EPA v. LAKE UNDERGROUND STORAGE CORP.

Case summary

THIS REFERRAL IS A REQUEST TO FILE A CROSS-CLAIM AGAINST NACELLE LAND & MANAGEMENT CORP. ( NACELLE ) AND LAKE UNDERGROUND STORAGE CORP. ( LAKE ) IN THE CAPTIONED LAKE COUNTY TREASURER V. PARCELS OF LAND, CASE NUMBER 1:97CV1894, ND OHIO. AN IN REM ACTION WAS FILED IN STATE CO URT ON 1/8/97 BY THE LAKE COUNTY TREASURER AGAINST PARCELS OF LAND IN PAINESVILLE, OHIO, TO FORECLOSE LIENS AND SEIZE PROPERTY FOR DELINQUENT LAND TAXES. ON 6/20/97 THE LAKE COUNTY TREASURER ADDED EPA AS A DEFENDANT IN THE CASE DUE TO THE NOTICE OF FEDERAL LIEN UNDER CERCLA THAT REGION 5 FILED WITH THE LAKE COUNTY RECORDER OF DEEDS 4/28/97. DOJ REMOVED THIS CASE TO THE US DISTRICT COURT FOR THE NORTHERN DIS- TRICT OF OHIO ON 7/21/97 ON BEHALF OF USEPA. THE CROSS- CLAIM INCLUDES 2 COUNTS: 1) A COST RECOVERY CLAIM AGAINST LAKE AND NACELLE, AND 2) AN ALLEGATION THAT LAKE AND NACELLE ARE ALTER EGOS FOR EACH OTHER AND OF JOSEPH G. BERICK, AND A REQUEST THAT THE COURT DECLARE NACELLE'S LIEN ON THE PROPERTY NULL AND VOID AND THAT THE CERCLA LIEN BE FIRST PRIORITY AFTER THE COUNTY'S TAX LIEN. IN MAY, 1996, USEPA COMPLETED A PHASED REMOVAL ACTION PURSUANT TO CERCLA AT THE LAKE SITE. THE REMOVAL INCLUDED AMONG OTHER THINGS, CHARACTERIZING AND DISPOSING OF HAZARDOUS SUBSTANCES INCLUDING MERCAPTAN, AN INDICATOR CHEMICAL WHICH PROVIDES THE SMELL TYPICAL OF COMMERCIAL GAS, AND PCBS. USEPA HAS INCURRED APPROXIMATELY $177,660 IN CLEANUP COSTS AT THIS SITE. THIS SITE INCLUDES 2 SEPARATE PROPERTIES APPROXIMATELY 2 MIL ES APART, AT 675 LAKE SHORE BLVD, PAINESVILLE TOWNSHIP, OH, AND 1504 WEST JACKSON STREET, PAINESVILLE, OH. THE PROPERTY AT 675 LAKE SHORE IS APPROXIMATELY 50 ACRES IN SIZE AND PROPERTY AT 1504 WEST JACKSON IS APPROXIMATELY 100 ACRES IN SIZE. BOTH PARCELS ARE OWNED BY LAKE. LAKE WAS INCORPORATED IN 1974 AS AN OHIO CORPORATION AND WAS ENGAGED IN THE BUSINESS OF STORING LIQUID PROPANE IN UNDER- GROUND SALT-SOLUTION MINING CAVERNS ON THE PROPERTY AT 675 LAKE SHORE BLVD. LAKE WENT OUT OF BUSINESS IN 1983 WHEN THE PROPANE STORED IN THE CAVERNS WAS LOST, BUT STILL MAINTAINS ITS STATUS AS A CORPORATION AND OWNS REAL PROPERTY AT 675 LAKE SHORE AND 1504 WEST JACKSON. JOSEPH G BERICK IS PRESIDENT OF LAKE AND THE ONLY MEMBER OF ITS BOARD OF DIRECTORS. ALSO OPERATING AT THE SITE IS NACELLE, WHICH WAS INCORPO- RATED IN 1979 AS AN OHIO CORPORATION AND WAS ENGAGED IN THE BUSINESS OF ACCEPTING OIL FIELD WASTE CONSISTING OF OIL AND BRINE WHICH WAS PLACED IN A 12 MILLION GALLON SURFACE IM- POUNDMENT ON THE PROPERTY AT LAKE SHORE BLVD. FOR SEPARATION PURPOSES. NACELLE INJECTED THE BRINE FROM THE IMPOUNDMENT INTO AN ADJACENT BRINE INJECTION WELL PURSUANT TO A PERMIT ISSUED BY THE OHIO DNR. NACELLE STOPPED RECEIVING OIL FIELD WASTE IN 1988. JOSEPH G. BERICK IS THE PRESIDENT OF NACELLE AND ONLY MEMBER OF THE BOARD OF DIRECTORS. PRIOR TO CONDUCTING THE CERCLA REMOVAL USEPA PROVIDED VERBAL NOTICE OF LIABILITY WITH WRITTEN CONFIMATION TO LAKE, NACELLE, AND BERICK.

Defendants (3)

• JOSEPH G. BERICKNamed in settlement
• LAKE UNDERGROUND STORAGE CORP.Named in complaintNamed in settlement
• NACELLE LAND AND MANAGEMENT CORP.Named in complaintNamed in settlement

Facilities (1)

• NACELLE LAND & MGMT LAKE UNDERGROUND ST

  675 LAKESHORE BLVD, PAINESVILLE, OH, 00000

  Registry ID: 110010588444

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (1)

• LAKE UNDERGROUND STORAGEentered 1999-04-07

  Primary law: CERCLA

Timeline (5 milestones)

• 1997-11-05Referred To Dept Of Justice
• 1997-11-07Complaint Filed With Court
• 1997-12-16Enforcement Action Data Entered
• 1999-01-29Final Order Lodged
• 1999-04-07Final Order Entered