EPA v. BOFORS NOBEL, INC.

Case summary

THE BOFORS NOBEL SITE COMPRISES APPROXIMATELY 85 ACRES, LOCATED 6 MILES EAST OF DOWNTOWN MUSKEGON, MICHIGAN. THE SITE INCLUDES A CURRENTLY OPERATING SPECIALTY CHEMICAL PRODUCTION FACILITY, AND UNUSED LANDFILL, AND 10 ABANDONED SLUDGE LAGOONS. BIG BLACK CREEK BORDERS THE SOUTHERN POR- TION OF THE SITE. LAKEWAY CHEMICALS, INC. ( LAKEWAY ), AND ITS PRINCIPAL, NORMAND PHANEUF, BEGAN PRODUCING INDUSTRIAL CHEMICALS AT THE SITE IN AROUND 1960. IN THE 1970S, LAKEWAY BEGAN ITS TOLLING BUSINESS, MANUFACTURING CHEMICALS FOR, AND TO THE SPECIFICATIONS OF, OTHER COMPANIES. THE TOLLING OPERATION MAY AT TIMES HAVE MADE UP 50% OF LAKEWAY'S SALES. THE PLANT PRODUCED ALCOHOL-BASED DETERGENTS, SACCHARIN, PESTICIDES, HERBICIDES, AND DYE INTERMEDIATES. LAKEWAY USED OPEN, UNLINED LAGOONS FOR WASTEWATER AND SLUDGE DISPOSAL UNTIL APPROXIMATELY 1976. WASTES DISPOSED OF IN THE LAGOONS INCLUDED IRON SLUDGE, IRON SCALE, 3,3'-DICHLOROBENZIDINE ( DCB ) AND OTHER ORGANIC WASTES, ZINC OXIDE WASTE, WASTES GENERATED FROM SPILLS, CALCIUM SULFATE SLUDGE AND DETERGENT WASTES. DCV, WHICH WAS ONE OF LAKEWAY'S MAJOR PRODUCTS, IS THE PRIMARY CONTAMINANT DRIVING THE CLEANUP. IN THE 1970S, THE MICHIGAN DEPARTMENT OF NATURAL RESOURCES ( MDNR , NOW THE MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY OR ( MDEQ ) DISCOVERED MANY OF THESE CONTAMINANTS IN GROUNDWATER AT THE SITE AND IN BIG BLACK CREEK. IN 1976, AS A RESULT OF MNDR ENFORCEMENT ACTION, LAKEWAY INSTALLED EXTRACTION WELLS TO CAPTURE AND CONTAIN CONTAMINATED GROUNDWATER BEFORE IT REACHED BIG BLACK CREEK. THIS SYSTEM OF EXTRACTION WELLS HAS BEEN ADDED TO AND HAS CONTINUED IN OPERATION EVER SINCE THEN. IN 1977, LAKEWAY MERGED WITH BOFORS INDUSTRIES, INC. THIS NEW ENTITY CONTINUED OPERATIONS AT THE SITE, KNOWN FIRST AS BOFORS LAKEWAY, INC. AND LATER AS BOFORS NOBEL, INC THESE COMPANIES WERE WHOLLY-OWNED SUBSIDIARIES OF AN AMERICAN HOLDING COMPANY, BOFORS AMERICA, INC. ( BAI ). BAI WAS, IN TURN, A WHOLLY OWNED SUBSIDIARY OF THE SWEDISH GRANDPARENT COMPANY, BOFORS NOBEL, A.B. (NOW AKZO NOBEL, A.B BOFORS NOBEL, INC. FILED FOR CHAPTER 11 BANKRUPTCY IN DECEMBER, 1985. ON MARCH 25, 1987, AS PART OF THE BANKRUPT- CY COURT PROCEEDINGS, LOMAC, INC. PURCHASED THE OPERATING PLANT UNDER A PROSPECTIVE PURCHASER AGREEMENT THAT INSULATED LOMAC FROM LIABILITY FOR PRE-EXISTING CONTAMINATION. BOFORS NOBEL, INC. PAID MICHIGAN $10 MILLION AND U.S. EPA $5 MILLIO N FOR ENVIRONMENTAL CLAIMS. AFTER THE BANKRUPTCY CONCLUDED, BOFORS NOBEL INC.'S AMERICAN PARENT COMPANY (BAI) DISSOLVED. MDEQ BEGAN THE REMEDIAL INVESTIGATION ( RI ) AT THE SITE IN MARCH, 1987. U.S. EPA PLACED THE SITE ON THE NATIONAL PRIORITY LIST ON MARCH 31, 1989. TWO OPERABLE UNITS WERE DEFINED AT THE SITE. OU1 INCLUDED SLUDGE AND SOILS IN THE ABANDONED LAGOON AREA AND THE GROUNDWATER EXTRACTION AND TREATMENT SYSTEM. OU2 ADDRESSED THE PLANT AREA SOILS. MDEQ COMPLETED THE FEASIBILITY STUDY ( FS ) FOR OU1 IN MAY, 1990, AND FOR OU2 IN NOVEMBER, 1991. ON SEPTEMBER 17, 1990, U.S. EPA ISSUED AN OU1 RECORD OF DECISION ( ROD ). THAT ROD PROVIDED FOR ON-SITE INCINERATION OF THE MOST HEAVILY CONTAMINATED SOILS AND SLUDGE, WITH THE INCINERATION RESIDUE AND LESS HEAVILY CONTAMINATED LAGOON AREA SOILS TO BE PLACED IN ON-SITE LANDFILL CELLS. NEW GROUNDWATER EXTRACTION WELLS WERE TO BE INSTALLED TO REPLACE THE EXISTING EXTRACTION WELLS (WHICH WERE WEARING OUT DUE TO BIOLOGICAL FOULING AND NORMAL WEAR). THE EXTRACTED GROUNDWATER WOULD BE TREATED AT A NEW TREATMENT PLANT, WHICH WOULD DISCHARGE INTO BIG BLACK CREEK. WHILE DESIGNING THE REMEDY, U.S. EPA DETERMINED THAT THE VOLUME OF HIGHLY CONTAMINATED SOIL WAS MUCH HIGHER THAN ANTICIPATED. AS A RESULT, INCINERATION WAS NO LONGER COST- EFFECTIVE AND U.S. EPA AMENDED ITS OU1 ROD ON JULY 22, 1992. THE AMENDED ROD PROVIDED THAT ALL CONTAMINATED SLUDGE AND ALL CONTAMINATED LAGOON AREA SOILS

Defendants (17)

• GENERAL ELECTRIC COMPANYNamed in complaintNamed in settlement
• BOFORS NOBEL, INC.Named in settlement
• E.I. DUPONT DE NEMOURSNamed in settlement
• ELI LILLY AND COMPANYNamed in complaintNamed in settlement
• IBM CORPORATIONNamed in complaintNamed in settlement
• LOMAC, INC.Named in complaintNamed in settlement
• MALLINCKRODT
• MONSANTO
• SHELL OIL
• SMITHKLINE BEECHAM
• UNION CARBIDE
• AKZO NOBEL, N.V. AND AKZO NOBEL, A.B.Named in complaintNamed in settlement
• AMERICAN CYANAMID COMPANYNamed in complaintNamed in settlement
• BISSELL, INC.Named in complaintNamed in settlement
• CONTINENTAL OIL COMPANYNamed in complaintNamed in settlement
• DOW AGROSCIENCES
• DOWELANCONamed in complaintNamed in settlement

Facilities (1)

• BOFORS NOBEL, INC.

  5307 EVANSTON AVE, MUSKEGON, MI, 49443

  Registry ID: 110010598415

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (2)

• BOFORS NOBEL, INC.entered 1999-12-07

  Primary law: CERCLA

• BOFORS NOBEL, INC.entered 2017-03-09

  Primary law: CERCLA

Timeline (6 milestones)

• 1998-09-30Referred To Dept Of Justice
• 1998-10-06Enforcement Action Data Entered
• 1999-09-22Complaint Filed With Court
• 2017-01-17Final Order Lodged
• 2017-03-09Final Order Entered
• 2017-03-09Consent Decree Amendment