Commercial Application based on an interpretation of Subsection 10(b)(i) that considers only physical airspace capacity, without regard to location, landfill quality, or cost-of-disposal, the Director has imposed a substantial burden on interstate commerce that does not advance putative local benefits. PPR therefore seeks to supplement the administrative record with a Letter (defined below) and Form Contract (defined below) from Idaho and Wyoming companies, expressing interest in disposing solid waste at the PPR landfill. The Letter and Form Contract are direct evidence that the Director has imposed a substantial burden on interstate commerce that does not advance putative local benefits. 3 SL_7627807.1 RELIEF REQUESTED AND GROUNDS FOR RELIEF PPR respectfully requests that the administrative record be supplemented with the Letter and Form Contract. Good cause exists for supplementing the record with these documents because the documents were not received until January 21, 2025 (long after PPR submitted its public comment) and doing so is in the interest of justice and necessary for resolution of the issues. The Letter and Form Contract demonstrate that the Director’s interpretation of Subsection (10)(b)(i) violates the dormant Commerce Clause, and so that interpretation should be avoided. This is a central issue on appeal. The Motion therefore should be granted. STATEMENT OF FACTS Pursuant to Utah Rule of Civil Procedure 10(c), PPR adopts and incorporates by reference all Procedural History and Facts set forth in its Petition for Review filed on November 5, 2024. In addition to those facts, PPR includes the following facts: 1. On January 21, 2025, Waste Connections of Utah, Inc., PSI Environmental Services, Inc., and Wyoming Environmental Services, Inc., sent a letter to PPR, expressing interest to enter into a definitive Master Disposal Services Agreement with PPR (“Letter”, attached as Exhibit 1), which would govern the disposal of out-of-state non-hazardous solid waste at the PPR landfill. 2. A form Master Disposal Services Agreement (“Form Contract”, attached as Exhibit 2) was enclosed with the Letter. ARGUMENT In a special adjudicative proceeding, the administrative record “consists of [, among other things,] . . . information supplementing the record under Section 19-1-301.5(9)(c) or R305-7- 4 SL_7627807.1 210.” Utah Admin. Code R305-7-209(1). Although “there is a rebuttable presumption against supplementing the record,” “a party may move to supplement the record . . . with technical or factual information.” Utah Code Ann. § 19-1-301.5 (9)(b), (c). The Administrative Law Judge may grant a motion to supplement the record “if the moving party proves that: (A) good cause exists for supplementing the record; (B) supplementing the record is in the interest of justice; and (C) supplementing the record is necessary for resolution of the issues.” Id. Each of these factors supports supplementing the record with the Letter and Form Contract. First, the Letter and Form Contract contain factual information related to the Director’s interpretation of Subsection (10)(b)(i), as applied to PPR by the Director, which interpretation violates the dormant Commerce Clause. Second, good cause exists for supplementing the record because the Letter and Form Contract were not received until January 21, 2025, and were therefore unavailable at the time PPR submitted its public comment. Third, it is in the interest of justice to supplement the record with the Letter and Form Contract, considering their direct relevance to the Director’s violation of the dormant Commerce Clause and a main issue on appeal. Fourth, supplementing the record with the Letter and Form Contract helps resolve an important issue—whether Director’s interpretation of Subsection (10)(b)(i), as applied to PPR by the Director, violates the dormant Commerce Clause and should be avoided. Therefore, PPR should be permitted to supplement the record with the Letter and Form Contract. CONCLUSION Based on the foregoing, PPR respectfully requests the Motion be granted and that it be allowed to supplement the administrative record with the Letter and Form Contract. DATED this 23rd day of January 2025. 5 SL_7627807.1 DENTONS DURHAM JONES PINEGAR P.C. /s/ Bradley R. Cahoon Bradley R. Cahoon Tyler R. Cahoon Cole P. Crowther Attorneys for Promontory Point Resources, LLC CERTIFICATE OF SERVICE I hereby certify that on January 23, 2025, I caused a true and correct copy of the foregoing to be served on all counsel of record via email: Craig Anderson Assistant Attorney General for Executive Director craiganderson@agutah.gov Raymond Wixom Assistant Attorney General for Director rwixom@agutah.gov Brenden K. Catt Assistant Attorney General bcatt@agutah.gov Douglas J. Hansen Director of Division of Waste Management and Radiation Control djhansen@utah.gov Administrative Proceedings Records Officer Environment Division DEQAPRO@utah.gov Richard D. McKelvie Administrative Law Judge richard.mckelvie@gmail.com /s/Tyler Cahoon 6 SL_7627807.1 EXHIBIT 1 7 SL_7627807.1 EXHIBIT 2 {00119460.DOCX.} © Allos Environmental, Inc. (6/2017) Page 1 Master Disposal Services Agreement _7078369.1 MASTER DISPOSAL SERVICES AGREEMENT This Master Disposal Services Agreement (this “Agreement”) is made as of date set forth on the signature page below by and between ______________________ (collectively, “Customer”) and PPR Landfill, LLC (“the Company”). This Agreement is effective on __________________,20____ (“Effective Date”). The Customer and the Company may each be referred to as a “party” or collectively as the “parties.” This Agreement consists of the general terms and conditions set forth below, as well as any specific service terms set forth in Statement(s) of Work described in Exhibit A, and/or in Confirmation Letter(s) and/or Profile Sheet(s) that may be entered into from and after the date hereof from time to time, each of which are incorporated by reference into this Agreement. GENERAL TERMS AND CONDITIONS 1. TERM OF AGREEMENT. The initial term of this Agreement shall be 36 months, commencing on the Effective Date set forth below (the “Initial Term”). This Agreement shall automatically re- new thereafter for additional terms of twelve (12) months (each a “Renewal Term”) unless either party gives to the other party writ- ten notice of termination at least ninety (90) days prior to the ter- mination of the then-existing term; provided however, that the terms and conditions of this Agreement shall remain in full force and effect, in accordance with its terms, with respect to any uncom- pleted or unfinished Service provided for in an Exhibit A, Confir- mation Letter and/or Profile Sheet until such Service is completed. 2. SERVICES PROVIDED. The Company will provide Cus- tomer with landfill disposal services (“Services”) at Company’s Promontory Point Landfill located near Ogden, Utah (the “Land- fill”) and related to Customer’s non-hazardous solid waste and/or special waste (collectively "Materials") as described on Exhibit A and/or Confirmation Letter(s) and/or applicable Profile Sheets. “Solid Waste” means garbage, refuse and rubbish including those which are recyclable but excluding Special Waste and Hazardous Waste. “Special Waste” may include industrial process wastes, as- bestos containing material, petroleum contaminated soils, treated/de-characterized wastes, incinerator ash, medical wastes, demolition debris and other materials requiring special handling in accordance with applicable federal, state, provincial or local laws or regulations. “Hazardous Waste” means any toxic or radioactive substances, as such terms are defined by applicable federal, state, pro- vincial or local laws or regulations. When Company handles special waste for Customer, Customer will provide Company with a Gen- erator's Waste Profile Sheet ("Profile Sheet") describing all special waste, and provide a representative sample of such waste on re- quest. In the event this Agreement includes transportation by Com- pany, Customer shall, at the time of tender, provide to Company accurate and complete documents, shipping papers or manifests as are required for the lawful transfer of the special waste under all applicable federal, state or local laws or regulations. Tender or de- livery of Materials shall be considered nonconforming if not in ac- cordance with this paragraph. Unless specifically agreed otherwise, it is anticipated and understood that Company will not provide any transportation services under this Agreement, and that Customer (or its contractors) shall be solely responsible for transporting all Materials to the Landfill. 3. Reserved. 4. CUSTOMER WARRANTIES. Customer hereby represents and warrants that all waste material delivered by Customer to Com- pany shall be in accordance with waste descriptions given in this Agreement and shall not be or contain any Nonconforming Waste. “Nonconforming Waste” means: (a) non-hazardous Solid Waste that contains regulated Special Waste that is not in conformance with the description of the waste in Exhibit A, the Confirmation Letter(s) or the Profile Sheet incorporated herein, or Hazardous Waste; (b) waste that is not in conformance with the description of the waste in Exhibit A, the Confirmation Letter(s) or the Profile Sheet incorporated herein; (c) waste that is or contains any infec- tious waste, radioactive, volatile, corrosive, flammable, explosive, biomedical, biohazardous material, regulated medical or hazardous waste or toxic substances, as defined pursuant to or listed or regu- lated under applicable federal, state or local law, except as stated on the Profile Sheet or Confirmation Letter; or (d) waste that is pro- hibited from being received, managed or disposed of at the desig- nated disposal facility by federal, state or local law, regulation, rule, code, ordinance, order, permit or permit condition. Customer (in- cluding its subcontractors) represents and warrants that it will com- ply with all applicable laws, ordinances, regulations, orders, per- mits or other legal requirements applicable to the Materials. 5. INSPECTION; REJECTION OF WASTE. Title to and liabil- ity for Nonconforming Waste shall remain with Customer at all times. Company shall have the right to inspect, analyze or test any Materials delivered by Customer. If Customer’s Materials contain Nonconforming Waste, Company can, at its option, reject Noncon- forming Waste and return it to Customer or require Customer to re- move and dispose of the Nonconforming Waste at Customer’s ex- pense. Customer shall indemnify, hold harmless (in accordance with Section 11) and pay or reimburse Company for any and all costs, damages and/or fines incurred as a result of or relating to Customer's tender or delivery of Nonconforming Waste, including any costs of inspection, testing and analysis. 6. SPECIAL HANDLING; TITLE. If Company elects to handle, rather than reject, Nonconforming Waste, Company shall have the right to manage the same in the manner deemed most appropriate by Company given the characteristics of the Nonconforming Waste. Company may assess and Customer shall pay additional fees associated with the tender or delivery of Nonconforming Waste, including, but not limited to, special handling or disposal {00119460.DOCX.}© Allos Environmental, Inc. (1/2020) Page 2 Master Infrastructure & Materials Management Services & Disposal Agree-ment _7078369.1 charges, and costs associated with different quantities of waste, dif- ferent delivery dates, modifications in operations, specialized equipment, and other operational, environmental, health, safety or regulatory requirements. Title to and ownership of acceptable Ma- terials shall transfer to Company upon delivery of such Materials. 7. COMPANY WARRANTIES. Company hereby represents and warrants that: (a) Company will manage the Materials in a safe and workmanlike manner in compliance with all valid and applicable federal, state and local laws, ordinances, orders, rules and regula- tions; and (b) it will use disposal facilities that have been issued permits, licenses, certificates or approvals required by valid and ap- plicable laws, ordinances and regulations necessary to allow the fa- cility to accept, treat and/or dispose of the Materials. Except as pro- vided herein, Company makes no other warranties and hereby dis- claims any other warranty, whether implied or statutory. 8. LIMITED LICENSE TO ENTER. When a Customer is trans- porting Materials to a Company facility, Customer and its subcon- tractors shall have a limited license to enter a disposal facility for the sole purpose of off-loading Materials at an area designated, and in the manner directed, by Company. Customer shall, and shall en- sure that its subcontractors, comply with all rules and regulations of the facility, as amended. Company may reject Materials, deny Customer or its subcontractors entry to its facility and/or terminate this Agreement in the event of Customer’s or its subcontractors’ failure to follow such rules and regulations. 9. EQUIPMENT. To the extent Company provides Customer with access to or use of any Company equipment in connection with the Services (“Equipment”), then any such Equipment shall remain the property of Company; however, Customer shall have the care, custody and control of the Equipment while in Customer’s (or its subcontractor’s) possession. Customer and its subcontrac- tors shall not alter the Equipment, shall use the Equipment only for its intended purpose, and shall protect the Equipment against dam- age, theft, destruction, graffiti, or misuse. Upon completion of the Services or termination of this Agreement, Customer shall release the Equipment to Company in the condition in which it was pro- vided; normal wear and tear excepted. 10. CHARGES AND PAYMENTS. Customer shall pay the rates set forth on Exhibit A or a fully signed Confirmation Letter, which may be modified as provided in this Agreement. Company may in- crease the charges to reflect increases in the Consumer Price Index for the municipal or regional area in which the Services are ren- dered. Increases in charges for reasons other than as provided above require the consent of Customer evidenced in writing. All rate ad- justments as provided above and in Paragraph 5 shall take effect upon notification from Company to Customer. Customer shall pay the rates in full within 30 days of receipt of each invoice from Com- pany. Customer shall pay a late fee on all past due amounts accru- ing from the date of the invoice at a rate of eighteen percent (18%) per annum or, if less, the maximum rate allowed by law. 11. INDEMNIFICATION. The Company agrees to indemnify, defend and save Customer harmless from and against any and all liability (including reasonable attorneys fees) which Customer may be responsible for or pay out as a result of bodily injuries (including death), property damage, or any violation or alleged violation of law, to the extent caused by Company’s breach of this Agreement or by any negligent act, negligent omission or willful misconduct of the Company or its employees, which occurs (1) during the man- agement of Customer’s Materials by Company, or (2) as a result of the disposal of Customer’s Materials, after the date of this Agree- ment, in a facility owned or operated by a subsidiary or affiliate of Allos Environmental, Inc., provided that the Company’s indemni- fication obligations will not apply to occurrences involving Non- conforming Waste. Customer agrees to indemnify, defend and save the Company, and its subsidiaries, affiliates, officers, directors, employees, repre- sentatives and agents (collectively the “Company Indemnitees”) harmless from and against any and all liability (including reason- able attorneys fees) which the Company Indemnitees may be re- sponsible for or pay out as a result of bodily injuries (including death), property damage, or any violation or alleged violation of law to the extent caused by Customer’s breach of this Agreement or by any negligent act, negligent omission or willful misconduct of the Customer or its employees, agents or contractors in the per- formance of this Agreement or Customer’s use, operation or pos- session of any Equipment furnished by the Company. Neither party shall be liable to the other for consequential, inci- dental or punitive damages arising out of the performance of this Agreement. 12. UNCONTROLLABLE CIRCUMSTANCES. Except for the obligation to make payments hereunder, neither party shall be in default for its failure to perform or delay in performance caused by events beyond its reasonable control, including, but not limited to, strikes, riots, imposition of laws or governmental orders, fires, acts of God, and inability to obtain equipment, permit changes and reg- ulations, restrictions (including land use) therein, and the affected party shall be excused from performance during the occurrence of such events. 13. ASSIGNMENT. This Agreement shall be binding on and shall inure to the benefit of the parties and their respective successors and assigns. 14. TERMINATION. Company may immediately terminate this Agreement, (a) in the event of Customer’s breach of any term or provision of this Agreement, including failure to pay on a timely basis, that remains uncured 5 days following receipt of written no- tice describing the breach or (b) if Customer becomes insolvent, the subject of an order for relief in bankruptcy, receivership, reorgani- zation dissolution, or similar law, or makes an assignment for the benefit of its creditors or if Company deems itself insecure as to payment (“Default”). Notice of termination shall be in writing and deemed given when delivered in person or by certified mail, post- age prepaid, return receipt requested. 15. ENTIRE AGREEMENT. This Agreement represents the en- tire understanding and agreement between the parties relating to the management of Materials and supersedes any and all prior agree- ments, whether written or oral, between the parties regarding the same. 16. MISCELLANEOUS. (a) The prevailing party will be entitled to recover reasonable fees and court costs, including attorneys' fees, in interpreting or enforcing this Agreement. In the event Customer fails to pay Company all amounts due hereunder, Company will be entitled to collect all reasonable collection costs or expenses, in- cluding reasonable attorneys fees, court costs or handling fees for returned checks from Customer. (b) The validity, interpretation and performance of this Agreement shall be construed in accordance with the laws of the state of Utah and jurisdiction and venue shall be held in the state and federal courts in Utah. (c) If any provision of this Agreement is declared invalid or unenforceable, then such {00119460.DOCX.}© Allos Environmental, Inc. (1/2020) Page 3 Master Infrastructure & Materials Management Services & Disposal Agree-ment _7078369.1 provision shall be deemed severable from and shall not affect the remainder of this Agreement, which shall remain in full force and effect. (d) Customer’s payment obligation for Services and the Warranties and Indemnification made by each party shall survive termination of this Agreement. (e) Any written notice will be deemed effective if delivered by personal delivery or overnight courier or sent by certified mail, or by email (with evidence of elec- tronic delivery), to the parties at the addresses set forth in the sig- nature block below. (f) This Agreement may be executed in multi- ple counterparts, each of which shall be deemed an original, but which when taken together shall constitute one integrated instru- ment. IN WITNESS WHEREOF, this Agreement has been signed by the authorized representatives of the parties on [insert date] and is effective as of the Effective Date. COMPANY: PPR LANDFILL, LLC CUSTOMER: By: By: Name: Name: Title: Title: Address: 298 24th Street, Suite 170 Address: Ogden, UT 84401 Email: Email: Phone: Phone: {00119460.DOCX.} _7078369.1 MASTER DISPOSAL SERVICES AGREEMENT STATEMENT OF WORK EXHIBIT A The Statement of Work described in this Exhibit A (this “SOW”) is being entered into and is made a part of that certain Master Disposal Services Agreement between Company and Customer (the “Agreement”) and is subject to the General Terms and Con- ditions set forth in the Agreement. This SOW may be supplemented by the Confirmation Letter(s) and the Profile Sheet(s) refer- enced herein or attached hereto. General Description of Services: Disposal services only for all conforming waste volumes (estimated to be up to ________ tons per year) in accordance with the Agreement. 2024 disposal rate for non-hazardous solid waste is $________/ton. Pricing will be adjusted based on an annual CPI adjustment based on the US Bureau of Labor Statistices Consumer Price Index for All Urban Consumers – West (Series ID CUUR0400SA0). Annual pricing adjustments will occur on January 1st each year. Special Waste disposal services will be priced if service is needed. A special waste profile will be required for any special waste and pricing will be based on the level of special handling required. Profile # Profile # CUSTOMER BILLING ADDRESS Contact Phone: CUSTOMER CONTRACTING ADDRESS (If different from Billing Address) Contact Phone: CUSTOMER SERVICE LOCATION (If different from Billing Address) Contact Phone: Allos Customer Service Phone: Allos Contact: Allos Contact Phone: Service Information Generator: Ground Transporter: Rail Transporter: General Contractor: Disposal Cost: Profile Fee: Additional Cost: (describe) Additional Cost: (describe) Taxes: Transportation Fee: Containers provided by Company: Quantity: Size: Quantity: Size: Quantity: Size: Quantity: Size: Quantity: Size: Quantity: Size: Pick-up Frequency: {00119460.DOCX.} _7078369.1 Service Information Contract Expiration Date: Additional Information or Special Conditions: THE WORK CONTEMPLATED BY THIS EXHIBIT A IS TO BE DONE IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE MASTER DISPOSAL SERVICES AGREEMENT BETWEEN THE PARTIES DATED AS OF THE EFFECTIVE DATE: COMPANY: PPR LANDFILL, LLC CUSTOMER: By: By: Name: Name: Title: Title: