Source: http://www.dec.ny.gov/hearings/110370.html
Timestamp: 2018-05-21 05:23:44
Document Index: 206501797

Matched Legal Cases: ['art 612', '§ 17', '§ 613', '§ 17', '§ 613', '§ 17', '§ 613', '§ 17', '§ 613', 'art 613', '§ 622', '§ 17', '§ 613', '§ 613']

﻿ 286 West 151st Street Housing Development Fund Corporation - Order, May 31, 2017 - NYS Dept. of Environmental Conservation
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286 West 151st Street Housing Development Fund Corporation - Order, May 31, 2017
286 WEST 151st STREET HOUSING DEVELOPMENT
DEC Case No. PBS.2-470791.5.2017
This administrative enforcement proceeding addresses allegations of the staff of the New York State Department of Environmental Conservation (Department) that respondent 286 West 151st Street Housing Development Fund Corporation (respondent) violated ECL 17-1009 and 6 NYCRR 613-1.9(c) by failing to renew the registration of its petroleum bulk storage facility on or before February 18, 2009, the date on which its prior registration expired. Respondent's facility is located at 286 West 151st Street, New York, New York and includes an underground storage tank with a capacity of 2,000 gallons.
As set forth in the ALJ's default summary report, respondent failed to file an answer to the complaint served by Department staff in this matter, failed to appear at a pre-hearing conference scheduled for April 12, 2017, and failed to appear for the adjudicatory hearing scheduled in the matter on May 12, 2017 ( see Default Summary Report at 3 [Finding of Fact No. 7]).
As a consequence of respondent's failure to answer or appear in this matter, the ALJ recommends that Department staff's motion for a default judgment be granted ( see Default Summary Report at 4-5). I concur that staff is entitled to a judgment on default pursuant to 6 NYCRR 622.15. Staff's papers submitted in support of its motion for default judgment provide proof of facts sufficient to support staff's claim that respondent failed to renew the registration of its petroleum bulk storage facility on or before February 18, 2009, the date on which its registration expired.
The record demonstrates that respondent was required to renew its registration by February 18, 2009, the date its prior registration expired ( see ECL 17-1009[2]; Default Summary Report at 3 [Finding of Fact No. 4]). In addition to ECL 17-1009, Department staff referenced in its papers the applicable facility registration requirement at 6 NYCRR 613-1.9(c), which became effective on October 11, 2015 and which replaced the previous registration provision in 6 NYCRR part 612.
Department staff seeks a civil penalty of ten thousand dollars ($10,000) ( see Motion for Default Judgment, Exhibit A [Complaint, Wherefore Clause, at II]). ECL 71-1929(1) provides for a civil penalty of up to thirty-seven thousand five hundred dollars ($37,500) per day for each violation. As noted, respondent has failed to renew the registration for the facility since February 18, 2009 when the registration expired ( see Default Summary Report at 3 [Findings of Fact Nos. 4, 5]). Where, as here, an owner has not registered the facility for more than five years from the expiration date, a civil penalty of ten thousand dollars ($10,000) is consistent with administrative precedent ( see Matter of 12 Martense Associates LLC , Order of the Commissioner, December 19, 2011, at 2). I agree with the ALJ that the ten thousand dollars ($10,000) sought by staff is authorized and appropriate ( see Default Summary Report at 5).
Department staff's motion for a default judgment pursuant to 6 NYCRR 622.15 is granted. By failing to answer or appear in this proceeding, respondent 286 West 151st Street Housing Development Fund Corporation waived its right to be heard at the hearing.
Moreover, based upon record evidence, respondent 286 West 151st Street Housing Development Fund Corporation violated (a) ECL 17-1009 and (b) since October 11, 2015, 6 NYCRR 613-1.9(c), by failing to renew the registration of its petroleum bulk storage facility located at 286 West 151st Street, New York, New York.
Within fifteen (15) days of the service of this order upon respondent 286 West 151st Street Housing Development Fund Corporation, respondent shall submit to the Department a complete petroleum bulk storage application for the facility, plus applicable and past due registration fees.
Within fifteen (15) days of the service of this order upon respondent 286 West 151st Street Housing Development Fund Corporation, respondent shall pay a civil penalty in the amount of ten thousand dollars ($10,000) by certified check, cashier's check or money order made payable to the New York State Department of Environmental Conservation.
The provisions, terms and conditions of this order shall bind respondent 286 West 151st Street Housing Development Fund Corporation, and its agents, successors and assigns, in any and all capacities.
Staff of the New York State Department of Environmental Conservation ("Department") served respondent 286 West 151st Street Housing Development Fund Corporation ("respondent") with a notice of hearing and complaint, dated March 9, 2017, alleging that respondent violated ECL § 17-1009 and its implementing regulation, 6 NYCRR § 613-1.9(c) when it failed to renew the registration of its petroleum bulk storage facility located at 286 West 151st Street, New York, New York on or before February 18, 2009, the date on which its prior registration expired. The complaint seeks an order of the Commissioner (1) finding respondent in violation of ECL § 17-1009 and 6 NYCRR § 613-1.9(c); (2) assessing a civil penalty in the amount of ten thousand dollars ($10,000); (3) directing respondent to register its petroleum bulk storage facility within fifteen (15) days of the service of the Commissioner's order by remitting the applicable registration fee, including any past registration fees, along with a complete registration application; and (4) granting such other and further relief as the Commissioner shall deem just and appropriate.
Inasmuch as respondent is an active domestic business corporation in the State of New York, service of the notice of hearing and complaint on respondent was made by serving the New York State Department of State on March 9, 2017. See Staff Exhibit ("Staff Ex.") C. Department staff also provided additional service by sending the notice of hearing and complaint to respondent by first class mail on March 9, 2017. See id. Respondent failed to file an answer to the complaint, failed to appear at a pre-hearing conference scheduled for April 12, 2017, and failed to appear at the adjudicatory hearing scheduled for May 12, 2017, as directed in the notice of hearing and accompanying cover letter. See Staff Ex. B, ¶¶ 4-6.
As stated in the notice of hearing, on May 12, 2017, an adjudicatory hearing was convened at 12:30 p.m. by video conference before the undersigned Administrative Law Judge ("ALJ"). The ALJ was located at the Department's central offices, 625 Broadway, Albany, New York, and counsel for staff were located at the Department's Region 2 offices, 1 Hunter's Point Plaza, 47-40 21st Street, Long Island City, New York. Department staff was represented by Deborah Gorman, Esq. of the Remediation Bureau in the Department's Office of General Counsel. No one appeared on behalf of respondent.
Staff has submitted a Notice of Motion for Default Judgment, a Motion for Default Judgment, and the Affirmation of Deborah Gorman, Esq., all dated May 15, 2017, and nine exhibits.[1]Respondent has failed to file any response to staff's motion for default judgment.
Respondent 286 West 151st Street Housing Development Fund Corporation ("respondent") is the owner of a petroleum bulk storage facility having a capacity of over 1,100 gallons located at 286 West 151st Street, New York, New York ("facility"). In particular, petroleum storage tank number 001 at the facility has a capacity of 2,000 gallons and is located underground. See Staff Exs. D, E, F, and G.
On June 27, 2002, the City of New York, by deed, transferred all right, title and interest in the facility to respondent 286 West 151st Street Housing Development Fund Corporation, the facility's current owner. This deed is recorded in the Office of the City Register of the City of New York, at Reel No. 3586, Page 2482. See Staff Ex. D.
Respondent submitted to the Department a Petroleum Bulk Storage ("PBS") Application dated January 28, 2004. See Staff Ex. E. Respondent's PBS application was received by the Department on February 11, 2004. See id.On February 18, 2004, the Department issued to respondent PBS Registration Certificate No. 2-470791. This registration expired on February 18, 2009. See Staff Exs. F, G.
On March 6, 2017, a search of the Department's PBS registration database revealed that respondent's registration had expired on February 18, 2009 and, as of March 6, 2017, had not been renewed. See Staff Ex. A, Affirmation of Deborah Gorman, Esq. dated March 9, 2017, ¶¶ 9-12.
As shown by Receipt for Service No. 201703160005 issued by the New York State Department of State, respondent was served personally on March 9, 2017, pursuant to section 306 of the New York Business Corporation Law, with a cover letter, notice of hearing and complaint, a statement of readiness, and supporting affirmation, all dated March 9, 2017, alleging that respondent violated ECL § 17-1009 and its implementing regulation, 6 NYCRR § 613-1.9(c), by failing to renew the registration of its petroleum bulk storage facility located at 286 West 151st Street, New York, New York on or before February 18, 2009, the date that the prior registration expired. Consistent with CPLR 3215(g)(4), Department staff also provided additional service by sending the notice of hearing and complaint to respondent by first class mail on March 9, 2017. See Staff Ex. B, Affirmation of Deborah Gorman, Esq. in Support of Motion for Default Judgment, dated May 15, 2017 ("Gorman Aff. II"), ¶¶ 2-3; see also Staff Ex. C, Affidavit of Service of Dale L. Thiel, sworn to May 9, 2017, ¶¶ 3-4.
Department staff's submissions in support of the motion for a default judgment provide proof of the facts sufficient to support staff's claim that respondent failed to renew the registration of its petroleum bulk storage facility located at 286 West 151st Street, New York, New York on or before February 18, 2009, the date that the prior registration expired, in violation of ECL § 17-1009. Respondent has also been in violation of 6 NYCRR § 613-1.9(c) since the effective date of Part 613, October 11, 2015.[3]
The record in this matter reflects that, as of the date of the service and filing of the notice of hearing and complaint in this matter, respondent's failure to renew its registration exceeded eight years. I therefore recommend that the Commissioner impose a civil penalty in the amount of ten thousand dollars ($10,000), as requested by Department staff.
Granting Department staff's motion for default, holding respondent 286 West 151st Street Housing Development Fund Corporation in default pursuant to the provisions of 6 NYCRR § 622.15;
Holding that respondent 286 West 151st Street Housing Development Fund Corporation violated ECL § 17-1009 and, from October 11, 2015 forward, 6 NYCRR § 613-1.9(c), by failing to renew the registration of its petroleum bulk storage facility located at 286 West 151st Street, New York, New York on or before February 18, 2009, the date that the prior registration expired;
Directing respondent 286 West 151st Street Housing Development Fund Corporation to submit to the Department, within fifteen (15) days of service of the Commissioner's order, a complete registration application for the facility, together with applicable and past due registration fees;
Directing respondent 286 West 151st Street Housing Development Fund Corporation to pay a civil penalty in the amount of ten thousand dollars ($10,000) within fifteen (15) days of service of the Commissioner's order; and
Matter of 286 West 151st Street Housing Development Fund Corporation
C Affidavit of Service of Dale L. Thiel, sworn to May 9, 2017, attaching NYS Department of State Receipt for Service No. 201703160005
D New York City Department of Finance ACRIS Title Search, dated May 1, 2017. Deed to respondent dated June 27, 2002
E PBS Application form filed for PBS No. 2-470791, dated January 28, 2004
F PBS Certificate, PBS No. 2-470791, issued February 18, 2004
G Facility Information Report, PBS No. 2-470791, printed May 1, 2017
H NYS DOS Corporate Entity Information, printed May 4, 2017
[3] Staff has not alleged that, for the period from February 18, 2009 to October 10, 2015, respondent was in violation of former section 612.2(a)(2) of the regulations; rather, staff's allegations regarding regulatory violations are limited to respondent's failure to renew its registration under 6 NYCRR § 613-1.9(c), which became effective October 11, 2015. I note that the Commissioner has stated, on more than one occasion, that "Department staff should cite violations of both [former and current] regulatory sections where, as here, the violations commenced prior to and continued after October 11, 2015." Matter of Brighton House, Inc., Order of the Commissioner, January 20, 2017, at 2; see also Matter of RCASCO Properties, Inc., Order of the Commissioner, November 28, 2016, at 2 (same).