EPA v. GCM Liquidation Corporation

Case summary

On August 30, 2017, the U.S. District Court for the Western District of Pennsylvania approved the settlement of EPA?s claims in the Gulf Chemical & Metallurgical Corporation (GCMC) bankruptcy. Under the settlement the GCM Liquidation Corporation (GCMLC) paid $50,000 to resolve Region 6?s RCRA claims related to violations at the former GCMC facility in Freeport, Texas. Region 6 conducted an inspection of the Freeport facility in May 2014 and continued its investigation through 2015, ultimately identifying a number of RCRA violations. In May 2016, GCMC and Region 6 reached a tentative agreement to resolve the violations through a consent agreement and final order. However, on June 14, 2016, and before the CAFO could be finalized, GCMC filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. On December 12, 2016, DOJ filed a proof of claim, asserting an unliquidated claim for civil penalties for GCMC?s violations of RCRA. After negotiation with DOJ and other creditors, GCMLC filed a plan for liquidating its assets on July 7, 2017, which included this $50,000 settlement. The committee of unsecured creditors objected to the terms of the settlement and DOJ then negotiated and secured a stipulated agreement providing for the $50,000 payment as well as explicitly preserving EPA?s ability to bring further actions for criminal enforcement or injunctive relief. The court approved the stipulated agreement on August 30 and GCMLC paid $50,000 on September 8.

Defendants (1)

• GCM Liquidation Corporation a/k/a Gulf Chemica & MNamed in complaintNamed in settlement

Facilities (1)

• GLADIEUX METALS RECYCLING

  302 MIDWAY RD, FREEPORT, TX, 77541

  Registry ID: 110070750589

Statutes cited

• RCRA 3002 — Standards Applicable to Generators of Hazardous Waste

Enforcement conclusions (1)

• GCM Liquidation Corporationentered 2017-09-08

  Primary law: RCRA

  Federal penalty: $50,000

Timeline (6 milestones)

• 2016-12-07Referred To Dept Of Justice
• 2017-09-08Final Order Lodged
• 2017-09-08Complaint Filed With Court
• 2017-09-08Enforcement Action Closed
• 2017-09-08Final Order Entered
• 2017-09-27Enforcement Action Data Entered