UNITED . fATES ENVIRONMENTAL PROTL  ION AGENCY

                           WASHINGTON. DC  20460
                               JMN3I 880
MEMORANDUM

SUBJECT:  Final Model Litigation Report and Complaint for CERCLA
          Section 104(e) Enforcement Initiative

   FROM:  Glenn L. Unterberger jz£
-------
                                                        540R90011

                             MODEL CERCLA 104(e)  COMPLAINT
                IN THE UNITED STATES DISTRICT COURT
                 FOR THE DISTRICT OF...
UNITED STATES OF AMERICA,        )
                                 )
                   Plaintiff,    )

           v.                    )       Civil Action No,



                    Defendant.   )
                            COMPLAINT

     Plaintiff, the United States of America, by authority of the

Attorney General and acting at the request of the Administrator

of the Environmental Protection Agency ("EPA"), alleges as

follows:

                       NATURE  OF  THE  CLAIMS

     1.  The claims in this complaint arise under section I04(e)

of the Comprehensive Environmental Response, Compensation, and

Liability Act  (hereinafter "CERCLA"), 42 U.S.C. § 9604(e), for

failure to provide information requested by EPA concerning the

identification, nature, and quantity of materials that have been

generated, stored, treated, transported to and/or disposed of at

the [FACILITY], the nature and extent of a release or threatened

release of hazardous substances at or from the [FACILITY], and

information relating to the ability of a person to pay for or

-------
                                2




perform the cleanup of the [FACILITY].   The  complaint seeks an



injunction ordering the defendant,  [NAME], to  supply the




requested information and civil  penalties  for  defendant's failure



to comply with EPA's duly authorized requests.



                      DEFENDANT




[USE A SEPARATE PARAGRAPH FOR EACH  DEFENDANT.   THE FOLLOWING




PARAGRAPHS ARE MODELS FOR THE VARIOUS TYPES  OF DEFENDANTS LIKELY




TO BE ENCOUNTERED.]




     2.   Defendant [NAME] is a [STATE]  corporation [DOING




BUSINESS OR WITH ITS PRINCIPAL PLACE OF BUSINESS] at [ADDRESS].




[ INCLUDE HERE ANY PARTICULARS RELATING TO  MERGER WITH OTHER




CORPORATIONS, DISSOLUTION, OR ANY  OTHER LIKE INFORMATION.]




     3.   The defendants [NAME] and  [NAME]  are the trustees of  the




[NAME],  a trust created by declaration of  trust dated [DATE],  and




recorded with the [APPROPRIATE RECORDING OFFICE] at book 	,




page 	,  with its principal place of business at [ADDRESS].




     4.   The defendant [NAME] is an individual who resides at




[ADDRESS].




     5.   The defendant [NAME] is a [STATE] [LIMITED] partnership




with its principal place of business at [ADDRESS]








                      JURISDICTION  AND  VENUE




     3.   This Court has jurisdiction over the subject matter  of




this action and over the parties under 42 U.S.C.  §  9613(b)  and




U.S.C.  5§ 1331, 1345 and 1355.  Venue  lies  in this district  u:




28 U.S.C. 5 1391 and 42 H.S.C. 5 OhMtb).

-------
                                3

                       GENERAL ALLEGATIONS

     4.  Section  104(e)(2), 42 U.S.C. § 9604(e)(2), of CERCLA

provides,  in pertinent part:


          Any officer, employee, or  representative  [of
          the President, duly designated by the President],
          may require any person who has or may have
          information relevant to any of the  following to
          furnish, upon reasonable notice, information or
          documents relating to such matter:

           (A)  The identification, nature, and quantity
          of materials which have been or are generated,
          treated, stored, or disposed of at  a vessel or
          facility or transported to a vessel or  facility;

           (B)  The nature or extent of a release  or
          threatened release of a hazardous substance or
          pollutant or contaminant at or from a vessel or
          facility;

           (C)  Information relating  to the ability of a person  to
          pay for or to perform a cleanup.

     5.  [WAI-IE] is a "person" within the meaning  of section

101(21) Of CERCLA, 42 U.S.C. § 9601(21).

     6.  [DESCRIPTION OF DEFENDANT'S INVOLVEMENT  -  I.E.. WHETHER

DEFENDANT WAS AN OWNER, OPERATOR, GENERATOR OR TRANSPORTER OF

HAZARDOUS SUBSTANCES, OR OTHER PERSON WHO FAILED  TO COMPLY WITH

THE REQUEST, ETC.  PROVIDE PARTICULARS.]

     7.  [DESCRIPTION OF THE SITE OR FACILITY;

STATEMENT THAT SITE IS A "FACILITY"  WITHIN THE MEANING OF

SECTION 101(9) OF CERCLA, 42 U.S.C.  § 9601(9).]

     8.  EPA has a reasonable basis  to believe that  there  may  be

a release or threat of release of a  hazardous substance  or

pollutant or contaminant at Mie facility, within  the  meaning of

section 101(22) of CERCLA, 42 U.S.C. S 9601 (.22).    [PROVIDE  A

-------
BRIEF EXPLANATION OF EPA'S KNOWLEDGE OF THE RELEASE OR THREAT  OF



RELEASE.]



     9.  'Oft [DATE], EPA sent  [NAME  OF  DEFENDANT] a request



seeking  information and documents,  pursuant to  section  10 -.e)  of



CERCLA,  42 U.S.C.  § 9604(e).   A true and  accurate copy  of  this



information request is attached as  Exhibit A  to this  complaint



and is incorporated by reference.



     10.  The [DATE] information request  was  authorized by



[NAME'l ,  a duly designated employee  and representative of the



President under CERCLA, for the purpose of enforcing  CERCLA.



Authority under section 104(e), 42  U.S.C.  §  9604(e),  has been  .



delegated to the Administrator of  EPA  by  Executive  Order No.



12580, 52 Fed. Reg. 2923 (January  29,  1987)  and redelegated



pursuant to CERCLA Delegation 14-6  (September 13,  1987)  [and



Regional Delegation 	(DATE)].



     11.  [NAME OF DEFENDANT] received the  [DATE] - information



request  on [DATE]  by certified mail,  return  receipt requested.



Attached as Exhibit B is a true and accurate copy of  the return



receipt  signed by 	 on behalf of [NAME OF DEFENDANT]



evidencing that [NAME OF DEFENDANT] received the information




request.



     12.  [NAME OF DEFENDANT] did not  respond to the information



request  and did not provide EPA with any of  the information of



documents requested.  [MODIFY AS APPROPRIATE. ]  Reasonable



notice was given to [NAME OF DEFENDANT ] ,  as  it was provided w»th

-------
                              .  5



30 days  in which to respond to EPA's information request.



[MODIFY  AS REQUIRED.]



     13.  [NAME OF DEFENDANT] has never submitted to EPA any



justification of its failure to respond to the information



request.  [MODIFY OR DELETE AS APPROPRIATE.]



     [PARAGRAPHS 14 THROUGH 16 ARE OPTIONAL.]



     14.  On [DATE], EPA sent a second letter to [NAME OF



DEFENDANT], care of [NAME OF ADDRESSEE], certified mail, return



receipt  requested pursuant to section 104(e)(l), 42 U.S.C. §



9604(e)  stating that EPA had not received [NAME OF DEFENDANT]'s



response to the information request of [DATE], and again



requesting information relating to the [SITE]. A true and



accurate copy of this letter is attached as Exhibit C to this



complaint and is incorporated by reference.



     15.  [NAME OF DEFENDANT] received the [DATE] reminder letter



on [DATE].  Attached as Exhibit D is a true and accurate copy of



the return receipt signed by   .   on behalf of [NAME OF



DEFENDANT] evidencing that [NAME OF DEFENDANT] received  the



reminder letter.



     16.  [NAME OF DEFENDANT] did not respond to the reminder



letter and did not provide EPA with any information or documents



requested.  [MODIFY AS APPROPRIATE.]



     17.  [INCLUDE ANY OTHER PERTINENT FACTUAL INFORMATION SUCH



AS TELEPHONE CONVERSATIONS.]



     18.  The purposes for which EPA sent the  [DATE] information



request were to enforce the provisions of CERCLA and to  assist

-------
                                6



in determining the need for  response  to  the  release of  a



hazardous substance.  [MODIFY AS  APPROPRIATE.]  EPA's  information



request was in accordance with  law  and was neither arbitrary nor



capricious nor an abuse of discretion.



                         CLAIM FOR RELIEF



     19.   Paragraphs  1 through  18 are incorporated by reference.



     20.   Section 104(e)(5)(B),  42  U.S.C.  §  9604(e)(5)(B),  of



CERCLA authorizes the United States "to  commence  a civil  action



to compel compliance  with a  request"  for information  and



documents issued pursuant to section  104(e), 42 U.S.C.  §  9604(e).



     21.   Section 104(e)(5)(B)  authorizes  the Court  to compel



compliance with a request for information  and documents;  that



section further authorizes a Court  to "assess a civil penalty not



to exceed $25,000 for each day  of noncompliance"  with such a



request for information and  documents against any person  who



unreasonably fails to provide the  information and documents



requested.



      22.  EPA's demand for  information  and/or documents  was not



arbitrary or capricious or an abuse of  discretion,  and was  issued



in accordance with law. [NAME OF DEFENDANT]  violated section



104(e), 42 U.S.C. § 9604(e)  by  unreasonably failing  to provide



the information- and documents requested  by the [DATE]  information



request.

-------
                        PRAYER FOR RELIEF



     WHEREFORE, plaintiff United States of America prays for the

following relief:

     1.  That the Court issue an order, pursuant to section

104(e)(5) of CERCLA, 42 U.S.C. § 9604(e)(5), directing [NAME OF

DEFENDANT] to comply fully with the information request of

[DATE];

     2.  That the Court award the United States civil penalties

pursuant to section I04(e)(5) of CERCLA, 42 U.S.C. § 9604(e)(5),

not to exceed $25,000 for each day from [DATE of FIRST VIOLATION]

until the date when the information is finally and completely

provided;

     3.  That the Court award the United States its costs,

including response costs, under sections 104(b)(l) and 104(e) of

CERCLA, 42 U.S.C §§ 9604(b)(l) and 9604(e); and

     4.  That the Court grant such further and other relief as  it

may deem appropriate.



                         Respectfully submitted,
                         Richard B. Stewart
                         Assistant Attorney General
                         Land and Natural Resources Division

-------
                         [NAME]
                         Attorney,  Environmental Enf rcement
                              Section
                         Land and Natural Resources Division
                         U.S. Department of Justice
                         Washington, D.C. 20044
                         [NAME]
                         Assistant United States Attorney
OF COUNSEL:

[LIST NAMES OF EPA HQ AND REGIONAL ATTORNEYS]

-------
                     MODEL LITIGATION REPORT

                 CERCLA  Section  104(e)(2) Actions
This guidance and any internal procedures adopted for its
implementation are intended solely as guidance for employees ot
the U.S. Environmental Protection Agency.  Such guidance and
procedures do not constitute rule making by the Agency and may
not be relied upon to create a right or benefit, substantive or
procedural, enforceable at law or in equity, by any person.  The
Agency may take action at variance with this guidance and  its
internal implementing procedures.
                     January 12, 1990

-------
                     MODEL LITIGATION REPORT



                CERCLA  S£  :ion 104(6)(2) Actions





   I.      Cover Page



  II.      Table of Contents



 III.      Synopsis of the Case (Executive Summary)



  IV.      Statutory Basis of Referral



   V.      Description of the Site



  VI.      Enforcement History and Related Litigation



 VII.      Description of Defendant(s)



VIII.      Description of Violations



  IX.      Anticipated Defenses



   X.      Relief Sought



  XI.      Significance of Referral/Major Issues



 XII.      Litigation Strategy

-------
                                      [This is  attorney  work
                                      product prepared  in
                                      anticipation of
                                      litigation.]
                    MODEL LITIGATION REPORT
                CERCLA Section I04(e)(2)  Actions
I.   Cover Page



     A.   Region, statute(s) involved and judicial district.



     B.   Name of defendant(s)  by category (e.g. ,  owners,

         operators, generators,  transporters, or  other persons

         who have failed to comply with the request).



         Include names, addresses and telephone numbers of

         all proposed defendants in an appendix to the

         litigation report.  List all other § 104(e)  defendants

         for this site that the  Region is contemplating pursuing

         with addresses (where available).



     C.   Name, address and EPA ID Number of facility or

         facilities that is/are  the subject of the information

         request where available.
         Include name, address and telephone number  (if

         available) of all facilities/sites subject  to the

         referral.

-------
     D.  Regional contacts.








         Include names, addresses  and  telephone  numbers  of



         regional contacts  who  prepared the  report.








     E.  Stamp date of referral on cover page.
II.   Table of Contents







     Include headings, subheadings and page  numbers.







Ill.   Synopsis of the Case (Executive Summary)







     This should be a concise summary describing the site, the



status of the site in the Superfund program, enforcement history



to date, proposed defendants, particulars of the violations



(i.e.. failure to respond or inadequate response, date of



request, date of any follow up requests), significance of the



case and relief sought.

-------
IV.  Statutory Basis of Referral







     A.  Applicable Statute and Elements of Proof







          (1)   General







          .This Model Litigation report focuses on  § 104(e).   EPA



          also has authority under RCRA § 3007 to  issue and



          enforce information requests.  The Regions may elect to



          invoke RCRA as well as'CERCLA in judicial actions to



          enforce such authority.







          Section 104(e) of CERCLA, 42 U.S.C.  § 9604(e),



          authorizes EPA to require that information be provided



          to it by any person for the purposes of  determining the



          need for response, choosing or taking any response



          action under CERCLA, or enforcing the provisions of



          CERCLA (CERCLA Section 104(e)(D).





This information must relate to: (1) the identification, nature



and quantity of materials generated, treated, stored, or disposed



of at a facility or transported to a facility,  (2)  the  nature of



extent of a release or threatened  release of  hazardous  material



from a facility, or (3) the ability of a person to  perform or



for a cleanup  (CERCLA Section  L04(eM2)).

-------
     Section 104(e)(5)(B)  authorizes  EPA  to commence  a  civil
action to compel compliance  with  a  request or  administrative
order, and to assess penalties.

     (2)   Elements of Proof

     Reference should be made  to  the  "Guidance on Use and
Enforcement of CER.CLA Information Requests and Administrative
Subpoenas" (August 25, 1988) to ensure  that  all proper steps have
been followed in making the  information requests.   (See pp. 7-
17.)  This Guidance also discusses  the  nature  of the evidence
required to support a 104(e) action,  including:

     1.  That the information request  was  issued by
        an authorized person (see EPA Delegation 14-6,
        September 13, 1987);

     2.  That U.S. EPA has a  "reasonable basis  to
        believe that there may be a release  or threat of
        release of a hazardous substance, pollutant or
        contaminant" at a site or vessel;

     3.  That the information request  was  issued for
        determining the need  or  a  response  or choosing or
        taking any response  action  'inder  CERCLA Title  I,

-------
                                5
         or  otherwise enforcing CERCLA Title I, with
         respect to the site or vessel;


      4.  That  the  respondent was requested to provide
         information relating to one or more of the categories
         of  information identified above (see.  Section 104(e)(2)
         (A) through (C)) ;


      5.  That  the  respondent did not fully comply with the
         request or comply in a timely manner  (see, pp. 18-20 of
         the "Guidance on Use and Enforcement of CERCLA
         Information Requests and Administrative Subpoenas"
         (August 25, 1988) ).


B.  Enforcement Authority; Jurisdiction and Venue
                                          *

      United  States District Courts have jurisdiction to enforce
Section  104(e).  See. 42 U.S.C. § 9613(b).  Venue may be
determined with reference to 28 U.S.C. §§ 1391(b) and (c) and 42
U.S.C. § 9613(b).


V.  Description of the Site


      Include  a brief discussion of the site location  and site
description.  Status of the NPL Listing and a general description

-------
                                6
of the environmental problem posed by the site should also be
included.
VI.  Enforcement History and Related Litigation

     Where applicable, the following information should be
discussed:

     1.  All contacts (written and oral) with potential
         defendants pertaining to the information request.

     2.  Involvement  (with regard to the Site) of State,  local
         agencies or citizens.
                     »
     3.  Related administrative or judicial actions, and
         their status.   (Note, however, that pre-existing
         litigation is not a prerequisite for filing a  104(e)
         action nor does Section I04(e) require
         that information requests be issued pursuant to
         a pending adjudicatory proceeding.)

VII.  Description of  Proposed Defendants

     The following information should be  included  in  the  repor
.with respect to each  proposed defendant:

-------
1.  A brief description of the relationship of  the  proposed



    defendant to the site.  (For additional guidance,  see.



    "Model Litigation Report for CERCLA Sections  106  and



    107 and RCRA Section 7003," June 21,  1989.)








2.  State of incorporation/principal place of business.



    (Include name changes and changes in corporate  form.)








3.  Agent for service of process.   (Include name, address



    and telephone number.)








4.  Legal counsel,  if known.  (Include name, address



    and telephone number.)








5.  Identity of any parent or successor corporations, if



    applicable and information available.








6.  If defendant is a corporate officer and addressee,



    discuss issues of personal liability,  if any (i.e. .



    corporate officers/managers' personal involvement).








7.  Description and evidence of financial viability.



    (Where financial viability of a potential defendant



    is an issue, financial  information will be



    important.)

-------
                                8
VIII.  Description of Violations

     State with particularity  all  information  requests  and
follow-up letters sent to or telephone  calls made  to  each
proposed defendant and each reply,  written or  oral,  received from
each proposed defendant.   Include  copies  of  letters,  mail
receipts and telephone/meeting records  as attachments.   For each
defendant, describe the nature of  the violations,  including:

    1.   Evidence supporting a  prima facie case (see.  elements in
        IV.A.2.)

    2.   The number of days that defendant has  been in violation.
        Explain the basis for  calculating that number of days
        unless they are calculated from the  due date of the first
        request letter.

    3.   The number of violations for each defendant;

    4.   The extent and/or materiality of the omissions or
        inaccuracies in any partial response;

    5.   Evidence of bad faith; and

    6.   Whether the failure  to respond  caused identifiable

-------
                                9
         harm  (such as delaying or impeding settlement
         negotiations or enforcement actions,  or withholding
         information about a hazardous substance or
         conditions that might be useful to EPA in making
         remedial decisions);

(See.  Memo from Edward E. Reich to Regional Administrators,
"CERCLA Section 104(e) Enforcement Initiative," dated September
26 ,  1989. )

IX.   Anticipated Defenses

     Discuss any anticipated legal or equitable defenses that may
arise in connection with this action, even if they appear to lack
merit, and proposed responses to such alleged defenses.   (Your
assessment of the strength of the defense should be stated in a
brief narrative.)   Examples of possible defenses that may be
raised include the following:

     1.   Privilege claims (attorney-client, or work product
         exclusion).

     2.   Confidentiality claims under § I04(e)(7).  This is not
         a proper ground for objection, since EPA will treat
         as confidential any information subject to a proper
         confidentiality claim (see Section 104(e>(7)).

-------
                               10
     3.  Constitutional defenses:   5th  Amendment  and  denial of



         equal protection.   (Note  that  104(e)  does  not  require



         that U.S.  EPA seek information from  all  PRPs.)








     4.  The request for information or documents is  arbitrary



         and capricious, an abuse  of discretion or  otherwise  not



         in accordance with law.








     5.  A good faith effort was made to comply with  the



         information request.








     6.  The information requested is not relevant  to the



         invest igation.








This list is not intended to suggest that these defenses are



viable ones.








X.   Relief Sought








     Both civil penalties and injunctive relief typically will be



sought in an action filed under Sec~ion 104(e)(5)(B).  Civil



penalties of up to 525,000 per day for each day of noncompliance



may be assessed by a court for failure to adequately respond to



an information request  letter.   The complaint should seek the




full statutory amount  for each defendant.  Where appropriate,  •

-------
                                11
complaint  should seek an injunction, including an order to
provide  the  required information.  To the extent possible, the
referral should propose the appropriate relief and penalty amount
to accept  in settlement and the basis for these recommendations.
XI.   Significance of Refer,  i/Malor Issues

     Any issues of precedential significance should be raised in
this section., as well as the importance of obtaining the
information to any related litigation.  For example, if
defendants' refusal to provide the information requested may
frustrate settlement discussions with other PRPs,  this should be
noted.

XII.   Litigation Strategy

     Questions of strategy should be raised in this section,
including the proposed course of action should the defendant
comply with the information request during the pendency of the
action.  Recommendations regarding the timing of filing of a
summary judgment motion, as well as settlement potential, should
also be addressed.

-------