EPA v. MOTORS LIQUIDATION CO F/K/A GENERAL MOTORS CORP, IN RE (NATIONAL CASE) (KANE & LOMBARD ST DRUMS)

Case summary

ON MARCH 29, 2011, THE U.S. BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK APPROVED AND ENTERED A CONSENT DECREE AND ENVIRONMENTAL SETTLEMENT AGREEMENT (AGREEMENT) IN CONNECTION WITH THE MOTORS LIQUIDATION COMPANY, ET AL, F/K/A GENERAL MOTORS CORP. ET AL. (MLC/GM) ARE RESOLVED AT FIFTY-SIX NON-OWNED SITES AND FACILITIES. THE UNITED STATES, ON BEHALF OF EPA, WILL RECEIVED AN ALLOWED GENERAL UNSECURED CLAIM. THE AGREEMENT ALSO PROVIDED FOR A TOTAL CASH OUT FROM FULLY-COLLATERALIZED BONDS, AND WORK IN ACCORDANCE WITH BOND REQUIREMENTS. IN ADDITION, THREE PRP GROUPS WILL RECEIVE ALLOWED GENERAL UNSECURED CLAIMS. ON MONDAY, JANUARY 30 2012 THE UNITED STATES LODGED A CONSENT DECREE AND SETTLEMENT AGREEMENT (BANKRUPTCY SETTLEMENT) WITH THE U.S. BANKRUPTCY COURT OR THE SOUTHERN DISTRICT OF NEW YORK RESOLVING CERTAIN SUPERFUND CLAIMS BROUGHT IN THE GENERAL MOTORS CORPORATION) SETTLED ENVIORNMENTAL LIABILITIES ARISING FROM THE COMPANY'S INVOLVEMENT AT THREE SUPERFUND SITES, ONE OF WHICH IS THE KANE AND LOMBARD STREET SITE IN MARYLAND (KANE AND LOMBARD). UNDER THE BANKRUPTCY SETTLEMENT, MLC'S OBLIGATION AT KANE AND LOMBARD ARE SATISFIED BY A PERFORMANCE OND GIVING EPA ACCESS FOR FUTURE REMEDIAL ACTION REQUIRED AT THE KANE AND LOMBARD SITE. MLC (THEN GM) WAS REQUIRED UNDER A PRIOR SUPERFUND SETTLEMENT WITH THE UNITED STATES TO PROVIDE SUCH FINANCIAL ASSURANCE. TO SATISFY THIS REQUIREMENT MLC (THEN GM) SECURED A PERFORMANCE BOND FROM WESTCHESTER FIRE INSURANCE COMPANY. AFTER MLC (THEN GM) FILED THE CHAPTER 11 BANKRUPTCY, EPA NEGOTIATED AN AGREEMENT WITH WESTCHESER ENSURING PAYMENT OF THE PROCEEDS OF HTE BOND. THE BANKRUPTCY SETTLEMENT PROVIDES THAT [I]N FULL SETTLEMENT AND SATISFACTION OF THE U.S. PROOF OF CLAIM WITH RESPECT OT THE KANE & LOMBARD SITE AND PURSUANT TO EPA AGREEMENT ENTERED INTO BY EPA AND WESTCHESTER ON APRIL 26 2011. THE UNITED STATES SHALL NOT RECEIVE ANY ALLOWED GENERAL UNSECURED CLAIM FOR THE KANE & LOMBARD SITE UNDER THIS SETTLEMENT AGREEMENT.THE BANKRUPTCY SETTLEMENT WHICH IS THE TENTH SETTLEMENT AGREEMENT TO BE LODGED RESOLVING U.S. CLAIMS IN THE MLC BANKRUPTCY, WILL BE SUBJECTED TO PUBLIC COMMENT PERIOD OF A PERIOD OF NO LESS THAN 30 DAYS.

Defendants (1)

• MOTORS LIQUIDATION CO (F/K/A GENERAL MOTORS CORP)Named in complaintNamed in settlement

Facilities (13)

• TONOLLI CORP

  RD #1 PENNA RT 54, NESQUEHONING, PA, 18240

  Registry ID: 110042080850

• DELAWARE SAND & GRAVEL SUPERFUND SITE

  229 GRANTHAM LANE, NEW CASTLE, DE, 19720

  Registry ID: 110009328628

• JACK'S CREEK/SITKING SMELTING CO

  MAITLAND RD, LEWISTOWN, PA, 17044

  Registry ID: 110044990917

• SPECTRON INC

  120 PROVIDENCE RD & RD 8, ELKTON, MD, 21921

  Registry ID: 110001767268

• 68TH STREET DUMP SUPERFUND SITE

  68TH STREET DUMP SUPERFUND SITE, BALTIMORE, MD, 21238

  Registry ID: 110039155678

• HARVEY & KNOTT DRUM, INC.

  OLD COUNTY RD, KIRKWOOD, DE, 19708

  Registry ID: 110009328352

• MARYLAND SAND GRAVEL & STONE SITE

  64 EPHRATA AVE, ELKTON, MD, 21921

  Registry ID: 110003541711

• KANE & LOMBARD STREET DRUMS

  KANE & LOMBARD STS, BALTIMORE, MD, 21224

  Registry ID: 110009290908

• DELAWARE SAND & GRAVEL SUPERFUND SITE

  229 GRANTHAM LANE, NEW CASTLE, DE, 19720

  Registry ID: 110009328628

• BRESLUBE-PENN SITE

  84 MONTOUR RD, CORAOPOLIS, PA, 15108

  Registry ID: 110004846999

• MALVERN TCE SUPERFUND SITE

  258 N PHOENIXVILLE PIKE, MALVERN, PA, 19355

  Registry ID: 110023747524

• JACK'S CREEK/SITKING SMELTING CO

  MAITLAND RD, LEWISTOWN, PA, 17044

  Registry ID: 110044990917

• ARMY CREEK LANDFILL/LLANGOLLEN LANDFILL

  RTS 13 & 40, NEW CASTLE, DE, 19720

  Registry ID: 110009273909

Statutes cited

• CERCLA 106A — Imminent & Substantial Endangerment Order
• CERCLA 107A — Cost Recovery

Enforcement conclusions (2)

• MOTORS LIQUIDATION CO F/K/A GENERAL MOTORS CORP, IN RE (NATIONAL CASE) - HARVEY & KNOTTentered 2011-03-29

  Primary law: CERCLA

• MOTORS LIQUIDATION CO F/K/A GENERAL MOTORS CORP, IN RE (NATIONAL CASE) (KANE & LOMBARD ST DRUMS)entered 2012-03-29

  Primary law: CERCLA

Timeline (6 milestones)

• 2009-09-30Enforcement Action Data Entered
• 2009-09-30Referred To Dept Of Justice
• 2009-11-28Complaint Filed With Court
• 2012-01-30Final Order Lodged
• 2012-03-29Concluded
• 2012-03-29Final Order Entered