ELR Citation: ELR 20071
No(s). 6380 (D. Vt. Aug 21, 1973)

A corporation whose shipping company subsidiaries have been responsible for nine oil spills in Lake Champlain in the last six years is enjoined under the Rivers and Harbors Act of 1899 and the federal common law of nuisance to institute certain precautionary procedures in regard to oil transportation beginning with the 1974 shipping season. The court finds that public policy demands that the corporate veil of the subsidiaries be pierced, since the oil spills harmed waterfowl and beaches and threatened municipal water supplies. The court states that the FWPCA does not preclude equitable relief. The injunction requires defendants' employees to install a voice communications system and maintain direct communication between ship and terminal during offloading operations and to prepare a contingency plan, subject to the approval of the Regional EPA administrator, for on-scene actions to limit the adverse environmental consequences of future spills.

Counsel for Plaintiff
George W.F. Cook, U.S. Attorney
Federal Building
Rutland, VT 05701

Counsel for Defendants
John D. Carbine
Ryan, Smith & Carbine
Mead Building
Rutland, VT 05701

Donald E. O'Brien
231 S. Union Street
Burlington, VT 05401