EPA v. ENERGY COOPERATIVE

Case summary

ENERGY COOPERATIVE, INC., (ECI), FORMER OWNER AND OPERATOR OF THE ECI SITE, HAS BEEN IN BANKRUPTCY SINCE 1981. THE BANKRUPTCY STARTED AS A CHAPTER 11 REORGANIZATION AND THEN IN 1984, SHIFTED TO A CHAPTER 7 LIQUIDATION OF OVER $33 MIL IN ASSETS. AMONG THE PENDING ORDERS FOR THIS MATTER ARE TWO THAT COULD SIGNIFICANTLY IMPACT THE CLAIMS OF THE U.S. AT THE FORMER REFINERY FACILITY. FIRST, THERE IS A BAR DATE FOR DEBTOR-IN-POSSESSION ADMINISTRATIVE CLAIMS SET FOR 5/29/92. WHILE THE DEBTOR WAS IN POSSESSION, RCRA CORRECTIVE ACTION SHOULD HAVE BEEN UNDERTAKEN AT THE FACILITY. SECOND, THERE IS A PROPOSED ORDER BY JAY A. STEINBERG, CHAPTER 7 TRUSTEE TO DISTRIBUTE ALSMOST $16 MIL TO ADMINISTRATIVE, PRIORITY AND UNSECURED CLAIMS. USEPA RECOMMENDS THAT A PROOF OF CLAIM BE FILED FOR POTENTIAL ENVIRONMENTAL CLEANUP COSTS THAT HAVE BEEN ESTIMATED AS HIGH AS $45 MIL, AND THE DISTRIBUTION PLANNED BY THE TRUSTEE BE OPPOSED AS INSUFFICIENT TO UNDERTAKE THE NECESSARY ENVIRONMENTAL ACTIONS AT THE SITE. - THE ECI SITE CONSISTS OF APPOX. 299 ACRES ALONG THE INDIANA HARBOR SHIP CANAL IN EAST CHICAGO, IN. ABOUT 250 OF THOSE ACRES COMPRISED A FORMER REFINERY OPERATED BY SINCLAIR, ARCO, AND ENERGY COOPERATIVE, INC. SEVERAL MILLION GALLONS OF OIL BASED HYDROCARBONS FLOAT ATOP THE GROUNDWATER UNDER THE SITE. THESE HYDROCARBONS ARE CURRENTLY DISCHARGING TO THE INDIANA HARBOR SHIP CANAL. THE REFINERY AND OTHER BUILDINGS WERE RAISED AND THE SURFACE GRADED. ALSO PRESENT AT THE SITE ARE PCB'S, MERCURY, ASBESTOS, AND CADMIUM. DURING THE SUMMER OF 1990, U.S. EPA PERFORMED A REMOVAL ACTION AT THE SITE UNDER SECTION 311 OF THE CWA IN ORDER TO ABATE THE RELEASE OF OIL INTO THE SHIP CANAL. - THE SITE CONDITIONS ARE CURRENTLY UNDER INVESTIGATION. THE STATE OF INDIANA HAS REACHED AN AGREEMENT WITH ARCO, ECI'S PRINCIPAL CREDITOR, TO ADDRESS SOME LONG-TERM HYDROCARBON RELEASES. THE STATE AND USEPA ARE CURRENTLY NEGOTIATING WITH THE SITE OWNER AND ARCO REGARDING RCRA CLOSURE AND CORRECTIVE ACTION AT THE SITE. THE CURRENT ESTIMATE FOR RESPONDING TO THE ENVIRONMENTAL THREAT POSED BY THE SITE IS APPROX $45 MILLION. - OUR RECOMMENDATION IS THAT A PROOF OF CLAIM BE FILED ON BEHALF OF USEPA AS AN ADMINISTRATIVE EXPENSE PRIORITY.

Defendants (1)

• ENERGY COOPERATIVE, INC.Named in complaintNamed in settlement

Facilities (1)

• ENERGY CO OP INC

  3500 INDIANAPOLIS BLVD, EAST CHICAGO, IN, 46312

  Registry ID: 110000613122

Statutes cited

• RCRA 3008H — Interim Status Corrective Action Order

Enforcement conclusions (1)

• ENERGY COOPERATIVE, INC.entered 1994-07-22

  Primary law: RCRA

Timeline (7 milestones)

• 1992-02-15Enforcement Action Data Entered
• 1992-05-29Referred To Dept Of Justice
• 1992-05-29Complaint Filed With Court
• 1993-07-27Final Order Lodged
• 1994-07-22Final Order Entered
• 1999-07-22Concluded
• 1999-07-22Enforcement Action Closed