EPA v. NATION FORD CHEMICAL COMPANY

Case summary

7/28/09 - CONSENT AGMT AND FINAL ORDER ISSUED, ASSESSING A PENALTY OF ZERO. ON JULY 20, 2006, AN AUTHORIZED AGENT OF EPA CONDUCTED AN INSPECTION AT RESPONDENT'S PLACE OF BUSINESS. BEGINNING IN 1999, RESPONDENT MANUFACTURED A CHEMICAL (CBI DELETED), HEREINAFTER REFERRED TO AS CHEMICAL A, FOR EXPORT ONLY. FOR A PERIOD OF TIME DURING 2001, RESPONDENT MANUFACTURED AND DISTRIBUTED CHEMICAL A FOR COMMERCIAL PURPOSES IN COMMERCE WITH THE U.S. AS WELL AS FOR EXPORT. BETWEEN 2002 AND 2006, RESPONDENT MANUFACTURED CHEM A SOLELY FOR EXPORT. RESPONDENT DISCONTINUED THE MANUFACTURE OF CHEM A IN DEC 2006. ACCORDING TO EPA'S CERTIFIED STATEMENT DATED MAY 25, 2007, CHEM A WAS NOT LISTED ON THE TSCA MASTER INVENTORY FILE WHEN IT WAS MANUFACTURED BY RESPONDENT IN 2001 FOR DISTRIBUTION IN THE U.S. IN A LETTER DATED OCT 31, 2007, RESPONDENT ASSERTED THAT CHEM A WAS PRODUCED INCIDENTALLY THRU A NEUTRALIZATION PROCESS, AND THEREFORE, IS EXEMPT FROM THE PREMANUFACTURE NOTICE (PMN) REPORTING REQUIREMENTS PURSUANT TO THE EXEMPTION FOUND IN 40 CFR 731.30(h)(7). RESPONDENT ALSO HAS ASSERTED THAT IT DID NOT SUBMIT A PMN TO THE EPA FOR CHEM A BECAUSE RESPONDENT BELIEVED THE PRODUCTION OF CHEM A WAS EXEMPTED FROM THE PMN REPORTING REQUIREMENT PURSUANT TO 40 CFR 721.30(h)(7). COMPLAINANT HAS CONCLUDED THAT THE PRODUCTION OF CHEM A WAS NOT EXEMPT UNDER 40 CFR 720.30(h)(&), BECAUSE CHEM A: (1) WAS THE END PRODUCT OF MANUFACTURE THAT WAS INTENTIONALLY MARKETED AS SUCH TO RESPONDENT'S CUSTOMERS WHO USED IT HAS A CHEMICAL INTERMEDIARY; (2) HAD COMMERCIAL VALUE; (3) FUNCTIONED INDEPENDENTLY OF ITS PRECURSOR; AND (4) HAS AT LEAST ONE PRIMARY PROPERTY THAT WAS TO FUNCTION AS A CHEMICAL INTERMEDIATE THAT COULD BE REACTED TO FORM ONE OR MORE DISTINCT CHEMICAL SUBSTANCES. THEREFORE, THE PRODUCTION OF CHEM A IS SUBJECT TO PMN REPORTING REQUIREMENTS. COMPLAINANT ALSO HAS DETERMINED THAT RESPONDENT IS NOT ELIGIBLE FOR THE EXPORT EXEMPTION UNDER TSCA 12(a)(1)(A) BECAUSE IN 2001 CHEM A WAS DISTRIBUTED IN COMMERCE IN THE U.S. FOR COMMERCIAL PURPOSSES AND WAS NOT MANUFACTURED SOLELY FOR EXPORT. RESPONDENT FAILED TO SUBMIT THE REQUIRED PMN TO THE EPA BEFORE RESPONDENT MANUFACTURED CHEM A DURING 2001 FOR COMMERCIAL PURPOSES IN THE U.S. OR FOR EXPORT ONLY IN THE YEARS SUBSEQUENT TO 2001 UP TO AND INCLUDING 2006. COMPLAINANT HAS FURTHER CONCLUDED THAT RESPONDENT WAS NOT IN COMPLIANCE WITH 40 CFR 720.40(b) BECAUSE IT FAILED TO SUBMIT A PMN TO THE EPA 90 DAYS PRIOR TO MANUFACTURING CHEM A FOR COMMERCIAL PURPOSES AND DISTRIBUTING THE PRODUCT IN THE U.S. OR FOR EXPORT ONLY IN THE YRS SUBSEQUENT TO 2001 UP TO AND INCLUDING 2006. RESPONDENT HAS ADVISED COMPLAINANT THAT IT CEASED MANUFACTURING CHEM A AS OF DEC 2006, AND HAS NO PRESENT PLANS TO RESUME MANUFACTURING IT.

Defendants (1)

• NATION FORD CHEMICAL COMPANYNamed in complaintNamed in settlement

Facilities (4)

• NATION FORD CHEMICAL COMPANY

  2300 BANKS ST., FORT MILL, SC, 29715

  Registry ID: 110000355151

• NATION FORD CHEMICAL COMPANY

  2300 BANKS ST., FORT MILL, SC, 29715

  Registry ID: 110000355151

• NATION FORD CHEMICAL COMPANY

  2300 BANKS ST., FORT MILL, SC, 29715

  Registry ID: 110000355151

• NATION FORD CHEMICAL COMPANY

  2300 BANKS ST., FORT MILL, SC, 29715

  Registry ID: 110000355151

Statutes cited

• TSCA 5A/5B — Failure To Comply With Significant New Use Rules and Pre-manufacture Notice

Enforcement conclusions (1)

• NATION FORD CHEMICAL COMPANYentered 2009-07-28

  Primary law: TSCA

Timeline (3 milestones)

• 2009-07-28Final Order Issued
• 2009-07-28Complaint Filed/Proposed Order
• 2009-08-03Enforcement Action Data Entered