EPA v. Eastman Kodak Company

Case summary

The Defendant and its United States subsidiaries filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code on January 19, 2012. The cases are jointly administered under Case No. 12 - 10202 (ALG). The United States Department of Justice timely filed a proof claim. Defendant is a materials science company that was once the world’s leading producer of film and cameras. The Defendant emerged from Bankruptcy in September, 2013, but the Bankruptcy Court retained jurisdiction concerning settlement of the United States protective claim described below. Request the Department of Justice file a claim against the Defendant for past and future response costs under the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §§ 9601-9675 with respect to the Mercury Refining Superfund Site, located in Colonie and Guilderland, New York. EPA also requested DOJ file a claim against the Defendant for past and future CERCLA response costs with respect to the Fair Lawn Well Field Superfund Site in the Borough of Fair Lawn, New Jersey. In addition, EPA requested DOJ file a protective proof of claim with respect to the Defendant's obligations under an administrative settlement agreement in which the Defendant and two other potentially responsible parties agreed to perform a remedial investigation and feasibility study under CERCLA with respect to the Fair Lawn Well Field Site. EPA requested the filing of a protective proof of claim in the event that an appropriate court finds that the Defendant's obligations under the settlement agreement are dischargeable claims under 11 U.S.C. § 101(5), rather than obligations and requirements with which the reorganized debtor must comply. The Department of Justice also filed a protective proof of claim with respect to the Defendant's obligations under the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act (RCRA), 42 U.S.C. §§ 6901-6992k. The Defendant operates under a permit issued by the State of New York pursuant to the state’s RCRA-authorized program. The Defendant's obligations under the permit include corrective action with respect to pre-existing contamination (contamination in existence prior to September 3, 2013) at the Eastman Business Park, and the nearby Genesee River. The Bankruptcy Court on May 13, 2014 approved a Settlement Agreement between the Reorganized Debtor and United States of America, acting on behalf of the EPA (RCRA and CERCLA claims) and the Department of the Interior (Natural Resource Damage claim). The Settlement provides that necessary RCRA corrective action at the Eastman Business Park, and the Genesee River will be funded through an Environmental Trust containing $49 million provided by the Defendant. The corrective action work will be carried out by the New York State Department of Environmental Conservation (NYSDEC). NYSDEC will be responsible for providing up to an additional $50 million, if required, for the corrective action work above the initial $49 million. If costs exceed $99 million, the Defendant and NYSDEC will each provide 50 percent of such costs. EPA will monitor the corrective action work as provided in a Memorandum of Agreement executed between EPA and NYSDEC. As part of the Settlement Agreement, EPA provided a covenant not-to-sue to the Defendant and qualifying future owners and tenants of property in Eastman Business Park with respect to pre-existing contamination under RCRA (except for imminent and substantial endangerment) and CERCLA Section 107 concerning cost recovery.

Defendants (1)

• Eastman Kodak CompanyNamed in complaintNamed in settlement

Facilities (5)

• FISHER SCIENTIFIC CO LL C

  1 REAGENT LANE, FAIR LAWN, NJ, 07410-2885

  Registry ID: 110000319904

• FISHER SCIENTIFIC CO LL C

  1 REAGENT LANE, FAIR LAWN, NJ, 07410-2885

  Registry ID: 110000319904

• EASTMAN KODAK COMPANY KODAK PARK

  1669 LAKE AVE., ROCHESTER, NY, 146523615

  Registry ID: 110000492173

• MERCURY REFINING CO INC

  26 RAILROAD AVE, COLONIE, NY, 12205

  Registry ID: 110019401583

• MERCURY REFINING CO INC

  26 RAILROAD AVE, COLONIE, NY, 12205

  Registry ID: 110019401583

Statutes cited

• RCRA 3004 — Hazardous Waste Treatment, Storage, and Disposal Standards
• RCRA 3004VU — TSD Corrective Action
• CERCLA 107A — Cost Recovery

Enforcement conclusions (2)

• Eastman Kodak Companyentered 2014-05-13

  Primary law: CERCLA

• Eastman Kodak Companyentered 2014-05-13

  Primary law: CERCLA

Timeline (6 milestones)

• 2012-06-29Referred To Dept Of Justice
• 2012-07-03Enforcement Action Data Entered
• 2012-07-06Complaint Filed With Court
• 2014-03-14Final Order Lodged
• 2014-05-13Concluded
• 2014-05-13Final Order Entered