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For Immediate Release:  
For Further Information:
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September 15, 2008  

Lee Moore
609-292-4791

Office of The Attorney General
- Anne Milgram, Attorney General

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State Successfully Opposes Bid by Foreign Oil Companies to Be Excused from Lawsuit Over Passaic River Pollution

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TRENTON -- A Superior Court judge has ruled that a Spanish oil conglomerate and its Argentinean subsidiary must remain defendants in a lawsuit brought on behalf of the Department of Environmental Protection (DEP) against various corporate defendants over the intentional discharge of pollutants -- including the known carcinogen dioxin -- into the Passaic River.

Repsol YPF, S.A., based in Spain, and its subsidiary YPF, S.A., of Argentina, argued in motions before Superior Court Judge Donald Goldman in Essex County that they are not subject to the jurisdiction of the New Jersey courts.

However, Goldman found that the court does have jurisdiction over Repsol and YPF, which previously acquired two New-Jersey-based defendants in the state’s Passaic River lawsuit -- Maxus Energy Corporation and Tierra Solutions, Inc. In ruling, Judge Goldman accepted the argument of lawyers for the state that the court has jurisdiction because Maxus and Tierra are essentially corporate shells controlled by Repsol and YPF and dependent on them for financial support. In addition, the judge ruled that the court has jurisdiction because of state allegations that Repsol and YPF have stripped the assets of “resident-defendant” Maxus in order to leave Maxus asset-poor and unable to satisfy any judgment or liability associated with contamination of the Passaic River. Goldman ruled that such accusations, which essentially allege harm done to the State of New Jersey by Repsol and YPF, also establish the New Jersey court’s jurisdiction.

”This is an important ruling as we continue to pursue costs and damages incurred by the citizens of New Jersey because these defendants intentionally discharged dioxin -- one of the most toxic substances on earth -- into the Passaic River,” said Attorney General Anne Milgram.

”The ruling ensures that Repsol and YPF -- foreign oil conglomerates with substantial assets -- will not be allowed to sidestep our lawsuit alleging their responsibility in contaminating one of the state’s most vital environmental resources,” Milgram said.

Dioxin – particularly a form of it known as 2,3,7,8-tetrachlorodibenzo-p-dioxin (TCDD), which is among the listed contaminants in the state’s Passaic River lawsuit -- is one of the most toxic chemicals ever developed. Human exposure to dioxin at extremely low concentrations can cause severe health effects, including cancer and reproductive damage.

Filed in December 2005, the state’s complaint charges that TCDD, the pesticide DDT and various other pesticides and chemicals were intentionally discharged into the Passaic River from facilities in Newark, for which the defendant companies, including Maxus, Tierra and the Occidental Chemical Corp., are responsible.

Dioxin concentrations in Passaic River fish and crabs are among the highest reported in the world, and present a substantial danger to the public and wildlife. As a result of the pollution at issue in the state’s lawsuit, DEP has been forced to impose fishing and crabbing bans in the Passaic River for more than 20 years. Despite the ban and related public awareness efforts by the state, many people have continued to catch and consume Passaic River fish and crabs.

According to the state’s complaint, dioxin pollution in Passaic River and Newark Bay caused by the various defendants has also had a continuing, adverse impact on New Jersey commerce and its port industry.

The state is represented in the Passaic River litigation by Special Counsel Bill Jackson, John Gilmour and Michael Dobbs of the Houston law firm of Jackson, Fischer, Gilmour & Dobbs, PC, Michael Gordon from the law firm of Gordon & Gordon in Springfield, N.J., and Deputy Attorney General John Dickinson of the Division of Law.

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