On October 13, 2004, U.S. DOJ, U.S. EPA and PRP-Defendant
Glen W. Ekberg entered into a Stipulation and Order. -
In April 2004, U.S. EPA issued a Comprehensive Environmental Response
Compensation and Liability Act (CERCLA) 104 UAO for access to Mr.
Glen W. Ekberg, a CERCLA potentially responsible party (PRP) and
Federal Court defendant (for a related cost recovery case), concerning
property that he owns and operates which comprises a large portion
of the identified Source Area 7 of the Southeast Rockford (IL)
Groundwater Contamination Superfund Site. After some initial resistance,
Mr. Ekberg complied with the UAO, and allowed Illinois EPA to perform
Remedial Design sampling and activities at his portion of Source
Area 7. However, in August 2004, claiming conflict with IL EPA
and its contractors, Mr. Ekberg rescinded his grant of access and
expelled IL EPA from his property. U.S. EPA notified Mr. Ekberg
of his noncompliance with the April 2004 UAO. Mr. Ekberg refused
to change his position and U.S. EPA referred the case to U.S. DOJ
for enforcement of the UAO. U.S. DOJ, U.S. EPA (and Illinois’ Attorney
General and EPA legal sections) conferred and determined to go
forward after one more attempt at resolution. The negotiated Stipulation
and Order sets out complete access for U.S. EPA/IL EPA and their
support parties through Summer 2005; gives pre-sampling notification,
identification of Site actors and split sample provisions to Mr.
Ekberg; establishes an ‘exclusion zone’ where Mr. Ekberg
and/or his agents may observe IL EPA activities with minimal likelihood
of conflict or interference; and, vests jurisdiction over any future
disputes concerning access with the Court, requiring Mr. Ekberg
to seek court approval by motion for any subsequent proposed rescission
of access. Southeast Rockford Site is a Superfund Site with an
approximately 10-sq. mile plume of industrial waste breakdown-derived
volatile organic compound (VOC) contaminated groundwater moving
essentially east to west. VOCs are contaminants that evaoprate
into the air easily. The Site was discovered in 1984 and placed
on the National Priority List (NPL) in 1989. A CERCLA Record of
Decision (ROD) was issued by U.S. EPA and IL EPA in June 2002,
defining four Source Areas (4, 7, 9/10 and 11), with Source Area
7 being the worst. Mr. Ekberg has owned and operated at a significant
portion of Source Area 7 since 1964. The U.S. is in separate litigation
with Mr. Ekberg over Source Area 7 costs.
Primary Contacts: Thomas Turner, ORC 312-886-6613 and Russell Hart, RPM, Superfund
Division
312-886-6613.Region 5 Signs EPCRA 313 Consent
Agreement with Dentsply International, Inc.,
Franklin Park, Illinois. On October 20, 2004,
Region 5 filed a Consent Agreement and Final Order (CAFO) resolving Dentsply
International Inc.’s Emergency Planning and Community Right-To-Know Act
(EPCRA) Section 313 violations. On May 12, 2004, the Region filed a Complaint
against Dentsply International Inc. alleging its failure to submit Form R’s
by July 1, 2003 for the 2002 calender year for its use of trichloroethylene and
1,1-dichloro-1-fluoroethane at its Franklin Park, Illinois, facility. Region
5, in being consistent with the Enforcement Response Policy for Section 313 of
EPCRA, agreed to reduce the proposed penalty amount of $19,564 after taking into
consideration Dentsply International Inc.’s cooperation throughout the
enforcement process and good faith effort to comply with EPCRA. Consequently,
the CAFO requires Dentsply International Inc. to pay a penalty of $14,673.
Primary contacts: Carlos Evans (312) 886-2149
Region 5 files Consent Agreement
and Final Order with River Bend Industrial Center, L.L.C. of East
Moline, Illinois. On September 30, 2004, Region 5 filed
a Consent Agreement and Final Order (CAFO) simultaneously instituting
and settling an action against River Bend Industrial Center, L.L.C.
(“River Bend”), East Moline, Illinois, for alleged violations
of Section 15(1) of the Toxic Substances Control Act, 15 U.S.C.
§ 2614(1), and the Polychlorinated Biphenyls (“PCB”)
regulations set forth at 40 C.F.R. Part 761. Region 5 alleged that River Bend failed to properly
dispose of PCBs in concentrations greater than 50 parts per million
from three of its transformers, in violation of 40 C.F.R. §
761.60(a). Region 5 calculated a proposed penalty of $12,650. The
parties agreed to settle this matter prior to the filing of a complaint
or answer. Under the CAFO, River Bend must spend at least $24,194
to remove and properly dispose of all seven of its transformers,
including the three transformers at issue in this case, as a Supplemental
Environmental Project (“SEP”). River Bend must also
pay a mitigated civil penalty of $2,688. The penalty and SEP represent
substantial sanctions against River Bend, will reduce the potential
for PCB exposure at the facility, and will deter future violations.
Primary Contact: Kevin Chow, 312-353-6181; Additional Contact:
Kenneth Zolnierczyk, 312- 353-9687.
Bankruptcy
Court Approves Settlement for Superfund Cleanup and Cost Recovery
with Met-Coil Systems, LLC for the Lockformer Site in Lisle, Illinois.
On December 28, 2004, the U.S. Bankruptcy Court for the District
of Delaware approved a settlement agreement with Met-Coil Systems,
LLC (Met-Coil), resolving EPA’s cleanup and cost recovery
claims against the bankrupt owner/operator of the Lockformer Superfund
Site in Lisle, Illinois. Under the settlement, Met-Coil agrees to
complete the $6 million cleanup of soil on its property contaminated
with trichloroethylene using an electrical resistive heating system.
This cleanup began under a pre-bankruptcy unilateral administrative
order issued by EPA on October 4, 2001. Met-Coil also agrees to
pay EPA $290,500 for the Agency’s pre-bankruptcy costs of
overseeing the cleanup and $120,000 for its post-bankruptcy oversight
costs.
Contact: Thomas Krueger, Associate Regional Counsel (312) 886-0562
Real Estate Developer Pleads Guilty To
Asbestos Violations, Mail Fraud and Money Laundering.
On December 6, 2004 Philip H. Cohn, age 42, the owner of a number of real estate
development companies, admitted failing to remove substantial quantities of known
asbestos-containing materials before sending work crews into an historic building
in E. St. Louis and conducting renovation work disturbing the asbestos. Cohn
also admitted that he submitted sham invoices totaling $350,000 to a local school
district, purportedly for environmental clean-up at a future middle school site.
Cohn admitted using the money for personal expenses. Pursuant to a plea agreement,
Cohn has agreed to make full restitution to the school district. Sentencing for
Philip H. Cohn was scheduled for March 25, 2005, and for his wife on March 11,
2005.
Primary contact, David M. Taliaferro (312) 886-0815
Region
5 Signs Consent Agreements and Final Orders with Three Illinois Pesticide Producers.
Region 5 initiated these enforcement actions in September of 2004. In December
2004, Region 5 signed consent agreements and final orders (CAFOs) with three
pesticide producers to settle violations of Section 7(c)(1) of the Federal Insecticide,
Fungicide, and Rodenticide Act (FIFRA), 7 U.S.C. § 136e(c)(1). The alleged
violations arose out of the companies’ failure to file Annual Pesticide
Production Reports for 2003. FIFRA Section 7(a), 7 U.S.C. § 136e(a), prohibits
the production of any pesticide unless the establishment in which it is produced
is registered with the EPA. FIFRA Section 7(c)(1) and 40 C.F.R. § 167.85
require companies registered with EPA to produce pesticides to notify the Agency
annually of the types and amounts of pesticides the company produced during the
reporting year. Federal regulations at 40 C.F.R. § 167.85(d) require registered
companies to complete the form even if they produced no pesticides during the
reporting year.
All three companies did not produce pesticides in 2003, and are no
longer producing pesticides. As part of the settlement, each company
has agreed to give up its EPA establishment number and pay a reduced
civil penalty. The companies involved in these settlements, and the
amounts of their respective reduced civil penalties are:
Advanced Design Components, L.L.C. of Lombard, Illinois, $550.
Custom Accessories, Inc. of Niles, Illinois, $500.
Solid-Pro, Inc. of Naperville, Illinois, $440.
Primary contact: Erik Olson, Office of Regional Counsel (312) 886-6829;
Bruce Wilkinson, additional contact (312) 886-6002
Complaint
and Consent Decree simultaneously lodged in Northern District of Illinois
resolving violations of the Clean Air Act by Jewel Food Stores, Inc. On
February 8, 2005, the United States filed a settlement agreement with
Jewel Food Stores, Inc. (Jewel) resolving violations of the Stratospheric
Ozone Protection regulations of the Clean Air Act. Under the agreement,
Jewel will build stores in the Chicago Metropolitan area that use only
non-ozone depleting refrigerants and will retrofit 37 stores that currently
use ozone-depleting refrigerant to use non-ozone depleting refrigerants.
In addition, Jewel will monitor leaks at its stores using the more
stringent industrial process regulations and will pay a civil penalty
of $100,000. The settlement will prevent over 145,000 pounds of future
releases of ozone-depleting refrigerants.
Primary contact: Cynthia
A. King, Office of Regional Counsel, 886-6831
Region 5 concludes Section 7 informal
consultation under the Endangered Species Act with U.S. Fish and Wildlife
Service regarding a PSD permit for the Prairie State Generating Station
in Washington County, Illinois. In November 2004, Region
5 commenced informal consultation with U.S. Fish and Wildlife Service
(FWS) to determine whether the proposed Prairie State Generating Station
would adversely affect two endangered species in the area, the bald
eagle and the Indiana bat. At that time the company had already submitted
a screening level ecological risk assessment (SLERA) to Illinois EPA
(IEPA), which was used to predict air dispersion emissions and contaminant
deposition in the area, located in southern Illinois, around the proposed
1500-megawatt coal-fired power plant. Both Region 5 and FWS identified
data and information gaps in the SLERA, which were resolved through
a series of meetings and communications among Region 5, IEPA, FWS,
Prairie State and its consultant. After the parties reached a consensus
that the revised SLERA supported a “not likely to adversely affect” finding,
on January 7, 2005, Region 5 submitted the document as the biological
assessment in support of its determination that the project would not
adversely affect the bald eagle and the Indiana bat. On January 10,
2005, FWS concurred with Region 5's determination, thereby concluding
the consultation. On January 21, 2005, IEPA issued the PSD permit for
the Prairie State Generating Station.
Primary contacts: Susan Tennenbaum, Office of Regional Counsel (312)886-0273
and Constantine Blathrus, Air and Radiation Division (312)886-0671.
Illinois man pleads
guilty to state water pollution violation in Cook County, Illinois.
On February 22, 2005, in the Circuit Court of Cook County, Illinois, Jerome
Nickleski was charged and pleaded guilty to a one-count complaint of knowingly
threatening the discharge of a contaminant into a water of the State of Illinois
by allowing the IMTT-Lemont Company’s main holding pond to open to a
receiving stream when TSS in excess of the daily maximum and monthly average
concentration limits in the Company’s permit were present. The violations
occurred on or about February 23, 2000, April 10, 2000, and April 17, 2000.
Defendant was sentenced to one year of supervision, 100 hours of community
service and a $1,000 fine. The case was investigated by SA Daniel Sekerak and
prosecuted by the Environmental Bureau of the State of Illinois Office of the
Attorney General.
Primary contact: David Mucha (312) 886-9032
United States Settles Case with Dynegy Midwest
Generation - On March 7, 2005, a
Consent Decree was lodged resolving Prevention of Significant Deterioration
and New Source Performance Standards violations alleged by the United States
against the Illinois Baldwin Power Plant owned and operated by Dynegy Midwest
Generation, Inc. (DMG).
Under the settlement, DMG will spend $500 million between now and
2012 to install or upgrade existing state-of-the-art air pollution
controls on more than 71 percent of its existing coal-fired megawatt
generating capacity in Illinois. The Illinois plants covered in the
agreement are in Baldwin, Havana, Hennepin, Oakwood and Alton. All
of the units must comply with systemwide tonnage caps for sulfur dioxide
(SO2) and nitrogen oxides (NOX) emissions that decline over time. The
controls will result in the removal of approximately 283,000 tons of
SO2 based on emission levels the year (1999) the U.S. filed its complaint
against Illinois Power - a 90% overall reduction. The controls will
result in the removal of approximately 58,200 tons of NOX based on
emission levels the year (1999) the U.S. filed its complaint against
Illinois Power - an 80% overall reduction. The settlement also requires
DMG to retire 30,000 excess SO2 emission allowances per year from its
Acid Rain allocations and restrict trade of its NOx allowances. Finally,
the settlement requires DMG to install or upgrade particulate matter
controls at nearly all of its units.
Contact: Mark Palermo, Office of Regional Counsel, (312) 886-6082
On March 11, 2005 Region 5 filed a
Consent Agreement and Final Order to conclude case against Rollprint
Packaging Products, Inc. Addison, Illinois. On March 11,
2005 Region 5 filed a Consent Agreement and Final Order (CAFO) concluding
an administrative penalty action against Rollprint Packaging Products,
Inc., Addison, Illinois for violations of the Resource Conservation
and Recovery Act (RCRA), 42 U.S.C. § 6901, et al.,
regulations concerning the generation and storage of hazardous waste
at its facilities. The CAFO requires Rollprint to pay a penalty of
$5,373 and complete a Supplemental Environmental Project (SEP) valued
at over $100,000. Rollprint’s SEP consists of developing
and implementing an environmental management system (EMS) at its
320 and 335 S. Stewart Avenue, Addison, IL facilities. On September
29, 2004, EPA filed an administrative penalty order against Rollprint
for not complying with the regulations concerning the generating
and storage of hazardous waste. By instituting an EMS system at these
facilities Rollprint will improve its ability to comply with the
regulations concerning hazardous waste management and further insure
the health and safety of its employees and the surrounding community.
The proposed penalty in this matter was $27,665. Region 5 determined
that it was appropriate and consistent with the SEP policy to mitigate
the settlement penalty to $5373 in light of the commitment to perform
the SEP.
Contact: Michael Berman (312) 886-6837
United States Files Complaint
Against Apex Oil Company. On April 5, 2005 the United States
Department of Justice filed a complaint in the Southern District
of Illinois against Apex Oil Company (“Apex Oil”) seeking
injunctive relief under the Resource Conservation and Recovery Act
(“RCRA”), 42 U.S.C. § 6901 et seq. Apex Oil is the
successor by merger to former owners and/or operators of a refinery
and associated pipelines and sewers located in Hartford, Illinois
from which releases of gasoline, diesel fuel, and other petroleum-based
substances have occurred. Such releases contributed to a large subsurface
plume of petroleum-based substances, from which oil and vapors have
infiltrated certain homes in Hartford, resulting in fires, explosions
and evacuations.
The complaint seeks a declaration under 28 U.S.C. § 2201 that
a request for injunctive relief pursuant to RCRA Section 7003(a), 42
U.S.C. § 6973(a), is not precluded by the discharge of debts and
claims provided by Bankruptcy Code Section 1141(d), 11 U.S.C. § 1141(d).
The injunctive relief requested pursuant to RCRA Section 7003(a) is
an order requiring Apex Oil to cooperate and participate in the investigation
and clean up of the large plume of petroleum-based substances beneath
Hartford. The plume is the result of commingled releases from pipelines,
refineries, and other petroleum facilities in the area. Currently,
three responsible parties are conducting an investigation and implementing
interim measures pursuant to a RCRA 7003/CWA 311 Administrative Order
on Consent.
Contact: Brian Barwick, primary contact (312) 886-6620.
Region 5 reaches $2.6 million settlement with
OMC Bankruptcy estate and separate prospective purchaser agreement for purchase
of OMC site with City of Waukegan.
U.S. Environmental Protection Agency Region 5, the State of Illinois and U.S.
Department of Justice have completed two settlements involving cleanup at Waukegan
Harbor. One is a $2.6 million agreement with Outboard Marine Corp.’s (OMC)
bankruptcy estate to help pay for additional Superfund ground water cleanup at
OMC’s Plant 2 site in Waukegan, IL The second settlement, a supplemental
consent decree with the city of Waukegan, ensures the continued operation and
maintenance of PCB containment cells on the Plant 2 site.
EPA has a long history of involvement at the 75-acre OMC site. The site was placed
on the Superfund National Priorities List in 1984 due to the presence of widespread
PCB contamination in Waukegan Harbor. EPA later filed a civil action against
the OMC, which resulted in a consent decree requiring a $20 million harbor cleanup.
OMC performed the cleanup and under the decree, placed contaminated sediment
from the cleanup in containment cells on its Plant 2 property. OMC thereafter
operated and maintained the cells.
OMC declared bankruptcy in 2000, selling off most of its assets and halting its
operation and maintenance of the containment cells. In 2002 the estate petitioned
for legal abandonment of the site, which the government opposed due to the environmental
hazards remaining there. Subsequently, the parties reached a settlement in 2002
requiring the estate to perform a limited amount of emergency cleanup work at
Plant 2 and to pay EPA $221,250 to fund further work prior to abandonment of
the site. Separately, EPA and the State also filed a civil complaint in 2002
seeking the cleanup of chlorinated solvents in the ground water beneath Plant
2.
Under the settlement, the OMC estate will place $2.6 million in a Superfund special
account to be used toward cleanup of the ground water beneath Plant 2. In addition,
the agreement grants EPA and Illinois EPA allowed unsecured claims against the
estate totaling approximately $2 million. The second settlement frees Waukegan
from future liability for the existing, historic contamination at the now-unoccupied
Plant 2 site — enabling potential redevelopment for the broader lakefront
area. In return, the City will operate and maintain the containment cells and
buildings on the site to prevent environmental problems from occurring in the
future. In addition, the second settlement addresses the possibility of a windfall
to the City upon the sale of the site attributable to the government cleanup,
and reserves the government’s ability to dedicate any windfall funds to
future required cleanup at the site.
Contact: Thomas Martin (312) 886-4273
Three Electronic Parts Firm Owners sent
to prison for 18 months. Three owners of a now-defunct electronic
parts manufacturing company in Bensenville, IL were each sentenced
to 18 months in prison by a federal judge on April 20, 2005. The three
pleaded guilty to conspiring to illegally discharge contaminated acidic
and caustic liquid waste into the Bensenville sewer system about every
three weeks between April 3, 1997 and December 19, 2001. The waste
would have qualified as RCRA hazardous waste if hauled off for proper
off-site disposal. The defendants also admitted conspiring to dilute
the pollutants by running a garden hose into a manhole to conceal the
discharges, and to parking a vehicle over the manhole to hide the hose.
The defendants also admitted as a part of the conspiracy to constructing
a bypass pipe to route the illegal discharges around New-Tech’s
on-site wastewater treatment system directly into the Bensenville sewer
system. Finally, as a part of the conspiracy Bensenville was falsely
informed that the illegally discharged wastewater was being hauled
off-site for proper disposal. The conspirators also periodically arranged
for proper shipments of waste to ward off suspicion.
The three defendants were equal owners and executive officers of
New Tech Electronics, Inc., which produced electronic printed circuit
boards. Kanubhai Patel was New
Tech’s president; his brother, Manubhai Patel, was New Tech’s treasurer;
and Mukesh Patel, was New Tech’s vice president. In addition to the prison
sentences, each defendant was fined $4,000 and required to serve three years
of supervised release following the prison term. The wastewater discharged by
New Tech into sewer drains connected to a wastewater treatment plant owned and
operated by Bensenville, which, after treatment, discharged wastewater into Addison
Creek, a protected waterway.
Contact: David M. Taliaferro (312) 886-0815
Region 5 Signs Consent Agreement and Final Order
with Malone Chemical, Inc. Region 5 initiated this enforcement action in September
of 2004. On April 4, 2005, the Region signed a consent agreement and
final order (CAFO) with Malone Chemical, Inc. of Kempton, Illinois, to settle
violations of Section 7(c)(1) of the Federal Insecticide, Fungicide, and Rodenticide
Act (FIFRA), 7 U.S.C. § 136e(c)(1). The alleged violations arose out of
Malone Chemical’s failure to file an Annual Pesticide Production Report
for 2003. FIFRA Section 7(a), 7 U.S.C. § 136e(a), prohibits the production
of any pesticide unless the establishment in which it is produced is registered
with the EPA. FIFRA Section 7(c)(1) and 40 C.F.R. § 167.85 require companies
registered with EPA to produce pesticides to notify the Agency annually of the
types and amounts of pesticides the company produced during the reporting year.
As part of the settlement, the Region considered the facts of the violation and
Malone Chemical’s past compliance efforts and demonstration that its registration
issues have been resolved for several years. Thus, the CAFO assesses a final
penalty of $100.
Contact: Robert S. Guenther, primary contact 312-886-0566; Holly McDonald, additional
contact 312-886-6012
Region 5 Signs Consent Agreement and
Final Order with Exacto, Inc. Region 5 initiated this enforcement
action in September of 2004. On April 4, 2005, the Region signed
a consent agreement and final order (CAFO) with Exacto, Inc. of Richmond,
Illinois, to settle violations of Section 7(c)(1) of the Federal
Insecticide, Fungicide, and Rodenticide Act (FIFRA), 7 U.S.C. § 136e(c)(1).
The alleged violations arose out of Exacto’s failure to file
an Annual Pesticide Production Report for 2003. FIFRA Section 7(a),
7 U.S.C. § 136e(a), prohibits the production of any pesticide
unless the establishment in which it is produced is registered with
the EPA. FIFRA Section 7(c)(1) and 40 C.F.R. § 167.85 require
companies registered with EPA to produce pesticides to notify the
Agency annually of the types and amounts of pesticides the company
produced during the reporting year. As part of the settlement, the
Region considered the facts of the violation Exacto’s prompt
compliance efforts. Thus, the CAFO assesses a final penalty of $2640.
Contact: Robert S. Guenther, primary contact 312-886-0566; Holly McDonald, additional
contact 312-886-6012
Region 5 enters into a Consent Agreement
and Final Order resolving RCRA Violations by Circuit Engineering,
L.L.C. in Addison, Illinois. On April 27, 2005, the Director
of Waste, Pesticides and Toxics Division, Region 5, signed a Consent
Agreement and Final Order resolving claims against Circuit Engineering
L.L.C. (Circuit) for violations of the Resource Conservation and
Recovery Act (RCRA), its regulations at 40 C.F.R. Parts 260 through
279 and the corresponding Illinois State Regulations at 35 Illinois
Administrative Code Part 703 et seq.
The Consent Agreement and Final Order (CAFO) simultaneously commences and concludes
the violations alleged against Circuit. Circuit produces circuit boards at
its facility. U.S. EPA has alleged that Circuit failed to comply with the provisions
of 35 Ill. Adm. Code § 722.134 (40 C.F.R. § 262.34) and failed to
obtain a permit in accordance with 35 Ill. Adm. Code §§ 703.121(a)
and 703.123 (40 C.F.R.§ 270.1) in violation of 35 Ill. Adm. Code § 703.121(a)
(40 C.F.R. § 270.1). Specifically, Circuit failed to take part in an annual
review of its initial personnel training in violation of 35 Ill. Adm. Code
725.116 (40 C.F.R. § 265.16), failed to have a contingency plan that complied
with all the components set forth in 35 Ill. Adm. Code 725.152 (e) (40 C.F.R. § 265.52(e)),
failed to submit copies of its contingency plan to all local police departments,
fire departments, hospitals and state and local response teams that may be
called upon to provide emergency services in violation of 35 Ill. Adm. Code
725.153(b) (40 C.F.R. § 265.53(b)), failed to have adequate secondary
containment in violation of 35 Ill. Adm. Code 725.293(b)(1) (40 C.F.R. § 265.193(b)(1)),
failed to file a notification stating the general location and description
of activity as required by Section 3010 of RCRA, 42 USC Section 6930 and failed
to send a number of manifests to the state within two working days after transporting
waste off-site in violation of 35 Ill. Adm. Code 722.123(a)(4). The proposed
penalty was $8,321. Region 5 initiated prefiling discussions on this matter
on December 23, 2004. Respondent has agreed to pay civil penalty of $7,489.
Contact: Nidhi O’Meara, primary contact 312/886-0568; Graciela
Scambiatterra, additional contact 312/353-5103.
Pesticide Applicator Charged
with Overspray. On April 26, 2005, Wabash Valley Service
Co., Glen S. Kinder and Noah David Horton were charged with applying
a pesticide in a manner inconsistent with its labeling in violation
of FIFRA. According to the filed charges, in May 2000 the defendants,
each of whom was a commercial applicator of pesticides, applied Aatrax
4L and Bicep II Magnum to a field in Hamilton County Illinois during
a time when the wind speed was approximately 20 m.p.h., contrary
to labelling instructions. If convicted on the charge, the individual
defendants face up to one year of imprisonment and a fine of up to
$100,000. The corporation may be fined up to $200,000 if convicted.
The filing of charges is only an accusation; all defendants are entitled
to a fair trial.
Primary Contact: David M. Taliaferro, Criminal Enforcement Counsel, (312) 886-0815.
Former pretreatment operator indicted
in Cook County, Illinois for hazardous waste use and disposal crimes.
On May 11, 2005, Harlee Steward, a former licensed waste water pretreatment
operator at Crescent Plating Works, an electroplating facility in
Chicago, Illinois, was indicted by a Cook County, Illinois grand
jury on two counts: 1) Unauthorized use of hazardous waste pursuant
to 415 ILCS 5/44(d)(1)(A) and; 2) Reckless disposal of hazardous
waste pursuant to 415 ILCS 5/44(f)(1), in connection with drums of
leaking hazardous waste found stored behind Harlee Steward's residence
at 1749 N. Whipple, Chicago, Illinois. On or about November 3, 2002,
approximately 15 drums of spent plating solution containing chromium
were discovered stored and leaking behind Mr. Steward;s residence.
Samples seized during execution of a search warrant confirmed the
presence of hazardous waste in the drums. A label containing the
name "Crescent Plating” was affixed to one of the drums.
Primary contact: David P. Mucha, Regional Criminal Enforcement Counsel,
312-886-9032
Region 5 files a Consent Agreement and Final
Order to settle case against W.W. Grainger, Inc., Lake Forest, Illinois. On
May 18, 2005, Region 5 filed a Consent Agreement and Final Order (CAFO) resolving
an administrative penalty action against W.W. Grainger, Inc., for violations
of the Ban on Nonessential Products Containing Class I Substances and Ban
on Nonessential Products Containing or Manufactured with Class II Substances,
40 C.F.R. Part 82, Subpart C (Nonessential Product Ban). The CAFO requires
Grainger to pay a penalty of $177,156. On September 28, 2004, Region 5 issued
an Administrative Complaint for the alleged violations of four different
requirements of the Nonessential Product Ban, including selling or distributing
a nonessential product and selling products to non-commercial purchasers.
In the complaint, Region 5 sought a penalty of $368,547. During the settlement
negotiations in this matter, Grainger provided information which caused EPA
to reconsider its position on the economic benefit of noncompliance. Grainger
has also demonstrated that it currently is in compliance with the requirements
of the Nonessential Product Ban. As a result of the information and Grainger’s
cooperation and good faith efforts to comply, Region 5 determined that it
was appropriate and consistent with the penalty policy to mitigate its proposed
penalty of $368,547 to a settlement penalty of $177,156.
Contact: Mony Chabria, 312-886-6842.
EAB Upholds Initial Decision in the Matter of Harpoon Partnership. On
May 19, 2005, the Environmental Appeals Board issued its decision affirming ALJ
Gunning's decision in the matter of Harpoon Partnership, and assessing a civil
penalty of $37,037 for violations of the Toxic Substances Control Act (TSCA)
for failure to comply with the regulatory requirements of 40 C.F.R. Part 745,
Subpart F regarding lead-based paint disclosure in residential housing (the Disclosure
Rule), specifically the requirements in 40 C.F.R. § 745.113(b)(1)-(4) and
(6).
EPA alleged violations in nine leasing transactions in an apartment
building owned by Harpoon. Two transactions involved children (one
child less than six years of age, one child over six but less than
twelve years of age); for the remaining seven transactions, we had
no evidence of a child or pregnant woman in the unit. (These issues
are related to the "extent" category in the Disclosure Rule
penalty policy). The complaint sought a civil penalty of $56,980.
Harpoon had used Hyde Park Realty Company, Inc., as its managing agent.
In its motion for partial accelerated decision, Harpoon argued that
it was a passive owner, and while it owned the building, Hyde Park
was the "lessor" for purposes of the Disclosure Rule. Further,
Harpoon argued it was without fair notice that it was a "lessor" under
the regulations. ALJ Gunning issued a partial accelerated decision
on these issues, and concluded that the term "lessor" does
include owners such as Harpoon that hire management companies to act
as their agents, and therefore Harpoon is a "lessor" under
the Disclosure Rule. ALJ Gunning incorporated this finding into her
initial decision following a hearing. ALJ Gunning found that Harpoon
had violated the requirements in 40 C.F.R. § 745.113(b)(1)-(4)
and (6), and assessed a penalty of $37,037. This amount included a
35% reduction for considerations relating to culpability.
In its appeal to the EAB, Harpoon argued (1) it did not have fair
notice of its status as a lessor, (2) it did not violate the Disclosure
Rule because certification required under 40 C.F.R.
§ 745.113(b)(6) need not occur before a lessee/tenant becomes obligated
under a lease, and (3) EPA's penalty policy for the Disclosure Rule results in
excessive penalties.
The EAB upheld ALJ Gunning's decision in its entirety, finding (1)
Harpoon had fair notice that it was a "lessor" under the
Disclosure Rule, and is therefore subject to all of the requirements
applicable to lessors, (2) Harpoon is liable because all requirements
in 40 C.F.R. § 745.113(b) must be completed before the time the
lessee/tenant becomes obligated under a lease, including the certification
requirements, pursuant to both 40 C.F.R. § 745.113(b) and § 745.100
(and note that the EAB distinguishes obligations pertaining to recordkeeping
from obligations related to the action of disclosing information),
and (3) the ALJ used the appropriate penalty policy related to the
Disclosure Rule rather than the a more general TSCA penalty policy
in her initial decision.
In its decision, the EAB acknowledges the importance of the recordkeeping
requirements, noting that otherwise the regulatory agencies would be
forced to ascertain compliance by contacting individual tenants, relying
on their recordkeeping and memories, and is therefore not persuaded
that the requirements in 40 C.F.R. § 745.113(b) are "insignifcant
elements of the regulatory scheme" as Harpoon argues.
ORC Contacts: Mary McAuliffe 312-886-6237; James Cha, 312-886-0813;
WPTD Contact: Scott Cooper 312-886-1332
Region 5 senior manager sentenced in federal
court for violations of 18 USC § 641: knowing conversion of public
money. In December of 2004, Jon Grand, Director of the Chicago
regional Office of International Affairs, entered a guilty plea in
federal court to the above crime before Judge Joan Lefkow in the United
States District Court for the Northern District of Illinois, Eastern
Division. United States of America v. Jon T. Grand, No. 04 CR 1088.
Specifically, from on or about December 8, 1999, until in or about
May 2004, Mr. Grand did knowingly convert to his own use funds of the
United States in the amount of $99,882.00, administered by the U.S.
EPA in the form of foreign housing allowance benefits to which Mr.
Grand was not entitled. On June 10, 2005, Mr. Grand was sentenced to
four months in a federal prison, thereafter to two years’ probation,
during which time he would also serve four months’ home confinement.
The Court also assessed Mr. Grand an additional $3,000.00 in fines,
and directed him to pay restitution to the federal government, in the
amount of monies he had wrongfully converted to his own use.
Contact: Lynn N. Donley, Assoc. Regional Counsel, primary contact
at 312.353.3735.
Region 5 signs a Consent Agreement and
Final Order with Gunite Corporation which requires a penalty and
SEP, resolving TSCA violations at Rockford, Illinois facility.
On June 21, 2005, a Consent Agreement and Final Order was filed with the Region
5 Regional Hearing Clerk resolving violations of federal TSCA regulations at
the Gunite Corporation grey and ductile iron foundry on the Rock River, in
Rockford, Illinois. The settlement requires Gunite to pay a cash penalty of
$69,510 and to remove, and to dispose of, four PCB transformers (all that remain
at the facility) by December 2006.
The administrative complaint which was filed on January 4, 2005, in
this matter arose from a multimedia facility inspection conducted during
September 2003. To date, that administrative complaint is the only
enforcement action taken by EPA against Gunite. The complaint alleged
that Gunite violated TSCA and its regulations by: a) failing to maintain
written document logs on PCB items for four years; b) failing to maintain
written records of PCB Transformer inspections during four years; and
c) failing to register its PCB Transformers. The complaint sought a
penalty of $138,600. Before Gunite filed an Answer, the parties settled.
The settlement requires Gunite to remove, and to dispose of, the four
PCB Transformers which remain at its facility no later than December
2006, at a cost of at least $48,300. Those four PCB Transformers contain,
in total, 1183 gallons of PCB dielectric fluid. Gunite also must pay
a cash penalty of $69,510. Other benefits of this enforcement action
is that it caused Gunite to gain awareness of the PCB regulations and
to come into compliance with the regulations pertinent to these violations;
additionally, removal of the PCB Transformers will eliminate the possibility
of future PCB spills at the facility.
Contact: Jacqueline Miller, primary contact, 312/886-7167; Terry Bonace,
additional contact, 312/886-3387
Harpoon Partnership Files
Notice of Petition for Review in In the Matter of Harpoon Partnership -
On June 20, 2005, Harpoon Partnership filed a Notice of Petition for
Review of the Environmental Appeals Board’s decision in In the
Matter of Harpoon Partnership, TSCA Appeal No. 04-02. The EAB’s
order affirmed Judge Gunning’s Initial Decision finding liability
for the Respondent’s violations of Section 1018 of the Residential
Lead-Based Paint Hazard Reduction Act, 42 U.S.C. § 4852d, and
Section 16(a) of the Toxic Substances Control Act, 15 U.S.C. § 2615(a),
and assessing a penalty of $37,037.
Primary contacts: Mary McAuliffe, Office of Regional Counsel, (312) 86-6237;
Jeff Herrema, Office of General Counsel, (202) 564-9500
United States files Motion to Dismiss
Petition for Review of EAB Order in the Matter of Harpoon Partnership. On
July 28, 2005, the United States filed EPA’s Motion to Dismiss for Lack
of Jurisdiction in response to Harpoon Partnership’s Petition for Review
of an Order of the Environmental Protection Agency. On July 29, 2005, the Seventh
Circuit ordered Harpoon to file its response to the Motion on or before August
12, 2005, and suspended briefing pending further court order. In its Motion,
the United States argued that Harpoon failed to file its Petition for Review
within the mandatory and jurisdictional time limit for seeking review under Section
16(a)(3) of the Toxic Substances Control Act. The underlying EAB Order issued
on May 19, 2005 upheld ALJ Gunning’s Initial Decision finding Harpoon liable
for violations of the Residential Lead-Based Paint Hazard Reduction Act–which
is enforced through TSCA–and assessing a penalty of $37,037.
Primary contacts: Matthew Oakes, DOJ, Appellate Defense (202-514-2686),
Mary McAuliffe, Office of Regional Counsel (312-886-6720), Jeffrey
Herrema, Office of General Counsel (202-564-7388).
Region 5 files Consent Agreement and Final
Order to commence and conclude case against PPG Industries, Inc.,
Mt. Zion, Illinois. On August 10, 2005, Region 5 filed
a Consent Agreement and Final Order (CAFO) commencing and resolving
simultaneously an administrative penalty action against PPG Industries,
Inc., for one violation of Section 103 of the Comprehensive Environmental
Response, Compensation, and Liability Act and four violations of
Section 304 of the Emergency Planning and Community Right-to-Know
Act. Specifically, PPG allegedly failed to provide timely emergency
notifications and follow-up notifications to the National Response
Center, State Emergency Planning Commission, and Local Emergency
Planning Committee after a knowledge of a release of approximately
711 pounds of anhydrous ammonia on February 1, 2004. The CAFO requires
PPG to pay a penalty of $26,064.24, and perform a Supplemental Environmental
Project (SEP) involving the purchase and donation of two thermal
imaging cameras and an air compressor to the Mt. Zion Fire Department.
The cost of the SEP is estimated to be $46,550. On May 3, 2005,
U.S. EPA issued a Notice of Intent to File Administrative Complaint
letter indicating that we were prepared to file a complaint seeking
$80,543.44. During pre-filing settlement negotiations, this number
was reduced to $52,353.24, based on cooperation and quick settlement.
Region 5 determined that it was appropriate and consistent with the
SEP and Enforcement Response policies to settle this matter for a
cash penalty of $26,064.24 and performance of the SEP.
Contact: Mony Chabria, 312-886-6842.
Harpoon Partnership files
Motion to Withdraw Petition for Review in Seventh Circuit Proceeding. On
August 12, 2005, Harpoon Partnership filed a Motion to Withdraw Petition
for Review, along with a proposed Order granting Petitioner’s
Motion and ordering payment of the penalty within thirty days of
entry of the Order by the Seventh Circuit. On July 28, 2005, the
United States filed EPA’s Motion to Dismiss for Lack of Jurisdiction
in response to Harpoon Partnership’s Petition for Review of
an Order of the Environmental Protection Agency. On July 29, 2005,
the Seventh Circuit ordered Harpoon to file its response to the United
States’ Motion on or before August 12, 2005, and suspended
briefing pending further court order. In its July 28th Motion, the
United States argued that Harpoon failed to file its Petition for
Review within the mandatory and jurisdictional time limit for seeking
review under Section 16(a)(3) of the Toxic Substances Control Act.
The underlying EAB Order issued on May 19, 2005 upheld ALJ Gunning’s
Initial Decision finding Harpoon liable for violations of the Residential
Lead-Based Paint Hazard Reduction Act–which is enforced through
TSCA–and assessing a penalty of $37,037.
Primary contacts: Matthew Oakes, DOJ, Appellate Defense (202-514-2686),
Mary McAuliffe, Office of Regional Counsel (312-886-6720), Jeffrey Herrema, Office
of General Counsel (202-564-7388).
Consent Decree entered for Four Kerr-McGee
Superfund Sites. The
U.S. District Court
for the Northern District of Illinois recently, August 10, 2005, entered the
United States Environmental Protection Agency (U.S. EPA) Region 5's consent decree
embodying
a "global" settlement of all remaining issues at four radioactively-contaminated
Kerr-McGee National Priorities List (NPL) Superfund Sites in West Chicago and
DuPage County, Illinois.
Beginning in the mid-1930s, Lindsay Light and Chemical refined radioactive
ores to obtain thorium for gas light mantles and weaponry at a facility
in the downtown area of the City of
West Chicago. The processing and disposal of radioactive ores resulted in four
related Superfund sites.
Under the consent decree, Kerr-McGee Chemical LLC, Linsday’s
corporate successor that also refined thorium at the West Chicago facility,
will perform the remedial design/remedial action at the Kress Creek/West
Branch DuPage River Site and the Sewage Treatment Plant Site river
operable unit. The riparian cleanup involves nearly 8 miles or river
banks, sediments and flood plains. It will likely cost over $73 million.
Kerr-McGee also will implement groundwater monitoring at the Reed-Keppler
Park Superfund Site required by a no-action Record of Decision (ROD).
U.S. EPA issued the no-action ROD following $33 million removal of
thorium contamination from Reed-Keppler Park pursuant to a U.S. EPA
unilateral administrative order. At the Residential Areas Site, Kerr-McGee
also cleaned up nearly 700 residential properties pursuant to a U.S.
EPA unilateral administrative order at the cost of $66 million and
following completion of 99% of the removal work, U.S. EPA issued a
no-action ROD for the Residential Areas Sites.
The consent decree also resolves Kerr-McGee's Reed-Keppler Park 106(b)
petition and the Federal and State natural resource damage issues.
Kerr-McGee will reimburse U.S.EPA for $6 million of approximately $20
million in past costs incurred by U.S. EPA at the four NPL sites. Kerr-McGee
will pay U.S. EPA $1.5 million by September 9, 2005, but the remaining
past costs will be paid after Department of Energy reimburses 55.2%
of Kerr-McGee response costs
incurred at the NPL sites. Kerr-McGee will reimburse up to $2 million in U.S.
EPA’s future costs. The consent decree is a three-party agreement between
Kerr-McGee, the United States, and the State of Illinois.
Contact: Mary Fulghum, primary contact (312) 886-4683, Cathleen Martwick,
additional contact, (312) 886-7166, Padma Bending, 106 (b) petition
response contact, (312) 353-8917.
Seventh Circuit Dismisses Harpoon Partnership’s
Petition for Review. On August 24, 2005, the Seventh Circuit
dismissed Harpoon Partnership’s Petition for Review of an Order
of the Environmental Protection Agency pursuant to Federal Rule of
Appellate Procedure 42(b). On August 22, 2005, the United States
filed its Response to Harpoon Partnership’s August 12, 2005
Motion to Withdraw Petition for Review. The United States noted that
Harpoon’s August 12th Motion should be treated as a motion
for voluntary dismissal under Rule 42 of the Federal Rules of Appellate
Procedure. In its Response, the United States stated that while EPA
disagrees with Harpoon’s characterization that its petition
was “timely filed”, EPA consents to the relief requested
by Harpoon. On July 28, 2005, the United States filed EPA’s
Motion to Dismiss for Lack of Jurisdiction in response to Harpoon
Partnership’s Petition for Review of an Order of the Environmental
Protection Agency. On July 29, 2005, the Seventh Circuit ordered
Harpoon to file its response to the United States’ Motion on
or before August 12, 2005, and suspended briefing pending further
court order. In its July 28th Motion, the United States argued that
Harpoon failed to file its Petition for Review within the mandatory
and jurisdictional time limit for seeking review under Section 16(a)(3)
of the Toxic Substances Control Act. The underlying EAB Order issued
on May 19, 2005 upheld ALJ Gunning’s Initial Decision finding
Harpoon liable for violations of the Residential Lead-Based Paint
Hazard Reduction Act–which is enforced through TSCA–and
assessing a penalty of $37,037. Primary contacts: Matthew Oakes,
DOJ, Appellate Defense (202-514-2686), Mary McAuliffe, Office of
Regional Counsel (312-886-6720), Jeffrey Herrema, Office of General
Counsel (202-564-7388).
Region
5 signs a Consent Agreement and Final Order with Orica Nitrogen,
LLC. Region 5 initiated this enforcement action
in September of 2004. On September 12, 2005, the Region filed
a Consent Agreement and Final Order with Orica Nitrogen,
LLC, of Morris, Illinois to settle alleged violations of
Section 103 of the Comprehensive Environmental Response,
Compensation, and Liability Act, 42 U.S.C. § 9603 and
Section 304 of the Emergency Planning and Community Right
to Know Act, 42 U.S.C. § 11004, at their facility in
Morris, Illinois. The alleged violations arose out the failure
to promptly report a continuous release of ammonia discovered
at their facility in April of 2003. Under the terms of the
agreement, Orica will pay a penalty of $13,750 and complete
a Supplemental Environmental Project (SEP) costing at least
$100,000. Through the SEP, Orica will reduce nitrogen oxides
emitted by its nitric acid plant by an estimated 30 tons
per year by installing a hydrogen peroxide dosing system
and operating the system during startups.
Contact: Erik Olson, primary contact 312-886-6829; James Entzminger,
additional contact 312-886-4062
Region 5 signs a Consent Agreement and Final Order
with CITGO Petroleum Corporation and PDV Midwest Refining L.L.C., resolving
Clean Air Act violations at Lemont, Illinois Refinery
On September 30, 2005, U.S. EPA Region 5 filed a Consent Agreement
and Final Order (CAFO) with the Regional Hearing Clerk that simultaneously
commences
and concludes, under Section 113 of the Clean Air Act (CAA), 42 U.S.C. § 7413,
alleged violations of the particulate matter limit in the State Implementation
Plan (SIP), by CITGO Petroleum Corporation (the operator) and PDV Midwest Refining
L.L.C. (the owner), regarding the Lemont, Illinois refinery. From February 28,
2005 through March 9, 2005, Respondents shut down the carbon monoxide boiler
on its fluidized catalytic cracking unit (FCCU) for maintenance. Respondents
continued to operate the FCCU at a reduced rate and emissions from the FCCU were
vented directly to the atmosphere at a rate that exceeded the allowable particulate
emission rate in the SIP. Under the terms of the CAFO, CITGO agrees to pay $22,750
as a penalty, and to perform a supplemental environmental project (SEP) to develop
a portion of the I & M Canal Path for recreational purposes (i.e., hiking,
fishing, canoeing, and to promote the interconnection of the path with existing
community bike paths) at a cost of $80,000.
Contacts: Mary McAuliffe, 312/886-6237; Kathy Keith, 312/353-9687
Confined Animal Feedlot Operation Operator
Indicted for knowingly discharging animal waste without a permit.
David Inskeep was an operator of Inwood Dairy, Inc., a concentrated animal feedlot
operation (CAFO) in Elmwood, Illinois, with 1,250 head of cattle. On September
21, 2005, a grand jury in Peoria in the Central District of Illinois issued a
one-count felony indictment alleging that Inskeep knowingly discharged a pollutant
to a water of the United States without an NPDES permit, violating the Clean
Water Act, 33 U.S.C. Sections 1311(a) and 1319(c)(2).
The indictment alleged that on February 16 and 17, 2001, Inskeep used
a flexible hose to knowingly discharge over one million gallons of
cattle waste from the CAFO’s waste lagoon to an unnamed tributary
of the Illinois River. The indictment also alleged that Inskeep discharged
despite multiple IEPA employees telling him in the preceding few days
that this discharge would be illegal. If convicted, Inskeep faces imprisonment
for up to three years and a criminal fine of up to $50,000 per day
of violation. A defendant is presumed innocent until proven guilty.
U.S. EPA’s Criminal Investigation Division, the Illinois Department
of Natural Resources, the Illinois Environmental Protection Agency
and the Illinois State Police jointly investigated this matter.
Contact: Kris Vezner (312) 886-6827
U.S. EPA files administrative
complaint against Circuitronics LLC, located in Wheaton, Illinois.
On September 30, 2005, Region 5 filed an administrative Complaint against Circuitronics
LLC. The Complaint proposes a civil penalty of $46,224 and orders Circuitronics,
among other things, to add information on facility emergency equipment to its
hazardous waste contingency plan, and to maintain compliance with the RCRA training
requirements. In the Complaint, Region 5 alleges that Circuitronics failed to:
1) obtain a complete integrity and installation assessment of its two hazardous
waste storage tank systems; 2) include the location, description, and outline
of the capabilities of its emergency equipment in its contingency plan; 3) provide
annual training for employees with duties involving the management of hazardous
waste for a period of four years; and 4) have an emergency coordinator who is
familiar with all aspects of its contingency plan. Primary Contact: Jacqueline
Miller, ORC, (312) 886-7167 and Todd Brown, Waste, Pesticides and Toxics Division,
(312) 886-6091.
Region 5 issues Administrative
Order, under Section 308 and 309 of the CWA to the City of Wood River,
Illinois, in connection with combined sewer overflows (CSOs).
On September 29, 2005, Region 5 issued to the City of Wood River, Illinois, an
administrative compliance order, pursuant to CWA section 309, based on a joint
EPA-Illinois inspection of the City’s WWTP and the fact that, in recent
years, the City has had many CSO events. Because a number of requested records
were not available during the inspection, the administrative order also seeks
information pursuant to CWA section 308. It appears that the City is not complying
with all of the federal CSO nine minimum controls, including maximizing flow
to the WWTP and maximizing storage of wastewaters in order to prevent CSO events.
The administrative order not only directs the City to demonstrate its compliance
with, and/or come into compliance with, the nine minimum controls, but also directs
the City to prepare, and to submit to EPA, a long-term control plan within one
year. This is the first such CWA administrative compliance order to be issued
by Region 5.
Primary Contact: Jacqueline Miller, ORC, (312) 886-7167 and John Wiemhoff, Water
Division, (312) 353-8546.
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