Comment by James R. Cox
As early as 1904, scientists learned that naturally occurring radioactive material (NORM) is often produced in conjunction with oilfield hydrocarbons. At least as early as 1951, scientists began detecting traces of this material that had precipitated onto oilfield tubing and production equipment in the form of radioactive scales and sludges. Yet despite the overwhelming evidence demonstrating that NORM can in some instances pose a significant health hazard to both oilfield workers and members of the general public—and have caused inestimable damage to the environment in the oil-producing regions—NORM has traditionally escaped any form of regulatory monitoring or control.
Recently, however, several events have drawn attention to the potential health and environmental risks associated with NORM. First, in 1986 investigators discovered significant levels of radioactivity at the oilfield pipe cleaning facility of Street, Inc. (“Street”), located near Laurel, Mississippi. Street had been in the business of removing scales and residues from salvaged oilfield equipment under agreements with Chevron USA, Inc., Shell Oil Co., and others. Tests conducted at the facility revealed the presence of large quantities of radioactive dust and particulates. Following this discovery, Street and its employees filed suit in the United States District Court for the Southern District of Mississippi. The suits alleged that Street and its employees suffered personal injury and property damages as a result of defendants' failure to warn Street of the presence of NORM on its tubing and of the dangers associated with the cleaning and milling of NORM-contaminated equipment.
Following the discovery of NORM at the Street facility, significant quantities of scale were discovered on used oilfield equipment at a number of Mississippi and Louisiana school playgrounds. In the past, industry representatives had routinely donated the equipment for use in constructing playground equipment and fences.
A number of remedial actions resulted from these incidents, including (1) a $100,000 effort by Chevron, ordered by the Mississippi State Department of Health, to remove the radioactive contaminants from the Street facility and transport them to Chevron's uranium mill tailings disposal facility in Texas; (2) a statewide investigation into the extent of the NORM contamination problem by the Mississippi Department of Health; (3) an investigation by the EPA into the possible availability of Superfund dollars to clean up contaminated sites; and (4) an advisory opinion issued by the Mid-Continent Oil & Gas Ass'n recommending that its member companies discontinue the practice of donating used oilfield equipment to recreational and playground facilities. Yet for the most part, state and federal health and environmental agencies have either refused to involve themselves in the regulation of NORM or have persistently relegated the matter to “further study.” To date, only Louisiana, Mississippi, and Arkansas have enacted regulations specifically dealing with oilfield NORM accumulations.
The claims in Street are apparently the first of their kind to allege damages as a result of exposure to oilfield NORM. Nevertheless, the absence of clear and consistent regulatory guidelines—coupled with the petroleum industry's failure to establish procedures designed to protect workers and the public from NORM exposure—makes a proliferation of such tort claims likely. This Comment will first attempt to provide helpful scientific background material regarding the possible modes of exposure to NORM and the nature and probability of resulting health effects. It will then explore current regulatory efforts to control and monitor exposure to NORM. Finally, this Comment will discuss the tort issues that arose in Street and that are likely to arise in future cases.
About the Author
James R. Cox.
Citation
67 Tul. L. Rev. 1197 (1993)