LISA GODBEY WOOD, Chief District Judge.
On its face, this case is about the Clean Water Act. But the heart of the matter is strictly a question of contract law: does Defendant Rayonier Inc.'s NPDES permit, which allows it to discharge wastewater into the Altamaha River under certain conditions, include Georgia's water quality standards for color, odor, and turbidity as some of those conditions? This Court finds that it does not, as a matter of law, and
Defendants Rayonier Inc. and Rayonier Performance Fibers, LLC (together, "Rayonier"), operate a pulp mill in Jesup, Georgia that produces specialty cellulose products from wood chips. As part of its operations, the Rayonier mill discharges about 50 to 60 million gallons of wastewater into the Altamaha River every day.
The Altamaha Riverkeeper ("Riverkeeper") is a 501(c) (3) non-profit environmental organization that seeks to protect and restore the habitat, water quality, and flow of the Altamaha River from its headwaters in the Piedmont to its terminus at the Atlantic Ocean near Darien, Georgia. Dkt. no. 29-1, Sheppard Decl., ¶ 3. To achieve its mission, the Riverkeeper monitors wastewater discharges to ensure compliance with permits and water quality standards, comments on pending permits, and, as it has done here, engages in litigation when it believes the Georgia EPD has failed to enforce state and federal water quality standards against those who discharge wastewater or pollutants into the Altamaha River.
This litigation stems from what the Riverkeeper believes to be Georgia EPD's failure to enforce state and federal water quality standards against Rayonier for the wastewater discharged from its pulp mill. Specifically, the Riverkeeper complains that Rayonier's wastewater discharge is so dirty and fetid that it violates Georgia's water quality standards for color, odor, and turbidity. Dkt. no. 29, P1's Response, p. 8. In fact, the Riverkeeper alleges that Rayonier's wastewater is so much darker than the Altamaha's waters that satellite images of the Altamaha River show a distinctly dark plume originating at Rayonier's discharge point and continuing far downstream.
The Riverkeeper claims that Rayonier's discharge has such a negative impact on the Altamaha River's water quality that it violates what are known as Georgia's narrative water quality standards, which require that "[a]il waters shall be free from material related to municipal, industrial or other discharges which produce turbidity, color, odor or other objectionable conditions which interfere with legitimate water uses." Ga. Camp. R. & Regs. 391-3-6-.03(5)(c).
Indeed, in a recent consent order, the Georgia EPD itself concluded that
Dkt. no. 21-27, Consent Order EPD-WQ-4837, at pp. 4-5.
Summary judgment is required where "the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). A fact is "material" if it "might affect the outcome of the suit under the governing law."
The party seeking summary judgment bears the initial burden of demonstrating the absence of a genuine issue of material fact.
The Riverkeeper alleges that Rayonier is discharging its wastewater into the Altamaha River in violation of its NPDES Permit, and thus in violation of the Clean Water Act. For the Riverkeeper to have a cause of action under the CWA, compliance with the state effluent standards that the Riverkeeper alleges Rayonier is violating must be a condition of its NPDES permit.
The purpose of the CWA "is to restore and maintain the chemical, physical, and biological integrity of the Nation's waters." 33 U.S.C. § 1251(a). The CWA makes it illegal to introduce pollutants from any point source into the navigable waters of the United States without a permit.
Citizens may bring civil suits on their own behalf against persons allegedly violating conditions of an NPDES permit. 33 U.S.C. § 1365(a), (f) (6). However, where a permittee discharges pollutants in compliance with the terms of its NPDES permit, the permit "shields" the permittee from liability under the CWA. 33 U.S.C. § 1342(k). Section 1342(k)'s permit shield "affords an absolute defense to a permit holder that complies with the conditions of its permit against citizen suits" seeking to enforce certain provisions of the CWA.
Citizen plaintiffs who bring a suit under § 1365 are suing as "private attorneys general seeking enforcement of a federal law."
Thus, to resolve the parties' contentions, the Court must interpret the language of the Permit Georgia EPD issued to Rayonier. While NPDES permits themselves are not contracts, they are interpreted as if they were.
"Federal courts use federal common law to evaluate government contracts. When determining what particular doctrine to apply in a suit, however, the court will often select a rule of state law."
In Georgia, courts follow a three-step process in examining contracts:
Whether or not a contract is ambiguous is a question of law for the court.
Here, there are two occurrences in Rayonier's NPDES Permit that the Riverkeeper alleges incorporate Georgia's water quality standards enumerated in Rule 391-3-6-.03(5) (c). The first, which occurs on page one of the Permit, generally references Georgia's water quality control regulations, which include Rule 391-3-6-.03(5). Dkt. no. 20-2, p. 1. The second reference, on page 15 of the permit, mentions Rule 391-3-6-.03(5) generally in the context of "Biomonitoring and Toxicity Reduction Requirements."
The reference to Georgia's water quality control standards on the first page of the Permit reads:
Dkt. no. 20-2, P. 1. Stripped down to its necessary and relevant elements, this sentence says: (1) "In compliance with" the CWA, the State Act, and their respective rules and regulations, (2) Rayonier "is authorized" to discharge into the Altamaha River "in accordance with" the conditions set forth in Parts I, II and III of the Permit. This plainly means that Georgia EPD authorized Rayonier's Permit "in compliance" with the Federal and State Acts and their rules, and that Rayonier is authorized to discharge in accordance with the conditions of the Permit.
It does not mean that Rayonier may only discharge in compliance with the Federal and State acts and their attendant rules and regulations. The first clause merely asserts the authority by which the Georgia EPD issues the permit; the second clause asserts that Rayonier is authorized to discharge only in accordance with the conditions enumerated in the Permit. If the Georgia EPD intended the conditions of Rayonier's permit to be coextensive with the water quality standards set forth in the CWA, the State Act, and their rules and regulations, it could have said so by stating "Rayonier is authorized to discharge wastewater into the Altamaha River in accordance with the conditions set forth in Parts I, II and III hereof and with the water quality standards enumerated in the Federal and State Acts and their attendant regulations."
The Riverkeeper argues that long-standing precedent from the Northern District of Georgia holds that this language in a NPDES permit does, in fact, incorporate Georgia's water quality standards as conditions of the Permit. True, the court in
Here, unlike
However, the Permit's second reference to Georgia's water quality standards is ambiguous. Under the heading "Biomonitoring and Toxicity Reduction Requirements," Part III of the Permit states: "The Permittee shall comply with effluent standards or prohibitions established by section 307(a) of the Federal Act and with chapter 391-3-6-.03(5) of the State Rules and may not discharge toxic pollutants in concentrations or combinations that are harmful to humans, animals, or aquatic life." This reference to 391-3-6-.03(5) is ambiguous because its context suggests it is strictly concerned with toxic pollutants, but Rule 391-3-6-.03(5) lists a host of water quality standards that have nothing to do with toxicity. On one hand, a broad reference to Rule 391-3-6-.03(5) would seem to incorporate into the Permit all of the water quality standards throughout that rule. On the other hand, though, the context of that reference suggests that Georgia EPD intended only to incorporate those water quality standards within Rule 391-3-6-.03(5) that concern toxicity. Because this reference to Rule 391-3-6-.03(5) on page 15 of the Permit is open to multiple interpretations, it is inherently ambiguous, and the Court must turn to the applicable rules of contract construction to ascertain its meaning.
In addition to the common law rules of construction, Georgia has statutory rules that courts may apply. First and foremost, "[t]he cardinal rule of construction is to ascertain the intention of the parties. If that intention is clear and it contravenes no rule of law and sufficient words are used to arrive at the intention, it shall be enforced irrespective of all technical or arbitrary rules of construction." Ga. Code Ann. § 13-2-3. After this primary statutory consideration, Georgia statutory and common law provide several other canons that are helpful in this case. However, "[n] canon of interpretation is absolute. Each may be overcome by the strength of differing principles that point in other directions."
Here, the Court cannot clearly ascertain, from the four corners of the Permit, the parties' intent regarding Georgia's water quality standards. The Riverkeeper argues that the Georgia EPD's intent in writing Rayonier's Permit (along with all other NPDES permits in Georgia) "necessarily was to meet the requirements of the Clean Water Act." Dkt. no. 34, p. 5;
The Riverkeeper encourages this Court to look beyond the Permit itself and focus on the CWA's purpose and statutory scheme to determine Georgia EPD's intent under Georgia Code section 13-2-3 1s intent analysis. This suggested approach will not align the Court's interpretation of the Permit with the Riverkeeper's for three reasons. First, it requires the Court to look outside of the Permit to determine Georgia EPD's intent. Even if statutory purposes and permitting schemes are not "extrinsic evidence" in the traditional sense, Georgia's rules of construction plainly favor evidence from within a document itself over outside evidence.
Second, even if the Court were to consider the CWA's statutory purpose and permitting schemes, other aspects of the CWA militate against a finding that a permitting authority necessarily intended a permit to effectuate all of the standards found in the CWA and state regulations. Such a holding would eviscerate the "permit shield" contemplated under 33 U.S.C. § 1342(k) ("Compliance with a permit issued pursuant to this section shall be deemed compliance, for purposes of sections 1319 and 1365 of this title with sections 1311, 1312, 1316, 1317, and 1343 of this title . . .").
Finally, even if the court were to find that Georgia EPD intended to make Rayonier's permit conditions coextensive with the water quality standards found in the CWA and Georgia's Rules, Georgia Code section 13-2-3 requires Georgia EPD to use "sufficient words . . . to arrive at the intention" in the Permit itself. Ga. Code Ann. § 13-2-3. As discussed above, neither reference to Rule 391-3-6-.03(5) clearly indicates that the permit intends to incorporate the narrative water quality standards found in that rule.
Having looked first to evidence of Georgia EPD's intent within the Permit itself, the Court now turns to Georgia's statutory rules of construction found in Georgia Code section 13-2-2. While many of these canons are not helpful in this case, a few are.
Georgia Code section 13-2-2(4) provides that "the construction which will uphold a contract in whole and in every part is to be preferred, and the whole contract should be looked to in arriving at the construction of any part." As discussed above, the Riverkeeper's proffered interpretation of the Permit would render the "Permit Modification" provision found in Part II.B.8 of the permit meaningless. This statutory rule of construction, then, tilts in Rayonier's favor.
Additionally, Georgia Code § 13-2-2(5) provides that "[i]f the construction is doubtful, that which goes most strongly against the party executing the instrument or undertaking the obligation is generally to be preferred." The Georgia Supreme Court has interpreted this provision to mean that a contract should "be construed against the preparer and in favor of the non-preparer."
Finally, while many of the canons of construction the Court has discussed thus far lean in Rayonier's favor, the Court is nevertheless concerned with the fact that ruling in Rayonier's favor will necessarily require the Court to interpret Part III's reference to Rule 391-3-6-.03(5) as referring specifically—and only—to Rule 391-3-6.03(5) (e). To that end, the Riverkeeper urges that the Court should not "add terms or provisions to the contract. In construing a contract, `courts cannot insert what has been omitted or rewrite a contract made by the parties." Pl.'s Supp. Br. pp. 7-8 (quoting
This provision appears to be concerned primarily with grammatical errors and omitted terms. The Court is not convinced that Part III's "Biomonitoring and Toxicity Reduction Requirements" section, or the Permit as a whole, "stands without meaning" if "(e)" is not supplied after the reference to Rule 391-3-6-.03(5). However, the Court need not actually supply an "(e)" to interpret the reference to Rule 391-3-6-.03(5) narrowly in light of its section heading. Furthermore, by Rayonier's own admission, Georgia Code section 13-2-2(6) is not a rule that can properly be applied in this case. Thus, on balance, the Riverkeeper's proffered rule against inserting terms does not appear to be binding or instructive to this Court, but at the same time Georgia Code section 13-2-2(6) also appears to be a poor fit. Despite the parties' briefing on this matter, the Court does not find that Georgia Code section 13-2-2(6) or related rules of construction help clarify the Permit's terms.
The rules of construction found in Georgia Code section 13-2-2 are not exhaustive.
Rayonier argues that the reference to Georgia Rule 391-3-6-.03(5) in the Permit's "Biomonitoring and Toxicity Reduction Requirements" section must be construed in light of that heading. Dkt. no. 35, p. 17. The Riverkeeper urges that Rayonier's argument has been "flatly rejected by Georgia courts." Georgia courts' position on this matter is not as clear as the Riverkeeper suggests. The
The Southern District of Georgia has had occasion to examine
And in this case, the Court will follow suit with
While a reference to Rule 391-3-6-.03(5) would appear to include Rule 391-3-6-.03(5)(c) (as well as subsections (a), (b), (d), (e), (f), and (g)), only subsection (e) actually concerns toxicity. Furthermore, subsection (e)'s language tracks that of Part III.C's opening paragraph: "All waters shall be free from toxic, corrosive, acidic and caustic substances discharged from municipalities, industries, and other sources, such as nonpoiont sources, in amounts, concentrations or combinations which are harmful to humans, animals or aquatic life." Ga. Comp. R. & Regs. 391-3-6-.03(5) (e) (emphasis added). In light of such strong indications that Part III.0 is singularly concerned with enforcing toxicity standards, this Court has little difficulty in looking to that Part's heading and the subsequent language to determine that Georgia EPD intended to refer to Rule 391-3-6-.03(5) (e) when it referred to Rule 391-3-6-.03(5) generally.
The Riverkeeper has provided two other non-statutory rules of construction in support of its interpretation of the Permit. First, the Riverkeeper argues that contracts should not be interpreted in such a way as to render them illegal. The Supreme Court has held that "[s]ince a general rule of construction presumes the legality and enforceability of contracts . . . ambiguously worded contracts should not be interpreted to render them illegal and unenforceable where the wording lends itself to a logically acceptable construction that renders them legal and enforceable."
Second, the Riverkeeper suggests that courts should favor a construction in the public interest where a contract dispute is of public concern. This is a "rule of construction rather than one of interpretation, one that for reasons of public policy requires the court to give to a contract that legal operation that is of public advantage, when a choice between that and a less advantageous operation is reasonably open."
Thus, the majority of the rules of construction discussed in this Order weigh in favor of Rayonier's interpretation of the Permit. In light of these rules, the Court finds that the ambiguity in the Permit's meaning is now sufficiently clarified, and the Court need not turn to the Riverkeeper's proffered extrinsic evidence of Georgia EPD's intended meaning.
The Court does not intend this holding to suggest that Rayonier's discharges do not have a harmful effect on the Altamaha River, or that the Riverkeeper's alleged injuries are trivial. To the contrary, those effects may be deleterious, and Rayonier's discharges may, in fact, violate Georgia's narrative water quality standards. The Court's holding is simply that the Riverkeeper must show a violation of Rayonier's NPDES Permit to bring its CWA citizen suit, and here it failed to show that compliance with the relevant water quality standards is a condition of Rayonier's NPDES Permit.
Furthermore, while the Riverkeeper's CWA claim will not go forward, the Riverkeeper is not without recourse. Under the Permit's "Modification Clause," the Riverkeeper may ask Georgia EPD to modify the Permit so that it explicitly incorporates Rule 391-3-6-.03(5) (c)'s narrative water quality standards as conditions of the permit. If it is now, in fact, Georgia EPD's intent for these water quality standards to be incorporated as conditions of Rayonier's Permit, then this Order likely satisfies any precondition required for such a modification.
In addition to its CWA claims, the Riverkeeper brings state law claims for negligence (Count III), negligence per se (Count IV), public nuisance (Count V), and attorney's fees under Georgia Code section 13-2-11 (Count VI) . Because both parties have requested that the state law claims be dismissed or remanded to state court if the Court grants summary judgment on the CWA claims, the Riverkeeper's state law claims are dismissed without prejudice pursuant to 28 U.S.C. § 1367(c) (3).
Compliance with Georgia's narrative water quality standards found in Rule 391-3-6.03(5) (c) is not a condition of Rayonier's NPDES permit. As such, failure to comply with those standards cannot be the basis for a citizen suit against Rayonier under 33 U.S.C. § 1356. Defendant Rayonier's motion for summary judgment (Dkt. no. 19) is