/

           UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                       WASHINGTON. O.C  20440

                                                       9834.10


                                  087  .
                                              SOUOWACTI AND CMIMOIMCV MIMONSf

MEMORANDUM
SUBJECT:  Transmittal of Notice Letter Guidance
                                (Q0k£.
                                n tnf
PROM:      Gene  Lucero,  Director
           Office  of Waste  progra'jr*'Enforcement

TO:        Addressees

     Attached is  the "Interim Guidance on Notice  Letters,
Negotiations, and information Exchange."  Mote  that Appendix C
containing model notice letters is not included in this package,
but will be~ distributed under separate cover  in the next couple
of weeks.

Attachment

Addressees:

Directors, Haste  Management Divisions, Regions  I,IV,v,VIl,vill
Director,  Emergency and Remedial Response Division, Region  II
Director,  Hazardous Waste  Management Division,  Region  III
Directors, Air  and Waste Management Division, Regions  II,vi
Director,  Toxics  and Haste Management Division, Region IX
Director,  Hazardous Waste  Division, Region X

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                                               9834.10
INTERIM GUIDANCE ON NOTICE LETTERS, NEGOTIATIONS,
           AND INFORMATION EXCHANGE

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                                                      9834.10



                     Tabl« of Contents

  I.  Introduction

 II.  Purpose and Scop* of Guidance

III.  Statutory Authority

      A.  Settlements

      B.  Special Notice Procedures and Information Release

 IV.  Information Exchange

      A.  Information Requests

      B.  Information Release

  V.  Notice  Letters  and Negotiation Moratorium for RI/FS and
        RO/RA

      A.  Purpose of  Notice Letters

      B.  Ceneral Notice Letter

          1.   Whether to Issue  General Notice
          2.   Timing  of  Ceneral Notice
          3.   Recipients of Ceneral Notice
          4.   Contents  of General  Notice

      C.  RI/PS and RO/RA Special  Notice Letters

          1.   Whether to Issue  RI/FS and RO/RA Special Notice
          2.   Notifying PRFs When  Not Appropriate to Issue
                RZ/FS and RO/RA Special Notice
          3.   DOJ Role in RZ/FS and RO/RA Negotiations
          4.   Timing  of RZ/FS Special Notice
          5.   Timing  of RO/RA Special Notice
          «.   Recipients of RZ/FS  and RO/RA Special Notice
          7.   Contents of RZ/FS and RO/RA Special Notice

      O.  Conclusion  of Negotiation Moratorium and Deadline
          Management  for RZ/FS and RO/RA

 VZ.  Notice Letters  and Negotiation Moratorium for Removal
        Actions

      A.  Notice Letters

          1.  Whether to Issue Notice for Removals
          2.  When to Use Special  Notice Procedures for
                 Removals

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                                                        9834.10
            3.  Notifying PRPs When Not Appropriate To Utilizt
                 Special Notice Procedures for Removal*
            4.  DOJ Role in Removal Negotiations
            5.  Timing of Notice for Removals
            6.  Recipients of Notice for Removals
            7.  Contents of Notice for Removals

        B.   Conclusion of Negotiation Moratorium and Deadline
            Management for Removals

        C.   Administrative Orders and Negotiation Moratorium
            for Removals

 VII.  Disclaimer

viii.  For Further  Information


 Appendices -

   Appendix A:   Timing of  RD/RA Special Notice Letter
   Appendix B:   Settlement  Process Timelines
   Appendix C:   Model Notice Letters (To be provided under
                separate cover)

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            UNITED STATES EN VIRONMENTAL PROTECTION AGENCY      9 8 3 4.1 0

                       WASHINGTON. O.C. 20440
                             nrr \ Q IQJJT                 o^^cio*
                             U^l  19 I3OI        SOUOWACTI AMOtMIMQIMCV MIS'ONSE
MEMORANDUM

SUBJECT:  Interim Guidance  on  Notice  Letters,  Negotiations,  and
          Information
  Cs^
J. Ifinst
FROM:     J. Ifinstoir Porter
          Assistant  Administrator

TO:       Regional Administrators


I.  INTRODUCTION

     The Superfund Amendments  and  Reauthorization  Act  of  1986
(SARA) .  which  amends the  Comprehensive  Environmental Response,
Compensation,  and Liability  Act  of 1980 (CERCLA).  maintains  the
importance of  a strong  Superfund enforcement  program.1  In
particular. SARA emphasizes  the  importance  of entering into
negotiations and reaching settlements with  potentially
responsible parties  (PRPs) to  allow PRPs to conduct or finance
response actions.  SARA generally  codified  the Agency's Interim
CERCLA Settlement Policy  but also  established some new
authorities and procedures that  were designed to facilitate
settlements.

     A fundamental goal of the CBRCLA enforcement  program is to
facilitate voluntary settlements.   EPA  believes that  such
settlements are most likely  to occur when EPA interacts
frequently with PRPs.   Frequent  interaction is important  because
it provides the opportunity  to share information about a  site  and
may reduce) delays in conducting  response actions caused by the
lack of communication.  Important  mechanisms  for promoting
interaction and facilitating communication  between EPA and PRPs
include issuing notice  letters,  entering into negotiations,  and
exchanging information  with  PRPs.
      1  CERCLA of  1980 as amended by SARA of 1986 is referred to
 in  this guidance  as  CERCLA.

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                                                            9834.10'
     This guidance replace* the October 12. 1984 guidance on
 "Procedures for Issuing Notice Letters" and the October 9, 1985
 guidance on "Timely Initiation of Responsible Party Searches,
 Issuance of Notice Letters, and Release of Information." *
 Although certain procedures and the timing of various activities
 have been modified, this guidance retains many fundamental
 aspects of the October 12, 1984 and October 9, 198S guidances.
 In particular, this guidance re-emphasizes the importance of
 timely issuance of notice letters and the exchange of information
 between EPA and PRPs.   In addition, this guidance incorporates a
 moratorium and "formal" period of negotiation (referred to as a
 negotiation moratorium) into the settlement process.  EPA's
 commitment to carrying out these activities is crucial for
 supporting our fundamental goal of facilitating negotiated
settlements.

XX.   PURPOSE AND SCOPE OF GUIDANCE

     The purpose of this guidance is to assist the Regions in
establishing procedures for the issuance of notice letters to
PRPs,  for the  conduct  of negotiations between EPA and PRPs,  and
 for the exchange of information between EPA and PRPs.

      This guidance addresses the use of both "general" and
 "special" notice letters for removal and remedial actions.
 Special notice letters differ from general notice letters because
 special notices trigger the negotiation moratorium.  The
negotiation moratorium is the period of time where a moratorium
 is imposed on certain  EPA actions and a period of "formal"
 negotiations is established between EPA and PRPs.

     Use of both general and special notice letters are
discretionary.  However, the Regions are expected to issue
general and special notices for the vaa. majority of remedial
actions.  Such notice  letters will be issued for remedial
 investigations/feasibility studies (RX/FSs) and remedial
designs/remedial actions  (RD/RAs).  Although it is generally
appropriate to issue a "removal notice" for all removal ections.
 the Regions) are not expected to invoke the 1122(e) special notice
 procedure* for most removals.

     This guidance also addresses the timing, duration, and
 conclusion of the negotiation moratorium.  Finally, this guidance
 discusses the process of  information exchange between EtA and
 PRPs, including requests  for and releases of site-specific
 information.
      *   These guidances were issued under OSWBR Directive Numbers
 9834.1  and  9834.2, respectively.

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                                                          9834.10
    .   STATUTORY AUTHORITY

                         A.   SETTLEMENTS

      Soctiono  10
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                                                         9834.10
addition, thio ooetion provides for EPA to make ouch information
avniloblo in advance of tho special notice upon roquoot by a PRP
in accordance with procedures provided by EPA.

     Issuance of a special notice triggorc a noratoriun on tho
commencement of certain aetiono by RPA under 0104 or 0106.  Tho
purpooo of tho moratorium io to provide for a period of
negotiation botwoon EPA and PRPo.  Tho ooratorium prohibito GPA
from commencing any rooponoo action under 0104(o), and on RI/PS
under 0104(b), or an action undor 0106 for 60 dayo oftor roeoipt
of tho notice.  If EPA dotorminoo that a "good faith offor" hoc
boon oubmittod by tho PRP within 60 dayo after roeoipt of tho
opocial notice,  EPA ohall not coanonco on action undor 0104(a) or
tateo any action againot any poroon undor 0106 for on additional
60 dayo or commence an RI/PS undor 0104(b) for an additional 30
dayo.

     Undor 8122(0)(2)(a),  EPA may conoonco any additional othor
otudioo or inxootigationo authorised undor 0104(b), including tho
romodial dooign, during tho negotiation period.  Undor
fll22(o)(2)(C) , if an additional PRP io identified during tho
negotiation poriod or after an agreement hoo boon ontorod into,
EPA may bring tho additional party into tho negotiation or nay
ontor into a ooparato agreement with tho PUP.  Undor 0122(o)(S),
EPA io not prohibited froe undertaking a rooponoo or enforcement
action during tho nogotiation poriod when thoro io a oignificant
throat to public health or the onvironnont.

     Section 122(a) providoo that if EPA docidoo not to uoo tho
opocial notice procedures established undor 0122(o), EPA io
required to notify PRPo in writing of thio docioion along with an
explanation why it io inappropriato to uoo ouch procoduroo.
Tho docioion by EPA to uoo or not to uoo  tho  opocial notice
procoduroo io not oubjoct to judicial roviou.

IV.  INFORMATION RKCHAMGR

     Tho onchongo of information between  BPA  and PRPo  io  crucial
for  facilitating  oottlononto.  Information exchange  ohould bo  an
ongoing  pffoeooo of connunication.  BPA uooo  information obtained
from PRPo fco dotornino  potential liability,  to determine  tho  nood
for  roopoooo, and to  support tho ooloction of tho ronody.  PRPo
uoo  infornation obtained  froa  BPA  to organise ancng  thonoolvoo
and  to develop  o  "good faith offor"' to conduct or finance
rooponoo aetiono.
 timo.   Soo tho Conference Report on tho Suporfund Anondnonto and
 Roauthorization Act of 1986, 99 Cong., 2d Sooo. Report 99-962
 pp.  253 (1986).

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                                                           9834.10
                     A.   INFORMATION  REQUESTS
      EPA may  request  information  from PRPo  about various
octivitioo and conditions  undor 8104(o)  of  CBRCLA and under
83007(0) of the Roooureo Concorvation and Recovery Act  (RCRA).
In addition,  EPA may  ioouo administrative oubpoonao undor
2122(o)(3)(b) of CERCLA.   Znforaation eonoonly  roquooted includeo
dotailo concerning wooto operations and  BOOto nancgonont
practicoo, the typo and anount of  oubotancoo contributed by each
PRP,  as well  as the name of other  PRPo that contributed
oubotancoo to the oito.

      Znforaation rocjuooto  should bo ioouod  oo early as
practicable and may bo ioouod ao a oopcrato letter during the PRP
search procoos, ao part of  the general notice letter, or through
an adminiotrativo oubpoona.  A detailed  dioeuooion about tho noo
of information roquoot letters and cdniniotrativo oubpoonao
is contained,  in the forthcoming "Guidance on Woo and enforcement
of Inforoation Roquooto and Adminiotrativo  Subpoonoo under CBRCLA
00104(0) and  122(o) ."

     The Rogiono have the  discretion  to  decide whether to ioouo
an information roquoot ao  a ooparato  letter during the PRP ooarch
or ao a coaponont of a general notice.latter.   Zoouing a separate
information roquoot letter  in advance of tho gonoral notice nay
bo advantagoouo in oituationo whore infenaction froo PRPo is
noodod to determine whether it io  appropriate to ioouo a notice
lottor to ouch partioo.     :

      Information roquooto  ohould bo developed in accordance with
tho forthcoming guidance on information  roquootc and
adminiotrativo oubpoonao ao mentioned above.  An infornation
roquoot ohould aloo indicate that GPA piano to vigorouoly enforce
infornotion roquooto with  tho not? onforconont tools authorised
undor SARA which include ioouing ordoro  undor 0104 (oH9).
Finally, tho  infornation roquoot ohould  indieato that it io the
PRPo  rooponoibility to inform EPA whether information they
provide to BPA io confidential and oubjoet  to protection under
010a(o) e£ CCnCLA.

                      B.  ZNPORttATIOM  &KLKA8R

      Zt io ioportant  to gather and roloooo  oita-opocifie
inforaation to PRPo ao ooon ao roaoonobly practicable„  Gathering
and roloaoing ouch infornation early  in  tho procooo will not  only
expedite rooponoo and onforeonont  activitioo but will help PR?o
organize and  negotiate aoong  thoaoolvoo  ao  woll.

      Ao indicated, 9122(oMl) providoo for  tho  release  of certain
inforaation to PRPo to tho extent  ouch infornation  io available.
Such  information includes  tho naaoo and  addrooooo of  other PRPs,
tho volume and nature of oubotancoo contributed by  ooch PRP.  end

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                                                           9834.10
 o  ranking  by  volume  of  tho  oubntoncoo  ot  tho  facility.  Thio
 information io  to  bo provided  to  PRPo  in  advance  of  tho opocial
 notice  in  accordance with procedures dovolopod  by CPA.

      Congrooo recognized tho limitationo  to CPA'o ability  to oafco
 certain information  available  to  PRPo,  ocpocially oarly in tho
 rooponso procooo.  Therefore,  thio  infornation  eon bo roloaood
 only  to tho extent ouch interaction io  ovoiloblo.  If tho  Rogiono
 hovo  information on  volume, tho Rogiono ohould  dovolop volucotric
 rankings and  ohould  make ouch  information available  to PRPo ao
 ooon  ao practicable.  However, duo  to thoir proliainary and
 sufiueary nature, EPA  trill not expend roooureoo to  onplain or
 defend  any liot or ranking.  Lioto  or ranhinga  roloaood to PRPo
 and othoro ohould alwayo contain  appropriate dioclainoro.

     Tho Rogiono aro oncouragod to  roloaoo infornation to  PRPo ao
 ooon ao  roaoonably poooiblo.   Tho Rogiono nay roopond diroetly to
 individual PRP roquooto for interaction, nay uoo  tho notieo
 lottoro  ao vdhicloo to roloaoo ouch infornation to PRPo, or Day
 ootablioh altornativo mechanician  in oooo oituotiono  ao dioeuoood
 below.  Tho Rogiono aro otrongly  oncouragod to  uoo tho notieo
 lottoro  to roloaoo oito-opocific  information.   In particular, uoo
 of tho general notieo may provide a convenient  opportunity to
 roloaoo  information in advaneo of tho opocial notieo purouant to
 tho otatutory provioion that EPA roloaoo oueh infornation  in
 advance  of tho opoeial notieo  in aecordaneo with  procoduroo
 dovolopod by EPA.

     Although it io generally proforablo to roloaoo  information
 to individual PRPo through notieo lottoro, altornativo ooehaniomo
 may bo uood in unuoual circuaotancoo.  For oaacplo,  in inotaneoo
 whore thoro aro many PRPo and/or where thoro io a  oubotantial
 amount of information to bo roloaood, tho Rogiono  007 eonoidor
making tho infornation available  througL a control nochanion
 (e.g.  through a PRP otooring coonittoo if ono hao  boon fiornod and
 if tho committee hao agrood to bo a cloaringhouoo  for
diotributing infornation to othor PRPo).  An altornativo would bo
 to indicate in tho notice lottor  that tho Region  hao oito-
 opoeific inlornation that trill bo cade  available  to  tho PRPo in a
 manner  opocifiod in tho lottor.

 v.  Norxcnuigggma AMP MRCOTIATIOM  MORATORIUM PQR RI/PS ACT) RP/RA

     Thio guidance croatoo a oyotonatic proeooo for  ioouing throe
 ooparato notice lottoro for ronodial actiono.   Tho throe notice
 lottoro aro 1) tho general notieo,  2) tho RX/PS opocial notice,
 and 3)  tho RO/RA opocial notice.  Gvon  though tho RX/P8 and RD/RA
 opoeial notieo lottoro  aro ooparato lottoro, they aro dioeuoood
 in tho  oano ooetion  bolow oinco tho content of  thooo lottoro io
 baoieally  tho oaoo.   In inotaneoa whoro tho content  of tho RX/PS
 and RO/RA  opocial  noticoo differ, ooparato ooctiono  aro
 prooontod.

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                                                        9834.10
     Also,  this  guidance is written with the assumption that each
notice  letter  will be  issued in sequence.  Consequently, the
guidance  has been structured so that certain inforaation provided
or requested in  one  letter is not repeated in a subsequent
letter.   The content of actual letters may, however, need to be
modified  in situations where this process is not followed.

     For  example, there may be a situation where site activities
are already underway and where the Region is ready to issue the
RZ/FS special  notice but has not issued a general notice.   Zn
this instance, it would not be necessary to wait to send the
special notice until after a general notice is issued.  However,
it may be appropriate  to include certain aspects of the general
notice into the  special notice.

                  A.   PURPOSE OF NQTICK LBTT1RS

     The purpose of the general notica is to inform PRPs of their
potential liability for future response coats, to begin or
continue  the process of information exchange, and to initiate the
process of  "informal"  negotiations.  Zn addition, the general
notice informs PRPs about the possible use of the 1122(e)  special
notice procedures and  the subsequent moratorium and "formal"
negotiation period.

     The purpose of the special notice is similar to the general
notice, except that the special notice is also used to invoke the
statutory moratorium on certain BPA actions and to initiate the
process of  "formal" negotiations.  Although the general notice
does not  trigger a moratorium on any IPA action and does not
invoke a  "formal" period of negotiation, the general notice is
expected  to initiate a dialogue between BPA and PRPs.  Issuance
of a general notice should be viewed as a mechanism for
initiating  negotiations whereas issuance of a special notice
should be viewed as a  mechanism for concluding negotiations.

     The  term  "informal" negotiations does net mean that such
negotiations) are not serious efforts to reach a settlement.
Rather "informal" negotiations refers to any negotiations that
are not conducted as part of the negotiation moratorium triggered
by issuance of a special notice under 1122(a).  The terms
"informal"  and "formal" negotiations are used to draw a
distinction between negotiations which  are and are not covered  by
the 1122(e) moratorium.

                     B.  CBNBRAL NOTICE  LITTER

     Agency notification procedures should provide  PRPs with
sufficient  time to  organize and develop a reasonable  offer  to
conduct or  finance  the response action.  Toward  this  end, the

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                                                       9834 1C
                                 8
         should  contact  PRPs prior to issuing a 1122(•) special
 notice  by  issuing  a general notice letter.

                1.  Whether to Issue General Notice

     A  general  notice letter should be issued at the vast
 majority of sites  that  are proposed for or listed on the National
 Priorities List  (NPL) where negotiations for the RZ/FS and RO/RA
 have not yet been  initiated.  Circumstances where it may not be
 appropriate to  issue the general notice include sites
 where a notice pursuant to previous guidance was issued prior to
 the reauthorization of CIRCLA or where the Region is ready to
 issue a special notice at the site.   These exceptions are
 important for minimizing any possible disruption to ongoing
 activities.

                   2.  Timing of General Notice

      The general notice letter should be sent to PRPs as early
 in the process as possible, preferably once the site has been
 proposed for inclusion on the NPL.  Barly receipt of the general
 notice will ensure that PRPs have adequate knowledge of their
potential liability as well as a realistic opportunity to
 participate in settlement negotiations.  When a separate
 information request letter has been sent to PRPs prior to the
general notice,  the information request should be sent as early
 as possible to avoid any delay in issuing the general notice.

                3.   Recipients of General Notice

     General notice letters should be sent to all parties where
 there is sufficient evidence to make a preliminary determination
 of potential liability under 1107 of CKRCLA.  Zf there is doubt
 about whether available information supports issuance of the
general notice,  separate information request letters may be sent
 to such parties prior to issuing the notice.  Zf a Federal agency
has been identified as a generator at a facility not
owned/operated by the Federal agency,  such agency should be
routinely notified like other PRPs.

     Zf additional PRPs are identified after the general notice
but before) the RZ/FS special notice is issued, the Regions should
provide a general notice to those additional PRPs.  Zf additional
 PRPs are identified after general and special notices are issued.
 the additional PRPs need not receive a general notice before
 receiving the appropriate special notice.  However, relevant
 aspects of the general notice should be incorporated into the
 special notice.

     Copies of the general notice should be provided to the
 Regional administrative record coordinator, the appropriate State

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                                                      9834.1 C
roprooontotivo, the Stoto or Federal  truotoo if a truetoo for
natural roooureoo hoc boon dooignatod, and to EPA hoadquartoro at
tho oamo time noticoo are oone to PRPo.  Tho eopioo of notieoo to
hoadquartoro ohould bo oont to tho Information Monagooont Section
within tho Program Management and Support Offieo of tho Offieo of
Haute Progromo Enforcement (OHPE).

     Providing eopioo to tho adniniotrativo record coordinator io
important for onouring that tho notice io placed in tho
adminiotrativo record.4   Providing eopioo to too Stoto
roprooontativo and tho State or Federal truotoo io important for
onouring that Statoo ore appropriately infornod about poooiblo
future negotiations.*   Providing eopioo to OUPB io oaoontial for
permitting entry into tho Super fund Onforconont Tracking Syoton
(SETS).   Bntry into ooto will facilitate our offorto to track
oito activitioo and to roopond to Congroooionol and other
inquirioa.   Direct Regional input of  data into SOYS on notice
letter rocipionto io planned for PY 1908.

     It io not nocoooary to provide eopioo of each general notice
to tho adminiotrativo record coordinator, Stoto roprooontativo,
Stato or.Federal truotoo, or hoadquartoro in inotoneoo where
identical noticoo are provided to nultiplo PQPa.  Whore there are
multiple PRPo at a oito, a copy of one general notice with a liot
of othor partioo who have received tho letter would ouffico.

                 4.  Contontn of Conornl Kotfl,co

     Tho general notice letter ohould contain tho following
compononto:  a) a notification of potential liability for
rooponoo cooto, b) a diocuooion about future notieoo and tho
poooiblo future uoo of opoeial notice procoduroo, c) a general
diocuooion about oito rooponoo activitioo, d) a roojuoot for
interaction about tho oito (if appropriate), o) tho roloooo of
certain oito-opocific information  (ohoro;available), f) a
diocuooion about tho oorito of forcing o PUP otooring coaoittoo,
g) a notice regarding tho dovolopoont of an adniniotrativo
record, and h) a deadline for rooponoo to tho letter and
infornatioa on tho DPA roprooontativo to contact.
      4   A diocuooion about placing notice lottore in tho
 adniniotrativo record io covered in tho forthcoming "Guidance on
 tho Adainiotrativo Record for Selecting a Qooponoo Action Under
 CBRCLA"  and in tho proanblo to tho forthcoming rovioiona to tho
 National Contingency Plan.

      •   Stato participation in nogotiationo io covered in the
 forthcoming "Interim Guidance on BPA-Stato Rolationo in CBRCLA
 Enforcement."

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                                                     9834.10

                               10

     n.  PotontiqJi ^ability;,  Tho lot tor ohould infora portico
that thoy oro potentially liable for rooponoo cooto under 9107 of
CERCLA, including the coots of conducting the RI/PS and RD/RA.
Tho letter should define the scope of potential liability and
ohould briefly explain why the partioo have boon identified GO
PRPo.                    '.'.*«-•'.

     b.  Future notice under S122(a) or ni22(o);  Tho lottor
should indicate that EPA will notify tho party ot on appropriate
point in tho future.  Tho lottor ohould opocify that thio notico
will either bo a 8122(a) notico or a 0122(o) opocial notico and
should explain what thooo noticoa are.

     Tho lottor ohould indicate that tho 0122 (a) notico io a
notice which informo portico that EPA will net uco tho 0122(o)
opociol notice proeoduroo.   Tho lottor ohould indicate that tho
notico will provide an explanation for tho docioion not to uoo
tho opocial notice proeoduroo.

     The lottor ohould aloo indicate that a 0122 (o) opocial
notico will invoke tho negotiation ooratoriuo.  Tho lottor ohould
make clear that ioouanco of a 0122(o) opocial notico lottor io
discretionary and Bay bo uood if EPA dotorninoo that uoo o£ ouch
proeoduroo would facilitate an agrooaont and expedite ronodial
action.  Tho letter ohould aloo  explain tho purpooo of tho
special notice and tho oubooquont negotiation noratoriua.
Informing PRPo about tho opecial notico proeoduroo and tho
negotiation moratorium will alert PRPo to poaoiblo future
negotiations and incroaoo their awaronooo of their opportunities
for participation in ouch nogotiationo.

     c.  Si to roimonno nctivition:  Tho lottor ohould generally
diocuoo tho activitioo EPA piano to undertake at tho oito.  Where
appropriate, such aetivitioo ohould include oehodulod otart or
completion datoo for tho RX/PS or RD/RA.  Inotancoo whore it nay
not bo appropriate to provide otart or cooplotion datoo include
oituationo whore tho gonoral notico io ioouod very early in tho
proeooo and ohoro opocific datoo havo not yot boon oot, or nhoro
it io oxpoctod that target datoo arc lifcoly to  change
oignif icaafcly.
      d.   Xfrgejcmtleji^iroqueo t :   Tho lottor ohould roquoot
information OB oubotancoo  oont to or prooont at tho  oito and  the
naiaoo of  othor PRPo purouant to 0104 (o)  of CBRCLA and/or 03007 (a)
of RCRA if  a ooparato information roquoot hoc not already boon
ioouod.   Tho content of tho information roquoot ohould bo
conoiotont  with tho forthconing "Guidance OB Uoo and Gnforconont
of Information Roquooto and Administrative Subpoonoo Under C8RCLA
S104(o) and 8122(o) .N

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                                                      9834JC
                                ii
      •.  Information please:  At • minimum,  the letter should
 release the names and addresses of other PRPs who have received
 the general notice letter.  In addition, to the extent such
 information is available, the letter should include  the volume
 and nature of substances contributed by each PUP and a ranJcing by
 volume of  the substances at the facility if such information  has
 not been previously released.

      f.  PUP steering committee:   The letter should  request that
 the PRPs identify a member of their organisation who will
 represent  their interests.   In addition, the letter  should
 recommend  that PRPs form a steering committee to represent the
 group's  interests in possible future negotiations.   The letter
 should  indicate that  establishing  a steering  committee is
 important  for  facilitating negotiations with  SPA.

     g.  Administrative  record;  The letter should be used as  a
 vehicle  for  Informing PRPs  of  the  availability of ea admin-
 istrative record  that  will  contain documents  which form the basis
 for the Agency's  decision on  the selection  of remedy.  The letter
 should indicate that  the  record will be open  to the public for
 inspection and  comment.   The  letter should  also provide
 information regarding  the opening  of the record and where it will
be located.

     h.  PRP response  and EPA  contact:   The letter should
encourage PRPs to notify  EPA by a  specified date of  their
 intereat to participate in  future  negotiations.  The  letter
 should indicate that PRPs may  respond as a  group through a
 steering committee if one has  been formed.  The letter should
 also provide a cut off date for voluntary compliance with
 information requests  (if  a  request for  information is  contained
 in the general notice) .   An appropriate  time  frame for the PRP
 response to an information  request is generally thirty days from
receipt of  the letter.  Finally, the  letter should provide the
name, phone number, and address of  the  IPA  representative to
contact.
           C.  KZyri *no^ RP/RA SPECIAL MQTIC1 L

     Prior to IPA's conduct of the RZ/PS and RD/RA, the Regions
should either issue the special notice to PRPs or provide PRPs
with an explanation why it was not appropriate to use the special
notice procedures.  Issuance of the special notice triggers a
moratorium on IPA's conduct of the RZ/PS and remedial action.
While the statute does not impose a moratorium on IPA's conduct
of the remedial design, the Agency will not generally conduct
such activities during the moratorium.  The purpose of the
moratorium is to provide for a formal period of negotiation
between EPA and PRPs where the PRPs will be encouraged to conduct
or finance response activities.

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                                                     9834.10

                               12

     Th« negotiation moratorium may last a total of 90 days for
the Ri/FS and 120 days for the RD/RA if EPA receives • "good
faith offer" from PRPs within th« first 60 days of the
moratorium.  The negotiation moratorium would conclude after 60
days if the PRP» do not provide EPA with a "good faith offer."

     The initial 60 day moratorium begins on the date the PRPs
receive the special notice via certified Bail.  Zn instances
where there is more than one PUP and PRPs are likely to receive
the special notice on different days,  the date the Moratorium
begins should be seven days from the date the letters are mailed
to the PRPs.  In either case,  the special notice must make clear
when the negotiation moratorium begins and ends.

       1-   Whether to Issue RZ/PS and RP/RA Special Notice

     EPA has the discretion to use the special notice procedures
when EPA determines that a period of negotiation would facilitate
an agreement with PRPs and would expedite remedial actions.
The Agency believes entering into such negotiations would
generally facilitate settlements and plans to utilise the RZ/PS
and RO/RA special notice procedures in the vast majority of
cases.

     There are.  however,  some circumstances where it would
generally not be appropriate to use such procedures.  Such
circumstances include 1)  where past dealings with the PRPs
strongly indicate they are unlikely to negotiate a settlement,
2) where EPA believes the PRPs have not been negotiating in good
faith,  3)  where no PRPs have been identified at the conclusion of
the PRP search, 4) where PRPs lack the resources to conduct
response activities. 5) where there are ongoing negotiations, or
6) where notice letters were already sent prior to the
reeuthorization of CERCLA and onging negotiations would not
benefit by issuance of a special notice.

     Special notices may be issued for operable units of remedial
actions.  The test for determining whether to issue a spociel
notice for an operable unit is generally the same as for full-
      remedial actions.  The general expectation is that separi
scale remedial actions.   The general expectation is that separate
special notices will be  issued for each separate operable unit as
long as issuing the notice would facilitate an agreement and
would expedite the remedial action.  However, special notices may
also be issued for only  major operable units or may cover a
series of operable units if appropriate under the circumstances
at the site.

     Por example, if several operable units will be conducted at
a site as relatively separate and distinct response actions, it
may be appropriate to consider using separate special notices
which would trigger separate negotiation moratoriums. Zf a series
of operable units will make up a remedial action it may be

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                                                     98341 C
                                13
appropriate  to  issue  tht special notice  to cover only the major
operable  unit(s)  or to  cover several operable units.

        2.   Motifvino PRPs When Not Appropriate to I««u«  ~
                  RI/FS  and RD/RA Special Notice

     In instances where EPA decides it is inappropriate to issue
the special  notice, S122(a) provides for BFA to notify PRFs in
writing of that decision.  The notice »ust indicate the; reasons
why the Region determined that issuing the special notice and
entering  into MfornalN negotiations was not appropriate.
The notice should be  provided to all PRFs that have been
identified to date as well es to the Regional administrative
record coordinator for placement in the record.  Such notices
should be provided as soon as practicable.  Zn instances where
the RZ/FS or RO/RA have not yet been initiated, the notice should
be eent prior to  the  initiation of such activities if possible.

     Zn addition, the S122(a) notice should be used as a vehicle
for informing FRPs that the Agency will establish or has
established  an administrative record containing technical
documents supporting  the Agency's decision on the selection of
remedy.   The notice should indicate that the record is open for
public inspection and comment and should specify where the record
will be or has been located.

          3.  DQJ Role  in RZ/FS and RD/RA Negotiation*

     The  Regions  should notify the Chief of the Environmental
Enforcement  Section in  the Department of Justice (DOJ) prior to
issuing special notice letters where settlement by a consent
decree is contemplated.  A copy of this memorandum should also be
provided  to  the Office of Waste Programs Enforcement and the
Office of Enforcement and Compliance Monitoring in Headquarters.

     The  memorandum to DOJ should indicate when the Region
intends to issue  the  special notice.  Because most RZ/FS
negotiations) involve  consent orders, notice to DOJ on the RZ/FS
is not ordinarily necessary.  However, where e site is in
litigation or where settlement by consent decree is expected, DOJ
should be notified at least  30 days prior to issuing the RZ/FS
special notice.   Zn addition, where the  resolution of the matter
by an administrative  order  is expected to involve a compromise of
past or future  response costs and the total response costs
will exceed  3500,000, DOJ  is to be notified.  DOJ'a role will be
to review the compromise of  the claim pursuant to section
122(h)(l) but not to  review the administrative order  for the
RZ/FS.  For  RD/RA negotiations, the notice should be  sent to DOJ
at least  60  days prior  to  issuing the RD/RA special notice.  The
memorandum  should also  identify the EPA  Regional representative
DOJ should  contact.

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                                                     9834JC

                                14

      In oddition,  tho  Regions  should consult  with  the Chief of
 tho Envirooaontal  Enforcement  Section prior to  oonding a copy of
 any droft consent  decree or any,outline  of a  draft conbont decree
 to  PRPO.   Tho Regions  ore encouraged to  include a draft conoont
 decree  with tho  RD/RA  opocial  notice or  ooon  thereafter ao
 diacuoaod below.

               4.  Timing of RI/PS  Special Notieo

      It is  iaportant that PRPo  receive tho RI/PS opocial notice
 letter  ao ooon oo  practicable.   Of  groator inportanco, tho letter
 must  bo aont  oufficiontly in advance of  obiigationo for tho RI/PS
 ao  that nogotiationo do  not delay tho initiation of tho RI/PS by
 tho Fund in tho event  tho nogotiationo do not rooult in an
 agreement providing for  tho PRPo  to conduct or  finance tho RI/PS.
 Timoly receipt of  tho  opocial notice will hovo  a oignificcnt
 effect on tho PRPo ability for  aoaningful participation in fornal
 nogotiationo.

     Tho RI/PS opocial notice lottor should bo  oont to PRPo no
 later than 90 dayo prior  to tho ochodulod dato  for initiating tho
 RI/PS.  .Tho ochodulod  dato  for  initiating tho RI/PS roforo to tho
dato fundo will bo obligated to cooooneo rooponoo activitioo.
A minimum of 90 dayo io  important for onouring  that tho
negotiation aeratoriura dooo not delay initiation of tho RZ/PS in
 tho ovont nogotiationo do  not rooult in  a oottlonont.  Tho time
 for service by mail should bo taken into account.          .

               S-  Timing  of RD/RA  Special Notieo

     Tho timing of tho RD/RA opocial notico lottor will have a
 significant impact on  both tho  ouceooo of nogotiationo and on
EPA'o ability to novo  forward with  implementing a ronody without
dwlay.  Ao indicotod earlier, "fornal" noc*tiationo purpuant to
opocial notico aro not tho oolo vehicle  for reaching oottlononto.
"Infernal" nogotiationo auat occur  throughout the procooo and in
advance of tho opocial notico.  To  aoouro that  "fornal"
nogotiationo aro productive, BPA  nuot initiate  PRP ooarch and
information exchange aetivitioo ao  well ao "infernal"
negotiation oo oarly  ao  poooiblo.                            .
                                                    i  •   '   .
     Tho pffinory purpooo  of tho opocial notico  procoduroo io to
 facilitate oottlononto through  negotiation.  &  prioary concern in
 dotoroining nhon to ioouo  an RO/RA  opocial notico io whether
 thoro io a likelihood  that aoaningful nogotiationo con be
 conducted at a given otago in tho procooo.  Another concern io
 that, to tho  extent practicable,  the nogotiationo ouot bo
 ochodulod to nininixo  any delay in  tho ronodial dopign and
 remedial action.   A final  concern io that nogotiationo bo carried
 out in a way  that  dooo not undermine or  havo  tho appearance of
 undermining tho public participation procooo.

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                                                     9834.10
                                15

      This  guidance  establish**  an  approach which  identifies whan
 the Regions «ust  generally  issue the RD/RA special notice letter.
 The Regions way,  however, adopt an alternative  approach under
 appropriate circumstances.  Appendix A contains illustrations of
 the three  approaches discussed below. •

      a.  General  Approach;  Issue  special notice when release
 	                                           The Regions
 generally  must issue the RD/RA special notice when the draft
 feasibility study (PS) and  proposed plan T are released to the
 public for comment.  As shown in Appendix A, issuance of the
 special notice with the release of the draft PS end propoeed plan
 triggers the initial 60 day negotiation moratorium.  The initial
 60 day negotiation moratorium begins at the) start of the 30 day
public comment period and,  in conjunction with the first 30 days
of the 60 day extended negotiation moratorium, is concurrent with
 the Record of Decision (ROD) review and approval process.  The
 remaining 30-days of the extended negotiation moratorium is
 concurrent with the initial phases of the remedial design.  IPA's
 ability to sign the ROD is  not affected by the duration of the
negotiation moratorium.  The ROD may be signed at any point after
 the close of the  public comment period and the preparation of the
responsiveness summary for  the public.

      In most cases,  commencing formal negotiations at the same
 tine  that the draft PS and  proposed plan are released will
 properly balance  the considerations stated earlier relating to
 BPA's ability to  conduct meaningful negotiations, to minimise
 delay in implementing the RD/RA, and to maintain  the integrity of
 the public participation process.  Under this approach, formal
 opportunity for PR? involvement would begin at aa early yet
 concrete stage in the process,  tarly participation may be
 especially advantageous in  situations where PRPs  have not been
 previously or substantially involved in RZ/PS activities.  Zn
 addition,  PRPs and  the public would have knowledge of the
 possible range of alternatives  through the draft  PS and proposed
     •  The)  time  periods  depicted in the following discussion  and
illustrated  in Appendix A reflect "best  case*  scenarios where
various response  and enforcement activities are expected  to  be
carried out  without  delay,  for example, the public comment
period lasts 30 days and  does not take into account a possible
extension.

     T  The  proposed plan refers to the public participation
document  developed pursuant to 1117(a).   This  is a non-legal,
non-technical document that describes the alternatives in the  PS,
and specifies and provides a brief analysis of IPA's preferred
alternative.  A more detailed discussion of the proposed plan
will be  contained in the  forthcoming "Guidance on Documenting
Decisions at Superfund Sites"  (referred to as the ROD Guidance).

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                                                      9834.10

                                16

 plan  prior  to  "formal"  negotiations.  This  information io
 important for  anointing tha  PRPs in developing a meaningful "good
 faith offer" for  conducting  or  financing  the RD/RA.

      b.  Alternative Approach;  loouo opoeiol notieo prior to
 roloooo  of  draft  FS ond oropoaed plon for public eoooont.
 Although the Rogiono generally  will iosuo the RD/RA opoeiol
 notice when the draft PS and propoood plon  oro rolooood to tho
 public for  comment, tho Rogiono oro encouraged to ioouo tho
 opoeiol  notice earlier  in  tho procooo if this action would
 facilitate  tho proopocto for reaching a oottlooont.  If a Region
 chooooo  to  follow thio  approach, tho Region ohould include with
 tho opocial notieo a ouranary or fact ohoot  of tho altornativoo
 SPA hoc  ocroonod and tho altornativoo tho Agency io currently
 conoidoring. *

     Ao  shown in Appendix A, tho RO/RA opocial notice noy bo
 ioouod prior to EPA's roloaoo of the draft  FS and propoood plan.
 loouanco of tho opoeial  notieo  triggoro tho initial SO day
 negotiation moratorium.  Tho initial negotiation noratoriun io
 concurrent with tho review and roloaoo of tho draft FS and
 proposed plan.   Tho initial negotiation noratoriuo io eoapletod
 prior to tho initiation of the public consent period.  Tho public
 comment  period io concurrent with tho firot 30 dayo of tho
 extended negotiation moratorium.  Tho rooaining 30 dayo of the
 extended negotiation noratoriun io concurrent with tho ROD review
 and approval procooe.   Tho ROD could bo oignod and tho
 negotiation moratorium  could"-bo concluded at about tho oano time.
 EPA'o ability to oign tho ROD io not affected by tho negotiation
 moratorium.   Tho ROD may bo oignod at any point oftor tho elooo
 of tho public comment period and tho preparation of tho
 rooponsivonooo oumnary  for tho  public.

     Zn nany caooo, providing opoeial no.ice at thic oarly otago
may bo inappropriate boeauoo too ouch uncertainty would exiot .
 about tho remedy to allow  for meaningful nogotiationo.  However,
 under other eircuootaneoo  it nay bo appropriate to iooue tho
     4  Qoloooo of a  ouonary  or  faet  ohoot on  tho altornativoo
that havo boon oeroonod  and tho  altornativoo that are boing
conoidorodl  io inportant  for facilitating nogotiationo at  thio
oarly  otago in tho roeodi&l proeooo.  Thio information oill bo
uooful to PUPo in developing  their  "good faith offer" for
conducting  or financing  a  rooponoo  action and  will  bo ioportant
for informing PRPo about tho  altornativoo tho  Agency io
conoidoring at tho oito.  Tho Rogiono ohould include tho  suoaary
of altornativoo or fact  ohoot in tho  aduiniotrativo record for
each oite.

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                                                      9834.10
                                17
 special  notice early in the procooo,  especially in  oituotiono
 whore  thoro in o relatively small  group of  PRPo,  it io  cloor what
 the  remedy io  likely to bo,  end  tho  remedy  io  not likely  to, bo
 controversial.

     Where circumotoncoo permit  ioouoneo of tho special notice ot
 chip oorly otago,  an odvontago to  this  opprooch io  thct tho ROD
 review and approval  proeoos  and  tho  negotiation noratoriuo could
 bo concluded at  about  tho  canto time.  This  would  help ooouro that
 cleanup  occurs GO  ooon ao  possible whether  through  a negotiated
 settlement  or  Fund"financed  action.   In addition, thoro could bo
 an early opportunity to inform PRPo  of  voriouo  ronodial
 altornativoo undor consideration by  EPA prior to  BPA'o
 identification of  tho  proposed plan.  Early participation nay bo
 advantageous whore PRPo  have not boon previously  or aubotantially
 involved in RZ/PS  activities.

     c.  Alternative Approach;  loouo npoeinl notico nhon tho ROP
 in oionod.  Although tho Rogiono generally  will  ioouo tho RD/RA
 opocial notico letter  when tho draft  PS and propoood plan aro
 released to tho public  for comment,  thoro nay bo  oono linitod
 circumstances whore  it  io appropriate to ioouo  tho  notico later
 in tho procooc (i.e. when tho ROD io  oignod).   Thio approach nay
bo followed, however,  only whore tho  Region can provido adequate
 justification and whore  tho  Region hao  obtained prior approval
 from Headquarters.  Approval must bo  obtained in  writing from tho
Directors of tho Office  of tfooto Programs Enforcement and tho
Office of Emergency  and  Remedial Rooponoe.

     Ao shown in Appendix A, undor thio approach  tho RD/RA
 special notice would not bo  issued until  tho ROD  io oignod.
Thus, the entire 60  to  120 day nogotiation  noratoriun would not
occur until tho remedial deoign phaoo.

     An advantage to thio approach io that  ainco  tho ROD would bo
signed and tho rooody  would  bo ooloctod at  tho  otart of tho RD/RA
nogotiation ooratoriun,  tho  PRPo would  know proeiooly which
 remedy tho "0oo4 faith offer" and tho nogotiationo  ohould focuo
 on.  Zn a&Qition, oinco  tho  nogotiationo  would  bogin after tho
 clooo of tteo public  coaaont  period,  tho PRPo and  EPA nould have
 tho benefit of Knowing tho public coononto.

     Tho najor dioadvantago  to thio  approach io that tho
 nogotiation oorotoriun would not occur  until tho  end of tho
 procooo  (i.e. not  until tho  beginning of tho ronodial dooign
 phaoo).  Zoouing tho special notico  at  thio point would create
 tho greatest potential for  a oubooquont delay  in inplononting
 tho remedy.

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                                                      9834.10
                               18
     Znotoneoo where it may, however, bo opproprioto to icouo tho
special notice lator in tho procooo  (i.o. not until tho ROD io
signed) may bo where more tine io needed to conduct informal
negotiations, whoro tho oito ia particularly complex, or oboro
thoro is on extraordinarily large nuabor of PRPs (o.g. hundrodo
of PRPo) .  Another example nay be where thoro io littlo
expectation that a Pund-finaneod remedial action will occur in
tho noar future at an enforcement-load oito.  If Pund-financod
activitioo are not expected to occur and a later noratoriuo would
facilitate cleanup, it nay bo loon important to initiate and
conclude nogotiotiono early in tho procooo.

        6.  Rocioionto of RI/PS nnd RD/RA Spoelnl Motieo

     Tho RI/PS and RD/RA opocial notice lottoro ohould bo oont to
all parties whoro thoro in oufficiont evidence to nafeo a
preliminary determination of potontiel liability undor 0107 of
CBRCLA.  If thoro io doubt about whether available information
oupporto ioouanco of tho RZ/PS and RD/RA opoeial notieoo,
aoparato information roquoot lottoro nay bo oont to ouch portico
prior to ioouing ouch notice.  If a Podoral agency haa boon
identified ao a generator at a facility not etmod/oporatod by tho
Federal agency, auch agency ohould bo routinely notified like
othor PRPa.

     Section 122(o)(2)(C) authorixoo BPA to bring additional
partioo into nogotiationo or to enter into a separate agreement
with parties when additional*PRPo aro identified during tho
negotiation period or after an agrooaont hao boon entered into.
Tho Rogiono may provide a opocial notice to additional partioo if
they aro identified after ioouaneo of tho HI/PS opoeial notice
letter.  However, ioouanco of a opoeial notice to additional
partioo would not change tho duration of tuo negotiation
moratorium.  Tho opocial notico oay  invite PttPo to participate in
remaining nogotiationo, but would not extend tho pro-onioting
negotiation moratorium.

     Copioo of tho opocial notieoo ohould bo provided to tho
Regional aAoi&iotrativo record coordinator, tho appropriate State
roproaontotivo.  tho State or Podoral truotoo if a truotoo for
natural roocwircoo  hao boon dooignatod,  and to CPA hoadejuartoro at
tho  oono  tino notieoo aro oont to  PRPo.  Tho eopioo  of notieoo to
hoadejuartoro  ohould bo  oont  to tho Infomation Hanagoncmt  Section
within tho Progron Managonont and  Support  Office of  tho  Office of
Uaoto  Prograoo Bnforeooont  (OttPB).

      Providing eopioo  to tho adniniotrativo  roeord  coordinator  io
 important  for onouring  that  tho  notico  to  bo placed in tho
 record.   Providing eopioo  to the State  roprooontativo and tho
 State or  Podoral truotoo io  important for  onouring  that  Statoo
 aro  appropriately informed  about poooiblo future nogotiationo.
 Providing eopioo to  OttPE io oooontial for poraitting entry into

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                                                       9834J
                                19
 the  Superfund Enforcement  Tracking  System (SETS).   Entry  into
 sets will facilitate  our efforts  to track site  activities and  to
 respond  to Congressional and  other  inquiries.   Direct Regional
 input of data into  SETS on notice letter  recipients is  plamned
 for  FY 1988.

      It  is not necessary to provide copies of each  special notice
 to the administrative record  coordinator.  State representative,
 State or Federal  trustee,  or  headquarters in instancee where
 identical  notices are provided to multiple PRPs.  Where there are
 multiple PRPs at  a  site, a copy of  one special  notice with a list
 of other perties who have  received  the letter would suffice.

         7.   Contents of Rl/rs and  RD/RA  Special Metier

      The RZ/FS  and RD/RA special  notice letters should contain
 the  following components:   a) a notification of potential
 liability, h)  a discussion about  the special notice and
 subsequent negotiation moratorium,  c) a discussion about  the
 response activities to be  conducted, d) a  copy  of a statement of
 work  or  workplan and a draft  administrative order on consent for
 the RI/FS, e)  a copy of a  draft consent decree  for  the RD/RA (if
 possible). f)  a discussion about  what constitutes a "good faith
 offer" for the RZ/PS,  g) a discussion about what constitutes a
 Mgood faith offer" for the RD/RA, h) a release  of certain site-
 specific information (where available and  appropriate), i) a
 demand for payment of EPA  costs incurred  to date, j) a
 notification  about the administrative record, and k) a deadline
 for response  to the letter and the  name of the  IPA representative
 to contact.

      a.  Potential liability;  The  letter  should specify  that
 PRPs  are potentially liable for the costs  of conducting the RZ/PS
 or the RD/RA.  A detailed  discussion about potential liability is
not necessary  particularly if the RZ/PS or RD/RA special notice
 references the general notice.

      b.  Special notice and formal  necotiationei  The letter
 should discuss the purpose of the special  notice and the
 subsequent negotiation moratorium.  The level of detail will
 depend upoei whether the PRP has received  the general notice and
 whether  the) general notice provided an adequate discussion.  At
 a minimum, the letter should  make clear that EPA is inviting PRPs
 to participate in "formal" negotiations for PRP conduct of the
 RZ/PS or RD/RA and  that this  letter automatically triggers the
 formal negotiation period. Zn addition,  it is  important  that the
 special  notice indicate the date  the negotiation moratorium will
 conclude in the absence of and in the event of  a "good  faith
 offer."   Finally, the letter  should explain that a  consent order
 or consent decree should be finalized by  the end of the
 moratorium.

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                                                     9834.10
                               20
     e.  Reeponsf actions to bo conducted:  The letter should
 identify the response activities EPA plans to conduct et the site
 and provide scheduled dates for initiating such activities if
 appropriate.                                              -.

     d.  Statement of work or workplan and draft administrative
 order on consent for RZ/PS special noticet  The letter should
 provide a statement of work or workplan and draft administrative
 order  (AO) on consent.  Such information is crucial to PRPs in
 their development of a "good faith offer* to IPX for conducting
 or financing the RI/FS and for ultimately facilitating
 settlements.  The Regions are encouraged to provide that draft AO
 on consent with the notice letter if practicable.  At a minimum,
 the letter should contain a copy of the statement of work with
 the expectation that the draft AO will follow as soon as
practicable.

     e.  Draft consent decree for RD/HA special notices  The
 letter should contain a copy of the draft consent decree if
possible.   It is important that PRPs have the draft consent
decree at  the start of negotiations or soon thereafter since the
decree contains important information which will assist PRPs in
developing their "good faith offer* to EPA.

     f.  "Good faith offer* for RI/FSt  The letter should
 indicate that a "good faith offer" is a written proposal which
demonstrates the PRP's qualifications and willingness to conduct
or finance the RZ/PS.  A "good faith offer* for the RZ/PS should
 include the following:

    o  a statement of the PRPs willingness to conduct or finance
       the RZ/PS which is generally consistent with IPA's
       statement of work or work plan and draft administrative
       order on consent or provides a sufficient basis for
       further negotiations;

    o  a paragraph-by-paragraph response to EPA's statement of
       work or workplan and draft administrative order on
       consent;

    o  a detailed statement of work or workplan identifying how
       the PRPs plan to proceed with the work;

    o  a demonstration of the PRPs technical capability to
       undertake the RZ/PS.  This should include a retirement
       that PRPs identify the fir» they expect will conduct
       the work or that PRPs identify the process they will
       undertake to select a firm;

    o  a demonstration of the PRPs financial capability to
       finance the RI/FS;

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                                                       983 4,1 C

                               21

    o   a statenent of the PRPs willingness to reimburse IPX for
        the  coses  EPA incurs in overseeing the PRP conduct of the
        KZ/PS  as required by I104(a)(l); and

    o   the  name,  address, and phone number of tha party or*
        steering committaa who will raprasant tba PRPs in
        negotiations.

     g.  "Good faith offer" for RD/RAi  Tha lattar should
indieata that a "good faith offar" is a writtan proposal which
damonstratas tha  PRPs qualifications and willingness to conduct
or financa tha RD/RA.  A "good faith offar* for tha RO/RA should
includa tha following:

     o  a statanant of tha PRPs willingness to conduct or financa
        tha RO/RA which is ganarally consistant with IPA's
        proposad plan or which providas a sufficient basis
        for further nagotiations in light of IPA's proposad
        plan;

     o  a paragraph-by-paragraph rasponsa to IPA's draft consant
        decree, including a rasponsa to othar docuaents that aay
        hava baan attachad to tha dacraa such as a technical
        seopa of work for tha proposad plan or access or
        preauthorization agreeaents;

     o  a detailed "stateaent of work" or "workplan" identifying
        how PRPs plan to proceed with the work;

     o  a daaonstration of tha PRPs technical capability to
        undertake the RO/RA.  This should include a requirement
        that PRPs identify the fira they expect will conduct
        the work or that PRPs identify the process they will
        undertake to select a fira;

     o  a deaonstration of tha PRPs capability to finance the
        RO/RA;

     o  a statement of the PRPs willingness to reiaburse IPA for
        past response and oversight costs;

     o  a discussion about the PRPs position on releases froa
        liability and raopeners to liability; and

     o  the naae, address, and phone nuaber of the party or
        steering  coaaittaa who will represent the PRPs in
        negotiations.

     h.  Information releaser  To  the  extent such inforaation  is
available and  to  the extent such inforaation has not been
previously  released, tha  letter should contain inforaation on  tha
names and addresses of other  PRPs,  the voluae and nature of

-------
                                                         9834.10
                                22
 substances contributed  by «ach PRP, and • ranking by volume  of
 the substances  at  the facility.  Not* that the release  of
 information with the RZ/FS and RD/RA special notices is not
 intended  to require the release of information previously
 provided  to PRPs.                                          ~

      i.   Demand for payment:  The letter should include •  demand
 that  PRPs  reimburse EPA for the costs the Agency has incurred in
 conducting response activities at the site pursuant to I107ta).
 The letter should identify the action IPA undertook and the cost
 of  conducting the action.,  The letter should also indicate that
 the Agency anticipates  expending additional funds on activities
 covered by this notice  and other specified future activities.
 Finally, the letter should demand payment of interest for  past
 and future  response costs incurred by IPA pursuant to 1107 (a).
 Notice letters should not be delayed to obtain cost information
 where such  information has not been previously collected.

     j.  Administrative record;   The letter should be used as a
 vehicle for informing PRPs of the availability of an admin-
 istrative record containing documents that form the basis for the
Agency's decision on the selection of remedy.  The letter should
 indicate that the record is open to the public for inspection and
 comment.  The letter should also indicate where the record will
be or has been located.

     k.  PRP response and EPA contact parson;  The letter should
encourage PRPs to notify EPA -of  their interest to participate in
negotiations.  The letter should indicate that PRPs may respond
 as  a group through a steering committee if a committee has been
 formed.  Zn addition,  the letter should provide the name,  phone
number, and address of the EPA representative to contact.

      0.  CONCLUSION OF MEGOTZATZON MORATORIUM AMD
                 MANAGEMENT FOR  RI/FS AJfg
     At the conclusion of the 1122 (e)  negotiation moratorium, the
Regions should have a fully negotiated administrative order on
consent for the RZ/PS and a fully negotiated consent decree for
the RD/RA which has been signed by the PRPs.  A signed document
is necessary to show that an agreement has,  in fact, been
reached. •
     •  Pre-SARA guidance for drafting an administrative order is
provided in "Superfund Administrative Order:  Workshop and
Guidance Materials" (1985) and for drafting a consent decree  in
"Guidance on Drafting Consent Decrees in Hazardous Waste Cases"
(Hay 1, 1985).   These guidances are being revised to include
SARA'S requirements.

-------
                                                       9834.10
                                23
     At  the conclusion of  the  120 day moratorium for tho RD/RA o
determination must bo mode on  whether to continue oottlooont
octiviciofl, whether tho oito ohould bo cloonod up uoing Suporfund
money, or whether to initiate  o 3106 enforcement action.  &
continuation of settlement octivitioo nay include ooofeing an
oxtonoion to tho 120 doy negotiation norotoriun oo diocuoood
below, or sending a consent decree to tho DepartDont of Juotico
for lodging in tho appropriate diotrict court.

     Zn  instances where an agreement hoc boon reached and fully
negotiated but PRPo have not yet obtained oignaturoo, it oay bo
nocoooary to obtain an oxtonoion to the negotiation ooratoriuo.
Sxtonaiono nay aloo bo nocoooary whore tho agroooont hoo not been
fully negotiated but all major ioouoo ore rooolvod and
outotending ioouoo ore well defined and final language ic
imminent.  Bxtonciono to the negotiation aoratoriua can bo
obtained only in certain circuaotancoo oo dioeuoood in tho
February 12,-1987 "interim Guidance: Stroanlining tho CGBCLA
Settlement Decision Proceoo." l°

     Tho timing of opocial notice lottaro will hove a oignificant
affect on our ability to sueeooofully conclude nogotiatioao at
the end of tho moratorium period.  Tho Stroanliaod Sottlonont
Policy provides for two different procooooo for obtaining
oxtonoiono for tho RZ/PS and RD/RA nora^oriuno.  Tho policy
indicates that the Regional Adainiotrator hoo tho diocrotion to
terminate or extend nogotiotieno for tho HZ/PS oftor 90 doyo.
However,  extonoion of negotietiono beyond on additional 30 dayo
ohould bo authorized by tho Regional Adminiotrator only in
limited cases.

     Relating to tho RD/RA moratorium, the Stroonlinod Sottloaont
Policy providoo for cither Regional or Hoodqucrtoro approval of
an oxtonoion under certain circunffitaaeoq.  An cmtonoion to tho
120 doy RD/RA ooratoriun may bo granted for on additional 30 dayo
by tho Regional Adniniotrator when oottlonont to likely and
iDoinont.  An additional oxtonoion beyond tho 30 dayo nay bo
approved only by tho Aooiotant Adoiniotrotor for tho Office of
Solid ttaoto and Ctaorgoney Rooponoo  (OSWtSR) and oaly in raro and
extraordinary eireunotancoo.

     Thic euidonco ro-oophasixoo tho inportanco of nooting the
90 day norotoriun for tho RI/PS and tho 120 day noratoriuc for
tho RD/RA.  To aid that policy, thio guidance idontifioo throe
eireunotancoo where tho Regional Adainiotrator and Aooiotont
Adniniotrotor for OSUOR oay conoidor granting ouch oatonoiono  for
tho RD/RA Dorotorium.
      10   This  guidance  was  issued under OSHBR Directive 09832.9.

-------
                                                       9834,10
                               24
     Pirot, it may bo appropriate for tho Regional Adminiotrotor
or tho Acoiotont Administrator to extend tho 120 day moratorium
for tho RD/RA if EPA ooloctc a remedy in tho ROD which io
significantly different from tho Agoney'o ctotod preference in
tho proposed plan.  Thio could raoen that tho focuo of
nogotiationo could change significantly, requiring additional
time to roach agreement with PRPo.

     Tho oocond example applioo to Fund-load oitoo.  It nay bo
appropriate for tho Regional Adainiotrator or tho Aooiotont
Adoiniotrotor to extend tho 120 day negotiation noratoriun for
tho RO/RA if non-onforcoraont activitioo at tho oito (o.g. on
oxtondod public comment period or an extended ROD review and
approval procooo) cauoo a oignifieant doloy in tho Agoney'o
ability to move forward in implementing a Pund-finaneod ronody.
An extension to tho negotiation moratorium racy bo oopocially
appropriate if thoro io roaoon to boliovo a negotiated oottlonont
io ianinont. -In other words, if tho Fund io not roady to DOVO
forward in implementing tho remedy at tho end of tho 120 day
negotiation moratorium thoro io no roooon to conclude
nogotiationo if thoro io roaoon to boliovo on agreement can bo
reached.

     Tho third example applioo to enforcement-load oitoo.  It nay
bo appropriate for tho Regional Adainiot'rotor or tho Aooiotont
Adminiotrator to extend tho 120 day negotiation moratorium for
tho RO/RA after a 0100 litigation referral hao boon prepared and
referred to tho Deportment of Juotico (DOJ) Cor action.  In fact,
tho preparation and roforral of a eaoo to DOJ nay bo an important
mochaniom for providing tho nocoooary iapotuo for reaching a
voluntary oettlomont.  In many caooo it coy bo appropriate to
ioouo a unilateral adniniotrativo order concurrent with tho
roforral.

VI.  NOTICE LETTERS AND NEGOTIATION HOttATOttlUB FOR RRMOVAL
     ACTIONS

     Tho notice letter proeooo for removal actiono difforo fron
tho notifiieotiea preeooo for rooodiol oetiono.  ho diocuoood
above, tho eotificotion procooo for rooodiol actiono involvoo
ioouanco o£ throe notice lottoro.  Tho notification procooo for
ronovalo nil! involve only one notice letter t?hich noy or nay not
invoke tho 0122(o) opociol notice procoduroo oo diocuoood bolow.

                       A.  MOTHER UWTflRS

                1.  Whothor to  Innuo Ronovnl notice

     Tho Rogiono  ohould  attonpt  to  contact PRPo prior  to
initiating a Pund-financod removal  action  to inforn PRPo of their
potential  liability  whoro  EPA  will  incur  rooponoo  cooto  or

-------
                                                        9834.10
                                25
 to oocuro o private party rooponoo.   Thin guidance  oncourogoo  tho
 Rogiono t>o- oook PRP rooponoo through o written  notice  letter but
 tho Rogiono any contact PRPo verbally (with a written  follow-up
 notice).   Thio  io  conoiotont with tho guidonco  on "Xoouaneo of
 Adniniatrotivo  Ordoro for Innodiato  Ronoval Aetiono"  (2/21/04).

     Tho  Rogionn ohould ioouo notice lottoro to readily
 identifiable PRPo  for roaoval actioao in tho voot nojority of
 coooo.  Tho content of the notice will vary depending  whether tho
 notice  will bo  uood oiaply to notify PRPo of thoir  potential
 liability for an action CPA hao  already tabon or io about to
 tateo, whether tho  notice will bo uood to encourage  a private
 party rooponoo  through "infernal" nogotiationa  (i.o. nogotiationo
 not triggered by tho  C122(o)  opocial notice proeoduroo), or
 whether tho notice  will  bo uood  ao a nochanioo  for  invoking tho
 0122(o) opocial notico procoduroo which provide for "fornal"
 nogotiationo botwoon  SPA and  PRPo.    ,..

     2.   When to Uoo  SBQCiol  Notico  Procoduron  £er  Ronevnln

     Tho  Rogiono ohould conoidor uoing tho  0122(o)  opocial notieo
procoduroo only for thooo ronovalo whoro tho throat io of a
nature that it  io not nocoooary  to initiate on  onoito  rooovol
action for At Idaot oix oontho.   Tho "oia nonth planning time
period" bogiho onco tho oito  evaluation io  conplotod.  Thio noano
 that for  tho vaot majority of ronoval aetiono tho Rogiono will
not bo r 00^1 i rod to  utilize ttio opocial notieo procoduroo.  It io
not appropriate to  utilize opocial noticoo  for  coot ronoval
aetiono bocouoo tho ouboocjuont noroteriun nay interfere with tho
Agency'o  ability to inploaont tho ronody in a tinoly oannor.  In
addition, it nay not  bo  worth expanding tho tino and rooourcoo to
 ontor into fortml nogotiationo whon  a ronoval will  bo  a
relatively ohort tore and  inonponoivo rooponoo  action.

     Tho  Rogiono ohould include  tho  following factoro  in thoir
dotornination of whothor it  io appropriate  to utilise  tho opocial
notico procoduroo  for rooovalo with  a oin conth planning load
 tino:  1) oaothor viable PRPo have boon identified, 2) whether
 tho PRPo  aro osnoctod to roopond favorably  to tho invitation to
 participate in  nogotiationo and  to conduct  or finance  tho ronoval
 action, 3)  cfcothor ioouanco of tho opocial  notico could delay
 inploBontation  o£  tho roooval action, and 4) whothor it nay bo
 noro appropriate to ontor into "infomal" nogotiationo in liou of
 "foraal"  nogotiationo undor 0122(o).

     In dotomining tho PRPo viability, tho Region  ohould inejuiro
 about tho PRPo  financial and technical capability for  conducting
 and/or  financing tho ronoval action  in an offoctivo and  tinoly
 manner.   In dotoroining tho PRPo willingnooo to undertake or
 finance  tho ronoval action,  tho  Region ohould,  at a nininua,
 obtain  a  verbal agreement from tho PRPo prior  to ioouanco of tho
 opocial notico.  In dotornining  whothor tho opecial.notice aay

-------
                                                       9834JC
                               26

delay implementation of the remedy or in determining whether to
•ntcr into "informal" rather than "formal" negotiations, the
Regions should consider whether the 1122(e) negotiation
moratorium would interfere with other activities at the site.

       3.   Notifying PRPs When Not Appropriate to Utilize
             Special Notice Procedures for Removals

     BPA's decision on whether to use the special notice
procedures for any response action is clearly discretionary.
However, 1122(•) requires the Agency to notify PRPs ia writing
when the Agency decides not to utilize such procedures.  The
removal notice provides a convenient vehicle for informing PRPs
of IPA's decision not to utilize the special notice procedures.
The notice should, therefore, inform PRPs of IPA's decision not
to utilize such procedures when this determination has been made
and should provide an explanation for that decision.

              4.  DOJ Role in Removal Negotiations

     The Regions should consult with the Chief of the
Environmental Enforcement Section of DOJ prior to issuing a
special notice letter for removal actions where settlement by
consent decree is contemplated, or where the settlement is
expected to involve a compromise of past or future response costs
and the total response costs will exceed $500,000.  The Regions
should consult with DOJ prior to releasing a draft consent decree
to PRPs.

                   5.  Timing of Removal Notice

     A removal notice that does not invoke the special notice
7 .-ocedures should be provided to PRPs as r Jon as practicable.
For removal notices that invoke the special notice procedures.
the notice should be issued as early as possible but no later
than 120 days before the scheduled date for initiating the
removal action.  The scheduled date for initiating the removal
action is the date removal extramural cleanup contractor funds
will be obligated and onsite cleanup will begin.

     The timing of a notice which invokes the special notice
procedure* is critical because issuance of  the notice triggers
the subsequent «0 to 120 day moratorium on  EPA conduct of the
removal action.   (The moratorium would last only (0  days in
instances where the PRPs do not provide IPX with a  "good faith
offer").  Issuing the special  notice  at least 120 days  before  EPA
will begin the  removal ensures that  the subsequent  120  day
moratorium does not  affect IPA's ability  to implement  the removal
action  in the event  negotiations do  not rssult in an agreement
 for  PRP conduct of  the removal action.

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                                                          98341C
                               27

              6.  ^ociPJonts of Removal Notice

     The removal notice should bo oont to all portico whore thoro
is oufficiont evidence to mcko a preliminary determination.* of
potential liability under 8107 of CERCLA.  If a Podoral agency
hao boon identified an a generator at a facility not
ownod/oporotod by tho Fodoral agency, ouch agency ohould bo
routinely notified like other PRPo.

     Copies of removal noticoo should bo provided to tho Regional
administrative record coordinator, tho appropriate Stato
roprooontativo,  and to hoadquartoro.  Providing copioo to the
administrative record coordinator io inportant for onouring that
tho notice to bo placed in tho record.  Providing copioo to tho
Stato roprooontativo io important for onouring that Statoo are
appropriately informed about poooiblo future nogotiationo.

     Providing copioo to tho Information Management Section
within the Program Management and Support Office of tho Office of
Haste Programo Enforcement for entry into tho Suporfund
enforcement Tracking Syotom (SETS).  Copioo ohould bo oont to
OHPE at tho oamo timo thoy are oont to PUPo.  Providing copioo to
OHPE io oooontial for facilitating our offorto to tracfc oito
activitioo and to roopond to Congroooional and othor inquirioo.

     It io not noeoooary to provide copioo of oach ronoval notico
to tho adminiotrativo record .coordinator, Stato roprooontativo.
State or Federal truotoo, or "hoadquartoro in inotancoo whore
identical notieoo aro provided to multiple PRPo.  Whore thoro are
multiple PRPo at a oito, a copy of ono ronoval notico with a liot
of othor partioo who havo received tho letter would ouffico.

                 7.  Contontn of Ronovnl tlotlco

     Aa indicated, tho content of tho ronoval notico nil! vary
depending upon whether tho purpooo of tho letter io to oioply
inforo PRPo of thoir potential liability or whether tho lottor
will aloe bo uood to provide an opportunity for PUP involvonont
in nogotiottioao oithor through "infernal" or  "fornal"
negotiation.  Tho following highlighto tho conpononto that
ohould bo iacludod in tho throe different typoo of ronoval
noticoo.  Sfco opocific content of oach cooponont of tho ronoval
notico ohould bo  oooontially  tho  oano ao doocribod oarlior  for
RI/PS and RD/&& general  and  opocial  noticoo,  oxcopt whore
othorwioo  opocifiod.          .

      a.  Notico of  potontinl  liability;  Zf  tho purpooo  of  tho
removal  notico  io oiaply to  inform  PRPo of  thoir potential
liability  and to provide notico  that tho Agency hao or io about
to  take  a  rooponoo  action,  tho notico ohould  contain  tho
following  compononto:  a  notico of potential  liability;  a
discussion  about  oito  rooponoo activitioo  that havo boon  or

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                                                          9834.1-0
                                28
 be conduct«d at the aite;  • notice  on  the  availability of  an
 administrative racord;  and a notica pursuant  S122(a)  that  tha
 apacial notiea proeaduraa  will  not  ba  used,

      Tha notification undar 1122 (a)  should infora  PRPs that tha
 Agency will not (or did not)  usa  tha 1122 (a)  special  notiea
 proeaduras  for this particular  rasponaa  action and should  provida
 an axplanation for  that dacision.   Tha lattar should  indicata
 that  it is  tha Agency's policy  not  to  usa  tha spacial notica
 proeaduraa  for ranovals unlass  thara is  a  six aonth planning laad
 tiae  prior  to  tha initiation  of tha rasponsa  action.   Zf thai
 rasponsa  aetion doas  involve  a reaoval with • six  month planning
 laad  tiao but  tha Aganey aada a case-specific determination not
 to  usa  tha  spacial  notica  proeaduras ,  tha  lattar should provida
 an  explanation why  tha  usa of such proeaduras was  datarainad to
 ba  inappropriate for  that  particular rasponsa action.
     b.  Notice of potential liability and offMr^WiitiT *° enter
into "informal" negotiation!:  Zf tha purpose of tha raaoval
notica is to infora PRPs of their potential liability and to
provide PRPs with an opportunity to enter into negotiations with
•PA without invoking the §122 (a) special notice procedures, the
notice should contain the following eoaponants: a notice of
potential liability; a discussion about site response activities
that will be conducted at the site; a copy of the stateaent of
work or workplan and draft adainistrative order on consent; a
notification pursuant to 1122 (a) that the special notice
procadurea will not be used;* a request that PRPs notify EPA
within a specified period of tiae of their interest to
participate in negotiations; a notice on the availability of the
adainistrativa record; and information on the If A representative
to contact.   The 1122 (a) notification should contain the aaae
information discussed in tha proceeding paragraph.

     c .  Notice of potential liability Ifld opportunity to enter
into "formal" negotiations pursuant to 1122 fe) special notica
procedures ;   Zf the purpose of the reaoval notice is to infora
PRPs of their potential liability and to provide PRPs with an
opportunity to enter into negotiations with 1PA using the 1122 (•)
special notice procedures, the notice should contain the
following components: a notice of potential liability; e
discussion about site response activities that will be conducted
at the site; s discussion about the specie! notice procedures and
the negotiation aoretoriua; a copy of the steteaeat of work or
workplan and draft adainistrative order on consent; e discussion
about what constitutes a "good faith offer"; a request that PRPs
notify EPA within a specified period of tiae indicating their
interest to  participate in negotiations; a notice on the
availability of the adainistrative record; and information on the
EPA representative to contact.  The "good faith offer" should
contain essentially the saae coaponents as described above for
the RO/RA.

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                                                         9834.10
                                29


          B.  CONCLUSION OF NEGOTIATION MORATORIUM AMD
                DEADLINE MANAGEMENT FOR R1MOVALS

     AC tha conclusion of the S122(o) negotiation moratorium for
ramoval actions. the Regions should have a fully negotiated
adainistrativa ordar on consent which has been signed by the
PRPs.   (Where appropriate, a signed consent decree should be
provided).  A signad administrative order on consent (or a
consent decree) will show that the negotiation* have been
successfully complated.

     The expectation is that the negotiations will be concluded
at the end of the 120 day moratorium aad .the Regions ere strongly
encouraged to conclude the negotiations within this period of
time.  Zn instancat where the negotiations do not result in an
agreement, the Regions may seek an extension to the 120 dsy
moratorium,  issue an administrative order, or proceed with a
Fund-financed removel.  Note that the Regional Administrator mey
grant an extension to the 120 day moratorium only in limited and
appropriate circumstances.

      C.  ADMINISTRATIVE ORDERS AMD M1COTIATIOM MORATORIUM
                          FOR REMOVALS

     In most instances, use of the special notice procedures for
removal actions will not affect existing policy on issuing
administrative orders for removals since the special notice
proceduras will be issued for only a small portion of removals.
For details on tha Agency's policy on administrative orders refer
to the guidance on "Issuance of Administrative Orders for
Immediate Removals"  (2/21/14).

     It is necessary, however, to modify existing policy in one
respect.  In instances where Regions use the special notice
procedures for a removal action and where issuance of an
administrative order is necessary and appropriate, the Regions
should not issue the order until the end of the negotiation
moratoriums.  This ensures that  the negotiation moratorium will be
used to negotiate voluntary settlements.

VII.

     The  policies  and procedures  established  in  this document
are  intended solely  for  the guidance of  Government personnel.
They are not intended and can not be relied upon to  create any
rights,  substantive  or procedural,  enforceable by any  party in
 litigation with tha  United  States.   The  Agency reserves the right
 to act at variance with  these policies  and procedures  and to
 change them at any time  without public  notice.

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                                                        983410
                              30


VIII.  FOR FURTHER  INFORMATION
     For further information or questions concerning this
guidance,  please contact Kathy MacKinnon in the Office of Haste
Programs Enforcement  at FTS-475-6770.

-------
                            98341C
Appendix A
Timing of RD/RA Special Notice Letter

-------
A. General Approach: Iss le RD / RA Special  Notice When Release
   Draft FS and Proposed Plan
                        Selection of Remedy Process
Conduct
IttFS
Q^O^^
rJWI^Mr
F&PfOOOMd
Ptan
Public
Com-
rntnt
^t^U^^UU
fWVWw
ROD
Conduct /
RO V

                                        Extomted
                     Special Notice / Negotiation Moratorium
1
18
i
19
i
20
i
21
i
22
i
23
i
24
i
25
I
26
i
27
1 :• 1
28 21
                            Timeline  (Months)
                                                                         OO
                                                                         Ovl
                                                                         O

-------
B. Alternative Approach: Issue RD / RA Special  Notice Prior  to
   Release of Draft  FS  and Proposed Plan
                          Selection of Remedy Process
   Conduct
    RKFS
     FSJPnpOMd
               Pubic
               Com-
                       ROD
   Conduct
     RO
                     None* and
                 Extend*
                fc •	>l^At^ —
                NtgoMnn
                Moatoffeim
             Special Hollos / Nogotlatlon  Moratorium
           18
19    20    21    22    23   24    25

              Timeline (Months)
26
27
                                                                                 OO
28
29

-------
C.  Alternative Approach: Issue  RD  / RA Special Notice Once ROD
    Signed
                         Selection of Remedy Process
Conduct
RKFS
M^^^^^^yC^^A^^^^K
F8/Pfopoood
AMI
Put*
Com-
•»A«^
mra
Q^^f^
f*WW
ROD
Conduct /
• l
                                                 Notooand
Extondod
NegotMton
Moratorium
                                        Special Notice / Negotiation Moratorium
           18    19    20    21    22    23   24    25    26    27    28    29
                               Timeline (Months)
                                                                                 oo
                                                                                 o

-------
                          9834.iO
Appendix B

PRP Settlement Process for RI/FS and
RD/RA

-------
PUP Srt^nMrt Process tor RI/FS
                                                           F5

                                                                00
                                                                L*l
                                                                -£*.

-------
"HP SaMtemanl Process tor BP/RA
                                                                    oo

-------
                                                                                        OSWER  *  9834.10
5298
Federal Register  /  Vol. 53. No. 35 / Tuesday.  February 23.  1988 / Noticea
       Country
     Touw.~
                               S2MWG
                               MS 000
                               «« 7.400

                              2.000.000
  Dated: February S. I960.
LtwnoM L |«HMO.
Assistant Administrator for Water.
[FR Doe. M-3776 Filed 2-22-88; 8:45 «m|
(FML-3330-S)

Supwfund Program; Notte* Latter*,
Negotiation* and Information
Exchange

AGENCY: Environmental Protection
Agency.
ACTION; Request for Public Comment

SUMMARY: The Agency i* publishing the
"Interim Guidance on" Notice Letters.  .
Negotiations, and Information   _
Exchange" today to inform the public
about these guidelines and to solicit
public comment. This guidance covers
the use of the section 122(e) special
notice procedures and other related
settlement authorities under section 122
of the Comprehensive Environmental'
Response. Compensation, and Liability
Act of 1980 (CERCLA or Superfund) as.
amended by the Superfund Amendments
and Reauthorization Act of 1986 (SARA)
(hereinafter referred to as "CERCLA").
OATC Comments must be provided on or
before April 25. 1988.
AOOfttss: Comments should be
addressed to Kathy MacKinnon, U.S.
Environmental Protection Agency.
Office of Waste Programs Enforcement.
Guidance and Oversight Branch (WH-
527). 4O1 M Street S\V, Washington. DC
2D4«0.
    FURTHER INFORMATION CONTACT.
Kathy MacKinnon. U.S. Environmental
Protection Agency. Office of Waste
Programs Enforcement. Guidance and
Oversight Branch (WH-527). 401 M
Street. SW.. Washington. DC 20460 (202)
475-erro.
SUWJEMCKTARY INFORMATION: The
guidance emphasizes the importance of
reaching voluntary settlements with-
potentially responsible parties (PRPs)
and uses notice letters, negotiations, and
information exchange as mechanisms
 for facilitating settlements. The guidance
establishes a process for issuing notice
letters to PRPs. including the use of the
 special notice procedures under section
122(e) of CFRC1.A. The gi::d;ince
                    establishes *eparate notification
                    processes for removal and remedial
                    actions.
                       The guidance also discusses the
                    Agency's general policy for exchanging
                    information with PRPs. including a
                    discussion about EPA's release of
                    information under section 122(e)(l) of
                    CERCLA and EPA's authorities to
                    request information from PRPs under
                    sections I04(e) and 122(eH3Hb) of
                    CERCLA and section 3007(a) of the
                    Resource Conservation and Recovery
                    Act (RCRA).
                       Finally, the guidance discusses
                    various aspects of the negotiation
                    process. This includes a discussion
                    about negotiation moratoriums that are
                    triggered by the use of the section I22(e)
                    'special notice procedures. This also   .
                    includes a discussion about concluding
                    negotiations and managing negotiation
                    deadlines.
                       The Agency encourages public
                    comment and will reevaluate this
                    interim guidance in response to such
                    comments.
                       The interim guidance follows.
                       Date: November 25.1987.
                    |.W. McCnw
                    Acting Assistant Administrator for Solid
                     Waste and Emergency Response.
                    INTERIM GUIDANCE ON NOTICE
                    LETTERS. NEGOTIATIONS. AND
                    INFORMATION EXCHANGE
                    •Table of Contents
                    I. Introduction
                    II. Purpose and Scope of Guidance
                    III. Sta tutor)' Authority
                       A. Settlements
                       B. Special Notice Procedures and
                        Information Release
                    IV. Information Exchange
                       A. Information Requests
                       B. Information Release
                    V. Notice Letters and Negotiation
                        Moratorium {or RI/FS and RD/RA
                       A. Purpose of Notice Letters
                       B. Genual Notice Letter
                        1. Whether to Issue  General Notice
                        2. Timing of General Notice
                        3. Recipients of General Notice
                        4. Contents of General Notice
                     C. RI/FS and RD/RA Special Notice Letter!
                        1. Whether to Issue  RI/FS and RD.'RA
                        Special Notice
                        2. Notifying PHPs When'Not Appropriate
                        to Issue Kl/FS and RD/RA Special
                        Notice
                        ' 3. DO I Role in RI/FS and RO/RA
                        Negotiations
                         4. Timing of RI/FS Special Notice
                         5. Timing of RD/RA Special Nonce
                         fi. Recipient! of RI/FS and RD/RA
                        "Special Notice
                         7. Contenti of RI/FS and RD/RA Special
                         Notice
                        D  Conclusion of Negotiator Morator^m
                         «nd Deadline Management for RI/FS and
                         RD/RA •
VL Notio* Letter* and Negotiation
    Moratorium for Removal Actions
  A, Notice Letters
   1. Whether to Usue Notice for Removals
   2. When to Use Special Notice
   Procedure* for Removal*
   3. Notifying PRPs When Not Appropriate
   To Utiliie Special Notice Procedure* for
   Removal*
   4. DO) Role in Removal Negotiations
   S. Timing of Notice for Removal*
   6. Recipient* of Notice for Removal*
   7. Content* of Notice for Removal*
  B. Conclusion of Negotiation Moratorium
   and Deadline Management for Removal*
  C Administrative Order* and Negotiation
   Moratorium for Removal*
VIL Disclaimer
VUL For Further Information
Appendices
Appendix A: Timing of RD/RA Special
   Notice Letter Appendix B: PRP
   Settlement process for RI/FS and RD/RA
   Appendix C: Model Notice Letter* (To be
    sent to EPA region* at • later date)
Memorandum
SUBfECT: Interim Guidance on Notice
    Letters. Negotiation*, and  Information
    Exchange
FROM:). Winston Porter. Assistant
    Administrator
TO Regional Administrators

I. Introduction

  The Superfund Amendments and
Reauthorization Act of 1986 (SARA).
which amends the Comprehensive
Environmental Response.
Compensation, and Liability Act of 1980
(CERCLA). maintains the importance of
a strong Superfund enforcement
program,1 In particular. SARA
emphasizes the importance of entering
into negotiations and reaching
settlements with potentially responsible"
parties (PRPs) to allow PRPs to conduct
or finance response actions. SARA
generally codified the Agency's Interim
CERCLA Settlement Policy but also
established some new authorities and
procedures that were designed to
facilitate settlements.
   A fundamental goal  of the CERCLA.
enforcement program is to faciliiate
voluntary settlements. EPA believes that
such settlements are most  likely to occur
when EPA interacts frequently with
PRPs. Frequent interaction is important
because it  provides the opportunity to
share information about a  site and may
 reduce delays in conducting response
 actions caused by the  lack of
 communication. Important mechanisms
 for promoting interaction and facilitating
 communication between EPA and PRPs
   1 CERCLA of :yn » «?r.»nd*d b> SAR.\ o! i"«o
 IB refcrrcc ic .r. IIM« qy.CJncr as CKRC'._V

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                      Federal Register / VoL S3. No.  33 / Tuesday.  February 23.  1968 / Notices	5299
   include issuing notice letters, entering
   into negotiations, and exchanging
   information with PRPs.
    This guidance replaces the October
   .2. 1984 guidance on * Procedures for
   Issuing Notice Letters" and the October
  9. 1965 guidance on 'Timely Initiation of
  Responsible Party Searches. Issuance of
  Notice Letters, and Release of
  Information.'" • Although certain
  procedures and the timing of various
  activities have been modified, this
  guidance retains many fundamental
  aspects of the October 12.1984 and
  October 0.1985 guidances. In particular.
  this guidance re-emphasizes the
  importance of timely issuance of notice
  letters and the exchange of information
  between EPA and PRPs. In addition,  this
  guidance incorporates a moratorium  and
  "formal" period of negotiation (referred
  to as a negotiation moratorium) into the
  settlement process. EPA's commitment
  to carrying out these activities is crucial
  for supporting our fundamental  goal of
  facilitating negotiated settlements.

  II. Purpose and Scope of Guidance
   The purpose of this guidanc: is to
 assist the Regions in establishing
 procedures for the issuance of notice
 letters to PRPs. for the conduct of
 negotiations between EPA and PRPs.
 and for the exchange of information
 between EPA and PRPs.
   This guidance addresses the use of
 both "general" and "special" notice
 letters for removal and remedial actions.
 Special notice letters differ from general
 notice letters because special notices
• trigger the negotiation moratorium. The
 negotiation moratorium is the period of
 time where a moratorium is imposed on
 certain EPA actions and a period of
 "formal" negotiations is established
 between EPA and PRPs.
   Use of both general and special notice
 letter* are discretionary. However, the
 Regions are expected to issue general
 and special notices for the vast majority
 of remedial actions. Such notice letters
 will be issued for remedial
 investigations/feasibility studies (RI/
 FSs) and  remedial designs/remedial
 actions (RD/RAs). Although it u
 generally appropriate to issue a
 "removal notice"  for all removal actions.
 the Regions are not expected  to  invoke
 the section 122(e) special notice
 procedures for most removals.
   This guidance also addresses the
 timing, duration, and conclusion of the
 negotiation moratorium. Finally, this
 guidance discusses the process of
 information exchange beiwcen EPA a.-.d
 PRPs. including requests for and
 releases of site-specific information.
 III. Statutory Authority
 A. Settlements
   Sections 104(a). 122(a). and lZ2(e)(6)
 authorize settlements and establish
 certain conditions for allowing PRPs to
 conduct or finance response actions.
 Section 104(a) authorizes EPA to enter
 into an agreement with PRPs to allow
 PRPs to conduct or finance response
 actions in accordance with section 122 if
 EPA determines that the PRPs will
 conduct the response action properly
 and promptly. Under section 104(a).
 PRPa cannot conduct the RI/FS unless
 EPA determines that the PRP is qualified
 to perform the RI/FS. EPA contracts
 with or arranges for a qualified person
 other than the PRP to assist EPA in
 overseeing and reviewing the RI/FS. and
 the PRP agrees to reimburse the Fund for
 the COSM EPA incurs in  overseeing and
 reviewing the PRFs RI/FS.
  Section 122(3) similarly authorizes
 EPA to enter into agreements with PRPs
 to perform response actions if EPA
 determines the action will be conducted
 properly. Section 122(a) also provides
 for EPA. when practicable and in the
 public interest to facilitate settlements
 with PRPs to expedite effective remedial
 actions and to minimize litigation.
  Section 122(e)(6) provides that no PRP
 may undertake any remedial action at a
 facility where EPA or a  PRP pursuant to
 an administrative order or consent
decree under CERCLA haj initiated an
RI/FS unless  (he remedial action has
been authorized by  EPA.-
B. Special Notice Procedures end
Information Release
  Sections 122(e) and 122(a) contain
provisions relating to the special notice
procedures and the release of
information to PRPs. Section.122(e)
 provides for EPA to utilize the special
notice procedures if EPA determines
 that a period  of negotiation would
 facilitate an agreement with PRPs and
 would expedite remedial actions.
 Section 122(e) also provides for EPA to
 release certain information  to PRPs.
 Such information includes, to the extent
 available, the names and addresses of
 other PRPs. the volume and nature of
 substances contributed by each PRP.
 and a ranking by volume of the
 substances at the facility.1 In addition.
 this section provides for EPA to make
 such information available in advance
 of the special notice upon request by a
 PRP in accordance with procedures
 provided by EPA.
   Issuance of a special notice triggers a
 moratorium on the commencement of
 certain actions by EPA under section
 104 or section 106. The purpose of the
 moratorium is to provide for a period of
 negotiation between EPA and PRPs. The
 moratorium prohibits EPA from
 commencing any response action under
 section 104(a). and an RI/FS under
 section 104(b). or an action under
 section 106 for 60 days after receipt of
 the notice. If EPA determines that a
 "good faith offer" has been submitted by •
 the PRP within 60 days after receipt of
 the special notice. EPA shall not
 commence an action under section
 104(a) or take any  action against any
 person under section 106 for an
 additional 60 days or commence an RI/
 FS under section 104(b) for an additional
 30 days.
   Under section lZ2(e)(2|(a). EPA may
 commence any additional other studies
 or investigations authorized under
 section 104(b). including the remedial
 design, during the negotiation period.
 Under section 122(e)(2)(C). if an
 additional PRP is identified during the
 negotiation period or after an agreement
 has been entered into. EPA may bring
 the additional party into the negotiation
 or may enter into a separate agreement
 with the PRP. Under section 122(e!(5!.
 EPA is not prohibited from ur.densXi.-.j
 a response or enforcement action during
 the necoiia'.'.on  period when there is a
 significant threat to public health or the
 environment.
   Section 122(a) provides that if EPA
 decides not to use the special notice
 procedures established under section
 122(e). EPA is required to notify PRPs in
 writing of this decision along with an
 explanation why it is inappropriate to
 use such procedures. The decision by
 EPA to use or not to use the special
 notice procedures is not subject :o
judicial review.
IV. Information Exchange

  The exchange of information between
 EPA and PRPs is crucial for facilitating
 settlements. Information exchange
 should be  an ongoing process of
 communication. EPA uses inforxation
   1 The»t guid«nce« were t»«we(i wrdf OStt E£
 DiTTC't*« Sum be ri 9fl34 1 jnd 9634 1 reir-f c'.:* »!
          reco*>nited that therr may be
li.Tiitar.ona to the availability of information it e«r:y
phatc* of the rraponae action In particular.
Congreea noted ih*i ii.^ Rt.'FS special none? need
noi be acc;mpanieC by  information on volume anc
nature of wai'e anc ranking if :nn information :i
not avaiub-e a: trtf «'art cf ir.e R! 'FS A ieo.raif
nonce t/td tnlomtiton relcaa« thoijld be p.t*viu.:J
for private p«rti«a who actuall> conduct lha
remedial Action and information on volume, r.ai'jre
and rantir.g of wallet ihould be made • %•<:..» Die
roultneiy m trt:i nrr.e Se* the Conference R^aor* r.n
thf Superfund Amenomenii *i£ Re tuihor:i»tior.
Act oi :9«8 98 Cone. . :o Sen. Reac-t »-4>i; yv. :sj

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                   Fadaral  R&gjotof  /  Vol  53. No.  35 / Tuesday. February 23. Igg8 / Notices
 obtained from PRPs to determine
 potential liability, to determine the need
 for response, and to o up port the
 oelection of the remedy. PRPa uoe
 information obtained from EPA to
 organize among themoelves and to
 develop a "good faith offer" to conduct
 or finance reoponoe octiono.

 A. Information Requests
  EPA may request information from
 PRPo about VQDOUO activities and
 conditions under section lQ4(e) of
 CERCLA and under oection 3Q07(o) of
 the Reoource Conservation and
Recovery Act (RCRA). In addition. EPA
may iooue adminiotrative oubpoenao
under oection 122(e)(3)(b) of CERCLA.
Information commonly requested
includes details concerning waste
operations and waste management
practices, the type and amount of
oubotances contributed by each PRP. as
fell as the  name of other PRPs that
contributed substances to the site.
  Information requests ohoutd be iooued
no early as  practicable and may be
 issued as a separate letter during the
 PRP oearch process, as pan of the
general  notice letter, or through an
administrative subpoena. A detailed
discussion about the use of information
request  letters and administrative
oubpoenas to contained in the
forthcoming "Guidance on Uoe and
Enforcement of Information Requests
and Administrative Subpoenas under
CERCLA "sections 104(e) and 122(e)."
  The Regions have the discretion to
decide whether to issue an information
request  as a separate letter during the
PRP oearch or as a component of a
general  notice letter. Isouing a separate
information request letter in advance of
the general notice may be advantageous
in oituations where information from
PRPo to needed to determine whether it
io appropriate to iooue a notice letter to
ouch portico.
  information roqueots ohould be
developed in accordance with the
forthcoming guidance on information
requests and administrative oubpoenao
 ao mentioned above. An information
 request  should olso indicate that EPA
 plans to vigorously enforce information
 requests with the new enforcement tools
 authorized under SARA which include
 iaauing orders under section !CM(e)(S).
 Finally, the information request should
 indicate that it is the PRPs responsibility
 to inform EPA whether information they
 provide to EPA is confidential and
 oubject to protection under section
 104(e) of CERCLA.

 B. Information Release
   It is important to gather and release
 Bite-8pec:fic information to PRPs as soon
  oo raaoonably practicable. Gathering
  and releasing such information early in
  the proceio will not only expedite
  response and enforcement activities but
  will help PRPa organize and negotiate
  among themselves aa well.
    Ao indicated, oection 122fe)(l)
  providoo for the rcleaoe of certain
  information to PRPs to the extern ouch
  information io available. Such
  information included the Barnes and
  addreooeo of other PRPo. the volume and
  aature of oubotaaceo contributed by
  each PRP. and a ranking by volume of
  tho oubatanceo at the  facility. Thin
  toforaattoa io to be provided to PRPo ia
  advoaco of the opeciol aotica in
  accordance with prccedureo developed
  by EPA.
    Congreoo recognised the UrailatSoao to
  EPA'o ability to make certain
  information available to PRPs.
  especially early in the response process.
  Therefore, this information can be
  released only to the extent ouch
  information is ovailoble. if the Regions
  have information on volume, the
  Regions should develop volumetric
  rankings and should make ouch
  information available to PRPs as coon
  as practicable. However, due to their
  preliminary and summary nature. EPA
 • will not expand resources to explain or
  defend any list or ranking. Uoto or
  rankings relecoed to PRPs aad others
  ohould always contain appropriate
  disclaimers.
    The Regions are encouraged to release
  information to PRPs as soon as
  reasonably possible. The Regions may
  respond directly to individual PRP
  requests for information, may use the
. notice letters ao vehicles to release such
  information to PRPs. or may eotablioh
  alternative mechanisms in oome
  oituationo ao discussed below. The
  Regions are otrongly encouraged to uoe
  the notice letters to release oite-opecific,
  information. In particular, uoe of the    •
  general notice may provide a convenient
  opportunity to release information in
  advance of the opecial notice pursuant
  to the statutory provision  that EPA
  releane such information in advance of
  the opecial notice in accordance with
  procedures developed by  EPA. •
    Although it is generally preferable to
  release information to individual PRPs
  through notice letters, alternative
  mechanisms may be used in unusual
  circumstances. For example, in
  instances where there are many PRPs
  and/or where there is a substantial
  amount of information to  be released.
  the Regions may consider making the
  information available through a central
  mechanism (e.g. through a PRP steering
  committee if one has  been formed and if
  the committee has agreed to be a
claarinQhouoe for distributing
information to other PRPo). An
alternative would be to indicate in the
notice letter that the Region has oite-
opecific information that will be made
available to the PRPs in a manner
apecified in the letter.
V. PtesSca LoWera
BfeateJws to KJ/FS a®^ SBI/RA
  Taio guidance createo a oyoteasatic
pswceso for ioouing three osporate notice
towcro for remedial actioao. Toe three
exotica lottera are (1) the ceaofol B®4see.
(2) tas RI/FS opecial aotice. and (3) the
RD/RA opoaal notice. ETOSS shoiash the
K2/F5 and RD/RA opecial aoticeletterp
ara oeparalo lettera. the are diooacood.in
the oaa'e oection below oince the
Cfflascsjjt of these letters io basically the
oame. in instances where the content of
the Ri/FS and RD/RA opecial notices
differ, separate oections are presented.
  Also, this guidance io written with the
oooumption that each notice letter  will
be iooued in sequence. Goaooquently.
the guidance has been structured so that
certain information provided or
requested in one letter is not repeated in
a subsequent letter. The content of
actual letters may. however, need to be
modified in situations where this
proceoo is aot followed.
  For example, there may be a oitootioin
whore oitc activities era already
underway and where the Region do
ready to issue the RI/FS opecial aotice
but has not issued a general notice, in
this instance, it would not be necessary
to wait to oend the special notice until
after a general notice io iosued.
However, it may be appropriate to
include certain aspects of the general
notice into the special notice.

A. Purpose, of Notice Letters
  The purpose of the genarol saotice So to
Inform PRPa of their potential liability
for future reoponoe coots, to begin  or
continue the proceso of information
exchange, and to initiate the process of
"informal" negotiations. la additiojn. She
general notice informs  PRPs about the
possible use of the section 122(e) opecial
notice procedures and the subsequent
moratorium and "formal" negotiation
period.
  The purpose of the special notice is
oimilar to the general notice, except that
the special notice is also used to invoke
the statutory moratorium on certain EPA
actions and to initiate the process of
"formal" negotiations. Although the
general notice does not trigger o
moratorium on any EPA action and does
not invoke a "formal" period of
negotiation,  the general notice is
expected to initiate a dialogue between

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                     Federal  Register / Vol. 53. No. 35  /  Tuesday. February 23. 1986 / Notices
                                                                          5301
 EPA. and PRPs. Ittuance of • general
 notice ihould be viewed as a
 mechanism for initiating negotiation]
 whereat issuance of a special notice
 ihould be viewed a* a mechanitm for
 concluding negotiations.
   The term "informal" negotiations does
 not mean that such negotiation* are not
 teriout efforts to reach a settlement.
 Rather "informal" negotiation! refers to
 any negotiations that are not conducted
 •i part of the negotiation moratorium
 triggered by isauance of a special notice
 under section 122(a). The term*
 "informal" and "formal" negotiations
 are used to draw a distinction between
 negotiations which are and are not
 covered by the section 122(e)
 moratorium.
 B. Genera/ Notice Letter
  Agency notification procedures should
 provide PRPs  with sufficient tir- to
 organize and develop a reasonable offer
 to conduct or  finance the response
 action. Toward this end. the Regions^
 should contact PRPs prior to issuing a
 section 122|e) special notice by issuing a
 general notice letter.
 1. Whether To Issue General Notice
  A general notice letter should be
 issued at the vast majority of sites that
 ire proposed for or listed on the
 National Priorities List (NPL) where
 negotiations for the RI/FS and RD/RA
 lave not yet been initiated.
 Circumstances where  it may not be
 appropriate to issue the general notice
 include sites where-'a notice pursuant to
 previous guidance was issued prior to
 the reauthorization of CERCLA or where
 the Region is ready to issue a special
 notice at the site. These exceptions are
 important for minimizing any possible
 disruption to ongoing activities. •
 2. Timing of General Notice
 The general notice letter should be
sent to PRPs as early in the process as
possible, preferably once the site has
been proposed for inclusion on the NPL
Early receipt of the general notice will
ensure that PRPs have adequate
 knowledge of  their potential liability as
 well as a realistic opportunity to
 participate in  settlement negotiations.
 When a separate information request
 letter has been sent to PRPs prior to the
 general notice, the information request
 should be sent as early as possible lo
 avoid any delay in issuing the general
 notice.
 3. Recipients of General Notice
  General notice letters should be sent
 to  all parties where there is sufficient
 evidence :o make a prelirr.ir.an-
 deicrmnation of potential liability
 under section 107 of CERCLA. If there is
 doubt about whether available
 information supports issuance of the
 general notice, separate information
 requeit letters may be sent to such.
 parties prior to issuing the notice. If a
 Federal agency has been identified as a
 generator at a facility not owned/
 operated by the Federal agency, such
 agency should be routinely notified like
 other PRPs.
   If additional PRPs are identified after
 the general notice but before the RI/FS
 special notice is issued, the Regions
 should provide a general notice to those
 additional PRPs. If additional PRPs are
 identified after general and special
 notices are issued, the additional PRPs
 need not receive a general notice before
 receiving the appropriate special notice.
 However, relevant aspects of the
 general notice should be incorporated
 into the special notice.
  Copies of the general notice should be
 provided to the Regional administrative
 record coordinator, the appropriate
 State representative, the State or
 Federal trustee if a trustee for natural
 resources has been designated, and to
 EPA headquarters at the same time
 notices are sent to PRPs. The copies of
 notices to headquarters should be sent
 to the Information Management Section
 within the Program Management and
 Support Office of the Office of Waste
 Programs Enforcement (OWPE).
  Providing copies to the administrative
 record coordinator is important for
 ensuring that the notice is placed in the
 administrative record.4 Providing copies
 to the Stale representative and the  State
 or Federal trustee is important for
 ensuring that States are appropriately
 informed about possible future
 negotiations.1 Providing copies to
 OWPE is essential far-permitting entry
 into the Superfund Enforcement
Tracking System (SETS). Entry into sets
 will facilitate our efforts to track site
 activities and to respond to
Congressional and other inquiries.  	
 Direct Regional input of data into SETS
 on notice letter recipients is planned for
 FY 1988.
  It is not necessary to provide copies of
 each general notice to the administrative
 record coordinator. State representative.
 State or Federal trustee, or headquarters
 in instances  where, identical notices are
 provided to multiple PRPs. Where there
  * A diKuinon atwgt placing nonce letters in the
administrattvtf recoro it co*•rt-d in the forthcoming
"Guidance on me Administrative Record for
Selecting • Response Action Under CERC'—V ard
in the preamble to tne forthcoming revisions to trie
National Conlir.genc> Pl^n.
  * State participation in negotiation) is covered in
the lonr.r.omir.c 'Interim Guidance nr, F.PA-S:i!e
Relations m CESCL.*! £r.:'jfi.emcnt "
 are multiple PRPs at a site, a copy of one
 general notice with a list of other parties
 who have received  the letter would
 suffice.

 4. Contents of General Notice

   The general notice letter should
 contain the following components: (a) A
 notification of potential liability for
 response costs, (b) a discussion about
 future notices and the possible future
 use of special notice procedures, (c) a
 general discussion about site response
 activities, (d) a request  for information
•bout the site (if appropriate), (e) the
release of certain site-specific
information (where available), (f) a
discussion about the merits of forming a
PRP steering committee, (g) a notice
regarding the development of an
administrative record, and (h) a
deadline for response to the letter and
information on the EPA representative
to contact
  a. Potential liability: The letter should
inform parties that they are potentially
liable for response costs under section
107 of CERCLA. including the costs of
conducting the RI/FS and RD/RA. The
letter should define  the scope of
potential liability and should briefly
explain why the panics have been
identified as PRPs.
  b. Future notice under section I22!al
and section 122/e/-The letter should
indicate that EPA will notify the party at
an appropriate point in  the future. The
letter should specify that this notice will
either be a section 122(a) notice or a
section \22{e] special notice and should
explain what these notices are.
  The letter should indicate that the
section 122(a) notice is a notice which
informs parties that EPA will not use the
section 122(e) special notice procedures.
The 1  .>er should indicate that the notice
will provide an explanation for the
decision not to use the special notice
procedures.
  The letter should also indicate that a
section 122(e) special notice will invoke
the negotiation moratorium. The letter
should make clear thiil issuance of a
section I22(e] special notice letter is
discretionary and may be used if EPA
determines that use  of such procedures
would facilitate an agreement and
expedite remedial action. The letter
should also explain  the purpose of the
special notice and the subsequent
negotiation moratorium. Informing PRPs
 about the special notice procedures and
 the negotiation moratorium will alert
 PRPs  to possible future  negotiations  and
 increase their awareness of their
 opportunities for participation in such
 negotiations.

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 3302
Federal Registar /  Vol.  53. No.  35 / Tuesday. February  23. 1968  /  Notices
   c. Site response activities: The letter
 ohould genaraUy diDcttoo the activities
 EPA plans to undertake at the site.
 Where appropriate, such activities
 ohould include ocheduled start or
 completion daleo for the RI/FS or RD/
 RA. Instances where it may not be
 appropriate to provide start or
 completion dates include situations
 where the general notice is issued  very
 early in the process and where specific
 doteo have not yet been set. or where it
 to expected that target dates ore likely
 to change significantly.
   d. Information request: The letter
 ohould request information on.
 oubotonces oent to or present at the site
 and the names of other PRPs pursuant to
 oection I04(e) of CERCLA and/or
 oectton 3C07(a) of RCRA if o separate
 information request has not already
 been issued. The content of the
 information request should be consistent
 with the forthcoming "Guidance on Use
 and Enforcement of Information
 Requests and Administrative Subpoenas
 Under CERCLA gections 104(e) and
 122(e)."
  e. Information release: At a minimum.
 the letter should release the names and
 addresses of other PRPs who have
 received the general notice letter. In
 addition, to the extent such information
 to available, the letter should include the
 volume and nature of substances
contributed by each PRP and a ranking
by volume of the substances at the
facility if ouch information has not  been
 previously releaoed.
  f. PRP steering committee: The letter
 should.request that the PRPs identify a.
 member of  their organization who will
 represent their interests. In addition,  the
 letter should recommend that PRPs form
 a steering committee to represent the
 group's interests in possible future
 negotiations. The letter should indicate
 that establishing a steering committee is
 important for facilitating negotiations
 with EPA.
  g. Administrative record: The letter
 obouid be used oo a vehicle for
 informing PRPo of the availability of an
 administrative record that will contain
 documents  which form the basis for the
 Agency's decision on the selection of
 remedy. The letter should indicate  that
 the record will be open to the public  for
 inspection and comment. The letter
 should also provide information
 regarding the opening of the record and
 where it will be located.
  'h. PRP response and EPA contact: The
 letter should encourage PRPs to notify
 EPA by a specified date of their interest
 
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                     Federal Register /  Vol.  53.  No. 35  /  Tuesday. February 23. 1988 /  Notices
                                                                        5303
  administrative record containing
  technical documents supporting the
  Agency's decision on the selection of
  remedy. The notice should indicate that
  the record is open for public inspection
  and comment and should specify where
  the record will be or haj been located.

  3. OOf Role in RI/FS and RD/RA
  Negotiations
   The Regions should notify the Chief of
  the Environmental Enforcement Section
  in the Department of Justice (DOJ) prior
  to issuing special notice letters where
  settlement by a consent decree is
  contemplated. A copy of this
  memorandum should also be provided
  to the Office of WasU Programs
  Enforcement and  the Office of
 Enforcement and  Compliance
 Monitoring in Headquarters.
   The memorandum to DO) should
 indicate when the Region intends to
 issue  the special notice. Because most
 Rl/FS negotiations involve consent
 orders, notice to DO) on the Rl/FS is not
 ordinarily necessary. However, where a
 site is in litigation or where settlement
 by consent decree is expected. DO|
 should be notified at least 30 days prior
 to issuing the RI/FS special notice. In
 addition, where the resolution of the
 matter by an administrative order is
 expected to involve a compromise of
 past or future response costs and the
 total response costs will exceed
 SSOOOOO. OO) is to be notified. DOI's
 role will be to review the compromise of
 the daim pursuant to section 122(h)(l|
 but not to review  the administrative
 orderfor the RI/FS. For RD/RA
 negotiations, the notice should be sent
 to OO| at least 60 days prior to issuing
. the RD/RA special notice. The
 memorandum should also identify' the
 EPA Regional representative DO| should
 contact
   In addition, the  Regions should
 consult with the Chief of the
 Environmental Enforcement Section
 phor to sending a copy of any draft
 content decree or any outline of s draft
 consent decree to PRPs. The Regions are
 encouraged to include a draft consent
 decree with the RD/RA special notice or
 soon thereafter as discussed below.

 4. Tuning of RI/FS Special Notice
   It is important that PRPs receive the
  Rl/FS special notice letter as soon as
  practicable. Of greater importance, the
  letter must be serf sufficiently in
  advance of obligations for the RI/FS so
  that negotiations  do not delay the
  initiation of the RI/FS by the Fund in the
  event the negotiations  do not result in
  an agreement providing for the PRPs to
  conduct or finance the RI/FS. Timely
  receipt of the special nonce will ha\'e a
 significant effect on Ttre PRPs ability for
 meaningful participation in formal
 negotiations.
   The RI/FS special notice letter should
 be sent to PRPs no later than 90 days
 prior to the scheduled date for initiating
 the Rl/FS. The scheduled date for
 initiating the RI/FS refers to the date
 fund* will be obligated to commence
 response activities. A minimum of 90
 days is important for ensuring that the
 negoa'ation'mortorium does not delay
 initiation of the Rl/FS in the event
 negotiations do not result in a
 settlement. The time for service by mail
 should be taken into account

 S. Tuning of RD/RA Special Notice

  The timing of the RD/RA special
 notice letter will have a significant
 impact on both the success  of
 negotiations and on EPA's ability to
move forward with implementing a
rerr >dy without delay. As indicated
earlier, "formal" negotiations pursuant
to special notice are not the sole vehicle
for reaching settlements. "Informal"
negotiations must occur throughout the
process and in advance of the special
notice. To assure that "formal"
negotiations are productive. EPA must
initiate PRP search and information
exchange activities as well  as
"informal" negotiations as early as
possible.
  The primary purpose of the special
notice procedures is to facilitate
settlements through negotiation. A
primary concern in determining when to
issue an RD/RA special notice is
whether there is a likelihood that
meaningful negotiations can be
conducted at  a given stage in the
process. Another concern is that, to the
extent practicable, the negotiations must
be scheduled to minimize any delay in
 the remedial design and remedial action.
 A final concern is that negotiations be
carried out in a way that does not
 undermine or have the appearance of
 undermining the public participation
 process.
  This guidance establishes an
 approach which identifies when the
 Regions must generally issue the RD/RA
 special notice letter. The Regions may.
 however, adopt an alternative approach
 under appropriate circumstances.
 Appendix A contains illustrations of the
 three approaches discussed below.*
  a. General Approach: Issue special
notice when re/ease draft FS and
proposed plan for public comment. The
Regions generally must issue the RD/RA
special notice when the draft feasibility
study (FS) and proposed plan * are
released to the public for comment. As
shown in Appendix A. issuance of the
special notice with the release of the
draft FS and proposed plan triggers the
initial 60 day negotiation mortorium.
The initial 60 day negotiation
moratorium begin* at the start of the 30
day public commenf period and. in
conjunction with the  first 30 days of the
60 day extended negotiation
moratorium, is concurrent with the
Record of Decision (ROD) review and
approval process. The remaining 30 days
of the extended negotiation moratorium
is concurrent with the initial phases of
the  remedial design. EPA's ability to
sign the ROD is not affected by the
duration of the negotiation moratorium.
The ROD may be signed at any point
after the close of the public comment
period and  the preparation of the
responsiveness summary for the public.
  In most cases, commencing formal
negotiations at the same time that the
draft FS and proposed plan are released
will properly balance the considerations
stated earlier relating to EPA's ability to
conduct meaningful negotiations, to
minimize delay in implementing the RD/
RA. and to  maintain the integrity of the
public participation process. Under this
approach, formal opportunity for PRP
involvement would begin at an eariy yet
concrete stage in the  process. Early
participation may be  especially •
advantageous in situations where PRPs
have not been-previously or
substantially involved in Ri/FS
activities. In addition. PRPs and :he
public would have knowledge of the'
possible range of alternative* through
the draft FS and proposed plan prior to
"formal" negotiations. This information
is important for assisting the PRPs in
developing a meaningful "good faith
offer" for conducting or financing the
RD/RA.
  b. Alternative Approach: Issue special
notice prior to release of draft FS end
proposed plan for public comment.
Although the Regions generally will
issue the RD/RA special notice when
  • The lime penod decided in (he following
 discussion and illustrated in Appendix A reflect
 "be»i case" >cr nsn~s *.T.?rr vanous response tnd
 enforcement activities are expected to be earned
 ou: "ufiou! deii> For example, the puDlic commen;
 p«nod Issis )0 aayi'tnd does not late into account
 • DOMicie e»ter.s:on.
  ' The proposed pUn refer* to 'he pud-c
participation document developed pursc^m to
MCtion 'l'T(a). This :> a non-legjl. norviecnnical
document that describes the alter^antes  deianec Crtcu*i>*jn of
the proposed plan wt!l be cortatnec .f- '?'
forthcoming "Guidance on Docurr.eniirs Dfcii'ons
a: Suoerfund S'tes ' (referreo 10 41 tr.f 3OO
Guidance

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                               iotsr / Vol. 53.  No. 35 / Tuesday.  February 23. 1988  / Notices
 the draft FS and propooed plan ore
 released (a the public for comment, the
 Regions arc encouraged to iooue the
 special notice earlier in the proceso if
 tfeio action would facilitate the proopects
 for reaching a settlement. If a Region
 choooes to follow thio approach, the
 Region ohould include «rit& tfeo spatial
 notice a summary or foci oheet of the
 alternatives) EPA has screened and the
 alternatives the Agency ia cufffeatly
 conoidering.0   .
   Ao ohown in Appendix A, the RD/RA
 o^octol notice may be iooued prior to
 EPA'o release of the draft FS and
 propooed plan, loouoraco of the opsaol
 notice triggers the initial £0 day
 raGQOtiation moratorium. The initial
 negotiation moratorium io concurrent
 with the review and release of the  draft
 FS and proposed plan. The initial
 negotiation moratorium ia completed
 prior to the initiation of the public
 comment period. The public comment
 period is concurrent with the first 30
 days of the extended negotiation
 moratorium. The remaining 30 days of
 the emended negotiation moratorium is
 concurrent wish the ROD review and
 approval process. The ROD could be
 oignod and the negotiation moratorium
 could be concluded ot about the same
 tesae. EPA'o ability to oign the ROD is
 siot affected by the negotiation
 moratorium. The ROD may bo signed at
 any point after the close of the public
 conuaent period and the preparation of
 the responsiveness summary for the
 public.
   In many cases, providing special
 notice at this early stage may be
 inappropriate because too much
 uncertainty would exist about the
 remedy to allow for meaningful
 negotiations. However, under other
.circumstances it may be appropriate to
 SOCUQ the special notice early in the
 proeeoo.  especially in situations where
 thero ib a relatively small group of PRPs.
 it io clear what the remedy ia" likely to
 be, and-the remedy io not lihely to  be
 controversial.
   Where circumstances permit isouance
 of the special notice at  this early stage.
 on advantage to this approach is that
 the ROD review and approval process
 and the negotiation moratorium could be
 concluded at about the same time. This
  ° Releoce of a nummary or foci sheet on the
 oliomoiivcfl thoi hove been screened and (he
 oliornotivoo that ore being conoidorod to important
 for facilitating negoiiauoiu 01 thio early auge in the
 remedial procena. Thio information will be uocful to
 P&Pv io davotoping their "good fjith offer" for
 OttndvcunQ or financing o mponoe actioa and twill
 be important for informing PRPs about the
 alterrutlvoo tho Agancy io ctmokdenng ot the me.
 Tbfl Regvono should includa the summary of
 ajlartuitvel or faci one«t in the administrative
 record for eoch on*
  would help oooure that cleanup occurs
  as soon as possible whether through a
  negotiated settlement or Fund-financed
  action. In addition, there would be an
  early opportunity to inform PRPs of
  various remedial alternatives under
  consideration by EPA prior to EPA's
  Identification of the propooed plan.
  Early participation raay be
  advantageous where PRPa have not
  been previously or oubotaaGSally
  involved in Rl/FS activities.
   e. Alternative Approach: Issue special
 notice crhen (ho ROD io signed.
 Although the Regions generally will
 fooBG the RD/RA opecial notice letter
 when the draft FS QRd propooed plan
 ore released to the public for comment.
 there raay be oome limited
 circumstances where it is appropriate to
 issue the notice later in the process (i.e.
 when the ROD is signed). This approach
 may be followed, however, only where
 the Region can provide adequate
 justification and where the Region has
 obtained prior approval from
 Headquarters. Approval must be
 obtained in writing from the Directors of
 the Office of Waste Programs
 Enforcement and the Office of
 Emergency and Remedial Rosponoe.
   As shown in Appendix A. wider this
 approach the RD/RA ojjsoaJ notice
 would not be issued oatil the ROD io
 signed. Thus, the entire £0 to ISO day
 negotiation moratorium would'not occur
 until the remedial design phase.
   An advantage to this approach is that
 since the ROD  would be signed and the
 remedy would be selected at the start of
  the RD/RA negotiation moratorium, the
  PRPa would know precisely which
  remedy the "good faith offer" and the
  negotiations should focus on. In
  addition, since the negotiations would
  begin after the close of the public
  comment period, the PRPs and EPA
  roould hove the benefit of knowing the
*  public comments.
   The major disadvantage to thio
  approach is that the negotiation
  moratorium would not occur until the
  end of the process (i.e. not until the
  beginning of the remedial design phase).
  Sosuing the special notice at this point
  would create the greatest potential for a
  subsequent delay in implementing the
  remedy.
   Instances where it may. however, be
  appropriate to issue the special notice
  later in the process (i.e. not until the
  ROD is signed) may be where more time
  is needed to conduct informal
  negotiations, where the site is
  particularly complex, or where there is
  an extraordinarily large number of PRPs
  (e.g. hundreds of PRPs). Another
  example ma\ be where there is little
expectation that a Fund-financed
remedial action will occur in the near
future at an enforcement-lead site. If
Fund-financed activities are not
expected to occur and a later
moratorium would facilitate cleanup, it
may be less important to initiate and
conclude negotiations early in the
process.
a Recipients of Rl/FS and RD/RA
Special Notice
  The Rl/FS and RD/RA special notice
letters ohould bo oont to oil parties
where there ia otaffiaent evidence to
raake a preliraisiary determination of
potential liability under oection S07 of
CERCLA. If there io doubt about
whether available mfefsnation supports
isouance of the Rl/FS and RD/RA
opecial notices, oeparate information
request letters may be sent to such
parties prior to issuing such notice. If a
Federal agency has been identified as a
generator at a facility not owned/
operated by the Federal agency, such
agency should be routinely notified like
ether PRPs.
  Section i22(eJ{2J(C) authorizes EPA to
bring additional parties into
negotiatiofflo or to enter into a separate
a^aessoat with {parties rahen additional
PRPs QPO Mfatiffiod dastng the
negotiation period o? after-an agreement
boo boon entered onto. The Regioito may
provide a opecial notice to additional
parties if they are identified after
isouance of the Rl/FS special notice
letter. However, issuance of a special
notice to additional parties would not
change the duration of the negotiation
moratorium. The special notice m«y
invite PRPs to participate in remaining
negotiations, but would not extend  the
pre-existing negotiation moratorium.
  Copies of the opecial "notices should
be provided to the Regional
administrative record coordinator, the
appropriate State representative; the  -
State or Federal traotee if a trustee for
natural resources has been designated.
and to EPA headquarters at the same
time notices are sent to PRPs. The
copies of notices to headquarters should
be sent to the Information Management
Section within the Program Management
and Support Office of the Office of
Waste Programs Enforcement (OWPE).
  Providing copies to the administrative
record coordinator is important for
ensuring that the notice to be placed in
the record'. Providing copies  to the  State
representative and the State or Federal
trustee is important for ensunng that
States are appropriately informed about
posoible future negotiations. Providing
copies to OWPE is essential for
permitting entry into the Superfund

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Federal  Register  / Vol. 51 No. 35 /  Tuesday. February 23.  1988 / Notices
                                5305
  Enforcement Tracking System (SETTS).
  Entry into SETTS will facilitate oar efforts
  to track site activities and to respond to
  Congressional and other inquiries.
  Direc: regional input of data into SETTS
  on notice letter recipients is plinned for
  FYiaaa.
    It is not necessary to provide copies of
  each special notice to the administrative
  record coordinator. State representative.
  State or Federal trustee, or headquarters
  in instances where identical notices are
  provided to multiple PRPs. Where there
—are multiple PRPs at a site, a copy of one
  special notice with a list of other parties
  who have received the letter would
  suffice.

  7. Contents of RI/FSand RD/RA Special
  Notices
    The RI/FS and RP 'RA special notice
  letters, should contain the following
  components: (a) A notification of
  potential liability, (b) a diseussron about
  the special notice and subsequent
  negotiation moratorium, (c) a discussion
  about the response activities to be
  conducted, (d) a copy of a statement of
  work or workplan and a draft
  administrative order on consent for the
  RI/FS. (e) a copy of a draft consent
  decree for the RD/RA (if possible}, [f) a
  discussion about what constitutes a
  "good faith offer" for the RI/FS. (g) a
  discussion about what constitutes a
  "good faith offer" for the RD/RA. (h) a
  release of cenain site-specific
  infprmatipn (where available and
  appropriate! (i) a demand for payment
.  of EPA costs incurred to date, (j) a
  notification about the administrative
  record, and (k) a deadline for response
  to the letter and the name of the EPA
  representative to contact.
   a. Potential liability: The letter should
  specify that PRPs are potentially liable
  for the costs of conducting the RI/FS or
  the RD/RA. A detailed discussion about
  potential liability is not necessary
  particularly if the RI/FS or RD/RS
  special notice references the general
  notice.
  - b. Special notice and formal
  negotiations: The letter should discuss
  the purpose of the special notice and the
  subsequent negotiation moratorium. The
  level  of detail will depend upon whether
  the PRP has received the general notice
  and whether the general  notice provided
  an adequate discussion. At a minimum.
  the letter should make clear that EPA is
  inviting PRPs  to participate in "formal"
  negotiations for PRP conduct of :he Rl/
  FSor RD/RA  and that this letter
  automatically triggers the formal
  negotiation period. In addition, it is
  important that the special notice
  indicate the date  the negotiation
  morator.iin will conclude in the absence
                     of «nd in the event of a "good faith
                     offer." Finally, the letter should explain
                     thai a consent order or consent decree
                     should be finalized by the end of the
                     moratorium.
                      c. Response actions to be conducted:
                     The letter should identify the response
                     activities EPA plan* to conduct at the
                     site and provide scheduled dates for
                     initiating soch activities if appropriate.
                      d. Statement of work or workptan and
                    draft administrative order on consent
                    for M/FS special notice: The letter
                    should provide • statement of work or
                    workplan and draft administrative order
                    (AO) on consent Such information is
                    crucial to PRPs in their development of a
                    "good faith offer" to EPA for conducting
                    or financing the RI/FS and for ultimately
                    facilitating settlements. The Regions are
                    encouraged- to provide the draft AO on
                    consent with the notice letter if
                    practicable. At a minimum, the letter
                    should contain, a copy of the statement
                    of work with the expectation that the
                    draft AO will follow as soon as
                    practicable.
                      e. Draft consent decree for RD/RA
                    special notice: The letter should contain
                    a copy of the draft consent decree if
                    possible. It is important that PRPs have
                    the draft consent decree at the jiart of
                    negotiations or soon thereafter since the
                    decree contains important information
                    which will assist PRPs in developing
                    their "good faith offer" to EPA.
                      f. "Good fait* offer'for RI/FS. The
                    letter should indicate  that a "good faith
                    offer" is a written proposal which
                    demonstrates the PRP's qualifications
                    and willingness to conduct or finance
                    the RI/FS. A "good faith offer" for the
                    RI/FS should include  the following:
                      •  A statement of the PRPs willingness
                    to condut or finance the RI/FS which is
                    generally consistent with EPA's
                    statement of work or work plan and
                    draft administrative order on consent or
                    provides'a sufficient basis for further
                    negotiations;
                      •  A paragraph-by-paragraph response
                    to EPA's statement of work or workplan
                    and draft administrative order on
                    consent:
                      •  A detailed statement of work or
                    workplan identifying how the PRPs plan
                    to proceed with the work:
                      * A demonstration of the PRPs
                    technical capability to undertake the Rl/
                    FS.  This should-include a requirement
                    that PRPs identify the firm they expect
                    will conduct the work or that PRPs
                    identify the process they will undertake
                    to select a firm:
                      • A demonstration of the PRPs
                    financial capability to finance the RI/FS:
                      • A statement of the PRPs willingness
                    to reimburse EPA for the costs EPA
                    incurs :r. overseeir.B :rie PRP conduct o(
 the Ri/FS as required by section
 I04{a)(l): and
   • The name, address, and phone
 number of the  parry or steering1
 committee who will represent the PRPs
 in negotiation*.
  g. "Good faith offer' for RD/RA:The
 letter should indicate tfcet a "good faith
 offer" if a written proposal which
 demonstrates the PRP* qualifications
 and willingness to conduct or finance
 the RD/RA. A  "good faith offer" for the
 RD/RA should include the following:
  • A statement of the PRPs wilKngnesa
 to conduct or finance the RD/RA which
 is generally consistent with EPA's  •
 proposed plan  or which provides a
 sufficient basis for further negotiations
 in light of EPA's proposed plan:
  * A paragraph-by-paragraph response
 to EPA's draft consent decree, including
 a response to other documents that may
 have been ai.-ched to the decree such
 as a technical scope of work for the
 proposed plan  or access or
 preauihorization agreements:
  • A detailed "statement of work" or
 "workplan" identifying how PRPs plaa
 to proceed with the work:
  • A demonstration of the PRPs
 technical capability to undertake the
 RD/RA. This should include a
 requirement that PRPs identify the firm
 they expect will conduct the work or
 that PRPs identify the process they will
 undertake to select a firm:
  • A derr.cnstration of the PRPa
 capability to finance the RD/RA:
  • A statement of ihe PRPs willingness
 to reimburse EPA for past response and
 oversight costs:
  • A discussion about the PRTs
 position on releases from liability and
 reopeners to liability, and
  • The name, address: and phone
number of the party or steering
committee who will represent the PRPs
in negotiations.
  b. Information releaser'Io the extent
such information is available and to the
extent such information has not been
previously released the letter should
contain information on the names and
 addresses of other PRPs. the volume and
nature of substances contributed by
each PRP. and  a ranking by volume of
 the substances at the facility. Note that
 the release of information with the Rl/
 FSand RD/RA special notices is not
 intended to require the release of
 information previously provided to
 PRPs.
  I. Detncxd for payment: The letter
 should include a demand that PRPs
 reimburse EPA for the costs the Agency
 has incurred in conducting response
 actmb.es at the site pursuant to section
 107|a) T^e letter should identify ^.f

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                    Federal Register / Vol.  53. No.  35 / Tuesday. February 23. 1888  /  Notices
 action EPA undertook and the coot of
 conducting the action. The letter should
 eloo indicate that the Agency
 anticipates expending additional funds
 on oaivitieo covered by this notice and
 other opecified future activities. Finally.
 tha letter should demand payment of
 interest for pool and future response
 cooto incurred by EPA pursuant to
 section 107(a). Notice letters should not
 be delayed to obtain cost information
 where such information hao not been
 previoualy collected.
   j. Administrative record: The letter
 ohould be used as a vehicle for
 informing PRPs of the availability of an
 administrative record containing
 documents that form the basis for the
 Agency'a-decision on the selection of
 remedy. The letter should indicate that
 the record is open to the public for
 inspection and comment. The letter
 should also indicate where the record
 will be or has been located.
   k. PUP response and EPA contact
person: The letter should encourage
 PRPs to notify EPA of their interest to
 participate in negotiations. The letter
 should indicate that PRPs may respond
 as a group through a steering committee
 if a commitice has been formed. In
addition, the letter should provide the
name, phone number, and address of the
EPA representative to contact.

D. Conclusion of Negotiation
Moratorium and Deadline Management
for RI/FS and RD/RA
   At the conclusion of the section l—[e)
 negotiation moratorium, the Regions
 should have a fully negotiated
 administrative order on consent for the
 RI/FS and a fully negotiated consent
 decree fur the RD/RA which  has been
 signed by the PRPs. A signed document
 is  necessary to show that an  agreement
 has. in fact, been reached.0
   At the conclusion of the 120 day
 moratorium for the RD/RA a
 determination must be mode on whether
 to continue settlement activities.
 whether the site should be cleaned up
 uoing Superfund money. Of whether to
 initiate a section 103 enforcement
 action. A continuation of settlement
 activities may include seeking an
 extension to the 120 day negotiation
 moratorium as discussed below, or
 sending a consent decree to the
 Department of lustice for lotting in the
 appropriate district court.
  0 rVe-SARA guidance fur Urnflmg an
                         '*
»dminioi
Adminia
VUierul
in ~Cu»d
ll.izjroo
           ort?cr 10 pmvujrd in
       ranvc Qnirr Workohop *nO Guidance
         I IOH.SI jnd for grafting o con**m deem?
        nr^- on Drafting Consent Decr«*p» in
         W.mc Cj«r»' l\tj> 1. HBSI Th»v
         .
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                    Federal Register / Vol.  53. No. 35 / Tuesday. February 23.  1988 / Notices
                                                                        5307
  encourag«i the Region* to seek PRP
  responte through a written notice tetter
  but the Region] may contact PRPs
  verbally (with a written follow-up
  notice). This is consistent with the
  guidance on "Issuance of Administrative
  Orders for Immediate Removal Actions"
  (2/21/MI.
   The Regions should iscue notice
  letter* to readily identifiable PRPs for
  removal actions in the vast majority of
  cases. The content of the notice will
  vary depending whether the notice wiH
  be used simply to notify PRPs of their
 potential liability for an action EPA has
 already nrken or is about to take,
 whether the notice will be used to
 encourage a private party response
 through "informal" negotiations (i.e.
 negotiation* not triggered by the section
 122(eJ special notice procedures),  or
 whether the notice will be used as a
 mechanism for invoking the section
 122(e} special notice procedures which
 provide for "formal" negotiations
 between EPA and PRPs.     —

 2. When to Use Special Notice
 Procedures for Removals
   The Regions should consider using the
 section 122(e) special notice procedures
 only for those removals where the threat
 is of a nature that is not necessary to
 initiate an onsite removal action for at
 least *ix months. The "six month
 planning time period" begins once a  site
 evaluation is completed. This means
 that for the vast majority of removal
 actions the Regions will not be required
 to utilize the special notice procedures.
 It is not appropriate to utilize special
 notices for most removal actions
 because the subsequent moratorium
 may interfere with the Agency's ability
 to implement the remedy in a timely
 manner. In addition, it may no! be  worth
 expending the time and resources  to
enter into formal negotiations when a
removal will be a relatively short term
and inexpensive response action.
  The Regions should include the
following factors in their determination
of whether it is appropriate to utilize the
 special notice procedures for removals
 with a six month planning lead time: (1)
 Whether viable PRPs have been
 identified. (2) whether the PRPs are
 expected to respond favorably to the
 invitation to participate in negotiation]
 and to conduct or finance the removal
 action. (3) whether issuance of the
 special notice could delay
 implementation of the removal action.
 and (4) whether it may be more
 appropriate to enter into "informal"
 negotiations in lieu of "formal"
 negotiations under section :22(el
  In determining the PRPs viability, the
 Region should inquire about the PRPs
 financial and technical capability for
 conducting and/or financing the
 removal action in an effective and
 timely manner. In determining the PRPs
 willingness to undertake or finance the
 removal action, the Region should, at a
 minimum, obtain a verbal agreement
 from the PRPs prior to issuance of the
 special notice. In. deteonining whether
 the special notice may delay
 implementation of the remedy or in
 determining whether to eater into
 "informal** rather than "formal"
 negotiations, the Region* should
 consider whether the section liJle)
 negotiation moratorium would interfere
 with other activities at the site.
 3. Notifying PRPs When Not Appropriate
 To Utilize Special Notice Procedures for
 Removals
  EPA's decision on whether to use the
 special notice procedures for any
 response acrion is. clearly discretionary.
 However, section 122(a] requires the
 Agency to notify PRPs in writing when
 the Agency decides not to utilize such
 procedures. The removal notice provides
 a convenient vehicle for informing PRPs
 of EPA's decision nor to utilize the
 special notice procedures. The notice
 should, therefore, inform PRP* of EPA's
 decision not to utilize such procedures'
 when this determination has been made
 and should provide an explanation for
 that decision.
4. DO) Role in Removal Negotiations
  The Regions should consult with the
 Chief of the Environmental Enforcement
Section of DO] prior to issuing a special
notice letter for removal actions where
 settlement by consent decree is
contemplated, or where the settlement is
expected to involve a compromise of
 past or future-response costs and the
 total response costs will exceed
S500.000. The Region* should consult
with DOf prior to releasing a draft
consent decree to PRPs.
5. Tuning of Notice for Removal*
  A removal notice that does not invoke
the special notice procedures should be
provided to PRPs as soon as practicable.
For removal notices that invoke the
special notice procedures, the notice
should be issued as early as possible but
no later than 120 days before the
scheduled date for initiating the removal
action. The scheduled date  for initiating
 the removal action is the date removal
 extramural cleanup contractor funds
 will be obligated and onsite cleanup will
 begin.
  The timing of a  notice which invokes
 the special notice procedures  is critical
 because issuance of the notice triggers
 the subsequent 60 to 120 day
 moratorium on EPA'conduct of the
 removal action. (Th« moratorium would
 last only 60 days ir> instances where the
 PRPs do not provide EPA with » "good
 faith offer"). Issuing the special notice ml
 least 120 day* before EPA will begin the
 removal ensure* that tfa« subsequent 120
 day moratorium doe* not affect EPA »
 ability to implement the removal action
 in the event negotiations do not result in
 an agreeaeat for PRP cooduci of the
 removal action.

 8. Recipients of Notice for Removal*

  The removal notice should be sent to
 all parties where there is sufficient
 evidence to makat a preliminary
 determination of potential liability
 under section 107 of CERCLA, If a
 Federal agency ha* been identified as a
 generator at • facility not owned/
 operated by the Federal agency, sunh
 agency should be routinely notified like
 other PRPs.
  Copies of removal notice* should be
 provided to the Regional administrative
 record coordinator, the appropriate
 State representative, and to
 headquarters- Providing copies to the
 administrative record coordinator is
 important for ensuring that the notice be
 placed in the record. Providing copies to
 the Slate representative i» important for
 ensuring thai State* are appropriately
 informed about poMiMe future
 negotiations.
  Providing copies to the Information
 Management Section within  the Program
 Management and Support  Office of the
 Office of Waste Programs  Enforcement
 for entry into the Superfund
 Enforcement Tracking System (SETS!.
 Copies should be sent to OWPE at :ht
 same time they are sent to PRPs.
 Providing copies to OWPE is essential
 for facilitating our efforts to track site-'
 activities and to respond to
 Congressional and other inquiries.
  It is not necessary-to provide copies of
each removal notice to the
administrative record coordinator. State
representative. Slate or Federal trustee.
or headquarter* hi instances where
 identical notices are provided to
 multiple PRPs. Where there are rr.uliip'.e
 PRPs at  a site, a copy of one  removal
 notice with a list of other parries who
 have received the letter would suffice.

 7. Contents of Notice for Removals

  As indicated,  the content of the
 removal notice will vary depending
 upon whether the purpose of the letter is
 to simply inform PRPs of their potential
 liability or whether the letter will also
 be used  to provide an opportunity for
 PRP  involvement in nesotiatior.s cither
through "ir.furrral" c: 'lor—.al

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 5308
Federal  Register / Vol. S3.  No. 35  /  Tuesday. February 23.  1888 / Notices
 negotiations. The following highlights
 the componento thot ohould be included
 in the three different types of removal
 notices. The specific content of each
 component of the removal notice ohould
 be essentially the name as described
 earlier for RJ/FS and RO/RA general
 and special noticeo. except where
 otherttriae specified.
   a. Notice of potential liability: If the
 purpose of the removal notice io simply
 to inform I'RPs of their potential liability
 and to provide notice that the Agency
 has or io about to take a response
 action, the notice should contain the
 following components: a notice of
 potential liability: a discussion about
 oite response activities that have been
 or will be conducted at the site: a notice
 on the availability of on administrative
 record: and a notice pursuant to section
 122(a) that the special notice procedures
 will not be ueed.
   The notification under section 122(a)
 should inform PRPs that the Agency will
 not (or did not) use~ihe section 122(e)
 opecial notice procedures for this
 particular response action and should
 provide an explanation for that decision.
 The letter should indicate that it is the
 Agency's policy not to use the special
 notice procedures for removals unless
 there is a six month planning lead time
 prior to the initiation of the response
 action. If the response action does
 involve a removal with a six month
 planning lead time but the Agency made
 a case-specific determination not to use
 the special notice procedures, the letter
 should provide an explanation why the
 use "of such procedures was determined
 (o be inappropriate for that particular
 response action.           .  •
  b. Satire ofpotent id liability and
opportunity to enter into "informal"
negotiations: If the purpose of the
removal notice is to inform PRPs of their
potential liability and to provide PRPs
with an opportunity to enter into
negotiations with EPA without invoking
the section 122(e)  special notice
procedures, the notice ohould contain
 the following components: a notice of
 polemic! liability: a discussion about
 site response activities that will be
 conducted at the site: a copy of the
 statement of work or workplan and draft
 administrative order on consent: a
 notification pursuant to section 12C(a)
 that the special notice procedures will
                     not be uoed: a request that PRPa notify
                     EPA within a specified period of time of
                     their interest to participate in
                     negotiations: a notice on the availability
                     of the administrative record and
                     information on the EPA representative
                     to contact The section 122
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A. General Approach: Issue RD / RA Special Notice When Release

   Draft  FS and Proposed. Plan
                                                              •a


                                                              1
                        Selection of Remedy Process
Conduct
RI/FS

Review/
Release
FS/Pfoposed
Plan


Public
Com-
ment

Review
MOD

1 '
Conduct /
RD \
(

Nolle* and
Negotiation
Moratorium
Extended
Negotiation
Moratorium


                                                                        s
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                                                                        w
                                                                        o
                      Special  Notice / Negotiation Moratorium
                                                                 o

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