EPA v. FILM RECOVERY SYSTEMS, INC. ET AL._(3008

Case summary

BACKGROUND OVER THE TWO AND A HALF YEARS SPANNING LATE 1979 TO MARCH 1983, FILM RECOVERY SYSTEMS, INC. AND THE OTHER DEFENDANTS NAMED IN THE ENCLOSED COMPLAINT, WERE AT ON TIME OR ANOTHER OPERATORS OF A SILVER RECOVERY BUSINESS AT 1855 GREENLEAF AVENUE, ELK GROVE VILLAGE, ILLINOIS. THEY USED INORGANIC CYANIDE SOLUTIONS TO STRIP SILVER COMPOUNDS, FROM X-RAY AND OTHER FILM STOCKS THAT WERE SHREDDED INTO SMALL PIECES, BY PLACING THEM INTO 1000-GALLON TANKS FOR SEVERAL DAYS AT A TIME. THE RESULTING LIQUOR WAS DECANTED INTO ELECTROPLATING TANKS AND PLATED ONTO STAINLESS STEEL ELECTRODES FOR RECOVERY. THE SILVER IN THE SLUDGES GENERATED WAS FURTHER RECOVERED BY SMELTING. ABOUT 65,000 POUNDS OF WASTE CHIPS WERE GENERATED EACH DAY DURING PEAK OPERRATIONS. A TOTAL OF AT LEAST 16 MILLION POUNDS OF THESE WASTES WERE GENERATED DURING THE LIFE OF THE OPERATION. THE WASTE CHIPS WERE SUPPOSED TO BE TREATED WITH SODIUM HYPOCHLORITE PRIOR TO DISPOSAL TO REDUCE THE CYANIDE PRESENT ON THEM TO NONREACTIVE LEVELS. AS THE BUSINESS PROGRESSED, A CONSCIOUS DECISION WAS APPARENTLY MADE TO REDUCE COSTS BY REDUCING THE LEVEL OF TREATMENT OF THE WASTE. AS A RESULT, THE 16 MILLION POUNDS OF CHIPS, COATED WITH AN AVERAGE 400 PPM OF CYANIDE AND 10 PPM OF SILVER, WERE ILLEGALLY GENERATED AND STORED, IN TRAILERS AND WAREHOUSES LEASED BY THE DEFENDANTS, IN COOK AND LEE COUNTIES, ILLINOIS. THE WASTES ARE CLEARLY REACTIVE UNDER 40 C.F.R. 261, AND ALSO EP TOXIC FOR SILVER. THE DEFENDANTS DID NOT NOTIFY THE U.S. EPA, AS REQUIRED BY SECTION 3010 OF RCRA, THAT THEY WERE GENERATING AND TRANSPORTING HAZARDOUS WASTES. THEY DID NOT COMPLY IN ANY WAY WITH THE STANDARDS APPLICABLE, AFTER NOVEMBER 19, 1980, TO GENERATORS AND TRANSPORTERS OF HAZARDOUS WASTE UNDER 40 C.F.R. 262 AND 263. THEIR ACTIVITIES HAVE RESULTED IN THE DEATH OF ONE EMPLOYEE FROM CYANIDE INTOXICATION, AND THE CREATION OF A MASSIVE DISPOSAL PROBLEM FOR THE STATE OF ILLINOIS, WHICH WILLL BE PAID FOR BY A SPECIAL $4 MILLION APPROPRIATION OF THE ILLINOIS LEGISLATURE. THE STATE HAS SUED THESE AND OTHER DEFENDANTS FOR VIOLATIONS OF STATE-ADOPTED INTERIM STATUS STANDARDS AND OTHER PROVISIONS OF STATE LAW. THIS ACTION DOES NOT DUPLICATE THOSE PROCEEDINGS, BUT WILL BENEFIT FROM THE DISCOVERY CONDUCTED IN THEM. THE ILLINOIS ATTORNEY GENERAL'S STAFF HAS COOPERATED IN THE DEVELOPMENT OF THIS ACTION. ISSUE INVOLVED THE ONLY ISSUE OF MAJOR CONCERN IN THIS ACTION SHOULD BE THE SIZE OF THE PENALTY SOUGHT AND IMPOSED. THE DEFEND- ANTS ALL APPEAR TO BE CLEARLY LIABLE AS OPERATORS OF THE BUSINESS, WHICH UNARGUABLY GENERATED AND TRANSPORTED HAZARDOUS WASTE WITHOUT NOTIFICATION OR COMPLIANCE WITH EXISTING REGULATIONS. GIVEN THE EGREGIOUS NATURE OF THESE VIOLATIONS, THE WIDESPREAD PUBLICITY THAT THIS SITUATION HAS RECEIVED, AND THE STRONG NEED TO ESTABLISH DETERRENT PRECE- DENTS IN THE AREA OF RCRA COMPLIANCE, WE SHOULD SEEK THE MAXIMUM PENALTY AVAILABLE. THIS SHOULD BE BASED ON THE STATUTORY AMOUNT ($25,000 PER DAY) TIMES THE NUMBER OF PROVABLE SEPARATE VIOLATIONS. THIS OPERATION WAS VERY PROFITABLE TO ITS PRINCIPALS, AND A LARGE PENALTY WOULD TAKE AWAY THE ECONOMIC BENEFIT THEIR NONCOMPLIANCE HAS CREATED. CAUSE OF ACTION AS NOTED, THIS IS A STRAIGHTFORWARD ACTION TO ENFORCE THE REGULATORY REQUIREMENTS OF SUBTITLE C OF RCRA. THE U.S. NEED ESTABLISH ONLY THAT THE HAZARDOUS WASTES WERE GENERATED AND TRANSPORTED BY THESE DEFENDANTS WITHOUT NOTIFICATION OR COMPLIANCE WITH REGULATIONS. THIS CAN BE DONE WITH AVAIL- ABLE EVIDENCE.

Defendants (5)

• B. R. MCKEY & SONS, INC.
• METALLIC MARKETING CORP.
• MICHAEL MCKAY
• SILVER RECOVERY SYSTEMS
• STEVEN O'NEIL

Facilities (2)

• QUALITY COLOR GRAPHICS INCORPORATED

  1855 GREENLEAF AVE, ELK GROVE VILLAGE, IL, 60007

  Registry ID: 110001340148

• QUALITY COLOR GRAPHICS INCORPORATED

  1855 GREENLEAF AVE, ELK GROVE VILLAGE, IL, 60007

  Registry ID: 110001340148

Statutes cited

• RCRA 3008 — Res Conserv & Rec Act

Timeline (5 milestones)

• 1984-03-29Referred To Headquarters
• 1984-05-11Referred To Dept Of Justice
• 1985-02-22Complaint Filed With Court
• 1985-04-18Concluded
• 1985-04-18Enforcement Action Closed