EPA v. SOUTHERN ASBESTOS

Case summary

THE PURPOSE OF THE SUBJECT REFERRAL IS TO REQUEST THAT DOJ FILE A LATE PROOF OF CLAIM FOR PAST COSTS IN THE H.K. PORTER COMPANY, INC. BANKRUPTCY. THE PROOF OF CLAIM IS NECESSARY FOR EPA TO OBTAIN REIMBURSEMENT FOR RESPONSE COSTS INCURRED AT THE SOUTHERN ASBESTOS SUPERFUND SITE IN BENNETTSVILLE, MARLBORO COUNTY, SC. THIS PROOF OF CLAIM IS LATE BECAUSE EPA DID NOT DISCOVER THE SITE UNTIL AFTER THE BAR DATE FOR FILING A PROOF OF CLAIM. EPA ANTICIPATES REACHING A PAYMENT SETTLEMENT WITH THE DEBTOR NONETHELESS. THE SOUTHERN ASBESTOS SITE IS A FORMER ASBESTOS TEXTILE FACILITY THAT MANUFACTURED ASBESTOS-WOVEN FABRIC FOR AUTOMOTIVE BRAKE SHOES AND BRAKE LININGS. THE SITE WAS OWNED AND OPERATED BY H.K. PORTER COMPANY FROM 1965 AND 1974, THEN BY ITS SUBSIDIARY SOUTHERN ASBESTOS COMPANY FROM 1974 TO 1978. NO OPERATIONS HAVE OCCURRED AT THE SITE SINCE SOUTHERN ASBESTOS CEASED OPERATIONS IN APPROX. 1976. IN MARCH 1997, EPA RECEIVED A WHITE HOUSE INQUIRY RESULTING FROM A CITIZEN CORRESPONDENCE ABOUT CONDITIONS AT THE SITE. THIS PROMPTED EPA'S EMERGENCY RESPONSE AND REMOVAL BRANCH (ERRB) TO CONDUCT SEVERAL INVESTIGATIONS AT THE SITE FROM MAY TO OCTOBER OF 1997. THE SITE WAS CLASSIFIED AS A HIGH PRIORITY FOR A REMOVAL ACTION AND EPA CONDUCTED A FUND-LEAD EMERGENCY REMOVAL FROM 12/97 TO 2/99. TO DATE, TOTAL SITE COSTS ARE APPROX. $4.6 MILLION. ON 2/15/91, H.K. PORTER FILED A VOLUNTARY PETITION FOR BANKRUPTCY UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN THE WESTERN DISTRICT OF PENNSYLVANIA (CASE NO. 91-468) AS A RESULT OF MASSIVE ASBESTOS- RELATED PERSONAL INJURY LIABILITIES. THE PRE-PETITION BAR DATE WAS MARCH 16, 1992. THE FOURTH AMENDED CREDITORS' COMMITTEE PLAN OF REORGANIZATION WAS CONFIRMED BY ORDER OF COURT ON 6/25/98. PURSUANT TO THE PLAN OF REORGANIZATION, ENVIRONMENTAL CLAIMS ARE CLASS 7 UNSECURED CLAIMS AGAINST THE REORGANIZED DEBTOR. BASED ON THE SIZE OF THE REORGANIZED DEBTOR'S ESTATE, AND PROJECTED CLAIMS AGAINST IT, THE DISTRIBUTION FOR CLASS 7 CLAIMS IS ANTICIPATED TO BE APPROXIMATELY 4.6%.

Defendants (1)

• PORTER, H.K.Named in complaintNamed in settlement

Facilities (1)

• SOUTHERN ASBESTOS

  SALEM ROAD - U.S. HWY 15, BENNETTSVILLE, SC, 29512

  Registry ID: 110009310708

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (1)

• H.K. PORTER (SOUTHERN ASBESTOS SITE)entered 2001-05-10

  Primary law: CERCLA

Timeline (7 milestones)

• 2000-02-03Referred To Dept Of Justice
• 2000-03-07Enforcement Action Data Entered
• 2001-05-10Final Order Lodged
• 2001-05-10Final Order Entered
• 2001-05-10Complaint Filed With Court
• 2001-05-10Concluded
• 2001-06-21Enforcement Action Closed