EPA v. CAI INC

Case summary

See Case Summary information for Settlement #1 and #2 below. Settlement #1: On June 30, 2011, the U.S. District Court for the District of Massachusetts entered a Partial Consent Decree (CD) between the United States and Arnel Company, Inc. (Arnel), a potentially responsible party at the Danversport Explosion Site (Site) in Danvers, Massachusetts. The CD settles a complaint filed by the United States under CERCLA Sections 107(a) and 113(g)(2) seeking recovery of costs incurred by the EPA for an emergency response following an explosion at an ink and paint products manufacturing facility, as well as a declaration of liability for future costs the United States may incur at the Site. In addition to settling the CERCLA claims, the CD also settles the United States’ claim for civil penalties under Sections 113(a) and (b) of the Clean Air Act (CAA) for violations of CAA 112(r)(1) (General Duty Clause). The United States determined that Arnel has a limited ability to pay. Under the CD, Arnel will pay the United States $3,750 to resolve the CAA civil penalty, $11,250 partial reimbursement for EPA’s CERCLA response costs at the Site, as well as pay the United States 90% of certain monetary amounts received by Arnel in connection with the resolution of claims related to the Site. Settlement #2: The United States District Court for the District of Massachusetts entered a Partial Consent Decree on October 5, 2011 that settles EPA claims against Defendants C.A.I. Inc. ( CAI ), Sartorelli Realty LLC, ( SRLLC ), and Roy A. Nelson as Trustees of Nelson Danvers Realty Trust ( NDRT ), pursuant to Section 107 of CERCLA and Sections 112(r) and 114(a) of the CAA with respect of the Danversport Superfund Site, a former operator of an inks and paint products manufacturing facility that exploded and burned in 2006 the day before Thanksgiving. Under the CD the owners and operator will pay EPA a projected total of $1.3 million, including cash and net proceeds from sale of the facility property, assuming the property sells for its appraised value. Most of the recovery will go to remimburse EPA for $2.7 million in costs incurred cleaning up hazardous waste after the explosion. In addition, operator C.A.I. Inc. will pay a penalty of $100,000 to settle EPA allegations that conditions at the facility violated the General Duty Clause in Section 112(r) of the Clean Air Act. The Partial CD entered October 5, 2011. The settlement amounts in both consent decrees are based on demonstrations by the settling defendants of limited financial resources.

Defendants (5)

• CAI INC (SB)Named in complaintNamed in settlement
• ROY A NELSON AS TRUSTEE OF THE NELSON DANVERS REALNamed in complaintNamed in settlement
• SATORELLI REALTY LLCNamed in complaintNamed in settlement
• ARNEL COMPANY INCNamed in complaintNamed in settlement
• DANVERSPORT PROPERTYNamed in complaintNamed in settlement

Facilities (2)

• CAI INC

  126 WATER STREET, DANVERS, MA, 01923

  Registry ID: 110024325256

• ARNEL CO INC

  126 WATER STREET, DANVERS, MA, 01923

  Registry ID: 110024325256

Statutes cited

• CERCLA 107L — Lien
• CAA 114 — Record keeping, Inspection, Information Request
• RCRA 3002 — Standards Applicable to Generators of Hazardous Waste
• CAA 112[R][1] — Prevention of Accidental Release/General Duty Clause
• CERCLA 107A — Cost Recovery

Enforcement conclusions (2)

• CAI INCentered 2011-10-05

  Primary law: CERCLA

  Federal penalty: $100,000

• ARNEL COMPANY INCentered 2011-06-30

  Primary law: CERCLA

  Federal penalty: $3,750

Timeline (9 milestones)

• 2008-12-12Referred To Dept Of Justice
• 2008-12-15Enforcement Action Data Entered
• 2009-06-22Supplemental Referral-Adding parties, counts
• 2010-03-04Complaint Filed With Court
• 2010-05-10Supplemental Referral-Adding parties, counts
• 2011-08-12Final Order Lodged
• 2011-10-05Final Order Entered
• 2011-10-05Concluded
• 2012-02-03Enforcement Action Closed