EPA v. ECUSTA MILL SUPERFUND SITE (BNK REFERRAL)

Case summary

The Ecusta Mill Site is situated near Pisgah Forest, Transylvania County, North Carolina. The mill began operations in 1938 and manufactured paper products from flax fiber and produced chlorine (for paper bleaching) by using Sorenson mercury cells. A number of entities have owned/operated the mill: Olin Chemical Corp. (1949-1985); Ecusta Corp. (1985-1987); P. H. Glatfelter (1987-2001); and RFS Ecusta, Inc (2001-2002). RFS Ecusta ceased operations in August 2002 and filed Chapter 11 bankruptcy in October 2002. The case was transferred to the U.S. Bankruptcy Court for the Western District of North Carolina in March 2003 and was subsequently converted to Chapter 7 liquidation. SCDHEC notified EPA about the abandonment of the facility in February 2003. EPA conducted a preliminary site assessment in March 2003 and identified a number of threats including approximately 500 abandoned drums of hazardous waste, a landfill that relies on a water pumping system to remain stable, and a 75-acre wastewater treatment lagoon, which relies on an interactive system for proper environmental management. Elevated levels of mercury were discovered in soils near the former chlor-alkali building and in drainage ditches leading to the Davidson River. EPA entered into an Administrative Order on Consent for the Remedial Investigation/ Feasibility Study with P.H. Glatfelter in January 2008 to assess the River Investigation Areas. In April 2008, EPA entered into a Bona Fide Prospective Purchaser Agreement with Davidson River Village LLC (DRV) wherein DRV agreed to conduct the removal action at the former mill. DRV purchased the Site with plans to develop a mixed-use development. On September 26, 2003, EPA sent a referral to DOJ requesting DOJ file a proof of claim in the RFS Ecusta bankruptcy. On March 20, 2009, the U.S. District Court for the Western District of North Carolina approved EPA’s bankruptcy settlement with RFS Ecusta, Inc., and RFS US, Inc., resolving a portion of EPA’s unreimbursed past response costs. The settlement grants EPA an administrative expense priority claim of $125,000 in the bankruptcy.

Defendants (4)

• RFS ECUSTA, INC.Named in complaintNamed in settlement
• P.H. GILAFFELTER
• OLIN CORP.
• RFS US INC.Named in complaintNamed in settlement

Facilities (2)

• RFS ECUSTA INCORPORATED

  1 ECUSTA ROAD, PISGAH FOREST, NC, 28768

  Registry ID: 110000351618

• RFS ECUSTA INCORPORATED

  1 ECUSTA ROAD, PISGAH FOREST, NC, 28768

  Registry ID: 110000351618

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (1)

• ECUSTA MILL SUPERFUND SITE (04-2009-C011)entered 2009-03-20

  Primary law: CERCLA

Timeline (7 milestones)

• 2003-09-26Referred To Dept Of Justice
• 2003-09-29Enforcement Action Data Entered
• 2004-02-06Complaint Filed With Court
• 2009-03-20Concluded
• 2009-03-20Final Order Entered
• 2009-03-20Final Order Lodged
• 2010-03-18Enforcement Action Closed