
Daniel T. McKillop
Partner
201-896-7115 dmckillop@sh-law.comFirm Insights
Author: Daniel T. McKillop
Date: December 11, 2018
Partner
201-896-7115 dmckillop@sh-law.comThe New Jersey Legislature is moving to dedicate more than $160 million received from two natural resource damage claims. Given the Murphy Administration’s renewed focus on bringing natural resource damage (NRD) lawsuits, there will likely be more settlement funds to follow.
Natural resource damages are intended to compensate the public for the injury to, destruction of, or loss of natural resources. In many cases, these environmental contamination lawsuits can generate large windfalls for the state, with settlements often totaling hundreds of millions of dollars. In the past, funds were used for non-environmental purposes, such as balancing the state budget, which drew the ire of environmental groups and the public.
In 2017, New Jersey voters approved an amendment to the New Jersey Constitution (Article VIII, Section II, paragraph 9) that mandates funds from environmental settlements must be reinvested into anti-pollution efforts. Specifically, all State moneys received from settlements and awards in cases of environmental contamination relating to natural resource damages must be used for certain environmental purposes, which include to repair, replace, or restore damaged natural resources or to preserve the State’s natural resources. The amendment further provides that moneys must be spent in an area as close as possible to the geographical area in which the damage occurred.
Senate Bill 3310 earmarks settlement monies from two lawsuits involving natural resource damages. The first is N.J. Dep’t of Env. Protection v. Exxon Mobil Corp., 453 21 N.J. Super. 588 (Law Div. 2015), which the Murphy administration maintains is not subject to the 2017 amendment. The bulk of the controversial $225 million settlement with Exxon Mobil was already diverted or used to pay legal fees.
Under the bill, $50 million would be deposited as natural resource damages into the Hazardous Discharge Site Cleanup Fund and appropriated to the DEP for: direct and indirect costs of remediation, restoration, and cleanup; costs for consulting, expert, and legal services incurred in pursuing claims for damages; grants and loans to local governments; and grants to nonprofit organizations.
Senate Bill 3310 also appropriates more than $110 million from funds recovered in connection with claims made by the State in N.J. Dep’t of Env. Protection v. Atlantic Richfield Co., et al., No. 37 08 CIV 00312 (S.D.N.Y.), which involved groundwater pollution caused by three oil companies. Those natural resource damages revenues would be deposited in the Natural Resources Damages – Constitutional Dedication account. The bill identifies several projects to receive funds, including Cape May Point Saltwater Intrusion Mitigation and Habitat Restoration ($30 million); Atlantic White Cedar Forest Watershed Restoration ($19 million); and Hudson-Raritan Estuary Water Quality Infrastructure/CSO Improvements ($10 million).
While environmental groups are happy that funds are finally going towards restoration efforts, they have raised concerns that the monies are not dedicated to areas damaged by the pollution. “The bill is too vague on where the money is going to go,’’ said Jeff Tittel, director of the New Jersey Sierra Club. “We want to make sure the funding for restoration projects is going directly to areas impacted by Exxon.’’
Additional NRD suits are likely on the horizon. In August, for the
“This is the largest single-day environmental enforcement action in New Jersey in at least a decade,” Attorney General Gurbir Grewal said in a press statement. “Today is just the beginning. We are going to hold polluters accountable – no matter how big, no matter how powerful, no matter how long they’ve been getting away with it. And we’re sending a message to every company across the state: if you pollute our natural resources, we are going to make you pay.”
The uptick in NRD lawsuits strongly suggests that the Murphy Administration plans to aggressively pursue natural resource damages. Given that such damages can often outweigh the costs of remediation, businesses should closely monitor the state’s new NRD initiative and contact a knowledgeable New Jersey environmental law attorney to discuss any concerns.
If you have any questions or if you would like to discuss the matter further, please contact me, Dan McKillop, at 201-806-3364.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
NYC Real Estate and Litigation Attorney Ryan O. Miller and Team Join Scarinci Hollenbeck, LLC New York City, NY – August 13, 2025 – Scarinci Hollenbeck, LLC has strengthened its Real Estate and Litigation practices with the addition of four New York City-based attorneys. Ryan Miller, who joins as a partner, is well known for […]
Author: Scarinci Hollenbeck, LLC
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!