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Warren W. Schaber <br />July 1, 1985 <br />Page 3 <br />It is difficult to generalize regarding any potential <br />liability of the County as a result cf this petroleum sludge, as <br />this would depend greatly upon the facts and cireumatancee <br />giving rise to the legal problem. Although Ramsey County had no <br />direct involvement in creating the problem, it is likely that <br />any resulting litigation would be brought under the <br />Environmental Liability Act (Chapter 1158 of the Minnesota <br />Statutes - commonly called the Superfund law) and the County <br />would be a named party due to present ownership of the property. <br />Fvr liability to attach, the material would have to qualify as a <br />"hazardous substance" by definition and the County would have to <br />engage in conduct by which they were associated with a release <br />or took action which significantly contributed to any release of <br />the hazardous substance. However, we would certainly have the <br />right to counter-claim against the City of New Brighton and/or <br />Northwest Refinery for any damages for which we may be held <br />responsible. <br />The current revision of the Environmental Liability Act, <br />effective July 1, 1985, is also of great significance to the <br />County.., as it will allow us to likely escape liability under the <br />Act for injury to person or property. Under the previous law, <br />damages could be assessed fox such injuries if ,the hazardous <br />substances had been placed be~are January 1, 196q. The <br />revision, however, limits application of the law to deposits <br />made after July 1, 1983. See Minn. Star. 51158.06. With this <br />removal of retroactivity, the provisions of the Act which create <br />liability for injury to persons or property (Minn. Star. <br />g1158.g5) will not apply to the sludge deposits, as they were <br />+ made well before July 1, 1983. However, we would still retain <br />potential liability under Minn. Stat. S115B.g4 for remedial <br />costs and any injury to or destruction of natural resources. <br />There may also be some additional legal implications <br />regarding the sludge deposits after their removal. The MPCA has <br />indicated that some longer term issues remain which may <br />necessitate future action by Ramsey County. They involve <br />contaminated ground water as a result of the sludge pits or. <br />possible oil on the watertable in the slough area. Either of <br />these items would require additional remedial ar removal action. <br />This has been discussed with Dan Schacht, Environmental Services <br />Engineer who has overseen this aspect of the project, and he has <br />stated that the action by the MPCA is a situation where they <br />simply want to keep all their options open, He further stated <br />that there is not any current evidence which would indicate that <br />the petroleum sludge has caused any problems of this nature. <br />However, the Board should be aware that the MPCA does have the <br />power to order further remedial action, that Ramsey County would <br />be legally obligated to comply with any such direction, and that <br />~S <br />