COMPLAINT FOR DECLARATORY AND

INJUNCTIVE RELIEF AND CIVIL PENALTIES - 1 -

Earthjustice

705 Second Ave., Suite 203

Seattle, WA 98104

(206) 343-7340

JANETTE K. BRIMMER (WSB #41271)

jbrimmer@earthjustice.org

[Pro Hac Vice Appearance Pending]

Earthjustice

705 Second Avenue, Suite 203

Seattle, WA 98104

(206) 343-7340 | Phone

(206) 343-1526 | Fax

Attorney for Plaintiffs

ANDREW HAWLEY (OSB #091138)

hawleya@nedc.org

Northwest Environmental Defense Center

10015 S.W. Terwilliger Blvd.

Portland, OR 97219

(503) 768-6673 | Phone

(503) 768-6671 | Fax

Local Counsel for Plaintiffs

UNITED STATES DISTRICT COURT

DISTRICT OF OREGON

PORTLAND DIVISION

NORTHWEST ENVIRONMENTAL 

DEFENSE CENTER, CENTER FOR 

BIOLOGICAL DIVERSITY, and

NEIGHBORS FOR CLEAN AIR,

Plaintiffs,

v.

CASCADE KELLY HOLDINGS LLC, d/b/a 

COLUMBIA PACIFIC BIO-REFINERY, and 

GLOBAL PARTNERS LP,

Defendants.

Civ. No. ______________________

COMPLAINT FOR DECLARATORY

AND INJUNCTIVE RELIEF AND

CIVIL PENALTIES

Clean Air Act Enforcement Action,

42 U.S.C. § 7604

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INTRODUCTION

1. This action is a Clean Air Act (“CAA”) citizen suit against Cascade Kelly 

Holdings LLC (d/b/a Columbia Pacific Bio-Refinery) which is wholly-owned by Global Partners 

LP (collectively “Defendants”) for commencing the operation of a bulk crude oil transloading 

facility located at 81200 Kallunki Road, Clatskanie, Oregon (the “Clatskanie oil terminal”), 

without first obtaining a preconstruction permit as required by the CAA, 42 U.S.C. § 7475.

2. Defendants have constructed, commenced operating, and continue to operate the 

Clatskanie oil terminal on the Columbia River, bringing highly volatile crude oil from the 

Bakken oil play region of North Dakota (“Bakken crude”) in tanker trains traveling down the 

Columbia River, offloading the oil into on-site storage tanks, and from there loading the oil onto 

barges in the river.

3. Defendants’ crude oil transloading operation moves multiple oil trains and barges 

through the facility resulting in the emission of air pollutants such as volatile organic 

compounds, nitrogen oxides, greenhouse gases, and a variety of hazardous air pollutants. 

Volatile organic compounds are a large part of the emissions because of the high volatility of 

Bakken crude.

4. The CAA provides that a new source or a major modification of a source causing 

a significant increase in air pollution requires a prevention of significant deterioration (“PSD”) 

permit containing stringent pollution control measures. Defendants commenced bulk crude oil 

transloading at the Clatskanie oil terminal in 2012 without the proper PSD permit, loading over 

300 million gallons of crude oil onto barges. The crude oil transloading operation continues to 

date without the required PSD permit.

5. Based upon the limited available information and current operations at the 

Clatskanie oil terminal, Defendants’ new crude oil transloading operations are a major source of 

volatile organic compound air pollutants (“VOCs”) (40 C.F.R. § 51.100(5) (definitions of 

VOCs)). VOCs are a precursor for the formation of ozone, a pollutant with serious health effects 

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and a criteria pollutant under the CAA. As such, VOCs are regulated pollutants subject to the 

permitting requirements referenced above. 40 C.F.R. § 52.21(b)(50).

6. Because Defendants continue to transload large quantities of crude oil at the 

Clatskanie oil terminal, Defendants are and continue to be in violation of the CAA. Section 

304(a)(3), 42 U.S.C. § 7640(a)(3), of the CAA allows any person to bring suit against anyone 

who “proposes to construct or constructs any new or modified major emitting facility” without a 

major source permit under 42 U.S.C. § 7475. This action seeks a declaration that the Clatskanie 

oil terminal requires a PSD permit prior to construction and operation, imposition of any 

appropriate penalty, and a preliminary and permanent injunction prohibiting further construction 

or operation of the Clatskanie oil terminal unless and until Defendants properly apply for and 

obtain a PSD permit under the CAA.

7. This is a citizen enforcement action under 42 U.S.C. § 7604(a)(3) for penalties 

and injunctive relief. Pursuant to section 7604(d), Plaintiffs may recover costs and fees as 

determined appropriate by the court.

JURISDICTION AND VENUE

8. This court has subject matter jurisdiction over the claims set forth in this 

complaint pursuant to 42 U.S.C. § 7604(a)(3) and 28 U.S.C. §§ 2201 and 2202.

9. Venue is proper in this Court pursuant to 28 U.S.C. § 1391(b) because a 

substantial part of the events or omissions giving rise to the claims herein occurred in Columbia 

County Oregon in the District of Oregon and Defendants are conducting business there.

10. No prior notice of this action is required, 42 U.S.C. § 7604(b).

11. Pursuant to Local Rule 3-2(b), Divisional Venue is proper in the Portland 

Division because the property on which the facility is located is in Columbia County in the 

Portland Division and a substantial part of the events and omissions giving rise to Plaintiffs’ 

claims also take place in the Portland Division.

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PARTIES

12. Plaintiff Northwest Environmental Defense Center (“NEDC”) is a public, 

charitable non-profit organization incorporated under the laws of Oregon and recognized by the 

Internal Revenue Service as a tax-exempt organization under Section 501(c)(3). NEDC’s office 

is located at 10015 S.W. Terwilliger Boulevard, Portland, Oregon 97219. NEDC works to 

protect the environment and natural resources of the Pacific Northwest by providing legal 

support to individuals and grassroots organizations with environmental concerns, and engaging

in litigation independently or in conjunction with other environmental groups. NEDC is 

regularly involved in efforts to maintain or enhance the air and water quality of the Pacific 

Northwest by serving as a watchdog over Oregon’s Department of Environmental Quality, 

Washington’s Department of Ecology, and each state’s respective permitting processes. Student 

volunteers regularly comment on proposals for new permits and permit modifications, monitor 

current permits in search of violations, and monitor sources of pollution to ensure compliance 

with permitting requirements.

13. The Center for Biological Diversity (“Center”) is a non-profit, public interest 

corporation with approximately 775,000 members and online activists, and offices in Portland, 

Oregon; San Francisco, California; and elsewhere in the United States. The Center and its 

members are dedicated to protecting diverse native species and habitats through science, policy, 

education, and environmental law. Fossil fuel extraction, transport, and use are having a 

profound impact upon native ecosystems and the species that depend upon them. As a result, the 

Center tracks these operations and where necessary works to ensure that environmental laws are 

enforced in order to protect species, ecosystems, and the Center’s members and local 

communities, and their enjoyment of the natural world. The current boom in Bakken crude 

production and transport is a great concern to the Center and its members as the activities 

threaten air, water, and the biological diversity that is the focus of the Center’s work.

14. Neighbors for Clean Air (“NCA”) is an Oregon non-profit environmental and 

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community organization based in Portland with approximately 1,500 members dedicated to 

creating a healthier Oregon through the reduction of air pollution, with a particular focus on 

hazardous air pollutants. NCA works through community and legislative advocacy, education, 

monitoring, and as a regulatory watchdog to ensure that air pollution is monitored, and controlled 

or reduced, in accordance with applicable state and federal requirements.

15. Plaintiffs have representational standing to bring this action. Plaintiffs’ members, 

staff, and volunteers live, work, recreate, and own property in the region affected by the 

Clatskanie oil terminal. Defendants’ violations of the Clean Air Act have adversely impacted 

Plaintiffs and Plaintiffs’ members’ health and ability to use areas in Oregon near the Clatskanie 

oil terminal and have injured and will injure the health, economic, recreational, environmental, 

aesthetic, and/or other interests of Plaintiffs and their members. These injuries are fairly 

traceable to Defendants’ violations and capable of redress by action of this Court. Absent the 

relief requested herein, Defendants’ violations of the CAA will continue to harm these interests 

as pollutants emitted at the Clatskanie oil terminal injure human health, fish and wildlife, 

vegetation, visibility, water quality, and property used by Plaintiffs and Plaintiffs’ members.

16. Plaintiffs have organizational standing to bring this action. Plaintiffs have been 

actively engaged in a variety of educational and advocacy efforts to protect and improve air

quality and to address sources of air pollution and climate change throughout the Pacific 

Northwest Region. Defendants’ failure to comply with the permitting requirements of the CAA

by failing to apply for and obtain a preconstruction permit for the Clatskanie oil terminal, 

including the analysis and implementation of best available control technology required by the 

preconstruction permitting process, has adversely affected Plaintiffs. These injuries are fairly 

traceable to Defendants’ violations and redressable by this Court.

17. Plaintiffs NEDC and the Center also work to curtail the flow of dangerous cargo 

such as volatile crude oil through environmentally sensitive areas like the Columbia Gorge. Oil 

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trains carrying Bakken crude are of particular concern given the recent number of derailments 

and the risk those accidents pose to surrounding communities and the environment.

18. Defendant Cascade Kelly Holdings, LLC is a limited liability company doing 

business as Columbia Pacific Bio-Refinery, located at 81200 Kallunki Road, Clatskanie, Oregon 

97016. Its corporate mailing address with the Oregon Secretary of State is 2311 East First Street, 

Vancouver, Washington 98661 with a registered agent in Portland. Based upon statements on 

the Global Partners LP website and representations to the State of Oregon Department of 

Environmental Quality (“DEQ”), Cascade Kelly Holdings, LLC is owned by defendant Global 

Partners LP.

19. Defendant Global Partners LP is a publicly traded master partnership, organized 

in the State of Delaware, with its executive offices at 800 South Street, Waltham, Massachusetts 

02454-9161. Global Partners LP represents on its website and investor materials that it owns the 

Clatskanie oil terminal at 81200 Kallunki Road.

LEGAL AND FACTUAL ALLEGATIONS

20. The Clean Air Act (“CAA”) is designed to protect and enhance the quality of the 

nation’s air so as to promote the public health and welfare and the productive capacity of its 

population. 42 U.S.C. § 7401(b)(1).

21. Pursuant to section 109 of the CAA, 42 U.S.C. § 7409, the U.S. Environmental 

Protection Agency (“EPA”) has established National Ambient Air Quality Standards 

(“NAAQS”) to protect human health and the environment. NAAQS are established for criteria 

pollutants including sulfur dioxide, nitrogen oxides, particulate matter, carbon dioxide, and 

ozone. 40 C.F.R. pt. 50. Certain other pollutants are also regulated by EPA by virtue of their 

character as precursors for or contributors to criteria pollutants, including volatile organic 

compounds (“VOCs”). 40 C.F.R. § 52.21(b)(50)(i)(a). VOCs are precursors for ozone. Id.

22. Nitrogen oxides and VOCs contribute to the production of ground level ozone 

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which in turn results in health problems in humans, including breathing constriction and lung 

damage in healthy individuals and dangerous aggravations of respiratory diseases such as 

asthma, emphysema, and chronic bronchitis. VOCs can also be toxic in their own right.

23. The CAA sets forth requirements for the prevention of significant deterioration of 

air quality in areas that have been designated as in attainment with NAAQS. The prevention of 

significant deterioration requirements are designed to protect public health and welfare while 

also allowing economic growth in a manner consistent with the preservation of clean air that 

meets NAAQS and to assure that any decision to permit increased air pollution is made only 

after careful evaluation of all the consequences and after public participation in the decisionmaking process. 42 U.S.C. § 7470.

24. As part of the prevention of significant deterioration requirements, the CAA 

prohibits the construction and operation of a “major emitting facility” in an attainment area 

unless the facility complies with permitting requirements of section 165, including the 

requirements that the facility apply for and obtain the prevention of significant deterioration 

(“PSD”) permit prior to construction and operation, and that the facility install best available 

control technology (“BACT”) for each regulated pollutant that is emitted from the facility, that 

the facility demonstrate that it will not cause or contribute to the violation of any applicable airquality standard, and that the permitting process be subject to public review and comment. 

42 U.S.C. § 7475(a); 42 C.F.R. §§ 52.21 and 51.166.

25. The CAA defines a petroleum transport facility like the Clatskanie oil terminal 

that emits or has the potential to emit one hundred tons per year or more of certain air pollutants, 

such as VOCs, as a “major emitting facility.” 42 U.S.C. § 7479(1).

26. The CAA defines “construction” to include modification, 42 U.S.C. § 7479(2)(C), 

and “modification” is defined to include “any physical change in, or change in the method of 

operation of, a stationary source which increases the amount of any air pollutant emitted by such 

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a source or which results in the emission of any air pollutant not previously emitted.” 42 U.S.C. 

§ 7411(a)(4).

27. Under EPA regulations, a major modification triggering PSD permitting 

requirements is defined as any physical change in or change in the method of operation that 

results in an increase in the source’s potential to emit 40 tons per year of ozone precursors 

(VOCs and nitrogen oxides) and “any emission rate” increase of any “regulated NSR pollutant” 

not expressly listed in the governing regulations in an area not determined to be in nonattainment for that pollutant. 40 C.F.R. § 52.21(b)(23). “Regulated NSR pollutants” is defined 

as any pollutant that otherwise is subject to regulation under the Clean Air Act. 40 C.F.R. 

§ 52.21(b)(50).

28. A source can only avoid triggering PSD permitting obligations by (i) limiting the 

potential to emit the pollutant of concern to below the significance threshold by federally or 

otherwise practicably enforceable physical or operational limits or (ii) if the increased emissions 

of the pollutant of concern are offset by contemporaneous decreases in emissions of that 

pollutant, such that there is no significant net increase in emissions. 42 U.S.C. § 7503(c); 

40 C.F.R. §§ 52.21 and 51.165.

29. Cascade Kelly Holdings LLC acquired the ethanol manufacturing facility located 

at the Clatskanie oil terminal in 2010 when Cascade Grain Products, the former owner/operator 

of the ethanol facility fell into bankruptcy and ceased operation.

30. Defendants have not operated the ethanol manufacturing facility and are not 

presently operating the ethanol manufacturing facility.

31. Upon information and belief Defendants have also never transloaded ethanol at 

the Clatskanie oil terminal.

32. In March 2012, Cascade Kelly Holdings installed a 192,000 gallon oil storage 

tank at the Clatskanie oil terminal.

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33. In July of 2012, Cascade Kelly Holdings indicated to Oregon DEQ that it 

intended to significantly increase the amount of oil it could and would move through the 

Clatskanie oil terminal.

34. In response, Oregon DEQ informed Cascade Kelly that the nature of the proposed 

operations at the Clatskanie oil terminal fell under a different Standard Industrial Classification 

(SIC), was not related to the ethanol manufacturing facility, and would constitute a new source 

of air pollutants requiring a new air permit.

35. In January 2013, Global Partners LP acquired all the membership interests of 

Cascade Kelly Holdings LLC. In information on its website and information for investors, 

Global Partners LP states that it owns the Clatskanie oil terminal as part of its nationwide oil 

shipping operations.

36. During 2013, Defendants did not operate the ethanol manufacturing facility and 

shipped no ethanol.

37. Oregon DEQ has calculated that between November 30, 2012 and November 20, 

2013, Defendants’ records show that Defendants transloaded 294,495,585 gallons of crude oil 

through the Clatskanie oil terminal.

38. In February 2013, Defendants replaced four pumps at the Clatskanie oil terminal 

to increase their ability to efficiently transload crude oil.

39. Upon information and belief, Defendants continue to transload crude oil at the 

Clatskanie oil terminal.

40. Oregon DEQ has commenced an enforcement action against Cascade Kelly 

Holdings LLC related to the transloading of oil at the Clatskanie oil terminal, including for 

operating the oil terminal without a permit. Upon information and belief based upon statements 

by Global Partners, Cascade Kelly disputes the enforcement action.

41. Defendants have not applied for or obtained a PSD permit, either prior to 

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beginning construction and/or operation of the Clatskanie oil terminal, or for the current and 

planned operation and phased construction of the Clatskanie oil terminal.

42. Because Defendants did not apply for a prevention of significant deterioration 

permit, Defendants have failed to provide adequate and required information for assessment of 

pollutant emissions at the Clatskanie oil terminal.

43. Defendants have applied to DEQ only for a minor source ACDP permit under 

state permitting requirements claiming it will “voluntarily” limit oil throughput at the Clatskanie 

oil terminal to 1.8396 billion gallons of crude oil per year.

44. In the permit application materials submitted to Oregon DEQ, Defendants further 

state that the facility will have a capacity to transload 9.189 billion gallons of crude oil per year

after the completion of construction.

45. In the same materials, Defendants have indicated their intent to complete 

construction at the oil terminal with the addition of the following: four new 108,000‐barrel (4.5 

MMGal) internal floating roof storage tanks; two new 36,000 gallon closed‐system process 

tanks; a vapor combustion unit (VCU); and pumps, piping, and other ancillary equipment to 

support the new tanks and VCU.

46. Based upon the limited data submitted by Defendants, ongoing operations, and 

pollutant emissions, preliminary analysis shows that even at the capacity of 1.8396 billion 

gallons of crude oil per year, the Clatskanie oil terminal has the potential to emit well over the 

major source permit threshold of 100 tons per year of VOCs.

47. There are currently no federally or otherwise practicably enforceable physical or 

operational limits on the oil transloading activities at the Clatskanie oil terminal.

48. The Clatskanie oil terminal is therefore subject to the CAA’s prevention of 

significant deterioration permitting requirements.

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CAUSE OF ACTION

49. Defendants’ construction and operation of the Clatskanie oil terminal is a new 

federal major source of one or more pollutants regulated under the prevention of significant 

deterioration program.

50. Alternatively, Defendants’ operation of the Clatskanie oil terminal is a major 

modification that caused a significant increase in one or more pollutants regulated under the 

prevention of significant deterioration program.

51. The CAA requires that Defendants, before commencing construction or operation 

of the Clatskanie oil terminal, apply for and receive a federal major source prevention of 

significant deterioration permit that properly discloses and accounts for all of the Clatskanie oil 

terminal’s air emissions.

52. The CAA further requires that Defendants, before commencing construction or 

operation of the Clatskanie oil terminal, apply for and receive a federal major source prevention

of significant deterioration permit that properly analyzes and incorporates Best Available Control 

Technology for the Clatskanie oil terminal’s air emissions. 42 U.S.C. § 7475(a); 40 C.F.R. 

§§ 52.21 and 51.166.

53. Defendants have neither applied for nor received a federal major source 

prevention of significant deterioration permit for the Clatskanie oil terminal.

54. Defendants have constructed and operated, continue to operate, and intend to 

continue to operate and further construct, the Clatskanie oil terminal without the required federal 

major source prevention of significant deterioration permit in violation of the CAA and federal 

regulations.

55. Defendants have been and remain in violation of the Clean Air Act permitting 

requirements.

56. Pursuant to 42 U.S.C. § 7604(a), the violation set forth above entitles Plaintiffs to 

injunctive relief and civil penalties for each day Defendants have operated and continue to 

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operate the Clatskanie oil terminal in violation of the CAA.

57. Pursuant to 42 U.S.C. § 7604(d), Plaintiffs are also entitled to recover reasonable 

costs and fees.

PRAYER FOR RELIEF

WHEREFORE, based upon the allegations set forth above, Plaintiffs request relief from 

this Court as follows:

1. An order declaring the Defendants Cascade Kelly Holdings LLC and Global 

Partners LP have violated and continue to violate the Clean Air Act by commencing construction 

and operation, and by continued operation of the Clatskanie oil terminal without a federal major 

source prevention of significant deterioration permit as required under section 165 of the Clean 

Air Act, 42 U.S.C. § 7475;

2. An order enjoining Defendants from construction and operation of the Clatskanie 

oil terminal without a federal major source prevention of significant deterioration permit as 

required under section 165 of the Clean Air Act, 42 U.S.C. § 7475;

3. An order assessing civil penalties against Defendants for up to $32,500 per day 

for each violation of the Clean Air Act and applicable regulations and allow $100,000 of the 

penalty amount to be used for beneficial remediation projects to enhance public health and the 

environment;

4. Pursuant to 42 U.S.C. § 7604(d), an order awarding Plaintiffs their reasonable 

costs and attorneys’ fees; and

5. For such other and further relief as the Court deems just and equitable.

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Respectfully submitted this 2nd day of July, 2014.

s/ Andrew Hawley

ANDREW HAWLEY (OSB #091138)

hawleya@nedc.org

Northwest Environmental Defense Center

10015 S.W. Terwilliger Blvd.

Portland, OR 97219

(503) 768-6726 | Phone

(503) 768-6671 | Fax

JANETTE K. BRIMMER (WSB #41271)

jbrimmer@earthjustice.org

[Pro Hac Vice Appearance Pending]

Earthjustice

705 Second Avenue, Suite 203

Seattle, WA 98104

(206) 343-7340 | Phone

(206) 343-1526 | Fax

Attorneys for Plaintiffs Northwest Environmental 

Defense Center, Center for Biological Diversity, 

and Neighbors for Clean Air

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