4* EPA
                   United States
                   Environmental Protection
                   Agency
                              Solid Waste and
                              Emergency Response
                              (5502G)
EPA 520-F-94-006
    Winter 1994
Superfund  At Work
Hazardous Waste Cleanup Efforts Nationwide
   Bailey Waste Disposal
  Site Description:
  A former fishing camp converted to
  hazardous waste site
  Site Size: 10 acres on 280-acre
  property
  Primary Contaminants:
  Volatile organic compounds,
  aromafic and chlorinated hydrocar-
  bons, and poiyeycUc aromatic
  hydrocarbons
  Potential Range of Health Risks:
  Direct contact with contaminated
  soil or sediments could Increase
  risk of cancer
  Nearby Population;
  7,600 people within three miles
  Ecological Concerns:
  Contaminated wetland habitat tor
  fish, shellfish, and estuarine animals
  Year Listed on NPL: 1986
  EPA Region: 6
  State: Texas
  Congressional District: 2
 Trie rail is a slender marsh bird with long, unwebbed toes ideally adapted
 for running through soft mud and dinging to reeds.
            Success in Brief

            Saltwater Marshland Preserved

            on Texas Coast

              The U.S. Environmental Protection Agency (EPA), the Texas Natural
            Resource Conservation Commission (TNRCC), and 10 private compa-
            nies have succeeded in suspending serious environmental damage at
            the Bailey Waste Disposal Site. This one-time recreational fishing camp
            in Orange County, Texas served as a dumping ground for local refin-
            ery, industrial and municipal wastes throughout the 1960s. An esti-
            mated $15.2 million will be needed to effectively consolidate and
            entomb these wastes. Through EPA's Superfund program, the cleanup
            will prevent the spread of hazardous petroleum compounds and heavy
            metals into valuable wetlands leading to the Gulf of Mexico.
              Major features of the effort included:
              • a negotiated mixed funding arrangement whereby liable parties
               agreed to conduct a substantial portion of the work;
              • cost recovery of $300,000 for expenses EPA incurred for site
               studies and analyses; and
              • an opportunity for this under-appreciated ecosystem to recover
               losses in habitat and estuarine populations.
            EPA's Superfund program brought together the right mix of state officials
            and private parties to address natural resource damages. Their cooperative
            efforts have ensured the efficient remediation that is currently under way.
                                          The Site Today
                                            The Bailey Task Force began
                                          stabilizing and solidifying wastes
                                          in two channels on the site in
                                          August 1992 with completion
                                          expected by 1994. The solid
                                          masses will then be covered with
                                          layered clay and earthen caps.
                                            The Remedial Project Man-
                                          ager is supervising the work
                                          under terms of a negotiated
                                          settlement document called a
                                          consent decree. EPA attorneys
                                          continue to pursue non-partici-
                                          pating waste contributors for
                                          additional cleanup costs.

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                  Superfund At Work  •  Bailey Waste Disposal Site, Orange County, TX  •  Winter 1994
  The Bailey Waste Disposal
Site is in the eastern coastal
marshlands of Texas where
fresh water turns brackish en
route to the Gulf of Mexico.
Converted from a recreational
fishing camp to a dump for
hazardous wastes, the site is
located three miles southwest
of Bridge City in Orange
County, Texas. The surround-
ing industrial area is called "the
golden triangle" and includes
parts of the towns of Port
Arthur, Beaumont and Orange.
  The disposal area is near the
confluence of the Neches River
and Sabine Lake and lies within
the river's flood plain. Because
of the proximity to the coast,
the entire area is subject to
frequently changing weather
 A Site Snapshot

conditions. The nearest residence
is 1.5 miles from the site; approxi-
mately 7,600 people live within
three miles.
  During the mid-1950s when the
site was a fishing camp, two
rectangular ponds were con-
structed for game fish habitat. In
1961, after a hurricane flooded the
ponds with salt water and killed
the fish, parts of the site were
used for the disposal of industrial
and municipal waste. This prac-
tice continued until the 280-acre
site closed in 1971. Subsequently,
10 acres were found to be pol-
luted.
  Contaminants found in shallow
ground water at the site included
organic chemicals such as chloro-
form and benzene and heavy
metals including lead and arsenic.
          Bailey Waste Disposal Site
          Orange County, Texas
  Son
  and
  pond sedi-
  ments also were
  found to contain a wide variety
  of volatile organic compounds,
  polycyclic aromatic hydrocar-
  bons, and heavy metals.
    Fish, shellfish, and other
  estuarine animals have
  bioaccumulated these toxins;
  the pollution has had adverse
  effects on ecosystem habitat.
  Warning signs have been
  posted and the area is fenced
  off to prohibit access.
         Bailey Waste  Disposal
         Timeline

      U.S. Environmental Protection Agency
      Region 5, Library (PL-12J)
      77 West Jackson Boulevard, 12th Floor
      Chicago, II  60604-3590
                                         • TWC conducts site studies
                                    1 Superfund enacted
                    • TWC discovers contamination
     Commercial fishing camp operating
                                         Industrial and municipal
                                         wastes dumped in
                                         marsh
    Mid-1950s
        1961
1971
                                                                      1979
1980      1982

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                    Superfund At Work  •  Bailey Waste Disposal Site, Orange County, TX  •  Winter 1994
 Liable Parties Undertake Cleanup
Indiscriminate Dumping
Contaminates Marshlands
  In the mid-1950s, the site
owner (Bailey) dug two adjacent
rectangular ponds on his land
and stocked them with freshwa-
ter game fish. Bailey's fishing
camp was popular with many
Gulf Coast residents until Sep-
tember 1961 when the camp was
destroyed by Hurricane Carla.
  In the early 1960s, Bailey
started accepting industrial and
residential wastes. Sludge from
local petrochemical industries
and community trash also were
dumped into levees adjacent to
one of the ponds. Disposal
continued until Bailey closed the
site in 1971. That year, Gulf
States Utilities purchased much
                     of the property for use as an
                     employee recreational area. The
                     polluted conditions were largely
                     unknown until 1979, when EPA
                     reported that industrial wastes
                     had been disposed of at the site.
                       In 1980, a federally funded
                     study by the TNRCC found 10
                     acres of wetlands entirely de-
                     graded by improperly disposed
                     municipal and industrial wastes,
                     including barrels of leaking
                     petroleum by-products and
                     contaminated sludge.
                       The wetlands are home to
                     blue crabs, brown shrimp, killi-
                     fishes, speckled sea trout, red fish,
                     ribbed mussels, and oysters, and
                     support countless migratory
                     ducks and waterfowl traversing
                     the Central Flyway.
                                          Superfund Enables
                                          Investigation and Cleanup
                                            In 1980, Congress enacted the
                                          Comprehensive Environmental
                                          Response, Compensation, and
                                          Liability Act (CERCLA) establish-
                                          ing the Superfund program.
                                          Included were provisions to
                                          compel private parties to conduct
                                          cleanups at hazardous waste sites.
                                          EPA expenses incurred in investi-
                                          gating or cleaning up waste sites
                                          are recoverable from these parties.
                                            In 1981, Gulf States Utilities
                                          conducted an investigation to
                                          determine the amounts and
                                          chemical characteristics of the
                                          waste in the pits. Approximately
                                          72,000 cubic yards of industrial
                                          waste were discovered on site.
                                          The waste material had contami-
      Bailey Task Force fences site, posts warning signs

                Site listed on NPL
                          • TWC investigates cleanup methods

                                 m • EPA selects cleanup method following public comment

                                           V
                                             • Bailey Task Force signs consent decree

                                                     m • Cleanup begins
                                                                 • Work complete (planned); 30-year
                                                                  site monitoring begins (planned)
                                                                  (ongoing)
 1984
1986
1987
1988
1989
1992
1994

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                    Superfund At Work  •  Bailey Waste Disposal Site, Orange County, TX  •  Winter 1994
nated almost 40,000 cubic yards of
underlying soil. EPA subse-
quently identified numerous
private companies believed to be
liable for remediating the site.
   In November 1982, TWC
conducted a preliminary assess-
ment as to whether emergency
actions were necessary to address
immediate hazards.  Based on
TWC's findings, in May 1984,
EPA ordered the waste contribu-
tors to fence the property and post
warning signs to prevent access to
the site.
    Community members
    expressed support for
         the remedy
  In June 1986, the site was listed
on the National Priorities List
(NPL), EPA's roster of hazardous
waste sites eligible for compre-
hensive cleanup under the
Superfund program.
  In October 1987, under TWC's
supervision, 10 waste contributors
formed the Bailey Task Force to
investigate the site and evaluate
cleanup options.  In November
1987, TWC and EPA held public
meetings to discuss cleanup
alternatives with nearby residents
and to gain local input. Commu-
nity members expressed support
for the remedy preferred by EPA:
consolidate contaminated areas,
immobilize the toxic substances,
and install protective covers
("caps") to encapsulate the
wastes.

Cleanup Preserves Wetlands
  The Bailey Waste Disposal site
is divided into two major areas: a
waste channel called the North
Dike filled with at least 100,000
cubic yards of industrial waste
and debris; and a second East
Dike channel containing corroded
drums of petroleum by-products
and rubbery industrial and mu-
nicipal debris. A series of small
pits holding 1,900 cubic yards of
tar-like wastes straddle the North
Dike area.
  Of seven cleanup options
considered, EPA selected in-situ
(in-place) stabilization as the
safest, long-term remedy. Under
this plan, contaminated sediments
from the marsh and the drum
disposal area were consolidated
in the East Dike waste channel.
Contaminants in both channels
were immobilized with cement
and other compounds, thereby
reducing migration and toxicity.
To ensure contaminants were not
spread by rain during these
operations, the Task Force in-
stalled eight-foot dikes.
   The stabilized mixture pro-
vides strength to support two
layered clay and earthen caps that
will be constructed over the
channels to permanently encapsu-
late the contaminants. Construc-
tion is scheduled for completion
by 1994 and will minimize nega-
tive effects on the surrounding
wetlands.
  The wetlands are home to
  blue crabs, brown shrimp,
   killifishes, speckled sea
    trout, red fish, ribbed
    mussels, oysters, and
     migratory waterfowl
Mixed Funding Used to
Encourage Settlement
  In 1989, EPA negotiated a
"mixed funding agreement" to
pay for the Bailey Waste Disposal
cleanup [see sidebar on page 6].
The 10 companies of the Bailey
Task Force have agreed to pay 80
percent of the $15.2 million in
costs and to conduct the cleanup.
This type of mixed funding
agreement is called "preauthori-
zation". Settling parties perform
all of the work, provide up-front
financing, and then file a claim
against non-settlors for the other
20%. If that claim is unsuccessful,
the preauthorized parties can ask
Superfund for the remaining
portion.
   The Bailey Task Force began
cleanup operations in August
1992.  Following installation of the
layered cap, the Task Force and
state officials will monitor the site
for 30 years to ensure the integrity
of the remedy.

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                   Superfund At Work • Bailey Waste Disposal Site, Orange County, TX  •  Winter 1994
         The Importance of the  Saltwater Marsh
   Wetlands have historically
 been viewed as mosquito-
 ridden wastelands, impedi-
 ments to development be-
 cause of their saturated and
 frequently flooded conditions.
 The importance to fish and
 wildlife, clean water, and
 flood control went unappreci-
 ated as draining and filling
 operations destroyed more
 than 60% of coastal and inland
 wetlands nationwide. Dis-
 charges from industries and
      Photo courtesy of The National Aquarium
  The killifish is a small minnow no
  more than 10 inches in length that
  cruises just below the surface of calm
  water, using an upward-tilted mouth
  to snatch prey, particularly mo-
  squitoes. Some are brilliantly colored,
  with the males taking on glorious
  hues during the mating season.
 cities, midnight dumping of
 toxic wastes, urban runoff,
 acid rain, and agricul-
 tural chemicals have
 polluted
 and de-
 graded
 wetlands
 as well.
  Of the 90
 million acres of
 vegetated wetlands in the
 lower 48 states, only 5% are
 coastal, saltwater areas. These
 wetlands where bulrushes and
           various grasses
           dominate are called
           "marshes" and
           support estuarine
          systems on the Atlan-
   tic and Gulf coasts. Marshes
   are important wildlife habi-
 tats, breeding grounds, and
 nurseries. Ducks, geese, black-
 birds, herons, egrets, bitterns,
 and rails use the marsh habitat
 for mating, nesting, brood-
 rearing, and for resting and
 feeding during migration.
  Fish, crustaceans, mollusks,
 insects, and other estuarine
                                                              The Diamondback Terrapin, another
                                                              resident of the marsh, is an
                                                              excellent long-term indicator of
                                                              water quality. The turtle's shell
                                                              absorbs and retains many forms of
                                                              pollution, particularly heavy metals.
animals form a complex food
chain in the marsh, occupying
that specialized niche between
fresh water and the sea. In
addition, marshes provide
protected nurseries for the
fingerlings of important com-
mercial fishes such as cod,
herring and mackerel.
   Natural Resource Trustees Negotiate for Damages
  In addition to paying for haz-
ardous waste cleanups, private
parties may be held liable for
natural resource damages and
environmental restitution. While
EPA seeks additional funding to
 clean up the site, federal and state   National Oceanic and
 natural resource trustees are       Atmospheric Administration,
 negotiating with the liable parties   the U.S. Department of the Inte-
 for damages to the surrounding     rior, TNRCC, the Texas Parks
 marshland. Designated natural     and Wildlife Agency, and the
 resource trustees include the       Texas Land Office.
                           U  S. Environmental Protection Agency
                           Region 5, Library (PL-12J)
	 5 ^	77 Wnsl Jaatoen Boulevard, 12th Finnr
                                                         ii
                                                         Chicago,
                                      60604-3590

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                     Superfund At Work • Bailey Waste Disposal Site, Orange County, TX  •  Winter 1994
                  Mixed Funding
            Encourages Settlement
   For each site listed on the NPL,
 EPA makes a concerted effort to
 identify and locate the parties
 responsible for site contamina-
 tion.  These parties are notified of
 their possible liability and can
 negotiate with EPA to reach an
 equitable cleanup agreement. If a
 settlement cannot be reached,
 EPA has the authority to conduct
 the work and later sue for as
 much as three times the costs.
 Parties that fail to cooperate face
 long legal battles and significant
 penalties.
   EPA negotiations at the Bailey
 site were designed to secure a
 swift cleanup by responsible
 parties'who had paid their fair
 share of the costs. EPA attorneys
used an innovative settlement
strategy called "mixed funding"
whereby EPA settles with fewer
than all of the liable parties for a
substantial portion of the cleanup.
The remainder of the costs or
work can be contributed by EPA,
or obtained from financially
viable parties who are not part of
the mixed funding settlement.
The three types of mixed funding
are called preauthorization,
mixed work, and cash out.
  Mixed funding provides an
incentive for cooperative parties
to settle and avoids time-consum-
ing, expensive litigation. Ad-
vance financing by the settling
parties ensures prompt
remediation of the site.
     Success at
  Bailey Waste
      Disposal
  The Bailey Task Force has
immobilized hazardous
wastes in two huge channels
as preparation for installation
of protective, encapsulating
covers. This work is sched-
uled for completion in 1994.
Fortunately, only ten acres of
marshland sustained damage
from fiie improper dumping
of the 1960s. Following
cleanup and construction
activities, a 30-year monitor-
ing program will ensure the
long-term protection of area
wetlands and the ecosystem's
ability to sustain wildlife.
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