United States Region V Environmental Protection 230 South Dearborn Street Agency Chicago. Illinois 60604 A STATUS REPORT The PCB Contamination Problem: Waukegan, Illinois November 24, 1980 ------- THE PCS CONTAMINATION PROBLEM: WAUKEGAN. ILLINOIS A STATUS REPORT November 24, 1980 TABLE OF CONTENTS PAGE SECTION I INTRODUCTION AND BACKGROUND 1 SECTION II THE ENVIRONMENTAL PROBLEM 5 SECTION III PLAN FOR REMOVAL OF PCB CONTAMINATED SEDIMENTS 8 IN SLIP #3 IN WAUKEGAN HARBOR SECTION IV POTENTIAL MECHANISMS FOR FUNDING SLIP #3 PLAN 11 Prepared By U.S. Environmental Protection Agency Region V 230 South Dearborn Street Chicago, Illinois ------- SECTION I: INTRODUCTION AND BACKGROUND Since the initial awareness of the existence of a PCB contamination problem in the vicinity of the Outboard Marine Corporation (OMC) facility in Wauke- gan, Illinois, in 1976, the U.S. Environmental Protection Agency (U.S. EPA) has pursued remedy along two channels. o After informal negotiations with OMC broke down in 1977, U.S. EPA filed a lawsuit against OMC on March 17, 1978, seeking to require OMC to cleanup the site. April 6, 1981 has been set as the trial date. o U.S. EPA began, in 1976, to conduct studies on the nature and extent of the environmental problems associated with the PCB contamination. In 1979, these efforts were directed towards development of an engi- neering remedy for the PCB problem in Waukegan so that U.S. EPA could begin cleanup as soon as funds became available. A comprehensive report, describing the full range of problems and suggested remedies, will be issued in December 1980. BACKGROUND In 1976, the Johnson Motors Division of Outboard Marine Corporation (OMC) in Waukegan, Illinois, was found to be discharging PCBs to the Waukegan Harbor and the North Ditch, both tributaries of Lake Michigan. This find- ing was of great concern as a number of Lake Michigan fish species both then and now contain PCBs in quantities exceeding Food and Drug Administra- tion Guidelines. Administrative orders were issued by the U.S. EPA and the Illinois Environmental Protection Agency (IEPA) requiring the company to take certa n steps to eliminate discharges of PCBs. Although those steps were taken, and discharges were significantly reduced, a great deal of damage had already been done. It was learned that during the years from at least 1959 to 1971, the com- pany purchased approximately 9 million pounds of PCBs for use in hydraulic equipment of its aluminum die cast machines, and a substantial amount was discharged to the harbor and ditch. Some of the PCBs were carried into the Lake where they contribute to the Lake Michigan PCB contamination problem. The rest of the PCBs remain to contaminate the sediments and biota of the Ditch and Harbor, and also to be transported into Lake Michigan. -1- ------- SUMMARY OF THE LITIGATION Following the breakdown of negotiations between the State of Illinois and OMC during late 1977, the United States Attorney for the Northern District of Illinois filed suit on behalf of the U.S. EPA in federal court against OMC on March 17, 1978. The complaint alleges that OMC utilized hydraulic fluids composed of PCBs in its Waukegan diecasting facility of Johnson Outboards for many years, and that the leaks and spills of the fluid dis- charged without treatment into Lake Michigan and Waukegan Harbor were a violation of the Refuse Act, the Clean Water Act, and the common law of nuisance. The United States further alleges that, as a result, Lake Michi- gan waters and aquatic life have been harmed and pose a threat to health and the environment. The complaint asks that OMC dredge and dispose of North Ditch sediments in a safe manner, similarly clean up contaminated Harbor sediments, and pay a money penalty for violation of the Clean Water Act. OMC subsequently filed a third-party complaint against its supplier of the PCB-bearing hydraulic fluid, alleging negligence and a breach of products liability law by the Monsanto Company as the manufacturer and supplier of the PCBs. In addition, after a review of documents produced in discovery, the United States also sued Monsanto in July 1980, alleging violations of the Refuse Act, and negligence and products liability standards in Mon- santo 's conduct as supplier of the PCBs. Following the claim, Monsanto recently filed a crossclaim for reimburse- ment against OMC. Finally, pursuant ..to :a. ruling by the-Seventh Circuit Court of Appeals, the State of Illinois has been allowed to file its own suit in federal court against OMC. While the State is currently partici- pating in discovery, OMC has filed a petition for certiorari with the Supreme Court asking for review of the Circuit decision. The Supreme Court has not yet ruled whether it will consider the case. Exchange of documents and interrogatory responses is substantially complete in the enforcement case, and a number of depositions have been scheduled in the next months. United States studies concerning the extent and gravity of the contamination are expected to be completed by the end of December 1980. A discovery termination date of March 1, 1981, and a trial date beginning April 6, 1981, have been set by the presiding judge. Whether the case is resolved through settlement negotiations, the judge's decision, or a jury's verdict, payment for cleanup and disposal has been requested by both Illinois and the United States primarily of OMC as the direct discharger, and also of Monsanto as the manufacturer and supplier of PCBs. -2- ------- In a related but separate action filed by OMC against U.S. EPA in March 1978, two of its claims under the Clean Water Act alleging U.S. EPA respon- sibility for study and cleanup of Waukegan Harbor were denied upon motion for summary judgement by U.S. EPA, and the third claim under Section 115 is awaiting trial before Judge Leighton. -3- ------- m-*- .'iv* •_ ••.- . /> ^js -^.k, ------- SECTION II: THE ENVIRONMENTAL PROBLEM The environmental studies begun by U.S. EPA in 1976, to determine the nature of the PCB problem and its associated environmental impact, have included sampling and chemical analyses for sediments, water, soil, groundwater, fish and airborne fallout with emphasis on Waukegan Harbor, the North Ditch, the Johnson Outboards site, and nearby areas of Lake Michigan. Biological engineering and transport studies to estimate the loading of PCBs to Lake Michigan have been conducted. We have determined that PCBs are distributed throughout Waukegan Harbor. About 15,000 cubic yards are estimated to be contaminated beyond 500 ppm, about 65,000 cubic yards beyond 50 ppm and substantially more yardage beyond the 10 ppm level. The PCBs become suspended or dissolved and enter Lake Michigan; additionally fish that frequent the harbor develop high PCB levels as a result of exposure to contaminated sediment and elevated levels in water. Studies have indicated that resident fish in the harbor accumulate PCBs at levels well above the current level of 5ppm PCBs and the proposed level of 2 ppm established by the Food and Drug Administration. Bluegills and perch exposed to harbor waters for 30 days have accumulated averages of 20 ppm and 12 ppm, respectively. Studies also indicate that fish lose PCBs when they return to Lake Michigan but still retain PCBs at an average level of about 8 ppm afrter 84 days in the Lake. Information available to the U.S. EPA indicated that fish exposed to sediments contaminbatedwith PCBs will bioaccumulate PCBs above FDA limits when sediments exceed 10 ppm..PCBs; Region V, U.S. EPA, defines sediments at 10 ppm as "highly polluted" and unfit for lake disposal. The most significant environmental problem in Waukegan Harbor is the con- tamination in Slip No. 3. A substantial amount of the sediment in Slip No. 3 is contaminated beyond the 500 ppm level, with some locations exceed- ing 200,000 ppm (20% dry weight). This is where an OMC outfall was located and is the most contaminated area of the harbor. CONTAMINATION OF FISH IN WAUKEGAN HARBOR The U.S. EPA has completed several fish studies in or utilizing waters taken from Waukegan Harbor. The purpose of the studies, completed in mid- 1980, was to help determine the extent to which Harbor sediments serve as a source of contamination in Lake Michigan fish. -5- ------- Two types of studies were conducted. In the first, random samples of fish were collected from Waukegan Harbor water and analyzed for PCB levels. In addition, uncontaminated fish were exposed for 30 days to the waters of Slip No. 3 on the Harbor, then removed and placed for 84 days in water taken from the open lake. These fish were then analyzed to ascertain the persistence of PCBs they bioaccumulated while in Harbor waters. In each case, PCB levels in the fish were measured for purposes of determining whether or not they exceeded the existing Food and Drug Administration (FDA) guideline of 5 mg/1, or the proposed guideline of 2 ppm. Analyses of 17 fish samples collected in Waukegan Harbor averaged 19 ppm of PCBs for whole fish. All but three samples exceeded the 5 ppm FDA guideline for the edible portion, and all but one exceeded the 2 ppm proposed limit. The uncontaminated fish exposed to Waukegan Harbor waters retained levels of PCBs approximating 20 ppm for whole fish (bluegills) and 12 ppm (yellow perch) after 30 days of exposure. Levels remained at 8 ppm for both species even after 84 days of exposure to "open" Lake Michigan water. In evaluating this data, one should note that the edible portion of a fish is usually lower in PCB concentration than the whole fish. -6- ------- FIGURE NO. I EXTENT OF PCB CONTAMINATION BOUNDARIES ARE ESTIMATES AND WILL BE CONFIRMED IN DECEMBER, NO SCALE I I GREATER THAN 500 PPM 50-500 PPM LESS THAN 50 GREATER THAN 10 PPM 10 PPM OR LESS SLIP NO,3 SLIP NO,I LARSEN MARINE WAUKEGAN PORT DISTRICT JOHNSON OUTBOARDS CITY FILTRATION PLANT LAKE MICHIGAN -7- ------- SECTION III: PLAN FOR REMOVAL OF PCBs CONTAMINATED SEDIMENTS IN SLIP #3 IN WAUKEGAN HARBOR We propose to begin cleanup in this area and proceed by building a lagoon of 55,000 cubic yards capacity on OMC property. Then, 15,000 cubic yards of sediment along with 35,000 cubic yards of water will be dredged with a Hydraulic Suction Pipeline Dredge and placed in the lagoon. The sediment will be de-watered and the water treated with an activated carbon system to a less than 1 ppb level of PCBs before being returned to Waukegan Harbor. A small sand filter and carbon filter system will provide continuing treat- ment of runoff. This cost is estimated at more than two million dollars and will not include disposal of the sediments from the lagoon. The lagoon will be designed to prevent release of PCBs to the environment until such time that permanent disposal of the de-watered sediments can be arranged. We are investigating landfill ing and other alternate treatment and dis- posal possibilities. ENGINEERING SUMMARY FOR SLIP #3 DREDGING TREATMENT AND STORAGE SYSTEM The summary encompasses the scope and costs associated with the engineering design and construction related to a dredging, treatment and storage system for 15,000 cubic yards of PCB contaminated sediments presently located in Slip No. 3 of Waukegan Harbor, Waukegan, Illinois. The project includes dewatering the dredge spoils in a lagoon on OMC property and returning clean (less than^one part per -billion PCBs) water back to the Harbor. The dredge spoils would remain in this lagoon until monies are available for transportation to a permanent disposal site. DESIGN OF LAGOONS The lagoons would be built on top of the surface, with one foot of clay base, six inches of sand-gravel containing a leachate collection network, and three feet of compacted clay above the sand-gravel. The lagoons will be sized to hold all the material removed from the harbor plus adequate freeboard. Laboratory tests have demonstrated that a minimum of two days (longer times are more desirable) of settling and dewatering are required before the dredged sludge is dewatered to the point where it can be hauled to a landfill. The longer the dredge spoil set in a lagoon, the greater extent they are dewatered. Quantities of Harbor sediments (all of the muck down to sand or clay but not including sand or clay) to be removed are estimated below: Location Concentration of PCB Quantity (cubic yards) Slip 3 only over 500 ppm 15,000 -8- ------- The following Lagoon capacity is needed for removing the Harbor sediment: Sediment Removed Total Lagoon Capacity Lagoon Configuration 15,000 yds. 55,000 yds. One Lagoon The lagoon has 2 feet of freeboard not figured into the capacity. The 55,000 cubic yard lagoon capacity is based on slurrying 15,000 cubic yards of sediment in Slip 3 with 35,000 cubic yards of water, plus 10 percent reserve. The entire slurry is transferred to the lagoon, and the excess water is returned to the Harbor when the dredging is complete. This method is less costly than providing a smaller lagoon (say 30,000 cubic yards) coupled with a much larger water treatment plant sized to keep up with the dredging. Preliminary calculations show that 15,000 cubic yards can be dredged from the harbor and treated (dewatering in a lagoon, water returned to harbor) but not including final hauling to a landfill at a cost under $2,000,000. The 55,000 cubic yard lagoon is located in a certain area of OMC property with the possible contingency that a second 55,000 cubic yard lagoon can be later constructed adjacent to the first lagoon when monies are available to dredge more of the Harbor (see Figure 1). The lagoon walls can at a still later date be built higher to provide additional capacity if needed. The maximum possible total capacity that can be safely provided on the space available is estimated to be about 400,000 cubic yards; the lagoon walls would be built to hold a 20 feet depth of dredged material with this configuration. The dredge solids can be stored in the lagoon until everything is removed as funding becomes available to remove and/or treat more Harbor solids. WATER TREATMENT A weir exists at the end of the proposed lagoon which controls the water level in the lagoon. The lagoon water spills over into a compartmentalized basin. This consists of a flocculation area where polymer is added, followed by a two hour detention for settling of solids, and a small, clear well where a pump operating off level controls delivers water to sand or dual media filters and carbon filters. Another clear well is provided for finished water before discharge to the harbor; this water can also be used to backwash filters. The treated water is returned to the harbor. Sand or dual media filters and carbon filters can be retained on a rental basis. In addition, a smaller sand filter and carbon filter can be purchased to handle leachate and rain water after the sludges have dewatered. In the interest of saving money, operations can be carried out during the non-freezing weather months (April-October) so that a building to house equipment need not be constructed. Hoses lying on the ground convey -9- ------- water between equipment (if a break occurs, the water is returned to the lagoon). A small building houses the permanent filters used to treat rain and leachate water when the dewatering is completed. A suitable emulsion is spread on the sludge surface after dewatering for dust control and prevention of volatilization of PCBs to the atmosphere. COST Costs for removing 15,000 cubic yards from Slip 3, dewatering in one 55,000 cubic yard lagoon and returning treated water back to the harbor (less than 1 ppb) are estimated to exceed $2 million. Costs for construction of the lagoon are included. -10-. ------- SECTION IV: POTENTIAL MECHANISMS FOR FUNDING SLIP #3 PLAN There are four possible sources for funding of the plan to remove the con- taminated sediments from Slip No. 3. 1. In the fall of 1980 Congress appropriated $1.5 million in FY81 funds to U.S. EPA "to begin the cleanup of Waukegan Harbor." It is understood that EPA will attempt to recover such costs from OMC through litigation. 2. Pursuant to Section 311 of the Clean Water Act, U.S. EPA can initiate action to eliminate a pollution threat to a navigable waterway of the United States, if the owner or operator of the site is unable or unwilling to abate the threat. On November 14, 1980, U.S. EPA wrote to OMC, citing Section 311 and demanding that the company begin the cleanup of Slip No. 3. A response from OMC is required by December 3. On November 20, 1980, at a meeting of the Regional Response Team, U.S. EPA's plan for cleanup of Slip No. 3 was endorsed, and authorization was given for expenditure of $100,000 of Section 311 funds for the engineering design studies, if OMC refuses to take the action. Should U.S. EPA proceed to do the cleanup under Section 311, OMC could be liable for the costs incurred. 3. Legislation currently pending in Congress, known as "Superfund", would provide funding for cleanup of problems such as the con- tamination of Waukegan Harbor. 4. It is anticipated that the litigative action against OMC will result, either through settlement or court decision, in OMC's and/or Monsanto's assumption of costs incurred in the Slip No. 3 cleanup operation. -11- ------- |