UNITED STATES ENVIRONMENTAL PROTECTION AGtNCY
                        WASHINGTON, O.C. 20460


                             JUL  ! 2 1985
MEMORANDUM

SUBJECT:  Small Cost Recovery Referrals
FROM:     Frederick F. Stiehl
          Associate Enforcement Counsel for Waste
          Office of Enforcement and Compliance Monitoring

          Gene A. Lucero, Director (r>vML r»-
          Office of Waste Programs Enforcement
          Office of Solid Waste and Emergency Response

TO:       Regional Counsels, Regions I-X
          Regional Waste Management Division Directors.
            Regions I-X

     Based on discussions among our staff and Regional
enforcement personnel, it appears that confusion exists
regarding Agency policy on referring CERCLA cost recovery
cases valued at less than $200,000.  Apparently, a few of the
Regions believe that Headquarters will not accept these cases
because the December 5, 1984, Interim CERCLA Settlement Policy
(1) places a high priority on large dollar amount cases (see
the section on targets for litigation (p. 17), which discusses
referring cases involving a "significant" amount of money),
and (2) references the possibility that cases under $200,000
could be handled administratively.

     Although the Agency has placed a higher priority on
referring cost recovery cases with expenditures in excess of
$200,000, there are situations where referring small cost
recovery actions is entirely appropriate.  For example, where
we have initiated settlement discussions which have failed to
produce a settlement because of the recalcitrance of the
responsible parties, referral would generally be appropriate to
demonstrate the Agency's commitment toward enforcement as a
vehicle to compel private party response at CERCLA sites.  In
addition, where a Region has no cases for more than $200,000,
where an enforcement presence would serve a deterrent effect,
where a Region's other enforcement priorities allow for the
expenditure of resources to support a small cost recovery case,
or where the circumstances are ripe for testing some important
aspect of law, referral of such a case would be appropriate.

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9832.6
     As you kn~  ,  the  Agency  is  working  toward providing the
Regions with both  the  tools and  the authority to settle small
cost recovery cases (up  to $500,000) administratively.  To
ensure that such administrative  resolutions are attractive
options for responsible  parties, however, the Agency oust be
prepared to take judicial  action against those who do not
settle on terms  acceptable to the Agency.  Under such circum-
stances, small cost recovery  actions will take on an even
greater importance, since  it  will be necessary to show the
regulated community that the  Agency is serious about pursuing
small cost recovery cases  in  the judicial, as well as the
administrative,  forum.  In furtherance of that effort, our
offices and the  Department of Justice are prepared to fully
support small cost recovery cases referred by the Regions which
further program  goals  and  are^ otherwise consistent with Agency
policy.                     ~       -	

     For nest of you this  memorandum simply confirms operating
guidance which you are already following.  We wanted to ensure,
however, that the  Settlement  Policy did not create any undue
reluctance on the  part of  the Regions to develop small cost
recovery cases for referral.

cc:  David T. Buente,  Department of Justice

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