EPA v. SHEBOYGAN HARBOR & RIVER CONSENT DECREE (CERCLA)

Case summary

In this action, the United States seeks the implementation of response actions at, and the reimbursement, pursuant to the Comprehensive Environmental Response, Compensation and Liability Act (‘‘CERCLA’’), 42 U.S.C. 9601 et seq., of costs incurred by the United States in responding to a release or threat of release of hazardous substances in, the Lower River portion of the Sheboygan River and Harbor Superfund Site in Sheboygan County, Wisconsin (‘‘Site’’). In the Amended Complaint filed in this matter, the United States alleges that Tecumseh Products Company (‘‘Tecumseh’’) was an ‘‘owner or operator’’ of the Site at the time of the disposal of hazardous substances in the Lower River portion of the Site and therefore, pursuant to CERCLA Section 107(a)(2), 42 U.S.C. 9607(a)(2), is liable for the reimbursement of response costs and for the performance of response actions under CERCLA. In the Amended Complaint, the United States further alleges that co-Defendants Pollution Risk Services LLC, and Palace Associates, LLC, are liable, under CERCLA Section 107(a)(1), 42 U.S.C. 9607(a)(1), as present owners of a portion of the Site. This is the third settlement agreement in this matter. On May 12, 2004, the United States District Court for the Eastern District of Wisconsin approved and entered a Consent Decree (‘‘2004 Decree’’) that required Tecumseh to: (1) Implement those components of the remedy for the Upper River portion of the Site that were set forth in a May 12, 2004 Record of Decision issued by the U.S. Environmental Protection Agency (‘‘U.S. EPA’’); (2) pay $2.1 million towards the United States= past site past response costs; and (3) reimburse U.S. EPA all future Upper River response costs incurred by the United States. The $2.1 million in past costs has been paid, and all future Upper River response costs billed to Tecumseh to date have also been paid. Under a 2006 Amendment to the 2004 Decree, a third party, Pollution Risk Services LLC (‘‘PRS’’), became party to the Amended Consent Decree and assumed lead responsibility for completing the cleanup of the Upper River Section of the Site. Tecumseh, however, remains liable for completion of the Upper River remedy should PRS fail to perform. In 2006, PRS purchased the former Tecumseh plant in Sheboygan Falls, Wisconsin, which was a source of hazardous substances that were released to the Site. Subsequently, Palace Associates II, LLC, (‘‘Palace’’), an affiliate of PRS, purchased the remainder of the Tecumseh plant site. Under the current proposed Consent Decree, Tecumseh, PRS, and Palace commit to finance and perform the remedy for the remainder of the Site, i.e., the Lower River, Middle River, and Inner Harbor portions of the Site, which is expected to cost about $12.6 million, and pay U.S. EPA’s cost of overseeing the remedial action. As in the case of the 2006 Consent Decree Amendment, the party expected to undertake the work is PRS. Also as in the case of the 2006 Consent Decree Amendment, Tecumseh would be fully obligated to complete the work in the event PRS defaults on its obligations under the proposed Consent Decree.

Defendants (3)

• TECUMSEH PRODUCTS COMPANYNamed in complaintNamed in settlement
• POLLUTION RISK SERVICES, LLCNamed in complaintNamed in settlement
• PALACE ASSOCIATES II, LLCNamed in complaintNamed in settlement

Facilities (1)

• SHEBOYGAN HARBOR & RIVER

  HARBOR, SHEBOYGAN, WI, 53081

  Registry ID: 110009318121

Statutes cited

• CERCLA 107A — Cost Recovery
• CERCLA 106A — Imminent & Substantial Endangerment Order

Enforcement conclusions (1)

• SHEBOYGAN HARBOR & RIVER CONSENT DECREE (CERCLA)entered 2011-08-15

  Primary law: CERCLA

Timeline (5 milestones)

• 2011-05-09Referred To Dept Of Justice
• 2011-06-13Final Order Lodged
• 2011-06-13Complaint Filed With Court
• 2011-07-12Enforcement Action Data Entered
• 2011-08-15Final Order Entered