EPA v. STANDARD SCRAP SITE

Case summary

THIS IS A CERCLA SECTION 122(H)(1) ADMINISTRATIVE PAST COST RECOVERY SETTLEMENT ( AGREEMENT ) FOR THE STANDARD SCRAP CERCLA REMOVAL ACTION SITE ( SITE ). THE SITE IS A SCRAP METAL RECLAMATION AND SHREDDING FACILITY LOCATED AT 4004- 4020 S. WENTHWORTH AND 4000-4027 S. WELLS, CHICAGO, COOK COUNTY, ILLINOIS. IT WAS THE SUBJECT OF A FEDERALLY FUNDED REMOVAL ACTION COMMENCED ON SEPTEMBER 22, 1994 AND COMPLETED ON JANUARY 30, 1996. EPA'S OUTSTANDING RESPONSE COSTS, INCLUDING PREJUDGEMENT INTEREST, ARE $3,895,926.94 (THROUGH JUNE 30, 1998). EPA HAS IDENTIFIED APPROXIMATELY 305 PRPS IN CONNECTION WITH THE SITE, INCLUDING THE 3 OWNERS/OPERAT- ORS OF THE SITE. EPA REFERRED, AND DOJ FILED IN THE NORTH- ERN DISTRICT OF ILLINOIS, A CERCLA COST RECOVERY AND CERCLA AND CAA CIVIL PENALTY ACTION AGAINST THE 3 OWNERS/OPERATOR OF THE SITE. SEE U.S. V STEVEN COHEN ET AL., CIV. NO 96C 7801. THAT ACTION IS ONGOING. HOWEVER, BASED ON EXTENSIVE INFORMATION OBTAINED DURING DISCOVERY, IT IS APPARENT THAT THE OWNERS/OPERATORS DO NOT HAVE THE FINANIAL RESOURCES TO SATISFY EPS'S OUTSTANDING RESPONSE COST CLAIMS OR EPA'S PUNITIVE CLAIMS. THE OWNER/OPERATORS ARE NOT PARTICIPANTS IN THIS AGREEMENT. THE REMAINING 302 PRPS WHO HAVE BEEN IDENTIFIED ARE POTENTIALLY LIABLE AS ARRANGERS UNDER SECTION 107(A)(3) OF CERCLA. OF THESE PRPS, AT LEAST 34 ARE EITHER NO LONGER IN EXISTENCEE OR NOT FINANCIALLY VIABLE. IN ADDITION, IT APPEARS THAT A SUBSTANTIAL NUMBER OF THE RE- MAINING 268 PRPS MAY BE OF QUESTIONABLE OR LIMITED FINANCIAL VIABILITY. UNDER THE AGREEMENT, EPA WILL RECOVER $370,400, COLLECTIVELY, FROM 10 PRPS (THE SETTLING PARTIES) WHO HAVE COOPERATED WITH THE UNITED STATES. THIS AMOUNT REPRESENTS T THE SUM TOTAL OF EACH SETTLING PARTY'S ESTIMATED PRO RATA SHARE OF EPA'S OUTSTANDING RESPONSE COSTS BASED ON THE NATURE AND PERCENTAGE OF WASTE THEY SHIPPED TO THE SITE. THE SETTLING PARTIES ARE AS FOLLOWS: (1) UNIVERSAL SCRAP METALS, INC.: (2) COZZI IRON & METAL, INC./SCRAP PROCESSING, INC./BALCO METALS, INC.; (3) H. DIAMOND IRON & METAL CO.; (4) SADOFF & RUDOY INDUSTRIES D/B/A SADOFF IRON & METAL COMPANY, GUS HOLMAN COMPANY, AND ALFRED MUCHIN COMPANY; (5) H. KRAMER & CO.; (6) AZCON CORPORATION; (7) MANDEL METALS INC.; (8) GENERAL MOTORS CORPORATION; (9) BRANDENBURG INDUSTRIAL SERVICE CO.; AND (10) SOUTHERN SCRAP MATERIAL CO., L.L.P.

Defendants (1)

• STANDARD SCRAP SITENamed in complaintNamed in settlement

Facilities (1)

• CHICAGO INTL INTER EXPORTING

  4000 WELLS, CHICAGO, IL, 60609

  Registry ID: 110010593143

Statutes cited

• CERCLA 107 — Superfund

Enforcement conclusions (1)

• STANDARD SCRAP SITEentered 1999-05-28

  Primary law: CERCLA

Timeline (2 milestones)

• 1999-05-28Final Order Issued
• 1999-10-05Enforcement Action Data Entered