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Round 3-15: Adopting Private Party Allocations




Reform Description
This reform was initiated to help reduce transaction costs by allowing EPA to adopt private party allocations (including those that identify an orphan share) as the basis for settlement.

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Reform Status
check mark Implementation of this reform is complete.

This reform was merged with Reform 3-11, Orphan Share Compensation. Because of work done under Reform 3-11, parties who wish to submit private party allocations may do so in the context of either work or cost recovery settlement negotiations. Therefore, a separate private party allocation reform was no longer necessary.

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Results
The Agency has adopted private party allocations at several sites, including the Doepke Holliday site in Kansas. At this site, EPA accepted the PRPs' allocation scheme, providing for settlement with a group of 66 parties (including two Federal agencies). As a result of this settlement, estimated at $11 million, the PRPs agreed to perform the cleanup of the site and reimburse 100 percent of EPA response costs. EPA successfully avoided costly and time-consuming allocation disputes and third-party contribution litigation. The Agency established a national workgroup to determine the parameters and identify opportunities for implementation of this reform. The workgroup determined that current Superfund policies are adequate. As such, no new guidance is planned.

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