# Petition for Writ of Certiorari — Brown v. Kerr-McGee Chemical Corp.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 1986
- **Citation:** 475 U.S. 1043

## Text

85-1258
-No. iy Court, U.S.
7 FLLED

In THE SAN Zi 1988

Supreme Court of the Unites Ptates.< *

Octoser TERM, 1985

DONALD E. BROWN; EDITH R. BROWN; EDWIN E.
BROWN; BETTY WOLSFELD; and WEST CHICAGO STATE
BANK, as Trustee u/t/a 213, dated September 16, 1969,

Petitioners,
Wie

KERR-McGEE CHEMICAL CORPORATION,
a Delaware corporation,
Respondent.

PETITION FOR WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE SEVENTH CIRCUIT

Aupo E. Botti
Water P. Maxsym
(Counsel of Reeord)
Drake OakBrook Plaza
9911 York Road, Suite 208
Oak Brook, Illinois 60521
(312) 789-8585
Counsel for Petitioners

Of Counsel:

Samve. J. Berar III

Botti, Marrnaccio, DESALVO
& Pieper, Lrp.

Drake OakBrook Plaza

2911 York Road, Suite 208

Oak Brook, Illinois 60521

(312) 789-8585

Midwest Law Printing Co., Chicago 60611, (812) 321-0220

— i 7 _
a Desa

A
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Daa

1

QUESTIONS PRESENTED

Whether the Atomic Energy Act, 42 U.S.C. §2011 et
seq. preempts a request for an injunction pursuant to
State law to abate a nuisance posed by nonradiation

- hazards and airborne radiation hazards of material licensed

by the Nuclear Regulatory Commission.

il

TABLE OF CONTENTS

QUESTIONS PRESENTED ................. 1
TABLE OF AUTHORITIES . ....6.ccccuse ili
RAE RINORES EE x sine 5 on cnn nea Ve RE 2
bt fy pS I aearar Prererap Eras ge el: 8%

REASONS FOR GRANTING THE PETITION:
I.

THE COURT OF APPEALS’ DECISION CON-
FLICTS WITH THIS COURT’S HOLDING IN
SILKWOOD v. KERR-McGEE CORP., 464 U.S.
| ren rare rere dy cl 9

Il.

THE COURT OF APPEALS’ DECISION CON-
FLICTS WITH THIS COURT’S HOLDING IN
PACIFIC GAS AND ELECTRIC CO. v. STATE
ENERGY RESOURCE CONSERVATION AND
DEVELOPMENT COMMISSION, 461 U.S. 190
| | Snir anne reer es ar rarer 12

III.

THE COURT OF APPEALS’ DECISION IN-
VOLVES ISSUES OF GREAT PUBLIC IM-
PORTANCE REGARDING CONCURRENT
REGULATION BY FEDERAL AND STATE
GOVERNMENTS OVER THE OPERATION OF
PRIVATE FACILITIES LICENSED BY THE
| See ee UR ERE EEE TUTE ee ty 13

ili
APPENDIX

A— Opinion of the United States Court of Appeals
for the Seventh Circuit ................... A-1

B— Order of the United States Court of Appeals
for the Seventh Circuit Denying Petition for
Rehearing and Modifying Its Opinion ...... B-1

TABLE OF AUTHORITIES

Cases PAGE

Brown v. Kerr-McGee Chemical Corp., 767 F.2d

cc we cee eacace passim
City of Philadelphia v. State of New Jersey, 437
Ne cuban wavasess 13
Cloverleaf Butter Co. v. Patterson, 315 U.S. 148
acca a bacasessscece 11
Davies Warehouse Co. v. Bowles, 321 U.S. 144
a cd i wca uns stninsece 11
Florida Lime & Avocado Growers, Inc. v. Paul,
Er 17
H. P. Welch Co. v. New Hampshire, 306 U.S. 79
ac eakatasecacs 11
Huron Portland Cement v. City of Detroit, 326
SSI a 17

International Union, U.A.W. v. Wisconsin Em-
ployment Relations Board, 336 U.S. 245, reh.
eS 11

—

iv
Nadar v. Allegheny Airiines, 426 U.S. 290 (1976) . 18

Northern States Power Co. v. Minnesota, 447 F.2d
1143 (&th Cir. 1971), affirmed, 405 U.S. 1035
COED 5c 0b se ee Cerra a ee 15

Pacific Gas and Electric Co. v. State Energy Re-
source Conservation and Development Commis-
sion, 461 U.S. 190 (1983) ........... 12, 13, 15, 16

People of the State of Illinois, v. Kerr-McGee
Chemical Corp., 677 F.2d 571 (7th Cir.), cert.

dented, 459 U.S. 1049 (1982) .............. 14, 15
Rice v. Santa Fe Elevator Corp., 331 U.S. 218

6) Eee Te eee ee rer rey ere ea es 11
Silkwood v. Kerr-McGee Corp., 464 U.S. 238 (1984) .

Aha KERNS RAR ERERE CRRCLS RE RACER 9, 10, 16, 17
Village of Wilsonville v. SCA Services, Inc., 86 Ml.

2d 1, 426 N.E.2d 824 (1981) ............... 13

Statutes

Se Sicha SONA 6k Clean we os rereanacases 4,8
CW DKS as an ernie cemesies Ge 3, 6
oe See LE eke oaawee eens ae 3, 6
Oe Rees ME 8 Sak nk cus antec sdeewha cis 3, 15
Se RTA tae ea ase 3, 6
Oe Wes eens OE NS oes cs Ora een 6

In THE

Supreme Court of the Cnited States

Ocroser Term, 1985

DONALD E. BROWN; EDITH R. BROWN; EDWIN E.
BROWN; BETTY WOLSFELD; and WEST CHICAGO STATE
BANK, as Trustee u/t/a 213, dated September 16, 1969,

Petitioners,
¥.

KERR-McGEE CHEMICAL CORPORATION,
a Delaware corporation,
Respondent.

PETITION FOR WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE SEVENTH CIRCUIT

Petitioners, Donald E. Brown, Edith R. Brown, Betty
Wolsfeld, and West Chicago State Bank, as Trustee u/t/a
213, dated September 16, 1969, respectfully petition for
a writ of certiorari to review the interlocutory judgment
of the United States Court of Appeals for the Seventh
Circuit entered on July 18, 1985.

EE ee

ailie’

OPINION BELOW

The opinion of the United States Court of Appeals for
the Seventh Circuit is officially reported at 767 F.2d 1234
(7th Cir. 1985). It is reproduced in the appendix hereto.
(Appendix A, pp. A-1 to A-25) On October 24, 1985, the
opinion of the United States Court of Appeals for the Sev-
enth Circuit was modified. The order of modification is
reproduced in the appendix hereto (Appendix B, pp. B-1
to B-2).

JURISDICTION

The judgment of the Court of Appeals was entered on
July 18, 1985. A timely petition for rehearing was denied
on October 24, 1985. (Appendix B, pp. B-1 to B-2) The

jurisdiction of the Court is invoked pursuant to 28 U.S.C.

§1254(1).

STATUTES INVOLVED

)

This case involves the interpretation of the Atomic
Energy Act (AEA) 42 U.S.C. §2011, et seq. (1954) as
amended by the Uranium Mill Tailings Radiation Control
Act, P.L. 95-604, 92 Stat. 3022 (1978) (UMTRCA) to deter-
mine whether the AEA preempts petitioners’ prayer for
mandatory injunctive relief.

=

42 U.S.C. §2021(k) provides:

Nothing in this section shall be construed to affect
the authority of any State or local agency to regulate
activities for purposes other than protection against
radiation hazards.

42 U.S.C. §2014(e) provides:

The term “byproduct material” means (1) any radio-
active material (except special nuclear material) yielded
in or made radioactive by exposure to the radiation
incident to the process of producing or utilizing special
nuclear material, and (2) the tailings or wastes pro-
duced by the extraction or concentration of uranium
or thorium from any ore processed primarily for its
source material content.

42 U.S.C. §2014(z) provides:

The term “source material’? means (1) uranium,
thorium, or any other material which is determined
by the Commission pursuant to the provisions of sec-
tion 2091 of this title to be source material; or (2)
ores containing one or more of the foregoing materials,
in such concentration as the Commission may by regula-
tion determine from time to time.

42 U.S.C. §2113 provides in pertinent part:
(a) Specific assurances in license for pretermination actions

Any license issued or renewed after the effective
date of this section under section 2092 or section 2111
of this title for any activity which results in the pro-
duction of any byproduct material, as defined in sec-
tion 2014(eX2) of this title, shall contain such terms
and conditions as the Commission determines to be
necessary to assure that, prior to termination of such
license—

(1) the licensee will comply with decontamina-
tion, decommissioning, and reclamation standards
prescribed by the Commission for sites (A) at which
ores were processed primarily for their source
material content and ) at which such byproduct
material is deposited, .. .

a

STATEMENT OF THE CASE

This is an appeal from the interlocutory judgment of
the Seventh Circuit Court of Appeals affirming the inter-
locutory order of the United States District Court for the
Northern District of Illinois, Eastern Division, granting
Kerr-McGee Chemical Corporation’s motion to dismiss
Count I of Petitioners’ complaint.! In Count I of their
complaint petitioners sought mandatory injunctive relief
for the removal of toxic waste which had accumulated on
Respondent’s property.? Petitioners originally filed their
complaint in the Circuit Court of DuPage County, Illinois.
Petitioners’ state suit was removed from the Circuit Court
to the District Court upon removal petition of Kerr-McGee
on grounds of diversity pursuant to 28 U.S.C. §§1446,
1332 and 1441.

Petitioners, Donald Brown, Edith R. Brown? and Betty
Wolsfeld, are the equitable and beneficial owners of two
parcels of residential property located in West Chicago,
Illinois whose back yards abut a forty-three acre facility
owned and operation by Respondent, Kerr-McGee. Donald
Brown presently resides in one of the residential homes.

This case involves a forty-three acre site (“site’’) owned
by Respondent Kerr-McGee Chemical Corporation (“Kerr-

' The Court of Appeals treated Kerr-McGee’s motion to dismiss
as one for summary judgment because Respondent submitted
materials outside the pleadings in support of its motion to dismiss.
Brown v. Kerr-McGee Chemical Corp., 767 F.2d 1234, 1237 n.2
(7th Cir. 1985).

* The Court of Appeals exercised jurisdiction over the District
Court's interlocutory order pursuant to 28 U.S.C. §1292(a\1).
3 Mrs. Brown died during the pendency of this proceeding.

—)—

McGee’’) in West Chicago, Illinois, where from 1931 to
1973 Kerr-McGee and its predecessors milled and proe-
essed ores bearing thorium, a naturally-occurring radioac-
tive element. During the time the plant operated, liquid
waste was disposed of by discharge into onsite pits. This
practice resulted in extensive contamination of area
groundwater with a variety of the industrial chemicals
used in the ore milling process. Solid wastes, i.e., ore
sediments—also called “mill tailings” —were piled onsite,
where approximately 1.2 million cubic feet remain await-
ing disposal. In addition to these tailings, about 3 million
cubic feet of plant building and equipment rubble remain
onsite also waiting disposal.

Both the mill tailings and the rubble are radioactive,
since they are contaminated with thorium and its radioac-
tive daughter products; these materials therefore pose
radiation hazards to people exposed to them. The mill tail-
ings also pose environmental hazards unrelated to the
radiation they emit because they are contaminated with
residuals of the industrial chemicals used in the milling
process. As rain and melting snow mix with the tailings,
these chemicals leach out into groundwater and remain
a continuing source of chemical groundwater pollution. In
sum, the mill tailings onsite are contaminated with both
radioactive and nonradioactive contaminants, and pose
both radiation hazards and nonradiation hazards. All par-
ties agree that the radioactive and nonradioactive con-
taminants are inextricably mixed.

Since 1956 the owner of the site has been licensed
by the U.S. Nuclear Regulatory Commission (“NRC”)
and its predecessor agency, the U.S. Atomic Energy
Commission, pursuant to the Atomic Energy Act of 1954,
42 U.S.C. §2011 ff (“AEA”). That is because thorium,
denominated “source material” by the AEA (42 U.S.C.

Ps ee rh

— Ce i Oe

~ i

$2014[z]), is one of several kinds of radioactive material
licensed and regulated by NRC under the statute.4 In
1978 the AEA was amended by Title II of the Uranium
Mill Tailings Radiation Control Act. P.L. 95-604, 92 Stat.
3022 (‘UMTRCA”’); UMTRCA specifically made uranium
and thorium mill tailings, denominated “byproduct ma-
terial” (42 U.S.C. §2014(eX2)), also subject to NRC licens-
ing and regulation.

UMTRCA requires that before a private mill owner’s
license terminates, the milling site must be decommissioned
and the wastes disposed. 42 U.S.C. §2113. Accordingly,
in 1979 and in subsequent years Kerr-McGee has made
several applications to the NRC to clean up the site, all
of them proposing to permanently bury the wastes, both
the rubble and the tailings, on the site.

In May 1983 the NRC issued an environmental impact
statement on Kerr-McGee’s onsite burial proposal (called
the Final Environmental Statement, or “FES”). The FES,
which basically endorsed onsite disposal, was rejected by
the NRC hearing board on the ground that it violated
the requirements of the Naticnal Environmental Policy
Act, 42 U.S.C. §4321 ff, 20 NRC 1296 and 21 NRC 244.
Recent submissions by the NRC Staff indicate that a new
draft environmental statement is expected to be completed
no earlier than June 1986 and a new final environmental
statemen* is to be completed no earlier than February
1987.

4 The AEA does not regulate all types of radioactive materials—
only those specified in the statute. All others are regulated ex-
clusively by the States. A question exists as to whether the AEA
is applicable to the site since the site originated its operation in
1933, twenty-one years prior to the enactment of the act.

La A

—(—

Petitioners filed a complaint against Respondent alleg-
ing that the Kerr-McGee site has been and is a nuisance.
Petitioners’ cause of action is based solely on State stat-
utory and common law tort theories.

The allegations in Petitioners’ complaint can be sum-
marized as follows:5

a. The buildings on the site are in such a state of
disrepair as to constitute a nuisance,

b. Hazardous wastes dumped on the site include tox-
ic chemicals such as, barium sulfate, sodium phos-
phate, ammonia, ethylenediominatelnaacetic acid,
sulfuric acid, kerosene, hydrocnloric acid and
caustic soda,

c. Liquid wastes have permeated the soil, and have
polluted the water table, Petitioners’ well and
nearby streams,

d. Pollutant runoff from Respondent’s site has run
on to and polluted Petitioners’ property,

e. The site is rat infested and that the rats have in-
vaded Petitioners’ property,

f. That the current condition of the site violates
numerous municipal and state ordinances and stat-
utes, and regulations of the Illinois Department
of Public Health,

g. These conditions have interferred with Peti-
tioners’ right to quiet use and enjoyment of their
property and pose a health hazard to them.

Kerr-McGee filed a motion to dismiss a portion of the
relief sought by Petitioners in Count I of their complaint
alleging that federal law, the AEA, preempts any attempt

5 Paragraphs a-g are a condensed description of the various al-
legations contained in Petitioners’ complaint and are not verbatim
quotes.

-

to obtain judicial injunctive relief predicated upon State
and commen law tort theories. The district court held that
Petitioners’ request for injunctive relief was preempted
because the NRC has exclusive authority over the dis-
posal of radioactive materials and that an injunction would
interfere with the NRC’s authority.

The Seventh Circuit in a divided opinion affirmed the
decision of the district court. The NRC has been aware
of the existence of this lawsuit since its inception. To date
the NRC has never sought to intervene or indicate on
the record that it has an interest in these proceedings
which could be adversely affected.

One of the issues on appeal, which is not an issue before
this Court, was whether the court of appeals had jurisdic-
tion to hear the appeal. The court of appeals determined
that it had jurisdiction pursuant to 28 U.S.C. §1292(a\1)
in part because there was nothing to:

preclude a finding that the district court order will
result in serious, perhaps irreparable, consequences
that can be effectively challenged only by immediate
appeal.

Brown v. Kerr-McGee Chemical Corp., 767 F.2d 1234,
1240 (7th Cir. 1985).

The irreparable consequences which justified the Sev-
enth Circuit’s exercise of appellate jurisdiction over an
interlocutory order still exist and should be considered
by this court in determining whether it will grant this
petition to review this interlocutory issue.

a

REASONS FOR GRANTING THE WRIT

I.

THE COURT OF APPEALS’ DECISION CONFLICTS
WITH THIS COURT’S HOLDING IN SILKWOOD v. KERR-
McGEE €ORP., 464 U.S. 238 (1984).

Recently, the United States Supreme Court rendered
its decision in Silkwood v. Kerr-McGee, 464 U.S. 238, 104
S.Ct. 615 (1984). There, the administrator of the estate
of a deceased laboratory analyst at a federally licensed
Kerr-McGee facility brought an action under State law to
recover for injuries to the decedent’s person and prop-
erty. Unlike the matter at bar, the cause of damage was
directly ascribed to a radiation hazard, plutonium con-
tamination. Here, no reference to radiological materials
is made in Petitioners’ Complaint. The Si/kwood court
reversed the denial by the Tenth Circuit of an award of
punitive damages, holding that they were not preempted
under federal law. In rejecting Kerr-McGee’s preemption
argument, which is similar to Kerr-McGee’s argument in
the instant case, the high court conducted an in-depth ex-
amination of the legislative history of the Atomic Energy
Act with respect to the subject of the availability of
judicial remedies. The high court’s analysis is applicable
to this controversy with respect to the availability of in-
junctive relief:

Congress assumed that state law remedies in what-
ever form they might take were available to those in-
jured by nuclear incident. This was so even though
it was well aware of the NRC’s exclusive authority
to regulate safety matters.

Silkwood v. Kerr-McGee, 464 U.S. 238, 104 S.Ct. 615, 625
(1984 emphasis supplied).

a

Congress therefore disclaimed any interest in promot-
ing the development and utilization of atomic energy
by means that fail to provide adequate remedies for
those who are injured by exposure to hazardous nu-
clear materials.

Silkwood v. Kerr-McGee, 464 U.S. 238, 104 S.Ct. 615, 626
(1984). This Court’s decision in Silkwood, supra, did not
limit the type of remedies available to persons who claim
they were injured by exposure to hazardous nuclear ma-
terial. While the specific relief sought in Silkwood was
punitive damages, the quoted language from the opinion
indicates that no limits were to be imposed on the forms
of relief available to claimants.

The Seventh Circuit’s ruling which limits the remedies
available to Petitioner is at odds with the spirit of this
Court’s decision in Silkwood, which declared that Con-
gress intended that adequate remedies be available to
those injured by exposure to hazardous nuclear material
and that no limits existed on the form of available rem-
edies. The basis of equitable relief is the lack of an ade-
quate remedy at law. Judge Cudahy in his dissent indi-
cated that the majority found “preemption much to easily”
and that there was an inadequate basis in the record to
support the majority’s decision. Judge Cudahy correctly
concluded that the majority’s decision contradicted the
clear intent of Congress and this Court’s decision in Silk-
wood which indicated that states retain jurisdiction over
nonradiation hazards. Brown v. Kerr-McGee Chemical
Corp., 767 F.2d 1234, 1243-1247 (7th Cir. 1985).

Judge Cudahy’s comments in his dissent are of special
significance in light of the long precedent of this Court
which encourages caution in finding preemption and favors
deference to the traditional powers of the State. In deter-
mining whether State power has been preempted, it should

atten

be recalled that long before Silkwood, the Supreme Court
warned that any invasion of traditional local domains in-
volves a delicate exercise of legislative policy. In ascertain-
ing the scope of congressional legislative intent, due and
proper regard must be accorded local interests before a
preemptive effect can be recognized. See Davies Ware-
house Co. v. Bowles, 321 U.S. 144 (1944). The intent of
Congress to displace State power must be either clearly
manifested and definitely expressed, or clearly implied.
International Union, U.A.W. v. Wisconsin Employment
Relations Board, 336 U.S. 245, reh. den., 336 U.S. 970
(1949); H. P. Welch Co. v. New Hampshire, 306 U.S. 79
(1939). The court hearing the matter must start with the
assumption that historic policy or judicial powers are not
to be superseded. See Rice v. Santa Fe Elevator Corp.,
331 U.S. 218 (1941). Where, as here, State power is sought
to be prohibited on a claim of inferred preemption at-
tributable to the scope and purpose of federal legislation
it must be clear that the federal provisions are inconsis-
tent with those of the State before Federal courts are
justified in thwarting State power. See Cloverieaf Butter
Co. v. Patterson, 315 U.S. 148 (1942). In view of the
difficulties encountered by the Seventh Circuit in reaching
its decision and the clear impact of its ruling on an area
of great national concern, review by this Court is necessary.

= rrr

ee

ai.

THE COURT OF APPEALS’ DECISION CONFLICTS
WITH THIS COURT’S HOLDING IN PACIFIC GAS AND
ELECTRIC CO. v. STATE ENERGY RESOURCE CONSER-

‘ATION AND DEVELOPMENT COMMISSION, 461 U.S. 190
(1983).

The majority’s decision is also contrary to Pacific Gas
and Electric Co. v. State Energy Resource Conservation
and Development Commission, 461 U.S. 190 (1983). There
the State of California had prohibited construction of
nuclear power plants until the NRC approved a inethod
for disposing of spent nuclear fuel. The statute was based
on the asserted economic risks of nuclear generation
unless the disposa! problem was solved. Ruling that the
NRC’s authority is limited to the radiological safety
aspects of nuclear power (id. at 205) and that States re-
tain their authority over its nonradiological aspects (id.
at 212), the Court upheld the California statute. The Court
rejected the plaintiff's and the Government’s (as amicus
curiae) argument that the NRC should have the final
choice about if and when nuclear plants are built, and
acknowledged that States have the power, arising from
their jurisdiction over nonradiation hazards, to veto a
plant—i.e., to render ineffectual permission granted by
the NRC for a company to construct a nuclear power
plant. The Petitioners herein seek to do precisely the
same thing—to veto, on permissible state law grounds,
Kerr-McGee’s choice of a disposal location and render in-
effectual the NRC’s permission (if it is granted) to use
that location. Under Pacific Gas & Electric Co., such a
veto is a legitimate exercise of state authority. Thus, the
Seventh Circuit’s preclusion of State authorized judicial
relief warrants scrutiny by the Court.

—13—-

fli.

THE COURT OF APPEALS’ DECISION INVOLVES
ISSUES OF GREAT PUBLIC IMPORTANCE REGARDING
CONCURRENT REGULATION BY FEDERAL AND STATE
GOVERNMENTS OVER THE OPERATION OF PRIVATE
FACILITIES LICENSED BY THE NRC.

Respondent currently operates the site under license
issued by the NRC for the decommissioning and disposal
of radioactive materials presently located at the site. The
mill tailings and other toxic wastes on the site are con-
taminated with both radioactive and nonradioactive con-
taminants, and pose both radiation and nonradiation hazards.
The radioactive and nonradioactive contaminants are in-
extricably intermixed. The Seventh Circuit correctly noted
that Petitioners seek to abate the nonradiation rather than
the radiation hazards posed by Respondent’s site. Brown
v. Kerr-McGee Chemical Corp., 767 F.2d 1234, 1241 (7th
Cir. 1985). Congress did not intend federal law to preempt

State regulation of nonradicactive waste disposal. City of

Philadelphia v. State of New Jersey, 437 U.S. 617, 620-621
n.4, 98 S.Ct. 2531, 2533-2534 n.4 (1978). No question exists
as to the right of citizens under Illinois law to the equi-
table relief sought in this case compelling exhumation of
hazardous waste. Village of Wilsonville v. SCA Services,
Inc., 86 Ill.2d 1, 426 N.E.2d 824 (1981). Thus the Seventh
Circuit correctly concluded that a private plaintiff may
rely on state law to obtain injunctive relief from non-
radiation hazards. Brown v. Kerr-McGee Chemical Corp.,
767 F.2d 1234, 1241 (7th Cir. 1985).6 The court rational-

6 Congress in 1977 reinstated state authority over the airborne

radiation hazards of NRC-licensed materials. Pacific Gas & Elec.,

supra, 461 U.S. at 212, n. 25. This was accomplished by an amend-

ment, P.L. 95-95, to the Clean Air Act, 42 U.S.C. §87401/f, Given

that the primary radiation hazard of mill tailings is radon, an air-
(Footnote continued on following page)

Pe ye os

a

ized, however, that because the nonradioactive and radio-
active wastes were “intermixed”, an injunction ordering
removal of the nonradioactive waste would necessarily in-
clude the radioactive waste. Such a result the court con-
cluded would stand as an obstacle to the objectives of
federal regulation of radiation hazards. Brown v. Kerr-
McGee Chemical Corp., 767 F.2d 1234, 1242 (7th Cir.
1985).

This decision is also inconsistent with the Seventh
Circuit’s previous ruling in People of the State of Illi-
nois v. Kerr-McGee Chemical Corp., 677 F.2d 571 (7th
Cir.), cert. denied, 459 U.S. 1049 (1982). In that case the
court concluded that the City of West Chicago, a Plain-
tiff thereto, could seek abatement of nonradiation toxic
chemicals, a public nuisance, at the site if no actual con-
flict was established between the NRC’s authority and
the relief sought by the City. Petitioners herein seek
removal of the same onsite chemicals which were the ob-
ject of the City of West Chicago’s complaint.’ In its

8 continued

borne radioactive decay product of thorium and uranium, state
regulatory authority now exists not only over the non-radiation
hazards of Kerr-McGee’s site but over its chief radiation hazard
as well.

7 The inconsistent rulings have posed dramatic consequences for
the State of Illinois. The State of Illinois is presently litigating
an action against Kerr-McGee ir the Circuit Court of DuPage
County, People of the State of Illinois v. Kerr-McGee Chemical
Corp., in the Circuit Court for the Eighteenth Judicial Circuit,
DuPage County, Illinois, No. 80 CH 298. In that case the People
in part seek the abatement of the same nuisance at the Kerr-
McGee site that is the subject of the instant suit. The case is
scheduled for trial in early March, 1986. After the Seventh Cir-
cuit’s decision in Brown v. Kerr-McGee Chemical Corp., 767 F.2d
1234 (7th Cir. 1985) Kerr-McGee filed suit in federal district court
to enjoin the State Court proceeding. Kerr-McGee Chemical Corp.
v. State of Illinois, United States District Court for the North-

(Footnote continued on following page)

—)5—

previous ruling the court correctly indicated that the
City’s complaint was directed at nonradiation hazards and
that regulation of nonradiation hazards by the states and
their political subdivisions has not been preempted. Peo-
ple of the State of Illinois v. Kerr-McGee Chemical Corp.,
677 F.2d 571, 582 (7th Cir. 1982), accord, Pacific Gas and
Electric Co. v. State Energy Resources Conservation and
Development Commission, 461 U.S. 190 (1983).

This ruling is consistent with § 2021(k) of the AEA
which provides in part:
[njothing in this section shall be construed to affect
the authority of any State or local agency to regu-
late activities for the purposes other than protection
against radiation hazards.
42 U.S.C. § 2021(k).

This Court has consistently held that Congress intended
to preempt only the regulation of radiological hazards.
Pacific Gas and Electric Co. v. Energy Resources Con-
servation and Development Commission, 461 U.S. 190
(1983), Northern States Power Co. v. Minnesota, 447 F.2d
1143 (8th Cir. 1971), affirmed, 405 U.S. 1035 (1972).

The only limit imposed by the court in the State of
Illinois case was that no actual conflict could exist be-
tween the NRC’s authority and the City’s suit. People
of the State of Illinois v. Kerr-McGee Chemical Corp., 677
F.2d 571, 582 (7th Cir. 1982).

7 continued
ern District of Illinois, Eastern Division, No. 85 C 10068. The
judge sitting in state court had refused to follow the Seventh Cir-
cuit’s decision and Kerr-McGee’s appeal to the Appellate Court
was dismissed.

A decision has not yet been rendered in that case. This conflict
between State and Federal governments, highlights the public im-
portance of the instant case and raises supremacy clause issues.

The restriction imposed by the court in the State of Illi-
nois case is consistent with this Court’s proclamation in
Silkwood that:

But insofar as damages for radiation injuries are con-
cerned, preemption should not be judged on the basis
that the federal government has so completely oc-
cupied the field of safety that state remedies are fore-
closed but on whether there is an irreconcilable con-
flict between the federal and state standards or
whether the imposition of a state standard in a dam-
ages action would frustrate the objectives of the fed-
eral law.
Silkwood v. Kerr-McGee Corp., _. U.S. ____ , 104 S.Ct.
615, 626 (1984). The Seventh Circuit’s opinion does not
contain any basis to satisfy the criterion for preemption
enunciated in Silkwood.

The error in the court’s reasoning in the instant case
is that it assumed that an actual conflict exists between
the relief sought by Petitioners and the authority of the
NRC. In fact no conflict presently exists and the court
merely speculated that one may arise. The purpose of the
common law, Illinois nuisance law, pollution standards and
local building codes relied upon by Petitioners in their
complaint is not to regulate the radiological hazards or
nuclear safety aspects of the Kerr-McGee site. The fact
that enforcement of these state and local iaws may im-
pact on how Kerr-McGee operates its business at the site
is not conclusive that they are preempted. Brown v. Kerr-
McGee Chemical Corp., 767 F.2d 1234, 1244 (7th Cir. 1985)
(Judge Cudahy, dissenting).8 A conflict which justifies pre-

® This Court has twice, in the past two years, allowed state
regulation which has directly impacted en aspects of the nuclear
industry that are regulated by the federal government. Pacific Gas
and Electric Co. v. Energy Resources Conservation and Develop-
ment Commission, 461 U.S. 190 (1983), Silkweod v. Kerr-McGee
Corp., 464 U.S. 238 (1984).

~~

emption must be actual. The court may not fabricate a
conflict where none actually exists. Huron Portland Ce-
ment v. City of Detroit, 326 U.S. 440 (1960). The conflict
must be of the type that it makes it physically impossi-
ble for Kerr-McGee to comply with both federal and state
regulations. Florida Lime & Avocado Growers, Inc. v.
Paul, 373 U.S. 182, 142 (1963), Silkwood v. Kerr-McGee,
464 U.S. 238, 104 S.Ct. 615, 621, 626 (1985). Neither Kerr-
McGee, the Seventh Circuit, nor the NRC has indicated
that it would be impossible for Kerr-McGee to comply
with both state and federal law to accomplish removal of
the hazardous waste. The purpose of Petitioners’ request
for relief is not to interfere with the NRC’s jurisdiction,
but to deprive Kerr-McGee of its choice of onsite encap-
sulation.®

In the instant case no conflict justifying preemption
exists. The purported conflict is merely speculative and
not actual. In the FES the NRC recommended onsite en-
capsulation of the waste. However, the FES submitted
by the NRC was rejected by the NRC hearing board. In
supporting their decision, the Seventh Circuit majority
stated that nothing could prevent residents of other states
from utilizing injunctive relief to prevent the relocation
of the waste from its current site to another state. Brown
v. Kerr-McGee Chemical Corp., 767 F.2d 1234, 1242 (7th
Cir. 1985). However, this is mere conjecture and is an im-
proper basis for a finding of preemption. Cf. Huron Port-
land Cement v. City of Detroit, 326 U.S. 440 (1960). Final-
ly, there is nothing to indicate that Kerr-McGee, pursuant
to a mandatory injunction, could not remove the toxic

® Kerr-McGee’s preference to bury the waste on site appears to
be motivated by the difference in cost to Kerr-McGee between on-
site and offsite burial which is approximately $35,000,000.00 (FES
pp. 3-23 to 3-24).

es

a

waste from its site while complying with both state and
federal law. Since no irreconcilable conflict with the Fed-
eral statutory scheme exists, the abrogation of common
law remedies, injunctive relief, on preemption grounds can
not be justified. Cf. Nadar v. Allegheny Airlines, 426 U.S.
290, 297, 299 (1976).

The majority’s opinion has impinged not only on the
traditional rights of individuals to seek injunctive relief
where no adequate remedy at law exists, but also on tra-
ditional State powers to regulate toxic waste.!° The NRC
has been exploring a solution for the wastes at the site
since 1979, yet no immediate resolution appears possible.
The immediate effect of the Seventh Circuit’s decision is
to divest the states of traditional powers to regulate local
health concerns associated with nonradiological hazardous
waste and force its citizens to suffer continuing exposure
to these toxic wastes because of the NRC’s inability to
resolve the problem in a reasonably prompt fashion. Since
the decision sought to be reviewed has the profound na-
tional effect of eliminating the possibility of judicial relief
in a domain of great public concern it is imperative that
this Court conduct a review of the decision.

10 The public importance of the issues presented for review is
underscored by the State of Illinois filing amicus briefs in sup-
port of Petitioners’ position with the Seventh Circuit.

=

CONCLUSION

For the foregoing reasons, Petitioners, Donald E. Brown;
Edith R. Brown; Edwin E. Brown; Betty Wolsfeld; and

West Chicago State Bank, respectfully pray that their

Petition for Writ of Certiorari be granted.

Respectfully submitted,

Aupo E. Bort
Wa tter P. Maksym
(Counsel of Record)
Drake OakBrook Plaza
2211 York Road, Suite 208
Oak Brook, Illinois 60521
(312) 789-8585
Counsel for Petitioners
Of Counsel:

SAMUEL J. Berar III

Borti, Marinaccio, DESALvo
& Pirper, Lrp.

Drake OakBrook Plaza

2211 York Road, Suite 208

Oak Brook, Illinois 60521

(312) 789-8585

— eS ee ee ae ee ee Se

A-l
APPENDIX A

IN THE
UNITED STATES COURT OF APPEALS
FOR THE SEVENTH CIRCUIT

No. 84-1294

DONALD E. BROWN; EDITH R. BROWN; EDWIN E. BROWN;
BETTY WOLSFELD; and WeEST CHICAGO STATE BANK, as
Trustee u/t/a 213, dated September 16, 1969,

Plaintiffs- Appellants,

Uv.
KERR-MCGEE CHEMICAL CORPORATION, a Delaware

Corporation,
Detendant- Appellee.

Appeal from the United States District Court for
the Northern District of Illinois, Eastern Division.
No. 82 C 6323—Frank J. MeGarr, Jd

ARGUED NOVEMBER 9, 1984—DECIDED JULY 18, 1985

Before Woop and CUDAHY, Circuit Judges, and
WISDOM, Senior Circuit Judge.*

WoobD, Circuit Judge. This case is yet another lawsuit
concerning the approximately forty-three acres of land
known as the Kerr-McGee West Chicago Rare Earths
Facility. See City of West Chicago v. United States Nuclear
Regulatory Commission, 701 F.2d 632 (7th Cir. 1983);
Illinois v. Kerr-McGee Chemical Corp., 677 F.2d 571 (7th
Cir.), cert. denied, 459 U.S. 1049 (1982). This time we are
asked to decide whether the Atomic Energy Act, as
amended, 42 U.S.C. § 2011 ef. seq., preempts a request for a

* The Honorable John Minor Wisdom, Senior Circuit Judge for
the Fifth Circuit, is sitting by designation.

A-2

state-law injunction to remove nonradioactive hazards
when the nonradioactive and radioactive materials are
inseparable. We hold that the federal law preempts
plaintiffs’ request that the district court order the defend-
ant Kerr-McGee to move the waste material to another
location.

#

The Kerr- McGee property in West Chicage consists of
an eight acre factory site, a twenty-seven acre storage
and disposal site, and an eight acre intermediate site
connecting the other two. From 1932 to 1973, Kerr-
McGee and its predecessor companies used the factory
area to process monazite ores containing thorium, a natu-
ral radioactive element, and then disposed of the solid and
liquid wastes in the storage area. Kerr-McGee stopped
processing monazite ores in 1973, but continues, under
license from the Nuclear Regulatory Commission
(“NRC”), to possess and store thorium ores at the West
Chicago site. Pursuant to a July 1977 order of the NRC,
Kerr-McGee has submitted to the NRC a proposed plan
for decommissioning the inactive West Chicago site and
for disposing of the contaminated materials. On May 27,
1983, the NRC issued its Final Environmental Statement
(“FES”), which outlined eight alternative proposals and
recommended that the buildings be razed and the wastes
be encapsulated and stored on the site for an in-
determinate time period. The Commission subsequently
authorized the Atomic Safety Licensing Board (““ASLB”’)
to hold a hearing on the FES — as requested by the
Illinois Attorney General.

Plaintiffs-appellants Donald E. Brown, Edith R.
Brown, and Betty Wolsfeld are the equitable and benefi-
cial owners of two parcels of residential property whose
backyards abut the Kerr-McGee site. Plaintiffs rent the
904 Joliet Street residence to Mr. and Mrs. R. Gill, and
Donald Brown and his mother Edith reside at 914 Joliet
Street.

A-3

Plaintiffs brought this action on a variety of state law
tort theories. Plaintiffs allege that the buildings on the
Kerr- McGee property are in such a state of disrepair as to
constitute a public and private nuisance.’ In addition,
plaintiffs claim that rats from the disposal site have
entered the Browns’ backyard and made numerous holes.
The plaintiffs also allege that the wastes dumped in the
storage area include hazardous chemicals such as barium
sulfate, sodium phosphate, ammonia, ethylenediaminete-
traacetic acid, sulfuric acid, and kerosene. According to
plaintiffs, the liquid wastes deposited in ponds at the
disposal site by Kerr-McGee and its predecessors have
permeated the soil and polluted the water table. The
water table is further polluted, plaintiffs allege, as rain
and melting snow percolate through the mounds of solid
waste and thereby become contaminated. Plaintiffs claim
that the underground waters near the Kerr-McGee site
exceed the water pollution standards set by the JJlinois

The plaintiffs allege that the current conditions existing in
the factory area include:

a) open pits filled with refuse and chemicals;

b) holes in floors two through four of building 9, averaging
three feet in diameter;

c) loose glass in windows;

d) broken glass on pavement below windows;

e) boards off windows;

f) animal litter scattered throughout the buildings;

g) fallen walis, debris, abandoned equipment, and chem-
icals;

h) fallen, collapsed, and sagging roofing; and
i) scattered empty beer cans, bottles, and other litter.

Plaintiffs further claim that the area is accessible to the “public
in general and children in particular through and over fences,”
and has “inadequate security and lighting.”

A-4

Pollution Control Board. Donald Brown also stated at his
deposition that rain drains off the waste piles and into his
yard.

Plaintiffs’ complaint requested three types of relief.
Count I sought an injunction ordering Kerr-McGee to
repair or destroy the existing structures on the property
and to remove all the hazardous wastes to some other
location. Count II sought compensatory damages, and
count III sought compensatory and punitive damages.
Kerr- McGee, offering affidavits that all the wastes are
radioactive and arguing that federal law preempts a
state-law injunction, moved for dismissal of that part of
count I requesting that the wastes be removed and stored
at some other location. The district court agreed that
federal law preempted such relief and granted partial
summary judgment for defendant Kerr-McGee. Plain-
tiffs appealed the summary judgment order to this court.

IT.

We first consider whether the district court order
granting partial summary judgment for defendant on
count I is appealable. The order is obviously not final, and
the district court did not certify the issue under 28 U.S.C.
§1292(b). Appellants argue, however, that this court has
jurisdiction under 28 U.S.C. § 1292(a)(1) because the
summary judgment had the practical effect of denying
plaintiffs’ request for permanent injunctive relief. We
agree.

Section 1292(a)(1) provides that appellate courts
have jurisdiction of interlocutory district court orders

Although the defendant phrased its motion as one to dismiss
part of the complaint, the defendant submitted a copy of the
FES, two affidavits, and portions of deposition testimony in
support of its motion. Since the district court relied on at least
the FES, we treat the motion as one for summary judgment.
Fed. R. Civ. P. 12(c).

A-5

“granting, continuing, modifying, refusing or dissolving
injunctions.” 28 U.S.C. § 1292(a)(1) (1982). The plaintiffs
never moved for an injunction, but an order having the
practical effect of denying an injunction is considered a
denial of an injunction for purposes of section 1292(a)(1).
See Carson v. American Brands, Inc., 450 U.S. 79, 83-84
(1981); Data Cash Systems, Inc. v. JS&A Group, Inc., 628
F.2d 1038, 1040 (7th Cir. 1980). Here the plaintiffs’
complaint sought injunctive relief in count I and damages
in counts II and III. By granting partial summary
judgment in favor of the defendant on plaintiffs’ request
that the wastes be moved elsewhere, the court denied the
plaintiffs part of the injunctive relief they sought; thus
the court’s order constitutes a denial of an injunction for
purposes of section 1292(a)(1). See Plymouth County
Nuclear Information Committee, Inc. v. Boston Edison Co.,
655 F.2d 15, 17 (1st Cir. 1981).

Prior to the Supreme Court’s decision in Carson, a
finding that the summary judgment had the practical
effect of denying an injunction would end our inquiry and
we would take jurisdiction. See Data Cash Systems, Inc.,
628 F.2d at 1040; cf. South Bend Consumers Club, Ine. v.
United Consumers Club, Inc., 742 F.2d 392, 394 (7th Cir.
1984). Carson, however, requires more. In Carson, the
Court held that an interlocutory order of a district court is
immediately appealable under section 1292(a)(1) only if
the appellant demonstrates that the order has a “serious,
perhaps irreparable, consequence,” and that the order can
be “effectually challenged” only by immediate appeal.
Carson, 450 U.S. at 84 (quoting Baltimore Contractors, Inc.
v. Bodinger, 348 U.S. 176, 181 (1955)). Although this two-
part test seems straightforward, there is some dis-
agreement — both among circuits and within this circuit
— as to whether Carsen applies when the interlocutory
order addresses the merits of the claim.

In Carson, a discrimination case, the Supreme Court
held that an appeal lay from a district court order denying
a joint motion of the parties to approve and enter a
negotiated consent decree. The Court decided that, be-

A-6

cause the order would cause the plaintiffs to lose both their
right to settle the case and any job opportunities that
might arise under the consent decree, the order had
“serious, perhaps irreparable, consequences’ that peti-
tioners [could] ‘effectually challenge’ only by an imme-
diate appeal.” 450 U.S. at 90.

Carson has raised some questions because, although
the Supreme Court states that the “serious, perhaps
irreparable, consequences” test is applicable to inter-
locutory judgments appealed under section 1292(a) (2), id.
at 84, the Court relies primarily on cases in which the
interlocutory orders were not decisions on the merits of
the appellants’ claims. See Gardner v. Westinghouse
Broadcasting Co., 437 U.S. 478, 480 (1978) (order denying
class certification); Switzerland Cheese Association, Inc. v.
E’. Horne’s Market, Inc., 885 U.S. 23, 24-25 (1966) (appel-
lants sought interlocutory review of district court’s denial
of appellants’ motion for summary judgment); Baltimore
Contractors, 348 U.S. at 177 (district court order refusing
to stay a state court accounting action pending arbi-
tration). Consequently, several courts, including a pane!
of this circuit, have read Carson narrowly to apply only to
interlocutory orders that did not reach the merits of
appellants’ claims or did not dispose of all requests for
injunctive relief. See Winterland Concessions Co. v. Trela,
735 F.2d 257, 260-61 (7th Cir. 1984); Center for National
Security Studies v. Central Intelligence Ayency, 711 F.2d
409, 412 (D.C. Cir. 1983); Tokarcik v. Forest Hills School
Instrict, 665 F.2d 443, 446-47 (3rd Cir. 1981), cert. denied,
458 U.S. 1121 (1982). These courts rely on General
Electric Co. v. Marvel Rare Metals Co., 287 U.S. 430, 433
(1932), for the rule that an interlocutory order disposing
of all requests for injunctive relief and addressing the
merits of the case is immediately appealable under section
1292(a)(1) and Gardner and Carson for the proposition
that an order either not disposing of all requests for
injunctive relief or not addressing the merits is immedi-
ately appealable only if the appellant shows a “serious,
perhaps irreparable, consequence” that can be effectually

A-7

challenged only by immediate appeal. See Winterland
Concessions, 735 F.2d at 261 (citing Gardner, 437 U.S. at
481); Center for National Security Studies, 711 F.2d at 412-
13 & n.6; see also Gardner, 437 U.S. at 481 n.7 (“There is an
important distinction between an order denying an in-
junction on the merits and ‘one based on alleged abuse of a
discretionary power over the scope of the action.’’’)
(quoting Stewart-Warner Corp. v. Westinghouse Electric
Corp., 325 F.2d 822, 829 (2nd Cir. 1963) (Friendly, J.,
dissenting) ).

Other courts, including a different panel of this cir-
cuit, have held that Carson prescribes a broad rule appli-
cable to all appeals under section 1292(a)(1) — whether or
not the district court addressed the merits of the appel-
lant’s claim. See Carson, 450 U.S. at 84; South Bend
Consumers Club, 742 F.2d at 393-94; see also United States
v. RMI Co., 661 F.2d 279, 281-82 (3rd Cir. 1981); Gould v.
Control Laser Corp., 650 F.2d 617, 621 (Sth Cir. 1981). This
position is supported by the Supreme Court’s suggestion in
Carson that each of the prior cases on appellate jurisdic-
tion under section 1292{a)(1) could be explained in terms
of the “serious, perhaps irreparable, consequences”
requirement. Carson, 450 U.S. at 84-86; see Donovan v.
Robbins, 752 F.2d 1170, 1173-74 (7th Cir. 1985). Indeed,
the Court even suggested that Marvel, the case now used
as the basis for the “merits” distinction, reflected a
finding by the Court that “serious, perhaps irreparable,
consequences” would have resulted without an immediate
appeal. Carson, 450 U.S. at 86 n.11; see also Shirey v.
Bensalem Township, 663 F.2d 472, 477 (3rd Cir. 1981).

We need not resolve these inconsistencies, however,
because in the present case the two analyses yield the
same result. The courts adopting the “addressing the
merits” approach have held that an interlocutory order
denying, on the merits, a request for an injunction is
immediately appealable under section 1292(a)(1) only if
the order disposes of all pending requests for injunctive
relief. See Winterland Concessions, 735 F.2d at 261. If

A-8

some requests for injunctive relief are still pending in the
district court, the appellant must show that the inter-
locutory order will cause serious, perhaps irreparable,
consequences that can be effectually challenged only by
immediate appeal. See Center for National Security Stud-
ies, 711 F.2d at 413. In the present case, the district court
granted summary judgment for the defendant with re-
spect to plaintiffs’ request for an injunction ordering the
wastes removed to ‘some other safe and distant location,”
but the court did not decide whether plaintiffs are entitled
to the other requested injunctive relief. Thus, even
though the district court addressed the merits of plain-
tiffs’ claim for an injunction ordering removal of the
wastes, the Winterland Concessions approach would re-
quire plaintiffs to show that the interlocutory order will
result in serious, perhaps irreparable, harm. Since, as we
noted above, the South Bend Consumers Club approach
requires a showing of serious, perhaps irreparable, con-
sequences for any appeal under section 1292(a)(1), see 742
F.2d at 393-94, in this case both interpretations of Carson
will yield the same result.

In the present case, the depositions and the Final
Environmental! Impact Statement support plaintiffs’ con-
tention that toxic wastes at the Kerr-McGee site have
contaminated their land. Plaintiffs-appellants further
claim that such contamination has adversely affected their
health. Since in reviewing a summary judgment we view
all pleadings and supporting papers in the light most
favorable to the non-moving party, see Trulson v. Trane
Co., 738 F.2d 770, 771 (7th Cir. 1984), we assume that
detrimental health effects will result between now and the
district court’s final decision. Cf. RMI Co., 661 F.2d at 282
(no continuing harm during trial). Furthermore, accord-
ing to plaintiffs, every rainfall or melting snow flushes
more of the toxic wastes into their water supply. These
effects, because they are more than compensable economic
losses, cf. South Bend Consumer Club, 742 F.2d at 394, are
serious, perhaps irreparable, consequences that plaintiffs

A-9

can effectually challenge only by immediate appeal.’ See
Carson, 450 U.S. at 86-90 (lost job opportunities constitute
serious, perhaps irreparable, harm).

Citing Plymouth County Nuclear Information Com-
mittee, Inc., 655 F.2d at 18, defendant Kerr- McGee argues
that plaintiffs’ failure to seek a preliminary injunction
precludes a finding that serious or irreparable harm will
result pending the district court’s final decision. We agree
that a party’s failure to seek preliminary injunctive relief
is a good indication that the status quo can be maintained
until the ultimate conclusion of the litigation. See South
Bend Consumers Club, 742 F.2d at 394. But “a good
indication” is not a conclusive bar to interlocutory appeal.
See Kartell v. Blue Shield of Massachusetts, Inc., 687 F.2d
543, 553 n.21 (1st Cir. 1982). In Plymouth County, the
plaintiff waited nearly a year and a half between the
denial of its motion for a preliminary injunction and its
appeal of the dismissal of that part of the complaint
requesting injunctive relief. 655 F.2d at 17-18. In South
Bend Consumers Club, the appellant delayed requesting a
preliminary injunction. 742 F.2d at 394. Thus in both
eases the parties’ actions implied that no serious harm
would occur without a preliminary injunction.

The present case differs in that here preliminary
injunctive relief was impractical. Plaintiffs claim that the
toxic wastes on Kerr-McGee’s property have caused, and
continue to cause, serious, perhaps irreparable, harm to
Although Carson requires both that the order cause “serious,
perhaps irreparable, consequences” and that the order can be
“effectually challenged” only by immediate appeal, the Supreme
Court found the second prong satisfied in Carson because the
serious, irreparable consequences could result between the time
of the interlocutory order and the district court’s final decision.
Because the irreparable effects could result between the sum-
mary judgment and the appeal from the final judgment in the
present case, an appeal from the final judgment may not
provide plaintiffs adequate relief from the intervening harm.
Thus the order can be effectually challenged only by immediate
appeal.

3

A-10

plaintiffs’ health and to their property. If Kerr-McGee
were still creating and dumping toxic wastes on the site,
plaintiffs could request a preliminary injunction enjoining
Kerr- McGee from further dumping. But plaintiffs admit
that Kerr- McGee has not operated the factory since 1973,
and it would be irrational for a district court to enter a
preliminary injunction ordering Kerr-McGee to remove
all toxic wastes from the West Chicago site. See Triebwas-
ser & Katz v. American Telephone & Telegraph Co., 535 F.2d
1356, 13860 (2nd Cir. 1976) (purpose of a preliminary
injunction is to maintain the status quo, not to give the
moving party affirmative relief equivalent to the ultimate
relief sought). Consequently, in the unusual circum-
stances of this case, we believe that plaintiffs’ failure to
request preliminary injunctive relief does not preclude a
finding that the district court order will result in serious,
perhaps irreparable, consequences that can be effectually
challenged only by immediate appeal. We believe that
appellants have met their burden to prove such con-
sequences and we therefore find the order appealable
under section 1292(a)(1).

ITT.

The district court held that plaintiffs’ request for an
injunction ordering that the wastes be removed and
stored elsewhere was preempted because such an order
would conflict with the Commission’s exclusive authority
over the disposal of radioactive materials. Plaintiffs and
amicus State of Illinois, relying on Jllinois v. Kerr-McGee
and 42 U.S.C. § 2021(k), argue that federal law preempts
state regulation of radiation hazards but not state regu-
lation of nonradiation hazards. Furthermore, appellants
argue, since Illinois law permits a court to order ex-
humation of hazardous wastes, see Village of Wilsonville v.
SCA Services, Inc., 86 Ill. 2d 1, 31-36, 426 N.E.2d 824, 839-
41 (1981), the district court can find that the nonradiation
hazards of the Kerr- McGee wastes justify the removal of
the wastes to another site. We disagree, however, and
hold that when the radiation and nonradiation hazards

A-11

are inseparable, federal law preempts a state-law in-
junction ordering removal of the wastes.

State law, and thus state law remedies, are preempted
if federal law so pervades a given field as to evidence a
congressional intent to occupy that field. Silkwood v.
Kerr- McGee Corp., 104 S. Ct. 615, 621 (1984). Even if
Congress has not entirely displaced state law in a field,
state law is still preempted if an “actual conflict” exists
between state and federal law. Jd. Such a conflict occurs
“when it is impossible to comply with both state and
federal law” or “where the state law stands as an obstacle
to the accomplishment of the full purposes and objectives
of Congress.” Jd.

When a state regulation concerns an activity in-
volving radioactive materials, the preemption issue nor-
mally turns on whether the state is regulating radiation
or nonradiation hazards. See, e.g., Northern States Power
Co. v. Minnesota, 447 F.2d 1148, 1149-54 (8th Cir. 1971)
(radiation hazards), aff'd 405 U.S. 1035 (1972); Marshall v.
Consumers Power Co., 65 Mich. App. 237, 247, 237 N.W.2d
266 (1976) (nonradiation hazards). This distinction is
reflected by the language of section 274(k) of the Atomic
Energy Act (“AEA”), which states:

(k) Nothing in this section shall be construed to
affect the authority of any State or local agency to
regulate activities for purposes other than protection
against radiation hazards.

42 U.S.C. § 2021(k) (1982).‘ Thus the AEA preempts a

‘ Although this provision applies only to the preemptive effect
of section 274, the Supreme Court has interpreted section
274(k) asa reflection of the genera! distinction between federal
and state authority to regulate activities covered by the Atomic
Energy Act, as amended. See Pacific Gas and Electric Co. v. State
Energy Resources Conservation & Development Comm'n, 461 U.S.
190, 210 (1983).

A-12

state attempt to impose more stringent limitations on the
radioactive effluents of a nuclear power plant. See North-
ern States Power, 447 F.2d at 1147-50. By contrast, states
retain the power to determine the need for additional
electrical capacity and they may choose not to build a
nuclear power plant for economic reasons. See Pacific Gas
and Electric Co. v. State Energy Resources Conservation &
Development Commission, 461 U.S. 190, 205-08 (1983).
Analogously, a private plaintiff may rely on state law to
obtain injunctive relief fram nonradiation hazards that do
not involve radiation hazards. Illinois v. Kerr-McGee, 677
F.2d at 582.

If the nonradiation hazards at the Kerr-McGee site
were separable from the radiation hazards, plaintiffs could
maintain an action to have the nonradioactive wastes
removed “to some other safe and distant location.” See
Village of Wilsonville, 86 Ill. 2d at 35-36, 426 N.E.2d at 841.
Congress clearly did not intend federal law to “occupy the
field” of nonradioactive hazardous waste disposal. See 42
U.S.C. § 6929 (1982); City of Philadelphia v. New Jersey,
437 U.S. 617, 620-21 n.4 (1978). Furthermore, because the
plaintiffs seek to abate the nonradiation rather than the
radiation hazards, removal of separable, nonradioactive
material would not cause a conflict between state and
federal law. See Jilinois v. Kerr-McGee, 677 F.2d at 582.
Our analysis is made somewhat more complex because, as
both parties agree, the radioactive and nonradioactive
materials are “inextricably intermixed.”

In this case, we find no explicit congressional intent or
pervasive federal scheme that preempts the state laws
relied on by plaintiffs. When Congress evidences an
intent to occupy a given field, any state law falling within
that field is preempted. Silkwood, 104 8. Ct. at 621. Thus
the AEA, which provides a pervasive scheme for regu-
lating radioactive materials, preempts any state regu-

A-13

lation of radiation hazards.’ Northern States Power Co., 447
F.2d at 1147-50. But while an Illinois law regulating
radiation hazards would be void, see Commonwealth Edison
Co. v. Poilution Control Board, 5 Ill. App. 3d 800, 801, 284
N.E.2d 342, 342 (1972), the laws relied on by plaintiffs are
undoubtedly valid in soine circumstances. These laws do
not regulate radiation hazards but instead concern pollu-
tion standards, building codes, and public nuisance. In-
deed, as we held in Illinois ». Kerr-McGee, plaintiffs can
bring an action based on these laws against Kerr-McGee
as iong as the remedy involves no radioactive materials.
677 F.2d at 582.

Nonetheless, plaintiffs’ request for injunctive relief is
still preempted if a conflict exists between state and
federal law. To determine whether a conflict exists, we
must look to the facts of the case. J/linois v. Kerr- McGee,
677 F.2d at 581. The wastes at the West Chicago site,
because they consist of “the tailings or wastes produced by
the extraction or concentration of ... thorium from any
ore processed primarily for its source material content,”
constitute “byproduct material” under the Atomic Energy
Act, as amended by the Uranium Mill Tailings Radiation
Control Act. 42 U.S.C. § 2014(e)(2); see FES, at H-4, H-5
(“[A]t least 60% of the monazite ore was processed
primarily for its source material content and the resulting
tailings and wastes are clearly byproduct material.’’). The
NRC has exclusive authority to regulate the radiation
hazards of the byproduct material’ and Kerr-McGee must
obtain a license from the NRC for decommissioning the
West Chicago site and disposing of the wastes. See 42
U.S.C. § 2113-14.

States may assume responsibility for the regulation of some
radiation hazards by entering an agreement with the NRC. 42
U.S.C. § 2021(b). This provision is not applicable here, however,
since Illinois has not entered such an agreement.

6

As noted above, Illinois has not entered an agreement with
the NRC to regulate the radiation hazards of byproduct mate-
rial. See 42 U.S.C. § 2021(b).

A-14

Plaintiffs asked the district court to order Kerr-
McGee to remove the wastes to “some other safe and
distant location.” Plaintiffs and amicus argue that the
inseparability of the materials should not alter the anal-
ysis of Jllinois v. Kerr-McGee; they suggest that the
district court can find that the nonradiation hazards
violate Illinois pollution laws and can order Kerr- McGee
to move the wastes to some site that both satisfies [llinois
pollution standards and meets the licensing standards of
the Nuciear Regulatory Commission. This argument reads
Illinois v. Kerr- McGee too broadly. In that case, we held
only that, with respect to the nonradiation hazards, the
City of West Chicago could ‘pursue its own remedies only
to the extent that they do not conflict with NRC regu-
lation of radiation hazards.” 677 F.2d at 584.

In the Final Environmental Statement for the Kerr-
McGee site, the NRC staff analyzed eight different dis-
posal alternatives and recommended on-site encapsulation
as the best alternative. Although the Commission has not
yet decided which alternative to license, an injunction
ordering Kerr-McGee to remove the byproduct material
from the West Chicago site would, in effect, substitute the
judgment of the district court for that of the NRC as to
whether on-site encapsulation is the best method of stor-
ing this byproduct material. True, the injunction sought
by plaintiffs would not order the NRC to license a specific
waste disposal site, but it would prevent the NRC from
choosing the site recommended by the NRC staff.
Furthermore, if federal law does not preempt plaintiffs’
request for an injunction, notching prevents neighbors of
other prospective sites from relying on state law to obtain
injunctions preventing NRC consideration of those loca-
tions. Such state law remedies, though not attempts to
regulate the radiation hazards of byproduct material,
nonetheless interfere with the NRC’s ability to choose the
method of disposal that, in light of radiation, nonradia-
tion, and economic considerations, is the most appropriate.
We therefore hold that plaintiffs’ request for an injunction
ordering the Kerr- McGee wastes moved elsewhere is pre-

icc

A-15

empted because, if granted, the injunction would stand
“as an obstacle to the accomplishment of the full purposes
and objectives” of federal regulation of radiation hazards.
Silkwood, 104 S. Ct. at 621.

Our holding does not leave plaintiffs without a rem-
edy. Cf. Silkwood, 104 S. Ct. at 623; Illinois v. Kerr-MceGee.
677 F.2d at 583. Congress instructed the NRC to ensure
“that the management of any byproduct material... is
carried out in such a manner as... the Commission deems
appropriate to pretect the public health and safety and
the environment from radiological and nonradiological
hazards” associated with the possession of byproduct ma-
terial. 42 U.S.C. § 2114(a)(1) (emphasis added); see also
42 U.S.C. § 2114(c) (licensee may propose alternatives to
Commission’s requirements, but Commission may accept
alternatives only if they will achieve an equivalent or
greater level of safety). The Commission must also ensure
chat the approved disposal plan conforms with the stan-
dards set by the Environmental Protection Agency for the
protection of the public health and the environment from
the radiation and nonradiation hazards associated with
the disposal of byproduct material. See 42 U.S.C.
§ 2114(a)(2); see also 42 U.S.C. § 2022(b)(1); Health and
Environmental Protection Standards for Uranium and
Thorium Mill Tailings, 40 C.F.R. §§ 192.40-42 (1984). In
the present case, the NRC staff has evaluated the radi-
ation and nonradiation hazards of the eight alternatives,
weighed these hazards against the costs of the alterna-
tives, and recommended on-site encapsulation of the
wastes. At the hearing on the FES, the plaintiffs may try
to convince the NRC that, for reasons related to either
radiation or nonradiation hazards, the West Chicago site
is unfit for storing the byproduct material. If plaintiffs
decide that participating in the upcoming hearing is too
expensive, they can rely on the State of Illinois and the
City of West Chicago, who will participate, to represent
their interests.

For the foregoing reasons, plainti%s’ request for in-
junctive relief ordering Kerr-McGee to remove the mill

ee a ee ee

A-16

tailings and other wastes to “some other safe and distant
location” is preempted by federal law.’ The order of the
district court is

AFFIRMED.

In his dissent, Judge Cudahy suggests that our holding
cannot be valid after Silkwood. The Silkwood decision was based
on legislative history that revealed a congressional intent to
allow plaintiffs to recover damages for injuries caused by nucle-
ar hazards. 1045S. Ct. at 622-25. Even in allowing the recovery
of punitive damages, however, the Supreme Court suggested
that federal law would preempt a state law damage award if the
award caused an irreconcilable conflict between state and feder-
al standards or if the imposition of a state standard would
frustrate the objectives of the federal law. Jd. at 626. Here,
although the request is based on state regulation of nonradioac-
tive hazards, an injunction ordering the wastes moved to some
other location frustrates the objectives of federal law by pre-
venting the NRC from choosing what may be the most appro-
priate method of storing this radioactive material. Therefore
the request for an injunction is preempted.

In addition, Judge Cudahy’s second footnote suggests that
he may have read our holding too broadly. This appeal concerns
only the plaintiffs’ request for an injunction ordering the
removal of the radioactive material from the West Chicago site.
The plaintiffs may be able to obtain injunctive relief that does
not require the removal of radioactive materials (¢.g., erection of
fences to prevent entry, extermination of rats). Moreover, once
the NRC licenses a site, the state may regulate the nonradiation
hazards so long as that regulation does not create an irreconci-
lable conflict or frustrate the objectives of the federal law. But
neither of these issues has been tried or is before us. For today
we hold only that federal law preempts a nonagreement state,
see supra notes 5-6, or a plaintiff relying on state law from
obtaining an injunction ordering the removal of radioactive
wastes to some other site.

A-17

CUDAHY, Circuit Judge, concurring in part and dis-
senting in part.

I agree with the analysis of the majority in section II
of its opinion, in which it reasons that the district court
order granting summary judgment on that portion of the
complaint which seeks an injunction requring Kerr-
McGee to remove wastes from the West Chicago site is
appealable, and that therefore this court has jurisdiction.

However, the majority finds preemption much too
easily in section III. We are faced here with a situation in
which legitimate concerns of the states and local residents
may be ignored by the Nuclear Regulatory Commission.
In this whole field Congress has been very reluctant to
override state prerogatives. I do not think the courts
should crash through the tangled thicket of waste disposal,
and in the process upset the balance achieved by Congress
between state and federal law.’

It is important, I believe, to begin by recognizing that
this is not an action to force reduction in levels of
radiological hazards as such. As the majority recognizes,
the plaintiffs’ action is based on state law concerning
pollution standards, building codes and public nuisances.
The majority also concedes that none of these fields of
state regulation are preempted by the Atomic Energy
Act. Further, since the suit is based on these grounds, I
think Silkwood v. Kerr-McGee Corp., 104 S. Ct. 615 (1984),
and Pacific Gas & Electric Co. v. State Energy Resources
Conservation and Development Commission, 461 U.S. 190
(1983), not to mention this court’s recent decision in
Illinois v. Kerr-McGee Chemical Corp., 677 F.2d 571 (7th
Cir.), cert. denied, 459 U.S. 1049 (1982), are more apposite
than Northern States Power Co. v. Minnesota, 447 F.2d 1143
(8th Cir. 1971), summarily aff'd, 405 U.S. 1035 (1972).
Indeed, it seems to me that Silkwood requires that we find
no preemption here.

Whether Congress’s reluctance to preempt is sound public
policy for the long run is not for us to decide. It is abundantly
clear to me, however, that Congress has been reluctant.

A-18

It is also important that we recognize, as the district
court apparently did not, the nature of the proceedings
presently pending before the NRC. See generaliy Kerr-
McGee App. 22-32. Kerr-McGee is required to seek
amendment of the license under which it operates the
West Chicago site. It is presently asking the permission of
the NRC to undertake its preferred course of disposal of
the wastes in question, on-site encapsulation. Even if the
NRC approves that application, it will only be permission
for Kerr-McGee to so dispose of the wastes. Kerr-McGee
will not be required to do so, and there appears to be
nothing other than Kerr-McGee’s economic interest
which prevents it from applying to the NRC for per-
mission to dispose of the wastes in a manner which
complies with both federal and state law.

There is little doubt that state regulation of the
radiation hazards associated with nuclear power gener-
ation is preempted by federal regulation, Northern States
Power, 447 F.2d 1143, because “the Federal Government
has occupied the entire field of nuclear safety concerns,”
Pacific Gas & Electric, 461 U.S. at 212, see Silkwood, 104 5.
Ct. at 617. Cf. Pacific Gas & Electric, 461 U.S. at 205 (state
regulation of “radiological safety aspects involved in the
construction and operation of a nuclear plant” is preemp-
ted); id. at 223-29 (Blackmun, J. concurring) (state
safety regulation not wholly preempted). However, Con-
gress intended to preempt only the regulation of radio-
logical hazards. Pacific Legal Foundation v. State Energy
Resources Conservation and Development Commission, 659
F.2d 903, 923 (9th Cir. 1981), aff'd sub nom. Pacific Gas &
Electric, 461 U.S. 190 (1983); Northern States Power, 447
F.2d at 1149-50. See also Pacific Legal Foundation, 659
F.2d at 923 n.32 (collecting cases holding same). “[T jhe
States exercise their traditional authority over the need
for additional generating capacity, the type of generating
facilities to be licensed, land use, ratemaking, and the
like.” Pacific Gas & Electric, 461 U.S. at 212 (emphasis
supplied; footnote omitted). This is in accord with the
language of section 274(k) of the Atomic Energy Act,
which permits the states “to regulate activities for pur-

A-19

poses other than protection against radiation hazards.” 42
U.S.C. § 2021(k). See Pacific Gas & Electric, 461 U.S. at
210.

The purpose of the state regulation is critical in
determining whether the regulation is preempted. Paci-
fic Gas & Eleciric 461 U.S. at 213-16; Silkwood, 104 S. Ct.
at 631 (Blackmun, J. dissenting). There is no claim here
that the purpose of Illinois’ nuisance law, building codes
and pollution standards is to regulate the radiological
hazards or nuclear safety aspects of nuclear fuel process-
ing. Therefore these are not preempted by the Atomic
Energy Act and the subsequent federal regulation. Paci-
fic Gas & Electric, 461 U.S. at 216 ("| W]e accept Califor-
nia’s avowed economic purpose as the rationale for enact-
ing § 25524.2. Accordingly, the statute lies outside the
occupied field of nuclear safety regulation.” (footnote
omitted)). The fact that enforcement of these state laws
may impact on how Kerr- McGee carries out its business at
the West Chicago site is not conclusive that they are
preempted. Indeed, the Supreme Court has twice in the
past two terms allowed state regulation which has directly
impacted on aspects of the nuclear industry that are
regulated by the federal government.

In Pacific Gas & Electric v. State Energy Resources
Conservation and Development Commission, 461 U.S. 190
(1983), the Court held that a California statute which
prohibited the construction of any nuclear generating
plants until a method for dispesal of radioactive wastes
was approved by the NRC was not preempted. The statute
was based on the supposed possible economic unviability of
nuclear generation of electricity unless such a disposal
method was developed. Although the statute was based on
economic considerations, which have long been regulated
by the states, the statute gave the state an effective veto
over the construction of any nuclear generating stations
within its borders until certain safety issues were dealt
with by the federal government. Since the purpose of the
state statute was economic not radiation safety, it was not
preempted, 461 U.S. at 216, even though it had an effect

A-20

on the radiation hazards to which the people of California
were exposed.

Just last year the court went even further when it
decided Silkwood v. Kerr-McGee Corp., 104 S. Ct. 615
(1984). In Silkwood the Court upheld a state-authorized
award of punitive damages for injuries caused by nuclear
hazards even though the NRC was vested with exclusive
regulatory authority over the safety aspects of nuclear
development and there had been no significant violation
of the federal safety standards. 104 S. Ct. at 619, 626.
Punitive damage awards have a clear impact on federal
safety standards, for in effect they set independent state
safety standards. See Silkwood, 104 S. Ct. at 628-30
(Blackmun, J. dissenting); id. at 635 (Powell, J. dis-
senting). Yet the Court held that the award of punitive
damages was not preempted. If punitive damages for
violating a jury-imposed standard of radiological safety
are not barred, then clearly injunctive relief based on
state laws not having as their purpose the imposition of
radiological safety standards cannot be preempted.

The majority makes much of the fact that the radio-
active and nonradioactive materials are “inextricably in-
termixed,” arguing that because of this inseparability
state regulation of the nonradioactive materials is pre-
empted by federal regulation of the radiological safety
aspects of the radioactive material. While this argument
might have some plausibility as an initial matter, it
cannot be valid after Silkweod. Karen Silkwood was
contaminated with plutonium from a Kerr-McGee
processing plant. As the majority surely knows, pluto-
nium is itself a radioactive material. The punitive dam-
ages awarded by the jury were to penalize the company
for its conduct which allowed the release of this very
material. On the majority’s theory, these punitive dam-
ages are preempted, for if material is radioactive, then
any nonradioactive aspects are “inextricably intermixed”
with its radioactive aspects. Yet the Supreme Court held
that the punitive damages were not preempted by the
NRC’s regulation of the safety aspects of the production of

A-21

plutonium. 4A fortiori state regulation for otherwise per-
missible purposes of material that is not radioactive can-
not be preempted even when the material is “inextricably
intermixed” with radioactive material.

The majority notes that the NRC is currently consid-
ering a number of alternative sites for disposing of the
wastes presently at the West Chicago site. The majority
then speculates that individuals residing adjacent to these
other sites or state authorities might bring injunctive
actions similar to this one, and jumps to the conclusion
that therefore this action is preempted. This approach is
simply inadmissible. The majority is correct to be aware of
the possibility of this conflict, in which the several states
bar each of the options approved or considered by the
NRC. But so far this conflict is possible, not actual, and it
is Sheer speculation to conclude that it will ever transpire.
Currently there is no conflict between the federal and
state schemes because it is not “physically impossible” for
Kerr-McGee to comply with both. Silkwood, 104 S. Ct. at
626; Pacific Gas & Electric, 461 U.S. at 204; Florida Lime &
Avocado Growers, Inc. v. Paul, 373 U.S. 132, 142-48 (1963).
A court should not delve inte hypothetical situations
seeking out conflicts where none clearly exist. Exron Corp.
v. Governor of Maryland, 437 U.S. 117, 130-31 (1978): see
Huron Portland Cement Co. ». City of Detroit, 362 U.S. 440,
446 (1960).

This court has recognized these very principles in
Illinois v. Kerr-McGee Chemical Corp., 677 F.2d 571 (7th
Cir.), cert. denied, 459 U.S. 1049 (1982). In that case we
stated that there must be “a direct conflict between
federal and state law that cannot be reconciled. Courts
are not to seek out conflicts where none necessarily exist,
.... 677 F.2d at 579 (citations omitted: emphasis supp-
lied). With all respect, it seems to me that the majority is
seeking out a conflict where one does not necessarily exist
in order to bolster its shaky argument for preemption. All
Kerr- McGee need do in order to preclude any conflict is to
request NRC permission for a disposal alternative which
satisfies state law. Further, the hypothetical conflict

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A-22

postulated by the majority is one in which the state law
might prohibit something the NRC would merely permit.
“This sort of hypothetical conflict is not sufficient to
warrant pre-emption.” Eyrron Corp., 437 U.S. at 181. See
Pacific Gas & Electric, 461 U.S. at 218-19 (“Because the
NRC order does not and could not compel a utility to
develop a nuclear plant, compliance with both it and §
25524.2 [the state statute] is possible.”). I therefore
conclude that the injunctive relief requested by plaintiffs
is not preempted.

However, it does not follow from the fact that the
requested injunctive relief is not preempted that it would
be proper to grant that relief at this time. I believe that
this is an apt and proper case for application of the
doctrine of primary jurisdiction. The question underlying
the plaintiffs’ request for injunctive relief—whether the
mill tailings materia! should be disposed of at the West
Chicago site or elsewhere—is presently pending in the
NRC administrative proceeding. The State of Illinois is
one of the parties to that proceeding and has advanced the
same position asserted by plaintiffs here. There is no
contention that the state has not been adequately repre-
senting the plaintiffs’ interests.

Primary jurisdiction is a common jaw doctrine dating
back at least to Teras & Pacific Railway Co. v. Abilene
Cotton Oil Co., 204 U.S. 426 (1907). Primary jurisdiction

applies where a claim is originally cognizable in the
courts, and comes into play whenever enforcement of
the claim requires the resolution of issues which,
under a regulatory scheme, have been placed within
the special competence of an administrative body; in
such a case the judicial process is suspended pending
referral of such issues to the administrative body for
its views.

A-23

United States ». Western Pacific Railroad Co., 352 U.S. 59,
64 (1956). The Supreme Court has explained the reason-
ing underlying primary jurisdiction as follows:

[I]n cases raising issues of fact not within the con-
ventional experience of judges or cases requiring the
exercise of administrative discretion, agencies
created by Congress for regulating the subject matter
should not be passed over. This is so even though the
facts after they have been appraised by specialized
competence serve as a premise for legal consequences
to be judicially defined. Uniformity and consistency
in the regulation of business entrusted to a particular
agency are secured, and the limited functions of
review by the judiciary are more rationally exercised,
by preliminary resort fer ascertaining and inter-
preting the circumstances underlying legal issues to
agencies that are better equipped than courts by
specialization, by insight gained through experience,
and by more flexible procedure.

Far East Conference v. United States, 342 U.S. 570, 574-75
(1952). See also Bradford School Bus Transit, Inc. v.
Chicago Transit Authority, 5387 F.2d 948, 949 (7th Cir.
1976), cert. denied, 429 U.S. 1066 (1977); see generally 4 K.
DAVIS, ADMINISTRATIVE LAW TREATISE, ch. 22 (2d
ed. 1983); B. SCHWARTZ, ADMINISTRATIVE LAW
481-497 (1976).

Primary jurisdiction is applicable here. There are
currently proceedings pending before the NRC con-
cerning Kerr-McGee’s application for a license for on-site
encapsulation of the materials now located at the West
Chicago site. The NRC is considering eight 2:-; >sal
alternatives. There is a possible, though not yet any
actual, conflict between NRC recommendations and state
law. Most important, the NRC presumably has some
specialized knowledge and expertise in this field. Finally,
I note that several other courts have applied the doctrine
of primary jurisdiction in closely analogous situations
when NRC proceedings were pending. See, e.g., Honicker

54
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:
*
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5
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A-24

v. Hendrie, 465 F. Supp. 414, 419 (M.D. Tenn. 1979), affa
mem., 605 F.2d 556 (6th Cir.), cert. denied, 444 U.S. 1072
(1980); Paskavitch v. United States Nuclear Regulatory
Commission, 458 F. Supp. 216 (D. Conn. 1978); Nader v.
Ray, 363 F. Supp. 946, 953 (D.D.C. 1973).

The State of Illinois argues as amicus that primary
jurisdiction is not applicable here because the plaintiffs’
claims are based on state law and the NRC cannot enforce
the relief requested. This argument is beside the point
because primary jurisdiction is applicable even though thie
agency cannot grant the relief requested. See United
States v. ICC, 337 U.S. 426, 464 n.11 (1949) (Frankfurter,
J. dissenting); Lichten v. Eastern Air Lines, 189 F.2d 939
(2d Cir. 1951); SCHWARTZ, supra, 491; see also id. 492
n.253 (collecting cases). Asa practical matter, if the NRC
does adopt certain of the disposal proposals now before it,
the plaintiffs will get the relief they seek, though on
different legal grounds. If, on the other hand, the NRC
fails to adopt one of those alternatives, the plaintiffs will
not be left without a remedy. It must “be emphasized that
primary jurisdiction gives the agency the first, not the
last, word on the matter.” SCHWARTZ , supra, 493. The
initial, but not the final decision is given to the agency.
Federal Maritime Board v. Isbrandtsen Co., 356 U.S. 481,
496-99 (1958) (invalidating rate structure held to be
within primary jurisdiction of Board in Far East Confer-
ence, 342 U.S. 570, and United States Navigation Co. 1.
Cunard Steamship Co., 284 U.S. 474 (1932)); see DAVIS,
supra, § 22:7.

In sum, I do not believe that this injunctive action based
on state law has been preempted, but rather that the NRC
has primary jurisdiction over the issue underlying this ac-
tion. Therefore the majority errs in affirming the dismissal
of count I of the complaint. But it would also be error for
the district court to proceed further in this litigation at this
time. The proper course is for this court to reverse and re-
mand with instructions that the district court stay its
proceedings pending the NRC’s decision in the proceedings
now before it. Pennsylvania Railroad Co. v. United States,

A-25

363 U.S. 202 (1960); Western Pacific Railroad, 352 U.S. at
64; DAVIS, supra, 91-92. Cf. Nader v. Allegheny Airlines,
Inc., 426 U.S. 290 (1976) (stay under doctrine of primary
jurisdiction of common law tort action for fraudulent mis-
representation not appropriate where, inter alia, no technical
expertise was relevant, there was no need for regulatory
uniformity and the issues were within the court’s com-
petence). With the NRC’s consideration of the disposal issue
before it, the district court could then go on to consider
whether the state law interests have been adequately con-
sidered, whether there is an actual conflict between the state
and federal requirements, and, if it is not physically impossi-
ble for Kerr-McGee to obey both state and federal law, what
is the proper relief for these plaintiffs.?

A true Copy:
Teste:

Clerk of the United States Court of
Appeals for the Seventh Circuit

The majority reaches the extreme and unprecedented con-
clusion that the NRC has, in effect, exclusive jurisdiction over
nonradiation hazards at the site in question.

B-1
APPENDIX B

UNITED STATES COURT OF APPEALS
For the Seventh Circuit
Chicago, Illinois 60604

October 24, 1985
Before

Hon. HARLINGTON Woop, JR., Circuit Judge
Hon. RICHARD D. CuDAHY, Circuit Judge
ion. JOHN MINOR Wispom, Senior Circuit Judge*

No. 84-1294

DONALD E. Brown; EbDITH R. Brown; EDWIN E. Brown;
Betty WOLSFELD; and WEsT CHICAGO STATE BANK, as
Trustee u/t/a 213, dated September 16, 1969,

Plaintiffs-Appellants,
v.
KERR-MCGEE CHEMICAL CORPORATION,
a Delaware corporation,
Defendant-Appeliee.

Appeal from the United States District Court for the
Northern District of Hlinois, Eastern Division.
No. 82 C 6323--Frank J. MeGarr, Chief ./udge

* The Honorable John Minor Wisdom, Senior Circuit Judge for
the United States Court of Appeals for the Fifth Circuit, is sitting
by designation.

B-2

ORDER

The dissenting opinion in this case issued July 18, 1985,
is modified as follows:

Page 24, 6th line from the bottom of page, delete: ‘But
it would also be error to reverse and remand for further
proceedings at this time. The proper course would be for
the district court to stay its proceedings pending the
NRC’s decision in the proceedings now before it.’”’ Sub-
stitute therefor: ‘‘But it would also be error for the dis-
trict court to proceed further in this litigation at this time.
The proper course is for this court to reverse and remand
with instructions that the district court stay its proceed-
ings pending the NRC’s decision in the proceedings now
before it.”

On consideration of the petition for rehearing and sug-
gestion for rehearing in banc filed in the above-entitled
cause on August 15, 1985, by plaintiffs-appellants, no judge
in active service has requested a vote thereon, and a ma-
jority of the judges on the original panel have voted to
deny a rehearing.** Accordingly,

It Is ORDERED that the aforesaid petition for rehear-
ing be, and the same is hereby, DENIED.

** Judge Cudahy voted to grant the petition for rehearing.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385018_1394%3A1. Public record. Not legal advice.
