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Colorado v. Idarado Mining Co.

ELR Citation: 18 ELR 20578
Nos. No. 83-C-2385, (D. Colo., 04/29/1987) CERCLA §107 covered persons

The court holds that a parent corporation and a management services subsidiary are owners and operators under Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) §107. The court lists as factors to consider in determining whether a parent corporation is a CERCLA owner or operator: the degree to which it fits the definition of "person in charge" under the Federal Water Pollution Control Act, the percentage of stock owned, the parent's control over the subsidiary's marketing, the parent's contractual authority on behalf of the subsidiary, and the parent's control over the subsidiary's employment practices. Based on the parent corporation's knowledge of and continuing involvement in efforts to address the environmental dangers at the mine, its intimate involvement in operating the mine, and its contractual authority on the subsidiary's behalf, the court holds that the parent is an owner or operator.

The court next holds that another subsidiary, formed to provide a steady supply of management and other employees and certain management services, was an operator of the mine. It was intimately involved in the mine's management.

[Pleadings in this case are summarized at ELR PEND. LIT. 65876.]

Counsel for Plaintiff
Duane Woodard
Department of Law
1560 Broadway, Suite 250, Denver CO 80202
(303) 866-3611

Counsel for Defendant
Christopher Lane
633 17th St., Suite 2900, Denver CO 80202
(303) 297-2900