EPA v. FAIRFAX STREET WOOD TREATERS SITE

Case summary

11/23/10 - The Fairfax Street Wood Treater Site (the Site) is located generally at 2610 Fairfax Street in Jacksonville, Florida, situated within an economically challenged residential neighborhood, adjacent to an elementary school. The Site is the location of an inactive wood treating facility which treated wood with a solution of copper, chromium, and arsenic (CCA). In late July 2010, the facility ceased operations amid Chapter 7 bankruptcy proceedings of the Site operator Wood Treaters, LLC (Wood Treaters). EPA was requested to take an emergency response action at the Site on August 10, 2010 by the Florida Department of Environmental Protection (FDEP). EPA mobilized to the Site to find process chemicals and wood treating wastes abandoned on-site in seven above ground storage tanks. Wood treating wastes in the former wood treating area were left exposed to the elements. Consequently, contaminated storm water that had been formerly managed and utilized by the facility had accumulated in the process area, overwhelming the on-site containment system. The contaminated storm water flowed through a drainage system to an on-site lagoon, which EPA found filled to capacity, and brimming over to the outfall of a nearby creek. Sampling results taken of the contents of the above ground storage tanks, secondary containment system, lagoon, and outfall have confirmed the presence of high levels CERCLA hazardous substances. Given the emergency nature of this removal action, and the failure of the identified PRPs to perform the work, the removal action has proceeded fund-lead. Additional site assessment work is planned for possible further response action at the Site. EPA has filed a proof of claim in the Wood Treaters� bankruptcy seeking payment of its response costs at the Site. One PRP for this referral. Wood Treaters, LLC �the Site operator. All appropriate relief requested and the filing of a proof of claim. No nationally significant issues. 12/10/10 - PROOF OF CLAIM FILED. 4/16/12 - SETTLEMENT AGREEMENT ENTERED. THIS JUDICIALLY-APPROVED SETTLEMENT AGREEMENT RESOLVES THE LIABILITY OF THE CHAPTER 7 BANKRUPTCY ESTATE OF WOOD TREATERS, LLC (THE DEBTOR) FOR RELEASES AND THREATENED RELEASES OF HAZARDOUS SUBSTANCES AT THE FAIRFAX STREET WOOD TREATER SITE IN JACKSONVILLE, DUVAL COUNTY, FL UNDER CERCLA. THE SITE WAS FORMERLY OPERATED BY THE DEBTOR AS A WOOD TREATING FACILITY. UNDER THE AGMT BETWEEN THE U.S. ON BEHALF OF EPA AND THE CHAPTER 7 TRUSTEE, THE EPA COVENANTS NOT TO TAKE ADMIN OR CIVIL ACTION AGAINST THE DEBTOR OR TRUSTEE PURSUANT TO CERCLA 106 OR 107, SUBJECT TO CERTAIN RESERVATIONS OF RIGHTS. IN EXCHANGE, THE U.S. SHALL HAVE AN ALLOWED PRIORITY EXPENSE CLAIM FOR ADMIN EXPENSES OF $4,352,642. FURTHER, THE TRUSTEE SHALL PAY THE U.S. $70,000; PAY THE U.S. 25% OF CERTAIN NET PROCEEDS RETAINED FROM THE RECOVERY OF PRE-CHAPTER 7 CONVERSION ACCOUNTS RECEIVABLE AND FROM RECOVERY CLAIMS UNDER 11 USC 549; AND ASSIGN TO EPA ALL RIGHTS TO INSURANCE CLAIMS PROCEEDS THAT THE TRUSTEE MAY COLLECT ON ANY INSURANCE POLICY RELATING TO ENVIRONMENTAL LIABILITY FOR THE SITE. TO THE EXTENT THAT THE SUMS ARE INSUFFICIENT TO SATISFY EPA'S ALLOWED PRIORITY CLAIM, THE UNPAID BALANCE SHALL BBE CONVERTED TO AND ALLOWED AS A GENERAL NONPRIORITY UNSECURED CLAIM.

Defendants (2)

• FAIRFAX LAND MANAGEMENT, INC.Named in complaintNamed in settlement
• WOOD TREATERS, LLC (SB)Named in complaintNamed in settlement

Facilities (1)

• FAIRFAX ST. WOOD TREATERS

  2610 FAIRFAX ST., JACKSONVILLE, FL, 322094823

  Registry ID: 110000361983

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (1)

• FAIRFAX STREET WOOD TREATERS SITEentered 2012-04-16

  Primary law: CERCLA

Timeline (6 milestones)

• 2010-11-23Referred To Dept Of Justice
• 2010-12-09Complaint Filed With Court
• 2010-12-29Enforcement Action Data Entered
• 2012-02-09Final Order Lodged
• 2012-04-16Final Order Entered
• 2017-11-28Enforcement Action Closed