EPA v. ENVIRONMENTAL WASTE CONTROL INC., ET AL

Case summary

THIS IS INTENDED TO REFER TO YOUR OFFICE FOR APPROPRIATE ACTION A MATTER INVOLVING EWC; STEVEN S. SHAMBAUGH; JAMES WILKINS AND WEST HOLDING COMPANY, HEREINAFTER COLLECTIVELY REFERRED TO AS EWC OR DEBTORS. THIS MATTER IS CURRENTLY PENDING IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTH- ERN DISTRICT OF INDIANA. - THE REGIONAL OFFICE OF THE U.S.EPA RECOMMENDS THAT THE GOVERNMENT FILE PROOFS OF CLAIM TO PROTECT THE GOVERNMENT'S INTEREST IN THIS MATTER. THESE INTERESTS RESULT FROM THE COURT'S DECISION IN THE U.S. V. ENVIRONMENTAL WASTE CONTROL, INC., ET AL., 710 F. SUPP. 1172 N.D. IND.1989. THESE INTER- ESTS INCLUDE FUNDING FOR CORRECTIVE ACTION AT THE FACILITY, AND PAYMENT OF A CIVIL PENALTY AND CERTAIN GOVERNMENT COSTS ASSOCIATED WITH THE TRIAL. - THE CHAPTER 11 BANKRUPTCY PROCEEDING IN THIS MATTER IS AN OFFSHOOT OF THE COURT'S ORDER, U.S. V. ENVIRONMENTAL WASTE CONTROL, INC. IN ITS ORDER, DATED MARCH 29, 1989, THE COURT ORDERED EWC TO PERMANENTLY CLOSE THE FACILITY; TO PERFORM ANY CORRECTIVE ACTION NECESSARY AT THE SITE, AND TO PAY A CIVIL PENALTY OF $2,778,000. THE COURT ALSO AWARDED COSTS TO THE GOVERNMENT. EWC HAS FILED A NOTICE OF INTENT TO APPEAL THIS MATTER BEFORE THE 7TH CIRCUIT COURT OF APPEALS. MOST RECENTLY, EWC HAS FILED MOTION IN THE DISTRICT COURT SEEKING A PARTIAL STAY OF THE DISTRICT COURT'S ORDER. - ON APRIL 10, 1989, DEBTORS FILED PETITIONS FOR RELIEF UNDER CHAPTER 11 OF TITLE 11, U.S. CODE. IN THEIR SCHEDULES, ALL DEFENDANTS LISTED THE U.S. AS AN UNSECURED CREDITOR. EACH DEBTOR'S LISTING OF THE U.S. AS AN UNSECURED CREDITOR WAS BASED SOLELY ON THE CIVIL PENALTY ORDERED BY THE COURT IN THE DISTRICT COURT'S ACTION. DEFENDANT, EWC, LISTS THE CLAIM ON ITS SCHEDULE AS UNLIQUIDATED, CONTINGENT AND DIS- PUTED, WHILE THE OTHER THREE DEFENDANTS DO NOT. NONE OF THE DEFENDANTS LIST THE CORRECTIVE ACTION ORDERED BY THE COURT OR THE COURT ASSESSED COSTS AS CLAIMS IN THEIR SCHEDULES. THE REQUIREMENT OF CORRECTIVE ACTION AT THE EWC FACILITY WAS IMPOSED ON ALL DEBTORS, WITH THE EXCEPTION OF JAMES WILKINS. - BASED ON THE FACTS OF THIS MATTER, IT IS THE RECOMMENDATION OF REGION V THAT THE U.S. SEEK TO INITIALLY RESOLVE THIS MAT TER BY FILING PROOF OF CLAIMS TO PROTECT THE GOVERNMENT'S INTEREST IN THIS MATTER. CLAIMS SHOULD BE FILED FOR THE RE- MEDIAL FACILITY INVESTIGATION ACTIVITIES REQUIRED AT THE EWC SITE AND FOR THE CIVIL PENALTY AND COURT COSTS ASSOCI- ATED IN THE U.S. V. EWC MATTER. THE CLAIM FOR CORRECTIVE AC TION SHOULD BE FILED WITH DEBTORS STEVEN SHAMBAUGH, EWC AND WEST HOLDING COMPANY. A PROOF OF CLAIM FOR THE CIVIL PENAL- TY ASSESSED IN U.S. V. EWC MATTER SHOULD BE FILED WITH DEBTOR EWC, AS ITS SCHEDULE INDICATES THAT THE CIVIL PENALTY IS UNLIQUIDATED, CONTINGENT AND DISPUTED. FINALLY A PROOF OF CLAIM SHOULD BE FILED WITH ALL DEBTORS FOR THE GOVERN- MENT'S COSTS IN THE U.S. V. EWC MATTER.

Defendants (4)

• ENVIRONMENTAL WASTE CONTROL INC.Named in complaint
• SHAMBAUGH, STEVENNamed in complaint
• WEST HOLDING COMPANYNamed in complaint
• WILKINS, JAMESNamed in complaint

Facilities (1)

• FOUR COUNTY LANDFILL

  SR 17 & CR 525 NORTH, ROCHESTER, IN, 46975

  Registry ID: 110002045625

Statutes cited

• RCRA 3004 — Hazardous Waste Treatment, Storage, and Disposal Standards
• RCRA 3005E — Res Conserv & Rec Act

Timeline (3 milestones)

• 1989-04-10Enforcement Action Data Entered
• 1989-09-26Referred To Dept Of Justice
• 1989-10-31Complaint Filed With Court