SAN FRANCISCO, April 21, 2020 – The San Francisco Herring Association (“SHFA”), today, cut checks totaling over $1.7 million to approximately fifty fishermen who agreed to give up one or more of their San Francisco herring permits, permanently reducing by approximately 50% the total number permits available to fish for herring in San Francisco Bay.
The funds used to make the payments were won in a lawsuit that SFHA, represented by Stuart G. Gross of Gross & Klein LLP, brought against PG&E for contamination of herring spawning grounds in San Francisco Bay caused by PG&E’s historical manufactured gas plant operations in the Marina and Fisherman’s Wharf neighborhoods of San Francisco. SFHA’s claims were resolved in September of 2018, when Federal Judge William H. Orrick (N.D. Cal.) entered a consent decree that obligated PG&E to fund the permit retirement program, pay another approximately $3.5 million for environmental restoration, monitoring, and other expenses, and engage in a ten-year-long investigation and clean up of the offshore areas of the Marina and Fisherman's Wharf neighborhoods.
The permit retirement program represents a remarkable example of collaboration between fishermen and resource agencies, specifically the California Fish & Game Commission (the “Commission”) and California Department of Fish & Wildlife (“CDFW”), to achieve shared goals of protecting natural resources and supporting fishing families. The San Francisco herring fishery, at one time, was one of the most lucrative in the world; and, as a result, many fishermen spent tens of thousands of dollars to purchase their herring permits. (Much like a taxi medallion, only a limited number of herring permits are in circulation; and fishermen cannot participate in the fishery without one.) However, over time the fishery has become substantially less lucrative; and stock levels have periodically shown significant weakness. As a result, herring permits are now worth substantially less money, and the total number is higher than what the stock can sustainably support.
SFHA worked closely with the Commission to develop and implement the necessary regulatory changes that would result in the permanent retirement of any permit that a fisherman surrendered. SFHA, then, with the cooperation and assistance of CDFW, contacted permit holders, executed contracts with those who wished to participate, and verified that their permits had been surrendered.
SFHA’s President, Matt Ryan, a long time herring fisherman, who was largely responsible for designing the program and shepherding it through all stages of its implementation, observed, "It's great to see this get done. There were more than a few points along the way where it wasn’t clear that it would come together. The fact that we were able to put tens of thousands of dollars into fishermen's hands and support the health of the stock is a great thing, especially given everything going on right now.”
Stuart G. Gross of Gross & Klein LLP, which represented SFHA in the lawsuit and in the administration of the program, observed, “It always feels good making a polluter pay. The fact that the payees, here, are hardworking fishermen harmed by PG&E’s carelessness makes it all the sweeter. The icing on the cake is that not only will the ecology of the Bay significantly benefit from the reduction in permits, the remaining holders will benefit as well. This is a real win-win-win for everyone . . . except PG&E.”
Gross & Klein LLP represents individuals, businesses, and non-profits in a range of complex litigation—including environmental, commercial, and financial fraud cases. Gross & Klein represents several current and former home and property owners, in separate ongoing cases concerning contamination caused by PG&E’s manufactured gas plants in San Francisco.
The referenced lawsuit was titled, San Francisco Herring Association v. PG&E, No. 14-4393 (N.D. Cal.).