UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                                 WASHINGTON D C  20460


                                                         EPA-520-R-93-001
                                                         March 12,  1993
                              REPORT TO CONGRESS

/   SETTLEMENTS WITH MUNICIPAL WASTE GENERATORS AND TRANSPORTERS SINCE 1991
                                   UNDER THE
 COMPREHENSIVE ENVIRONMENTAL RESPONSE,  COMPENSATION,  AND LIABILITY  ACT OF 1980


       EPA has prepared this report in response to a request  from  the House  of
 Representatives Committee on Appropriations.   The report summarizes the  status
 of  settlements since 1991 with municipal waste generators and transporters under
 the Comprehensive Environmental Response, Compensation, and Liability Act of 1980
 {CERCLA).

       In the House of  Representatives Report  102-710, titled  "Departments  of
 Veterans Affairs and Housing  and Urban Development, and  Independent Agencies
 Appropriations Bill, 1993", dated July 23,  1992, at page 67, the House Committee
 on  Appropriations  expressed concern that  "EPA  had not  reached settlements with
 the generators and  transporters of municipal solid waste and sewage sludge,
 despite public statements more than a year ago that the Agency would address the
 municipal liability problem."  The Committee report also directed EPA to "review
 these settlements  to reflect the municipal waste  generators'  and transporters'
 minimal responsibility for contamination  at Superfund  sites"  and tc report the
 findings to Congress.

       On  December  6,  1989,  EPA  published  the "Interim  Policy  on  CERCLA
 Settlements Involving  Municipalities or Municipal Wastes." The Interim  Policy
 defined two types of municipal wastes:  municipal solid waste (MSW)  and municipal
 sewage sludge  (MSS).   In addition, the  Interim  Policy provided  a  consistent
 Agency-wide approach for  addressing municipalities and municipal wastes  in the
 Superfund settlement process.

       In particular, the Interim Policy  indicated how  EPA will   exercise its
 enforcement discretion when pursuing settlements which involve municipalities  or
 municipal   wastes.       Specifically,   the   Interim   Policy   states    that
 generators/transporters of MSS and MSW will not generally be notified by EPA that
 the Agency considers them to be potentially responsible  parties (PRPs) unless EPA
 obtains site-specific  information that the MSS  or MSW contains a  hazardous
 substance  and  that the  hazardous  substance  is  derived  from a  commercial,
 institutional,  or  industrial process or activity. As  a result of  this Interim
 Policy,   the   Agency   has   not   generally   named   as   PRPs   municipal
 generators/transporters of MSS or MSW.  However, this does not preclude other
 PRPs  from seeking  contribution under CERCLA through  third-party suits.

       The impact of Superfund on local governments, specifically the third-party
 liability municipalities face,  was the subject of a  speech before  the National
 Association of Counties in July 1991, by William K. Reilly, the Administrator  of
 EPA.   Mr Reilly committed the Agency to "develop national settlement guidelines
 so  that local governments that have  sent municipal waste to Superfund sites can
 reach early and equitable settlements with either EPA  or the  private parties."
 The  Agency  subsequently explored  various methodologies for  settling  with
 contributors of MSW so as to provide  these parties  with legal protection from
 contribution suits.   As of this date, these options  are still under review.

       This report summarizes completed settlements and ongoing negotiations with
 municipal  generators  and  transporters   of  MSW  and   MSS.     Because  the
 Administrator's commitment in 1991 focused on settlement with municipalities and
 Congress'  concern   has   focused  primarily on the  predicament  of  municipal
 generators and transporters of  MSS  or MSW, we did not  include in this  report
 information on non-municipal generators/transporters of MSS or MSW.


 FEB  3   1994

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      Thia report is organized by EPA region and presents the following municipal
waste settlement information:

      1.    Status of negotiations - whether the settlement is complete or the
            negotiations are ongoing.

      ^.    Basis for settlement /contribution to waste stream by municipal waste
            generators and  transporters  - brief  description of what the par: .,
            contributed to  the  site.

      3.    Estimate of the municipal share of relief compared to total cost -
            for  settled  sites,  this compares the settlement with municipal
            generators/transporters  of MSW/MSS with  the total response costs;
            for  ongoing  negotiations,   this  information  is  provided  where
            publicly available.

      In addition to settlements with municipal waste generators and transporters
of MSS  and MSW,  EPA has  also  completed settlements with another  category of
municipal waste PRPs, municipal waste generators or  transporters who are also
owners or operators.  In these  instances, the settlements were generally based
on the liability of the municipality as owner/operator  and were, therefore, not
included in this report.

      The report  summarizes twelve  cases with municipal  waste  generators or
transporters of MSS or MSW.  Five settlements have been completed since 1991.
EPA is  currently  involved  in seven ongoing  negotiations  with municipal waste
generators  or  transporters.    Several  of  these  negotiations have completed
agreements in principle.

      Third-party settlements have been included in many of these cases.  Six of
the settlements, completed  or ongoing,  involve municipal  waste generators and
transporters who were not brought into the case by EPA but,  rather, by other PRPs
as third parties.  These sites are:  Charles George, Laurel Park/Beacon Heights,
Moyer Landfill, Mid-State Disposal,  Oak Grove,  and Operating Industries.
                                   REGION I
Charles George. Tynosborouah. Massachusetts

      An action was  originally  brought by EPA in 1985 against  the owners and
later expanded to include additional corporate defendants.  In early 1990, the
corporations filed third-party complaints against a number of additional parties,
including municipalities.  Twelve generator/transporter municipalities named as
third-party defendants  filed a  joint motion seeking their dismissal  from the
action.      That   motion   was   dismissed   as   premature.      Fifty-four
generator/transporter parties,  including  the  direct and the  third  parties,
including the municipalities, completed a cash-out settlement with EPA.

Status of negotiations
      Completed - the consent decree was lodged on December 17,  1992.

Basis for settleaent/contribution to waste stream
      The amount was negotiated between the major PRPs and the municipalities.
      The municipalities argued for 4%.  The final amount to be contributed is
      closer to 6% of total estimated costs.

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Estimate of Municipal  share  of  relief  compared to  total  cost
      Twelve  municipalities  will be paying $4.191 million to  the  Commonwealth
      over a  ten-year  period at 4% interest.   The total estimated cost  of  the
      site cleanup  is  approximately $67.2  million.


Laurel .'ark/Beacon  Heights Landfills.  Nauoatuck. Connecticut

      These two  sites  in  Connecticut are large, privately-owned  landfills that
accepted large quantities of MSW as well as commercial and  industrial hazardous
wastes.  The  same defendants owned and operated both sites.   In March 1987,  the
United States, State of Connecticut, and various private parties brought a total
of four actions  under  CERCLA against the owner/operators of  the  two sites (the
Hurtha entities). The  Murtha entities then  brought a contribution  action against
approximately 200 entities as third-party  defendants.

      In April 1987, approximately 30 generator PRPs  (Beacon  Heights Coalition)
signed a consent decree with the United States, agreeing to  perform the  entire
remedial design and remedial action (RD/RA) for the Beacon Heights Site.  There
were no municipal generators/transporters of MSS or MSW in this group.  The Court
entered the decree  in  September 1987.

      In September  1989,  the Murtha entities  signed  a consent decree with the
United States, State of Connecticut, and the private-party plaintiffs in which
the Murtha entities agreed to pay a  sum of money toward costs  for  the two sites.
The Court entered that decree in August 1992.

      In March 1991, 19 generator PRPs  (Laurel  Park Coalition)  signed a consent
decree with the United States and State of  Connecticut, agreeing  to perform the
entire  RD/RA  for  the   Laurel   Park  Site.     There  were  no  municipal
generators /transporters of MSS  or  MSW  in this group.  The Court entered that
decree in August 1992.

      In July 1991, the Beacon Heights  Coalition brought a contribution action
against approximately 450  entities as third-party defendants.  In  November 1991,
the Laurel Park  Coalition  filed a motion for  permission  to name  approximately
1150 parties  as third-party  defendants.    Twenty-three  generator/transporter
municipalities were brought in as a result of these third-party actions.  EPA has
not pursued any of the MSW-only contributors.

      EPA is  exploring a  global  settlement with  all  third-party  defendants,
including a cash-out with the 23 generator/transporter municipalities.

Status of negotiations
      The proposed  strategy  for settlement is  currently  being  reviewed by  the
      Department of Justice.

Basis for settlement/contribution to waste stream
      Not available at this time.

Estimate of municipal share of relief compared to total cost
      Not available at this time.


                                  REGION III


Keystone Sanitation Landfill. AdamsCounty. Pennsylvania

      The Keystone Sanitation Landfill  occupies 40  acres on a former farm. The
landfill  began accepting municipal waste and industrial construction  debris  in
1966. Ground water contamination includes volatile organic compounds and metals.

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      EPA named  18 PRPs,  including nine de minimis parties,  two of which are
municipalities,  the  City  of  York  and  the  Borough of  LeMoyne.   The  City
incinerated MSS, derived from residential and industrial sources, and disposed
of the bottom ash,  which contained metals,  such  as chromium, cadmium, and lead,
at the landfill.  The Borough disposed of MSS at the site.  The Borough served
both residential and industrial customers and intermingled industrial waste with
residential waste.   Analysis  of the MSS showed that it contained lead, chromium,
and cadmium.

      EPA is currently negotiating with the nine de minimis parties, including
the two municipal generators, to settle their liability at the landfill.

Status of negotiations
      Ongoing

Basis for settlement/contribution to waste streaa
      EPA performed a  volumetric ranking  for  the  site.    The  City  of  York
      contributed approximately 1% of the waste  at the site, and  the Borough of
      LeMoyne contributed approximately 0.4%.

Estimate of Municipal share of relief compared to total cost
      The total cost  of the  remedy is approximately S10 million.   Information
      concerning the municipal share  of the costs is not  available at this time.


Mover Landfill* Montgomery County. Pennsylvania

      The Moyer Landfill is an inactive landfill in Lower Providence Township,
Pennsylvania.  The  site was operated as a municipal and industrial landfill from
the 1940's until 1981.  EPA filed a cost recovery lawsuit against 17 generator
and owner/operator  defendants in 1989.  The group included one municipality, the
City  of  Philadelphia,  which disposed  of fly  ash  at  the site.   There  are
approximately 90 third-party defendants in a contribution action  brought by one
of the  defendants   in the  EPA civil  action.    In November 1992, EPA  and  the
Commonwealth of Pennsylvania  proposed settlement of the governments'  CERCLA cost
recovery lawsuit, including a settlement for third-party defendants which include
approximately 23 municipal generators and transporters.

Status of negotiations
      Ongoing

Basis for settlement/contribution to waste stream
      The municipalities'  connection to the site involves the transportation of
      MSW, MSS, and fly ash.

Estimate of municipal share of relief compared to the total cost
      Total estimated site  response  costs, including past costs and  O&M,  are
      approximately $55 million.   Information  concerning the municipal share of
      the costs is  not available at this time.


Straaburo Landfill. Chester County.  Pennsylvania

      The Strasburg Landfill  is   a  privately-owned landfill  to which  local
municipalities sent MSS containing metals from industrial operations which used
the sewage  treatment plant.   EPA issued  special  notice  letters to  initiate
negotiations for RD/RA  in November  1992 to four generator municipalities and
several industrial  PRPs.   The four  municipalities are:   West Goshen Township
Waste Water Treatment Plant, Downingtown Regional Water Pollution Control Center,
Valley Forge Sewer  Authority, and West Chester Goose Creek Treatment Plant.

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Status of negotiations
      A good faith offer is due in January 1993.

Basis for settlement/contribution to waste stream
      The municipalities aent KSS  to the landfill.  At the time of disposal, the
      sludges contained toxics and metals derived from industrial operations.

Estimate of municipal share of relief compared to total cost of remedy
      The  estimated  remedial cost  for  the operable  unit  is $10  million.
      Information on the municipal share is not available at this time.


                                   REOIOK IV


Lee's Lane Landfill. Jefferson County. Kentucky

      Lee's Lane Landfill is a 112-acre landfill and junkyard  in the Ohio River
floodplain.    The site  received  over  2  million  cubic  yards of  domestic,
commercial, and  industrial waste between  the 1940s and  1975.   Approximately
212,000 tons of  these wastes were various chemical  wastes.   The landfill was
closed in 1975.

      EPA  named  31  PRPs,  including  the  Louisville  and  Jefferson  County
Metropolitan Sewer District  (MSD).  MSD  disposed of KSS which included wastes
from industrial  sources.   MSD settled with EPA through  a consent order, while
other PRPs settled through a  consent decree.  MSD agreed to pay past costs and
perform all monitoring activities and O&M.

Status of negotiations
      Completed  - the consent order became effective in August 1991.

Basis for settlement/contribution to waste stream
      MSD disposed of approximately 29% of  the waste volume (pounds).  Based on
      a  toxicity analysis of  the MSS,  EPA  determined that  MSD  was a  6%
      contributor of toxic substances.

Estimate of municipal share of relief compared to total cost
      The total  estimated  cost of site cleanup is approximately $3.7 million.
      MSD's share of the settlement is approximately $222,000.   In addition, MSD
      has agreed to  perform O&M  at the site  for 29  years.   The present worth
      value  of  the  O&M  activities   is   approximately   $250,000.    The  MSD
      settlement, including the cash settlement and O&M,  is approximately 13% of
      total site  response  costs.


                                    Region V


Kummer Sanitary  Landfill,  Beltrami County. Minnesota

      Rummer Sanitary Landfill was  a  privately-owned and operated  solid waste
landfill from 1971 until 19B4.  It accepted MSW  and  hazardous wastes.  The City
of Bemidji, Minnesota, was named  as  a municipal generator and transporter PRP
for disposing of  MSW from residential and commercial sources and for transporting
perchlorethylene to the site.   EPA sent the City a general  notice letter  in 1990
but did not send special notice for the RD/RA negotiations.  The City became a
party to the RD/RA negotiations in order to obtain contribution protection.

Status of negotiations
      A settlement in principle h?~ been reached.

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 Basic  for settlement/contribution  to waste  stream
       The City transported MSW and four gallons of perchlorethylene to the site.

 Estimate  of Municipal  share  of relief compared to total  cost
       The terms of the settlement have not been disclosed pending lodging of the
       consent decree.
Mid-State Disposal.  Marathon  County. Wisconsin

      The Mid-State Disposal,  Inc.  site covers approximately 160 acres in rural,
central  Wisconsin.   From  1970 through  1979,   the site  accepted municipal,
industrial,  paper mill,  and commercial waste.   The site contains three waste
disposal units.

       In 198S, general notice  letters were sent to several parties,  including
28 municipalities.   In December 1988, special  notice letters were sent,  but the
municipalities  were  not  included  on the  list  of  recipients.    One  PRP,
Weyerhauser, agreed to perform the  remedy, and the consent decree was entered  in
March 1990.

      Weyerhauser  continued  discussions  with  municipalities and  reached   an
agreement with  16 municipalities  whereby the  municipalities will contribute
approximately $2 million and become signatories, as  third-party defendants,  to
the consent decree by means of  a stipulation filed  with the court.  The Agreed
Order Modifying Consent Decree  was approved by  the  U.S. District  Court  for the
Western District of Wisconsin on November 18,  1992.

Status of negotiations
      Completed  - the  Court  entered  the Order Modifying Consent  Decree   on
      November 18, 1992.

Basis for settlement/contribution to waste stream
      The terms were negotiated between Weyerhauser  and the 16 municipalities,
      and the basis  for the settlement was not disclosed to the United  states.

Estimate of municipal share of  relief compared to total cost
      The municipalities will  be contributing approximately $2  million.  This  is
      approximately  11%  of the estimated  cost of  the remedy  which  is  $19
      million.


Oak Grove Sanitary Landfill. Anoka. Minnesota

      The Oak Grove Sanitary Landfill began operations in 1967 as an open dump
receiving mixed municipal and  industrial  solid  waste.   The landfill closed  in
1984 when it reached  capacity.   While most of the waste  received at the landfill
constituted household trash,  a certain quantity of industrial,  chemical,  and
hazardous waste is believed to be buried in the center of the landfill.

      Region V originally investigated ten municipalities that were identified
by the owner or others who  responded to information requests as  transporters that
disposed of waste at the  site.  Although  the  Region informed  the parties that
municipalities that sent only MSW to the site would not be pursued  by the Region,
all ten municipalities are participating in negotiations seeking settlement and
protection against third-party  actions.

      In December 1991, EPA ordered  109 PRPs  to conduct RD/RA at two operable
units at the site.

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 Status of negotiations
       PRPs to whom  EPA issued an administrative  order to conduct  RD/RA have
       agreed to a global  settlement with the United  States and with  the ten
       municipalities.    The  consent  decree  for  all  parties  is  currently
       undergoing review by the Department of Justice.

 Basis for settlement/contribution to waste stream
       The total  volume of waste disposed of at the Oak Grove Site is 2.5 million
       cubic yards.  Eight of the municipalities contributed less than 5000 cubic
       yards, and the other two contributed approximately 6800 cubic yards and
       11,700 cubic  yards.    EPA has  determined   that each  municipal  waste
       generator/transporter contributed less than 1% of  the total cubic yards of
       waste at the site and, therefore,  qualifies for settlement as a de minimis
       party.

 Estimate  of municipal  share of relief compared to  total cost
       The estimated  cost of the remedy is $6.4 million.   Information concerning
       the municipal  share  of the settlement  is not  available.


 West  KL Avenue Landfill. Kalamazoo.  Michigan

       The West  KL Landfill  is  owned and  operated  by Kalamazoo County  and the
 Township  of oshtemo.   The  City of Kalamazoo disposed of MSW at the  site.   The
 Upjohn Company,  which  disposed of between 30 percent to over 60 percent of the
 waste at  the site, has agreed to take the lead  in the  cleanup, with some  help
 from  the  three  area municipalities.  The  City  of Ka lama zoo  did not  receive
 special   notice  for the  RD/RA  negotiations,  but  joined  the   settlement.
 Approximately nine additional municipal generator and/or transporters PRPs,  who
 also  did  not receive  special  notice for the RD/RA negotiations,  joined  the
 settlement.

       The two owner/operator municipalities and the City of Kalamazoo are  part
 of the overall settlement and are  responsible for the past costs ($1.7 million),
 which  they  will  pay over nine  years, plus interest.

 Status of negotiations
       Completed  - the  consent  decree was entered November 17, 1992.
Basis for settlement/contribution to waste stream
      The  City  of  Kalamazoo  and  approximately  nine  additional
      generators/transporters disposed of MSW at the site.
municipal
Estimate of municipal share of relief compared to total cost
      Total site response costs are approximately $20 million.  The three major
      municipalities are paying past costs of approximately $1.7 million, plus
      interest.   One of  these municipalities,  the City  of Kalamazoo,  is a
      municipal generator.   The settlement for  these  three municipalities is
      approximately 9% of the  total  site  response costs.   Terms for the other
      nine settling municipal generators/transporters were not disclosed to EPA.


                                  REGION VIII
Lowrv Landfill. Aurora. Colorado

      Lowry Landfill is approximately 15  miles southeast of downtown Denver and
two  miles east  of  the  City of  Aurora.    From  the mid-1960s until  1980,
approximately 143 million gallons of industrial and municipal liquid and solid
wastes were disposed of at the site in unlined trenches.   In 1980, disposal of
hazardous substances was discontinued.

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       Five municipal entities have been notified that they are PRPs because they
 arranged for the disposal of HSS at the site.  The five municipal entities are:
 City of Englewood, city of Glendale, City of Lakewood, City of  Littleton,  and
 Metro Wastewater Reclamation District. These entities were named  as PRPs because
 there was site-specific information  that indicated that hazardous  substances
 fromindustrial  processes,  including cadmium,  chromium,  lead  and  zinc,  were
 preset in  the  sludge.  No  municipalities have  been named  as PRPs  for  the
 disposal of  HSW.  EPA is curr^rxiy  negotiating with these five municipalities to
 settle  their liability at the  landfill.

 Status  of  negotiations
      Ongoing

 Basis for  settlement/contribution  to  waste  stream
      Based  on a variety of records and documents, EPA developed a waste-in list
      for  the site.  Of approximately 143 million gallons  of waste allocated at
      the   site,  the  municipalities   are  responsible   for   the   following
      contributions:
      City

      City of Glendale
      City of Lakewood
      Littleton-Englewood
      Metro Wastewater
Total Gallons

  139,598
2,838,684
5,590,928
8,039,250
% Share of Total

       .01%
      1.99%
      3.91%
      5.62%
Estimate of Municipal share of  relief compared to total cost
      The  only total remedy  cost  figure which is currently  available is the
      figure   calculated   prior   to   the   performance   of   any   remedial
      investigation/feasibility study at the site.  This figure, $536  million,
      was  used for a de minimis generator  settlement  completed in  1992.
      proposed plan for Operable Units 1 & 6 was recently issued.  The estimat
      cost associated with the proposed  plan for this  major  portion  of  the site
      remedy is $61 million, indicating  that the total remedy  cost is likely to
      be considerably less than the previous estimate.  Information concerning
      the municipal share of these costs is not available.
                                   REGION XX
Operating Industries. Inc.  (Oil) Site. Monterey Park. California

      The Oil  landfill  is a 190-acre landfill that was  operated from 1948 to
1984.   It  accepted liquid  and  solid industrial wastes, as  well as municipal
wastes.  EPA has identified  almost 4000 PRPs,  including industrial and municipal
waste generators and transporters of manifested wastes.

      Between 1986 and 1989, general  notice letters were  sent  to about 280 PRPs.
General   notice   letters  will   soon   be   sent  to   the  3700   remaining
generator/transporter PRPs.   About  170 generators settled with EPA for the first
three operable units at the  site.

      Ir. December 1989, a group of  settlers to the first Partial Consent Decree
sued 29 local cities and  the California Department of Transportation,  alleging
they were liable for clean-up costs at Oil because of their disposal of waste,
including HSW.   Except for Monterey Park, an owner/operator PRP, EPA had not sent
notice letters  to  these municipalities.   The plaintiffs engaged in extensive
discovery and  developed a  volumetric allocation  for  the cities.   Under this
allocation,  the  cities fell into  two general categories by  volume,  with  ten
cities contributing de minimia quantities.  These ten municipalities,
                                      8

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collectively responsible for less than 3% of the volume of disposed MSW, settled
with the plaintiffs and with EPA for cash payments to resolve their liability for
HSW disposal.

Statue of negotiations
      Completed - On September 17,  1992, EPA signed an administrative order on
      consent with ten de minimis municipalities.  None of the ten had been sent
      notice letters by EPA.  The order became effective on December 22, 1992.
      Settlement discussions  are continuing  between  the  plaintiffs  and the 19
      other municipal defendants.

Basis for settlement/contribution to waste stream
      The da minimis municipalities collectively contributed less than 3% of the
      MSW at the  site.   The settlement payments to be made by the  de minimis
      municipalities to  EPA  and  the plaintiffs,  combined, total $2.1 million.
      Of that  amount,  $382,423.50 is to be  paid to EPA.   The portion of the
      total settlement  to be paid to EPA was  arrived at through negotiations
      among  EPA,   the  plaintiffs,  and  the  de minimis  municipalities.    The
      allocation of the EPA settlement payment among the individual de minimis
      municipalities is based upon the volumetric allocation.

Estimate of municipal share of relief compared to total cost
      The ten de minimis municipalities will pay the United States $382, 423 and
      will pay  $1.79 million to  PRPs at  the site for a total of  $2,172,423.
      Although the final ROD has not yet been issued, the total response costs
      for  the  site  are  estimated to  be approximately $650  million.    The
      municipalities' settlement represents approximately 0.3% of the total site
      response costs.

      At  least two  of  the  settling  municipal  entities also  contributed  de
      minimis quantities of manifested waste.   The settlement  for MSW expressly
      excluded any potential liability for manifested liquid waste.   These two
      municipalities  will  be  given the  opportunity   to  participate  in  a
      forthcoming  de minimis settlement  for  generators  of  manifested liquid
      waste.

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