EPA v. Lyondell Chemical Company, Inc. et al. (NC)(NLP)

Case summary

Defendant and 93 affiliates filed for bankruptcy under Chapter 11. Several affiliates are potentially responsible parties under CERCLA Section 107 for costs incurred and to be incurred by EPA with regard to the Diamond Alkali Site, Lower Passaic River Study Area (LPRSA). EPA handled this matter as a national case, filing a proof of claim for numerous sites including the LPRSA, and pursuing both a general unsecured claim for unreimbursed response costs and a position that injunctive obligations would not be discharged in bankruptcy. In the bankruptcy settlement agreement, the United States resolved EPA's claims for the LPRSA by agreeing to allowed claim amounts against three affiliates. In addition, the debtors agreed to make a cash payment for the LPRSA, as part of the resolution of a dispute between the US and debtors concerning EPA's position on dischargeability of injunctive obligations. Region 2 anticipates that the money received on account of the allowed claim will be placed into the Special Account for the Diamond Alkali Site and will be used by EPA in the performance of the focused feasibility study for the LPRSA, and possibly additional site study/planning work. Exactly how the funds are used will depend on the timing of the bankruptcy distributions and the actual amount received by Region 2. The cash payment will be applied as a credit against the obligations of the LPRSA Cooperating Parties Group (CPG) to pay EPA's oversight costs for the remedial investigation and feasibility study that the CPG is performing.

Defendants (5)

• Lyondell Chemical Company, Inc.Named in complaintNamed in settlement
• Equistar Chemicals LPNamed in settlement
• Millenium Petrochemicals Inc.Named in complaintNamed in settlement
• MHC Inc.Named in complaintNamed in settlement
• Walter Kidde & Company, Inc.Named in complaintNamed in settlement

Facilities (1)

• DIAMOND ALKALI CO.

  80 LISTER AVE, NEWARK, NJ, 07105

  Registry ID: 110009324409

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (1)

• Lyondell Chemical Company, Inc. et al. (NC)(NLP)entered 2010-04-23

  Primary law: CERCLA

Timeline (7 milestones)

• 2009-04-24Referred To Headquarters
• 2009-07-02Referred To Dept Of Justice
• 2009-07-06Complaint Filed With Court
• 2009-07-14Enforcement Action Data Entered
• 2010-03-31Final Order Lodged
• 2010-04-23Final Order Entered
• 2010-04-23Concluded