United States
        Environmental Protection
        Agency
Office of Site Remediation
Enforcement
January 1999
&EPA  CERCLA Enforcement Project
        Management Handbook:
        An Overview of Principles, Policies, and Practices
        for Effecting and Managing PRP Involvement in
        Superfund Site Cleanup

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                  UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                                WASHINGTON, D.C. 20460  .
                                                FEB 22  1999               OFFICE OF
                                                                         ENFORCEMENT AND
                                                                       COMPLIANCE ASSURANCE
 MEMORANDUM

 SUBJECT:    Transmittal of the FY 1999 Update of the CERCLA Enforcement Project
              Management Handbook
FROM:       Barry Breen, Director
              Office of Site Remediation Enforcement'

TO:        .  Distribution

       This memorandum transmits the FY 1999 update of the CERCLA Enforcement Project
Management Handbook to Headquarters and Regional offices. This updated version of the
handbook supersedes the one published in May 1993, and all earlier editions.

       The Handbook is intended to be a basic reference and training manual to assist Superfund
Remedial Project Managers  (RPMs) and On-Scene Coordinators (OSCs) in planning,
negotiating, and managing Potentially Responsible Party (PRP) searches and PRP-lead actions.
It provides an overview of each phase of the enforcement process and discusses the specific roles
and responsibilities of enforcement personnel.  Although primarily intended for RPMs and
OSCs, the Handbook will be a useful tool for all those involved with the enforcement process.

       Procedures and information contained in this document are based on existing EPA policy
and guidance.  Specific documents are referenced as sources of additional information on
particular topics.

       The Handbook, and future updates of Handbook chapters, will be available electronically
on the EPA Intranet. For additional information on the Handbook, contact Sally Martiny at.
202/564-6067 (martiny.sally@epa.gov).

Attachment
                            Internet Address (URL) • http://www.epa.Q9V
           Recycled/Recyclable . Primed with Vegetable Oil Based Inks on Recycled Paper (Minimum 20% Postconsumer)

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                                                                           Acknowledgments—i
                              Acknowledgments
This document was prepared by the Office of Site Remediation Enforcement in EPA's Office of Enforcement
and Compliance Assurance.  Sally Martiny and Monica Gardner served as EPA's Project Coordinators.
The following persons provided significant input in the development or review of the handbook or specific
chapters of the handbook. Many dianks go out to these and all other persons who contributed.


EPA Headquarters
Robin Anderson (OERR), David Batson (OSRE), Kirby Biggs (OERR), Scott Blair (OSRE), Linda Boornazian
(OSRE), Lori Boughton (OSRE), Susan Boushell (OSRE), Susan Bromm (OSRE), Nancy Browne (OSRE),
Seth Bruckner (OERR), Laura Bulatao (OSRE), Estelle Bulka (OSRE), Tom Caffrey (OERR), Sherri Clark
(OERR), David Coursen (OGC), Sharon  Cullen (OSRE), Janine Dinan (OERR), Doug Dixon (OSRE), Tom
Dixon (ORD), David Doughton (OSRE), Steve Ells (OERR), Bruce Engelbert (OERR), Deniz Ergener
(OSRE), Clarence E. Featherson (OSRE), Joe Freedman (OGC), Duane Geuder (OERR), Tracy Gipson
(OSRE), Mike Goldstein (OERR), Rafael Gonzalez (OERR), Dave Gordon (OSRE), Jo Ann Griffith (OERR),
Tessa Hendrickson (OSRE), SheUa Igoe (OGC), Art Johnson (OERR), Leslie Jones (OSRE), Pat Kennedy
(OSRE), Bob Kenney (OSRE), Dave Kluesner (OSRE), Jim Konz, (OERR), Karen Kraus (OGC), Bruce
Kulpan (OSRE), Ben Lammie (OSRE), Remi Langum, (FFRRO), Mike Lee (OGC), Bob Lindsey (OSRE),
Janice Linett (OSRE), Chad Litdeton (OSRE), Andrea McLaughlin (OERR), Bruce Means (OERR), Mike
Northridge (OSRE), Carolyn Oflfutt (OERR), Marti Otto (OERR), Nina Rivera (OGC), Earl Salo (OGC),
Lee Scharf (OSRE), Alex Schmandt (OGC), Neilima Senjalia (OSRE), Ken Skahn (OERR), Sue Sladek
(OERR), Greg Snyder (OSRE), LeeTyner (OGC), Victoria van Roden (OSRE), Vmce Velez (FMD), Yolaanda
Walker (OSRE), Suzanne Wells (OERR), John Wheeler (OSRE), Jim Woolford (FFRRO), Alan Youkeles
(OERR), Larry Zaragoza (OERR).


EPA Regional Offices
Doug Ballotti (5), Jeffery Clay (5), Matthew Cohn (8), Glenn Curtis (7), Colleen Dahl (7), Janet Feldstein (2),
Arlene Haas(5), Delmar Karlen (2), Karen Keller (7), Andrea Madigan (3),  Nancy Mangone (8), Cheryle
Micinski (7), Rett Nelson (5), Buddy Parr (6), Cecilia Tapia (7), Heather Torres (3), Audrey Zucker (1).
Other Federal Departments/Agencies
Fritz Guertsen, DOJ.
Deborah Tress, ATSDR.

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Acknowledgments—ii

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      Enforcement Project Management Handbook

                          Contents
     Acronyms
     Preface
1.    Introduction
2.    Removals
3.    Establishing CERCLA Liability
4.    PRP Search, Notification, and Information Exchange
5.    RI/FS Negotiations/Settlement
6.    RI/FS Implementation
7.    Selection of Remedy
8.    RD/RA Negotiations/Settlement
9.    RD/RA Implementation
10.   Operation and Maintenance
11.   Site Completion and Deletion
12.   Cost Recovery
13.   Community Involvement
14.   State Enforcement
15.   Records Management
16.   Targeting Accomplishments and Measuring Performance
     Glossary
     On line Information Sources
     Index

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Acronyms

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                                                                                   Acronyms—i
                                      Acronyms
AA
ADR
AO
AOA
AOC
AR
ARAR
ARCS
ATP
ATSDR

B
BODR
BUREC

c
CA
GAG
CB
CBI
CD
CERCLA
CERCLIS 3/
WasteLAN

CFR
CI
CIC
GIF
COR
CRC
CRI
CWA

D
DD
DNAPL
DOI
DOJ
DQP

E
EA
EAB
Assistant Administrator
Alternative Dispute Resolution
Administrative Order
Advice of Allowance
Administrative Order on Consent
Administrative Record
Applicable or Relevant and Appropriate Requirement
Alternative Remedial Contracting Strategy
Ability to Pay
Agency for Toxic Substances and Disease Registry
Basis of Design Report
Bureau of Reclamation
Cooperative Agreement
Community Advisory Group
Case Budget
Confidential Business Information
Consent Decree
Comprehensive Environmental Response, Compensation, and Liability Act of 1980

Comprehensive Environmental Response, Compensation, and Liability Information
     System/Waste Local Area Network
Code of Federal Regulations
Civil Investigator
Community Involvement Coordinator
Community Involvement Plan
Close Out Report
Cost Recovery Coordinator
Community Relations Implementation
Clean Water Act
Decision Document
Dense Non-Aqueous Phase Liquid
Department of the Interior
Department of Justice
Data Quality Objective
Endangerment Assessment
Environmental Appeals Board

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 Acronyms--ii
EE/CA
EPCRA
EPM
ERGS
ERNS
ESI

F
FCOR
FE
FEMA
FMD
FMO
FOIA
FR
FS
FSP
FY
FWS

G
GFO
GNL

H
HASP
HRS

I
IAG
IEUBK
IFMS
IMC

L
LDRs
LOE
LTRA

M
MOA
MOU
MPE
MSW

N
NEAR
NCP
Engineering Evaluation/Cost Analysis
Emergency Planning and Community Right-to-Know Act of 1986
Enforcement Project Manager
Emergency Response Cleanup Services
Emergency Response Notification System
Expanded Site Inspection
Final Close Out Report
Federal Enforcement
Federal Emergency Management Agency
Financial Management Division
Financial Management Office
Freedom of Information Act
Federal Register
Feasibility Study
Field Sampling Plan
Fiscal Year
Fish and Wildlife Service
Good Faith Offer
General Notice Letter
Health and Safety Plan
Hazard Ranking System
Interagency Agreement
Integrated Exposure Uptake Bio-Kinetic
Integrated Financial Management System
Information Management Coordinator
Land Disposal Restrictions
Level of Effort
Long-Term Response Action
Memorandum of Agreement
Memorandum of Understanding
Multi-Phase Extraction
Municipal Solid Waste
Non-Binding Preliminary Allocation of Responsibility
National Contingency Plan (National Oil and Hazardous Substances Pollution
     Contingency Plan) (Abbreviated as National Contingency Plan in this handbook)

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                                                                                      Acronyms—Hi
NEIC
NMFS
NOAA
NOD
NOID
NOIPD
NOPD
NPL
NRC
NRRB
NTC
National Enforcement Investigation Center
National Marine Fisheries Service
National Oceanic and Atmospheric Administration
Notice of Deletion
Notice of Intent to Delete
Notice of Intent for Partial Deletion
Notice of Partial Deletion
National Priorities List
National Response Center
National Remedy Review Board
Non-Time-Critical
O&F
O&M
OC
OC
OE
OECA
OERR
OGC
OIRM
OLS
OMB
OPA
OSC
OSHA
OSRE
OSWER
OU
OWPE

P
P&C
PCOR
PDD
PNRS
POLREP
PPA
PPED
PRN
PRP

Q
QA
QA/QC
QAO
QAPP
Operational and Functional
Operation and Maintenance
Office of Compliance
Office of the Comptroller
Office of Enforcement
Office of Enforcement and Compliance Assurance
Office of Emergency and Remedial Response
Office of General Counsel
Office of Information Resources Management
Office of Litigation Support
Office of Management and Budget
Oil Pollution Act
On-Scene Coordinator
Occupational Safety and Health Administration
Office of Site Remediation Enforcement
Office of Solid Waste and Emergency Response
Operable Unit
Office of Waste Programs Enforcement
Participate and Cooperate
Preliminary Close Out Report
Pre-Authorization Decision Document
Preliminary Natural Resource Survey
Pollution Report
Prospective Purchaser Agreement
Policy and Program Evaluation Division
Pre-Referral Negotiation
Potentially Responsible Party
Quality Assurance
Quality Assurance/Quality Control
Quality Assurance Office
Quality Assurance Project Plan

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 Acronyms-iv
QAPP/FSP       Quality Assurance Project Plan/Field Sampling Plan
QC              Quality Control
RA              Remedial Action
RA              Regional Administrator
RAC             Response Action Contract
RAGS            Risk Assessment Guidance for Superfund
RAR             Remedial Action Report
RCRA           Resource Conservation and Recovery Act
RD              Remedial Design
RD/RA          Remedial Design/Remedial Action
RSD             Regional Support Division
REM             Remedial Engineering Management
RJ/FS            Remedial Investigation/Feasibility Study
RO              Regional Ombudsman
ROD             Record of Decision
RPM             Remedial Project Manager
RRT             Regional Response Team

s
SAIC             Special-Agent-In-Charge
SAP             Sampling and Analysis Plan
SARA            Superfund Amendments and Reaudiorization Act of 1986
SCAP            Superfund Comprehensive Accomplishments Plan
SCORES         Superfund Cost Organization and Recovery Enhancement System
SDMS           Superfund Document Management System
SE               State Enforcement
SEP             Supplemental Environmental Project
SMOA           Superfund Memorandum of Agreement
SMP             Site Management Plan
SNAP            Superfund National Assessment Program
SNL             Special Notice Letter
SOL             Statute of Limitations
SOW             Statement of Work
SPIM             Superfund/Oil Program Implementation Manual
SSC             Superfund State Contract
START          Superfund Technical Assistance and Response Team

T
TAG             Technical Assistance Grant
TBC             To Be  Considered
TESWATS        Technical Enforcement Support Work Assignment Tracking System
TRT             Technical Review Team
TSCA            Toxic Substances Control Act
TST             Technical Support Team

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                                                                                       Acronyms—v
u
UAO            Unilateral Administrative Order
USAGE          United States Army Corps of Engineers
USC             United States Code
USCG           United States Coast Guard
USGS           United States Geological Survey

V
VCP             Voluntary Cleanup Program
VE              Value Engineering
VOC            Volatile Organic Compound

w
WAM           Work Assignment Manager
WasteLAN       Waste Local Area Network

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Preface

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                                                                                        Preface-i
             Purpose
                Scope
 Role of Remedial
Project Managers
      Organization
                           Preface
This handbook was prepared primarily to assist EPA Superfund Remedial
Project Managers (RPMs) in planning, negotiating, and managing Poten-
tially Responsible Party-(PRP-) lead response actions under the Comprehen-
sive Environmental Response, Compensation, and Liability Act of 1980
(CERCLA). Other field personnel, such as On-Scene Coordinators
(OSCs), also may find the handbook useful for their purposes. It provides
an overview of the roles and responsibilities of the RPM/OSC in identifying
and communicating with PRPs; coordinating with communities, states,
tribes, and natural resource  trustees; negotiating agreements for site cleanup;
initiating administrative and judicial enforcement actions; selecting site
remedies; recovering EPA's response costs; and overseeing PRP-lead response
actions. The description of roles and responsibilities is based on the usual
progression of events at an average site. The handbook complements EPA's
Superfund Federal-Lead Remedial Project Management Handbook and
Superfund State-Lead Remedial Project Management Handbook by serving as a
reference guide on enforcement actions that may be taken or considered at
each step of the removal and remedial processes.

Procedures and information contained in this document are based on EPA
policy and guidance. The handbook is not intended either to replace
Agency guidance or to stand alone. The following chapters summarize
specific policies, guidance, and odier information about EPA's national
enforcement program and the role of RPMs/OSCs in that program. The
reader should bear in mind  that some oversimplification was necessary  to
keep the handbook to a moderate length. Throughout the chapters, the
reader is referred to specific, detailed guidance, policies, and procedures.
The reader should use these resources to supplement the information
presented in the handbook.

The emphasis of this handbook is on the role of the RPM/OSC in the
enforcement process.  It is recognized, however, that regional differences
exist in defining diat role. In many regions, cost recovery activities are
handled by staff without remedial project management responsibilities.
Therefore, when the term "RPM" is used in this handbook in connection
with specific activities, die reader should bear in mind that responsibility for
those activities may rest on  regional personnel other than the RPM. RPMs
should consult with regional management on the scope of their specific
responsibilities.

This handbook addresses the removal enforcement process and the phases of
die remedial planning and implementation process from the baseline PRP
search (generally conducted when the site is listed on the National Priorities
List (NPL) or when die region determines that a response action may be
warranted) through completion of remedial activity and deletion of die site
from the NPL. The handbook has been organized to follow die overall
progression of diese phases.
In addition to chapters diat discuss die various phases of the remedial

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Preface—ii      Preface
                              process, the handbook includes chapters presenting enforcement topics that
                              either are not a direct part of the remedial process or are relevant to many
                              steps in the process. These chapters cover enforcement activities associated
                              with establishing liability; PRP searches; cost recovery; community involve-
                              ment; state enforcement; records management; site completion and dele-
                              tion; and targeting accomplishments and measuring program progress.

    Chapter Format    Chapters are organized to provide a description of a  phase of site cleanup or
                              specific enforcement activity, a chronology of procedures for which the
                              RPM is responsible, associated planning and reporting requirements, and a
                              discussion of potential problems and possible solutions. Chapter subsections
                              contain many useful references to specific policies, guidance, and procedures
                              relating to die topic under discussion. The On-Line Information Sources
                              section at the back of the handbook provides a list of additional sources of
                              information, including resources providing access to many of die references
                              cited in the handbook.

        Applicability    Although the handbook is designed bodi for new RPMs/OSCs and for
                              those who have experience with the enforcement program, it is hoped that
                              the handbook also will help odier EPA personnel understand the technical,
                              enforcement, and management tasks required to  complete response actions
                              at PRP-lead sites.  This handbook is for internal EPA use only.  It does not
                              create rights in any party and may not be quoted as an authoritative source
                              by any PRP.

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1. Introduction

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                     Chapter 1  Introduction


1.1  Goals of the Enforcement Program	1

     1.1.A   Obtaining PRP Response Action	1
     1.1.B   Cost Recovery	1
     1.1.C   PRP Response Action Oversight	2
     1.1.D   Expediting the Process through Administrative Reforms	2
1.2  Programmatic Background	3
     1.2.A   Liability	3
     1.2.B   Settlement and Enforcement Provisions	3
     1.2.C   Enforcement Authority	4
     1.2.D   Other Statutory Authorities	4
     1.2.E   Administrative Dispute Resolution Act	4
     1.2.F   Program Goals	6
1.3  Overview of Super-fund Process	7

     1.3.A   Site Assessment and Response Planning	7
     1.3.B   Site Management Planning	7
     1.3.C   PRP Searches	11
     1.3.D   Negotiations	11
     1.3.E   Settlements	12
     1.3.F   Oversight	12
     1.3.G   Cost Recovery	12
     1.3.H   Timeline	12
1.4  Key Players	13
     1.4.A   Other Federal Agencies	13
     1.4.B   States and Tribes	14
     1.4.C   Natural Resource Trustees	14
1.5  Additional Enforcement Resources,,..,..,	»	15
     1.5.A   Emergency Planning and Community Right-to-Know Act	15
     1.5.B   Oil Pollution Act	15
     1.5.C   Federal Facilities	15

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1—ii     Introduction

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                                                                                             1-1
                            Chapter  1 Introduction
1.1
1.1.A
Obtaining
        PRP
Response
     Action
1.1.B
       Cost
 Recovery
This introduction provides a broad overview of die Superfund enforcement
program. The chapter is divided into five major sections:

            Goals.
      •     Background.
      •     Overview.
      •     Players.
      •     Additional Enforcement Resources.
Each of these sections presents background information critical to under-
standing die role of enforcement in die success of the Superfund program.
Together diey provide die context required for understanding die role of the
Remedial Project Manager (RPM) in executing die enforcement program.

Goals of the  Enforcement Program

The overall goal of the Superfund program is to protect human healdi and
die environment dirough timely and effective site remediation at the
maximum number of sites. The enforcement program plays a major role in
achieving this goal, and die RPM plays a crucial role in every phase of die
enforcement program. The RPM ensures diat cleanup activities pursuant to
agreements widi Potentially Responsible Parties (PRPs) are appropriate and
effective and that PRPs implement them thoroughly and efficiendy.  Each
chapter of this manual covers a distinct phase of the RPM's role in the
enforcement process. In addition to performing duties that direcdy affect
response actions, the RPM is also responsible for keeping data on enforce-
ment projects up to date.  The RPM's role in work planning, budgeting,
and accomplishments reporting, and its interface with the Government
Performance and Results Act of 1993, is discussed in Chapter 16, Targeting
Accomplishments and Measuring Performance.

A primary goal of the enforcement program is to obtain consensual settle-
ment or, if necessary, compel PRPs to implement site cleanups. The
primary tools used to achieve this goal are the Administrative Order (AO),
judicial enforcement authority set forth in the Comprehensive Environmen-
tal Response, Compensation, and Liability Act (CERCLA) section 106, and
the setdement provisions of section 122. These authorities are discussed in
more detail in Chapter 5,  RI/FS Negotiations/Settlement, and Chapter 8,
RD/RA Negotiations/Settlement.

When EPA takes response or enforcement action at a site, the enforcement
program's goal is to recover the costs of those actions from the responsible
parties. Cost recovery actions are essential both to  replenish the Fund and
to deter other PRPs from trying to avoid responsibility for performing
response actions themselves. Authority for cost recovery is found in CER-
CLA section 107.  Cost recovery is discussed further in Chapter 12, Cost
Recovery.

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 1-2
Introduction
1.1.C
           PRP
   Response
       Action
   Oversight
1.1. D      Expediting
           the Process
               through
      Administrative
               Reforms
Once the PRP has agreed to take response action at a site, the goal of the
enforcement program is to ensure that the studies or cleanup activities are
performed correcdy and in accordance with the AO or judicial Consent
Decree (CD), CERCLA, the National Contingency Plan, and relevant
guidance. In addition to dieir oversight, RPMs may use the authority in
CERCLA section 104 for third-party oversight of PRP-conducted Remedial
Investigation and Feasibility Study (RI/FS) activities to ensure that this goal
is met. Oversight responsibilities are discussed in Chapter 2, Removals;
Chapter  6, RI/FS Implementation; and Chapter 9, RD/RA Implementa-
tion.

The reforms to Superfund are intended to improve the efficiency, pace, cost,
and fairness of the program. For die enforcement program, these efforts
have included, in particular, a number of initiatives and pilots to encourage
and accelerate PRP-lead cleanup actions. The enforcement reforms range
from compensating settling parties for a portion of costs attributable to
insolvent parties ("orphan shares") to committing to conduct cost effective
oversight while ensuring protective clean-ups. These reforms are important
for achieving prompt site cleanups and maximum responsible party partici-
pation in performing and paying for them, while promoting fairness and
equity in the enforcement process.

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                                                                                               1-3
1.2
1.2. A
       Liability
1.2.B
  Settlement
            and
Enforcement
   Provisions
Programmatic Background

CERCLA has stringent, far-reaching liability provisions that provide EPA
with a wide array of enforcement tools for achieving hazardous waste site
cleanup.  These include AO authority, judicial enforcement authority, and
the authority and funding for direct cleanup action.

CERCLA section 107 oudines the basic liability provisions of die enforce-
ment program. It identifies four classes of PRPs:

   •   Current facility owners and operators.
   •   Past facility owners and operators at die time of disposal of a hazard-
      ous substance.
   •   Persons who arranged for treatment or disposal of hazardous sub-
      stances (e.g., generators).
   •   Transporters of hazardous substances who selected the disposal site.
CERCLA is a strict liability statute, which means diat PRPs are liable
without regard to negligence or fault.  In addition, die courts have held that
anyone in the classes of liable persons set fordi in section 107 may be held
liable for  the entire cost of site cleanup unless it can be shown diat the harm
or direat is divisible. This rule, known as "joint and several liability," is a
powerful  tool that EPA can  use to encourage PRPs to agree to perform
cleanups. This is discussed in more detail in Chapter 3, Establishing
CERCLA Liability, Chapter 4, PRP Search, Notification, and Information
Exchange, and Chapter 12,  Cost Recovery.
CERCLA provides EPA with the authority to order PRPs to investigate and
clean up sites, negotiate settlements with PRPs to fund and/or perform site
cleanups, and commence legal action if the PRPs do not perform and/or
pay for cleanup. Settlements for removals are usually finalized by Adminis-
trative Orders on Consent (AOCs). Remedial Action (RA) settlements are
more complex and, by law, must be set forth in CDs and approved by the
Department of Justice (DOJ) and a federal court.  Remedial Design (RD)
settlements may take die form of AOCs or CDs, but combined RD/R<\
settlements must be set forth as CDs.
Under CERCLA, EPA may use a variety of special settlement tools.  In
mixed funding settlements, setding PRPs and EPA contribute to the RA,
and EPA  generally pursues viable non-setdors for the costs it has incurred.
In de minimis setdements, EPA may setde widi relatively minor contributors
when the settlement involves only a minor portion of the response costs and
when the amount of waste represents a relatively minor amount and is not
highly toxic compared to other substances at the facility.  In addition, EPA
is authorized to utilize preliminary Non-Binding Allocations of Responsibil-
ity (NBARs) to promote settlement. NBARs represent a recommended
scheme for allocating costs among the PRPs for setdement purposes only,
are not binding, and cannot be admitted as evidence in court. These and
other setdement tools are discussed fully in Chapter 5, RI/FS Negotiations/
Settlement, and Chapter 8,  RD/RA Negotiations/Settlement.

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 1—4     Introduction
1.2.C    Enforcement
              Authority
1.2.D            Other
              Statutory
            Authorities
 1.2.E   Administrative
                  Dispute
              Resolution
                       Act
If the PRPs do not settle with EPA, CERCLA section 106 gives the Agency
the authority to unilaterally order them to conduct the response. In
addition, with the assistance of DOJ, EPA may obtain a court order under
section 106 compelling the PRPs to perform the cleanup.  Under section
107, EPA may sue PRPs for cost recovery. These authorities are discussed
further in Chapter 8, RD/RA Negotiations/Settlement and Chapter 12,
Cost Recovery.

In some instances, EPA may use authorities provided by environmental
statutes other  than CERCLA, although the applicability of these laws is
subject to specific legal requirements that are beyond the scope of this
handbook.  For example, under the Resource Conservation and Recovery
Act, the Agency can order owners and operators of hazardous waste treat-
ment, storage, and disposal facilities to investigate any potential releases and
to clean up the facility if necessary.  The Toxic Substances Control Act and
its regulations can be used  by the Agency to impose conditions on the
handling of particularly hazardous substances such as asbestos and polychlo-
rinated biphenyls. In cases where releases affect surface waters, provisions of
the Clean Water Act (CWA) can be used to impose fines and to require
cleanup.  These other statutes also provide the basis for many of the Appli-
cable or Relevant and Appropriate Requirements (ARARs) on which
cleanup levels are based in  site Records of Decision (RODs).  ARARs are
discussed in Chapter 5, RI/FS Negotiations/Settlement, Chapter 6, RI/FS
Implementation, and Chapter 7, Selection of Remedy.

The Administrative Dispute Resolution Act of 1990  expressly authorizes
and encourages all federal agencies to use Alternative Dispute Resolution
(ADR) techniques to assist in the resolution of disputes involving a federal
agency.
Types of ADR potentially useful in EPA matters include the following, all of
which are non-binding except for arbitration, which  can be either binding
or advisory:

   •   Mediation - Use of a neutral party with no decision-making author-
      ity to aid the parties in their negotiations.  Types of mediation
      include:
          Facilitation - Use of a neutral party to enhance information
          exchange or promote effective decision-making.
          Allocation - Primarily used by members  of PRP groups to
          privately assess  responsibility and allocate the costs among PRPs.
          EPA does not usually participate in these groups, but may
          encourage the PRPs to use this process.
   •   Settlement Judge - Use of a judge other than the one hearing the
      case to act as mediator of parties' settlement discussions; usually gives
      his/her opinion as to the probable outcome of the case.
   •   Neutral Evaluation - Use of a neutral party to assist a negotiation
      team in evaluating the potential for settlement and/or use of ADR
      professionals.

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                                                                    1-5
   •    Fact-Finding - Use of a neutral party with subject matter expertise
       to resolve technical or factual issues.  Fact-finding can be performed
       in either an investigation or arbitration format, and can be binding
       or advisory.
   •    Arbitration - Use of a quasi-judicial setting in which a neutral third
       party, chosen by the  parties to the dispute, is asked to decide how the
       conflict will be setded. Arbitration may be either binding or non-
       binding. Procedure and evidentiary requirements are more stream-
       lined in arbitration than in court proceedings.
   •    Minimal - Use of a structured presentation of each party's case to a
       panel of decision-makers from each party and a neutral "judicial
       officer."  Procedural and evidentiary standards are negotiable by die
       participants. After case presentation, parties meet to attempt a
       negotiated setdement, but may request a non-binding recommenda-
       tion.
The most commonly used ADR mechanism in regional enforcement actions
is mediation.  Mediation has proven extremely helpful in reducing the
regional resources required to obtain Superfund cost recovery and Remedial
Design/Remedial Action (RD/RA) settlements. To ensure that mediation is
used whenever it would be beneficial, several regional offices have estab-
lished procedures to ensure that each Superfund enforcement action is
reviewed for potential ADR assistance. ADR methods, primarily mediation
and allocation, have been used by EPA to assist die resolution of more  than
200 civil actions and have been included as a dispute resolution option in
more than 40 setdement agreements. ADR has been, or is being, used to
facilitate many difficult settlements, including cost recovery and remedial
actions in excess of $200 million with more than 1,600 parties, and for
actions with bodi state and municipal parties.
In an effort to institutionalize die use of ADR, credit for its use has been
specifically included in Agency management performance tracking systems.
In die enforcement program, efforts are under way to provide equal status
to the initiation of mediation or arbitration relative to that given for the
initiation of legal action.
The Office of Site Remediation and Enforcement (OSRE) has dedicated
staff to assist regional offices, DOJ, and members of die  regulated commu-
nity in the evaluation of the appropriateness of ADR techniques in enforce-
ment cases. In addition, ADR specialists are on staff in each of EPA's
regional offices. OSRE offers training to Agency and DOJ staff and
publishes a quarterly report on Agency ADR activities.  OSRE and the
regional ADR specialist offer assistance in reviewing case files for appropri-
ate ADR actions, locating appropriate ADR professionals and preparing
required procurement documents, and seeking funding for ADR use.
Finally, EPA has funded a national ADR contract to provide neutral services
for a variety of matters including Superfund enforcement.

-------
1—6     Introduction
.2.F         PrOQrflm    The Superfund enforcement program seeks to maximize the involvement of
                             PRPs in the cleanup of Superfund sites.  The Agency's enforcement goals are
                             to:

                                •  Maintain high levels of PRP participation in conducting and financ-
                                   ing cleanup through use of EPA's enforcement authorities and/or
                                   tools.
                                •  Ensure fairness and equity in the enforcement process.
                                •  Recover Fund monies expended by EPA.
                             If properly planned, negotiated settlements do not take longer to implement
                             than Fund-lead activity. The key elements are good planning and effective
                             deadline management.
                             The enforcement authority provided by CERCLA offers PRPs a powerful
                             incentive to settle with EPA. Settlement is usually faster and less costly than
                             litigation, and it reduces the risk that PRPs will be assessed treble damages
                             under CERCLA section 107.

-------
                                                                                               1-7
1.3
1.3.A
             Site
 Assessment
             and
     Response
      Planning
1.3.B
             Site
Management
      Planning
Overview of Superfund Process

The Superfund program is an integrated process of both enforcement and
Fund-financed activities aimed at achieving the overall goal of site cleanup.
Exhibit 1-1 presents a broad schematic overview of the relationships
between the various enforcement and remedial process activities. In general,
EPA assesses conditions at the site, develops Site Management Plans
(SMPs), identifies PRPs that may be liable for site response, attempts to
negotiate agreements with them to perform necessary studies or cleanup,
enters into settlements with diem if agreement can be reached, and oversees
the site work performed under the setdement. If the PRPs do not settle,
EPA may issue an order or sue them to perform and/or pay for the cleanup,
or EPA may conduct die cleanup itself and pursue cost recovery from the
PRPs later. Each of these steps is discussed briefly below and in more detail
in die chapters diat follow.

Current Superfund site assessment practice seeks to integrate previously
separate removal and remedial assessments into a single, concurrent process.
Whenever possible, assessment activities are conducted concurrently widi
response and enforcement actions. For example, because an Administrative
Record file must be made available for public inspection when RI/FS work
begins, regions should start compiling the record file  as soon as any work
pertinent to remedy selection commences, regardless  of whether or not a
decision has been made to perform an RI/FS.  Likewise, CERCLA section
122 special notice procedures should be used where they may facilitate RI/
FS or RD/RA setdement, even if the region anticipates conducting diose
response actions in combination with other actions.  It is important to
emphasize that these practices do not supersede the legal distinction be-
tween removal and remedial authorities or the procedural  requirements for
exercising those authorities.

It is important to develop and maintain a general road map of site activities
as early in the response process as possible to ensure a coherent context for
planning and conducting specific site activities. The  SMP serves this
purpose and evolves over time, becoming more precise as the site passes
through different phases.
Exhibit 1-1 presents the Agency's view of the key steps and optimum
duration of phases in moving sites from identification to remediation.
Exhibit 1-2 shows the level of specificity appropriate for the general
timeline of an SMP.  Critical points where the timeliness of enforcement
actions could affect response activity should be indicated on the timeline.
Regional Decision Teams develop response strategies  for sites following
receipt of initial site information and as the assessment process advances.
Day-to-day project management responsibility is exercised by the site
management team. The SMP should document the decisions made by both
teams in coordination with each other.

-------


PHASES OF
ACTIVITY
PRP Search and
Notification


RI/FS Negotiation Process
RI/FS Settlement Process
RI/FS Implementation
Process
RD Negotiation Support (if
not completed above or
have additional Info from
RI/FSI
ROD Process
RD/RA Negotiation Process
RD/RA Settlement/
Referral Process
RD/RA Implementation
Cost Recovery
ELAPSED TIME IN QUARTERS
24 68 10 12 14 16 18 20 22 24
Info.
iss
PRPS
Gene
equest
ued
\
PRPS
al Noli

>^^
<^ Issue SCR
PNXI
PRPS 1 PRPS
e Issue
RNS

GN
d
RNS


GN
SN
	
RNS

CO

>
Issue
RNS

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-"'at
SCAPf
1 Spec!


3r RI/FS


1 Notic
RI/FS

Schec
RI/FS
Inf
lie frorr
RI/FS
i. requi
G
here o
Draft
Rl
RI/FS
it ISSUE
neral r>
i deper
Draft
FS
RI/FS
1
RONS
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RI/FS
\
RI/FS
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•^Proposed"*"-
'Ian Amended
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signrm
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it
it
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m
RON 1 RON
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ll Notic
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KnN
egotiation unle
nslon received
Reg. Admin.
CD | CDR
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mmS
CDF
r^X

CDE
	 Qtr
SCA
X^i
X
Ir
»l
ta
s







NOTE: RPM will be assigned to the site at the
beginning of GN
NOTE: Timeline illustrates activities from PRP
search to design start. The timeline
does not address cost recovery actions
driven by SOL. These may occur at
any point in the process.
[PRPS | Potentially Responsible Parly Search
|RDNS | RD Negotiation Support
|GN | General Notice
|SN | Special Notice
|RNS | RI/FS Neg. Support Workplan
|RN | RI/FS Negotiation
|CO | Consent Order
|RI/FS | RI/FS Work
[ROD | ROD
|KbN | RD RA Negotiation
|CD | CD Preparation
[COR | CD Referra
|CbF | CD Finding
|CDE | CD Effective
[CR | Cost Recovery
IRORAI RD RA Implementation
•^^> SCAP Targets
SCR Site Classification Report
\
or
K
RDRA
~i
>


Cost Recovery



1-1 Schematic Overview of CERCLA Enforcement and the Remedial Process

-------
                                                                                                                                       IXJ






FY93





FY94





FY95





FY96













RI/FS Obligation


Data Validation


Pre-FS Meeting



Draft FS
Public Comment/FS
Public Comment
Draft ROD
ROD Briefing
ROD Approval
—















—


—


•••



•















^^^"
—
—
i















••
—
—

















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3
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"0
0
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3
s,

-------
1—10    Introduction
                              At four key points in the Superfund process, more detailed plans should be
                              developed and approved by team members. The specific plans are intended
                              to perform the same functions as the overall road map - integrating enforce-
                              ment and response planning in pursuit of clearly articulated case objectives,
                              defining roles and responsibilities of site team members, establishing a
                              framework for accountability for specific activities, and obtaining commit-
                              ments of all participants to the objectives, activities, and schedules.
                              The specific activity-oriented, detailed plans are:

                                 •   PRP Search Plan.
                                 •   RI/FS Negotiation Plan.
                                 •   RD/RA Selection and Negotiation Plan (including Pre-Referral
                                     Litigation Report).
                                 •   Litigation Management Plan.
                              Each SMP should have a general information and objectives component,
                              the overview, which is updated with current information at least as often as
                              each new detailed plan is prepared.  Whenever a major change or addition is
                              made to the overview or detailed site plans, the items in the case overview
                              should be reviewed, revised as necessary, and included as part of the current
                              SMP.  In general,  the overview provides the site management team and
                              major PRP representatives with a response and enforcement history of the
                              site, the response and enforcement objectives, and a schedule of major
                              activities.
                              Each Region must develop both an SMP and management review and
                              concurrence process that is appropriate for its own organizational structure
                              and lines of authority. The involvement of Headquarters and DOJ should
                              be built into the regional process in  accordance with the operative delega-
                              tions or case-specific agreements.
                              Regions are required to develop site-specific plans for removal work one
                              quarter in advance.  Extensive site-specific detail is not required in each
                              quarterly plan, as  die exact nature of removal work cannot always be
                              anticipated. The planning process begins by identifying sites in the Com-
                              prehensive Environmental Response, Compensation, and Liability Informa-
                              tion System 3, EPA's national information management system for the
                              Superfund program, that are potential candidates for removal work in the
                              next quarter.  Due to the sometimes unexpected and time-critical nature of
                              removal actions, this process may only include a portion of the sites that
                              actually undergo removal actions during the specified quarter.
                              The main elements necessary for removal planning include designation of
                              the expected lead, identification of the funding that each action will require,
                              and determination of the category of each removal.  As discussed in Chapter
                              2, Removals, removal actions are classified as  follows:

                                 •   Emergency - the Agency determines that cleanup activities are
                                     required within hours of the  determination that removal action is
                                     necessary.

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                                                                                                 1-11
1.3.C  PRP Searches
1.3.D   Negotiations
   •   Time-Critical - the Agency determines that a period of less than six
      months is available before removal activities must begin.
   •   Non-Time-Critical - the Agency determines that a period of more
      dian six months is available before removal activities must begin; the
      lead agency must perform an Engineering Evaluation/Cost Analysis
      or its equivalent.
If a removal action is expected to take more than 120 days, preparation of a
Community Involvement Plan (CIP) is required. The lead agency develops
the CIP with the participation of die responsible party under the oversight
of EPA regional staff. The elements of the CIP in the context of removals
are further described in Chapter 2, Removals.

As soon as the Agency decides that a response action is likely to be required
at a site or when the site is proposed for listing on die National Priorities
List (NPL), EPA initiates a PRP search to identify any companies or
individuals that may be liable for die costs of cleaning up the site.  In
addition to the RPM and contractors, the PRP search also should involve
regional attorneys and civil investigators. The search involves detailed
review of state, EPA, and site records; interviews with site owners,  operators,
and transporters; and requests  for information from those who may have
been involved with the site. The PRPs identified by this process are notified
of their potential liability and informed that they will have the opportunity
to negotiate with EPA to conduct site cleanup.
Regions are encouraged to adopt, where appropriate, a phased PRP search
approach. The initial phase should focus on establishing liability for PRPs
about whom information is most readily available from site assessment
activities and other sources. The search should then be extended to address
other PRPs. In conducting searches, regions should coordinate with odier
parts of die program and widi die states.  Chapter 4, PRP Search, Identifi-
cation, and Information Exchange, contains a detailed description of die
PRP search process.

Formal negotiations widi PRPs usually begin at two stages in the cleanup
process, before die RI/FS and after EPA releases the Proposed Plan for
public comment, or generally no later dian when EPA signs the ROD.
The purpose of diese negotiations is to reach agreement that die PRPs will
perform die RI/FS or RD/RA  and pay any past costs incurred by EPA.
During the course of negotiations, EPA and the PRPs exchange informa-
tion on site conditions, the PRPs' liability,  past costs, and the nature of the
required work. Based on diis information, EPA and the PRPs try to reach
an agreement diat die PRPs will both finance and conduct die work. If an
agreement is not reached, EPA may (1) issue an order compelling die
PRPs to do the work, and pay  past and future costs; (2) sue die PRPs to
require diem to perform die work if they fail to comply with the order;
and/or (3) use Superfund funds to perform the work and seek to recover
the costs later. The negotiation process is described in detail in Chapter 5,
RI/FS Negotiations/Settlement, and Chapter 8, RD/RA Negotiations/
Settlement.

-------
 1—12     Introduction
1.3.E    Settlements
1.3.F        Oversight
1.3.G
      Cost
Recovery
1.3.H
 Timeline
If negotiations are successful, EPA and the PRPs must sign a legal document
that sets forth the cleanup agreement. If the work required is an RI/FS,
RD, or removal action, EPA and the PRPs usually use an AOC. An AOC is
a legally binding administrative document, authorized by CERCLA, that
EPA and the PRPs both sign.  Although a judicial CD may be used instead,
CDs are not the preferred mechanism for RI/FSs or removal actions because
administrative settlements can be processed  more quickly.  A CD is similar
to an AOC, but it is a judicial action that must be approved by DOJ, filed
in federal court, and entered or approved by a judge before it becomes final.
If the setdement between EPA and the PRPs includes an RA, CERCLA
section 122 requires diat the settlement be in the form of a CD. These
settlement mediods are discussed in more detail in Chapter 5, RI/FS
Negotiations/Settlement,  and Chapter 8, RD/RA Negotiations/Settlement.

Once the AOC or CD takes effect, PRPs can begin work.  EPA closely
monitors all work at the site. Monitoring may include on-site examination
of the PRPs or their contractors, review of all reports, and parallel sampling
and analysis to ensure accuracy. Under CERCLA, the PRPs must agree to
pay for EPA's RI/FS oversight expenses as part of the settlement. EPA also
generally requires reimbursement of oversight costs for removals and RD/
RAs. Chapter 6, RI/FS Implementation, describes the oversight process for
RI/FSs and Chapter 9, RD/RA Implementation, discusses the process as it
relates to RD/RAs.

If negotiations widi the PRPs are unsuccessful, EPA can choose to perform
the work first and seek to recover its costs later.  To recover costs, EPA
usually issues a demand letter and if the PRPs do not comply, EPA refers the
matter to DOJ to sue the PRPs.  If the United  States incurs response costs
of $500,000 or less at a facility, EPA can compromise the claim and setde
with the PRPs directly using an AOC. If more  than  $500,000 in United
States response costs are involved, the Attorney General's written approval of
any compromise and setdement is required. The cost recovery process is
described further in Chapter 12, Cost Recovery.

Aldiough it is difficult to  describe a typical Superfund site, the timeline in
Exhibit 1-1 fairly depicts the general flow of enforcement and response
activities. More detailed information about the Agency's expectations
regarding how long each activity should take is available in OSWER's
Superfund/Oil Program Implementation Manual for the current fiscal year.
The periods set forth in the manual represent overall planning goals for the
entire Agency as set forth in the Superfund Comprehensive Accomplish-
ments Plan (SCAP).  Individual site conditions may lead to longer or
shorter durations for each activity. RPMs should consider both the SCAP
planning durations and site-specific conditions in developing an overall site
management plan.

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                                                                                                1-13
1.4
1.4.A  Other Federal
               Agencies
Key Players

The Superfund enforcement program requires close coordination among
many different players in EPA, other federal agencies, states, and tribes.
This handbook, however, focuses mainly on the roles played by technical
enforcement staff. Although these roles vary greatly among the regions,
they generally include initiating negotiations, settlements, and cost recovery
actions, and taking the lead in overseeing PRP response actions.
The RPM plays the lead role in planning and coordinating site remediation.
To achieve programmatic objectives, the RPM must have effective plans and
be a team builder and leader.  In addition to personnel from federal agen-
cies, states, and tribes, EPA regional staff (i.e., RPMs managing Fund-lead
sites, community involvement staff, and regional counsel) may play active
planning and coordination roles. In regions where enforcement and
remedial  responsibilities are divided, RPMs on Fund-lead sites may become
involved  in enforcement activities when the sites are ready for RD/RA
negotiations, or they may become involved in litigation for cost recovery.
Regional attorneys act as the region's primary legal advisors whenever
enforcement action is taken at a site.  They often take the lead in negotia-
tions with PRPs, review information exchanges between EPA and PRPs, and
are the primary communication link between the Agency and DOJ when
EPA sues the PRPs for either site cleanup or cost recovery.
At Headquarters, two major offices participate in the program. Within the
Office of Solid Waste and Emergency Response, the Office of Emergency
and Remedial Response is responsible for NPL listing and Fund-financed
removal and remedial actions. Within the  Office of Enforcement and
Compliance Assurance, OSRE takes the lead in managing the overall
Superfund enforcement program. This includes developing budgets and
out-year  forecasts, managing die SCAP process, developing policy and
guidance, and providing technical assistance and coordination when
necessary. OSRE also provides legal advice and coordination in all formal
enforcement actions, especially judicial cases. In major cases, OSRE reviews
case referral packages before they are sent to DOJ.  It also comments on
precedent-setting settlements. OSRE consists of the Policy and Program
Evaluation Division (PPED) and the Regional Support Division (RSD).
PPED generally takes die lead in evaluating enforcement program activities
and developing policy and guidance, while RSD takes the lead in support-
ing the regions in enforcement actions and reviewing settlements.

DOJ has a major role in the Superfund enforcement program. DOJ is
involved  in any enforcement action that must be filed in court and serves as
a resource in all negotiations that may result in a CD. DOJ develops and
presents legal positions that explain the Agency's goals to PRPs and the
courts and provides the only communication between EPA and the courts
regarding site-specific litigation.  In addition, DOJ is EPA's official represen-
tative in negotiations that take place while  a case is pending before a court.

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 1—14     Introduction
1.4.B
States and
      Tribes
1.4.C
     Natural
  Resource
   Trustees
As noted earlier, DOJ also must approve any claim that is settled, whether
by CD or by AOC, where total response costs at the site exceed $500,000.
Other federal agencies, such as the U.S. Coast Guard and the United States
Army Corps of Engineers (USAGE), may become involved in the program
when their technical expertise is required.  For example, USAGE has
extensive expertise in the management of large-scale construction projects
and therefore can be helpful in the management of RAs.

The role of the states and tribes in the Superfund program is substantial and
increasing. Today states and tribes are involved  in Superfund as early as die
site assessment phase, usually participate in the development of the ROD,
and may participate in settlement negotiations widi  PRPs.  In addition,
states and tribes may take a lead role at a site by negotiating directly with
the PRPs and by issuing orders under state/tribal legal authority.

At any site where natural resources may have been damaged, EPA must
coordinate with the trustee of diose resources. The trustee may be a federal
department or agency, such as die Department of the Interior, die National
Oceanic and Atmospheric Administration, or the Department of Agricul-
ture, a state agency designated by the governor, or a combination of both
federal and state trustees for the site. EPA notifies natural resource trustees
of settlement negotiations with PRPs and allows trustees to participate in
negotiations regarding matters within their domain.

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                                                                                          1-15
1.5
1.5. A     Emergency
         Planning and
           Community
       Right-to-Know
                     Act
1.5.B
Oil  Pollution
            Act
1.5.C
       Federal
     Facilities
Additional  Enforcement Resources
This handbook does not address enforcement issues specific to the emer-
gency release notification provisions of CERCLA section 103 or to Federal
Facilities. Available resources that address these specific issues are briefly
highlighted below.

A detailed discussion of enforcement of CERCLA section 103 and Emer-
gency Planning and Community Right-to-Know Act (EPCRA) sections 302
to 312, which concern emergency planning, notification, and right-to-
know, can be found in die Enforcement Reference-Manual for EPCRA
Sections 302, 303, 304, 311, and 312, and CERCLA section 103 finalized
by die former Office of Waste Programs Enforcement on August 8, 1990.
Numerous administrative enforcement actions have already been brought
against companies for failure to report releases in a timely manner. RPMs
and On-Scene Coordinators who are aware of potential violations should
contact dieir regional EPCRA enforcement coordinator for further assis-
tance and information.
The Superfund Docket retains copies of a periodic publication, Update on
Implementation of die Oil Pollution Act  of 1990.  A particularly helpful
overview of die statute and its implementation by the Agency can be found
in EPA Publication No. 9360.8-OIFS, OPA Q's & As: Overview of the Oil
Pollution Act of 1990 (December 1991), also available dirough the Super-
fund Docket. A number of administrative actions  have been brought
seeking die higher penalties available since die enactment of OPA for
violations of CWA section 311 regulations and for prohibited discharges of
oil and hazardous substances. Judicial actions proposing millions of dollars
in penalties have been initiated for more serious violations of CWA
section 311.

The Federal Facilities Enforcement Office in Headquarters has prepared
several guidance documents and has develbped model provisions for
CERCLA Federal Facilities agreements. A useful reference and guidance
document on Federal Facilities is OSWER Directive 9992.4, Federal
Facilities Hazardous Waste Compliance Manual (January 9,  1990).

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1-16    Introduction

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2. Removals

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                                                                            2-i
                        Chapter 2  Removals


2.1   Description of Activity	1

      2.1.A   Introduction	1
      2.1.B   Definition	1
      2.1.C   Authority	3
      2.1.D   Types of Removals	3
      2.1.E   Removal Activities	3
      2.1.F   Statutory Limitations and Exemptions	4
      2.1.G   Administrative Record and Public Participation	5
      2.1.H   Written Response	7
2.2   Procedures and Interactions	8

      2.2.A   PRP Search	8
              2.2.A.1   PRP Response Policy	8
              2.2.A.2   PRP Search Strategy	8
              2.2.A.3   Emergency Situation	8
              2.2.A.4   Time-Critical Situation	10
              2.2.A.5   Non-Time-Critical Situation	10
              2.2.A.6   All Removals	10
              2.2.A.7   PRP Search Completion	11
      2.2.B   Enforcement and Negotiations Planning	11
              2.2.B.1   Site Lead	11
              2.2.8.2   Enforcement Strategy Addendum to Action Memorandum	12
      2.2.C   PRP Notice	12
              2.2.C.1   Notification in Emergency Situations	13
              2.2.C.2   Notification in Time-Critical Situations	15
              2.2.C.3   Notification in Non-Time-Critical Situations	15
      2.2.D   AOC Negotiations and UAO Issuance	15
              2.2.D.1   Administrative Orders on Consent	16
              2.2.D.2   Unilateral Administrative Orders	17
              2.2.D.3   Model UAO and AOC	17
              2.2.D.4   issuance of UAOs	20
              2.2.D.5   Activation of Fund During AO Issuance	21
              2.2.D.6   Replacement of UAO with AOC	21
              2.2.D.7   Enforcement of AO	21
      2.2.E   PRP Oversight	,	22
      2.2.F   Criminal Investigation	22
      2.2.G   Community Involvement	,	22
              2.2.G.1   Community Involvement Plan	23
              2.2.G.2   Community Involvement Activities	23
      2.2.H   Applicable or Relevant and Appropriate Requirements	24
2.3   Planning and Reporting Requirements	25

      2.3.A   Contractor Support	25
      2.3.B   Information Management Systems	25

-------
 2—ii    Removals
2.4   Potential Problems/Resolutions	32
      2.4.A   Civil Investigator Support	32
      2.4.B   Determining PRP Financial Viability	32
      2.4.C   Use of Information Request Letters	32
2.5   Activities Checklist	33

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                                                                                             2-1
                              Chapter 2  Removals
2.1
2.1.A   Introduction
2.1.B
Definition
Description of Activity

This chapter discusses enforcement activities associated with removal
actions. Generally, removal activity, including activity to secure and oversee
Potentially Responsible Party (PRP) removal actions, is managed by On-
Scene Coordinators (OSCs).  This chapter was written primarily to assist
OSCs in planning and conducting enforcement activities.  However,
depending on die particular circumstances at a site, other program person-
nel may assume lead roles in removal enforcement activities. At sites where
remedial activity is ongoing, the Remedial Project Manager (RPM) may play
a key role in securing and overseeing PRP removal response. In recent years,
there has been an increase in RPM oversight of removal activities, particu-
larly at National Priorities List (NPL) sites and at PRP-lead non-NPL sites.
For convenience, only die term "OSC" is used throughout diis chapter,
although die information is die same for  RPMs when appropriate.
Exhibit 2-1 provides a broad overview of die removal enforcement process.
References
Office of Solid Waste and Emergency Response (OSWER) Directive
9360.3-06, "Removal Enforcement Guidance for On-Scene Coordinators"
Superfund Removal Procedures (April 6, 1992).
Note: This document is one of a series of stand-alone volumes relating to
die removal program. The following six of 10 volumes have been completed
as of diis publication of die Enforcement Project Management Handbook:
1) Action Memorandum Guidance; 2) Removal Enforcement  Guidance for
On-Scene Coordinators; 3) Public Participation Guidance  for  On-Scene
Coordinators: Community Relations and the Administrative Record; 4)
Removal Response Reporting: Pollution Reports (POLREPS)  and OSC
Reports; 5) Guidance on die Consideration of ARARs during  Removal
Actions; and 6) Guidance on Conducting Non-Time-Critical  Removal
Actions under CERCLA.

Removal actions are defined in section 101(23) of die Comprehensive
Environmental Response, Compensation, and Liability Act (CERCLA) to
include "die cleanup or removal of released hazardous substances from the
environment, (and) such actions as may be necessary taken in  die event of
the threat of release of hazardous substances into die environment...."  This
definition also includes actions necessary  to accomplish the following:

   •   Monitor, assess, and evaluate die actual or threatened release.
   •   Dispose of removed material.
   •   Protect public health or welfare and the environment from an actual
      or threatened release.
   •   Investigate and gather information (as authorized by section 104(b)
      of CERCLA).

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  2-2
Removals
2-1    Overview of Removal Enforcement Activities' Relationship
        to Response Actions*
                                                Discover Actual
                                             or Threatened Release
                                         Assess Removal Action Options/
                                            Preliminary PRP Search
                                         Begin Administrative Record File
                                              Notify Known PRPs
                                             (Orally or in Writing)
                                           Follow Up on Early Search
                                             Activities and Notice
                                          Develop Action Memorandum
                                          with Enforcement Addendum
                                     YES
1

Notify the State
i
Issue Notice
(Possibly with Draft AOC)
4
                     Conduct Negotiations
               I  Sign AOC  I  I   Issue UAO
               L
        Oversee Removal Action
                      Make Administrative
                      Record Available to
                  Public/Public Comment Period
                 Respond in Writing to Significant
                         Comments
                                                                  NO
                                                                 Obtain Approval for Use of Fund
                                                                 Initiate Fund-Financed Removal
                                                                           Action
    Make Administrative
    Record Available to
Public/Public Comment Period
                                                     Respond in Writing to Significant
                                                              Comments
                                                        Review Potential for Cost
                                                              Recovery
               •This general overview of removal enforcement may not apply in all situations, especially emergencies.

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                                                                                                 2-3
2.1.C       Authority
2.1.D
  Types of
Removals
2.1.E
  Removal
 Activities
Sections 104(a) and (b) also authorize responses and studies regarding
releases and threatened releases of pollutants or contaminants which present
an imminent and substantial danger to human health or welfare.

Section 104(a) of CERCLA authorizes the President to act, consistent with
the National Contingency Plan (NCP), to remove or to arrange for the
removal of any hazardous substance, pollutant, or contaminant if the
President deems it necessary to protect the public health, welfare, or the
environment. Section 104(b) of CERCLA authorizes studies and investiga-
tions and section 106 of CERCLA authorizes the President to order mea-
sures necessary to abate imminent and substantial endangerment to public
health, welfare, or the environment because of an actual or threatened
release of a hazardous substance. Section 106 also sets forth fines for any
person who, without sufficient cause, willfully violates or fails/refuses to
comply with a section 106 order. Specific standards and procedures for
implementing CERCLA and for conforming to other statutes are set forth
in the NCP.
EPA has classified removals into the following three categories based upon
the site evaluation and the urgency of the situation:

   •    Emergencies - removals where the release, or threatened release,
       requires that on-site cleanup activities begin within hours of the lead
       agency's determination  that a removal action is appropriate.
   •    Time-Critical - removals where, based  on die site evaluation, the
       lead agency determines that a removal action is appropriate and that
       there is a period of less than six months available before cleanup
       activities must begin on site.
   •    Non-Time-Critical (NTC) - removals where, based on the site
       evaluation, the lead agency determines that a removal action is
       appropriate and that there is a planning period of more than six
       months available before on-site activities must begin.  The lead
       agency must undertake an Engineering Evaluation/Cost Analysis
       (EE/CA), or its equivalent, for NTC removals.
The urgency determination influences the amount of time that can be
devoted to a PRP search prior  to on-site action, negotiation length, die type
and timing of public participation, whether an EE/CA must be conducted,
and the extent of compliance widi other environmental statutes.

According to section 101(23) of CERCLA and section  300.415 of the NCP,
die response activities listed below may be appropriate removal actions in
certain situations. To the greatest extent possible, all removal activities
should be designed to reduce risk to human health and the environment.
This list is intended neither to limit response officials from taking other
actions deemed necessary under the circumstances,  nor to preclude the lead
agency from referring response actions to other appropriate federal or state
enforcement authorities.

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  2-~4     Removals
                                  •    Installation offences, warning signs, or other security or site control
                                      precautions where humans or animals have access to the release.
                                  •    Construction of drainage controls (e.g., run-off or run-on diversion),
                                      where precipitation or run-off from other sources (e.g., flooding)
                                      may enter the release area.
                                  •    Stabilization of berrns, dikes, or impoundments where needed to
                                      maintain the integrity of die structures.
                                  •    Installation of caps over contaminated soil or sludge, where needed to
                                      reduce migration of hazardous substances, pollutants, or contami-
                                      nants into soil, ground water,  or air.
                                  •    Use of chemicals and other materials to retard the spread of the
                                      release or to mitigate its effects where the use of such chemicals will
                                      reduce the spread of the release.
                                  •    Excavation, consolidation, or  removal of highly contaminated soils
                                      from drainage or other areas, where removal will reduce the spread
                                      of, or direct contact widi, contamination.
                                  •    Removal of drums, barrels, tanks, or other bulk containers that
                                      contain or may contain hazardous substances or pollutants or
                                      contaminants where it will reduce die likelihood of spillage, of
                                      leakage, of exposure to humans, animals or the food chain, or of fire
                                      or explosion.
                                  •    Containment, treatment, disposal, or incineration of hazardous
                                      materials where needed to reduce the likelihood of human,  animal,
                                      or food chain exposure.
                                  •    Provision of an alternative water supply where it will reduce the
                                      likelihood of exposure of humans or animals to contaminated water.

2.1 .F        Statutory   Section 104(c) of CERCLA specifies that Fund-lead removals may not
            Limitations   exceed either $2 million in cost or 12 months in'duration. The criteria for
          ,  _        ..        exceptions to diese statutory limits (which do not apply to PRP-lead
      and  hxemptions   removal actions) include the f0nowing.

                                  •    An immediate risk to public health, welfare, or die environment
                                      exists; continued response actions are immediately required to
                                      prevent, limit, or mitigate an  emergency; and such assistance other-
                                      wise will not be provided on a timely basis (commonly called an
                                      emergency exemption).
                                  •    A continued response action is otherwise appropriate and consistent
                                      with the remedial action to be taken (commonly called a consistency
                                      exemption).
                               OSCs who request an exception to the statutory limits on cost or duration
                               for a Fund-lead removal action should first ensure that all potential avenues
                               for securing PRP cleanup or funding for cleanup have been pursued.
                               Regions should carefully review all cost exception requests for Fund-lead
                               removal actions for evidence of activity to secure PRP participation in the

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                                                                                               2-5
2.1.G Administrative
    Record and Public
          Participation
cleanup. Headquarters reviews emergency cost exceptions over six million
dollars. The following enforcement-related information should be included
in the exemption request Action Memorandum:

  •   Extent of the PRP search.
  •   Whether PRPs have been identified.
  •   Financial status of PRPs, if PRPs have been identified.
  •   Whether notice letters (special or general) have been issued.
  •   Whether previous negotiations have been held with the PRPs, and
      the results of those negotiations.
  •   Whether an Administrative Order (AO) has been issued to the PRPs
      or previous demands for reimbursement have been made.
  •   The Administrative Record (AR) index.
  •   Enforcement history of the site.
  •   Enforcement options, discussion, and recommendations.
  •   Any enforcement sensitive information should be included in the
      enforcement strategy addendum to the Action Memorandum.
References
OSWER Directive 9360.3-06, "Removal Enforcement Guidance for On-
Scene Coordinators" Superfund Removal Procedures (April 6, 1992).
National Oil and Hazardous Substance Pollution Contingency Plan (NCP),
40 Code of Federal Regulations (CFR) section 300.415 ("Removal
Actions") (1990).
OSWER Directive 9360.3-01 "Action Memorandum Guidance" Superfund
Removal Procedures (September 26, 1990).

Section 113(k) of CERCLA requires that the Agency establish an Adminis-
trative Record (AR) for selection of CERCLA response actions. The AR is
the body of documents upon which the Agency bases its selection of a
response action. Section  113(k)(2) of CERCLA requires that EPA develop
procedures for appropriate participation of interested parties in the develop-
ment of an AR for a removal action. The AR should consist of documents
that the Agency considered or relied on to select the response action and,
when appropriate, should include documents demonstrating the public's
opportunity  to participate in the selection of the response action (more
information  on the AR is contained in Chapter 15, Records Management).
Among the key components of the AR are the Action Memorandum and
underlying inspection reports and data.
Section 300.800 of the NCP and its associated preamble discuss AR and
public participation requirements. Exhibit 2-2 depicts the various activities
EPA considers as requirements when establishing an AR for each of the
removal categories defined earlier in this chapter.  The requirements for each

-------
 2-6    Removals
2-2   Administrative Record Requirements for Removals and Community
      Involvement
Activity
Designate Spokesperson
Notify Affected Citizens
Establish Administrative
Record (AR) File
Make AR available when
EE/CA approval memorandum
is signed
Make AR available within
60 days of initiation of
site activity
Place AR in central location
Place AR at or near facility
Notify public of AR
Provide a comment period of
not less than 30 days from
date AR is available
Prepare written response to
significant comments
Conduct community interviews
Prepare Community
Involvement Plan
Time-critical
Where on-site activity
lasts less than 120 days
(includes emergencies)
X
X
X

X
X
X*
X
x»*
X


Time-critical
Where on-site activity
lasts more than 120 days
X
X
X

X
X
X
X
X
X
X
X
Non-time-critical2
X
X
X
X

X
X
X
X
X
X
X
Removals where, based on the site evaluation, the lead agency * The AR file for emergency removal actions
determines that a removal action is appropriate and that there where on-site activities cease within 30
is a period of less than six months available before on-site days of initiation need only be available
activities must be initiated. for public inspection at the central location.
Removals where, based on the site evaluation, the lead agency "Where appropriate.
determines that a removal action is appropriate and that there
is a planning period of more than six months available before
on-site activities must begin.

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                                                                                              2-7
2.1.H
   Written
Response
removal category differ to ensure that the AR does not unduly create delays
in emergency and time-critical removal actions.
The compilation of a complete and accurate record of the documents used
by the Agency in making its removal decision is crucial to the enforcement
process. Any review of EPA's removal decision will be limited to those
records contained in the AR.
References
NCP, 40 CFR section 300.800 ("Establishment of an Administrative
Record") (1990).
Office of Solid Waste and Emergency Response (OSWER) Directive
9833.3A-1, "A Final Guidance on Administrative Records for Selecting
CERCLA Response Actions" (Decembers, 1990).

A written response to significant comments received during a public com-
ment period should be included in the AR file along widi the comments.
The RPM or OSC should consult regional counsel when determining which
comments are significant and which are extraneous or intentionally inflam-
matory. The AR serves to document how public comments have been
considered during die decision-making process and to provide answers to
significant questions raised.
Reference
OSWER Directive 9360.3-06, "Removal Enforcement Guidance for On-
Scene Coordinators" Superfund Removal Procedures (April 6, 1992).

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 2-8
Removals
2.2
2.2.A
 PRP Search
2.2.A.1
            PRP
     Response
         Policy
2.2.A.2
            PRP
        Search
      Strategy
 2.2.A.3
   Emergency
     Situation
Procedures and Interactions

PRP searches are discussed in detail in Chapter 4, PRP Search, Notification,
and Information Exchange. The urgent nature of emergency removal
actions may require response initiation prior to an extensive PRP search that
goes beyond identifying the owner/operator. This section discusses PRP
searches relating to removal actions.
Reference
OSWER Directive 9834.6, Potentially Responsible Party Search Manual
(August 27,1987).

Where PRPs are known and able to perform the removal, EPA prefers that
they undertake the response action pursuant to a consent order. A PRP
investigation should be a part of the preliminary assessment that an OSC
conducts under section 300.410 of the NCP.  To the extent appropriate
under the circumstances, the OSC is to search further for responsible parties
and attempt to have them perform the necessary removal action. In addi-
tion, supplemental searches may be warranted during a stabilization action
for PRP takeover of cleanup and disposal and for cost recovery if the
removal is conducted with use of the Fund.
A PRP search strategy is important. As background to conducting removal
PRP searches, the general steps in die PRP search  process are described in
Chapter 4, PRP Search, Notification, and Information Exchange. The
Level of Effort (LOE) and amount of time expended on  die PRP search in
removals depend on the amount of time between  discovery and die execu-
tion of the Action Memorandum, die  urgency of the release situation, the
likely expenditures on die removal, and available resources. For descriptive
purposes, Exhibit 2-3 shows how die LOE tends  to vary with urgency.
Information gathered during die PRP  search, such as diat indicated by die
activities in Exhibit 2-3, is essential to  support an  enforcement strategy at
Superfund sites.
In many removal situations, effective PRP searches depend partially on die
presence in die field of die personnel conducting die search. To maximize
the advantage of having much of die PRP research conducted in die field,
and as a matter of standard procedure, die Enforcement Project Manager
(EPM), if different from die OSC, should consult with the OSC on die
PRP search as well as on other aspects  of the case.  It is important that
search activities be well-documented even if the result is that no viable PRPs
are identified.

In emergency situations where the PRPs are not immediately known, die
OSC usually conducts the PRP search in two phases. Initially, streamlined
procedures consisting of verbal inquiries of municipal officials and reason-
ably available on-site sources, as well as reviews of readily available site
records, are implemented. Verbal inquiries should be documented and
obvious visual information linking possible PRPs to  the site should be
recorded as soon as practicable. An expedited work  assignment may be used

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      2-3     PRP Search Activities
                                        Urgency of the Situation
                                                                                                    2-9
              Emergency
                                        Time-Critical
                                  Non-Time-Critical
r
o
st
 V
  Preliminary search*


  •   Review readily available
      site records

  •   Consult municipal officials

  •   Conduct on-site interviews

  •   Gather visual evidence
      from site

*Follow up search conducted later
Review readily available
site records

Consult municipal officials

Conduct on-site interviews

Gather visual evidence
from site

Review relevant site
records

Conduct off-site interviews

Conduct a title search
(coordinate with civil
investigator)

Document additional
evidence linking PRP to
site (e.g., photos)

Issue 104(e) information
requests

Use START for preliminary
activities
Review readily available
site records

Consult municipal officials

Conduct on-site interviews

Gather visual evidence
from site

Review relevant site
records

Conduct off-site interviews

Conduct a title search
(coordinate with civil
investigator)

Document additional
evidence linking PRP to site
(e.g., photos)

Prepare baseline PRP
search report

Issue 104(e) information
requests regarding
generators and
transporters

Prepare interim final PRP
search report
             Note: Example is for descriptive purposes only; some work may follow response actions.

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  2—10    Removals
2.2.A.5 Non-Time-Critical
                 Situation
                                through the Superfund Technical Assistance and Response Team (START)
                                or Enforcement Support Services (ESS) contract vehicles. The OSC should
                                prioritize and expedite certain search activities to support the notice,
                                negotiation, and AO process before the removal begins. The AO process
                                results in issuance of either an Administrative Order on Consent (AOC) or
                                a Unilateral Administrative Order (UAO). Once die site is stabilized, a
                                second, more extensive phase of PRP identification should be conducted.
                                This phase of the PRP search may support cost recovery efforts and partial-
                                work orders. Depending on response expenditures, available resources, and
                                die site strategy, the Civil Investigator (CI) and contractor (e.g., ESS) may
                                provide assistance on die follow-up search.

2.2.A.4       Time-Critical    In time-critical situations, the OSC should follow procedures diat expand
                  Situation    upon the PRP search activities discussed for emergency situations.  Tide
                                searches and on-site interviews also should be undertaken (OSCs should
                                coordinate widi CIs to determine what information needs to be obtained).
                                OSCs also may use 104(e) information requests that include questions
                                pertaining to generators and financial viability to obtain additional evidence
                                during the PRP search.

                                At a minimum, the OSC should conduct die same preliminary PRP search
                                measures discussed above. In addition, depending on the level of
                                expenditures and the amount of time available, the OSC may take
                                additional steps, such as further questioning of persons on or near the site
                                and ori-site investigation for names of PRPs (e.g., records review). After the
                                OSC has made a preliminary effort to identify PRPs, he or she may request
                                regional enforcement personnel to conduct a PRP search to  identify
                                generators and transporters.  A baseline report, as described  in Chapter 4,
                                PRP Search, Notification, and Information Exchange, should be prepared,
                                and decisions should be made on specialized tasks. Where PRPs do not
                                conduct the removal, an  interim final PRP search  report will be necessary.
                                ESS contracts, START contract support, or CIs may be used to support
                                PRP searches in NTC situations.  Other support may be available through
                                the use of 8(a) (i.e., minority or disadvantaged contractor set-aside)
                                contractors. OSCs also may request the assistance of the National
                                Enforcement Investigations Center (NEIC) in conducting a PRP search.

2.2.A.6                All    OSCs should be prepared to obtain the necessary approval to conduct a
                Removals    Fund-lead response if no PRPs can be identified. However,  die initiation of
                                a Fund-lead response does not mean diat the search for PRPs is
                                discontinued.  During a Fund-financed removal, OSCs should fully
                                document possible evidence of liability at die site in anticipation of cost
                                recovery litigation. Documentation activities include photographing the
                                site and any other items found or removed from die site, such as drums, in
                                order to verify site conditions or die source of material, and  obtaining
                                evidence of PRP links to die site, such as site records identifying  owners/
                                operators and generators. OSCs may utilize START contractors  in
                                gathering  information that helps establish a party's status as a PRP.  Efforts

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                                                                                               2-11
2.2.A.7
         PRP
      Search
Completion
2.2.B   Enforcement
                      and
          Negotiations
               Planning
2.2.B.1        Site Lead
to locate PRPs should continue throughout the removal action to support
cost recovery efforts and possible PRP involvement in any future response
actions.

As noted in Chapter 4, PRP Search, Notification, and Information
Exchange, PRP search reports usually should not be viewed as complete
PRP searches. In most multi-party cases where substantial funds are spent,
specialized tasks also will be utilized to provide adequate information
beyond the baseline report. Exhibit 2-3 shows the information that the PRP
search effort should include or yield to meet the target of a completed PRP
search.

After initiating the search for PRPs, but prior to issuing notice, decisions
must be made regarding the site lead and enforcement strategy.  Careful
planning during this phase of die removal helps ensure that negotiations and
other enforcement activities will be conducted with greater success.


When viable PRPs have been identified, every attempt should be made to
secure PRP conduct of the removal activities.  However, site lead decisions
must be based on die exigencies of the particular situation. Primary factors
to be considered in making a site lead decision include die following:

  •   Immediacy of the need to respond.
  •   Strength of die case on PRPs' liability.
  •   Financial viability of the PRPs.
Other criteria to be considered include:

  •   Ability and need to precisely define the removal.
  •   Unique technical problems, including oversight.
  •   Technical capability of the PRP to conduct the removal.
  •   Willingness of PRPs to conduct the removal (lack of willingness does
      not preclude issuing a UAO).
  *   Availability of the Fund.
  •   Cost of the removal.
In addition, consideration should be given to the workload of the regional
staff and the extent of oversight activities.
A takeover or lead change  may occur after an action has started and credit
has been given.  Typically,  this occurs when a settlement with a PRP is
reached after the action has started. When circumstances warrant passing
the lead to a PRP during a phase of cleanup, steps should be taken to
minimize potential causes  for delay.  A policy has been established that
limits lead changes from EPA to PRPs in the middle of a phase of the
Superfund process, except in situations where the change will not cause
undue delays.

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  2—12    Removals
 2.2. B.2   Enforcement
                 Strategy
           Addendum to
                    Action
           Memorandum
2.2.C
                   Reference
                   OSWER Directive 9800.1-01, "Limiting Lead Transfers to Private Parties
                   During Discrete Phases of the Remedial Process" (November 14, 1991).

                   Except in emergencies, prior to initiating the PRP notification process the
                   OSC should prepare a brief strategy that details the information and
                   activities needed to successfully plan a removal action.  An "Enforcement
                   Sensitive" attachment that includes information on the enforcement
                   strategy, PRP response, and previous actions should accompany the Action
                   Memorandum for the site. If time permits, the enforcement staff should
                   undertake the following activities when preparing for negotiations with
                   PRPs:

                     •   Review results of preliminary PRP search efforts for adequacy and
                         accuracy, and supplement as necessary.
                     •   Indicate if notices have been sent, to whom, and with what response.
                         Also, describe planned notice activities and their implementation
                         schedule.
                     •   Review problems posed by site.
                     •   Develop clear Statement of Work (SOW) consistent with draft
                         Action Memorandum.
                     •   Prepare draft AO.
                     •   Develop negotiations strategy.
                   Preparing a brief negotiations strategy prior to the initiation of negotiations
                   helps ensure that the OSC has considered various aspects of the situation
                   which could affect removal activities. For example, at a drum site, the OSC
                   should attempt to establish the number of drums, how many are leaking,
                   how many are overpacked, and any other information that would affect
                   plans for removal activities.  Obtaining this information also prepares the
                   OSC for die first round of negotiations with the PRPs, which can be
                   jeopardized by inadequate preparation and unclear cleanup goals.  A well-
                   written and well-defined SOW will help to clearly present cleanup goals to
                   the PRPs and provide the foundation for EPA to obtain goods and services
                   on time and within budget. The SOW should be attached to the  notice
                   letter that advises PRPs of dieir potential liability and possibly initiates
                   negotiations with EPA for conducting the removal.
                   References
                   OSC Warrant Training Course:  Participants Manual (Winter 1996).
                   OSWER Directive 9360.3-01  "Action Memorandum Guidance" Superfimd
                   Removal Procedures (September 26, 1990).

PRP Notice    Where PRPs have been identified, EPA's general policy is to notify PRPs of
                   their potential liability, advise diem of the intended response action, and
                   afford them opportunities to comment on die removal action. Where the
                   circumstances allow, there often will be two notice letters: notice of

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                                                                                                2-13
2.2.C.1  Notification in
              Emergency
               Situations
potential liability, and notice of an opportunity to negotiate to conduct the
removal. In emergencies and some time-critical removals, these notice
letters and the negotiations processes may be combined. Moreover, in
emergencies, the notification process may involve oral notification of
identified PRPs, which should be confirmed with a written notice letter.
The content of notices varies depending on whether the following are true:

   •   The notice will be used simply to notify PRPs of dieir potential
      liability; it may further advise the PRPs of an action EPA has already
      taken or is about to take.  Regions have found that notices specifying
      the work to be performed have proven successful in getting the PRPs
      to do the cleanup.
   •   The notice will be used to encourage a private party response
      through negotiations.
   •   The notice will be used as a mechanism for invoking die section
      122(e) special notice procedures which provide for negotiations with
      a formal moratorium on response.  Emergency and time-critical
      removals do not follow special notice procedures due to the urgency
      of these situations.
Where possible, the regional program office should send notice letters to all
known PRPs prior to the initiation of the removal action. The OSC must
consult  and coordinate with regional enforcement staff in notifying PRPs of
their potential liability and requesting removal actions by the PRPs. Except
in limited emergency situations,  it  is inappropriate to provide initial notice
by a UAO. Exhibit 2-4 identifies  the steps involved in securing PRP
action.
References
Office of Site Remediation Enforcement (OSRE) Memorandum,
"Transmittal of Sample Notice Letters:  1) Demand; 2) General Notice; 3)
Special Notice; and 4) Follow-Up 104(e)"  (July 26, 1996).
OSRE Memorandum, "Transmittal of Sample Documents for Compliance
and Monitoring" (July 1, 1996).
OSWER Directive 9360.3-06, "Removal Enforcement Guidance for On-
Scene Coordinators" Superfund Removal Procedures (April 6, 1992).
OSWER Directive 9834.10-la, "Model Notice Letters" (February 7, 1989).
OSWER Directive 9834.10, "Interim Guidance on Notice Letters,
Negotiations, and Information Exchange" (October 19, 1987).

In emergencies, die OSC may notify known PRPs verbally.  The regional
program office then should prepare and send a General Notice Letter
(GNL)  to the PRPs confirming die verbal notification of liability and any
request  for response. The regional program office should send the notice
letter as soon as possible following  die verbal notification. Although a
written  notice letter typically precedes die initiation of an AO, diis is not
necessary in emergencies, given the limited time available.

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 2-14    Removals
2-4   Securing PRP Action for Removals
                                   Regional Technical Enforcement
                                             Personnel
                                      Determine That Response
                                     Activities May Be Necessary
                                   Regional Technical Enforcement
                                             Personnel
                                           Identify PRPs
    Regional Technical Enforcement
             Personnel
    Determine Extent of Continued
        Search and Followup
                                              Initial
                                            PRP Search
                                            Successful?
                        YES.
                               Regional Technical Enforcement
                                        Personnel
                                 Continue Search Followup
                                         Activities
    Regional Technical Enforcement
             Personnel
            Identify PRPs
        Regional Administrator
             or Delegate
             Issue UAO
        Initiate Fund-financed
      Response Followed by Cost
    Recovery or Initiate Section 106
      Litigation to Enforce Order
Regional Technical Enforcement
         Personnel
  Notify (oral/written) PRP of
      Potential Liability
                                                1
                                      Regional Program Office
                                    Prepare Action Memo and AR;
                                    Notify PRP of Required Action
                                   Regional Technical Enforcement
                                            Personnel
                                    Notify/Request PRP to Conduct
                                   Removal and Negotiate with PRP
                                                                      YES
      Hold Conference with PRP
             PRP Agree to
             Terms of AO?
                                            PRP/Region
  Enter into Consent Order or
  Perform Removal Based on
   Unilateral Agreement**
            1
                                   Regional Administrator
                                        or Delegate
                                                                            Issue AOC
                                            PRP/Region
                                          Initiate Cleanup
         OSC/RPM
                                        Monitor PRP Cleanup
** UAO does not have to be
  converted to AOC for PRP to
  initiate response actions.

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                                                                                               2-15
2.2.C.2
Notification in
  Time-Critical
     Situations
2.2.C.3
Notification in
     Non-Time-
         Critical
     Situations
2.2.D              AOC
          Negotiations
               and UAO
                Issuance
In time-critical situations, the OSC may initially notify PRPs verbally and
follow the same procedures as in an emergency. Whenever possible, it is
preferable that notice letters be issued before the removal action. Moreover,
the OSC should'conduct a review of and follow up on preliminary PRP
search activities  to ensure all reasonably known PRPs have been identified.
The extent to which PRP search activities may be reviewed and upgraded is
dependent on the urgency of site conditions.

In NTC situations, procedures for obtaining PRP response are more likely
to involve formal negotiations, which may be invoked by issuance of a
special notice or section 122(e) letter. First, the PRP search should be
reviewed and any outstanding leads pursued during die drafting of die
proposed EE/CA. The PRP search review and follow-up activities should
include the use of section 104(e) information requests.  Notice letters should
be issued to PRPs and, depending on the response,  an Agency team of
regional technical and legal personnel should quickly schedule negotiations
aimed at securing PRP cleanup within an established period of time.
The use of the special notice procedure should only be considered for NTC
removal actions  because the issuance of a special notice triggers a 60-120 day
moratorium  on  EPA action and a specific time frame for negotiations.
Therefore, CERCLA section 122(e) special notice procedures should be
used only for those removals where site activity need not commence for 60-
120 days following issuance of die notice letter.

The site lead determination and enforcement strategy will determine the
general approach to negotiating activity at the site.  Where negotiations are
part of the strategy and when time allows, die preferred approach to
negotiations  is to send die PRPs a notice letter specifying die work to be
done and establishing a time frame for negotiation of an AOC.  Where
possible, it is advantageous to send the PRPs a site-specific AOC widi the
letter or as soon thereafter as possible. It is appropriate to advise PRPs that
EPA may issue a UAO if they do not consent to an AOC.  For leverage in
negotiating an AOC, it is often helpful to have a signed Action
Memorandum;  however, regions should ensure adequate funding is available
for die removal  action before signing the memorandum. A draft Action
Memorandum may also be a helpful AOC negotiation tool. The preferred
outcome of the  negotiations is an AOC.
The time period for negotiations should reflect the exigencies of site
conditions, die nature of die work being discussed, and the response of the
PRPs to prior communications. In NTC situations where EPA has issued a
special notice and the PRP has responded with a good faidi offer, an
automatic 60-120 day moratorium on EPA activity at the site establishes a
fixed period during which negotiations may occur.
Regions may consider the use of a detailed technical SOW  in negotiations
and/or as an attachment to the order. It has been EPA policy to use
Alternative Dispute Resolution (ADR) in the PRP negotiation process when
necessary and appropriate.

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 2—16    Removals
                               Steps enforcement staff may take when conducting negotiations with PRPs
                               include the following:

                                 •   Meet with PRPs.
                                 •   Negotiate language in the AO.
                                 •   Consider use of ADR in negotiations.
                                 •   Negotiate technical points and schedules in the work plan.
                                 •   Enter into an AOC, to which PRPs agree and sign, or issue a UAO
                                     which PRPs do not sign.
                               Due to the time-sensitive nature of removal actions, the negotiation process
                               is often accelerated, and certain steps described above may be eliminated.
                               The negotiations schedule should be specified to PRPs.
                               The time period needed to conduct negotiations and sign an AO may vary
                               from days to months, depending upon the specific circumstances. For
                               simple removals, the order may detail work to be done.  For more complex
                               removals, the order often  provides the SOW for later response activities and
                               requires the PRP to draft  the detailed work plan as a deliverable if the OSC
                               has  not already written the work plan. This enables the AOC to be signed
                               and the PRP to initiate stabilization measures at the site before a completed
                               work plan has been agreed upon.
                               In some cases, regional personnel may find that PRPs wish to negotiate to
                               conduct only a portion of the removal action. The PRPs may be financially
                               or technically unable to completely address some of the contamination at
                               the site.  It may be appropriate to have the PRPs undertake simple tasks
                               (e.g., security) as well as others that diey can accomplish. Where the PRPs
                               appear to be incompetent or lack substantial resources, it is often preferable
                               to initiate a Fund-lead response. At some removals, there may be viable
                               PRPs that are willing to setde by conducting only a portion of the work so
                               that EPA will pursue other PRPs for the remainder by unilateral order and/
                               or cost recovery action. Orders issued in these situations are known as
                               "carve out" orders. It should be noted that "carve out" orders may not be
                               appropriate in a number of situations due to time, resources, and legal
                               implications (e.g., extent of contribution protection).
                               References
                               OSWER Memorandum,  "Use of Alternative Dispute Resolution in
                               Enforcement Actions" (May 1995).
                               OSWER Directive 9833.1, "Issuance of Administrative Orders for
                               Immediate Removal Actions"  (February 21, 1984).

2.2.D.1 Administrative    As noted earlier, die preferred product of negotiations is a CERCLA section
               Orders on    106(a) AOC, also known as a consent order.
                 Consent

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                                                                                               2-17
2.2.D.2        Unilateral
          Administrative
                    Orders
2.2.D.3
   Model
UAO and
     AOC
In emergency and some time-critical situations, regional staff may find it
necessary to bypass negotiations and immediately issue a UAO. In addition,
if viable PRPs fail to respond appropriately to the verbal/written notification
and negotiation process described above, regions should pursue issuing a
CERCLA section 106 UAO unless there is good reason not to issue an
order. The following criteria must be satisfied to issue an order:

   •   Potentially liable parties have been identified.
   •   There is evidence of a release or threat of a release of a hazardous
      substance.
   •   There is evidence that the release is from a facility.
   •   Site conditions may present an imminent and substantial endanger-
      ment.
   •   The affected state has been notified.
   •   The removal is not inconsistent with applicable law (see CERCLA
      and the NCP).
In some situations, diere may be reasons for.not issuing a UAO to certain
PRPs. For example, issuing  a UAO to all identified PRPs may constitute
more than the largest manageable number a region can handle within the
constraints of its limited resources.  A region should also take into account
PRPs who have already performed response work, especially in cases where
work performed may be equivalent to a PRPs "fair share."
UAOs are an effective way to achieve PRP response in situations where there
is insufficient time to pursue thorough negotiations, or if the PRPs are
unwilling to conduct the cleanup pursuant to an AOC. Also, UAOs usually
contain a provision requiring notice of intent to comply within a specified
period which enables the OSC to determine die need for a Fund-lead
response.
References
OSRE Memorandum, "Documentation of Reason(s) for Not Issuing
CERCLA Section 106 UAOs to All Identified PRPs" (August 2, 1996).
OSWER Directive No. 9833-0-1A, "Guidance on CERCLA Section 106(a)
Unilateral Administrative  Orders for Remedial Designs and Remedial
Actions" (March 7, 1990)  (Although not specific to removals, this guidance
contains useful, generally applicable guidance).

In an effort to streamline the order process and  to ensure that removal
orders represent a unified Agency position for removal actions, model
removal orders have been developed.  Although not binding upon the
regions, the model orders contain easily understandable and standard
language, so many sections require litde or no additional information.
However, die model orders provide enough flexibility for site-specific
factors.

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2—18    Removals
                              The model AOC and UAO were each designed to reach specific goals. The
                              model AOC is designed to encourage settlement, and thus contains
                              incentives to reach diat goal that are absent in the model UAO. In certain
                              sections, however, die orders contain similar or identical language.
                              The following sections are found in bodi the model UAO and AOC:

                                •   Jurisdiction and General Provisions - The sections describe the
                                    legal authority for issuing die order.
                                •   Parties Bound - This section lists those parties related to the respon-
                                    dents who are subject to die terms of die order.
                                •   Definitions - Terms which are ambiguous or may become a source of
                                    future confusion or challenge by die PRPs should be defined.  Both
                                    orders contain diis section as optional.
                                •   Findings of Fact - The order contains die site-specific facts to
                                    provide background information and support an endangerment
                                    finding, i.e., identify die hazardous substance(s) present and the
                                    release or direat of release of the hazardous substance(s) diat exist and
                                    diat may present an imminent and substantial endangerment to the
                                    public health or welfare or die environment.  In addition, where
                                    potentially liable parties are named in die order, facts should be
                                    provided to support such a finding. (See CERCLA section 107(a) for
                                    specific elements).
                                •   Conclusions of Law and Determinations - The legal determina-
                                    tions necessary to issue an order under section 106 are described in
                                    this section.
                                •   Order - This section contains many sub-sections specifying the work
                                    objectives and the general parameters for performing die cleanup.
                                    These include die following:
                                        Designation of contractor, work to be performed, healdi and
                                        safety plan.
                                        Quality assurance and sampling.
                                        Reporting.
                                        Access to property.
                                        Record retention.
                                        Off-site shipments.
                                        Compliance with other laws.
                                        Emergency response and notification of releases.
                                •   Authority of the EPA OSC - This section indicates diat die OSC is
                                    responsible for overseeing die implementation of the order.
                                •   Reservation of Rights -This section contains language indicating
                                    that EPA is  not prevented from ordering or taking odier actions
                                    necessary to protect public health and the environment.

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                                                               2-19
•   Other Claims - This section indicates that EPA is free to pursue an
    action against the PRPs not covered by the order or a person not
    party to the order for any liability under CERCLA, odier statutes, or
    common law.  However, the ability to bring subsequent actions is
    limited by die language in die Covenant Not to Sue section of the
    AOC.
•   Modifications - This section permits the OSC to make verbal and
    written modifications. The OSC can modify any plan, schedule,  or
    SOW with respect to a given order. For UAOs, any odier portion of
    the order may only be modified in writing by die EPA regional
    designee. Any odier requirement of die AOC may only be modified
    by mutual agreement of die parties.  Modifications should not be so
    extensive as to  generate a new order.
•   Notice of Completion - This section states that EPA will notify the
    respondent(s) in writing when die work specified by the order is
    completed, widi die exception of any continuing obligations re-
    quired by the order. If EPA determines that any removal actions
    have not been completed in accordance with die order, it will notify
    die respondent(s), provide a list of the deficiencies, and require that
    the respondent(s) modify die work plan to correct such deficiencies.
•   Insurance - The use of diis provision in an order is a  regional site-
    specific determination.  If used, it requires die respondent to obtain
    standard form business liability insurance.
•   Additional Removal Actions - Regional use of this section  is
    optional. It permits EPA to require that a respondent perform
    additional removal actions  not included in die EPA-approved work
    plan.
•   Severability - A court may invalidate a provision of die order.  If this
    action occurs, diis section requires die respondent to comply widi all
    odier provisions of die order.
•   Effective Date - This section contains die date the order was issued
    and die effective date of die order.
•   Reimbursement of Costs - The UAO  requires reimbursement of all
    response costs. The AOC requires reimbursement of past costs as
    well as oversight costs.
•   Post-Removal Site Control - The respondent is responsible for
    implementing post-removal site control activities.
The following sections are found specifically in the AOC:
•   Stipulated and Statutory Penalties  - The AOC provides for
    stipulated penalties in die event of noncompliance with die order.
    This provision is in addition to die language regarding statutory
    penalties.
•   Force Majeure - This section establishes procedures and standards
    under which respondents' compliance obligations may be delayed if
    certain types of events outside respondents' control occur.

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 2—20    Removals
                                  •   Covenant Not to Sue - Upon issuance of a Notice of Completion,
                                      EPA may provide the following covenants in the AOC: not sue for
                                      judicial imposition of damages; not seek civil penalties; not sue for
                                      recovery of response costs; and not take administrative actions for
                                      failure to perform removal actions agreed to in the AOC.
                                  •   Contribution Protection - The AOC provides that the respondents
                                      are entitled to contribution protection to the extent provided by
                                      section 113 of CERCLA. Contribution protection protects a settling
                                      party against lawsuits from non-settlors. The AOC will specify the
                                      breadth of the contribution protection  it provides.
                                  •   Indemnification - This section states that the respondent will not
                                      hold the United States responsible for damages, costs, or claims
                                      arising from an act or omission of respondent in carrying out an
                                      AOC.
                                  •   Financial Assurance - The respondent is required to provide peri-
                                      odic financial assurances. This section  is optional.
                                  •   Public Comment - Section 122(i)(2) requires that, at least 30 days
                                      before any settlement regarding past costs, EPA provide persons who
                                      are not parties to the settlement the opportunity to comment.
                                  •   Dispute Resolution - This section outlines the steps that will be
                                      taken should a disagreement over the implementation of die order
                                     • need to be resolved.
                               The following sections are found only in the UAO:

                                  •   Access to AR - This section, found in the UAO, informs the PRP
                                      that the AR file is available for review at the region.
                                  •   Notice of Intent to Comply - This section requires the respondent
                                      to indicate in writing whedier he/she intends to comply with the
                                      UAO.
                                  •   Opportunity to Confer - This section provides the respondent with
                                      the opportunity to request a conference with EPA in order to discuss
                                      information,  arguments, or comments  regarding the UAO.
                                  •   Enforcement Penalties for Noncompliance - This section para-
                                      phrases the statutory language found in CERCLA sections 106 and
                                      107 regarding violations of the order and penalties.
                               References
                               OSWER Directive 9833.06, "Model Administrative Order on Consent for
                               Removal Response Actions" (March 1993).
                               OSWER Directive 9833-07, "Model Unilateral Administrative Order for
                               Removal Response Activities" (March 1993).

2.2.D.4         Issuance   Regional enforcement staff should issue a UAO before Fund activation but
                 OT UAOs   after preparation of an enforcement action memo, whenever a PRP has been
                               identified (unless the PRP is non-viable), provided the criteria for site lead

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                                                                                              2-21
2.2.D.5       Activation
         of Fund During
            AO issuance
2.2.D.6    Replacement
            of UAO with
                     AOC
2.2.D.7    Enforcement
                    ofAO
are met, and the order is within regional resources. The OSC and other
regional personnel should continue the process of obtaining approval for a
Fund-financed action, provided that the PRP does not comply.
Reference
OSWER Directive 9360.3-01, "Action Memorandum Guidance" Superfund
Removal Procedures (September 26, 1990).

If site conditions warrant, the OSC should immediately initiate on-site
response activities while the AO process continues. Where appropriate, at a
convenient break in the response activities EPA may demobilize its
contractor and the PRP may assume responsibility for die remaining
activities required. In such cases, the AO should reflect diat EPA has
performed a specified portion of die work and that die PRP is ordered to
take over die remaining work.

The recipient of die UAO may agree to comply with die terms of die order.
In some cases, EPA may choose to wididraw the UAO and replace it with an
AOC if significant enforcement advantages are achieved. EPA generally
does not devote a significant amount of time to a second round of
negotiations.

Non-compliance widi AOs is determined through the oversight process.
There are two kinds of non-compliance: 1) no major response to the order;
and 2) a response that does not satisfy the order.
If the recipient does not comply widi die terms of die order, EPA usually
will proceed widi a Fund-financed response and subsequent suit for cost
recovery and penalties under CERCLA section 107. This includes treble
damages (three times the amount EPA spends on  the removal) if die PRP
did not have sufficient cause for non-compliance with an AO, and penalties
under section 106(b) of not more than $25,000 per day for violations
occurring before January 30, 1997, and not more than $27,500 per day for
those occurring after January 30, 1997 (pursuant  to EPA's Civil Monetary
Penalty Inflation Adjustment Rule, implementing the Debt Collection
Improvement Act of 1996).
In certain situations EPA, with assistance from die Department of Justice
(DOJ), will enforce die terms of die order and compel PRP response
dirough judicial enforcement actions under section 106 of CERCLA.
Aldiough the Agency has the authority tp refer a section 106 action  (e.g.,
filing a section 106 complaint), it is often preferable not to do so when
Fund monies are available and die delays of litigation are inconsistent widi
program direction. Violation of a UAO will set up a treble damage and
penalties action under section 107 of CERCLA.
Reference
Office of Enforcement and Compliance Assurance (OECA) Memorandum,
"Interim Policy on Setdement of CERCLA Section 106(b)(l) Penalty
Ckims and Section 107(c)(3) Punitive Damages Claims for Noncompliance
widi Administrative Orders" (September 30, 1997).

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 2—22     Removals
2.2.E                PRP
              Oversight
2.2.F          Criminal
         Investigation
2.2.G    Community
          Involvement
An AO prescribes the activities the PRP must undertake. Regional
personnel responsible for monitoring PRP compliance either should remain
on-site or visit the site periodically, whichever is appropriate given the
circumstances of the release and die nature of cleanup activities.  Oversight
activities by Agency personnel may be supplemented through the use of
contract resources, such as START or ESS. Contractors and other federal
agencies may assist Agency personnel in overseeing field activities and
conducting technical review of work plans, protocols, site data, and reports.
When the PRP agrees to undertake response action, but monitoring by the
OSC or CERCLA enforcement personnel shows that the actions are not
timely or appropriate, EPA may enforce the AO by assessing stipulated
penalties, by taking a CERCLA section 106 judicial action, or by taking
over the response and pursuing cost recovery.
Costs associated with oversight of PRP response actions, including removal
actions, are fully recoverable under section 107 of CERCLA. To facilitate
the preparation of potential future cost recovery actions against either PRPs
conducting the removal or other nonparticipating PRPs, OSCs and RPMs
should comply with  the cost documentation procedures described in
Chapter 12, Cost Recovery.
Recoverable costs include both intramural (e.g., EPA payroll, travel,  and
indirect costs) and extramural (Agency contractors' costs) oversight costs.
Detailed information on cost recovery is located in Chapter 12, Cost
Recovery.
References
OSWER Directive 9360.0-02b, Removal Cost Management Manual (April
1988).
Office of the Comptroller, Superfund Indirect Cost Manual for Cost Recovery
Purposes FY83 Through FY86 (March  1986).

If at any time before or during removal actions criminal activity is
suspected, the Regional Criminal Investigation Office should be notified
immediately to begin criminal investigative activities. In situations where a
criminal investigation has been initiated, the OSC or RPM should consult
with regional counsel regarding permissible communications and activities
in furtherance of the criminal investigation.
Reference
OSWER Directive No. 9834.10, "Interim Guidance on Notice Letters,
Negotiations, and Information Exchange" (October 19, 1987).

Community involvement activities are ongoing throughout removal actions,
varying in extent with the urgency of the situation. The objectives of
community involvement during removal actions include the following:

  •   To identify citizen leaders, public concerns, and a site's social and
      political history and encourage citizens to express concerns and
      provide information.

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                                                                                               2-23
2.2.G.1
 Community
Involvement
          Plan
2.2.G.2
 Community
Involvement
    Activities
   •   To take into account community, including PRP, views and concerns
      regarding the decision-making process.
   •   To provide information to the community on the healdi and envi-
      ronmental effects of releases and proposed response action.
By providing information as direcdy and quickly as possible, the OSC will
ensure that the community receives die necessary information about die
response action and about die effects of die release  on the community's
healdi and safety.
References
Community Relations in Superfund: A Handbook, EPA 540-R-92-009.
OSWER Directive 9360.3-05, "Public Participation Guidance for OSCs:
Community Relations and die Administrative Record" 0^7 1992).
OSWER Directive 9360.3-06, "Removal Enforcement Guidance for On-
Scene Coordinators" Superfund Removal Procedures (April 6, 1992).
OSWER Directive No. 9836.2, "CERCLA Community Relations Mailing
List" (February 6,  1989).

NCP section 300.415(n)(3)(ii) states that a Community Involvement Plan
(CIP) shall be prepared within 120 days for all response actions where on-
site action is expected to extend beyond 120 days.  (See NCP section
300.415 (n) (2) (i) for requirements applicable to actions expected to take less
dian 120 days). Before preparing a CIP, program and community
involvement staff must meet widi local officials and interested citizens to
obtain information about die site and to identify public concerns. The plan
should provide the following:

   •   Site background.
   •   The nature of die community concern.
   •   The key site issues.
   •   The objectives of the community involvement activities.
   •   Specific activities to be undertaken at die site.
Responsible parties may participate in implementing elements of the CIP at
the direction of, and with oversight by, regional staff. The lead agency
develops die CIP.
Reference
NCP, 40 CFR section 300.415 ("Removal Actions") (1990).

Specific types of community involvement actions during removals are likely
to include meeting widi citizens in die community, responding to inquiries
from die media, and providing local officials with site status information.
Other aspects of community involvement, dirough Technical Assistance
Grants,  Community Action Groups, and environmental justice initiatives,
are discussed in Chapter 13, Community Involvement.

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 2—24    Removals
2.2.H   Applicable or
         Relevant and
          Appropriate
        Requirements
CERCLA does not require removal actions to comply with Applicable or
Relevant and Appropriate Requirements (ARARs) of other environmental
statutes. However, the NCP requires on-site CERCLA removal actions to
attain federal and state ARARs to the greatest extent practicable, considering
the urgency of the situation and the scope of the removal action to be taken.
In some instances, EPA may require PRPs to identify potential ARARs as
part of a deliverable under an order. As with any deliverable, the PRPs must
receive EPA's approval. However, ultimately it is the lead agency that is
responsible for determining the final list of ARARs that can be practicably
attained.
Reference
OSWER Directive 9360.3-02, "Guidance on the Consideration of ARARs
During Removal Actions" Superfund Removal Procedures (August 1991).

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                                                                                            2-25
2.3
2.3.A
Contractor
   Support
2.3. B    Information
               c
                 »
 Planning and Reporting Requirements

Resources available to regional personnel to conduct PRP searches include
OSCs, the START contract, die ESS contract, CIs, EPMs, and the NEIC.
Regional personnel should evaluate die contracting support options for
conducting effective and efficient PRP searches for removals, and
incorporate contractor support requirements into quarterly and annual
budget planning procedures.  When planning for diis contract support, keep
in mind diat resources may be constrained by contract capacity or odier
factors.

EPA has established several distinct but interrelated systems for
documenting and tracking removal activities from the initial notification of
the release dirough die completion of the response. This section identifies
the various planning and tracking systems and discusses their relevance to
enforcement removals.
The removal program responds to emergency, time critical, and non-time
critical situations at NPL and non-NPL sites. Because much of die removal
work cannot be anticipated in advance, die planning horizon of these
activities is significandy shorter than for remedial activities. Thus, quarterly
commitments are not required. Site-specific  removal funding needs are
placed in WasteLAN die quarter prior to die expected obligation date. The
annual removal commitments are placed in die Targets and
Accomplishments portion of die CERCLIS 3/WasteLAN data system.
Removals are tracked by die Superfund Comprehensive Accomplishment
Plan (SCAP) through CERCLIS 3/WasteLAN. OSCs should coordinate
with their information managers to ensure that they are entering
information into CERCLIS 3/WasteLAN correcdy. All SCAP targets are
established on an annual basis. Targets are planned site specifically prior to
the quarter die removal is projected to begin. Exhibit 2-5 summarizes
SCAP Targets relevant to removals.
Planning and reporting requirements are defined in die Superfund Program
Implementation Manual (SPIM).  Definitions in die SPIM are subject to
change on an annual basis and dius, should be revisited yearly.

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2—26    Removals
                            2-5    SCAP Targets/Measures for Removals
Activity
NPL Removal
Starts
Fund
PRP
Non-NPL
Removal Starts
Fund
PRP
Removal
Completions
Fund
PRP
Federal Facility
Removals
SCAP Reporting
Measure (part of ACT-5)
Planning
Planning
Measure (part of ACT-5)
Planning
Planning
Measure (part of ACT-6
and ACT-7)
Planning
Planning
Measure (part of FF-17)
Quarterly
X
X
X
X
X
X
X
X
X
X
Annual
X
X
X
X
X
X
X
X
X
X
                             The following are definitions for Removal Starts:

                               •   Removal Starts - NPL and Non-NPL - A removal is a response
                                   action taken to prevent or mitigate a threat to public health, welfare,
                                   or the environment posed by the release or potential release of a
                                   CERCLA hazardous substance, or an imminent or substantial danger
                                   posed by a pollutant or contaminant. The definition  of accomplish-
                                   ment for a Removal Start depends on the lead.
                               •   Fund-financed - A Fund-financed removal counts toward this target
                                   when on-site removal work is begun by EPA as documented in a
                                   POLREP. The date the on-site work begins is the start date for the
                                   removal action.
                               •   PRP-financed actions under the terms of, an AOC, UAO, CD, or
                                   judgment - The PRPs or dieir contractors have begun work on site
                                   for construction of die removal (emergency, time critical, or non-
                                   time critical) as documented in a POLREP and the PRPs have
                                   provided written notice of intent to comply with a UAO, or an
                                   enforcement instrument has been signed by EPA and  the PRPs, or a
                                   judgment has been signed by a federal judge. The date of on-site
                                   construction is reported in CERCLIS 3/WasteLAN as the removal
                                   (Action Name = PRP Removal) actual start date (Actual Start). One
                                   of the following must be entered into CERCLIS 3/WasteLAN for
                                   the enforcement instrument:

-------
                                                               2-27
          The date the AOC (Action Name = Admin Order on Consent)
          was signed by the PRPs and the designated Regional official
          (Actual Complete), and the Response Actions Achieved of "PRP
          Removal."
          The date (Actual Complete) the PRPs provide notice of intent to
          comply (Action Name = PRP Notify EPA of Intent to Comply)
          with a UAO signed (Actual Complete) by the designated Re-
          gional official (Action Name = Unilateral Admin Order), and the
          Response Actions Achieved of "PRP Removal."
          The date the CD (Action Name = Consent Decree) was signed
          by the PRPs, the designated Regional official,  and the Federal
          judge (Actual Complete), and the Response Actions Achieved of
          "PRP Removal."
          The date a judgment (Action  Name = Judicial/Civil Judgment)
          was signed by the federal judge (Actual Complete), and the
          Response Actions Achieved of "PRP Removal."
   •   PRP-financed under terms of a state order or decree - The PRPs
      or their contractors have begun work on site for construction of the
      removal (emergency, time critical, or non-time critical) as docu-
      mented in a POLREP and the state enforcement instrument has
      been signed by the appropriate  state official.
   •   PRP-financed (RP-lead actions) emergency actions where no
      enforcement instrument exists - The PRP or their contractors have
      begun construction work on site in response to an emergency
      incident, and EPA provides on-site technical oversight and/or is pan
      of an incident command/unified command. The date of construc-
      tion is reported in WasteLAN as the removal (Action Name = PRP
      Emergency Removal) actual start date (Actual Start).
The following definitions are for Removal Completions:

   •   Fund-financed - A Fund-financed removal is considered complete
      when the actions specified in the Action Memorandum are met, or
      when a ROD is signed which encompasses the actions specified in
      the Action Memorandum,  (die ROD actual complete date should be
      the same as the Removal actual complete date), or when the contrac-
      tor has demobilized and left the site (as documented in die
      POLREP) and recorded as die removal (Action Name = Removal
      Action) actual completion date (Actual Complete) in CERCLIS 3/
      WasteLAN.
   •   PRP-financed removal performed by the PRP under the terms of
      a Federal enforcement instrument - This PRP-financed removal is
      considered complete when the region has certified that die PRPs have
      fully met die terms of an AOC, UAO, CD, or judgment and eidier
      have completed the actions specified in die Action Memorandum (as
      documented in a POLREP) and recorded as the removal (Action
      Name = PRP Removal) actual completion date (Actual Complete) in

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2-28    Removals
                                    CERCLIS 3/WasteLAN or a ROD (Action Name = Record of
                                    Decision) is signed which encompasses the actions specified in the
                                    Action Memorandum (die ROD actual complete date should be the
                                    same as the PRP Removal actual complete date).
                                •    PHP-financed removal performed by the PRPs under the terms
                                    of a state enforcement document - This PRP-financed removal is
                                    considered complete when the state has certified the PRPs have fully
                                    met the terms of the instrument and either have completed the
                                    actions specified in die Action Memorandum (as documented in a
                                    POLREP) and recorded as the removal (Action Name = PRP
                                    Removal) actual completion date (Actual Complete) in CERCLIS 3/
                                    WasteLAN, or a ROD (Action Name = Record of Decision)  is signed
                                    which encompasses die actions specified in die Action Memorandum
                                    (the ROD actual complete date  should be  the same as the PRP
                                    Removal actual complete date).
                                •    PRP-financed emergency action  -where no enforcement instru-
                                    ment exists - This PRP-financed removal is considered complete
                                    when die OSC, in consultation with the unified command/incident
                                    command system (if applicable), has determined that the emergency
                                    is stabilized (as documented in a POLREP) and recorded as the
                                    removal (Action Name = PRP Emergency Removal) actual comple-
                                    tion date (Actual Complete) in WasteLAN.
                             In order to receive credit for a removal completion, an endangerment
                             assessment must be performed. This endangerment assessment may be
                             documented in an Action Memo, Removal Action Decision Document, or
                             enforcement instrument.  Regions must enter at least one of these
                             documents into WasteLAN, or identify in WasteLAN which of these actions
                             contain the endangerment assessment and their actual completion date
                             (Actual Complete).
                             For either Fund- or PRP-financed removals, an action qualifier (Qualifier)
                             must be recorded to identify whether the  action resulted in the site being
                             "Total Site Cleanup. Cleaned Up," a "Partial Site Cleanup Partially Cleaned
                             Up," or "Site Stabilization Stabilized."
                             Action qualifiers are defined as follows:

                                •    Total Site Cleanup Cleaned Up - All threats have been addressed as
                                    defined in the Action Memo and the region determines diat  it has
                                    addressed all threats posed by the site and will not be  returning for
                                    subsequent response activity. Also, all removal obligations and
                                    related work have been completed.
                                •    Partial Site Cleanup Partially Cleaned Up - Removal action(s)
                                    have been completed that have taken specified waste(s) off site, or
                                    permanent treatment technologies have been applied such diat
                                    specified  waste(s) will not have to be handled again. Example:
                                    Contaminated drums are removed but soil contamination remains.
                                    Site is partially cleaned up.

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                                                                  2-29
   •    Site Stabilization Stabilized - All threats identified in the Action
       Memo have been addressed and the region may take additional
       removal actions as new threats are identified/investigatory informa-
       tion is available. Example: Site is fenced to preclude entry/exit and
       drums are segregated and overpacked to prevent a release/contamina-
       tion. Site is stabilized.
Exceptions:
Temporary demobilization and temporary storage on-site are not considered
completions, unless temporary storage is die only action-specified in the
Action Memorandum to mitigate direats to public health, welfare, and the
environment.  Likewise, temporary off-site storage of hazardous substances
at a Treatment, Storage, and Disposal (TSD) facility other than the facility
of ultimate disposal is a continuation of die action, not a completion, unless
temporary off-site storage at a TSD is the only action specified in the Action
Memorandum. In addition, a removal would not be considered complete if
either of the following is true:

   •    The Action Memorandum requires die EPA contractor to monitor
       the hazardous substances stored on-site or additional contractor
       expenditures are anticipated.
   •    Hazardous substances are being stored at an off-site facility, other
       than die ultimate TSD facility required in the Action Memorandum.
   A removal would be considered complete if either of the following is true:
   •    The SOW for die action does not specify final off-site disposal of
       hazardous substances; die substances have been stabilized and are
       stored on-site due to circumstances such as die unavailability of a
       final treatment/disposal remedy; and no additional CERCLA
       removal authority funds are anticipated to be expended on this
       action. In this instance, no CERCLA removal authority funds will
       be  expended for long-term site Operation and Maintenance (O&M).
       Any long-term site O&M should be performed by the PRP or
       anodier agency (e.g., the State).
   •    Hazardous substances are being stored off-site at  the location of final
       disposal, and no additional contractor expenditures are anticipated
       for diis action.
The Emergency Response Notification System (ERNS) is a nationwide,
centralized database supported by EPA, the U.S. Coast Guard (USCG), and
die Department of Transportation (DOT), and maintained by die
Transportation Systems Center (TSC). This information-sharing network
documents every release notification received by the National Response
Center (NRC), EPA Headquarters and regional offices, and USCG.

ERNS is a documenting system, not a tracking system.  Only the initial
notification of release is documented, not die actions performed on die site.
ERNS contains information on every reported release (including releases of
non-hazardous substances and releases below reportable  quantity levels), not

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2—30    Removals
                              only those that result in removal action. ERNS also provides assistance to
                              regional enforcement personnel in supporting day-to-day response
                              operations and enforcing release reporting requirements.  Exhibit 2-6
                              provides a diagrammatic representation of the ERNS release notification
                              process.
                              Reference
                              OSWER Directive 9200.3-14-1 D.  Superfitnd Oil Program Implementation
                              Manual (updated biennially).
                              SCAP/OIL Quick Reference Coding Guide.

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2-6      ERNS Notification Process
                                                                                                                                   2-31
   RESPONSIBLE PARTY
   Discovers & Reports Release
                                                            PRIVATE CITIZEN
                                                          Discovers & Reports Release
                                                                                                              STATE & LOCAL GOVT
                                                                                                               Discovers & Reports Release
        EPA/USCG
   Collects Data from Reporter
  (Standard NRC Data Elements)
                                         EPVUSCG
        EPA/USCG
    Documents Release Data
        EPA/USCG
      Relays Release Data
           toOSC
                   EPA
         Transfers Data Within 2 Weeks in
            Region-Specific Format
           USCG
   nputs Release Data into MSIS
   within 1 week of Receipt and
    Transfers Data to the TSC
'Was Release
Reported to the
NRC or the EPA
Region / USCG
                                                                 osc
                                                             Receives Release
                                                                  Data
                                                                 OSC
                                                           Reviews Release Data
                                                            Gathers More Data
                                                                 OSC
                                                             Makes Response
                                                              Determination
                                                                 TSC
                                                             Receives & Logs
                                                             Receipt of Data
                                                                 TSC
                                                          nputs Release Data into
                                                             NRC Database
                                                      Collects Data
                                                      From Reporter
                                                                                                                       NRC
                                                                                                                  Documents Release
                                                                                                                        Data

                                                                                                                  Relays Release Data
                                                                                                                       to OSC
                                                                                                                       NRC
                                                Completes Entering Release
                                                      Data into NRC
                                                        Database
                                                                                                                       NRC
                                                   Transfers Release Data
                                                    Entries to TSC Daily
                                                                TSC
                                                          Incorporates Data into
                                                           Relational Database
                                           TSC
                                   Generates Quarterly and
                                    Special Reports for EPA
                                                                                      NRC
              Generates Reports & FOIA Replies
                     as Necessary
                                           TSC
                                      Submits Reports
                                          to EPA
                                                                                     STOP
                                          EPA
                                      Receives Reports
                                         STOP
                                                                                                  FOIA:     Freedom of Information Act
                                                                                                  USCG:     U.S. Coast Guard field offices
                                                                                                  EPA:      Environmental Protection Agency
                                                                                                  NRC:      National Response Center
                                                                                                  TSC:      DOTs Transportation Systems Center

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 2-32    Removals
2.4
2.4.A
           Civil
 Investigator
      Support
2.4.B
Determining
           PRP
     Financial
     Viability
2.4.C
        Use of
 Information
      Request
       Letters
Potential Problems/Resolutions

Many regions have identified CIs as useful resources for gathering PRP
liability and financial information for removal cases. CIs may render
effective quality assurance when used to oversee research being conducted
by EPMs.
Some regions have established a removal-dedicated CI position.  This
position allows the investigator to become familiar with the types of
investigative situations dial removals present and to prevent conflicts in
situations where priority is required by remedial cases.  Additionally,
assigning a CI exclusively to removal cases ensures die investigators
availability to conduct PRP research when required immediately for a time-
critical removal.
Effective PRP searches should yield financial information on PRPs so  diat
the determination can be made whether to pursue the CERCLA section 106
AO option. To ensure PRP searches yield the necessary financial
information, regions may want to include a financial disclosure form with
information request letters issued under section 104(e) of CERCLA when
there is reasonable certainty as to die recipients status as a PRP  If PRP
status is in question, a request for financial information should be delayed
until issuance of a GNL.  Standard PRP search procedures in many regions
include a Dun and Bradstreet financial report and a review of records  for
bankruptcy, property ownership, and financial status information.

The 104(e) information request letter provides a means of gathering PRP
liability and financial evidence, including information on site history,  die
identity of additional PRPs, and financial information. Financial
information is necessary in determining whether to issue an AO. Therefore,
enforcement personnel should be involved in removal cases at die outset to
facilitate gathering as much information as possible before issuance of an
AO.  Section  104(e) letters also may be used in conjunction widi demand
letters, issued approximately 12 months after removal completion during
the cost recovery stage to gather additional evidence and to identify
additional PRPs.

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                                                                                                2-33
2.5                           Activities Checklist
                               The following checklist has been developed to assist OSCs in conducting
                               and coordinating enforcement procedures among other enforcement
                               personnel and contract support. OSCs should determine that the following
                               activities are conducted at all removal sites when appropriate:
                               PRP Search, Identification, and Notification
                               	        Document or photograph visual evidence linking PRPs to a
                                           site, including drum labels, shipping records, and vehicle
                                           registration.
                               	        Conduct verbal inquiries with PRPs and other observers (e.g.,
                                           public officials, reporters) at the site.
                               	        Notify NEIC  or Regional Criminal Office if criminal activity is
                                           suspected.
                               	        Issue CERCLA section 104(e) information requests.
                               	        Prepare a  baseline PRP search  report.*
                               	        Initiate a tide  search.*
                               	        Conduct off-site interviews.*
                               	        Review relevant site records.*
                               	        Prepare interim final PRP search report.*
                               	        Notify PRPs verbally of potential CERCLA liability (with
                                           written confirmation).
                               	        Notify PRPs in writing of liability.*
                               	        Issue Special Notice Letters.*
                               Preparation far Negotiation
                               	        Establish  the AR.
                                 •          Notify state prior to negotiations or issuance of an AO.
                               	        Prepare negotiation strategy.*
                               	        Draft Action Memo with enforcement addendum.
                               	        Prepare draft AOC.
                               	        Negotiate AOC or issue UAO.
                               *This activity should be conducted if time permits.
                               Removal Action
                               	        Track daily costs and project future costs for Fund-lead removal
                                           actions.

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2-34     Removals
                              	        Make the AR publicly available within 60 days after the
                                          initiation of on-site activities (emergencies and time-critical
                                          actions) or when the EE/CA is made available for public
                                          comment (NTC actions).
                              	        Attend or coordinate oversight meetings including initial,
                                          status, and completion meetings, as well as site inspections.
                              	        Oversee PRP compliance with the orders.
                              Cost Recovery
                              	        Issue demand for payment of past and future costs plus inter-
                                          est.
                                          Use Cost Recovery Decision Document to document decision
                                          not to pursue cost recovery.
                              	        Refer cost recovery cases to DOJ within 12 months of complet-
                                          ing the removal action.
                              	        Complete Interim Final PRP Search Report.

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 3. Establishing
CERCLA Liability

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                                                                          3-f
          Chapter 3  Establishing CERCLA Liability


3.1   Description of Activity	1

      3.1.A    Introduction	1
      3.1.B    Liable Parties	1
      3.1.C    Extent of Liability	4
      3.1.D    Defenses to Liability	5
      3.1.E    Exceptions to CERCLA Response Authority	6
3.2   Procedures and Interactions	8

      3.2.A    Establishing the Elements of Liability in the PRP Search	8
      3.2.B    Exemptions and Limitations to Liability	8
              3.2.B.1   Secured Creditors	•..	8
              3.2.B.2   Fiduciaries	9
              3.2.B.3   Service Station Dealers	10
              3.2.B.4   State and Local Governments	10
              3.2.B.5   Contractors	11
      3.2.C    EPA's Discretionary Policies on Liability	11
              3.2.C.1   Residential Homeowners	11
              3.2.C.2   Owners of Property Above Contaminated Aquifers	12
              3.2.C.3   Municipalities	13
              3.2.C.4   Prospective Purchasers	13
              3.2.C.5   Comfort/Status Letters	14
              3.2.C.6   De Minimis Parties	15
              3.2.C.7   "De Micromis" Parties	16
              3.2.C.8   Orphan Shares	17
3.3   Planning and  Reporting  Requirements	19

      3.3.A    Planning	19
      3.3.B    Reporting Requirements	19
3.4   Potential Problems/Resolutions	20

      3.4.A    CERCLA Section 106(b) Reimbursement Petitions	20
      3.4.6    Ability to Pay	21
      3.4.C    Bankruptcy	21

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3-ii     Establishing CERCLA Liability

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                                                                                               3-1
3.1
             Chapter 3  Establishing  CERCLA Liability
                               Description  of Activity
3.1.A   Introduction
                               The Comprehensive Environmental Response, Compensation, and Liability
                               Act (CERCLA) imposes liability for the costs of actions taken to respond to
                               the release or threatened release of hazardous substances. Liability under
                               CERCLA, set forth in section 107, is triggered if bodi of the following
                               conditions exist:

                                  •   There is a release or threatened release of a hazardous substance from
                                     a facility.
                                  •   The release or threatened release causes response costs to be incurred.
                               Potentially Responsible Parties (PRPs) may be held liable for acts that
                               occurred prior to CERCLA's enactment in 1980.
                               Liability under CERCLA is ordinarily joint and several.  However, die PRPs
                               can establish the divisibility of harm at die site.  Determination of divisibil-
                               ity requires a reasonable basis for determining die specific contribution of
                               each PRP to the release of hazardous substances diat resulted in contamina-
                               tion.  Divisibility has been  recognized by courts only where contamination
                               was caused by a single hazardous substance.  Divisibility has not been
                               extended to  address a multiple-pollutant situation. The fact that the
                               remedy can  be divided and allocated among PRPs does  not render the harm
                               divisible.
                               CERCLA imposes a strict liability standard. Under a strict liability stan-
                               dard, no showing of fault is required to establish liability. Claims by a
                               defendant that it was not negligent or that it was acting in accordance widi
                               industry standards do not provide a defense to liability.

3.1.B  Liable Parties    Section 107 designates four classes of liable parties:

                                  •   Current owners and operators - parties who own or operate a vessel
                                     or facility.
                                  •   Past  owners and operators - parties who owned or operated die
                                     vessel or facility at the time of disposal.
                                  •   Arrangers - generators and other panics who arranged for the
                                     disposal or transport of hazardous substances.
                                  •   Transporters - parties who accepted hazardous substances for
                                     transport and who selected die site.
                               Any person  who fits widiin the definition of one of diese four classes may
                               be direcdy liable under CERCLA. In addition, a  person may be held liable
                               for acts of others if common law principles of secondary liability are met
                               (e.g., by "piercing die corporate veil" to establish die liability of a
                               corporation's shareholders, or establishing certain  agency relationships).
                               Owner/operator liability may include more than one operator.  Some courts
                               have broadly interpreted operator liability to impose liability under

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5—2      Establishing CERCLA Liability
                               CERCLA on any entity which exercises substantial control over the facility.
                               Parties who may be directly liable as operators can include:

                                  •    Corporate officers - In addition to holding a corporate entity liable,
                                      the government has brought CERCLA actions against individual
                                      officers or shareholders in a corporation.  Under state law principles,
                                      corporate officers and shareholders generally are not liable individu-
                                      ally for unlawful acts of the corporation.  Most courts have con-
                                      cluded, however, that an officer or director may be liable direcdy
                                      under CERCLA given any of the following fact patterns:
                                         The corporate officer participated personally in the activity
                                         leading to the release.
                                         The corporate officer exercised control over waste handling or
                                         disposal operations.
                                         The corporate officer exercised control over facility operations
                                         and could have prevented or significandy abated the hazardous
                                         waste release.
                                      The government sometimes proceeds direcdy against corporate
                                      officers if the corporation is bankrupt, out of business, or without
                                      sufficient assets to pay for die cleanup.
                                  •    Parent corporations - On June 8, 1998, the  Supreme Court in
                                      United States v. Bestfoods, 118 S. Ct. 1876 (1998), established a
                                      standard of Superfund liability under CERCLA section 107(a) (2) for
                                      parent corporations as operators of facilities operated or owned by
                                      subsidiary corporations.  In Bestfoods, die Court held diat a parent
                                      corporation that actively participates in, and exercises control over,
                                      the operations of its subsidiary's facility may be held direcdy liable as
                                      an operator of the facility under CERCLA section  107(a)(2). The
                                      Court also stated in Bestfoods diat die question is not whether die
                                      parent operated die subsidiary, but whether the parent direcdy
                                      operated die subsidiary's facility, which may be proven by showing
                                      that die parent corporation managed, directed, or conducted opera-
                                      tions specifically related to the leakage or disposal of hazardous
                                      waste, or made decisions about compliance widi environmental
                                      regulations at die facility.  The Court also stated that a parent's
                                      control of a subsidiary, if extensive enough, may establish indirect
                                      liability.   However, establishing indirect liability requires die applica-
                                      tion of veil piercing principles.
                                      The Court in Bestfoods also held that direct liability of a parent
                                      corporation cannot be established merely because directors and
                                      officers hold positions in both parent and subsidiary corporations.
                                      To impose direct liability because of dual officers or directors, it  must
                                      be proven diat the officers and directors were acting in a manner
                                      beneficial to the parent but contrary to the interests of the subsidiary.

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                                                                    3-3
   •    Successor corporations - If a corporation is determined to be a
       successor corporation to an entity that was subject to CERCLA
       liability, the successor corporation inherits that CERCLA liability.
       When a corporation that incurred CERCLA liability is merged into
       or is purchased by another corporation, successor liability is deter-
       mined by courts on the specific facts of each case using traditional
       corporate law principles. It  is essential that the specific facts of each
       case be reviewed when die issue of successor liability is being consid-
       ered. An analysis of as many independent factors (listed below) as
       possible should be made before ruling out the possibility that
       CERCLA successor liability exists when corporations are considered
       as PRPs.
       Successor liability is generally established where:  (1) the purchasing
       corporation expressly or implicitly agrees to assume the liabilities of
       the other corporation or (2) where a transaction between two
       corporations amounts to a consolidation or merger.  Successor
       liability may also apply in de facto mergers, which may occur when
       there is no formal merger but the purchased corporations sharehold-
       ers, officers, and directors continue  to perform similar duties in the
       purchasing corporation. In  general, when two corporations merge
       pursuant to statutory provisions, liabilities become the responsibility
       of the surviving corporation.
       Sales of assets by corporations normally do not convey CERCLA
       liability.  However, some courts have ruled that successor liability
       may exist when a corporation that purchases the  assets of another
       corporation is a "mere continuation" of die corporation that sold the
       assets.  In considering if asset sales result in "mere continuation" (also
       referred to as a "continuity of business enterprise"), courts have
       considered die following factors:
       •   Use of the same employees.
       •   Use of the same supervisory personnel.
       •   Use of the same production facilities in die same location.
       •   Production of the same  product.
       •   Use of the same name.
       •   Continuity of assets.
       •   Continuity of general business operations.
       •   Whedier the successor holds itself out as a continuation of die
          previous enterprise.
Section 101(20)(D) provides an exemption from owner/operator liability
for a state or local government that acquires ownership or control involun-
tarily dirough bankruptcy, tax delinquency, abandonment, or other means
because of its function as a sovereign. CERCLA sections 101(20)(A) and
(E) also provide a "secured creditor exemption" for a person who holds
indicia of ownership primarily to protect a security interest (e.g., a lender)  if
the person does not participate in die management of die facility. Section

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           Establishing CERCLA Liability
                                107(n) limits the CERCLA liability of fiduciaries to the assets held in the
                                fiduciary capacity and provides that a fiduciary shall not be liable in its
                                personal capacity for certain actions. Exemptions and limitations to liability
                                are discussed more fully later in this chapter.
                                Parties who owned or operated a facility while disposal occurred may also be
                                liable. An intermediate owner who owned the site after disposal had
                                stopped, and who sold the property before any response costs had been
                                incurred, may not be liable under section 107(a). However, the definition of
                                disposal includes leaking of hazardous substances, so a person who acquired
                                a site after active disposal had ended, but while leaking (e.g., of drums) was
                                occurring, could be liable.
                                Under CERCLA section 107(a)(3), parties that may be liable as arrangers
                                include "any person who by contract, agreement, or otherwise arranged for
                                disposal or treatment... of hazardous substances  owned or possessed by such
                                person...." Most courts have held that whether a defendant can show that it
                                arranged to have its waste disposed of elsewhere is irrelevant so long as the
                                government can prove that the  waste was disposed of at die site from which
                                the release (or threat of release)  occurred.
                                Courts have used concepts such as "constructive  possession" in assessing
                                liability for generators. Lack of ownership or physical possession of a
                                hazardous substance that was subject to an arrangement for disposal may
                                not release a party from liability if the party controlled the handling or
                                disposal of the substance.
                                Under CERCLA section 107(a)(4), transporter liability is extended to a
                                party "who accepts or accepted  any hazardous substances for transport to
                                disposal or treatment facilities or sites selected by such person from which
                                there is a release or threatened release." The important distinction between
                                arranger and transporter liability is that a transporter is liable only if it
                                selected die treatment or disposal site.
                                Reference
                                Office of Solid Waste and Emergency Response (OSWER) Directive
                                9829.0, "Policy for Enforcement Actions Against Transporters Under
                                CERCLA" (December 23, 1985).

3.1 .C        Extent Of    Under section 107, each category of PRP is liable for the following:

                 LlaDIUTy       .   The costs of removal or  remedial actions taken by the United States
                                      or a state that are not inconsistent with the National Contingency
                                      Plan (NCP).
                                   •   The costs of removal or  remedial actions taken by other parties that
                                      are consistent with die NCP.
                                   •   Any damages to natural  resources, recoverable in an action brought
                                      by federal, state, or tribal natural resource trustees.
                                   •   The costs of health assessments under section 104(i).

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                                                                                                    3-5
3.1.D     Defenses to
                 Liability
Under section 106, parties also are liable for injunctive relief where the site
may present an "imminent and substantial endangerment," which courts
generally have defined broadly. Injunctive relief may take the form of an
order to compel the party to take action to abate the endangerment or
institute a cleanup. Under section 106(b), failure to comply with a section
106 order may result in daily penalties of up to $27,500 ($25,000 for non-
compliance occurring prior to January 30,  1997).
Under section 106(b), PRPs may comply with a section 106 order and seek
reimbursement from the Fund for die reasonable costs plus interest of a
response action. A person is entided to reimbursement if die person can
establish diat it is not liable for response costs under section 107(a) or diat
the Agency's selection of the response action was arbitrary and capricious or
was odierwise not in accordance widi law.  Section 106(b) reimbursement
petitions are discussed in  greater detail in a later section of diis chapter.

Defenses to liability are limited by section 107(b) to cases in which the
release or direat of release was solely caused by:

   •   Acts of God.
   •   Acts of war.
   •   Acts or omissions of a third party with whom die PRP has or had no
       direct or indirect contractual relationship, provided die PRP exer-
       cised due care widi respect to die hazardous substances and took
       precautions against foreseeable acts or omissions of the third party
       and die consequences of diose acts or omissions.
For purposes of die "diird party" defense contained in CERCLA section
107(b)(3),  CERCLA section 101(35)(A) defines "contractual relationship"
to include diose conveying interests in land and sets forth types of land-
holding parties diat may assert a diird party defense. The first is any
landowner who did not know and had no reason to know diat hazardous
substances  had been disposed at die facility. Such a landowner, who is
sometimes referred to as an  "innocent landowner," must prove diat, prior to
acquiring the property, he/she made all appropriate inquiry into die previ-
ous ownership and uses of die property consistent with good commercial or
customary  practice at die time of die acquisition.  A party may also assert
the third party defense where a midnight dumper trespassed on  the party's
property and disposed of hazardous substances.
The second type of land-holding party diat may assert a diird party defense
to CERCLA liability is any  government entity (federal, state, or local) diat
acquired the property through an involuntary acquisition. EPA's interpreta-
tion of die involuntary acquisition defense is discussed in die "State and
Local Governments" section of this chapter.
1 he third type of land-holding party diat may avail itself of a diird party
defense is a party who acquired die facility by inheritance or bequest.
Pursuant to CERCLA section 101(35)(D), a diird party defense is not
available to any party who caused or contributed to the contamination.

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  3-6     Establishing CERCLA Liability
3.1.E     Exceptions
            to CERCLA
              Response
              Authority
References
Office of Site Remediation Enforcement (OSRE) Memorandum, "Policy on
Interpreting CERCLA Provisions Addressing Lenders and Involuntary
Acquisitions by Government Entities" (June 30, 1997).
"Final Rule on Lender Liability Under CERCLA," 57 Fed. Reg. 18344
(April 29, 1992) (section addressing involuntary governmental acquisitions
codified at 40 Code of Federal Regulations (CFR) section 300.1105).

Certain types of releases or threatened releases do not trigger CERCLA
response audiorities. Under CERCLA section 101(14), Congress excluded
petroleum not specifically listed,  natural gas, and synthetic gas from the
definitions of "hazardous substance" and "pollutant or contaminant." As a
result, releases solely of petroleum not specifically listed, natural gas, and
synthetic gas into the environment do not trigger CERCLA response
audiorities, aldiough diey may be addressed using odier environmental
statutes such as the Oil Pollution Act.  Under CERCLA section 101(22),
several types of activities are excluded from the definition of "release" and
are not subject to CERCLA response actions. These  include:

   •   Releases that result in exposure to persons solely within a workplace
      and for which the persons could assert a non-CERCLA claim against
      their employer.
   •   Vehicular engine exhausts.
   •   Certain radioactive contamination covered by odier laws.
   •   The normal application of fertilizer.
Under CERCLA sections 104(a)(3) and (4), Congress prohibits use of the
Trust Fund, except in emergencies, to finance federal response to releases of:

   •   Naturally occurring substances  (such as radon) from locations where
      they are normally found.
   •   Products (such as asbestos) that are part of the structure of, and
      result in exposure within,  residential, business, or community
      structures.
   •   Substances  (such as lead) in public or private drinking water supplies
      due to deteriorating pipes.
Section 107(j) excludes from CERCLA liability response costs resulting
from a "federally permitted release."  Although EPA has full authority under
CERCLA to respond to federally permitted releases, the permittee is not
liable for cleanup costs resulting from such releases.  CERCLA section
101(10) defines releases that qualify as federally permitted releases (e.g.,  the
discharge of pollutants in compliance with a National Pollutant Discharge
Elimination System permit under the Clean Water Act). This exclusion
does not apply, however, to releases in violation of permits. Section 107(i)
states that CERCLA liability provisions do not apply to response costs or
damages resulting from the application of pesticide products.

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                                                             3-7
Reference
OSWER Directive 9838.1, "Scope of the CERCLA Petroleum Exclusion
Under Sections 101(14) and 104(a)(2)" (July 31, 1987).

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 3-8      Establishing CERCLA Liability
3.2
3.2.A   Establishing
         the Elements
         of Liability in
      the PRP Search
3.2.B    Exemptions
      and Limitations
            to Liability
3.2.B.1
 Secured
Creditors
Procedures and Interactions
The identification of PRPs that may be liable under CERCLA is the
primary purpose of die PRP search. The PRP search should be designed to
bring to light information establishing, as to each PRP, die elements of
liability discussed in section 1 of diis chapter. Remedial Project Managers
(RPMs) should consistendy consult and coordinate widi regional counsel to
ensure diat information adequate to support enforcement actions is gath-
ered. The PRP search process is discussed in detail in Chapter 4, PRP
Search, Notification, and Information Exchange.

This subsection discusses exemptions and limitations to CERCLA liability
that arise direcdy from die CERCLA statute. Subsection C will discuss EPA
discretionary policies diat may influence EPA's decision not to take action
against certain PRPs.

CERCLA sections 101(20)(A) and (E) exempt from owner/operator liability
any person who, without participating in die management of a facility,
holds indicia of ownership primarily to protect diat person's security interest
in die facility.  Holding a security interest means having a legal claim of
ownership in order to secure a loan, equipment, or odier debt. This
exemption protects from section 107 owner/operator liability diose persons,
such as private and governmental lending institutions (e.g., banks), who
maintain  a right of ownership in or guarantee loans for facilities diat
become contaminated widi hazardous substances.
Under section  101(20)(F), which was added to CERCLA by amendment in
1996, a lender "participates in management" and will not be protected by
the secured creditor exemption if it does eidier of the following:

  •   Exercises decision-making control over environmental compliance
      related to die facility, such that die lender has undertaken responsi-
      bility for hazardous substance handling or disposal practices.
  •   Exercises control at a level comparable to diat of a manager of die
      facility, such diat die lender has assumed or manifested responsibility
      widi respect to  (1) day-to-day decision-making regarding environ-
      mental compliance, or (2) all, or substantially all, of die operational
      (as opposed to financial or administrative) functions of die facility
      odier dian environmental compliance.
The term "participate in  management" does not include certain activities
(provided diose activities do not rise to the level of participating in  manage-
ment as defined in subsection 101(20)(F)), such as:

  •   Inspecting the facility.
  •   Requiring a response action or other lawful means to address a
      release or threatened release.
  •   Conducting a response action under section 107(d)(l) or under die
      direction of an On-Scene Coordinator (OSC).

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                                                                                                   5-9
                                  *   Providing financial or advisory support toward an effort to prevent
                                      or cure default.
                                  •   Restructuring or renegotiating the terms of the security interest.
                                With respect to post-foreclosure activities, a lender that did not participate
                                in management prior to foreclosure and that seeks to divest itself of the
                                facility at the earliest practicable, commercially reasonable time, on com-
                                mercially reasonable terms, is not an "owner or operator" if it:

                                  •   Sells, re-leases (in the case of a lease-finance transaction), or liqui-
                                      dates the facility.
                                  •   Maintains business activities or winds up operations.
                                  •   Undertakes a response action under section 107(d)(l) or under the
                                      direction of an OSC.
                                  •   Takes any odier measure to  preserve, protect, or prepare the facility
                                      for sale or disposition.
                                In light of the substantial similarities between the amended secured creditor
                                exemption and EPA's 1992 "Final Rule on Lender Liability Under
                                CERCLA" (the rule and its preamble provide additional clarification of the
                                same or similar terms used in the secured creditor exemption), EPA treats
                                the rule and preamble as guidance  in interpreting the exemption.
                                References
                                OSRE Memorandum, "Policy on Interpreting CERCLA Provisions Ad-
                                dressing Lenders and Involuntary Acquisitions by Government Entities"
                                (June 30, 1997).
                                "Final Rule on Lender Liability Under CERCLA," 57 Fed. Reg. 18344
                                (April 29, 1992).

3.2.B.2       Fiduciaries    CERCLA section 107(n) limits CERCLA liability of fiduciaries. Under
                                section 107(n), fiduciary liability under any provision of CERCLA shall not
                                exceed the assets held in the fiduciary  capacity. Additionally, a fiduciary will
                                not be liable in its personal capacity for certain actions, such as:

                                  •   Undertaking or requiring another person to undertake any lawful
                                      means of addressing a hazardous substance.
                                  •   Enforcing environmental compliance terms of the fiduciary agree-
                                      ment.
                                  •   Administering a facility that was contaminated before the fiduciary
                                      relationship began.
                                The liability limitation and "safe harbor" described above do not limit the
                                liability of a fiduciary whose negligence causes or contributes to a release or
                                threatened release.
                                The term "fiduciary" means a person acting for the benefit of another party
                                as a bona fide trustee, executor, or  administrator, among other things. It
                                does  not include a person who does either of the following:

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 3-10    Establishing CERCLA Liability
3.2.B.3
        Service
        Station
        Dealers
3.2.B.4
     State and
          Local
Governments
   •   Acts as a fiduciary with respect to a for-profit trust or other for-profit
      fiduciary estate, unless the trust or estate was created because of the
      incapacity of a natural person, or as part of, or to facilitate, an estate
      plan.
   •   Acquires ownership or control of a facility for the objective purpose
      of avoiding liability of that person or another person.
Nothing in the fiduciary subsection applies to a person who does either of
the following:

   •   Acting in a beneficiary or non-fiduciary capacity, directly or  indi-
      rectly benefits from the trust or fiduciary relationship.
   •   Is a beneficiary and fiduciary with respect to the same fiduciary estate
      and, as a fiduciary, receives benefits exceeding customary or reason-
      able compensation.
Furthermore, nothing in the fiduciary subsection precludes a claim  against
the assets of the trust or estate administered by the fiduciary.

Under CERCLA section 114(c), service station  dealers managing recycled
oil are exempt from certain liability provisions if the dealer meets specific
requirements. The exemption applies to generator and transporter liability
under sections 107(a)(3) and (4), and covers claims under section 107.  The
service station dealer still may be held liable under sections 107(a)(l) and
(2) as an owner  and operator.

CERCLA section 107(d)(2) provides dial, except for gross negligence or
intentional misconduct, state and local governments are not liable for costs
or damages resulting from an emergency response  to a hazardous substance
release or threatened release. Under CERCLA section 107(d)(l), a person
rendering care or assistance in accordance with the NCP cannot be held
liable under CERCLA for costs or damages resulting from such care.  Such a
person can be liable for costs or damages as the result of his or her negli-
gence.
CERCLA section 101(20)(A) exempts from owner/operator liability units
of state and local government that "involuntarily"  acquire CERCLA facili-
ties, provided they did not cause or contribute to the contamination.
Governmental entities may also be protected from liability resulting from
involuntary acquisitions by the third party defense of section 107(b)(3), as
discussed in the "Defenses to Liability" portion  of section 1 of this chapter.
EPA included examples of involuntary acquisitions by government entities
in its Lender Liability Rule, issued in 1992. The Lender Liability Rule was
vacated by the D.C. Court of Appeals in 1994.  However, Congress enacted
provisions very similar to the rule and validated the portion of the rule that
addresses involuntary acquisitions by government  entities in the Asset
Conservation, Lender Liability, and Deposit Insurance Protection Act of"3**"
1996. As stated in the rule, examples of involuntary acquisitions include
those made by a government entity that is:

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                                                                                              3-11
 3.2.B.5     Contractors
3.2.C             ERA'S
         Discretionary
             Policies on
                Liability
3.2.C.1
   Residential
Homeowners
   •   Acting in its capacity as a sovereign (such as acquisition following
      abandonment or tax delinquency).
   •   Acting as a conservator or receiver pursuant to a clear and direct
      statutory mandate or regulatory authority (such as acquisition of the
      security interests or properties of failed private lending or depository
      institutions).
   •   Undertaking foreclosure or its equivalent while administering a
      governmental loan, loan guarantee, or loan insurance program.
   •   Acting pursuant to seizure or forfeiture authority.
References
OSRE Memorandum, "Policy on Interpreting CERCLA Provisions Ad-
dressing Lenders and Involuntary Acquisitions by Government Entities"
(June 30, 1997).
OSRE/Office of General Counsel  (OGC)  Memorandum, "Municipal
Immunity from CERCLA Liability for Property Acquired Through Invol-
untary State Action" (October 20, 1995).
"Final Rule on Lender Liability Under CERCLA," 57 Fed. Reg.  18344
(April 29, 1992) (section addressing involuntary governmental acquisitions
codified at 40 CFR section 300.1105).
Under CERCLA section  119, Response Action Contract (RAC)  contractors
and state or local government employees are protected from liability, except
in cases of negligence, gross negligence, or intentional misconduct.  EPA
may provide indemnification for liability arising from RAC contractor
negligence (but not gross negligence or intentional misconduct)  under
certain circumstances, as defined in EPA's  1993 RAC contractor indemnifi-
cation guidance.  Indemnification payments made by EPA to RAC contrac-
tors, including payments for expenses associated with contribution litigation
between PRPs and RAC contractors, are recoverable from PRPs as a govern-
ment response cost under CERCLA section 107.
References
OSRE Memorandum, "Guidance Concerning Liability and Indemnifica-
tion of CERCLA Response Action Contractors" (April 17, 1996).
OSWER Memorandum, "Superfund Response Action Contractor Indemni-
fication" (January 25, 1993).

The Agency exercises its discretion in deciding whether to pursue certain
parties who may fall within a category of liable parties under section 107(a).
The Agency has issued several policies concerning die treatment of such
parties. These policies are described below. Note diat these are discretion-
ary policies and therefore do not bind anyone, including EPA.

In July 1991, EPA released its "Policy Toward Owners of Residential
Property at CERCLA Sites," which states diat enforcement actions generally
will not be taken against owners of residential property located on Super-

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 3-72     Establishing CERCLA Liability
3.2.C.2       Owners of
         Property Above
          Contaminated
                 Aquifers
fund sites. The policy applies to properties that are owned and used
exclusively for single family residences of one to four units. Furthermore,
the owner's knowledge of the presence of contamination on the property at
the time of purchase or sale shall not affect EPA's enforcement discretion. A
potential exception to this policy would be if a homeowner's activities
resulted in a release of a hazardous substance.
Reference
OSWER Directive 9834.6, "Policy Toward Owners of Residential Property
at Superfund Sites" (July  3, 1991).

Where hazardous substances have come to be located on or in a property
solely as the result of subsurface migration in an aquifer from a source or
sources outside the property, EPA will not take enforcement action against
the owner of such property to require the performance of response actions
or the payment of response costs. This policy is subject to the following
conditions:

  •   The landowner did not cause, contribute to, or exacerbate die release
       or threat of release of any hazardous substances through any act or
       omission. The failure to take affirmative steps to mitigate or address
       ground water contamination, such as conducting ground water
       investigations or installing ground water remediation systems, will
       not, in the absence of exceptional circumstances, constitute an
       omission by the landowner within the meaning of this condition.
  •   The person who caused the release is not an agent or employee of die
       landowner, and was not in a direct or indirect contractual relation-
       ship with the landowner. Cases where die landowner acquired the
       property, direcdy or indirecdy, from a person who caused die original
       release will require an analysis of whether, at die time the property
       was acquired, the landowner knew or had reason to know of the
       disposal of hazardous substances that gave rise to the contamination
       in die aquifer.
  •   There is no alternative basis for die landowner's liability for the
       contaminated aquifer, such as liability as a generator or transporter
       under CERCLA section 107(a)(3) or (4), or liability as an owner by
       reason of die existence of a source of contamination on the
       landowner's property other dian the contamination that migrated in
       an aquifer from a source outside die property.
References

OSRE Fact Sheet, "Policy Toward Owners of Property Containing Con-
taminated Aquifers" (November 1995).
OSRE Memorandum, "Policy Towards Owners of Property Containing
Contaminated Aquifers" (May 24, 1995).

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                                                                                                  3-13
3.2.C.3   Municipalities
 3.2.C.4
Prospective
 Purchasers
EPA's 1998 "Policy for Municipality and Municipal Solid Waste CERCLA
Settlements at National Priorities List (NPL) Co-Disposal Sites" (Municipal
Solid Waste (MSW) Policy) supplements the 1989 "Interim Policy on
CERCLA Settlements Involving Municipalities and Municipal Wastes,"
stating that EPA will continue its policy of generally not identifying genera-
tors and transporters of MSW or municipal  sewage sludge (collectively
referred to as MSW) as PRPs at NPL sites. However, in recognition of the
strong public interest in reducing contribution litigation, EPA will make
setdements available to MSW generators and transporters and municipal
owners and operators of co-disposal landfills who elect to resolve their
potential CERCLA liability and obtain contribution protection. The MSW
Policy's methodology for setdements includes the following basic compo-
nents:

   •   Settlement amounts for MSW generators and transporters are
      calculated by multiplying the known  or estimated quantity of MSW
      contributed by such settling parties by a unit cost of $5.30/ton. The
      unit cost represents an estimate of the cost of remediating MSW at a
      representative Resource Conservation and Recovery Act subtide D
      landfill. Such a unit cost reflects EPA's belief that, absent co-disposal
      with other wastes (such as industrial hazardous waste), MSW alone
      does not generally present the type of risks that the Superfund
      program was designed to address, nor the costs typically associated
      with Superfund remediation.
   •   The policy establishes 20 percent of total estimated response costs for
      the site as a presumptive baseline setdement amount of an individual
      municipality to resolve its owner/operator liability at a co-disposal
      site. Regions may offer setdements varying from this presumption,
      generally not to exceed 35 percent (to be determined by site-specific
      factors set forth in the policy). The 20 percent baseline amount is
      based on EPA's consideration of historic CERCLA settlements with
      such parties, their unique governmental  responsibility to provide
      basic sanitation services, and the unique financial planning consider-
      ations that municipalities face. Municipal owner/operators who do
      not setde with EPA pursuant to the policy remain subject to site
      claims by EPA consistent with the principles of joint and several
      liability.
References
OSRE Memorandum, "Policy for Municipality and Municipal Solid Waste
CERCLA Setdements at NPL Co-Disposal Sites" (February 5, 1998).
OSWER Directive 9834.13, "Interim Policy on CERCLA Settlements
Involving Municipalities and Municipal Wastes" (December 6, 1989).

It is EPA's policy not to become involved in  private real estate transactions.
However, an agreement with a covenant not to  sue a prospective purchaser
may be considered if it will have substantial  benefits for the government and
if the prospective purchaser satisfies other criteria. The Agency recognizes

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 3-14    Establishing CERCLA Liability
                                that entering into an agreement containing a covenant not to sue with a
                                prospective purchaser of contaminated property, given appropriate safe-
                                guards, may result in an environmental benefit through a payment for
                                cleanup or a commitment to perform a response action.  EPA's experience
                                has shown that Prospective Purchaser Agreements (PPAs) have also ben-
                                efited the community where the site is located by encouraging the reuse or
                                redevelopment of property at which the fear of Superfund liability may have
                                been a barrier. EPA has issued guidance that explains the circumstances
                                under which PPAs may be considered. A model PPA is attached to the PPA
                                guidance.
                                EPA may reject any offer if it determines diat entering into an agreement
                                with a prospective purchaser is not sufficiendy in the public interest to
                                warrant expending the resources necessary to reach such an agreement. The
                                following criteria should be considered when evaluating potential PPAs:

                                  •   EPA action at the facility has been taken, is ongoing, or is  anticipated
                                      to be undertaken by the Agency.
                                  •   EPA will receive a substantial benefit either in the form of a direct
                                      benefit for cleanup or as an indirect public benefit in combination
                                      with a reduced direct benefit to EPA. Public benefits to be consid-
                                      ered include the creation or retention of jobs, productive use of
                                      abandoned property, and revitalization of blighted areas.
                                  •   Continued operation or new development  of the property, with the
                                      exercise of due care, will not aggravate or contribute to the existing
                                      contamination or interfere widi EPA's response action.
                                  •   Continued operation or new development  of the property will not
                                      pose healdi risks to the community and those persons likely to be
                                      present at die site.
                                  •   The prospective purchaser is financially viable.
                                Reference
                                Office of Enforcement and Compliance Assurance (OECA) Memorandum,
                                "Guidance on Agreements with Prospective Purchasers of Contaminated
                                Property" (May 24, 1995)(a model  PPA is attached to this  guidance).

3.2.C.5         Comfort/    Comfort/status letters are another tool used by EPA to encourage die reuse
           StatUS Letters    or redevelopment of property at which die fear of Superfund liability may
                                have been a barrier.  EPA  often receives requests from parties for some level
                                of comfort that, if they purchase, develop, or operate on brownfields
                                (abandoned, idled, or under-used industrial and commercial properties
                                where expansion or redevelopment is complicated by real or perceived
                                environmental contamination), EPA will not pursue them  for die costs of
                                cleaning up any contamination resulting from previous uses of the property.
                                A comfort/status letter can provide a measure of comfort to an interested
                                party by providing information about the potential for EPA involvement or
                                the level of actual EPA involvement at a brownfield property.  Comfort/
                                status letters are provided solely for informational  purposes and relate only

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                                                                                                 3-15
                                to EPA's intent to exercise its response and enforcement authorities under
                                CERCLA at a property based upon the information presently known to
                                EPA. The letters are not intended to limit or affect EPA's authority under
                                CERCLA or any other law or to provide a release from CERCLA liability.
                                Upon receiving a request from an interested party for information about the
                                party's circumstances, regional offices may issue comfort/status letters, at
                                their discretion, when there is a realistic perception or probability of
                                incurring CERCLA liability and such comfort will facilitate the cleanup and
                                redevelopment of a brownfield property, and there is no other mechanism
                                available to adequately address the party's concerns. With the information
                                provided by EPA, the party inquiring about the property can decide
                                whether the risk of EPA action is great enough to forego involvement,
                                whether to proceed as planned, whether additional investigation into site
                                conditions is required, or whether further information from EPA or other
                                agencies is needed.
                                EPA has issued guidance that explains the circumstances under which
                                comfort/status letters may be appropriate (four sample comfort/status letters
                                that address the most common inquiries received regarding brownfield
                                properties are attached to the guidance).
                                Reference
                                OSRE Memorandum, "Policy on the Issuance of Comfort/Status Letters"
                                (November 12, 1996).

3.2.C.6      De MinimiS    At multiparty sites, some PRPs may have disposed of relatively small
                   Parties    quantities of hazardous substances, or a landowner may not have been aware
                                of, or involved with,  hazardous substance activities at the facility.  In the
                                interest of reaching a final settlement with such parties as promptly as
                                possible, CERCLA authorizes special setdements with these de minimis
                                parties "whenever practicable and in the public interest" if die settlement
                                involves only a minor portion of the response costs at the facility concerned.
                                Under CERCLA section 122(g), a de minimis settlement may be appropri-
                                ate in two situations:

                                  •    Where  the amount and toxicity of hazardous substances contributed
                                      by a party is minimal compared with the total amount and toxicity
                                      of hazardous substances at die site.
                                  •    Where  a party is a property owner who did not conduct or permit
                                      die generation, handling, or disposal of hazardous substances at the
                                      facility; did not contribute to die release or threatened release at die
                                      facility; and acquired the facility widiout knowledge diat the prop-
                                      erty had been used to store, handle, or dispose of hazardous sub-
                                      stances.
                                De minimis settlements offer the advantages of being bodi early and final, as
                                EPA issues de minimis parties a covenant not to sue widi only limited
                                reopeners and  the setding parties receive contribution protection.  In return
                                for a covenant widi fewer reopeners than most CERCLA setdements  (e.g.,

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 3-16    Establishing CERCLA Liability
                              there is no reopener for unknown conditions), de minimis settlors pay a
                              premium above the base payment of their share of cleanup costs. EPA has
                              issued guidance encouraging early de minimis settlements (preferably before
                              the Record of Decision is signed). Completion of such early settlements
                              depends on early compilation of information on PRP waste contributions
                              and response costs.
                              References
                              OSRE Memorandum, "Model CERCLA Section 122(g)(4) De Minimis
                              Contributor Consent Decree and Administrative Order on Consent"
                              (September 29, 1995).
                              OSRE Memorandum, "Standardizing die De Minimis Premium" (July 7,
                              1995).
                              Office ofWaste Programs Enforcement (OWPE)/Office of Enforcement
                              (OE) Memorandum, "Communications Strategy for Settlements widi Small
                              Volume Waste Contributors" (September 30, 1993).
                              OSWER Directive 9834.7-ID, "Streamlined Approach for Settlements with
                              De Minimis Waste Contributors under CERCLA Section 122(g)(l)(A)"
                              (July 30,1993).
                              OSWER Directive 9634.7-lC, "Methodology for Early De Minimis Waste
                              Contributor Settlements under CERCLA Section 122(g)(l)(A)" (June 2,
                              1992).
                              OSWER Directive 9834.7-IB, "Methodologies for Implementation of
                              CERCLA Section 122(g)l)(A) De Minimis "Waste Contributor Settlements"
                              (December 20, 1989).
                              OSWER Directive 9835.9, "Guidance on Landowner Liability under
                              Section 107(a)(l) of CERCLA, De Minimis Settlements under Section
                              122(g)(l)(B) of CERCLA, and Settlements with Prospective Purchasers of
                              Contaminated Property" (June 6, 1989).
                              OSWER Directive 9834.7, "Interim Guidance on Settlements with De
                              Minimis Waste Contributors under Section 122(g) of SARA" (June 19,
                              1987).

3.2.C.7  "De Micromis"    CERCLA provides the Agency widi the authority to enter into settlements
                  Parties    at any time with persons who may have contributed minuscule amounts of
                              hazardous substances to a Superfund site. "De micromis" settlements are
                              simply a subset of de minimis settlements and are entered into under the de
                              minimis contributor settlement authority of section 122(g)(l)(A).  EPA's
                              policy states diat "de micromis" parties, who  have contributed only a
                              minuscule amount of waste to die site, should not participate in financing
                              die cleanup.  "De micromis" setdements, dierefore, may be effected without
                              any exchange of money. "De micromis" setdements are not available to
                              owners or operators of Superfund sites.
                              EPA's policy is to offer a "de micromis" settlement to qualifying parties only
                              if one of the following is true:

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                                                                                                  3-77
                                       The parties have been sued by other PRPs at the site.
                                       The panics face the concrete threat of litigation by other PRPs at the
                                       site.
                                   •   The parties have approached EPA seeking setdement and the region
                                       has determined that such parties have a reasonable expectation of
                                       facing contribution litigation.
                                "De micromis" settlements may be available to parties who generated or
                                transported a minuscule amount of waste to a Superfund site (even less than
                                the minimal amount normally contributed by de minimis waste contribu-
                                tors). EPA's policy endorses presumptive eligibility cut-off levels of 0.002
                                percent for hazardous substance contributors and 0.2 percent  for MSW
                                contributors. Where the region determines that site-specific factors warrant
                                the use of an absolute volume cut-off for hazardous substance contributors,
                                EPA endorses die use of a presumptive eligibility cut-off at 110 gallons or
                                200 pounds. Regions may vary these eligibility cutoffs based on site-specific
                                factors.
                                References
                                OSRE Fact Sheet, "Revised De Micromis Guidance" (June 4,  1996).
                                OSRE/Department of Justice (DOJ) Memorandum, "Revised Guidance on
                                CERCLA Settlements with De Micromis Waste Contributors" (June 3,
                                1996).

3.2.C.8           Orphan    In order to provide greater fairness, reduce litigation, and promote faster
                    Shares    cleanup of Superfund sites, EPA has adopted the policy of compensating for
                                a portion  of the "orphan share" at sites where PRPs enter into settlements to
                                perform cleanup. The term "orphan share" refers to that share of responsi-
                                bility which is specifically attributable to parties EPA has determined have
                                each of the following characteristics:

                                   •   Potentially liable.
                                   •   Insolvent or defunct.
                                   •   Unaffiliated with any party potentially liable for response costs at the
                                       site.
                                The orphan share does not include shares of responsibility arising from
                                unallocable waste, die difference between a party's share and its Ability to
                                Pay (ATP), or parties EPA does not ordinarily pursue, such as "de micromis"
                                contributors, MSW contributors, and residential homeowners. EPA will
                                compensate parties that agree to perform a remedial action or Non-Time-
                                Critical removal for the orphan share in an amount that does not exceed any
                                of die following: (1) the orphan share;  (2) 25 percent of the projected
                                remedy or removal costs; or (3) die total past and future oversight costs.
                                EPA has enforcement discretion to compensate for a portion of the orphan
                                share in certain cost recovery setdements. Where there is a significant
                                orphan share in a cost recovery case, the orphan share may be considered as

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3-75    Establishing CERCLA Liability
                              an "inequity" or "aggravating factor" within the meaning of the "Interim
                              CERCLA Settlement Policy." This may justify EPA's recovery of less than
                              100 percent of response costs.  However, it is the intent of EPA not to enter
                              into settlements that provide incentives for parties to refuse to enter into
                              agreements for performance of work, believing they may get a better
                              settlement at the time EPA pursues a cost recovery claim.  Therefore, except
                              in extraordinary cases, EPA should not offer an orphan share compromise in
                              a cost recovery settlement to a party that refused a previous setdement offer
                              that included a compromise based on orphan share considerations. More-
                              over, a parry diat was not offered a setdement for cleanup work including an
                              orphan share compromise should not, except in extraordinary circum-
                              stances, receive a greater compromise of response costs in a cost recovery
                              setdement than it would have received if the party had signed a consent
                              agreement and the orphan share policy had been applied.
                              References
                              OECA Memorandum, "Addendum to the 'Interim CERCLA Settlement
                              Policy' Issued on December 5,  1984" (September 30, 1997).
                              OSRE, The Orphan Share Implementation Notebook (August 26, 1996).
                              OSRE Fact Sheet, "Orphan Share Reform" (June 4, 1996).
                              OSRE Memorandum, "Interim Guidance on Orphan Share Compensation
                              for Setdors of Remedial Design/Remedial Action and Non-Time-Critical
                              Removals" (June 3, 1996).

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                                                                                        3-19
3.3
3.3.A
Planning
3.3.B       Reporting
        Requirements
Planning and Reporting Requirements

Planning for liability issues begins with the PRP search, which develops
information sufficient to establish the liability of PRPs. That information is
later used in setdement negotiations, in support of decisions to issue
administrative orders under section 106, and in cost recovery proceedings.
This process is described more fully in Chapter 4,  PRP Search, Notification,
and Information Exchange.

Reporting requirements relating to the process of establishing liability,
negotiating with PRPs to conduct investigations and perform cleanup work,
and recovering response costs are discussed in the chapters describing diose
tasks.  Chapters with particular relevance to liability issues include
Chapter 4, PRP Search, Notification, and Information Exchange; Chapter
8, RD/RA Negotiations/Setdement; and Chapter  12, Cost Recovery.

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 3-20    Establishing CERCLA Liability
3.4
3.4.A         CERCLA
       Section 106(b)
     Reimbursement
               Petitions
Potential  Problems/Resolutions

Under CERCLA section 106(b)(2), PRPs that have complied with a section
106 order may seek reimbursement from the Hazardous Substance Super-
fund for the reasonable costs plus interest of a response action.  A person is
entitled to reimbursement if the person can establish that (a) he/she is not
liable under section 107(a) for response costs, or (b) the Agency's selection
of the response action was arbitrary and capricious or otherwise not in
accordance with law.
The party must file the petition for reimbursement widiin 60 days of
completion of the response action.  A party claiming that it is not liable
under section 107(a) must also show that the costs for which it seeks
reimbursement are reasonable. Where a party seeks reimbursement on the
grounds that EPA's selection of the response action was arbitrary or capri-
cious, reimbursement is limited to expenses incurred pursuant to the part of
the order found to be "arbitrary and capricious or otherwise not in accor-
dance with law."
Petitions for reimbursement are filed with EPA's Environmental Appeals
Board (EAB). After a petition is received, EAB sends a letter to the appro-
priate regional office soliciting a response to the petition.
When a region receives notice of a section 106(b) petition for reimburse-
ment, a regional case attorney is assigned to the case. The regional case
attorney should then contact the team coordinator of the Regional Support
Division's (RSD) Administrative and Judicial Procedures Team  and the
Office of General Counsel (OGC) contact for 106(b) petitions. RSD and
OGC then assign staff to the petition, who  provide support and work with
the regions to ensure national consistency in positions taken in response to
petitions.
The team may then eidier (a) file a response within 30 days of EAB"s letter
contending that die petitioner has not met one of the threshold require-
ments for reimbursement (e.g., die petitioner has failed to comply with the
section 106 order, or the required action has not been completed) or (b) file
a response widiin 60 days of EAB s letter addressing the merits  of die
petitioner's claims in support of reimbursement. If EAB denies a petition in
full or in part, die PRP may file an action for reimbursement in federal
district court.
References
EPA's Environmental Appeals Board Memorandum,  "Revised Guidance on
Procedures for Submitting CERCLA Section 106(b)  Reimbursement
Petitions and on EPA Review of Those Petitions" (October 9, 1996).
OSRE/OGC Memorandum, "Procedures for Coordinating Responses to
Section 106(b) Petitions Before die Environmental Appeals Board" (June 6,
1996).
OSWER Directive 9833.2, "Consent Orders and the Reimbursement
Provision Under Section 106(b) of CERCLA" Qune  12, 1987).

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                                                                                              3-21
3.4.6  Ability to Pay
3.4.C     Bankruptcy
A PRP s ability to pay the amount sought by the government is one of 10
criteria EPA considers in determining when it may be appropriate to accept
less than that amount in settlement, as described in EPA's CERCLA settle-
ment policy. EPA has adopted an "undue financial hardship" standard for
settlements with PRPs with limited financial resources and has created a
process of analysis to determine a setdement amount that is not likely to
create an undue financial hardship. The role of ATP in the Superfund
enforcement process is discussed in Chapter 12, Cost Recovery.
References
OSRE Memorandum, "General Policy on Superfund Ability to Pay Deter-
minations"  (September 30,  1997).
OSRE Memorandum, "Existing Ability to Pay Guidance and Models" (May
1995).

When a PRP files for bankruptcy, the Agency must decide how to respond.
It is not always appropriate  for the Agency to file a claim for recovery of
response costs or penalties or to otherwise participate in a bankruptcy case.
Therefore, EPA has issued guidance that identifies factors to be considered
when determining whether  to participate in a bankruptcy case, including
whether to pursue collection of costs or penalties against debtors witJi
CERCLA liabilities. Bankruptcy also creates other issues in CERCLA cases,
including issues related to abandonment of contaminated property, access to
property owned by die bankrupt parry, and the impact of the automatic stay
provided by die Bankruptcy Code on administrative  and judicial proceed-
ings. The role of bankruptcy in die Superfund enforcement process is
discussed in Chapter 12, Cost Recovery.
References
OECA Memorandum, "Guidance on EPA Participation in Bankruptcy
Cases" (September 30, 1997).
EPA, National Bankruptcy Lead Region Work Group, "A Bankruptcy
Primer for die Regional Attorney" (February 1994).

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4. PRP Search, Notification,
 and Information Exchange

-------
                                                                           4-i
              Chapter 4  PRP Search, Notification,

                    and Information Exchange


4.1   Description of Activity	1

      4.1.A   Introduction	 1
      4.1.B   Objectives of PRP Searches	 1
      4.1.C   General Approach to PRP Searches	3
              4.1.C.1   Baseline Search Tasks	4
              4.1.C.2   Specialized Search Tasks	4
              4.1.C.3   Managing the Search Process	5
      4.1.D   PRP Search Reports	6
      4.1.E   Key Players in the PRP Search Process	6
              4.1.E.1   Remedial Project Managers	8
              4.1.E.2   Regional Attorneys	9
              4.1.E.3   Civil Investigators or PRP Search Staff	9
              4.1.E.4   Contractors	10
4.2.  Procedures and Interactions	11

      4.2.A   Initiate Preliminary PRP Search	11
      4.2.B   Develop PRP Search Plan	11
      4.2.C   Baseline Search	 13
      4.2.D   Issue Section 104(e) Letters to Owners/Operators and
               Follow Up	14
              4.2.D.1   Statutory Authority	 15
              4.2.D.2   General Content of 104(e) Letters	15
              4.2.D.3   Municipal Sites	 18
              4.2.D.4   Insurance Information	18
              4.2.D.5   Written Response and  Due Date	18
      4.2.E   Compile, Organize, and Analyze 104(e) Letter Responses	19
              4.2.E.1   Responding to Freedom of Information Act Requests	19
              4.2.E.2   Enforcement Strategy for Non-Compliance with
                       Information Requests	20
              4.2.E.3   Administrative Order to Compel Compliance	20
              4.2.E.4   Judicial Action to Compel Compliance	21
      4.2.F   Conduct Witness Interviews	21
      4.2.G   Review Baseline Search Progress	22
      4.2.H   Prepare Baseline Report	23
      4.2.1     Management Review	23
      4.2.J    Issue Section 104(e) Letters to Generators and Transporters	24
              4.2.J.1   Municipal Sites	24
              4.2.J.2   De Minimi's and "De Micromis" Settlements	26
      4.2.K   Specialized Investigative Tasks	26
      4.2.L   Interim-Final Report	 27
      4.2.M   Interim Report Followup	28
      4.2.N   General Notice Letters	 28

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 4—ii    PRP Search, Notification, and Information Exchange
      4.2.0   Develop Information on PRP Waste Contribution	30
      4.2.P   On-Going Information Exchange	31
4.3   Planning and Reporting Requirements	33
      4.3.A   Planning	33
      4.3.B   Budget	33
      4.3.C   Reporting Requirements	33
4.4   Potential Problems/Resolutions	35
      4.4.A   Timing	35
      4.4.B   Clarifying Roles and Responsibilities	35
      4.4.C   Examples of Enforcing Information Requests	35
             4.4.C.1   The Cannons Sites	36
             4.4.C.2   American Thio-Chem Site	36
4.5   Activities Checklist	 37

Appendix:   PRP Search Plan	 41

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                                                                                            4-1
                 Chapter 4  PRP Search,  Notification,
                         and Information Exchange
4.1
4.1.A   Introduction
4.1.B   Objectives of
        PRP Searches
Description of Activity

The Potentially Responsible Party (PRP) search process is an investigation
into the parties associated with a Superfund site who may be liable for the
costs of remedying the release or threat of release of hazardous substances.
Effective PRP searches are fundamental to the Agency's enforcement
strategies of obtaining maximum PRP involvement in conducting response
activities and cost recovery.  For remedial sites, a PRP search should be
initiated concurrently with the listing Site Inspection (SI), or at the latest,
by the initiation of the National Priorities List (NPL) listing process.  PRP
search activities are generally a continuous process, not a discrete phase,
especially at the more complex sites.
Exhibit 4-1 presents an overview of the flow of activity during the PRP
search.

PRP searches accomplish several objectives:

   •   Identify PRPs who may be liable under section 107 of the Compre-
      hensive Environmental Response, Compensation, and Liability Act
      (CERCLA) and provide the information needed to issue General
      Notice Letters (GNLs) (liability standards are discussed in Chapter 3,
      Establishing CERCLA Liability).
   •   Provide information for Special Notice Letters (SNLs) and informa-
      tion release.
   •   Provide names of PRPs to ensure that the Agency provides construc-
      tive notice on the proposed plan (for remedial actions).
   •   Provide names of PRPs to be included in community relations
      mailing lists.
   •   Provide information for a waste-in list in order to do a volumetric
      ranking.
   •   Provide information to assess: possible full settlements for litigation
      risks in light of the PRPs' liability, allocation of their "fair share," and
      ability to pay response costs; possible partial settlements for the
      appropriateness of the settlement in light of the case remaining
      against the non-settlors; and statutory factors  (e.g., de minimis,
      mixed funding, divisible harm).
   •   Provide information on disposal for die Remedial Investigation (RI).
   •   Provide information on whether wastes are Resource Conservation
      and Recovery Act (RCRA) hazardous wastes for assessing potential
      Applicable or Relevant and Appropriate Requirements (ARARs).

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  4-2
PRP Search, Notification, and Information Exchange
4-1      Overview of the PRP Search Process
                                          PRP Search
                                            Plan
                                                       Initial Baseline
                                                       Search Tasks
                                                                               NOTE:

                                                                               This exhibit presents an overview of a
                                                                               typical PRP search. It is not intended as
                                                                               a prescribed process for every PRP
                                                                               search. A PRP search team should
                                                                               exercise professional discretion when
                                                                               deciding what process is appropriate for
                                                                               a particular site.
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-------
                                                                                                   4-3
4.1.C
   General
Approach
    toPRP
 Searches
   •    Document evidence that may be used in cost recovery actions
       (CERCLA section 107), CERCLA section 106 actions, access
       actions, and for liens.
   •    Promote PRP involvement in the response action.
Additionally, the Agency has found that a thorough PRP search enhances
EPA's success in negotiating with PRPs to conduct the response activity
under EPA supervision.
The extent of the initial search activities is determined by the nature of site
activities.  At time-critical removal sites, the initial search is limited in scope.
In contrast, the initial search activities at long-term remedial sites generally
are extensive. Although diere may be differences in the scope of initial
search activities at removal and remedial sites, the objectives of all PRP
searches, as stated previously, are the same. At removal sites, evidence of
liability must be obtained for section 106 Unilateral Administrative Orders
(UAOs) and for cost recovery. While the elements of a search at a removal
site are often similar to a search in connection with the remedial process,
time constraints and the level of expenditures may warrant modification of
the approach. PRP searches at removal sites are discussed in Chapter 2,
Removals.
Early identification of PRPs enables the Agency to promptly issue GNLs.
The early issuance of GNLs facilitates the formation of PRP steering
committees. Also, provision of waste-in information facilitates the PRPs'
agreement on allocations of costs. These negotiation techniques are dis-
cussed in detail in Chapter 5, RI/FS Negotiations/Settlement, and Chapter
8, RD/RA Negotiations/Settlement.
When PRPs are identified and notified early in the remedial process, there is
a greater possibility that they will decide to undertake appropriate cleanup
actions. Also, identified PRPs may help EPA locate other PRPs to share the
costs of the response activity. PRP involvement in the cleanup is generally
in the interest of both EPA, which can thereby conserve Fund monies, and
the PRPs, who avoid the transactional costs of litigation.
All regional personnel assigned to a site should function as a team to
perform the PRP search. Remedial Project Managers (RPMs) should utilize
the expertise of regional attorneys, Civil Investigators (CIs), and outside
contractors to conduct die numerous tasks of the actual search. In  theory,
PRP searches should begin as early as possible.  However, as a practical
matter, the exigencies of the site  determine the scope of the initial search
activities.  Search activities should continue during the response action until
all reasonably identifiable parties have been located.

Because the RPM is responsible for managing response actions at die site, it
is vital for the RPM and other members of die PRP search team to under-
stand the Agency's policies and procedures for completing a diorough PRP
search.
It is important to develop a PRP search plan.  In general, die initial stage of
a PRP search will involve 10  baseline tasks, and  is followed by development

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  4—4      PRP Search, Notification, and Information Exchange
4. I.C.I
      Baseline
Search Tasks
4.1.C.2
  Specialized
Search Tasks
of a baseline report, which summarizes the findings of the PRP search to
that point. Depending on die complexity of die site and odier factors, one
or more additional specialized tasks and/or repetition of one or more of the
baseline tasks also may be required. Once dhese are complete, an interim-
final report is issued.

For reasons of budget, timing, and standardization of site management,
EPA has selected a core group of tasks to be conducted at most sites. There
are 10 core search tasks diat should be executed during most baseline
searches.   The tasks are intended to provide the Agency witli basic informa-
tion about the site and die PRPs' involvement at die site. At some sites,
such as manufacturing facilities where off-site generators were not involved,
the search strategy may be tailored to fewer dian 10 tasks. These tasks are
set forth below:

  •   File review.
  •   Records compilation.
  •   Interviews.
  •   Tide search.
  •   Site Summary
  •   Categorization of PRPs.
  •   Development of waste-in information.
  •   Collection of corporate and financial information.
  •   CERCLA section 104(e)/RCRA section 3007 information request
      letters.
  •   Report preparation.
Depending on  the circumstances, it also may be appropriate to include
specialized tasks such as analyzing aerial photographs and compliance
history evaluations in the baseline tasks.

At complex sites with multiple generators, the completion of these 10 basic
investigative tasks does not conclude the PRP search. To conduct a thor-
ough search, the search strategy should provide for additional tasks and
document the rationale for including those tasks. Site-specific data gather-
ing problems are addressed by using "specialized" search tasks in conjunc-
tion with the 10 basic tasks. The specialized tasks provide further avenues
of investigation that assist the PRP search team in uncovering additional
information about the PRPs and their involvement at the site. While many
of the specialized tasks may be useful in some PRP searches, the same tasks
may not be useful in other searches. The PRP search team should exercise
professional discretion in determining which of the specialized tasks are
most applicable to a particular site.
Specialized search tasks are divided into three general categories:

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                                                                                                   4-5
                                   •   Sources of information.
                                           PRP file review (obtain through a section 104(e) request).
                                       -    Private citizen/PRP interview.
                                           Field survey.
                                           Site sampling.
                                           Enforcement tracking system (e.g., Comprehensive Environmen-
                                           tal Response, Compensation, and Liability Information System
                                           3/ Waste Local Area Network (CERCLIS 3/WasteLAN)).
                                       -    Deeds.
                                           Aerial photographs.
                                       -    EPA files (e.g., RCRA, EPCRA, TSCA, CWA).
                                       -    State enforcement files (e.g., CERCLA, RCRA, CWA).
                                           CERCLA administrative subpoena authority.
                                           Secretary of State corporate information.
                                           Follow-up 104(e) information request letters.
                                           Former employee/neighbors to site interviews.
                                   •   Waste stream analysis.
                                           Industrial surveys.
                                           Process  chemistry analysis.
                                           Waste stream inventory.
                                   •   Additional miscellaneous tasks.
                                           Compliance history.
                                           Financial assessment.
                                           Property appraisal.
4.1 .C.3        Managing    The PRP search team must ensure that all appropriate investigative tasks are
               the Search    conducted  at the site. Prior to initiating diese tasks, the team should
                   Process    formulate a search plan designed to  address site-specific situations (refer to
                                the appendix at the end of this chapter) using a combination of the 10
                                baseline tasks with  one or more of the specialized tasks. The PRP search
                                plan should be tailored to the circumstances of each case instead of attempt-
                                ing to pigeon-hole  the circumstances of each site into a fixed search format.
                                The PRP search tasks should be managed as an iterative process; task
                                interaction and repetition produces  broader and deeper information than if
                                the tasks were treated as discrete, insular units to be performed only once.
                                When  both die required and the necessary specialized tasks have been
                                completed, an interim-final report will be issued. The investigation should
                                continue after the interim-final report to foilowup on leads and to fill any
                                data gaps. The PRP search process is described in greater detail in section 2
                                of this  chapter.

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  4—6     PRP Search, Notification, and Information Exchange
4.1.D     PRP Search
                 Reports
4.1.E Key Players in
      the PRP Search
                 Process
A PRP search report for a site should present the facts pertaining to the
PRPs' liability. Generally at least two reports will be issued for every search,
die baseline report and the interim-final report (except in simple owner/
operator situations where die baseline report usually will suffice). Usually,
die baseline report is issued after die basic investigative tasks have revealed
information identifying:

   •   A chronological summary of site history.
   •   A summary of PRP liability at the site.
   •   Additional follow-up search needs.
Additional search tasks are conducted and the  interim-final report is issued
aft
                                 :er:
   •   All PRPs have been thoroughly identified.
   •   An opportunity for PRP input into die PRP search has been pro-
      vided.
   •   Liability inquiries have been resolved.
   •   Waste contribution to die site, financial viability, and PRP involve-
      ment at the site have been established.
Bodi reports should be divided into two deliverables. The "Site Chronology
and Property History" consists of a chronological presentation of known
facts widiout any interpretation or inferences regarding liability.  No
privilege is claimed for this deliverable.  Non-privileged material is not
protected from disclosure to PRPs or others  in litigation. The "PRP
Synopsis," which is privileged work product, includes an evaluation of die
evidence supporting liability.  Documents prepared in anticipation of
possible litigation are generally protected from disclosure by die work
product privilege. The regional case attorney should be involved in die
evaluation of the evidence supporting liability and should also be consulted
if there are questions about what materials are privileged. A more detailed
description of diis two-part report format is shown in Exhibit 4-2.
References
Office of Solid Waste and Emergency Response (OSWER) Directive
9834.3-2a, "PRP Search Supplemental Guidance for Sites in die Superfund
Remedial Program" (June 29, 1989).
OSWER Directive 9834.6, Potentially Responsible Party Search Manual
(August 1987).

The PRP search team typically includes die RPM, the regional case attor-
ney, and die CI or odier PRP search staff, such as an enforcement specialist
or cost recovery specialist.  Any of diese personnel, depending on die region
and die  circumstances in which die PRP search takes place, may take the
lead in managing die PRP search process.  This chapter describes a PRP
search in which the RPM is responsible for managing die PRP search.
Where a different team member takes die lead, die roles described in  diis

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                                                                                         4-7
4-2    PRP Search Report Format
  Deliverable 1: Site Chronology and Property History

  The Site Chronology and Property History section of the report should be a chronological
  presentation of known facts, which are properly referenced to supporting documentation.  This
  section contains no conclusions, interpretations, or inferences regarding liability. No privilege
  is claimed on any portion of this section.  Suggested subsections include:

    * Introduction
        -  Project Background
        -  Project Approach
        -  List of Contacts (listing public agencies that were contacted to collect information)
        -  Overview of Report

    *• Discussion of the Site
        -  Site History (including factual background  information about the site as well as a
           history of the facility):
           •  Site location and size
           •  Adjoining properties
           •  Brief description of site history to include:
               - Site owner/operator(s)
               - When operations began
               - Type  of operations at the site
               - Types of substances manufactured, treated, stored, or disposed
           •  Permits applied for or granted
           •  Warnings/violations issued by regulatory agencies
        -  Property History. This subsection summarizes the review of all title documents and
           presents a chain-of-title (including corporate name changes of property owners, as
           well as conveyances, quitclaims, deeds, and liens), with corresponding references to
           the relevant documentation

  Deliverable 2: PRP Synopsis

  The PRP Synopsis section of the PRP search report should be stamped "Privileged Work
  Product - Enforcement Confidential, Prepared  in Anticipation of Litigation."  Suggested
  subsections include:

    * Introduction

    * Discussion of the site. This subsection should refer the reader to the first section of the
       report

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 4—8     PRP Search, Notification, and Information Exchange
4-2 (cont.)   PRP Search Report Format
     + PR Ps
        - Statutory provisions & relevant policy/guidance
        - PRPs - Owner/operators.  Information obtained from the baseline tasks can be
          summarized, referenced, and placed in this subsection:
            •  PRP name
            •  Status (current owner, successor, etc.)
            •  Current address
            •  Headquarters address
            •  Registered agent
            •  President
            •  Current status
            •  Corporate information
            •  Narrative description of basis for inclusion
            •  References
            •  Nature and volume of hazardous substance(s) associated with PRP
            •  Reference to appendices or attachments for additional information, rankings, or
              groupings
            •  Financial information, ATP issues
        - PRPs - generators (same information as for owner/operators)
        - PRPs - transporters (same-information as for owner/operators)
        - Special PRP information

     * Special site information

     • Other parties associated with the site

     * Conclusions and recommendations

     * Appendix: PRP evidences sheets
                             chapter may vary.  Regardless of which team member takes the lead,
                             however, PRP searches are collaborative efforts in which members of the
                             PRP search team must effectively coordinate their efforts to achieve success-
                             ful PRP searches. In addition, where PRP search functions are performed
                             by a contractor, die contractor's work must be coordinated widi diat of the
                             team.

4.1 .E. 1        Remedial    An RPM responsible for managing a PRP search generally performs the
                  Project    following functions:
               Managers
                               •   Establish the PRP search priorities and strategy, in consultation with
                                   die regional case attorney and Superfund program management.

                               •   Manage contractor-conducted search tasks.

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                                                                                                   4-9
4.1. E.2
       Regional
     Attorneys
4.1.E.3
            Civil
 investigators
or PRP Search
           Staff
          Define the scope of the search, in consultation with the regional
          case attorney.
          Develop PRP search work assignments, budgets, and schedules.
          Coordinate contractor efforts and review baseline, interim, and
          final contractor deliverables, in consultation with the regional
          case attorney.
       - Introduce the contractor to state and local government contacts.
   •    Issue information request letters.
   •    Ensure follow-up on all tasks necessary for conducting a complete
       search.
   •    Implement Quality Assurance/Quality Control (QA/QC) procedures
       to ensure the accuracy of data gadiered during the search.
   •    Ensure that adequate information is gathered for SNLs (including
       the universe of PRPs and waste-in information).
   •    Ensure that adequate evidence of a PRP's liability and Ability to Pay
       (ATP), where appropriate, is gathered.
   •    Ensure that the universe of PRPs, viewed broadly, is included in
       community involvement mailing lists.
RPMs must coordinate with the regional case attorney to determine
whether the collected information is sufficient to establish the PRPs'
liability.

Regional case attorneys are responsible for directing case development for
each site. Paralegals may also assist in the PRP search. Attorneys' level of
involvement will vary from region to region. Some attorneys participate
actively in the search activities. Other attorneys do not get involved  in the
process until the review of either the baseline or interim final PRP search
report. RPMs should seek to involve the attorneys as early as possible to
ensure that the search produces sufficient credible evidence of the PRPs'
liability. For example, RPMs should consult with the attorneys about
developing information request letters and devising appropriate PRP
interview questions. A regional attorney also should be consulted on the
scope of the PRP search.
In general, regional attorneys can provide advice to the RPM on CERCLA-
specific legal issues which may have some bearing on the case in general and
the search in particular. For example, attorneys can provide advice about
complex liability issues such as corporate successors and possible legal
defenses, such as the innocent landowner defense.

There is at least one CI in each region.  CIs may assume responsibilities for
developing a regional PRP search strategy that is consistent with EPA policy
and for overseeing the implementation of that strategy.  CIs can provide the
PRP search team with investigative skills and authorities that are often not
available in the contractor community.

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 4—10    PRP Search, Notification, and Information Exchange
                               The CI's role in enforcement activities varies from region to region.  In
                               general, CIs may:

                                 •   Manage the PRP search, including overseeing the contractor's work
                                     assignment.
                                 •  ' Provide investigative assistance to RPMs, OSCs, and the PRP search
                                     Work Assignment Manager (WAM).
                               CIs usually conduct crucial interviews or follow up investigation leads. For
                               example, CIs can be valuable resources when information is needed about
                               additional parcels of land and there is insufficient time to assign a contractor
                               to the task, or when a lack of records requires numerous interviews, phone
                               calls, and database searches.
                               In some regions, CIs play active roles in enforcement activities.  For ex-
                               ample, CIs conduct preliminary field work and help define the scope of a
                               contractor's work assignment. The CI's role may vary depending on the
                               site, and RPMs should coordinate with regional management to ensure the
                               proper utilization of CI resources.

4.1 .E.4     Contractors    The Agency secures the assistance of contractors to conduct some PRP
                               search activities,  such as most baseline search tasks. By actively managing
                               and overseeing the processes involved in the PRP search, the RPM should
                               ensure that the contractor produces a quality product. Contractors must
                               not be assigned subtasks that are inherently governmental functions, such as
                               deciding who is a liable/viable PRP, who receives a section 104(e) letter, or
                               whether a response is adequate.
                               Regions have access to contractor support under the Enforcement Support
                               Services (ESS) contracts, which provide for a variety of PRP search support
                               activities.
                               For any work assignment costing more than $25,000, an Independent
                               Government Cost Estimate must be developed by the WAM.
                               Tasks assigned to the contractor should be well defined.  The RPM should
                               confirm that the contractor has performed the assigned tasks. One way of
                               doing this is to require the contractor to submit interim deliverables (e.g.,
                               baseline report, status  reports). By reviewing these deliverables, the RPM
                               can confirm that the contractor has not lost sight of the  defined search
                               objectives.

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                                                                                               4-11
4.2
4.2.A
4.2.B
        Initiate
  Preliminary
  PRP Search
Develop PRP
 Search Plan
Procedures and  Interactions

This section is designed to assist the RPM in improving the timeliness and
quality of the PRP search process. Throughout the process, RPMs must
work toward the objective of obtaining relevant information on the liability
of the PRPs.
Exhibit 4-3 provides a flowchart of the specific activities discussed in this
section. A PRP search activities checklist is included in section 5 of this
chapter.

A preliminary PRP search is initiated when a site is discovered. The object
of a preliminary search is to determine obvious PRPs who may be available
to conduct appropriate response activity at die site. Once the site has
undergone a listing SI, die RPM must conduct a more extensive PRP search
to locate other PRPs.

An effective enforcement strategy requires early and continuous involve-
ment of all key players, including RPMs,  regional attorneys, and CIs. The
development of a search plan consists  of six activities:

  •   Development of a plan for managing the PRP search, including the
      baseline search, issuance of information request letters, additional
      search tasks, investigative strategy for identifying generators and
      transporters, follow-ups, and evidence reviews (see the appendix and
      section 5 of this chapter for an outline of possible considerations).
      In developing the plan, the RPM should:
          Avoid the use of generic work  plans that do not consider the site-
          specific circumstances.
          Work with regional attorneys to tailor the strategy so that it
          accurately reflects the actual search requirements of the particu-
          lar site.
          Take into account site-specific information needs.
  •   Identification of special problems that require specialized strategies,
      such as:
          Municipal landfills.
          Battery recycling sites.
          Area-wide ground water contamination or stream contamination
          where sources are not clear. The RPM should set forth special
          survey needs and special investigatory tasks for the remedial
          investigation.
          Remote sites, such as situations in which one company owned or
          operated multiple sites and transshipped wastes between them.
  •   Development of roles and responsibilities for all members of the PRP
      search team.
                                     Identification of review points to assess the thoroughness and
                                     completeness of the PRP search.

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                                                                                                                                                                                   w
  o
DAYS
                             90
                            DAYS
 180
DAYS
 270
DAYS
360
DAYS
450
DAYS
 540
DAYS
no
33
•0
                                                                                                                                                                                   Oi
                                                                                                                                                                                   o
                                                                                                                                                                                   o
                                                                                                                                                                                   (D
                                                                                                                                                                                   (A
                                                                                                                                                                                   V)
                                                                                                                                                                                   O


                                                                                                                                                                                   O
• flEWElV AGENCY FILES          I
• DEVELOP PRP SEARCH STRATEGY  I
• INITIATE WORK ASSIGNMENT (IF CONTRACTOR SUPPORT IS NEEDED!

  • HOLD tV/l KICK-OFF MEETING WITH CONTRACTOR

      • REVIEW. REVISE, AND APPROVE WORK PLAN

       • COLLECT FEDERAL. STATE, AND LOCAL GOVT RECORDS
       • PREPARE LIST OF POTENTIAL INTERVIEWEES
       • DEVELOP AND REVIEW INTERVIEW QUESTIONS

          • CONDUCT FIRST-ROUND INTERVIEWS: GOVT OFFICIALS (AND
            PRIVATE PARTIES. IF POSSIBLEI
          • PERFORM TITLE SEARCH

                   • ACCESS CEHCLISIIIAVasteLAN FOR EXISTING PRP INFORMATION
                   • UPDATE PRP NAMES AND MAILING ADDRESSES

                       •  PREPARE LIST OF 104IEI LETTER RECIPIENTS
                       •  DEVELOP AND REVIEW 1041EI LETTER QUESTIONS
                       •  ISSUE FIRST-ROUND 104IE) LETTERS
                       •  SET UP CORRESPONDENCE TRACKING SYSTEM

                                   • REVIEW FIRST-ROUND 104(6) LETTER RESPONSES
                                   • COLLECT ALL RECORDS FROM OWNER/OPERATOR
                                     AND NON-GOVERNMENT SOURCES

                                        • DEVELOP ADDITIONAL PRP NAMES AND MAILING ADDRESSES
                                        • PROVIDE OPPORTUNITY TO PRPs FOR INPUT INTO PRP SEARCH
                                                                                                                 BASELINE REPORT PHASE
                                                   • ISSUE SECOND-ROUND 104IEI/FOLLOW-UP LETTERS (AS NECESSARY AND APPROPRIATE)

                                                           • REVIEW SECOND-ROUND 104IEI/FOLLOW-UP RESPONSES

                                                                      • COLLECT INFORMATION ON PRP FINANCIAL STATUS

                                                                                       • PREPARE BASELINE REPORT
   FOLLOW-UP PHASE
    LEGEND

    CONTRACTOR RESPONSIBILITIES

    EPA RESPONSIBILITIES

    SUGGESTED STARTING POINT*
                                                                                            • UPDATE PRP SEARCH STRATEGY
                                                                                            • MEET WITH CONTRACTOR IIF APPLICABLE! TO DISCUSS FOLLOW-UP TASKS
                                                                                            • IMPLEMENT BASELINE REPORT RECOMMENDATIONS

                                                                                                    • PREPARE LIST OF SECOND-ROUND INTERVIEWEES
                                                                                                    • DEVELOP AND REVIEW SECOND-ROUND INTERVIEW QUESTIONS

                                                                                                         • CONDUCT SECOND-ROUND INTERVIEWS
                                                                                                         • IDENTIFY GENERATOR/TRANSPORTER INFORMATION SOURCES

                                                                                                             • COLLECT GENERATOR/TRANSPORTER RECORDS

                                                                                                                      • PROVIDE OPPORTUNITY FOR PRP INPUT INTO
                                                                                                                        COMPLETENESS AND THOROUGHNESS OF PRP SEARCH

                                                                                                                             • SET-UP TRANSACTIONAL DATABASE

                                                                                                                                • CONDUCT SPECIALIZED SEARCH TASKS

                                                                                                                                       • ISSUE THIRD-ROUND 104IEI/FOLLOW-UP
                                                                                                                                          LETTERS IIF NECESSARY AND APPROPRIATE)

                                                                                                                                                 • REVIEW THIRD-ROUND 104IE)/
                                                                                                                                                   FOLLOW-UP RESPONSES

                                                                                                                                                         • DEVELOP VOLUMETRIC
                                                                                                                                                           RANKING/WASTE-IN LIST
                                                                                                                                                         • CONDUCT FINANCIAL
                                                                                                                                                           ASSESSMENT OF PRPS

                                                                                                                                           PREPARE INTERIM-FINAL PRP SEARCH REPORT'

                                                                                           	ISSUe GENERAL NOTICE LETTERS	•

                                                                                           	ISSUE SPECIAL NOTICE LETTERS    •
 At sites where no volumetric ranking/waste-in list or financial assessment of PRPs is done the interim-final PRP search report should be prepared 60 days after review of third-round
 104(e)/follow-up responses. At sites where a volumetric ranking/waste-in list or financial assessment of PRPs is done the interim-final PRP search report should be prepared 120 days
 after these tasks.

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                                                                                                  4-13
                                   •   Development of a detailed scope of work for contractors that
                                       includes phased deliverables followed by RPM review and specifica-
                                       tion of die professional skill mix to be applied by die contractor.
                                   •   Development of a plan to provide opportunities for PRP input into
                                       the PRP search.
                                After die PRP search plan has been formulated, the RPM may begin to
                                implement and manage die process of collecting and analyzing relevant
                                information about die PRPs.  The contents of a PRP search plan are
                                included as an appendix to diis chapter.

4.2.C          Baseline    The preparation of a PRP search baseline report may, in a typical case,
                                require six to nine mondis (refer to die flowchart presented in Exhibit 4-3).
                                The initial steps include developing a PRP search plan, formulating the
                                work assignment, and reviewing and accepting the contractor's work plan.
                                By structuring die execution of the 10 baseline tasks  into interrelated and
                                iterative steps, die RPM can effectively exercise his/her oversight audiority.
                                RPMs should note diat diis iterative approach is merely one of many logical
                                methods for organizing search activities.  Odier approaches may be more
                                appropriate in certain situations.
                                A suggested structure for conducting die baseline tasks prior to the prepara-
                                tion of the baseline reports is presented below:

                                   •   Conduct preliminary records review.
                                          Conduct title search to identify past and present site owners and
                                          possibly to identify adjacent property owners for possible future
                                          reference.
                                          Identify government agencies diat may have relevant informa-
                                          tion and collect documents.
                                          Conduct interviews to develop information on site operations
                                          that may not be recorded in documents.
                                          Update and verify names and addresses.
                                   •   Issue information request letters to owners and operators as autho-
                                       rized by section 104(e) of CERCLA and section 3007(a) of RCRA.
                                   •   Perform records compilation, organization, analysis, and follow-up.
                                          Collect and copy all owner/operator records.
                                          Organize files into a useful and easily accessible source of
                                          information.
                                          Develop a concise history of the site and operations at the site;
                                           review for information gaps.
                                           Obtain additional information about PRPs, including financial
                                          status.
                                           Develop a list of other possible PRPs, identifying generators and
                                           transporters, and, if possible,  their waste contributions.
                                          Verify PRP names and addresses.  Ensure diat any name changes,
                                           mergers, acquisitions, and dissolutions are accurately recorded.

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 4—14    PRP Search, Notification, and Information Exchange
4.2.D  Issue Section
         104(e) Letters
            to Owners/
        Operators and
              Follow Up
           •   For persons and unincorporated entities, this information
               should include their association widi other PRPs and
               involvement at die site.
           •   For corporations, diis information should include die date
               of incorporation, whether the corporation currently exists,
               and names of parent or successor corporations. The
               regional case attorney should review the evidence for all
               PRPs where liability is based on a parent/subsidiary or
               successor theory.
          Follow up on all leads to ensure a comprehensive identification
          of PRPs involved at the site. Confirm diat sufficient evidence
          has been collected to establish the elements of liability for each
          owner/operator, generator, and transporter.  If sufficient evidence
          for some generators and transporters cannot be collected in time
          for inclusion in the baseline report, this work should be com-
          pleted in die follow-up phase of the PRP search.
   •   Prepare the baseline report (refer to die format in Exhibit 4-2).

The initial steps in the baseline search, discussed above, will produce basic
information about the PRPs at a site. The information will identify owners,
operators, and generators (or provide leads on generators). As part of die
baseline search, die owner or operator should be required to provide
information that is as complete as possible under the circumstances.
The contractor can develop an initial list of people who should receive
information request letters; however, the RPM, in consultation with
regional counsel, is ultimately responsible for selecting die recipients.
Information request letters may be  issued in one of two ways: as separate
letters or as part of die GNL.
Typically, the information requested during die baseline search includes
details concerning die waste operations and waste management practices of
the past and present owners/operators.   It also seeks particular information
on the time period of disposal or treatment and on generators, transporters,
waste volumes, and die nature of the hazardous substances at and sent to die
facility.  The RPM should specifically request information on die RCRA
designation of all waste the PRP sent to die facility or site. The facts
obtained from the recipients also will assist regional management to identify
additional PRPs, issue additional information requests,  and conduct
interviews. If information on generator and transporter PRPs is not
available in time for inclusion in die baseline report, it may be developed
later for inclusion in die interim-final report.
The facts collected from die response to an information request letter will
help die RPM determine whether die respondent should receive a GNL.
For this reason, the Agency has articulated a preference for using informa-
tion request letters to gather die initial  facts about PRPs. Interviews can be
used in conjunction widi information request letters to supplement and/or
accelerate information gadiering.

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                                                                                               4-15
4.2.D.1
     Statutory
     Authority
4.2.D.2
       General
   Content of
104(e) Letters
Section 104(e) of CERCLA and section 3007(a) of RCRA authorize the
Agency to issue information request letters.  RCRA section 3007 informa-
tion gathering authority applies to any site with hazardous wastes as defined
in section 1004(5), and is not limited to sites regulated under Subtitle C.
The authority to conduct information gathering activities has been del-
egated to the Assistant Administrator (AA), OSWER and the AA, Office of
Enforcement and Compliance Assurance (OECA) by Delegation 14-6
(revised May 11, 1994).  Some of diis authority, including the authority to
issue section 104(e) and section 3007(a) information request letters, has
been further delegated to the regional administrators.
Delegation 14-6 requires regional administrators and the AA, OSWER to
consult with the AA, OECA (or his/her designee) before issuing compliance
orders or subpoenas. On September 30, 1994, the Director of the Regional
Support Division (RSD) of OECA's Office of Site Remediation Enforce-
ment (OSRE) waived this consultation requirement for administrative
subpoenas and UAOs to compel compliance, so long as those subpoenas or
UAOs do not deviate significantly from die Agency's model subpoena or
model Administrative Order (AO) for CERCLA information requests.
Reference
OSRE Memorandum, "Consultation with OECA under CERCLA Delega-
tion 14-6" (September 30, 1994).

The information request letter should identify the site and briefly describe
it.  The letter should cite EPA's statutory authority under section 104(e) of
CERCLA and section 3007(a) of RCRA to request the information. The
104(e) letter should indicate that the Agency plans to vigorously enforce its
information gathering authority.  RPMs should specifically refer to the
enforcement provisions in section 104(e)(5)  of CERCLA. RPMs also
should give a general statement setting forth the purpose of the request and
its relationship to die overall case.
Recipients should be requested to provide information as indicated in the
1988  "Final Guidance on Use and Enforcement of CERCLA Information
Requests and Administrative Subpoenas."  This includes die following
categories of information:

   •   Owners.
          Names and addresses, including updated information.
          Periods and type of ownership.
          Corporate successorship.
          Site history during ownership including conditions, operations,
          and waste disposal. In addition, information about waste
          disposal and the substances disposed of during periods of past
          owners and operators of the facility. Waste disposal information
          should include the amount, nature, and location of die wastes.
          Information on whedier wastes were RCRA hazardous wastes
          (for use in evaluating potential ARARs).

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4—16    PRP Search, Notification, and Information Exchange
                                         Lessors/lessees and the above information about them.
                                         Information related to defenses.
                                         De minimis status.
                                         For small businesses, individuals with control (including share-
                                         holder information).
                                     Operators.
                                         Similar to above.
                                         Names and addresses of individuals in charge of operation and
                                         waste disposal practices.
                                     Financial information (should not be requested in a first-round
                                     information request unless the liability of the recipient is well
                                     established).
                                         Information about die PRP's ability to pay for response actions.
                                         Insurance information (PRP's comprehensive general liability
                                         and environmental impairment insurance).
                                     Information that die owner/operator has concerning wastes at the
                                     site and possible generators/transporters.
                                         Records of names/addresses, quantities, and substances.
                                         Any arrangements made widi regard to materials sent to or from
                                         die site.
                                     A description of information die owner/operator has on the total and
                                     each shipment of materials transported to, or stored, treated, or
                                     disposed of at the site.
                                         Dates of shipment or disposal.
                                         Quantity and nature of die materials.
                                         Hazardous substances (as defined in 40 Code of Federal Regula-
                                         tions (CFR) section 302.4) contained in die materials. This
                                         includes information on die waste and waste stream as possible
                                         RCRA hazardous wastes to enable die Agency to determine if
                                         RCRA may be an ARAR (e.g., whedier die land ban applies).
                                         Updated names and addresses of parties involved in these
                                         transactions.
                                     Documents.
                                         Copies of all business records relating to activities at the site,
                                         including customer lists, gate logs, ledgers, invoices, accounts
                                         receivable and back-up income records for taxes, and correspon-
                                         dence.
                                     Names and addresses of individuals who have information regarding
                                     die above.
                                     Any data or studies resulting from environmental investigations at
                                     die site.

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                                                                 4-17
   •   A description of the files searched by the person (or corporation) in
      response to the Agency's request.
   •   Special information for particular classes of sites, such as municipal
      landfills.
   •   A description of the recipient's personal or corporate relationship to
      the site.
Sample initial information request letters tailored to large businesses and
small businesses/individuals and sample  instructions for responding to diose
letters were made available as attachments to die 1995 memorandum
"Transmittal of Sample Documents for More Effective Communication in
CERCLA Section 104(e)(2) Information Requests." Similarly, sets of
questions addressing specific issues diat commonly arise at NPL sites (e.g.,
successor liability, ability to pay, lead battery facilities, polychlorinated
biphenyl sites) were made available on the "Disk Repository of Current
CERCLA Section 104(e) Questions." Section  104(e) letters also may
encourage PRP  input in die PRP search  process and the larger Superfund
process leading to settlement, providing  PRPs with the opportunity to
supply information they feel is relevant to the process, including die identity
of other parties diat should be PRPs.
The  response to a section 104(e) letter must be in writing. The letter
should indicate  that die PRP is responsible for informing die Agency if any
information contained in die PRP s response is confidential and subject to
protection under section 104(e) of CERCLA. Any such information should
be clearly marked and submitted separately from information for which no
claim of confidentiality is made.
The  Agency's statutory information-gadiering audiority is not limited to
collecting facts direcdy related to the hazardous substance release. EPA has
audiority to seek any information diat is reasonably calculated to lead to
information about die release.
In some cases, die recipient will be unable to provide EPA widi  die informa-
tion  sought. Therefore, the RPM or regional attorney should include a
request diat die person (or corporation)  submit an affidavit,  signed by a
corporate officer, describing the scope of his/her investigation if die search
does not disclose all of the information sought. The information request
letter should also inform die recipient about opportunities for consultation
with EPA.
References
OSRE Memorandum, "Disk Repository of Current CERCLA Section
104(e) Questions" (February 29, 1996).
OSRE Memorandum, "Transmittal of Sample Documents for More
Effective Communication in CERCLA Section 104(e)(2) Information
Requests" Qune 30, 1995).
OSWER Directive 9834.4A, "Guidance on Use and Enforcement of
CERCLA Information Requests and Administrative Subpoenas" (August
25, 1988).

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  4—18    PRP Search, Notification, and Information Exchange
4.2.D.3
     Municipal
          Sites
4.2.D.4
     Insurance
   Information
4.2.D.5
       Written
Response and
      Due Date
As provided in the 1989 "Interim Policy on CERCLA Settlements Involving
Municipalities or Municipal Wastes," all municipal and private party owner/
operators and generator/transporters should be included in the information
gathering process.  In die initial set of questions to owner/operators, it is
important to request information on the nature of wastes disposed of at the
site, including whether Municipal Solid Waste (MSW) and sewage sludge
were deposited. The identities of transporters and persons who arranged for
disposal should be sought. Records should be collected and reviewed.
References
OSRE Memorandum, "Policy for Municipality and Municipal Solid Waste
CERCLA Settlements at NPL Co-Disposal Sites" (February 5, 1998).
OSWER Directive 9834.13, "Interim Policy on CERCLA Settlements
Involving Municipalities and Municipal Wastes" (December 6, 1989).

Section  104(e)(2)(c) of CERCLA expressly grants the Agency authority to
request information relating to a party's ability to pay for or to perform a
response action. In effect, die Agency has the authority to ascertain  whether
a PRP's  insurance policy may cover and is sufficient to pay for die costs of
site remediation.  RPMs, in consultation with regional attorneys, should
inquire about die PRP's comprehensive general liability and environmental
impairment insurance. Two approaches should be used to obtain informa-
tion about the PRP's insurance coverage:

   •   Ask general questions.
   •   Request a copy of die policy.
Requests for information about die PRP's insurance policies should  be as
neutral as possible. Avoid using terms such as "pollution exclusion,"
"sudden," "non-sudden," or "accidental," as these terms have special mean-
ing in environmental insurance law. The PRP should be asked to provide
information such as die name of die company(s), die policy number, die
effective dates of die policy, and die "per occurrence" limits of each policy.
RPMs should request that die PRP provide a copy of its insurance policy.
This is an effective way to obtain  necessary insurance information without
having the PRP risk compromising its coverage. If the PRP does send a
copy of die insurance policy, the regional case attorney should be consulted
to determine the extent of the PRP's coverage.

The information request letter should require a written response under oath
in an affidavit and contain a definite due date. This date should reflect the
type and volume of information that the RPM anticipates will be necessary
for the recipient's answers to be responsive.  Generally, 30 days from the
date of receipt is deemed to be an adequate time for responding.
RPMs should inform the recipient about civil penalties that may be  im-
posed for failing to respond to an information request letter.  Under section
104(e)(5)(B)(ii) of CERCLA, the Agency may request that a court impose
penalties of up to $27,500 per day for unreasonable non-compliance with

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                                                                                               4-19
4.2.E        Compile,
        Organize, and
                 Analyze
          104(e)  Letter
             Responses
 4.2.E.1      Responding
           to Freedom of
         Information Act
                 Requests
the information request ($25>000 for non-compliance taking place prior
January 30, 1997).
RPMs should send the letter by certified mail, return receipt requested.
RPMs should avoid using post office box addresses because there may be no
signature to indicate receipt of the letter. The information on the return
receipt provides the Agency with proof (die signed receipt card) that a
representative of die PRP received die letter.
Owner/operator responses to information request letters should be available
before the preparation of the baseline report.  The information in die
responses should be analyzed with an eye toward extracting information diat
can be presented in the baseline report and die PRP evidence sheets (refer to
Exhibit 4-2 to see  die format for this information). The most important
information request issue is review and follow-up; therefore, it should be
noted diat a more detailed information request may be issued after die
baseline report has been prepared. In situations where die response to
section 104(e) letters appears false, die RPM should refer the situation to a
regional attorney.
Responses to information requests should be organized alphabetically by
PRP and placed in an appendix to die baseline report. Documents for
which PRPs have asserted claims of confidentiality should be clearly
marked.  Requests for disclosure of such documents should be discussed
widi a regional attorney.  References to die information contained in a
response should be made to this appendix. By organizing die responses in
diis manner, die RPM gready simplifies die Freedom of Information Act
(FOIA) response process in diat die information request responses are
readily accessible for review, copying, and dissemination at the proper time.

PRPs may request information under die FOIA, RPMs should  agree to
provide only the information and documents that are widiin die scope of a
proper request.  Under FOIA exemption 7, EPA can decline to provide
investigatory records compiled for law enforcement purposes to  die extent
diat the production of such records would interfere widi enforcement
proceedings. The  RPM also may decline to provide pre-remedial delibera-
tive process material under FOIA exemption 5.  RPMs should provide only
die information diat the statute requires. RPMs are encouraged to send
PRPs die non-enforcement sensitive, factual portion of die baseline or
interim-final report (Deliverable 1 of the PRP Search Report Format in
Exhibit 4-2).  If RPMs have any questions as to die appropriateness of
complying widi the FOIA request they should contact a regional attorney.
RPMs may choose to create a publicly available repository of site informa-
tion.  This technique reduces die number of FOIA requests received by
EPA. because interested parties  have direct access to the data they would
otherwise seek using FOIA requests.  In addition, the creation of a public
repository for site  information  is consistent with EPA's policy of expediting
the CERCLA settlement process by releasing information on PRP waste
contribution as soon as practicable in order to facilitate PRP organization
and coalescence.

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 4—20    PRP Search, Notification, and Information Exchange
4.2.E.2    Enforcement
             Strategy for
        Non-Compliance
       with Information
                Requests
4.2.E.3   Administrative
                 Order to
                  Compel
             Compliance
Reference
OSWER Directive 9834.0, "Releasing Identities of Potentially Responsible
Parties in Response to FOIA Requests" (January 26,  1984).

If recipients of section 104(e) letters ignore EPA's request for responses
within the specified time (usually 30 days) or provide incomplete answers,
die region is encouraged to use alternative methods to follow up and then
consider the appropriateness of using one or more of the following enforce-
ment strategies:

   •   Send a follow-up 104(e) letter stating that, if the party fails to
      comply with die information request, EPA may elect to issue an AO
      or initiate a judicial action to compel compliance, including possible
      assessment of penalties. A sample 104(e) follow-up letter is cited
      below.
   •   Issue an AO to compel compliance with the request for responsive
      written information.
   •   Initiate a judicial action seeking:
         A court order compelling the recipients to provide the requested
         information and/or documents.
         Civil non-compliance penalties.
The RPM should consult with a regional attorney to decide which enforce-
ment strategy to implement at a particular site.
Reference
OSRE Memorandum, "Transmittal of Sample Notice Letters: 1) Demand;
2) General Notice; 3) Special Notice; and 4) Follow-Up 104(e)" (July 26,
1996).

Under section 104(e)(5)(A), the Agency can issue an AO to compel compli-
ance with an information request. AOs are issued by EPA and involve a
notice and an opportunity for consultation.  Consequently, EPA can
respond prompdy to a recipient's non-compliance. The regions no  longer
need to consult witJi RSD personnel before using AOs to compel compli-
ance with a 104(e) information request, as long as the order does not deviate
significandy from EPA's model order. However, if the recipient continues to
ignore the request for information, die Agency will have to refer a petition
to DOJ to enforce EPA's AO. This process may be time-consuming.
References
OSRE Memorandum, "Consultation witJi OECA under CERCLA Delega-
tion 14-6" (September 30, 1994).
OSRE Memorandum, "Model Administrative Order for CERCLA Informa-
tion Requests" (September 30, 1994).

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                                                                                                4-21
4.2.E.4
      Judicial
    Action to
      Compel
 Compliance
4.2.F
   Conduct
   Witness
Interviews
Section 104(e)(5)(B) of CERCLA authorizes the Attorney General to
initiate a civil lawsuit to compel a person to respond to the Agency's infor-
mation request. In addition to ordering compliance, die court is authorized
to assess substantial monetary penalties against a PRP who has failed to
respond. These civil penalties are based on strict liability. EPA does not
have to prove that the PRPs intended to violate the law by not responding
in a timely manner. Therefore, die fact diat a recipient says diat he/she did
not intend to violate die law is irrelevant.  The PRP is still subject to civil
penalties imposed by the court.
When the Agency refers a case to DOJ to enforce an information request,
the referral should be handled in accordance with the procedures set forth in
the January 1988 "Expansion of Direct Referral of Cases to die Department
of Justice." In time-critical situations, the RPM should refer to "Procedures
for Processing Oral and Other Expedited Referrals" and die April 1988
"Expansion of Direct Referral of Cases to the Department of Justice."
Section 4 of this chapter discusses specific case examples of the Agency
using judicial action to enforce its information requests.
References
OSWER Directive 9891-5A, "Expansion of Direct Referral of Cases to the
Department of Justice" (January 14, 1988).
Office of Enforcement (OE) Memorandum, "Procedures for Processing
Oral and Other Expedited Referrals" (December 1987).

Interviews are generally performed under diree scenarios:

   •    Documents do not exist and EPA must rely solely or heavily upon
       interviews.
   •    Documents do exist, but EPA needs to clarify the content of the
       documents, and die  interviewee has knowledge of, or is in possession
       of, the documents.
   •    EPA wants to develop leads on additional PRPs or evidence for
       liability determinations.
The PRP search team should identify witnesses to be interviewed as early as
possible in the PRP search.  It may be advantageous to interview parties
prior to issuance of 104(e) letters. The PRP search team should evaluate a
number of potential considerations to determine the appropriate timing of
interviews with respect to other search tasks. The team should consider, but
not be limited to, the following factors when deciding to conduct inter-
                                views:
                                      Nature and volume of information already gadiered.
                                      Nature and volume of information potentially to be gained from
                                      interviews.
                                      Time required to plan, coordinate, and conduct interviews.
                                      Timing considerations.

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 4-22    PRP Search, Notification, and Information Exchange
                                  •   Capabilities and availability of the interviewer(s).
                                  •   Location and availability of the interviewees.
                                  •   Sources of interviewees.
                                  •   Documentation or admissibility requirements.
                                Early interviews often can expedite the PRP search and conserve resources.
                                RPMs should continue to evaluate the need for witness interviews as the
                                PRP search progresses. Interviews should be performed by personnel who
                                have experience and/or specialized training in how to conduct interviews,
                                evidentiary collection processes, and due process requirements. Interviews
                                are usually performed by CIs, but in some cases regional attorneys and
                                RPMs have performed or participated in interviews.
                                Former employees or adjacent landowners are often the best sources of
                                information about a facility's operating, waste generation, and waste dis-
                                posal practices.  They may also be valuable sources of information about the
                                involvement of management in waste disposal and the names of other
                                material witnesses. RPMs should work together with regional attorneys to
                                ensure that state law regarding the interviewing of witnesses is followed. For
                                example, in some states, interviews of current employees must be conducted
                                in the presence of corporate counsel.
                                Written statements signed by witnesses should be obtained as soon as
                                possible after interviews.  The statement should be prepared in the first
                                person,' dated, and signed (with any accompanying appendices attached) to
                                allow use as a court exhibit later, if needed.  Witnesses should always be
                                given the opportunity to review statements before being asked to sign them.

4.2.G           R6Vi6W    The RPM is responsible for managing the search in accordance with the
                Ra^pline    strategy, for updating the strategy as necessary, and for meeting schedules.
                  -»      .     Exhibit 4-3 shows these responsibilities in detail.
                  Search
                                RPMs must ensure that sufficient follow-up is being done so that the
                                baseline report contains complete and accurate information in light of its
                                limited purpose. This is particularly important with regard to owner/
                                operator liability and financial viability; updated PRP names and addresses;
                                information from owners, operators, and the state about the volume and
                                nature of substances sent to the site and the contributing parties;  and the
                                information that is being used to determine whether a person should receive
                                a notice letter and the evidence of each PRP's liability.  It is important to
                                review responses to section 104(e) requests for completeness. RPMs also
                                must ensure that the leads uncovered by the contractor during the investiga-
                                tion are followed up  and that the action taken is properly documented.
                                Follow-up letters to section 104(e) requests may be needed when the PRPs
                                fail to respond adequately or when EPA identifies  other relevant pieces of
                                information.
                                It is important that both the contractor and the RPM keep records of initial
                                and follow-up actions and determinations so that a well-documented trail is
                                maintained. Contacts with both interviewees and records sources should be

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                                                                                                 4-23
4.2.H
        Prepare
       Baseline
         Report
4.2.1
Management
        Review
documented. This ensures that if it became necessary to reconstruct the
investigation, sufficient documentation would exist to determine what leads
had been followed up and whether all reasonably available sources of
information had been exhausted even if personnel had changed since the
original PRP search.  This written record will attest to the thoroughness and
completeness of a particular PRP search.

The baseline report presents a concise summary of die information obtained
from the baseline search activities. The baseline report consists of two
separate deliverables.  The known facts about die site and its PRPs are
summarized without  interpretation in the first section of die report, the
"Site Chronology and Property History." Back-up information is set forth
in supplemental appendices.  The second section of the report, the "PRP
Synopsis," includes interpretation and analysis of evidence of liability and
financial viability. In effect, the baseline report is an interim report that
contains available information in die areas specified in Exhibit 4-2. It
provides information on die owner/operators and provides leads on genera-
tors and transporters, diereby enabling die RPM and regional management
to assess die extent and nature of gaps in die PRP data.
RPMs, with die input of die regional case attorney and die CI, should
carefully review both sections of the report to determine the likelihood that
all possible PRPs have been listed, die completeness of waste-in informa-
tion, and the sufficiency of the information documenting each PRPs
liability and financial viability.  All information in the report should be
attributed to a specific source.  The "PRP Synopsis" is enforcement confi-
dential, while the "Site Chronology and Property History" generally is not.
RPMs should ensure  that the cover of the "PRP Synopsis" clearly states that
it is "Privileged Work Product - Enforcement Confidential, Prepared in
Anticipation of Litigation."  This enables the Agency to protect from
disclosure the information contained in that section of the baseline report.
Any copies of the "PRP Synopsis" should be numbered for tracking pur-
poses.

Regional supervisors, with regional case attorney, RPM, and CI input, will
review the baseline report to determine whedier the search activity at the
site has generated the information needed to identify all PRPs, determine
their contribution to  the site, and establish their liability and viability.  In
addition, the review should consider the reasons for pursuing or not pursu-
ing leads uncovered by contractors. The search strategy should be updated
in view of the baseline report and management review.  During die review
process, the RPM should continue search activity, such as follow-up on
section 104(e) requests. The review is intended to facilitate, rather than
impede, the information-gathering process. Once the review is complete,
die person in charge of the search should ensure rhat die search personnel
and contractors implement all suggested changes and follow-up activities.

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  4—24    PRP Search, Notification, and Information Exchange
4.2.J   Issue Section
         104(e) Letters
        to Generators
    and Transporters
4.2.J.1
Municipal
      Sites
The approach for issuing information request letters to persons who ar-
ranged for disposal (hereafter called generators) and to transporters is
similar in scope to the procedures involved in issuing letters to owners and/
or operators. The section 104(e) letters issued to generators should request
information regarding their liability. Special attention should be given to
corporate parent/subsidiary and successor issues. In addition, RPMs should
seek information to resolve the issue of whether the substance was a listed or
characteristic hazardous waste as defined by RCRA.
Listed hazardous waste is defined in 40 CFR section 261.30. Each listed
waste has an EPA hazardous waste number that precedes the name of the
substance. Under 40 CFR section 261.20, a substance also may be deemed
to be RCRA waste if it exhibits any one or more of the following character-
istics: ignitability, corrosivity, reactivity and Toxicity Characteristic Leaching
Procedure toxicity. To determine whether die substances present at a
particular site meet this criteria, die RPM should consider asking questions
such as die following:

      "For all waste sent to die facility or site, identify any known
      RCRA listing designation as defined by 40 CFR section
      261.30. If it is unknown whedier die wastes sent to the
      facility or site would be listed wastes if generated after 1980,
      describe the chemical processes of each waste stream in
      sufficient detail to enable EPA to determine whedier the
      waste is listed, including information on 'characteristics'
      designation under RCRA."
Reference
OSWER Directive 9829.0, "Policy for Enforcement Actions Against
Transporters Under CERCLA" (December 23, 1985).

A key feature of EPA's 1989 "Municipal Settlement Policy" is the  notifica-
tion policy for municipalities and private parries who generate or transport
MSW, sewage sludge,  and trash from commercial, institutional, or industrial
entities. The "Municipal Settlement Policy" is supplemented by the  1998
"Policy for Municipality and Municipal Solid Waste CERCLA Settlements
at NPL Co-Disposal Sites," which established methods for calculating
setdement amounts for both MSW generators/transporters and municipal
owner/operators. It is necessary to understand the notification and setde-
ment policies in order to  ensure that the information needed in applying
them is obtained.
Municipal and private party owner/operators generally will be notified as
PRPs if diey were owners or operators of facilities at the time of disposal of
hazardous substances,  or if they are present owners or operators at a site
where hazardous substances have been released or there is a threatened
release.
In general, municipalities and private parties who generated or transported

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                                                                   4-25
MSW or sewage sludge will not be notified as PRPs unless both of the
following are true:

   •   The region obtains site-specific information that the MSW or sewage
      sludge contains a hazardous substance.
   •   The region has reason to believe diat the hazardous substance is
      derived from a commercial, institutional, or industrial process or
      activity.
EPA generally will not notify municipalities or private parties who are
generators or transporters of MSW if only household hazardous wastes  are
present. However, such parties may be notified as PRPs if the MSW
contains hazardous substances from non-household sources.  These sources
include, but are not limited to, small quantity generator wastes from
commercial or industrial processes or activities, and used oil or spent
solvents from private or municipally-owned maintenance shops.
In general, parties who generated or transported trash from a commercial,
institutional, or industrial entity will not be notified as PRPs, if such parties
demonstrate both of the following to the region:

   •   None of the hazardous substances contained in the trash is derived
      from a commercial, institutional, or industrial process or activity.
   •   The amount and toxicity of the hazardous substances contained in
      die trash does not exceed that which one would expect to find in
      common household trash.
Municipalities or private parties who are generators or transporters of "any
other hazardous substance" will  generally be notified as PRPs.
In order to protect MSW generators/transporters from  contribution claims
made by PRPs, EPA will settle with generators/transporters that it would
not otherwise pursue as PRPs. The setdement amount for generators/
transporters is calculated using an estimated cleanup cost of $5.30/ton.  The
more complete die waste contribution records are for a site, die easier it is to
estimate the contribution of generators/transporters and to complete early
settlements. Municipal owner/operator settlements are based on a presump-
tive baseline setdement amount of 20 percent of total estimated response
costs for the site. These settlements are also dependent on data generated by
die PRP search.
In view of the above, it is necessary to seek information regarding whedier
MSW or sewage sludge at die site contained a hazardous substance, die
source of any hazardous substance (common household trash or waste from
a commercial, institutional, or industrial process), and die quantity of
MSW contributed by each generator/transporter.
References
OSRE Memorandum, "Policy for Municipality and Municipal Solid Waste
CERCLA Settlements at NPL Co-Disposal Sites" (February 5, 1998).

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 4—26   PRP Search, Notification, and Information Exchange
4.2.J.2
    De Minimis
             and
 'De Micromis"
   Settlements
4.2.K
  Specialized
Investigative
          Tasks
OSWER Directive 9834.13, "Interim Policy on CERCLA Settlements
Involving Municipalities or Municipal Wastes" (referred to as the "Munici-
pal Settlement Policy") (December 6, 1989).

Recognizing that early settlements reduce transaction costs for all parties,
EPA attempts to reach de minimis and "de micromis" settlements as early as
possible. A good PRP search that provides complete information about
PRPs and the type and quantity of waste they contributed is one of the keys
to efficiendy  reaching such early settlements.  Using this information and
methods described in several guidances, EPA can reach pre-Record of
Decision (ROD) settlements with de minimis contributors and be prepared
to enter into settlements quickly with "de micromis" contributors that face
contribution  litigation brought by other PRPs. De minimis and "de
micromis" settlements are discussed in greater detail in Chapter 8, RD/RA
Negotiations/Settlement.
References
OSRE/Department of Justice (DOJ) Memorandum, "Revised Guidance on
CERCLA Settlements with 'De Micromis' Waste Contributors" (June 3,
1996).
OSRE Memorandum, "Issuance of Model CERCLA Section 122(g)(4)
De Minimis Contributor Consent Decree and Administrative Order on
Consent" (September 29, 1995).
OSRE Memorandum, "Standardizing the De Minimis Premium" (July 7,
1995).
Office of Waste Programs Enforcement (OWPE)/OE Memorandum,
"Communications Strategy for Settlements with Small Volume Waste
Contributors" (September 30, 1993).
OSWER Directive 9834.7-Id, "Streamlined Approach for Settlements with
De Minimis Waste Contributors under CERCLA 122(g)(l)(A)" (July  30,
1993).
OSWER Directive 9634.7-1C, "Methodology for Early De Minimis Waste
Contributor Settlements under CERCLA section 122(g)(l)(A)" (June 2,
1992).

As part of the revised search strategy, RPMs should consider which  special-
ized tasks are needed to conduct a thorough search. Refer to "Managing the
Search Process" in part 1 of this chapter for a discussion of when to use
these specialized tasks. RPMs should exercise discretion when determining
which tasks to conduct at a site. When appropriate, the specialized search
tasks may be  completed concurrently with the 10 baseline tasks.
An administrative subpoena, authorized under section 122(e)(3)(B) of
CERCLA, compels an individual to  answer questions under oath and, when
requested, to  produce documents. The regions no longer need to consult
with RSD personnel before using administrative subpoenas, as long as the
order does not deviate significantly from EPA's model subpoena. Regional
counsel will secure issuance of the subpoena and select the location  for the

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                                                                                                4-27
4.2.L    Interim-Final
                  Report
proceeding.  If the witness ignores the subpoena, regional counsel will
prepare a referral to seek an order compelling the witness to respond.
As a practical matter, administrative subpoenas may be useful in obtaining
information from the following types of persons: former employees of the
PRP company, persons living near the site, and officers of the PRP com-
pany. When developing a list of potential witnesses, the RPM should
confirm that the contractor has not overlooked any plausible source of
information. For example, the people who work at the landfill and the
truck drivers who drove the PRPs' trucks may be able to provide a wealth of
information about the PRPs' waste management practices.
While there  is no statutory authority prohibiting the use of administrative
subpoenas for gathering initial information, RPMs should not use subpoe-
nas for this purpose.  The Agency has stated a preference for using inter-
views and information request letters to obtain  initial information about a
person's involvement at the site.
References
OSRE Memorandum, "Consultation with OECA under CERCLA Delega-
tion 14-6" (September 30, 1994).
OE Memorandum, "Recommendations Concerning the Use and Issuance
of Administrative  Subpoenas under CERCLA Section 122" (August 30,
1991) (revised model subpoena attached).

As indicated by its name, the interim-final report is not viewed as an end in
itself. Rather, the interim report is one of many steps in the overall  investi-
gation. The investigation at a site should continue until all necessary,
reasonably obtainable information pertaining to a PRPs liability and
viability is collected.
The time at which the interim final report is completed varies, depending
on the response activity schedule for the site and the progress that is being
made on the PRP search. Ideally, the report should be available in time for
issuance of the SNLs and the release of information on the names and
addresses of the PRPs and the volume and nature of substances sent to the
site (i.e., the waste-in list). If possible, this takes place approximately six
months before the RI/FS SNLs are issued.  In some cases, particularly for
multi-party sites, it may be necessary to prepare preliminary information in
order to issue GNLs, to issue SNLs, and to release information to the PRPs.
Updated versions of the report can then be prepared for the Remedial
Design/Remedial Action (RD/RA) special notice and, possibly, for CER-
CLA sections 107 and 106 actions. The format that should be followed for
all PRP search reports is shown in Exhibit 4-2.
The regional case attorney should review instances in which a generator or
transporter is designated  as a PRP based on a parent/subsidiary or corporate
successor theory.
The RPM should focus on the facts contained in the report and not lengthy
historical or  other narratives. The RPM should consider using evidence

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 4—28     PRP Search, Notification, and Information Exchange
4.2.M
   Interim
   Report
Followup
4.2.N
  General
    Notice
   Letters
summary sheets.  This format focuses the research on the type of informa-
tion needed for evidence. The evidence sheet format also standardizes the
data presentation so that it is more readily transferable to a tracking system
or inventory database.
When reviewing the interim-final report, the RPM must confirm that the
contractor has carefully documented the rationale tying each PRP to the site
and that the report substantiates the evidence.

Information on new PRPs, as well as additional evidence on the liability of
existing PRPs, is likely to be uncovered after the completion of the interim-
final report. For this reason, a PRP search is an on-going investigation and
does not end with the completion of the interim-final report, the issuance of
general and special notice, or the release of the contractors from the PRP
search work assignment. A PRP search is completed when all parties have
been identified, reasonable leads concerning a person's involvement at a site
have been exhausted (taking into account the amount obligated for the
response action or a setdement) and EPA has made determinations on all
defenses to liability claimed by PRPs. It  should be noted that in many
situations, circumstances may require that the search continue throughout
the course of the Remedial Investigation/Feasibility Study (RI/FS) and,
possibly, into the RD/RA.
The PRP search is an  on-going investigation; in some cases, it is never really
closed. To compensate for the on-going  nature of search activities at a
multi-party site, the interim-final report  may be submitted on a preliminary
basis in time for general or special notice, and on an interim-final basis
when all search activity and follow-up for the preliminary report is com-
pleted.

GNLs designate an entity as a PRP.  These letters are preliminary determi-
nations of potential liability, as opposed to absolute determinations of
liability. Therefore, there is no requirement that the RPM must possess
substantial evidence of a person's liability before a GNL can be issued.  In
addition to designating a person as a PRP, GNLs are used to encourage
PRPs to coalesce, that is, to form a group that will act as a steering commit-
tee, an important step prior to negotiations. Therefore, GNLs should be
issued as early in the PRP search process  as possible.
GNLs generally contain the following-information:

  •   Notification of potential liability under sections 106 and 107(a)  of
      CERCLA.
          Section 106 authorizes the Agency to issue AOs compelling the
          PRP to implement the response selected by EPA to abate an
          imminent  and substantial danger caused by the release or
          threatened release of hazardous substances.
          Section 107 authorizes the Agency to initiate cost recovery
          actions to  recover all costs not inconsistent with the NCP
          incurred in responding to the release or threatened release of
          hazardous  substances.

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                                                                  4-29
   •   Discussion of any planned response measures, to the extent known.
       The Agency encourages PRPs to voluntarily perform or finance those
       response activities that EPA determines to be necessary at the site.
   •   Information about the Agency's discretionary authority under section
       122(e) of CERCLA to formally negotiate the terms of settlements
       pursuant to special notice procedures if EPA determines that such
       procedures would facilitate an agreement and would expedite
       remedial action at the site.
   •   Information about the general opportunity to discuss any selected
       response measures and opportunities to undertake the selected
       response action.
          The merits of forming a PRP steering committee.
          A response date for the PRPs to respond, in writing, indicating
          their willingness to participate in the response activities at the
          site.
          A name and a phone number of an EPA contact for PRPs (or
          their attorneys) to  call.
   •   Information about the development of the Administrative Record
       (AR) pursuant to section 113(k) of CERCLA.
RPMs, in consultation with the regional case attorney, should use their
judgment to tailor the contents of GNLs to accommodate the circumstances
at a specific site. For example, it may be appropriate to use the sample GNL
tailored to small businesses or individuals (included in die 1996 "Transmit-
tal of Sample Notice Letters") when sending GNLs to parties not familiar
widi the Superfund process. GNLs sent to debtors or bankruptcy trustees
should not include a demand  for payment, as such a demand might be
regarded as an act to collect payment of a pre-bankruptcy petition debt.
Such acts are prohibited by the automatic stay provision of Bankruptcy
Code section 362(a).
GNLs should be sent by certified mail, return receipt requested, and a
formal record documenting the PRPs' receipt of the letter should be created.
RPMs should carefully document all subsequent correspondence (phone
calls or letters) received from the PRP or the PRP's  attorneys. Communica-
tions from PRP attorneys should be referred  to the regional case attorney as
soon as practicable.
In general, die standard governing who receives  a GNL is based upon a
reasonable belief that an intended recipient may be a PRP. Certainty is not
required. GNL recipients must be approved by  bodi regional management
and die regional case attorney. RPMs should carefully consider the question
of who receives a GNL.  Once a party has been designated as a PRP and
issued a GNL, its name will be released as a PRP in response to FOIA
requests about the site.
At municipal sites, in particular, the issuance of notice is  governed by EPA's
Municipal Settlement Policy.  The notification provisions of this policy are

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 4—30    PRP Search, Notification, and Information Exchange
4.2.O         Develop
           Information
                 on PRP
                  Waste
         Contribution
summarized above in section 2.D.3 of this chapter.  In addition, it should
be noted that notwithstanding the above general policy, there may be
exceptional situations where EPA may consider notifying generators/
transporters of MSW that contains a hazardous substance derived only from
households. Such notification may be appropriate where the total contribu-
tion of commercial, institutional, and industrial hazardous •waste by private
parties to the site is insignificant when compared to the MSW In this
situation, the regions should seriously consider notifying the generators/
transporters of MSW containing a hazardous substance from households as
PRPs and include them in the settlement process where it would promote
either settlement or response action at the site.
GNLs should be issued in "waves" as soon as the necessary information
becomes available, and they should precede special notice for the RI/FS.
The first wave is issued when owners and operators are identified. Subse-
quent waves are issued as groups of generators and transporters are identi-
fied.  Finally, additional letters are sent to PRPs who have been identified by
other PRPs through negotiations.  If SNLs for RI/FS are scheduled and
GNLs have not been issued, GNLs need not be sent if they would not
advance the process. Copies of GNLs should be sent to:

   •   Regional AR coordinator.
   •   Regional Community Involvement Coordinator (CIC) for inclusion
      of the noticed parties on the community involvement mailing list.
   •   Appropriate state representative(s).
   •   Federal and state natural resource trustees.
References
OSRE Memorandum, "Transmittal of Sample Notice Letters: 1) Demand;
2) General Notice; 3) Special Notice; 4) Follow-Up 104(e)" Quly 26, 1996).
OSWER Directive 9834.10-la, "Model Notice Letters" (February 7, 1989).
OSWER Directive 9836.2,  "CERCLA Community Relations Mailing Lists"
(February 6, 1989).
OSWER Directive 9834.10, "Interim Guidance on Notice Letters, Negotia-
tions, and Information Exchange" (October 19, 1987).

The collection and analysis of information on PRP waste contribution is
part of the PRP search process. Information on PRP waste contribution can
include manifests, waste tickets, logbooks, billing records, canceled checks,
and process engineering information. In addition, PRPs may provide
information on waste contribution in dieir responses to information
requests issued under section 104(e) of CERCLA.  Information on PRP
waste contribution is commonly referred to as "waste-in information."
There is no specific point during the PRP search process when waste-in
information is certain to become available.  Possible sources of waste-in
information include, but are not limited to, on-site files and government

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                                                                                                4-31
4.2.P       On-Going
            Information
              Exchange
offices, particularly when a prior state or federal enforcement action has
been taken. Waste-in information also can be developed through section
104(e) information requests. It is important to recognize that waste-in
information may never be available at certain sites. Nevertheless, RPMs
should be prepared to collect and analyze waste-in information as expedi-
tiously as possible when it becomes available.
Transactional databases are developed to organize and analyze waste-in
information.  These databases are used to produce waste-in lists and volu-
metric rankings.  A waste-in list provides the volume and nature of sub-
stances contributed by each PRP identified at a facility on  a per shipment
basis. A volumetric ranking can  be a ranking by volume of the hazardous
substances at a facility. In most cases, however, a volumetric ranking refers
to a ranking by volume of PRPs'  shipments to a site.
The development of waste-in information helps the Agency to meet the
special notice information release burden under CERCLA section
122(e)(l). If EPA invokes special notice procedures under CERCLA
section 122(e)(l), the Agency must provide PRPs with waste-in lists,
volumetric rankings, and a list of PRP names and addresses "to the extent
that such information is available." More importantly, the development and
release of waste-in information promotes PRP steering committee organiza-
tion, which can streamline and expedite the setdement process.
Reference
OSWER Directive 9835.16, "Final Guidance on Preparing Waste-In Lists
and Volumetric Rankings for Release to Potentially Responsible Parties
(PRPs) Under CERCLA" (February 22, 1991).

At any point,  RPMs may hold informal discussions with the PRPs (as
distinguished from the formal negotiations pursuant  to special notice
procedures). If PRPs are represented by an attorney,  regional counsel must
be present.  These informal discussions generally result in an on-going
exchange of information. Following a PRP's response to an information
request, EPA will generally provide the PRP with a copy of any information
the Agency has gathered regarding that PRP. More broadly, as soon as
reasonably possible, the RPM should provide the PRPs with the names,
addresses, and volumes and nature of substances contributed for all PRPs.
The policy governing information release to PRPs is quite  flexible and
provides for review on a case-by-case basis. The Agency has a strong
preference toward information release in that it is believed, in most cases, to
expedite settlement. In some cases, however, regions should reserve the
right to exchange information with PRPs on a reciprocal or conditional
basis if it is  believed that reciprocal exchange is the appropriate action.  The
1993 revised policy on information release includes a more forceful state-
ment on the value to the Agency of releasing information,  particularly
waste-in information, to PRPs in order to facilitate PRP organization and
coalescence. In addition, this policy clarifies that waste-in  information, to
the extent it is available, should normally be released  well before special

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4—32    PRP Search, Notification, and Information Exchange
                              notice is issued. RPMs may choose to make information available to PRPs
                              by creating a publicly available repository of site information. Information
                              for which PRPs have asserted a claim of confidentiality, however, should be
                              disclosed to the public only after consultation with a regional attorney.
                              One way to facilitate information exchange with PRPs is through a meeting.
                              RPMs should propose a meeting when they believe that it will enhance the
                              likelihood of successful negotiations.  In the event diat these informal talks
                              break down, RPMs should work closely with regional attorneys to develop a
                              realistic negotiation strategy.  In addition, RPMs should investigate the
                              possibility of using Alternative Dispute Resolution techniques to resolve
                              issues the  RPM has with die PRPs or that PRPs have among themselves.
                              References
                              OSWER Directive 9835.12-Ola, "Revised  Policy on Discretionary Informa-
                              tion Release Under CERCLA" (March 31,  1993).
                              OSWER Directive 9834.13, "Interim Policy on CERCLA Settlements
                              Involving Municipalities and Municipal Wastes" (December 6, 1989).

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                                                                                               4-33
4.3
4.3.A
4.3.B
                Planning and Reporting  Requirements

                The RPM should implement a management strategy that tailors the PRP
                investigative tasks so that the PRP search works in conjunction with the
                overall enforcement strategy at a particular site. The Agency has made a
                commitment to improve the timeliness and completeness of PRP searches.
                RPMs should seek the assistance of regional attorneys and other key players
                early in the search process to achieve timely, high-quality PRP searches.

Planning    In general, RPMs should initiate PRP searches before die site is proposed
                for inclusion on die NPL.  Ideally, the PRP search should be initiated when
                EPA decides that a response action may be warranted during the site
                assessment and completed shordy after the NPL proposed listing.  The
                baseline phase of the PRP search report should be completed at least 90
                days before the funds are obligated for a projected RJ/FS start. The PRP
                search, including all follow-up phase activities (if necessary), should be
                completed and the PRP search reviewed and updated (if necessary) 90 days
                prior to issuance of RD/RA SNLs.

  Budget    The quality of a PRP search is a function of planning, proper and focused
                utilization of contractors, oversight, and follow up.  Sufficient money,
                within die region's limitations, must be budgeted to efficiendy reach die
                search objective, i.e., to uncover all reasonably available evidence of die
                PRPs' liability. The RPM should ensure diat die investigative process is
                planned and conducted to achieve the desired results the first time. If an
                RPM determines that the conditions at a particular site require supplemen-
                tal work and funding, the RPM should ensure that these planned expenses
                are reported.
                The RPM should take into account the nature of the site when planning a
                PRP search by weighing the costs of the search against die value of PRP
                resources that might be gained. At sites where remedies of relatively small
                dollar value are anticipated, only limited search activities should be per-
                formed. At sites where more cosdy remedies  are anticipated, more extensive
                search activities are appropriate. Under-committing resources is as ineffi-
                cient as over-committing resources. Therefore, RPMs should work closely
                with regional management to determine how to effectively commit re-
                sources for a particular site.
4.3.C       Reporting
        Requirements
                PRP search completions is one of the program measures monitored by the
                Agency to track overall program progress. For reporting purposes, a PRP
                search is deemed to be complete when the region documents in die site file
                that all reasonably achievable criteria for complete and thorough PRP
                searches have been met. These criteria include:

                  •   Providing an opportunity to PRPs for input into die PRP search.
                  •   Collecting necessary and appropriate financial and contribution data
                      to apportion responsibility.

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4—34    PRP Search, Notification, and Information Exchange
                                 •    Completing follow-up activities on all parties.
                                 •    Making de minimis and "de micromis" determinations, as necessary.
                                 •    Categorizing all PRPs.
                                 •    Making financial viability determinations on all PRPs asserting an
                                     ability to pay problem.

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                                                                                             4-35
4.4
             Potential  Problems/Resolutions

             This section addresses several problems that RPMs may encounter when
             attempting to identify and document the involvement of PRPs at a particu-
             lar site.
4.4.A
Timing
4.4.B       Clarifying
              Roles and
      Responsibilities
4.4.C    Examples of
              Enforcing
           information
               Requests
A comprehensive PRP search and notification process should be initiated
early in the remedial process. Early searches facilitate PRP coalescence for
settlement negotiations and promote increased PRP participation in early
actions, RI/FS activity, and RD/RA activity. Conversely, the failure to
properly plan the search, oversee it, ensure follow up, and "complete"  it may
unnecessarily delay the RD/RA negotiations, stall cost recovery or CERCLA
section 106 case development, delay die start of the response action, limit
PRPs' ability to have due process, or cause EPA to implement a Fund-lead
response, which, in turn, may stop action at another site from being started
or require cosdy litigation later.

The RPM  should ensure that all parties involved in the PRP search process
clearly understand their roles and responsibilities. This objective can be
accomplished by.

  •   Developing PRP search management plans.
  •   Tailoring die contractor's Statement of Work to site-specific require-
      ments.
  •   Assigning responsibility for follow-up.
  •   Conducting an evidence review.
In some regions, die RPMs spend time in die field gathering initial data to
determine  die appropriate scope for the search process.  In odier regions,
the RPM assigns initial data gathering tasks to the contractor and then uses
this data to define die scope of the search process at die kick-ofF meeting.
RPMs may use meetings as a means of improving the cooperative efforts of
the contractor and state and local officials. For example, diese  meetings can
be used to  provide die contractors widi a list of state and local government
contacts. Before issuing such a list, die RPM should provide die contractor
with  a letter of introduction. The purpose of die letter is to introduce the
contractor to state and local government officials and to inform these
officials that die contractor is working for EPA on a particular PRP search.

The Agency has statutory audiority to enforce its requests for information.
There are several examples of die Agency's efforts to enforce its requests.
Two cases are discussed below

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  4—36    PRP Search, Notification, and Information Exchange
4.4.C.1               The    The Agency sought to enforce its request for information about a PRP's
                 Cannons    involvement at the Cannons sites in Massachusetts and New Hampshire.
                     Sites    On March 28, 1986, the Agency sent letters to over 500 PRPs. Crown Roll
                               Leaf, Inc. ("Crown") was one of the recipients. The return receipt card
                               indicated that Crown received the letter on April 1,  1986.  A complete
                               response was due within 30 days of receipt (i.e., May 1, 1986). Crown
                               failed, without justification, to provide EPA with the requested information
                               and documents relating to the transportation of toxic waste.  On August 18,
                               1986, the Agency sent Crown a reminder letter. Crown again failed to
                               respond. Section 3008(a) of RCRA was employed to enforce response to
                               the notice letters (prior to the Superfund Amendments and Reauthorization
                               Act, a number of notice letters were issued pursuant to RCRA section
                               3007). On November 14, 1986, the Agency sent  Crown the following:

                                  •   AO compelling a response.
                                  •   Administrative complaint.
                                  •   Proposed consent agreement.
                               The AO demanded Crown provide the requested  information and docu-
                               ments. The administrative complaint notified Crown it could contest
                               liability for failure to respond to the information request. The proposed
                               consent agreement required Crown to submit responses to the information
                               request and to pay a penalty in settlement for EPA's claims for failure to
                               respond.
                               In December  1986, Crowns attorney telephoned a regional attorney to
                               discuss the matter. After this conversation, Crown still failed to submit a
                               written response to the Agency's information requests. On February 16,
                               1988, the Agency initiated a judicial action against Crown. The federal
                               district court ruled that because the EPA information request form specifi-
                               cally requested a written response, Crown's phone conversation with the
                               regional attorney did not constitute adequate compliance.
                               This case is important because it supports the Agency's right to demand a
                               written response to the information request letter.

4.4.C.2        American    In December  1992, the U.S. District Court for the Northern District of
              Tnio-Chem    Texas ordered Roger L. Tannery to pay EPA over $13 million, the largest
                       Site    penalty ever awarded for non-compliance with orders under CERCLA.
                               EPA filed die suit to recover cleanup costs of $977,324 for a removal action
                               conducted at the American Thio-Chem site and to recover almost $12.5
                               million in civil penalties for Tannery's failure to respond  to a request for
                               information issued under section 104(e). The civil penalty represents the
                               maximum penalty of $25,000 per day (since raised to $27,500 per day) for
                               die 499 days of non-compliance with the order.

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                                                                                                 4-37
4.5                           Activities Checklist
                                The following list of tasks that are commonly part of a PRP search is
                                intended as an aid for RPMs overseeing the PRP search process. The
                                checklist is not intended to present an exhaustive set of procedures, nor is it
                                meant to be a chronological list of tasks. RPMs should exercise discretion
                                when deciding what procedures are appropriate for a particular site.
                                1)	   Conduct a preliminary PRP search.
                                2)	   Develop a PRP search plan and assemble die resources needed
                                           to conduct the PRP search activities.
                                           a)	    Ensure diat contractor dollars are budgeted for
                                                       negotiations in the enforcement case budget.
                                           b)	    Develop search plan/strategy.
                                                       • Activities.
                                                       • Roles and responsibilities.
                                                       • Scheduling.
                                                       • Information management.
                                           c)	     Develop a detailed scope of work for the contrac-
                                                       tor.
                                           d)	    Develop a detailed resource plan for EPA staff.
                                3)	   Conduct baseline information and records collection,  inter-
                                           views, tide search.
                                           a)	    Conduct initial baseline tasks.
                                           b)	    Conduct additional  (i.e., specialized) tasks concur-
                                                       rently with die baseline tasks (if appropriate).
                                4)	   Issue section  104(e) letters to owners and/or operators.
                                           a)	    Even if there is only a single PRP or few PRPs and
                                                       there is information on diem, verify it with a
                                                       section 104(e) letter.
                                           b)	    Obtain copies of documents.
                                5)	   Compile, organize, and analyze responses from section 104(e)
                                           letters.
                                           a)	    Track response to letters.
                                                       •       Establish die tracking system.
                                                       •       Determine identities of non-responders
                                                               and incomplete responders.
                                           b)	    Follow up on recipients who fail to fully comply
                                                       with the request for  information.
                                                       •       Send follow-up letters to recipients who
                                                               provided incomplete or inadequate
                                                               information.

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4—38    PRP Search, Notification, and Information Exchange
                                                     •      Determine whether an administrative
                                                            order assessing penalties should be issued
                                                            if recipient fails to respond to warning
                                                            letter.
                                                     •      Consider initiating a judicial action to
                                                            enforce the information request order
                                                            (also consider seeking additional penalties
                                                            for violating the order) if recipient fails to
                                                            respond to warning letter.
                              6)	   Update PRP status.
                                         a)	    Determine current name and address.
                                         b)	    Resolve status of corporations that are defunct,
                                                     dissolved, bankrupt, merged, sold, or had a parent
                                                     corporation.
                              7)	   Analyze, follow up, and conduct additional research.
                                         a)	    Resolve evidence evaluation sheets and financial
                                                     viability of owners/operators.
                                         b)	    Develop site history.
                                         c)	    Request supplemental information and interviews
                                                     regarding owner/operator liability.
                                         d)	  .  List preliminary generators and transporters.
                              8)	   Draft the baseline report summarizing information obtained
                                         from the baseline search. RPMs should ensure that the
                                         information needed to document die PRPs' liability is suffi-
                                         ciendy documented. The confidential section of the report
                                         should clearly state that the document is "ENFORCEMENT
                                         CONFIDENTIAL." Attribute all information in the report to
                                         specific sources. Document all work done.  Manage informa-
                                         tion in a manner consistent with die plan.
                              9)	   Regional management reviews the baseline report and approves
                                         revised search strategy.
                                         a)	    Identify any data gaps and implement data
                                                     collection procedures.
                                         b)	    Adapt search plan for interim  final report.  Decide
                                                     which of the specialized tasks to perform.
                              10)	  Issue section 104(e) letters to generators and transporters.
                                         a)	    Link generators to the site.
                                         b)	    Determine which generators' wastes are hazardous
                                                     substances under CERCLA.
                                         c)	    Request information regarding die RCRA designa-
                                                     tion of all waste sent to the facility/site.

-------
                                                                  4-39
           d)	    Seek to resolve the issue of whether the substance
                       is a listed or characteristic hazardous waste as
                       defined by RCRA [see 40 CFR section 261.30].
           e)	    Track, follow up, and enforce.
11)	  Update PRP status for generators and transporters.
           a)	    Determine current name and address.
           b)	    Resolve status of corporations that are defunct,
                       dissolved, bankrupt, merged, sold, or had parent.
12)	  Conduct interviews as identified  in plan and as necessitated by
           review and responses to section 104(e) letters.
13)	  Conduct other appropriate additional search tasks as identified
           in strategy and as necessitated by review of responses to section
           104(e) letters.
           a)	    Analyze information for completeness, ability to
                       issue special notice (name and address, volume
                       and nature of substances, volumetric ranking),
                       evidentiary sufficiency, and ability to pay.
           b)	    Follow up as necessary
14)	  Prepare the interim-final report.  Ensure that all information
           obtained during the PRP search has been properly docu-
           mented.
           a)	    Review evidence evaluation sheets, assessing
                       whether there is sufficient information to establish
                       a party's liability under section 107 of CERCLA;
                       review financial viability.
           b)	    Array information for special notice.
           c)	    Identify follow-up work needed.
           d)	    Management review.
           e)	    Document parties against whom there is not
                       enough information to be identified as PRPs.
15)	  Follow up report.
16)	  Determine when to issue GNLs.
           a)	    Send a letter informing die individual (or corpora-
                       tion) that the Agency considers it to be a PRP.
           b)	    Assemble back-up documents.
           c)	    Develop name and address list. Provide to
                       community involvement coordinator and AR
                       coordinator.

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4—40    PRP Search, Notification, and Information Exchange
                              17)	   Initiate an information exchange with PRPs.
                                         a)	    Meet with PRPs to provide them with information
                                                    about the site and to explain the negotiations
                                                    process.
                                         b)	    Ensure that the contractor adequately updates the
                                                    transactional database to reflect die information
                                                    provided by PRPs. Provide waste-in information
                                                    to PRPs, as appropriate.
                                         c)	    Provide an opportunity for PRP input into the
                                                    PRP search.

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                                                                                               4-41
Appendix                PRP Search  Plan
                               1)	PRP Search Planning and Initial Strategy.
                                           a)	    Identify contractor and staff resource needs.
                                           b)	    Summarize team roles and responsibilities for
                                                      managing and performing PRP search tasks.
                                           c)	    Discuss the schedule of the PRP search in relation
                                                      to the overall site timeline.
                               2)	    Initial Assessment and PRP Search.
                                           a)	    Summarize information collected to date.
                                           b)	    Develop strategy for collecting and using informa-
                                                      tion.
                                                      • Develop PRP correspondence tracking
                                                        system and evidence files.
                                                      • Follow up on recipients who fail to fully
                                                        respond.
                                           c)	    Conduct initial search, including title search and
                                                      interviews with federal, state, and local govern-
                                                      ment officials (the usual focus is first on  owners
                                                      and operators and  then on generators and trans-
                                                      porters).
                               3)	    Interim Assessment.
                                           a)	    Conduct analysis, identify issues, and project
                                                      follow-up and additional PRP search needs,
                                                      including unique strategies.
                                           b)	    Ensure information regarding PRP liability is well
                                                      documented.
                                           c)	    Describe steps for PRP notification and informa-
                                                      tion exchange.
                                           d)	    Develop a PRP list (including names and ad-
                                                      dresses).
                               4)	    Conclusion of PRP Search.
                                           a)	    Indicate actions to enhance inter-PRP and PRP-
                                                      government relations, such as encouraging PRPs
                                                      to form a steering committee, providing informa-
                                                      tion to PRPs, and encouraging PRPs to use a
                                                      facilitator to resolve disagreements.
                                           b)	    Assess ability to develop volumetric ranking and
                                                      Non-Binding Preliminary Allocation of Responsi-
                                                      bility.

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4—42    PRP Search, Notification, and Information Exchange
                                         c)	    Complete information collection (including use of
                                                    subpoenas), distribution of information (including
                                                    AR coordinator and CIC), documentation of
                                                    evidence, and notification (including special
                                                    notice).

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5. RI/FS Negotiations/
     Settlement

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                                                                         5-i
         Chapter 5  RI/FS Negotiations/Settlement


5.1   Description of Activity	1
      5.1.A   Introduction	1
      5.1.B   Statutory Authority	1
      5.1.C   Overview of the Negotiation Process	1
      5.1.D   Early De Minimis	2
      5.1.E   Roles and Responsibilities	2
             5.1.E.1   Remedial Project Manager	5
             5.1.E.2   Regional Attorney	5
             5.1.E.3   Office of Site Remediation Enforcement	5
             5.1.E.4   Department of Justice	5
5.2   Procedures and Interactions	6

      5.2.A   Decision to Start the RI/FS	6
      5.2.B   Intergovernmental Review	6
      5.2.C   Formation of the Case Team	7
      5.2.D   Review PRP Search	7
      5.2.E   Issue General Notice	8
      5.2.F   Steering Committees and Information Exchange	9
      5.2.G   Followup on PRP Search	9
      5.2.H   Natural Resource Trustees	 10
      5.2.I    Preliminary Scoping of the RI/FS	 10
      5.2.J   RI/FS Statement of Work	12
      5.2.K   Risk Assessments	16
      5.2.L   Draft Administrative Orders	 17
      5.2.M   Issue Special Notice	20
      5.2.N   Good Faith Offer	21
      5.2.O   Conditions for PRP Conduct of RI/FS	23
             5.2.O.1   Scope of Activities	23
             5.2.0.2   Demonstrated Capabilities	 23
             5.2.0.3   Assistance for PRP Activities	23
      5.2.P   Negotiations Outcome: PRP-Lead RI/FS	23
      5.2.Q   Negotiations Outcome: Fund-Lead RI/FS	24
5.3   Planning and Reporting Requirements	25
      5.3.A   Planning Requirements	25
      5.3.B   Reporting Requirements	26
5.4   Potential Problems/Resolutions	28
      5.4.A   Stipulated Penalties	28
      5.4.B   Past Costs	28
      5.4.C   RI/FS Oversight Costs	28
      5.4.D   Removals Required During RI/FS	:	28
      5.4.E   Additional Work	29

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 5-ii    RI/FS Negotiations/Settlement
5.5   Activities Checklist	30
      Appendix	31

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                                                                                            5-1
5.1
Chapter 5  RI/FS  Negotiations/Settlement
                  Description of Activity
5.1.A   Introduction
5.1.B        Statutory
              Authority
5.1.C       Overview
                  of the
          Negotiation
               Process
                  This chapter discusses the process of negotiating an agreement for Poten-
                  tially Responsible Party (PRP) conduct of the Remedial Investigation (RI)
                  and Feasibility Study (FS), and focuses on the Remedial Project Manager's
                  (RPM's) role in die process.  EPA's policy is to encourage PRPs to perform
                  RJ/FSs under EPA oversight when EPA determines diat die PRPs are
                  qualified to do die work and will perform it in accordance widi Compre-
                  hensive Environmental Response, Compensation, and Liability Act (CER-
                  CLA) requirements and EPA guidance.
                  EPA prepares for RI/FS negotiations from die time die listing site inspec-
                  tion is undertaken or the Regional Decision Team decides to begin die PRP
                  search. EPA performs a PRP search, issues General Notice Letters (GNLs),
                  and may meet widi PRPs prior to beginning RI/FS negotiations.  EPA
                  "scopes" the RI/FS in accordance widi National Contingency Plan (NCP)
                  section 300.430(b) prior to initiating setdement discussions to ensure dm
                  investigative and analytical studies are tailored to site circumstances and diat
                  die analysis is appropriate for die complexity of the site problems being
                  addressed. Formal negotiations begin when EPA issues die Special Notice
                  Letter (SNL), continue if there is a Good Faith Offer (GFO), and conclude
                  widi die signing/issuance of an Administrative Order on Consent (AOC) or
                  Consent Decree (CD), or referral for litigation or obligation of Fund
                              monies.
                  Although CERCLA section 106 Administrative Orders (UAOs) may be
                  issued, EPA usually relies on sections 104 and 122 to enter into agreements
                  widi PRPs to allow them to conduct all or part of die RI/FS. The settle-
                  ment procedures in CERCLA section  122 are used when the Agency
                  determines diat the PRPs will conduct the RI/FS properly and prompdy.
                  Audiority for RI/FS administrative settlements has been fully delegated to
                  the regions.

                  The RI/FS negotiation process begins informally as soon as PRPs are given
                  general notice. After initial identification of PRPs, EPA issues GNLs to
                  advise diem of their potential liability.
                  Following general notice, EPA continues to develop die PRP search. After
                  EPA has received responses to information requests and assembled informa-
                  tion regarding waste types and volumes, it may provide certain information
                  to PRPs and encourage them to organize as a group and form a steering
                  committee. The organization of PRPs is an  important element in achieving
                  setdements. In addition, EPA, working widi contractor support, scopes die
                  focus of the RI/FS. The RPM should coordinate widi die state as necessary
                  on die scope of die RI/FS and any AO.
                  EPA can issue an SNL pursuant to section 122 regarding die RI/FS.
                  Issuance of special notice provides a period of negotiation in situations

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  5-2
RI/FS Negotiations/Settlement
5.1. D              Early
            De Minimis
5.1.E        Roles and
      Responsibilities
                    where EPA determines that such a period would facilitate an agreement
                    with PRPs and expedite response actions, and triggers a 90-day moratorium
                    on commencement of an RI/FS by EPA.  Receipt of special notice triggers a
                    60-day period during which the PRPs can make a proposal to EPA for
                    undertaking or financing the RI/FS. The SNL is usually accompanied by a
                    draft AOC and RI/FS Statement of Work (SOW).  RI/FS negotiations that
                    result in setdement are concluded with the signing of an AOC (or entry of a
                    CD, if the case has been filed in court) that incorporates a SOW.

                    Agency guidance describes the methodology for providing PRPs who are
                    minor contributors of hazardous substances to a CERCLA site (commonly
                    referred to as de minimis parties) an opportunity to resolve their liability as
                    completely as possible early in the  response process, i.e., prior to signature of
                    the Record of Decision (ROD), without the need for extensive negotiation.
                    Entry into early de minimis settlements lowers transaction costs for de
                    minimis parties and can increase case management efficiency at multi-
                    generator sites. To assess  the feasibility of an early de minimis settlement,
                    regions should compile waste contribution information for individual PRPs
                    as soon as it is available, and identify response costs for settlement purposes.
                    Current Agency guidance does away with the requirement of preparing a
                    waste-in list or volumetric ranking for determining de minimis eligibility.
                    For more information on waste contribution, see Chapter 4, PRP Search,
                    Notification, and Information Exchange.
                    Agency guidance sets forth a "Model First Point of Contact Letter" for use
                    with de minimis parties. The model letter is intended to be die Agency's
                    initial contact with de minimis PRPs, and should be issued prior to a notice
                    of offer letter.
                    A typical RI/FS negotiation process is summarized in Exhibit 5-1.
                    References

                    Office of Waste Programs Enforcement/ Office of Enforcement Memoran-
                    dum, "Communications Strategy for Settlements with Small Volume Waste
                    Contributors" (September 30, 1993).
                    Office of Solid Waste and Emergency Response (OSWER) Directive
                    9834.7-1 D, "Streamlined Approach for Settlements With De minimis Waste
                    Contributors under CERCLA Section 122(g)(l)(A)" (July 30, 1993).
                    OSWER Directive 9634.7-1C, "Methodology for Early De minimis Waste
                    Contributor Settlements under CERCLA Section 122(g)(l)(A)" (June 2,
                    1992).

                    This section describes die roles and responsibilities of RPMs, regional
                    counsel, and representatives of die Office of Site Remediation Enforcement
                    (OSRE) and die Department of Justice (DOJ).  Their primary activities in
                    each phase of die negotiation process are summarized below. Regions vary
                    in the way they distribute tasks between RPMs and regional counsel. In
                    some regions, Enforcement Specialists assist negotiation teams by  helping to
                    prepare GNLs, SNLs, and cost packages and documentation, performing

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                                                                                          5-3
5-1    RI/FS Negotiation Process*

^J_J?uM___
PRP Search
Information
Exchange
60-day Formal
Negotiation
Period
30-day
Extension


Decision to Start RI/FS
(Outyear Planning)
1
J

Initiate Intergovernmental •
Review 1



1
Form Case Team
1

]

Develop Negotiation Plan •
(Include any past costs) I
|


Nn fienlemanr

Review PRP Search and •
Identify Needed Follow-up 1
1
Issue General Notice
1
Work with Steering
Committee
1

~|

J|

Conduct Additional •
Follow-up PRP Search I
1
Notify Trustees

D

Conduct Preliminary Scope •
of RI/FS I
1

Develop AO Package with •
SOW 1
i

Issue Special Notice •
1
Receive GFO
1

U

Conclude Negotiations |
•••^ * 	 1
.*— •— "^ Settlement
Initiate Section 106 UAO b Initiate Fund-financed h
or Litigation I RI/FS 1
Sign AOC/CD |
*This general overview of the RI/FS negotiation process may not apply in all situations

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 5—4     RI/FS Negotiations/Settlement
                              PRP search-related tasks, and participating in negotiations. The primary
                              responsibilities of RPMs and regional counsel are detailed in Exhibit 5-2.
                              The Office of Enforcement and Compliance Assurance (OECA) updates its
                              "Roles Memo" periodically; regional personnel should refer to it to find out
                              when they need to consult with Headquarters.


5-2    RI/FS Negotiation and Settlement Roles and Responsibilities
                     RPM
    NEGOTIATIONS PLANNING

    •  Coordinate information exchange with
       the PRPs, including section 104(e) letters,
       and provide the PRPs with information
       regarding other PRPs (in conjunction with
       regional counsel)

    •  Assemble documentation for past
       removal, preliminary assessment/site
       inspection, or other costs

    •  Ensure PRP search review and follow-up
       by Civil Investigator (CD and regional
       counsel

    •  SendGNLs

    •  Coordinate site scoping activities

       Coordinate with state

      •••••••
    INFORMAL AND FORMAL NEGOTIATIONS

       Provide information to PRPs

       Send SNLs

       Conduct negotiations as lead technical
       representative on the case team

       Maintain coordination between
       appropriate Headquarters and state offices

       Request extensions for negotiations, if
       necessary

       Request obligation of funds from the
       Hazardous Substance Superfund, if
       appropriate
          Regional Counsel
NEGOTIATIONS PLANNING
   Review strength of evidence of PRP
   liability
• Coordinate with Cl regarding PRP search
  activities
  Draft initial AO
• Notify DOJ of the negotiations if past
  costs are involved.
INFORMAL AND FORMAL NEGOTIATIONS

  Review the SNLs
  Conduct negotiations as the lead legal
  representative
• Redraft the AO or CD as the result of
  negotiations
  Coordinate with the state legal
  representative

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                                                                                                 5-5
5.1.E.1
Remedial
   Project
 Manager
5.1.E.2         Regional
                 Attorney
5.1.E.3    Office of Site
            Remediation
            Enforcement
 5.1.E.4     Department
                of Justice
References
OECA Memorandum, "Revisions to OECA Concurrence and Consultation
Requirements for CERCLA Case and Policy Areas" (September 30, 1998).
OECA Memorandum, "Office of Enforcement and Compliance Assurance
and Regional Roles in Civil Judicial and Administrative Site Remediation
Enforcement Cases" (May 19, 1995).

The RPM plays a central role throughout the RI/FS negotiation process and
has primary responsibility for technical aspects of the case.
The RPM shares with regional counsel the role of educating the PRPs about
EPA's negotiating position and providing pertinent PRP and site informa-
tion.  The RPM also may help the PRPs  organize into a steering committee,
and should encourage the formation of a PRP steering committee in nearly
all cases. The RPM, in conjunction with regional counsel, should set up a
correspondence file to track all communication with PRPs.  Some of this
correspondence subsequently will be entered into the Administrative Record
(AR) for selection of response. The RPM s role in the timing of SNLs and
the ensuing formal negotiation period is  discussed in detail later in this
chapter.
In the circumstance where a decision has been made to perform an RI/FS,
the RPM also participates in developing  the case referral packages for
section 106 and 107 litigation cases. The RPM works jointly widi regional
counsel to develop the technical information in support of a referral package
for section  106 and  107 litigation cases.  The RPM and regional counsel
work  together to develop the Agency's negotiation strategy prior to negotia-
tions with the PRPs and, as needed, to coordinate the negotiation strategy
document with the settlement decision committee.

Regional counsel, in partnership widi the RPM, plays a central role in all
phases of the RI/FS  negotiations.  Regional counsels  primary responsibility
is to provide legal advice during the negotiation process to ensure that the
process complies widi CERCLA and to negotiate non-technical aspects of
the legal agreement.

OSRE is responsible for ensuring that settlements negotiated by EPA
regions are consistent widi national policy. OSRE attorneys are usually not
involved in RI/FS negotiations, but may participate in diem when die
negotiations present complex or nationally significant issues and assist
regional counsel in pre-referral matters.

DOJ's representative from die Environment and Natural Resources
Division's Environmental Enforcement Section is EPA's attorney for litiga-
tion of Superfund cases.  DOJ usually is  not involved  in RI/FS negotiations
because these are resolved through AOs radier dian CDs. DOJ approves
compromises of certain past costs in RI/FS orders in accordance widi
CERCLA section 122(h)(l).

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  5-6     RI/FS Negotiations/Settlement
 5.2
 5.2.A
 Decision
  to Start
the RI/FS
5.2.B Intergovernmental
                   Review
Procedures and Interactions
This section discusses the procedures for negotiating PRP involvement in
the RI/FS and focuses on the RPM s role in the negotiation process.  Cer-
tain elements of this process are similar to elements of the Remedial Design
(RD) and Remedial Action (RA) negotiation process, which is discussed in
Chapter 8, RD/RA Negotiations/Settlement.

The decision to initiate RI/FS activities is made in the course of preparing
the annual Superfund Comprehensive Accomplishments Plan (SCAP). The
SCAP process is discussed in Chapter 16, Targeting Accomplishments and
Measuring Performance. The RI/FS start, as  planned in SCAP, affects the
schedule for negotiations with die PRPs.
A PRP search generally should commence at  least one to two years before
negotiations are scheduled to begin except at  sites without generators, where
less time may be necessary. Negotiation planning usually is initiated six to
nine months prior to die planned RI/FS start date in the SCAP. When
planning an RI/FS start, RPMs should keep in mind diat, in cases where the
SNL procedure is implemented and a GFO is received by EPA  widiin 60
days, RI/FS activity is unlikely to begin for at least 90 days after special
notice issuance. When negotiating SCAP targets, the RPM, Information
Management Coordinator (IMC), and other  regional personnel involved in
SCAP negotiations should consider die following factors in proposing an
RI/FS start at a site:

   •  Budget - Will funds be available to initiate activity at die site on the
      planned date?
   •  Site Classification - Is the site targeted as PRP-lead or Fund-lead?
   •  Length of Time on SCAP - How long has the site been identified
      on SCAP as a National Priorities List (NPL) site?
   •  Environmental Priority of the Site - How great is the threat to
      human health and the environment posed by the site?
   •  Status of the PRP Search - Is the PRP search near completion?
      What is the likelihood of finding viable PRPs?
   •  PRP Capabilities - Are PRPs qualified and prepared to  undertake
      the RI/FS?

   •  Willingness of the PRPs to Cooperate - What is the likelihood of
      setdement? What is the basis for this conclusion?
The decision to start an RI/FS involves the SCAP coordinator (or IMC),
section chiefs or team leaders, and branch chiefs. The Superfund Program
Manager grants final approval on RI/FS start  decisions.

The Code of Federal Regulations sets forth the intergovernmental review
process for the Superfund program.  The process applies to all Fund- or
state-designated agency-lead remedial projects, including Fund-lead RI/FSs.
RPMs should initiate the intergovernmental review process during setde-

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                                                                                                 5-7
5.2.C
  Formation
        of the
 Case Team
5.2.D
Review PRP
       Search
ment negotiations so that it will already be under way if Fund monies are
used for site response activities.  The regulation does not apply to respon-
sible parties, however, and their activities are not subject to its notification
and review procedures.
References
40 Code of Federal Regulations Part 29 ("Intergovernmental Review of the
Environmental Protection Agency Programs and Activities").
OSWER Directive 9375.1-4-d, "State Participation in the Superfund
Program," Appendix D, "Procedures for Implementing Intergovernmental
Review for the Superfund Program" (June 2, 1988).

Primary responsibility for developing setdements rests with the case or
negotiation team.  The team usually consists of the RPM and regional
counsel. Additionally, a Civil Investigator may work closely with the Case
Team to manage or support die PRP search. The primary responsibilities of
the Case Team follow.
PRP Search
   •   Ensure that the PRP search is as complete as possible, including
      adequate information for special notice and evidence on PRPs.
   •   Oversee continued investigations as necessary to gather further
      information on PRPs.
General Notice and Information Exchange
   •   Ensure that PRPs are given general notice.
   •   Ensure early information exchange with PRPs.
Special Notice and Negotiation
   •   Develop and transmit draft settlement documents to PRPs, includ-
      ing technical scopes of work, AOs, or CDs,  in advance of negotia-
      tions.
   •   Conduct negotiations and maintain deadlines.
The Case Team also assumes a coordinating role in facilitating a site's
progress through the enforcement process. As part of diis role, the Case
Team should develop a negotiation plan. The negotiation plan documents
EPA's approach to productive negotiations with PRPs; functions  as a
checklist of steps to be taken, including individual assignment of responsi-
bilities; guides EPA's negotiation preparation process; resolves anticipated
issues; and sets the bottom line for the negotiations. Negotiations where
EPA is fully prepared and sets schedules and deadlines are much  more likely
than others to result in signed AOCs. The RI/FS negotiation plan is also
discussed in Chapter 3, Establishing CERCLA Liability,  and is included as
an appendix to this chapter.

When planning for negotiations, die Case Team should review thoroughly
the PRP search report to ensure that the universe of PRPs has been identi-
fied and diat PRP waste-in and liability information is complete enough to
support the issuance of SNLs.  The information in the PRP search report

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 5-8      RI/FS Negotiations/Settlement
5.2.E
    Issue
General
  Notice
also should be sufficient to support the preparation of volumetric rankings
included in the special notice. Necessary follow-up work should be identi-
fied. Information, especially about current ownership of the site, must be
reviewed and updated regularly.
Information requests (104(e) letters) should be issued as early in the PRP
search/negotiation process as practicable. Information requests may be
issued as a separate letter during die PRP search process or as part of the
GNL.  Issuance of the information request letter prior to the GNL is
especially encouraged in situations where information from PRPs is neces-
sary to determine whether the issuance of a GNL is appropriate. Issuance of
the GNL marks the point at which EPA has sufficient evidence to make a
preliminary determination that a party is a PRP. Information request letters
are discussed at length in Chapter 4, PRP Search, Notification, and Infor-
mation Exchange.

The GNL informs PRPs of their potential liability, may begin or continue
die process of information exchange, and initiates die process of "informal
negotiations." Informal negotiations are any discussions that are not
conducted as part of the negotiation moratorium triggered by issuance of
special notice under CERCLA section 122(e).  GNLs should be issued at
the vast majority of all sites that are proposed for or listed on the NPL.
The GNL identifies a party as a PRP and informs the recipient of its
potential liability for all response activities and costs incurred by the govern-
ment.  GNLs should be sent to all parties for whom diere is sufficient
evidence to make a preliminary determination of potential liability under
CERCLA section 107. The RPM, in consultation widi regional counsel,
should issue the general notice to PRPs as soon as possible. Agency guid-
ance sets forth a model GNL. It is advisable to omit the demand for
payment in any notice letter sent to a debtor or bankruptcy trustee as such a
demand may be regarded as an act to collect payment of a pre-bankruptcy
petition debt.  Such acts are prohibited by the automatic stay provision of
Bankruptcy Code section 362(a). The procedure for issuing GNLs and
their contents are discussed in detail in Chapter 4, PRP Search, Notification
and Information Exchange.
References
OSRE Memorandum, "Policy for Municipality and Municipal Solid Waste
CERCLA Settlements at NPL Co-Disposal Sites" (February 5, 1998).
OECA Memorandum, "Guidance on EPA Participation  in Bankruptcy
Cases" (September 30, 1997).
OSWER Directive 9835.12-Ola, "Revised Policy on Discretionary Informa-
tion Release Under CERCLA" (March 31, 1993).
OSWER Directive 9834.10-la,  "Model Notice Letters" (February 7, 1989).
OSWER Directive 9335.3-01, "Guidance for Conducting Remedial
Investigations and Feasibility Studies Under CERCLA" Interim Final
(October 1988).

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                                                                                                5-9
5.2.F
     Steering
Committees
            and
 Information
    Exchange
5.2.G
     Followup
        onPRP
        Search
OSWER Directive 9834.10, "Interim Guidance on Notice Letters, Negotia-
tions and Information Exchange" (October 19, 1987).
OSWER Directive 9835.4, "Interim Guidance: Streamlining the CERCLA
Settlement Decision Process"  (February 12, 1987).

The Case Team should encourage PRPs to form a steering committee early
in the negotiation process. This encouragement, however, should not
suggest that EPA will negotiate only with one steering committee.  Steering
committees greatly facilitate negotiations in multi-party cases because the
government may negotiate with one committee that represents the PRPs,
and PRPs may resolve differences among diemselves dirough the commit-
tee. The Case Team should encourage PRPs to form a steering committee at
the time of the GNL, or at the first meeting between the government and
PRPs. If necessary,  the Case Team should educate the steering committee in
the Superfund enforcement process, including providing the committee
with pertinent information such as PRP identification, waste-in lists,
relevant policies, and technical data. As new PRPs are identified, the Case
Team should make that information known to die steering committee.
Establishment of PRP steering committees provides several logistical and
tactical advantages to die negotiation process, including:

  •   A central point for dissemination of information and government
      decisions.
  •   A single point of issuance of PRP proposals and decisions.
  •   A forum in which PRPs may negotiate among diemselves to deter-
      mine allocations among dieir own members.
  •   The opportunity for experienced PRPs to educate less-experienced
      PRPs.
The Case Team should be aware of possible disadvantages of dealing widi
steering committees. Some PRPs may not trust the recommendations of the
committee if they do not believe it fairly represents dieir concerns, and  these
PRPs may elect not to settle. If the committee leadership is unfamiliar with
CERCLA, or is internally fractious, die entire settlement can be jeopardized.
The Case Team needs to be sensitive to diese concerns in determining how
it will relate to a particular steering committee.
Reference
OSWER Directive 9835.12-0la, "Revised Policy on Discretionary Informa-
tion Release Under CERCLA" (March 31, 1993).

Before initiating formal negotiations with PRPs, the Case Team should
review the PRP search report and correspondence from the PRP steering
committee for any information that may lead to the identification of
additional PRPs.  Such leads should be pursued only where they appear
fruitful, and, in the event additional PRPs are identified, die new PRPs
should be issued a general notice, advised of the status of informal negotia-
tions, and informed of the existence of a PRP steering committee, if
appropriate.

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  5-10    RI/FS Negotiations/Settlement
5.2.H
      Natural
    Resource
     Trustees
5.2.1
 Preliminary
     Scoping
oftheRI/FS
Natural resource trustees and their responsibilities are identified and
described in NCP Subpart G and Executive Order 13016, August 28, 1996,
which delegated authority to issue CERCLA section 106(a) UAOs to
natural resource trustees. EPA is not a trustee for natural resources under
CERCLA. The trustees most frequendy involved with CERCLA activities
are the Department of die Interior, the Department of Agriculture, and the
Department of Commerce, which has delegated its responsibilities to the
National Oceanic and Atmospheric Administration (NOAA).  CERCLA.
section 104(b)(2) requires that the trustees be notified of releases of hazard-
ous substances that have the potential for causing damages to natural
resources, and diat EPA coordinate the assessments, investigations, and
planning with the trustees.  Section 122(j)(l) requires diat the trustees be
notified of setdement negotiations widi the PRPs. CERCLA does not give
EPA the authority to negotiate on behalf of the trustees. The RPM and
regional counsel should ensure that coordination widi die trustees is
maintained throughout die remedial process. The coordination process
established in EPA's Memorandum of Understanding (MOU) with NOAA
should be followed when interacting with that Agency. Additional MOUs
may be negotiated with other federal trustees. Until diese MOUs are
completed, however, the coordination sequence contained in die EPA-
NOAA MOU should be used as die model for coordination with odier
natural resource trustees.
Reference
OSWER Directive 9295.0-02, "Memorandum of Understanding (MOU)
between EPA and NOAA" (April 1992).

Preliminary scoping is the initial planning phase of site remediation and
should be initiated by die RPM with contractor support at least several
months prior to the beginning of negotiations: By conducting preliminary
scoping activities  before negotiations with PRPs begin, EPA enters negotia-
tions with a better idea of die nature  and extent of die technical work  that
needs to be done  at the site. Once EPA has scoped the technical work and
site management  requirements at a site, negotiations with PRPs are more
focused and die PRP-conducted work is likely to be of higher quality than
when adequate scoping activity has not occurred.
The ability to develop a comprehensive site management strategy and  site
objectives is closely tied to the amount and quality of information available
at the time. It should be recognized that the objectives and strategy may
not be fully developed at this stage. As new information is acquired or new
decisions are made, data requirements are reevaluated and, if appropriate,
the site management strategy or objectives are modified.
The site objectives should specify the purpose of any activities to be con-
ducted at the site, including any interim actions that may be necessary, as
well as the preliminary objectives of possible remedial actions, e.g., the
preliminary cleanup goals. These objectives should identify preliminary
contaminants and media of concern,  exposure pathways and receptors, and
an acceptable contaminant level or range of levels for each exposure route.

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                                                                 5-11
The site objectives are developed and based on existing site information,
contaminant-specific Applicable or Relevant and Appropriate Requirements
(ARARs), when available, and risk-related factors.
Development of site objectives and the site management strategy should be
conducted in light of die numerous guidance documents the Agency has
produced to assist, and realize cost and time savings, in performing RI/FSs.
The site management strategy is developed once die objectives have been
established, and identifies die study boundary areas and die optimal se-
quence of site activities, including whether die site may best be remedied as
separate Operable Units. The general management approach should
include actual and potential site problems, any interim actions that are
necessary to mitigate potential threats or prevent further environmental
degradation, and the optimal sequence of activities to  be conducted at the
site. The site management strategy should also set fordi how die RI may
contribute to the PRP search, i.e., producing evidence of PRP liability or
identifying additional PRPs.  This would be particularly appropriate at sites
at which all of the sources of contamination are not yet well defined.
Determination of site boundaries may be a particularly significant issue for
PRPs. The Case Team must carefully  evaluate preliminary site information
to determine if RI activities should occur in a more extended or restricted
geographic area. This decision may be particularly difficult in situations
that involve area-wide ground water contamination or commingled ground
water contamination plumes, where contamination sources are identified off
site and indicate dial additional PRPs may be identifiable. Scoping activi-
ties may dius uncover information that is valuable in following up PRP
search efforts or identifying additional PRPs. Site access also may be an
issue significant to PRPs in negotiations.  The Case Team should be aware
of any potential site access issues when preparing for negotiations.
References
"Multi-Phase Extraction (MPE) Technology Selection for the VOCs in Soil
and Ground Water Presumptive Remedy," Draft Final (January 1997).
"Landfill Presumptive Remedy Saves Time and Cost," EPA 540-F-96-017.
"Application of die CERCLA Municipal Landfill Presumptive Remedy to
Military Landfills," EPA 540-F-96-020.
"Presumptive Response Strategy and Ex-Situ Treatment Technologies for
Contaminated Ground Water at CERCLA Sites," EPA 540-R-96-023.
"User's Guide to die VOCs in Soils Presumptive Remedies," EPA 540-F-96-
008.
OSWER Directive 9355-4-14FSA, "Quick Reference  Fact Sheet" (July
1996).
OSRE Memorandum, "Transmittal of Sample Notice Letters: 1) Demand;
2) General Notice; 3) Special Notice; and 4) Follow-Up 104(e)" (July 26,
1996).

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 5-12     RI/FS Negotiations/Settlement
5.2.J             RI/FS
            Statement
                of Work
OSWER Directive 9355.4-23, "User's Guide" (April 1996).
"Soil Screening Guidance: Technical Background Document," EPA 540-R-
95-128.
"Presumptive Remedies for Soils, Sediments, and Sludges at Wood Treater
Sites," EPA 540-R-95-128.
"CERCLA Landfill Caps RI/FS Data Collection Guide," EPA 540-F-95-
009.
"Presumptive Remedy for CERCLA Municipal Landfill Sites," EPA 540-F-
93-035.
"Site Characterization and Technology Selection for CERCLA Sites With
Volatile Organic Compounds in Soils," EPA 540-F-93-048.
"Policy and Procedures," EPA 540-F-93-047.
"Technology Selection Guide for Wood Treater Sites," EPA 540-F-93-020.
OSWER Directive 9234.2-25, "Guidance for Evaluating the Technical
Impracticability of Ground Water Restoration" (September 1993).
"Presumptive Remedies for Municipal Landfill Sites," SuperfundAccelerated
Cleanup Bulletin: Volume 2, Number 1 (February 1993).
"Presumptive Remedies," Superfund Accelerated Cleanup Bulletin (August
1992).
"Presumptive Remedies for Wood Treatment Facilities," Superfund Acceler-
ated Cleanup Bulletin (May 1992).
"Presumptive Remedies for Municipal Landfill Sites," Superfund Accelerated
Cleanup Bulletin: Volume 1, Number 1 (April 1992).
"Conducting RI/FS for CERCLA Municipal Landfills," EPA 540-P-91-
001.
OSWER Directive 9355.3-01FS1, "Getting Ready - Scoping the RI/FS"
(November 1989).
OSWER Directive 9355.3-01, "Guidance for Conducting Remedial
Investigations and Feasibility Studies Under CERCLA" Interim Final
(October 1988).

The RI/FS SOW describes die broad objectives, general activities to be
undertaken, and deliverables to be submitted by PRPs as part of the RI/FS.
The SOW should be prepared before issuance of special notice and included
in the notice letter when issued to the PRPs. Agency guidance sets forth a
model SOW, die major components of which are set fordi in Exhibit 5-3.
The draft site-specific SOW may be prepared by die RPM and other
regional personnel, widi contractor help on scoping. Some circumstances
may warrant EPA preparation of a work plan before or during negotiations.
For a particular site, the RPM should add scoping information to the model
SOW and should tailor die model, as necessary, to the site and PRPs. In

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                                                                5-13
limited circumstances, the RPM or EPA may prepare the SOW after the
order is signed, but this approach may lead to major implementation
problems and is not preferred.
The work plan describes the methodology for accomplishing the objectives
set forth in the SOW. Work plans usually are prepared by the PRPs as the
first deliverable specified under the terms of die RI/FS setdement.
References
OSWER Directive 9835.8, "Model Statement of Work for a Remedial
Investigation and Feasibility Study Conducted by Potentially Responsible
Parties" (June 2, 1989).
OSWER Directive 9335.3-01, "Guidance for Conducting Remedial
Investigations and Feasibility Studies" Interim Final (October 1988).

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 5-14    RI/FS Negotiations/Settlement
5-3    Major Components of the SOW
                      TASK 1: SCOPING

                      ACTIVITIES:

                      • Collect and Analyze Existing Site Data
                      • Document Need for Additional Data
                      • Project Planning, Including Refinement of Remedial Action
                        Objectives, Documentation of Need for Treatability
                        Studies, and Preliminary Identification of Potential ARARs

                      DELIVERABLES:

                      • RI/FS Work Plan
                      • Sampling and Analysis Plan (SAP)
                      • Site Health and Safety Plan
                      TASK 2: COMMUNITY INVOLVEMENT
                      TASK 3: SITE CHARACTERIZATION

                      ACTIVITIES:

                      • Field Investigation, Including Implementing Field Support
                        Activities, Defining Site Physical Characteristics, Sources
                        of Contamination and Nature and Extent of Contamination
                      • Data Analyses
                      • Data Management Procedures

                      DELIVERABLES:

                      • Technical Memorandum on Modeling of Site
                        Characteristics (Where Appropriate)
                      • Preliminary Site Characterization Summary Draft
                        Remedial Investigation Report
                      TASK 4: BASELINE RISK ASSESSMENT

                      ACTIVITIES:

                      • Contaminant Identification and Documentation
                      • Exposure Assessment and Documentation
                      • Toxicity Assessment and Documentation
                      • Human Health Risk Characterization
                      • Environmental Evaluation

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                                                                                        5-15
5-3 (cont.)   Major Components of the SOW
                  TASK 5: TREATABILITY STUDIES

                  ACTIVITIES:

                  • Determine Candidate Technologies and the Need for Testing
                  • Conduct Treatability Testing

                  DELIVERABLES:

                  • Technical Memorandum Identifying Candidate Technologies
                  • Treatability Testing Statement of Work
                  • Treatability Testing Work Plan (or Amendment to Original)
                  • Treatability Study SAP (or Amendment to Original)
                  • Treatability Study Site Health and Safety Plan (or Amendment
                    to Original)
                  • Treatability Study Evaluation Report
                  TASK 6: DEVELOPMENT AND SCREENING OF
                         ALTERNATIVES

                  ACTIVITIES:
                    Refine and Document Remedial Action Objectives
                    Develop General Response Actions
                    Identify Volumes or Areas of Media
                    Identify, Screen, and Document Remedial Technologies
                    Assemble and Document Alternatives
                    Refine Alternatives
                    Conduct and Document Screening Evaluation of Each
                    Alternative
                  DELIVERABLES:

                  • Technical Memorandum Documenting Revised Remedial Action
                    Objectives
                  • Technical Memorandum on Remedial Technologies,
                    Alternatives, and Screening
                  TASK 7: DETAILED ANALYSIS OF ALTERNATIVES

                  ACTIVITIES:

                  • Apply Evaluation Criteria and Document Analysis
                  • Compare Alternatives Against Each Other and Document
                    Comparison of Alternatives

                  DELIVERABLES:

                  • Draft Feasibility Study Report
                  TASK 8: OVERSIGHT ACTIVITIES

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  5-16    RI/FS Negotiations/Settlement
5.2.K               Risk    Current Agency policy allows PRPs to conduct risk assessments at most sites
         Assessments    where they are performing the RI/FS, and no longer requires regions to
                                consult the Office of Emergency and Remedial Response (OERR) before
                                authorizing PRPs to do so. The decision whether to allow a PRP to con-
                                duct the risk assessment is site-specific and must ensure compliance with
                                section 104(a)(l)  of CERCLA, which states that "no remedial investigation
                                or feasibility study (RI/FS) shall be authorized except on a determination by
                                the President that die party is qualified to conduct the RI/FS." Agency
                                guidance sets forth six criteria that regions should consider when deciding
                                whether to allow a PRP to perform a risk assessment:

                                  •   EPA's prior experience with the requesting PRP at this or other sites
                                      and in particular whether excessive oversight and revisions were
                                      necessary when that PRP previously conducted a risk assessment.
                                  •   PRP or PRP contractor's experience in conducting acceptable human
                                      healtli and ecological risk assessments at Superfund sites.
                                  •   PRP or PRP contractor's willingness to follow current Superfund risk
                                      assessment processes and guidances.
                                  •   PRP or PRP contractor's demonstrated ability to submit data  to EPA
                                      in the proper format.
                                  •   Available EPA resources and schedule for RI/FS completion.
                                  •   Level of public concern at the site.
                                The Risk Assessment Guidance for Superfund (RAGS) Human Health
                                Evaluation Manual Part D: Standardized Planning, Reporting, and Review
                                of Superfund Risk Assessments establishes a process for using spreadsheet
                                software to develop analytical schemes for risk assessments at Fund-lead,
                                PRP-lead, Federal Facilities, and RCRA Corrective Action sites. It enables
                                RPMs and risk assessors to scope and plan risk assessments, formulate
                                problems, and develop conceptual site models as part of a continuing
                                relationship that also expands stakeholder involvement. Tables generated by
                                the software applications serve as the basis for interim deliverables for risk
                                assessment contractors and form part of the Comprehensive Environmental
                                Response, Compensation, and Liability Information System 3/Waste Local
                                Area Network (CERCLIS 3/WasteLAN) data base.
                                The Agency is currendy drafting supplements to RAGS covering involve-
                                ment of community stakeholders, consideration of land use, establishment
                                of background for risk assessment, use of uncertainty/probabilistic analysis,
                                and standardization of approaches for lead-contaminated sites. The supple-
                                ment on community involvement should be  finalized during the second
                                quarter of FY1999 and the others by the end of calendar 1999. The  Agency
                                is also drafting a concise, user-friendly reference document on practices that
                                can help to increase public participation in risk assessments. This document
                                should be finalized during the second quarter of FY1999.  Once available,
                                these resources should guide development of the SOW.

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                                                                                                 5-17
5.2.L                Draft
        Administrative
                   Orders
References
Federal Facilities Restoration and Reuse Office Memorandum, "Use of
Risk-Based Methodologies in Setting Priorities for Cleanup Actions at
Federal Facilities" (May 21, 1998).
OSWER Directive 9285.7-0ID, Risk Assessment Guidance for Superfund
(RAGS) Human Health Evaluation Manual Part D: Standardized Planning,
Reporting, and Review of Superfund Risk Assessments (January 1998).
OSWER Directive 9340.1-02, "Revised Policy on Performance of Risk
Assessments During Remedial Investigation/Feasibility Studies (RI/FS)
Conducted by Potentially Responsible Parties" (January 26, 1996).

The terms and conditions governing die RI/FS activities of PRPs should be
specified in an AOC. AOCs are the preferred setdement document for  RI/
FS activities because EPA may enter into AOCs under its own authority.
In limited circumstances, EPA may issue a UAO to compel a PRP to
perform an RI/FS.
The Case Team should prepare a draft AOC before special notice is sent.
Agency guidance sets forth a model AOC, and most regions also have
developed their own model orders.
In addition to setdement terms, die AOC must incorporate, by reference,
the SOW. The AOC also should contain language that requires PRP-
conducted RI/FS activities to meet appropriate quality standards. The draft
AOC thus provides a starting point for negotiations and should be prepared
in time for inclusion in die special notice to the PRPs. RPMs must coordi-
nate closely widi regional counsel in preparing die draft AOC.
In addition to the SOW, which outlines the activities to be performed, the
AOC usually contains schedules, EPA or state oversight roles and responsi-
bilities, and enforcement options that may be exercised in  die event of
noncompliance, such as stipulated penalties.   The AOC also typically
includes die following elements as agreed upon by EPA and the PRPs:

   •   Introduction - identifies the site and parties involved, and describes
       die response action.
   •   Jurisdiction - describes EPA's authority to issue the order.
   •   Parties Bound - describes to whom the agreement applies and
       whom it binds.
   •   Statement of Purpose - describes the purpose of the order in terms
       of mutual objectives in preparing an RI/FS.
   •   Findings  of Fact - provides an outline of facts upon which die order
       is based.
   •   Conclusions of Law and Determinations - specifies that the site is
       a "facility," wastes are "hazardous substances" and their presence
       constitutes a "release."

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5-18    Rl/FS Negotiations/Settlement
                                     Notice - verifies that the state has been notified of pending site
                                     activities.
                                     Work to Be Performed - describes, generally by reference to the
                                     attached SOW, the activities to be conducted pursuant to the AOC,
                                     and provides a schedule for completion of activities and a schedule of
                                     deliverables.
                                     Modification of the "Vffork Plan - provides that EPA may require
                                     PRPs to perform response actions in addition to those required by
                                     the initially approved work plan if EPA determines that such actions
                                     are necessary for a complete RJ/FS.
                                     Quality Assurance (QA) - specifies that technical work at a site
                                     must comply with the requirements of CERCLA,  the NCP, Agency
                                     guidance, and QA procedures.
                                     Final RI/FS, Proposed Plan, ROD, Public Comment and AR
                                     Requirements - specifies  that EPA release the RI/FS and prepare the
                                     ROD, and that all information upon which the selection of remedy
                                     may be based be submitted to EPA for public comment in fulfill-
                                     ment of the AR requirements of CERCLA section 113.
                                     Progress Reports and Meetings - specifies the type and frequency of
                                     reporting that PRPs must provide to EPA.
                                     Sampling, Access, and Data Availability/Admissibility - stipulates
                                     that PRPs shall allow access to the site by EPA-authorized personnel,
                                     the state, and third party oversight officials. The settlement should
                                     state what constitutes the PRPs' best efforts to gain access to the site
                                     or necessary off-site locations when the property is not owned by the
                                     PRPs. The settlement should also provide for access to the site by
                                     EPA contractors and specify actions EPA might take to gain access.
                                     In developing these provisions,  the Case Team should consider access
                                     needs and the cooperation of the parties owning property to which
                                     access might be required.  This  section also stipulates that the PRPs
                                     shall submit to EPA in the subsequent monthly progress report all
                                     results of sampling, modeling, tests, or other data; that the PRPs
                                     waive any objections to data that are verified according to the QA/
                                     quality control procedures required by the AOC or any EPA-
                                     approved work plans or sampling and analysis plans; and that EPA
                                     may take split or duplicate samples.
                                     Designated Project Coordinators - specifies that EPA, the state,
                                     and PRPs shall each designate a project coordinator.  The EPA
                                     coordinator may be the RPM.
                                     Other Applicable Laws - states diat PRPs shall comply with all laws
                                     that are applicable when performing the RI/FS.
                                     Record Preservation - specifies that all records must be maintained
                                     by both parties for a minimum  of 10 years after commencement of
                                     the RA, if any, followed by a provision requiring PRPs to offer the
                                     site records to EPA before disposal.

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                                                                 5-19
   •    Dispute Resolution - specifies steps to be taken to resolve disagree-
       ments between the parties regarding the work to be performed.
   •    Delay in Performance/Stipulated Penalties - provides for stipulated
       penalties for noncompliance with the terms of the order, and sets
       forth penalty amounts. This clause in the settlement may also address
       the applicability of statutory penalties.
   •    Force Mojeure - defines what constitutes an acceptable delay not
       subject to penalties; stipulates that the PRPs shall notify EPA of any
       event that occurs that might delay or prevent work and that is due to
       an unexpected or uncontrollable event that could not be avoided by
       exercise of due care.
   •    Reimbursement of Past Costs - provides for reimbursement of past
       response costs incurred by the government.
   •    Reimbursement of Response and Oversight  Costs - provides for
       reimbursement of government costs in connection with the RI/FS,
       including review and oversight. Cost categories and documentation
       to be provided by EPA should be included. The Agency's policy is to
       bill PRPs on an annual basis and offer to discuss oversight expecta-
       tions for the upcoming year.
   •    Reimbursement Petition - stipulates that PRP/respondent agrees not
       to file a reimbursement petition under CERCLA section 106(b).
   •    Reservations of Rights and Reimbursement  of Other Costs -
       provides EPA with the right to enforce past costs and cost reimburse-
       ment requirements.
   •    Disclaimer - states that the PRPs' signature on the AOC is not
       considered an admission of liability.
   •    Other Claims - states that the AOC does not release any party from
       liability except a signatory of the order.
   •    Financial Assurance, Insurance, and Indemnification - specifies
       that PRPs should have adequate financial resources/insurance cover-
       age to cover liabilities resulting from their RI/FS activities.
   •    Effective Date and Subsequent Modification - stipulates that the
       AOC is effective on die date it is signed by EPA and that it may be
       amended by mutual agreement of EPA and the PRPs.
   •    Termination and Satisfaction - states diat the AOC shall terminate
       when the PRP demonstrates in writing that all work has been per-
       formed and EPA approves.
References
OSWER Directive 9340.1-02, "Revised Policy on Performance of Risk
Assessments During Remedial Investigation/Feasibility Studies (RI/FS)
Conducted by Potentially Responsible Parties"  (January 26, 1996).
OSWER Directive 9835.3-1 A, "Model Administrative Order on Consent
for Remedial Investigation/Feasibility Study" (January 30, 1990).

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 5-20    RI/FS Negotiations/Settlement
5.2.M
   Issue
Special
 Notice
Office of Enforcement and Compliance Monitoring Memorandum, "Use of
Stipulated Penalties in EPA Settlement Agreements" (January 24, 1990).
OSWER Directive 9335.3-01, "Guidance for Conducting Remedial
Investigations and Feasibility Studies Under CERCLA" Interim Final
(October 1988).

The SNL procedure authorized by CERCLA section 122(e) initiates the
formal settlement process between EPA and die PRPs.  The special notice
procedure triggers a moratorium on EPA's conduct of the RI/FS and
remedial action.  Certain investigatory and planning activities might occur
during die negotiation moratorium, including any "additional studies" as set
forth in CERCLA section 104(b). 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 response activities. The special
notice procedure should be used whenever it would facilitate agreement.
Regions may choose to negotiate agreements on RI/FS  and RD perfor-
mance at the same time.  If EPA does not issue a special notice, the region
must notify PRPs accordingly.
The RI/FS negotiation moratorium may last 90 days if EPA receives a GFO
for conducting the work from PRPs within the first 60 days of the morato-
rium. The negotiation moratorium concludes after 60 days if the PRPs do
not provide EPA with a GFO.
The SNL should specify the calendar date dirough which the moratorium
runs.  If there are multiple PRPs and diey are likely to receive the special
notice on different days, the region may consider beginning the moratorium
approximately 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 ends.
RPMs and regional counsel should manage negotiations from the outset so
that PRPs understand the negotiation ground rules and the Agency's
expectations. Schedules should be established and adhered to so that active
negotiations are not delayed until the end of the moratorium. RPMs and
regional counsel should strongly emphasize to PRPs that GFOs will not be
rubber-stamped, extensions of the negotiation moratorium will not be
granted  as a matter of course, and negotiations will cease when the  morato-
rium expires.
In cases  where EPA decides it is inappropriate to issue the special notice, the
Region must notify PRPs in writing of the decision. CERCLA section
122(a) provides that the notice indicate the reasons why the region  deter-
mined that issuing the special notice and entering into  formal negotiations
was not  appropriate. Agency guidance sets forth a model notice of decision
not to use special notice procedures. This model should be used by the
regions when notifying PRPs that the special notice procedure will not be
used.  The notice or justification for not issuing the special notice should be
provided to all PRPs that have been  identified to date as well as to the
regional AR coordinator for placement in die AR.

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                                                                                                5-21
5.2.N
Good Faith
         Offer
In general, EPA policy is to issue SNLs for RI/FS whenever possible. There
are several circumstances where EPA generally would not use the special
notice procedure:

   •   Past dealings with the PRPs strongly indicate they are unlikely to
      negotiate a setdement.
   •   EPA believes the PRPs have not been negotiating in good faith.
   •   No PRPs have been identified at the conclusion of the PRP search.
   •   PRPs lack the resources to conduct response activities.
   •   Notice letters were issued prior to enactment of SARA and ongoing
      negotiations would not benefit by issuance of special notice.
The RPM also must notify the state of the negotiations and provide the
state with the opportunity to participate.
The special notice should be sent 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 PRP conduct of the
RI/FS. At the latest, PRPs should receive special notice 90 days prior to the
scheduled date for initiating the RI/FS. The scheduled date for initiating
the RI/FS refers to the date die AOC will be signed or the date funds will be
obligated to commence response activities. The 90-day period allows an
opportunity for the PRPs to undertake the RI/FS while also providing a
timeline for initiating Fund-financed RI/FS activity if negotiations do not
result in settlement.
References
OECA Memorandum, "Guidance on EPA Participation in Bankruptcy
Cases" (September 30, 1997).
OSWER Directive 9834.10-la, "Model Notice Letters" (February 7, 1989).

The initial 60-day moratorium may be extended to 90 days if the PRPs
submit a GFO for conducting RI/FS activity.  The special notice should
identify a GFO as a written  proposal that demonstrates the  PRPs qualifica-
tions and willingness to undertake the RI/FS.  A GFO for the RI/FS
normally should contain the following elements, which EPA should request
in the SNL:

   •   A statement of the PRPs' willingness to conduct the RI/FS that is
      consistent with EPA's SOW or work plan and draft AOC, and
      provides a sufficient basis for further negotiations.
   •   A paragraph-by-paragraph response to EPA's SOW or work plan and
      draft AOC, including a response to any other attached documents.
   •   A demonstration of the PRPs' technical capability to undertake the
      RI/FS, including identification of the firm(s) that might actually
      conduct the work or  a description of the process they will use to
      select the firm(s).

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5-22    RI/FS Negotiations/Settlement
                                 •   A demonstration of the PRPs' capability to finance the RI/FS.
                                 •   A statement of willingness by the PRPs to reimburse EPA for costs
                                    incurred in connection with the PRPs' conduct of the RI/FS,
                                    including oversight.
                                 •   The name, address, and phone number of the party or steering
                                    committee that will represent the PRPs in negotiations.
                              If EPA determines (1) that the offer constitutes a GFO based on the above
                              elements, and (2) diat continuing negotiations will be beneficial, the region
                              may approve a 30-day extension of the negotiation period.  Generally, the
                              30-day extension is utilized only when settlement is likely.
                              In some cases, it may be beneficial to extend negotiations beyond die 90-
                              day moratorium period. In exceptional circumstances, the Regional
                              Administrator (RA) may approve extending negotiations for an additional
                              30 days beyond die 90-day moratorium.  Extensions are granted only in
                              very rare circumstances and for short duration where final agreement is
                              imminent; in no case should negotiations exceed 120 days.  PRPs should be
                              advised diat die moratorium on unilateral EPA commencement of an RI/FS
                              expires at the end of the 90-day moratorium notwithstanding die second
                              30-day extension.  Requests for extensions to the formal negotiation period
                              should be made in writing by the Case Team to die RA. This request may
                              be prepared initially by the RPM and should specify the length of extension
                              requested, status of negotiations (issues resolved and diose unresolved),
                              justification for die extension, and actions to be taken in die event negotia-
                              tions are unsuccessful. The RA will approve or deny die extension based on
                              die information presented in die request. Headquarters concurrence is no
                              longer required before issuing a second 30-day extension of die negotiation
                              moratorium for RI/FS negotiations.
                              In cases where a GFO is rejected based on die criteria oudined in Agency
                              guidance on PRP participation in conducting RI/FSs, die Case Team must
                              determine whedier die PRPs are indeed negotiating in good faidi and
                              whether to continue  negotiation efforts.
                              Under CERCLA section 122(h)(l), die Agency may compromise and settle
                              a claim under CERCLA section 107 for past and future response costs if the
                              case has  not been referred to DOJ for further action.  In cases where total
                              response costs of die  United States exceed $500,000 (excluding interest),
                              claims may be compromised (i.e., settled for less than 100 percent of total
                              costs) only after approval by DOJ.  DOJ is not required to review an AO for
                              PRP conduct of an RI/FS.
                              References
                              OSRE Memorandum, "Guidance on Administrative Response Cost Settle-
                              ments under Section  122(h) of CERCLA and Administrative Cashout
                              Setdements with Peripheral Parties  under Section-122(h)  of CERCLA and
                              Attorney General Audiority" (September 30, 1998).

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                                                                                              5-23
5.2.O
5.2.O.1
Conditions
     for PRP
  ^
   Conduct
    of RI/FS
     Scope of
    Activities
5.2.O.2  Demonstrated
              Capabilities
5.2.O.3
  Assistance
      for PRP
    Activities
5.2.P   Negotiations
              Outcome:
               PRP-Lead
                    RI/FS
OSWER Directive 9335-3-01, "Guidance for Conducting Remedial
Investigations and Feasibility Studies under CERCLA" Interim Final
(October 1988).

EPA must evaluate PRP offers against certain criteria to determine whether
the PRPs possess the capabilities to perform the RI/FS promptly and
properly. RPMs should consider whether the following conditions for PRP
conduct of the RI/FS are met.


PRPs must agree to follow the site-specific SOW, including reasonable
modifications acceptable to EPA, as the basis  for conducting the RI/FS.
EPA will reject any request for modifications  of the SOW that are not
consistent with CERCLA, die NCP, and requirements set forth in Agency
guidance.

PRPs must demonstrate to EPA that they possess, or are able to obtain, the
technical expertise necessary to perform all relevant activities identified in
the SOW. PRPs also must demonstrate that they possess the managerial
expertise and have developed a management plan sufficient to ensure  that
the proposed activities will be properly controlled and efficiendy imple-
mented.  In addition, PRPs must demonstrate dial they possess the financial
capability to conduct and complete the RI/FS in a timely and effective
manner. Although it is always considered in negotiations, the PRPs'
demonstration of their technical, managerial,  and financial capabilities
might be the first deliverable under the setdement.
In addition  to the PRPs' technical and managerial capabilities, the Agency
will have considered their ability to objectively address certain issues in
drafting the order. Tasks that the Agency should pay special attention to
and consider reserving for itself include determination of ARARs and the
effectiveness of institutional controls.

If PRPs propose to use consultants for conducting or assisting in the RI/FS,
the PRPs should specify the tasks to be conducted by the consultants  and
submit personnel and corporate qualifications of the proposed firms to EPA
for review. EPA must verify that the PRPs' consultants have no conflict of
interest with respect to the project.

Negotiations that result in setdement are concluded by signature of an AOC
or entry of a CD committing the PRPs to conduct the work and reimburse
the governments costs.
Once PRPs have signed the setdement document, the agreement must go
through the regional concurrence chain and ultimately be signed by the RA,
unless his/her authority has been re-delegated. If the setdement document
is a CD, it will be finalized in coordination widi DOT s Environmental
Enforcement Section.
Although it is preferable not to have uncooperative PRPs conducting  the
investigatory work of the RI/FS, in limited circumstances section 106
UAOs may be issued to achieve PRP conduct of RI/FS activities.

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 5-24    RI/FS Negotiations/Settlement
5.2.Q  Negotiations
             Outcome:
            Fund-Lead
                   RI/FS
Current Agency policy requires documentation of decisions to exclude any
PRPs from a UAO or not to issue a UAO to late-identified PRPs after other
PRPs have assumed responsibility for conducting the response action.
Reference
OSRE Memorandum, "Documentation of Reason(s) for Not Issuing
CERCLA 106 UAOs to All Identified PRPs" (August 2, 1996).

If negotiations do not lead to a signed AOC at the end of the formal
negotiation period, EPA may initiate Fund-lead RI/FS activities or continue
a period of informal negotiations, if appropriate.  Initiation of Fund-
financed activity is possible only if provisions have been made for the
activity in SCAP. A planned date for the initiation of Fund-lead activity
may be viewed as a "drop-dead" settlement date for PRPs, thus providing an
incentive for settlement.

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                                                                                               5-25
5.3
5.3.A          Planning
         Requirements
Planning and Reporting Requirements
This section discusses the planning and reporting requirements associated
with the RI/FS negotiation process.

Funds for RI/FS negotiations are made available to the regions through the
Case Budget.  The Case Budget process is discussed in greater detail in
Chapter 16, Targeting Accomplishments  and Measuring Performance.
Funds allocated to RI/FS negotiations are set forth in the current fiscal year
SCAP manual.
The funds available for RI/FS negotiations cover the following activities:

   •  Scoping of die RI/FS.
   •  Development of die SOW.
   •  Forward planning/records compilation.
   •  Issuance of special notice.
   •  Support for negotiations meetings.
   •  Development and issuance of AOs.
This allocation is not designed to support entire scoping activities and work
plan development of a Fund-financed RI/FS.
When planning in the SCAP for RI/FS activities, RPMs should consider the
advantages and disadvantages of targeting RI/FS activities as Fund- or PRP-
lead.  If a Fund-lead RI/FS is targeted at a site, OERR sets aside extramural
dollars to perform the work. In situations where money has already been
appropriated for RI/FS activity at a site, EPA might be able to negotiate
more effectively with the PRPs, since the  possibility exists that EPA may
choose to conduct die work immediately and sue for cost recovery later.
PRPs generally prefer settling before RI/FS work is completed to avoid
being sued for cost recovery at a later time.   Proper planning entails
achieving a balance between Fund- and PRP-lead targeted RI/FSs.

RPMs should anticipate die extent of contractor involvement in die
issuance of GNLs and SNLs, development of die SOW, and evaluation of
PRP engineering qualifications. In addition, RPMs should note diat
separate work assignments must be initiated  for RI/FS negotiation and
oversight of PRP RI/FSs. The initiation of separate work assignments is
necessary for tracking and recovery of oversight costs.
If needed, contractor support generally is available through Enforcement
Support Services contractors, other federal agencies (e.g., United States
Army Corps of Engineers) under Interagency Agreements (IAGs), or states
under Cooperative Agreements. Oversight resources are made available
through the Case Budget process. At die time of settlement, the RPM
should plan for oversight and identify in-house and extramural support
needs. Oversight planning requirements  are discussed in greater detail in
Chapter 6, RI/FS Implementation. PRPs are required by the statute to pay
for EPAs costs in connection with die RI/FS, including oversight.

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 5-26   RI/FS Negotiations/Settlement
5.3. B       Reporting
        Requirements
RI/FS negotiations are discussions between EPA and the PRPs on their
liability, willingness, and ability to conduct the RI/FS.  RI/FS negotiations
are tracked by the Comprehensive Environmental Response, Compensation
and Liability Information System 3/Waste Local Area Network (CERCLIS
3/WasteLAN).  Exhibit 5-4 summarizes SCAP measures relevant to RI/FS
negotiations. RPMs are responsible for ensuring that accurate data are
reported into CERCLIS 3/WasteLAN. The RPMs should enter the data or
provide the information to the IMC.  If the region does not plan to perform
RI/FS negotiations at a site, negotiation dates should not be placed in
CERCLIS 3/WasteLAN. The start of RI/FS negotiations should be
planned site-specifically.  This is a SCAP reporting measure.

5-4    SCAP Measures for  RI/FS Negotiations
Activity
RI/FS Negotiation
Start
RI/FS Negotiation
Completion
SCAP Final/Report
X
X
Quarterly
X
X
Annual
X
X
                              RI/FS Negotiation Start and RI/FS Negotiation Completion are defined as
                              follows:

                                 •   RI/FS Negotiation Start - RI/FS negotiations start when the first
                                    SNL is signed, or a waiver of SNL is signed.
                                 •   RI/FS Negotiation Completion - The RI/FS negotiation ends when
                                    the following have been accomplished.
                                    -   A UAO for RI/FS is signed by the RA (a UAO is not the
                                        preferred enforcement tool for RI/FS and should be used only
                                        under unique circumstances).
                                        An AOC for RI/FS is signed by the RA or other delegated
                                        official.
                                        A signed CD for RI/FS is referred by the region to OSRE or
                                        DOJ.
                                        The region decides to proceed with a Fund-financed RI/FS,
                                        terminates negotiations, and obligates funds for the RI/FS.
                              The negotiations conclusion date is the date the RA signs the order, the date
                              on the transmittal letter referring the CD, or the date on which funds for
                              RI/FS are obligated.
                              The RI/FS negotiation outcomes are also tracked by SCAP. A matrix of
                              SCAP measures relevant to RI/FS negotiation outcomes is presented as
                              Exhibit 5-5.

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                                                              5-27
5-5    SCAP Measures for RI/FS Negotiation Outcomes
Activity
Total Response
Settlements (CD,
AOC, UAO)
State Orders for
Expanded Site
Inspection/RI/FS
SCAP Final/Report
X
X
Quarterly
X
X
Annual
X
X
RI/FS negotiation outcomes are defined as follows:

  •   AOC and UAO - Enforcement tools used to compel PRPs to assume
      responsibility for removal actions and RI/FS projects. Report
      CERCLA section 104/106/122 AOs (AOCs and UAOs) issued by
      EPA for PRPs to conduct removal actions and/or RI/FSs. Credit for
      an order is based on the date it is signed by the RA as recorded in
      CERCLIS 3/WasteLAN. Projections for AOs for RI/FS are made
      site specifically.
  •   CD - Judicial agreement between EPA and PRPs requiring PRPs to
      conduct the RI/FS.  Credit is based on the CD start date as recorded
      in CERCLIS 3/WasteLAN (i.e., the date the RA signs the transmittal
      memo to Headquarters or DOJ).
  •   State Orders for Expanded Site Inspection (ESI)/RI/FS - Agree-
      ments between a state and PRPs requiring the PRPs to conduct the
      ESI or RI/FS.  Credit is given as of the completion date recorded in
      CERCLIS 3/WasteLAN (i.e., when the last state official signs the
      agreement).
For specific coding requirements into CERCLIS 3/WasteLAN, see the
SCAP/OIL Quick Reference Coding Guide or your IMC.
Reference
OSWER Directive 9200.3-14-1D, SuperfimdlOil Program Implementation
Manual (updated biennially).
SCAP/OIL Quick Reference Coding Guide.

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  5-28     RI/FS Negotiations/Settlement
5.4
5.4.A
Stipulated
  Penalties
5.4.B      Past Costs
5.4.C
       RI/FS
 Oversight
       Costs
5.4.D
 Removals
  Required
     During
      RI/FS
                  Potential Problems/Resolutions
                  This section discusses specific issues the Case Team might confront during
                  the course of RI/FS negotiations and suggests mediods for resolving these
                               issues.
As an incentive for PRPs to properly conduct the RI/FS and correct any
deficiencies discovered during the conduct of the agreement, EPA should
include stipulated penalties in the terms of the agreement. Penalties should
begin to accrue on the first day of the deficiency and continue to be assessed
until the deficiency is corrected. The type of violation (e.g., reporting
requirements, implementation of construction requirements) as well as the
amounts per violation per day should be specified as stipulated penalties in
the agreement. CERCLA section 122 also allows EPA to seek or impose
civil penalties for violations of AOs.

In many cases, EPA has incurred significant costs at a site prior to settling
with PRPs for performance or financing of the RI/FS. Such costs might
include the conduct of one or more removal actions or actions taken under
section 7003 of the Resource Conservation and  Recovery Act.  EPA must
decide whether to pursue recovery of these costs as part of the RI/FS
setdement, or delay attempting to recover pre-RI/FS costs until RD/RA
negotiations.  The Case Team should determine past costs prior to issuance
of the SNL, and include them in the letter as a demand. In negotiations,
the Case Team should consider the numbers of settlors and non-settlors, the
likely statute of limitations for the removal action, the possible implications
of cost recovery litigation on remedial activities, and possibilities of realloca-
tion in RD/RA negotiations; in particular, the Case Team must remember
that a removal action does not attract the six-year, RA limitation period
unless the RA commences within three years after completion of die
removal  action.

The cost of EPA or state oversight is often a major issue during RI/FS
negotiations.  Although PRPs typically seek to cap their responsibility for
oversight costs, section 104(a)(l) of CERCLA expressly provides that PRPs
may perform an RI/FS only if they agree to reimburse "any cost incurred"
in connection with RI/FS oversight.

The projected amount of EPA/state oversight and procedures for oversight
billing should be discussed thoroughly during RI/FS negotiations.  In all
cases, the nature and degree of oversight should  be appropriate for the
work being performed; regions should strive to use oversight resources in a
cost-effective manner.  Oversight costs include amounts spent on Agency
                              contractors.
During the course of the RI/FS, site conditions may deteriorate to the point
that removal activity is required. The Case Team should be prepared for the
possibility that a removal might be required during the RI/FS and include
provisions for such a situation in the setdement document. RPMs should
ensure that appropriate language is incorporated into the AOC or CD to
reserve liability for such costs.

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                                                                                                 5-29
5.4.E
Additional
       Work
Under the AOC or CD, PRPs agree to complete the RI/FS, including the
tasks required under eidier the original work plan or a subsequent or
modified work plan. This might include determinations and evaluations of
conditions that are unknown at the time of execution of the agreement.
Modifications of the original RI/FS work plan are frequently required as
field work progresses. Work not explicitly covered in the initial work plan is
often required and therefore provided for in the order. This work is usually
identified during the RI and is driven by the need for further information in
a specific area.  In general, the agreement should provide for fine-tuning of
the RI or the investigation of an area previously unidentified.  As it becomes
clear what additional work is necessary, EPA will notify the PRPs of the
work to be performed and determine a schedule for completion of the work.
EPA must ensure that the clauses for modifications of the work plan  are
included in the agreement so that the PRPs will carry out the modifications
as the need for them is identified.  To facilitate  negotiation on these points,
EPA may consider one or more of the following provisions in the agreement
for addressing such situations:

  •   Defining the limits of additional work requirements.
  •   Specifying the dispute resolution process for modified work plans
      and additional work requirements (this is particularly difficult if the
      state is involved).
  •   Defining the applicability of stipulated penalties to any additional
      work that the PRPs agree to undertake.
The order may not provide that there will not be an investigation of poten-
tial problem areas.

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 5-30    RI/FS Negotiations/Settlement
5.5                           Activities Checklist
                               RPMs should use this activities checklist as a guide when involved in RI/FS
                               negotiations. It is not intended to provide an exhaustive list of procedures,
                               nor is it meant to be a chronological list of tasks. Reportable data should be
                               entered into CERCLIS  3/WasteLAN throughout the negotiation process.
                               1)	    Decision to start the RI/FS.
                                           a)	    Is the RI/FS start planned in SCAP?
                                           b)	   Initiate intergovernmental review process.
                               2)	    Form Case Team.
                                           a)	    Review PRP search and identify follow-up work.
                                           b)	   Begin developing negotiation plan.
                               3)	    Information exchange/general notice.
                                           a)	    Issue information request letters.
                                           b)	   Issue GNLs.
                                           c)	    Encourage formation of PRP steering committee.
                                           d)	   Complete follow-up work identified during PRP
                                                      search review.
                                           e)	    Notify state and natural resource trustees of
                                                      negotiations.
                               4)	    Preliminary Scoping.
                                           a)	    Develop site objectives.
                                           b)	   Develop site management strategy.
                               5)	    Negotiation Preparation.
                                           a)	    Develop SOW.
                                           b)	    Develop draft AO.
                               6)	    Formal Negotiations.
                                           a)	    Issue SNLs.
                                           b)	    Evaluate GFO.
                                           c)	    Request negotiation extension, if appropriate.
                               7)	    Conclude negotiations.
                                           a)	    Prepare AO for signature.
                                           b)	    Initiate Fund-financed activity, if appropriate.

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                                                                                                5-31
Appendix:  RI/FS Negotiation Plan

                                1)	    Schedule and Staffing Requirements.
                                           a)	    Provide a schedule for completing the negotia-
                                                      tions, including activities, staff, and contractor
                                                      support.
                                           b)	    Describe coordination widi state and odier
                                                      government offices.
                                2)	    Negotiation Objectives.
                                          •a)	    Develop initial and bottom-line negotiation
                                                      positions.
                                           b)	    Assess the desirability of a PRP-lead RI/FS relative
                                                      to site and PRP history to date.
                                           c)	    Identify potential for alternative settlements,
                                                      including mixed funding, de minimis, "de
                                                      micromis," or partial setdements.
                                3)	    Costs Incurred and Cost Recovery Plan.
                                           a)	    Summarize costs incurred to date and estimate
                                                      future response costs at die site.
                                           b)	    Develop negotiation strategy for cost recovery,
                                                      including the degree of compromise available on
                                                      past and oversight costs and die linkage between
                                                      recovery of past and oversight costs and PRP
                                                      performance.
                                           c)	    Describe the methods used to document costs for
                                                      die site and identify sources for cost documenta-
                                                      tion requests.
                                           d)	    Assess timing of demand, considering SOL, etc.
                                4)	    Remedy Selection Process.
                                           a)	    Discuss die methodology used in selecting a site
                                                      remedy (identifying participants in RI/FS review;
                                                      ROD preparation; PRP and public participation
                                                      in the process; and compilation,  review, updating,
                                                      and certification of die AR).
                                           b)	    Indicate how remedy selection affects the RD/RA
                                                      negotiation process.
                                5)	    Criteria For GFO. Include PRPs" willingness to conduct or
                                           finance site cleanup activities and reimburse EPA for oversight
                                           activities, response to EPA's SOW, demonstration of PRP
                                           capabilities, etc.

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5-32     RI/FS Negotiations/Settlement
                              6)	    Enforcement Prerequisites.
                                          a)	    Discuss the progress made in identifying PRPs and
                                                     dieir willingness to cooperate with the govern-
                                                     ment.
                                          b)	    Assess enforcement potential including determina-
                                                     tion of imminent and substantial endangerment,
                                                     strength of evidence/liability, financial viability of
                                                     PRPs, etc.
                                          c)	    Assess use of enforcement tools including special
                                                     notice, unilateral actions, actions against recalci-
                                                     trants, etc.
                              7)	    Technical Requirements for PRP Performance.
                                          a)	    Develop SOW or work plan.
                                          b)	    Describe key items required to conduct PRP
                                                     oversight.
                                          c)	    Assess the site access situation.
                              8)	    Draft AO or CD as appropriate.

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6. RI/FS Implementation

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                                                                            6-i
                Chapter 6  RI/FS Implementation


6.1   Description of Activity	1

      6.1.A   Introduction	1
      6.1.B   RI/FS Overview	2
      6.1 .C   Phases of RI/FS Activity	2
              6.1.C.1   Pre-RI/FS Negotiation Scoping	2
              6.1.C.2   Post-AOC Scoping	;	3
              6.1.C.3   Site Characterization	3
              6.1.C.4   Baseline Risk Assessment	3
              6.1.C.5   Treatability Investigations	5
              6.1.C.6   Development and Screening of Alternatives	5
              6.1.C.7   Detailed Analysis of Alternatives	5
      6.1.D   Oversight Objectives	6
      6.1.E   Roles and Responsibilities	8
              6.1.E.1   Remedial Project Manager	8
              6.1.E.2   Oversight Assistant	10
              6.1.E.3   Regional Attorney	11
              6.1.E.4   Natural Resource Trustees	12
              6.1.E.5   Agency for Toxic Substances and Disease Registry	12
      6.1.F   Community Involvement	12
6.2   Procedures and Interactions	19

      6.2.A   Project Scoping	19
              6.2.A.1   Pre-RI/FS Negotiation Scoping	19
              6.2.A.2   Scoping After Agreement	20
              6.2.A.3   Work Plan	21
                      6.2.A.3.1   Sampling and Analysis Plan	21
                      6.2.A.3.2   Health and Safety Plan	22
      6.2.B   Site Characterization	22
      6.2.C   Risk Assessment	26
      6.2.D   Treatability Investigations	28
      6.2.E   Development and Screening of Alternatives	29
      6.2.F   Detailed Analysis of Alternatives	31
6.3   Planning and Reporting Requirements	33

6.4   Potential  Problems/Resolutions	36

      6.4.A   Dispute Resolution	36
      6.4.B   Corrective Measures	36
6.5   Activities Checklist	38

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6-ii     RI/FS Implementation

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                                                                                             6-1
                   Chapter 6  RI/FS Implementation

6.1                          Description of Activity

6.1 .A   Introduction    This chapter focuses on the Remedial Project Manager's (RPM's) role in
                              overseeing the implementation of a Potentially Responsible Party (PRP)-
                              conducted Remedial Investigation and Feasibility Study (RI/FS). To put
                              the oversight responsibilities in context, a summary of the RI/FS process is
                              also provided.
                              A PRP-conducted RI/FS may be ordered unilaterally under section 106 of
                              the Comprehensive Environmental Response, Compensation, and Liability
                              Act (CERCLA), but is usually authorized and governed by an Administra-
                              tive Order on Consent (AOC) under sections 104 and 122. The terms and
                              conditions governing RI/FS activities may be specified in a Consent Decree
                              (CD), but an AOC is die preferred setdement document.
                              The purpose of oversight is to ensure that an RI/FS prepared by a PRP is
                              functionally equivalent to die RI/FS that EPA would have prepared if die
                              site were Fund-lead. The RI/FS must comply widi CERCLA, die National
                              Contingency Plan (NCP), Agency guidance, and all settlement agreements
                              or orders.
                              RPM management of die RI/FS begins in preliminary scoping before a
                              Special Notice Letter (SNL) or General Notice Letter (GNL) has been sent
                              to die PRP.  Actual PRP implementation of the RI/FS begins after die AOC
                              is signed during scoping. The process is complete once die Agency con-
                              ducts a closeout meeting, approves the final RI/FS report as submitted by
                              die PRPs or as amended by the Agency, and issues the Record of Decision
                              (ROD).
                              RPMs have a wide range of discretion in die type and amount of oversight
                              they conduct at PRP-lead sites. The appropriate level of oversight will
                              depend on numerous considerations including, but not limited to, PRP
                              performance, site complexity, degree of risk, community involvement, and
                              technologies used. RPMs are responsible for  managing oversight in a cost-
                              effective  manner diat ensures diat selected remedies will be effective and
                              protective of human healdi and the environment. The Superfund Adminis-
                              trative Reform on PRP oversight affirms RPMs' responsibility to strive to
                              work cooperatively with setding PRPs to maximize die efficiency of site
                              work and minimize die cost of oversight.
                              References
                              Office of Site Remediation Enforcement (OSRE), "Superfund Reforms
                              Annual Report FY1997."
                              Office of Solid Waste and Emergency Response (OSWER) Directive
                              9835.l(c), "Guidance on Oversight of Potentially Responsible Party
                              Remedial Investigations and Feasibility Studies," Volume 1 (July 7, 1991).

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  6-2     RIIFS Implementation
6.1.B
           RI/FS
     Overview
6.1.C
6.1.C.I
Phases of RI/
   FS Activity

       Pre-RI/FS
    Negotiation
        Scoping
OSWER Directive 9835. l(d), "Guidance on Oversight of Potentially
Responsible Party Remedial Investigations and Feasibility Studies," Volume
2 (July 7,1991).
OSWER Directive 9355-3-01, "Guidance for Conducting Remedial
Investigations and Feasibility Studies Under CERCLA" Interim Final
(October 1988).
In general, the RI/FS is an investigation designed to characterize a site,
assess the nature and extent of the contamination, evaluate the potential risk
to human health and the environment, and develop and evaluate potential
remedial alternatives. An RI/FS generally serves two primary purposes:

   •   Provides  information to assess the risks posed to public health and
      the environment by the site.
   •   Presents and evaluates a range of remedial alternatives (treatment,
      engineering controls, institutional controls, or a combination of
      these, plus a no-action alternative)  based on specified site criteria (for
      source control actions, see section 300.430(e)(3) of the National
      Contingency Plan (NCP)).
The process is composed of the RI, which is the actual field data collection
and risk assessment process (corresponding to the first objective), and the
FS, which develops and evaluates remedial alternatives. The RI and FS
include iterative activities and will overlap in timing. Data collected in the
RI influences the development of remedial alternatives in the FS, which
may in turn affect the data needs and the scope of treatability studies. The
distinction between the RI and FS phases  is made to emphasize the focus of
the studies.
The specific tasks required to perform an RI/FS vary from site to site, and
are phased in accordance with a site's complexity and the amount of avail-
able information.  A phased RI/FS process facilitates early identification of
data collection requirements.  These requirements are intended to character-
ize the site effectively by describing contaminant concentration, fate and
transport, and exposure pathways so that sufficient information is available
to determine risk and to evaluate and compare remedial alternatives.
The RI/FS is an enforcement document as well as a technical one; it defines
the universe of PRPs and develops evidence of each PRP's liability by
documenting the presence and sources of contaminants at the site. Infor-
mation gathered during the RI can advance the PRP search, especially at
sites where contaminants or sources are not yet well defined. Accordingly,
the RPM should coordinate RI/FS and PRP search activities.

Generally, there  are seven major phases of RI/FS activity.  Each phase is
briefly summarized below and graphically depicted in Exhibit 6-1. The
oversight guidance referred to above has a  chapter on each phase.

Pre-RI/FS scoping should begin several months before an SNL or GNL for
an RI/FS has been sent out to the PRP, and is generally completed when the
RPM  does the following:

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                                                                                                   6-3
6.1. C.2
   Post-AOC
     Scoping
6.1.C.3               Site
        Characterization
6.1.C.4
     Baseline
          Risk
Assessment
   •   Obtains a general understanding of the site using the existing
       information and determines, generally, the data needed to make a
       remedy selection decision.
   •   In some Regions, utilizes a Technical Support Team (TST) to assist
       on the RI/FS and in executing die tasks of future PRP oversight.
   •   Visits the site to identify die conditions of die site, effects of con-
       taminants, and the potential areas of concern.
   •   Generates a preliminary site-specific Statement of Work (SOW) and
       draft AOC.
Pre-RI/FS negotiation scoping is often die initial task performed internally
by die RPM, frequendy with die help of die support contractor.  Generally,
during this preliminary planning phase prior to negotiations between EPA
and die PRPs, EPA develops a site-specific general plan to identify potential
sources of contamination, padiways, and receptors.  The Agency dien
establishes site-specific objectives of die RI/FS and a strategy for die general
management of die site. The preliminary scoping effort should utilize a
TST to ensure that die objectives of die RI/FS are as clear as possible, there
is sufficient understanding of die desired work to negotiate an SOW, and
resource needs can be determined.

Post-AOC  scoping is the activity planning and project plan development
phase of die RI/FS. It occurs after negotiations are completed and an AOC,
including an SOW, has been signed by EPA and die PRP. During diis
phase, the RPM (widi die help, as appropriate, of an oversight assistant),
members of die TST, and the PRP refine the site conceptual model and die
preliminary site objectives and data needs diat were developed in die pre-
RI/FS negotiation scoping.  This information is used to assist die PRP in
developing project plans diat are subject to EPA's review, comment, and
approval. Many of die activities begun during the scoping process (i.e.,
preliminary risk assessment, determination of need for treatability studies,
identification of Applicable or Relevant and Appropriate Requirements
(ARARs)) are continued and refined as site work progresses and new
information is obtained.
Site characterization involves die collection and analysis of field data to
determine die physical site characteristics, sources of contamination, and
nature and extent of contamination. Data collected during site characteriza-
tion also contributes to odier analyses, including EPA's baseline risk assess-
ment,- treatability investigations, and die natural resource trustee survey.
Thorough and accurate site characterization assures  diat die FS can be
completed  and conducted widiout gadiering additional information.

The purpose of die baseline risk assessment is to characterize die current
and future  risk diat die site poses to human health and die environment.
The results of die baseline risk assessment may indicate diat die site poses
substantial, little,  or no threat, and that substantial,  limited, or no further
response activity is required. (The NCP, section 300.430(e)(2)(i)(A)(2)
defines the acceptable exposure levels for known and suspected carcinogens

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                                                                     REMEDIAL INVESTIGATION
 FROM:

 • Preliminary Site
   Assessment
 • Site Inspection
      PRE-RI/FS
NEGOTIATION SCOPING
  Obtain General
  Understanding of the
  Site
  Utilize Technical
  Support Team
  Visit Site to Identify
  Potential Areas of
  Concern
  Generate Statement
  of Work
  Generate AOC
   SCOPING
  OF THE RI/FS
Review Existing
Data
Identify Preliminary
Project/Operable
Unit, Likely
Scenarios and
Remedial Action
Objectives
Initiate Federal/State
ARARs Identification
Prepare Project
Plans
                                                      SITE CHARACTERIZATION
                           Conduct Field Investigation
                           Define Nature and Extent of
                           Contamination (Waste
                           Types, Concentrations,
                           Distributions)
                           Identify Federal/State
                           Chemical- and
                           Location-Specific ARARs
                                                      BASELINE RISK ASSESSMENT
                                                        (EPA ONLY, FOR ALL AOCs
                                                         SIGNED AFTER 6/21/90)
                                  Collect and Evaluate Data
                                  Perfom Exposure
                                  Assessment
                                  Perform Toxicity
                                  Assessment
                                  Characterize Risk
                                                                   TREATABILITY
                                                                  INVESTIGATIONS
                                                                                                               •  Perform Literature Survey,
                                                                                                                  Bench, or Pilot Treatability
                                                                                                                  Tests (As Necessary)
                                                                   f
                                                                    a.
                   FEASIBILITY STUDY
DEVELOPMENT AND SCREENING
      OF ALTERNATIVES
                                                    Develop Preliminary Remediation
                                                    Goals
                                                    Identify Federal/State
                                                    Action-Specific ARARs
                                                    Identify Potential Treatment
                                                    Technologies, Containment/
                                                    Disposal Requirements for
                                                    Untreated Waste
                                                    Screen Technologies (If Necessary)
                                                    Assemble Technologies into
                                                    Alternatives
DETAILED ANALYSIS
 OF ALTERNATIVES
                                                           Modify Preliminary Remediation
                                                           Goals
                                                           Further Refine Alternatives (As
                                                           Necessary)
                                                           Analyze Alternatives Against the
                                                           Nine Criteria
                                                           Compare Alternatives Against
                                                           Each Other
                                                                       TO:
                                                                         Remedy Selection
                                                                         Record of Decision
                                                                         Remedial Design
                                                                         Remedial Action

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                                                                                                  6-5
 6.1. C.5
   Treatability
Investigations
6.1. C.6    Development
           and Screening
          of Alternatives
6.1. C.7
       Detailed
    Analysis of
  Alternatives
as those representing a maximum lifetime cancer risk to an individual of
between 10"4 and 10"*.)' If the baseline risk assessment indicates that action
is necessary, remediation goals for each contaminant are established as
criteria in evaluating how each viable alternative will address the risk(s).
PRPs may conduct risk assessments at most sites where they are performing
the RI/FS, and regions are no longer required to consult Headquarters
before permitting them to do so. See Chapter 5, RI/FS Negotiations/
Settlement ("Risk Assessments") and "Risk Assessment" below.

Treatability studies, if needed, are conducted during the RI and should
provide die data needed to evaluate one or more treatment technologies
during the development, screening, and detailed analysis in the FS. RPMs
should encourage PRPs to evaluate the need for treatability studies as early
in the RI/FS process as possible. If Remedial Actions (RAs) involving
treatment have been identified by either EPA or die PRPs, the RPM should
determine the need to conduct treatability studies. Testing during the RI of
the most promising treatment technologies is often necessary to assess their
effectiveness.

Remedial alternatives are developed and evaluated so diat relevant informa-
tion concerning RA options can be presented to a decision-maker for final
selection. Initial development and screening based on effectiveness,
implementability, and cost should produce a range of alternatives which
address die preliminary RA goals. These alternatives must then undergo a
"detailed analysis of alternatives" for final screening (see below). If site-
specific conditions warrant adoption of a presumptive remedy, e.g., in the
case of a municipal landfill, developing a complete range of alternatives may
not be necessary. RPMs should thoroughly document die grounds for
deciding to adopt the presumptive  remedy at a particular site.

During the detailed analysis, each alternative that survives  the initial
screening is assessed against the nine evaluation criteria set forth in NCP
section 300.430(e)(9)(iii). The PRPs should present the results of this
assessment in a form diat allows die RPM to make reasonable comparisons
among alternatives.  By making these comparisons, the RPM can identify
trade-offs among the various alternatives. See Chapter 7, Selection of
Remedy, for die list of the nine evaluation criteria.
References
National Oil and Hazardous Substance Pollution Contingency Plan (NCP),
40 Code of Federal Regulations (CFR) section 300.430 ("Remedial Investi-
gation/Feasibility Study and Selection of Remedy") (1990).
OSWER Directive 9355.3-01, "Guidance for Conducting Remedial
Investigations and Feasibility Studies Under CERCLA" Interim Final
(October 1988). (Appendix F contains sample formats for arranging
detailed analyses of alternatives.)

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  6-6     RI/FS Implementation
6.1.D
 Oversight
Objectives
Under section 104(a)(l) of CERCLA, the Agency is responsible for provid-
ing oversight of PRP-conducted RI/FSs. The RPM has primary responsibil-
ity for managing RI/FS oversight. Others may also play an oversight role.
For example, the regional attorney may have the lead role in reviewing any
PRP claim of a. force majeure event or an inability to obtain access to the site
property. Other regional personnel may have primary responsibility for
reviewing a PRP's documentation of financial assurance.
In FY1999, the Agency announced an initiative to  ensure compliance by
PRPs with orders and settlement agreements for RI/FSs, response work, and
cost recovery. The oversight by RPMs and other regional personnel is
critical to ensuring that PRPs meet their commitments. Each region was
asked to conduct an assessment of PRP  compliance with CERCLA orders
and consent decrees and prepare an action plan for responding to every
recent instance of substantial non-compliance.
The nature of EPA's oversight activity at a particular site varies, depending
on the technical complexity of the site and feasible remedies, the nature of
the work being done,  the Agency's level of confidence in the PRP s technical
competence, and the PRPs demonstration of work quality in the course of
die project. In general, the RPM is responsible for accomplishing four
primary objectives:

   •   Verifying that die work  complies with the Administrative Order
       (AO) (or, in  some instances, die CD), SOW, work plan, and Sam-
       pling and Analysis Plan  (SAP).
   •   Verifying that the RI/FS complies with  CERCLA,  the NCP, and
       relevant Agency guidance.
   •   Verifying diat all work is performed according to generally accepted
      scientific and engineering mediods.
   •   Verifying that sufficient data of acceptable quality are being collected
      and analyzed to enable EPA to characterize die site, identify site
      risks, develop a range of alternatives, select a preferred remedial
      alternative, write die Proposed Plan and ROD, and make a finding
      of "imminent and substantial endangerment" under section 106 of
      CERCLA and/or section 7003 of die Resource Conservation and
      Recovery Act (RCRA).
Achievement of diese  objectives depends, in pan, upon die terms of die
order (or consent decree), guidance and direction provided to die PRP, and
effective project review. The instrument covering die RI/FS (i.e., AOC,
CD, or Unilateral Administrative Order (UAO)) will not  be discussed in
this chapter because it is covered in Chapter 5, RI/FS Negotiations/Setde-
ment. However, it is important to remember diat die preliminary scoping
conducted prior to negotiations, die PRP s qualifications,  and the terms of
die agreement establish a framework affecting oversight during die actual
conduct of the RI/FS.
Fostering a good working relationship widi die PRPs can have a  significant
impact on die quality, timing, and costs of projects. The RPM should

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                                                                    6-7
provide as much guidance as possible to die PRPs early in die RI/FS
process. Relevant EPA guidance documents and examples of deliverables
are appropriate materials that should be provided. The RPM should clearly
communicate guidance and expectations concerning format, technical
content, mechanisms for incorporating Agency comments, and schedule of
deliverables. The RPM should also explicidy offer, at least annually, to
discuss with setding PRPs EPA's oversight expectations for die upcoming
year and provide diem die opportunity to suggest ways to improve die
efficiency of die oversight process. Frequent meetings widi die PRPs during
die course of die RI/FS, especially when changes in work, scope, and/or
oversight occur, will facilitate PRP implementation that will satisfy Agency
criteria.
In addition to conducting oversight to ensure that PRP work and
deliverables are acceptable and in compliance, the RPM must manage
oversight in  a cost-effective manner.  Aldiough this manual identifies certain
tasks and deliverables as part of an overall oversight process, die RPM
should use discretion and flexibility in  determining to what extent, or in
what format, specific tasks or deliverables should be performed in order to
ensure that oversight is most effective and efficient.  The RPM should also
effectively manage the project to meet  the RI/FS objectives within die time
constraints of the AOC. Adhering to project schedule, helps keep overall
project oversight costs down, and expedites the ultimate cleanup of the site.
The following are examples of opportunities to minimize oversight costs, as
appropriate to die site:

   •   Eliminating duplicative state/federal reviews of documents.
   •   Eliminating interim deliverable milestones while maintaining
      accountability of die PRP to produce an acceptable product.
   •   Reducing production of documents by increasing the use of meet-
      ings,  briefings, and odier communication methods to identify issues
      early.
   •   Reducing the number of scheduled field visits to observe routine
      field activities and using occasional unannounced visits instead.
   •   Taking fewer split samples (using Contract Laboratory buy-ins,
      where available) and relying on  audits instead.
References
OSWER Directive 9200.4-15, "Reducing Federal Oversight at Superfund
Sites with  Cooperative and Capable Parties" (July 31,  1996).
OSWER Directive 9835. l(c), "Guidance on Oversight of Potentially
Responsible Party Remedial Investigations and Feasibility Studies,"
Volume 1  (July 7, 1991).
OSWER Directive 9835. l(d), "Guidance on Oversight of Potentially
Responsible Party Remedial Investigations and Feasibility Studies,"
Volume 2  (July 7, 1991).

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  6-8      RI/FS Implementation
6.1.E        Roles and
      Responsibilities
                               Following is a summary of the primary roles and responsibilities of the
                               RPM, risk assessor, oversight assistant, natural resource trustees, Agency for
                               Toxic Substances and Disease Registry (ATSDR), and local communities
                               during an RI/FS. Exhibits 6-2 through 6-6, which appear at the end of
                               section 1, summarize diese roles and responsibilities through the seven RI/
                               FS phases. The Office of Enforcement and Compliance Assurance (OECA)
                               updates  its "Roles Memo" periodically; regional personnel should refer to it
                               to find out when they need to consult with Headquarters.
                               References
                               Office of Enforcement and Compliance Assurance (OECA) Memorandum,
                               "Revisions to OECA Concurrence and Consultation Requirements for
                               CERCLA Case and Policy Areas" (September 30, 1998).
                               OECA Memorandum,  "Office of Enforcement and Compliance Assurance
                               and Regional Roles in Civil Judicial and Administrative Site Remediation
                               Enforcement Cases" (May 19, 1995).

6.1 .E.1         Remedial    The RPM has primary responsibility for overseeing all response activities.
                   Project    Prior to  the signing of the agreement between EPA and the PRP, the RPM
                 Manager    should have completed  the following tasks:

                                 •   Identify die preliminary scope of RI/FS  activity.
                                 •   Coordinate widi die state and, as appropriate, other agencies (e.g.,
                                     Department of the Interior, National Oceanic and Atmospheric
                                     Administration (NOAA), ATSDR) on scoping.
                                 •   Identify die site-specific activities and deliverables required from die
                                     PRP.
                                 •   Prepare a project schedule for die AO.
                                 •   Ensure necessary regional management review and approval of
                                     scoping decisions, activities, schedule, etc.
                                 •   Identify persons/agencies/extramural resources widi particular
                                     expertise diat will provide technical review of activities and
                                     deliverables (diese mechanisms also should be used for scoping) and
                                     agree to die scheduled time frames.
                                 •   Budget intramural and extramural resources to support die project
                                     and finalize associated paperwork.

                                 •   In consultation widi regional counsel, verify diat die planned
                                     activities will meet statutory requirements, satisfy die RI/FS objec-
                                     tives, and satisfy die provisions of relevant guidance.
                               Typically, the RPM will perform die following tasks during die RI/FS:

                                 •   Conduct scheduled and unscheduled site inspections in conjunction
                                     widi die oversight assistant.
                                 •   Monitor PRP adherence to die agreement; consult widi regional
                                     counsel.

-------
                                                                  6-9
   •   Review all PRP and oversight assistant deliverables to ensure quality
      and provide related technical comments.
   •   Obtain internal EPA input on specialized matters (e.g., risk assess-
      ment, ground water, contaminants, bedrock).
   •   Meet with PRPs periodically to communicate the Agency's require-
      ments and discuss progress, including good work, deficiencies,
      needed work, and changes in the scope of work and corresponding
      oversight. Where PRPs are not in compliance with the agreement,
      issue a letter warning PRPs to take immediate action to ensure
      compliance or be subject to assessment of stipulated or statutory
      penalties.
   •   Maintain Agency schedule for reviewing deliverables or meeting any
      other deadlines.
   •   Ensure that information is updated in the Agency's tracking system,
      the Comprehensive Environmental Response, Compensation, and
      Liability Information System 3/Waste Local Area Network
      (CERCLIS 3/WasteLAN).
   •   Ensure that any aspects of the RI/FS performed by EPA are done in a
      timely manner (e.g., EPA's risk assessment or ARAR analysis).
   •   Manage intramural and extramural resources.
   •   Maintain communication with the state throughout the RI/FS
      process with an emphasis on understanding state perspective,
      identifying ARARs, and coordinating community involvement.
   •   Coordinate intergovernmental involvement interactions.
   •   Ensure EPA management review at major stages (e.g., work plan,
      draft RI, Proposed Plan, ROD).
   •   Conduct community involvement activities with the assistance of the
      Community Involvement Coordinator (CIC).
   •   Maintain the site file, including cost recovery documentation.
   •   Establish and update periodically the Administrative Record (AR) in
      conjunction with regional counsel and the Administrative Record
      Coordinator.
   •   Finalize any supplements to die RI/FS and write die Proposed Plan
      and ROD.
   •   Ensure that bills to PRPs include appropriate documentation of
      oversight costs.
References
OSRE Memorandum, "Ensuring Potentially Responsible Party Compliance
with CERCLA Obligations" (November 3, 1998).

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  6-10    RI/FS Implementation
                               Office of Enforcement and Compliance Assurance (OECA) Memorandum,
                               "Interim Policy on Settlement of CERCLA Section 106(b)(l) Penalty
                               Claims and Section 107(c)(3) Punitive Damages Claims for Noncompliance
                               with Administrative Orders" (September 30, 1997).
                               OECA Memorandum, "Operating Principles for an Integrated Enforcement
                               and Compliance Assurance Program" (November 27, 1996).
                               OSRE Memorandum, "Transmittal of Sample Documents for Compliance
                               Monitoring" (July 1, 1996),  (See Attachment 5, "Sample Letter for Late
                               and/or Unacceptable Deliverables.").

6.1 .E.2        Oversight    The RPM may arrange for an oversight assistant to facilitate the RPM s
                Assistant    oversight of PRP-conducted RI/FS activities. The RPM should use discre-
                               tion in determining the roles and responsibilities of the oversight assistant to
                               avoid duplicating effort or incurring unnecessary costs.
                               Responsibilities that the RPM may assign to the oversight assistant include:

                                 •   Compiling and presenting existing information into a site conceptual
                                     model.
                                 •   Monitoring PRP field activities to verify performance in accordance
                                     with the agreement with the  PRPs and generally accepted scientific
                                     and engineering mediods.
                                 •   Reviewing deliverables submitted by the PRPs.
                                 •   Conducting Quality Assurance (QA) tasks. (Review and approval of
                                     Quality Assurance Project Plans (QAPPs) are usually performed by
                                     the region's QA Office.)
                                 •   Conducting die risk assessment.
                                 •   Drafting any necessary supplements to the RI/FS for Agency finaliza-
                                     tion.
                                 •   Conducting contingency planning to protect human healdi and the
                                     environment in the unexpected event of an emergency.
                                 •   Assisting in the reproduction of documents for the site file, and the
                                     AR in the regional office and at die site. (Decisions on what docu-
                                     ments to include are made by the RPM in conjunction with regional
                                     counsel.)
                                 •   Preparing and assisting in the implementation of community
                                     relations deliverables and tasks.
                                 •   Providing site-specific information to the regional Information
                                     Management Coordinator (IMC) for input into CERCLIS 3/
                                     WasteLAN.
                               Procurement of die oversight assistant's service is typically obtained dirough
                               the Superfund Technical Assistance and Response Team, Response Action
                               Contracts, and Remedial Oversight  Contracts.

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                                                                                                 6-11
                               The RPM also may seek assistance in executing his/her oversight responsi-
                               bilities from the U.S. Fish and Wildlife Service (FWS), U.S. Geological
                               Survey, Bureau of Land Management, and U.S. Army Corps of Engineers
                               (USAGE), among other agencies.
                               State agencies also often will enter into a support agency Cooperative
                               Agreement (CA) with EPA to participate in the oversight of PRP activities.
                               The RPM should work to coordinate with the recipient agency to minimize
                               duplication of effort wherever possible.  In some cases, it may be expeditious
                               and cost-effective for EPA to enter into a CA for the State agency to con-
                               duct oversight instead of EPA.
                               The oversight assistant should perform tasks in a professional and non-
                               confrontational manner. There are limitations on the oversight assistant's
                               authority. The oversight assistant should not advise or issue directions
                               regarding, or assume control over, any aspect of the RI/FS when communi-
                               cating with the PRPs. The RPM should control the amount of direct
                               communication  between the oversight assistant and the PRPs. The over-
                               sight assistant has no authority to allow deviations from the site agreement,
                               which includes the work plan, or any other project plans. Any deviations
                               must be approved by die RPM.
6.1 .E.3          Regional   ARAR identification may continue throughout the RI/FS as a better
                  Attorney   understanding is gained of site conditions, contaminants, receptors, expo-
                               sure pathways, and remedial action alternatives.  Likewise, as hypodieses are
                               tested and either confirmed or rejected, adjustments or choices as to the
                               appropriate course for further investigations and analyses may be required.
                               In coordination with the RPM and/or the support agency, the regional
                               attorney is responsible for:

                                  •   Reviewing information gathered in the course of the RI/FS to ensure
                                      that previously identified ARARs remain applicable or relevant and
                                      appropriate with reference to the eight factors set fordi in NCP
                                      section 300.400(g)(2).
                                  •   Identifying non-federal ARARs and confirming dieir applicability or
                                      relevance and appropriateness.
                                  •   Ensuring that the RI/FS is gathering the types of information
                                      required to evaluate potential ARARs.
                                  •   Determining whether ARARs are eligible for waivers under section
                                      121(d)(4)ofCERCIA
                               The regional attorney is also responsible for determining, in coordination
                               with the RPM, whether the PRPs are in compliance with die RI/FS AOC,
                               and, if not, to ensure vigorous enforcement of the stipulated penalties
                               provisions of the AOC. The regional attorney also may have the lead role in
                               reviewing PRP claims of force majsurs or inability to obtain access to site
                               property.
                               Reference
                               OSRE Memorandum, "Transmittal of Sample Documents for Compliance
                               Monitoring" (July 1, 1996).

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  6-12    RI/FS Implementation
6.1.E.4
        Natural
      Resource
       Trustees
6.1.E.5
        Agency
       for Toxic
   Substances
   and Disease
       Registry
6.1.F
 Community
Involvement
The natural resource trustees are responsible for assessing damages to
natural resources within their domain. The federal assessment begins with
Preliminary Natural Resource Surveys (PNRSs), which are typically initiated
at the beginning of the RI/FS process. These surveys, conducted by the
natural resource trustees, are designed to assist the Agency in reaching
comprehensive settlements of all federal natural resource claims under
CERCLA.
Trustees include the federal and state governments and Indian tribes.
NOAA's National Marine Fisheries Service has jurisdiction over marine and
coastal fisheries, and a shared jurisdiction over anadromous fish (e.g.,
salmon, striped bass) and catadromous species (e.g., eels). The area of their
jurisdiction, generally speaking, is the coastal states and oceanic possessions,
including the bays,  estuaries, rivers, and wetlands that are the habitats of the
species of concern.  The FWS has jurisdiction over all migratory species and
endangered and threatened species. The respective states, territorial govern-
ments, and Indian tribes should be contacted regarding other, generally
non-migratory species.  RPMs should confirm with regional management
procedures for notifying the trustees.

Under section 104(j)(6) of CERCLA, ATSDR must perform a health
assessment for all National Priorities List (NPL) sites. This assessment must
be performed widiin one year after the site is proposed for listing. The
ATSDR's health assessment is intended to determine the potential risks to
human health posed by the site.
After a site is proposed  for listing on die NPL, the RPM should send the
preliminary assessment and site inspection report to ATSDR and maintain
information exchange with  diem.  RPMs must ensure that draft and
enforcement-sensitive documents and materials released to ATSDR are
clearly marked as such. RPMs are responsible for reviewing and comment-
ing  on die draft healdi assessment provided by ATSDR.  Data collected
during RI activities  and reports generated as a result of that data collection
also should be forwarded to ATSDR.
Reference
OSWER Directive 9285.4-00, "Guidelines for Conducting ATSDR Health
Assessment Activities with the Superfund Remedial Process" (April 1987).

Communities may participate in die RI/FS process through Technical
Assistant Grants (TAGs) and Community Advisory Groups (CAGs). TAGs
provide resources to eligible communities affected by Superfund sites to
acquire independent technical assistance to help diem understand and
comment on site-related information.  More dian 185 TAGs have been
awarded since die program's inception in 1988.  CAGs are made up of
representatives widi diverse community interests and provide a public
forum for community members to present and discuss dieir needs and
concerns about die decision-making process at sites affecting diem.  Bodi
have proven to  be effective mechanisms for facilitating participation of
community members, and bodi have shown how community involvement

-------
                                                               6-13
in the decision-making process can enhance, rather than impede, the site
cleanup. The RPM is one of the main points of contact between the
Agency and the community, and should exploit opportunities to involve
them in the RI/FS process wherever possible (e.g., by reviewing and discuss-
ing SOWs).
TAGs are authorized by CERCLA section 117(e), while CAGs are a result
of Round 2 of the Superfund Administrative Reforms.  In FY1997, the
Agency issued a revised rule that simplified the TAG application and
administrative procedures, eliminating the three-year budget period,
removing a 20 percent cap on TAG administrative expenses, and interpret-
ing the Superfund Amendments and Reauthorization Act's (SARAs) "one
TAG per site" language to allow multiple, non-current grant applications.
References
OSWER Directive 9230.0-28, "Guidance for Community Advisory Groups
at Superfund Sites" (December 1995).
Community Relations in Superfund: A Handbook, EPA 540-R-92-009.
OSWER Directive 9836.0-1 A, "Community Relations During Enforce-
ment Activities and Development of the Administrative Record"
(November3,  1988).

-------
                                                                                        KEY:     |    |  ACTIVITY

                                                                                                 ^   DECISION NODE

                                                                                                 [""I   DOCUMENT
     PRP

  REMEDIAL
  RESPONSE
  ACTIVITIES
     RPM

 OVERSIGHT
 ACTIVITIES
     AND
  SCOPING
 ACTIVITIES
    STATE
   ATSDR

   HEALTH
ASSESSMENT
 ACTIVITIES
  NATURAL
  RESOURCE
  TRUSTEE
     RPM

 COMMUNITY
INVOLVEMENT
  ACTIVITIES
                                      IDENTIFY POTENTIAL TECHNOLOGIES AND FEASIBLE ALTERNATIVES
                                        DEVELOP DRAFT RI/FS PROJECT PLANS:
                                        • Work Plan
                                        • Sampling and Analysis Plan
                                          - Field Sampling Plan
                                          - Quality Assurance Project Plan
                                        • Health and Safety Plan
     PRELIMINARY PLANNING
     •  Refine conceptual Model with
        potential risks and possible remedies
     •  Evaluate need for treatability studies
     •  Preliminary Identity ARARs
   INITIAL
 PROJECT AND
  OVERSIGHT
SCOPE DEFINED
    INAO
                   REVIEW
           DRAFT RI/FS PROJECT PLANS
                   AND CIP
                           SUBMIT DATA
                        REQUIREMENTS FOR
                        HEALTH ASSESSMENT
                                     CONDUCT PRELIMINARY
                                  NATURAL RESOURCE SURVEYS
                         COLLECT COMMUNITY
                          INVOLVEMENT DATA
 DEVELOP COMMUNITY
INVOLVEMENT PLAN (CIP)
                                            RI/FS
                                            PROJECT
                                            PLANS:

                                            • Work Plan
                                            • SAP:
                                                   FSP
                                                   QAPP
                                            • Health and
                                              Safety Plan
                                                                                                                            (to
                                                                                                                         Appendix
                                                                                                                           A-2)
   RPM FINAL REVIEW AND
    APPROVAL OF RI/FS
  PROJECT PLANS AND CIP

NOTE: RPMs Review, But Do Not
Approve PRP Health and Safety
         Plans
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COMMUNITY
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-------
                                                                                                                                  KEY; d3 ACTIVITY

                                                                                                                                       V DECISION NODE
                                                                                                                                       Q
                                                                                                               DOCUMENT
     PRP

  REMEDIAL
  RESPONSE
  ACTIVITIES
     RPM

 OVERSIGHT
 ACTIVITIES
     RPM

COMMUNITY
INVOLVEMENT
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                                                                                                    TREATABILITY STUDY EVALUATION
                                                                                                             REPORT
                                                                                                J
                            • REVIEW MONTHLY PROGRESS REPORTS AND INTERIM DELIVERABLES
                            • CONDUCT MONTHLY MEETING WITH PRPs
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                                                                                                                                                           o>
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-------
                                                                                                                                         KEY; I   I ACTIVITY

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 COMMUNITY
 INVOLVEMENT
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    ASSEMBLE RANGE
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ARARs
1

                                                                                                                                 MODIFY SCREENING DOCUMENT/
                                                                                                                                 ALTERNATIVES ARRAY SUMMARY
                                                                                                                                   WITH ARARs TO MEET EPA's
                                                                                                                                   COMMENTS. SEND TO STATE
                                                                                                                                       AND TRUSTEES
                              • REVIEW MONTHLY PROGRESS REPORTS AND INTERIM
                                DELIVERABLES (II .Necessary)

                              • CONDUCT MONTKLY MEETINGS WITH PRPt
   RPMs MAY EXERCISE DISCRETION
   AND ALLOW PHPs TO PARTICIPATE
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                       DEVELOP FACT SHEET
                          ON PROGRESS
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-------
                                                                                                                          KEY: CZI ACTIVITY

                                                                                                                              V DECISION NODE
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      RPM

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  ACTIVITIES*
      RPM

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 INVOLVEMENT
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                           MEET AND PROVIDE INPUT
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                                                                                               6-19
6.2
6.2.A
6.2.A.1
     Project
   Scoping
   Pre-RI/FS
Negotiation
    Scoping
Procedures and Interactions

This section summarizes the process and deliverables associated with each
phase of RI/FS activity.  The phases of this process are not necessarily
discrete or sequential. Work from different phases may be conducted
concurrently, and the RPM may change the schedule for and format of
deliverables based on site needs.

Scoping is the planning phase of the RI/FS process.  Project scoping for a
site where it is anticipated that die PRP will conduct portions of die RI/FS
occurs in two phases: 1) before and during RI/FS negotiations, and 2) after
die PRP has signed an agreement with EPA. RPM responsibilities during
bodi phases also are discussed in section 1 of diis chapter.

Prior to die negotiations, die RPM begins defining die technical and
administrative scope of die pending RI/FS and die requisite oversight.
It is helpful for die  RPM widi die assistance of die support contractor to
sketch out a rough conceptual model of die site, including:

   •  Source areas.
   •  Contaminants.
   •  Possible extent of migration.
   •  Media of concern.
   •  Padiways.
   •  Possible receptors (exposure padiways).
   •  Possible risks.
   •  Possible acceptable contaminant ranges.
   •  Possible remedies.
See Chapter 5, RI/FS Negotiations/Settlement for information on fordi-
coming risk assessment guidance.
The RPM should decide what information is required for die site concep-
tual model. Specific data needs should dien be defined and die model
SOW modified to ensure dial necessary data are gathered.  In particular, die
site-specific objectives and general management strategy should be added to
the model SOW.
It is particularly important diat die SOW be as specific as possible about
what is needed in die work plan, but it should not be so specific diat it
limits generally required work. The RPM should keep in mind diat Techni-
cal Assistance Committees, which are internal EPA resources, or TSTs and
contractor support  can and should be used during preliminary scoping.
Preliminary information diat is used to develop die technical scope includes
1) existing technical information, and 2) determination of decision points
in die process and corresponding data needs.

-------
  6-20    Rf/FS Implementation
6.2.A.2
    Scoping
        After
Agreement
Administratively, the RPM should: 1) initiate and maintain information
exchange with other federal and state agencies; 2) identify enforcement
concerns and provide technical information to regional counsel for use in
planning and conducting negotiations; (3) plan for intramural and extramu-
ral resources and initiate associated paperwork; and (4) procure an oversight
assistant, if needed, before the order is finalized to prevent unnecessary
delays.
At this point, the RPM should begin identifying oversight and review
functions and schedules, coordinating with the state to determine the extent
of its oversight participation, and assessing the PRP's ability to conduct
portions of the RI/FS as demonstrated in the Good Faith Offer.  This
oversight activity is discussed in Chapter 5, RI/FS Negotiations/Settlement.
Regular meetings with the PRPs should be scheduled to begin after an
agreement has been reached.

Once the AOC has been signed by EPA and the PRP, the RPM should:

  •    Conduct a project initiation meeting and site visit with the PRP and,
       if procured,  the oversight assistant.
  •    Coordinate interagency and intergovernmental responsibilities and
       support functions (e.g., natural resource trustees, USAGE, etc.), and
       include die concerns of each in site-specific project plans.
  •    Review and approve, as appropriate, PRP project plans.
  •    Develop and begin implementing the Community Involvement Plan
       in conjunction widi the CIC. Any PRP participation in community
       relations activities is controlled by EPA.
The  required deliverables for the scoping process include a work plan, SAP,
and Health and Safety Plan (HASP).
It is very important to communicate widi the PRPs at the beginning of the
process to enhance prospects for quality work. At a meeting, the RPM
should ensure that die PRPs understand the applicable guidance and diat
they understand what EPA expects of them in the RI/FS.  The RPM also
should clarify EPA's expectations for conducting oversight and provide the
PRPs widi opportunities to suggest alternative oversight approaches to
maximize the efficiency of oversight while ensuring diat work is of high
quality.
The  RPM is responsible for coordinating review of project plans and for
final approval of diose plans.  PRP-conducted RI/FS activity cannot be
initiated until die RPM approves the plans. The RPM may conditionally
approve plans for initial phases of die RI/FS so diat work on diem can
begin before the entire plan is approved.  Conditions to the approval must
be specific. Conditional approvals should be reviewed by the section/unit
chief. The RPM also has discretion to merge several documents, such as die
work plan, SAP, and die HASP, into one deliverable, if appropriate, to
improve the efficiency of labor, facilitate the schedule, or control die costs.
The  RPM will make this decision  on a case-specific basis, but should be

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                                                                                                 6-21
6.2.A.3
Work Plan
6.2.A.3.1
  Sampling
        and
   Analysis
        Plan
alert to opportunities to streamline the work and oversight process without
sacrificing quality.
Due to the uncertainties associated with sites, and as additional information
is obtained, it may be necessary to modify or supplement die initial plans.
The RPM should review and approve any modifications in writing.
References
OSWER Directive 9355-3-01FS1, "Getting Ready: Scoping the RI/FS"
(November 1989). (Fund-lead)
OSWER Directive 9355-3-01, "Guidance for Conducting Remedial
Investigations and Feasibility Studies Under CERCLA" Interim Final
(October 1988).
The PRPs' work plan expands die tasks of the SOW by detailing the work
to be done  in conducting die RI/FS.
The draft work plan is generally submitted by PRPs after die AOC is
signed.  It must direct, in detail, die activities and deliverables specified in
die SOW, including a schedule for all activities.  Togedier widi the SAP, it
ensures diat PRPs gadier all information and do die analyses needed in an
RI/FS and for a ROD.  Thus, it is important for the work plan to be
carefully reviewed by die RPM. The draft work plan also may be reviewed
by die natural resource trustees and odier divisions (programs) widiin the
regions, including die Quality Assurance Office (QAO).  The aspects of die
RI/FS diat  must be delineated in die work plan are described in die model
SOW, which is discussed in Chapter 5, RI/FS Negotiations/Settlement, and
also in diis  chapter.  Once a work plan has been incorporated by reference
in die AOC, die RPM must ensure that die plan is available for public
review as part of die AR.

The SAP details die procedures diat die PRPs plan to implement for
conducting all field activities.  It has two components, a Field Sampling
Plan (FSP)  and a Quality Assurance Project Plan (QAPP). The FSP
provides a detailed description of all RI/FS sampling and analytical activi-
ties. In some regions, it may be part of die work plan. The QAPP describes
die Quality Assurance (QA) and Quality Control (QC) protocols necessary
to achieve required Data Quality Objectives (DQOs).  DQOs define die
type and quality of sampling and  analytical data required to make die
various RI/FS decisions. For example, DQOs are established to ensure diat
the analyses are performed widi sufficient detection limits to identify
relatively low but significant concentrations of contaminants. A pre-QAPP
meeting is held between PRPs, PRP contractors and laboratory representa-
tives, die RPM, QAO representatives, and die oversight assistant. The
RPM should review die QAPP and FSP widi the assistance of regional
QAO personnel to determine whedier die PRP plans can achieve die
DQOs.
The Agency anticipates diat it will finalize EPA Requirements for Quality
Assurance Project Plans for Environmental  Data Operations (EPA QA/R-5)
and Data Quality Objectives for Hazardous Waste Site Investigations

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  6-22    RI/FS Implementation
6.2.A.3.2
 Health and
Safety Plan
6.2.B               Site
     Characterization
(G-4HW) in FY1999. Consult your regional or Superfund QA manager
for supplemental regional guidance on DQOs and QAPPs.
References
"EPA Guidance for Quality Assurance Project Plans (EPA QA/G-5),"
EPA600-R-98-018.
"Guidance for the Data Quality Objectives Process (EPA QA/G-4),"
EPA 600-R-96-055.
OSWER Directive 9355-07B, "Data Quality Objectives for Remedial
Response Activities" (March 1987).

The HASP describes any special training, supervision, procedures, and
protective equipment needed by field personnel. EPA reviews the plan to
ensure that it provides for the protection of human health and the environ-
ment, but does not "approve" the PRP's HASP.  PRPs must comply with
Occupational Safety and Health Administration requirements.
Exhibits 6-7 and 6-8 portray RI/FS oversight activities during the scoping
phase and the odier RI/FS phases.
Reference
29 CFR 1910.120 ("Hazardous Waste Operations and Emergency Re-
sponse") (Occupational Safety and Health Administration Regulations).

The objectives of this phase are to define the site characteristics,  the
source(s) of contamination, and the nature and extent of contamination,
and to determine possible fate and transport of contaminants as  preparation
for determining site risks. The major components are collection of field
data, analyses of data, and preparation  of reports.
As an approach, RPMs may suggest that the PRPs direct their initial field
data collection effort to developing a general understanding of the site.
Once this understanding is achieved, RPMs should confirm diat the PRPs
focus more extensive efforts on filling gaps in the data.  Implementing a
phased sampling approach may ensure the efficient collection of data.
RPMs must have the PRPs establish the quality of old data through reliable
means.  DQOs apply to all data, old and new. The required technical
memorandum documenting the need for additional data should include the
analysis and meaning of old data as the basis for establishing what addi-
tional data are needed. It is imperative  that the site characteristics, including
physiography, geology, hydrogeology, and hydrology, be defined. This
foundation is critical to subsequent definition of potential transport path-
ways. In addition, data gathered during site characterization are used in
treatability analyses and analyses of remedial alternatives.

Determination of the location of each source is often difficult, particularly
at old sites. Aerial photographs from historical files and interviews often
provide helpful insights.  For each site, data must be gathered at  various
depths and lateral locations so that volumes and concentration gradients of

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                                                                                                                                                                     Q
                                                                                                                                                                         ACTIVITY

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                                                                                                                                                                                                  00
                                                                                                                                                                       Q
                                                                                                                                                                           ACTIVITY

                                                                                                                                                                           DOCUMENT
     PRP

ACTIVITIES
     EPA

OVERSIGHT
                                                 ITroatabllllv To*t)ng Candidate Tochnologles/Data Need*:
                                                 Dot ermine Nood; Work Plan; SAP; Work; Roport
                                                                                         Oavelop/Refine/Scroon
                                                                                          Alternatives; Prepare
                                                                                       Document with Alternatives
                                                                                           Array and ARARs
 I
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 30


 3


 
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                                                                   6-25
contaminants may be plotted on a three-dimensional grid. In addition to
producing a baseline picture showing principal threat areas and volumes,
this methodology will contribute important information about contaminant
mobility pathways and velocity and about treatability testing requirements.
The RPM should ensure that the PRP provides notice of the planned dates
for field activities at least two weeks in advance. The QAPP/FSP must be
approved before gathering of environmental data begins.  During the PRP
conduct of field activities, the RPM should ensure that the PRPs collect
sufficient information at the proper locations and follow OA/QC proce-
dures. The RPM may rely on the oversight assistant to keep accurate
records of site activities, if appropriate.  This can be accomplished, in part,
by having die PRP and the oversight assistant use:

   •   Field activity reports.
   •   Field logbooks.
   •   Photographic logs.
Field activity reports may include a checklist to remind the oversight
assistant of die critical elements of die field activities and as a convenient
means of documenting field activities. Field activity reports should be used
in conjunction with the SAP. By combining diese two reporting tools, die
oversight assistant will have a valuable means of keeping track of site-specific
planned activities. These combined reports may also enable the oversight
assistant to keep an accurate record of site activities that are not conducted
according to plans.
Oversight assistants usually maintain activity log books or field log books.
A log book generally includes records of pertinent conversations with either
die PRP or its contractor, a list of potential or actual problems encountered
at the site, an explanation for changes to die work plan, a record of any field
activities not included in die field activity reports, and a description of daily
activities and contacts widi die public or press.
A photographic or video record of field activities also may be a useful tool
for documenting field work for PRPs as well as die oversight assistant. If
one of diese tools is used, die oversight assistant should keep detailed
information about die location, date, time, and subject matter of each
photograph or tape in die field log.
If sampling data is not received widiin a mondi of analysis by die PRPs'
laboratories, the RPM should contact the PRPs to determine die reason for
die delay.
In addition to the progress meetings, reports, technical memoranda, and
data summaries, the required deliverables for die site characterization
process include the preliminary site characterization summary and, once die
baseline risk assessment is complete, the draft RJ report.
The preliminary summary is prepared after die results from sampling are
available.  It provides information on contamination at various locations

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  6-26    RI/FS Implementation
                                and depths, including contaminants of concern and associated concentra-
                                tions.  It may include fate and transport projections.  It also provides
                                information for the risk assessment and a reference for the RPMs to ensure
                                that appropriate alternatives are being developed by the PRPs. The sum-
                                mary may be used to provide ATSDR with data to use in preparing health
                                assessments. RPMs should ensure that the data satisfy QA/QC require-
                                ments and are accurately displayed.
                                The draft RI report documents data collection and analysis, and supports
                                theFS.
                                References
                                OSWER Directive 9835. l(c), "Guidance on Oversight of Potentially
                                Responsible Party Remedial Investigations and Feasibility Studies,"
                                Volume 1 (July 7, 1991).
                                OSWER Directive 9835.l(d), "Guidance on Oversight of Potentially
                                Responsible Party Remedial Investigations and Feasibility Studies,"
                                Volume 2 (July 7, 1991). (Appendix provides examples of field activity
                                reports.)
                                OSWER Directive 9335.0-14, "A Compendium of Superfund Field
                                Operation Methods" (September 1987).
6.2.C               Risk    A baseline risk assessment, which may be referred to as an Endangerment
                                Assessment (EA),  is conducted during the  RI. The region will use the
                                11-'. i                     -11-11       rT-.ii
                                baseline risk assessment to determine whether, in the absence or an RA, a
                                particular site poses a substantial danger to public health and welfare, and
                                the environment.  The baseline risk assessment process is cumulative in
                                nature; the components of the assessment build on one another. There are
                                two separate inquiries: human health and die environment. The human
                                health evaluation  should address all exposure pathways for each medium of
                                concern, toxicity values for carcinogenic and non-carcinogenic effects, and
                                die cancer risk and/or hazard index for each chemical of concern.  The
                                environmental evaluation addresses any critical habitats or endangered
                                species affected by site contamination.
                                Depending on the terms of die order or decree, the region may provide
                                comments on drafts of an intermediate deliverable in diose cases where
                                orders require major intermediate deliverables for the risk assessment. If,
                                after providing comments as required and pursuing other recourses as may
                                be required under die order or decree, regional management finds that die
                                intermediate deliverable from die PRP remains unacceptable, die region
                                may decide at diat point to prepare its own risk assessment or to pursue
                                stipulated penalties if allowed by die AOC or CD. These procedures will
                                allow EPA to avoid numerous reviews throughout die development of die
                                risk assessment, which can be cosdy in time and resources.
                                If die region determines diat die final PRP risk assessment is fully accept-
                                able, die region should document diis finding in writing and place die
                                written certification in die AR file.  Such an explicit certification by EPA of

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                                                                6-27
a PRP risk assessment should help assure the public that EPA is providing
necessary oversight. If the risk assessment delivered by the PRP is unaccept-
able, even after EPA has provided comments or after the parties have
exhausted other procedural requirements (such as dispute resolution) as may
be provided for in the order or decree, EPA will undertake its own risk
assessment or pursue stipulated penalties if allowed by the AOC or CD.  If
EPA undertakes the risk assessment because the PRP s is unacceptable, the
Agency may use any part of the PRP's work deemed to be of high quality.
The Risk Assessment Guidance for Superfund (RAGS) Human Health
Evaluation Manual Pan D: Standardized Planning, Reporting, and Review
of Superfund  Risk Assessments establishes a process for using spreadsheet
software to  develop analytical schemes for risk assessments at Fund-lead,
PRP-lead, Federal Facilities, and RCRA Corrective Action sites. It enables
RPMs and risk assessors to scope and plan risk assessments, formulate
problems, and develop conceptual site models as  part of a continuing
relationship that also expands stakeholder involvement. Tables generated by
the software applications serve  as the basis for interim deliverables for risk
assessment contractors and form part of the Comprehensive Environmental
Response, Compensation, and Liability Information System 3/Waste Local
Area Network (CERCLIS 3/WasteLAN) data base.
The Agency is currendy drafting supplements to  RAGS covering involve-
ment of community stakeholders, land use considerations, establishing
background for risk assessment, using uncertainty/probabilistic analysis, and
standardizing approaches for lead-contaminated sites. The supplement on
community involvement should be finalized during the second quarter of
FY1999 and die others by the end of calendar 1999. The Agency is also
drafting a concise, user-friendly reference document on practices that can
help to increase public participation in risk assessments. This document
should be finalized during the second quarter of FY1999.  Once available,
these resources should guide implementation  of the RI/FS.
References
Federal Facilities Restoration and Reuse Office Memorandum, "Use of Risk-
Based Methodologies in Setting Priorities for  Cleanup Actions at Federal
Facilities" (May 21, 1998).
OSWER Directive 9285.7-0ID, Risk Assessment Guidance for Superfund
(RAGS) Human Health Evaluation Manual Part D: Standardized Planning,
Reporting,  and Review of Superfund Risk Assessments (January 1998).
OSWER Directive 9355.0-69, "Rules of Thumb for Superfund Remedy
Selection" (August 1997).
OSWER Directive 9355-0-30, "Role of the Baseline Risk Assessment in
Superfund Remedy Selection"  (April 22, 1991).
OSWER Directive 9285.7-01 A, "Risk Assessment Guidance for Superfund:
Volume 1- Human Health Evaluation Manual, Pan A" (December 1991).
OSWER Directive 9285.7-0IB, "Risk Assessment Guidance for Superfund:
Volume 1- Human Health Evaluation Manual, Pan B" (December 1989).

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  6-28    RI/FS Implementation
6.2.D     Treatability
        Investigations
OSWER Directive 9285-5-1A, SuperfundExposure Assessment Manual (April
1989).
OSWER Directive 9285-7-01, "Risk Assessment Guidance for Superfund -
Environmental Evaluation Manual: Volume 2" (March 1989).
Integrated Risk Information System.
Public Health Risk Evaluation Database.

Treatability studies are designed to provide information for EPA to use in
conducting detailed analyses of alternatives. If treatability studies are
deemed appropriate, they should be conducted during the scoping phase as
diey may take over six mondis to complete  (e.g., biotreatability studies).
The decision whedier to conduct treatability studies is based on a number
of factors, including: 1) whether a treatment alternative is properly consid-
ered for the site; 2) the nature and size of the site; 3) die nature of the
contaminants and contaminated media; 4) the potential for migration and
possible site risks; 5) information available in technical literature; and 6) the
uncertainties associated with selecting an  appropriate site remedy.  The final
decision on die type and extent of treatability study to conduct (literature
survey, bench, or pilot) depends on uncertainties of treatment and the
amount of work that should be deferred to the RD process. A literature
survey may suffice when the performance of a technology under consider-
ation has been sufficiendy documented on similar wastes.  In diat case, site-
specific information collected during the site characterization may be
adequate to evaluate and cost the technology widiout treatability testing.
Where controversial technologies are under consideration, e.g.  incineration,
community involvement can be an important factor in facilitating treatabil-
ity studies.
In addition to progress meetings and reports, the required deliverables for
treatability investigations may include:

  •  An identification of candidate technologies.
  •  A literature survey and determination of whether testing is necessary.
  •  A treatability testing work plan or  revisions of die original work plan.
  •  A treatability study SAP or revisions  of the original SAP.
  •  A treatability study HASP or revisions of the original.
  •  A treatability study evaluation report summarizing the results,
      evaluating the test, and describing the following:
          Remedial technology.
          Test objectives.
          Experimental procedures.
          Treatability conditions to be tested.
          Analytical methods.
          Data management and analysis.

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                                                                                                  6-29
6.2.E  Development
        and Screening
       of Alternatives
          Health and safety.
          Residual waste management.
Following the completion of treatability testing, data should be analyzed
and interpreted, and die results set forth in a technical report to EPA.
Depending on die sequence of activities, this report may be a part of the RI/
FS report or a separate deliverable. The report should evaluate the
technology's effectiveness, implementability, and actual results as compared
to die predicted results.  The report should also evaluate full-scale applica-
tion of die technology, including a sensitivity analysis identifying die key
parameters affecting full-scale operation.

During die process of developing alternatives,  RPMs should ensure diat die
PRPs undertake die following activities:

  •   Develop specific RA objectives acceptable to EPA using all RI-
      generated data. This is very important as it sets die goals of the FS.
  •   Develop a range of general response actions.
  •   Identify areas or volumes of die media to be treated, contained, and/
      or subjected to institutional controls.
  •   Identify, screen, and document technologies.
  •   Assemble a number of alternatives depending on site type and
      characteristics.
  •   Screen die RA alternatives, if necessary, on die basis of effectiveness,
      implementability, and cost.
  •   Prepare an alternatives array document.
The information produced by die development and screening of alternatives
is used in assembling remedial technologies into alternatives for eidier die
site as a whole or for a specific Operable Unit.
Development of RA alternatives should be conducted in light of die
numerous guidance documents die Agency has produced to assist and
realize cost and time savings in performing RI/FSs. These include general
policy and procedures for conducting RI/FSs at municipal landfills; pre-
sumptive remedies for sites widi volatile organic compounds in soil and
ground water, municipal landfills, and wood treater sites; guidance on soil
screening, characterizing dense non-aqueous phase liquid sites, estimating
risk at lead-contaminated soil sites, technical impracticability waivers at sites
where complete restoration is infeasible, and land use considerations in die
risk assessment and  remedy selection  processes. These and other resources
are referenced below.
At some sites, a number of potential remedial options may be developed
early in the RT/FS process.  In such cases, die RPM should screen alterna-
tives to  narrow die list of options diat will be evaluated in detail. The
screening process is  useful for two reasons. First, it streamlines die FS
process; second, it ensures diat only die most promising alternatives are
being considered by EPA

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6-30    RI/FS Implementation
                              RPMs should either closely scrutinize PRP conduct of the screening process
                              or conduct it themselves. The alternatives development screening docu-
                              ment, including the alternatives array, must be scrutinized. At this stage,
                              ARARs should be given specific attention as compliance with ARARs is a
                              threshold criterion that each alternative must meet in order to be eligible for
                              selection. RPMs should be wary of PRP proposals that are ineffective
                              because they treat too little or do not treat to appropriate levels.  RPMs
                              should ensure that regional management has a number of distinct options
                              and alternatives from which to select an appropriate site remedy.
                              The information available at the time of screening should be used to
                              compare the various alternatives. If screening takes place, the technical
                              memorandum should present the alternatives in such a manner that the
                              RPM can evaluate each alternative with respect to its effectiveness,
                              implementability, and cost, and document the rationale for screening out
                              any alternatives.  RPMs should retain only the alternatives that are judged
                              the best or most promising, while retaining a range of alternatives broad
                              enough to satisfy the requirements of CERCLA and the NCP. These
                              alternatives should be subjected to  further consideration and analysis.
                              Alternatives that are screened out will not receive further consideration
                              unless additional information indicates that further evaluation is warranted.
                              In the event that there are only a limited number of viable alternatives for a
                              particular site, the RPM should either minimize or eliminate the alternative
                              screening process.
                              References
                              OSWER Directive 9355-0-69, "Rules of Thumb for Superfund Remedy
                              Selection," (August 1997).
                              "Multi-Phase Extraction (MPE) Technology Selection for the VOCs in Soil
                              and Groundwater Presumptive Remedy,"  Draft Final  (January 1997).
                              "Landfill Presumptive Remedy Saves Time and Cost," EPA 540-F-96-017.
                              "Application of the CERCLA Municipal Landfill Presumptive Remedy to
                              Military Landfills," EPA 540-F-96-020.
                              "Presumptive Response Strategy and Ex-Situ Treatment Technologies for
                              Contaminated Ground Water at CERCLA Sites," EPA 540-R-96-023.
                              "User's Guide to the VOCs in Soils Presumptive Remedies," EPA 540-F-96-
                              008.
                              OSWER Directive 9355.4-14FSA, "Quick Reference Fact Sheet" (July
                              1996).

                              OSWER Directive 9355.4-23, "Users Guide" (April 1996).
                              "Soil Screening Guidance: Technical Background Document," EPA 540-R-
                              95-128.
                              "Presumptive Remedies for Soils, Sediments, and Sludges at Wood Treater
                              Sites," EPA540-R-95-128.

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                                                                                                6-31
6.2.F          Detailed
            Analysis of
           Alternatives
"CERCLA Landfill Caps RI/FS Data Collection Guide," EPA 540-F-95-
009.
"Presumptive Remedy for CERCLA Municipal Landfill Sites," EPA 540-F-
93-035-
"Policy and Procedures," EPA 540-F-93-047.
"Site Characterization and Technology Selection for CERCLA Sites With
Volatile Organic Compounds in Soils," EPA 540-F-93-048.
"Technology Selection Guide for Wood Treater Sites," EPA 540-F-93-020.
OSWER Directive 9234.2-25, "Guidance for Evaluating the Technical
Impracticability of Ground Water Restoration" (September 1993).
"Presumptive Remedies for Municipal Landfill Sites," Superfund Acceler-
ated Cleanup Bulletin: Volume 2, Number 1 (February 1993).
"Presumptive Remedies," Superfund Accelerated Cleanup Bulletin (August
1992).
"Presumptive Remedies for Wood Treatment Facilities," Superfund Acceler-
ated Cleanup Bulletin (May 1992).
"Presumptive Remedies for Municipal Landfill Sites," Superfund Accelerated
Cleanup Bulletin: Volume 1, Number 1 (April  1992).
"Conducting RI/FS for CERCLA Municipal Landfills," EPA 540-P-91-
001.
OSWER Directive 9355.3-01, "Guidance for Conducting Remedial
Investigations and Feasibility Studies Under CERCLA" Interim Final
(October 1988).

The detailed analysis of alternatives consists of the analysis and presentation
of the relevant information needed to allow decision makers to select a site
remedy. Nine evaluation criteria set forth at NCP section 300.400(e)(9)(iii)
have been developed to address statutory requirements, as well as the
technical and policy considerations diat have proven to be important for
selecting from among the remedial alternatives. These evaluation  criteria
serve as die basis for conducting the  detailed analyses during die FS and for
subsequently selecting an appropriate site remedy.
A detailed analysis of alternatives consists of the following components: 1)
further definition of each alternative relative to the more limited informa-
tion presented in the screening analysis; 2) an individual assessment and
summary profile of each alternative against the nine evaluation criteria; and
3) a comparative analysis among the alternatives to assess their relative
performance with respect to each evaluation criterion.
The PRPs should submit a technical memorandum summarizing  the results
of the detailed analysis. In addition, the  PRPs should submit a draft FS
report to the RPM for review and approval. This report, as adopted or
modified by EPA, provides a basis for remedy selection.  It documents the
development and analysis of remedial alternatives.  Once EPA's comments

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6-32    RI/FS Implementation
                             have been incorporated to the RPM s satisfaction, the final FS report may
                             be bound with the final RI report.
                             Following the PRP's completion of the RI/FS report and the RPMs confir-
                             mation that there is sufficient information to support the selection of a
                             preferred alternative, EPA begins the process of remedy selection which is
                             discussed in Chapter 7, Selection of Remedy.
                             References
                             OSWER Directive 9355.0-69, "Rules of Thumb for Superfund Remedy
                             Selection," (August 1997).
                             OSWER Directive 9835.l(c), "Guidance on Oversight of Potentially
                             Responsible Party Remedial Investigations and Feasibility Studies,"
                             Volume 1 Quly7, 1991).
                             OSWER Directive 9835. l(d), "Guidance on Oversight of Potentially
                             Responsible Party Remedial Investigations and Feasibility Studies,"
                             Volume 2 (July 7, 1991).
                             OSWER Directive 9355-3.01FS3, "Feasibility Study - Development and
                             Screening of Remedial Action Alternatives" (November 1989).
                             OSWER Directive 9355.3-01, "Guidance for Conducting Remedial
                             Investigations and Feasibility Studies Under CERCLA" Interim Final
                             (October 1988).

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                                                                                         6-33
6.3
Planning and Reporting Requirements

The RPM should review and update the information in EPA's automated
data systems as events happen. That is, events should be tracked in the
database on a real-time basis. Depending on the region, RPMs are respon-
sible for entering accurate information into CERCLIS 3/WasteLAN or
providing that information to the IMC for entry into CERCLIS 3/
WasteLAN. For example, activities such as RI/FS starts, field work starts,
and draft RI/FS completions must be entered into CERCLIS 3/WasteLAN.
RI/FS events are tracked in the Superfund Comprehensive Accomplish-
ments Plan (SCAP). A matrix of SCAP targets relevant to RI/FS imple-
mentation is presented as Exhibit 6-9.

6-9    SCAP Targets for RI/FS Scoping
Activity
Remedial
Investigation/Feasibility
Study
RI/FS Start (Fund)
RI/FS Start (PRP)
Start of Public Comment
(RI/FS to Public)
RI/FS Comp. ROD
RI/FS Comp. (ROD)
(Fund)
RI/FS Comp. (ROD)
(PRP)
SCAP
Target/Measure

X
X
X

X
X
Quarterly
Target

X
X




Annual
Target

X
X




                             The following are definitions of the Exhibit 6-9 SCAP activities.

                             RI/FS Start - The definition of accomplishment for an RI/FS start depends
                             on the lead.

                             Fund-Financed - (Includes F and S lead events) A Fund RI/FS start is
                             counted when funds are obligated. Funds are obligated when the following
                             have occurred:

                                •  The contract modification for die RI/FS has been signed by die
                                   Contracting Officer.

                                •  An Interagency Agreement (L\G) has been signed by the other
                                   federal agency (USAGE or Bureau of Reclamation).

                                •  Obligations have been recorded or documented in WasteLAN.

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6-34    RI/FS Implementation
                              PRP-Financed - (Includes RP, MR, and PS lead events) A Responsible
                              Party (RP or MR)- lead RI/FS start counts when one of die following
                              enforcement actions occurs:

                                •   An AOC is signed by die Regional Administrator (RA).  The RI/FS
                                    start date is die AOC completion date (RA signature date).
                                •   A CD is referred by die region to die Department of Justice (DOJ)
                                    or Headquarters. The RI/FS start date is die last signature date by
                                    the appropriate official or party (RA, DOJ, or Headquarters).
                              A PS-lead RI/FS start counts when a state order or comparable enforcement
                              document is signed by die last appropriate official or party, and die site is
                              covered by one of die following:

                                •   A state enforcement CA.
                                •   A Superfund Memorandum of Agreement (SMOA) containing a
                                    schedule for RI/FS work at die site.
                                •   Another state/EPA agreement.
                              If a subsequent RI/FS is initiated without a new or amended AOC, CD,
                              state order, or other comparable state enforcement document, die start date
                              for the RI/FS is defined as EPA's or die state's approval of die work plan for
                              die subsequent RI/FS.
                              If an AOC, state order, or odier comparable state enforcement document is
                              amended for die subsequent RI/FS,  die start date is die date die last official
                              signs die amendment. If an EPA CD is amended, die start date is die last
                              signature date by die appropriate official or party.
                              Federal Facility - The RI/FS start date should coincide with the LAG
                              effective date.  For sites where RI/FS work starts prior to die LAG effective
                              date, however, the earliest date reportable is die LAG completion date. For
                              sites where RI/FS work is initiated under a RCRA order or permit, die RI/
                              FS start date should equal die date when die RCRA order or permit be-
                              comes effective.

                              In rare cases, widi Headquarters approval, when die RI/FS has been initi-
                              ated prior to die LAG completion date and diere has been  extensive regional
                              involvement with die facility, die RI/FS start date can be die receipt of die
                              RI/FS workplan.

                              EPA In-House (EP) Lead - An EP-lead RI/FS counts when die region
                              begins preparation of the work plans following die initial scoping meeting.
                              Separate Fund-financed, RP-lead and Federal Facilities RI/FS start targets
                              will be established in SCAP prior to die fiscal year. Targets are established
                              site-specifically. For RI/FS starts, "To-Be-Determined" sites are allowed.
                              RI/FS To Public - The RI/FS is released to die public when die contamina-
                              tion at die site has been characterized and alternatives for remediation have
                              been evaluated. An RI/FS release to the public is accomplished  die date die
                              proposed plan is made available to die public.  This date should be recorded

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                                                               6-35
in WasteLAN with the RI/FS event under the SubAction Start of Public
Comment.  Accomplishments are based on the first proposed plan released
to the public for each RI/FS regardless of lead. This is a SCAP reporting
measure.
Remedies Selected (ROD) - A remedy is selected at die completion of die
RI/FS. Upon completion of die public comment period on a Fund-
financed or RP-lead RI/FS, a ROD which identifies die Agency's selected
remedy for a site or phase of site cleanup is signed by die Assistant Adminis-
trator for die Office of Solid Waste and Emergency Response (AA OSWER)
or the RA/Deputy RA.
For F, FE, and SE Lead ROD - credit is given on die date die ROD is
signed by die RA/Deputy RA or the AA OSWER.
Upon completion of a Federal Facilities RI/FS, die federal agency selects a
remedy for die site diat is presented in a cleanup Decision Document (DD)
(i.e., ROD, Corrective Action DD). EPA or die state may eidier approve or
concur on die remedy selection or, in die case of a dispute, diey may select
die remedy. For EPA, diis authority has been  delegated to die RA or his/her
designee.
For Federal Facilities - credit is given on die date of EPA approval/concur-
rence in die cleanup DD pursuant to an LAG or odier enforceable DD, or
die date of EPA's letter of concurrence.
The RI/FS completion date and die ROD completion date are die same.
This date should be entered in WasteLAN as both die RI/FS and ROD
completions. For specific coding requirements into CERCLIS 3/WasteLAN,
see die SCAP/OIL Quick Reference Coding Guide or your IMC.
Reference
OSWER Directive 9200.3-14-1D, Superfund/OilProgram Implementation
Manual (updated biennially).
SCAP/Oil Quick Reference Coding Guide.

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  6-36    RI/FS Implementation
6.4
6.4.A
    Dispute
Resolution
6.4.B
Corrective
 Measures
Potential Problems/Resolutions

During the course of a PRP-conducted RI/FS, the PRP may encounter
problems, or the RPM may identify unsatisfactory or deficient PRP perfor-
mance. This section discusses some possible solutions to the problems
commonly encountered by RPMs overseeing PRP-conducted RI/FSs.

When disputes arise between the RPM and the PRPs' project manager, the
RPM should attempt to resolve the matter informally. If informal efforts
fail, die RPM should implement formal dispute resolution mechanisms in
accordance widi die AOC after coordination widi regional counsel.
The AO usually will set forth die formal dispute resolution procedures.
This process is generally initiated by a written notice of disapproval by an
appropriate manager widiin die Agency. Generally, die PRP must reach a
negotiated agreement widiin 14 days of receiving die notice. For cases in
which die negotiations fail, EPA will prepare a written record of die
negotiation's outcome. Often die order is structured to require die PRP to
appeal or do die work. This decision can be appealed to die Superfund
program manager, who is die final arbitrator of die dispute. If die PRP fails
to comply widi die decision, die Agency may take one or more of die
following actions:

   •   Seek stipulated and statutory penalties.
   •  , Take over die RI/FS and subsequendy recover costs.
   •   Take odier action (e.g., court order to comply).
The RPM should work closely widi regional management and counsel to
coordinate dispute resolution efforts.

If oversight investigations reveal diat die PRP, or its contractor, is perform-
ing field and laboratory activities in a manner inconsistent widi die work
plan or SAP, die RPM may need to implement corrective measures. For die
most part, informal dispute resolution procedures should be sufficient to
remedy die problem. The RPM can initiate diis process by first talking
widi die PRPs' designated technical coordinator. If diis approach does not
correct die problem, die RPM should dien use die more formal approach of
issuing a notice of deficiency.
To issue a notice of deficiency, RPMs should take die following steps:

   •   Notify die PRPs in writing.
   •   Describe die nature of die deficiency.
   •   Request diat die PRP undertake appropriate corrective action widiin
      a specific period.
Failure to respond to a deficiency notice can lead to penalties or EPA
takeover of the RI/FS. The AOC normally will stipulate penalties for
noncompliance, but penalties may also be imposed under CERCLA section
122(1) in accordance widi section 109.  Where die Agency requires perfor-

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                                                              6-37
mance of the RI/FS pursuant to a section 106 UAO, penalties may be
imposed under section 106(b)(l).
Reference
OECA Memorandum, "Interim Policy on Settlement of CERCLA Section
106(b)(l) Penalty Claims and Section 107(c)(3) Punitive Damages Claims
for Noncompliance with Administrative Orders" (September 30, 1997).

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  6-38    RI/FS Implementation
6.5                           Activities Checklist
                               This checklist is not intended to present an exhaustive set of procedures, nor
                               is it intended to be a chronological list of tasks. RPMs should exercise their
                               professional discretion when deciding what procedures are appropriate for a
                               particular site.
                               PREPARATION AND MANAGEMENT
                               1)	   If not previously done, identify the preliminary scope of RI/FS
                                          activity for the site. Establish  site-specific objectives.  Develop
                                          a general management strategy for site activity. Ensure appro-
                                          priate regional Superfund management review of scoping.
                               2)	   Organize regional team and specialists as needed  (e.g.,
                                          hydrogeologist, human risk specialist, ecological risk specialist,
                                          and remedial engineer).
                               3)	   Procure the services of qualified oversight assistant(s).
                               4)	   Coordinate interagency and intergovernmental responsibilities,
                                          including those of the state, ATSDR, and natural resource
                                          trustees.
                               5)	   Ensure budgetary support in SCAP.
                               6)	   Assess the PRPs' ability to conduct the RI/FS  (financial,
                                          technical, managerial).
                               COMMUNITY RELATIONS PLAN
                               7)	   Develop a CIP and define die PRPs'  participation, if any.
                               PROJECT PLANNING
                               8)	   Ensure that PRPs have collected and considered available data.
                               9)	   Conduct an initiation meeting and site visit with the PRPs.
                               10)	 Prior to the PRPs' development of a work plan, SAP, and site
                                          HASP, meet with PRPs and, as appropriate, regional Superfund
                                          management and oversight assistant to assure  that PRPs
                                          understand:
                                          a)	       The objectives of SARA and, for  the site, prelimi-
                                                     nary remedial action objectives and alternatives.
                                          b)	      The need for treatabiliry studies.
                                          c)	       The RI/FS guidance and other guidances.
                                          d)	      What to include in die plans.
                                          e)	       The roles and responsibilities.
                               11)	 Review die work plan, with in-house specialists and contractor
                                          support.
                                          a)	       Background information.

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                                                       6-39
b)	      Objectives, preliminary conceptual model.
c)	      Management plan, including general strategy,
            activity schedules, advance notice to EPA of field
            activities, reporting and meeting schedules (in-
            cluding data reporting), deliverables schedules,
            equipment and personnel, data management.
d)	      Site characterization.

            •    Field support; preparation.
            •    Physical characteristics (e.g., geology, hydrol-
                ogy); sources of contamination; nature and
                extent of contamination; information to be
                gathered; methods of gathering information;
                extent of field investigation and how it is
                determined (include off-site for hydrology,
                extent of contamination, etc.); sufficiency for
                multiple purposes (e.g., extent, fate and
                transport, risk, treatability, delineation of
                remedial alternative; methods of data analysis;
                information produced and format).
            •    Assure adequate off-site work (e.g., for
                hydrological setting, pathways).
            •    Supplemental field work.
            •    Site characterization report, requirements,
                data presentation.
e)	      Risk assessment.

            •    Federal and state ARARs (approach,  primarily
                to contaminant-specific and location-specific).
            •    Human health.
            •    Approach to contaminant identification;
                exposure assessment, use of the Superfund
                Exposure Assessment Manual, use of current
                and maximum reasonable use scenario
                assuming growth; exposure points with path-
                ways, media, exposure route, persons exposed
                and amount exposed to, fate and transport
                models; use of the Integrated Risk Informa-
                tion System and other data on toxicity; risk
                characterization; deliverables in final report.
            •    Environmental evaluation.
            •    Plan, implementation, deliverables, report.
f)	      Rl report - Content, form, review, response to
            EPA's comments, approval.
g)	      Treatability studies.

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6-40    RI/FS Implementation
                                                    •   Schedule early start - Candidate technologies,
                                                        approach to determining need for testing.
                                                    •   Work plan contents.
                                                    •   Implementation.
                                                    •   Evaluation report.
                                         h)	      Development and screening of alternatives.
                                                    •   Development review/approval of RA objec-
                                                        tives; contaminant specific ARARs.
                                                    •   Approach to developing  and refining alterna-
                                                        tives.
                                                    •   Approach to screening.
                                                    •   Methodology for developing and incorporat-
                                                        ing action-specific ARARs.
                                                    •   Deliverables, including alternatives array
                                                        document.
                                                    •   Review/approval.
                                                    Detailed analysis.
                                                    •   Nine criteria and comparative analysis.
                                                    •   Report on comparative analysis and presenta-
                                                        tion.
                                                    •   Response to EPA's comments.
                                                    FS report.
                                                    •   Content, form, review, response to EPA's
                                                        comments.
                              12)	 Review the SAP.
                                         a)	      FSP.
                                                        Site background (including an evaluation of
                                                        existing data).
                                                        Sampling objectives.
                                                        DQOs.
                                                        Sample media.
                                                        Sampling locations and rationale.
                                                        Sampling frequency and rationale.
                                                        Number of samples and justification.
                                                        Number of field blanks, trip blanks, and
                                                        duplicates.
                                                        Sampling equipment.
                                                        Sampling procedures and rationale.
                                                        Sampling handling (including chain-of-
                                                        custody procedures).
                                                        Field analytical procedures.

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                                                                 6-41
                       •   Decontamination procedures.
                       •   Sample designation.
                       •   Laboratory analytical procedures, equipment,
                           and detection limits.
                       •   Systematic requirements to fully delineate
                           each source and the nature and extent of
                           contamination to DQO levels.
           b)	      QAPP.
                       •   DQOs for measurements. Ensure that soils,
                           ground water measured to levels consistent
                           with risk range in NCR
                       •   Sampling procedures.
                       •   Sample custody procedures.
                       •   Calibration procedures and frequency.
                       •   Analytical procedures.
                       •   Data reduction, validation, and reporting
                           procedures.
                       •   Internal quality control checks and frequency.
                       •   Performance and systems audits and fre-
                           quency.
                       •   Preventive maintenance procedures and
                           schedules.
                       •   Data assessment procedures.
                       •   Corrective action procedures.
                       •   QA reporting procedures.
13)	 Receive the HASP.
14)	 Draft comments; changes to PRPs' plans.
15)	 Coordinate with state trustees as necessary.
16)	 Management review of project plans.
17)	 Approve/modify plans.
18)	 Refine oversight plan..
           a)	      Address what is to be done, when, by whom.
           b)	      Assure oversight persons are informed of their
                       duties and of schedules.
           c)	      Budget resources.
           d)	      Ensure other communications; (e.g., state,
                       ATSDR, trustee).
           e)	      Anticipate common problems.
19)	 Open AR at region and near site; add approved plans.

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6-*42    RF/FS Implementation
                              20)	  Begin community involvement activities upon approval of
                                         plans.
                              OVERSEE RI FIELDWORK AND DATA. ANALYSES
                              21)	  Meet with EPA team members, specialists, QA/QC person,
                                         and oversight assistant to review work, schedules, roles and
                                         responsibilities.
                              22)	  Meet with PRPs' contractor to ensure that they understand
                                         work plan, requirements for notice to EPA, field methodology,
                                         QA/QC at site and in lab (methods, detection limit, etc.).
                              23)	  Review PRPs' field support preparation and resources.
                              24)	  Develop field check lists.
                              25)	  Develop site characterization, source definition, description of
                                         nature and extent of contamination. On an ongoing basis:
                                         a)	      Assure compliance with work plan and SAP.
                                         b)	      Oversee schedule, ensure advance notice by PRP
                                                    of field work, schedule site inspections, have
                                                    oversight assistant review data as developed by
                                                    PRPs for sufficiency, review QA/QC trends.
                                         c)	      Assure adequate locations, types, depths, numbers,
                                                    etc. of samples.
                                         d)	      For ongoing fieldwork, check quality of sampling
                                                    and testing.

                                                    •   Ensure sample splits, spikes, blanks, etc.
                                                    •   Review QA/QC of loss/analyses.
                                                    •   Ensure use of proper lab protocols; audit lab,
                                                        compare splits, etc.
                                                    •   Ground water monitoring well construction/
                                                        installation.
                                         e)	      Check quality of ground water elevations and
                                                    pump tests in various strata.
                                         f)	      Check quality of soil sampling (surface/at depths).
                                         g)	      Check quality of ground water sampling.
                                         h)	      Check quality of surface water sampling.
                                         i)	      Check quality of sediment sampling.
                                         j)	      Review well and other receptor surveys.
                                         k)	      Review field books, activity logs, etc.
                                         1)	      Review progress reports.
                                         m)	     Review data management.

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                                                                  6-43
            n)	      Hold progress status meetings.
            o)	      Assess whether the data incrementally collected are
                       sufficient for all purposes (site characterization,
                       source definition, nature and extent of contamina-
                       tion, fate and transport, treatability, remedial
                       alternatives (e.g., bedrock ground water
                       remediation).
            p)	      Based on available data, direct collection of
                       additional data (e.g., source contamination to
                       background, extent of plume to background).
26)	  Ensure appropriate data provided to ATSDR, state, trustees.
27)	  Review and comment on site characterization summary; assure
            proper and accurate data presentation.
28)	  Update AR.
29)	  Ensure adequate oversight activity documentation (cost
            documentation).
30)	  Identify interim actions as necessary.
PERFORM RISK ASSESSMENT
31)	  Secure qualified contractor.
32)	  Identify any highly controversial substances that warrant
            Headquarters assistance.
33)	  Identify federal and state contaminant-specific ARARs.
34)	  Perform human health risk assessment/EA.
            a)	      Review contaminant identification/indicator
                       chemicals memorandum.
            b)	      Review exposure assessment (exposure scenarios,
                       exposure assumptions, population at risk, fate and
                       transport model, etc.).
            c)	      Review toxicity assessment (sources, application).
            d)	      Review human health risk characterization.
35)	  Perform environmental evaluation.
            a)	      Review environmental evaluation plan; discuss
                       with trustees.
            b)	      Review environmental evaluation report; discuss
                       with trustees.
36)	  Obtain/review ATSDR health assessment; state views.
37)	  Ensure appropriate EPA management review.
38)	  Comment on/finalize risk assessment; gather additional data as
            needed.

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6-44    RI/FS Implementation
                             REMEDIAL INVESTIGATION REPORT
                             39)	 Copy to state, trustees, ATSDR, as appropriate.
                             40)	 Develop preliminary comments.
                             41)	 Ensure appropriate EPA managerial review.
                             42)	 Produce final comments.
                             43)	 Review and modify/approve interim RI report (possible
                                        additional work may be identified in FS).
                             44)	 Update AR.
                             45)	 Release fact sheets and hold public meetings as necessary.
                             TREATABILITY TESTING
                             46)	 Identify the need for treatability testing. If testing is done:
                                        a)	      Obtain specialized support, as necessary.
                                        b)	      Discuss requirements with PRPs.
                                        c)	      Review/modify/approve proposal on need for
                                                   literature search vs. testing.
                                        d)	      Review PRPs' work plan/SAP.
                                        e)	      Review PRPs' report.
                                        f)	      Require, if necessary, additional testing.
                             DEVELOPMENT AND SCREENING OF ALTERNATIVES
                             47)	 Meet with PRPs to discuss RA objectives, alternative develop-
                                        ment and screening, detailed analysis, SARA-compliant
                                        remedies.
                             48)	 Review, modify, and possibly approve RA objectives submitted
                                        by PRPs.
                             49)	 Review work/report by PRPs, identifying potential technolo-
                                        gies for areas of media, evaluation of process types.
                             50)	 Review range of alternatives developed by PRPs; focus on
                                        effective remedies, preference  for treatment.
                             51)	 Advise state of alternatives.
                             52)	 Review the document submitted  by PRPs on alternatives
                                        passing the screen, including alternatives array summary with
                                        associated ARARs and description of underlying work.
                             53)	 Confer widi state.
                             54)	 Submit comments, ensuring that appropriate alternatives
                                        passed die screen, and proper  identification and attorney
                                        review of ARARs, particularly action-specific ARARs. If PRPs
                                        continue  to lean improperly toward no-action, ineffective, low-
                                        cost remedies, schedule a meeting. Consider enforcement and
                                        EPA takeover.

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                                                                6-45
55)	 Finalize approved identification of acceptable group of rem-
           edies that should be considered in the detailed analysis.
56)	 Assure updated AR.
57)	 Review die comparative analysis document prepared by PRPs
           (unless EPA reserved this).
58)	 Assure diat, to the extent possible, state, trustees' views are
           known.
DETAILED ANALYSIS
59)	 Meet with PRPs.
60)	 Provide comments, direction to PRPs for FS.
61)	 Ensure updated AR.
FEASIBILITY STUDY
62)	 Facilitate attorney review of ARARs.
63)	 Circulate PRP draft FS to state, trustees, intra-EPA groups.
64)	 Develop preliminary comments.
65)	 Ensure internal EPA and management review, discuss proposed
           plan.
66)	 Finalize comments.
67)	 Ensure development of an FS diat supports proposed plan.
68)	 Update AR.
69)	 Prepare oversight/response cost billing.
70)	 Prepare for RD/RA negotiations.

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7. Selection of Remedy

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                                                                            7-i
                 Chapter 7  Selection of Remedy


7.1   Description of Activity	1

      7.1.A   Introduction	1
      7.1.B   Overview	1
      7.1.C   Statutory Authority	1
      7.1.D   Responsibilities	3
      7.1.E   Evaluation Criteria for Comparing Alternatives	4
              7.1.E.1   Threshold Criteria	4
              7.1.E.2   Primary Balancing Criteria	6
              7.1.E.3   Modifying Criteria	7
      7.1.F    Promotion of Appropriate National Consistency	8
      7.1.G   Innovative Technologies	9
      7.1.H   ROD Delegation, Consultations, and Briefings	9
7.2   Procedures and Interactions	10

      7.2.A   Review of RI/FS	10
      7.2.B   Preparation of Proposed Plan	11
              7.2.B.1   Format of Proposed Plan	12
              7.2.B.2   Contents of Proposed Plan	12
      7.2.C   State/Federal and Public Input on Preferred Alternative	13
      7.2.D   Public Input on Remedial Alternatives	14
              7.2.D.1   Public Notice	14
              7.2.D.2   Public Meeting	14
              7.2.D.3   Public Comment Period	14
              7.2.D.4   Administrative Record	15
              7.2.D.5   PRP Participation	15
      7.2.E   Preparation for RD/RA Negotiations	16
      7.2.F    Final Selection of Preferred Alternative	16
      7.2.G   Preparation of Draft ROD	18
              7.2.G.1   Components of ROD	18
                      7.2.G.1.A Declaration	19
                      7.2.G.1.B Decision Summary	19
                      7.2.G.1.C Responsiveness Summary	19
              7.2.G.2   Changes from the Proposed Plan to the ROD	20
      7.2.H   State/Federal Consultation on  Selected Remedy	20
      7.2.1     Concurrence	21
      7.2.J    Briefing and Signature	22
      7.2.K   Notice	22
      7.2.L   Post-ROD Changes	22
7.3   Planning and Reporting Requirements	23

      7.3.A   Reporting Requirements	23
              7.3.A.1   Submission of Documents	23
              7.3.A.2   Information Databases	23

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 7—it    Selection of Remedy
             7.3.A.3  Implications of Submissions	23
      7.3.B   Planning Requirements	23
      7.3.C   Contractor Participation	23
7.4   Potential Problems/Resolutions	25

      7.4.A   PRPs' RI/FS Suggests Preferred Remedy	25
      7.4.B   Extensive Public Comment	25
      7.4.C   Disputes over ROD	25
7.5   Activities Checklist	27

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                                                                                               7-1
                     Chapter 7  Selection of  Remedy
7.1
7.1.A   Introduction
7.1.B
Overview
7.1.C
                 Description of Activity

                 This chapter provides a general discussion of the process used by federal
                 agencies to select a final Remedial Action (RA) from among the options that
                 undergo detailed analysis in the Remedial Investigation/Feasibility Study
                 (RI/FS). See Exhibit 7-1 for a representation of the elements diat make up
                 the remedy selection process.  For more detailed information on the remedy
                 selection process, consult the National Contingency Plan (NCP), "Guidance
                 on Preparing Superfund Decision Documents," and other documents
                 referenced at the end of each section.
                 Reference
                 National Oil and Hazardous Substance Pollution Contingency Plan (NCP),
                 40 Code of Federal Regulations (CFR) section 300.430 ("Remedial
                 Investigation/Feasibility Study and Selection of Remedy") (1990).

                 EPA has established the remedy selection process to fulfill the mandates of
                 section  121 of the Comprehensive Environmental Response, Compensation,
                 and Liability Act (CERCLA). Substantively, the remedy selection process
                 involves an objective assessment of alternative approaches for remediating
                 problems at sites against nine evaluation criteria that encompass statutory
                 requirements and a risk management decision as to which option provides
                 the most appropriate solution for a site. Procedurally, the selection of a
                 CERCLA RA from among alternatives is a two-step process. First,  the lead
                 agency,  in conjunction with the support agency, reviews the analysis in the
                 RI/FS and the Administrative Record (AR) to identify a preferred
                 alternative. This preferred alternative is presented to the public in a
                 Proposed Plan, which includes the supporting information and analysis, for
                 review and comment. Second, the lead agency reviews the public
                 comments, consults with the support agency to evaluate whether the
                 preferred alternative is still the most appropriate RA for die site or site
                 problem, and makes a decision.

Statutory    Section  121 of CERCLA and die NCP require that die chosen remedy meet
AuthoritV    certain standards. The lead agency must select a remedy that:

                   •  Is protective of human healdi and the environment.
                   •  Attains Applicable or Relevant and Appropriate Requirements
                      (ARARs), or provides grounds for invoking a waiver of ARARs.
                   •  Is cost-effective.
                   •  Utilizes permanent solutions and alternative treatment technologies
                      or resource recovery technologies to the maximum  extent practicable.
                   •  Addresses the preference for remedies that employ treatments diat
                      permanently and significantly reduce die volume, toxicity, or mobil-
                      ity of die hazardous substances, pollutants, or contaminants as a
                      principal element.

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 7-2     Selection of Remedy
7-1    Selection of Remedy Overview of Decision-Making Process
          STAGE 1:
         Selection of
     Preferred Alternative
          STAGE 2:
      Final Selection of
     Remedial Alternative
V
V
'
t
Lead and support agencies review RI/FS •
and Administrative Record •

Lead agency analyzes alternatives •
using the nine criteria •

Lead agency prepares draft Proposed Plan •
identifying preferred alternative 1

States, other federal agencies, HQ, and program •
offices review Proposed Plan •

Lead agency issues final
Proposed Plan for public comment

Public provides input on remedial alternative
through formal public comment period, advanced
by community involvement activities

Lead agency reevaluates alternatives on basis
of comments from public and new information

Lead agency prepares draft ROD

Lead agency gives support agency
opportunity to concur on selected remedy

Lead agency finalizes and coordinates
signing of ROD for a remedy acceptable to EPA

Lead agency provides notice of the
final remedial action plan


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                                                                                                  7-3
                                Remedies must be consistent with the requirements of the NCR The NCP
                                (40 CFR 300.430 (i)) specifies nine evaluation criteria to be used in
                                comparing remedial alternatives.  See Chapter 6, RI/FS Implementation for
                                a discussion of the nine evaluation criteria.
                                The NCP establishes additional procedures for the remedy selection process.
                                The process must include an opportunity for substantial and meaningful
                                involvement of state and tribal officials. The lead agency must comply with
                                public involvement requirements by allowing the public to comment and
                                submit information on the remedy for inclusion in die AR (see  section
                                300.800 of the NCP), and must document its decision in an AR that is
                                accessible to the public. EPA must notify Potentially Responsible Parties
                                (PRPs), state personnel, and natural resource trustees about negotiations for
                                implementation of the remedy.
                                References
                                "Rules of Thumb for Superfund Remedy Selection," EPA 540-R-97-013.
                                NCP, 40 CFR section 300.430 ("Remedial Investigation/Feasibility Study
                                and Selection of Remedy") (1990).
                                NCP, 40 CFR section 300.800 ("Establishment of an Administrative
                                Record") (1990).
                                OSWER Directive 9355.3-02, "Interim Final Guidance on Preparing
                                Superfund Decision Documents" (October 1989) (comprehensive update
                                anticipated in FY99).

7.1 .D  R6SpOnsibiliti6S    Federal and state agencies conduct remedy selection activities as cooperative
                                efforts. Section 121 (a) of CERCLA states that the President (EPA) shall
                                select appropriate RAs. EPA and the state agencies decide on a  case-by-case
                                basis which agency will become the lead agency. In some states, an
                                agreement between the agencies, such as a Superfund Memorandum of
                                Agreement (SMOA) or Cooperative Agreement (CA),  embodies this
                                decision (for more information on the EPA/state partnership, see Chapter
                                14, State Involvement in CERCLA Enforcement). In addition  to
                                designating itself or another agency as die lead agency for a site, EPA
                                generally delegates lead responsibilities from Headquarters  to the regions.
                                Regardless of whether die state is designated lead agency, EPA retains final
                                remedy selection authority for all Fund-lead actions and the audiority to
                                concur in all enforcement actions taken under CERCLA sections 106 and
                                122 and all Federal Facilities RAs at NPL sites under CERCLA section 120.
                                In general, the remedy selection process is the responsibility of the
                                government agencies involved at the site.  Contractors and PRPs, however,
                                may participate in particular aspects of die process.
                                States, tribes, and community stakeholders have had an increasing role in
                                die remedy selection process.  A Superfund Administrative Reforms pilot
                                program allows selected states or tribes to conduct die  remedy selection
                                process, consistent widi applicable law and regulations, widi minimal EPA

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 7-4      Selection of Remedy
7.1.E
  Evaluation
  Criteria for
  Comparing
Alternatives
7.1.E.1
     Threshold
        Criteria
oversight or involvement. The NCP (section 300.515 (e)(2)(ii)) requires
that EPA still concur with the final ROD.  Communities can also become
more involved in the remedy selection process by participating in a
Superfund Administrative Reforms pilot program that uses consensus-based
approaches to empower local citizens in achieving remedies that satisfy the
community while still meeting statutory and regulatory requirements.
References
"Rules of Thumb for Superfund Remedy Selection," EPA 540-R-97-013-
OSWER Directive 9355-7-04, "Land Use in the CERCLA Remedy
Selection Process" (May 1995).
NCP, 40 CFR section 300.430 ("Remedial Investigation/Feasibility Study
and Selection of Remedy") (1990).
NCP, 40 CFR section 300.515 ("Requirements for State Involvement in
Remedial and Enforcement Response") (1990).
OSWER Directive 9355.0-27FS, "A Guide to Selecting Superfund
Remedial Actions" (April 1990).
OSWER Directive 9234.2-05FS, "CERCLA Compliance with Other Laws
Manual-CERCLA Compliance with State Requirements" (December 1989).
OSWER Directive 9355-3-02, "Interim Final Guidance on Preparing
Superfund Decision Documents: The Proposed Plan and Record of
Decision." (July 1989) (comprehensive update anticipated in FY99).

EPA has structured a risk management decision-making process designed to
satisfy the numerous requirements of CERCLA. This process involves the
assessment of alternative hazardous waste management approaches and a
comparison of these approaches using nine evaluation criteria. The remedy
is selected by applying the criteria to identify the most protective solution
which meets, or with appropriate justification, waives ARARs for a given
site. The nine evaluation criteria are used to develop the RI/FS detailed
analysis, which forms the basis for the  remedy decision.  The evaluation
criteria are categorized into diree groups: threshold, primary balancing, and
modifying criteria. The definition and application of each type of criteria is
presented below.

The two threshold criteria diat must be satisfied in order for an alternative
to be eligible for selection are the following:

  •   Overall protection of human health and the environment -
      Protectiveness is the primary requirement that CERCLA RAs must
      meet. A remedy is protective if it adequately eliminates, reduces, or
      controls unacceptable risks posed by hazardous substances, pollut-
      ants, or contaminants in both die short and long terms. A site at
      which, after die remedy is implemented, hazardous substances
      remain widiout engineering or institutional controls must allow for
      unrestricted use and unlimited exposure for human and environmen-

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                                                                 7-5
      tal receptors.  For those sites where hazardous substances remain such
      that unrestricted use and unlimited exposure is not allowable,
      engineering controls, institutional controls, or a combination of the
      two must be implemented to control exposure and thereby ensure
      reliable protection over time.  In addition, implementation of a
      remedy must not result in unacceptable short-term risks to or cross-
      media impacts on human health and the environment.
   •   Compliance with ARARs - On-site remedies must attain or justify
      waiver of ARARs. Alternatives are developed and refined throughout
      the selection process to ensure that they will meet all of their respec-
      tive ARARs, or the lead agency must be able to provide grounds for
      invoking statutorily established waivers. During the detailed analy-
      sis, information on federal and state action-specific ARARs is
      assembled along with previously identified chemical-specific and
      location-specific ARARs. The state should be asked to provide a list
      of statutory and regulatory alternatives diat should be ARARs for the
      remedial alternatives. Alternatives will be refined to ensure compli-
      ance with diese requirements, or waivers that might be invoked will
      be identified by the lead agency.
References
OSWER Directive 9347.3-08FS, "Superfund LDR Guide #8: Compliance
with Third Third Requirements Under the LDRs" (October 1990).
OSWER Directive 9347.3-1 IPS, "Superfund LDR Guide #11: CERCLA
Compliance with die RCRA Toxicity Characteristics (TC) Rule: Part II"
(October 1990).
OSWER Directive 9347.3-09FS, "A Guide to Delisting of RCRA Wastes
for Superfund Remedial Responses" (September 1990).
OSWER Directive 9347.3-06FS, "Superfund LDR Guide #6A:  Obtaining
a Soil and  Debris Treatability Variance for Remedial Actions" (second
edition) (September 1990).
OSWER Directive 9347.3-06BFS, "Superfund LDR Guide #6B: Obtaining
a Soil and  Debris Treatability Variance for Removal Actions" (September
1990).
OSWER Directive 9234.2-08FS, "ARARs Qs and As.  Compliance with
the Toxicity Characteristics Rule: Part I" (May 1990).
OSWER Directive 9234.2-07FS, "CERCLA Compliance with Other Laws
Manual - Summary and Part II: CAA, TSCA, and Other Statutes" (April
1990).
OSWER Directive 9234.3-001, "ARARs Short Guidance Quarterly Report"
(December 1989).
OSWER Directive 9234.2-03FS, "Overview of ARARs: Focus on ARAR
Waivers" (December 1989)

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 7-6      Selection of Remedy
                               OSWER Directive 9347.3-07FS, "Superfund LDR Guide #7: Determining
                               When Land Disposal Restrictions (LDRs) Are Relevant and Appropriate to
                               CERCLA Response Actions" (December 1989).
                               OSWER Directive 9234.2-04FS, "RCRA ARARs: Focus on Closure
                               Requirements" (October 1989).
                               OSWER Directive 9347.3-01FS, "Superfund LDR Guide #1: Overview of
                               RCRA Land Disposal Restrictions (LDRs)" (July 1989).
                               OSWER Directive 9347.3-02FS, "Superfund LDR Guide #2: Complying
                               With the California List Restrictions Under Land Disposal Restrictions
                               (LDRs)" (July 1989).
                               OSWER Directive 9347.3-03FS, "Superfund LDR Guide #3: Treatment
                               Standards and Minimum Technology Requirements Under Land Disposal
                               Restrictions (LDRs)" (July 1989).
                               OSWER Directive 9347.3-05FS, "Superfund LDR Guide #5: Determining
                               When Land Disposal Restrictions (LDRs) Are Applicable to CERCLA
                               Response Actions" (July 1989).
                               OSWER Directive 9234.1-01, "CERCLA Compliance with Other Laws
                               Manual" (August 1988).
                               OSWER Directive 9347.3-10FS, "Superfund LDR Guide #10: Guide to
                               Obtaining No Migration Variances for CERCLA Remedial Actions"
                               (undated).

7.1 .E.2          Primary    Once it  has been determined that the alternatives meet the threshold
                Balancing    criteria,  five primary balancing criteria are used to weigh major trade-offs
                   Criteria    among the different hazardous waste management strategies.  The five
                               balancing criteria are:

                                  •   Long-term effectiveness and permanence - This criterion reflects
                                     CERCLA's emphasis on implementing remedies that will ensure
                                     protection of human health and the environment  in the future as
                                     well as in the near term.  In evaluating alternatives for the degree of
                                     long-term effectiveness and permanence they afford, the analysis
                                     should focus on the residual risks that will remain at the site after
                                     completion of the RA. This analysis should include consideration of
                                     the following: the degree of risk posed by the hazardous substances
                                     remaining at the site, the adequacy and reliability of any controls
                                     (e.g., engineering and institutional controls) used  to manage the
                                     hazardous substances remaining at the site, and the potential impacts
                                     on human health and the environment (based on assumptions
                                     included in the reasonable maximum exposure scenario) should the
                                     remedy fail. This evaluation criterion takes into account the follow-
                                     ing: the uncertainties associated with land disposal; the goals,
                                     objectives, and requirements of die Resource Conservation and
                                     Recovery Act (RCRA); the persistence, toxicity, mobility, and
                                     propensity to bioaccumulate of the hazardous substances and their

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                                                                                                    7-7
                                      constituents; the long-term potential for adverse health effects from
                                      human exposure; and threats to the environment associated with
                                      redisposal or containment of the hazardous substances.
                                   •   Short-term effectiveness - This criterion includes the short-term
                                      impacts of the alternatives (e.g., impacts during implementation) on
                                      the neighboring community, workers, or the surrounding environ-
                                      ment, including the potential direats to human health and the
                                      environment associated with excavation, treatment, and transporta-
                                      tion of hazardous substances. The potential cross-media impacts of
                                      the remedy during implementation and the time needed to achieve
                                      protection of human health and the environment should be analyzed
                                      as well.
                                   •   Reduction of toxicity, mobility, or volume through treatment-
                                      This criterion ensures that the relative performance of die different
                                      alternatives in reducing toxicity, mobility, or volume through treat-
                                      ment will be assessed, addressing the statutory performance require-
                                      ments for remedies diat employ treatment as a principal element.
                                      The reduction of the inherent hazards posed by the principal threats
                                      at the site should also be considered. Specifically, the analysis should
                                      examine the magnitude, significance, and irreversibility of reduc-
                                      tions.
                                   •   Implementability - Implementability considerations include the
                                      technical and administrative feasibility of the alternatives, and the
                                      availability of the goods and services (e.g., treatment, storage, or
                                      disposal capacity) on which the viability of the alternative depends.
                                      Implementability considerations often affect die timing of various
                                      remedial alternatives (e.g., limitations on die season in which die
                                      remedy can be implemented, the number and complexity of materi-
                                      als-handling steps that must be followed, the need to obtain permits
                                      for off-site activities, and the need to secure technical services such as
                                      well drilling and excavation).
                                   •   Cost - Costs assessed include direct and  indirect capital costs, annual
                                      Operation and Maintenance (O&M) costs, and the net present value
                                      of capital and O&M costs.
                                References
                                "The Role of Cost in die Superfund Remedy Selection Process," EPA 540-
                                F-96-018.
                                OSWER Directive 9355-7-04, "Land Use in the CERCLA Remedy
                                Selection Process" (May  1995).

7.1 .E.3        Modifying    Modifying criteria are considered throughout the remedy selection process,
                   Criteria    but are folly considered after public comment. The following are die two
                                modifying criteria:

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  7-5      Selection of Remedy
7.1.P   Promotion of
           Appropriate
                National
           Consistency
  •   State acceptance - This criterion, which is a concern throughout the
      remedial process, reflects the statutory requirement to provide
      substantial and meaningful state involvement.  Communication with
      the state throughout the RI/FS will help to avoid problems at the
      time of the Proposed Plan or ROD. State comments may be ad-
      dressed during the development of the FS, as appropriate, although
      formal state comments usually are  not received until after the state
      has reviewed the draft RI/FS and Proposed Plan prior to the public
      comment period. The Proposed Plan that is issued for public
      comment along with the RI/FS report should indicate either that the
      state has commented on or concurred with EPAs preferred alterna-
      tive, or that state comments have not been received. The ROD
      should specifically address state concurrence or nonconcurrence with
      the response action that is selected, particularly noting state views on
      compliance or noncompliance with state ARARs.
  •   Community acceptance - This criterion refers to the community's
      comments (community is broadly  defined to include all interested
      parties) on the remedial alternatives under consideration. These
      comments are taken into account throughout the RI/FS process
      through the communications  that  occur as the Community Involve-
      ment Plan (CIP) is implemented.  In most cases, EPA can only
      preliminarily assess community acceptance during the development
      of the FS, since formal public comment will not be received until
      after the public comment period for the Proposed Plan and the RI/
      FS is held. The detailed analysis, however, may summarize prelimi-
      nary comments on components of the alternatives received up to
      that point.

To promote appropriate national consistency, a series of administrative
reforms have been enacted.  The creation  of the National Remedy Review
Board (NRRB) brings together expertise to review and make
recommendations on remedies that exceed specific cost criteria. The
NRRB s goals are to promote national consistency in remedy selection and
cost-effectiveness. In addition, EPA developed guidance describing the key
principles and expectations, interspersed with "best practices" based on
program experience that should be consulted during the Superfund remedy
selection process.  The purpose of the "Rules of Thumb for Superfund
Remedy Selection" guidance is to assist Regional Project Managers (RPMs)
and other program implementers in applying remedy selection principles  in
an appropriately consistent manner.
References
OSWER Directive 9200.0.21, "National  Consistency in Superfund Remedy
Selection."
                               OSWER Directive 9220.0-26, "National Remedy Review Board, Progress
                               Report: Fiscal Year 1997" (February 1998).

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                                                                                              7-9
7.1.G      Innovative
         Technologies
7.1.H              ROD
           Delegation,
       Consultations,
         and Briefings
"Rules of Thumb for Superfund Remedy Selection," EPA 540-R-97-013.
OSWER Directive 9200.1-18FS, "Consolidated Guide to Consultation
Procedutes for Superfund Response Decisions" (May 14, 1997).
OSWER Directive 9220.0-24, "National Remedy Review Board, Progress
Report: Fiscal Year 1996" (January 1997).

New and innovative technologies may be implemented at a site when there
is potential for the developing technology to produce comparable or
superior results or implementability, fewer or less adverse impacts than other
approaches, or lower costs for the same level of performance. To encourage
these technologies, EPA has expanded indemnification coverage to include
both die prime contractor and the innovative technology contractor. The
cost of a failed response action will be shared in an amount equal to 50
percent of the estimated cost  of the failed innovative response action, 50
percent of the actually incurred cost of the failed innovative response action,
or $ 10 million, whichever is less.
References
"Guidance on Innovative Technology Risk Sharing," EPA 542-B-98-005.
NCP, 40 CFR section 300.430 ("Remedial Investigation/Feasibility Study
and Selection of Remedy") (1990).        ;

In general, Headquarters has  delegated the authority to sign RODs to the
Regional Administrator (RA). In some circumstances, consultation widi
Headquarters or cross-regional review groups is required, and extra time
should be built into the decision-making process to allow for review and
comment resolution. A comprehensive fact sheet has been developed to
summarize these consultation requirements.
Reference
                              OSWER Directive 9200.1-18FS, "Consolidated Guide to Consultation
                              Procedures for Superfund Response Decisions" (May 14, 1997).

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  7-10     Selection of Remedy
7.2
7.2.A
 Review
of RI/FS
Procedures  and  Interactions
This section discusses the steps in the decision-making process required to
fulfill the mandates of the NCR

The RI/FS provides the decision maker with an assessment of the extent
and nature of the contamination at the site or of an Operable Unit (OU) of
the site, an assessment of current and potential risks posed by the site or OU
to human health and the environment, a description of alternative remedies,
and a comparison of alternatives based on the nine criteria. In addition, the
RI/FS identifies the performance levels each alternative is expected to attain
to ensure protection of human health and the environment. The lead
agency must confirm that there is sufficient information to support die
selection of a preferred alternative when  reviewing the RI/FS data, and
should require further study if the information is insufficient. While PRPs
may be involved in the RI/FS process, they are not die decision makers in
selecting a remedy under CERCLA.  The lead agency must select the
preferred alternative and the ultimate remedy (see the discussion  in section
4 of this chapter, "Potential Problems/Resolutions").
EPA's RPM should ensure that proper Remedial Action Objectives are
chosen and diat die proper alternatives pass the screening. Because EPA is
required to sign off on any Fund-financed  remedy, the  RPM should take an
active role even at state-lead sites.
For sites where lead is present, the Technical Review Workgroup  (TRW),
consisting of experts in lead toxicity and exposure assessment, is available for
information and advice on a wide  range of lead-related issues. The TRW
must also be consulted when die Integrated Exposure Uptake Bio-Kinetic
model  or odier models are employed.
Before  completing die RI/FS report, the RPM should consult with the state
in examining the findings of the comparative analysis.  EPA then makes a
preliminary determination of die preferred alternative.
References
Administrative Reforms, Round 3, Reform 6C, "Utilize Expert Workgroup
on Lead."
"Rules  of Thumb for Superfund Remedy Selection," EPA 540-R-97-013.
OSWER Directive 9200.1-18FS, "Consolidated Guide to Consultation
Procedures for Superfund Response Decisions" (May 14, 1997).
OSWER Directive 9355.4-23, "Soil-Screening Guidance: User's  Guide"
(April 1996).
OSWER Directive 9835. l(c), "Guidance on Oversight of Potentially
Responsible Party Remedial Investigations and Feasibility Studies," Volume
       7, 1991).
                               OSWER Directive 9835. l(d), "Guidance on Oversight of Potentially
                               Responsible Party Remedial Investigations and Feasibility Studies," Volume
                               2 (July 7, 1991).

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                                                                                              7-11
7.2.B    Preparation
          of Proposed
                     Plan
OSWER Directive 9355.3-1 IPS, "Streamlining the RI/FS for CERCLA
Municipal Landfill Sites" (September 1990).
OSWER Directive 9285.7-05FS, "Guidance for Data Usability in Risk
Assessment" (September 1990).
OSWER Directive 9355.0-27FS, "A Guide to Selecting Superfund
Remedial Actions" (April 1990).
OSWER Directive 9255-3-01FS4, "Feasibility Study - Detailed Analysis of
Remedial Action Alternatives" (March 1990).
OSWER Directive 9380.3-02FS, "Treatability Studies Under CERCLA: An
Overview" (December 1989).
OSWER Directive 9285.7-01 A, "Risk Assessment Guidance for Superfund:
Volume 1 - Human Health Evaluation Manual (Part A)" (December 1989).
OSWER Directive 9285.7-0IB, "Risk Assessment Guidance for Superfund:
Volume 1 - Human Health Evaluation Manual (Part B)" (December 1989).
OSWER Directive 9285-7-OlC, "Risk Assessment Guidance for Superfund:
Volume 1 - Human Health Evaluation Manual (Part C)" (December 1989).
OSWER Directive 9355.3-01FS1, "Getting Ready: Scoping the RI/FS"
(November 1989).
OSWER Directive 9355.3-01 FS2, "Remedial  Investigation - Site
Characterization and Treatability Studies" (November 1989).
OSWER Directive 9355.3-01FS3, "Feasibility Study - Development and
Screening of Remedial Action Alternatives" (November 1989).
OSWER Directive 9355.3-02, "Interim Final  Guidance on Preparing
Superfund Decision Documents" (July  1989)  (comprehensive update
anticipated in FY99).
OSWER Directive 9355.3-06, "RI/FS Improvements: Phase II Streamlining
Recommendations" (January 1989).
OSWER Directive 9335.3-01, "Guidance for  Conducting Remedial
Investigations and Feasibility Studies" Interim  Final (October 1988).
OSWER Directive 9835.1 A, "Interim Guidance on PRP Participation in
the RI/FS Process" (May 16, 1988).
OSWER Directive 9834.10, "Interim Guidance on Notice Letters,
Negotiations, and Information Exchange" (October 19, 1987).

Section 300.430 (0(2) of the NCP requires die lead agency to issue a
Proposed Plan that identifies its preferred remedial alternative. The
Proposed Plan highlights information about the site, remedial alternatives
evaluated in the RI/FS report, and the preferred alternative.  It also describes
opportunities for public input and requests comments from  the community
on each of die remedial options.

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  7-12     Selection of Remedy
7.2.B.1
     Format of
Proposed Plan
7.2.B.2
      Contents
   of Proposed
            Plan
References
OSWER Directive 9335-3-02FS-2, "A Guide to Developing Superfund
Proposed Plans" (November 1989).
OSWER Directive 9355.3-02, "Interim Final Guidance on Preparing
Superfund Decision Documents" (October 1989) (comprehensive update
anticipated in FY99).

The lead agency may issue the Proposed Plan in a fact sheet format.  If,
however, the Proposed Plan presents complicated remedial options or
involves a site that has sparked public controversy, the lead agency may
consider issuing the plan in an expanded format. In eidier case, the agency
should write it in a style that is informative and readily understandable by
die public. It may be helpful to have the Community Involvement
Coordinator review the format of the plan before it is issued. The plan
must retain enough detail so that die problem to be addressed at the site
and die  options for solving it are clearly identified.
The Proposed Plan should address the following topics:
   •   Statement of document's purpose.
          Describes functions of plan.
          Directs public to RI/FS.
          Solicits input on all alternatives.
   •  Site background.
          Gives physical description.
          Explains site remedial, enforcement, and operational history.
          Identifies lead and support agencies.
   •  Role and scope of OU or response action.
   •  Summary of site risks.
          Identifies chemicals of concern.
          Identifies exposure scenarios.
          Summarizes current and potential site risks.
   •  Summary of alternatives.
          Describes alternatives evaluated in detail, including cost and
          implementation time and whether ARARs will be met or
          waived.
   •  The preferred alternative and evaluation of alternatives.
          Identifies preferred alternative.
          Lists evaluation criteria.
          Profiles performance of preferred alternatives against evaluation
          criteria; highlights trade-offs with respect to other options.
          Describes and gives justification for any ARARs waivers.

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                                                                                                7-13
7.2.C State/Federal
                      and
           Public Input
          on Preferred
            Alternative
          Describes means of implementing institutional controls.
          Indicates preliminary determination of compliance with statu-
          tory requisites.
   •   Community involvement.
          Identifies locations, times, and dates of comment periods and
          public meetings.
          Identifies location(s) of AR.
          Lists names and numbers of government contacts.
          States whether special notice was issued.
References
OSWER Directive 9335-3-02FS-2, "A Guide to Developing Superfund
Proposed Plans" (November 1989).
OSWER Directive 9355.3-02, "Interim Final Guidance on Preparing
Superfund Decision Documents" (October 1989) (comprehensive update
anticipated in FY99).

The following is a general discussion of the process for coordinating federal,
state, public, and PRP input on the remedial alternatives and preferred
option described in the Proposed Plan.
When EPA selects a preferred alternative at a PRP-lead site, an opportunity
for review and comment on all alternatives should be provided to
Headquarters program offices and other federal agencies prior to the release
of the Proposed Plan for public comment. If the preferred alternative costs
more than $30 million, or if the action costs more than $10 million and
this cost is 50 percent greater than that of the least costly,  protective cleanup
alternative, then the NRRB will review the proposed cleanup decision. The
RPM should also seek substantial input from the state and state agencies.
Early state involvement improves the Superfund program's ability to
facilitate concurrence on the selected remedy.
State-lead sites fall into two categories: sites where EPA has provided
funding and retains the right to select the remedy, and sites where EPA is
not involved.  At sites in the first category, if the state is the lead and EPA
does not concur with the state s preferred alternative, EPA can assume the
lead for the ROD and proceed through the design stage. Such instances do
not occur often.  In the second category, the state should be reminded that
EPA is not bound by the remedy selection unless EPA signs the ROD or
concurs on it.  The state should send copies of the RI/FS report and draft
Proposed Plan to appropriate state and federal program offices. The RPM
should ensure consistency with CERCLA and the NCP, sufficiency of die
AR, and technical backup for the RI/FS, including Quality Assurance/
Quality Control (QA/QC) and treatability testing.
References
                                OSWER Directive 9200.1-18FS, "Consolidated Guide to Consultation
                                Procedures for Superfund Response Decisions" (May 1997).

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  7-14     Selection of Remedy
7.2.D
7.2.D.1
Public Input
             on
    Remedial
Alternatives
         Public
         Notice
7.2.D.2
         Public
       Meeting
7.2.D.3
         Public
     Comment
         Period
OSWER Directive 9355.3-02, "Interim Final Guidance on Preparing
Superfiind Decision Documents" (October 1989) (comprehensive update
anticipated in FY99).

The lead agency must make the Proposed Plan available to the public and
announce its availability. A notice must be placed in a local newspaper of
general circulation.  In addition, the lead agency should notify the public of
opportunities and resources for community input in order to prepare
concerned citizens for an upcoming public comment period.

The lead agency presents information to the general public on the Proposed
Plan and upcoming public comment period primarily by placing a public
notice or advertisement in a local newspaper. In addition, EPA guidance
suggests announcing the availability of the RI/FS and Proposed Plan by
sending notices to all persons on the community involvement mailing list,
including PRPs. The lead agency may also wish to send out fact sheets or
letters to persons on the list or distribute copies of the Proposed Plan.
References
OSWER Directive 9355.3-02, "Interim Final Guidance on Preparing
Superfund Decision Documents" (Octoberl989) (comprehensive update
anticipated in FY99).
OSWER Directive 9836.2, "CERCLA Community Relations Mailing List"
(February 6,  1989).
OSWER Directive 9834.10, "Interim Guidance on Notice Letters,
Negotiations, and Information Exchange" (October 19, 1987).

Another source of public input is public meetings. Section 300.430
(f)(3)(I)(D) of the NCP requires that die lead agency provide an
opportunity for a public meeting near the site. The meeting need not take
the form of a public hearing. No single meeting format is appropriate for
all Superfund sites; however, the agency is required to keep transcripts of
public meetings concerning the RI/FS and Proposed Plan.

The lead agency solicits public participation in the remedy selection process
by holding a public comment period on the Proposed Plan, and frequently
on die RI/FS. During the comment period, the public, including PRPs,
may submit written statements or verbal comments containing information
for the lead agency to consider when selecting a remedial alternative.
Statements and comments may be presented at a public meeting orally or in
writing, and written statements may be submitted direcdy to the lead
agency.
Section 300.825(c) of die NCP addresses die issue of comments received
after the public comment period has ended. A detailed consideration of die
comment is required if die comments contain significant information, die
information is not contained elsewhere in die AR file, die information
could not have been submitted during die public comment period, or die
information substantially supports the need to significandy alter die

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                                                                                                 7-75
7.2.D.4  Administrative
                    Record
7.2.D.5
           PRP
Participation
response action.  Other comments not meeting these criteria should still be
addressed in order to demonstrate that EPA has properly reviewed each
comment and to provide feedback to stakeholders. These comments need
only be presented in a simple response document outlining the NCP criteria
and the basis for not considering the comments. For a detailed discussion of
community involvement requirements, consult Chapter 13, Community
Involvement.
Many piloted activities provide opportunities for more public input. EPA is
currently evaluating the impacts that enhanced involvement has on the
settlement negotiation process, remediation planning studies, and cleanups
themselves.
References
Administrative Reforms, Round 2, Reform 6 ("Community Involvement in
the Enforcement Process Pilots").
Community Relations in Superfund: A Handbook, EPA/540/R-92/009.
NCP, 40 CFR section 300.430 ("Remedial Investigation/Feasibility Study
and Selection of Remedy") (1990).

At various times during the RI/FS and ROD process, public notices are
issued that refer interested persons to the AR file for information. The AR
includes all documents that the agency considered or relied on to select the
RA.  The record file will be located at die regional office and at an
information repository at or near the site to facilitate review.
The lead agency compiles and maintains die AR file. Complete
documentation in die AR file is essential to demonstrate that the agency
considered all relevant information and provided a contemporaneous
explanation of its decision making, as this is die record that will used in any
judicial review of die decision (see Chapter 15, Records Management, for
more information on the AR). Exhibit 7-2 identifies die documents that
the agencies should place in the AR file during die remedy selection process.
Reference
OSWER Directive 9833.3A-1, "Final Guidance on Administrative Records
for Selection of CERCLA Response Actions" (December 3, 1990).

The lead agency, and not a PRP, must compile die AR. In  some
circumstances, however, PRPs may assist in maintaining the AR and in
conducting community involvement activities. PRPs may  house the AR file
at or near the site, provided that it is maintained in a location open to the
public and kept in a manner that would not discourage public participation.
It is the lead agency's responsibility, however, to maintain the record index
and to  decide which documents to include in the record and which
documents to transmit to  the PRPs for inclusion in the record.  PRP
activities, with respect to community involvement activities, may include
assisting at public meetings and providing fact sheets, subject to the lead
agency's approval and oversight. The CIP should reflect the fact that PRPs
are helping conduct public information activities.

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  7-16     Selection of Remedy
7.2.E
  Preparation
    for RD/RA
Negotiations
7.2.F
           Final
 Selection of
     Preferred
   Alternative
It is important to prepare for negotiations before the ROD is signed.  Once
the ROD is signed at a federal-lead site, EPA may negotiate with the PRPs
over implementation of the Remedial Design/Remedial Action (RD/RA), as
appropriate. At a state-lead site, EPA is not required to conduct the
negotiations. If Fund monies will be requested by the state, however,
negotiations will precede the obligation of funds unless there is good reason
for not negotiating.
In accordance widi CERCLA, EPA may, at its discretion, send a Special
Notice Letter (SNL) to the PRPs. The notice letter triggers a 60-day
moratorium on EPA-conducted RA activities. If the PRPs submit a good
faith offer for conducting the work during the 60-day time frame, the
moratorium continues for another 60 days while EPA evaluates the offer
and finalizes negotiations (see Chapter 8, RD/RA Negotiations/Settlement,
for a detailed description of the appropriate circumstances and procedures
for conducting RD/RA negotiations).
In addition to notifying die PRPs that the moratorium has been invoked,
the negotiation team must notify other parties as well. The RPM must
notify state representatives and state or federal natural resource trustees.
This notification should include a copy of the SNL and a list of the parties
receiving it. The RPM should submit at this time the notice letter and the
list to the AR coordinator for inclusion in the AR.
Reference
OSWER Directive 9834.10,  "Interim Guidance on Notice Letters,
Negotiations, and Information Exchange" (October 19, 1987).

At the end of the public comment period, EPA re-evaluates its preferred
alternative on die basis of comments and new information received from the
public, including PRPs.  As a result of this information, the Agency may
elect to adopt the preferred remedy as originally proposed, modify a
component of die preferred remedy,  or select a different remedy.  If the site
is state-lead and EPA does not agree with the states preferred remedy, EPA
must advise the state, in writing, that EPA is not bound by die state's
decision.
If the lead agency modifies its original preferred alternative, it must examine
die extent of the change.  Some changes must be discussed in  die ROD;
more significant changes may require additional opportunity for public
comment.
Reference

OSWER Directive 9355.3-02, "Interim Final Guidance on Preparing
Superfund Decision Documents" (October  1989) (comprehensive update
anticipated in FY99).

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                                                                                      7-17
7-2    Contents of the Administration Record
  The record file for a response action will typically, but not in all cases, include the documents
  listed below. Documents that are relevant only to removal response actions are indicated in
  brackets.

  Factual Information/Data

     •  Preliminary Assessment report
     •  Site Investigation report
     •  Approved Remedial Investigation/Feasibility Study (RI/FS) work plan
     •  Amendments to final RI/FS work plan
     •  Sampling and Analysis Plan consisting of a Quality Assurance Project Plan and a Field
       Sampling Plan
     •  Validated sampling and analysis data
     •  Chain of custody forms
     •  Inspection reports
     •  Data summary sheets
     •  Technical studies
     •  Endangerment assessment/risk assessment
     •  Summary of remedial action alternatives (used in conjunction with early Special Notice
       Letters)
     •  RI/FS
     •  Engineering Evaluation/Cost Analysis (EE/CA) [Removal]
     •  Factual information submitted by the public (including PRPs)

  Policy and Guidance

     •  Memoranda on policy decisions (site-specific, issue-specific)
     •  Guidance documents
     •  Technical literature

  Public Participation

     •  Community Involvement Plan
     •  Newspaper articles
     •  Proposed Plan
     •  Public notices
     •  Community involvement mailing list and document sent to persons on this list
     •  Documentation of public meetings
     •  Public comments
     •  Transcript of public meeting on RI/FS and Proposed Plan
     •  Responses to state and other federal agency comments

  Other Party Information

     •  Documentation of state involvement
     •  ATSDR health assessment
     •  Natural resource trustees, findings of fact and final reports

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  7-18    Selection of Remedy
7-2 (cont.)   Contents of the Administration Record
  Enforcement Documents (Only if considered or relied on in selecting the response action)

     •  Administrative Orders
     •  Consent Decrees
     •  Affidavits
     •  Notice letters to PRPs containing relevant factual information not included elsewhere in
       the record file
     •  Responses to notice letters
     •  Section 104(e) information requests
     •  Responses to section  104(e) information requests

  Decision Documents

     •  ROD, including responsiveness summary
     •  Amended ROD
     •  Explanation of Significant Differences
     •  Action Memorandum [Removal]
     •  Amended Action Memorandum [Removal]
     •  EE/CA Approval Memorandum [Removal]
7.2.G Preparation Of   After the Agency re-evaluates the chosen alternative, a draft ROD is
             Hfoft ROD   prepared. The ROD serves as the official Agency Decision Document
                             (DD) on the selection of a remedy that makes all determinations and
                             findings required by statute and regulation.

 7.2.G.I    Components   RODs consist of three basic components:
                  of ROD
                                •  Declaration - functions as an abstract for the key information
                                   contained in the ROD and is the authorizing section of the ROD
                                   signed by the EPA RA, Assistant Administrator (AA) of OSWER, or
                                   other delegated official when all sections have been completed.

                                •  Decision Summary - provides an overview of the site characteristics,
                                   alternatives evaluated, and analysis of each option, and explains how
                                   the selected remedy meets the statutory and regulatory requirements.

                                •  Responsiveness Summary - provides an overview and analysis of
                                   information and comments received on the Proposed Plan, RI/FS
                                   report, and other information in the AR.  It demonstrates how
                                   comments were integrated into decision making and provides a
                                   formal response to comments.
                             The following discussion highlights the process for compiling a ROD and
                             the elements of each section.

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                                                                                                 7-19
 7.2.G.1.A    Declaration
7.2.G.1.B
  Decision
Summary
7.2.G.1.C Responsiveness
                  Summary
References
OSWER Directive 9355.3-02FS-3, "A Guide to Developing Superfund No
Action, Interim Action, and Contingency Remedy RODs" (April 1991).
OSWER Directive 9335-3-02FS-1, "A Guide to Developing Superfund
Records of Decision" (November 1989).
OSWER Directive 9355.3-02, "Interim Final Guidance on Preparing
Superfund Decision  Documents" (Octoberl989) (comprehensive update
anticipated in FY99).

The Declaration section of the ROD is signed by the EPA RA, the AA of
OSWER, or other delegated official. The support agency must also be given
the opportunity to concur with the remedy selected and, if appropriate, to
co-sign the ROD. It provides a brief description of the selected remedy and
the scope and role of the response action.  The Declaration should
summarize information supporting the determination that the selected
remedy meets all statutory requirements and preferences or explain why it
does not. The Declaration should contain a statement regarding any ARAR
waivers. The determination of imminent and substantial endangerment also
should be included in die Declaration, unless the ROD is for a no-action
decision.

The Decision Summary should provide an overview of the site-specific
factors and analysis that led to selection of die remedy.  Generally, this
section should include the following:

   •   Site name, location, and description.
   •   Site history and enforcement activities.
   •   Highlights of community participation.
   •   Scope and role of the OU or response action.
   •   Site characteristics.
   •   Current and potential future site and resource uses.
   •   Summary of site risks.
   •   Remediation  objectives.
   •   Description of alternatives.
   •   Summary of die comparative analysis of alternatives.
   •   Selected remedy.
   •   Statutory determinations.
   •   Documentation of significant changes.
For no-action RODs, diis DD outline is abbreviated.

The final component of the ROD is the Responsiveness Summary, which
serves two purposes.  First, it provides information  on community
acceptance of the preferred remedy, which is considered by Agency decision

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  7-20     Selection of Remedy
7.2.G.2
       Changes
       from the
Proposed Plan
    to the ROD
7.2.H State/Federal
          Consultation
           on Selected
                Remedy
makers in reaching a decision on a remedy. It also constitutes a freestanding
document explaining how the Agency solicited and responded to
community concerns, and is written after the Agency has chosen a remedy
in response to public comments. The Responsiveness Summary should be
both concise and complete.
It is important diat each significant comment received by EPA during die
public comment period be provided a thorough examination and response.
Agency policy, discussed in response to comments, must be reviewed by
management before it is  incorporated into a final Responsiveness Summary.

Significant changes from the preferred alternative that could have been
reasonably anticipated by the public, such as substantially modifying or
selecting a different RI/FS alternative, must be documented and explained
in die documentation of significant changes section of the ROD. Non-
significant changes should be documented in the description of alternatives
section of the  ROD.  Significant changes may relate to the scope,
performance, or cost of die remedy as follows:

  •   Scope - changes that substantially alter the type of treatment or
      containment technology, address a greater volume or type of waste, a
      new environmental padiway or medium, or encompass a substan-
      tially greater physical area of the site.
  •   Performance - changes in treatment technologies or processes that
      alter die long-term effectiveness of the remedy, have different short-
      term effects, or provide a different level of performance.
  •   Cost - changes that significantly alter die  capital or operation and
      maintenance cost estimates for die selected remedy.  Feasibility study
      cost estimates are expected to provide an accuracy between plus 50
      percent to minus  30 percent.

If a change could not reasonably have been anticipated by the public, EPA
must seek additional public comment on a revised Proposed Plan.  An
example of a change that could not reasonably have been anticipated is
selection of a new alternative not previously analyzed.
References
OSWER Directive 9355.3-02FS-4, "A Guide to Addressing Pre-ROD and
Post-ROD Changes" (April 1991).
OSWER Directive 9355.3-02, "Interim Final Guidance on Preparing
Superfund Decision Documents" (October 1989) (comprehensive update
anticipated in FY99).

Once die draft ROD is complete, die lead and support agencies will brief
dieir own management on die ROD. As outlined in section 300.515
(e)(2)(iii) of die NCP, die lead agency will submit die ROD to die support
agency, which should be  allowed at least 10 working days to examine die
ROD, unless the CA or SMOA specifies a different period. Both agencies

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                                                                                                  7-21
                                will submit the ROD for review by the support program offices. Each
                                agency determines its own period for interagency review.
                                In particular, lead and support agencies should get the input of regional and
                                state counsel. An area of potential dispute with the state is the
                                determination of which requirements are relevant and appropriate. It
                                should be stressed to the state that relevant and appropriate determinations
                                should make sense in light of the circumstances of the release at the site.
                                Regions should review the consultation guide to determine when
                                consultation widi Headquarters is necessary.
                                References
                                OSWER Directive 9200.1-18FS, "Consolidated Guide to Consultation
                                Procedures for Superfund Response Decisions" (May 14, 1997).
                                NCP, 40 CFR section 300.430 ("Remedial Investigation/Feasibility Study
                                and Selection of Remedy") (1990).
                                NCP, 40 CFR section 300.515 ("Requirements for State Involvement in
                                Remedial and Enforcement Response") (1990).
                                OSWER Directive 9355.3-02, "Interim Final Guidance on Preparing
                                Superfund Decision Documents" (Octoberl989) (comprehensive update
                                anticipated in FY99).

7.2.1    ConCUrrenCG    The agency that takes the lead responsibility for preparing the ROD actively
                                seeks concurrence from  the support agency.  State-lead remedial actions
                                conducted under federal authority require EPA signature. State-lead
                                remedial actions at an NPL site that are conducted under state authority and
                                with state funding may, but need not, include an EPA concurrence.
                                Federal-lead RAs at an NPL site that are conducted under EPA authority
                                may, but need not, include a  state concurrence. Concurrences become part
                                of the ROD Declaration.
                                While EPA may execute a ROD widi a remedy to which the state will not
                                agree, or on which it has yet to comment officially, EPA should anticipate
                                the consequences. First, for a Fund-lead action, it is unlikely that a state will
                                pay for part of die RA and Operations and Maintenance if it disagrees with
                                the remedy.  Second, state non-concurrence may adversely affect settlement
                                negotiations, and a state may oppose entry of a Consent Decree (CD)
                                premised upon a remedy widi which it  disagrees.  Third, die state may
                                testify on behalf of the PRPs  in a section 106 judicial action.  Fourth, die
                                state may not grant necessary permits for off-site activities (e.g., Publicly
                                Owned Treatment Works disposal, transportation of wastes, and off-site
                                treatment). Nonetheless, in some instances EPA may sign a ROD over state
                                objections (refer to the Potential Problems/Resolutions section of this
                                chapter for a discussion  of possible approaches to be considered if die state
                                and federal agencies prefer inconsistent alternatives and have difficulty
                                reaching concurrence).

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 7-22     Selection of Remedy
7.2.J
Briefing and
   Signature
7.2.K
        Notice
7.2.L
   Post-ROD
     Changes
When the state completes a ROD, preferably the state director and the EPA
RA or other delegated official should sign it. Where there are disagreements
and EPA provided funding for the RJ/FS, EPA may assume the lead on a
ROD and sign it without state agreement.  No state signature is required on
an EPA-lead ROD.  All RODs conducted under federal authority will be
signed by the EPA RA or the AA of OSWER, if necessary, as specified in the
delegation report.

Pursuant to section 300.430 (f)(6)(i) of the NCP, the lead agency will
publish notice of the final RA plan.  The notice will be published in a major
local newspaper of general circulation. CERCLA also requires that the
agency make the ROD available to the public before any RA begins.  The
final version of the ROD, including the Responsiveness Summary, must be
included in the AR.

EPA may receive new information that leads to an alteration of the remedy
specified in the ROD. Such new information may include characterization
or volume of contamination present at the site, new expectations regarding
the performance of selected technologies under site-specific conditions, or a
change in clean up requirements (ARARs). A ROD Amendment,
Explanation of Significant Differences (ESD), or memorandum to the file
may be required depending on the nature of the post-ROD change.
A reform to update remedies was undertaken specifically to encourage
appropriate changes in RAs in response to advances in remediation science
and technology. Appropriate changes should reduce the cost or time
involved. If a  remedy update is to occur, EPA must evaluate the
contemplated  change to determine the procedures it must follow. Three
categories of post-ROD changes exist:

   •   Non-significant differences - minor changes diat do not signifi-
      cantly affect the overall scope, performance, or cost  of the alternative,
      such as minor technical or engineering changes.
   •   Significant differences to a component of the remedy - changes
      that significantly affect the overall scope, performance, or cost of the
      alternative, but do not alter the overall waste management approach,
      such as changes to ARARs, timing, cost, or implementation.
   •   Fundamental changes to the overall remedy - changes that alter
      the overall  waste management approach, such as substitution of a
      containment remedy for a treatment remedy.
References
OSWER Directive 9355.3-02FS,  "A Guide to Addressing Pre-ROD and
Post-ROD Changes" (April 1991).
OSWER Directive 9355.3-02, "Interim Final Guidance on Preparing
Superfund Decision Documents"  (Octoberl989)  (comprehensive update
anticipated in  FY99).

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                                                                                            7-23
7.3

7.3.A      Reporting
        Requirements
 7.3.A.I  Submission of
             Documents
7.3.A.2     Information
              Databases
7.3.A.3 Implications of
            Submissions
7.3.B         Planning
        Requirements
7.3.C     Contractor
         Participation
Planning  and Reporting Requirements

This section discusses RPM planning and reporting requirements for the
selection-of-remedy phase of the Superfund program.

In addition to referring documents to EPA program offices for review, the
lead agency must submit them to EPA Headquarters in order to receive
credit for its accomplishments. The lead agency must also send to
Headquarters a hard copy of the ROD and a copy of the ROD text on disk
in order to receive credit for  an initial, subsequent, or final RI/FS
completion.

The lead agency has responsibility for enabling EPA to track
accomplishments at the site,  such as submission of the  draft FS to die
public. The lead agency discharges diis responsibility by providing
information on selection of remedy activities to EPA databases. The RPM is
responsible for ensuring tliat accurate information on ROD start and
completion dates goes into the Comprehensive Environmental Response,
Compensation, and Liability Information System 3/Waste Local Area
Network (CERCLIS 3/WasteLAN).

The information supplied by the lead agency about RI/FS completion/ROD
submission has many important implications.  The program planning and
budgeting processes use diis  information. The planning processes for RD/
RA negotiations, design funding, and section 106 injunctive cases also rely
on this information. The lead agency must make every effort to ensure the
accuracy of the data and to achieve ROD completion by that time.

The enforcement budget should include an estimate of the dollars needed to
negotiate and obtain commitments from PRPs to perform or pay for the
response action.  The RPM must also work closely with regional counsel
and the Department of Justice to determine any budgeting needs to carry
out case management strategy. This may include budgeting for a CERCLA
section 106/107 action or specialized RD/RA negotiation tasks, such as
Alternative Dispute Resolution (ADR), efforts to allocate responsibility,
orphan share determination, and peripheral setdements such as de minimis,
"de micromis," and findings  on Ability to Pay. Response budgeting
requirements might involve implementation of a CIP and/or oversight or
implementation of a PRP-lead RD or a Fund-financed RD/RA.

As discussed in Chapter 6, RI/FS Implementation, EPA may reserve parts of
the RI/FS for its own conduct, or may perform parts when PRPs do not do
so satisfactorily.  Contractors may assist in these endeavors. Contractors also
may assist in providing community involvement activities, with the approval
of die lead agency.  Contractors may assist further by drafting
straightforward portions of die ROD package (e.g., site history, description
of contamination), by providing technical assistance in preparation of die
Responsiveness Summary, aldiough the accuracy of these documents

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7-24    Selection of Remedy
                              remains the responsibility of the lead agency, and by conducting ADR
                              where there are issues between the lead agency, PRPs, and/or the
                              community regarding the preferred remedy.  Finally, contractors may assist
                              the lead agency in providing meetings and briefings for agency
                              management.

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                                                                                             7-25
7.4
7.4.A
PRPs' RI/FS
   Suggests
   Preferred
     Remedy
7.4.B
   Extensive
        Public
  Comment
7.4.C
    Disputes
   over ROD
Potential Problems/Resolutions

This section discusses problems commonly encountered by lead agencies
during die selection-of-remedy process.  It suggests mediods that agency
personnel have found helpful in solving these problems.

The FS should not recommend a remedy; it provides information
impartially on all viable alternatives considered. The Proposed Plan should
contain this recommendation. If one is favored and not ultimately selected,
an FS amendment would be required. More importantly, pre-selection of a
remedy is implied, which arguably causes due process concerns since public
participation and support agency input are still pending. The best means of
avoiding this problem is prevention. The lead agency should provide
effective oversight of the RI/FS process,  and may have to supplement the
RI/FS to avoid bias. The selected remedy must be well-founded on data
that exist in die AR,
References
OSWER Directive 9835. l(c), "Guidance on Oversight of Potentially
Responsible Party Remedial Investigations and Feasibility Studies," Volume
1 (July 1991).
OSWER Directive 9835. l(d), "Guidance on Oversight of Potentially
Responsible Party Remedial Investigations and Feasibility Studies," Volume
2 Quly 1991).
OSWER Directive 9835.la, "Interim Guidance on PRP Participation in the
RI/FS Process" (May 16, 1988).

The public may strongly advocate or discourage specific alternatives due to
health concerns, property value issues, or employment. The agency should
anticipate this situation and plan community involvement activities to
receive input from many citizens at an early date, thus getting conflicts out
in die open quickly and resolving the issues. Otherwise, the public may
provide a sizeable  number of comments during the formal public comment
period, forcing the lead agency to use a substantial amount of time to
respond to the comments, which might throw off its schedule for
completing the ROD. In addition, the lead agency must allow adequate
time for responding to public comments when scheduling financial
commitments.

If the support agency does not concur on the remedy, the  lead agency may
choose to proceed without the ROD. At a non-enforcement, federal-lead
site, the ability to proceed with the RA is contingent upon the availability of
die 10 percent (or 50 percent in the case of state-owned sites) state matching
funds. At a state-lead site, the state may proceed widi a state-funded RD/
RA without EPA concurrence. However, since EPA must certify that the
RA was performed in accordance with the NCP in order to remove the site
from the NPL, the state may have difficulty getting diis certification if EPA

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7-26    Selection of Remedy
                              did not concur on the ROD. At a PRP-lead site, the RD/RA may proceed
                              without state concurrence. Reaching consensus on the RA at ROD
                              signature generally precludes these difficult situations. There may be
                              instances, however, where proceeding with the ROD, despite non-
                              concurrence, is appropriate.

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                                                                                                  7-27
7.5                            Activities Checklist
                                The following checklist is not intended to present an exhaustive set of
                                procedures, nor is it meant to be a chronological list of tasks. RPMs should
                                exercise their professional discretion when deciding what procedures are
                                appropriate for a particular site.
                                Selection of Preferred Alternative
                                1)	    Review RI/FS report. Confirm that diere is sufficient informa-
                                            tion to support the selection of a preferred alternative.  Require
                                            further study if the information is insufficient.
                                2)	    Make a preliminary determination on a preferred alternative.
                                3)	    Consult NRRB if the preferred alternative meets the specified
                                            criteria.
                                4)	    Produce draft version of Proposed Plan diat identifies the
                                            preferred  remedial alternative.
                                5)	    Review and comment on all alternatives proposed by states and
                                            odier federal agencies for PRP-lead sites.
                                6)	    Review operative Remedy Delegation Report to assess whedier
                                            Headquarters review/comment or consultation is needed.
                                7)	    Send draft RI/FS report and draft Proposed Plan to appropriate
                                            program offices.
                                8)	    Review state comments, summarize them in Proposed Plan,
                                            and draft  Agency response.
                                9)	    Finalize Proposed Plan by addressing support agency and other
                                            program office comments as appropriate.
                                10)	   Submit RI/FS, Proposed Plan, comments, and responses to AR,
                                            along with any other information used in reaching decision.
                                11)	   Publish newspaper notices announcing the availability of
                                            resources  for public information, the completion of the Pro-
                                            posed Plan and RI/FS, and  opportunities for community input.
                                12)	   Notify persons on mailing list that Proposed Plan and RI/FS
                                            are complete.
                                13)	   Conduct  public meeting.
                                14)	   Conduct  community involvement activities.
                                15)	   Hold 30-day public comment period (diis may be  extended by
                                            an additional 30 days upon timely request).
                                Final Selection of Remedial Alternative
                                16)	   Re-evaluate preferred alternative on basis of comments and new
                                            information received from the public, including PRPs and
                                            other sources.

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7-28    Selection of Remedy
                              17)	  Prepare draft version of ROD Declaration and Summary.
                              18)	  Prepare Summary and Response to Comments for Responsive-
                                        ness Summary.
                              19)	  Conduct public comment period on any significant changes
                                        which were not logical outgrowths of the earlier remedial
                                        alternatives.
                              20)	  Finalize ROD Summary.
                              21)	  Complete Responsiveness Summary
                              22)	  Brief lead agency management on ROD.
                              23)	  Submit ROD to appropriate offices and support agency, each
                                        of which will brief its management on the ROD.
                              24)	  Seek input from regional counsel.

                              25)	  Seek concurrence or non-concurrence from support agency on
                                        the selected remedy.
                              26)	  Brief agency management and present ROD for signatures.
                              27)	  Publish notice and make ROD available to public through AR.
                              28)	  Provide information on ROD start and completion for enter-
                                        ing into CERCLIS 3/WasteLAN.
                              29)	  Send copy of ROD (hard copy and disk) to Headquarters.

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8. RD/RA Negotiations/
     Settlement

-------
                                                                             8-i
         Chapter 8  RD/RA Negotiations/Settlement
8.1   Description of Activity	1

      8.1.A   Introduction	1
      8.1.B   Statutory Authority	1
      8.1.C   Overview of the Negotiation Process	1
              8.1.C.1   RD/RA Negotiation Plan	1
              8.1.C.2   Pre-Referral Package	3
              8.1.C.3   Formal Settlement Process	3
      8.1.D   Roles and Responsibilities	4
              8.1.D.I   Remedial Project Manager	6
              8.1.D.2   Regional Counsel	6
              8.1.D.3   Office of Site Remediation Enforcement	6
              8.1.D.4   Office of General Counsel	7
              8.1.D.5   Department of Justice	7
      8.1.E   Delegations	7
8.2   Procedures and Interactions	10

      8.2.A   Regional Decision to Pursue RD/RA Negotiations	10
      8.2.B   Negotiation Planning	10
              8.2.B.1   RD/RA Negotiation Plan	10
              8.2.B.2   Draft Consent Decree	12
              8.2.B.3   Covenants Not to Sue	13
              8.2.B.4   Matters Addressed	15
              8.2.B.5   Reopeners	18
      8.2.C   Notification of States and Federal Natural Resource Trustees	18
      8.2.D   Special Notice Letters	18
              8.2.D.1   Contents	18
              8.2.D.2   Cost Recovery	19
              8.2.D.3   Timing the Special Notice Letter	20
              8.2.D.4   Section 122(a)  Letters	20
      8.2.E   Good Faith Offer	20
      8.2.F   Negotiation Extensions	21
      8.2.G   Settlement Incentives/Disincentives	22
      8.2.H   CERCLA Settlement Policy	22
      8.2.I     Settlement Tools	24
              8.2.1.1    Mixed Funding Settlements	24
                      8.2.1.1.1   Preauthorization	26
                      8.2.1.1.2   Mixed Work Settlements	28
                      8.2.1.1.3   Cashout Settlements	28
              8.2.1.2   De Minimis Settlements	29
                      8.2.1.2.1   Eligibility Criteria	29
                      8.2.1.2.2   Necessary Information for Contributor
                                De Minimis Settlements	30
                      8.2.I.2.3   Potential De Minimis Sites...:	30

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 8—ii     RD/RA Negotiations/Settlement Table of Contents
                      8.2.1.2.4   Communication Strategies	30
                      8.2.1.2.5   Timing De Minimis Settlements	31
                      8.2.I.2.6   Cost Reopeners	31
                      8.2.I.2.7   Finalizing Settlement	32
              8.2.1.3   "De Micromis" Settlements	32
              8.2.1.4   Non-Binding Allocation of Responsibility	33
              8.2.1.5   Orphan Share Compensation Policy	34
              8.2.1.6   Special Accounts	35
      8.2.J    Processing Final Settlements	37
      8.2.K    Referral Package	37
      8.2.L    Inducements to Non-Settlors/Enforcement Options	38
              8.2.L.1   Section 106(a) Unilateral Administrative Orders	38
              8.2.L2   Enforcement Discretion	40
              8.2.L.3   Section 106 Litigation	41
              8.2.L.4   Fund	41
              8.2.L.5   Partial Settlements	41
      8.2.M   Post-Referral Actions by the Department of Justice	42
8.3   Planning and Reporting Requirements	44

      8.3.A    Budget Requirements	44
      8.3.B    Reporting Requirements	44
8.4.  Potential Problems/Resolutions	48

      8.4.A    Poor Relations Among the PRPs	48
      8.4.B    Multiple Revisions to Draft Consent Decree	48
      8.4.C    Settling with Major Contributors at De Minimi's
               Settlement Sites	49
      8.4.0    Use of Public Relations	49
      8.4.E    Inadequate PRP Searches	49
      8.4.F    Late Challenges to Volumetric Ranking	50
8.5   Activities Checklist	51

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                                                                                            8-1
           Chapter 8  RD/RA Negotiations/Settlement
8.1
8.1. A   Introduction
8.1.B
   Statutory
   Authority
8.1.C
Overview of
           the
Negotiation
      Process
8.1.C.1
        RD/RA
   Negotiation
           Plan
Description  of Activity

This chapter discusses the process of negotiating for Potentially Responsible
Party (PRP) conduct of the Remedial Design/Remedial Action (RD/RA)
and focuses on the Remedial Project Managers (RPM's) role in that process.
In addition to discussing the RD/RA negotiation process, this chapter
discusses the settlement tools available to EPA and PRPs, including mixed
funding, Non-Binding Preliminary Allocations of Responsibility (NBARs),
and de minimis and "de micromis" setdements. "De micromis" parties are a
subset of de minimis parties; therefore, unless otherwise noted, all RD/RA
negotiation/setdement procedures applicable to de minimis parties will also
apply to "de micromis" parties.

Section 122 of CERCLA requires that all RD/RA setdements with PRPs be
finalized as judicial Consent Decrees (CDs).  CDs usually reference section
106 ("Abatement Actions") and section 122 (Settlements). Settlements for
RD/RA or RA only are never done administratively as an Administrative
Order on Consent (AOC).  Setdements for RD only may take die form of
AOCs. Setdements widi de minimis parties, also may be finalized as AOCs.

The RD/RA negotiation process requires cooperation and close coordina-
tion of the regional program office, regional counsel, the Department of
Justice (DOJ), and die Office of Site Remediation Enforcement (OSRE).
Exhibit 8-1 summarizes the RD/RA negotiation process.
The negotiation  planning process begins widi a regional decision  that there
are PRPs who are liable and financially capable of properly implementing
die remedy and who may be willing to settle. The region must evaluate die
results of die PRP search and odier evidence when making diis decision.
The PRP search  should be completed as early as possible, ideally well in
advance of RD/RA negotiations.  Regions should attempt to begin RD/RA
negotiations concurrendy widi die RD to prevent lag-time between negotia-
tions and die commencement of die RD.
The first step in  die RD/RA negotiation process is for the RPM and
regional counsel  to develop an RD/RA negotiation plan oudining the
negotiation objectives and strategy. This plan is part of integrated remedial
and enforcement planning. As a management device, it will define roles
and responsibilities for all participants, establish mutually agreed timelines
for performance  of individual responsibilities, establish a framework for
accountability in tracking progress, and make it possible to obtain commit-
ments from all participants to shared goals and objectives. Key steps in die
negotiation planning process are ensuring a timely and high-quality PRP
search, including information for special notice and evidence for litigation;
ensuring diat die Administrative Record (AR) is in order; documenting past
costs; and establishing a substantive negotiating strategy.  Use of settlement
devices, such as mixed funding and de minimis, should also be evaluated for

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   8-2       RD/RA Negotiations/Settlement
8-1     RD/RA Negotiation Process
                 Non-viable
          Fund-lead RD/RA
                               No Settlement
        Enforcement Options:

      Section 106 UAO
      Fund implementation
      Referral of section 106 litigation
      Cost recovery (section 107)
                                             Decision to Pursue Negotiations
                                                                             Viable
                                                 Review PRP Search and
                                                 Administrative Record
                                                         I
                                                Develop Negotiation Plan:

                                               Case status
                                               Cost recovery plan
                                               PRP search assessment
                                               Remedy selection plan and
                                               review
                                               Notify trustees
                                               Special notice preparation
                                               CD preparation
                                               Special account disbursement
                                               provisions (if appropriate)
                                               Orphan share compensation (if
                                               appropriate)
                                               Prepare UAO (if appropriate)
                                               EPA Negotiating positions
                                               Negotiation strategy
                                               Enforcement strategy and
                                               schedule
                                               Major milestone schedule
                                               Funding strategy
                                                     Notify States
                                                         1
                                              Work with Steering Committee
                                                  Issue Special Notice
                                                     Receive GFO
                                                         J_
                                                       Negotiate
                                                   Finalize Settlement
                                       PRP Search
                                       Follow-up
                                       Activities
                                       (as needed)
                                     60-day Formal
                                   Negotiation Period
                                  (Consider Settlement
                                         Tools)
                                                                                              60-day Extension
                                    Possible RA and
                                      AA, OSWER
                                       Extensions
                                                                           Partial Settlement
                                                    Full Settlement
i
                                                  Sign Consent Decree
   Enforcement Options:
      (non-settlors)

Section 106 UAO carve put
Referral of section 106 litigation
Cost recovery (section 107)
                  NOTE: This general overview of removal enforcement may not apply in all situations, especially emergencies.

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                                                                                                  8-3
                                appropriateness.  De minimis parties should be removed from the liability
                                system as early as possible (pre-Record of Decision (ROD), if appropriate).
                                By the time the RD/RA negotiation and settlement process begins, most or
                                all PRPs have been notified of their status as PRPs with a General Notice
                                Letter (GNL). Following general notice, EPA continues to look for more
                                PRPs and for hard evidence of liability. If additional PRPs are identified,
                                EPA issues GNLs to them,  as allowed under section 122(a),  unless special
                                notice has been provided or waived. Language can be inserted into GNLs
                                to solicit information about nomination of additional parties. The RPM
                                and regional attorney should encourage the new PRPs' involvement in the
                                negotiations and should notify them of any PRP steering committees that
                                may have formed.
                                The RPM should contact the federal natural resource trustees again (earlier
                                contact will have  occurred prior to the RD/RA negotiation planning
                                process) when developing the negotiation plan to  ensure their input to the
                                plan.  Coordination with the state is important when developing the RD/
                                RA  negotiation plan to ensure that the states concerns are understood and
                                to determine the availability of state funding should negotiations fail to
                                produce a setdement.

8.1 .C.2               Pte-    A pre-referral package should be submitted to DOJ (with copies to OSRE)
                   Referral    before the commencement of the formal settlement process to ensure timely
                  Package    involvement of and coordination with DOJ. Generally, the pre-referral
                                package should be provided to DOJ at least 60 days prior to the issuance of
                                the RD/RA Special Notice Letters (SNLs).
                                As a practical matter, it is advisable to commence dialogue  with OSRE and
                                DOJ as early as possible, prior to providing the pre-referral for the 60-day
                                review, by conducting a phone conference to obtain their input on a
                                comprehensive setdement strategy from a national perspective.  This
                                perspective sometimes reveals problems diat other regions are incurring with
                                a certain setdement approach. Awareness of these problems may influence
                                the overall setdement strategy and result in a more efficient settlement
                                process.

8.1 .C.3            Formal    The formal settlement process begins with the issuance of SNLs to the
               Settlement    PRPs. SNLs are authorized by CERCLA when EPA determines that a
                   Process    period of negotiation would facilitate an agreement with PRPs for taking
                                response action.  Issuance of special notice should occur between die time
                                the Proposed Plan and draft Feasibility Study (FS) are  released to die public,
                                and die date the ROD is signed, or shortly thereafter.  Exceptions to  diis are
                                discussed later in  diis chapter. A draft CD (approved by appropriate EPA
                                and DOJ management) and Proposed Remedial Action Plan, or proposed
                                or final ROD should be attached to the SNL.
                                With certain exceptions, die issuance of SNLs begins a 60-day moratorium
                                on action under sections 104 and 106 of CERCLA. PRPs  have 60 days
                                from the date SNLs are issued to submit a Good Faith Offer (GFO) to
                                EPA.  If such an offer is received, the moratorium is extended an additional

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           RD/RA Negotiations/Settlement
8.1. D             Roles
                      and
      Responsibilities
60 days. If additional time is necessary, the Regional Administrator (RA) or
his/her delegate may extend the moratorium period for an additional 120-
180 days. Moratorium extensions beyond 120 days should only occur in
exceptional cases. Negotiation schedules should be established quickly and
adhered to as stricdy as possible. To aid in keeping a set negotiation
schedule, RPMs should ensure that dieir expectations are clearly understood
by all the parties involved, including PRP attorneys, regional counsel, and
DOJ.
Once agreement has been reached, die PRPs and the RA must sign a CD.
The CD is then forwarded to DOJ widi a referral package developed by
regional counsel.  If the setdement falls under any of the categories of non-
delegated settlements, OSRE must concur on die signed CD before it is
forwarded to DOJ.  It should be noted diat RD-only setdements may be in
die form of an AOC and can be used to expedite die initiation of response
work. EPA does not encourage RD-only setdements widiout an expecta-
tion that the PRPs will agree to conduct the remedial action.
Should EPA fail  to reach an agreement with die PRPs, die region may issue
a Unilateral Administrative Order (UAO).  If die PRPs fail to comply with
the UAO, EPA may initiate a judicial action (referral to DOJ), and/or
initiate Fund-financed activity. Referrals to DOJ for RD/RA are usually
under die audiority of section 106 of CERCLA. Regions provide litigation
support for die case after it is filed in court by DOJ.
References
Office of Enforcement (OE), "Model CD Implementation" (August 1991).
OE, "Draft CERCLA RD/RA Setdement Negotiations Checklist" (January
26, 1988).
Office of Solid Waste and Emergency  Response (OSWER) Directive
9835.4, "Interim Guidance:  Streamlining die CERCLA Setdement Deci-
sion Process" (February 12, 1987).
OSWER Directive 9834.10, "Interim Guidance on Notice Letters, Negotia-
tions, and Information Exchange" (October 19, 1987).

This section describes die roles and responsibilities of the RPM, regional
counsel, and representatives from OSRE, the Office of General Counsel
(OGC), and DOJ.  The primary activities for each group are summarized
for each phase of die negotiation process below and in Exhibit 8-2.

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                                                                                             8-5
8-2    Roles and Responsibilities


                     RPM


                    •
    NEGOTIATIONS PLANNING

    •  Ensure PRP search review and follow up
       by civil investigator and ORC

    •  Send GNL, if necessary

    •  Coordinate update information exchange
       with the PRPs, including section 104{e)
       jetters and provide the PRPs with
       information regarding other PRPs (in
       conjunction with regional counsel)

    •  Assemble cost documentation

    •  Assist in preparation of negotiation plan
       and pre-referral litigation report

    •  Review administrative record

    •  Comment upon technical provisions of
       consent decree

    •  Develop remedial action plan in
       conjunction with specialized technical
       teams (e.g., ground water, treatment,
       design) or contractors

    •  Notify state and trustees
    INFORMAL AND FORMAL NEGOTIATIONS

    • Send Special Notice Letters (SNLs)

    • Conduct negotiations as lead technical
      representative on the case team

    • Maintain coordination among appropriate
      Headquarters and state and natural
      resource trustee offices

    • Request extensions for negotiations
      from Regional Administrator/
      Headquarters, if necessary

    • Obligate funds from the Trust Fund, if
      appropriate
                 ORC
NEGOTIATIONS PLANNING
   Review strength of evidence of PRP
   liability
   Assist in preparation of the RD/RA
   negotiation plan and pre-referral
   litigation report
   Review draft ROD and administrative
   record
   Draft initial consent decree

   Notify DOJ of the negotiations
INFORMAL AND FORMAL NEGOTIATIONS

•  Draft EPA's negotiation strategy

•  Review the SNL
  Conduct negotiations as the lead legal
  representative
• Redraft consent decree with changes
  resulting from negotiations
• Coordinate with the state legal
  representative

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  8-6     KD/RA Negotiations/Settlement
8.1.D.1
    Remedial
       Project
     Manager
8.1.D.2
     Regional
      Counsel
8.1.D.3
     Office of
           Site
Remediation
Enforcement
The RPM plays a central role throughout the RD/RA negotiation process.
The RPM is responsible for technical aspects of the case and for coordinat-
ing with regional counsel and OSRE during each phase of the negotiations.
Planning, preparing for, and participating in the negotiations process, along
with negotiation coordination, usually involves a substantial time commit-
ment by the RPM over a long period.
The RPM works together with die On-Scene Coordinator (OSC) and
regional counsel to develop the negotiation plan early in the process, before
GNLs are issued. The planning stage is based on a diorough and complete
PRP search. RPMs should always give the PRPs early notice of their
potential liability through GNLs. Information on volumetric rankings of
PRPs and the nature of substances at the site should be included in an RI/
FS special notice.  The RPM ensures diat the PRP search has been updated,
as appropriate, and that special notice for RD/RA is prepared. The RPM
also is responsible for preparation of a negotiation strategy, in conjunction
with regional counsel.  In view of die intense efforts required to prepare the
Proposed Remedial Action Plan, Responsiveness Summary, and ROD, as
much of this work as possible should be done before the Proposed Plan is
prepared. The RPM assists in developing the CD by commenting on the
technical aspects of die document. The RPM also participates in develop-
ing die case referral packages for section 106 and section 107 litigation
cases.
In some regions, an enforcement specialist assists the negotiation team by
helping to prepare GNLs, SNLs, and cost documentation packages, and by
participating in negotiations.

The regional counsel, in partnership with the RPM, plays a central role in
all phases of die RD/RA negotiations. The regional counsel's primary role is
to prepare the pre-referral litigation report to DOJ and die draft CD, and to
provide legal counsel during die negotiation process.  The regional counsel
is responsible for coordinating with DOJ, OSRE, and OGC as appropriate
during die RD/RA negotiations. The regional counsel also participates in
die development of die case referral package for DOJ litigation of section
106 and section 107 cases.

OSRE  is responsible for ensuring national consistency for negotiated
settlements and consistency widi Agency policy. OSRE (specifically die
Regional Support Division (RSD) of OSRE) has regional liaisons, and
OSRE  has designated subject matter experts who are versed in the various
RD/RA setdement tools (e.g., mixed funding, de minimis) and who act as
resources for the RPM and regional counsel.
OSRE  participates in management review of non-delegated settlements.
The Assistant Administrator (AA) of the Office of Enforcement and Com-
pliance Assurance (OECA) or, in some cases, die Director of OSRE, must
concur on  these settlements. Additionally, OSRE representatives may
participate on negotiation teams if complex or nationally significant issues
are anticipated. OSRE also may assist the regions in assembling part of the

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                                                                                                  8-7
8.1.D.4
 8.1.D.5
    Office of
     General
     Counsel
Department
   of Justice
8.1.E    Delegations
cost documentation package. OSRE should be on the case correspondence
list and should be supplied with relevant documents, including pre-referral
litigation reports and draft CDs, relating to cases in RD/RA negotiations.
OSRE is also responsible for ensuring that negotiated settlements are
consistent across the regions with national policy for legal matters.  OSRE
attorneys have expertise in the legal implications of RD/RA settlements, and
they may participate in any negotiations in which complex or nationally
significant issues are anticipated, assist regional counsel in pre-referral
matters, and review referrals sent to DOJ.  OSRE also reviews all CDs
resulting from settlements.

OGC has the sole responsibility for issuing Agency legal opinions and
providing advice on matters of legal and statutory interpretation to the
regions and program offices. If there is a difference of opinion between the
regions or between Headquarters offices, OGC has the ultimate responsibil-
ity for providing legal advice and direction for EPA as a whole.

DOJ's  representative from the Environment and Natural Resources
Divisions Environmental  Enforcement Section is EPA's attorney for the
litigation of Superfund cases. DOJ participates fully in negotiations,
litigation, and enforcement strategy development.  DOJ representatives
participate on the negotiations team. The DOJ attorney represents DOJ
views on die case and is responsible for providing consistency widi and
insight into other enforcement cases. The attorney also provides analysis of
the litigation risks of going to trial. DOJ concurrence is required for all
RD/RA or RA CDs.  At facilities where total Fund response costs exceed
$500,000, DOJ concurrence is also required for CERCLA section 122(h)
cost recovery setdements and section 122(g) de minimis Administrative
Orders (AOs). The DOJ  attorney and appropriate management review the
initial and subsequent drafts of die CD before it is sent to the PRPs. DOJ
case attorneys are essential legal resources for the RPM and regional counsel.
Close coordination and communication with DOJ is important for success-
ful negotiation and litigation of Superfund cases.
The RPM should remember diat die information gathered in the initial
stages of site cleanup, such as information gathered during the PRP search
and in  preparation for RI/FS negotiations, may be used later in litigation
concerning the site.

The Environment and Natural Resources Division's Office of Litigation
Support (OLS) is available to consult with EPA regarding information
management services that are available and how diose services can be
tailored to best serve a situation at a particular site.

The OSRE Memorandum "Revisions to OECA Concurrence and Consul-
tation Requirements for CERCLA Case and Policy Areas" (September 30,
1998) defines the requirements for concurrence, prior written or oral
approval, and consultation that regions must comply with during the RD/
RA negotiations and setdement process. For example, the memorandum

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8-8     RD/RA Negotiations/Settlement
                            specifies that the Regional Administrator may approve RD/RA negotiation
                            moratorium extensions from 120 to 180 days, after, which the prior written
                            approval of the Director/RSD is required for extensions from 181 to 240
                            days, and the prior written approval of the Director/OSRE is required for
                            extensions from 241 to 300 days.  The memorandum also contains the
                            concurrence and consultation requirements for various categories of settle-
                            ments. Because revisions to concurrence and consultation requirements are
                            made frequently, the required concurrence or consultation for a particular
                            negotiation and settlement action should be confirmed in advance. A chart
                            listing designated OSRE staff for specific CERCLA consultations is avail-
                            able from OSRE.
                            References
                            OECA Memorandum, "Revisions to OECA Concurrence and Consultation
                            Requirements for CERCLA Case and Policy Areas" (September 30, 1998).
                            OECA Memorandum, "Supplemental Environmental Projects Policy"
                            (April 10,1998).
                            OSRE Memorandum, "Policy for Municipality and Municipal Solid Waste
                            CERCLA Settlements at NPL Co-Disposal Sites" (February 5, 1998).
                            OECA Memorandum, "Interim Policy on Settlement of CERCLA Section
                            106(B)(1) Penalty Claims and Section 107(c)(3) Punitive Damages Claims
                            for Noncompliance with Administrative Orders" (September 30, 1997).
                            OSRE Memorandum, "General Policy on Superfund Ability to  Pay Deter-
                            minations" (September 30, 1997).
                            OECA Memorandum, "Coordinated Settlement of Parallel Proceedings
                            Interim Policy and Procedures"  (June 9, 1997).
                            OSRE Memorandum, "Transmittal of Sample Notice Letters: 1) Demand;
                            2) General Notice; 3) Special Notice; and 4) Follow-Up 104(e)  Request"
                            Guly 26, 1996).
                            OECA Memorandum, "Office of Enforcement and Compliance Assurance
                            and Regional Roles in Civil Judicial and Administrative Site Remediation
                            Enforcement Cases" (May 19, 1995).
                            OSRE Memorandum, "Model Administrative Order for CERCLA Informa-
                            tion Requests" (September 30, 1994).
                            OSWER Directive 9833.06, "Model Administrative Order on Consent for
                            Removal Response Actions" (March 16, 1993).
                            OSWER Directive 9835.3-2A, "Administrative Order on Consent for
                            Remedial Investigation/Feasibility Study" (July 2, 1991).
                            OSWER Directive 9012.10-1, "Clarification of Delegations of Authority
                            14-14-A, 14-14-B, and 14-14-C Under CERCLA" (April 4, 1990).
                            OSWER Directive 9834.13, "Interim Policy on CERCLA Settlements
                            Involving Municipalities and Municipal Wastes" (December 6, 1989).

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                                                              8-9
OSWER Directive 9834.4A, "Guidance on Use and Enforcement of
CERCLA Information Requests and Administrative Subpoenas" (August
25, 1988).
OSWER Directive 9012.10-a, "Revision of CERCLA Civil Judicial Settle-
ment Authorities Under Delegations 14-13 B and 14-14 E (June 17,
1988).

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  8-10    RD/RA Negotiations/Settlement
8.2
8.2.A
      Regional
      Decision
    to Pursue
        RD/RA
Negotiations
8.2.B
8.2.B.1
 Negotiation
      Planning
          RD/RA
    Negotiation
             Plan
Procedures and Interactions

The regional decision to pursue RD/RA negotiations must be included in
the prior-year Superfund Comprehensive Accomplishments Plan (SCAP)
commitments to allow the Agency to define the resource needs for the
region. Regions should use the annual SCAP process and quarterly updates
to identify those sites that are likely to progress to RD/RA negotiations in
the current fiscal year and the planned fiscal year. Sites at which RODs are
expected are considered the initial pool of prospects for RD/RA negotia-
                               tions.
The RPM and regional counsel are the lead technical and legal negotiators,
respectively, on the negotiation or Case Team.  In addition, the RPM is
usually responsible for developing a budget estimate of post-RI/FS support
needs during RD/RA negotiations. The regional CERCLA section chief
and Case Team have responsibility for notifying federal natural resource '
trustees, states,  DOJ, OSRE, and the relevant technical support personnel
of the region's intent to pursue RD/RA negotiations in the planned fiscal
year. The decision to conduct RD/RA negotiations should be entered as a
planned SCAP  target.
During the RI/FS, and prior to initiation of negotiations for PRP conduct
of RD/RA activities, the negotiation team should review the results of PRP
search activities at the site and identify follow-up activities that may lead to
identification of additional PRPs or improved evidence about the volume,
substances, liability, or financial viability of previously identified PRPs. The
potential role of newly identified PRPs should be considered when develop-
ing the negotiation plan.

Negotiations for which EPA is fully prepared, especially those with well
established plans, schedules, and deadlines, are much more likely to result in
a signed CD than negotiations for which EPA has not adequately planned.
A suggested RD/RA negotiation planning schedule is presented in Exhibit
8-3.  The essential elements of negotiation planning are discussed below.

The RD/RA negotiation plan is one major component of the site manage-
ment plan. The object of the plan is to assist the RPM  in effective manage-
ment of the RD/RA negotiation process and to increase the likelihood of
achieving PRP setdements for RD/RA. The detailed RD/RA negotiation
plan, in combination with the site overview and other existing components
of die site management plan (e.g., the PRP search plan, RI/FS negotiation
plan), should comprise the pre-referral litigation report.
The RPM and regional counsel should prepare an RD/RA negotiation plan
that outlines the negotiation objectives and strategy. The RD/RA negotia-
tion plan is a vehicle to assist in planning specific goals and objectives, and
establishing a schedule for die negotiations. The plan should also serve as a
checklist of steps to be taken in EPA's negotiation process. The plan should
address, at a minimum, the following topics:

-------
                                                                                                 8-11
8-3    Sample RD/RA Negotiation Planning Schedule
                     Activity
          Schedule With Respect
          To Planned Negotiation
                 Start Date
   Assess PRP search


   Request cost recovery documentation

   Decide to pursue negotiations
      Make final PRP search evaluation
      Assess cost recovery case
   Develop negotiation plan
   Implement negotiation plan
Initiate at least 3 quarters prior to start date to
allow for supplemental activities. Conclude
supplemental activities no later than 5 months
before start date.
Complete checklist (negotiation plan) 2 quarters
prior to start date.
At least 4 months prior to start date.
At least 3-1/2 months prior to start date.
At least 1 quarter prior to start date.
                                      Case status, including current status of site response activities, site
                                      enforcement activities, and their relation to overall site objectives.
                                      PRP search assessment, including assessment of completeness
                                      (identification of all PRPs, information on volume/nature of sub-
                                      stances from each PRP), tracking systems, strength of evidence,
                                      financial viability of PRPs, liability theories, and PRP defenses.
                                      Cost recovery, including plans for updating documentation, recovery
                                      of past costs to date, estimates of future oversight costs, assessment of
                                      Statute of Limitations (SOL) issues, computation of interest claims,
                                      demand for past costs in general or special notice or demand letters,
                                      assessment of any weaknesses in past costs, relationship of past costs
                                      to overall settlement, and litigation alternatives for recovering costs if
                                      non-setdors exist or negotiations are unsuccessful.
                                      The remedy selection plan and review of the AR, including identifi-
                                      cation of participants in RI/FS and ROD preparation,  a detailed
                                      timeline for ROD preparation (if the ROD has not been signed),
                                      public participation in the remedy selection process, review of die
                                      AR, and overall coordination with enforcement case development
                                      and negotiations.
                                      SNL preparation and review (wirJi volumetric ranking  attachment).
                                      CD preparation and review, including technical deliverables and
                                      schedules.  (If an orphan share exists at die site, compensation should

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  8-12     KDIRA Negotiations/Settlement
8.2.B.2
    Draft
Consent
  Decree
       be included in the elements of the CD.  Terms for disbursement of
       funds from a special account should also be defined in the CD.)
   •   Planning for negotiation positions, for obtaining approval for
       negotiations, and overall tactics to achieve these objectives. Review
       of volumetric shares, non-viable parties, strength of evidence,
       appropriateness of de minimis and/or mixed funding settlement, and
       criteria for evaluating GFOs.  Possible re-examination of positions, if
       there are some setdors and some viable non-settlors.
   •   Procedural strategy for carrying out negotiations, including discus-
       sions with the steering committee, timing of special notice, drop-
       dead dates, draft CDs, die development of work plans, an oversight
       plan, and associated response needs.
   •   Enforcement strategy and a schedule for actions should negotiations
       not result in a setdement widiin established timeframes. These
       actions may include section 106(a) UAOs or judicial actions.
   •   Funding strategy (RD and RA may be separate) and schedule if case
       does not settle, including an analysis of state cost share issues.
   •   Schedule for major milestones with specific Case Team assignments
       for managing and performing task accomplishments.
   •   Resource needs.

The terms and conditions governing the RD/RA or RA activities of PRPs
are specified in a CD. The Case Team should prepare a draft CD as part of
die negotiations planning activities. A model CERCLA CD has been
prepared for diis purpose. Exhibit 8-4 presents die elements oudined in
die model CD.
Nine of the clauses in die Model CD-site access, dispute resolution,
covenants not to sue, additional response actions (which falls under heading
XXI in Exhibit 8-4), indemnification, contribution protection, force ma-
jeure, certification of completion, and stipulated penalties—are considered
very important. This means that any significant deviation from the model
language for diese clauses must be concurred widi by OSRE. The concur-
rence of appropriate EPA and DOJ management on die draft decree should
be obtained before it is sent to die state or die PRPs. In addition, die region
is required to send  a mini-litigation report to DOJ 60 days before sending
the draft RD/RA CD to die PRPs at die beginning of negotiations. A mini-
litigation report is required for all RD/RA negotiations.  See Exhibit 8-5 for
die time frames in which this consultation/concurrence should occur.
Reference
"Revised Model CERCLA RD/RA Consent Decree," 63 Federal Register
9541 (February 25, 1998).

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                                                                                         8-13
                             8-4    Provisions in Model Consent Decree
                               I.          Background
                               II.         Jurisdiction
                               III.         Parties Bound
                               IV.         Definitions
                               V.         General Provisions
                               VI.         Performance of the Work by Settling Defendants
                               VII.        Remedy Review
                               VIII.       Quality Assurance, Sampling, and Data Analysis
                               IX.         Access and Institutional Controls
                               X.         Reporting Requirements
                               XI.         EPA Approval of Plans and Other Submissions
                               XII.        Project Coordinators
                               XIII.       Assurance of Ability to Complete Work
                               XIV.       Certification of Completion
                               XV.        Emergency Response
                               XVI.       Reimbursement of Response Costs
                               XVII.       Indemnification and Insurance
                               XVIII.      Force Majeure
                               XIX.       Dispute Resolution
                               XX.       Stipulated Penalties
                               XXI.       Covenants Not to Sue by Plaintiff[s]
                               XXII.       Covenants by Settling Defendants
                               XXIII.      Effect of Settlement; Contribution Protection
                               XXIV.      Access to Information
                               XXV.       Retention of Records
                               XXVI.      Notices and Submissions
                               XXVII.     Effective Date
                               XXVIII.     Retention of Jurisdiction
                               XXIX.      Appendices
                               XXX.      Community Relations
                               XXXI.      Modification
                               XXXII.     Lodging and Opportunity for Public Comment
                               XXXIII.     Signatories/Service
                               XXXIV.     Final Judgment
8.2.B.3      Covenants    Under section 122(f)(l), EPA may grant covenants not to sue for both
             Not tO Sue    present and future liability to setding PRPs. In general, present liability
                             refers to the PRPs' obligation to pay response costs already incurred by the
                             Agency and to complete those remedial activities set forth in the ROD.
                             Future liability refers to the PRPs' obligation to perform any further re-
                             sponse activities that are necessary to protect human health or the environ-
                             ment that arise after the ROD is signed.

                             Generally, PRPs do not receive broad covenants not to sue (which some-
                             times are referred to as releases from liability).  PRPs may be released from

-------
Pre-Referral Lit.
Report and Consent
Decree Sent to:
-DOJ
-OSRE
DOJ Moves for Entry of CD (If no
     significant comment)

                                                                              DOJ Lodges CD;
                                                                                  Notice in
                                                                              federal Register
"Final" Draft CD
to DOJ and HQ2
 1 Closure reached within 120-180 days on all fundamental terms of settlement and most language
   of a final consent decree.
 2 OSRE participates to the extent prescribed in CERCLA settlement delegations.
 3 Includes 21 days for OSRE concurrence/consultation as prescribed in CERCLA settlement
   delegations.
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                                                                                                8-15
                               liability for past costs if they reimburse the Fund for all or part of its
                               response costs at the site, depending on the provisions of die setdement.
                               Under most RD/RA CDs, PRPs are liable for implementation of the ROD,
                               Operation and Maintenance (O&M), and payment of government over-
                               sight costs. A covenant not to sue becomes effective for these liabilities
                               upon payment of past costs. However, die covenant is contingent upon
                               complete and satisfactory performance by setding PRPs. They remain
                               committed to undertake any furdier response action required by the
                               CERCLA section 121(c) five-year review.
                               Assuming CERCLA section 122 (f)(l) conditions are met, EPA must
                               provide special covenants not to sue, as described in CERCLA section
                               122(f)(2), in die following two cases:

                                  •   If EPA selects a remedial action involving off-site disposal after
                                      rejecting a PRP proposal to conduct an on-site remedy diat fully
                                      complies widi die National Contingency Plan (NCP) requirements.
                                  •   If the remedy involves treatment of hazardous substances and
                                      treatment of by-products that destroy, eliminate, or permanendy
                                      immobilize each of die substances such diat, in die judgment of
                                      EPA, neidier die substances nor die byproduct of treatment present
                                      any current or future significant risk.  Examples of such treatment
                                      technologies may include biodegradation and incineration.
                               Covenants not to sue widiout reopeners also may be provided under
                               extraordinary circumstances, as described in CERCLA section 122(f)(6)(B).
                               Only die natural resource trustees may audiorize covenants not  to sue for
                               natural resource damages.
                               Covenants not to sue for future liability take effect upon certification diat
                               die remedial action has been completed and performance standards have
                               been achieved in accordance with die terms of the ROD and in  a manner
                               consistent with die NCP.  Chapter 11, Site Completion/Deletion, contains
                               more detailed information on certifying die completion of remedial activity
                               at a site.
                               References
                               OSWER Directive 9834.8, "Covenants Not to Sue Under SARA" (July 10,
                               1987)
                               "Revised Model CERCLA RD/RA Consent Decree," 63 Federal Register
                               9541 (February 25, 1998).

8.2.B.4           Matters   In die past, setdements generally have not included a definition of "matters
               Addressed   addressed," but instead have contained a statement  diat die "Settling
                               Defendants are entitled to such protection from contribution actions or
                               claims as is provided in CERCLA section 113(f)(2)" or die equivalent. This
                               approach caused uncertainty regarding die effect of the setdement on die
                               contribution  rights of persons not party to die setdement, and in turn
                               caused subsequent litigation and delays in entry of decrees. Defining
                               "matters addressed" in settlements will reduce uncertainty and litigation

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8-16    RD/RA Negotiations/Settlement
                              regarding the scope of contribution protection associated with such settle-
                              ments.  Therefore, a definition of "matters addressed" should typically be
                              included in the contribution protection section of future settlements. The
                              general principles for defining "matters addressed" are as follows:

                                •   "Matters addressed" should be site-specific, and should identify
                                    response actions and costs for which the parties intend contribution
                                    protection to be provided. At a minimum, these will be the response
                                    actions the settling parties agreed to pay for or perform, but can be
                                    broader in range in some circumstances, such as for de minimis and
                                    ATP settlements.
                                •   The "matters addressed" must satisfy the legal standard for entry, i.e.,
                                    that the settlement is "fair, reasonable, and consistent with the goals
                                    of CERCLA."  The required demonstration can ordinarily be
                                    accomplished by showing that the response actions or costs within
                                    the definition of "matters addressed" were considered in determining
                                    the amount of the setdement and that the settlors' contribution
                                    represents a reasonable contribution based on a defensible criterion
                                    such as volumetric share and toxicity of hazardous substances
                                    contributed to  the site.
                                •   The scope of the covenant not to sue is relevant to, but not disposi-
                                    tive of, the scope of "matters addressed."  In some cases, "matters
                                    addressed" are  defined less broadly than the covenant not to sue. An
                                   ' item that is not within the scope of the covenant not to sue, however,
                                    is not ordinarily considered to be a matter addressed in a settlement.
                              For de minimis settlements and other settlements where the PRPs  pay a
                              share of the specified costs, an item is addressed if it is included in the cost
                              total to which the parties' shares are applied.  Other items whose costs
                              cannot be estimated at the time of settlement may be included in  "matters
                              addressed" if the settlors pay a premium that reflects the risk that such costs
                              will ultimately be incurred.
                              Setdors in final RD/RA CDs usually bear the bulk of the site costs. In the
                              interest of fairness, it is likely diat they should receive contribution protec-
                              tion for all site costs, including those that may have been incurred by other
                              PRPs.  So long as the  costs borne by other PRPs are known or can be
                              reasonably estimated and were considered in determining how much the
                              final RD/RA setdors should be required to do and pay, those earlier PRP
                              costs should be included in "matters addressed" along with all of the United
                              States' costs. The definition of "matters addressed" in such a settlement
                              should  include all anticipated costs and work.
                              In cases where it is not possible to conclude that setdors are paying an
                              appropriate portion of all costs, public and private, it may be appropriate to
                              limit "matters addressed" to costs reimbursed or work performed under the
                              decree or to list specifically the matters for which die settlor  is to receive
                              contribution protection, including costs incurred by PRPs to the extent they
                              have been considered.

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                                                                  8-17
In RD/RA settlements for only one of several Operable Units (OUs),
"matters addressed" are likely to be limited to the portion of the cleanup
which the settlors are performing or funding. However, if the settlor
conducts the entire remedy for a site through a series of OU decrees, the
final OU decree should use a definition of "matters addressed" equivalent to
what the senior would have received if it had performed the entire remedy
under one, final RD/RA decree.
In "past cost-only" setdements, the covenant not to sue covers past response
costs only. To prevent disputes regarding the parties' intentions as to the
scope of contribution protection, "matters addressed" should be narrowly
limited to the United States' past response costs.  In  some cases, such as
where prior setdors have already reimbursed part of the United States' past
costs, it may be appropriate to narrow "matters addressed" even further.  In
these instances, "matters addressed" may be limited to past costs the settling
defendant has agreed to pay or to the United States'  past costs that were not
reimbursed prior to any payments to be made under the decree.
In cashout setdements, "matters addressed" should reflect the scope of the
setdement. If the settlor's payment represents a reasonable contribution
toward all anticipated past and estimated future site  costs, "matters ad-
dressed" should include all such response activities and costs. However, if
the settlor's payment was determined  based on only  a subset of site response
costs, only that subset is a matter actually addressed.
ATP setdements often represent a judgment of what is an appropriate
amount for a PRP with limited financial resources to pay.  So long as cost or
work items are considered in die analysis of total anticipated costs used to
develop the judgement, they should be included in "matters addressed."
However, ATP settlements do not always address all site costs. In such
cases, a more limited definition of "matters addressed" will be appropriate.
In order to avoid any uncertainty arising from die overlap between the
definition of "matters addressed" and  the standard reservations and
reopeners, which are not typically "addressed" by the settlement, language
indicating diat "matters addressed" in the setdement does not include  these
reserved rights should be included. This language should be drafted to
require diat die United States invoke the reservation or reopener before a
contribution plaintiff can avoid the bar to contribution suits on the basis of
such reservation or reopener. Where CDs are not intended to provide broad
contribution protection, "matters addressed" should not overlap with
standard reservations and reopeners, and other special language should not
be needed.
Reference
DOJ/OSRE Memorandum, "Defining 'Matters Addressed' in CERCLA
Setdements" (March 14, 1997).

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  8-18    RD/RA Negotiations/Settlement
 8.2.B.5       Reopeners
8.2.C
Notification
    of States
and Federal
      Natural
    Resource
    Trustees
8.2.D
      Special
       Notice
      Letters
8.2.D.1
     Contents
Reopener provisions allow EPA to bring an administrative or judicial action
against a PRP for injunctive reliefer for additional response costs incurred
at the site when previously unknown conditions or information indicate
that the remedy is no longer protective of human health and the environ-
ment.
The operative principle is the development of new scientific information
that shows that the site presents a problem not addressed satisfactorily by
the remedy. This does not mean that the development of new remedial
technologies is a basis for reopeners.
Reference
OSWER Directive 9834.8,  "C6venants Not to Sue Under SARA" (July 10,
1987).

Section 121(f)(l) of CERCLA provides for notice to die state of negotia-
tions. In addition, section 122(j)(l) requires that if a release or threat of
release at a site may have resulted in damages to natural resources under the
trusteeship of the United States, EPA must notify the appropriate federal
trustees and provide them widi an opportunity to participate in the negotia-
tions. The RPM is responsible for notifying the state and both the federal
and state trustees. Settlements that specifically provide for remediation of
natural resource damages, or determine that there were no such damages
and grant a covenant not to sue for natural resource damages, must be made
widi the agreement of the appropriate trustee. Resolution of these issues is
often important to PRPs who may decline to sign  a decree without resolu-
tion. For furdier information on notification procedures and negotiation
interactions with federal and state trustees, see Chapter 5, RJ/FS Negotia-
tions/Settlement.

Section 122 of the Superfund Amendments and Reaudiorization Act
(SARA) authorizes EPA to issue SNLs to begin a formal negotiation period
widi the PRPs.  It is EPA's policy to use CERCLA section 122(e) special
notice procedures whenever possible. The primary purposes of die special
notice procedures are to facilitate setdements for RD/RA through direct
negotiations widi PRPs and to expedite cleanups.  Prior to issuance of the
SNL for RD/RA, PRPs should have been provided information on all PRPs'
involvement at die site and should be familiar widi die RI and remedial
alternatives.

The SNL should contain die following information:

   •   Notice of the potential liability of the PRP.
   •   Purpose of die SNL and die conditions of the negotiation morato-
      rium.
   •   Description of future response actions, if known.
   •   Description of die elements of a GFO.

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                                                                                                8-19
                                  •   Statement of Work (SOW) to be performed.
                                  •   Additional information, including other PRPs' names and addresses,
                                      feet sheets on the site, volumetric ranking of substances at the
                                      facility, and a list of the volume and nature of substances contributed
                                      by each PRP.
                                  •   Demand for payment of past costs.
                                  •   Date when a GFO is due.
                               The SNL should include as attachments a copy of EPA's Proposed Plan (or
                               the ROD, if signed), a draft CD for the RD/RA, and a draft RD/RA SOW.
                               To the extent possible, the SNL should contain specific information to assist
                               the PRPs in developing a GFO. This includes information stipulating the
                               minimum elements of an acceptable GFO and what the region will not
                               accept.  Minimum requirements for GFOs are discussed later in this
                               chapter.  Headquarters has developed model SNLs as samples for regions to
                               use at their discretion.
                               Regional counsel should notify die Chief of the Environmental Enforce-
                               ment Section at DOJ and provide a pre-referral litigation report 60 days
                               prior to issuing SNLs where settlement by CD is anticipated. A copy of die
                               pre-referral litigation package should be sent to OSRE. The memorandum
                               should include information about when the SNL will be sent and include
                               die draft CD for DOJ review. The draft CD also should be made available
                               for OSRE review, especially if it is anticipated diat die settlement will
                               require OSRE consultation or concurrence.
                               Copies of die SNL should be sent to  die appropriate state representative, the
                               natural resource trustees, the regional AR coordinator, and OSRE (unless
                               the region has previously provided a copy of a GNL with the particular PRP
                               as a recipient). Regions will enter die PRP into CERCLIS 3/WasteLAN.
                               Reference
                               OSRE Memorandum, "Transmittal of Sample Notice Letters: 1) Demand;
                               2) General Notice; 3) Special Notice; and 4) Follow-Up 104(e)" (July 26,
                               1996).

8.2.D.2              Cost   The negotiation process should include negotiations for any past costs, such
                 Recovery   as costs of a removal or Fund-lead RI/FS. RPMs should refer to Chapter
                               12, Cost Recovery, for information on the different types of costs, which
                               include indirect, direct, pre- and post-SARA, and interest, and  die required
                               documentation for recovering these costs. The RPM needs to request cost
                               documentation from the regional  financial office at least 90 days in advance
                               of issuing the SNL. Once this documentation is received, die RPM should
                               provide it to die PRPs so that they will have EPAs cost information available
                               to them.

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  8-20    RD/RA Negotiations/Settlement
8.2.D.3
        Timing
   the Special
 Notice Letter
8.2.D.4
       Section
122(a) Letters
8.2.E
 Good Faith
         Offer
The SNL should be sent between the time the draft Proposed Remedial
Action Plan and FS are released for public comment and when the ROD is
issued, or shortly thereafter (within 45 days).  The timing strategy will strike
a balance between EPA's ability to conduct meaningful negotiations and
minimizing delay in implementing the RD/RA. It is not appropriate to
delay issuance of SNLs for months after the ROD. The negotiation sched-
ule should take into account any obligation of Fund monies for RD/RA
activity at the site.  It should be noted that RD/RA negotiations with PRPs
that occur while the ROD is being written or amended may not address
matters related to the selection of the remedy.
Furthermore, negotiations must be conducted in a way that does not
undermine the public participation process.  Because the Proposed Plan  has
been released, the PRPs will be able to incorporate the possible range of
remedial alternatives into the GFO.

If EPA decides not to use the special  notice procedure, the region must
notify the PRPs in accordance with section 122(a) of CERCLA, stating why
EPA has decided to forego the formal negotiation period. Situations in
which it would not be appropriate to use the special  notice  procedures,
because it would not facilitate agreement or expedite cleanup, may include
the following:

   •   Past dealings with the PRPs indicate that they are unlikely to negoti-
       ate a settlement.
   •   EPA believes the PRPs have not been negotiating in  good faith.
   •   No PRPs have been identified in  a PRP search reviewed by the Civil
       Investigator (CI) and regional counsel.
   •   The PRPs lack the resources to conduct response activities.
   •   There are ongoing negotiations with deadlines specified in a letter
       (i.e., ongoing cases where negotiations would not be further expe-
       dited by the SNL process).
If additional PRPs are identified after the issuance of SNLs, the RPM may
include them in ongoing negotiations or, if there is a partial settlement,
negotiate a separate agreement. This is a case-by-case decision.  SNLs may
be sent for a single OU or for the entire  RD/RA, depending on the remedy
documented in the ROD and regional policy.
References
OSWER Directive 9834.10-1A, "Model Notice Letters" (February 7,
1989).
OSWER Directives 9834.10, "Interim Guidance on Notice Letters, Nego-
tiations, and Information Exchange"  (October 19, 1987)
PRPs are usually given 60 days from  the special notice to provide the
Agency a good faith proposal for implementation of the RD/RA. The
following list of minimum requirements for GFOs should be used to help
maintain national consistency:

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                                                                                                8-21
8.2.F    Negotiation
             Extensions
   •   A statement of the PRP's willingness to conduct or finance the RD/
      RA that is consistent with EPA's Proposed Remedial Action Plan (or
      the ROD, if it has been issued), or that provides a legitimate basis for
      further discussion. While a proposal with variations on EPA's
      chosen/preferred remedy does not always mean that an offer is in bad
      faith, it is at the very least not preferred. If, as a matter of course,
      EPA frequendy reopens remedy discussions, there will be fruitless
      negotiations and undue delays.
   •   A response to EPA's draft CD that identifies and prioritizes the major
      concerns of the PRP and that provides site-specific justifications for
      any changes proposed.
   •   A demonstration of the PRP's technical and financial capability to
      perform die work, including a list of potential contractors and their
      qualifications.
   •   A statement of die PRP's ability and willingness to reimburse EPA
      for past response and oversight costs (or if not, a statement of why
      referral to non-setdors is appropriate).
   •   A discussion of die PRP's position on release from liability and
      reopeners to liability.
To encourage PRPs to submit acceptable GFOs, the RPM and regional
attorney must take an active role in educating die PRPs. Regional mini-
mum requirements for GFOs should be stipulated  in detail in the SNLs.
The regional attorney should maintain frequent contact widi die PRPs or
steering committee representatives regarding development of a GFO.
References
OECA Memorandum, "Revisions to OECA Concurrence and Consultation
Requirements for CERCLA Case and Policy Areas" (September-30, 1998).
OSRE Memorandum, "Transmittal of Sample Notice Letters: 1) Demand;
2) General Notice; 3) Special Notice; 4) Follow-Up 104(e)" Quly 26, 1996).
OSWER Directive 9834.10-1A, "Model Notice Letters" (February 7, 1989).
OSWER Directive 9834.10, "Interim Guidance on Notice Letters, Negotia-
tions, and Information Exchange" (October 19, 1987)

Issuance of the SNLs triggers a moratorium on EPA's conduct of certain
actions. The intent of the moratorium period is to place a statutory dead-
line on the formal negotiation period to encourage settlement. The initial
negotiation moratorium may last for a total of 120 days in RD/RA negotia-
tions. If EPA does not receive a GFO widiin 60 days of the issuance of
SNLs, the negotiation period will terminate. If a GFO is received, the
negotiations may continue for another 60 days. Firm negotiation schedules
should be developed quickly and adhered to in order to force issues to
resolution.  If in exceptional cases negotiations must be extended beyond
120 days, prior written or oral approval of the  RA or his/her delegate must
be obtained.  Moratorium extensions from 181-240 days require Director/

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  8-22    RD/RA Negotiations/Settlement
8.2.G     Settlement
            Incentives/
         Disincentives
8.2.H         CERCLA
            Settlement
                   Policy
RSD approval and 241-300 day extensions require Director/OSRE ap-
proval. Requests for extensions from OSRE (including RSD) should be
made at least 14 days in advance of the expiration date of the negotiation
period.
References
OSWER Directive 9834.10, "Interim Guidance on Notice Letters, Negotia-
tions, and Information Exchange" (October  19, 1987)
OSWER Directive 9835-4, "Interim Guidance: Streamlining the CERCLA
Settlement Process" (February 12, 1987).

The settlement incentives/disincentives concept is an approach to RD/RA
settlements that indicates EPA's willingness to enter into partial setdements
with those willing to setde, particularly if diey will conduct the cleanup, and
EPA's willingness to pursue viable non-settlors for the remainder.  The
concept does not apply to single owner/operator sites.
The setdement incentives/disincentives concept continues EPA's goal of
recovering 100 percent of site costs and preference for pressing for a close-
to-100 percent setdement widi some or all PRPs.  Nonetheless, in some
multi-party cases where most viable PRPs are willing to setde but  some are
not, as an incentive to diose willing to setde  EPA may enter into a partial
setdement with die willing parties and pursue the remaining parties for die
remainder of the site costs. In determining how much the setdors should
pay, the interim CERCLA settlement policy should be applied.  At a
minimum, the settlors usually should pay more than their volumetric share
to take into account non-viable parties, non-setdors, the orphan share
greater than 25 percent of die projected remedial costs, and evidentiary
deficiencies regarding viable non-setdors.  Also, mixed funding, de minimis
setdements, and NBARs should be used in appropriate cases.
The setdement incentives/disincentives approach also recognizes die use of
disincentives in response to the use of dilatory tactics in negotiation and to
the refusal of all or some PRPs to settle.  Section 106(a) UAOs are a power-
ful management tool to encourage panics  that are somewhat willing to
setde but are delaying resolution of negotiations. More generally, section
106(a)  UAOs are also a disincentive to non-settlement because failure to
comply widi diem may result in penalties under section 106 or treble
damages under section 107.  Where diere is a partial setdement, it is very
important to file a lawsuit against non-settlors as soon as possible. In most
cases, diis will be a cost recovery action.

EPA's interim CERCLA setdement policy  sets forth general principles
governing setdements widi private parties. The policy recognizes  that die
objective  of negotiadons is to collect 100 percent of cleanup costs from
PRPs. The policy also recognizes diat, in very limited circumstances,
exceptions to diis goal may be appropriate, and establishes criteria for
determining where such exceptions are allowed. The policy states 10 criteria
to be considered when negotiating settlements:

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                                                            5-23
Volume of Wastes Contributed to Site by Each PRP. The volume
of waste may contribute significantly and directly to the distribution
of contamination on the surface and in subsurface ground water. At
many sites, there will be wastes for which PRPs cannot be identified.
If identified, PRPs may be unable to provide funds for cleanup. The
volume of wastes  is not die only criterion to be considered.  There-
fore, it will be necessary, in many cases, to require settlement contri-
butions greater dian the apportioned percentage of wastes contrib-
uted by each PRP to the site.
Nature of Wastes Contributed. If a waste contributed by one or
more of die parties offering a settlement disproportionately increases
the cost of cleanup at die site, it may be appropriate for parties
contributing such waste to bear a larger percentage of cleanup costs
dian would  be die case using a solely volumetric basis.
Strength of Evidence Tracing the Wastes at the Site to the Set-
tling Parties.  Where the quality and quantity of the governments
evidence appears to be strong for establishing die PRP's liability, die
government should rely on the strengdi of its evidence and not
decrease die settlement value of its case. If the governments evi-
dence against a particular PRP is weak, that weakness should be
weighed in evaluating a setdement offer from that PRP.
Ability of the Settling Parties to  Pay. Evaluation of die settlement
proposal should discuss die financial condition of die party and the
practical results of pursuing a party for more than die government
can hope to actually recover. Ability to Pay (ATP) setdement is
reserved for business PRPs who demonstrate that die amount sought.
by the government is likely to put diem out  of business or otherwise
jeopardize dieir viability, and for both business and individual PRPs
who demonstrate diat payment of such an amount is likely to create
an undue financial hardship. See Chapter 12,  Cost Recovery
("Ability to Pay").
Litigative Risks in Proceeding to Trial. Such risks include:
    Admissibility of die  governments evidence.
    Adequacy of die government's evidence.
    Availability of defenses.
Public Interest Considerations.  For example, if die state cannot
fund its portion of a Fund-financed cleanup, a private-party cleanup
proposal may be given more favorable consideration dian one
received in a case where the state can fund its portion of cleanup
costs. Public interest concerns may be used  to justify a setdement of
less than 100 percent only when diere is a demonstrated need for a
quick remedy to protect public healdi or die environment.
Precedential Value. Where die factual situation is conducive to
establishing a favorable precedent  for future  government actions,
setdement should be on terms most favorable to die government.

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  8-24    RDIRA Negotiations/Settlement
8.2.1
                           Where PRPs will not settle on such terms, and the quantity and
                           quality of evidence is strong, it may be in the government's best
                           interest to try the case.
                        •   Value of Obtaining a Present Sum Certain. The sum offered in
                           settlement may be, in reality, higher than the amount the govern-
                           ment can expect to obtain at trial.
                        •   Inequities and Aggravating Factors.  Analyses of settlement
                           proposals should flag for the decision makers any apparent inequities
                           to the setding parties inherent in the government's case, any apparent
                           inequities to others if the proposal is accepted, and any aggravating
                           factors.
                        •   Nature of the Case that Remains After Settlement. All setdement
                           evaluations should address the nature of die case that remains if die
                           setdement is accepted. For example, if there are no financially viable,
                           liable parties left  to proceed against for the balance of the cleanup
                           after the setdement, die settlement offer should constitute everything
                           the government expects to obtain at diat site.
                     References
                     OECA Memorandum, "General  Policy on Superfund ATP Determinations"
                     (September 30, 1997).
                     OSRE Fact Sheet, "Existing Ability to Pay (ATP) Guidance and Models"
                     (May 1995).
                     OSWER Directive 9835-14, "Submittal of Ten Point Setdement Analyses
                     for CERCLA Consent Decrees" (August 11, 1989).

  S6ttl6mGnt   The negotiation team has several important settlement tools diat can help
          Tools   achieve PRP settlements. These include the following:

                        •   Mixed funding agreements.
                        •   De minimis settlements.
                        •   "De micromis" setdements.
                        •   NBARs.
                        •   Orphan share compensation.
                     Each of diese settlement tools is discussed in detail in diis section.
                     In certain instances, Supplemental Environmental Projects (SEPs) may be
                     included in setdements widi PRPs and may lower die setdors' final settle-
                     ment penalty.
8.2.1.1
Mixed Funding
   Settlements
Mixed funding agreements are generally setdements whereby EPA setdes
widi fewer dian all PRPs for less than 100 percent of die response costs and
there are additional measures to ensure that die response action will be
done. There are diree types of mixed funding setdements:

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                                                                  5-25
   •   Preauthorization - Settling PRPs agree to conduct the response
       action and the Agency agrees to pay for part of die response costs by
       approving in advance die basic elements of a claim by setding PRPs
       against die Fund.
   •   Mixed Work - PRPs conduct discrete pans of die response activity
       while EPA conducts the remainder.
   •   Cashouts - Setding PRPs pay a portion of die response costs and die
       Agency conducts the response action.
Once die PRPs have indicated dieir interest in pursuing a mixed funding
setdement, the region should evaluate the case against the 10-point settle-
ment criteria, which include, in diis context, die following:

   •   The level of PRP agreement with the remedy.
   •   Whether a substantial part of cleanup (> 50 percent) is offered by
       setding PRPs.
   •   Whether the setdors' part of die cleanup is proportionate to or
       greater than their combined allocation.
   •   The strength of die liability case against and viability of die PRPs
       (setdors and non-settlors).
   •   The amount of waste contributed to die site by setdors and viable
       non-settlors compared to dieir relative setdement share.
   •   Other available options if settlement fails.
The best candidates for mixed funding are cases in which die following
features are present:

   •   The potential portion or OU to  be covered by die Fund is small, or
       the setding  PRPs offer a substantial portion of die total cost of
       cleanup.  In this context, substantial portion may be defined as a
       commitment by die PRPs to undertake or finance a predominant
       portion of the total remedial action.
   •   The government has a strong case against financially viable non-
       setding PRPs, from whom the Fund portion may be recovered
       through litigation.
Cases considered poor candidates for mixed funding have the following
features:

   •   The potential Fund portion  is large (e.g., the potential settlors' offer
       is insufficient).
   •   The case against the potential setdors is strong and the case against
       die non-setdors is not strong, and thus litigation against the poten-
       tial setdors is likely to be more successful than a mixed funding
       setdement.
These factors do not automatically preclude mixed funding for a case.  For
mixed funding to be seriously considered in such instances, however, other

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 8-26     RD/RA Negotiations/Settlement
                               compensating factors must be present, such as the ability of the settlors to
                               initiate the response action more quickly than the government in a Fund-
                               financed action.
                               After the region completes an evaluation of the case and determines that it is
                               a good candidate for mixed funding, the RPM notifies OERR (if Fund
                               dollars are involved, as in preaudiorization), OSRE, and DOJ.
                               When developing cost allocations for mixed funding setdement proposals,
                               die Case Team should carefully evaluate the governmental contribution to
                               die cleanup or outstanding work and the strength of die case against non-
                               setdors, including an analysis of liability, viability, and amount contributed
                               to the site. The Case Team should be careful  to avoid a proposal  with a
                               fixed division of costs between the setdors and die government. This may
                               result in "over-subscription," where all PRPs or more PRPs than anticipated
                               accept EPA's proposed cost allocation. This could leave EPA widi an
                               unrecovered amount grossly disproportionate to die share of contamination
                               contributed by die pool of viable, liable non-setdors available for future cost
                               recovery actions. To avoid "over-subscription," die Case Team should
                               develop a sliding scale setdement proposal, where setdement amounts vary
                               depending on die volumetric percentage of PRPs signing on as setdors. The
                               work products of the Setdement Incentives/Disincentives Workgroup
                               contain further information on developing cost allocations for mixed
                               funding setdements.
                               The following secdons discuss the three types of mixed funding setdements
                               and factors to be considered in choosing a particular type of mixed funding
                               setdement.
                               Reference
                               OSWER Directive 9834.9, "Evaluating Mixed Funding Setdements"
                               (October 20, 1987).

8.2.1.1.1 Preauthorization    "Preaudiorization" refers to the approval granted by EPA prior to cleanup
                               actions if a PRP claim against the Fund for response costs is to be consid-
                               ered. Preauthorization  represents EPA's commitment dial, if response
                               activities are conducted pursuant to the setdement agreement and die costs
                               are reasonable and necessary, absent any shortfall in die Fund, die PRP will
                               be reimbursed from the Fund as set forth in die setdement.
                               The initial analysis is to determine whedier die site is a proper candidate for
                               a preauthorization mixed funding settlement. In addition to the  points
                               listed above that identify potential candidates for mixed  funding, die nature
                               of the proposed remedy and die PRPs ability to perform it should be
                               considered carefully in assessing a setdement offer that involves
                               preaudiorization. The size of die PRPs portion of cleanup responsibility
                               also should be considered. When PRPs commit themselves to pay for a
                               sufficiendy high percentage of cleanup costs, diey have a strong economic
                               incentive to keep actual response costs within or close to estimates. Addi-
                               tionally, the urgency of the threat posed by the site may influence the
                               decision to agree to preauthorization, if preaudiorization would expedite

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                                                                 5-27
response activities.  Prompt initiation of remedial action would be of
particular importance for sites diat are not currendy scheduled for full Fund
financing.
The preaudiorization agreement must be approved by OERR. The OERR
evaluation widi regard to preaudiorization is separate and distinct from the
evaluation of the setdement performed by OSRE. In preaudiorization
agreements, die PRPs prepare a preaudiorization proposal for regional
review. The RPM s early notification to OERR and OSRE of the PRPs
intention to pursue preaudiorization is crucial to the timeliness of Head-
quarters review of die proposal and the development of die Preaudiorization
Decision Document (PDD).  After reviewing the setdement according to
the 10-point setdement criteria set forth in the Interim Settlement Policy,
the RPM forwards the preaudiorization proposal to OERR's Hazardous Site
Control Division, State and Local Coordination Branch, State Require-
ments Section, and OSRE's Regional Support Division. Both Headquarters
offices work joindy with the region in reviewing and approving the PRPs
submittal. The region must also notify DOJ and ensure diat die case is
entered into CERCLIS 3/WasteLAN.
The region should consider and plan for the amount of time necessary to
process preaudiorization applications and die urgency of site conditions
when conducting negotiations. Aldiough EPA has set a goal of completing
review of individual preaudiorization requests widiin a 45-day period, die
review time for submittals will vary.
Preaudiorization  approval is documented  in a PDD, which is prepared by
EPA. PDD contents include die following:

   •  A short history of contamination at the site,  and the various efforts
      to rectify the problem.
   •  A summary of the analysis performed by EPA in granting prior
      approval.
   •  A summary of any issues unresolved at the time of PDD issuance.
   •  A statement of "terms and conditions" that the applicant must meet
      for die preaudiorization to remain  valid.
The PRP may not begin work until the PDD is effective. The PDD
becomes effective when it has been signed by die Director, OERR (by
delegation from the AA OSWER), and die CD has been entered. The
PDD describes standards to be met if the  PRP is to receive full reimburse-
ment.  In certain circumstances, a claim will be preaudiorized contingent on
later Agency approval of elements specified in die PDD.
Section 122(b)(4) of CERCLA states that, for cases involving
preaudiorization, the Fund will assume costs of remedy failure in a propor-
tion equal to diat contributed  by die Fund for die original remedial action.
In the event of remedy failure, the  Fund portion may be met either through
Fund expenditures or by recovering costs from PRPs that were not pan of
die original setdement. The covenant not to sue does not apply if the
remedy fails due  to PRP negligence.

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  8-28    RD/RA Negotiations/Settlement
8.2.1.1.2
       Mixed
        Work
Settlements
References
OSWER Directive 9225.1-03, "Regional Guidance Manual for the Re-
sponse Claims Process - Preauthorization PRP RD/RA" (March 1990).
OSWER Directive 9225.1-01, "Procurement Under Preaudiorization and
Mixed Funding" (April 19, 1989).
OSWER Directive 9834.9A, "Interim Policy on Mixed Funding Settle-
ments Involving the Preauthorization of States or Political Subdivisions"
(May 27, 1988).

Mixed work settlements allow EPA and the PRPs to conduct discrete
portions of the response activity.  In mixed work settlements, EPA encour-
ages PRPs to conduct die RA. Mixed work settlements are appropriate in
cases where mixed funding is being considered and the following conditions
                               exist:
8.2.1.1.3
                    •   The region is reasonably certain of PRP cooperation.
                    •   Coordination of activities with PRPs does not present problems.
                    •   The RPM can identify, in detail, individual activities for which each
                       party will be responsible.
                 In addition, CERCLA section 104(c)(3) requires that the state pay or ensure
                 payment of 10 percent of the Fund contribution to die RA, or 50 percent
                 or greater if it is a state-operated facility. The PRPs may enter into an
                 agreement with die state and EPA under state law and CERCLA where the
                 PRPs pay 10 percent to the state and the state obligates funds for use at die
                 site, or die state may use its own funds to pay for any portion of its share
                 that cannot be paid for by PRPs. In either case, EPA and the state should
                 enter into a State Superfund Contract (SSC) to ensure cost share and O&M
                 responsibilities. Mixed work and cashouts (discussed below) should not be
                 considered unless the state's cost share is reasonably certain.
                 Once mixed work is identified as a potential settlement alternative, OSRE
                 and DOJ should be notified.

    Cashout    Cashout settlements require die PRPs to pay for a portion of the response
Settlements    costs up front, while EPA or odier PRPs conduct die response action.
                 Cashout settlements widi PRPs generally involve some of die following
                 factors:

                    •   EPA is very confident about die expected  RD/RA response costs.
                    •   A Special Account will be created.
                    •   The cashout will advance work at die site diat might not proceed
                       widiout die settlement funds.
                    •   The percentage of die total costs to be paid by setdors is substantial,
                       unless diere are major liability or financial viability concerns.

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                                                                                                 8-29
  8.2.1.2
 De Minimis
Settlements
8.2.1.2.1
    Eligibility
       Criteria
   •   The Agency has carefully evaluated evidentiary concerns regarding
      liability and the value of the settlement and, in light of substantial
      litigation risks, believes that setdement is warranted.
   •   Equitable considerations exist for both settling and non-settling
      parties, including die nature of any covenants not to sue in the
      cashout settlement.
   •   PRPs lack funds or die ability to secure competent technical support.
The RPM must notify OERR, OSRE, and DOJ of regional intent to
pursue a cashout setdement. Cashout settlements require concurrence of
the AA/OECA if total past and projected site costs exceed $100 million and
greater than $10 million is being recovered. They require consultation with
the Director/RSD at Fund-lead sites where die amount recovered is greater
dian $10 million.  In general, cashout settlements may occur at any stage of
die remedial process. Once Fund-lead response activities are underway,
however, cashout setdement widi some of the PRPs may not be advanta-
geous, since cost recovery generally will be pursued once RA construction
commences. Cashout settlements may include a risk premium diat may
partially offset EPA's risk due to uncertainties, such as remedy failure or cost
overruns.
Unlike preaudiorization settlements,  cashout setdements do not include
limitations to PRP liability for costs resulting from remedy failure. There-
fore, any future obligations must be specified in die cashout agreement,
including covenants not to sue.
References
OSWER Directive 9832.4,  "Interim  Cashout Procedures" (January 7,
1992).

A de minimis settlement is a final setdement between EPA and parties who
meet the requirements of section 122(g)(l) of CERCLA. It is noteworthy
that a de minimis setdement may be incorporated into a global agreement
between the major contributors and EPA. This is beneficial to major
contributors because de minimis money goes to pay for die response costs.

A PRP may setde zsa.de minimis party if all of the following are true:

   •   The setdement involves only a minor portion of die response costs at
      die site.
   •   The amount of hazardous substances contributed by the individual
      PRP is minimal in comparison to other  hazardous substances at die
      site.
   •   The toxic or other hazardous effects of those substances are minimal
      in comparison to other hazardous substances at the site.
   •   Setdement is practicable and in die public interest. EPA should
      evaluate the overall case for practicability, including die case against
      viable non-de minimis parties who may challenge die setdement.

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  8-30     RD/RA Negotiations/Settlement
8.2.1.2.2
     Necessary
Information for
    Contributor
    De Minimis
   Settlements
8.2.1.2.3
       Potential
    De Minimis
           Sites
 8.2.1.2.4 Communication
                Strategies
A property owner also may settle as a de minimis party. Section
122(g)(l)(B) of CERCLA provides for de minimis settlements where the
owner of the real property at which the facility is located did not conduct or
permit the generation, transportation, storage, treatment, or disposal of any
hazardous substance at the facility, did not contribute to the release or threat
of release of a hazardous substance at the facility through any action or
omission,  and the party had no actual or constructive knowledge that the
property was used for the generation, transportation, storage, treatment, or
disposal of any hazardous substance at die time of purchase.

In practice, de minimis settlements generally require all of the following:

  •   An assessment of the individual PRP's waste contribution relative to
       die volume of waste at the site.
  •    Cost estimates for remedial activities at the site with a known degree
       of uncertainty.
  •    Development of presumptive premiums for unknown costs and cost
       overruns, generally 50 percent for settlements widi a remedy cost
       reopener and 100 percent for settlements without a remedy cost
       reopener.
  •    Identification of remaining viable parties.

Characteristics of potential de minimis sites include die following:

  •    Past and future costs have been identified and premiums have been
       developed.
  •    De minimis payment and remaining liability are appropriate.
Sites that do not make good candidates for de minimis settlements include
those where some of die following are true:

  •    Poor volumetric or orphan share information  is available.
  •    Costs are highly uncertain.
  •    Potential de minimis parties have not conferred widi major parties
       and attempted to setde through diem.
  •    Potential de minimis parties are uncooperative in negotiations.
  •    There are no  viable non-de minimis parties to undertake the response
       action.

Certain communication strategies are recommended to aid in informing
and assisting de minimis parties who may be unfamiliar widi die Superfund
process. The following strategies should be used to ensure successful
communications with both de minimis and non-^ minimis parties prior to,
during, and following de minimis settlement negotiations:

  •   A "First Point of Contact" letter describing various elements of the
      settlement process should be sent to potential de minimis parties.

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                                                                                                 8-31
                                      Formation of a de minimis group should be encouraged.
                                           -^f minimis settlors should be actively involved in the settle-
                                      ment.
                                   •   Use of Alternative Dispute Resolution (ADR) methods should be
                                      considered.
                                   •   The "Superfund and Small Waste Contributors" brochure should be
                                      included in die first mailings to de minimis PRPs, along with subse-
                                      quent development and distribution of site-specific fact sheets.
                                   •   Public meetings may be held to inform parties about EPAs efforts to
                                      setde widi small-volume waste contributors.
                                   •   The regional Office of Congressional and Legislative Affairs and
                                      elected officials should be informed of impending de minimis
                                      settlements.
                                   •   A press release may be issued to announce a successful de minimis
                                      setdement and/or a hodine may be established to handle requests for
                                      information about a particular site or setdement.

8.2.1.2.5             Timing    Early de minimis settlements may be reached at die RI/FS stage, but most de
                De Minimis    minimis settlements have occurred at die ROD stage, when costs are known.
                                Consideration of a potential de minimis settlement includes the following:

                                   •   Refining the volumetric contribution taking into account the
                                      proportion contributed by non-viable PRPs to all viable PRPs.
                                   •   Determining a volumetric cutoff.
                                   •   Refining cost estimates, including past costs, RI/FS, RD/RA,
                                      oversight, and operation and maintenance costs.
                                   •   Developing a presumptive premium and/or reopeners to reflect die
                                      uncertainties of cost estimates.
                                   •   Presenting die setdement offer, including die model CD or AOC, in
                                      response to a PRP proposal or to initiate dialogue, and discussing
                                      diis settlement offer widi potential de minimis and non-de minimis
                                      parties.   .
                                   •   Using the revised model de minimis contributor CD or AO to
                                      implement early de minimis expedited setdements in accordance widi
                                      die Superfund Administrative Reforms initiative.

8.2.1.2.6               Cost    The need for cost reopeners is determined on die basis of die certainty of
                Reopeners    costs and use of premiums.  In very early setdements (RI/FS stage), die
                                reopeners should be more expansive and/or die premiums should be more
                                substantial. Where a cost reopener may be appropriate, offering die poten-
                                tial setdors an option of either paying less and receiving a setdement diat
                                contains a cost reopener, or paying die higher premium for a setdement
                                widi no cost reopener should be considered. Cost reopeners should be
                                distinguished from die standard reopeners (pre- and post-certification)
                                found in most CDs.

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  8-32    RD/RA Negotiations/Settlement
8.2.1.2.7
       Finalizing
     Settlement
 8.2.1.3
'De Micromis"
   Settlements
If terms are agreed upon by all parties, the final de minimis agreement can
be formalized through either an AOC or CD. A record supporting the
settlement must be developed. Consultation at the RSD Director level is
required for de minimis landowner settlements and for the first settlement in
each region involving "de micromis" parties.  Additional cases are delegated
with Headquarters consultation retained.  DOJ concurrence (and, on a CD,
signature) is required for de minimis settlements for sites where the Fund
response costs exceed $500,000.

"De micromis" settlements are a subset of de minimis settlements entered
under the de minimis settlement authority of section 122(g)(l)(A) of
CERCLA and, therefore, follow the de minimis settlement procedures
closely in matters such as necessary information for generator settlements,
potential setdor characteristics, and timing. "De micromis" settlements may
be available to parties who generated or transported a minuscule amount of
waste to a Superfund site, an amount less than the minimal amount nor-
mally contributed by de minimis waste contributors.  "De micromis"
setdements should only be considered when it is found that a party who has
contributed minuscule amounts of waste is likely to be pursued by other
PRPs at the site. "De micromis" settlements are not available to owners or
operators of Superfund sites.
A PRP may settle as a "de micromis" party if all the following criteria are
met:

   •   The setdor meets die criteria listed for de minimis parties.
   •   The settlor is being threatened with litigation by private parties.
   •   The setdor meets the presumptive "de micromis" eligibility cut-off
      levels:
          0.002 percent of total site waste for hazardous substance con-
          tributors.
          0.2 percent of total site waste for MSW contributors.
          110 gallons or 200 pounds when  site-specific conditions warrant
          an absolute volume cut-off.
References
OSRE/DOJ Memorandum, "Revised Guidance on CERCLA Settlements
widi De Micromis Waste Contributors" (June 3, 1996).
OSRE Memorandum, "Model CERCLA Section 122(g)(4) De Minimis
Contributor Consent Decree and Administrative Order on Consent"
(September 29, 1995).
OSRE Memorandum, "Standardizing die De Minimis Premium" (July 7,
1995).
OSRE Memorandum, "Office of Enforcement and Compliance Assurance
and Regional Roles in Civil Judicial and Administrative Site Remediation
Enforcement Case" (May 19, 1995).

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                                                                                              8-33
8.2.1.4      Non-Binding
            Allocation of
           Responsibility
OSWER Directive 9834.7-1 D, "Streamlined Approach for Settlements with
De Minimis Waste Contributors Under CERCLA Section 122(g)(l)(A)"
(July 30, 1993).
OSWER Directive 9834.7-1C, "Methodology for Early De Minimis Waste
Contributor Settlements Under CERCLA Section 122(g)(l)(A)" (June
1992).
OSWER Directive 9834.7-IB, "Methodologies for Implementation of
CERCLA Section 122(g)(l)(A) De Minimis Waste Contributor Setde-
ments" (December 20, 1989).
OSWER Directive 9835.9, "Guidance on Landowner Liability Under
Section  107(a)(l) of CERCLA, De Minimis Settlements Under Section
122(g)(l)(B) of CERCLA, and Settlements with Prospective Purchasers of
Contaminated Property" (June 6, 1989).
OSWER Directive 9834.7-1A, "Interim Model CERCLA Section 122 (g)
(4) De Minimis Waste Contributor Consent Decree and Administrative
Order on Consent" (October 29, 1987).
OSWER Directive 9834.7, "Interim Guidance on Settlements widi De
Minimis Waste Contributors Under Section 122(g) of SARA" (June 19,
1987).
A Non-Binding Allocation of Responsibility (NEAR) is an allocation of die
total costs of response among the PRPs at a facility. Section 122(e)(3) of
SARA allows EPA to develop NBARs and authorizes the Agency to provide
NBARs to die PRPs at its discretion. While NBARs may be useful, die
PRPs at multi-party sites usually undertake the allocation themselves.
NBARs are not binding on die government  or die PRPs and may not be
admitted as evidence in court. The costs associated with Agency prepara-
tion of an NEAR are to be paid by die PRPs.
NEAR preparation depends primarily on  die type and completeness of
volumetric data available at die site. The NBAR allocation process is based
primarily on the volume contributed by die  PRPs, although other factors,
such as toxicity and mobility of the hazardous substances and relative
treatment costs, may be considered. The allocation process is dependent on
information collected  during die PRP search.
The RPM and regional counsel have primary responsibility for developing
NBARs. NBARs may be prepared if requested by a substantial percentage
of die PRPs. When prepared, NBARs are usually developed toward die end
of die RJ/FS, but timing may vary. NBARs may be provided to die PRPs
after completion of die RI/FS. PRPs may use NBARs to reach agreement
among themselves regarding negotiating positions with EPA. EPA has
developed NBARs to facilitate setdements in a few cases (e.g., Resolve in
Region 1 and  Hassayampa in Region 9).
The NBAR allocation to each PRP may differ from die volumetric ranking
presented in SNLs. In SNL volumetric rankings, die volume each PRP
contributed is presented widiout adjustments. In NBARs, volume from

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  8-34    RD/RA Negotiations/Settlement
                                non-viable parties and orphan shares is distributed among the known viable
                                PRPs. This adjusted figure is further modified in light of the following
                                settlement criteria:

                                  •   Strength of the evidence against the PRPs.
                                  •   Ability of the PRPs to pay.
                                  •   Litigative risks in proceeding to trial.
                                  •   Value of obtaining the present sum certain.
                                  •   Inequities and aggravating factors.
                                  •   Nature of the post-settlement case.
                                Reference
                                OSWER Directive 9839.1, "Interim Guidelines for Preparing Non-Binding
                                Preliminary Allocations of Responsibility" (May 16, 1987).

8.2.1.5    Orphan Share    At sites where there is an orphan share component, compensation should be
          Compensation    made to  those PRPs who are willing to perform the cleanup of the site.
                     Policy    Orphan share compensation is generally made through settlements such as
                                RD/RA CDs or Non-Time-Critical (NTC) removal AOCs/CDs, but can be
                                made on a discretionary basis through cost recovery settlements. This
                                compensation is necessarily subject to the adequacy of funding of the clean-
                                up program.  Therefore, the Agency has limited orphan share compensation
                                to 25 percent of die projected cost of the remedial action at the site.
                                The orphan share is that share of responsibility which is specifically attribut-
                                able to identified parties EPA has determined to have each of the following
                                characteristics:

                                  •   The party is potentially liable.
                                  •   The party is insolvent or defunct.
                                  •   The party is unaffiliated with any party potentially liable for response
                                      costs at the site.
                                This definition of orphan share does not include die following:

                                  •   Unallocable waste.
                                  •   The difference between a party's share and its ability to pay.
                                  •   Shares attributable to "de micromis" contributors, MSW contribu-
                                      tors, or certain lenders or residential homeowners diat EPA would
                                      not ordinarily pursue for cleanup costs.
                                Compensation for the orphan share component of the federal compromise
                                should be maximized as long as it does not exceed any of die following:

                                  •   The orphan share.
                                  •   The sum of all unreimbursed past costs and EPA's projected future
                                      costs of overseeing die design and implementation of die ROD
                                      remedy or NTC removal costs.

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                                                                                                8-35
                                  •   Twenty-five percent of the projected ROD remedy or NTC removal
                                      costs at the site.
                               Regions may, at their discretion, decide that compensation less than the
                               maximum amount is appropriate after consideration of equitable factors,
                               including the following:

                                  •   Fairness to other PRPs, including small businesses, MSW parties,
                                      small volume waste contributors, and certain lenders and
                                      homeowners.
                                  •   PRP cooperation.
                                  •   The size of the orphan share.
                               References
                               OECA Memorandum, "Addendum to the 'Interim CERCLA Settlement
                               Policy' Issued on December 5, 1984" (September 30, 1997).
                               OSRE Memorandum, "Interim Guidance on Orphan Share Compensation
                               for Settlors of Remedial Design/Remedial Action and Non-Time-Critical
                               Removals" (June 3,  1996).

8.2.1.6            Special    Special accounts are site-specific, interest bearing subaccounts created
                Accounts    within the Superfund Trust Fund. EPA is authorized by CERCLA section
                               122(b)(3) to retain and use monies received from PRPs to carry out re-
                               sponse actions determined in setdement agreements dirough the creation of
                               special accounts. This enables EPA to use special account funds and interest
                               earned for Fund-financed cleanup at a site, or for disbursement to PRPs
                               agreeing to perform response actions through a setdement agreement.
                               special accounts provide EPA with more flexibility in setding die response
                               costs diat performing PRPs are required to pay, and promote fairness by
                               providing a way for small and/or non-performing parties to contribute to
                               response costs without long-term involvement. Regions are required to
                               separately identify payments for past and  future response costs because only
                               funds paid for future costs can be placed in special accounts. Special
                               accounts provide the following advantages:  accounts can be established and
                               accessed quickly; interest earned can be credited towards response costs or
                               disbursement; account funds retain site-specific designations; and funds can
                               be used by EPA without an annual congressional appropriation. Special
                               account funds may be designated for response actions such as  the following:

                                  •   Actual cleanup activities.
                                  •   EPA oversight costs.
                                  •   A work takeover by EPA if the  PRP fails to perform response efforts.
                                  •   Cleanup at additional OUs at die site.
                                  •   Pursuit of non-setdors.
                                  •   Cost overruns or remedy failure.
                               To  receive a special account  disbursement, PRPs must agree to perform
                               response actions pursuant to a setdement agreement such as an AOC or a

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8-36    RD/RA Negotiations/Settlement
                             CD.  EPA will not provide special account funds to PRPs performing
                             response actions pursuant to a UAO. Disbursements should follow written
                             certification by EPA of PRP completion of work at a site. If cleanup work
                             is performed in phases, disbursements following completion of phases of
                             response work are an acceptable alternative to disbursement after comple-
                             tion of all work. Phased disbursements should be made in conjunction with
                             major PRP performance milestones such as RD completion.
                             A settlement agreement that includes disbursement of special account funds
                             should contain certain minimum terms to ensure consistency and proper
                             administration of disbursements. These provisions include the following:

                               •   Identification of the special  account.
                               •   Documentation and certification that must be submitted to EPA by
                                   the setding party to receive a disbursement.
                               •   Timing and amount of special account disbursements.
                               •   Termination of disbursements.
                               •   Recapture of disbursements.
                               •   Transfer to the Fund of funds remaining in the special account after
                                   completion of the response action.
                               •   Covenant not to sue the United States.
                             Further description of these elements can be found in the "Interim Final
                             Guidance on Disbursement of Funds from EPA Special Accounts to
                             CERCLA Potentially Responsible Parties" (November 3, 1998).
                             With the exception of disbursements agreed upon in settlements,  it is
                             Agency policy to transfer all special account balances to the Fund when a
                             balance remains in a special account due to overestimation of future re-
                             sponse costs, or when funds held in reserve are not used.  This transfer
                             should take place once PRPs have completed response actions and EPA has
                             liquidated all other obligations. Termination of disbursement may occur for
                             various reasons such as the trigger of a settlement provision for EPA work
                             takeover or work stoppage, or Agency determination of false, inaccurate, or
                             incomplete PRP submission of response information. In all instances, once
                             termination occurs, no further disbursements will be made under the
                             original agreement.
                             References
                             OSRE Memorandum, "Interim Final Guidance on Disbursement of Funds
                             from EPA Special Accounts to CERCLA Potentially Responsible Parties"
                             (Novembers,  1998)
                             OSRE/Office of the Comptroller, "Update and Implementation of the
                             Superfund Reform on Special Accounts" (February 7, 1997)
                             OSRE Memorandum, "Transmittal of Special Account Short Sheet"  (March
                             27, 1996).

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                                                                                                 5-37
8.2.J
  Processing
           Final
Settlements
8.2.K
      Referral
      Package
In order to finalize a settlement within established timeframes, it is impor-
tant to negotiate during the first 60 days after SNLs are issued rather than
wait for the GFO before negotiating.  Once the GFO has been received, the
negotiation team and die PRPs should move quickly to finalize a settlement.
Historically, die most successful method of finalizing a setdement has been
for die government (EPA/DOJ) to develop iterative drafts of the CD that
show changes on which PRPs comment. This process provides rapid
identification of major substantive issues requiring review by odier layers of
management or more extensive discussion.
It is very important to have die drafts  reviewed quickly by all parties because
of die tight negotiation deadlines.  It is important to establish and adhere to
deadlines.  Section 106(a) UAOs, especially widi delayed effective dates, are
an effective tool in driving PRPs who have considerable interest in doing die
work but are delaying negotiations to  perform die RD/RA.
The RA, in consultation with DOJ, is expected to be die primary decision
maker on CERCLA setdement issues.  Headquarters and regional authority
for finalizing setdements is discussed in die first section of diis chapter.

While die settling PRPs are in die process of signing die CD, die RPM  and
regional counsel must prepare a referral package for formal transmittal of
die agreement to DOJ.  If the settlement has not been delegated, die goal is
to ensure rapid concurrence from OSRE on the referral package. The
referral package must include the following:

   •   10-point setdement document.
   •  Draft complaint.
   •  Signed CD  (including the technical attachments, such as the SOW).
The DOJ referral package should identify the relief outstanding, including
any past costs, and set forth a strategy  for pursuing non-settlors. It should
also identify non-setdors and assess their liability, their contributions to  the
site, both individually and as compared to die setdors (with backup and
including percentages),  and their ability to pay.  If costs are to be written off
or not pursued, die rationale must be documented. Additionally, OSRE
and DOJ should be notified of the referral and any non-settlors that will
remain after settlement.
The RPM must also identify die resource needs for oversight of the RD/RA
and begin preparations  to obtain a third party RD/RA oversight contractor.
For RD/RA setdements that are delegated to the regions, the completed
referral package must be sent to DOJ,  with  a copy to OSRE. The prepara-
tion of the final referral package should take approximately 45 days. The
final referral package must be signed by the RA. For non-delegated settle-
ments, the setdement is sent to OSRE with a copy to DOJ.  OSRE must
formally approve the CD, which is then sent to DOJ. After  DOJ formally
receives the CD, DOJ concurs on the  CD and lodges it in court. DOJ
must also provide notice of die decree  in the Federal Register for a 30-day

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  8-38    RD/RA Negotiations/Settlement
8.2.L   Inducements
                        to
        Non-Settlors/
         Enforcement
                Options
8.2.L.1           Section
                    106(a)
                Unilateral
         Administrative
                   Orders
public comment period. The negotiation team is responsible for preparing
EPA's responsiveness summary to public comments. Non-settlors and other
members of the public may object to die settlement through adverse
comments. The negotiation team should try to anticipate these objections
in order to minimize complications widi the court. The court will review
the public comments and EPA's responses before deciding whether to
approve the settlement. Upon approval, the decree is entered as a final
judgment of the court. Exhibit 8-5 diagrams a suggested timeline for pre-
referral negotiation procedures.
Where OSRE has a consultation role, the draft package should be submit-
ted to OSRE for review. The final package, however, is not required to
physically pass through the concurrence chain.

If negotiations for PRP implementation of the RD/RA do not result in
setdement, the Agency has several enforcement options. The region may
issue a section 106(a) UAO, compelling the PRPs to implement the RD/
RA.  The region also may choose to litigate the case under section 106 of
CERCLA. Section 106(a) UAOs generally precede section 106 referrals.
EPA also may use die Fund to implement die RD/RA, then DOJ may sue
PRPs for cost recovery under section  107 of CERCLA. If there is a partial
setdement, depending on die nature of die outstanding relief, the govern-
ment may use section 106 or section  107 authorities.  Sample language for
UAOs to be issued to parties expected to comply and parties not expected
to comply can be found in the attachments of the memorandum, "Trans-
mittal of Sample Documents for Compliance Monitoring" Quly 1> 1996).

The Regional Administrator is authorized to issue section 106(a) UAOs to
compel the PRPs to implement the RD/RA. PRPs have a strong incentive
to comply, since sections 106 and 107 authorize a court to assess penalties as
well as treble damages for non-compliance widiout sufficient cause. Section
106(a) UAOs  require a showing of imminent and substantial endanger-
ment.
The region should be prepared to issue a UAO if the PRPs fail to provide a
good faith setdement offer by the end of the first 60 days of the special
notice moratorium, or if it is clear that no setdement will be achieved in the
negotiation timeframe allowed. In addition, unless an extension of the
negotiation period beyond the 120 day  moratorium is justified by an
agreement in principle and substantial progress in finalizing a CD, a
planning goal  should be to issue a UAO promptly after the 120 day morato-
rium expires.
If regions are planning to use Fund monies to finance an RD or an RA start
at a site, they should consult with OSRE and describe their reasons for not
issuing a UAO to the PRPs.
The issuance of unilateral orders must be considered before a Fund-financed
response proceeds at a site. Typically, UAOs should be issued at the end of
the special notice period if setdement is not reached at a site, an extension
of negotiations is not warranted, and the case meets statutory criteria and

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                                                                 8-39
case-specific considerations. If negotiations are extended, then issuance of a
unilateral order with a delayed effective date, commencing at the end of the
extension period, should be considered.
When determining who should be included in a UAO, the region should
start with the presumption that all PRPs should receive the UAO. It can
dien exclude specific PRPs if an appropriate reason for exclusion exists.
Agency policy specifies only a few reasons that regions may properly cite to
justify the exclusion of a PRP from a UAO:

   •  Weakness in the evidence of the party's liability.
   •  A financial inability of the party to contribute to the cleanup.
   •  A relatively minor contribution by the PRP to  the site conditions.
   •  Prior agreement of the PRP to bear its "fair share" of the cleanup.
   •  Manageability concerns raised when a region decides it cannot
      readily handle all of the remaining PRPs given  its limited resources.
Regions face three separate documentation requirements relating to equi-
table issuance of UAOs. The first requirement calls for regional staff to
document their reason(s) for proposing that certain PRPs be excluded from
a UAO to be issued. "In justifying an exclusion, staff may, for example,
discuss the de minimis amount of waste sent by a particular PRP, concerns
about the strength of EPA's evidence  against a certain party, or the party's
weak financial status. This documentation should be set forth in the UAO
package submitted to the regional decision maker so that senior manage-
ment is aware of, and concurs in, the exclusion of these PRPs. The second
requirement calls for regions to confirm in writing diat they have not
identified any other PRPs in cases where they report that no PRPs were
excluded from the order. For example, if a region determines that there is
only one PRP for a site, it must document this determination when it
prepares a UAO for that PRP.  Finally, the third requirement applies to
decisions not to issue UAOs to late-identified PRPs, i.e., PRPs who are
identified after other PRPs assume the obligation to conduct the cleanup.
When a region identifies a PRP at such a stage, it should consider issuing a
UAO requiring the respondent to Participate and Cooperate (P&C) with
the other PRPs. Sample language for a P&C order can be found in the
attachment to the July 1, 1996 "Transmittal of Sample Documents for
Compliance Monitoring."  In seeking regional management's approval not
to issue a P&C order to a late-identified PRP, the regional staff should
document its rationale for non-issuance. For all three requirements, a copy
of the required documentation should be submitted to OSRE no later than
two weeks after issuance of the UAO (or the decision not to issue a UAO).
References
OSRE Memorandum, "Transmittal of Sample Documents for Compliance
Monitoring" (July 1,  1996).
OSWER Directive 9833-0-2(b), "Model Unilateral Administrative Order
for Remedial Design and Remedial Action Under Section 106 of CERCLA"
(March 30, 1990).

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  8-40    RD/RA Negotiations/Settlement
                               OSWER Directive 9833.0-la, "Guidance on CERCLA Section 106(a)
                               Unilateral Administrative Orders for Remedial Designs and Remedial
                               Actions" (March 7, 1990).

8.2.L.2    Enforcement    Under a joint and several liability scheme, the Agency has discretion when
               Discretion    deciding whom to pursue in an enforcement action. Examples of the use of
                               "enforcement discretion" include the following:

                                  •    The July 1991 "Policy Toward Owners of Residential Property at
                                      CERCLA Sites" states that enforcement actions generally will not be
                                      taken against owners of residential property located on Superfund
                                      sites.  A potential exception to this policy would be if a homeowner's
                                      activities resulted in a release of a hazardous substance.
                                  •    Where hazardous substances have come to be located on or in a
                                      property solely as the result of subsurface migration in an aquifer
                                      from a source or sources outside the property, EPA generally will not
                                      take enforcement action against the owner of such property to
                                      require the performance of response actions or the payment of
                                      response costs.
                                  •    EPA's policy addressing municipalities and municipal wastes contains
                                      two primary themes:
                                         EPA generally will not pursue generators and transporters of
                                         primarily MSW and sewage sludge, but will make settlements
                                         with such parties available at co-disposal landfills, if requested.
                                         Such settlements generally will be based on the unit cost of
                                         $5-30 per ton.
                                         Municipalities named as PRPs will be treated in the same way as
                                         private parties in the settlement process, unless a municipality is
                                         an owner or operator of a co-disposal landfill. At co-disposal
                                         landfills, EPA generally will seek 20 percent of site response costs
                                         from the municipal owner/operator.  In some cases, EPA may
                                         offer settlements varying from the 20 percent presumption, but
                                         generally will not seek more than 35  percent of site costs. In all
                                         cases, municipal owners/operators who are unwilling to settle
                                         with EPA are subject to joint and several liability at the site.
                                  •    An agreement with a covenant not to sue a prospective purchaser
                                      may be considered if it will have substantial benefits for the govern-
                                      ment and if the prospective purchaser satisfies other criteria. EPA
                                      may reject any offer if it determines diat entering into an agreement
                                      with a prospective purchaser is not sufficiently in the public interest
                                      to warrant expending the resources necessary to reach an agreement.
                                  •    EPA policy states that "de micromis" parties, who have contributed
                                      only a minuscule amount of waste to a site, should not participate in
                                      financing the cleanup. Therefore, "de micromis" settlements may be
                                      effected without any exchange of money.

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                                                                                              8-41
8.2.L.3
 Section 106
   Litigation
8.2.L4
         Fund
8.2.L.5
       Partial
Settlements
References
OSRE Memorandum, "Policy for Municipality and Municipal Solid Waste
CERCLA Settlements at NPL Co-Disposal Sites" (February 5, 1998).
OSRE/DOJ Memorandum, "Revised Guidance on CERCLA Setdements
with De Micromis Waste Contributors" (June 3, 1996).
OECA Memorandum, "Guidance on Agreements widi Prospective Purchas-
ers of Contaminated Property" (May 24, 1995).
OSRE Memorandum, "Policy Towards Owners of Property Containing
Contaminated Aquifers" (May 24, 1995).
OSWER Directive 9834.6, "Policy Toward Owners of Residential Property
at Superfund Sites" (July 3, 1991)
OSWER Directive 9834.13, "Interim Policy on CERCLA Settlements
Involving Municipalities and Municipal Wastes" (December 6, 1989).

The Regional Administrator may decide to refer a case to DOJ for section
106 litigation. The region must prepare a  referral package for such cases.
The referral package  is similar to that described in Chapter 12, Cost
Recovery.
Section 106 litigation also requires that the Agency prove that the site
constitutes an imminent and substantial endangerment to human health or
the environment. This standard may be met using data from the risk
assessment created as part of the RI.
Reference
OE/OSWER Memorandum, "Strategy for CERCLA Section 106 Litigation
Support" (January 28, 1991).

The use of the Fund  to implement the RD may be limited by regional
availability of Fund monies. If die PRPs have been recalcitrant or the region
has decided to fund the  RD if die negotiations fail, advance planning is
crucial. A "planned obligation" must be targeted in the Superfund Compre-
hensive Accomplishments Plan (SCAP) in  the fiscal year negotiations where
the obligation is targeted. This target is counted against the region's total
Fund budget. In some cases, die scheduled initiation of Fund-financed
activity may encourage recalcitrant PRPs to setde.

The application of the setdements incentives/disincentives concept may
result in a partial setdement for less than full relief. If some or all past costs
are deferred to non-setdors, EPA may pursue them under section 107.
Under mixed funding settlements, the recalcitrant PRPs may be held liable
for die Agency's costs in implemenung the RD and RA, RD/RA oversight
costs, and past costs.
If die CD covers less than all the remedial  work, EPA may "carve out"
discrete portions of the remedy for which recalcitrants may be held liable.

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                                                              8-43
OSRE Memorandum, "Drafting Guidance for Revised Interim Supplemen-
tal Environmental Projects Policy" (August 1995).
OSRE Memorandum, "Standardizing the De Minimis Premium" Quly 7,
1995).
OSRE Fact Sheet, "Existing Ability to Pay Guidance and Models" (May
1995).
OSRE Memorandum, "Interim Revised EPA Supplemental Environmental
Projects Policy" (May 8, 1995).
OWPE/OE Memorandum, "Communications Strategy for Settlements
with Small Volume Waste Contributors" (September 30, 1993).
OSWER Directive 9834.7-ID, "Streamlined Approach for Settlements with
De Minimis Waste Contributors under CERCLA Section 122(g)(l)(A)"
(July 30,1993).

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  8—44    RD/RA Negotiations/Settlement
8.3
8.3. A
             Planning and Reporting Requirements

Budget   The RPM should be involved in the development of budget estimates for
             post-RI/FS support needs.  Post-RI/FS budget needs include RD/RA
             negotiations, referral development, and litigation support. The standard
             budgets for the support activities are the following:
8.3.B       Reporting
        Requirements
                                    RD/RA negotiations:
                                     (for three quarters)
                                    Referral development:
                                     (for three quarters)
                                    Litigation support:
                                     (for ongoing quarters)
                                          $24,000
                                          $15,000 for 106, 106/107
                                          $20,000 for 106, 106/107 Litigation
                •   RD/RA Oversight       $37,500 per quarter
                     (four quarters for RD,
                     six quarters for RA)
             Headquarters and the regions have formed a workgroup which will assess
             pricing issues and recommend new pricing guidelines. The primary con-
             tract vehicle for RD/RA negotiations support is Enforcement Support
             Services (ESS) contracts. The primary contract vehicle for RD/RA over-
             sight is Remedial Action Contracting Strategy (RACS).
             The negotiation team should see if RD and/or RA funding from Superfund
             is available as an option to be used if negotiations fail. Since the potential
             demands on  the Fund exceed its size, monies may not be available to initiate
             Fund-financed activity.  For example, RA funding will first require ranking
             to determine eligibility and position in the RA prioritization queue.  If
             funds are available, monies will be committed for die fiscal quarter in which
             negotiations  are scheduled to conclude.  Initiation of Fund-financed  activity
             should be planned in the fiscal year preceding the scheduled activity,  due to
             the potentially large amount of money required for RD and RA activities.
             The availability of Fund money to implement the RD and RA is a valuable
             tool to force  the PRPs to negotiate.

             The RPM must review and update the information in EPA's automated data
             systems  as events happen. That is, events should be tracked in the data base
             on a real time basis. Depending on the region, RPMs are responsible for
             entering accurate information into CERCLIS 3/WasteLAN or providing
             that information to the Information Management Coordinator (IMC)  for
             entry into CERCLIS  3/WasteLAN.  The RD/RA negotiation milestones
             (actual start date, date of issuance of special notice) must be entered into
             CERCLIS 3/WasteLAN. A matrix of SCAP targets relevant to RD/RA
             negotiations  is presented as Exhibit 8-6.

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                                                                8-45
8-6    SCAP Targets for RD/RA Negotiations
Activity
RD/RA Negotiation
Start
RD/RA Negotiation
Completion
SCAP
Target/Measure
X
X
Quarterly
Target
X
X
Annual
Target
X
X
RD/RA negotiations start when one of the following occurs:

   •   The first SNL is signed.
   •   A section 122(a) waiver of SNL is signed.
If the region does not plan to conduct RD/RA negotiations, dates should
not be entered into WasteLAN. Planning for the start of RD/RA negotia-
tions is site-specific.  This is a SCAP target.
RD/RA negotiations end when one of the following occurs:

   •   A signed CD  (section 106 or 106/107 referral with settlement) for
      RD/RA and 10-point analysis are referred by the region to either
      DOJ or OSRE.
   •   A section 106 or 106/107 injunctive referral to compel the PRPs to
      perform the RD/RA is referred to DOJ or OSRE. (OSRE prefers
      that a UAO be issued prior to initiating an injunctive referral.)
   •   A UAO for RD/RA or RA only to initiate site work is signed by the
      Regional Administrator (RA).
   •   EPA and PRPs proceed  to trial under an existing case.
   •   An AOC for RD only is signed by the RA.
   •   Funds are obligated for a Fund-lead RD.
   •   If RD funds are not available, and the region decides that a UAO is
      not appropriate, and OSRE concurs with this decision in writing,
      the negotiation completion date is the date of the OSRE memoran-
      dum concurring with the regional decision.
The negotiation completion date is the date on the  transmittal  letter for the
CD, die date on the  transmittal letter widi the injunctive referral, the date
die UAO is signed by the RA, the date die trial begins, the date funds are
obligated, or die date on  the OSRE memorandum.  RD/RA negotiation
outcomes are SCAP targets planned site specifically in WasteLAN.
A matrix of SCAP measures relevant to RD/RA negotiation outcomes is
presented as Exhibit 8-7

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8-46    RD/RA Negotiations/Settlement
                             8-7    SCAP Measures for RD/RA Negotiation Outcomes
Activity
Section 106, 106/107
Case Resolution
De minimi's Settlements
and Number of PRPs
(S/E-3a)
Mixed Funding Settlements
State Consent Decree (CD)
SCAP
Plan/Report
X
X
X
X
Quarterly
X
X
X
X
Annual
X
X
X
X
                             The following are definitions for RD/RA negotiations outcomes:

                               •   Section 106, 106/107, 107 Case Resolution - Case resolution is
                                   the conclusion of a section  106, 106/107, or 107 judicial action by a
                                   full settlement, a final judgment, a case dismissal, or a case with-
                                   drawal. Credit for case, resolution is given when one of the following
                                   occurs:
                                      A CD is entered in the court fully addressing the complaint with
                                      all parties.
                                      The case is withdrawn or dismissed.
                                      A trial is concluded and a judgment is entered fully addressing
                                      the complaint.
                                   The case resolution date (activity actual completion date) is the same
                                   as the milestone date and is defined as one of the following:
                                      The date the CD is entered.
                                      The date the case is withdrawn.
                                      The date the case is dismissed.
                                      The date the judgment is entered.
                                   This is a SCAP reporting measure.
                               •   Mixed Funding Settlements - Administrative or judicial settlements
                                   under section 106 or  106/107 and section 122(b)(l) of SARA.
                                   There are diree types of mixed funding settlements:
                                   preaudiorization, mixed work, and cashout.
                                   This measure includes mixed funding settlements in the form of a
                                   CD or AOC between EPA and the PRPs. Credit for the CD is the
                                   date on the RA's memo transmitting the referral to OSRE or DOJ as
                                   recorded in WasteLAN. Credit for the AOC is based on the date it
                                   is signed by the RA as recorded in WasteLAN.
                               •   State CD for RD/RA - Judicial agreement between the state and the
                                   PRPs fully or partially setding a claim under CERCLA. The settle-
                                   ment may be for response work, or both response and cost recovery

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                                                                 8-47
      work.  Credit for this accomplishment is given the date the state CD
      is signed by the last state official or party. All WasteLAN coding
      requirements for CDs apply. The enforcement activity type should
      be State Decree and the date should be reported in the actual
      completion date field. In addition, the remedy field must denote
      that the CD was issued for RD and/or RA.  This is a SCAP reporting
      measure, not a targeted activity.
   •   De Minimis Settlements and Number of PRPs - This addresses
      administrative or judicial settlements that were reached solely under
      section 122(g) of CERCLA, with PRPs who qualified as de minimis
      parties. This settlement involves the established de minimis portions
      of die response costs at the site and is embodied in a CD or an AOC.
      If the Fund response costs at the site exceed $500,000 (excluding
      interest), the AOC can only be issued with prior written DOJ
      approval. If DOJ neither approves nor disapproves the AOC within
      30 days,  the AOC is considered approved and can be issued.  (DOJ
      and the RA can agree to extend this 30-day period).
      Credit is given for a final settlement when an AOC is signed by the
      RA or when the RA signs the memo transmitting die CD to OSRE
      or DOJ.  The number of PRP signatories to each settlement also
      must be reported. The settlement category  for de minimis must be
      entered into WasteLAN.
Reference
OSWER Directive 9200.3-14-1D, Superfund/OilProgram Implementation
Manual (updated biennially).
SCAP/OIL Quick Reference Coding Guide.

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  8-48    RD/RA Negotiations/Settlement
8.4
8.4.A
          Poor
    Relations
 Among the
          PRPs
8.4.B
     Multiple
Revisions to
          Draft
     Consent
       Decree
Potential Problems/Resolutions

This section addresses some of the common problems that arise during RD/
RA negotiations. While each region has different methods of resolving
these problems, this section discusses some of the more effective regional
experiences.

The RPM and regional counsel should help die PRPs to coalesce into a
steering committee. A steering committee, in addition to other advantages,
is a useful organization for resolving antagonisms that can arise between
PRPs, especially at large sites, during the remedial process. The RPM and
regional attorney should also recommend the use of Alternative Dispute
Resolution (ADR) methods to assist the PRPs in resolving their disputes.
Use of ADR can have die following benefits:

   •   ADR typically reduces transaction costs for dispute resolution.
   •   ADR tends to focus mediated negotiations on resolving real issues,
      radier dian posturing, and is less likely to get derailed by personality
      conflicts.
   •   In ADR mediation, parties are more likely to identify settlement
      options diat are tailored to their particular needs.
   •   ADR alleviates time-consuming burdens placed on EPA for organiz-
      ing negotiations, particularly in multi-party cases, because a neutral
      diird party is available to handle diese responsibilities.
A fact sheet is available diat contains a detailed description of die ADR
process. Information discussed in the fact sheet includes an ADR  nomina-
tion memoranda and information on ADR specialist consultation  and ADR
funding.
Should efforts to achieve cooperative consensus prove unsuccessful, mixed
funding may be appropriate if the great majority of parties are cooperative
and only a minority are recalcitrant.
Reference
OSRE Memorandum, "Use of Alternative Dispute Resolution  in Enforce-
ment Actions" (May 1995).

Disagreements over specific language may cause numerous revisions in the
draft CD and delays in the negotiations. The Agency's policy is diat strict
negotiations deadlines help force the PRPs to settle on language to be
included in die CD. Regional and DOJ insistence.diat settlements adhere
strictly to model language, unless a strong justification can be presented for
not doing so, also aids in bringing negotiations to a close. To avoid delays,
the negotiation team should insist on short deadlines on revisions to  CD
drafts.  Furthermore, weekly or biweekly meetings with die PRPs are
advised. These meetings should be scheduled well in advance, so diat all
parties are aware of the schedule for preparing revised drafts of the CD.

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                                                                                              8-49
8.4.0
 Settling with
           Major
 Contributors
                at
   De Minimi's
   Settlement
           Sites
8.4.0
 Use of Public
      Relations
8.4.E
   Inadequate
PRP Searches
In some situations, major contributors to a site may be reluctant to negoti-
ate RD/RA settlement terms after some PRPs have settled early under de
minimis provisions. The Case Team may be able to avoid conflict with
major parties by soliciting settlement proposals from them prior to finaliz-
ing settlement terms with de minimis PRPs. Additionally, the negotiation
team may find it beneficial to explain the following advantages of de
minimis settlements to the major parties:

   •   In cases where  there are numerous PRPs, it may not be practicable
      and in the public interest to sue all small parties. Early de minimis
      setdements, dierefore, may save major parties the expense and time
      of litigation.
   •   EPA will require premiums from de minimis settlors.
   •   Monies from early de minimis setdements may provide start-up funds
      for major-party conduct of RD/RA activity.
It also may be helpful for the negotiation team to keep die major party
steering committee advised of die status of de minimis setdement negotia-
tions.
Effective use of die media may increase die impact of settlements on die
PRP community by providing examples of PRP participation in setde-
ments. Publicizing PRP participation in settlements creates an incentive for
future PRP participation in odier setdements and enhances die public
policy implications of setdements, dius providing PRPs with a policy
rationale for dieir efforts. Additionally, press coverage of critical pre-
setdement actions (e.g., issuance of special notice, commencement of
negotiations) may be an effective tool in creating pressure on PRPs to setde
expeditiously and cooperatively.  RPMs should identify sites as candidates
for die use of public relations tools as early as possible and enlist the assis-
tance of Regional Office of Public Affairs staff.

Negotiating PRPs  may be less willing to setde when some of die PRPs at die
site have not been  identified or evidence of liability against identified PRPs
is not strong enough for diose PRPs to decide to settle for dieir full share of
cleanup  costs. The negotiation team should work closely widi die  PRP
search team to ensure  a diorough PRP search is conducted and all leads are
investigated. The  negotiation team should ensure that any new information
uncovered during negotiations is  considered against die information
presented in die PRP  search report. New information, when considered
against information discovered during die initial PRP search, may lead to
additional PRPs or increase die evidence of liability against previously
identified PRPs. The  negotiation team should work widi die PRP search
team to  follow up  on any leads that may encourage setdement if new PRPs
are identified during RD/RA negotiations.

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  8-50    KD/RA Negotiations/Settlement
8.4.F               LatG    Many PRPs wait until EPA solicits a settlement to challenge or question
        ChallenaeS tO    EPA's volumetric ranking. This practice can delay the negotiation and
            ...         .      settlement process.  EPA should encourage die steering committee to set up
                               a process for early challenge, or the Agency should set up one itself.
                Ranking

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                                                                                                  5-57
8.5                           Activities Checklist
                                The following checklist is not intended to present an exhaustive set of
                                procedures, nor is it meant to be a chronological list of tasks.  RPMs should
                                exercise dieir professional discretion when deciding what procedures are
                                appropriate for a particular site.
                                1)	     Determine universe of PRPs to extent practicable.
                                            a)	     Are PRPs ranked (particularly generators) by
                                                       volume/waste type?
                                            b)	     If information is missing, can gaps be filled by
                                                       administrative discovery?
                                            c)	     Has a strategy been developed for addressing
                                                       federal and/or municipal PRPs (if applicable)?
                                            d)	     Have GNLs been sent?
                                2)	     Evaluate financial status of PRPs.
                                            a)	     Bankruptcy issues.
                                            b)	     Insurance coverage.
                                            c)	     Possible Superfund lien.
                                3)	     Evaluate liability issues.
                                            a)	     Strength of EPAs evidence.
                                            b)	     Documentation in AR.
                                4)	     Develop strategy for negotiating.
                                            a)	     Assess PRPs' interest in negotiating.
                                            b)	     Facilitate  steering committee development.
                                            c)	     Determine whether EPA should identify and
                                                       solicit a separate setdement for de minimis PRPs.
                                            d)	     Decide whether an NEAR should be developed.
                                            e)	     Decide on negotiation team's roles, (e.g., if there
                                                       are liability issues and remedy issues, consider
                                                       whedier to divide the negotiation team into
                                                       separate units).
                                            f)	     Determine whether Fund and state-share will be
                                                       available to implement the remedy if negotiations
                                                       fail or issue a UAO or initiate judicial action.
                                5)	     Notify and consult with federal and state natural resource
                                            trustees.
                                6)	     Follow special notice (or waiver) procedures.
                                            a)	     Notify DOJ 60 days before EPA issues the SNLs.

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5-52     RD/RA Negotiations/Settlement
                                          b)	     Draft CD including RD/RA SOW or ROD.
                                          c)	     Assess GFO.
                                          d)	     Notify natural resource trustees of special notice
                                                     issuance.
                                          e)	     Monitor moratorium and any extension requests.
                              7)	     Develop cost recovery component of case (including oversight
                                          costs).
                              8)	     Develop strategy for settlement.
                                          a)	     Evaluate whether case is appropriate for separate
                                                     de minimis PRP settlement.
                                          b)	     Assess mixed funding potential.
                                          c)	     Develop appropriate covenants and reopeners.
                              9)	     Ascertain natural resource trustee strategy (e.g., is the trustee
                                          contemplating filing a natural resource claim or authorizing a
                                          covenant not to sue?).
                              10)	    Determine state's role.
                              11)	    Facilitate citizen participation.
                                          a)	     Determine whether any toxic waste tort suit is
                                                     pending.
                                          b)	     Consider use of TAG grant.
                              12)	    Finalize the CD.
                              13)	    Proceed against non-settlors.
                                          a)	     In the event diat settlement negotiations fail, is the
                                                     region prepared to issue a UAO or take section
                                                     106 judicial actions?

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  9. RD/RA
Implementation

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                                                                             9-i
               Chapter 9  RD/RA Implementation


9.1   Description of Activity	1

      9.1.A   Introduction	1
      9.1.B   Overview	2
      9.1.C   Responsibilities	3
      9.1.D   PRP Responsibilities	3
              9.1.D.1   Remedial Design Professional	4
              9.1.D.2   Remedial Action Contractor	5
              9.1.D.3   Quality Assurance Team	5
      9.1.E   EPA Responsibilities	6
              9.1.E.1   Remedial Project Manager	6
              9.1.E.2   Oversight Official and Technical Review Team	7
9.2   Procedures and Interactions	.»	10

      9.2.A   Remedial Design Approach	10
      9.2.B   Design Tasks	10
              9.2.B.1   Design Investigation	10
              9.2.B.2   Design Support	12
              9.2.B.3   Plans and Specifications	12
              9.2.B.4   Construction Schedule	;	12
      9.2.C   EPA Remedial Design Review	12
              9.2.C.1   Remedial Design Professional Qualifications Review	13
              9.2.C.2   Remedial Design Work Plan Review	13
              9.2.C.3   Preliminary Design Review	14
              9.2.C.4   Intermediate Design Review	16
              9.2.C.5   Pre-Final/Final Design Review	16
      9.2.D   Community Involvement Activities	16
      9.2.E   Remedial Action Oversight	16
              9.2.E.1   Remedial Action Work Plan	18
              9.2.E.2   Remedial Action Contractor Qualifications	18
              9.2.E.3   Quality Assurance Team Qualifications	19
              9.2.E.4   Construction Quality Assurance/Quality Control Plans	19
      9.2.F   Preconstruction Conference	20
      9.2.G   Remedial Action  Implementation	20
              9.2.G.1   Remedial Project Manager Role/Responsibilities	 21
              9.2.G.2   Shipment of CERCLA Wastes to Offsite Facilities	21
              9.2.G.3   Oversight Official and Technical Review Team
                      Role/Responsibilities	21
              9.2.G.4   Responding to Immediate Danger or an Emergency	22
      9.2.H   Pre-Final/Final Inspection	22
      9.2.1    Remedial Action  Report	23
      9.2.J   Construction Completion	23

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 9—ii    RD/RA Implementation
9.3   Planning and Reporting Requirements	24

      9.3.A   Remedial Design Activities	24
      9.3.B   Remedial Action Activities	26
9.4   Potential Problems/Resolutions	31

      9.4.A   Oversight	31
      9.4.B   Compliance Incentives and Assistance	31
      9.4.C   Compliance Monitoring	32
      9.4.D   Compliance Enforcement	33
      9.4.E   Site Access	34

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                                                                                               9-1
                      Chapter 9  RD/RA Implementation
9.1                           Description of Activity
9. 1 .A   Introduction    EPA exercises oversight of response actions taken by Potentially Responsible
                               Parties (PRPs) pursuant to an EPA order or Consent Decree (CD) to ensure
                               the response is conducted consistent with the National Contingency Plan
                               (NCP) section 300.400(h). The objectives of PRP oversight by EPA are to
                               ensure that selected remedies being conducted by the PRP are protective of
                               public health and die environment, and are in compliance with the settle-
                               ment agreement.
                               In the past, when PRPs conducted Remedial Design/Remedial Action (RD/
                               RA) activities, die RD did not start until die CD was entered as final by a
                               federal district court judge. As a result, die PRPs' RD/RA projects some-
                               times were delayed for 12-15 months after the Record of Decision (ROD)
                               was  issued.
                               These delays in initiating RDs are not consistent widi die Agency's efforts to
                               expedite site cleanup; dierefore, die initiation of PRP-conducted RD
                               activity is no longer dependent upon die court's entry of the CD. The
                               Agency's strategy is to encourage die PRP to agree to setdements wherein
                               engineering design work can proceed upon die lodging of die CD by EPA,
                               or where litigation is already pending, upon execution of a stipulation
                               obtained before die start of the RD. By implementing this strategy, RD
                               activities may be  initiated before a CD is entered. In such cases, die
                               Remedial Project Manager (RPM) must exercise his/her oversight authority
                               to ensure diat die PRP is conducting die RD in accordance widi the terms
                               of die setdement agreement. This strategy of encouraging die PRP to begin
                               the RD as soon as die setdement is lodged allows PRP-lead projects to begin
                               at approximately die same time as a Fund-lead project would have begun.
                               A focused approach to PRP oversight diat will assist RPMs in concentrating
                               their efforts on die most significant aspects of die projects is recommended.
                               The successful implementation of die focused approach consists of two
                               steps. First, die RPM must focus on certain key documents developed
                               throughout the design and construction of die remedy such as die RD and
                               RAWork Plans, project schedules, Design Criteria Report (DCR), Basis of
                               Design Report (BODR), preliminary design, final design, Construction
                               Quality Assurance (QA) and Quality Control (QC) Plans, and the Contin-
                               gency Plan. The second step is die utilization of a Quality Assurance Team
                               (QAT) during construction.  The focused approach will allow RPMs to
                               utilize dieir oversight activities more efficiently, enabling them to monitor
                               PRP activities more effectively. The ultimate goal of PRP oversight is  to
                               hold PRPs responsible and accountable for implementing die RA in accor-
                               dance with the ROD and CD statement of work.
                               EPA has developed separate guidances for overseeing RDs and RAs, as well
                               as model statements of work for RD/RAs conducted by PRPs.

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  9-2      RD/RA Implementation
                               References
                               Remedial Design/Remedial Action Handbook, EPA 540-R-95-059
                               "Guidance for Scoping the Remedial Design," EPA 540-R-95-025.
                               Office of Solid Waste and Emergency Response (OSWER) Directive
                               9355.5-02, "Guidance for Expediting Remedial Designs and Remedial
                               Actions" (1990).
                               OSWER Directive 9355.5-01, "Guidance on EPA Oversight of Remedial
                               Design and Remedial Actions Performed by Potentially Responsible Parties"
                               Interim Final (April 1990).
                               OSWER Directive 9835.4-2A, "Initiation of PRP-Financed Remedial
                               Design in Advance of Consent Decree Entry" (November 18, 1988).
                               OSWER Directive 9355-1-1, Superfund Federal-Lead Remedial Project
                               Management Handbook (December 1986).
                               OSWER Directive 9355.2-1, Superfund State-Lead Remedial Project Man-
                               agement Handbook (December 1986).
                               OSWER Directive 9355.0-4A, "Superfund Remedial Design and Remedial
                               Action Guidance" (June 1986).

9.1 .B        Overview    When PRPs elect to conduct RD/RA activities at a Superfund site, they
                               must do  so in accordance with the terms of the negotiated settlement
                               agreement (either an Administrative Order on Consent (AOC) or a CD for
                               RDs, but only under a CD for RAs) per section 122 of Comprehensive
                               Environmental Response, Compensation, and Liability Act (CERCLA).
                               Subsequently, PRPs and their agents are responsible for die adequacy of the
                               design and the implementation of remedies specified.  During an enforce-
                               ment lead cleanup, die primary function of EPA is to ensure PRP compli-
                               ance widi all applicable laws, regulations, and requirements, and to meet all
                               performance standards specified in the setdement agreement.
                               EPA has two objectives for overseeing PRP-conducted RD/RAs on enforce-
                               ment lead cleanups:

                                 •   Ensure the  remedies are protective of public healdi and the environ-
                                     ment throughout die life of die project.
                                 •   Ensure die  RA is implemented in compliance widi die terms of the
                                     setdement agreement.
                               The intent of die oversight program is to focus EPA efforts on the most
                               significant aspects  of the project, such as overall QA, scheduling, major
                               changes due to changed field conditions, emergency actions, and project
                               close out. EPA may use a high level of oversight at the onset of die RD and
                               again when die RA is initiated. The amount of oversight effort may be
                               increased or decreased over time, depending on die capabilities of die PRP's
                               design and construction teams, die implementation of a construction QA
                               program, die nature of die technology selected, and die provisions of die
                               setdement agreement. The oversight must always be structured so the

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                                                                                                  9-3
9.1.C  Responsibilities
9.1. D               PRP
        Responsibilities
PRPs, not EPA, remain legally responsible and accountable for the success
of the response action.
This enforcement approach not only conserves Fund resources, it also frees
EPA personnel to work on other sites. The focused approach will help to
ensure that PRPs meet the requirement of implementing a construction QA
program, which is standard industry construction practice. In addition to
reducing the duplication of QA activities, diis will maintain the burden of
QA accountability on the PRP.

Because each Superfund site and RD/RA is unique, there are several accept-
able variations of PRP organizational structure to implement the RD/RA.
Regardless of the PRP organizational structure, however, it is the ultimate
responsibility of the PRP to successfully implement the remedy under die
terms of the setdement agreement.
Exhibit 9-1 presents a simple organizational chart illustrating the relation-
ships in an enforcement lead project in which the PRP conducts the RD/
RA. There are a number of organizations that could be used for conducting
the work, and the best approach will depend on the experience and prefer-
ence of the PRPs.
A "reporting relationship" as shown in Exhibit 9-1 is defined as a direct line
responsibility in which one party, as an agent of die other or under a legal
requirement, is compelled to perform work in accordance widi die terms of
the relationship and to report die results of its work or observations. The
PRP has a "reporting relationship" with EPA as a condition of die setde-
ment agreement, while agents and contractors hired by the PRP have a
similar type of association with the PRP. Where "lines of communication"
are indicated in Exhibit 9-1, it implies diat an information exchange is
highly desirable between parties. Such an exchange is usually necessary for a
successful implementation of a remedy; however, there is no legal require-
ment for such communication. The QAT is used to ensure compliance and
provide unbiased QA monitoring of die RA.
The following  paragraphs discuss die particular roles and responsibilities of
the PRP and EPA in the implementation of an enforcement lead project in
which the PRP does the RD/RA.

The PRPs are legally responsible for die site remediation specified in the
setdement agreement. All work is done under the PRPs control, and diey
are responsible for die long-term performance of die remedy. PRPs provide
the necessary input to affect site remediation, whether done with "in-house"
resources, or through the use of hired contractors and subcontractors.  PRP
responsibilities are apportioned among die RD professional, the RA con-
tractor, and die QAT.

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  9-4      RD/RA Implementation
9-1     Relationships Among Parties When RD/RA is Performed By a PRP































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9.1.D.1
   Remedial
      Design
Professional
The primary function of the RD professional, or design engineer, is to
provide the PRP with a set of plans and specifications for die proposed
remediation that is widiin budget and meets die requirements on schedule.
The RD professional may be an employee of die PRP or may be a private
consulting entity retained under a contractual relationship widi die PRP.
Unless the RD professional has a large and experienced staff, many projects
are sufficiently complex to require the design team to be supplemented with
additional capabilities (e.g., geotechnical, electrical, mechanical, or struc-
tural engineers; field surveyors, or persons widi other specialized skills.)
These specialists may subcontract widi the RD professional or contract
direcdy with die PRP.
In addition to die  above responsibilities, die RD professional usually will be
required to provide a Resident Engineer to act as die PRP's agent on die site
during construction. In some situations die Resident Engineer may be
hired direcdy by die PRP.  In eidier case, diis person is one of die most
critical in establishing and maintaining construction quality on die site.
Typically the Resident Engineer is required to review progress and shop-
drawing submittal schedules; prepare periodic progress reports; make
recommendations  concerning major inspections and tests; interpret plans
and specifications; resolve disputes; draft change orders, field orders, and
work directive changes; conduct the pre-final and final inspection of
completed work widi PRP, RA contractor, EPA, and other agencies; prepare
a Remedial Action Report (RAR) which certifies diat die completed project
has been constructed in accordance with the setdement agreement and diat

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                                                                                                   9-5
                                all performance standards have been met; and determine that certificates,
                                Operation and Maintenance (O&M) manuals, and other required data have
                                been assembled by the RA contractor.

9.1 .D.2         Remedial    An RA contractor's primary responsibility in constructing the RA is to meet
                     Action    the quality standards specified by the design and accepted trade practices.
               Contractor    They are responsible to die PRP for implementing and maintaining the QC
                                program. The RA contractor will obtain all necessary permits and approvals
                                as required by the RA activities; construct the project according to the plans
                                and specifications by supervising and controlling the execution of work,
                                including means, methods and sequences of construction; and maintain
                                "Record Drawings" at the site, properly noting all changes made during
                                construction. In addition, die RA contractor will implement and maintain
                                a construction QC program, identify and report problems, provide qualified
                                testing to demonstrate diat proposed materials and equipment are accept-
                                able, and respond constructively to QC issues.

9.1.D.3            Quality    Quality is conformance to properly developed requirements.  In the case of
                Assurance    construction contracts, these requirements are established by the contract
                      Team    specifications and drawings. The QA process identifies planned and
                                systematic actions that provide confidence diat die completed remedy meets
                                die stated requirements.  The QAT is used to provide this level of confi-
                                dence to die PRP by testing and inspecting die work of die RA  contractor.
                                QC is die system used by the RA contractor to manage, control, and
                                document the compliance widi requirements of all RA activities of the
                                parent firm and diose of suppliers and subcontractors.
                                The QAT includes representatives from testing and inspection organiza-
                                tions, independent of die constructor, who are responsible for examining
                                and testing various materials, procedures, and equipment during the
                                construction. Since the PRP is responsible for the QA of die  remedy, die
                                QAT is retained by die PRP. The QAT members are either employees of the
                                PRP, or are working for die PRP through a contractual arrangement, and,
                                dierefore, have no legal obligation to respond to EPA direction.  Any
                                direction regarding die QAT will come from the PRP. EPA should raise
                                issues regarding die performance of die QAT direcdy with the PRP.
                                The qualifications and expertise of die personnel should be commensurate
                                widi die scope of the project. Typical functions of die QAT include
                                reviewing design criteria, plans, and specifications for clarity and complete-
                                ness; directing and performing observations and tests for QA inspection
                                activities; verifying diat construction QC is implemented in accordance
                                widi die site-specific Construction QA Plan; performing independent on-
                                site inspections of die work to assess compliance widi design criteria, plans
                                and specifications; and reporting to the PRP and EPA die results of all
                                inspections and corrective actions, including work diat is not of acceptable
                                quality or diat fails to meet die specified design requirements.

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 9-6      RD/RA Implementation
9.1.E                EPA
        Responsibilities
9.1.E.1
Remedial
   Project
 Manager
EPA is responsible for protecting public health and the environment and for
ensuring diat PRPs comply with the terms of the settlement agreement.
EPA monitors compliance of die PRPs in dieir implementation of the
remedy. The most successful way for EPA to do this is to vest responsibility
for the project in a single individual within EPA, the RPM.  The RPM may
arrange for or hire an oversight official and assemble a Technical Review
Team (TRT) of professionals widi the technical knowledge necessary to
assist EPA in overseeing PRP-lead RD/RAs. The RPM should take care in
assigning roles and responsibilities to these individuals to maximize  effi-
ciency and avoid duplication of effort.  If appropriate, die RPM may also
choose to personally conduct die responsibilities of die oversight official.

The  RPM is die federal official designated by EPA to coordinate, monitor,
and manage remedial activities.  EPA's role in RD/RAs performed by PRPs
is to  ensure that die remedy complies widi die ROD and the setdement
agreement. The RPM should manage, coordinate, and monitor PRP
activities with die support of die oversight official and TRT, and should be
technically competent to ascertain compliance by the PRP, PRP staff, and
consultants widi die setdement agreement and die ROD.
The  RPM should exercise a high level of oversight at die onset of die
project. As the PRP demonstrates competence in implementing the
remedy, the amount of oversight may be relaxed accordingly. The oversight
program must focus die RPM s efforts on the most significant aspects of the
project, such as overall quality, scheduling, major changes due to changed
field conditions, site safety, emergency actions, and project closeout. This
may  require site inspections at appropriate milestones during execution of
the project.
As described in Chapter VI, RI/FS Implementation, die RPM has ultimate
discretion in determining die appropriate level of oversight to apply at  a site.
The  Superfund administrative reform on PRP oversight reemphasizes diat
die RPM should be alert, especially widi respect to the role of die oversight
official, to manage oversight of RD/RA in a cost-effective manner, while
ensuring that die remedy is protective.
Active participation in die design and construction of die remedy by die
RPM, oversight officials, or TRT, however, is generally inappropriate.
RPMs and/or oversight officials should not serve as technical experts for
technologies or mediods required to implement die remedy.  RPMs who
serve in such a role, or who give direction to PRP employees or consultants,
could undermine and compromise the oversight relationship between EPA
and die PRP, and shift some of the responsibility for die success of die
remedy to EPA. EPA should not be both a player and a referee in PRP-lead
projects.
At a  minimum, the RPM should review and approve die PRP s RD/RA
Work Plans, design submittals, Construction QA and Construction QC
Plans, Contingency Plan, and RAR. The term "EPA Approval" should not
warrant that the technology is sanctioned by EPA as technically acceptable

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                                                                                                 9-7
9.1.E.2
    Oversight
  Official and
     Technical
Review Team
or competent.  The term may be defined in the settlement agreement as
meaning an administrative approval that simply allows the PRP to proceed
to the next step. RPMs should defer to the advice of regional counsel and
EPA guidance regarding the use of the term "EPA Approval."
References
Remedial Design/Remedial Action Handbook, EPA 540-R-95-059.
"Guidance for Scoping the Remedial Design," EPA 540-R-95-025.
OSWER Directive 9355-5-01, "Guidance on EPA Oversight of Remedial
Design and Remedial Actions Performed by Potentially Responsible Parties"
Interim Final (April 1990).
OSWER Directive 9355.1-02, "The RPM Primer: An Introductory Guide
to the Role and Responsibilities of the Superfund Remedial Project Man-
ager" (September 1987).

RD/RA oversight requires knowledge in a  variety of engineering, geological,
and environmental disciplines. Since RPMs rarely possess the requisite
knowledge and experience, it is often necessary to assemble a TRT com-
prised of individuals with such expertise. Exhibit 9-2 provides a list of
possible TRT members, who may be assembled from in-house EPA staff
and/or, from other offices and organizations under some form of contrac-
tual or interagency agreement with EPA. The recommended options
available for oversight support include Response Action Contracts (RACs)
contractors, the U.S. Army Corps of Engineers (USAGE), and the U.S.
Bureau of Reclamation (BUREC).
The responsibilities of an oversight official and the TRT during RD may
include assisting in reviewing the professional qualifications of the RD
professional, RA contractor, and the QAT; reviewing the RD and RA Work
Plans; and reviewing die RD submittals to determine if they are protective
of public health and the environment, comply with the ROD, and will
attain die performance criteria specified in the setdement agreement.
During RA, the oversight official and TRT review die Contractor QA Plans
and schedule for compliance with die approved plans and specifications.
Construction oversight is limited to observing construction and comparing
the work to a set of standards (in diis case, the design plans and specifica-
tions and die Construction  QC Plan prepared by the PRP's RA contractor).

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  9-8      RD/RA Implementation
9-2    Potential Technical Review Team Members
   EPA Regional Personnel

   Technical Support Team
   Ground water Technical Support Unit
   Other experienced RPMs
   ORD personnel
   Off ice of Water
   Office of Solid Waste
   Office of Air
   RCRA representative

   Health and Safety Officer
   Community Relations Coordinator
   Environmental Services Division
   Regional  IGCE Coordinator
   Contracting Officer/Project Officer
   Staff attorney
   Quality Assurance  Manager/Coordinator
Experience Added to Project Team
   •  Specialized technical services
   *  Specialized technical services
   •  RD/RA management experience
   •  Technology experts
   •  Media experts
   •  Media experts
   •  Media experts
   •  Applicable or Relevant and Appropriate
     Requirements (ARARs), regulatory specialists
   •  Health and safety specialists
   •  Experience in communicating with the public
   •  Quality assurance/sampling experts
   •  Costing specialist
   •  Contract/WA administration
   •  Legal expertise
   •  Quality assurance/quality control experts
   State Personnel
   State Environmental Departments
   State natural resource trustees
     State ARARs, procedures, concerns
     Environmental impact/management
   Federal Agencies

   U.S. Army Corps of Engineers
   U.S. Bureau of Reclamation
   U.S. Department of Interior
   U.S. Geological Survey
   Occupational Safety and Health Administration
   National Oceanic and Atmospheric Administration
     Design, construction, and management experience
     Management and oversight experience
     Management and oversight experience
     Management and oversight experience
     Safety and health expertise
     Media and weather expertise
   EPA Contractors
   ARCS/RACs
     Engineering and scientific expertise; RD and
     construction management '
   Local Government Agencies
   Building Inspectors
     Design review plan-checks for compliance with
     building codes
   Community Members
   Community Group (TAG recipient)
     Technical expertise

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                                                                  9-9
The oversight official and TRT also conduct spot checks of the QATs
activities, and review QA reports.  The results of all RA oversight activities
are reported to the RPM.  More detailed guidance on assembling and
utilizing TRTs is provided in the Remedial Design/Remedial Action Hand-
book.
References
Remedial Design/Remedial Action Handbook, EPA 540-R-95-059.
"Guidance for Scoping the Remedial Design," EPA 540-R-5-025.
OSWER Directive 9355.5-01, "Guidance on EPA Oversight of Remedial
Design and Remedial Actions Performed by Potentially Responsible Parties"
Interim Final (April  1990).

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  9-10     RD/RA Implementation
9.2
9.2.A
   Remedial
      Design
  Approach
9.2.B   Design Tasks
9.2.B.1
       Design
Investigation
Procedures and  Interactions
The RD establishes the general size, scope, and character of a project.  It
details and addresses the technical requirements of the RA. The RD begins
with a preliminary design and ends widi the completion of a detailed set of
engineering plans and specifications.
There are two approaches to RD: performance-based and detailed design.
In a performance-based design, basic technical specifications are developed
containing the performance requirements for the work. The RD profes-
sional focuses on defining criteria and process limits.  It is the RA
contractors responsibility to implement a remedial plan that achieves diose
technical specifications.
In a detailed design, information is provided on system integration and on
appropriate equipment for each unit process. The designer chooses equip-
ment, dimensions, controls, size, shape, materials, and installation details.
The contractor builds to these definitive plans and specifications.
In many situations, a mixed design approach is used.  This often occurs for
designs incorporating an innovative or emerging technology for which there
is relatively little information available. In this instance, the designer may
use a performance specification for the innovative technology and a detailed
design for all other aspects.
Exhibit 9-3 presents a flow chart illustrating the RD  process of the focused
approach to oversight. The "diamonds" in the figure  represent decision or
review points that are the RPM's responsibility and are considered critical to
the quality and success of the project.

It often  is necessary to perform design-related tasks (e.g., data gathering and
treatability studies) before starting an RD. In addition, there are other
activities required to be performed during the actual design process to
support the design (e.g., establishment of design criteria and a delivery
strategy, completion of a value engineering study, and implementation of
community involvement activities). Information typically collected during
the predesign phase is shown in Exhibit 9-4, followed by tasks diat are
commonly required in a PRP-performed RD, either as prerequisites to the
design or as pan of the actual design.  Information regarding design tasks
can be found in the "Guidance for Scoping the Remedial Design" docu-
                               ment.
Reference
"Guidance for Scoping the Remedial Design," EPA 540-R-95-025.

There may be instances when all the data required for die RD was not
collected during the Remedial Investigation and Feasibility Study (RI/FS)
phase.  Some RODs prescribe remedies contingent on the results of addi-
tional testing or treatability studies. Additional field data may need to be
collected and evaluated, including geotechnical investigations, ground water
sampling, and surveys (property, utility, right-of-way, topography).

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9-3    Remedial Design Oversight Process
                                                                                             9-11
                PRP
EPA
OVERSIGHT OFFICIAL
                                                 REVIEW PROFESSIONAL QUALIFICATIONS
                DATA
        COLLECTION/TREATABILITY
               STUDY
                                                     REVIEW PRELIMINARY DESIGN
                                    YES
         INTERMEDIATE DESIGN
                                                REVIEW INTERMEDIATE DESIGN (OPTIONAL)
       PRE-FINAL DESIGN
       INCLUDING:
       • CONSTRUCTION QA PLAN
       • CONTINGENCY PLAN
                                        NO
        INITIATE REMEDIAL ACTION
    REVIEW PRE-FINAL/FINAL DESIGN
                                            YES

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 9-12     RD/RA Implementation
                                9-4    Typical Collection of Predesign Information
                                       Initial site conditions (e.g. characteristics, availability of utilities,
                                       restrictions on road use)
                                       Availability of site access (any known restrictions or issues)
                                       Technology/design approach
                                       Performance standards, ARARs, permits
                                       Summary of all available technical information (listing of the source and
                                       description of the data)
                                       Volume of materials to be treated and the accuracy of the data
                                       Unresolved issues (including undecided or unknown performance
                                       standards)
                                       Health and safety concerns
                                       Operation and maintenance (O&M) issues
                                       Historical property boundary ownership information
9.2.B.2
  Design
Support
9.2.B.3        Plans and
           Specifications
9.2.B.4    Construction
                 Schedule
9.2.C               EPA
               Remedial
       Design  Review
During the initial preliminary design phase, the designer details the con-
cepts which will support the technical aspects of the ultimate design.  Much
of the information is based on the results of field data and treatability
studies that may have been completed since the RI/FS.
Besides establishing the design criteria, which primarily address the project's
technical issues, the designer must devise a strategy for delivering the
project. This strategy becomes the management approach to carry out die
actual RA. The management approach normally discusses the procurement
method and contracting strategy, phasing alternatives, health and safety
considerations, review requirements, design schedule, contractor, labor,
equipment availability concerns, and requirements for addressing sampling
and data gathering methods under the Field Sampling Plan (FSP), QA
considerations (Construction QA Plan), and air emissions and spill control
requirements (Contingency Plan).

The RD should produce a set of engineering plans and specifications that
are consistent widi the technical criteria established for the design.  These
documents should present the design information at a level of detail appro-
priate to the  requirements of the project.

A construction schedule should identify major tasks, determine their
duration, and establish milestone dates. It also should identify key issues
which may affect the schedule.
During RD,  EPA, with technical assistance from the oversight official and
TRT, monitors and reviews die  PRP's performance. EPA approval at any
stage of die RD work elements in no way guarantees die success or failure of
the ultimate remedy.  Such EPA approval is analogous to a city issuing a
building permit to a developer for construction of a building. The permit
does not guarantee die building will be structurally sound, it merely indi-
cates compliance with die minimum design criteria and standards of die city

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                                                                                                  9-13
9.2.C.1
     Remedial
         Design
  Professional
Qualifications
        Review
9.2.C.2
     Remedial
         Design
    Work Plan
        Review
for such buildings. The soundness of the building's construction is still the
complete responsibility of the owner. Similarly, EPA's review and approval
of a PRP's work plan or design merely indicates the plan's acceptability with
regard to RA goals in accordance with the ROD and the settlement agree-
ment and does not warrant dial specified performance standards will be met.
The remainder of this subsection presents a standardized approach for the
development of an acceptable design for a remedial construction project.
Depending on die site-specific conditions, including, but not limited to,
site complexity, technologies being used, PRP capacity and cooperation,
public involvement concerns, and the requirements of die CD, die RPM
may abbreviate this process.  If appropriate, die RPM may choose to merge
deliverable documents,  substitute deliverables with briefings, or conduct
tasks concurrendy radier dian consecutively in order to improve the speed
and efficiency of die project and reduce oversight costs as well as the overall
cost of die project. The RPM, however, must be careful not to modify
oversight tasks to die detriment of die quality of die work performed.

The PRP is responsible for selecting the RD professional, subject to the
approval of EPA.  Selecting a qualified designer widi die training, experi-
ence, staff, and capabilities consistent widi die scope of work is an impor-
tant step toward completing a high-quality project.
The RPM, in conjunction with the oversight official andTRT, should
review die qualifications of die RD professional. The resultant analysis is
used to form die basis of the level of oversight employed by EPA during die
RD process. The settlement agreement should require die PRP to submit
die name and qualifications of an RD "Supervising Contractor" to EPA for
review and approval.  If EPA disapproves of the contractor submitted by die
PRP, die PRP submits a list of contractors acceptable to die PRP as "Super-
vising Contractor(s)" to EPA. EPA dien would provide written notice of
the contractors it finds acceptable, from which die PRP may select its
choice.  RPMs should defer to the advice of regional counsel and relevant
language in EPA's  guidance.

The RD Work Plan is the first major deliverable and area of focus for die
RPM, oversight official, andTRT.  It is the  PRP's interpretation of die
setdement agreement and die SOW.  A diorough review of die Work Plan is
essential because it sets die course for die PRP's implementation of die
design portion of the RA. The RD Work Plan should be reviewed for its
thoroughness and approach, and to ensure that it contains at least the
following items: tentative formation of die design  team; a Healdi and Safety
Plan (HASP) for design activities; requirements for additional field data
collection; requirements for treatability studies; a schedule for completion of
die design; design criteria and assumptions; sampling and analyzing plan;
contingency plan; and tentative treatment schemes.
The RPM, oversight official, andTRT should use die results of diis review
and the  evaluation of the RD professional qualifications to establish die
level of initial RD oversight as die designer begins die preliminary design.

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 9-14    RD/RA Implementation
9.2.C.3     Preliminary    The preliminary design review is completed when approximately 30% of
                   Design    the design work has been completed. Major inconsistencies within the
                  Review    design itself should be identified and corrected before the PRPs proceed
                               with the detailed design submissions. Based on the settlement agreement,
                               EPA may be required to review and approve this submission.  The prelimi-
                               nary design submittal should include the BODR, if this report has not been
                               previously provided. This report contains the design criteria analysis and
                               die designer's "Remedial Action Delivery Analysis," which describes proce-
                               dures for procurement of the RA, tells how die RA will be phased, etc. The
                               submittal also should include die results of treatability studies and addi-
                               tional field sampling; preliminary plans, drawing lists, drawings, and
                               sketches; an outline of required specifications; and a preliminary construc-
                               tion schedule. Preliminary design submittal components are noted in
                               Exhibit 9-5.
                               In performing die preliminary design review, die oversight official, TRT,
                               and die RPM use their professional training to assess die feasibility of the
                               design to achieve die RA goals in accordance widi the ROD and setdement
                               agreement. The oversight official and TRT make a  recommendation to die
                               RPM based on the criteria listed below.  The RPM is responsible for
                               deciding whether die design is adequate and if an enforcement action is
                               necessary.
                               9-5     Preliminary Design Phase Submittal Components
                                    + Design criteria report
                                       •  Project description
                                       •  Design requirements and provisions
                                       •  Preliminary PFDs
                                       •  O&M provisions
                                    • Basis of design report
                                       •  Design assumptions
                                       •  RA contracting strategy
                                       •  Permits plan
                                       •  Preliminary easement/access requirements
                                       •  Preliminary P&IDs
                                    * Preliminary drawings and specifications
                                       •  Outline of general specifications
                                       •  Drawings and schematics, including final P&IDs
                                       •  O&M requirements
                                       •  Chemical and geotechnical data
                                    + Results of VE screen
                                    * Preliminary RA schedule
                               Ultimately, die setdement agreement and any document incorporated
                               therein set the performance criteria for the site. The preliminary design
                               review should evaluate the adequacy of the design widi respect to all
                               environmental and public health requirements. A review widi respect to
                               environmental criteria can be done by determining die feasibility of die

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                                                                   9-15
design to meet the performance standards. The preliminary design should
be reviewed with consideration of the following: technical requirements of
the ROD, settlement agreement, and ARARs; currendy accepted environ-
mental protection measures and technologies; standard professional engi-
neering practices; applicable statutes, EPA policies, directives, and regula-
tions; conformance with results of field data and treatability studies; reason-
ableness of estimated quantities of materials specified based on known data;
and conformance of the construction schedule with project completion
goals.
The function of the preliminary design review is limited to ensuring that
the design criteria and the delivery strategy are consistent with the design
requirements of the selected remedy. It should focus only on the environ-
mental aspects of the design. Initially,  the level of review should be limited
to certain tasks, such as verifying that appropriate unit processes are being
employed by die treatment train; confirming that the removal or treatment
efficiencies assumed are reasonable for  both the process and waste (concen-
tration and volume); checking that process waste streams are adequately
identified and addressed, and that flow rates are appropriate; verifying that
the proposed sizing of the process is appropriate and that any site abnor-
malities have been addressed; and spot checking some (about 10 percent)  of
the design calculations.
The review can be expanded if deficiencies are found in any  of these areas.
Approval of the preliminary design only allows the PRP to proceed to the
next step of the design process. It does not imply acceptance of later design
submittals that have not been reviewed, or that the remedy, when con-
structed, will meet performance standards and be accepted.
For complex or high-cost projects, the  designer may call for a Value Engi-
neering (VE) screening and, if warranted, a VE study. The object of VE is
to achieve the lowest life cycle cost consistent with the requirements of the
project. VE efforts, conducted by independent teams trained in VE meth-
ods, focus on the function of the various components of the project seeking
to reduce cost without a loss of quality. Projects which are candidates for
VE are screened early in the design phase.
Screening results, which identify potentially high cost design elements, are
submitted with or before the preliminary design documents. If a VE
screening is submitted, the RPM should  utilize the oversight official and
TRT to evaluate the results  and potential impacts to project  requirements
and schedule. If screening results lead  to a full VE study, the PRP should
provide the RPM widi the results of the study and its determination as to
whether the project schedule or ROD will require any alteration. The RPM
should utilize the oversight official and TRT to evaluate any changes
recommended by the study  to ensure that the requirements of the ROD or
other remedial documents are not adversely impacted.

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 9-16     RD/RA Implementation
9.2.C.4
  Intermediate
         Design
        Review
9.2.C.5
      Pre-Final/
   Final Design
        Review
9.2.D
 Community
Involvement
    Activities
9.2.E
    Remedial
        Action
    Oversight
The submittal of the intermediate design is optional and would normally
only be performed for larger, complex designs or when required by the
setdement agreement. The intermediate design phase is considered com-
plete at the 60 percent stage of design. The design is reviewed to determine
that comments from die preliminary design review have been incorporated.
It is a further refinement of die specifications. The results of treatability
studies and any other data gadiering should be incorporated. If a VE study
has been performed by the PRP, die intermediate design would typically
reflect any design modifications resulting from this study. The intermediate
design should also  include an intermediate O&M Plan. These changes,
plans, and refinements must be evaluated for consistency with the ROD.
Reference
Remedial Design/Remedial Action Handbook, EPA 540-R-95-059.
The pre-final/final design submittals are reviewed for consistency with the
ROD and setdement agreement. The final design submittal package from
the PRP should include die following: final design plans and specifications;
O&M Plan; FSP (including a description of whether die performance
standards have been achieved by the RA); Construction QA Plan; and
Contingency Plan.
The pre-final/final design review is the last review of the RD and should be
based upon the approved preliminary and intermediate design submittals.
The oversight official, TRT, and RPM assess die acceptability of the final
design submittals on die basis of die same considerations used for the
preliminary design, including conformance to the ROD. The approval of
the final design is acceptance that the project may proceed to the next step,
i.e., community involvement activities and preparation of an RAW>rk Plan.

At die conclusion of the RD, the RPM should distribute to the community
and other interested persons a fact sheet on die final engineering design.
The fact sheet enables EPA to inform the public about activities related to
the final design, including die schedule for implementation of die RA, a
description of what die site will look like during construction, the roles of
the PRP and EPA, die Contingency Plan, and any potential inconveniences,
such as excess traffic and noise. The RPM also should provide an opportu-
nity for a public briefing to be held near die site prior to initiation of die
RA. A public briefing may be necessary to address issues such as construc-
tion schedules, changes in traffic patterns, location of monitoring equip-
ment, and die methods by which the public will be informed of progress at
the site.

After completion of the RD,  the RA, during which the actual implementa-
tion of the remedy occurs, begins. Exhibit 9-6 presents a flow chart diat
illustrates the RA process of the focused approach to oversight.  The "dia-
monds" represent critical decision or review points required of die RPM.
The RPM should use a high level of oversight at the onset of die RA. The
appropriate level of oversight is determined by requirements specified in die
setdement agreement, die complexity of die remedy, past performance of

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9-6    Remedial Action Oversight Process
                                                                                            9-17
               PRP
EPA
OVERSIGHT OFFICIAL
        PREPARE RA WORK PLAN
                                        REVIEW RA WORKPLAN
                                            YES
        SELECT RA CONTRACTOR
            AND QA TEAM
        REVIEW QUALIFICATIONS
        PREPARE CONSTRUCTION
              QCPLAN
     REVIEW CONSTRUCTION QC PLAN
                                  PRE-CONSTRUCTION CONFERENCE
           CONSTRUCTION
             IMPLEMENT
        CONSTRUCTION QA/QC
              PLANS
             OVERSIGHT
                                    PRE-FINAL/FINAL INSPECTION
    PREPARE REMEDIAL ACTION REPORT
                                                  REVIEW REMEDIAL ACTION REPORT

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 9-18     RD/RA Implementation
9.2.E.1
     Remedial
         Action
    Work Plan
9.2.E.2
     Remedial
         Action
    Contractor
Qualifications
the PRP, the qualifications of the PRP's design and construction teams
(including die QAT), and any odier relevant factors affecting die design and
implementation of die RA. This level of oversight may be adjusted accord-
ingly, based upon the actual performance of the RA contractor, as imple-
mentation proceeds. The objective of the oversight program is to focus the
RPM's efforts on the most significant aspects of die project such as environ-
mental protection, consideration of public health concerns, overall quality,
scheduling, major changes due to changed field conditions, emergency
actions, and project close-out.
During RA, EPA monitors and reviews the performance of the RA contrac-
tor in building die project.  It is die PRP's responsibility to ensure diat the
RA contractor meets the quality standards specified by die design and
accepted trade practices.  EPA, through die oversight official and TRT,
monitors and reviews the work of die PRP on  die basis of defined applicable
standards, in this case, approved design plans and specifications, and the
Construction QA and QC Plans.  It is inappropriate for die oversight
official or TRT to direct or determine the means and methods of construc-
tion.  Clearly defining these roles, and adhering to them, ensures diat the
responsibility and accountability of die construction project remains widi
the PRP
The RA Work Plan is die basis for die PRP's approach to implementation of
the RA. The work plan may be a negotiated part of the settlement agree-
ment or it may be a required submission under die agreement.  As with die
RD Work Plan, die RPM, oversight official, and TRT should dioroughly
review die RA Work Plan to ensure that the PRP will use a sound approach
to the RA.
The RA Work Plan should be reviewed to ensure that it includes: tentative
formulation of the RATeam, including the key personnel, descriptions of
duties, and lines of authority in die management of the construction
activities; description of the roles and relationships of the PRP, PRP project
coordinator, Resident Engineer, QAT, RD professional, and RA contractor;
process for selection of the RA contractor; schedule for the RA and  the
process to continuously update die project schedule; mediod to implement
the Construction QA Plan, including criteria and composition of the QAT;
a HASP for field construction activities; strategy for implementing the
Contingency Plan; procedure for data collection  during die RA to validate
the completion of die project; and requirements  for project closeout.  As
with die RD Work Plan, the RPM, oversight official, and TRT will use this
evaluation to assist in determining die initial level of oversight required for
construction activities.

The PRP is responsible for selecting the RA contractor, whedier dirough a
competitive bidding process or through die assignment of PRP "in-house"
resources. As may be required by the terms of the settlement agreement,
EPA reviews and approves the selection of the  PRP's preferred RA contrac-
tor using the following criteria for guidance: an evaluation of die profes-
sional and ethical reputation and required licenses, as determined by

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                                                                                                 9-19
9.2.E.3
        Quality
    Assurance
          Team
Qualifications
9.2.E.4
 Construction
 QA/QC Plans
inquiries with previous clients and other references; and the RA contractor's
previous experience in, and demonstrated capabilities to perform, the type
of construction activities to be implemented. If EPA disapproves of the
contractor submitted by die PRP, the PRP would submit a list of contrac-
tors acceptable to the PRP as "Supervising Contractor(s)" to EPA. EPA
would dien provide a written notice of the contractors it finds acceptable,
from which the PRP may select. RPMs should defer to the advice of
regional counsel and the relevant language in EPA's " Draft Model CER-
CLA RD/RA Consent Decree" regarding EPA review of the RA
professional's qualifications. The RPM, oversight official, and TRT should
use this evaluation with the results of die review of the RA Work Plan to
assist in determining the initial level of oversight required for construction
activities.

The QAT is used to provide a level of confidence to the PRP by selectively
testing and inspecting the work of die RA contractor and by ensuring diat
die Construction QC Plan is being implemented effectively. The members
of die QAT may be separate consultants working for the PRP under a
contractual relationship or they may be in-house personnel assigned to the
project.
In either case, the QAT must be independent of the contractor.  EPA
reviews and approves die selection of the QAT using die following criteria
for guidance: evaluation of the professional and ethical  reputation, as
determined by inquiries with previous clients and other references; determi-
nation diat die qualifications and expertise of die inspection personnel are
commensurate widi die scope of the project; and confirmation diat the QA
team is truly independent and autonomous from the RA contractor.
If a PRP elects to use in-house resources to implement die RA, it is inappro-
priate for PRP  in-house personnel to also be used for QA. Because it is
important for the QA Team to be independent of the contractor in order to
assure unbiased and objective evaluations, EPA should insist on die use of
an independent firm. In some projects, the PRP may be unwilling to hire a
QAT and/or is not required to do so under die terms of the settlement
agreement. In these cases, EPA may decide to hire a QAT, use its oversight
officials and TRT, or enter into a cooperative agreement widi die state to
conduct QAT activities to ensure diat the project is constructed properly.

Construction QA/QC should be a requirement on all construction projects.
The RA contractor is responsible for all activities necessary to manage,
control, and document work so as to ensure compliance with  die project
requirements (i.e., plans and specifications). The Construction QA Plan is
normally prepared by die RD professional and submitted widi the final
design.  It is the responsibility of the Resident Engineer to implement it
through die QAT. The use of the QAT will provide for an unbiased
implementation of die Construction QA Plan.
The oversight official and TRT should assist the RPM in reviewing each of
the above plans.  The review should focus on determining that the Con-

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 9-20     RD/RA Implementation
9.2.F Preconstruction
             Conference
9.2.G       Remedial
                  Action
     Implementation
struction QC Plan is consistent with the requirements of the plans and
specifications, and that the Construction QA Plan ensures the performance
standards will be met. The review should examine the appropriateness and
the frequency of the tests and inspections identified in both plans.  Review-
ing the Construction QA and QC Plans will assist the oversight official and
TRT in developing a strategy to spot check the PRP's QA program.
References
OSWER Directive 9355-5-01, "Guidance on EPA Oversight of Remedial
Design and Remedial Actions Performed by Potentially Responsible Parties"
Interim Final (April 1990).
American Society of Civil Engineers, Quality in the Constructed Project: A
Guideline for Owners, Designers and Constructors, Volume 1-Preliminary
Edition for Trial Use and Comment (May 1988).

The PRP will initiate a pre-construction conference prior to the start of
construction  on the project in order to establish relationships among all
parties involved in the RA implementation (e.g., RPM, oversight official,
TRT members as appropriate, PRP, RD professional, QAT, and RA contrac-
tor).  The agenda should include items such as introducing the members of
each team, discussing EPAs expectations for the project, reviewing general
project scope and requirements specified in the settlement agreement,
reviewing the final Construction QA and QC Plans, reviewing the HASP,
reviewing the project schedule, reviewing roles and responsibilities  of all
parties, establishing procedures to resolve disputes or misunderstandings
during construction, reviewing emergency actions and the Contingency
Plan, and reviewing endpoint activities and procedures for project comple-
tion. The tone of this meeting will  help the RPM determine the level of
oversight necessary for the project.
The Superfund reform on PRP oversight requires that for all settling parties,
the RPM offer to discuss, at least on an annual basis, EPA's oversight
expectations for die coming year.  Furthermore, to encourage a mutually
cooperative relationship that can enhance the success of the project, the
RPM should provide opportunity for these PRPs to suggest ideas to im-
prove the efficiency of the oversight process. The RPM should actively
consider project streamlining that can improve the project schedule or
reduce overall project or oversight costs and still ensure that the remedy is
effective and  protective.

It is the RPM s  responsibility to monitor PRP compliance with the setde-
ment agreement (including all documents and plans included therein by
incorporation or reference).  The RPM uses all the information and interac-
tions to monitor PRP compliance and has the flexibility to  adjust the level
of oversight as necessary. The RPM should develop a strategy for communi-
cating with the  PRP during the performance of the remedial action.  This
strategy should  outline communication requirements, including circum-
stances that warrant immediate EPA notification, along with development

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                                                                                              9-21
9.2.G.1        Remedial
                   Project
          Manager Role/
         Responsibilities
9.2.G.2        Shipment
               of CERCLA
                Wastes to
                   Offsite
                 Facilities
9.2.G.3        Oversight
              Official and
       Technical Review
              Team Role/
         Responsibilities
of a meeting schedule. Further information regarding reducing oversight at
certain sites may be found in EPA guidance.  Suggestions for minimizing
the costs of oversight are found in EPA guidance on "Reducing Federal
Oversight at Superfund Sites with Capable and Cooperative PRPs," and are
described in Chapter VI, RI/FS Implementation.
References
OSWER Directive 9200.4-15, "Reducing Federal Oversight at Superfund
Sites with Cooperative and Capable Parties" (July 31, 1996) (to be super-
seded by new guidance in  1999).
Remedial Design/Remedial Action Handbook, EPA 540-R-95-059.
OSWER Directive 9355-5-01, "Guidance on EPA Oversight of Remedial
Design and Remedial Actions Performed by Potentially Responsible Parties"
Interim Final (February 1990).

If it is determined that the PRP is failing to comply with the terms of the
setdement agreement, the  problem can be approached as follows: identify
the problem and devise corrective actions that are consistent with the
setdement agreement; document all contacts with die PRPs concerning the
inadequacies of the implementation; discuss the proposed corrective action
with regional management to ensure the RPM is maintaining a consistent
regional approach in overseeing the PRPs response activities; and contact
the regional counsel for advice on how to proceed in the event enforcement
becomes necessary.

If CERCLA wastes will be transferred to an offsite location, it is the RPM s
responsibility to ensure that waste shipments are sent only to EPA-accepted
facilities and are in full compliance with the requirements of the Offsite
Rule.
Reference
Sending Wastes Off Site?, EPA 540-F-97-006.

The oversight official and TRT report to the  RPM and support the RPM in
monitoring PRP compliance with die setdement agreement, the plans and
specifications, and the Construction QA and QC Plans. Responsibilities
diat the RPM may assign to the oversight official and TRT members
include: attendance at die  pre-construction conference, progress briefings,
and any other meetings as required; on-site observations of die work in
progress to determine if the work is generally proceeding in accordance with
the plans and specifications and the Construction QA and QC Plans; and
review of changes in work.
The oversight official and TRT are representatives of the EPA and do not
have authority to authorize any deviation from the contract documents or
assume any of the responsibilities of the contractor, subcontractor, or their
superintendents. This includes advisement on or issuance of instruction
concerning the constructor s techniques or performance of duties.

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 9-22     RD/RA Implementation
 9.2.G.4 Responding to
               Immediate
            Danger or an
              Emergency
9.2.H
 Pre-Final/
        Final
Inspection
As work progresses, changes in construction may be required due to actual
field conditions or new interpretations of plans and specifications.  The
RPM should utilize the oversight official and TRT to evaluate the impact of
changes on the remedial requirements of the project.  Construction changes
should be evaluated quickly, since failure to do so could result in delay
claims from construction contractors. The RPM should also notify the
PRPs if such construction changes result in a significant change in  EPA's
conduct of oversight.

In the event that any action during the performance of the remedial activi-
ties causes or threatens a release which may present an immediate danger to
the on-site construction workers, the PRP shall take actions in accordance
with the HASP. If there is a substantial danger to the off-site public health
or environment, the Contingency Plan shall be implemented.  (For more
information see the "Guidance on EPA Oversight of RD/RAs Performed by
PRPs.") This plan is written for the local, affected population.  In  either
case, the RPM  must be notified.
During an emergency, the RPM, oversight official, and TRT should closely
monitor the situation to determine that the HASP and Contingency Plan
are being implemented.  EPA does have the authority to stop work on the
site if the conditions present an imminent and substantial endangerment to
public health or welfare or the environment.

The PRP conducts pre-final and final inspections with the RA contractor.
These inspections ensure that contract work is complete. EPA may or may
not be invited to attend these inspections; however, the RPM should receive
a copy of the pre-final inspection report prepared by the RA contractor's
construction manager. The PRP also  conducts pre-final and final inspec-
tions of completed work widi EPA, the oversight official, and if necessary,
members of the TRT and other agencies with a jurisdictional interest in
attendance (e.g., the state).  The purpose of die inspection is to determine if
all aspects of die plans and specifications have been implemented at die site.
If any items have not been completed, die PRP will develop a punch list
which details the outstanding items still requiring completion or correction
before acceptance of work.  Acceptance of work may not be granted until
the startup and operation of treatment systems. This also may include a
demonstration  diat performance standards have been met.
The RPM, oversight official, and/or TRT should take careful notes of all
corrective and extra work required to meet die requirements of die design
plans and specifications.  These notes  should be carefully compared to the
punch list developed by the PRP.
A final inspection should be conducted when  all die items on the punch list
have been completed. All items indicated as requiring correction on die
punch list should be reinspected, and  all tests  that were originally unsatisfac-
tory should be  conducted again. A final punch list should be developed for
any outstanding deficiencies still requiring correction.

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                                                                                              9-23
9.2.1         Remedial
        Action Report
9.2.J    Construction
           Completion
At the completion of the RA and after correction of all punch list items, the
PRP (usually the Resident Engineer) prepares a Remedial Action Report,
which certifies that all items contained in the settlement agreement and any
incorporated documents (e.g., plans and specifications) have been com-
pleted. The report includes documentation (e.g., test results) substantiating
that the performance standards have been met, and also includes "Record
Drawings" of the project. The RPM, with assistance from the oversight
official and TRT, reviews die RAR, and verifies that all changes and varia-
tions from the original contract drawings have been made on "Record
Drawings." When all operable units are complete, the RPM initiates die
project completion and deletion process.
References
"Close Out Procedures for National Priorities List Sites," EPA 540-R-98-
016.
OSWER Directive 9355-0-39 FS, "Remedial Action Report" (June 1992).

At die end of construction for all Operable Units (OUs), the site can
achieve an EPA "construction completion" designation. This category
consists of sites awaiting deletion, sites awaiting deletion but for which
CERCLA section 121(c) requires reviews for the remedy no less often than
five years after initiation, and sites undergoing Long-Term Response Actions
(LTRAs). (See NCP, section 300.425 (d) (6)). Achieving this important
milestone does not limit or modify the PRP's requirements as outlined in
die CD or odier setdement documents.  Once die  RPM conducts the last
OU pre-final inspection and only minor punch list items remain, the RPM
will prepare a Preliminary Close Out Report (PCOR) and submit to
Headquarters for review. The designated regional official will sign die
amended PCOR and send it to Headquarters to be recorded as a site
construction completion.
References
"Close Out Procedures for National Priorities List Sites," EPA 540-R-98-
016.
OSWER Directive 9200.3-14-ID, Superfund/OilProgram Implementation
Manual (updated biennially).

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 9-24    RD/RA Implementation
9.3
9.3.A
Remedial
   Design
Activities
Planning and  Reporting  Requirements

RPMs must ensure that current information on RD/RA activities is entered
into CERCLIS 3/WasteLAN for the SCAR This section discusses the
planning and reporting requirements for RD/RA activities.
RD and RA activities are designed specifically for die site, OU, or project,
and are reported in WasteLAN. Initial schedules for RDs and RAs are
established when the RI/FS for the site is initiated.  These initial schedules
should be updated in WasteLAN as better planning data become available.
RPMs are responsible for ensuring that accurate data are reported into
CERCLIS 3/WasteLAN. The RPMs should enter the data or provide the
information to the Information Management Coordinator (IMC) for entry.
RDs and RAs are tracked by SCAP through CERCLIS.

RDs are planned on a site-specific basis.  Initial schedules for RD are
established when RI/FS  activities are initiated at the site. The RPM should
ensure diat these initial schedules are updated in CERCLIS 3/WasteLAN as
more accurate planning data become available. There are two separate
SCAP activities, RD Start and RD Completion. Exhibit 9-7 summarizes
SCAP targets relevant to RDs.

9-7     SCAP Targets
Activity
Remedial Design
(RD) Starts
Fund
PRP
Federal Facility
Remedial Design
(RD) Completion
Fund
PRP
Federal Facility
SCAP

Planning
Planning
Measure

Planning
Planning
Measure
Quarterly

X
X
X

X
X
X
Annual

X
X
X

X
X
X
                              The following definitions are for RD starts and completions:

                                •   RD Starts - The RD converts the remedy selected in the ROD into a
                                    final design document for RA. The obligation of funds for design
                                    assistance or technical assistance does not constitute an RD start.
                                    Pre-design activities will not be counted as an RD start. The defini-
                                    tion of accomplishment for an RD start depends on the lead.

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                                                           9-25
    Fund-financed (Includes Fund- and state-lead events) - A Fund
    RD start is counted when funds are obligated. An obligation is
    made when:
     •   The Contract Officer (CO) signs a contract modification
         for the RD.
     •   A Cooperative Agreement (CA) is signed by the Regional
         Administrator or a designee.
     •   An Inter-Agency Agreement (IAG) is signed by the other
         federal agency.
    PRP-financed (Includes mixed funding federal/responsible party
    (MR), responsible party (RP), and PRP response under state
    oversight (PS) lead events) - For MR and RP-lead, the start is
    credited on the date the earlier of the following actions takes
    place:
     •   If RD activities are conducted prior to ROD signature and
         there is not a new obligation of funds for a subsequent RD,
         the start of RD begins upon the approval of the work plan
         to  conduct these activities. If there is a new obligation of
         funds, the start of RD begins on  the date when new funds
         are obligated. When an RD has  been prepared by other
         parties or plans from a similar site will be used, the RD
         start date is the same as the RA start date.
     •   The enforcement document under which the RD is to be
         conducted, becomes effective:
            For an AOC, this is the date of signature of the
            AOC for RD by the RA or his designee, or the
            date of signature of an amendment to an existing
            AOC to include RD.
            For a Unilateral Administrative Order (UAO), this
            is the date of the PRP's written notice of intent to
            comply with the UAO.
            For a CD, this is either the date the CD is lodged
            by the Department of Justice (DOJ), or the date
            the CD is entered with the court (depending on
            the wording of the CD).
     •   An official written notice to proceed is issued by EPA to
         the PRP.
     •   For PS-lead sites, when the state  issues an order or other
         comparable state enforcement document for RD (or RD/
         RA) or, if the RD is covered by a pre-existing state order,
         when the state issues an RD notice to proceed.  If PRPs are
         doing the work in-house pursuant to an enforcement
         setdement document, the start date is when EPA allows the
         PRPs to proceed.
Separate Fund-, PRP-, and federal facility-financed RD start goals
are established  prior to the fiscal year.

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  9-26     RD/RA Implementation
                                 •   RD Completions - An RD is complete when the RD converts the
                                     remedy selected in the ROD into a final design document for RA.
                                     The definition of accomplishment for an RD completion depends
                                     on the lead.
                                         Fund-financed - For Fund or state-lead RD projects, an RD
                                         completion occurs when EPA approves, in writing, the final
                                         design document.
                                      -   PRP-financed - An RD becomes complete when EPA approves,
                                         in writing, the final design document. For state enforcement-
                                         lead (PS) RDs, die RD becomes complete when die state
                                         approves die  final design document.
                                         Federal Facility - An RD becomes complete when EPA approves
                                         the final RD  package.
                                     Separate SCAP targets are established for Fund/PRP versus federal
                                     facility RD completions.

9.3.B       RGITIGdidl    Remedial actions are planned on a site-specific basis and reported in
                  Action    CERCLIS 3/WasteLAN. The regions are responsible for identifying RA
               A  4.-  -4.-       projects and associating planned obligations with these sites.
                               Four SCAP activities are tracked:

                                 •   RA Start.
                                 •   RA Contract Award.
                                 •   RA Completion.
                                 •   Final RA Completion.
                               RA completions and final RA completions  are targeted on a combined basis.
                               In addition to RDs, RAs are tracked by SCAP through CERCLIS.  Exhibit
                               9-8 summarizes SCAP reporting relevant to RAs.

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                                                               9-27
9-8   SCAP Targets/Measures for RAs
Activity
R A Starts
Fund
PRP
Federal Facility
RA Contract Award
Fund
PRP
RA Completion
Fund
PRP
Federal Facility
SCAP Reporting

Planning
Planning
Measure

Planning
Planning

Measure (part of
ACT-6 and ACT-7)
Measure (part of
ACT-6 and ACT-7)
Target
Quarterly

X
X
X

X
X


X
X
Annual

X
X
X

X
X


X
X
The following definitions are for RA starts and completions:

   •   RA Start - An RA start is the implementation of the remedy selected
      in the ROD that is intended to ensure protection of human health
      and the environment at a final NPL site. The definition of accom-
      plishment for an RD start depends on the lead.
          Fund-financed (Includes Fund or state-lead events) - Credit for
          an RA start is given on the date a contract modification for the
          RA is signed by the CO, or when the Interagency Agreement
          (LAG)  or CA is awarded and funds are obligated. This date is
          entered into WasteLAN with the RA event.
      -   PRP-financed (Includes RP, MR or PS lead events) - Credit for
          an RA start is given when one of die following occurs and has
          been recorded in WasteLAN:
          •    If work is performed by the PRPs under die same CD or
              UAO as die RD, the RA start occurs when EPA approves
              the PRP RD package (RD completion).
           •  If die PRP conducts work under a state order or compa-
              rable enforcement document, and  die site is covered by a
              state enforcement cooperative agreement or Superfund
              Memorandum of Agreement (SMOA) (PS-lead) with a
              schedule for RA work at the site, and EPA approved the
              ROD, the RA start occurs when die state approves die
              PRP RD package.

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9-28    RD/RA Implementation
                                         •   Where the Fund performed the RD or the RD was done
                                            under a settlement/order for RD and the PRPs are doing
                                            the RA under die terms of a CD, UAO or judgment for
                                            RA only, the RA start is the date on which die PRPs
                                            provide notice of intent to comply widi the UAO
                                            (SubAction Name= PRPs Ntfy EPA, Intent to Comply) or
                                            die date the CD is referred to Headquarters or die DOJ
                                            (as recorded in WasteLAN). Where the PRP is in signifi-
                                            cant non-compliance with die UAO, credit will be with-
                                            drawn.
                                       Federal Facility - Credit for an RA start is given on die
                                       date when substantial, continuous, physical, onsite,
                                       remedial actions begin pursuant to CERCLA section 120.
                                       Federal facility RA starts are a SCAP measure.
                                    The region should enter the Alternative Name, Media Name, Media
                                    Type, and die technology of the RA into the Response Action Type
                                    field (Selected Response Actions) and whether the RA is an early
                                    action or long-term action (Critical Indicator=Early Action or Long-
                                    Term Action). Fund and  PRP RA starts are SCAP target planning
                                    measures.
                                    RA Contract Award - Award of die RA contract marks die initiation
                                    of on-site construction activities for the remedy selected in the ROD.
                                    Individual targets are negotiated in SCAP.  An RA contract award
                                    triggers die date for completion of five-year reviews.  The definition
                                    of accomplishment for an RA Contract Award depends on the lead.
                                       Fund-financed (Includes Fund or state-lead events) - This
                                       category includes sites where EPA, a state, USAGE, or BUREC
                                       has awarded a contract to initiate a Fund-financed RA.  If the
                                       Alternative Remedial  Contracting Strategy (ARCS) contractor is
                                       assigned RA responsibility, the award of die RA contract is
                                       defined as the date the RA subcontract is awarded. If the
                                       Emergency Response Cleanup Services (ERCS) contractor will
                                       be performing the RA, award of the RA contract is defined as
                                       die obligation of funds to the ERCS contractor for the RA.
                                    -   PRP-financed (Includes RP, MR or PS lead events) - This
                                       category includes sites where the PRP  has begun substantial and
                                       continuous physical action, which is equivalent to an EPA
                                       contract award, or where the PRP has  taken equivalent action
                                       widi its own work force.
                                       Federal Facility - At federal facilities, the date when die federal
                                       agency begins substantial and continuous physical action at a
                                       site, or the date when the federal agency takes equivalent action
                                       widi its own work force, is treated as die equivalent of die award
                                       of an RA contract.  Federal Facility award of RA contract is a
                                       SCAP measure.

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                                                           9-29
RA. Completion - An RA is complete when construction activities
are complete, a final inspection has been conducted, the remedy is
Operational and Functional (O&F), and an RA Report has been
prepared. This report summarizes site conditions and construction
activities for die OU.
Accomplishment means the date when the designated regional
official (branch chief or above) signs a letter accepting the RA Report
for the first or subsequent RA. The contractor's construction
manager submits a signed RA report to document the completion of
all construction activities for that OU, and that the remedy is  O&F.
In lieu of a report from the contractors construction manager, the
region must prepare a report to document die completion. The
appropriate date must be recorded in WasteLAN widi the RA event.
Commitments are made on a combined Fund and PRP basis.
Federal facility RA completion commitments are made separately.
First and subsequent federal facility RA completions are SCAP
targets. Fund and PRP RA completions are separate targets in SCAP.
Final RA Completion - A final RA is complete when:
    Construction for all OUs is complete.
    A pre-final inspection has been conducted.
    A PCOR has been prepared. This report documents the
    completion of physical construction, summarizes site conditions
    and construction activities, and, as appropriate, provides the
    schedule for die joint final inspection (required before die start
    of die O&F phase), approval of die O&M work plan, and
    establishment of institutional control.  The date of the Prelimi-
    nary Close-Out Report should be reported in WasteLAN  with
    the RA Subevent, Preliminary Close-Out Report Prepared
    (SubActionName=  Prelim Close-Out Rep Prepared).
    A final inspection has been conducted.
    The remedy is O&F.
    A letter accepting the RA report has been signed by the desig-
    nated regional official.  The date of die letter is entered into
    WasteLAN as die RA completion date (Action Name= Remedial
    Action or PRP RA).
    An Interim Site  Close-Out Report or Final Superfund Site
    Close-Out Report (SCOR) has been prepared.  An Interim Site
    Close-Out Report (ICOR) should be prepared if die only
    activity remaining is Long Term Response Action (LTRA).
The final RA is complete on the date the Regional Administrator
signs the Interim Site Close-Out Report or Final Superfund Site
Close-Out Report documenting completion of the final RA. The
appropriate date must be recorded in WasteLAN widi the Close-Out
Report RA subevent (SubAction Name= Close Out Report).

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9-30     RD/RA Implementation
                                   The date of completion of the Preliminary Close-Out Report must
                                   be entered into WasteLAN with the Preliminary Close-Out Report
                                   Prepared subevent (SubAction Name= Prelim Close-Out Rep
                                   Prepared). The date of the letter accepting the RA Report must be
                                   entered into WasteLAN with the RA event (Action Name= Remedial
                                   Action or PRP RA). The date the Regional Administrator signs the
                                   Interim or Final Superfund Site Close-Out Report must be entered
                                   into WasteLAN with the Close-Out Report subevent (SubAction
                                   Name= Close Out Report).
                             RA completions are included in SCAP measure ACT-6 (completion of a
                             Response Action), and final RA completions are included in SCAP measure
                             ACT-7 (NPL Site Construction Completion). Federal Facility RA Comple-
                             tions are a SCAP Target.
                             Coding guidance for events (RI/FS, ROD, RD/RA) is being developed by
                             OERR/OPM.

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                                                                                               9-31
9.4
9.4.A       Oversight
9.4.B    Compliance
       Incentives and
             Assistance
Potential Problems/Resolutions

For PRP-lead RD/RAs, the oversight funding is obtained from the remedial
budget. If the RPM requires technical assistance in performing his/her
oversight responsibilities, the primary contract vehicles are ARCS and
RACs. RPMs also should be aware that the Agency encourages use of the
USAGE for providing technical assistance. In addition, in-house technical
assistance often is available (e.g., Office of Research and Development
(ORD), Office of Emergency and Remedial Response/Technology Innova-
tion Office (OERR/TIO)), which proves to be both cost-effective and
timely. In addition to contractor support, EPA should assemble a technical
review team comprised of various senior RPMs and specialty experts (e.g., a
wetlands expert to review wedand issues). EPA also can seek technical
advice through LAGs as vehicles to access specialty experts from such
organizations as the U.S. Fish and Wildlife Service (USFWS), NOAA, the
Bureau of Reclamation, and Marine Fisheries.

To enhance a cooperative problem-solving approach for the PRP-lead RD/
RA, the RPM should identify areas in which the PRP has achieved signifi-
cant success in remedying the problems caused by the hazardous substance
release. RPMs could acknowledge these accomplishments by suggesting
that regional management either send a letter to the PRP  or provide public
acknowledgment in the media (newspapers, television, or radio). Perfor-
mance incentives are effective and inexpensive support for the PRP to
continue to achieve steady RD/RA implementation progress.  Successful
PRPs  also serve as role models for other PRPs.
Additional categories of compliance incentives include audit and compli-
ance management programs developed and maintained by die regulated
community, and partnerships between government and industry such as die
Environmental Leadership Program. These policies encourage voluntary
discovery, disclosure, and correction of violations or necessary  cleanup
before government investigation or response.
The primary purpose of compliance assistance is to provide clear and
consistent descriptions of regulatory requirements to ensure that PRPs
understand their obligations and are able to meet die requirements of
environmental law.  Additionally, compliance assistance can aid PRPs in
finding cost-effective ways to comply through the use of pollution preven-
tion and innovative technologies. General categories  of compliance assis-
tance  include the following:

  •    Outreach by EPA or the states  through the use of compliance guides,
       seminars, information services, and other means of assistance.
  •    Response to assistance requests.
  •    On-site assistance such as compliance consultations or audit manage-
       ment programs.
One of the Superfund Reforms announced in 1995 was the initiative to
encourage and reward cooperative parties by reducing EPA oversight

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 9-32     RD/RA Implementation
9.4.C    Compliance
            Monitoring
activities at sites where quality work is being performed by such parties.
This reform has been modified in recognition that, at all sites, RPMs strive
to conduct the appropriate level of oversight, which will mean more or less
oversight depending on numerous site-specific conditions. However, EPA
believes that by increasing communication, cooperation, and early planning
with PRPs, oversight activities and their resulting costs to PRPs can be
reduced. Regions should work with states, local governments, communities,
and PRPs, as appropriate, to develop effective partnerships in implementing
this initiative.
References
Office of Site Remediation Enforcement (OSRE), "Superfund Reforms
Annual Report FY1997."
OECA Memorandum "Operating Principles for an Integrated Enforcement
and Compliance Assurance Program" (November 27, 1996).
OSWER Directive 9200.4-15, "Reducing Federal Oversight at Superfund
Sites with Cooperative and Capable Parties" (July 31, 1996).

Compliance monitoring consists of activities designed to determine compli-
ance with applicable laws, regulations, permits, orders, and agreements.
These monitoring actions should aid review and evaluation of PRP activities
under Superfund. They should also determine whether conditions present _
an imminent and substantial endangerment.  The basic categories of
compliance monitoring activities include the following:

   •   Surveillance - obtaining general site information prior to actual site
      inspection.
   •   On-site Inspection - actual site inspection, traditionally confined to
      one medium and potentially including sampling, observations,
      record reviews, interviews, etc.
   •   Investigations - extensive study of a site or entity, potentially
      warranted when an inspection or record review indicates the poten-
      tial for serious, widespread, and/or continuing civil or criminal
      violations.
   •   Record reviews - review of documents,  possibly at several locations
      including EPA, state, and local offices, and/or the facility.
   •   Targeted information gathering - compilation of detailed informa-
      tion on the status of compliance and/or  environmental conditions
      including items such as emission/discharge rates, operating logs,
      financial records, sampling results, etc.
If the RPM determines that the PRP is failing to comply with the terms of
the CD, the RPM should generally approach the problem in a constructive
manner. The RPM's first course of action is the following:

   •   Identify the problem and devise appropriate corrective action based
      on the terms agreed to in the CD for addressing late or inadequate
      performance by the PRPs.

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                                                                                                  9-33
9.4.D     Compliance
          Enforcement
   •   Document thoroughly all contacts with the PRPs concerning the
       inadequacies of their implementation.
   •   Discuss the proposed corrective action with regional management to
       determine whether the RPM is maintaining a fair and consistent
       regional approach in overseeing the PRP s response activities.
   •   Contact ORC for advice on how to proceed in the event enforce-
       ment becomes necessary.
After determining whether the proposed corrective action is consistent with
the regions approach, the RPM should initiate a discussion with the PRP to
identify appropriate corrective actions.  For example, die RPM could take
any one of the following types of corrective action:

   •   Send a warning letter to die PRP. describing the problem and the
       desired response.
   •   Hold a formal meeting widi the PRP
   •   Provide die PRP widi additional guidance to clarify EPA require-
       ments.
   •   Expand die level of EPA oversight by increasing the level of commu-
       nications and number of site visits.
If the corrective actions do not alter the PRP s performance and significant
problems continue to persist, then the RPM may advise the Regional
Administrator to take one of die following corrective measures:

   •   Issue a Stop Work Order.
   •   Invoke stipulated penalties.
   •   Initiate administrative or judicial measures.
   •   Revert to Fund-lead RD/RA.
Before  requesting the Regional Administrator to impose these measures, die
RPM must thoroughly document die specific problems and die corrective
actions attempted.
Reference

OSWER Memorandum, "Follow-up on Compliance Monitoring" (June 28,
1991).

Civil and criminal enforcement tools may be used to address issues of
imminent and substantial endangerment to human healdi, welfare, or die
environment; violation or non-compliance widi environmental law; and
recovery of costs for response actions. Enforcement tools also aid in elimi-
nating  any economic advantage for non-complying parties as well as
providing a deterrent for similar behavior by odier parties.
Oral notification for violations is rarely appropriate as die sole enforcement
response.  Therefore, written notice of a violation is the most suitable
enforcement action for minor or inadvertent, first-time violations. Written
notification is a required prerequisite for some statutes (e.g., Clean Air Act,

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  9-34     RD/RA Implementation
                                Safe Drinking Water Act). Violations discovered through regular inspec-
                                tions, tips, complaints, or other compliance monitoring should be addressed
                                with judicial and/or administrative orders, penalty actions, or bodi.  Cost
                                recovery actions are appropriate in cases of significant expenditures from the
                                Fund to conduct response actions.

9.4.E     Site AcCeSS    The PRP is responsible for obtaining the necessary site access.  Securing
                                appropriate site access early in the RD phase will ensure that no unnecessary
                                construction delays will be caused by eidier the site owner or the adjoining
                                property owners.  RPMs should check to see that the site access obtained by
                                die PRP extends for the duration of the RA and the O&M phases of the
                                response activities when appropriate.
                                Voluntary access should be obtained whenever possible. Techniques for
                                facilitating voluntary site access include personal contacts with adjacent
                                property owners and a good community relations campaign. If the PRP has
                                difficulty in obtaining voluntary site access, the PRP should notify the RPM
                                in writing. Upon receiving this written notice, the  RPM should consult
                                with the regional counsel and the OERR Regional Coordinator for advice
                                and assistance.
                                Section 104(e)(5)(b)  of CERCLA authorizes the Agency either to seek an
                                Administrative Order (AO) to prohibit interference widi entry or to go
                                direcdy to court to obtain compliance widi its requirement for entry. EPA
                                may use this audiority whenever it can establish that diere is a reasonable
                                basis to believe diat diere may be a release or a threatened release of a
                                hazardous substance and access is necessary to carry out response or to
                                determine need for response.
                                Urider section 106(a) of CERCLA, the government also may petition a
                                court to grant an injunction directing immediate compliance widi die
                                request for entry.  This authority may only be invoked if EPA can show diat
                                diere is an imminent and substantial endangerment to public healdi and
                                welfare or the environment because of a release or direatened release from a
                                facility. A case example of a non-settling PRP denying site access to setding
                                PRPs is discussed below.
                                The issue of site access may cause problems when some, but not all, PRPs
                                agree to implement RD/RA activities under EPA supervision. The case of
                                U.S. v. Murtha in Region I illustrates diis point.
                                In Murtha, die Agency entered into a setdement agreement widi 32 corpo-
                                rations alleged to have generated hazardous waste.  The terms of diis
                                agreement were embodied in a CD.  It obligated die setding PRPs to
                                implement the remedy chosen by EPA for the site.
                                Most PRPs involved at die site were parties to die CD. However, the owner
                                of the facility failed to reach a setdement agreement with EPA. Although
                                the owner did not oppose EPA's right to access, the owner sought to block
                                die setding PRPs and their contractors from entering the site to conduct the
                                response activity because of his contention diat he  would be liable for their

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                                                                 9-35
negligence in carrying out the remedy. EPA brought suit against the owner
seeking an injunction requiring the owner to permit the settling PRPs to
enter the site.
The court decided that the owner of a facility does not have veto power over
necessary remedial actions. The court relied upon a broad interpretation of
section 106(a) of CERCLA to provide the authority for the settling PRPs to
gain site access.  The court ruled that an owner-in-possession of a facility
cannot halt the remedial process merely because he did not join in a settle-
ment agreement with EPA. The court issued an injunction granting EPA
and the settling PRPs unrestricted access for the purpose of conducting
response  activities at the site.
The Murtha case demonstrates how the problem of site access can be
addressed in situations in which section 104(e)  of CERCLA is not sufficient
to provide what the Agency needs. Section 106 of CERCLA grants the
Agency authority to seek injunctive relief when a non-settling PRP seeks to
interfere with a PRP-conducted RA that it is undertaken pursuant to a CD.
Reference
OSWER Directive 9829-2, "Entry and Continued Access Under CERCLA"
(June 5,1987).

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10. Operation and
  Maintenance

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                                                                10-i
         Chapter 10  Operation and Maintenance


10.1  Description of Activity	1

10.2  Procedures and Interactions	2
     10.2.A  Settlement Negotiations	2
     10.2.B  Operation and Maintenance Plan	2
     10.2.C  Operation and Maintenance Manual	2
     10.2.D  Operation and Maintenance Oversight	3
10.3  Planning and Reporting Requirements	5

10.4  Potential Problems/Resolutions	8
     10.4.A  State Funding	8
     10.4.B  Transfer of Property	8
     10.4.C  RA Restart	8

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10—ii    Operation and Maintenance

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                                                                                             10-1
             Chapter 10  Operation  and Maintenance

10.1                        Description of Activity

                              The National Contingency Plan (NCP) 40 Code of Federal Regulations
                              (CFR) section 300.5 defines Operation and Maintenance (O&M) as
                              "measures required to maintain die effectiveness of response actions."
                              O&M generally will be required when waste has been left on site.  O&M
                              activities may include periodic inspection and maintenance of waste
                              containment measures, long-term air or water monitoring, institutional
                              controls, leachate collection and treatment or disposal for source control
                              measures, or any other periodic activity necessary to ensure the continued
                              protection of public health and the environment. O&M activities for non-
                              ground water remedies begin after the remedy has achieved the Remedial
                              Action (RA) objectives and remediation goals in the Record of Decision
                              (ROD) or Consent Decree (CD) and is determined to be Operational and
                              Functional (O&F).  The guidelines and types of activities required for
                              O&M at enforcement sites are identical to those at Fund-lead sites. At
                              Potentially Responsible Party-lead (PRP-lead) ground water sites, O&M
                              begins after  the ground water system is considered O&F. Long-term
                              operation of a ground water system is considered to be part of O&M.
                              Consistent with the NCP and in Fund-lead situations only, the Fund may
                              be used for a period of up to 10 years following die O&F period to finance
                              efforts to restore contaminated ground water or surface water to a level that
                              ensures protection of public healrli and the environment. Activities required
                              beyond die  10-year period are considered O&M.
                              Fund  resources cannot be used to perform O&M activities. At enforcement
                              sites, O&M may be conducted by the PRP(s), state, or other government
                              entity (such as a county government).  EPA will not conduct or finance
                              O&M activities at Fund-lead or non-Fund-lead sites.  O&M activities are
                              one of die key elements evaluated by EPA during five-year  reviews of sites
                              where waste remains on site, preventing unlimited use and  unrestricted
                              exposure, or where die attainment of cleanup levels that allow unlimited use
                              and unrestricted exposure will take longer than five years to achieve.

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 10-2    Operation and Maintenance
10.2
10.2. A   Settlement
         Negotiations
10.2.B     Operation
                      and
         Maintenance
                     Plan
10.2.C     Operation
                     and
         Maintenance
                Manual
Procedures and Interactions

It is essential that responsibility for O&M activities and oversight be
addressed during CD negotiations. A description of required O&M
activities and projected costs for the site should be available from the
Feasibility Study and/or the ROD. If not, it is the Remedial Project
Manager's (RPM's) responsibility to ensure that the Statement of Work
(SOW) clearly spells out the O&M activities, the level of oversight that will
be required, and the corresponding costs for use in negotiations.  The
determination of responsibility for O&M and O&M oversight must be
made prior to signing the CD and must be set forth in the CD or
accompanying SOW. Every effort should be made to have the PRPs
perform die O&M. If die PRPs will not perform die O&M, then die
negotiation team should ensure diat die state will assume responsibility for
these activities.
During die Remedial Design (RD), an O&M plan shall be prepared that
clearly defines how the PRPs will perform die O&M activities required for
die site and provides a detailed cost estimate. This requirement should be
clearly defined in the SOW  The O&M plan may be amended during
construction based on unexpected site conditions and die actual
characteristics of die implemented remedy.  These changes to die O&M
plan must be made prior to the approval of die RA Report. Exhibit 10-1
sets forth die basic elements of an O&M plan. Many of die items in an
O&M plan will also be included in an O&M manual, but emphasis in an
O&M manual is generally placed on technical items rather than funding
and administration. At sites widi multiple Operable Units (OUs), it is
possible diat each OU will require a distinct O&M activity.  In diis case,
die O&M activities for each OU will commence following completion of
the RA Report for that activity and EPA's acceptance of die work.

The O&M manual serves as a guide to understanding die purpose and
function of die equipment and systems making up die overall facility.  The
manual provides all die technical information necessary to operate and
maintain the remedy as well as guidance for operators and die state after
state assumption of O&M responsibilities.  Responsibility for developing
die manual is shared by the remedial designer and die RA contractor.
During the RD phase, the remedial designer drafts die O&M manual  and
submits it as part of die design plan, accompanied by design plans and
specifications.  The manual is finalized by die RA contractor during die RA
phase widi supplemental information specific to the actual equipment
installed. The design of die manual should lend itself to modification  by
the RA contractor and state to reflect changing treatment system O&M
needs. The following sections are typically included in an O&M manual:

   •   System description (including design philosophy and operation and
      control of die facilities).
   •   Personnel.
   •   Permits, standards, and approvals.

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                                                                                               10-3
10.2.D     Operation
                     and
        Maintenance
             Oversight
   •   Community involvement.
   •   Laboratory testing.
   •   Records.
   •   Maintenance.
   •   Emergency operating and response program.
   •   Safety issues.
   •   Utilities.
   •   Electrical systems.
   •   Appendices (schematics, plans, as-builts, inspection checklists, etc.).
It is the responsibility of the RPM (with the help of in-house experts, die
United States Army Corps of Engineers, or a Response Action Contractor)
to review the draft of die O&M manual to ensure completeness,
consistency, and user-friendliness.  The O&M manual becomes part of the
State Superfund Contract (SSC) or Cooperative Agreement (CA) for Fund-
lead sites, and should be referenced in the CD for PRP-lead sites.
Responsibility for oversight of O&M activities is set forth in die settlement
document.  In cases where die state is a signatory of die CD, die state may
agree to assume responsibility for oversight.  In all other situations, EPA will
provide oversight. The oversight agency must monitor die O&M activity
for compliance widi die terms of die setdement document and the O&M
plan.  Oversight activities during die O&M phase include conducting
periodic site inspections (including review of on-site records and reports),
conducting ongoing monitoring and review of O&M reports, performing
five-year reviews, and oversight of odier state or PRP activities to ensure
O&M is being performed adequately.
References
The following references apply to diis section, but also provide a useful
context for Chapter 10 in its entirety.
"Close-out Procedures for National Priorities List Sites," EPA540-R-98-016.
Remedial Design and Remedial Action Handbook, EPA 540-R-95-059
Office of Solid Waste and Emergency Response (OSWER) Directive
9355.55-01 "Guidance on EPA Oversight of Remedial Designs and
Remedial Actions Performed by Potentially Responsible Parties"  Interim
Final (February 1990).
OSWER Directive 9355.0-26, "Additional Clarification on Funding
Ground or Surface Water Restoration Actions" (February  1989).

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 10-4    Operation and Maintenance
10-1   Basic Elements of an Operation and Maintenance Plan
  A.      Transfer of Operation and Maintenance (O&M) Responsibilities
         1.  Designation of the organizational unit of the state government responsible for
            O&M.
         2.  Identification of the availability of state funding mechanisms for O&M activities.
         3.  Milestone dates for state assumption of O&M responsibilities.
  B.      Description of Normal O&M
         1.  Description of tasks for operation.
         2.  Description of tasks for maintenance.
         3.  Description of prescribed treatment or operating conditions.
         4.  Schedule showing frequency of each O&M task.
         5.  Summary of O&M performance standards.
         6.  Criteria for determination of Operational and Functional.
         7.  Completion of O&M (conditions for O&M termination).
         8.  Description of site use and disposition of facilities following completion of O&M.
  C.      Description of Potential Operational Problems
         1.  Description and analysis of potential operational problems.
         2.  Sources of information regarding problems.
         3.  Common remedies.
  D.      Description of Routine Monitoring and Laboratory Testing
         1.  Description of monitoring tasks.
         2.  Description of required laboratory tests and their interpretation.
         3.  Description of Quality Assurance/Quality Control protocols.
         4.  Schedule of monitoring frequency  and when, if so provided, to discontinue.
  E.      Description of Alternate O&M
         1.  List of alternate procedures to prevent undue hazard in the event of systems failure.
         2.  Analysis of vulnerability and additional resource requirements should a failure
            occur.
  F.      Safety Plan
         1.  Description of precautions, necessary equipment, etc., for site personnel.
         2.  List of safety tasks required in event of systems failure (may be linked to site safety
            plan developed during remedial response).
         3.  Transition strategy for modifying existing site Health and Safety Plan and Quality
            Assurance Project Plan.
  G.      Description of Personnel/Equipment
         1.  Summary of O&M staffing needs (including training and certification
            requirements).
         2.  List of equipment necessary for plan.
         3.  Installation of monitoring components.
         4.  Maintenance of site equipment.
         5.  Replacement schedule for equipment and installed components.
  H.      Annual Budget (to be prepared by PRP or contractor performing O&M)
         1.  Cost of personnel.
         2.  Costs of preventive and corrective  maintenance.
         3.  Costs of equipment, supplies, etc.
         4.  Costs of any contractual obligation (e.g., laboratory expenses).
         5.  Costs of operation (e.g., utilities, energy costs).
  I.      Records and Reporting Mechanisms Required
         1.  Daily operating logs.
         2.  Laboratory records.
         3.  Records for operating costs.
         4.  Mechanism for reporting emergencies.
         5.  Personnel and  maintenance records.
         6.  Monthly/annual reports to  state agencies.

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                                                                                                10-5
10.3                         Planning and Reporting  Requirements

                               O&M is made up of the activities required to maintain the effectiveness or
                               die integrity of the response. Section 300.435 (0(3) of die NCP states that
                               "for Fund-financed remedial actions involving treatment or other measures
                               to restore ground- or surface water quality to a level that assures protection
                               of human health and die environment, the operation of such treatment or
                               other measures for a  period of up to 10 years after the remedy becomes
                               operational and functional will be considered part of the remedial action.
                               Activities required to maintain the effectiveness of such treatment or
                               measures following the 10-year period, or after remedial action is complete,
                               whichever is earlier, shall be considered O&M." The state or PRP is
                               responsible for these activities for the period specified in the ROD or odier
                               appropriate documents.
                               Section 300.435(f) of the NCP states that "operation and maintenance
                               (O&M) measures are initiated after die remedy has achieved the remedial
                               action objectives and remediation  goals in the ROD, and is determined to
                               be operational and functional, except for ground- or surface water
                               restoration actions covered under 300.435(f)(4)-"  As defined in the
                               Sup erfund Program Implementation Manual (SPIM), the start of O&M is the
                               date upon which the designated regional official signs a letter accepting the
                               RA Report. This report documents that work has been performed within
                               desired specifications and that the remedy is functioning properly and is
                               performing as designed. The completion (where appropriate) of O&M is
                               defined as the date specified in a CA, SSC, or CD.
                               O&M planning in the Comprehensive Environmental Response,
                               Compensation, and Liability Information System 3/Waste Local Area
                               Network is  site-specific, and is used for resource allocation purposes only.
                               Funds for oversight of O&M are contained in the RA Advice Of Allowance.
                               O&M is not tracked by die Superfund Comprehensive Accomplishments
                               Plan.
                               Planning and reporting requirements are governed by die terms set forth in
                               the setdement document.  Generally, cost documentation records must be
                               maintained for 10 years following  the final claim in cases where
                               preaurhorization is part of the settlement.  With the exception of Fund-
                               financed actions, EPA will not pay O&M costs. In some situations, "shake-
                               down" costs for a period of one year are eligible for reimbursement in
                               preaurhorization settlements. Shake-down costs are diose costs associated
                               with ascertaining that the remedy  is O&F  (i.e., operating as designed).
                               Routine reports that summarize O&M activities should be prepared by the
                               state or PRP on a regular basis (e.g., annually) and submitted to the RPM.
                               The reports include items such as data collection, sampling results, discharge
                               and emissions calculations,  routine inspections, repairs, equipment
                               changeouts, regular updates of die O&M manual and as-builts, community
                               complaints  and responses, and verification of the integrity of the
                               institutional controls. Special reports on safety, emergencies, and other

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10-6    Operation and Maintenance
                              unusual events such as fires, floods, or weather damage should be made
                              available to EPA and other interested parties in a timely manner, as
                              described in the terms of the SSC or CA for a Fund-lead site and the CD for
                              a PRP-lead site.
                              Five-year review reports also include a discussion of O&M activities. The
                              purpose of five-year reviews is to determine whether the RAs selected for a
                              site remain protective of human healdi and the environment.  For sites at
                              which a post-Superfund Amendments and Reauthorization Act (SARA)
                              remedy, upon attainment of the ROD cleanup levels, will not allow
                              unlimited use and unrestricted exposure, section 121 (c) of the
                              Comprehensive Environmental Response, Compensation, and Liability Act
                              and section 300.430(f)(4)(ii) of the NCP require EPA to conduct a five-year
                              review. EPA also conducts policy reviews of sites where:  1) no hazardous
                              substances will remain above levels that allow for unlimited use and
                              unrestricted exposure after completion of the RA, but ROD-specified clean-
                              up levels will require five or more years to attain, and 2) sites addressed pre-
                              SARA at which the remedy, upon attainment of the ROD cleanup levels,
                              will not allow unlimited use and unrestricted exposure.  In some instances,
                              the federal facility or state may conduct the five-year review.
                              For sites requiring five-year reviews, the federal facility, state, or PRP must
                              provide data to document O&M activities and the effectiveness of the
                              remedy at the site. PRPs may prepare a report or analysis based on these
                              data that EPA will adapt to create the five-year review report.  Depending
                              on the type of remedy, these data may include records of equipment repairs,
                              system modifications, sampling results, discharge and emission compliance
                              reports, routine inspections, safety and emergency incident reports, and
                              verification of institutional control integrity. The RPM may request annual
                              O&M budget reports to assist in analyzing O&M activities and costs. Items
                              of concern which should be focused on in five-year reviews are those that
                              demonstrate the protectiveness and integrity of the remedy, or lack thereof.
                              These items would include matters such as unexpected increases in O&M
                              costs that may be an early indicator of remedy failure, ground  water
                              sampling results demonstrating plume capture and progress in restoring an
                              aquifer, and maintenance logs indicating proper execution of the  O&M
                              program.
                              References
                              SCAP/Oil Quick Reference Coding Guide.
                              OSWER Directive 9200.3-14-1D, SuperfundlOil Program Implementation
                              Manual (updated biennially).
                              OSWER Directive 9355-7-03A, "Second Supplemental Five Year Review
                              Guidance" (December 21, 1995).
                              OSWER Directive 9355J-02A, "Supplemental Five Year Review Guidance"
                              (July 26,  1994).
                              OSWER Directive 9355-7-02FS1, "Structure and Components of Five Year
                              Reviews" (August 1991).

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                                                                10-7
OSWER Directive 9355.7-02, "Structure and Components of Five Year
Reviews" (May 23, 1991).
National Oil and Hazardous Substances Pollution Contingency Plan, 40
Code of Federal Regulations (CFR) section 300.430 ("Remedial
Investigation/Feasibility Study and Selection of Remedy") (1990).
Note: The four Five-Year Review documents listed above are currently
being incorporated into a draft Five-Year Review guidance document.

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  10-8     Operation and Maintenance
10.4
10.4.A
        State
    Funding
10.4.B
    Transfer
of Property
10.4.C
           RA
     Restart
Potential Problems/Resolutions
RPMs should monitor the settlement negotiations closely to ensure that, in
instances where the state assumes O&M responsibility, the state can assure
funding for the duration of the O&M activities. Since state funding for
such activities is usually appropriated yearly, the state's assurance may
require special action by the state legislature to guarantee funding.  Some
state statutes  prohibit the use of public funds to maintain private property.
In these cases, the PRP usually must assume responsibility for O&M,
establish a trust fund, or make other arrangements to provide the state with
money for O&M.

RPMs, in conjunction with regional counsel, must ensure that the
settlement provides for continuation and financing of O&M in the event
that ownership of the property on which the site is located is transferred.
The settlement decision must contain assurances for O&M conduct  and
financing in the event the property is sold.  Restrictions on the  use of such
property may be accomplished by means of institutional controls.  Issues
related to property transfer and O&M assurances must be addressed  on a
site-specific basis by regional counsel.

In certain instances, it may be difficult to determine when site activity falls
under the scope of routine O&M and when site activity actually represents
the  restart of removal or remedial activity. For example,  repairing a clay cap
may be a routine measure required to maintain the integrity of  the remedy,
or it may be a removal action required to abate an immediate threat to
human health, welfare, or the environment.
To prevent confusion between O&M and the resumption of remedial
activity, the settlement document should contain a detailed description of
what constitutes a failed remedy. The settlement document also should
contain very specific criteria for determining whether an activity is  part of
O&M or actual RA.  Resolution of this issue may be accomplished through
careful examination of the provisions of the settlement and site  conditions
by the RPM, regional counsel, the PRPs, and state technical personnel.

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11. Site Completion
   and Deletion

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         Chapter 11  Site Completion and Deletion


11.1  Description of Activity	1
      11.1.A  Introduction	1
      11.1.B  Responsibilities	1
             11.1.B.1  Role of the Region and RPM	1
             11.1.B.2  Role of Headquarters	2
             11.1.B.3  Role of State or Tribe	2
      11.1.C  Statutory Authority	2
      11.1.D  Definitions	2
11.2  Procedures and Interactions	4
      11.2.A  Documentation of Site Completion	4
      11.2.B  Determination That Site Deletion Criteria Are Met	4
      11.2.C  Collection of Background Information	4
      11.2.D  Consultation with the State or Tribe	4
      11.2.E  Preparation of the NOID or NOIPD	4
      11.2.F  Public Involvement and Input	6
      11.2.G  Preparation of the Responsiveness Summary	6
      11.2.H  Preparation of the NOD or NOPD	6
      11.2.1   State or Tribal Concurrence	6
      11.2.J  Public Notification of Deletion	6
11.3  Reporting Requirements	7

11.4  Potential Problems/Resolutions	8
      11.4.A  Disputes	8
      11.4.B  Concurrence	8
      11.4.C  Releases from Deleted Sites	8
11.5  Activities Checklist	9

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11—ii    Site Completion and Deletion

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                                                                                               11-1
            Chapter 11  Site  Completion and Deletion
11.1
 11.1.A   Introduction
11.1.B Responsibilities
11.1.B.1
     Role of
the Region
        and
       RPM
Description of Activity

Site completion and deletion from the National Priorities List (NPL) occur
for sites after completion criteria are met.  Site completion signifies that all
response actions are complete, all cleanup  levels have been met, and all
requirements specified in the Records of Decision (RODs) have been
implemented for die site. In most cases, the site deletion process begins
when the site completion milestone has been met. Site deletion is die
official determination by EPA that die site needs no further response under
the Comprehensive Environmental Response, Compensation, and Liability
Act (CERCLA); partial deletion signifies diat a portion of die site, or an
entire medium at the site, meets the requirements for deletion from die
NPL. Public notification and state or tribal concurrence is required in the
deletion process.

Responsibilities for site completion and deletion fall with the region and
Remedial Project Manager (RPM), EPA Headquarters, and the state or
tribe. Their roles are discussed in the following sections.

The RPM verifies tiiat die site is eligible for site completion status by
applying site completion criteria. Once this status has  been established, die
RPM either prepares a Final Close Out Report (FCOR) or, in the case of
state-lead sites, asks die state to prepare it. These reports are generally brief,
but may be longer at complex sites widi multiple Operable Units (OUs).
Headquarters and the state or tribe should have an opportunity to review
and comment on die report  prior to final approval. Approval of die FCOR
by the Regional Administrator (RA) establishes diat either all appropriate
response actions have been taken or that no action is required at die site.
In general, die deletion process from the NPL may begin once a site reaches
the site completion milestone.  In some cases, however, a site or portion of a
site can be deleted widiout meeting the site completion or construction
completion criteria. See Chapter 8, RD/RA Negotiations/Settlement, and
Chapter 9, RD/RA Implementation, for a more detailed discussion of
construction completion.
In most cases, die region initiates the deletion process;  however, a state or an
individual may also begin die process by specifically requesting the site
deletion. The RPM initiates die deletion process by consulting widi die
appropriate state, obtaining  state concurrence, compiling a deletion docket,
preparing a Notice of Intent to Delete (NOID) or a Notice of Intent for
Partial Deletion (NOIPD) for the public,  arranging for its submission to die
EPA Headquarters Coordinator for review, and arranging for its publication
in die Federal Register. After a 30-day public comment period, the region
answers comments in a responsiveness summary and places a final Notice of
Deletion (NOD) or Notice of Partial Deletion (NOPD) in the Federal
Register. This signifies deletion of die site  (or a portion of the site) from the
NPL.

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 11—2     Site Completion and Deletion
11.1.B.2          Role of
           Headquarters
11.1.B.3
     Role of
    State or
       Tribe
11.1.C
Statutory
Authority
                               Headquarters reviews the FCOR before approval by the RA, reviews the
                               proposed and final NOIDs and NOIPDs for national consistency, and helps
                               prepare die responsiveness summary where appropriate.

                               The state or tribe has a variety of responsibilities throughout the completion
                               and deletion processes. The state or tribe may prepare the FCOR at state-
                               or tribal-lead sites and work with the region to determine if die site meets
                               the criteria for deletion. The state or tribe also reviews the NOID or
                               NOIPD and the NOD or NOPD prior to approval and publication. Sites
                               cannot be deleted or partially deleted unless die state or tribe concurs with
                               the deletion (see Section 4, Potential Problems/Resolutions).

                               The following statutory and regulatory authority relates to site completion
                               and deletion:

                                  •  Comprehensive Environmental Response, Compensation, and
                                     Liability Act, as amended, 42 U.S.C. 9601, et. seq., section 105.
                                  •  National Oil and Hazardous Substances Pollution Contingency Plan,
                                     40 Code of Federal Regulations part 300.425(e).

11.1 .D    Definitions    The following definitions relate to die site completion and deletion process:

                                  •  Final Close Out Report (FCOR) - A report documenting compli-
                                     ance widi die statutory requirements of CERCLA and providing a
                                     consolidated record of all remedial activities at all of the site's OUs.
                                  •  No Further Response Needed - A decision that any of the three
                                     criteria identified in the National Contingency Plan (NCP) are met
                                     under 40 CFR 300.425(e)(l).
                                  •  Notice of Deletion (NOD) - A notice published in the Federal
                                     Register announcing die deletion of a site from the NPL.
                                  •  Notice of Partial Deletion (NOPD) - A notice published in the
                                     Federal Register announcing that a portion of a site is deleted from
                                     the NPL.
                                  •  Notice of Intent to Delete (NOID) - The Federal Register Notice of
                                     Intent to Delete a site from die NPL. The Notice contains informa-
                                     tion about the site and related cleanup activities, and provides the
                                     public with a 30-day comment period.
                                  •  Notice of Intent for Partial Deletion (NOIPD) - The Federal
                                     Register Notice of the Intent to Delete a Portion of the site from the
                                     NPL.
                                  •  Partial Deletion - The deletion of portions of a site, if diose releases
                                     qualify for deletion. Such portions may be a defined geographic unit
                                     of die site, perhaps as small as a residential unit, or may be a specific
                                     medium at the site, e.g., ground water, depending on the nature or
                                     extent of die release(s).

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                                                           11-3
Site Completion - The completion of all response actions at an NPL
site, as documented in a FCOR.
Site Deletion - The removal of a site listing from the NPL. Sites
may be deleted from the NPL when no further response is necessary
to protect public health or the environment.

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 11—4    Site Completion and Deletion
11.2
11.2.A Documentation
                  of Site
            Completion
11.2.B Determination
              That Site
               Deletion
           Criteria Are
                    Met
11.2.C    Collection
                       of
          Background
          Information
11.2.D   Consultation
               with the
                State or
                   Tribe
11.2.E
Preparation
        of the
     NOID or
       NOIPD
                   Procedures and Interactions
                   Exhibit 11-1 outlines the procedures for completion and deletion of a site
                   or portion of a site.
                   The RPM is responsible for preparing the FCOR, which must describe
                   completely all cleanup actions at the site and must provide the technical
                   justification for site completion. Generally, the FCOR does not signify that
                   the terms of Cooperative Agreements, Consent Decrees, or Administrative
                   Orders have been satisfied, nor does it signify resolution of contractual or
                   other administrative issues for Superfund activities. Deletion from the NPL
                   does not disqualify a site from the requirement of five-year reviews; if waste
                   is left onsite, five-year reviews must still be performed.  The report is a final
                   record of the site and must be complete and able to stand alone. See
                   Chapter 8 RD/RA, Negotiations/Settlement, and Chapter 9, RD/RA
                   Implementation, for more information about site completion.

                   In order for a site to be deleted from the NPL,  the RPM, in consultation
                   with the state or tribe, considers whether any of the following three criteria
                   has been met:

                      •   Responsible parties or other parties have implemented all appropriate
                         response actions required.
                      •   All appropriate Fund-financed responses under CERCLA have been
                         implemented, and no further action is appropriate.
                      •   The Remedial Investigation has shown that the release poses no
                         significant threat  to public health or die environment, and, therefore,
                         taking remedial measures is not appropriate.

                   The RPM next compiles background information on the site, including the
                   site history, a description of remedial activities undertaken, the extent and
                   nature of community involvement and notification, and the determination
                   that all appropriate CERCLA response actions have been completed in
                   accordance with the goals and objectives of the applicable ROD. This
                   information can usually be found in die FCOR. All appropriate
                   background materials and records should be placed in a deletion docket
                   created for the information repository.

                   The RPM consults with  the appropriate state or tribal agency prior to   •
                   developing the NOID or NOIPD.  Sites are not deleted or partially deleted
                   from the NPL until the state or tribe has concurred with the deletion.
The RPM produces a NOID or NOIPD.  This document informs the
public of EPA's intent to delete a site or a portion of a site from the NPL.
The NOID should contain general information about the site, a list of
contacts (including regional staff), and an  outline of deletion criteria and
procedures. A NOIPD should contain similar information as the NOID,
but with stricter mapping and tracking requirements.

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                                                                                                        11-5
11-1   Site Completion and Deletion Procedures
                                                      Start
                                          Verify that Site Completion Criteria
                                                  Have Been Met
                                                    Draft FCOR
                                             Obtain EPA HQ and State
                                           Comments; Obtain Region and
                                               State Peer Comments
                                          Incorporate Comments into FCOR
                                           Obtain Regional Administrator's
                                            Signature and Send Copy of
                                          Signed FCOR to EPA Headquarters
                                                       1
                                             Obtain State Concurrence
                                          Prepare Notice of Intent to Delete
                                            (NOID) or Notice of Intent for
                                          Partial Deletion (NOIPD); Obtain
                                          EPA HQ Comments and Regional
                                          Administrator Approval; Compile
                                              Deletion Docket Material
                                          Place Deletion Docket in Regional
                                              Public Docket and Local
                                                    Repository
                                             Publish NOID or NOIPD in
                                                 Federal Register
                                           Provide 30-Day Public Comment
                                           Period; Prepare Responsiveness
                                           Summary, if Necessary, and Place
                                            in Regional Docket and Local
                                                    Repository

                                            [Prepare Notice of Deletion or
                                          Motice of Partial Deletion; Publish
                                                in Federal Register


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 11—6    Site Completion and Deletion
11.2.F          Public
          Involvement
             and Input
11.2.G   Preparation
                  of the
     Responsiveness
             Summary
11.2.H   Preparation
           of the NOD
              or NOPD

11.2.1        State or
                   Tribal
         Concurrence
11.2.J           Public
           Notification
           of Deletion
If a partial deletion is being undertaken, the RPM also completes a data
characterization package, including a Partial Site Deletion Collection Form,
and a map that clearly shows the entire site and the portion to be deleted
(including scale and date), widi site coordinates for at least three reference
points on the map. The map also must contain easily identifiable
landmarks such as roads and water bodies.  Requirements for submitting
ensure diat complete copies of die deletion docket are placed in the
appropriate regional and local repositories.
Reference
"Notice of Policy Changes: Partial Deletion of Sites Listed on die NPL," 60
Federal Register 55466 (November 1, 1995).

Public notification is required in the deletion process. To ensure public
involvement, the RPM performs die following tasks:

   •   Publishes a NOID or NOIPD in the Federal Register diat includes a
      solicitation of public comment for a minimum of 30 calendar days.
   •   Places copies of die information supporting die proposal of deletion
      in the information repository.
   •   Publishes a notice of availability of die NOID or NOIPD in a major
      local newspaper of general circulation.

The RPM prepares a responsiveness summary diat includes detailed
responses to each significant comment received  during the public comment
period. Headquarters may provide assistance widi diis task where
appropriate. The summary is placed in the regional docket and in die local
repository.

Once die responsiveness summary has been approved by the RA and placed
in the proper repositories, the RPM produces a  NOD or NOPD diat states
that all appropriate Fund-financed responses under CERCLA have been
implemented and that no further response  is appropriate. It includes an
effective date, a regional contact, and supplemental site information.

The state or tribe has 30 working days to review the NOD or NOPD prior
to its publication in the Federal Register.
The final step in the deletion process is to place the NOD or NOPD in the
Federal Register. Site information should dien be entered into die
CERCLIS3/WasteLAN and Superfund NPL Assessment Program (SNAP)
databases.

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                                                                                11-7
11.3                     Reporting Requirements
                          In addition to submitting documents to Headquarters for approval, RPMs
                          also ensure diat accurate information is entered into CERCLIS 3/
                          WasteLAN for tracking purposes. This information includes die PGOR,
                          FCOR, NOID, NOPD, NOIPD, and NOPD.

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 11—8    Site Completion and Deletion
11.4                       Potential Problems/Resolutions
11.4. A      Disputes    The potential problem of disputes over deletion between the state and EPA
                             or between PRPs and EPA has not yet been faced. EPA may need to
                             develop guidance on this issue.
11.4.B ConCUITSnCG    Sites cannot be deleted without state or tribal approval.
11.4.C
Releases
     from
 Deleted
     Sites
All releases from sites deleted from the NPL are eligible for further Fund-
financed remedial action should future conditions warrant such action. If
there is a significant release from a deleted site, the site is restored to the
NPL without application of the Hazard Ranking System (see NCP section
300.430 (e)(3) for more information). Note that deletion of a site from the
NPL does not affect potential response party liability or impede Agency
efforts to recover costs associated with response actions.
Reference
National Oil and Hazardous Substance Pollution Contingency Plan, 40
Code of Federal Regulations section 300.430 ("Remedial Investigation/
Feasibility Study and Selection of Remedy") (1990).

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                                                                                          11-9
11.5                       Activities Checklist
                             1)	    Produce FCOR to document site completion
                             2)	    Determine if site deletion criteria are met
                             3)	    Collect background information on site
                             4)	    Consult with state or tribe on site deletion
                             5)	    Produce a NOID or NOIPD
                             6)	    Notify die public and obtain public input
                             7)	    Prepare a responsiveness summary to public input
                             8)	    Prepare a NOD or NOPD
                             9)	    Obtain state concurrence on final deletion
                             10)	    Notify die public on final deletion

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12. Cost Recovery

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                                                                           12-i
                    Chapter 12  Cost Recovery


12.1  Description of Activity	1

      12.1.A  Introduction	1
      12.1.B  Cost Recovery for Removals	3
      12.1.C  Cost Recovery for Sites in the Remedial Process	4
      12.1.D  Cost Recovery in Context of RD/RA Negotiations	4
      12.1.E  Case Referral	5
      12.1.F  Recovery of Oversight Costs	5
      12.1.G  Special Accounts	7
12.2  Procedures and Interactions	8

      12.2.A  PRP Searches	8
      12.2.B  Cost Recovery Strategy	9
              12.2.B.1  Prioritization of Cases	9
              12.2.B.2  Timing	10
              12.2.B.3  Decision Not to Pursue Cost Recovery	11
              12.2.B.4  Decision Document	11
      12.2.C  Notification and Demand Requirements	11
              12.2.C.1  Special Notice Letters	12
              12.2.C.2  Demand Letters	12
              12.2.C.3  Types of Costs and Pre-Judgment Interest	13
      12.2.D  Documentation  Requirements	 13
              12.2.D.1  Types of Expenditures	14
              12.2.D.2  EPA Indirect Costs	14
              12.2.D.3  Evidence	14
              12.2.D.4  Cost Summaries	15
      12.2.E  Documentation  Procedures	17
      12.2.F  Judicial Cost Recovery	20
              12.2.F.1  Referral Package	21
              12.2.F.2  Litigation Support	21
              12.2.F.3  Litigation Management Plan	22
      12.2.G  De Minimis Settlements	23
              12.2.G.1  Necessary Information	23
              12.2.G.2  Release from Liability and Reopeners	24
      12.2.H  Administrative Settlements	25
      12.2.1    Enforcing Settlements	26
      12.2.J  Arbitration	26
      12.2.K  Mixed Funding	28
      12.2.L  Orphan Shares	28
      12.2.M  Bankruptcy Actions	29
              12.2.M.1  Statutory Background	29
              12.2.M.2 Proof of Claim	29
              12.2.M.3 Environmental Claims as Priorities	30
      12.2.N  Ability to Pay	30

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 12—it   Cost Recovery
12.3. Planning and Reporting Requirements	32
     12.3.A  Planning	32
     12.3.B  Budgeting	32
     12.3.C  Reporting Requirements	32

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                                                                                               12-1
                         Chapter  12  Cost Recovery

12.1                         Description of Activity

12.1 .A  Introduction    When the Agency uses Fund monies for a response action not inconsistent
                               with the National Contingency Plan (NCP) at a site where there are
                               financially viable Potentially Responsible Parties (PRPs), it is authorized to
                               take an enforcement action against those PRPs to recover its costs.  This
                               action, under Comprehensive Environmental Response, Compensation, and
                               Liability Act (CERCLA) section 107, is known as a cost recovery action.
                               Cost recovery can be pursued for the costs of a removal, Remedial
                               Investigation/Feasibility Study (RI/FS), Remedial Design (RD), and
                               Remedial Action (RA),  including EPA's costs of overseeing PRP responses.
                               The cost recovery actions taken may include issuance of demand letters,
                               negotiations with PRPs, Alternative Dispute Resolution (ADR),
                               administrative settlements, judicial settlements, and litigation.
                               Costs incurred by EPA under Resource Conservation and Recovery Act
                               section 7003 also may be recoverable under CERCLA section  107. Courts
                               have generally agreed that EPA can recover certain costs under section 107
                               for actions taken under other statutory authority as long as each of the
                               elements of section 107(a) is satisfied.  This means that the costs were: 1)
                               incurred as part of a removal or RA; 2) incurred in responding to a release or
                               direatened release of a CERCLA hazardous substance; and 3) not
                               inconsistent with the NCP
                               This chapter provides Remedial Project Managers (RPMs) and On-Scene
                               Coordinators (OSCs) with an overview of the central components of cost
                               recovery actions. The information is organized to follow the chronology of
                               tasks that an RPM/OSC manages in a cost recovery action.
                               There  are two major types of cost recovery actions:

                                 •   Cost Recovery for Removals.
                                 •   Cost Recovery for RAs.
                               As part of each type of cost recovery action, EPA may recover past and
                               future  response and oversight costs, indirect costs, and interest. Cost
                               recovery cases are not limited to one type of cost, but may include die direct
                               and indirect costs related to remedial and removal actions plus interest on
                               these costs. All costs directly related to a specific cleanup are direct costs.
                               Indirect costs include things such as employee overhead, rent, electricity, etc.
                               Documents relevant to all aspects of die case must be compiled to support
                               cost recovery. EPA must file cost recovery actions within certain periods
                               specified in die statute.  These statute of limitations (SOL) dates are
                               discussed later in this chapter.
                               Each type of cost recovery action is discussed briefly below and
                               Exhibit 12-1 presents die process for each type of action.

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    Cost Recovery For
    Oversight Costs
       Without RD/RA
         Settlement
Cost Recovery For
Remedial Sites
          With RD/RA
          Settlement
  Cost Recovery For
Conventional Removals
  and Remedials With
  More Than 3 Years
 from ROD or RD to RA
Settlement
for PRP
Response


Cost
Documentation
•v^


                                                                     Demand Letters
Collection
                                                                   May Repeat Annually
Remedial
Design Near
Completion

Review PRP
Search and
Upgrade as
Necessary

}
/
Decision to
Pursue Cost
Recovery
|NO
Close-out
Memo

YES


Ensure
Adequate
Evidence
on Liability
Activity/Cost
Doc.
Compile and
Cert. AR


                                                                                            Demand Letters
                                                                                                                                                               IS)
O
o
                                                              (D
                                                              O
                                                              O
                                                              o
                                                              o
                                                              (D
                                                              8
            ?
            s>

Full
Settlement
Referral
Package


Finalize
Full
Settlement

Removal
Completion
or ROD
or RD

Review PRP
Search and
Upgrade as

!/
Decision to
Pursue Cost
Recovery
i
NO
f
Decision
Document
YES


Ensure
Adequate
Evidence
on Liability
Activity/Cost
Doc.
Ensure
Compilation
of AR
^ Demand ^


                          Necessary

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                                                                                                 12-3
12.1.B             Cost
          Recovery for
              Removals
During the course of the Fund-lead removal action, die OSC is responsible
for compiling die Administrative Record (AR) with assistance from regional
counsel and the Administrative Record Coordinators, obtaining
information on die identities of PRPs, and documenting die removal work
undertaken and die costs incurred.  As die removal proceeds, die OSC
works widi regional counsel to complete the PRP search information. After
the removal is completed and die OSC files die final report for the action,
the Agency must decide whedier to pursue cost recovery for its expenses.  In
selecting which sites to pursue, die Agency places a higher priority on sites
at which more than $200,000 was spent on die removal action. If die
Agency decides to proceed with cost recovery, diree parallel activities are
conducted: 1) ensuring that die liability information collected in die PRP
search meets evidentiary standards; 2) documenting die costs of the removal
acdon; and 3) reviewing the compilation of die AR.  Check widi regional
management to identify die staff who perform diese tasks as diey vary by
region. The first activity should be performed as die PRP search proceeds.
Once die Agency's costs have been documented and die PRPs are  reasonably
well identified, EPA sends demand letters to die PRPs. The demand letters
notify die PRPs of their liability for the Agency's  cleanup costs, demand
payment of die full cost of cleanup, and start die accrual of interest on costs.
In a limited number of situations, die PRPs will respond to die demand
letters by reimbursing die Agency immediately. After demand letters have
been sent, follow-up phone calls may serve as an  effective means to explain
both what the demand letter means and, for those PRPs who are unfamiliar
widi it, die Superfund process. In most situations, die PRPs will seek to
negotiate widi  the Agency over the extent of their liability for the costs
incurred. If diese negotiations result in a settlement, EPA and die PRPs
may enter into an administrative cost reimbursement settlement pursuant to
CERCLA section 122(h)(l) (or an Administrative Order on Consent
(AOC) if die setdement calls for performance of a removal  action as well as
payment of costs).  If die total response costs of the United States  at the site
exceed $500,000 (excluding interest),  die Department of Justice (DOJ)
must concur on die terms of die setdement.
If die PRPs refuse to reimburse EPA for diese costs, die region will decide
whedier to refer die case to DOJ to recover the money.  When deciding
whedier to initiate a judicial action, die  region reviews die case's priority
(see secdon 2, "Prioritization of Cases")  and all available evidence, and
evaluates die likely success of cost recovery efforts for dial particular site.  If
the region decides to initiate die suit, die case will be referred to DOJ by a
litigation referral. In general, cost recovery cases  involving  post-Superfund
Amendments and Reaudiorizarion Act (SARA) removals (except those widi
section 104(c)(l)(C) waivers) must be filed widiin an SOL dated diree years
after completion of die removal.

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 12—4    Cost Recovery
12.1.C
           Cost
     Recovery
      for Sites
          in the
     Remedial
       Process
12.1.D
           Cost
  Recovery in
       Context
     of RD/RA
Negotiations
Reference
Office of Site Remediation Enforcement (OSRE) Memorandum, "Guidance
on Administrative Response Cost Settlements under Section 122(h) of
CERCLA and Administrative Cashout Settlements with Peripheral Parties
under Section 122(h) of CERCLA and Attorney General Authority"
(September 30,  1998).

Cost recovery activities at sites in the remedial process may include past
expenditures for removals, RI/FS, or RD. The outcome of RD/RA
negotiations and timing concerns related to possible SOL dates affect
remedial cost recovery. When EPA incurs cleanup costs at a remedial site,
there are five basic contexts in which it may recover its costs:

   •   The Agency funds removal action or RI/FS, and PRPs agree to
      fund RD/RA. The Agency usually recovers removal and RI/FS costs
      from the PRPs as part of the RD/RA settlement.
   •   The Agency funds a removal action or RI/FS; one group of PRPs
      agrees to perform the RD/RA, but another group does not. The
      Agency may sue the non-setdors separately for all or part of the
      removal  and/or RI/FS costs.
   •   The Agency funds the RD/RA because there was no settlement.
      The Agency may seek to recover the costs of die entire response in a
      cost recovery action, which should be developed early in the remedial
      construction.
   •   The period between completion of a Fund-lead removal action,
      RI/FS, or RD and initiation of on-site construction of a Fund-
      lead RA is likely to exceed three years.  EPA will sue to recover the
      costs of the response activity prior to the three-year break, and
      subsequendy amend the complaint to add die costs of later activity.
   •   The site has multiple remedial Operable Units (OUs). On the
      assumption diat there may be different SOL dates for different OUs,
      EPA will sue to recover the costs incurred at the first OU. If there
      are no apparent divisibility issues among the OUs, EPA will seek a
      declaratory judgment for costs at the remaining OUs, and, if neces-
      sary, sue  to recover costs at the remaining OUs as they are incurred.
      If there are divisibility issues among die OUs, EPA will pursue
      separate  cost recovery actions.

When the Agency negotiates widi the PRPs to perform the RD/RA at the
site, all recoverable past  costs will be pursued as part of die overall
negotiations. If, however, die Agency is pursuing remedial response costs
separately from  a setdement for RD/RA, separate cost documentation and
demand letters will be required. Refer to Chapter 7, RD/RA Negotiations,
for a more detailed discussion of die process of RD/RA negotiations.
The RPM works with regional counsel and the Civil Investigator (CI) to
assure that the five major pre-litigation activities involved in remedial cost
recovery are performed.  These activities can be performed concurrently and
usually occur near the time that the Record of Decision (ROD) is signed,

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                                                                                                12-5
12.1.E
    Case
Referral
12.1.F   Recovery of
              Oversight
                    Costs
although their timing may vary when the Agency is seeking to recover other
costs (e.g., removal, RI/FS) as well. Cost recovery personnel must:

   •    Ensure that the PRP liability information meets evidentiary stan-
       dards.
   •    Complete and certify the AR.
   •    Document the work performed and the costs of the removal, reme-
       dial, and oversight activities undertaken.
   •    Send demand letters to the PRPs, either as pan of Special Notice
       Letters (SNLs) or separately.
   •    Negotiate with the PRPs about their liability and the extent of EPA's
       costs.
If this process is successful and the PRPs agree to reimburse the Agency for
its costs, the setdement usually will result in a Consent Decree (CD).

If the PRPs do not agree either to perform the RD/RA or reimburse die
Agency's costs, EPA will develop a case to sue some or all of the PRPs.
depending on the universe of PRPs, their liability and financial viability, and
their contributions. This case, developed at die time the RA starts, will seek
to recover EPA's past and future costs, plus interest. This process begins
with the Case Team's preparation of a litigation referral package which will
be sent to DOJ for action.  The referral package must contain all pertinent
facts and documents concerning die response decision and underlying
record.  The principal components of the litigation referral package include
documentation of PRP liability, defenses, and viability; the work dial was
performed during the response activities; and the cost of diose activities.
DOJ places particular emphasis on the work performed package, because it
ensures that the court knows what work was performed at die site. Work
performed documentation includes mondily contractor progress reports,
copies of deliverables received, action memos, and RODs. Assembling cost
documentation will require die Case Team to coordinate its efforts widi
regional financial personnel, the Financial Management Division (FMD),
and die Office of Site Remediation Enforcement (OSRE).
After the completed referral package is sent to DOJ, members of the Case
Team will be called upon to perform litigation support activities. This may
involve consultation widi regional counsel on technical aspects of response
authorization, time-consuming involvement in complex litigation, and
testimony in court. The RPM/OSC must budget and manage litigation
support contractors, and can expect to be called upon to provide his/her
technical expertise to help prosecute the cost recovery case.

Costs associated with oversight of PRP response actions, including removal
actions, are fully recoverable under section  107 of CERCLA CERCLA
section 104 requires that, before die authorization of a PRP's conduct of the
RI/FS, the PRP agrees to reimburse die Agency for RI/FS oversight costs.
In other contexts, this reimbursement of oversight costs is required by EPA
policy.  The agreement to pay EPA's oversight costs is usually a part of die

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12—6    Cost Recovery
                             settlement document for the PRP's response action. In order to minimize
                             disputes and replenish the Hazardous Substance Superfund as quickly as
                             possible, it is essential that projected oversight activities and oversight billing
                             be discussed with PRPs during settlement negotiations. The consent
                             agreement should specify the cost documentation to be provided by EPA.
                             For each PRP or group of PRPs that has an agreement to pay oversight
                             costs, EPA will issue an oversight bill that includes appropriate cost
                             documentation or, if the region will not issue a bill (e.g., in cases where
                             special accounts are used to pay oversight costs), provide an accounting of
                             costs. It is essential to identify and resolve any oversight disputes early. The
                             Agency policy is to bill PRPs annually.  PRPs reimburse the Agency
                             according to the schedule set out in the settlement document. RPM/OSCs
                             should provide a copy of the settlement document to financial management
                             so an account and tentative billing schedule can be established.
                             In United States v. Rohm and Haas Co., 2 F.3d 1265 (1993), the U.S. Court
                             of Appeals for the Third Circuit ruled that the costs of EPA's oversight of an
                             RA conducted by a private party cannot be recovered under CERCLA. This
                             aspect of the Rohm and Haas decision has not been followed outside the
                             Third Circuit, but it is the law in parts of Regions 2 and 3.
                             References
                             OSRE Memorandum, "Guidance on Administrative Response Cost
                             Settlements under Section 122(h) of CERCLA and Administrative Cashout
                             Settlements with Peripheral Parties under Section 122(h) of CERCLA and
                             Attorney General Authority" (September 30, 1998).
                             Office of Enforcement and Compliance Assurance (OECA) Memorandum,
                             "Guidance on the Use of Section 7003 of RCRA" (October 20, 1997).
                             OSRE Memorandum, "Issue of'Model CERCLA Section  107 Consent
                             Decree for Recovery of Past Response Costs' and 'Model CERCLA Section
                             122(h)(l) Agreement for Recovery of Past Response Costs'" (September 29,
                             1995).
                             OSRE Memorandum, "Cost Recovery Cases Where Site Costs Total Less
                             Than $200,000" (April 26, 1995).
                             Office of Solid Waste and Emergency Response (OSWER) Directive
                             9835.11-1, "Model Litigation Report for CERCLA sections 106 and 107
                             and RCRA Section  7003 Actions" (June 21, 1989).
                             OSWER Directive 9832.13, "The Superfund Cost Recovery Strategy" (]uiy
                             29, 1988).
                             OSWER Directive 9832.11, "Guidance on Documenting  Decisions Not to
                             Take Cost Recovery Actions" (June 7, 1988).
                             OSWER Directive 9832.0-1 A, "Procedures for Documenting Costs for
                             CERCLA Section 107 Actions" Qanuary 30,1985).
                             OSWER Directive 9832.1,  "Cost Recovery Actions Under the
                             Comprehensive Environmental Response, Compensation,  and Liability Act
                             of 1980 (CERCLA)" (August 1983).

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                                                                                               12-7
12.1 .G         Special    ln October 1995, EPA announced its intention to encourage greater use of
              Accounts    special accounts as a means to ensure that settlement funds received would
                               be used for future response actions at a particular site. In June 1996, the
                               Agency reached agreement widi the Office of Management and Budget and
                               the Department of Treasury that the interest earned by site-specific special
                               accounts can be credited to these accounts and used to fund future response
                               actions at the sites in question. As only the portion of settlement funds that
                               represents payment towards future costs can be placed in a special account,
                               it is critical to clearly state in the settlement document, in dollar amounts or
                               percentages, what portion of the overall proceeds are in recognition of future
                               costs and to be placed in a special account.  Designation of how payments
                               are to be treated is essential because, if payments are not identified in this
                               way, the regional finance office may apply payments in a manner inconsis-
                               tent with what the settlors originally intended. For existing setdements
                               where past and future costs have been designated in the settlement docu-
                               ment, the region should consider whether to establish a special account for
                               the future costs component.  Where such situations exist, the regional
                               program office should submit a memorandum to the regional finance office
                               asking it to set up a special account for that site.
                               Agency guidance sets forth specific requirements and procedures for dis-
                               bursement of special account funds to a PRP. The guidance addresses,
                               among other things, the circumstances under which a PRP  may receive
                               funds from a special account (e.g., if it agrees to perform a response action
                               under a settlement agreement), the timing and amount of disbursements,
                               and disposition of remaining amounts in  the special account after work is
                               complete.  Prior written approval of the Director of OSRE's Regional
                               Support Division (RSD) is required before making an offer to a PRP that
                               includes the disbursement of special account funds to a PRP. The final draft
                               of the settlement agreement also must be  submitted to die RSD Director for
                               review and approval.
                               The Office of the Comptroller's Financial Management Division is currently
                               finalizing guidance for administering Special Accounts as part of its ongoing
                               revisions of the Resources Management Directives System (RMDS), 2550D,
                               Financial Management of the Superfund Program. The guidance will be
                               added to RMDS 2550D as Chapter 15, "Financial Management of Cashout
                               Special Accounts." The draft will serve as  interim policy until it is approved
                               and cleared for publication.
                               References
                               OSRE Memorandum, "Interim Final Guidance on Disbursement of Funds
                               from EPA Special Accounts to CERCLA Potentially Responsible Parties"
                               (November 3, 1998).
                               OSRE/Office of the Comptroller, "Update and Implementation of the
                               Superfund Reform on Special Accounts" (February 7, 1997).

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 12—8     Cost Recovery
12.2
12.2.A              PRP
               Searches
Procedures and  Interactions

CERCLA establishes the liability of responsible parties for the costs incurred
by the government when responding to a release of hazardous substances
(see Chapter 3, Establishing CERCLA Liability, for a detailed discussion).
There are two key statutory provisions:

   •   Section 107 of CERCLA authorizes the Agency to seek cost recovery
      and pre-judgment interest through judicial action.
   •   Section 122(h) of CERCLA authorizes the Agency to enter into
      administrative settlements with PRPs, but requires DOJ approval
      when the total response costs of the United States at the site exceed
      $500,000. The audiority to settle cost recovery cases administra-
      tively was delegated to the Regional Administrators (RAs) by Delega-
      tion 14-14-D (Sept. 21, 1987) and re-delegated within many
      regions. Section 122(h)(3) of CERCLA provides die Agency with
      the authority to enforce these settlements.
The Agency's cost recovery strategy emphasizes  negotiating administrative
settlements whenever possible and litigating only when necessary.

PRP searches are collections of evidence of the PRPs' liability and financial
viability, and are very important in every aspect of dealing with the PRPs. A
PRP search dial produces strong evidence will help EPA negotiate a more
favorable setdement. In cases in which die PRPs refuse to conduct the
response activity or  to reimburse the government's costs, PRP searches
provide much of die evidence of liability that will be used in future
litigation.
The PRP search is a collection and analysis of information about each PRPs
connection to the site.  It includes title searches, a review of existing
documentation such as waste manifests, responses to CERCLA section
104(e) information  requests, interviews with knowledgeable parties, review
of corporate research, and analyses of waste-in information.  From diis
information a PRP Search Report is developed which describes in detail
each PRPs involvement widi the site and die evidence diat proves that
involvement.
Although the exigencies of die particular site and die value of die response
action dictate die scope of die initial PRP search, die PRP search is a
fundamental component of a response action. The search should be
initiated as early as possible to assist in developing a site-specific
enforcement strategy.  The PRP search generally continues throughout die
response activity at a site, and supplemental investigative work may be
necessary for cost recovery.
PRP searches are discussed in detail in Chapter 4, PRP Search, Notification,
and Information Exchange.

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                                                                                                 12-9
12.2.B
12.2.B.1
         Cost
   Recovery
   Strategy
Prioritization
      of Cases
References
OSWER Directive 9834.3-2a, "PRP Search Supplemental Guidance for
Sites in the Superfund Remedial Program" (June 29, 1989).
OSWER Directive 9834.6, Potentially Responsible Party Search Manual
(August 27, 1987).

EPA's cost recovery strategy sets forth the Agency's priorities for cost
recovery and the steps that each response action must go through for
settlement, litigation, or site close-out.

Once a response activity has been identified as a cost recovery candidate,
regional management prioritizes die cases to ensure that regional resources
are efficiently used to meet die objectives of die cost recovery program,
which are to:

   •    Maximize return of revenue to the Fund.
   •    Initiate enforcement activity within strategic time frames, but no
       later than the date defined by the applicable SOL.
   •    Exploit deterrent effect of litigation to encourage recalcitrant parties
       to setde.
   •    Use administrative authority and dispute resolution procedures.
The Office of Solid Waste and Emergency Response (OSWER) has
developed the following case priorities for cost recovery at sites widi
financially viable PRPs:

   1.   National Priorities List (NPL) and non-NPL sites at which EPA has
       completed a removal action (including expanded removal actions,
       RI/FSs, and initial remedial measures), die response costs are
       $200,000 or greater, and die SOL deadline is approaching.
   2.   Cases in which Fund-financed RD/RA has been initiated; a remedial
       case referral to DOJ should be scheduled for every site in diis
       category.
   3.   Sites at which diere has been a partial setdement providing the
       Agency widi less dian full relief and there are viable non-setdors.
   4.   NPL or non-NPL  sites at which EPA has completed a removal action
       and die costs of response are $200,000 or greater. Depending upon
       resources, referrals to DOJ on these sites should occur no later than
       12 months after the completion of the removal action.
   5.   Sites at which total response costs are less dian $200,000; current
       Agency guidance states diat regions "do not have to pursue such cases
       vigorously (e.g., conduct extended PRP searches or send numerous
       demand letters and information requests), because it is likely diat die
       cost of collection will exceed the amount recovered."
In addition to these five priorities, the Agency will pursue cost recovery
against PRPs diat are undergoing bankruptcy proceedings in limited

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 12—10   Cost Recovery
12.2.B.2
            circumstances.  Bankruptcy referrals pose a difficult problem for four
            reasons: 1) lack of PRP unencumbered resources; 2) time constraints; and 3)
            EPA resource limitations. RPMs should work closely with regional counsel
            and OSRE's Regional Support Division to resolve any bankruptcy issues.

Timing    RPMs/OSCs must be aware of statutory time limits for filing cost recovery
            actions. A case cannot be filed after the statute of limitations has expired.
            Section 113(g)(2) of CERCLA states that a cost recovery action must be
            initiated within:

               •   Three years after completion of a removal action or six years after the
                   signature date of the removal waiver.
               •   Six years after initiation of physical on-site construction of the RA.
            For purposes of defining the cost recovery SOL, removal actions include
            traditional removals, RI/FSs, and RDs.  The SOL for a removal action (as
            defined above) is three years from the completion of the last removal action.
            For example, if a removal, RI/FS, and RD are conducted, the SOL would
            be three years from the completion date of the RD.  All information should
            be verified, as mistakes can doom a cost recovery action.
            Sites where the SOL is near expiration can be identified using EPA's Cost
            Recovery Targeting Report. By merging information on Comprehensive
            Environmental Response, Compensation, and Liability Information System
            (CERCLIS) planning obligations with IFMS data, this report presents a
            complete picture of recoverable past costs and the status of all past, ongoing,
            and planned efforts to address them.
            CERCLA 113(g)(2) indicates that removal costs may be pursued as part of
            the cost recovery for RAs if the RA is initiated within three years of the
            completion of the removal.
            In summary, a removal  (not including an RI/FS) may be ready for cost
            recovery when it is completed. Remedial sites are ready for referral when
            on-site construction of the RA is initiated. Removal, RI/FS, and RD
            response costs may be pursued as part of RA cost recovery, unless the RA
            will not begin widiin three years of the completion of the last response
            action.  If the RA does not begin within three years, the removal, RI/FS, or
            RD costs should be sought separately.
            Cost recovery actions for removals should be referred to DOJ as soon as
            possible after the action has been completed, ideally not later than one year
            after the completion date.  Cost  recovery actions for remedial responses
            should be referred at the time of initiation of physical, on-site construction
            of the RA. RPMs/OSCs should anticipate that it takes at least two quarters
            to prepare a referral package.  RPMs/OSCs also must be aware that special
            circumstances, such as bankruptcy,  impending fraudulent transfer of assets,
            or the voluntary dissolution of die business of a PRP may require that a cost
            recovery case be filed on an expedited basis in order to ensure maximum
            recovery for EPA.  The importance of clearly documenting when a removal
            action was completed or a remedial action was initiated cannot be
            overemphasized.

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                                                                                            12-11
12.2.B.3
       Decision
 Not to Pursue
Cost Recovery
12.2.B.4
       Decision
     Document
12.2.C   Notification
         and Demand
        Requirements
References
OSRE Memorandum, "Cost Recovery Cases Where Site Costs Total Less
Than $200,000" (April 26, 1995).
OSWER Directive 9832.9, "Cost Recovery Actions/Statute of Limitations"
(June 12, 1987).

The region may decide not to pursue cost recovery at a particular site after
analyzing the site's cost recovery potential.  Such decisions must be
documented in a Decision Document (DD) and entered into WasteLAN.
Information gathered during the PRP search, removal action, and the RI/FS
forms the basis of the decision not to pursue cost recovery. The possible
reasons for a region to decide not to pursue cost recovery include:

   •   No PRPs were identified for the site.
   •   PRPs identified were not financially viable.
   •   Available evidence does not support one or  more of the essential
      elements of a prospective case, and there is no reason to believe that
      such evidence can be discovered in the future.
   •   Very small expenditures were incurred for the site and there are
      inadequate resources to litigate.

The DD is written by the enforcement or removal program staff person
assigned to the case in consultation with regional counsel, and signed by the
regional program director. The DD and its supporting documents are
considered confidential;  therefore, it should not be placed in the AR.
Chapter 15, Records Management, discusses how to handle confidential
files. Current Agency guidance states that regions  may prepare an
abbreviated DD for cases where total response costs are less than $200,000.
References
OSRE Memorandum, "Cost Recovery Cases Where Site Costs Total Less
Than $200,000" (April 26, 1995).
OSWER Directive 9832.12, "Transmittal of the Superfund Cost Recovery
Strategy" (July 29,1988).
OSWER Directive 9832.13, "Guidance on Documenting Decisions Not to
Take Cost Recovery Actions" (June 7, 1988).

Under CERCLA and current Agency policy, there  are several different
opportunities to notify PRPs of their potential liability for cleanup costs.
For cost recovery purposes, the most important opportunities are the
issuance of letters that include demands for reimbursement, such as notice
letters or demand letters.

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 12—12   Cost Recovery
12.2.C.1          Special    Pursuant to CERCLA section 122(e)(l), SNLs are issued prior to Non-
                   Notice    Time-Critical (NTC) removals, RI/FSs, and RD/RAs. Although a primary
                   Letters    purpose of these letters is to facilitate negotiations for prospective work, the
                               letters also serve as a vehicle to put past costs into the negotiations and
                               trigger pre-judgment interest. Planning for NTC removals, RI/FSs, and
                               RD/RAs should include documentation of past costs. SNLs should include
                               a demand for past as well as prospective work or costs. EPA may decide not
                               to use these special notice procedures; however, pursuant to CERCLA
                               section 122(a), EPA must notify the PRPs in writing and indicate why these
                               procedures are inappropriate.
                               References
                               OSRE Memorandum, "Transmittal of Sample Notice Letters: 1) Demand;
                               2) General Notice; 3) Special Notice; and 4) Follow-Up  104(e)" (July 26,
                               1996).
                               OSWER Directive 9834.10, "Interim Guidance on Notice Letters,
                               Negotiations, and Information Exchange" (October 19,  1987).

12.2.C.2        Demand    As a matter of policy, EPA sends a written demand letter to the PRPs prior
                   Letters    to filing a cost recovery lawsuit.  A demand letter is a request that the  PRPs
                               reimburse the Fund for a specified amount, which is generally associated
                               with one or more response activities.  Also, the written demand letter
                               triggers die accrual of pre-judgment interest on die response costs sought.
                               The authority to issue demand letters has been delegated to die Regional
                               Administrators.  RPMs should consult with regional management to
                               determine who has authority to prepare and issue demand letters in die
                               region.
                               Demand letters may be sent to each PRP  for each separate response activity,
                               such as removals, RI/FSs, RDs, and RAs,  or for combined activities as
                               appropriate.  The optimum  time for issuing demand letters varies,
                               depending on the nature of the response.  In coordination with regional
                               counsel, the OSC should issue the letter for removal actions soon after the
                               removal activities are completed  and all necessary documents are compiled.
                               For each OU of RAs, a letter should be issued for the RI/FS costs, RD costs,
                               and major phases of RA costs at  the following times: in connection widi die
                               ROD  (in special notice), soon after the RD is completed, and soon after
                               major phases of the RA are completed.
                               References
                               OSRE Memorandum, "Transmittal of Sample Notice Letters: 1) Demand;
                               2) General Notice; 3) Special Notice; and 4) Follow-Up  104(e)" (July 26,
                               1996).
                               OSWER Directive 9832.18, "Written Demand for Recovery of Costs
                               Incurred Under Comprehensive  Environmental Response, Compensation,
                               and Liability Act (CERCLA)" (March 28, 1991).

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                                                                                             12-13
12.2.C.3
       Types of
     Costs and
Pre-Judgment
        Interest
12.2.D Documentation
          Requirements
In accordance with CERCLA section 107, the demand letter should seek to
recover interest from the date of the written demand for past costs or from
the date that future costs are actually incurred. The demand letter should
include a request for all costs, including:

   •   Costs incurred under EPA contracts with private contractors, includ-
      ing annual allocation costs.
   •   EPA direct costs, including costs such as EPA staff salaries, travel, and
      other miscellaneous, site-specific expenditures.
   •   Costs incurred under Interagency Agreements (LAGs), including the
      U.S. Army Corps of Engineers (USAGE), DOJ, the Agency for Toxic
      Substances and Disease Registry (ATSDR), and the U.S. Coast
      Guard (USCG).
   •   Costs incurred under Cooperative Agreements (CAs), including state
      agreements.
   •   Technical Assistance Grants (TAGs).
   •   Indirect costs incurred by EPA for the response actions.
   •   Pre-judgment interest.
   •   Future costs.
Reference
Comptroller Policy Announcement 87-17, "Interest Rates for Debts
Recoverable Under the Superfund Amendments and Reauthorization Act of
1986" (September 1987).

The region's site files will contain several types of documents that can be
used to support a cost recovery action, including: 1) enforcement
information, such as data on PRP liability; 2) the AR, relating to the
selection of the response action; and 3) response activity and cost
documentation.
This section discusses documents relating to the third category.  The region's
Cost Recovery Coordinator (CRC) or other cost recovery contacts prepare
the referral and have primary responsibility for collecting and organizing
cost recovery documentation.
References
OSRE Memorandum, "Guidance on Administrative Response Cost
Settlements under Section  122(h) of CERCLA and Administrative Cashout
Settlements with Peripheral Parties under Section 122(h) of CERCLA and
Attorney General Audiority" (September 30, 1998).
Office of Waste Programs Enforcement (OWPE)/Financial  Management
Division (FMD), "Delegation of Letter Report Responsibilities and New
Guidance" (June 5, 1991).
FMD, "Historic Site-Specific Cost Reports in Superfund Contracts Active
Prior to  October 1, 1985"  (June 26, 1989).

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  12—14   Cost Recovery
12.2.D.1        Types of
            Expenditures
12.2.D.2              EPA
           Indirect Costs
12.2.D.3
Evidence
Office of Administration and Resource Management (OARM), "Superfund
Financial Management and Recordkeeping Guidance for Federal Agencies"
(January 1989).
FMD, "State Superfund Financial Management and Recordkeeping
Guidance" (August 1987).
OSWER Directive 9832.0-1 A, "Procedures for Documenting Costs in
CERCLA Section 107 Actions" (January 1985).
OSWER Directive 9832.1, "Cost Recovery Actions Under the
Comprehensive Environmental Response, Compensation, and Liability Act
of 1980 (CERCLA)" (August 1983).

The government's costs of the response action can be broadly divided
between direct and indirect expenditures.  Direct expenditures are those tliat
are attributable solely to the site in question. These include contractor, EPA,
and other federal and state agency staff time, travel, and equipment directly
associated widi the site.  Indirect costs are costs that support more than one
response action (e.g., office space, electricity, and supplies for contract and
EPA personnel who work on die response actions). Total cost is the sum of
"direct" and "indirect" costs. Both types of costs are recoverable under
CERCLA.

Indirect costs, briefly described above, do not relate specifically to individual
sites. For this reason, these costs are "allocated" to sites using accounting
formulas. The process is similar to indirect cost accounting in private-sector
firms, and results in a site-specific allocation  of indirect costs, which are
then incorporated in  the cost package.
References
OSWER Directive 9832.5, "Policy on Recovering Indirect Costs in
CERCLA Section 107 Cost Recovery Actions" (June 27, 1986).
Office of the Comptroller (OC), Superfund Indirect Cost Manual for Cost
Recovery Purposes (March 1986).

The costs of response activities recoverable under section 107 of CERCLA
are reflected in a variety of financial records and documents. There are two
general types of information tliat  will be available to prove die Agency's
costs. Work performed documents prove that the response activities were
actually undertaken (i.e., authorized and completed). Cost evidence
documents prove diat costs were actually incurred and paid for by the
government.
RPMs/OSCs often will provide from their files:

   •   Authorization for die scope and performance of work by die agency
      or the contractor at die site, including documents such as action
      memoranda, work plans, work assignments, Technical Directive
      Documents (TDDs), SOWs, and delivery orders.

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                                                                                               12-15
                                  •    Evidence of contractor performance of work at the site and docu-
                                      mentation of completion of that work, including documents such as
                                      Form 1955 for removals, monthly technical and financial status
                                      reports for Remedial Engineering Management (REM) contracts,
                                      and TDD or work assignment completion forms.
                               The Case Team should also ensure that financial management offices have
                               provided the following types of documents:

                                  •    Timesheets/timecards and payroll expenses.
                                  •    Travel vouchers and receipts.
                                  •    Treasury schedules.
                                  •    Contracts/Letters of agreement.
                                  •    Purchase orders and receipts.
                                  •    Paid processed invoices and vouchers.
                               Properly documented costs are generally admissible as evidence. Good
                               documentation lays the foundation for successful settlement negotiations
                               and litigation. Therefore, RPMs/OSCs should work closely with regional
                               counsel to produce admissible evidence documenting the Agency's costs.
                               Cost documentation  submitted by contractors frequently includes
                               Confidential Business Information (CBI). In order to recover cleanup costs
                               more efficiently and expeditiously, EPA may release Superfund response
                               contractor CBI, with the contractor's consent, to PRPs in pre-litigation
                               negotiations and during litigation. Such releases are made pursuant to a
                               contractual agreement in pre-litigation negotiations or under a stipulation
                               and protective order during litigation to ensure that distribution and use of
                               the information is limited. The Agency also may release response contractor
                               CBI, with the contractor's consent, to other EPA contractors or authorized
                               representatives of the United States.
                               Reference
                               "Disclosure of Confidential Data to Authorized Representatives of the
                               United States and Potentially Responsible Parties," Interim Rule, 58
                               Fed.Reg. 458-465 (January 5, 1993).

12.2.D.4             Cost    To prevent the courts from being burdened with unwieldy documentation,
              Summaries    Rule 1006 of the Federal Rules of Evidence allows voluminous
                               documentation to be condensed into summaries. These summaries must
                               accurately characterize the underlying documents. In order to introduce a
                               summary in court under Rule 1006, EPA must provide all of the underlying
                               documents to the other parties at a reasonable time and also may be
                               required to produce the documents in court. CBI and Privacy Act
                               information must be  redacted (edited to delete confidential information).
                               The RPM and OSC play an important role in the process of cost recovery
                               by ensuring that documentation of the activities is provided, and that the
                               cost summaries are complete and accurate. It is essential that the cost

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12—16   Cost Recovery
                              summary provide a complete, accurate, and easily understandable summary
                              of the work performed for each cost claimed. In addition, when multiple
                              activities (such as an RI/FS, a removal, and an RA) have been carried out by
                              the same contractor or state or federal agency, the RPM/OSC is the best
                              EPA employee to ensure that the summaries accurately reflect these
                              activities. The summaries also must include the actual dates of services
                              provided by the contractor. The RPM/OSC should ensure that the dates
                              are accurate because they are used to calculate SOLs and determine
                              authorization issues under contracts. The RPM/OSC should always check
                              the cost package to ensure that all costs have been included. Much of the
                              information in the cost package comes from the IFMS, and there are a
                              number of costs diat are not reflected in that system. The RPM/OSC
                              should be careful to see that costs of other agencies such as state agencies,
                              ATSDR, DOJ, USCG, Federal Emergency Management Agency (FEMA),
                              and Health and Human Services are included.  In addition, the summary
                              must be checked to see that all costs that PRPs have satisfied or paid are
                              reflected in the cost summary, including settlements with other parties, and
                              costs disallowed after audit resolution or paid by the state or a private party.
                              The RPM also will need to ensure that calculations of the 10 percent state
                              cost share for reimbursable expenses is  included and accurately reflected in
                              the summary.
                              In cost recovery actions, the summaries must include a description of the
                              response activities, expenditure types, and actual costs, and must indicate
                              which Agency performed the activity.  Cost summaries, which are primarily
                              the responsibility of the regional financial office, should be arranged
                              according to die following format:

                                 •  Agency site-specific payroll costs.
                                 •  Agency site-specific travel expenditures.
                                 •  IAG expenditures.
                                 •  Cooperative Agreement (CA) expenditures.
                                 •  Site-specific contracts widi contractors.
                                 •  Non-site-specific contracts with contractors.
                                 •  TAG expenditures.
                                 •  Other federal costs.
                              The above information should be summarized in a brief.
                              Because cost summaries are developed  early in the case development
                              process, they will need to be updated regularly as the various response action
                              phases are initiated and completed. RPMs/OSCs should obtain updated
                              cost summaries at critical stages of the  response and litigation processes, and
                              periodically (e.g., annually) during periods of substantial expenditure.
                              Regular updating ensures diat the most recent cost data are available for
                              management  review.

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                                                                                                12-17
12.2.E Documentation
             Procedures
Cost summaries should be reviewed for completeness, to ensure that:

   •   They do not demand payment for amounts which have been previ-
      ously recovered (e.g., bankruptcy proceeds, settlements).
   •   They do include costs incurred by agencies with transfer allocations,
      whose costs are not included in the IFMS (DOJ, FEMA, ATSDR,
      USAGE).
   •   State matching funds are reflected in the summary so that it is
      apparent what costs must be matched and so there is no demand in
      excess of the 90 percent of such costs that the United States is
      entitled to claim.
Exhibit 12-2 outlines the type of material that should be included in cost
summary reports.

This section describes the procedures that are followed in assembling work
performed and cost documentation for a cost recovery case. This process
became a regional responsibility in January 1990, and requires joint activity
by the regional CRC and Financial Management Officer (FMO). Cost
recovery and financial management staff provide support and training in use
of the Superfund Cost Organization and Recovery Enhancement System
(SCORES) and training in overall cost recovery procedures.  Headquarters
FMD also provides site-specific payroll and travel documentation.
The description provided here is a general outline of required inclusions in
the cost documentation package  and the procedures for assembling the
package.
The regions assemble information for the following areas of costs:

   •   Agency site-specific regional payroll costs.
   •   Agency site-specific regional travel expenses.
   •   Other site-specific regional charges.
   •   Site-specific CAs.
   •   Non-site-specific CAs.
   •   Site-specific indirect costs.
   •   Site-specific Field Investigation Team costs.
   •   Site-specific Technical Assistance  Team costs.
   •   Site-specific Superfund Technical Assessment  and Response Team
      costs.
   •   Site-specific Response Action Contract costs.
   •   Site-specific Technical Enforcement Support costs.
   •   Site-specific Enforcement Support Services costs.
   •   Site-specific Emergency Response Cleanup Services costs.

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 12—18   Cost Recovery
12-2  Cost Summary Format
        Payroll
      Summary
         by
      Employee
Employee name
Dates worked on case
Hours worked (by pay period)
Salary amount (by pay period)
Total payroll costs
       Payroll
     Summary by
       Agency
Employee names
Hours worked on case
Salary amount
     Travel Summary
      by Employee
Employee name
Travel authorization number
Voucher amount
Treasury schedule number
  and date
    Agency Travel
      Summary
Employee name
Travel authorization number
Voucher amount
Treasury schedule number
  and date
     Interagency
     Agreements
Agency name
Interagency number
Description of tasks performed
Documentation of costs
Voucher numbers and amounts
Account information
Dates of agency service
Interagency agreement
  voucher amount

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12-2 (cont.) Cost Summary Format
                                                                                   12-19
     Cooperative
     Agreements
State name
Cooperative Agreement
  grant number
Summary of work
Documentation of costs
Account information
Voucher information
Treasury schedule
  information
  Private Site-Specific
      Contracts
Contractor name
Contractor number
Project Officer or
  Contracting Officer
Dates of work
Description of tasks performed
Total costs
Cost Documentation
Voucher numbers and amounts
Treasury schedules
  numbers and dates
     Site-Specific/
   Non-Site-Specific
      Contracts
Contractor name
Contractor number
Project Officer or
  Contracting Officer
Dates of work
Description of tasks performed
Total costs
Cost Documentation
Voucher numbers and amounts
Treasury schedules
  numbers and dates
  Narrative Summary
  Statement of Facts
Delineation of costs in a
narrative summary- Format
should be brief, numbered
sentences stating the
amount of costs incurred
by Agency for expenditures
and contracts.

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 12—20   Cost Recovery
12.2.F
  Judicial
       Cost
Recovery
   •   Site-specific Emergency and Rapid Response Services costs.
   •   Site-specific Contract Laboratory Program costs.
   •   Site-specific REM costs.
   •   Site-specific Environmental Services Assistance Team costs.
   •   Site-specific Alternative Remedial Contracting Strategy costs.
   •   Site-specific Emergency Response Unit costs.
   •   Site-specific National Enforcement Investigation Center costs.
   •   TAG costs.
   •   IAG costs.
   •   Site-specific Headquarters payroll costs.
   •   Site-specific Headquarters travel expenditures.
   •   Miscellaneous costs related to the Agency's response activity.
   •   Costs of overflights and aerial photography by the Environmental
      Photographic Interpretation Center and analyses of the photographs
      provided by the Environmental Monitoring Systems Laboratory.
After these costs are collected and categorized, they must be reconciled using
information in SCORES. This system is usually maintained and operated
by the FMO in the region.  The SCORES system downloads information
on all site-specific accounts from the IFMS and produces cost summaries
that can be included in the cost package for the case. Once prepared, the
original cost package should be stored in the region. Another copy should
be sent to the regional counsel, who will use it in the referral package.
If there are any DOJ costs associated with the case, they should be included
in the cost recovery action.  DOJ is responsible for documenting their own
costs and adding them to the amount in the referral from EPA.  Although
DOJ has responsibility for documenting its costs, the CRC, FMO, or RPM
may be required to testify in the cost recovery case.  Hence, all parties
should be familiar with the process by which documents are prepared.
Reference
Office of Compliance (OC)/OSRE, Superfund Cost Recovery Procedures
Manual (September 1994).

When EPA and the PRPs do not reach a negotiated settlement for
reimbursement of EPA's response costs, EPA usually sues the PRPs to
recover those costs. This action, taken under section 107 of CERCLA, is
known as a judicial cost recovery action. A judicial cost recovery action
requires the involvement of the RPM/OSC, regional counsel, and DOJ
attorneys. The action is initiated when EPA prepares a referral package for
DOJ. The referral package presents the evidence in the case and explains
what EPA is seeking to recover.

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                                                                                                 12-21
12.2.F.I          Referral    To assist DOJ in preparing for cost recovery litigation, OSCs/RPMs should
                  Package    work with regional counsel to prepare a section 107 referral package.  At a
                                minimum, the package should include die following information:

                                  •   Description of the response actions and their status.
                                  •   AR Index and Action Memorandum/ROD.
                                  •   PRP liability analysis.
                                  •   Anticipated defenses.
                                  •   Activity and cost documentation.
                                  •   Natural resource damages claims (summarizes communications widi
                                      trustee).
                                  •   Enforcement history.
                                  •   Relief sought.
                                  •   Litigation/Settlement strategy.
                                Generally, die following remain in regional files:

                                  •   AR.
                                  •   PRP search backup documents (e.g., section 104(e) responses).
                                  •   Cost summary documentation.
                                  •   Work performed documentation.
                                The cost documentation package must be complete before die case is
                                referred  to DOJ, except where diere are SOL concerns.  All documents in
                                die package should be indexed. Proper indexing enables die case
                                management team to access pertinent evidence from voluminous cost
                                recovery case files.  If the region does not include copies of supporting
                                documents in die referral package, die documents must be identified in a
                                specific inventory indicating die identity, location, and custodian of die
                                documents. A general assertion diat documentation is "available" will not
                                suffice.

12.2.F.2       Litigation    RPMs and OSCs, widi assistance from regional counsel and die CI, perform
                  Support    important duties in supporting cost recovery litigation.  They:

                                  •   Ensure diat the PRP search provides sound evidence of liability and,
                                      for generators, waste-in information.
                                  •   Ensure diat die AR regarding die selection  of remedy is compiled.
                                  •   Ensure diat all activities and costs are documented.
                                  •   Provide die technical lead for die case and act as witnesses to die
                                      technical performance of die work at die site for which costs were
                                      incurred.
                                  •   Assist in case preparation and at trial in establishing discrete activities
                                      and associated costs that were related to each phase of die work at die
                                      site (e.g., RI/FS, various removals, work on separate OUs).

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 12—22   Cost Recovery
12.2.F.3
    Litigation
Management
          Plan
  •   Identify potential fact witnesses who have personal knowledge of
      potentially relevant information, such as the PRP s liability, by
      providing the following information: present place of employment;
      home and business phone numbers; substance of testimony (brief
      statement); and whether the witness's statement is on file.
  •   Identify potential expert witnesses (e.g., hydrogeologists and soil
      scientists) to participate in negotiations, if necessary.
  •   Identify potential adverse witnesses (either fact or expert) and
      indicate the substance of expected testimony, if known.
In addition, RPMs and OSCs may be asked to assist regional counsel in
preparing affidavits to substantiate die Agency's response costs, or in
preparing pre-trial motions, such as motions for summary judgment and
motions to dismiss.

A litigation management plan should be developed by team members. This
plan should be prepared in close coordination with DOJ. A list of the
contents is shown in Exhibit 12-3.
                              12-3   Suggested Contents of a Site Litigation
                              Management Plan
                                 1. Litigation Schedule and Staffing Requirements
                                 A. Provide a schedule for completing litigation activities
                                    (including activities, staff, and contractor support).
                                 B. Summarize the specific team responsibilities for managing
                                    and performing  litigation, along with dates for starts and
                                    completions.
                                 C. Assess enforcement progress to date in the litigation plan.
                                 2. Objectives of Litigation
                                 A. Discuss litigation objectives set by the site team and the
                                    reasons for their selection.
                                 B. Identify the potential alternatives (e.g., return to
                                    negotiations posture or different legal options to achieve
                                    litigation objectives).
                                 3. Litigation Strategy
                                 A. Identify the initial and bottom-line litigation points in the
                                    plan and reasons for the positions.
                             As a practical matter, most cases do not go to trial and most cost recovery
                             cases will be settled out of court. The primary function of both the RPM
                             and OSC in litigation support is to work closely widi regional counsel and
                             DOJ attorneys.

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                                                                                             12-23
12.2.G   DeMinimis
          Settlements
12.2.G.1
  Necessary
Information
References
Office of Enforcement Counsel (OEC) Memorandum, "Cost Recovery
Referrals" (September 6, 1996).
OSWER Directive 9832.0, "Partial List of Documents Needed to Support
Cost Recovery" (September 6,  1996).
OWPE Memorandum, "Issuance of Interim Rule: 'Disclosure of
Confidential Data to Authorized Representatives of the United States and
Potentially Responsible Parties,' 58 Fed. Reg. 458-465, January 5, 1993 (40
CFR Pan 2)" (January 8, 1993).
OSWER Directive 9835.11-1, "Model Litigation Report for CERCLA
Sections 106 and 107 and RCRA Section 7003" (June 21, 1989).
OSWER Directive 9891.1 -1 a, "Procedures for Transmittal of CERCLA and
RCRA Civil Judicial Enforcement Case Packages to Headquarters" (June 12,
1989).
OSWER Directive 9832.6, "Small Cost Recovery Referrals" (July 12, 1985).
OSWER Directive 9832.0, "Cost Recovery Referrals" (August 3, 1983).

In addition to settlements  during RD/RA negotiations, de minimis
settlements are tools that may be used for eliminating the smaller
contributors from the cost recovery process. Section 122(g) of CERCLA
provides for settlement "...whenever practicable and in the public interest...if
such a settlement...involves only a minor portion of the response costs."
There are two situations in which the Agency may agree to a de minimis
settlement:

   •   The amount and toxicity of the hazardous substances contributed by
      the PRP are minimal compared to other hazardous substances at die
      facility.
   •   The PRP is an owner who did not contribute to die release or threat
      of release through any action or omission, did not conduct or permit
      the management of hazardous substances on the property, or pur-
      chase the property with knowledge of its use for generation, transpor-
      tation, treatment, storage, or disposal.

The PRP search process is critical to determining whether a PRP is a de
minimis contributor. The  search will provide the RPM with information
regarding the identity, waste contributions, and financial viability of the
PRPs. Regional management will determine whether a PRP is a de minimis
contributor through an analysis that includes each PRPs waste contribution,
whether the setdement is "practicable and in the public interest," and
whether all  past costs are known. If the Agency expects to incur future
costs,  this will affect the scope of the settlement and covenant not to sue.
It is no longer necessary to prepare a waste-in list or volumetric ranking
before considering a party's eligibility for de minimis setdement;  the region
need only assess the individual PRP s waste contribution relative to the total
volume of waste at the site.

-------
  12—24   Cost Recovery
12.2.G.2
         Release
  from  Liability
and Reopeners
De minimis settlements may be entered as either:

   •   AOCs.
   •   Judicial CDs.
The regions may issue AOCs when total response costs of the United States
at the site are $500,000 or less.  Under section 122(g)(4) of CERCLA and
the EPA delegations, however, when total costs exceed $500,000 (excluding
interest) and the settlement is embodied in an AOC, the RA must obtain
the prior written approval of the Assistant Attorney General for the
Environment and Natural Resources Division of DOJ, and consult with
OSWER and OSRE.
All de minimis settlements must comply with the public comment
procedures stipulated in section 122(i) of CERCLA.
"De micro mis" settlements are a subset of de minimis settlements available
to parties who contributed minuscule amounts of waste to a site; owners
and operators are not eligible. The presumptive cutoff points for "de
micromis" settlement are 0.002  percent of hazardous waste or 0.2 percent of
Municipal Solid Waste at a site.  If the region determines that absolute
volumes are appropriate to use at a particular site, the presumptive cutoff
points are 110 gallons or 200 pounds.
The Agency enters into "de micromis" settlements only where "de
micromis" parties have been sued by other PRPs, face a concrete threat of
suit, or convince the Agency that there is a reasonable expectation that they
will face contribution litigation. "De micromis" settlements may be entered
into in exchange for certain benefits other than the payment of money;
accordingly, the Agency generally will not seek to recover any past costs
from "de micromis" parties.

The Agency may grant de minimis settlors a covenant not to sue. EPA's
covenant not to sue is given in exchange for the PRP's agreement to pay for
part of the response costs plus a premium. This agreement means that EPA
will not pursue the PRPs for future liability for costs incurred by the
Agency. Such agreements normally involve liability under section 106/107
of CERCLA. The scope of the covenant will vary depending on site-specific
factors.  The Agency usually agrees to such a release only if the  terms of the
covenant include reopeners.  Reopeners protect the Agency against cost
overruns and the risk of paying for any further response action  at the site.
In appropriate cases, a settlement may not contain a remedy cost reopener;
typically, the premiums in these settlements are higher than in settlements
that contain remedy cost reopeners.
References
OSRE Memorandum, "Guidance on Administrative Response  Cost
Settlements under Section 122(h)  of CERCLA and Administrative Cashout
Settlements with Peripheral Parties under Section 122(h) of CERCLA and
Attorney General Authority" (September 30,  1998).
OSRE Fact Sheet, "Revised De Micromis Guidance" (June 4, 1996).

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                                                                                         12-25
12.2.H Administrative
          Settlements
OSRE/Department of Justice (DOJ) Memorandum, "Revised Guidance on
CERCLA Settlements widi De Micromis Waste Contributors" (June 3,
1996).
OSRE Memorandum, "Issuance of Revised Model De Minimis Contributor
Consent Decree and Administrative Order on Consent" (September 29,
1995).
OSRE Memorandum, "Standardizing the De Minimis Premium" (July 7,
1995).
OWPE/Office of Enforcement (OE) Memorandum, "Communications
Strategy for Settlements with Small Volume Waste Contributors"
(September 30, 1993).
OSWER Directive 9834.7-Id, "Streamlined Approach for Settlements with
De Minimis Waste Contributors under CERCLA Section 122(g)(l)(A)"
(July 30, 1993).
OSWER Directive 9834.7-Ic, "Methodology for Early De Minimis Waste
Contributor Settlements Under CERCLA 122(g)(l)(A)" Qune 2, 1992).
OSWER Directive 9834.7-lb, "Methodologies for Implementation of
CERCLA Section 122(g)(l)(A) De Minimis Waste Contributor
Settlements" (December 20, 1989).
OSWER Directive 9835.9, "Guidance on Landowner Liability under
Section 107(a)(l) of CERCLA, De Miminis Settlements under Section
122(g)(l) and Settlements with Prospective Purchasers of Contaminated
Property" (June 6, 1989).
OSWER Directive 9834.7, "Interim Guidance on Settlements with De
Minimis Waste Contributors under Section 122(g) of SARA" (June 1987).

Section 122(h)(l) of CERCLA expressly authorizes the Agency to setde its
cost recovery claims under section 107 if the case has not been referred to
DOJ. However, when die total response costs of the United States at a
facility exceed $500,000 (excluding interest), the RA must obtain the
written approval of DOJ and consult widi OSWER and OSRE.
References
OSRE Memorandum, "Guidance on Administrative Response Cost
Settlements under Section 122(h) of CERCLA and Administrative Cashout
Settlements with Peripheral Panics under Section 122(h) of CERCLA and
Attorney General Authority" (September 30, 1998).
OSRE Memorandum, "Issue of'Model CERCLA Section 107 Consent
Decree for Recovery of Past Response Costs' and 'Model CERCLA  Section
122(h)(l) Agreement for Recovery of Past Response Costs'" (September 29,
1995).
OSWER Directive 9012.10-A, "Revision of CERCLA Civil Judicial
Settlement Authorities Under Delegations 14-13-B and 14-14-E" (June 17,
1988).

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  12—26   Cost Recovery
12.2.1       Enforcing
           Settlements
 12.2.J   Arbitration
OSWER Directive 9835.0, "Interim CERCLA Settlement Policy"
(December 5, 1984).

If a settling PRP fails to comply with the terms of a settlement, the matter
should be referred to DOJ for civil action.  Case referrals should occur
within six months of the default date.  CERCLA section 122(h)(3)
authorizes DOJ to bring a civil  action to enforce the terms of the
agreement. These terms are not subject to judicial review. DOJ may
petition the court to impose the civil penalties authorized by CERCLA
section 109.

Arbitration is a form of ADR that provides a forum for resolution of cost
recovery claims without traditional litigation. The Administrative Dispute
Resolution Act (5 U.S.C. 573 et seq.) (ADR Act) and section 122(h) of
CERCLA specifically authorize the use of arbitration to resolve cost recovery
claims.
Arbitration offers the Agency an expeditious method of resolving cost
recovery claims without the expenditure of enforcement resources required
for traditional litigation and lengthy enforcement negotiations.
Exhibit 12-4 shows a flowchart of the procedures.
In the cost recovery context, arbitration is a hearing conducted by a neutral
third party, usually with substantive expertise, who hears facts and
arguments presented by each party and renders an opinion.  The scope of
the neutral party's decision and hearing procedures is at the sole discretion
of the parties to the arbitration. Arbitrations are more streamlined than
court litigation in terms of procedure and evidentiary requirements.
Entry into arbitration for resolution of a cost recovery claim is voluntary
and requires the consent of all involved parties. Regulations promulgated
pursuant to section 122(h), 40 CFR Part 304, 54 Federal Register 23174
(May 30, 1989), set procedures for arbitration in cases where costs at a
facility do not exceed $500,000 (excluding interest). In section 122(h)
arbitrations, the decision of the neutral party, which is filed in the Federal
Register for public comment, is binding on the parties except in cases of
arbitrator misconduct.
In other cases, hearing procedures and the binding nature of the neutral
party's decision is at the discretion of the parties. The ADR Act establishes
the permissible scope of arbitration decisions in cases involving federal
claims and actions.
Agency expenditures in support of the use of arbitration and other forms of
ADR (i.e., mediation, convening, allocation, and fact-finding) are
recoverable costs, reimbursement of which may be obtained through
settlement or legal action.
References
OSRE Memorandum, "Use of Alternative Dispute Resolution in
Enforcement Actions" (May 1995)

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Referral Phase
Hearing Phase 30 days
Decision Phase     45 days
EPA and PRPs
Regional Administrator and one or more PRPs
voluntarily submit a request for arbitration of
one or more issues to the American Association
of Arbitrators (AAAI.
1
10 days
Arbitrator
The AAA simultaneously submits the names of
10 persons from the Panel of Environmental
Arbitrators to all parties for their consideration.
>
10days
t
EPA and PRPs
Parties concur on an arbitrator. If the parties
cannot concur, the AAA will appoint an arbitrator
within 30 days of the date the joint request for
arbitration is filed.
1
7 days
AAA
AAA notifies parties of Arbitrator's identity and
date of appointment.
>
5 days
r
Arbitrator
Appointed Arbitrator files signed acceptance
of case and a statement disclosing any
circumstances that could bias hearing of the
case.





EPA
EPA submits its written statement for cost
recovery and supporting documents to the
Arbitrator and PRPs.
>
30 days
PRPs
PRPs submit their answers to EPA's statement
and their documentary evidence.
1
10 days
EPA
EPA may file response to PRPs answer with the
Arbitrator and all parties.
>
r 10 days
PRP
PRPs may file reply with Arbitrator and all
parties.
>
within 120 days of
appointment of Arbitrator
r
EPA and PRPs
PRE-HEARING CONFERENCE: All parties
exchange witness lists, remaining exhibits, and
documentation. Parties prepare a statement of
disputed issues and a stipulation of undisputed
facts.
>
45 days
Arbitrator must notify parties
- at least 20 days in advance
EPA and PRPs
ARBITRATION HEARING: Must be completed
within 14 days, unless extended for good cause.


                                                                                                                      Arbitrator
                                                                                                       ARBITRATION DECISION: statement resolving
                                                                                                       the issues presented. The decision is binding.
                                                                                                             Publish in Federal Register
                                                                                                       PUBLIC COMMENT PERIOD:
                                                                                                       Public must have opportunity to comment for
                                                                                                       at least 30 days.
                                                                                                             10 days
                                                                                                                        PRP
                                                                                                       PRP COMMENT PERIOD: PRPs may respond to
                                                                                                       public comments.
                                                                                                             30 days
                                                                                                                        EPA
                                                                                                       Responsiveness Summary: EPA must issue
                                                                                                       responses to public comments and summarize
                                                                                                      c  S
                                                                                                      03  0)
                                                                                                      2.  -•
                                                                                                      v>
                                                                                                      (D  O
                                                                                                          an
                                                                                                      _. 

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 12—28    Cost Recovery
12.2.K
   Mixed
Funding
12.2.L
 Orphan
  Shares
"Arbitration Procedures for Small Superfund Cost Recovery Claims," 54
Fed. Reg. 23174 (May 30, 1989).
Office of the Administrator, "Guidance on the Use of Alternative Dispute
Resolution in EPA Enforcement Cases" (August 1987).

Section 122(b) of CERCLA authorizes the Agency to enter into mixed
funding agreements. Under the terms of a mixed funding agreement, the
Agency shares die response costs with settling PRPs.  RPMs should note
diat when the Agency enters into a mixed funding agreement involving
eidier a preaudiorizauon or a cashout widi certain PRPs at a site, EPA must
make  a reasonable effort to recover die amount of such reimbursement from
non-settling PRPs under a separate cost recovery action. A more complete
discussion of mixed funding can be found in Chapter 8, RD/RA
Negotiations/Settlement.

The "orphan share" refers to die share attributable to identifiable insolvent
or defunct parties at a site. Under principles of joint and several liability,
diis share is allocable to viable PRPs.  However, in the interests of fairness
and encouraging setdement, die Agency will consider compensating setding
parties for the orphan share dirough forgiveness of past costs and projected
oversight costs, subject to die amount of funding available for the
Superfund program. While orphan share compensation is available for
work settlements, the Agency, in its discretion, may also offer compensation
to parties in cost recovery setdement  negotiations.
Orphan share  compensation may not exceed die lesser of:  1) the orphan
share; 2) 25 percent of ROD-projected remedy or NTC removal costs; or 3)
die sum of all  unreimbursed past costs and projected costs of overseeing
design and implementation of die ROD-selected remedy or NTC removal
action. When projected remedial or NTC removal action costs exceed $30
million, any setdement including orphan share compensation requires pre-
approval from Headquarters. The Agency may decide to compensate less
dian the maximum allowable amount based on consideration of equitable
factors, including the size of die orphan share and die settling PRPs'
cooperation widi die Agency and fairness to other PRPs.
According to EPA's addendum to die interim CERCLA setdement policy,
except in  extraordinary cases, a party who enters into a consent agreement
solely to setde liability for past costs should not receive any greater
compromise based on orphan  share considerations dian a party who enters
into a consent agreement to perform  cleanup work.
References
OECA Memorandum, "Addendum to die 'Interim Settlement Policy'
Issued on December 5, 1984" (September 30, 1997).
OSRE Fact Sheet, "Orphan Share Reform" (June 4, 1996).
OECA Memorandum, "Interim Guidance on Orphan Share Compensation
for Settlors of Remedial Design/Remedial Action and Non-Time-Critical
Removals" (June 3,  1996).

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                                                                                               12-29
 12.2.M  Bankruptcy
                 Actions
12.2.M.1
   Statutory
Background
12.2.M.2
     Proof of
       Claim
Some PRPs may file for bankruptcy before reimbursing the government
for its response costs. Although' the regional attorney will handle most
issues related to the PRP's bankruptcy petition, the RPM should have a
working understanding of the process. The following discussion should
help RPMs become familiar with pertinent concepts of bankruptcy law.

A PRP may file a petition for bankruptcy under either Chapter 7
(liquidation) or Chapters 11 and 13 (reorganization) of the Bankruptcy
Code.  Bankruptcy proceedings under Chapter 7 involve the collection and
distribution of all the debtor's non-exempt property.
By contrast, Chapters 11 and 13 allow the debtor to reorganize and
rehabilitate radier than liquidate. Under Chapters 11 and 13, the creditors
look to the future earnings of the debtor to satisfy claims.
There are two bankruptcy issues that the RPM should understand: proof of
claim and priorities in bankruptcy.

Under the Bankruptcy Code, a debtor is discharged from his/her debts.
This statutory provision releases a debtor from debts incurred before the
debtor filed his/her petition for bankruptcy (previous debts).  To contest the
discharge of their claim against the debtor, creditors must establish proof
that they had a valid claim against die debtor's estate.  Creditors establish
this claim by filing a proof of claim in the bankruptcy court. The deadlines
for filing a proof of claim are as follows:

   •   Under Chapter 7 of die Bankruptcy Code: 90 days from die first
      meeting of creditors.
   •   Under Chapters  11 and 13 of the Bankruptcy Code: the bar notice
      fixes the deadline, except that governmental units have at least 180
      days to  file a proof of claim.
The Agency has established a systematic procedure for receiving and
distributing bankruptcy information.  This procedure ensures that the
Agency files its proof of claim widiin die applicable statutory deadlines.
EPA has designated die Office of Enforcement and Compliance Assurance's
(OECA's) Regional Support Division (RSD) as a central contact in
Headquarters to receive all preliminary bankruptcy information.  Each
regional counsel's office, as well as RSD, has designated bankruptcy
contacts. RSD, in cooperation widi die regional bankruptcy contacts, will
determine whedier a particular multi-region bankruptcy matter should be
handled as OECA-lead  or region-lead.
The Bankruptcy Code requires a debtor to provide notice to all creditors,
including EPA. Regional counsel takes die lead role in reviewing die
debtors notice and determining whedier a proof of claim should be referred
to DOJ for filing.
The following factors should be considered in evaluating whedier  to file a
proof of claim in a bankruptcy case:

   •   Amount and priority of EPA's claim.

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  12—30   Cost Recovery
12.2.M.3 Environmental
                Claims as
                 Priorities
12.2.N
Ability
to Pay
   •   Assets and liabilities of the bankruptcy estate.
   •   Impact on Agency resources.
   •   Fairness to other liable parties.
In addition, the decision to file may be influenced by time constraints and
lack of information.
If the PRP has actually filed a petition for bankruptcy, DOJ and regional
counsel will have the responsibility of obtaining die necessary bankruptcy
documents to establish the Agency's proof of claim.  In most cases, the RPM
will have a limited role in die bankruptcy proceedings.

Typically, a bankrupt party's estate does not have sufficient assets to satisfy
all of the creditors' claims. However, if the Agency's claim is treated as a
priority, the claim must be fully satisfied before the other creditors receive
any money.
EPA's cost recovery actions can be treated as a priority if the Agency can
establish  that the costs were administrative costs, or that a federal lien has
been filed against the PRP's property.  For example, administrative costs are
incurred when EPA responds to a release on the debtor's property after the
bankruptcy petition has been filed. A lien for cleanup costs is created under
section 107(1) of CERCLA, but it must be created before the debtor files for
bankruptcy. The Bankruptcy Code prohibits any act to create, perfect, or
enforce a lien against property of the bankruptcy estate once the debtor
files. The lien continues to be enforced against the property until  either the
liability is fully satisfied or the claim becomes unenforceable by operation of
the SOL.
Reference
OECA Memorandum, "Guidance on EPA Participation in Bankruptcy
Cases" (September 30, 1997).
National Bankruptcy Lead Region Work Group, "A Bankruptcy Primer for
the Regional Attorney" (February 1994).
OWPE/OE Memorandum, "Supplemental Guidance on  Federal Superfund
Liens" (July 29, 1993).
OSWER Directive 9832.12, "Guidance on Federal Superfund Liens"
(September 22, 1987).

Where appropriate, EPA may enter into settlements that reflect businesses'
or individuals' limited ability to pay for cleanup work or recovery of
response  costs.  ATP settlement is reserved for business PRPs who
demonstrate that the amount sought by the government is likely to put
them out of business or otherwise jeopardize  their viability, and for both
business and individual PRPs who demonstrate that payment of such an
amount is likely to create an undue financial  hardship.  An undue financial
hardship  occurs when payment of the amount sought by the government is
likely to render the  PRP unable to pay for ordinary and necessary business
expenses and/or ordinary and necessary living expenses.

-------
                                                               12-31
The Agency evaluates requests for ATP settlement in two phases, a balance
sheet phase and an income and cash-flow statement phase. In the balance
sheet phase, the Case Team, consisting of EPA enforcement personnel and,
where appropriate, DOJ staff, determines whether the ATP candidate can
afford to make a single, up-front payment sufficient to pay die total amount
sought by die Agency. If not, die Case Team analyzes  die PRP's income and
cash-flow statements to determine whedier die PRP can make additional
payments over time. These analyses establish income available for die
settlement and enable die Agency to estimate an ATP setdement amount.
EPA employs  a variety of computer models to assist widi ATP analysis, and
plans to release additional computer models and develop manual financial
screening protocols in die future.
Aldiough an ATP setdement is based largely on die financial condition of
die ATP candidate, odier conditions should also be satisfied, including die
folio-wing:

   •   The settling party has met its burden of demonstrating that die
      payment of die full amount sought by EPA is likely to create an
      undue  financial hardship.
   •   The setdement should not release die ATP candidate from odier site-
      related responsibilities.
   •   The ATP candidate must request die ATP setdement.
   •   An ATP analysis must consider die entire financial position  of die
      ATP candidate.
   •   An ATP setdement is entered on an individual basis with each person
      as defined in CERCLA.
   •   The ATP setdement is in addition to expenditures diat are recover-
      able from odier sources.
   •   The ATP setdement should seek to resolve all of the ATP candidates
      liability for response costs at die site.
References
OSRE Memorandum, "Guidance on Administrative Response Cost
Settlements under Section 122(h) of CERCLA and Administrative Cashout
Setdements widi Peripheral Parties under Section 122(h) of CERCLA and
Attorney General Audiority" (September 30, 1998).
OSRE Memorandum, "General Policy on Superfund Ability to Pay
Determinations" (September 30, 1997).
OSRE Fact Sheet, "Existing Ability to Pay Guidance and Models" (May
1995).

-------
 12—32   Cost Recovery
12.3
12.3.A       Planning
 12.3.B     Budgeting

 12.3.C     Reporting
        Requirements
Planning and Reporting Requirements

Cost recovery planning should be consistent with the priorities identified in
the cost recovery strategy and should first address sites with pending
expiration of the SOL. In selecting sites for cost recovery action, RPMs
should consult the Cost Recovery Targeting Report.  This report identifies
sites which are eligible for cost recovery action (e.g., remedial starts, com-
pleted removals over $200K) and sorts the sites by an approximate SOL
date. It also shows any planned, on-going or completed cost recovery action
at die site.
When sites have been selected, the sites should be targeted and tracked
through die Superfund Comprehensive Accomplishments Plan (SCAP)
process. Information on the expenditures at die site can be taken from die
cost documentation system maintained by die FMO in your region. The
system  maintained by the FMO (and described in the section on Cost
Documentation) will provide detailed documentation of both direct and
indirect costs.

Funding for cost recovery activity is part of die Enforcement Case Budget.
Data on die Case Budget can be found in CERCLIS 3/WasteLAN.

Cost planning, reporting and tracking relies on CERCLIS 3/WasteLAN, the
national database. The database incorporates information on response and
enforcement actions at sites and is die source for the SOL as well as SCAP
reports.' Current and accurate data are essential for die cost recovery process
to be successful.
All enforcement activities associated with cost recovery (e.g., demand letters,
107 referrals, settlements) and die amounts sought, achieved or written off
in die cost recovery process must be reported in CERCLIS 3/WasteLAN.
RPMs/OSCs must work closely widi IMCs, CRCs, and Headquarters cost
recovery staff to ensure diat data are accurately entered.  Your IMC can
advise you as to die existing procedure(s) in your region.
RPMs/OSCs should ensure that target dates for demand letters,
negotiations, referrals, decisions not to pursue cost recovery, and odier
enforcement activities are recorded in CERCLIS 3/WasteLAN. Pre-SARA
settlements should be reviewed to determine if CERCLIS 3/WasteLAN
should  be updated widi information pertaining to die reimbursement of
oversight costs.
Cost recovery actions start with the issuance of a demand letter. This is a
section 122(e) letter issued pursuant to section 107 from EPA to the PRP
requesting diat the PRP reimburse the  Fund for a specific amount
associated with one or more response activities. Demand letters are typically
sent for each separate response action.  Credit for this activity is given on
the date the demand letter is signed by the appropriate EPA official and
recorded in WasteLAN. This is a SCAP reporting measure and is recorded
as the SubAction Demand Letter Issued, or DD.

-------
                                                               12-33
The "Past costs addressed (>$200,000 target" includes cost recovery actions
(at NPL and non-NPL sites) for reimbursement of Trust Fund amounts
greater than or equal to $200,000. This target also captures administrative
cost recovery settlements, section 106/107 or 107 judicial referrals for cost
recovery, settlements for past costs under a CD (with no prior litigation
referral), preparation of DDs or 10-point settlement analysis documents not
to pursue cost recovery, and bankruptcy filings.  It is vital to the
management of the cost recovery program that sites with upcoming SOLs
be addressed prior to the expiration of their SOL. Therefore, regions will
not be allowed to substitute for targeted sites. A matrix of SCAP targets and
measures relevant to cost recovery actions/decisions is presented as
Exhibit 12-5.

12-5  SCAP Targets for Cost Recovery
Activity
Partial Costs Addressed
>$200,000
SCAP
Target
X
Quarterly
Target
X
Annual
Target
X
        SCAP Measures for Cost Recovery
Activity
Demand Letters Issued
Section 106, 106/107, 107
Case Resolution
Total Cost Recovery
Settlements
SCAP
Plan/Report
X
X
X
Quarterly
X
X

Annual
X
X
X
The following are definitions for Cost Recovery-related targets and
measures.

   •   Section 107 or 106/107 Referrals - Credit is given on the date of
      the RA's transmittal letter to OECA or DOJ as recorded in
      WasteLAN.
   •   Settlement under CD (With No Prior Referral) - Credit is given
      on the date of die RA's transmittal letter to Headquarters or DOJ as
      recorded in WasteLAN.
   •   Cashout Settlements - Credit is given on die date of the RA's
      transmittal letter to Headquarters or DOJ or when the RA signs the
      AOC for the cashout. This date must be recorded in WasteLAN.

-------
12—34   Cost Recovery
                                •   DDs Prepared Not to Pursue Cost Recovery Claims - Credit is
                                    given when the document is issued by the regional office and
                                    recorded in WasteLAN.
                                •   Administrative Settlement - Credit is given on the date that the
                                    regional office or DOJ receives payment from the PRPs in direct
                                    response to a demand letter for voluntary cost recovery or the date
                                    the RA signs the AOC for cost recovery. The date must be reported
                                    in WasteLAN.
                                •   Bankruptcy Filing - Credit is given based on the date that the
                                    bankruptcy strategy package is prepared or on the date that the first
                                    creditor committee meeting convenes as reported in WasteLAN.
                                    These are recorded in CERCLIS 3/WasteLAN as the SubActions
                                    Creditors Committee Meeting and Bankruptcy Strategy Package.
                                •   Section 106, 106/107, 107 Case Resolution - Case resolution is
                                    the conclusion of a section 106, 106/107, or  107 judicial action by a
                                    full settlement, a final judgment, a case dismissal, or a case with-
                                    drawal. Credit for case resolution is given when one of the following
                                    occurs:
                                       A CD is entered in court fully addressing the complaint  with all
                                       parties.
                                       The case is withdrawn.
                                       The case is dismissed.
                                       A trial is concluded and a judgment entered fully addressing the
                                       complaint.
                              The case resolution date (activity actual completion date) is one of the
                              following:

                                •   Date the CD is entered.
                                •   Date the case is withdrawn.
                                •   Date the case is dismissed.
                                •   Date the judgment is entered.
                              The case resolution is a SCAP reporting measure.
                              All dates must be entered  into WasteLAN.  Credit for referrals is based on
                              the referral package, not on the number of sites.  Credit will be withdrawn if
                              a case is returned to the region by OECA or DOJ for additional work, but
                              will be reinstated upon re-referral and will be based on the quarter of re-
                              referral.  New WasteLAN  activity codes were developed for reporting debt
                              collection procedures and bankruptcies.
                              For specific coding requirements into CERCLIS 3/WasteLAN, see the
                              SCAP/OIL Quick Reference Coding Guide or your IMC.

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                                                           72-35
References
OSWER Directive 9200.3-14-1D, SuperfundlOil Program Implementation
Manual (updated biennally).
SCAP/OIL Quick Reference Coding Guide.

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13. Community
 Involvement

-------
                                                                        13-i
             Chapter 13  Community Involvement


13.1  Description of Activity	1

      13.1.A  Introduction	1
      13.1.B  Techniques for Effective Community Involvement	1
      13.1.C  Community Involvement Plans	5
      13.1.D  Community Involvement Lead	6
13.2  Procedures and Interactions	7

      13.2.A  Community Involvement Plan	7
             13.2.A.1  Coordination with Enforcement Staff	7
             13.2.A.2  Consistency with Enforcement Actions	7
      13.2.B  Recent Initiatives and Reforms	8
             13.2.B.1  Regional Ombudsmen	8
             13.2.B.2  Environmental Justice Initiatives	8
             13.2.B.3  Community Advisory Groups	8
             13.2.B.4  Technical Assistance Grants	9
             13.2.B.5  Technical Outreach Services for Communities	9
             13.2.B.6  Improved Public Access to Superfund Information	9
             13.2.B.7  Community Involvement Pilot Projects	9
      13.2.C  PRP Involvement	10
             13.2.C.1  Notice to PRPs	10
             13.2.C.2  Negotiations	10
      13.2.D  Community Involvement During Removal Actions	11
      13.2.E  Community Involvement During Remedial Actions	11
             13.2.E.I  Community Involvement Following an RI/FS Order	12
             13.2.E.2  Proposed Plan and Public Comment	12
             13.2.E.3  Public Notice and Comment on Consent Decrees for RD/RAs.... 13
             13.2.E.4  Community Involvement During PRP Remediation	14
      13.2.F  Other Enforcement Actions	14
             13.2.F.1   Injunctive Litigation	14
             13.2.F.2  Cost Recovery	15
      13.2.G  Administrative Record	15
13.3  Planning and Reporting Requirements	17

      13.3.A  Superfund Comprehensive Accomplishments Plan	17
             13.3.A.1  Range of Activities	17
             13.3.A.2  Range of Costs	17
      13.3.B  Case Budget	17
13.4  Potential Problems/Resolutions	18

      13.4.A  Volatile Public Meeting	18
      13.4.B  Lack of Community Interest	18
      13.4.C  PRP Involvement	18
      13.4.D  PRP as Principal Employer	18

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13—H    Community Involvement

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                                                                                             13-1
                Chapter 13   Community Involvement
13.1
13.1.A  Introduction
13.1.B   Techniques
          for Effective
          Community
          Involvement
 Description of Activity

A site-specific and well-planned community involvement effort is an integral
part of every Superfund response. The Superfund community involvement
program promotes two-way communication between members of the
public, including Potentially Responsible Parties (PRPs), and die lead
government agency responsible for die site. Activities are conducted
throughout the planning and implementation of Superfund responses to
encourage communication between government staff and die public.
Exhibit 13-1 illustrates the relationship between community involvement
activities and die Superfund technical process.
Through experience widi the Superfund program, EPA has found that its
decision-making ability is enhanced by actively soliciting comments and
information from the public.  This chapter discusses how community
involvement activities are affected when enforcement actions are initiated.

There are many techniques that can be used in a site-specific community
involvement program.  EPA has found that diere can be no set formulas for
deciding which techniques  to use. Each community is different, and some
community involvement programs may include tribes or multiple
communities. The issues of importance to the public, die level of concern,
die history of public involvement, and die socioeconomic background of die
community vary from site to site.  Community involvement efforts must,
therefore, be  tailored to the distinctive needs of each community.  For
instance, if the community is  not fluent in English,  bilingual fact sheets and
notices may need to be provided. Also, die physical ability of the
community to attend meetings should be evaluated. Efforts must also be
tied to die technical response  schedule and enforcement considerations for
the site. Some general recommendations for working with the community
include die following:

   •   Involve die community early in the process.
   •   Provide more information radier dian less.
   •   Encourage regular meetings in areas of intense community awareness.
Specific techniques for ensuring open and candid communication include
small group or one-on-one meetings and frequent telephone calls. Fact
sheets, public meetings, newsletters, and press releases are also appropriate to
ensure citizen understanding of issues and activities  associated with a site.
When large public meetings are needed, they must be carefully planned to
enhance productive communication.  The timing, benefits, and limitations
of each technique are described in depdi in EPA documents.
Tribes also require special consideration.  Federally recognized tribes are
unique sovereign nations. Section 126(a) of CERCLA authorizes  EPA to
provide a  tribe with "substantially die same treatment" as a state for purposes
of notification regarding hazardous waste sites, consultation on cleanup
actions, access to information, and other provisions.

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   13—2    Community Involvement
13*1   Relationship of Community Involvement Activities
        to the Superfund Technical Process
Technical
Process
 Required
 Communiy
 Involvement
 Activities
                   Conduct
                   Community
                   Interviews
            Inform
            Interested
            Parties of
            Availability
Suggested
Community
Involvement
Activities
Brief Technical
Staff

Telephone
Officials/Citizens
                                  Activities in broken line box
                                  are done concurrently.
                                               Telephone
                                               Officials/
                                               Citizens

                                               Conduct
                                               Meetings with
                                               Community

                                               Prepare
                                               "Kickoff" Fact
                                               Sheet

                                               Develop
                                               Mailing List

                                               Designate
                                               Agency
                                               Contact

                                               Conduct
                                               Workshops

                                               Remind
                                               Community of
                                               TAG Option As
                                               Necessary
                                                          Maintain
                                                          Telephone
                                                          Contact with
                                                          Key Community
                                                          Representatives

                                                          Solicit Citizen
                                                          Input for
                                                          Evaluating FS
                                                          Alternatives

                                                          Respond to
                                                          Media Inquiries

                                                          Mail TAG Fact
                                                          Sheet to Key
                                                          Community
                                                          Representatives
                                                          As Necessary

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13-1 (cont.)   Relationship of Community Involvement Activities
                  to the Superfund Technical Process
                                                                                                               13-3
 Prepare and
 Publish Notice

 Make Proposed
 Plan and RI/FS
 Available in
 Administrative
 Record and
 Information
 Repository
Develop and
Distribute Fact
Sheet

Issue News
Release

Mention TAG
Option in Public
Notices
Announce 30 Day
Comment Period
with Notice (and,
upon timely
request, a
minimum 30-day
extension)

Consider Written/
Oral Comments
Prepare and
Publish Notice
                        Prepare
                        Meeting
                        Transcripts and
                        Make Available
                        in
                        Administrative
                        Record and
                        Information
                        Repository

                        Hand out TAG
                        Fact Sheet
Prepare and
Publish Notice

Make Available
in
Administrative
Record and
Information
Repository
                                   Distribute
                                   Responsiveness
                                   Summary to
                                   Public
                                   Commenters
                                   and Mailing List
Prepare Public
Notice

Make New
Proposed Plan
Available in
Administrative
Record and
Information
Repository

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  13—4    Community Involvement
13-1 (cont.) Relationship of Community Involvement Activities to the Superfund
            Technical Process


Conduct
P,,hiir
Comment
Period
• Announce 30 Day
Comment Period
with Notice (and
upon timely
request, a
minimum 30-day
extension)
• Consider
Written/Oral
Comments
Provide
Onp"i
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                                                                                                    75-5
13.1.C   Community
          Involvement
                     Plans
The federal governments legal and political relationship with tribes includes
the federal trust responsibility diat arises from Native American treaties,
statutes, executive orders, judicial decisions, and die historical relations
between die United States and tribes. The trust responsibility requires die
federal government to consider die best interests of tribes, including
protection of the tribal sovereignty of each tribal government, in its
interaction widi them and when taking actions that may affect them.
On April 29, 1994, President Clinton issued a directive to all executive
departments and agencies of die federal government stating diat "as
executive departments and agencies undertake activities affecting Native
American tribal rights or trust resources, such activities should be
implemented in a knowledgeable, sensitive manner respectful of tribal
sovereignty."
The President's directive requires dial, in all activities  relating to or affecting
the government or treaty rights of tribes, die executive branch shall do the
following:

   •   Operate widiin a government-to-government relationship widi
       federally recognized tribes.
   •   Consult, to the greatest extent practicable and  permitted by law, with
       tribal governments before taking actions diat affect federally recog-
       nized tribes.
   •   Assess die impact of Agency activities on tribal trust resources, and
       assure that tribal interests are considered before the activities are
       undertaken.
Because of this unique and important relationship with tribes, it is
important diat tribes be considered and included in all aspects of die
community involvement  program.
Reference
Community Relations in Superfund: A Handbook, EPA 540-R-92-009.

The formal- name for organized EPA community involvement activities at a
Superfund site, as required by die National Contingency Plan (NCP), is die
Community Involvement Plan (CIP). This plan provides an overview of
die community involvement program planned for a site; die historical,
geographical, and technical details explaining why die site is on the NPL; a
description of die community and its involvement widi the site; details on
community involvement approaches to be taken; and die timing of
suggested activities. There are typically three appendices to the CIP: a
mailing list of interested parties and suggested locations for meetings,
information repositories, and Administrative Record (AR) files.
For enforcement sites, EPA regional offices are responsible for developing
CIPs and associated activities. When EPA has negotiated an order with
responsible parties, EPA is designated as die lead agency for community
involvement.  If the state negotiates the order, generally die state will have

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          Community Involvement
                             the lead for community involvement, with EPA oversight. The conduct of
                             community involvement at state-lead sites, however, is negotiable with EPA.
                             The following sections of this chapter highlight these responsibilities by
                             describing the following:

                                •   Procedures and interactions of key community involvement players
                                    during enforcement actions.
                                •   Planning and reporting requirements for community involvement
                                    during enforcement actions.
                                •   Potential problems that may arise during community involvement
                                    activities, and potential resolutions.
                             Reference
                             Community Relations in Superfund: A Handbook, EPA 540-R-92-009.

13.1 .D Community    The lead agency, as defined in Section 300.5 of the NCP, is responsible for
        Involvement    conducting community relations activities and for coordinating the
                   .      .    activities among any other agencies diat may be involved.

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                                                                                              73-7
13.2
13.2.A   Community
          Involvement
                     Plan
13.2.A.1
Coordination
          with
Enforcement
          Staff
 13.2.A.2
 Consistency
          with
Enforcement
      Actions
 Procedures and Interactions
Community involvement activities should be planned as early in the
enforcement process as possible, generally before an RI/FS Special Notice
Letter is sent to PRPs. Information gathered during community interviews
provides the basis for the development of site-specific CIPs. The quantity
and quality of the information gathered from interviews will directly affect
the relevance and effectiveness of communications with the community.
The process for conducting these interviews is detailed in Chapter 3 of
Community Relations in Superfund: A Handbook.
Discussions about die site should be held with regional technical and legal
staff in advance of die interviews so diat the community involvement staff
can be appraised of any situations diat might impact diese interviews.
Regardless of whedier or not viable PRPs have been identified, the Remedial
Project Manager (RPM) should participate in the community discussions.
To incorporate the full range of views, lead agency staff may consider
interviewing PRPs in the community.  The EPA enforcement team for the
site will determine whom to interview. This team is comprised of a
Community Involvement Coordinator (CIC), the On-Scene Coordinator
(OSC), regional counsel, the Environmental Justice Regional Coordinator,
and the RPM, as well as equivalents at the state level when the state has the •
lead.
Reference
Community Relations in Superfund: A Handbook, EPA 540-R-92-009.

Careful planning and coordination of community involvement activities
among the CIC, OSC, regional counsel, and RPM is crucial to prevent
release of inaccurate or misleading information, or information that might
be detrimental to the settlement and/or litigation process.
The CIC is ultimately responsible for ensuring diat the community
involvement requirements of Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA) are implemented. Therefore,
final approval of the CIP should be by the CIC, with concurrence on
specific sections by members of die team.

Community involvement activities oudined in a CIP for an enforcement
site should be consistent widi the settlement process and the schedule of
enforcement actions. Community involvement staff may wish to document
EPA's approach to coordinating and sharing information with  PRPs within
the CIP Any special conditions or Agency interaction with the PRPs,
however, should be spelled out in the Administrative Order or Consent
Decree (CD), not in the CIP.
Early in the site remediation process, the public must be informed by
publicly distributed fact sheets or at a public meeting if PRPs are willing to
implement the CIP. However, community involvement staff must refrain
from public discussion of details of PRP involvement with die site prior to  a

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   13—8    Community Involvement
13.2.B          Recent
              Initiatives
                      and
               Reforms
13.2.B.1        Regional
            Ombudsmen
13.2.B.2 Environmental
                  Justice
               Initiatives
13.2.B.3    Community
                Advisory
                  Groups
CD being signed in order to avoid tension and mistrust between EPA and
PRPs that might cause delays in the negotiations.
Assuming a site has not been referred to the Department of Justice (DOJ)
for litigation, the CIP needs to inform die public of die possibility of
litigation. EPA staff, therefore, need to explain at public meetings or in fact
sheets that pending or planned litigation may impose constraints on the
release of certain information or on the conduct  of community involvement
activities. Community involvement staff should describe die litigation
process and inform die community that only information that can be
ascertained from court files will be available.  Agency statements about die
case must be cleared with DOJ before issuance. The regional counsel team
members will be die focal point for that clearance, as well as for consulting
with DOJ on statements concerning site status such as investigations, risk
assessments, and response work. The plan will be amended to reflect any
potential effects diis could have on community involvement activities.

EPA has made several recent initiatives and reforms to improve the outreach
and community involvement efforts of die Superfund program. The
reforms reflect die Agency's  efforts to enhance and develop community
involvement beyond die regulatory requirements in the NCR  Several of the
reforms are discussed below.

The Regional Ombudsmen  (RO) is responsible for resolving concerns and
providing guidance to both  regional personnel and to stakeholders,
including the community. The RO can also identify sites requiring
cleanups, assist in Brownfields area and environmental justice issues, and
identify criminal cases.

Several environmental justice initiatives have been implemented to benefit
communities with socioeconomic disadvantages. For example, the
Superfund Jobs Training Initiative was developed in response to the demand
for local economic  benefits stemming from Superfund site cleanups.
Reference
Office of Site Remediation Enforcement (OSRE) "Superfund Reforms
Annual Report FY  1997."
Community Advisory Groups (CAGs) are committees, task forces, or
boards made up of citizens widi diverse community interests that provide a
public forum for discussing  die needs and concerns about die decision-
making process at Superfund sites. CAGs may not be appropriate for every
site, and the impetus for establishing one should come from the
community. A CAG can be formed at any point in die cleanup process, but
may be most effective if started early in the process.
References
"About die Community Advisory Group Toolkit: A Summary of the Tools,"
EPA 540-K-97-007.
                               "Community Advisory Toolkit for die Community," EPA 540-R-97-037.

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                                                                                               13-9
13.2.B.4
     Technical
   Assistance
        Grants
13.2.B.5
     Technical
     Outreach
  Services for
Communities
13.2.B.6
13.2.B.7
     Improved
Public Access
to Superfund
  Information
  Community
 Involvement
Pilot Projects
"Community Advisory Groups at Superfund Sites," EPA 540-F-97-031
(Spanish).
"Community Advisory Groups at Superfund Sites," EPA 540-F-96-016.
"Superfund Today: Focus on Community Advisory Groups," EPA 540-K-
96-005.
"Community Advisory Groups: Partners in Decisions at Hazardous Waste
Sites," EPA 540-R-96-043.
Office of Solid Waste and Emergency Response (OSWER) Directive
9230.0-2, "Guidance for Community Advisory Groups at Superfund Sites"
(December 1995).

Technical Assistance Grants (TAGs) are grants of up to $50,000 that are
available to community groups for hiring technical advisors who help the
community understand site-related technical information.  The Agency is
close to  completing a revised version of die TAG rule which contains several
simplifying provisions, including a clarification of die statutory language
regarding "not more than one grant may be made...widi respect to a single
facility." This clarification allows for non-concurrent TAGs at Superfund
sites.
References
OSRE, "Superfund Reforms Annual Report FY 1997."
OSRE, "Superfund Reforms Annual Report FY 1996."

Technical Outreach Services for Communities (TOSC) is a technical
assistance program created to aid communities dealing widi hazardous
substance issues regardless of dieir eligibility to receive a TAG. TOSC is a
no-cost, non-advocate program supported by EPA's five university-based
Hazardous Substance Research Centers (HSRCs). TOSC projects may be
referred to die HSRCs by communities, EPA, states, or tribes. There are
more dian 90 TOSC programs underway, including TOSC for Brownfields
projects.
            •
The National Superfund website has been redesigned to make it easier for
the public to access and find Superfund program information, including
online querying of Superfund data.  All regional offices have developed
homepages diat include information such as site lists, site-specific
information, and links to state Superfund activities.

Several pilot projects have been implemented to enhance community
involvement in die enforcement process. For example, one pilot project was
initiated at  13 sites in 9 of 10 EPA regions, where PRPs committed to
conduct cleanup actions or investigations. Several community involvement
techniques were tested, including inviting communities to  review and
comment on draft technical workplans and proactively sharing cleanup  and
remedy  information widi die public. The benefit of increased community
involvement is increased goodwill from die public and in some instances,
higher quality work products.

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   13—10   Community Involvement
13.2.C              PRP
          Involvement
13.2.C.1
Notice to
     PRPs
 13.2.C.2  Negotiations
EPA is the lead agency for developing and carrying out community
involvement activities at enforcement-lead sites. PRPs may assist in
community involvement activities at the discretion and under the oversight
of the regional office. Specifically, PRPs should be. included in community
involvement activities at sites where they are conducting either the Remedial
Investigation/Feasibility Study (RI/FS), the Remedial Design/Remedial
Action (RD/RA), or both.  PRP community involvement activities may
include participation in public meetings and preparation of fact sheets, and
should be reflected in the CIP. However, EPA will not negotiate widi PRPs
on the contents of press releases, fact sheets, or other documents distributed
to the public.

Notice letters are used to inform PRPs of their potential liability and to
provide them widi an opportunity to enter into negotiations, or to conduct
or finance response activities. Notice letters should contain an invitation to
participate in community involvement activities and an outline of the terms
by which those activities may be conducted. The negotiation process is
discussed in detail in Chapter 5, RI/FS Negotiations/Settlement, and
Chapter 8, RD/RA Negotiations/Settlement.

Negotiations are generally conducted in confidential sessions between the
PRPs and EPA or the state. The public should be informed that neither the
public nor the technical advisor (if one has been hired through a TAG by a
community) may participate in negotiations among EPA, DOJ, and the
PRPs unless everyone agrees to allow such participation. Moreover, litde, if
any, information regarding  negotiations will be available to  the public
during negotiations.
The confidentiality of statements made during the course of negotiations is
a well-established principle  of die American legal system, which promotes a
thorough and frank discussion of the issues between the parties in an effort
to resolve differences. Confidentiality ensures diat offers and counter-offers
made in die course of negotiations may not and will not be used by one
party against die other in any ensuing litigation. PRPs may be unwilling to
negotiate without the guarantee of confidentiality. They may fear public
disclosure regarding issues of liability and odier sensitive issues that may
damage their potential litigation position or their standing widi the public.
This expectation of confidentiality necessarily restricts die type and amount
of information diat can be made public.
Community involvement staff should consult widi and obtain  the approval
of odier members of die technical enforcement and regional counsel team
before releasing any information regarding negotiations. If the site has been
referred to, or is in litigation, DOJ approval also should be obtained.

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                                                                                            13-11
 13.2.D Community
         Involvement
                 During
               Removal
                Actions
13.2.E  Community
         Involvement
                 During
              Remedial
                Actions
EPA encourages public participation during removal actions to the extent
possible.  Removal actions, however, may not always allow for the same
degree of participation as remedial actions because situations that require
emergency removals do not allow for extensive public involvement.
Adjustments to the community involvement process must be made to
accommodate necessary time constraints. The NCP requires that a CIP be
prepared for all removal actions lasting longer than 120 days. The NCP
also requires a public comment period of at least 30 days for removals with a
planning period of six months or more before the initiation of on-site
activity.  For removals with a planning period of less than six months, a
public comment period may be held when appropriate. The public
comment period, if held, begins when the AR file is made available for
public inspection.
The enforcement program encourages PRPs to conduct or pay for removal
actions. At any time, the Agency may arrive at an agreement with the PRPs
to conduct a removal, usually embodied in an Administrative Order on
Consent (AOC). EPA also may issue a Unilateral Administrative Order
(UAO) to compel PRPs to undertake a removal or other action.  In
addition,  under limited circumstances, the Agency may refer the action to
DOJ, seeking a court order to secure the removal.  A UAO or AOC issued
to compel a PRP to conduct or pay for a removal is a public document and
should be made available to the affected community through the AR file.
In addition, community involvement staff, the RPM, and regional counsel
should discuss the terms of die order and describe the removal action to
citizens, local officials (including tribal officials of any potentially affected
tribes), and the media. If the PRP subsequendy fails to respond  to the
order, any public statements or information released regarding the status of
actions at the site should first be cleared with appropriate regional technical
and enforcement personnel.

Remedial actions generally permit ample time for community involvement.
Meetings with small groups of citizens, local officials, tribes, and other
interested parties are extremely helpful for sharing general information and
for resolving questions. These meetings may also serve to provide
information on EPA's general enforcement process.
Distribution of general Superfund public information materials,  such as the
fact sheet, "The Superfund Enforcement Process: How it Works," may be
beneficial to community involvement efforts.  A discussion of how EPA
encourages settlements also may be appropriate at this time.
References
OSWER Directive 9230.0-08, "Planning for Sufficient Community
Relations (Superfund Management Review - No.43A)" (March 7, 1990).
OSWER/Office of Waste Programs Enforcement (OWPE) Fact Sheet, "The
Superfund Enforcement Process: How it Works" (Summer 1988).

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   15—12   Community Involvement
13.2.E.1
 Community
Involvement
Following an
 RI/FS Order
13.2.E.2
    Proposed
     Plan and
        Public
    Comment
RI/FS settlements usually are resolved as AOCs. The RI/FS workplan
triggers the implementation of community involvement activities. When
the PRPs are conducting an RI/FS, the settlement triggers a "kick-off"
meeting with the public to explain the AOC and outline the next steps.
Community involvement, technical, and legal staff should attend this
meeting. Issues that should be clarified include EPA approval of the PRPs
work plan, PRPs performance of the RI/FS, and Agency oversight of die
PRP's work. A fact sheet on the RI/FS process should be distributed at this
meeting and sent to diose on the site mailing list, including local officials
and any tribes which may be affected by the proposed action. A public
announcement should be made about where the AR file will be located.
The AR will include the detailed analysis of alternatives and all RI/FS
information die Agency considers in selecting a final remedy. It should be
used as a tool to facilitate public involvement in that selection.

When the RI/FS is complete, the lead agency will issue a Proposed Plan and
publish a notice announcing die start of a public comment period.  At a
minimum, the notice should be published in a major local newspaper of
general circulation.  The  notice should be a "display" advertisement radier
than buried in the Legal Notices section. The Proposed Plan also may be
distributed to all interested parties,  including TAG and CAG organizations,
and those on die site mailing list. A formal comment period of at least 30
calendar days is to be provided for the public to submit oral and written
comments.  This comment period may be  extended to 60 days upon a
responsible request by die public.
A public meeting is required during die public comment period. A
transcript of die meeting on the Proposed Plan is to be available to the
public in the AR file, and may be distributed through the information
repositories or upon request.
After die public comment period on the Proposed Plan has closed and die
ROD has been finalized, a responsiveness summary is prepared, which
provides lead agency decision-makers with information about community
preferences on remedial alternatives and general concerns about the site. It
also demonstrates to members of die public how dieir comments were
considered during die decision-making process. Bodi die responsiveness
summary and die ROD will be placed in die AR file and odier information
repositories.  In addition, die responsiveness summary may be distributed to
commentors and diose on the site mailing list.
References
Community Relations in SuperfuneL A Handbook, EPA 540-R-92-009.
OSWER Directive 9836.2, "CERCLA Community Relations Mailing List"
(February 6, 1989).

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                                                                                               13-13
13.2.E.3
         Public
   Notice and
Comment on
      Consent
  Decrees for
      RD/RAs
If a negotiated settlement under CERCLA section 106 is reached, the
proposed CD will be submitted to the U.S. District Court for approval, as
required under CERCLA section 122(d)(l). At the time DOJ lodges the
CD with the court, a notice of the proposed agreement must be published
in the Federal Register. There must also be a notice of a public comment
period on the proposed CD before its entry by the court as a final
judgment.
Responsible parties who are non-setders to die agreement usually take this
opportunity to raise their own concerns.  They may file a court case to
block entry of the CD. States or tribes may do likewise if diey believe a CD
does not protect their interests.
The public comment period must be at least 30 calendar days in length and
may be extended upon request.  The proposed CD may be withdrawn or
modified if comments demonstrate that it is inappropriate, improper, or
inadequate.
To ensure that public comment opportunities are extended to interested
parties, Agency staff generally issue a press release after the CD has been
lodged as a proposed judgment with the court. For PRP-lead sites, DOJ
should notify regional counsel for the particular site and provide a copy of
the Federal Register notice of die decree. Regional counsel should ensure
that technical and community involvement staff are informed of this.
Community involvement staff can then mail copies of the press release or
copies of the Federal Register notice to persons on the site mailing list. The
press release should indicate how copies of the CD may be obtained and the
location of other relevant documents.  The procedures for public comment
on the CD and a contact name for obtaining further information should
also be announced. The  public notice and press release for the CD may be
combined.
Communications with the public should focus on the remedial provisions
of the setdement agreement. Details of the negotiations, such as the
behavior, attitudes, or legal positions of PRPs; any compromises
incorporated in the setdement agreement; evidence; or attorney work
products must remain confidential.
If a negotiated setdement for RD/RA results in actions fundamentally
different from those selected in the ROD, the ROD will have to be
amended. An amendment to a ROD also requires a public comment
period, which should coincide, if possible, with the comment period for the
CD. Comments must be addressed in the responsiveness summary for the
ROD Amendment, not the CD. During the formal comment period, a
public meeting may be held. Agency staff must offer the opportunity for a
public meeting when there are significant community issues or concerns, or
the site team thinks a meeting is prudent. These meetings should be
documented, and significant oral comments received during the meeting
should be addressed in a  response to comments documented on the CD.

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   13—14   Community Involvement
13.2.E.4
 Community
Involvement
  During PRP
Remediation
13.2.F           Other
          Enforcement
                 Actions
13.2.F.1
   Injunctive
   Litigation
Once the public comment period on the proposed CD has closed, DOJ
staff (in cooperation with EPA and state staff) will consider each significant
comment and write a response.  DOJ will then file a "Motion to Enter" the
CD to make it legally binding. Responses to comments are released to the
public at the same time. The Agency should use the AR and other
information repositories to make these documents available to the public. A
third press release may be issued at this time announcing entry of the CD.

The lead agency retains responsibility for community involvement during a
PRP-lead remediation that conforms with a CD or any enforcement order.
The scope and nature of community involvement activities will be the same
as for Fund-lead response actions.  When PRPs participate in community
involvement activities at the site, EPA, state, tribal, and PRP roles should be
explicitly defined.  A PRP may not have been involved in the initial stages
of the CIP, but later may show sufficient interest, commitment, and
capability to warrant some level of participation. The CIC should then re-
evaluate the PRPs role in conducting community involvement, and a new
CIP may be developed.  PRP involvement in community involvement
activities also may be addressed in the CD or other enforcement orders.
Reference

OSWER Directive 9836.0-1A, "Community Relations During
Enforcement Activities and Development of the Administrative Record"
(November 1991).

Section 122(i) of CERCLA requires die lead agency to publish a notice of
proposed settlements for AOCs under sections 122(g)(4) (de minimis
setdements) and 122(h) (cost recovery settlements/arbitration). The notice
published in the Federal Register must identify the site and the parties to the
proposed settlement.  A public comment period of at least 30 days is
required for diese agreements. Regional staff should provide notice (e.g., a
press release, a notice to persons  on the site mailing list, or an advertisement
in the newspaper of local circulation) to supplement die Federal Register
notice. For further information on response to comments, see Chapter 6 of
Community Relations in Superfund: A Handbook.
Reference

Community Relations in Superfund: A Handbook, EPA 540-R-92-009-

An injunctive case may be referred to DOJ for litigation at any point in the
enforcement process, which may change the scope of community
involvement activities. Community involvement activities at the site should
be re-evaluated by the site team,  and changes to accommodate
confidentiality should be agreed  upon by the site team, including DOJ.
While the CIP should be implemented as previously approved, litigation
may require changes in public disclosures. For example, die court may
impose a gag order or place restrictions on information released during
negotiations or at public meetings that address potential site remedy. Under
these circumstances, the DOJ attorney will advise die site team on how to
proceed.

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                                                                                                  13-15
13.2.F.2
     Cost
Recovery
13.2.G Administrative
                   Record
During cost recovery litigation, especially those following the start of Fund-
financed RAs, community interest in the site may have lessened, unless
other operable units remain that need to be addressed.  In these cases, a
spokesperson chosen by the site team, in coordination with DOJ, should
take the lead in responding to inquiries regarding current site conditions.
All inquiries regarding litigation should be forwarded to the lead agency cost
recovery team, which will prepare a response, subject to the concurrence of
DOJ.

Section 113(k)(l) of CERCLA requires the establishment of an AR file
containing the information upon which the selection of a response action is
based. It also requires that a copy of the AR file be located at or near the
site.  Section 113(k)(2) requires that the Agency promulgate regulations
outlining procedures for interested persons to participate in developing the
AR file.  Subpart I of die NCP details how the AR file (the incomplete
record as it is being compiled) is assembled, maintained, and made available
to the public. After the ROD is signed, referring to the "file" is no longer
necessary.
The AR has two purposes. First, the record provides an opportunity for the
public to be involved in the process of selecting a response action.  During
the selection of a response action, information is reviewed and made
available in the  publicly accessible AR file.  Second,  the AR represents the
information that was available to and considered by the Agency at the time
of its decision; therefore, if the Agency is challenged concerning the
adequacy of a response action, judicial review of that selection will be
limited to the AR. A complete AR will allow the Agency to avoid costly and
time-consuming litigation. The public should be advised that comments
must be submitted in a timely manner in order to be considered.
From the RI through the selection of remedy, the AR file will be available
for public inspection at a central regional location, at or near the site. The
AR is the public's most complete source of information upon which the lead
agency bases its decisions when selecting a response  action, and should be
used as a tool for facilitating public involvement.
Publicly released documents concerning response selection should be made
available to all interested parties at the same time. If EPA requests that
PRPs review a plan, other members of the public should review that plan as
well. When a kick-off meeting is scheduled, the public, including residents
and  PRPs, should be invited.
The record file and CIP for a remedial action should be made available to
the public no later than the time the RI phase begins, usually when the final
RI/FS work plan is approved. The timing for establishing the record file for
a removal action will depend on the nature of the removal.  As outlined in
the NCP, for removals with a planning period of at least six months before
on-site activities will be initiated, the record file must be made available to
the public when the Engineering Evaluation/Cost Analysis, or its equivalent,
is available for public comment.  For removals with  a planning period of less
than six months, die record file must be available to the public no later than
60 days after the initiation of on-site cleanup activity.

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15-16   Community Involvement
                           The CIC s duties concerning the relationship of the AR file to the
                           information repositories, public notices, and public comments are described
                           in Chapter 6 of Community Relations In Superfund: A Handbook.  Additional
                           information on the roles of the CIC, OSC, RPM, and regional counsel in
                           the development and maintenance of the AR can be found in this
                           handbook, in Chapter 15, Records Management, and in "Final Guidance
                           on Administrative Records for Selection of CERCLA Response Actions"
                           (December3, 1990).
                           References
                           Community Relations in Superfund: A Handbook, EPA 540-R-92-009.
                           OSWER Directive 9833.3A-1, "Final Guidance on Administrative Records
                           for Selection  of CERCLA Response Actions" (December 3, 1990).

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                                                                                            15-17
13.3
13.3.A    Superfund
     Comprehensive
  Accomplishments
                    Plan
13.3.A.1
 Range of
Activities
13.3.A.2
 Range of
    Costs
13.3.B
    Case
 Budget
Planning  and Reporting Requirements

Superfund Comprehensive Accomplishments Plan (SCAP) planning
activities take place at the beginning of each fiscal year. The site team,
including the RPM, CIC, and regional counsel decides the course of
community involvement activities for each site by quarter.  For PRP-lead
sites, the enforcement case budget provides funding for community
involvement.
Site-specific characteristics affect the costs of community involvement at
Superfund sites.  The unique features of each region and the specific
characteristics of each site necessitate individualized community
involvement programs to accommodate different levels of interaction with
the public.

The range of activities conducted for Superfund community involvement
may include developing brochures, writing CIPs, interviewing members of
the community,  preparing fact sheets, organizing information repositories,
organizing public meetings, issuing public notices, developing ROD
responsiveness summaries, holding small group meetings, translating
information for communities, and conducting workshops.  The community
involvement staff in the regional Superfund management office usually works
with the RPM to conduct these activities.
As stated above,  the range of costs varies from site to site. Higher costs can
be expected at sites that are more complex, and,  thus, more time
consuming. A variety of conditions and circumstances may influence the
costs of performing community involvement activities at Superfund sites,
such as the following:

   •   Different regional preferences and expectations.
   •   Political, social, and economic differences among sites.
   •   Level of technical complexity.
   •   Stage of the remedial  response action.
   •   Level of public involvement.
   •   Size of geographic area.
   •   Extent of travel requirements.

The enforcement case budget provides funds for community involvement
for RI/FS and RD/RA activities when a PRP lead is expected. The CIP
should be funded concurrently with the RI/FS negotiations. Community
relations implementation (CRI) should be funded concurrently with the RI/
FS oversight work assignment.  A revised CIP should be funded
concurrently widi the RD/RA negotiations and CRI for the RD/RA
oversight. The enforcement case budget does not fund community
involvement at federal, state, or federal-enforcement lead sites. The
community involvement lead should be responsible for activities funded by
the enforcement case budget.

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   13—18    Community Involvement
13.4
13.4.A         Volatile
                   Public
                Meeting
13.4.B
       Lack of
 Community
      Interest
13.4.C
           PRP
Involvement
13.4.D
        PRP as
     Principal
    Employer
Potential  Problems/Resolutions

This section discusses specific problems that may occur during community
involvement activities at enforcement sites and suggests methods for
resolving these issues.

Keeping citizens informed from the beginning of the process will help to
avoid volatile situations. Perceived health and safety concerns posed by a
hazardous waste site, however, can sometimes lead community members to
react emotionally during public meetings and informational briefings.  EPA
technical and legal staff may use a neutral, third-party moderator to
facilitate a useful exchange of information during a meeting. A moderator
can help set die tone for a meeting by setting fordi guidelines at the outset.
When a moderator serves as die intermediary between citizens  and the lead
agency, the meeting may run more efficiently.

Through initial contacts widi a site community, EPA may discover that
citizens have little knowledge of, or interest in site activities. In diis
situation, it may be necessary to contact a broader group of community
members to minimize die likelihood diat undetected concerns  get
overlooked. Additional groups diat may be contacted include clergy,
League of Women Voters, civic groups, garden clubs, neighborhood
associations, and professional organizations. Information on these groups
is usually available from the local Chamber of Commerce.  If, after
contacting a broad range of potential interest groups, no significant interest
or concerns are identified, community involvement staff should devote
time to developing and implementing extensive outreach efforts.

As oudined in Chapter 6 of Community Relations in Superfund: A
Handbook, PRPs may participate in community involvement activities.
This may include developing fact sheets and brochures on clean-up actions.
In this situation, die RPMs should make it clear to die community which
materials have been produced by EPA and which have been prepared by the
PRP with review by EPA. Further, RPMs should work closely  widi PRPs
who wish to develop community involvement materials to ensure that
those materials receive adequate EPA review before distribution. EPA, and
not die PRPs,  retains all decision-making authority and directs all
community involvement activities. When EPA produces a  fact sheet or
other outreach document, diose materials also should be distributed to the
PRP.
Reference
Community Relations in Superfund: A Handbook, EPA 540-R-92-009.
The nature of the environmental threat and how direcdy a community feels
affected generally determine die reaction of die community toward
outreach activities at a site. In some situations, however, economic
considerations of die residents can outweigh dieir environmental concerns.
Nevertheless, die community must be informed diat PRPs will be made
accountable to die public for dieir site.  RPMs should address diese fears by

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                                                                  13-19
emphasizing EPA's desire to present the facts about the site.  For example,
when a PRP is the principal employer in a town, citizens may fear losing
their jobs if they attend meetings and express concerns about the site. To
overcome this barrier to public expression, the CI team should invite private
communication through mail, telephone hotline, or information request
forms published in a local newspaper, and provide assurances of anonymity.

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14. State Enforcement

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                                                                   14-i
Chapter 14 State Involvement in CERCLA Enforcement
14.1 Description of Activity	1
     14.1.A  Introduction	1
     14.1.B  Background Information	1
     14.1.C  State Roles in CERCLA Enforcement	  1
     14.1.D  Tribal Roles in CERCLA Enforcement	2
     14.1.E  State Remediation Programs	3
     14.1.F  State Voluntary Cleanup Programs	3
     14.1.G  The Superfund Enhanced State and Tribal Role Initiative	4
14.2 Procedures and Interactions	5
     14.2.A  The Roles of the State and EPA in PRP Oversight	5
     14.2.B  CAs and Core Program Funding	7
     14.2.C  State and Tribal Superfund Consolidated Funding	9
     14.2.D  Development of the Lead Agency Enforcement CA	10
     14.2.E  Sections in a CA Application	10
     14.2.F  Development of the Superfund Memorandum of Agreement	11
     14.2.G  Articles in a SMOA	12
     14.2.H  EPA Approval of State Remedies	14
     14.2.1   State Voluntary Cleanup Programs	14
14.3 Planning and Reporting Requirements	16
     14.3.A  Superfund Comprehensive Accomplishments Plan	16
     14.3.B  CERCLIS 3/WasteLAN	16
            14.3.B.1 Activity Leads	18
            14.3.B.2 Event Leads	18
14.4 Potential Problems/Resolutions	19
     14.4.A  Forum Shopping by PRPs	19
     14.4.B  Overseeing State Oversight of PRPs	19
     14.4.C  SCAP Targets	19
     14.4.D  Standard Planning Time Line	19
     14.4.E  SMOA Development	19
     14.4.F  State Challenges to RD/RA Consent Decrees	19

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14—ii   State Involvement in CERCLA Enforcement

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                                                                                         14-1
14.1.B  Background
          Information
Chapter  14  State Involvement in CERCLA Enforcement

14.1                        Description of Activity

14.1 .A  Introduction    This chapter focuses on state involvement in the Superfund enforcement
                             process, primarily addressing potential agreements and funding mechanisms
                             between EPA and states involved in the Superfund process. The chapter
                             also addresses the effects of several Superfund Administrative Reforms that
                             were designed to increase state involvement in the Superfund enforcement
                             process. These reforms have affected EPA policies addressing state voluntary
                             cleanup programs, deferral of National Priorities List (NPL) listings while
                             states oversee Potentially Responsible Party (PRP) responses, block funding
                             of Superfund cooperative agreement resources, and state involvement in
                             remedy selection. Information in diis chapter should be used in conjunc-
                             tion widi subpart F of the National Contingency Plan (NCP)("State
                             Involvement in Hazardous Substance Response"), Subpart O of 40 Code of
                             Federal Regulations (CFR) part 35 ("Cooperative Agreements and Super-
                             fund State Contracts for Superfund Response Actions"), and die EPA
                             guidances that are cited throughout die chapter.

                             The Comprehensive Environmental Response, Compensation, and Liability
                             Act (CERCLA) provides for state involvement in selection of remedies and
                             negotiations. EPA and a state may agree to designate a site as state-lead
                             enforcement. If so, die state may receive funding for various enforcement
                             activities, including:

                               •   PRP searches.
                               •   Issuance of notice letters to PRPs.
                               •   Negotiations widi PRPs to secure dieir commitment for site cleanup.
                               •   Administrative or judicial enforcement actions to compel PRP
                                   cleanup.
                               •   Oversight of PRP response activities.

                             Section 121 (f) of CERCLA, as amended by the Superfund Amendments
                             and Reaurhorization Act, requires EPA to promulgate regulations that
                             provide for substantial and meaningful involvement by states in die selec-
                             tion, development, and initiation of remedial actions undertaken widiin
                             their boundaries.  Subpart F of die NCP implements section 121(f)(l) of
                             CERCLA It specifies, among other diings, state and EPA responsibilities
                             for identifying state and federal Applicable or Relevant and Appropriate
                             Requirements (ARARs),  an annual process for establishing priorities and
                             identifying die lead for enforcement response, and a notification process for
                             state participation in PRP negotiations. Section 121(f)(2)(c) of CERCLA
                             audiorizes EPA to conclude setdement negotiations with PRPs without state
                             concurrence.
                             EPAs strategy for state involvement in enforcement emphasizes maximizing
                             the number of sites that can be cleaned up by enhancing and fully utilizing
14.1.C
          State
          Roles
   in CERCLA
Enforcement

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  14—2     State Involvement in CERCLA Enforcement
14.1.D           Tribal
                Roles in
                CERCLA
         Enforcement
state capability and by minimizing duplication of effort between EPA and
the states. There are two types of state-lead enforcement sites depending on
whether EPA provides money to the state for work or oversight at the site.
Sites where EPA does not provide site-specific money and the state has the
enforcement lead are referred to as non-Fund-financed state-lead enforce-
ment sites. Sites where EPA provides money and die state has the enforce-
ment lead are referred to as state-lead enforcement sites. Section
300.515(e)(2)(ii) of the NCP  provides that state concurrence on a Record
of Decision (ROD) is not a prerequisite to EPA's selecting a remedy, i.e.,
signing the ROD, nor is EPA's concurrence a prerequisite to a state's select-
ing a remedy at a non-Fund-financed state-lead enforcement site under state
law.  However, remedies at a state-lead enforcement site (i.e., Fund-financed
site)  must be consistent widi the NCP and with EPA policies and guid-
ances. At any site, remedies consistent with the NCP ensure successful cost
recovery efforts and reduce difficulties in deleting sites from the NPL once
remedies have been implemented.
Section 104(d)(l) of CERCLA authorizes EPA to enter into a contract or
Cooperative Agreement (CA)  with capable states to take response actions.
Section 300.505 of the NCP describes the requirements for an EPA/State
Superfund Memorandum of Agreement (SMOA). Subpart O of 40 CFR
Part  35 details requirements and procedures for Core Program CAs, site-
specific CAs, and Superfund State Contracts (SSCs).
References
40 Code of Federal Regulations (CFR)  part 35 Subpart O ("Cooperative
Agreements and Superfund State Contracts for Superfund Response Ac-
tions") (1994).
Office of Solid Waste and Emergency Response (OSWER) Directive
9831.9,  "Questions and Answers About the State Role in Remedy Selection
at Non-Fund Financed State-Lead Enforcement Sites" (April 18, 1991).
National Oil and Hazardous Substance Pollution Contingency Plan (NCP),
40 CFR section 300.505 ("EPA/State Superfund Memorandum of Agree-
ment (SMOA)") (1990).
NCP, 40 CFR section 300.515 ("Requirements for state involvement in
remedial and enforcement response") (1990).

Opportunities for tribal participation in the Superfund process are similar to
those for states.  Section 300.515(b) of die NCP provides that an Indian
tribe will be afforded substantially die same opportunity as a state to
participate in die Superfund process and receive federal funds if die tribe
meets diree standards:

  •   It is a federally recognized Indian tribe.
  •   It has a tribal governing body that is currendy performing govern-
      mental functions to promote die healdi, safety, and welfare of the
      affected population or to protect die environment widiin a defined
      geographic area.

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                                                                                              14-5
14.1.E
          State
Remediation
    Programs
14.1.F
          State
    Voluntary
      Cleanup
    Programs
   •   It has jurisdiction over a site at which Fund-financed response is
       contemplated.
Section 300.505 of the NCP explicidy provides diat tribes diat meet diese
standards may also enter into SMOAs widi EPA.
There are some differences in the treatment of states and tribes.  CERCLA
section 104(c)(3) exempts tribes from the requirement that states provide
assurances regarding future maintenance and cost-sharing at remedial action
sites. In addition, Subpart O of 40 CFR Part 35 separately addresses state
and tribal requirements for receiving certain CAs.
References
40 CFR part 35, Subpart O ("Cooperative Agreements and Superfund State
Contracts for Superfund Response Actions") (1994).
NCP, 40 CFR section 300.505 ("EPA/State Superfund Memorandum of
Agreement (SMOA)") (1990).
NCP, 40 CFR section 300.515 ("Requirements for state involvement in
remedial and enforcement response") (1990).

Many states have statutes that audiorize state environmental agencies to
remediate or compel private parties to remediate releases of hazardous
substances. This authority can take many forms, from state responsibility
for non-NPL sites to audiority for actions at all hazardous sites in the state.
CERCLA does not preclude states from pursuing enforcement actions
under state law in  the absence of formal agreement with or lead designation
by EPA. In turn, EPA has the authority under CERCLA to proceed with its
own enforcement action or attempt to intervene prior to a state settlement
with or litigation against PRPs. As specified in section 122(e)(6) of
CERCLA, however, after Remedial Investigation/Feasibility Study (RI/FS)
work has been initiated at an NPL site by EPA or the PRPs  (pursuant to an
Administrative Order or Consent Decree (CD)), no PRP may undertake
any remedial action at the facility unless the action is authorized by EPA.

More than diirty states'have adopted statutes, regulations, or administrative
provisions under which private parties that voluntarily agree to clean up a
contaminated site are offered some protection from future state enforcement
action at die site. These programs are referred to as state voluntary cleanup
programs (VCPs). Regions and states may negotiate Memoranda of Agree-
ment (MOAs) that help define a division of labor between the region and
die state by defining what kinds of sites should be  addressed by the VCP
and by providing diat generally EPA does not anticipate pursuing CERCLA
response actions at sites that are participating in the state's VCP, unless EPA
determines diat diere may be an imminent and substantial endangerment to
the public health, welfare, or die environment. EPA's  policy on voluntary
cleanup programs  is further discussed later in this chapter.

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 14—4    State Involvement in CERCLA Enforcement
14.1.G
         The
Superfund
 Enhanced
 State and
Tribal  Role
   Initiative
In November 1996, the Assistant Administrators for OSWER and the office
of Enforcement and Compliance Assurance (OECA) issued a policy mes-
sage commissioning work to identify and analyze major issues/barriers to
enhancing the role of states and tribes in Superfund. This message stressed
die importance of EPA, in coordination widi states and tribes, proactively
working through issues surrounding state readiness, assistance to states,
EPA-state program agreements, and the unique considerations of enhancing
tribal participation. The statement asked for recommendations on how
EPA can work to further build "strong partnerships" between the federal
government and states and tribes.
Workgroups consisting of EPA, state, and tribal representatives were formed
around these issue areas. A broad-based group of Superfund program and
enforcement personnel, and a council of senior state, tribal, and EPA
executives, oversaw the direction of die workgroups. These groups have
completed the work of crafting a comprehensive plan to enhance the state
and tribal role in Superfund. The plan, issued in March 1998, is entided
"Plan to Enhance the Role of States and Tribes in the Superfund Program."
In May 1998, EPA directed the regions to pilot die concepts in the plan
with a state and tribe in their region. Many proposals have been submitted
by bodi states and tribes interested in piloting different parts of die plan.
EPA will  implement the pilots with states and tribes, and evaluate  the
effectiveness of the plan in enhancing the role of states and tribes for future
Superfund work.
Reference
OSWER Directive 9375.3-03, "Plan to Enhance the Role of States and
Tribes in  die Superfund Program" (March 1998).

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                                                                                              14-5
14.2
14.2.A    The Roles
           of the State
            and  EPA in
       PRP Oversight
Procedures and  Interactions

To assist EPA and individual states operating together in the Superfund
program, it is preferable to have clearly defined processes and procedures for
coordination and interaction. Although either EPA or states may conduct
enforcement actions against PRPs without the others involvement, it is in
both die states and EPA's best interests to coordinate such actions.
There is opportunity under CERCLA for the coordination and sharing of
enforcement responsibilities between EPA and the states. EPA and states
may interact in one of the following arrangements:

  •   States participate, in a support role, in EPA-lead enforcement actions
      (EPA-lead enforcement sites).
  •   States assume lead responsibility relying on state enforcement
      authority through a cooperative agreement (state-lead enforcement
      sites).
  •   States assume oversight responsibility for PRPs  at EPA-lead sites
      (EPA-lead enforcement site with state as lead technical agency).
  •   States act under their own authority as lead agency, absent a SMOA
      or CA, through participation in "annual consultation" (see 40 CFR
      section 300.515(h)(l)). (Non-Fund-fmanced state-lead sites).
Another potential relationship between EPA and the states can be estab-
lished through the use of Core Program CAs. The Core Program provides
funding for states to develop state capabilities, including site remediation
enforcement under state authority.
Reference
NCP, 40 CFR section 300.515 ("Requirements for state involvement in
remedial and enforcement response") (1990).

The general nature of EPA and state interaction in pursuing PRP site
cleanup commitments can best be illustrated through a discussion of
required oversight roles for states and EPA, as well as available funding
schemes.  Where EPA provides money to a state for site-specific remedial
work or PRP oversight, EPA will require EPA concurrence on die remedy
and consistency with the NCP.
Oversight roles are established for both the lead agency and  the support
agency. The lead agency has primary responsibility for planning and
implementing a response under CERCLA The support agency furnishes
necessary data to the lead agency, reviews response data and documents, and
provides other assistance to the lead agency. A variation on  diis distinction
between lead and support roles is where states or EPA can have primary
responsibilities for specific tasks (e.g., community involvement) while the
other has die overall lead for the clean up process at the site. Lead agency
designation for Fund-financed response activities is determined by EPA in
consultation with the states based on consideration of numerous factors. It
is generally preferable diat enforcement lead designation remain the same

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14—6    State Involvement in CERCLA Enforcement
                              throughout the remedial process, instead of the lead being designated
                              separately for each major event, such as the RI/FS and the Remedial
                              Design/Remedial Action (RD/RA).
                              Whenever a state negotiates with PRPs to undertake a response action, the
                              state should attempt to obtain a commitment from the PRPs to pay for
                              EPA's oversight costs prior to requesting funds from EPA. Where PRPs do
                              not agree to pay for EPA's oversight costs, these costs become part of EPA's
                              response costs, which EPA should later seek to recover from the PRPs.
                              When oversight costs are reimbursed by PRPs at the end of the year or at
                              completion of the response action, EPA funds can be  used to the extent
                              available as described in the "Interim Final Guidance  Package on Funding
                              CERCLA State Enforcement Actions at NPL Sites."  Because CA funds are
                              100 percent federal, the money diat is reimbursed to EPA must go into the
                              Trust Fund to be reappropriated later. In applying for an enforcement CA
                              to fund state oversight of PRPs, the state applicant must demonstrate that
                              "it has taken all necessary action to compel PRPs to fund the oversight" of
                              negotiated cleanup activities.  (See 40 CFR section 35.6l55(c)(2)(iii)).
                              During annual consultations or when developing agreements, EPA and the
                              states should consider the extent to which each party will be involved in the
                              other's  negotiations with PRPs. The extent of involvement should be based
                              on various factors including the states staff resources,  level of confidence
                              resulting from past experience with the state, and site-specific factors such as
                              complexity or national significance of the response action.  More detailed
                              information is available in the "Interim Final Guidance Package on  Funding
                              CERCLA State Enforcement Actions at NPL Sites."
                              Where EPA has the lead for oversight, it encourages the state to conduct
                              oversight tasks if it has the in-house capability to do the work.  Generally,
                              EPA will not fund the state to hire contractors for oversight tasks (with the
                              exception of procuring the services of another state  agency) unless the state
                              provides adequate justification for their use.  Furthermore, EPA will not
                              fund states to conduct oversight tasks that duplicate EPA's efforts. Guid-
                              ance for determining whether to fund a state for oversight of a PRP re-
                              sponse can be found in "CERCLA Funding of PRP Oversight by States at
                              NPL Sites."
                              States also may be involved in three-party agreements (EPA/state/PRP).
                              Although the Agency does not generally encourage  the use of three-party
                              agreements (as resource duplication may occur), it remains a viable option
                              where EPA and a state work together.
                              EPA may also defer consideration of listing NPL-caliber sites to allow states
                              to initiate and oversee response actions conducted and funded by PRPs
                              under state  law.  The primary goal of the deferral program is to accelerate
                              the rate of response actions by encouraging a greater state role.  States may
                              participate in the deferral program on an  area-wide basis by agreeing to
                              generic procedures and standards in a MOA with the  region, or may
                              participate on a site-specific basis.  States  participating in the deferral
                              program should have statutory, regulatory, or administrative provisions that

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                                                                                                14-7
14.2.B
CAs and
      Core
Program
Funding
ensure that remedies at deferred sites will be protective of human health and
the environment, and sufficient capabilities, resources, and expertise to
ensure that the response action will be substantially similar to a response
conducted under CERCLA (i.e., it will be a "CERCLA-protective"
cleanup).
A site is eligible for deferral until a state or contractor is tasked by EPA to
develop a Hazard Ranking System package for that site; a listing process
should not be halted in favor of deferral without a compelling reason.
Deferral site candidates should be of NPL caliber and should have viable
and cooperative PRPs willing to enter into an enforceable agreement to
conduct all response actions. Consequently, Fund resources generally are
not used to conduct response actions at deferred sites.  A region may enter
into a CA with a state for Non-Time-Critical removal or pre-remedial
activity if PRPs at a deferred site become uncooperative or bankrupt.  In
addition, regions may enter into a Core Program CA widi a state to provide
funding to develop or enhance die state's deferral program capabilities, and
may provide site-specific funding for site assessment or enforcement and
oversight activities.
References
OSWER Directive 9375.6-11, "Guidance on Deferral of NPL Listing
Determinations While States Oversee Response Actions" (May 3, 1995).
40 CFR section 35.6155 ("State, political subdivision on Indian Tribe-lead
enforcement Cooperative Agreements") (1990).
OSWER Directive 9831.7, "Supporting State Attorneys General CERCLA
Remedial and Enforcement Response Activities at NPL Sites" (June 21,
1988).
OSWER Directive 9831.6a, "Guidance on CERCLA Funding of State
Enforcement Actions at National Priorities List Sites" (April 7, 1988).
OSWER Directive 9831.6b, "Guidance on CERCLA Funding of Poten-
tially Responsible Party Oversight by States at National Priorities List sites"
(April 7,1988).
OSWER Directive 9831.6c, "Cost Estimates for Budgeting State Enforce-
ment Activities" (April 7, 1988).
OSWER Directive 9831.6d, "Recommended Procedures for Headquarters/
Regional Review and Concurrence of Initial Enforcement Cooperative
Agreements" (April 7, 1988).
OSWER Directive 9831.3, "EPA-State Relationship in Enforcement
Actions for Sites on the NPL" (October 2, 1984).
EPA funding of state enforcement activities is related to encouraging or
compelling PRPs to undertake response activities to clean up a site (such as
negotiations for RI/FSs and RD/RAs) and to conduct necessary technical,
administrative and enforcement activities during dieir oversight of PRPs'
response (such as compiling die Administrative Record (AR), preparing

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14-8    State Involvement in CERCLA Enforcement
                              remedy decision documents, and enforcing the provisions of setdement
                              agreements).
                              Two types of Superfiind response agreements are essential to state participa-
                              tion in CERGLA implementation. The first, die Superfund CA, is die
                              vehicle through which EPA can provide funds to states to assume responsi-
                              bility as lead or support agencies for response. CAs for remedial action
                              address only one site. Pre-remedial action CAs, including enforcement
                              CAs, may address multiple sites. Core Program CAs may be used for non-
                              site-specific activities diat support state implementation of CERCLA. See
                              subpart O of 40 CFR 35 for more information.
                              The second type of response agreement, the SSC, is used to ensure state
                              involvement and to obtain die state assurances required under section 104
                              of CERCLA prior to remedial action (see section 126 of CERCLA for tribal
                              responsibilities).  SSCs are only applicable to Fund-lead activities at sites.
                              SSCs are not generally applicable to enforcement activities at sites, because
                              state assurances are not required for enforcement actions.  Funding through
                              enforcement CAs may be for state-lead or state-support enforcement
                              activities. State-support activities include a review role for die state.
                              Core Program funding provides funds to a state to conduct CERCLA
                              implementation support activities that are not assignable to specific sites,
                              but are intended to develop and maintain a state's ability to participate in
                              the CERCLA response program.
                              The amount of Core Program funding provided to states is negotiated
                              between the state and the region based on the availability of funds and die
                              recipient's program needs in the following areas:

                                 •  Procedures for removal actions and longer-term remediation of
                                    environmental and health risks at hazardous waste sites.
                                 •  Provisions for satisfying all requirements and assurances.
                                 •  Legal authorities and enforcement support associated with proper
                                    administration of die recipient's program and with efforts to compel
                                    PRPs to conduct or pay for studies and/or remediation.
                                 •  Efforts necessary to hire and train staff to manage publicly-funded
                                    cleanups, oversee PRP-lead cleanups, and provide clerical support.
                                 •  Efforts necessary to build infrastructure procedures for AR compila-
                                    tion and cost documentation.
                                 •  Other activities deemed necessary by EPA to support sustained EPA/
                                    recipient interaction in CERCLA implementation.
                              States can use Core Program CAs to develop safety plans, quality assurance
                              project plans, and community involvement programs. Core Program CAs
                              can provide funding for document review, development, and refinement of
                              die enforcement program as long as such activities are not site-specific.
                              States can also use Core Program CAs to hire and train staff to oversee
                              cleanup matters and to cover clerical or administrative support, which
                              cannot be charged to site-specific CAs.

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                                                                                               14-9
14.2.C            State
              and Tribal
             Superfund
         Consolidated
                Funding
References
NCP, 40 CFR section 300.515 ("Requirements for state involvement in
remedial and enforcement response") (1990).
OSWER Directive 9375.2-01, "State Core Program Funding Cooperative
Agreements" (December 12, 1987).

In the context of Superfund, the term block funding simply means consoli-
dation of multiple response activities under a single CA, with a single scope
of work and budget. These "consolidated" funding agreements exclude
remedial action CAs due to cost-sharing and other state assurances that
must be provided site-specifically. The overall goals for utilizing Superfund
block funding include: developing assistance agreements that provide states
with considerable flexibility in directing funds in support of the Superfund
program; reducing the administrative burden on both the states and EPA;
and complying with the existing law and regulations governing these
agreements.
Consolidated funding is intended to enhance states' flexibility to redirect
CA funds between and among sites and activities (to the extent allowed by
the applicable Superfund Advice of Allowance (AOA)), expand state and
tribal flexibility to transfer funds among sites and activities within the
approved tasks for die CA without prior EPA approval, reduce the need for
amendments when scope of work changes are needed, and reduce other
specific administrative budget and reporting requirements, where appropri-
ate.  By reducing these budget and reporting requirements, block funding
produces transaction cost resource savings for both levels of government.
These streamlining options are accomplished through deviation from part
31 and part 35 of Subpart O.  Over 60 deviation requests for block funding
activities have been approved.
To institutionalize the benefits of consolidated funding, the Office of
Emergency and Remedial Response (OERR) coordinates with the Office of
the Comptroller to ensure that regions are allowed to shift funds from
existing CAs to block funding CAs.  OERR also coordinates with the
Grants Division to review and approve deviation requests.
This initiative has resulted in fewer CA amendments, saving both EPA and
states a great deal of time and resources that are better spent on cleanups.
For example, Illinois EPA submitted seven CA applications in 1996,  but
only a single CA amendment in 1997. Block funding has also allowed
Illinois EPA to move from quarterly reporting to biannual reporting. While
Illinois EPA continues to send quarterly financial statements for cost
recovery purposes, project status updates are now sent on a biannual  basis.
The block grant allows Illinois EPA to transfer money from one project to
another based on need and changing program priorities. Each budget shift
must be reported, but prior EPA approval is not needed and delays associ-
ated with CA application preparation and processing are gready reduced.

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  14-10   State Involvement in CERCLA Enforcement
14.2.D Development
           of the Lead
                Agency
         Enforcement
                      CA
14.2.E
    Sections
      inaCA
Application
In developing state-lead enforcement CAs, EPA evaluates states' ability to
perform the response action and enforcement.  Specifically, a state must
demonstrate that it has the authority, jurisdiction, and necessary administra-
tive capabilities to take enforcement action(s) to compel PRP cleanup of the
site, or to recover cleanup costs. The region evaluates the states ability to
conduct the response action and the ability to function as the lead enforce-
ment agency. Before EPA funds state response or oversight activities under
a CA, the state has assured diat their response actions and oversight of PRPs
will be consistent with CERCLA and the NCR
Certain state activities cannot be funded under state enforcement CAs.
Detailed information can be found in subpart F of the NCP, subpart O of
40 CFR part 35, and in the "Interim Final Guidance Package on Funding
CERCLA State Enforcement Actions at NPL Sites."
References
40 CFR part 31 ("Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments") (1997).
NCP, 40 CFR section 300.515 ("Requirements for state involvement in
remedial and enforcement response") (March 8, 1990).
NCP, 40 CFR part 300, subpart F ("State Involvement in Hazardous
Substance Response") (1990).
OSWER Directive 9831.7, "Supporting State Attorneys General CERCLA
Remedial and Enforcement Response Activities at NPL Sites" (June 21,
1988).
OSWER Directive 9831-6a, "Guidance on CERCLA Funding of State
Enforcement Actions at National Priorities List Sites " (April 7, 1988).
OSWER Directive 9831.6b, "Guidance on CERCLA Funding of Poten-
tially Responsible Party Oversight by States at National Priorities List sites"
(April 7, 1988).
OSWER Directive 9831.6c, "Cost Estimates for Budgeting State Enforce-
ment Activities" (April 7, 1988).
OSWER Directive 9831.6d, "Recommended Procedures for Headquarters/
Regional Review and Concurrence of Initial Enforcement Cooperative
Agreements" (April 7, 1988).
OSWER Directive 9355.2-1, Superjund State-lead Remedial Project Manage-
ment Handbook (December 1986).

Some of the significant sections that may be included in a CA application
are listed below; detail is  provided on those related to state enforcement.
Depending on the task to be funded by the CA (e.g., PRP search, issuance
of notice letters and negotiations, RI/FS), other additional provisions may
be added.
                                    Legal Authority - Documents diat adequate enforcement authorities
                                    are available.

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                                                                                             14-11
14.2.F  Development
                   of the
             Superfund
       Memorandum
        of Agreement
   •   Consistency with CERCLA section 122 - Provides that state
      settlements will be consistent with certain CERCLA section 122
      provisions and related EPA Superfund policy when negotiating and
      settling with PRPs under a CA. (Although states can avail them-
      selves of equivalent procedures, they are not authorized by CERCLA
      to use section 122 or any other CERCLA authority when pursuing
      enforcement actions under their own authorities).
   •   Negotiation Time Frames - Ensures diat the state will notify EPA if
      a setdement is not reached within 90 days of issuance of special
      notice for RI/FS negotiations and 120 days for RD/RA negotiations;
      and requires diat the state recommend whether negotiations should
      continue with the PRPs.
   •   Formalizing Successful Actions - Ensures that the state will com-
      plete successful actions by entering into an enforceable order or
      decree, or issuing some other enforceable document requiring the
      PRP to conduct die response action in accordance with the NCP
      and relevant EPA policy and guidance.
Other requirements diat are included in a CA application address the AR,
community involvement, and the scope of work. The planning and report-
ing requirements of diese state enforcement actions are presented in section
3 of diis chapter.

A SMOA is a non-site specific document that facilitates and documents die
processes and procedures that the region and state use when conducting
site-specific response actions. A SMOA, if negotiated properly, should
remain applicable to the EPA-state Superfund interaction for several years
with only relatively minor modifications as changes in the relationship
occur.
The SMOA is a written document that is mutually approved by die Agency
and state and that covers aspects of EPA-state interaction on Superfund
activities. The articles covered in the SMOA parallel the major points of
state-EPA interaction set forth  in the NCP.  EPA and the state should tailor
die SMOA to their particular needs. SMOAs are used to describe die terms
for die state and EPA when the state wants to become the lead agency for
enforcement action at an NPL site or seek EPA concurrence on die remedy
at an NPL site.  A SMOA shall be supplemented by site-specific enforce-
ment agreements between EPA and states which specify schedules and EPA
involvement. The SMOA may identify the extent to which EPA and die
state will participate in each odier's response actions and how ARARs will be
identified. In die absence of a  SMOA, EPA and the states shall comply with
the requirements and review times in section 300.515(h)  of subpart F of die
NCP. SMOAs,  unlike CAs, are not legally binding. SMOAs and die state's
responsibilities for involvement are discussed in subpart F of the NCP and
the "Interim Final Guidance on Preparation of a Superfund Memoranda of
Agreement (SMOA)."  The guidance presents a model SMOA suggesting
language and content for later adaptation by EPA regions and states.

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 14—12   State Involvement in CERCLA Enforcement
                               Reference
                               NCP, 40 CFR section 300.505 ("EPA/State Superfund Memorandum of
                               Agreement (SMOA)") (1990).
                               NCP, 40 CFR section 300.515 ("Requirements for state involvement in
                               remedial and enforcement response") (1990).
                               OSWER Directive 9375.0-01, "Interim Final Guidance on Preparation of
                               Superfund Memoranda of Agreement (SMOAs)" (May 8, 1989).
14.2.G         ArtlCl6S    The following paragraphs summarize material that may be included in the
             in 3 SMOA    SMOA regarding state enforcement; following this information is a listing
                               of other important articles for inclusion in the SMOA.

                                 •   Principles - This article summarizes the status of the state's hazard-
                                      ous waste problem, the status of the state's Superfund program, the
                                      roles of the lead and support agencies, as well as agreements concern-
                                      ing the aggressiveness of enforcement activity.
                                 •   Enforcement - This article describes expectations for enforcement
                                      and die general nature of EPA and state interaction in pursuing PRP
                                      site cleanup commitments. The parties to the SMOA may agree in
                                      principle that:
                                         Negotiated response actions widi qualified PRPs are essential to
                                         an effective program for the cleanup of NPL sites.
                                         Two-party (i.e., EPA or state and PRP) setdement negotiation
                                         and execution is generally more efficient tlian three-party (i.e.,
                                         EPA and state and PRP) negotiation and execution.
                                         The state has demonstrated adequate authority to carry out
                                         enforcement.
                                      In addition, die parties to the SMOA may agree in practice to  do the
                                      following:
                                         Designate die lead and support agencies for enforcement actions
                                         at NPL sites during the annual planning process.
                                         Indicate diose sites where the support agency will be requested
                                         to concur on die lead agency's ROD or odier decision docu-
                                         ment.  EPA retains final approval authority on RODs where it
                                         has provided monies to states for oversight/enforcement activi-
                                         ties.
                                         Develop site-specific enforcement strategy oudines widi time
                                         frames during die annual planning process.
                                         Set fordi response action commitments and setdements with
                                         PRPs in enforceable documents indicating the lead agency
                                         responsible for all Superfund communication with PRPs.
                                         Organize a meeting between the lead agency and the support
                                         agency prior to the start of negotiations with PRPs to  discuss
                                         goals, starting points, and bottom-line positions for negotiations.

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                                                                14-13
          Provide draft and final enforcement documents to the support
          agency prior to issuance to the PRPs.
          Allow for assistance requests by lead agency to support agency at
          any time during the enforcement and negotiation process.
          Have the lead agency notify PRPs of a planned RI/FS and
          determine their willingness and ability to conduct the RI/FS.
          Provide the state an opportunity to be a party to any enforce-
          ment document in which it chooses to participate.
          Recognize that the agreement does not limit the ultimate
          enforcement authority of EPA or the United States government.
EPA and the state also may include die following articles in the SMOA as
suggested in the "Interim Final Guidance on Preparation of Superfund
Memoranda of Agreement (SMOA)":

   •   Introduction and statement of purpose.
   •   Agreement concerning roles and responsibilities.
   •   Lead state agency designation.
   •   Site-specific designation of lead/support agency.
   •   Remedial Project Manager (RPM)/support agency coordinator
      designations.
   •   Support agency concurrence.
   •   Points of contact.
   •   Planning/coordination  processes.
   •   Removal actions.
   •   Enforcement expectations and policy.
   •   Federal facilities contacts and process.
   •   Processes to be defined.
   •   Consultation, agreement, and concurrent processes.
   •   Support agency site-specific review/oversight.
   •   Resolution of disputes.
   •   Exclusion of third party benefits.
   •   Negation of agency relationship.
Subpart K of the NCP addresses roles of the state, federal facilities, and EPA
in SMOAs, Interagency Agreements, and other processes.
Reference
OSWER Directive 9375.0-01, "Interim Final Guidance on Preparation of
Superfund Memoranda of Agreement (SMOAs)" (May 8, 1989).

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 14—14   State Involvement in CERCLA Enforcement
14.2.H
        EPA
 Approval
   of State
Remedies
14.2.1
      State
Voluntary
  Cleanup
Programs
EPA retains remedy selection authority when the response is Fund-financed.
States retain remedy selection authority when they are acting under state
authority without a CA with EPA. EPA, however, may not be bound by a
state-selected remedy unless die Regional Administrator has expressly
concurred in writing.  At non-Fund-financed state-lead enforcement sites
where the state does not have a CA with EPA, a state may proceed without
EPA concurrence and adoption of the ROD for the site.
The Agency's potential for achieving cleanup goals can be optimized by
including appropriate state-lead enforcement sites. This is advantageous
where states have developed a willingness and ability to manage such sites
within reasonable time frames.
The Pilot Remedy Selection By Selected States and Tribes Superfund
Reform offers a furdier opportunity to use the capabilities of states to help
achieve cleanup goals. The reform established a pilot program in which
states and tribes enter into agreements with EPA allowing diem to supervise
die remedy selection process at certain NPL sites with reduced EPA over-
sight. EPA must  concur on die final ROD. This program is also discussed
in Chapter 7, Selection of Remedy.

More dian thirty  states now have VCPs under which private parties that
voluntarily agree to clean up a contaminated site are offered some protec-
tion from future state enforcement action at die site, often in die form of a
"no further action" letter or "certificate of completion"  from die state.  Such
state commitments do not affect EPA's authority to respond to actual or
threatened releases of hazardous substances under CERCLA. However, EPA
guidance on VCPs encourages regions to use die negotiation of voluntary
cleanup plan MOAs as an opportunity to define a division of labor between
die region and die state by defining what kinds of sites should  be addressed
under a VCP.  EPA guidance provides model language, presented in part
below, for stating a region's intended treatment of sites participating in a
VCP covered by a MOA:

      Although nodiing in diis MOA constitutes a release from
      liability under applicable federal law, generally EPA does not
      anticipate  taking removal or remedial action at sites involved
      in this VCP unless EPA determines diat diere may be an
      imminent  and substantial endangerment to public health,
      welfare, or die  environment.

EPA guidance describes six baseline criteria diat it employs to evaluate the
adequacy of state  VCPs. These criteria are to be considered when negotiat-
ing a MOA. A VCP should:

   •  Provide opportunities for meaningful community involvement.
   •  Ensure diat voluntary response actions are protective of human
      healdi and die  environment.

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                                                                14-15
   •    Have adequate resources to ensure that voluntary response actions
       are conducted in an appropriate and timely manner, and that both
       technical assistance and streamlined procedures, where appropriate,
       are available from the state agency responsible for the VCP.
   •    Provide mechanisms for the written approval of response action plans
       and a certification or similar documentation indicating that the
       response actions are complete.
   •    Provide adequate  oversight to ensure that voluntary response actions
       are conducted in a manner that ensures protection of human health
       and die environment.
   •    Show the capability, through enforcement or other authorities, of
       ensuring completion of response actions if the volunteering party
       conducting the response action fails or refuses to complete the
       necessary response actions, including operation and maintenance or
       long-term monitoring activities.
Reference
OSWER/Office of Enforcement and Compliance Assurance (OECA)
Memorandum, "Interim Approaches for Regional Relations with State
Voluntary Cleanup Programs" (November 14, 1996).

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  14—16  State Involvement in CERCLA Enforcement
14.3
14.3.A    Superfund
     Comprehensive
  Accomplishments
                    Plan
14.3.B
CERCLIS 3/
 WasteLAN
Planning and Reporting Requirements

EPA defines state-lead enforcement as the state having primary responsibil-
ity for a site.
In order to increase the contribution of state-lead enforcement sites toward
CERCLA cleanup goals and to encourage state enforcement activity, it is
important that funding be placed where the most evident environmental
results can be achieved.  Moreover, the necessary coordination between the
federal government and states can only work when funds are planned and
reported for, as this section illustrates.
The following planning and reporting issues are presented in this portion of
the  chapter:

  •  Superfund Comprehensive Accomplishments Plan (SCAP) process
      related to state enforcement.
  •  State-lead enforcement and related mandates.
  •  Classification of site leads.
  •  Comprehensive Environmental Response, Compensation, and
      Liability Information System 3/ Waste Local Area Network
      (CERCLIS 3/WasteLAN) and related Agency and state responsibili-
      ties.
  •  Different types of state leads.

Regions are required to report progress on state enforcement-lead sites as
they would any other site.  This includes state enforcement leads where
there is federally financed work performed by the state with a state enforce-
ment component and work financed by the PRP under a state order
through which no EPA oversight support or money is provided (additional
information on activity and event lead codes is presented later in this
chapter).
After a hazardous waste site is identified, EPA or a state initiates an investi-
gation to  identify PRPs associated with the site. On the basis of this
preliminary PRP search, EPA (in coordination with the state) may make an
initial determination of how cleanup of the release will be managed and
who will initiate enforcement actions under CERCLA.  The decision to
classify a site as a state enforcement-lead response is based on the site
history, strength of legal evidence, and die national significance of die site.

The relationship of states to the budgetary planning process is graphically
presented in Exhibit 14-1. The relationship begins when the regional
office, together with the state, determines activity and event targets for
SCAP. These targets are reviewed by EPA Headquarters through CERCLIS
3/WasteLAN and are used to revise SCAP and to determine the case
budget.
The CERCLIS 3/WasteLAN system uses a series of activity and event codes
to designate the lead agency.  A discussion of these codes follows.

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14-1   Relationship of States to Budgetary Planning Process
                                                                                              14-17
                                                                                      State and
                                                                                      region interact
                                                                                      to determine
                                                                                      budget targets,
                                                                                      activity targets,
                                                                                      and event lead
                                                                                      designation
                                                                                      through the
                                                                                      SCAP process
                                                              Enforcement      Remedial
                                                               Activities        Events
                                                               SEorFE     S,TR,SN,SR,PS
                                                   I             I             I
                                                               SCAP
                                                                SCAP
                                                                 Case
                                                               Budget
                                                                    $
                                                                                      Data from
                                                                                      regions
                                                                                      entered into
                                                                                      CERCLIS3/
                                                                                      WasteLAN
                                                                                      system
                                                                                      Headquarters
                                                                                      and regional
                                                                                      review of data
                                                                                      in CERCLIS3/
                                                                                      WasteLAN
Headquarters
determines
funding level
in case
budget
(including
funds for
cooperative
agreements)

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  14—18   State Involvement in CERCLA Enforcement
14.3.B.1
14.3.B.2
Activity    A lead code must be placed in CERCLIS 3/WasteLAN for all events and
  Leads    activities. For RI/FS, RD, RA, Operation and Maintenance, and enforce-
             ment activities, the lead codes identify the entity performing the work.
             There are several possible enforcement activity leads the state may assume at
             a site.
             SCAP defines the following codes to designate enforcement activity leads:

                •   SE - SE stands for state enforcement. This code is used to designate
                   enforcement activities initiated by a state using its own enforcement
                   authorities to clean up sites. Fund dollars are used to pay or partially
                   pay for the enforcement and response activities at state enforcement
                   lead sites through CAs. SE could therefore be used for RI/FS and
                   RD/RA negotiations.
                •   FE - FE stands for federal enforcement site, where Fund money is
                   being used to pay for the enforcement activities.

  Event    Event types are codes for a specific response, a non-response, or a support
  Leads    event within die pre-remedial, remedial, removal, and community involve-
             ment components of die Superfund program.
             States or tribes have a role in die following event codes:

                •   S - S stands for state-lead site where events are paid with Fund
                   dollars.
                •   TR - TR stands for tribal-lead site where events are paid with Fund
                   dollars.
                •   SN - SN is used to designate state-funded events where no Fund
                   expenditures are involved.  Site events are undertaken solely by the
                   state and paid for by state authorities. SN applies to response events
                   (RI/FS, RD, RA, removal).
                •   SR - SR stands for state enforcement/responsible party financed and
                   is used to designate events where the  state has an administrative or
                   judicial order requiring the PRPs to do the response work. There is
                   no federal concurrence on the remedy, and no state/EPA agreements
                   or CAs covering the site.
                •   PS - PS is used for a PRP response under a state order, when Fund
                   money is supporting CAs with states  conducting state-lead oversight;
                   or for sites not receiving Fund money that receive EPA oversight
                   through SMOAs, state/EPA agreements  or CAs.
             Reference
             OSWER Directive 9200.3-14-ID, SuperfuneL'OilProgram Implementation
             Manual (updated biennially).
             SCAP/OIL Quick Reference Coding Guide.

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                                                                                         14-19
14.4
14.4. A          Forum
             Shopping
                by PRPs
14.4.B   Overseeing
                   State
             Oversight
                of PRPs
14.4.C           SCAP
                Targets
14.4.D      Standard
               Planning
             Time Line
14.4.E           SMOA
        Development
14.4.F
        State
Challenges
  to RD/RA
    Consent
    Decrees
Potential  Problems/Resolutions

This section discusses specific issues RPMs may confront during state
enforcement activities and suggests methods for resolving these issues.

This situation occurs when PRPs negotiate separately with state and federal
authorities to identify their best deal.  The PR? is unable to get liability
releases from federal and state authorities unless a joint decree is signed
(however, a joint decree doesn't guarantee releases; releases must be negoti-
ated as part of the settlement). Moreover, PRPs should be interested in the
process of deletion from the NPL.  EPA can delete a site  from the NPL only
if the site meets standards set forth in the NCP, not if it meets only a state's
requirements. Therefore, RPMs need to make it clear to PRPs that it is in
their best interests to work with both  EPA and die state in developing a
setdement.
To avoid delays in the project because of poor quality work, a vigorous
oversight effort is necessary. The RPM must make sure the state is aggres-
sive in its oversight efforts and should work closely with state  officials to
make sure the work conducted is of acceptable quality. For example, the
RI/FS must be of sufficient quality to support the ROD.

When states delay discussions with the regions concerning dieir SCAP
targets, it is difficult to monitor progress. It is imperative that states be
viewed as partners with the region. With a state-lead project, EPA should
work closely with the state to identify start and close dates for activities
listed on the SCAP so diat target figures will be accurate.

If regions do not complete their schedule dirough die RA phase, their
budget could be short-changed. For planning SCAP budget projections,
the RPMs should use the Standard Planning Time Line or Regional Time
Line until better  planning information becomes available for projecting stari
and completion dates for events. These dates are critical for budget
projections and influence budget estimates for upcoming years.

When the state wishes to negotiate a SMOA, EPA must do so. However,
EPA may not require diat die state draft a SMOA. In general, regions and
states should work to encourage development of SMOAs.

Pursuant to CERCLA section 121(f)(2)(B), states can challenge ARARs in
CDs. These challenges can be a major source of delay. RPMs should
establish and maintain contact with the state throughout die process to
avoid delays.

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15. Records
Management

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                                                                          15-i
               Chapter 15 Records Management


15.1  Description of Activity	1

15.2  Procedures and Interactions	2

      15.2.A   Site Files	2
              15.2.A.1 Remedial Site Files	2
                     15.2.A.1.1 File Content and Structure	2
                     15.2.A.1.2 Collection of Field Data	2
                     15.2.A.1.3 File Management Process	2
              15.2.A.2 Removal Site Files	5
                     15.2.A.2.1 File Content and Structure	5
                     15.2.A.2.2 Collection of Field Data	5
                     15.2.A.2.3 File Management Process	5
      15.2.B   Administrative Record Files	5
              15.2.B.1 File Content and Structure	7
              15.2.B.2 EPA Roles	7
              15.2.B.3 Involvement of Other Parties	10
              15.2.B.4 Community Involvement	11
                     15.2.B.4.1 Remedial Actions	13
                     15.2.B.4.2 Removal Actions	13
              15.2.B.5 Excluded and Privileged Information	14
              15.2.B.6 Post-Decision Information	14
              15.2.B.7 Certification	15
              15.2.B.8 Models	15
      15.2.C   Cost Documentation File	16
              15.2.C.1 File Content and Structure	16
              15.2.C.2 File Management Process	17
      15.2.D   Storage and Maintenance of the Records	17
              15.2.D.1 Superfund Document Management System	17
              15.2.D.2 File Maintenance	19
                     15.2.D.2.1 Disposition of Inactive Records	'.	19
                     15.2.D.2.2 Vital Records	19
15.3  Planning and Reporting Requirements	20

      15.3.A   Setting Priorities	20
      15.3.B   Planning	20
      15.3.C   Budget	20
15.4  Potential Problems/Resolutions	21

      15.4.A   Space	21
      15.4.B   Transporting the Record to the Site	21
      15.4.C   Regional Counsel and RPM Involvement	21

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15—ii    Records Management

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                                                                                          15-1
                  Chapter 15  Records Management

15.1                        Description of Activity

                             Records Management is critical to the success of the Superfund enforcement
                             program.  Due to the involvement of numerous federal and state agencies,
                             contractors, Remedial Project Managers (RPMs), On-Scene Coordinators
                             (OSCs), and Potentially Responsible Parties (PRPs) at a site over a poten-
                             tially extended time period, good file organization is necessary to document
                             site activities. Within Superfund, there are three primary areas of file
                             management: the site file, the Administrative Record (AR) file, and the cost
                             documentation file.
                             The site file contains all acquired site-specific information.
                             The AR file is a subset of the site file.  As mandated by section 113(k) of the
                             Comprehensive Environmental Response, Compensation, and Liability Act
                             (CERCLA), the AR contains all the documents that form the basis for die
                             decision to select a CERCLA response action and acts as a vehicle for public
                             participation in the selection of the response action. Proper compilation
                             and maintenance of the AR file is crucial because, under section 113(j) of
                             CERCLA, judicial review of issues concerning the adequacy of any response
                             action is limited to the information  contained in the AR.  Note diat diere
                             may be other ARs to support other decisions taken by the Agency (e.g., a
                             deletion AR).  The documents that should be included in AR files support-
                             ing odier decisions are identified in guidances addressing those decisions.
                             The'cost documentation file consists of Headquarters and regional docu-
                             mentation of expenditures diat is required in order to recover Fund expen-
                             ditures under section 107 of CERCLA.

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  15—2     Records Management
15.2
15.2.A
        Site
       Files
15.2.A.1

15.2.A.1.1
  Remedial
  Site Files
          File
Content and
   Structure
15.2. A. 1.2      Collection
             of Field Data
15.2. A. 1.3             File
             Management
                   Process
Procedures  and  Interactions
The site file consists of all information generated or received for a site.
There are two kinds of site files:

   •   Remedial site files - Consist of all acquired information for a
      Remedial Action (RA).
   •   Removal site files - Consist of all acquired information for a
      removal action.
This section discusses aspects of both  kinds of site files, including their
content and structure, the collection of field data, and file management
responsibilities. Note that die removal site file and remedial site file may be
merged at a site where both removal and remedial actions take place.
There is no one way  to organize files.  This chapter gives recommendations
and refers to model file structures that are available.  Regions may want to
add their own file structure to diis handbook.
The RPM is responsible for developing and maintaining accurate and
complete files of die  activities pertaining to the site.

The remedial site file should contain all  documents acquired during die
remedial response. The document inventory and filing system may be based
on serial identification numbered documents or other coding systems. These
systems may be manual or automated. A suggested file structure widi
sample contents is  illustrated in Exhibit 15-1.

Site-specific data quality objectives will govern the data management
methods used, and the site's Quality Assurance Project Plan/Field Sampling
Plan will identify both field and analytic data to be acquired and the
standard operating procedures to be used. A data security system must be
implemented to safeguard die chain of custody records and document
control for field data. More specific guidance is available in "Data Quality
Objectives for Remedial Response Activities."

The RPM should complete the appropriate forms and reports and file diem
according to die regional file structure.  Files should be distributed to the
regional office from the site regularly, and as soon as possible, to assess dieir
applicability to response selection, to determine if die documents should be
copied and/or stored in die region, and to submit financial documents for
processing.  Documents that are selected to be pan of the AR should  be
copied from die site file and maintained in a separate AR file. CERCLA
requires that the AR  file be available to die public at or near die facility at
issue. The site file, however, is generally not available for public review
because it contains draft documentation and privileged materials. Docu-
ments in the site file  are subject to disclosure in response to Freedom  of
Information Act (FOIA) requests unless die documents fall within a FOIA
exemption.  Privileged documents should be clearly marked prior to filing
to facilitate responding to document requests  later.

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15-1   Model Remedial File Structure
                                                                                              15-3
        Congressional
          Inquiries
Transcripts
Testimony
Published Hearing Records
         Preliminary
        Investigation
         Documents
Initial Investigation
Preliminary Assessment
Site Inspection
Hazard Ranking System
  Scoring Package
       Remedial Planning
          Documents
Work Plans for RI/FS
RI/FS Reports
Health and Safety Plan
QA/QC Plan
Record of Decision (ROD) and ROD
  Responsiveness Summary
          Remedial
       Implementation
         Documents
Remedial Design Reports
Permits
Contractor Work Plans
Progress Reports
US Army Corps of Engineers (USAGE)
  Agreements, Reports
            State
        Coordination
         Documents
Cooperative Agreement
Superfund Memorandum of
  Agreement (SMOA)
State Quarterly Report
Status of State Assurances
Interagency Agreements (lAGs)
         Community
         Involvement
         Documents
Interviews
Community Involvement Plan
Meeting Summaries
Transcripts
Responsiveness Summary
Correspondence
                                                            Media Reports
                                                           ^•^v^v^.JJ^Jr^^^J

-------
 15-4    Records Management
15-1  (cent.)
Model Remedial File Structure
          Imagery
          Remedial
        Enforcement
          Planning
                                      Status Reports
                                      Administrative Orders
                                      Cross Reference to Confidential
                                        Enforcement Files
                                      Notice Letters
                                      104(e) Letters
           Remedial
         Enforcement
        Implementation
                                      Consent Decrees
                                      RD/RA Status Reports
                                      Cross Reference to Confidential
                                        Enforcement Files
         Contracts
                                      Site-Specific Contracts
                                      Procurement Packages
                                      Contract Status
                                      Notifications
                                      List of Contractors
          Financial
         Documents
                                      Cross Reference to Other
                                        Financial Files
                                      Contractor Cost Report
                                      Audit Reports
                                      Enforcement Support Services (ESS)
                                        Reports
                                      Technical Assistance Team (TAT)
                                        Reports

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                                                                                                15-5
15.2.A.2        Removal
                 Site Files
15.2.A.2.1              File
              Content and
                 Structure
15.2.A.2.2      Collection
              of Field Data
15.2.A.2.3             File
             Management
                   Process
15.2.B  Administrative
            Record Files
Removal site file management has typically been the responsibility of the
OSC, with assistance from other EPA regional staff, contractors, and the
U.S. Coast Guard Strike Team.  Each region should clearly assign responsi-
bility for each of the file management functions.

Removal site files include documentation of all aspects of the removal:
operational, legal,  financial, community involvement, and technical. Each
region should have a site file structure that can be used consistendy at each
site.  All file structures used by the regions should include the same mini-
mum set of information. See Exhibit 15-2 for an example of a model file
structure and component documents.

Data-gadiering activities based on site work plans or field sampling plans,
are documented daily in die field logs. Guidance for quality assurance of
field samples may  be contained in the quality assurance/quality control
project plans for the removal site. A data security system should be imple-
mented to safeguard chain of custody records and document control
procedures for field data.

Similar to RPM responsibilities for die remedial site file, the OSC should
complete die appropriate forms and reports (such as action memoranda,
work reports, and  time sheets) in a timely fashion and file them according
to the regional file structure. Files should be distributed to die regional
office from the site regularly, and as quickly as possible, to assess their
applicability to the response selection, to determine if the documents should
be copied and/or stored in the region, and to submit financial documents
for processing. Documents diat are part of die AR should be copied from
die site file and maintained in a separate AR file. The site file, unlike the
AR file, need not be available for public review, but is subject to FOIA. The
following section offers guidance on documents to be included in the AR.
Reference
Office of Solid Waste and Emergency Response (OSWER) Directive
9355.07B, "Data Quality Objectives for Remedial Response Activities"
(March 1987).

The AR contains the documents that form die basis for the selection of
CERCLA response actions. Section 113(k)(l) of CERCLA requires diat the
Agency establish ARs for the selection of CERCLA response actions.
Section 113(k)(2)  of CERCLA requires diat the public have the opportu-
nity to participate  in die development of die AR.  This section discusses the
major requirements for die AR with regard to content and non-EPA
involvement, and some specific requirements for different types of Super-
fund actions.  Although die terms "AR file" and "AR" often  are used
interchangeably, die "AR file" refers to die collection of documents diat
have been selected from the site file for inclusion in die AR before a deci-
sion document is signed. After the decision document is signed, die AR file
becomes die "AR." Detailed information on compiling the AR file for
selection of response actions is contained in die 1990 AR guidance.

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 15—6    Records Management
15-2   Model Removals File Structure
         Operational
           Matters
         Documents
Pollution Reports
Action Memoranda
Action Memorandum Amendments
Site Safety Plans
Work plans
Progress Reports
            Legal
         Documents
                                                             Access Agreements
           Financial
          Documents
Daily Work Reports
Delivery Orders
1900-55S
Travel Vouchers
Time Sheets
Contract Invoices
Personnel/Equipment
  Logs
         Community
         Involvement
         Documents
                                                             Records of Communication
                                                             Community Involvement Plan
                                                             Correspondence
Media Articles:
          Technical
         Documents
                                                             Sampling and
                                                               Analysis Data
                                                             Investigations
                                                             Waste Profiles
                                                             Maps and
                                                            j Photographs

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                                                                                                15-7
15.2.B.1
           File
Content and
    Structure
15.2.B.2
   EPA Roles
References
National Oil and Hazardous Substance Pollution Contingency Plan (NCP),
40 Code of Federal Regulations (CFR) section 300.800 ("Establishment of
an administrative record") (1990).
OSWER Directive 9833.3A-1, "Final Guidance on Administrative Records
for Selection of CERCLA Response Actions" (December 3, 1990).

The record should consist of the documents considered or relied upon in
the selection of a CERCLA response action, regardless of whether the
documents support or oppose the Agency's selected action.  Voluminous
documents may be referenced in the AR file and made available to the
public upon request.  Documents in the AR file should include relevant
writings, graphs, charts, photographs, and data compilations, but die file
should not include physical samples.  Documents should be compiled as
they are generated or received and made available at or near the site when
the Remedial Investigation (RI) is begun. See Exhibit 15-3 for a sample file
structure and list of documents that, if considered or relied upon for the
selection of response at a site, must be included in the AR file. The list is
not exhaustive. The record file should contain any information on which
the response action was based. Documents generated or received for a site,
but not relevant to the response selection process, should not be included in
the AR file.
Reference
NCP, 40 CFR section 300.810 ("Contents of the administrative record
file") (1990).

The OSC, RPM, enforcement staff, regional counsel, Community Involve-
ment Coordinator (CIC), contractors, and the AR coordinator are all
involved in establishing AR files. The AR coordinator has  the duty of
ensuring adequate compilation and maintenance of die record files but is
not responsible for deciding which documents to include in die files.  Those
decisions should be made by die OSC or RPM in consultation with re-
gional counsel. Exhibit 15-4 identifies recommended roles for AR develop-
ment.
When diere is a question about including certain documents in the AR file,
such documents can be segregated and reviewed by the RPM and die
regional counsel at 3- or 4-mondi intervals (diis should be done more often
for removals). At critical times, such as prior to die public comment period,
the issues regarding these documents should be resolved and, if appropriate,
the documents included in die record file.
Each separate response action at a site (remedial action operable unit,
interim action, or removal action) should be supported by an AR file.
Guidance does allow  information relevant to one response decision to be
referenced in AR files for odier/subsequent response decisions.  The record
file must be available to die public at or near die facility at issue. Public

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  15—8    Records Management
15-3  Model Administrative Record File Structure
          Site
      Identification
    Background
    Site Inspection
    Preliminary Assessment
    Site Investigation
    Previous Operable Unit Information
        Removal
        Response
    Sampling & Analysis Plan
    Data (possibly located elsewhere but
       incorporated by referenceVChain of
       Custody Forms
    Engineering Evaluation/Cost Analysis
       (EE/CA) Approval Memorandum
       (for non-time-critical actions)
    EE/CA
    Action Memorandum & Amendments
        Remedial
       Investigation
    Sampling & Analysis Plan
    Data (possibly located elsewhere but
       incorporated by referencel/Chain
       of Custody Forms
    Work Plan
    Rl Reports
        Feasibility
        Study (FS)
    Applicable or Relevant and Appropriate
       Requirements (ARAR) Determinations
    FS Reports
    Proposed Plan
    Supplements and Revisions to the
       Proposed Plan
        Record of
      Decision (ROD)
    ROD
    Amendments to the ROD
    Explanations of Significant
       Differences
          State
      Coordination
C
Cooperative Agreements/
  SMOAs
State Certification
  ofARARs

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                                                                                         15-9
15-3 (cont.)  Model Administrative Record File Structure
     Enforcement
     Documents
Enforcement History
Endangerment Assessments/Risk
  Assessments
Administrative Orders
Consent Decrees
Affidavits
Documentation of Technical Discussions
  with PR Ps
Notice Letters and Responses
       Health
    Assessments
                                                        ATSDR Health Assessments
       Natural
      Resource
      Trustees
Notices Issued
Findings of Fact
Reports
     Community
     Involvement
Comments/Responses
Community Involvement Plan
Public Notices
Public Meeting Transcripts
Fact Sheets & Press Releases
Responsiveness Summary
Late Comments
  Technical Sources/
      Guidance
     Documents
EPA HQ Guidance
EPA Regional Guidance
State Guidance
Technical Sources

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 15—10   Records Management
                              participation in the process is discussed later in this chapter and in more
                              detail in Chapter 13, Community Involvement.

                              15-4   Recommended Roles for Administrative Record
                                      Development
Tasks
Develop compilation
schedule & procedures
Develop maintenance
and update procedures
Coordinate efforts to
obtain necessary
documents
Technical/legal review
of documents & index
Screen privileged
documents
Check adequacy &
completeness of AR
Organize & photocopy
documents
Make site repository
arrangements
Issue public notices
RPM/
OSC


X
X
X
X

X

RC


X
X
X
X



ARC
X
X
X




X
X
CIC


X




X
X
Contractor


X



X


15.2.B.3
Involvement
     of Other
      Parties
The AR file for a federal-lead site should reflect any state or tribal involve-
ment in the selection of a response action (the following discussion of state
involvement also applies to tribes). For guidance on documentation of state
involvement in die response selection, see die "Final Guidance on ARs for
Selection of CERCLA Response Actions."
Where a state has been officially designated as die lead agency, die state
must compile and maintain die AR file in accordance widi the NCP (see 40
CFR sections 300.800-825). The state must transmit copies of key docu-
ments to the EPA regional office. At a minimum, die state as lead agency
must transmit a copy of the index, the Remedial Investigation/Feasibility
Study (RI/FS) work plan, die RI/FS released for public comment,  die
proposed plan, and any public comments received on die RI/FS and the
proposed plan. For purposes of oversight, the state should also send a copy
of any risk assessment, final draft RI, and final draft FS to die appropriate
EPA regional office. Agreements pertaining to die state's roles and responsi-
bilities regarding die AR should be incorporated into die Superfund Memo-
randum of Agreement (SMOA) or cooperative agreement. The record file

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                                                                                                15-11
                                compiled by the state should reflect EPA's participation, comments, concur-
                                rence, and any disagreements at the same stages as are required for state
                                involvement in a federal-lead site.
                                For federal facilities, the lead agency has responsibility for compiling an AR
                                file in accordance with the NCP (see 40 CFR sections 300.800-825). At
                                NPL sites and any other site where EPA is involved in selecting a response
                                action at a federal facility,  the federal agency should transmit key documents
                                to the EPA regional office. At a minimum, the federal agency must trans-
                                mit a copy of the index, the RI/FS work plan, the RI/FS released for public
                                comment, the proposed plan, and any public comments received on the RI/
                                FS and proposed plan. For purposes of oversight, the federal agency also
                                should send a copy of any risk assessment, final draft RI, and final draft FS
                                to EPA.  Interagency Agreements (lAGs) should spell out procedures for
                                compiling and maintaining the record file.
                                Executive Order 13016 (August 28, 1996) delegated authority to issue
                                CERCLA section 106 orders to a number of federal departments that act as
                                federal resource managers, including the Departments of Interior, Com-
                                merce, Agriculture, Defense, and Energy.  Where federal agencies other than
                                EPA issue a CERCLA section 106 order to PRPs, the agency issuing the
                                order is responsible for creating and maintaining the AR supporting that
                                action.
                                References
                                OSWER Directive 9833.3A-1, "Final Guidance on Administrative Records
                                for Selection of CERCLA Response Actions" (December 3, 1990).
                                NCP, 40 CFR part 300, subpart  I ("Administrative Record for Selection of
                                Response Action") (1990).

15.2.B.4     Community    Sections 300.815 and 300.820 of the NCP specify that the ARshall be
             Involvement    made available to the public. In  satisfying this provision, the Agency must
                                comply with all relevant public participation procedures outlined in the
                                NCP (see also Community Relations in Superfund: A Handbook and "Com-
                                munity Relations During Enforcement Activities and Development of the
                                Administrative Record").
                                In general, the AR should document any opportunity for public involve-
                                ment in the selection of a response action. All documents related to the
                                opportunity for public involvement (e.g., notices and fact sheets) and
                                relevant written comments received from the public should be included in
                                the AR file to establish a complete record for purposes of judicial review.

                                The AR also should document the award of technical assistance grants to
                                community groups for use in hiring a technical advisor to help the commu-
                                nity understand technical  information related to the site and participate
                                more effectively in the Superfund process. Information about the establish-
                                ment of a community advisory group and its participation in the Superfund
                                process should also be documented in the AR. Any involvement of the
                                Superfund regional ombudsman in facilitating the participation of commu-
                                nity stakeholders should also be documented.

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15—12   Records Management
                              The AR file should contain relevant information brought to the Agency's
                              attention by the public, including reports, data, and other information
                              generated by outside parties and submitted to the Agency.
                              The Agency should request that substantive verbal comments (either in
                              person or over the phone) be put in writing by the commentor for inclusion
                              in the record file. The commentor should be advised that the obligation to
                              supply the comment in writing rests with the commentor. The Agency may
                              choose to record verbal comments on which it will want to rely.
                              The Agency may respond to comments received prior to a public comment
                              period in various ways, depending on die nature and relevance of a particu-
                              lar comment. The Agency's consideration of such a comment may be in the
                              form of a written response, or reflected by documented actions taken after
                              receiving the comment, or even by changes in subsequent versions of
                              documents. If the Agency responds to a comment, the response should be
                              included in  the record file.
                              The Agency may notify commentors that comments submitted prior to a
                              formal public comment period must be resubmitted or specifically identified
                              during the public comment period in order to receive formal response by the
                              Agency.  Alternatively, the Agency may notify a commentor that the Agency
                              will respond to the comment in  a responsiveness summary prepared at a
                              later date.
                              Significant comments received during a formal public comment period must
                              be addressed in a responsiveness summary (included with die ROD in
                              remedial response actions). The responses may be combined by subject or
                              other category in die AR file. It should be noted that one response can be
                              prepared to  multiple comments of the same nature in order to be most
                              efficient. Comments should be included in the record file in their original
                              form whenever feasible. For further information, consult the "Interim Final
                              Guidance on Preparing Superfund Decision  Documents."
                              In all cases, the Agency should publish a notice of availability of die AR file
                              when the AR file first is made available for public inspection in the vicinity
                              of the site. The notice should explain the purpose of the AR file, its location
                              and availability, and how die public may participate in its development.  The
                              notice should be published in a major local newspaper of general circulation
                              in the area of die site at issue and distributed to persons on the community
                              involvement mailing list. This notice should also be sent to all known PRPs
                              if diey are not already included on the community involvement mailing list.
                              The availability of the AR file will vary depending upon the nature of die
                              response action. Different procedures are oudined below for remedial and
                              removal  response actions.
                              References
                              Community  Relations in Superfund: A Handbook, EPA 540-R-92-009.
                              NCP, 40 CFR section 300.815 ("Administrative record file for a remedial
                              action")  (1990).

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                                                                                               15-13
                               NCP, 40 CFR section 300.820 ("Administrative record file for a removal
                               action") (1990).
                               OSWER Directive 9355-3-02, "Interim Final Guidance on Preparing
                               Superfund Decision Documents" (October 1989).
                               OSWER Directive 9836.0-1 A, "Community Relations During Enforce-
                               ment Activities," (November3, 1988).

15.2.B.4.1        Remedial    Section 300.815 of the NCP requires that the public be provided the
                   Actions    opportunity to review and comment on the AR file for remedial actions.
                               The AR file for a remedial action must be established at the regional office
                               and made available for public inspection at a location at or near the site
                               when the remedial investigation begins.
                               Reference
                               NCP, 40 CFR section 300.815 ("Administrative record file for a remedial
                               action") (1990).
15.2.B.4.2        Removal    Section 300.820 of the NCP requires that the public be provided the
                   Actions    opportunity to review and comment on the AR file for removal actions.
                               These requirements are also discussed in Chapter 2, Removals.
                               Emergency removal actions initiated within hours and lasting less than
                               30 days
                               The AR file must be made available to the public no later than 60 days after
                               initiation of removal activity at the site. The AR file must be maintained in
                               the regional office, but need not be made available at or near the site.
                               Public comment on the AR file should be held when appropriate.
                               Other time-critical removals, including emergency removals lasting more
                               than 30 days
                               The AR file must be made available to the public no later than 60 days after
                               the initiation of removal activity at the site. The AR file must be established
                               at the regional office and made available for public inspection at or near the
                               site. Public comment on the AR file should be held when appropriate.  In
                               general, a public comment period will be considered appropriate if cleanup
                               activity has not been completed at the time  the AR file is made available to
                               the public and if public comments might have an impact on future action at
                               the site. A responsiveness summary on the significant comments received
                               must be prepared and included in the AR file following the public comment
                               period.
                               Non-Time-Critical removals
                               The AR file must be available for public inspection when the engineering
                               evaluation/cost analysis is made available for public comment. The AR file
                               must be available at a central regional location and at or near the site. A
                               public comment period of at least 30 days must be initiated. The notice of
                               public comment period may be combined with the notice of availability of
                               the record file if they occur at the same time. The Agency must respond to

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  15—14   Records Management
15.2.B.5
   Excluded
          and
  Privileged
Information
15.2.B.6
        Post-
    Decision
Information
all significant comments received during the public comment period and
place the comments and the responses to them in the record file.
References
NCP, 40 CFR section 300.805 ("Location of the administrative record file")
(1990).
NCP, 40 CFR section 300.820 ("Administrative record file for a removal
action") (1990).

Documents should be excluded from the AR if diey contain information
that is not considered or relied upon during the Agency's selection of a
response action. Examples of such documents may include contractor work
assignments and cost documentation information. Information relevant to
the selection of the response action that is generated or received after a
decision document is signed should be kept in a post-decision file and may
be added to the record file in certain limited situations.
Some documents in the AR file may be protected from public disclosure on
the basis of an applicable privilege or FOIA exemption.  The RPM/OSC
and regional counsel share responsibility for deciding which  documents are
not subject to disclosure. Any such protected  documents that were consid-
ered or relied on to make the response action decision must be placed in a
confidential portion of the record file. A short description of die informa-
tion in each document in the confidential file  should be inserted in the
portion of die record file available to  the public and included in die index.
Types of privilege include die attorney-client privilege, die attorney work-
product privilege, and die deliberative process privilege. Courts have
interpreted FOIA exemption 5 as encompassing these traditional eviden-
tiary privileges. Furdier information  protected under FOIA includes trade
secrets and commercial or financial information  (exemption  4); personal
information such as personnel or medical files (exemption 6); and certain
investigatory records compiled for law enforcement purposes (exemption 7).
In situations involving attorney-client privilege and deliberative process
privilege, regional counsel should be consulted for proper procedure.

After a decision document is signed, information generated or received by
the Agency should be placed in a post-decision document file, which is
separate from die AR file.  Post-decision documents may be added to the
AR file in limited situations:

   •  If the decision document does not address (or if it reserves) a signifi-
      cant aspect of the response action decision to be made at a later date.
      In such cases, die Agency should continue to add documents to the
      AR file that form die basis for die unaddressed portion of die
      decision.
   •  If there is a significant change in die remedy selected  in the decision
      document.  These changes may be addressed in an explanation of
      significant differences.

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                                                                                               15-15
15.2.B.7    Certification
15.2.B.8
               •   If the Agency receives information that causes it to fundamentally
                   alter the basis of the overall response action. Such changes will
                   require an amended decision document.
               •   If the submitted documents contain significant information, not
                   contained elsewhere in the AR file,  that could not have been submit-
                   ted during the public comment period and substantially support the
                   need to significantly alter the response action.
            Post-decision information may also be added to  the AR file if the Agency
            holds public comment periods after the selection of the response action.
            The Agency may hold additional public comment periods or extend the
            time for submission of public comment on any issue concerning response
            selection.  All significant comments submitted during such  comment
            periods, along with any public notices of the comment period, transcripts of
            public meetings, and Agency responses to the comments, should be placed
            in the AR file.
            References
            NCP, 40 CFR section 300.825 ("Record requirements after the decision
            document is signed") (1990).
            OSWER Directive 9355.3-02, "Interim Final Guidance on Preparing
            Superfund Decision Documents" (October 1989)  (Chapter 8, "Post-ROD
            Significant Changes").

            When a selected remedy becomes the subject of litigation and the record is
            filed in court, the Agency must certify that the AR is complete.  Such
            certification should be signed by the regional administrator's designee after
            consultation with regional  counsel. Any certification of the record should
            be made by program staff, and not legal staff.
            In addition, the region may choose to have the AR coordinator certify that
            the record was compiled and maintained in accordance with applicable
            Agency regulations and guidance, although this second certification is not
            required.
Models   Models of the AR file structure, index, certification, and notice of public
            availability are available as guidance for their preparation.
            References
            Draft Model Regional Records Management Operating Procedures Manual,
            EPA/IMSD-91-020.
            OSWER Directive 9360.2-01, "Model Program for Removal Site File
            Management" (July 1988).
            Region 1 Guidance, "Region 1 Records Center Operations Manual."
            Region 9 Site File Guidance, "Reference Manual for Superfund Staff."

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  15—16   Records Management
15.2.C              COSt   Cost documentation is a cooperative effort among the RPM, OSC, other
        Documentation   Case Team members, regional Financial Management Office (FMO),
                       _..     Headquarters' Financial Management Office (HQ-FMO), Office of Site
                               Remediation Enforcement, and Department of Justice.
                               For the Agency to litigate successful cost recovery actions under section  107
                               of CERCLA, proper documentation is essential.  The Agency bears the
                               burden of proving three elements for cost recovery:

                                 •    Proof of release or threat of release of a hazardous substance from a
                                      facility that caused die Agency to incur response costs.
                                 •    Proof of liability of die responsible party.
                                 •    Proof of expenditures (work performance).
                               To meet this burden, the Agency must meet die usual civil standard of
                               proving all elements by a preponderance of die evidence.
                               Regions should consider cost documentation an on-going process.  Docu-
                               ments should be compiled and organized as soon as die pertinent informa-
                               tion becomes available.

15.2.C.1              File   The cost documentation file should include documents showing both die
             Content and   work performed and die costs associated widi diat work. Work performed
                Structure   documents prove that the response activities were bodi authorized and
                               completed. The cost documentation file should include the following
                               categories of work performed documents:

                                 •    Documents authorizing the performance of work and defining die
                                      scope of that work, including action memoranda, work plans, work
                                      assignments, and Technical Directive Documents (TDDs).
                                 •    Documents audiorizing changes in the scope or cost of work done at
                                      a site, including work plan revisions and contract modifications.
                                 •    Documents providing evidence of the performance or completion of
                                      work at die site, including Form 1955s  (for removals), monthly
                                      technical and financial status reports for Remedial Engineering
                                      Management contracts, and TDD or work assignment completion
                                      forms.
                                 •    State Cooperative Agreements (CAs) or Superfund state contracts.
                                 •    Interagency Agreements (LAGs).
                               The cost documentation file should include documents reflecting the
                               following categories of costs:

                                 •    Site-specific payroll costs (Headquarters and region).
                                 •    Site-specific travel expenditures (Headquarters and region).
                                 •    Site-specific CA costs.
                                 •    Non-site-specific CA costs.

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                                                                                            15-17
15.2.C.2
           File
Management
       Process
15.2.D        Storage
                      and
         Maintenance
                   of the
                Records
 15.2.D.1
   Superfund
   Document
Management
       System
   •   Site-specific indirect costs.
   •   Site-specific Field Investigation Team costs.
   •   Site-specific Technical Assistance Team costs.
   •   Site-specific Enforcement Support Services (ESS) costs.
   •   Site-specific Emergency Response Cleanup Services costs.
   •   Site-specific Contract Laboratory Program costs.
   •   Site-specific Remedial Engineering Management costs.
   •   Site-specific Environmental Services Assistance Team costs.
   •   Site-specific Alternative Remedial Contract Strategy (ARCS) costs.
   •   Site-specific Emergency Response Unit costs.
   •   Site-specific National Enforcement Investigation Center costs.
   •   Site-specific Environmental Photographic Interpretation Center
      costs.
   •   Technical Assistance Grant costs.
   •   LAG costs.
   •   Miscellaneous costs related to Agency response activity.
References
OSWER Directive 9832.0-1 A, 'Procedures for Documenting Costs for
CERCLA section 107 Actions "(January 30, 1985).
OSWER Directive 9832.1, "Cost Recovery Actions Under die Comprehen-
sive Environmental Response, Compensation, and Liability Act of 1980
(CERCLA)" (August 1983).

The cost recovery coordinator, in coordination widi die regional FMO,
coordinates the collection, assembly, and summary of regional cost docu-
ments. It is die RPM/OSC's responsibility to ensure diat the cost recovery
coordinator gets all documents related to contractor work on-site.
For more information on documenting costs and activities, see Chapter 12,
Cost Recovery.

The Superfund records management officer in the region has die  responsi-
bility for maintaining and storing die site files and die AR files. In most
regions,  diere is an AR coordinator who takes responsibility for diose files.
The responsibilities and diose who handle diem differ from region to
region.


The Superfund Document Management System (SDMS) is an automated
imaging and indexing system designed to meet Superfund site file docu-
mentation and records management needs.  SDMS allows regions to
organize site files into an electronic database diat can be stored on optical

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15—18   Records Management
                              disk or CD-ROM. SDMS helps resolve storage problems created by the
                              large volume of site files, facilitates the selection of documents for the AR
                              file, and enhances public access to site documentation.
                              SDMS allows regions to electronically index site file documents by entering
                              data for each document into selected fields (e.g., author, addressee, date,
                              title).  Users can then search these fields to locate documents, each of which
                              can be assigned a unique document number by SDMS. Selected documents
                              can also be scanned and reproduced by SDMS.  Optical character recogni-
                              tion technology also allows the full text of documents to be stored in SDMS
                              (in addition to an image of the document). SDMS relates each documents
                              image to its full text and index entries, allowing searches of scanned docu-
                              ments by any word in the text, any indexed field, or a combination of text
                              and field. At the conclusion of a search, the user may display or print out
                              the image or text of die document.
                              An "SDMS Core Documents" list has been compiled by an SDMS
                              workgroup of regional and Office of Solid Waste and Emergency Response
                              (OSWER) personnel.  The 1990 AR guidance, which identified documents
                              to be included in an AR, provided the foundation for the core documents
                              list. Consequendy, if the core documents are scanned into SDMS, die
                              majority of ARs can be pulled togedier in SDMS. Software is now available
                              that allows regions to create a CD-ROM containing the AR for a site using
                              the document images stored in SDMS.
                              Public access to site documents is greatly enhanced by SDMS. SDMS
                              allows regions to provide the public (and PRPs) with the entire AR for a site
                              on CD-ROM, greatly reducing both the difficulty of obtaining site docu-
                              mentation and the region's use of resources to support dissemination of that
                              documentation to. the public.  SDMS also allows for more efficient response
                              to FOIA requests, as regional or contractor personnel can locate requested
                              documents using SDMS and then provide a response either by printing out
                              the relevant document images or by transferring the images to a CD-ROM.
                              EPA has created a tutorial for public use that instructs the user on how to
                              access documents on the CD-ROM. Regions may also maintain public
                              access modules at which the public may use SDMS to obtain site informa-
                              tion. SDMS includes features that allow die region to restrict public access
                              to confidential information contained in SDMS.
                              SDMS questions and concerns are addressed by the SDMS workgroup,
                              which is headed by Verne McFarland of Region 6 (214-665-6617). The
                              workgroup is working to resolve technology compatibility issues with die
                              goal of connecting SDMS to other EPA databases, .including the Compre-
                              hensive Environmental Response, Compensation, and Liability Information
                              System 3.
                              Reference
                              OSWER Directive 9833.3A-1, "Final Guidance on Administrative Records
                              for Selection of CERCLA Response Actions" (December 3, 1990).

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                                                                                             15-19
15.2.D.2
           File
Maintenance
File maintenance includes a file maintenance plan, development of charge-
out procedures, and documentation of file use. For guidance on file
maintenance procedures and efficient filing procedures, refer to the refer-
ences for diis subsection. In addition, many regions have developed regional
records management manuals.
References
OSWER-IM, "Procedures for the Transfer of Contract Laboratory Program
Files for Storage in the Federal Records Center (FRC)" (August 1992).
Draft Model Regional Records Management Operating Procedures Manual,
EPA/IMSD 91-020.
15.2.D.2.1
   Disposition
    of Inactive
       Records
15.2.D.2.2
          Vital
      Records
Most Superfund records are designated as permanent records and are not
subject to destruction.  Inactive records may be transferred to a federal
records center in accordance with EPA records control schedules. For
general guidance on record disposition, refer to the draft regional records
management manual. Guidance on disposition of Agency records is being
developed by OSWER-Information Management (IM) and the Office of
Information Resources Management (OIRM).  EPA records control
schedules describing records disposition standards for Superfund site
documentation include:

   •   Administrative Records - Superfund Site-Specific (EPA Series No.
      019R).
   •   Removal Site Files - Superfund Site-Specific (EPA Series No. 013A).
   •   Remedial Site Files - Superfund Site-Specific (EPA Series No. 014A).
   •   Superfund Document Management System (SDMS) (EPA Series
      No. 049A).
Reference
Draft Model Regional Records Management Operating Procedures Manual,
EPA/IMSD 91-020.

Vital records are those records deemed crucial to EPA's operation. The vital
records program is designed to protect EPA's vital records in case of disaster
or emergency. OSWER-IM staff at headquarters has established a Super-
fund Document Management Workgroup to address, as one of its tasks,  the
issue of which Superfund documents fall into this category of vital records.
For general guidance on policies and procedures, refer to Chapter 4 of
OIRM's Records Management Manual.
Reference
Office of Information Resources Management 2160, Records Management
Manual (1986).

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 15—20   Records Management
15.3.B       Planning
15.3                       Planning  and Reporting  Requirements

15.3.A        Setting    Regions should set priorities for the order in which they plan to organize
              Priorities    s'te ^^es anc^ cornP^e -A-R5 an<^ cost documentation files. Regions should
                             make a concentrated effort to implement the requirements of the proposed
                             regulations with regard to removal and remedial ARs and cost documenta-
                             tion files compilation.

                             Records management plans for site files, cost documentation files, and AR
                             files are region-specific and depend on the state of the region's record system
                             and the methodology employed.

15.3.C        Budget    Funding for organizing site files is provided from a lump-sum records
                             management budget managed by the Superfund enforcement support
                             section. Most regions will have sites which vary in size and complexity and
                             will have to balance their budgets accordingly.
                             Funding for AR compilation can be obtained through ARCS, ESS, Super-
                             fund Technical Assistance and Response Team  (START), or 8(a) contracts.
                             These contracts may be used for AR compilation for RI/FS (Alternative
                             Remedial Contracting Strategy), removals (START), or PRP oversight
                             (ESS).

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                                                                                       15-21
15.4
15.4. A
        Space
15.4.B   Transporting
           the Record
            to  the Site
15.4.0
     Regional
      Counsel
           and
          RPM
Involvement
Potential Problems/Resolutions

Lack of space for records storage is a common problem in the regions.
SDMS (discussed in section 2 of this chapter) should make it possible for
regions to send the hard copies of files that have been scanned and indexed
into SDMS to a federal records center. Quality control measures should be
taken to ensure the adequacy of SDMS records before hard copies are sent
to a federal records center.

Some regions have experienced difficulty in identifying locations for the
record at or near the site, contacting the facilities, and transmitting the
records to die site. Regions have found that working closely with their
CICs can be helpful in identifying facilities, and, in some cases, transporting
the records.

Regions have experienced difficulty in obtaining adequate and timely
participation by the regional counsel and RPM/OSC in the AR due to their
heavy workloads. Furthermore, the regional counsel and RPM/OSC
perceptions may vary as to what they believe should be included in the AR
file. Several regions have found training to be helpful and that early joint
involvement by the RPM/OSC and regional counsel in record compilation
can facilitate die process.

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16. Targeting Accomplishments
 and Measuring Performance

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Chapter 16  Targeting Accomplishments and

            Measuring Performance

     (Undergoing major revision at the time of this printing.
     The final version will be posted on EPA OSRE's Intranet
            for downloading when available.)

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Glossary

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                                                                                            Glossary-i
                              Enforcement Glossary
The following terms are defined to help the reader understand the discussions in this handbook. Complete and
authoritative definitions are to be found in CERCLA, The National Contingency Plan, Agency Guidance and
Policy and Case Law.
10-point Settlement Analysis: An evaluation of a proposed settlement according to 10 factors prescribed in
    EPA's December 5, 1984 "Interim CERCLA Settlement Policy." The analysis is a privileged document
    prepared and submitted to the Department of Justice (DOJ) by regional counsel for every settlement
    requiring DOJ approval.
Action Memorandum: The primary decision document for a removal action. An action memorandum docu-
    ments the need for a removal response, identifies the proposed action, and explains the rationale for the
    removal.
Administrative Order on Consent (AOC): A legal document that formalizes an agreement reached between
    EPA and one or more Potentially Responsible Parties (PRPs) to address, in whole or in part, the PRPs'
    responsibility for a site. An AOC is legally enforceable, but does not have to be approved by a court. AOCs
    are commonly used when PRPs agree to conduct a removal or Remedial Investigation/Feasibility Study,
    reimburse past costs (where the cost of the response action does not exceed $500,000), or enter a de
    minimis settlement. An AOC may not be used for an agreement to conduct a remedial action.
Administrative Record (AR): The body of documents that forms the basis for the selection of a particular
    response at a site.  For example, the AR for remedy selection includes all documents that were "considered
    or relied upon" to select the response action. An AR must be available at or near every site to permit
    interested  individuals to review the documents and to allow meaningful public participation in the remedy
    selection process.  This requirement does not apply to other ARs, such as those for deletion.
Administrative Record (AR) File: A file consisting of documents that have been selected for inclusion in the
    AR because those documents will be "considered or relied upon" to select a planned response at  a site.
    When the Decision Document (e.g., a Record of Decision) is signed, the AR file becomes the AR  for that
    decision. Except in limited circumstances, such as when a Decision Document is amended, documents are
    not added to the AR after the Decision Document is signed.
Administrative Reforms: An ongoing EPA review of Superfund program policies and administrative proce-
    dures, begun in 1993, and designed to increase the Superfund program's speed, fairness, and efficiency.
Administrative Subpoena: A legal document issued by EPA requiring testimony and, if necessary, the produc-
    tion of documents deemed necessary to the administrative investigation of a  site. CERCLA section
    122(e)(3)(B) authorizes the issuance of administrative subpoenas as "necessary and appropriate"  to gather
    information to perform a Non-Binding Preliminary Allocation of Responsibility or "for otherwise  imple-
    menting CERCLA section 122." The Agency may use administrative subpoenas as initial information
    gathering tools, but prefers using section 104(e) requests before resorting to them.
Advice of Allowance (AOA): The mechanism used by the Office of the Comptroller to distribute funds to the
    regions to  carry out the planned obligations identified through the Superfund Comprehensive Accomplish-
    ments Plan process.
Alternative Dispute Resolution (ADR): A variety of processes that allows parties to resolve their disputes
    without resorting to litigation.  ADR employs neutral third parties to aid in the resolution of disputes
    through methods that include arbitration, mediation, mini-trials, and fact finding.

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   Glossary-it      Glossary
Arbitrary and Capricious: A term used to characterize a willful and unreasonable decision or action of an
    administrative agency or inferior court that is taken without consideration of, or in disregard of, facts or
    without determining principle.  Under CERCLA section 113(j)(2), a court ruling on a challenge to an
    Agency response action decision will apply the "arbitrary and capricious" standard of review. This means
    that the court will uphold the Agency's decision unless the challenger can show that it was arbitrary and
    capricious.
Arbitration: An Alternative Dispute Resolution technique using a neutral third party to hear stipulated issues
    pursuant to procedures specified by die parties. Depending on the agreement of the parties and any legal
    constraints against entering into binding arbitration, the decision of the arbitrator may or may not be
    binding. EPA does not use binding arbitration.
Carve-Out Order An Administrative Order on Consent under which a Potentially Responsible Party (PRP)
    agrees to do a portion of the work required at a site.  EPA may then pursue other PRPs to perform or pay
    for the remainder of the work.
Cashout: A setdement that requires Potentially Responsible Parties (PRPs) to provide up-front financing for a
    portion of a response action instead of performing the work themselves. Mixed-funding and de minimis
    settlements are forms of cashout setdement.
CERCLA Section 106(b) Reimbursement Petition: A petition seeking reimbursement by EPA of the reason-
    able costs plus interest of performing a response action pursuant to a Unilateral Administrative Order. A
    person may be entided to reimbursement if he/she can establish that he/she is not liable for response costs
    under CERCLA section 107(a), or that the Agency's selection of response action was arbitrary and capri-
    cious or otherwise not in accordance with law.
CERCLIS 3: EPA's Comprehensive Environmental Response, Compensation, and Liability Information
    System 3, the national information management system for the Superfund program. CERCLIS 3 invento-
    ries and tracks releases, accomplishments, expenditures, and planned actions at potential and actual
    Superfund sites.
Cleanup Activities: Actions taken to deal with a release or threatened release of a hazardous substance that
    could affect human health or the environment. The term "cleanup" is sometimes used interchangeably
    with the terms remedial action,  removal action, response action, or corrective action.
Coast Guard Strike Team: A special team established by the U.S. Coast Guard to assist OSCs/RPMs in their
    spill preparedness and response duties. A strike team provides trained personnel and specialized equipment
    to assist in training for spill response, stabilizing and containing spills, and monitoring or directing the
    response actions of responsible parties and/or contractors. There are three strike teams, Atlantic, Gulf, and
    Pacific.
Comment Period: Formal period of time provided for the public to review and comment on a proposed EPA
    action, rulemaking, or setdement.
Community Involvement: EPA's program to inform and encourage public  participation in the Superfund
    process and to respond to community concerns and incorporate them into the Agency's decision-making
    process.
Community Involvement Coordinator (CIC): Lead-agency staff member  who works to inform the public
    about and involve the public in  the Superfund process and cleanup actions.
Community Involvement Plan (CIP): A document that identifies techniques used by EPA to communicate
    effectively with the public during the Superfund cleanup process at a specific site. This plan describes the
    site history, nature and history of community involvement, and concerns expressed during community

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                                                                                           Glossary-iii
    interviews.  In addition, the plan outlines methodologies and timing for continued interaction between the
    Agency and the public at the site.
Confidential Business Information (CBI): Privileged information about a business's products, processes,
    operations, and activities. Claims that business information is entided to confidential treatment must
    comport with the requirements of 40 CFR Part 2.
Consent Decree (CD): A legal document, approved by a judge, diat formalizes an agreement reached between
    EPA and one or more Potentially Responsible Parties (PRPs). The CD oudines die terms on which die
    PRP(s) will conduct all or pan of a response action, pay for all or part of a response action, pay past costs,
    cease or  correct actions or processes diat are polluting the environment, or otherwise comply widi regula-
    tions where die PRPs' failure to comply caused EPA to initiate regulatory enforcement actions. The CD
    describes die actions PRPs will take, is subject to a public comment period prior to its approval by a judge,
    and is enforceable as a final judgment by a court.
Contribution: A legal principle that allows a Potentially Responsible Party (PRP) to seek to recover response
    costs from anodier  PRP. Contribution actions arise under CERCLA because joint and several liability
    allows EPA to seek  work or recover response costs from fewer dian all die PRPs who are liable for a hazard-
    ous substance release.  If the Agency setdes widi or wins a case against a sub-group of PRPs, they can seek
    recovery of a proportional share of the response costs from odier PRPs who contributed to die release but
    did not setde with EPA.
Contribution Protection: Immunity from contribution actions by odier PRPs authorized by CERCLA and
    granted  by EPA in  respect of matters covered in an administrative or judicial settlement diat resolves die
    settlor's CERCLA liability.
Cooperative Agreement (CA): Mechanism used by EPA to provide Superfund money to states, political
    subdivisions, or Indian tribes to conduct or support die conduct of response activities. Subpart O of the
    NCP, 40 CFR Part 35, oudines specific response actions that may be conducted using CA funds.
Core Program Cooperative Agreement: A Cooperative Agreement between EPA and a state or tribe for
    funding CERCLA implementation activities diat are not direcdy assignable to specific sites. The Core
    Program is intended to develop and maintain die ability of states and tribes to participate in die CERCLA
    response program.  Core Program funding may be used for a broad range of non-site-specific purposes,
    including die development of generic Community Involvement Plans and Quality Assurance Project Plans,
    the development of legal authorities and enforcement support associated widi efforts to compel Potentially
    Responsible Parties to conduct or pay for studies and/or remediation, and die hiring and training of staff to
    manage  publicly funded cleanups and oversee PRP-lead cleanups.
Cost Recovery: A process by which the United States seeks to recover money previously expended in perform-
    ing any response action from parties liable under CERCLA section 107(a). Recoverable response costs
    include bodi direct and indirect costs.
Covenant Not to Sue: A contractual agreement authorized by CERCLA section 122(f) and embodied in a
    Consent Decree or Administrative Order on Consent, in which die Agency agrees not to sue setding
    Potentially Responsible Parties (PRPs) for matters addressed in die setdement. EPA's covenant not to sue is
    given in exchange for die PRPs' agreement to perform die  response action or to pay for the cleanup by die
    Agency,  and does not take effect until PRPs have completed all actions required by die Consent Decree and
    Administrative Order on Consent. Under CERCLA, die use of covenants not to sue is discretionary. The
    Agency usually agrees to such releases from future liability  only if die terms of die covenant include
    "reopeners."

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   Glossary-iv     Glossary
Data Characterization Package: A package of information that must be included with a Notice of Intent for
    Partial Deletion, including a Partial Site Deletion Collection Form and a map clearly showing the portion
    of the site to be deleted.
Declaratory Judgment: A binding adjudication of the rights and statuses of litigants.  The United States may
    file a claim seeking declaratory judgment on CERCLA liability for past and future response costs at a site.
    If declaratory judgment on liability is granted, the U.S. does not have to prove liability in any future action
    with the defendant.
Deletion Docket: Background materials and records that must be placed in the information repository prior to
    preparing a Notice of Intent to Delete or Notice of Intent for Partial Deletion.
Demand Letter: A written demand for recovery of costs incurred under CERCLA. The primary purposes of
    written demands are to formalize die demand for payment of incurred costs plus future expenditures,
    inform potential defendants of the dollar amount of those costs,  and establish that interest  begins to accrue
    on expenditures. A demand letter may be incorporated into die  Special Notice Letter.
"De micromis" Settlement: An agreement, eidier administrative or judicial, between EPA and parties that
    contributed minuscule amounts of hazardous substances to a site. "De micromis" settlements are entered
    into under die de minimis contributor settlement audiority of CERCLA section 122(g), but do not require
    any payment from settling parties.
De Minimis Contributor: As defined by CERCLA section 122(g)(l)(A), a Potentially Responsible Party (PRP)
    who is determined to be responsible for only a minor  portion of die response costs at a facility based on die
    volume, toxicity, or odier hazardous effects of die hazardous substances contributed to die facility com-
    pared to other hazardous substances at die facility.
De Minimis Landowner: As defined by CERCLA section 122(g)(l)(B), a Potentially Responsible Party who is
    a past or present owner of the real property at which a facility is located and who did not conduct or
    permit the generation, transportation, storage, treatment, or disposal of any hazardous substance at die
    facility, did not contribute to the release or threat of release of a hazardous substance at the facility dirough
    any act or omission, and had no actual or constructive knowledge diat die property was used for the
    generation, transportation, storage, treatment, or disposal of any hazardous substance at the time of
    purchase.
De Minimis Settlement: An agreement, eidier administrative or judicial, authorized by CERCLA section
    122(g), between EPA and  Potentially Responsible Parties for a minor portion of response costs.
De Novo: Generally, a new hearing. At a de novo hearing, the court hears the case as a court of original and not
    appellate jurisdiction.  Under CERCLA, for example, a judge may hear a case de novo if die Administrative
    Record is found to be incomplete or inaccurate.  Such a de novo hearing would allow judicial review diat is
    not limited to the Administrative Record. A potential result ofa.de novo trial is the court selecting the
    remedy.
Discovery: A pre-trial  procedure that enables parties to learn die relevant facts about a case. The Federal Rules
    of Evidence provide for extremely broad discovery. The basic tools of discovery are depositions,  interroga-
    tories, and requests for production of documents. One of the few limitations on die scope of discovery is
    diat the material sought must be relevant to die subject matter of die pending suit, or likely to lead to die
    production of relevant material.
Easement: A legal right afforded to an entity to make limited use of another's real property.  An easement is one
    form of institutional control diat may be required at a Superfund site if all the hazardous substances cannot
    be removed from die site.  Easements may include limiting access or controlling surface activities.

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                                                                                              Glossary-v
Emergency Removal: A removal where the release, or threat of release, requires that on-site cleanup activities
    begin within hours of the lead agency's determination that a removal action is appropriate.
Eminent Domain: The power of the government to take private property for public use.  Under the U.S.
    Constitution, just compensation must be paid to the owners of property so taken.
Enforcement Actions: EPA, state, or local legal actions to obtain compliance with environmental laws, rules,
    regulations, or agreements, and/or obtain penalties or criminal sanctions for violations.  Enforcement
    procedures may vary, depending on the specific requirements of different environmental laws and related
    regulatory requirements.
Enforcement Specialist: An EPA job classification for persons with special expertise in the drafting of General
    and Special Notice Letters, compilation of cost documentation packages, and preparing for negotiations.
Environmental Appeals Board (EAB): The final EPA decision maker on administrative appeals under all
    major environmental statutes diat EPA administers. The Administrator has also delegated to EAB authority
    to rule on CERCLA section 106(b) reimbursement petitions.
Explanation of Significant Difference (ESD): A document that explains a significant change to the Record of
    Decision made when new information is discovered about a site or difficulties are encountered during the
    Remedial Design/Remedial Action phase of cleanup.  An ESD is included in the Administrative Record to
    inform the public of any significant changes that are being made to the selected remedy.
Extraordinary Circumstances: Situations that justify the deletion of standard reopeners in Consent Decrees.
    This release is granted infrequently and in response to unusual conditions related to liability, viability, or
    physical circumstances of the site or Remedial Action.
Federal Lien: A lien in favor of the United States authorized by CERCLA section 107(1) that may be imposed
    on a facility that is subject to a response action. The lien arises when the Potentially Responsible Party
    (PRP) receives written notice of potential liability for response costs under CERCLA, or the Agency
    actually incurs response costs at a particular site. The lien becomes enforceable once it has been "per-
    fected", which requires notice to the PRP of EPA's intent to perfect the lien, and an opportunity to be
    heard.  The lien continues until the PRP's liability is fully satisfied or the claim becomes unenforceable by
    operation of the Statute of Limitations.
Federal Register. A federal government publication that includes proposed regulations, responses to public
    comments on proposed regulations, and final regulations.  The Federal Register is published every working
    day by the Office of Federal Register, National Archives and Records Administration, Washington, DC
    20408. The Federal Register publishes regulations and legal notices issued by federal agencies. These
    include presidential proclamations and Executive Orders, federal agency documents required by Congress
    to be published, and other federal agency documents of public interest. The Federal Register is available to
    the public through public libraries that are Federal Depositories, law libraries, large university libraries, and
    through the Internet (1994 - present).
Federally Permitted Release: As defined by CERCLA section 101(10), a release that complies with the terms
    of a permit issued under federal law, e.g., the Clean Water Act or Clean Air Act. Under CERCLA section
    107(j), the costs of responding to federally permitted releases may not be recovered under CERCLA
    authority.
Fiduciary: As defined by CERCLA section 107(n)(5) a person acting for the benefit of another party,  such as a
    trustee, executor, or custodian.  CERCLA section 107(n) limits fiduciary liability.
Final Close-Out Report (FCOR): A report documenting compliance with the statutory requirements of
    CERCLA and providing a consolidated record of all remedial activities at all of the site's Operable Units.

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   Glossary-vi     Glossary
Five-Year Review: A review of a remedial action to assure that human health and the environment are being
    protected. CERCLA section 121(c) requires such reviews at least once every five years at each site with a
    remedial action that results in hazardous substances remaining at the site.
Force Majeure: A term used to describe circumstances or events that are beyond the control of the parties,
    could not be avoided by the exercise of due care, and therefore excuse non- or untimely performance of the
    terms of an agreement.  Force majeure provisions are included in Administrative Orders on Consent and
    Consent Decrees, and stipulate diat the PRPs shall notify EPA of any circumstances or events that may
    delay or prevent work.
Full Release: An agreement by EPA to release a Potentially Responsible Party from any further liability for
    response costs or work at a site.
Fund: The Hazardous Substance Superfund established by CERCLA to help pay for cleanup of hazardous
    waste sites and for legal action against those responsible for the sites. The fund is financed primarily with a
    tax on crude oil and specified, commercially used chemicals.
Fund-lead: A designation referring to site activities undertaken by EPA with Fund financing.
General Notice Letter (GNL): A notice to inform Potentially Responsible Parties of their potential liability for
    past and future response costs, the possible future use of CERCLA section 122(e) special notice procedures,
    and the  subsequent moratorium and formal negotiation period.
Generator: As defined by CERCLA section 107(a)(3), any person who by contract, agreement, or otherwise
    arranged for disposal or treatment, or arranged with a transporter for disposal or treatment, of hazardous
    substances owned or possessed by such person, by any other party or entity, at any facility or incineration
    vessel owned or operated by another party or entity and containing such hazardous substances.
Good Faith Offer (GFO): A written proposal submitted by a PRP to EPA to perform or pay for a response
    action.  PRPs are given 60 days from the special notice to provide EPA a written GFO. The GFO must be
    specific, consistent with the ROD or Proposed Plan, and indicate the PRPs' technical, financial, and
    management ability to implement the remedy.
Hazard Ranking System (HRS): The principle screening tool used by EPA to evaluate risks to public health
    and the  environment associated with abandoned or uncontrolled hazardous waste sites. The HRS calcu-
    lates  a score based on the potential for hazardous substances spreading from the site through the air, surface
    water, or ground water, and on other factors such as nearby population. This score is the primary factor in
    deciding if the site should be on the NPL and, if so, what rank it should have compared to other sites on
    the list.  A site must score 28.5  or higher to be placed on the NPL.
Indemnification: Reimbursement for or security against loss or damage. Administrative Orders on Consent
    and Consent Decrees contain indemnification provisions diat protect the United States from claims arising
    from the respondents' acts or omissions in carrying out the agreement.
Independent Government Cost Estimate (IGCE): An estimate of the cost of a proposed action developed
    independently by the government for use in evaluating contractor-estimated and actual costs to implement
    the action.
Indian Tribe: As defined by CERCLA section 101(36), any Indian tribe, band, nation, or other organized
    group or community, including any Alaska Native village but not including any Alaska Native regional or
    village corporation, which is recognized as eligible for the special programs and services provided by the
    United States to Indians because of their status as Indians.

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                                                                                             Glossary-vii
Information Repository: The place where the administrative record, current information, technical reports,
    and reference materials regarding a Superfund site are stored.  The EPA or the State establishes the reposi-
    tory in the community as soon as a site is discovered. It provides the public with easily-accessible informa-
    tion.  Repositories are established for all sites where cleanup activities are expected to last more than 45
    days.  Typical community repository locations include public  libraries or municipal offices.
Information Request Letter Formal written request for information authorized by CERCLA sections
    104(e)(2)(A) through (C), issued during an administrative investigation.
Innocent Landowner: A person who purchased or acquired real property without actual or constructive
    knowledge that die property was used for die generation, transportation, storage, treatment, or disposal of
    any hazardous substances.
Institutional Controls: Actions taken to limit future access to or use of a site, including deed restrictions, that
    are implemented to minimize human exposure to hazardous substances remaining on site and/or impacts
    of die Remedial Action.
Joint and Several Liability: Liability of each of several parties to satisfy die whole claim.  When two or more
    Potentially Responsible Parties (PRPs) are involved at a site and die harm is indivisible, each PRP may be
    held individually liable for die cost of die entire response action.
Judicial Review: A court's review  of a decision rendered by a federal agency or department, or a court's review
    of an  appeal challenging a finding of fact or law.  Under CERCLA, for example, die court provides judicial
    review prior to entry of a Consent Decree. In addition, a federal Court of Appeals will provide judicial
    review of an EPA decision upon submission of a petition by a Potentially Responsible Party. The jurisdic-
    tion of the court and die scope of its review are defined by CERCLA section 113(h) and die Judicial
    Review Act, 28 U.S.C.  sections 2341-2351.
Land Ban: Provisions of die 1984 Hazardous and Solid Waste Amendments of RCRA and implementing
    regulations at 40  CFR Part 268 that restrict the land disposal of certain hazardous wastes; formally known
    as die Land Disposal Restrictions.
Lead Agency: The agency diat provides die RPM or OSC who primarily plans and implements cleanup
    actions. This includes EPA, state or political subdivisions, other federal agencies, or Indian tribes.  Other
    agencies may be extensively involved in the process, but the lead agency directs and facilitates activities
    related to a site, often including enforcement actions.
Mediation: An Alternative  Dispute Resolution technique using a neutral party widi no decision-making
    authority to aid the parties in  their negotiations.
Minitrial: An Alternative Dispute Resolution technique using a structured presentation of each party's case to a
    panel of party decision  makers before a neutral "judicial officer" so as to expedite setdement discussions.
Mixed Funding: Settlements whereby EPA setdes with fewer than all Potentially Responsible Parties for less
    than 100 percent of the response costs. The setdement must provide a substantial portion, greater than 50
    percent, of the total response costs and there must be viable non-setdors from which remaining response
    costs may be pursued. The three types of mixed funding setdements are preauthorization, cashout, and
    mixed work.
Mixed Work: A type  of mixed funding settlement whereby EPA and the Potentially Responsible Parties (PRPs)
    agree  to conduct discrete portions of the response action.  Often EPA's portion of die work is paid for or
    performed by other PRPs pursuant to subsequent setdements  or Unilateral Administrative Orders.

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   Glossary-viii    Glossary
Moratorium: The period of time after Special Notice Letters are issued during which EPA may not undertake
    Remedial Investigation/Feasibility Study or Remedial Action work at the site.  EPA also will not seek to
    compel Potentially Responsible Party action at the site during the moratorium.
National Contingency Plan (NCP): The NCP is the major framework regulation for the federal hazardous
    substances response program. The NCP includes procedures and standards for how EPA, other federal
    agencies, states, and private parties respond under CERCLA to releases or threats of releases of hazardous
    substances, and under section 311 of the Clean Water Act, as amended by the Oil Pollution Act of 1990, to
    discharges of oil.
National Priorities List (NPL): The NPL is maintained by EPA and identifies those facilities, sites, or other
    releases that EPA has determined warrant further evaluation to determine what CERCLA-financed Reme-
    dial Action, if any, may be required to protect human health and the environment.
National Remedy Review Board (NRRB): The NRRB reviews proposed Superfund cleanup decisions that
    meet cost-based review criteria to assure they are consistent with Superfund law, regulations, and guidance.
Natural Resource Damages: Damages for injury or loss of natural resources as set forth in CERCLA sections
    107(a) and 11 l(b) and 300.615 of the National Contingency Plan.
Natural Resource Trustees: Federal, state, or tribal officials acting on behalf of the public (or a tribe) as
    trustees for the management and protection of natural resources as described in Subpart G of die National
    Contingency Plan, 40 CFR Part 300.600.
Natural Resources: Land, fish, wildlife, air, water, ground water, drinking water supplies, and other such
    resources belonging to, managed by, or controlled by the United States,  any state or local government, any
    foreign government, any Indian tribe, or any member of an Indian tribe.
Neutral Evaluation: An Alternative Dispute Resolution (ADR) technique using a neutral party to assist a
    negotiation team in evaluating die potential for settlement and/or use of ADR professionals.
No Further Response Needed: The EPA decision diat no further remediation is appropriate for a site deter-
    mined to meet any of the three criteria identified in the National Contingency Plan section 300.425(e)(l).
Non-Binding Preliminary Allocation of Responsibility (NEAR): An allocation of die total cost of response
    among Potentially Responsible Parties (PRPs) at a facility.  CERCLA section 122(e)(3) allows EPA to
    provide NBARs to PRPs to facilitate settlement. An NBAR is not binding on the United States or the
    PRPs and cannot be admitted as evidence in court.
Non-Time-Critical Removal: A removal for which die lead agency, based on a site evaluation, determines diat
    there are more dian six months of planning time available before on-site activities must begin.
Notice of Deletion (NOD): A notice published in the Federal Register announcing a site's deletion from the
    National Priorities List.
Notice of Intent for Partial Deletion (NOIPD): A Federal Register notice  announcing the intent to delete  a
    portion of a site from the National Priorities List.
Notice of Intent to Delete (NOID): A Federal Register notice announcing  the intent to delete a  site from the
    National Priorities List, providing site information, including related cleanup activities, and a 30-day
    public comment period.
Notice of Partial Deletion (NOPD): A notice published in the Federal Register announcing that a portion of
    a site has been deleted from the National Priorities List.
Operable Unit (OU): A designation for a portion of a site with defined boundaries and at which  site actions
    are uniquely  planned, executed, and tracked.

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                                                                                             Glossary-ix
Operation and Maintenance (O&M): Those activities required for maintaining the effectiveness or integrity
    of the remedy once it is constructed or installed.
Orphan Share: A portion of cleanup costs diat is assigned to insolvent or defunct Potentially Responsible
    Parties (PRPs) and which may be allocated to viable PRPs under principles of joint and several liability.
Outputs: Quantitative or qualitative measures of important activities, work products, or actions. The National
    Enforcement and Compliance Assurance Plan groups them under five headings: Enforcement Fairness/
    Reduce Transaction Cost, Removal, Cost Recovery, Construction Completions, and Brownfields.
Owner or Operator: As defined by CERCLA section 107(a)(l) and (2), the owner or operator of a vessel or a
    facility, or any person who at the time of disposal of any hazardous substance owned or operated any
    facility at which such hazardous substances were disposed of. It does not include a unit of state or local
    government that acquired ownership or control involuntarily through bankruptcy, tax delinquency, or
    abandonment.
Partial Deletion: Deletion of portions of a site from  die National Priorities List, including a geographic unit or
    a specific medium.
Performance Bond: A guarantee given by a contractor that a work assignment will be completed according to
    its terms and within the agreed time.
Performance Standards: Provisions in Consent Decrees and Administrative Orders specifying levels of perfor-
    mance that site activities must achieve; often incorporated by reference in the Record of Decision.  The
    inclusion of such performance standards enables die Agency to assure measurable levels of cleanup  that
    provide the desired level of protectiveness.
Person: An individual, firm, corporation, association, partnership, joint venture, commercial entity, the United
    States, or a state, municipality, or interstate body.
Plaintiff: A party who brings a legal action; the party who complains or sues in a civil action and is so named
    on die record.
Potentially Responsible Party (PRP): Any individual or entity including owners, operators, transporters, or
    generators that may be liable under CERCLA section 107(a) for CERCLA response costs.
Potentially Responsible Party (PRP)-lead: Designation for EPA-approved site activities undertaken and
    financed by PRPs.
Preauthorization: A type of mixed funding settlement whereby EPA preauthorizes a claim against die Fund by
    the Potentially Responsible Parties (PRPs) for a portion of their costs of conducting a response action.
    Once the preaurhorization agreement is finalized, the PRPs conduct the response action, as oudined in the
    settlement agreement, petition non-settling PRPs for reimbursement, and, if necessary, seek reimbursement
    from the Fund for the preauthorized amount not received from non-settling PRPs.
Preliminary Site Close-Out Report (PCOR): This report documents the completion of physical construction,
    summarizes site conditions and construction activities, and, as appropriate, provides  the schedule for the
    joint final inspection, approval of the work plan,  and establishment of institutional controls.
Premium: A sum in addition to the cost of the response action that is paid or agreed to be paid by a Potentially
    Responsible Party to cover risks associated with a settlement. For example, a premium may be part of an
    early de minimis setdement due to potential inaccuracy of total response cost estimates or remedy failure.
Privileged: Term used to describe documents, communications, and other information that does not have to be
    disclosed in a legal proceeding, and in some instances is forbidden to be disclosed.

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   Glossary-x      Glossary
Prospective Purchaser Agreement (PPA): An agreement between EPA and a prospective purchaser of con-
    taminated property.  The PPA provides the federal government's promise or covenant not to sue the
    purchaser to recover the cost of cleaning up contamination that existed at the time of purchase.
Recalcitrant Term used to describe a Potentially Responsible Party who fails to cooperate widi EPA in reach-
    ing settlement or fails to comply with a settlement or order.
Record of Decision (ROD): The official Agency Decision Document that describes the  remedial cleanup
    alternatives considered, the selected remedy, and the technical background of the decision, and explains
    how the decision complies with the law.
Recusal: The voluntary or involuntary disqualification of a government official from any involvement in a
    specific matter. Recusals are used to preserve the ethical standards of public service. A recusal generally
    occurs when there is an appearance of a conflict between governmental responsibilities and private interest.
    Once a person is  removed through a recusal, he/she cannot participate in any activity related to the matter
    under consideration; specifically, he/she cannot see any correspondence or participate in any meeting or
    negotiations related to die issue.
Regional Support Division (RSD): The division within EPA's Office of Site Remediation Enforcement that is
    the primary point of contact for EPA regions concerning contemplated civil and administrative enforce-
    ment actions in the Superfund, RCRA Corrective Action, Underground Storage Tank, and Oil Pollution
    Act programs. RSD is responsible for ensuring compliance with and enforcement of applicable EPA
    remediation  statutes and regulations, reviewing civil and administrative cases of national significance, and
    ensuring consistency of individual cases with established EPA policies.
Remand: Return of a case to either a lower court or an administrative agency for further action.
Reopeners: Contractual provisions that preserve the Agency's  right to compel Potentially Responsible Parties to
    undertake additional response actions or to pay costs for Agency response actions in addition to those
    agreed to in the settlement. Reopeners are triggered when previously  unknown conditions at the site are
    discovered, or information previously unknown to EPA is received, that indicates the remedial action is not
    sufficiendy protective.  Reopeners restrict the covenant not to sue by defining the conditions under which
    the setdement may be re-examined.
Responsiveness Summary: Detailed responses to each significant comment that is received during a public
    comment period.
"Sacred clauses": An expression used to describe language in a model document from which a setdement may
    deviate only with die concurrence of the Office of Enforcement and Compliance Assurance.
Superfund Comprehensive Accomplishment Plan  (SCAP) Projection Measure: A regional  estimate of what
    it will accomplish during a reporting period; used to establish numerical goals prior to a fiscal year.
Superfund Comprehensive Accomplishment Plan  (SCAP) Reporting Measure: An actual accomplishment
    of a site activity that is important in monitoring  overall program progress.
Superfund Comprehensive Accomplishment Plan  (SCAP) Targeted Measure: A pre-determined, quarterly
    or annual, numerical goal that is established prior to the fiscal year in  which the designated activities will
    take place.
Secured Creditor Exemption: An exemption from liability set forth in CERCLA sections 101 (20)(A), (E), and
    (F) that applies to lenders (e.g., banks) that, without participating in the management of the facility, hold
    indicia of ownership in a facility in order to protect a security interest  (e.g., a mortgage).

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                                                                                             Glossary-xi
Settlement: The resolution of a claim. Settlement occurs when the federal and/or state agency has a written
    agreement regarding the payment and conduct of specified response actions.  Settlements may be achieved
    administratively through an Administrative Order on Consent or judicially through a Consent Decree.
Settlement Judge: An Alternative Dispute Resolution technique using a judge other than die one hearing the
    case to act as mediator of the parties' setdement discussions. A settlement judge usually gives his/her
    opinion as to the probable outcome of the case.
Severability: Provision in an Administrative Order that the respondent must comply with all other provisions
    of the order should a court invalidate a particular provision.
Site Completion: Completion of all response actions at an NPL site as documented in a Final Close-Out
    Report.
Site Deletion: Removal of a site from the NPL when no further response is needed to protect public health or
    the environment.
Special Account: A site-specific account that may be established under the authority of CERCLA section
    122(b)(3) to hold the future costs component of a cashout setdement to fund future response actions at the
    site.
Special Master: A court-appointed official who oversees the progress of a complex case before it goes to trial.
    The scope of the special master's authority is set forth in an Order of Reference. Special masters are
    appointed only under exceptional conditions, for example, in cases requiring the interpretation of compli-
    cated technical data or voluminous amounts of information.
Special Notice Letter (SNL): A written notice to a PRP providing information on potential liability, condi-
    tions of the negotiation moratorium, future response actions, and a demand for past costs. The SNL is
    authorized  under CERCLA section 122(e)(l) and triggers the start of a negotiation moratorium.
Statute of Limitations (SOL): The statutorily defined period of time within which the United States, on
    behalf of EPA, must file a claim for cost recovery.  If a claim is not filed within the SOL, the United States
    will forfeit its right to recover its costs.
Statutory Penalties: Penalties authorized by a statute. For example, under CERCLA, if Potentially Responsible
    Parties do not comply with an Administrative Order, they may be sued for statutory penalties of up to
    $27,500 per day under section  106(b)(l) of CERCLA as modified pursuant to EPA's Civil Monetary
    Penalty Inflation Adjustment Rule.
Stipulated Penalties: Fixed sums of money that a defendant agrees to pay for violating the terms of a setde-
    ment.  Procedures for invoking and appealing stipulated penalties and penalty amounts are agreed to in the
    Administrative Order on Consent or Consent Decree.
Strict Liability: Legal responsibility for damages without regard to fault or diligence.  The strict liability
    standard in CERCLA means that the federal government can hold Potentially Liable Parties liable without
    regard to their fault, diligence, negligence, or motive.
Subject Matter Expert: Someone who is versed in a specialized area of enforcement, such as Remedial Design/
    Remedial Action setdement tools, and is available as a resource to those involved in the enforcement
    process.
Summary Judgment: Judgment rendered before trial in a civil case because the court finds that there is  no
    genuine issue before it.

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   Glossary-xii    Glossary
Takings: Governmental acts that convert private property to public property.  Takings may arise from acts of
    permanent physical occupancy or from regulation that prevents the owner from making any economically
    viable use of the property. The occupancy or regulatory action need not be permanent to be considered a
    taking. The Fifth and Fourteenth Amendments of the U.S. Constitution bar the taking of private property
    by federal or state governments without just compensation. Under CERCLA, takings issues have arisen in
    connection with occupancy of property by EPA for the purpose of conducting response actions.
Technical Assistance Grant (TAG): A grant of up to $50,000 to enable citizens to hire independent technical
    advisors to help them understand information related to cleanup of a specific Superfund site.
Technical Impracticability Waiver: Waiver of an Applicable or Relevant and Appropriate Requirement
    (ARAR) available under NCP section 300.430(f)(l)(ii)(Q(3) on the ground that compliance with the
    ARAR is technically impracticable from an engineering perspective.
Time-Critical Removal: A removal for which the lead agency determines, based on a site evaluation, that there
    are fewer than six months of planning time available before on-site activities must begin.
Tolling Agreement: An agreement between EPA and Potentially Responsible Parties to delay the running of
    the Statute of Limitations for cost recovery actions.
Transporter: As defined by CERCLA section 107(a)(4), any person who accepts or accepted any hazardous
    substances for transport to disposal or treatment facilities, incineration vessels or sites selected by such
    person, from which there is a release, or a threatened release which causes the incurrence of response costs,
    of a hazardous substance.
Treble Damages: Sum at least equal to but not more than three times the amount of site response costs.  Under
    CERCLA section 107(c)(3), if EPA conducts a cleanup as a result of the Potentially Responsible Parties'
    non-compliance with an Administrative Order, damages may be assessed in the maximum amount of three
    times the amount of the response costs. Damages may be assessed in addition to recovery of response costs.
Unilateral Administrative Order (UAO): An order issued by EPA, authorized by CERCLA section 106,
    requiring the Potentially Responsible Parties to undertake a response action. There must be imminent and
    substantial endangerment to the public health or the environment before such an order can be issued.
Volumetric Ranking: Method of ranking Potentially Responsible Parties' responsibility for cleanup effort
    according to the amount of waste they contributed to a site.
WasteLAN: The regional computer interface with the CERCLIS 3 database.

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On line Information
     Sources

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                                                                                          Sources-i
                       On-Line Information Sources
The following sources offer access to a wealth of EPA Superfund enforcement, technical program, and related
information. Most of the sources offer direct access to documents and odier resources that can be down-loaded
and printed, as well as links to related pages, references, and points of contact. Others, such as NTIS, offer the
opportunity to locate and order documents. Also included are sources of information regarding other federal
departments' hazardous waste site cleanup programs.

   1)  EPA Intranet - These pages are accessible only by EPA employees using EPA computers (and by a
      limited number of EPA contractors who support Intranet operations). EPA Agency-wide Intranet,
      called "EPA@Work" is intranet.epa.gov.  EPA Headquarters Intranet, which carries information pertain-
      ing only to Headquarters, is intranet.epa.gov/hqintran.
      OERR Work Net - From the page itself, "This is OERR's private (Intranet) area on the world wide web.
      Work Net is the place where Superfund and Oil personnel can share information and news, comment
      on draft documents and proposals, keep up-to-date on OERR workgroups, find out about training
      opportunities, and altogether keep each other better informed about the happenings in this ever-
      changing program."
   2)  EPA Public Web Pages - These pages have been created by EPA for public use and are maintained
      through the EPA website.
      •   EPA Homepage - This homepage is the starting point for all EPA programs, offices, issues, etc. widi
          additional links to useful non-EPA resources.
           — http://www.epa.gov
      •   EPA OECA Homepage - This homepage  is the starting point for the EPA Office of Enforcement
          and Compliance Assurance and contains links to EPA programs, offices, and issues related to EPA's
          multi-media enforcement and compliance programs.
           — http://www.epa.gov/oeca
      •   EPA OSRE Homepage - The Office of Site Remediation Enforcement homepage provides informa-
          tion regarding EPA's CERCLA enforcement program organization, responsibilities, and initiatives as
          well as numerous  links to other pages of interest to the  Superfund enforcement community.
           — http://www.epa.gov/oeca/osre.html
      •   EPA OSRE Documents - Available as a Link from the OSRE homepage, this page offers online
          access of OSRE documents.
           — http://www.epa.gov/oeca/osre/osredoc.html
      •   EPA OSWER Homepage - The EPA Office of Solid Waste and Emergency Response homepage
          provides extensive information on EPA's solid and hazardous  waste program organization, operation,
          initiatives, and activities.
           — http://www.epa.gov/swerrims/
      •   EPA Superfund Homepage - The homepage for EPA's Superfund program includes the "Superfund
          Hazardous Waste Site Advanced Query Form," a useful tool for obtaining site information.
           — http://www.epa.gov/superfund
      •   EPA RCRA Homepage - This is die homepage for EPA's RCRA Program.
           — http://www.epa.gov/rcraonline
      •   EPA Envirofacts  - This site provides access to a national information system for a single point of
          access to data extracted from seven major EPA databases.
           — http://www.epa.gov/enviro

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Sources—ii      On-Line Information Sources
    •   Clu-In - Run by the EPA Technology Innovation Office, this site provides information on innova-
        tive-treatment technology to the hazardous waste remediation community.
         —  http://www.clu-in.com
3)  EPA Hotlines
    •   EPA RCRA, Superfund & EPCRA Hotline - The hotline offers easy point-of-access for site and
        program information.
         —  (800)424-9346
         —  http://www.epa.gov/epaoswer/hotline
4)  Other Federal Departments
        Department of Defense - Environmental Cleanup Office Web Page - This web page of the DoD's
        Office of Environmental Cleanup, which is charged widi developing policy and overseeing the
        Defense Environmental restoration Program (DERP).
         —  http://www.dtic.mil/envirodod/about.html
    •   Department of-Defense - Environmental Network and Information Exchange - DENIX provides
        access to environmental legislative, compliance, restoration, cleanup, safety & occupational health,
        security, and DoD guidance information regarding DoD environmental programs.
         —  http://www.denix.osd.mil/
    •   Department of Energy - Environmental Management - The web page of die DOE Office of
        Environmental  Management (EM) provides information regarding the DOE's program to consoli-
        date,  centralize, and promote cleanup of contaminated waste sites and surplus facilities within the
        DOE Complex.
         —  http://www.em.doe.gov/
    •   Department of Justice - Environment and Natural Resources Division - This web page provides
        access to information and resources regarding the Division's responsibilities including prosecution of
        criminal environmental cases, defense of EPA's rulemakings and administrative actions against
        challenge, and enforcement of the nation's environmental laws.
         —  http://www.usdoj.gov/enrd/enrd-home.html
5)  Federal Regulations, Statutes, and Summaries
    •   Federal Register - Database for the 1995, 1996, 1997 and 1998 Federal Register.
         —  http://www.gpo.gov/su_docs/aces/acesl40.html
    •   Code of Federal Regulations (CFR) - Database for the CFR.
         —  http://www.access.gpo.gov/nara/cfr/index.html
    •   Summaries of Environmental Laws Administered by EPA - Summaries of the 12 major statutes
        that form the legal basis for EPA programs can be found on tliis site.
         —  http://www.cnie.org/nle/leg-8.html
6)  Other Resources
    •   Superfund Document Search - Users can search for Superfund-related documents by Number
        (EPA, OSWER, NTIS) or by Keyword.
         —  http://superfund.fedworld.gov/search.html
    •   National Technical Information Service (NTIS) - Users can search for and order Agency docu-
        ments and publications.
         —  http://www.ntis.gov

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Index

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                                                                                           Index—i
                                            Index

104(e) Letter: see Information Request Letter
Ability to Pay (ATP): 3.21; 4.9; 8.17; 8.23; 12.30
Access: 9.34-35
Action Memorandum: 2.5
Administrative Order (AO):
        enforcement of: 2.21
        andPRP:4.l6
        for RI/FS: 5.1; 5.11-13; 5.17
        and RD/RA site access: 9.34
        as an RI/FS SCAP measure: 5.26
Administrative Order on Consent (AOC)/Consent Order 5-17; 2.16
        model: 5.17; 2.17
        and RD/RA negotiations/settlement: 8.1; 8.47
        and RI/FS settlements:  13.12
        replacement of UAO with: 2.21
Administrative Record (AR): 2.5
        and community involvement: 13.15-16; 15.11
        and cost recovery: 12.2
        for selection of remedy: 7.15; Ex. 7-2
Administrative Record (AR) rile: 15.5; Ex. 15-3
        and certification: 15.15
        content and structure of:  15.7
        EPA roles concerning:  15.7
        and excluded and privileged information:  15.14
        and federal facilities: 15.11
        model structure of: 15.8
        and post-decision information:  15.14
        and community involvement:  15.11
        and state as lead agency: 15.10
Administrative Reforms:
        and enforcement program: 1.2

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  Index—ii       Index

Administrative Subpoena: 4.21
Advice of Allowance (AOA):
        andO&M:  10.5
        and state involvement: 14.9
Agency for Toxic Substances and Disease Registry (ATSDR):
        and health assessment: 6.12
        and RI/FS implementation: 6.5; 6.7
Alternative Dispute Resolution (ADR):
        and cost recovery:  12.26
        and enforcement program: 1.4-5
        andOSRE:  1.5
        and poor relations among PRPs: 8.48
        and PRP search: 4.25
Applicable or Relevant and Appropriate Requirement (ARAR): 2.24; 7.4-8
        compliance with: 7.1
        and RI/FS implementation: 6.11; 6.29-30
Arbitration: 1.5
        and cost recovery:  12.26
Bankruptcy:
        and cost recovery: 12.28
        and GNL: 5.6
        and SNL: 5-20
Baseline Report: see Potentially Responsible Party
Baseline Search: see Potentially Responsible Party
Case Budget (CB): 5.25
        and state involvement: 14.15
Case Team:
        formation and responsibilities of: 5.7
        and PRP search: 5.7
Cashout Settlements:
        and AA/OECA concurrence: 8.29
        and settlement tools: 8.28-29
Civil Investigator (CI):
        and baseline report: 4.17-18

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                                                                                       Index—Hi
       and PRP search: 4.4; 4.5; 4.8
       and RI/FS: 5.7
Clean Water Act (CWA): 1.4
Close Out Report (COR):
       and definition of FCOR: 11.2
       and documentation of site completion:  11.4
       and FCOR: 11.1; 11.4
       andRPM:  11.1-2; 11.4
       and site deletion: 11.1; 11.4; 11.6
Community Advisory Group (GAG): 13.8-9
Community Involvement: Chapter 13
       andAR: 13.15-16; 15.11
       andCIC: 13.7; 13.14
       and planning and reporting requirements: 13.17
       and potential problems/solutions: 13.18-19
       PRP involvement in: 13.10
       and public comment: 13.12; 13.13-14
       and remedial actions: 13.11-14
       and removals: 2.22; 13.11
       and selection of remedy: 7.14
       andSCAP: 13-17
Community Involvement Coordinator (CIC); 13.7; 13.14
Community Involvement Plan (CIP): 13-7-8; 13.10; 13.11; 13-14-15; 13.17
Comprehensive Environmental Response, Compensation, and Liability Information System 3/Waste
Local Area Network (CERCLIS 3/WasteLAN):
       and community involvement: 13.17
       and cost recovery: 12.32-35
       and decision documents: 12.34
       and event codes: 14.17
       and O&M: 10.5-6
       and PRP search: 4.5
       and RAGS: 5-16; 6.27
       and RD/RA implementation: 9.24-30
       and RD/RA negotiations/settlement: 8.44-47

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  Index—iv       Index

       and removals: 2.25-30
       and RI/FS implementation: 6.33-35
       and RI/FS negotiations/settlement: 5.25-27
       and site deletion: 11.6; 11.7
       and site management planning: 1.10
       and state involvement: 14.16-18
Confidential Business Information (CBI):
       and cost recovery: 12.14
Consent  Decree (CD):
       draft CD: 8.12
       multiple revisions of: 8.48
       model CDs: 8.12; Ex. 8-4
       and public comment: 13.13-14
       and RD/RA negotiations/settlement:  8.1
       and role in RI/FS negotiations/settlement: 5.1
       and O&M: 10.2
Contractors:  2.25; 7.23; 9-5; 9.18
       and PRP search: 4.8; 4.26
Cooperative Agreement (CA):
       and state involvement: 14.2; 14.5; 14.6; 14.9
Cost Documentation File:
       content and structure of:  15.16
       and cost recovery actions: 15.16
       and file management:  15.17
Cost Recovery:  Chapter 12
       and administrative settlements: 12.25
       for ADR:  12.26
       and arbitration:  12.26
       and ATP settlements: 12.30
       and bankruptcy actions:  12.28
       and budgeting: 12.32
       and case referral: 12.5; 12.10; 12.20;  12.25
       and CBI:  12.15

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                                                                                     Index—v
and CERCLIS 3/WasteLAN reporting requirements:  12.32



for conventional removals: 12.3



and cost summaries:  12.15-16



and "de micromis" settlements: 12.24



and de minimis settlements: 12.23



and demand letters:  12.12



direct costs in: 12.14



documentation procedures for: 12.17



documentation requirements for:  12.13



as enforcement goal: 1.1



and enforcement of settlements: 12.25



and EPA indirect costs:  12.14



and evidence of costs:  12.14



and fraudulent transfer of assets: 12.10



and judicial cost recovery:  12.20



and litigation management plan:  12.22



and litigation referral package: 12.5



and litigation support:  12.21



and mixed funding:  12.26



and notification and demand requirements: 12.11



and orphan share: 12.28



and oversight costs: 12.5



and planning:  12.32



and prioritization of cases:  12.9



and PRP searches: 12.8



forRD/RA: 12.4-5



and records management: 15.16



and referral package:  12.20



and referral to DOJ: 12.5



for remedial sites: 12.2



for removals: 12.3



and role of CRC: 12.13



and role of regional counsel: 12.20

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  Index--vi      Index

        and RSD:  12.7; 12.29
        andSCAP:  12.32
        and SCORES:  12.20
        andSNL: 12.11
        and SOL: 12.10
        and statutory authority: 12.8
        and strategy: 12.9
        and timing: 12.10
        and types of costs: 12.14
        and types of expenditures:  12.14
        and United States  v. Rohm and Haas Co.:  12.6
Covenants Not to Sue: 8.13-15
Data Characterization Package: 11.6
Decision Document (DD): 12.11
        and CERCLIS 3/WasteLAN: 12.34
Demand Letters: 12.12
        and cost recovery: 12.3
"De Micromis" Settlements: 12.24
        and criteria for eligibility: 12.24; 8.32
        and PRP search: 4.20
        and RD/RA negotiations/settlement: 8.32
De Minimis Settlements: 12.23
        and candidate sites:  8.29
        and criteria for eligibility: 12.23; 8.29
        and definition of number of PRPs: 8.47
        early entry into: 5.2
        and PRP search: 4.20
        and RD/RA negotiations/settlement: 8.2-3; 8.29
        and settling with majors involved:  8.49
        timing of:  8.31
Department of Justice  (DOJ):
        and case referral:  12.5; 12.9
        and community involvement: 13.10; 13.14;  13.15
        and concurrence in cost recovery settlement: 12.5; 12.16

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                                                                                         Index—vii
        and enforcement program: 1.13



        and Environment and Natural Resources Division: 8.4



        and notification of RI/FS: 5.22



        and OLS: 8.7



        and post-referral actions: 8.42



        and PRP compliance with information requests: 4.16



        and RD/RA negotiations/settlement: 8.7



        and RI/FS negotiations/setdement: 5.5



Design Engineer: see Remedial Design/Remedial Action - professional



Ecological/Environmental Assessment: 4.11; 4.25



Emergency Planning and Community Right-to-Know Act (EPCRA): 1.15



Emergency Response Notification System (ERNS): 2.29-30; Ex. 2-6



Endangerment Assessment: see Risk Assessment



Enforcement Specialist:



        and role in RI/FS negotiations/setdement: 5.2



        and RPM responsibilities:  8.6



Environmental Assessment: see Ecological/Environmental Assessment



Exceptions to CERCLA Response Authority:



        petroleum: 3.6



        workplace exposures: 3.6



Federal Facilities:



        and enforcement program: 1.12



        and RI/FS negotiations/setdement: 5.4



Federally Permitted Release:



        and liability response cost: 3.5



Field Sampling Plan (FSP): 6.21



Final Close Out Report (FCOR):  11.1; 11.2; 11.4



Force Majeure: 2.19



Freedom of Information Act (FOIA) requests:



        responding to:  4.15



General Notice Letter (GNL): 5.8



        and bankruptcy: 5.6



        copy distribution: 4.24



        issuance of:  5.8; 4.2

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  Index—viii     Index
        andMSW: 4.23
        and PRP search: 4.21;  4.22-24
        and sending/mailing: 4.23
Generator/Transporter:
        and estimated cleanup cost:  4.20
        and liability: 3.4
Good Faith Offer (GFO): 5.21
        and RD/RA negotiations/setdement: 8.20
        and RI/FS negotiations/setdement: 5.21
        and SNL: 5-20
Health Assessment:
        and RI/FS implementation:  6.19
Health and Safety Plan (HASP):
        and RD/RA implementation: 9-18
        and RI/FS implementation:  6.22
Information Request Letters (104(e) Letters):
        content of. 4.12
        and delivery: 4.15
        enforcement examples: 4.28
        and followup: 4.16; 4.17
        and generator/transporters:  4.18; 4.19
        and insurance information: 4.14
        and municipal sites: 4.14
        and noncompliance and enforcement:  4.16
        and owner/operators: 4.14;  4.12
        in PRP search:  4.24
        and PRP waste contribution: 4.24
        and removals: 2.32
        and responses: 4.15
        and statutory authority: 4.12
        and written response and due date: 4.15
Innovative Technologies: 7.9
Intergovernmental Review:
        of Fund-lead RI/FS: 5.6

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                                                                                             Index—ix
Lender Liability Rule: 3.4; 3.8; 3.9
Liability:
       and acts of God: 3.5
       and acts of war: 3.5
       and arranger: 3.4
       and ATP: 3.21
       and bankruptcy: 3.21
       and corporate officers: 3.2
       and "de micromis" settlements: 3.16
       and de minimis settlements: 3.15
       elements of: 3.1; 3.8
       exemptions and limitations of: 3.8-11
       extent of: 3.4
       and federally permitted releases: 3.6
       and fiduciaries:  3-3-4; 3.9-10
       and generators: 3.4
       and inheritance: 3.5
       and innocent landowner defense: 3.5
       and involuntary acquisitions: 3.5
       joint and several: 3.1
       and lender liability rule: 3-5-6; 3.8; 3-10-11
       and lenders: 3-8
       and liable parties: 3-1-4
       andMSW:3.13
       and municipalities: 3.13
       and orphan share compensation: 3.17-18
       and owners of property above contaminated aquifers: 3.12
       and parent corporations: 3-2
       and prospective purchasers: 3.13-14
       and reimbursement petitions: 3.20
       and residential homeowners: 3.11-12
       and response action contractors: 3.11
       and state involvement: 14.18
       and secured creditor exemption: 3.3; 3.8-9

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  Index—x       Index

        and service station dealers: 3.10
        and state and local government employees: 3.10
        and state and local governments: 3.10-11
        strict: 1.3; 3.1
        and successor corporations: 3.3-4
        and third-party defense: 3.5
        and transporters: 3.4
Litigation Support:  12.21
"Matters Addressed": 8.15
Mediation:  1.4
Mini-Litigation Report:
        and draft CD: 8.12
Minitrial: 1.4
Mixed Funding: 8.24-26
        and cashout: 8.28
        and cost recovery: 12.26
        and mixed work: 8.28
        and preauthorization: 8.26
Mixed Wort
        and settlement tools:  8.28
Municipal Solid Waste (MSW): 3.13
        and GNL: 4.23
National Priorities List (NPL):
        andATSDR:6.12
        and cost recovery: 12.9
        and deletion from: Chapter 11
        and PRP search: 4.1; 4.26
        and removals: 2.1
        and state involvement: 14.1; 14.6-7
Natural Resource Damages: 5.10; 8.18
Natural Resource Trustees:
        authority of: 5.8
        coordination with: 5.8
        and enforcement program: 1.14

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                                                                                         Index—xi
        and Executive Order 13016: 5-10
        notification of: 5.10; 8.18
        and roles and responsibilities in RI/FS implementation: 6.12
Neutral Evaluation: 1.4
No Further Response Needed: 11.2
Non-Binding Preliminary Allocation of Responsibility (NEAR): 8.33
Notice of Deletion (NOD): 11.2; 11.6
Notice of Intention to Delete (NOID): 11.1; 11.2; 11.4
Notice of Intention for Partial Deletion (NOIPD): 11.1; 11.2; 11.4
Notice of Partial Deletion (NOPD): 11.1; 11.2; 11.6
Office of Emergency and Remedial Response (OERR):
        and CB: 14.8
Office of Enforcement and Compliance Assurance (OECA):
        and cashout settlements: 8.29
        responsibilities of: 8.6
Office of General Counsel (OGC):
        and roles and responsibilities in RD/RA negotiations/settlement: 8.7
Office of Regional Counsel (ORC): see Regional Counsel
Office of Site Remediation Enforcement (OSRE):  1.13
        and ADR: 1.5
        roles and responsibilities in RD/RA negotiations/settlement: 8.6
        roles and responsibilities in RI/FS negotiations/setdement: 5-5
Oil Pollution Act of 1990 (OPA):  1.15
On-Scene Coordinator (OSC):
        and community involvement: 13.7
        and cost recovery: Chapter  12
        and records management: 15-5; 15.7; 15-21
        and removals: Chapter 2
Operation and Maintenance (O&M): Chapter 10
        and O&M manual: 10.2-3
        and O&M oversight: 10.3
        and O&M plan: 10.2; Ex. 10-1
        and planning and reporting requirements: 10.5-7
Operational and Functional (O&F): 10.1

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  Index—xii      Index

Orphan Share:
        and compensation: 8.34; 3.17-18
        and cost recovery:  12.28
Oversight 1.12
        and cost recovery: 12.5
        and RD/RA implementation: 9.1; 9.2; 9.7; 9.7; 9.16; 9.31
        and removals: 2.22
        and RI/FS implementation: 6.6-7
        and state involvement: 14.4; 14.18
Oversight Assistant:
        and role in RI/FS implementation: 6.10-11
Oversight Official and Technical Review Team (TRT):
        and RD/RA:  9-7-9
Post-Referral Actions:
        andDOJ: 8.42
Potentially Responsible Party (PRP):
        and administrative subpoenas: 4.21
        andAO: 4.16
        and conduct of RI/FS: 5-23
        determining financial viability of:  2.32
        and judicial action: 4.17
        and negotiations: 1.11
        and notice: 2.12
        and obtaining response action from: 1.1
        and oversight: 1.12; 2.22
        and poor relations among: 8.48
        searches: Chapter 4
               and activities checklist: 4.33
               and administrative subpoenas: 4.20
               baseline report: 4.4; 4.10; 4.17
               and baseline search : 4.2; 4.10; 4.17
               and budget:  4.26
               andCI: 4.5; 4.8
               and completion: 4.22

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                                                                                           Index—xiii
                and contractors: 4.8
                and de minimis and "de micromis" settlements:  4.20
                and FOIA requests: 4.15
                followup report: 4.22
                andGNLs:  4.22
                and inadequate search: 8.49
                and information exchange: 4.25
                and insurance information: 4.14
                interim final report: 4.4; 4.21-22; 4.26
                and key players: 4.4
                and management review: 4.18
                and municipal sites: 4.14; 4.19
                objectives of: 4.1
                and ongoing information exchange: 4.25
                and owner/operator followup: 4.11
                and planning: 4.26
                and preliminary search: 4.9
                and PRP search plan: 4.2; 4.4; 4.9
                PRP synopsis report: 4.4; 4.18
                and RD/RA negotiations/setdement: 8.10
                andRAs:  4.5
                and review of search and search report: 5-7;  8.10
                and reporting requirements: 4.27
                and roles and responsibilities: 4.28
                andRPMs:  4.4-5
                site chronology and property history report:  4.4; 4.18
                and specialized search tasks: 4.3; 4.20
                and timing:  4.28
                and waste-in information: 4.24
        settlements:  1.12
        steering committees: 5.9
Preauthorization: 8.26
        andPDD: 8.27
Preliminary Close Out Report (PCOR): 9.29

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  Index—xiv      Index

Preliminary Natural Resource Survey (PRNS): 6.12
Premium:
       and RD/RA negotiations/settlement: 8.16; 8.29; 8.30; 8.31
Pre-Referral Package: 8.3
Primary Balancing Criteria: 7.6
Proposed Plan: 7.11
       and community involvement: 13.12
       contents of:  7.12
       finalization of: 7.16
       format of: 7.12
Prospective Purchaser Agreements (PPAs): 3.13-14
Quality Assurance Project Plan (QAPP):
       and RI/FS implementation: 6,21
Quality Assurance Team (QAT): 9.5; 9-19
Record of Decision (ROD):
       and changes from the proposed plan: 7.20
       components of: 7.18
       and disputes over: 7.25
       and post-ROD changes: 7.22
       and preparing draft: 7.18
       and RD/RA negotiations/settlement: 8.12
       and state involvement: 14.2
Records Management: Chapter 15
       and budget:  15.20
       and file maintenance:  15.19
       and OSC and RPM involvement: 15.21
       and planning:  15.20
       and priority setting: 15.20
       andSDMS:  15.17
       and storage and maintenance of records:  15.17
       and space: 15.21
       and transporting records to sites: 15-21
       and vital records: 15.11

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                                                                                           Index—xv
Referral Package:
        and finalizing settlement: 8.37-38
Regional Administrator (RA):
        and cost recovery: 12.8; 12.24; 12.25
        and RI/FS settlement: 5.23
        and ROD signature: 7.18
        and site deletion and final COR: 11.1
Regional Counsel:
        and community involvement: 13.7
        and cost recovery: 12.3; 12.8; 12.14-15; 12.20
        and O&M: 10.8
        and PRP search: 4.5
        and records management: 15-21
        and RI/FS implementation: 6.11
        and role in RI/FS negotiations/settlement: 5.5
        and roles and responsibilities in RD/RA negotiations/settlement: 8.6
Regional Ombudsman: 13.8
Regional Support Division (RSD):
        and cost recovery: 12.7; 12.29
Reimbursement Petitions: 3.20
Remedial Alternatives:
        detailed analysis of:  6.31-32
        and development and screening:  6.29-30
Remedial Design/Remedial Action (RD/RA):
        and compliance monitoring:  9.32
        and cost recovery: 12.1; 12.2-4;  12.16
        and EPA oversight objectives: 9.2
        and implementation: Chapter 9
               and changes in construction: 9.22
               and community involvement activities: 9.16
               and construction completion: 9.23
               and construction QA/QC plans: 9.12
               and construction schedule: 9.12
               and design  investigation: 9.10

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Index—xvi      Index

             and design support: 9.12
             and EPA pre-RA review: 9.12
             and final RA completion: 9.29
             and immediate danger/emergency response: 9.22
             and initiation of oversight: 9.16
             and intermediate design review: 9.16
             and oversight: 9-2; 9.12; 9-16
             and PCOR: 9.29
             and pre-final/final design review: 9.16
             and pre-final/final inspection: 9.22
             and preconstruction conference: 9.20
             and preliminary design review: 9.14
             and preparation of RA report: 9.14
             PRProlein:  9.3
             and RA implementation: 9.20
             and RA work plan revision: 9.18
             and RAR: 9.23
             and Remedial Action Delivery Analysis: 9.14
             and review of QAT qualifications: 9.19
             and review of RA contractor qualifications: 9.18
             and review of RD professional qualifications: 9.8
             and work plan review: 9.13
     and incentives for successful performance: 9.31
     and negotiations/settlement: Chapter 8
             and budget requirements:  8.44
             and enforcement options: 8.37
             and negotiation extensions: 8.21
             and negotiation moratorium: 8.3
             negotiation process: Ex. 8-1
             and outcomes definitions: 8.45-47
             and partial settlements:  8.41
             and RD/RA Negotiation Plan:  8.10
             and RD/RA negotiation planning schedule: 8.10
             and reporting requirements: 8.44

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                                                                                           Index—xvii
                and SCAP targets: 8.44-47
                and section 122(a) letters: 8.20
                and settlement tools: 8.24
                and use of public relations: 8.49
                and volumetric ranking: 8.50
        and SCAP: 8.45-47; Ex. 8-5; Ex. 8-6; 9.16; Ex. 9-4; Ex. 9-5
        and United States v. Murtha: 9.24
Remedial Investigation/Feasibility Study (RI/FS):
        and AO: 5.11-13
        and Case Team: 5.7
        decision to start: 5.6
        and early de minimis setdements: 5.2
        Fund-lead: 5.24
        and GFO: 5.21
        implementation of: Chapter 6
                andATSDR:  6.12
                and baseline risk assessment:  6.3-4
                and collection and analysis of field data: 6.3; 6.22-25
                and community involvement: 6.12
                detailed analysis of remedial alternatives: 6.31-32
                development and screening of remedial alternatives: 6.29-30
                and dispute resolution: 6.36
                and HASP: 6.22
                and natural resource trustees in: 6.12
                and oversight assistant: 6.10
                and oversight: 6.6-7
                phases of activity in:  6.2-6
                andPNRS:6.12
                pre-negotiation scoping in: 6.19
                PRP performance of: 6.1
                post-AOC scoping in:  6.3
                project scoping in: 6.19-22
                and risk assessment:  6.26-27
                andRPM: 6.5

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Index-xviii    Index
             and SAP: 6.21-22
             andSCAP:  6.33-35
             and site characterization: 6.22-25
             and SOW: 21
             and treatability investigations:  6.28-29
             work plan for:  6.9-10
     and natural resource trustees: 5.8; 6.12
     negotiations/settlement:  Chapter 5
             and AO: 5.1
             and CERCLIS 3/WasteLAN: 5.26
             and CD: 5.1
             contractor support in: 5.25
             and community involvement: 13.17
             and coordination with states: 5.1
             and DOJ: 5.5
             and drafting AO: 5.17
             and Fund lead: 5.24
             and negotiation moratorium: 5.20
             and negotiation plan: 5.6; 5.7
             and DOJ: 5-5
             outcome of Fund-lead RI/FS: 5.24
             outcome of PRP-lead RI/FS: 5-24
             oversight of (CERCLA section 104): 5.25
             oversight of (cost/limits): 5.28
             and past costs: 5.28
             and planning requirements:  5.25
             and PRP lead: 5-24
             and regional counsel: 5.5
             and reporting requirements: 5.26
             and required removals: 5.29
             and SCAP: 5.26
             and site boundaries: 5.11
             and SOW: 5.13; 5.18

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                                                                                           Index—xix
                state coordination in: 5-1
                and stipulated penalties: 5-28
        overview: 6.2-3
        preliminary scoping of: 5.10
        PRP conduct of: 5.23-24
        and PRP search review: 5.7
        and site management strategy: 5.10
        and site objectives:  5.10
        and SOW:  5-9; 5.11; 5.2
        and steering committees and information exchange: 5.9
        and work plan: 5.13
Remedial Project Manager (RPM): 1.1; 1.13
        and community involvement:  13.7
        and cost recovery: Chapter 12
        and enforcement specialist: 8.3
        and general responsibilities: Preface
        and O&M: Chapter 10
        and PRP search: Chapter 4
        and records management:  Chapter 15
        and remedy selection: Chapter 7
        and removals: Chapter 2
        and roles and responsibilities in RD/RA implementation: 9.6-7
        and roles and responsibilities in RD/RA negotiations/settlement: 8.6
        and roles and responsibilities in RI/FS implementation: 6.8-9
        and roles and responsibilities in RI/FS negotiations/settlement: 5.5
        and site deletion: 11.1-2; 11.4; 11.6
Remedial Site Files: Ex. 15-1
        and collection  of field data:  15.2
        and content and structure: 15.2
        and file management:  15.2
Remedy Selection:  Chapter 7
        and AR: 7.15
        and ARAR  compliance: 7.1
        and changes from the Proposed Plan to the ROD: 7.20

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  Index—xx       Index
        and community acceptance: 7.14
        and contractor participation: 7.15
        and cost: 7.7
        and disputes over ROD: 7.25
        and extensive public comment: 7.25
        and final selection of preferred alternatives: 7.16
        and Fund lead: 7.13
        and inconsistent PRP alternative: 7.25
        and modifying criteria: 7.7
        and planning requirements: 7.23
        and post-ROD changes: 7.22
        and preparation for negotiation: 7.16
        and preparing draft ROD: 7.18
        and primary balancing criteria: 7.6
        and promotion of national consistency: 7.8
        and proposed plan: 7.11
        and reporting requirements: 7.23
        and required notification: 7.16
        and responsibilities: 7.3
        and SCAP: 7-23
        and state/federal and public input on preferred alternative: 7.13
        and state/federal concurrence: 7.13
        and state lead: 7.14
        and statutory authority: 7.1
        and threshold criteria:  7.4
        and unanticipated changes: 7.20
Removal Site Files:
        and collection of field data:  15.5
        and file content and structure: 15.5
        and file management:  15.5
Removals: Chapter 2
        activities checklist:  2.33
        community involvement in:  2.22
        and completions: 2.27-28

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                                                                                          Index—xxi
        and consistency exemption: 2.4
        and cost recovery: 12.3
        during RI/FS: 5.29
        and emergencies: 2.3
        and emergency exemption: 2.4
        Fund-financed:  2.4
        non-time-critical: 2.3
        planning: 2.11
        planning and reporting requirements: 2.25
        PRP-fmanced: 2.8
        replacement of UAO with AOC: 2.21
        and site lead: 2.11
        starts: 2.26
        time-critical: 2.3
Reopeners:
        and cost recovery: 12.24
        and negotiation planning: 8.18
        OSRE Director, advance written approval of: 8.5
        in RD/RA negotiations/settlement: 8.31
Resident Engineer: 9.4-5
Resource Conservation and Recovery Act (RCRA): 1.4
        andARARs:4.1;4.l6
        and past costs: 5.28; 12.1
        and PRP searches: 4.1; 4.4; 4.5; 4.13; 4.15; 4.16; 4.24; 4.36
        and remedy selection:  7.6
        and RI/FS implementation: 6.7
Response Action Contract (RAC):
        and state and local government liability: 3.10-11
        and RAC contractor: 3.10
Responsiveness Summary: 11.6
Risk Assessment: 6.26-27
        and ecological/environmental assessment: see Ecological/ Environmental Assessment
        and environmental evaluation:  6.12
        establishing background for:  5.16

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  Index—xxii     Index
        and human health evaluation: 5.16; 6.26
        PRP conduct of: 5.16
        and section 106 litigation: 8.41
Sampling and Analysis Plan (SAP):
        in RI/FS implementation: 6.21-22
Section 122(a) letters: 8.20
Secured Creditor Exemption: 3.3; 3.8-9
Settlement Judge: 1.4
Settlement Policy:
        and section 107: 12.8
        and section 122: 12.8
        and section 122(h): 12.8
        and cost recovery:  12.8
        and RD/RA negotiations/setdement: 8.22
Site Assessment and Response Planning:  1.7
Site Characterization:
        and collection and analysis of field, data:  6.122-25
Site Completion: 11.1; 11.4
        definition of:  11.3
        documentation of:  11.4
        partial: 11.1
        and procedures and interactions: 11.4
Site Deletion: 11.1
        and background information collection:  11.4
        and consultation witli state/tribe:  11.4
        criteria for: 11.4
        and COR: 11.1-2;! 1.4
        docket: 11.4; 11.6
        definition of: 11.2
        disputes over: 11.8
        and initiation of process: 11.1
        and meeting deletion criteria: 11.4
        and no state concurrence: 11.8
        and NOD: 11.2

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                                                                                          Index—xxiii
        and MOID: 11.2
        andNOIPD: 11.2
        andNOPD: 11.2
        panial:  11.2
        and potential problems/resolutions: 11.8
        and preparation of NOD and NOPD: 11.6
        and preparation of NOID or NOIPD: 11.6
        and preparation of responsiveness summary:  11.6
        and procedures and interactions: 11.4
        and public involvement:  11.6
        and public notification: 11.6
        and releases from deleted sites: 11.8
        reporting requirements for: 11.7
        role of EPA Headquarters in: 11.2
        role of region in: 11.1-2
        roleofRPMin: 11.1-2; 11.6
        role of state or tribe in: 11.2
        and state/tribe concurrence: 11.4; 11.8
Site Files:
        and remedial site files: 15.2
        and removal site files: 15.5
Site Management Planning: 1.7
        for removals: 1.10
Site Management Plans (SMPs): 1.7
Special Notice Letter (SNL): 8.3
        and 60-day negotiation moratorium: 8.3
        and bankruptcy: 5.8: 5.20
        contents of: 8.18
        and cost recovery: 12.11
        and decision not to issue: 5-8
        issuance and timing of: 8.18
        and RD/RA negotiations/settlement: 8.18

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  Index-xxiv    Index
State Involvement: Chapter 14
        and block funding: 14.8
        and CA: 14.2; 14.5; 14.6; 14.9
        andCB: 14.15
        and CERCLIS 3/WasteLAN: 14.15
        and core program funding: 14.6
        and deferral of sites for state involvement: 14.5
        and development of the lead agency enforcement CA: 14.9
        and EPA approval of state remedies: 14.13
        and forum shopping by PRPs: 14.18
        planning and reporting requirements for: 14.15
        and PRP oversight: 14.4; 14.18
        and records management: 15.10
        andSCAP: 14.15
        and SCAP targets: 14.18
        and sections in a CA application: 14.9
        andSMOA: 14.10; 14.11; 14.18
        and SSC:  14.7
        and standard planning time line:  14.18
        and state challenges to RD/RA CDs: 14.18
        and voluntary cleanup programs: 14.13
State and Local Governments:
        and lender liability rule:  3.10-11
        and limits to liability:  3.10-11
Statement of Work (SOW): 5.13; 5.18
        and RI/FS implementation: 6.19-20
Statute of Limitations (SOL):
        for cost recovery: 12.10
Stipulated Penalties:
        in RI/FS setdement: 5.28
Superfund Comprehensive Accomplishments Plan (SCAP):
        and community involvement: 13.17
        and cost recovery: 12.23; Ex. 12-5; 12.32-35

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                                                                                       Index—xxv
        andCIPs: 13.17
        and Fund-lead RJ/FS: 5.24
        and O&M: 10.5
        and remedy selection: 7.23
        and RD/RA implementation: 9.24-30
        and RD/RA negotiations/setdemem: 8.10; 8.44-47
        and removals: 2.25-30
        in RI/FS implementation: 6.33-35
        and RI/FS negotiations/settlement: 5.6; 5.25-27; Ex. 5-4, Ex. 5-5
        and state involvement: 14.16-18; 14.19
Superfund Document Management System (SDMS): 15.17
Superfund Memorandum of Agreement (SMOA):
        and articles: 14.11
        development of: 14.10;  14.18
        and state involvement: 14.10; 14.11; 14.18
Technical Assistance Grant (TAG):  13.9
Technical Review Team (TRT): see  also Oversight Official; 9.7-9
Technical Review Workgroup (TRW): 7.10
Technical Support Team (TST):
        and RI/FS implementation:  6.2
Toxic Substances Control Act (TSCA): 1.4
Treatability Investigations: 6.28-29
        required deliverables for: 6.28-29
Tribes:
        and enforcement program: 1.14
Unilateral Administrative Order (UAO):
        issuance of:  2.9; 2.13
        model:  2.11
        to perform RI/FS: 5.17
        and RD/RA negotiations/settlement: 8.4; 8.22; 8.29
        for removals: 2.17
        replacement with AOC:  2.21
Value Engineering (VE): 9.15

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  Index-oocvi     Index
Waste-in Information:



        sources of:  4.24



        and transactional databases: 4.24

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