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 ------- 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. ------- 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. ------- 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. ------- 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. ------- 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. ------- 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. ------- 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 ------- 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. ------- ------- |