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Natural Resource Damages

Environmental Law

Natural Resource Damages Attorney — Glendale & Los Angeles

Natural resource damages are claims by government trustees for injury to public resources such as groundwater, wildlife, and coastal waters, brought under CERCLA section 107 and the federal Oil Pollution Act. DiJulio Law Group advises companies and property owners in Glendale and Los Angeles facing trustee notices, damage assessments, and restoration-based settlements.

The Short Answer

What are natural resource damages?

Natural resource damages compensate the public for injury to, destruction of, or loss of natural resources caused by a release of hazardous substances or a discharge of oil. Under CERCLA section 107(a)(4)(C), they include the reasonable costs of assessing the injury. Only designated federal, state, and tribal trustees may recover them, and sums recovered must be used to restore, replace, or acquire the equivalent of the injured resources.

Environmental Law

How Trustee Claims for Natural Resource Injury Work

Cleanup and natural resource damages answer different questions. Environmental remediation asks how contamination will be investigated and removed, and who pays for that work. A natural resource damage claim asks what the public lost while the resource was injured, and what restoration will make up for it. The same release can produce both, and settling one does not automatically resolve the other. The firm's remediation and natural resource damages overview covers how the two fit together.

CERCLA defines natural resources broadly to include land, fish, wildlife, biota, air, water, groundwater, and drinking water supplies that belong to, are managed by, or are held in trust by the United States, a State, a local government, or a tribe. Under section 107(f), the President designates federal trustees and each Governor designates state trustees. A trustee's assessment performed under the Interior Department's regulations at 43 C.F.R. Part 11 (opens in a new tab) carries a rebuttable presumption in later proceedings.

For oil, the Oil Pollution Act of 1990 provides a parallel claim. Under 33 U.S.C. section 2706, damages are measured by the cost of restoring or replacing the injured resources, plus the diminution in their value pending restoration, plus the reasonable cost of assessment. In California, the Office of Spill Prevention and Response within the Department of Fish and Wildlife works with federal trustees on oil spill assessment and restoration.

Because the assessment defines the claim, the most useful work usually happens before any lawsuit: engaging with the trustees on the assessment plan, testing the injury and baseline assumptions, and proposing restoration projects that address the loss.

Assessment

How are natural resource damages assessed?

Under the Interior Department's CERCLA rules, trustees follow a phased process: a preassessment screen, an assessment plan, and then injury determination, quantification of lost services against baseline, and damage determination. Damages are measured by the cost of restoration, replacement, or acquiring equivalent resources, plus, at the trustee's discretion, compensable value. A report of assessment closes the process.

Responsible parties have defined points of entry. Under 43 C.F.R. section 11.32 (opens in a new tab), the trustee must send identified potentially responsible parties a Notice of Intent to Perform an Assessment that invites them to take part in developing and performing it, and must allow at least 30 calendar days to respond, with reasonable extensions as appropriate. The assessment plan must then be available for review by potentially responsible parties and the public for at least 30 calendar days, and comments and responses become part of the report of assessment.

The trustee may also allow a responsible party to implement all or part of the approved plan under the trustee's direction. Those choices shape the record long before any litigation, which is why it generally makes sense to engage technical consultants and counsel at the notice stage and to coordinate with the cleanup itself and any allocation through environmental mediation.

Settlements

Does a Superfund cleanup settlement resolve natural resource damage claims?

Not automatically. Under CERCLA section 122(j), a settlement with the United States may include a covenant not to sue for damages to federal trust resources only if the federal natural resource trustee agrees in writing. State and tribal trustees hold their own claims, so each trustee's position should be addressed before a cleanup settlement is treated as final.

When settlement negotiations involve a release that may have damaged federal trust resources, section 122(j) (opens in a new tab) directs that the federal trustee be notified and encouraged to participate. The trustee may agree to a covenant if the responsible party agrees to take appropriate actions to protect and restore the damaged resources, which is one way restoration work can become part of a cleanup settlement.

CERCLA section 107(f)(1) also bars double recovery of natural resource damages, including assessment and restoration costs, for the same release and natural resource. Tracking which trustees have asserted claims, and what earlier settlements covered, helps avoid paying twice for the same injury. The firm's remediation and natural resource damages overview and enforcement and compliance page cover the related agency process.

Office

330 North Brand Boulevard, Suite 1280
Glendale, California 91203

Courts

Los Angeles County Superior Court, including the Glendale and Stanley Mosk courthouses.

Focus

Enforcement defense, permitting and compliance, hazardous waste, and cleanup cost recovery in California.

What We Handle

Natural Resource Damage Matters We Handle

For companies, property owners, and former operators in Los Angeles, Glendale, and across California.

Trustee Notices and Early Engagement

Responding to trustee letters and notices of intent to sue, and deciding whether and how to participate in a cooperative assessment.

Assessment Review

Evaluating injury determination, baseline, and quantification under 43 C.F.R. Part 11 or the Oil Pollution Act rules, with technical consultants.

Restoration-Based Settlement

Negotiating resolutions built around restoration projects rather than cash alone, and coordinating the terms with any mediated allocation among responsible parties.

Oil Spill Claims

Oil Pollution Act natural resource damage claims arising from pipeline, facility, or vessel discharges, including coordination with federal and California trustees.

Coordination with Cleanup

Aligning the remedy with restoration goals so cleanup decisions do not enlarge the damages claim, alongside hazardous waste and Clean Water Act obligations.

Transactions and Indemnities

Addressing natural resource damage exposure in purchase agreements, indemnities, and transaction diligence, including for sellers who remain exposed after closing.

Situations We See

Natural Resource Damage Matters That Reach Our Office

Composite examples drawn from the kinds of matters this practice handles. They illustrate common fact patterns and are not descriptions of specific client cases or predictions of any result.

01

The Groundwater Basin Claim

A manufacturer that has funded years of groundwater cleanup in the San Fernando Valley receives a trustee letter about lost use of the aquifer. The response turns on the baseline, the other contributors, and what restoration credit the cleanup already provides.

02

The Pipeline Release

A crude oil release reaches a creek and nearby shoreline. Federal and California trustees begin an Oil Pollution Act assessment, and the operator must decide early how to participate in data collection and restoration planning.

03

The Legacy Seller

A company that sold a coastal industrial property decades ago is named in a natural resource damage claim. The defense examines what was released during its ownership and whether the claim was brought within the statute of limitations.

When to Get Advice

When a Natural Resource Damage Claim Needs Counsel

  • A federal or California trustee has sent a letter or notice of intent to sue.
  • Trustees have invited you to participate in a cooperative damage assessment.
  • A release has reached surface water, a shoreline, wetlands, or an aquifer.
  • An oil discharge has triggered a spill response by state or federal agencies.
  • A cleanup settlement is being negotiated without addressing trustee claims.
  • A purchase or sale involves property with a known release to public resources.
Practical Next Steps

What to Do First

  1. Identify the trustees

    Federal, state, and tribal trustees may each assert claims for the same resource. Knowing who is involved shapes every later negotiation.

  2. Preserve the technical record

    Sampling data, release history, and cleanup reports form the basis for challenging injury and baseline. Keep them organized and consistent with regulatory filings.

  3. Engage before the assessment hardens

    Comments and participation during assessment planning generally carry more weight than later challenges. Speak with counsel before responding to the trustees.

Common Questions

Natural Resource Damages — Questions California Clients Ask

What companies and property owners ask when government trustees assert natural resource damage claims in California.

Who can bring a natural resource damage claim?

Only designated trustees. Under CERCLA section 107(f), liability runs to the United States, to States for resources within or belonging to the State, and to Indian tribes for tribal resources. The President designates the federal trustees and each Governor designates state trustees. Private property owners cannot recover natural resource damages under CERCLA, although they may have other claims for harm to their own property.

How are natural resource damages different from cleanup costs?

Cleanup costs pay for investigating and removing contamination. Natural resource damages compensate the public for the injury to resources such as groundwater, fish, and wildlife, including lost use while the resource recovers, and fund restoration. CERCLA lists them separately in section 107(a)(4), and recoveries must be used to restore, replace, or acquire the equivalent of the injured resources.

What is a natural resource damage assessment?

An assessment is the trustees' process for determining whether resources were injured, quantifying the injury against baseline conditions, and calculating damages, usually as the cost of restoration. For hazardous substances, the Interior Department's regulations at 43 C.F.R. Part 11 govern the process; for oil, the Oil Pollution Act rules issued by NOAA apply. An assessment done under the applicable regulations carries a rebuttable presumption.

What is the statute of limitations for a CERCLA natural resource damage claim?

Under 42 U.S.C. section 9613(g)(1), an action generally must be filed within three years after the later of the discovery of the loss and its connection with the release, or the date the assessment regulations were promulgated. At National Priorities List sites and other sites with a scheduled remedial action, the action generally must be filed within three years after completion of the remedial action.

Can natural resource damages be recovered for old contamination?

It depends on timing. CERCLA section 107(f)(1) bars recovery where both the damages and the release that caused them occurred wholly before December 11, 1980. If the release or the resulting injury continued after that date, a claim may still be possible. The facts about when releases occurred and how the injury developed are often central to the defense.

How does the Oil Pollution Act handle natural resource damages?

The Oil Pollution Act of 1990 makes responsible parties liable for injury to, destruction of, loss of, or loss of use of natural resources from oil discharges, including assessment costs. Under 33 U.S.C. section 2706, damages equal the cost of restoration or replacement, plus diminution in value pending restoration, plus assessment costs. A claim generally must be filed within three years after the assessment is completed.

Who are the natural resource trustees in California?

Federal trustees commonly include NOAA and Interior Department agencies such as the U.S. Fish and Wildlife Service. On the state side, the California Department of Fish and Wildlife is a principal trustee for fish and wildlife, and its Office of Spill Prevention and Response leads state work on oil spill assessments. Other state agencies and tribes may also serve as trustees depending on the resource involved.

Can a natural resource damage claim be settled with restoration projects?

Often, yes. Because recoveries must be used for restoration, trustees frequently resolve claims through settlements that fund or require specific restoration projects, sometimes combined with a cash payment. Proposing credible restoration early can narrow disputes about injury and valuation. Any settlement should be coordinated with the cleanup and with allocation among other responsible parties.

DiJulio Law Group

Talk to an Environmental Attorney

Natural resource damage claims are shaped by the assessment long before any lawsuit. Bring the trustee correspondence and the cleanup record, and review exposure in any pending real estate transaction.