Plaintiffs, Civil Action No.

UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS

SAN ANTONIO DIVISION

UNITED STATES OF

_AMERICA,

and

THESTATE OF

_TEXAS,

Plaintiffs,

SA-15-CV-676

Civil Action No. V.

KOCH PIPELINE

_{COMPANY, L.P.,}

Defendant.

COMPLAINT

The United States of America

_{(United States), by}

the

_authority

of the

_Attorney

_General,

and

_through

the

_undersigned

_attorneys,

_acting

onbehalfofthe

_Secretary

of the United States

Department

of the

Interior,

and the StateofTexas

_{(Texas), acting}

onbehalfof the Texas

CommissiononEnvironmental

Quality,

the Texas Parks and Wildlife

_Department,

and the Texas General Land

_Office,

file this

_Complaint

and

_allege

asfollows:

I. NATUREOFTHE ACTION

1. This isacivil action

brought

_pursuant

tothe Oil PollutionAct

(OPA),

33 U.S.C.

2701,

et for

_damages

for

_injury

_to, destruction

_of,

loss

of,

orloss ofuse

of,

certain natural

resources, and thecostsofassessment

_thereof,

_against

Koch

_{Pipeline Company,}

_L.P.,

in connection with the October

_{18, 1998,}

release of 963 barrels of crude oil from Defendant's former crude oil

_receiving

station

_(Facility)

in Karnes

_County,

Texas

_(Incident).

II. JURISDICTION AND VENUE

2. This Court has

_jurisdiction

overthe

subject

matterand the

_parties

_hereto,

_pursuant

to

OPA Section

_1017(b),

33 U.S.C.

_2717(b);

and 28 U.S.C. 1331 and 1345.

3. This Court has

_{personal jurisdiction}

overthe Defendant because the

_Facility

is located within the

_{jurisdictional}

boundaries for the United States District Court for the Western District of

Texas,

asestablished

_{by Congress}

under 28 U.S.C.

_124(d)(4).

4. Venue is_properin this

_District,

pursuant

to Section

_1017(b)

of

_OPA,

33 U.S.C.

2717(b),

and 28 U.S.C.

1391,

and

1395,

because this is the

_judicial

district in which the Incident and

_resulting

naturalresource

damages

occurred.

III. AUTHORITY

5.The United States

_Department

of Justice has the

_authority

to

_bring

this actiononbehalf of the

_Department

of the Interior Fish and Wildlife Service

_(DOI/FWS)

under 28 U.S.C. 516 and 519.

6. The United States

_brings

this actiononbehalf of the

_Department

_{of the Interior}

_(DOI),

afederal_agencythat has been

delegated authority by

the Presidentto actonbehalf of the

public

with

_respect

tonaturalresourcesand their

supporting

_ecosystems

belonging

_to,

_appertaining

_to,

managed by,

orcontrolled

_by

the United States. Exec. OrderNo.

_12580,

asamended

by

Exec. Order No.

_12777;

Section 1006 of

_OPA,

33 U.S.C.

2706;

and theNational Oil andHazardous

Substances Pollution

_Contingency

Plan

_(NCP),

40 C.F.R. Part 300.600.

7. The State of Texas

_joins

this actiononbehalf of the Texas Commissionon

Environmental

_{Quality (TCEQ),}

theTexas Parks and Wildlife

_{Department (TPWD),}

and the Texas General Land Office

_(GLO),

state

_agencies

thathave been

_{designated by}

the Governorof

ecosystems,

within the

_boundary

of the stateor

belonging

_to,

managed by,

controlled

by,

or

appertaining

tosuchstate. 33 U.S.C.

_2706(b)(3),

and the

_NCP,

40 C.F.R. 300.605.

8. The United

_States,

_through

the DOI's Fish andWildlife Service

_(FWS),

andtheState of

Texas,

through

TCEQ,

TPWD and GLO areTrustees fora

variety

of naturalresources in and around the Defendant's former

_Facility,

located in Karnes

_County,

Texas. 33 U.S.C. 2706.

IV. DEFENDANT

9.Koch

_{Pipeline Company,}

L.P. isaDelaware limited

_partnership

licensedtodo business inTexas.

10. Atall times

relevant,

Defendant owned and

_operated

acrude oil

receiving

station located in Karnes

_County,

Texas.

11. Defendant is a

"person"

within the

meaning

of OPA Section

_1001(27),

33 U.S.C.

2701(27).

V. STATEMENT OF FACTS RELATING TO NATURAL RESOURCE DAMAGES 12. Defendant

_formerly

owned and

_operated

a

_50,

000-barrel tankas

_part

ofacrude oil

receiving

station,

located

_{approximately}

400 feet from Marcelinas Creek in Karnes

_County,

Texas. Marcelinas Creek isa

_perennial

_stream, which flows into the San Antonio

_River,

_{which in} turnfeedsinto the

_Guadalupe

_River,

a

major

water sourcefor the San Antonio

_{Bay Estuary,}

and the Gulf of Mexico

_beyond.

13. OnOctober

18, 1998,

963 barrels of crude oil

_discharged

from the

_Facility,

about 783 of which

_escaped

the

_Facility's

containment

_system

and entered Marcelinas Creek where

floodwaters carried the crude oil several miles downstream toacollection

_{point just}

below the creek's intersection with

_County

Road 237. Thefloodwaters

_transported

the oil

_beyond

the banks of the

_creek,

_{coating vegetation}

and the

_riparian

areadownstream with oilasthe watersreceded.

14. This unauthorized

_discharge

of oil resulted inan

injury

orharmto "naturalresources"

throughout

theareaof the

spill,

within the

meaning

of OPA Section

_1001(20),

33 U.S.C.

2701(20),

including

resourcesunder the

trusteeships

of the

DOI,

TCEQ,

TPWD and GLO. The

discharge

has resultedin_{harm to,}

_injury

to,destruction

_of,

loss

_of,

orloss ofuse

of,

natural

resources

including,

butnotlimitedto, surfacewater,

migratory

bird

_species,

freshwater wetland

habitat,

riparian vegetation, multiple

tree

_{species, understory,}

coastal and native_grasses, and the banks of the creek in the

_vicinity

of the Incident.

VI. STATUTORY BACKGROUND

15. OPASection

_1002(a),

33 U.S.C.

_{2702(a), provides}

that "each

_responsible

_party

for

a

facility

from which oil is

discharged...

intoor_uponthe

navigable

waters... is liablefor

the

_{damages... specified}

in subsection

_(b)

that result from such incident."

16. PursuanttoOPASection

_1001(32),

33 U.S.C.

_{2701(32), "responsible party"}

means

(B)

Inthecase ofanonshore

_facility....

_{any person}

_owning

or

operating

the

facility."

17. OPA Section

_1001(14),

33 U.S.C.

_2701(14),

defines"incident" as

"any

occurrence

involving

one ormore... facilities...

_resulting

in the

_discharge...

of oil."

18. PursuanttoOPASection

_1001(7),

33 U.S.C.

_{2701(7), "discharge"}

is definedas

"any

emission

_(other

than natural

_seepage),

intentionalor

unintentional,

and

_includes,

but isnot

limited to,

_{spilling, leaking, pumping, pouring, emptying,}

or

_dumping."

19. OPA Section

_1001(23),

33 U.S.C.

_2701(23),

defines "oil"as "oil of_anykindorin

any

form,

including,

butnotlimitedto

_petroleum,

fuel

_oil,

_sludge,

oil

_refuse,

and oil mixed with

wastesother than

_{dredged spoil...}

20. OPA Section

_1001(21),

33 U.S.C.

_2701(21),

defines

_"navigable

waters"as "the

21. OPA Section

_1001(9),

33 U.S.C.

_2701(9),

defines

_"facility"

as

"any

_{structure, group} of_structures,

_equipment,

ordevice... used forone ormore of the

_following

_purposes:

_exploring

for,

drilling

for,

producing,

storing,

handling, transferring, processing,

or

_transporting

oil."

22. OPA Section

_{1002(b)(2)(A),}

33 U.S.C.

_{2702(b)(2)(A), provides}

thatthe

_damages

referredtoin subsection

_(a)

of Section

1002,

include:

_"Damages

for

_injury

to, destruction

of,

loss

of,

orloss ofuse

of,

natural_resources,

_including

the reasonablecostsof

_assessing

the

_damage

Such

_damages

are recoverable

_by

federalandstate trustees.

23. Pursuantto Section

_1001(20)

of

_OPA,

33 U.S.C.

_2701(20),

theterm "natural resources"

_comprises

_{"land, fish, wildlife, biota, air,}

_water,

_ground

_water,

_drinking

water

supplies,

and other suchresources

_belonging

_to,

_{managed by,}

held intrust

_{by, appertaining}

_to,or otherwise controlled

_by

the United States...

_[or]

_anyState...

VII. GENERAL ALLEGATIONS

24. Thecrude oil

_storage

tankreferredtoin

_Paragraph

12

_above,

is a

"facility"

within the

meaning

of OPA Section

_1001(9),

33 U.S.C.

_2701(9),

because itwas and is used for

"producing, storing, handling, transferring, processing

or

_transporting

oil."

25. Atall times

relevant,

Defendantwasthe "owner and

_operator"

of the

_Facility,

within the

_meaning

of OPA Section

_1001(26),

33 U.S.C.

_2701(26).

26. "Oil" within the

_meaning

ofOPA Section

_1001(23),

33 U.S.C.

_2701(23),

was

discharged

from the

_Facility

onOctober

_18,

1998.

27. The

_discharge

of "oil" from the

_Facility

resulted ina

_discharge

into or_upon

Marcelinas Creek and/or its

_adjoining

shorelines. Marcelinas Creek isa

navigable

waterwithin

the

_meaning

ofSection 1002 of

_OPA,

33 U.S.C. 2702.

29. Asa

"responsible

_party,

Defendantis

strictly

liabletothe United

States,

andtothe State of

_Texas,

"for

_damages

for

_injury

_to, destruction

of,

loss

_of,

orloss ofuse

of,

natural

resources,

_including

the reasonablecosts of

_assessing

the

_{damage, resulting}

from the Incident. 33 U.S.C.

_{2702(b)(2)(A).}

30. "Naturalresources, as defined in OPA Section

_1001(20),

33 U.S.C.

_2701(20),

held intrust

_by

federal and state_trustees,have been

_{injured, destroyed,}

orlostas aresult of the

Incident,

withinthe

_meaning

of 33 U.S.C.

_2702(b)(2).

Thenaturalresourcesand/orservices

impacted

because of the Incident

_include,

butare not_{limited to,}the MarcelinasCreekwater

column,

creek

_sediments,

and benthic

_{organisms living}

in

_sediments,

_riparian

_habitat,

_improved

and

_unimproved

_pasture,

and terrestrial biota in and around Marcelinas Creek.

VIII. CLAIM FOR RELIEF

31. Plaintiffs

_re-allege

and

_{incorporate by}

reference

_Paragraphs

1

_through

30as if

_fully

setforth herein.

32. Defendant's

_discharge

of oil into or_upon

_navigable

watersor

_adjoining

shorelines on October

_{18, 1998,}

renders itliableunder Section

_1002(a)

of

_OPA,

33 U.S.C.

_2702(a),

for all

damages

tonaturalresources,

including

butnotlimitedtothe reasonable costsincurred

_by

the United States and the State in

_assessing

the

_damage.

IX. PRAYER FORRELIEF

WHEREFORE,

based_uponthe

_allegations

in

_Paragraphs

1

_through

30 of this

_Complaint,

Plaintiffs

_respectfully

_request

that this Court:

1. Enter

_judgment

in favor of the United States and the State of

_Texas,

and

_against

Defendant Koch for

_damages

for

_injury

tonatural resources

resulting

from the

_Incident,

including

thecostsof

_assessing

such

_damages;

and

2. Grantthe Plaintiffs such other and further reliefas the Court deems

just

and_proper.

Respectfully

submitted,

FORTHE UNITED STATES OFAMERICA:

JohnC. Cruden

Assistant

_Attorney

General

Environment and Natural Resources Division United States

_Department

of Justice

Nathaniel

_Douglas

Deputy

Section Chief

Environmental Enforcement Section

Environment and NaturalResources Division

Dated:Al

u.r(-1°-

11,,

20:

Kirk W. Koester

Trial

_Attorney

Environmental Enforcement Section

Environment and NaturalResources Division United States

_Department

of Justice

P.O. Box7611

Washington,

DC 20044-7611

kirk.koester@usdoj.gov

RichardL.

_Durbin,

Jr.

United States

_Attorney

WesternDistrict ofTexas

Dated:

4-61(

qhiitef,

ICivilDivision

Utf

edStates

_Attorney

WesternDistrict ofTexas SanAntonio Division

601 NW

_{Loop 410,}

Suite600 San

_Antonio,

Texas 78216

FOR THE STATE OF TEXAS:

KenPaxton

Attorney

General ofTexas

CharlesE.

_Roy

First Assistant

_Attorney

General

JamesE. Davis

Deputy Attorney

General for Civil

_Litigation

Jon Niermann

Chief,

Environmental Protection Division

Attorney

General of Texas

Dated:

iii

41111^ 0',

e

4,

Ja. Atwood

stant

_Attorney

General

Texas StateBarNo. 00796144

Office of the

_Attorney

General of Texas P.O.Box 12548

Austin,

Texas 78711

512.463.2012

DATE _SIgNATUREOF ATTORNEY

ForeignCountry

I. _(a) PLAINTIFFS I DEFENDANTS

United States ofAmerica,and the State of Texas

_I

KochPipeline Company, L.P.

(b) CountyofResidenceof FirstListed Plaintiff Countyof Residence of First Listed Defendant Kames

(EXCEPTIN U.S. PLAINTIFFCASES) (INU.S.PLAINTIFFCASES_ONLY)

NOTE: INLANDCONDEMNATION_CASES,USE THE LOCATION OF THETRACT OF LAND INVOLVED.

(c) Attorneys(FirmName,Address,and_{Telephone Number)} Attorneys (IfKnown)

United StatesDepartmentofJustice,P.O. Box7611,WashingtonDC BarclayNicholson, Norton RoseFulbrightUSLLP, 1301 McKinney,

20044;AttorneyGeneral ofTexas, P.O. Box12548,Austin,Texas 78711 Suite5100, Houston,Texas77010

II. BASIS OFJIJRISDICTION_(Placean"X"inOne Box_Only) III. CITIZENSHIPOF PRINCIPAL PARTIES (Placean"X"inOne Box_{for Plaintiff}

(For DiversityCases_Only) and One Boxfor Defendant)

V

1 U.S. Government 0 3 FederalQuestion PTF DEF PTF DEF

Plaintiff (U.S.Government Nota_Party) Citizenof This State 0 1 0 1 IncorporatedorPrincipalPlace 0 4 04 of Business In This State

O 2 U.S. Government 0 4 _Diversity CitizenofAnother State 0 2 0 2 _Incorporatedand_PrincipalPlace 0 5 0 5

Defendant _{(Indicate Citizenship}ofPartiesinItem_III) of Business In Another State

CitizenorSubjectofa 0 3 0 3 ForeignNation 0 6 0 6

IV. NATURE OF SUIT(Placean "X"inOne BoxOnly)

O 110 Insurance PERSONAL INJURY PERSONAL INJURY 0 625_DrugRelatedSeizure 0 422_Appeal28 USC 158 0 375False ClaimsAct

O 120Marine 0310_Airplane 0 365Personal_Injury of_Property21 USC 881 0 423Withdrawal 0 400 State_{Reapportionment} O 130MillerAct 0 315_AirplaneProduct Product_Liability 0 690 Other 28 USC 157 0 410 Antitrust

O 140_NegotiableInstrument Liability 0 367HealthCare/ 0 430Banks andBanking

O 150_Recoveryof_Overpayment 0320Assault,Libel & Pharmaceutical AM-7T4 a.,. ''..7.i.:-' 0 450 Commerce

&Enforcement ofJudgment Slander Personal_Injuty 0 820_Copyrights 0 460_Deportation

O 151 Medicare Act 0330Federal_Employers' Product_Liability 0 830 Patent 0 470 RacketeerInfluenced and

O 152_Recoveryof Defaulted Liability 0 368AsbestosPersonal 0 840Trademark _{Comipt Organizations}

Student Loans 0 340 Marine InjuryProduct 0 480 ConsumerCredit

(ExcludesVeterans) 0 345 Marine Product Liability lip,E,4,,,,, Nor,,,,F,,, NW:,,,,, p1,,,, 0 490 Cable/Sat TV O 153_Recoveryof_{Overpayment Liability} PERSONAL PROPERTY 0 710Fair LaborStandards 0 861 HIA_(1395ff) 0 850Securities/Commodities/

of Veteran's Benefits 0 350 MotorVehicle 0 370 OtherFraud Act 0 862Black_{Lung(923) Exchange}

O 160 Stockholders' Suits 0 355 Motor Vehicle 0 371 Truth in_Lending 0 720_{Labor/Management} 0 863 DIWC/DIWW(405(g)) 0 890 Other_StatutoryActions O 190OtherContract Product_Liability 0 380 Other Personal Relations 0 864 SSIDTitleXVI 0 891_AgriculturalActs O 195 Contract Product_Liability 0 360 OtherPersonal Property Damage 0 740_RailwayLabor Act 0865 RSI_(405(g)) X 893 Environmental Matters

O 196 Franchise Injury 0 385_{Property Damage} 0 751_FamilyandMedical 0 895 FreedomofInformation

0 362 PersonalInjury ProductLiability Leave Act Act

MedicalMal.. ice 0 790 Other LaborLitigation 0 896 Arbitration

12:::, :4 Pgir, 5, 17.T:: v-,0 791_EmployeeRetirement ;34; Hr:',7i:X;',, 0 899 Administrative Procedure

0210LandCondemnation 0 440Other Civil_Rights HabeasCorpus: IncomeSecurityAct 0870 Taxes_(U.S.Plaintiff, Act/RevieworAppealof

0 220 Foreclosure 0 441_Voting 0 463 AlienDetainee orDefendant) AgencyDecision

0230 Rent Lease&_Ejectrnent 0 442_Employment 0 510 MotionstoVacate 0 871IRS—Third_Party 0 950Constitutionalityof

0 240 TortstoLand 0 443_Housing/ Sentence 26USC 7609 State Statutes

0 245 Tort ProductLiability Accommodations 0 530General

0 290 AllOtherReal_Property 0 445 Amer.w/Disabilities 0 535Death_Penalty

Employment Other: 0 462Naturalization_Application

0446 Amer.w/Disabilities 0 540Mandamus& Other 0 465 OtherImmigration

Other 0 550 CivilRights Actions

0448Education 0 555PrisonCondition 0 560Civil Detainee

Conditionsof Confinement

V. ORIGIN(Placean"X"inOne Box_Only)

X1 _Original 0 2 Removed from 0 3 Remandedfrom 0 4 Reinstatedor 0 5 Transferred from 0 6 Multidistrict

Proceeding State Court AppellateCourt _Reopened Another District _Litigation

(specify)

Citethe U.S. Civil Statute under which youare_{tiling (Do}notcite_{jurisdictional}statutesunlessdiversity):

Oil PollutionAct, 33U.S.C. Section 2701 et seq.

VI. CAUSE OF ACTION _Brief

descriptionofcause:

Oilspill intoMarcelinasCreek, KarnesCounty,Tx,October 1998.

VII. _REQUESTEDIN 0 CHECK IF THIS IS A CLASS ACTION DEMAND CHECK YESonlyif demanded incomplaint:

COMPLAINT: UNDERRULE23,F.R.Cv.P. JURY DEMAND: 0 Yes 0 No

VIII. RELATED_CASE(S)

IFANY (See instructions): JUDGE DOCKET NUMBER