EPA v. GUTERL SPECIAL STEEL

Case summary

In March 1996, EPA and the New York State Department of Environmental Conservation (NYSDEC) conducted an inspection of the Site and discovered, among other things, deteriorating drums of hazardous substances at the Site, as well as radiological contamination that was generated at the Site during the 1940s and 1950s, when uranium and thorium rolling mill operations were conducted there under a contract and subcontract with the former Atomic Energy Commission (AEC). EPA completed the removal of non-radioactive hazardous substances from the Site in June 1997. EPA's removal action did not address the radiological contamination at the Site (except for certain mixed radioactive and hazardous wastes). Instead, NYSDEC took the lead on addressing the radiological contamination with the U.S. Department of Energy, the successor agency to the AEC for purposes of the radiological contamination. GSSC and its parent company, Guterl Steel Corporation, filed for bankruptcy under Chapter 11 (reorganization) of the U.S. Bankruptcy Code in 1982. The two cases were converted to Chapter 7 (liquidation) cases in 1990, and were consolidated in 1995. When GSSC's bankruptcy petition was filed, the company's real and personal property (consisting primarily of the GSSC facility and associated machinery and equipment) were subject to a mortgage and security interest of approximately $8.5 million in favor of Marine Midland Bank, which was guaranteed by the Economic Development Administration (EDA) (an agency within the U.S. Department of Commerce), and by a mortgage and security interest of approximately $4.7 million in favor of Southern Investors Mortgage Co., which was guaranteed by the Farmers Home Administration (FHA). In 1996, EPA successfully opposed the bankruptcy trustee's proposed abandonment of the GSSC facility property. EPA documented $748,615.73 in response costs incurred by EPA with respect to the Site as of February 1999. On February 22, 2001, the U.S. Bankruptcy Court for the Western District of Pennsylvania issued an Order stating that $549,017.44 of the funds in the bankruptcy estate were entitled to administrative expense priority in favor of EPA. Following the closing of the bankruptcy estate in November 2004, the $549,017.44 was deposited into a U.S. Department of Justice suspension account pending resolution of the dispute between EPA and EDA over distribution of the funds in the suspension account.

Defendants (2)

• GUTERL SPECIAL STEEL CORPNamed in complaintNamed in settlement
• GUTERL STEEL CORPNamed in complaintNamed in settlement

Facilities (1)

• ALLEGHENY LUDLUM CORPORATION SPECIAL MATERIALS DIVISION

  695 OHIO STREET, LOCKPORT, NY, 14094

  Registry ID: 110000326549

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (1)

• GUTERL SPECIAL STEEL CORP AND GUTERL STEEL CORPentered 2001-02-22

  Primary law: CERCLA

Timeline (6 milestones)

• 2000-02-11Enforcement Action Data Entered
• 2000-03-10Referred To Dept Of Justice
• 2000-06-15Complaint Filed With Court
• 2001-02-22Final Order Lodged
• 2001-02-22Final Order Entered
• 2004-11-01Enforcement Action Closed