United State*
            Environmental Protection
            Agency
          Off ice of
          Solid Waste end
          Emergency Responae
     &EPA
^DIRECTIVE NUMBER: :^9832.0
              »
             •^
TITLE: -' COST RECOVERY REFERRALS
           *•_*  *"  »



^APPROVAL DATE:  AUGUST 3;-'l983


           :AUGUST 3,,'1983
             ORIGlIMATINGFFICE:
            D DRAFT

            ' '^STATUS



            .REFERENCE (other documents):
  OSWER     OSWER     OSWER
VE   DIRECTIVE   DIRECTIVE   Dl

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SEPA
.United States tnvironmental Protection Agency
Washington. DC 20460
OSWER Directive initiation Request
Originator Information
Name of Contact Person
Ja.net Fazrella
Lead Office 1 — j
D OERR (3
D OSW Q
OWPE
AA-OSWER
WH-527
Approved
Interim Directive Numi
9832.0

Te,ephoneN^e_r2034
for Review
Signature of Office Director ,. /
Data
Title
      Cost Recovery  Referrals
Summary of Directive
   basic Rules  for handling and documenting  upcoming §107  referrals
  Key Words: Cost  recovery,  documenting,  rules
 ype of Directive /Manual. Policy Directive. Announcement, etc.!
                                                                            Status
                                                                                   Draft
                                                            D'
                                                            a
                                                                                                      New
                                                                                                      Revision
Does this Directive Supersede Previous Directives)?    |  j Yes   [ \  No   Does It Supplement Previous Oirectivelsi?    (_J Yes   j	|  N-
f "Yes" to tither Question. What Directive /number, title)
leview Plan
   D AA-OSWEH   D OUST
   D OERR        CH OWPE
   D OSW        LJ Regions
O OECM
D OGC
D OPPS
Other ISpeci/yl
 his Request Meets OSWER Directives System rormat
 ignature of Lead Offii
                                                                                           Date
 ignature of OSWER Directives Officer
                                                                                           Date
EPA Form 1315-17 (10-85)

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                                                     OSWER 2 9832.0
    Ti
    =    UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
    *                   WASHINGTON. DC Z0««0
                          3AUG 1S83
MEMORANDUM

SUBJECT:  Coat Recovery Referrals
                                                            or
                                                            COUMftCU
          Accing Associajfe Enforcement Cunsel
TO:       Regional Counsels,
          Regions I-X
     }  .

      Recently, you provided my office with projections of
hazardous waste civil referrals to Headquarters through the
remainder o.f FY 1983.  Included in the projected total of 27
referrals were 19. cost recovery referrals.  Nearly all of
these actions would involve recovery of costs associated
with immediate removals.

     Oh July 27, 1983, we met with the Department of Justice to
discuss the most appropriate means for managing these expected
referrals. . In light of our continuing difficulties with cost
documentation for existing referrals and actions, we agreed to
two basic rules for handling the anticipated §107
referrals:

     1.   OEC-Waste will only accept referrals which include
          appropriate cost documentation.  If documentation is
          inadequate, the referrals will be returned to the
          Regions for further development.  To assist you in
          assessing the adequacy of your • referral , I refer you
          to the draft guidance, "Cost Recovery Actions Under
          CE3.CLA," which was distributed to the Regional Division
          Directors at their national meeting on May 11 and 12,
          1983, and to the attached document entitled "Partial
          Liat of Documents Needed to Support Coat Recovery." I
          •trongly recommend that you include copies of the sup-
          porting documents in the referral package.  If for
          •ome reason this is not possible, the referral package
          should clearly identify the specific documents which
          support your claims.  Ultimately, this documentation
          will have to be provided to DO J .  If you have questions
          regarding documentation in your specific cases, please
          contact the appropriate Regional coordinator in my
          office.

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                                                       OSNER =? 9832.0
i ^^7 I     UN.1TED STATES ENVIRONMENTAL PROTECTION AGENCY
 "•*.     .^                    WASHINGTON. OC 20460
    MEMOR.^DUM

    SUBJECT:  Cost Recovery Referrals
    FROM:  '   Ki4/F:. (\Sniff      '          •.         ,
              A-ct.in^hC3"scciace Er.forcemenc 'Counsel  for  Vasce
    TO:        OEC-w Scaff

         On August: 2, 1983., I issued a aeaorancua  scacir.g  several
    general policies regarding che processing o_f referrals  under
    §107 of CERCLA.  Since ~hat ciae, a. nuaber of.yjiu  have  raised
    quesrions.regarding. 37 aenorandun.  This is incended  co provide
    further cla'rificacicn.

            '  1.  The aeaorandum scacas chat: if, for some  reason,
    che  Regions have noc included copies -of supporting-docunencacion
    in che referral pac.v.i^e, che-referral should clearly  idencify
    che  specific docuaencs which support che claims.   This
    idencificacion should be in che fora of a specific invencory
    of che supporting docunencs,  indicating che idencicy,  location
    and. cuscodian of che documents.  A general avennenc chac
              ion is "available"  will noc.-suffi.ee.
              2.    The memorandum states chac. DOJ will only  file
    those cost recovery claims for which chera — is ade.quace docu-
    mentation.  However,  there may be cases where those  claims
    which can be  prosecuced innnediacely are noc su'oscancial  when
    compared wich che cocal pocential action. • For example,  if  che
    Region refers a case  seeking recovery or $'200 ,000 buC can only
    document $3,000.,  the  Headquarters . attorney should seriously
    consider declining che referral until further documentation.
    is  provided.   This decision is case-specific.  However,  as  a
    general guide, you should consider whether the documenced case
    is  sufficient Co  stand on ics own.  Of course, in making your
    recommendation you should also consider other important  factors
    such' as che Scatute of Liini cat ions , or che need to make  a
    p^.-... „„.-.,• TTO fi T.-'.par ( o  n  nO4 nrOOf <"> f <* J
         I  hope  this  answers some of your questions.   If you  have
   other quescions please feel, free co raise chers.

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                                                  OSWER #
 PARTIAL LIST OF DOCUMENTS NEEDED TO SUPPORT COST RECOVERY
1.  Total Payroll expenditures for attorneys, with supporting
time cards and time sheets

2.  Total payroll expenditures for technical personnel,
with supporting time cards and time sheets

3.  Total expenditures for travel for attorneys, with
supporting authorizations and vouchers.

4.  Total expenditures for travel ,for technical personnel,
with supporting authorizations and vouchers.

.5.  For FIT contract expenditures:  affidavit by contractor
describing work done, hours spent, hourly cost, overhead
calculations -and total cost; vouchers from contractor to
EPA requesting payment; Agency records shewing, authorization
for Treasury to pay contractor     •• '    '

6.  For National Lab Contract expenditures:  contractor
summary of samples taken at site and distributed to labs
for analysis, individual an.d total cost of sample analyses,
contractor overhead costs, name of lab conducting analyses,
sample numbers,, invoice numbers, total costs, copies of
all invoices (types I and II), copies of bills from lab
to contractor and frcm contractor to EPA if  "SAS" samples;
affidavit from EPA official verifying contents of contractor
summary; copy of Agency's authorization for Treasury to
pay contractor; vouchers from contractor to Agency
requesting payment.

7.  For expenditures by Regional Lao or ORD  (e.g.,. aerial  -
photography):  affidavit showing nature of work and total
cost, invoices, record of payment.

8.  For immediate removals:  contractor invoices certified
by OSC; record of authorization for Treasury to pay
contractor; daily contractor cost reports (rough and final);
daily verification of work and costs by OSC.

9.  Documentation of expenditures by TAT and any other
contractors used, expenditures by other agencies,
expenditures by State under Superfund contract or
cooperative agreement. •

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