EPA v. Oyster Bay, Town of

Case summary

'The Town Of Oyster Bay (the Town ), a municipality, is planning to acquire, by eminent domain, a 15-acre portion (the Property ) of the Liberty Industrial Finishing Superfund Site, Nassau County, New York (the Site ) in order to expand an adjacent public park. Prior to completing its acquisition of the Property, the Town is entering into a Prospective Purchaser Agreement ( PPA ) with EPA. Under the PPA, the U.S. would covenant not to sue or take administrative action against the Town under Section 106 or 107(a) of CERCLA if the Town becomes the owner of the Property and the U.S. would release an existing Superfund lien that had been perfected against the Property under CERCLA Section 107(1) and agree to forbear from perfecting a Superfund windfall lien under CERCLA Section 107(r)(2). In consideration, the Town would pay to EPA an amount of money equal to the appraised fair market value of the Property, for its highest and best use, as clean, reduced by amounts that the Town is required to pay to the present owners of the Property for the taking by eminent domain, but in no event less than $500,000. The consideration paid by the Town to EPA will be deposited into a Site specific special account and will be made available for use in remediation of the Site. The Site includes a 30-acre facility surrounded by suburban areas that are primarily residential. During the second World War and, to a lesser extent during the Korean War, industrial operations at the Site included aircraft parts manufacturing and associated metal finishing processes largely in support of military efforts. After the wars, the Site was used for a variety of other operations including metal finishing, fiberglass manufacturing, and warehousing. Throughout most of the period of industrial operation, wastes were discharged into below-grade sumps, underground leaching chambers, and unlined groundwater recharge basins or lagoons at the Site. The Site is located above a sole source drinking water aquifer. Groundwater underlying the Site is contaminated with both organic and inorganic substances and Site soils continue to act as a source of such contaminants. On March 28, 2002, EPA issued a Record of Decision seclecting a comprehensive cleanup of the Site addressing soils and groundwater, as well as contaminated sediments at a down-gradient nature preserve at an estimated present value cost of $34,090,000. Although the Property had long been used for commerical and industrial purposes, the announcement by the Town of its intention to acquire the Property for recreational use, together with other considerations, let EPA to select a more comprehensive and costly soils remedy than would otherwise have been required for commercial and industrial usage. EPA has begun negotiations with PRPs at the Site for implementation of the remedy.' CCDS: The Town of Oyster Bay, (the Town ), is a municipality that is planning to acquire, by eminent domain, a 15-acre portion the Property ) of the Liberty Industrial Finishing Superfund Site, Nassau County, New York (the Site ) in order to create a new public park by expansion of an existing adjacent park. The Site is listed on the National Priorities List under the Comprehensive Environmental Response, Compensation, and Liability Act ( CERCLA ) and includes a 30-acre facility in the midst of a mostly residential area. Industrial operations at the Site resulted in contamination of site soils and an underlying sole source aquifer. EPA has selected a comprehensive cleanup of the Site with an estimated present value cost of more than $34-million, and is conducting negotiations with PRPs at the Site for implementation of the remedy. The announcement by the Town of its intention to acquire the Property for use as a municipal park, together with other considerations, led EPA to select a more comprehensie remedy than would otherwise have been required for commercial and industrial usage. Under the PPA, the Unite

Defendants (1)

• Oyster Bay, Town ofNamed in complaintNamed in settlement

Facilities (1)

• LIBERTY INDUSTRIAL FINISHING

  55 MOTOR AVENUE, FARMINGDALE, NY, 11375

  Registry ID: 110022860983

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (1)

• Oyster Bay, Town ofentered 2003-06-10

  Primary law: CERCLA

Timeline (4 milestones)

• 2002-09-20Complaint Filed/Proposed Order
• 2002-10-11Enforcement Action Data Entered
• 2003-06-10Enforcement Action Closed
• 2003-06-10Final Order Issued