EPA v. FARMLAND INDUSTRIES, INC., HASTINGS, NE

Case summary

THE FAR-MAR-CO SUBSITE IS ONE OF SEVEN SUBSITES AT THE HASTINGS GROUNDWATER CONTAMINATION SITE. EPA BEGAN INVESTIGATION OF GROUNDWATER CONTAMINATION AT THE HASTINGS SITE IN 1984, AND IDENTIFIED VARIOUS SOURCES OF CONTAMINATION. THESE VARIOUS SOURCES LATER BECAME IDENTIFIED AS SEPARATE SUBSITES OF THE HASTINGS SITE. THE FAR-MAR-CO SUBSITE IS LOCATED OUTSIDE OF THE EASTERN EDGE OF THE CITY LIMIT, WEST OF SIXTH AVENUE, NORTH OF THE U.S. HIGHWAY 6 BY-PASS, AND SOUTH OF SEVENTH STREET, AND IS CHARACTERIZED PRIMARILY BY CARBON TETRACHLORIDE (CC14) AND ETHYLENE DIBROMIDE (EDB) CONTAMINATION. EPA HAD BEEN INVESTIGATING THE SOURCE OF CC14 AND EDB CONTAMINATION IN CMS #24, A PUBLIC SUPPLY WELL EAST AND DOWNGRADIENT OF THE FAR-MAR-CO SUBSITE, WHEN IT FOUND SOIL AND GROUNDWATER CONTAMINATED WITH CC14 AND EDB AT THE GRAIN ELEVATOR PROPERTY. THE SUBSITE PROPERTY HAS BEEN THE LOCATION OF A GRAIN MERCHANDISING BUSINESS SINCE 1954. ORIGINALLY, THE GRAIN MERCHANDISING BUSINESS HAD BEEN OWNED AND OPERATED BY MORRISON-QUIRK GRAIN CORPORATION. EPA LEARNED THAT DURING MORRISON'S OWNERSHIP, A GRAIN DUST EXPLOSION OCCURRED IN 1959 AT THE SUBSITE CAUSING A TANK STORING APPROXIMATELY 997 GALLONS OF LIQUID GRAIN FUMIGANT TO RUPTURE AND SPILL ITS CONTENTS ONTO THE GROUND. THE FUMIGANT CONTAINED CC14 AND EDB. IN 1975, MORRISON SOLD TWO LARGE TRACTS OF THE PROPERTY TO FAR-MAR-CO, INC., WHICH CONTINUED THE OPERATIONS OF THE GRAIN ELEVATOR. FAR-MAR-CO, INC., LATER MERGED INTO FARMLAND INDUSTRIES, INC. IN 1985, FARMLAND LEASED THE PROPERTY TO COOPERATIVE PRODUCERS, INC. (CPI), UNTIL CPI PURCHASED THE PROPERTY IN 1991. BOTH MORRISON AND FARMLAND USED LIQUID GRAIN FUMIGANT THAT CONTAINED CC14. MORRISON ALSO USED EDB, BUT IT IS DISPUTED WHETHER FARMLAND EVER USED EDB. THE SETTLING DEFENDANTS IN THIS CONSENT DECREE ARE COOPERATIVE PRODUCERS, INC., THE OWNER/OPERATOR OF THE FAR-MAR-CO SUBSITE, AND FARMLAND INDUSTRIES, INC. (FARMLAND), THE FORMER OWNER/OPERATOR OF THE SUBSITE. THIS AGREEMENT SPECIFICALLY REQUIRES CPI TO PROVIDE: 1) NOTICE TO SUCCESSORS IN TITLE OF THIS CONSENT DECREE; AND 2) ACCESS TO EPA, THE STATE, FARMLAND, AND THEIR REPRESENTATIVES, EMPLOYEES, AND CONTRACTORS. THIS AGREEMENT REQUIRES FARMLAND TO PERFORM THE WORK, ALTHOUGH THE PARTIES ARE JOINTLY AND SEVERALLY LIABLE FOR ALL WORK REQUIRED BY THE PROPOSED CONSENT DECREE. THE AGREEMENT ALSO REQUIRES THE SETTLING DEFENDANTS TO REIMBURSE THE U.S. FOR PAST COSTS OF $954,019. THE CONSENT DECREE ADDRESSES THE REMEDIAL ACTION FOR THE INITIAL SOURCE CONTROL OPERABLE UNIT. THE REMEDIAL DESIGN WAS PREVIOUSLY PERFORMED BY FARMLAND PURSUANT TO AN ADMINISTRATIVE ORDER ON CONSENT. CONSISTENT WITH THE REMEDY SELECTED IN THE RECORD OF DECISION (ROD) WHICH HAD BEEN SIGNED ON SEPTEMBER 30, 1988, FARMLAND DESIGNED A SOIL VAPOR EXTRACTION (SVE) SYSTEM TO ADDRESS THE INITIAL SOURCE CONTROL OPERABLE UNIT. FARMLAND PERFORMED THE REMEDIAL DESIGN AFTER CONDUCTING A PILOT STUDY OF THE SVE SYSTEM AT THE SUBSITE. PRIOR TO AND DURING THE NEGOTIATIONS OF THIS PROPOSED CONSENT DECREE, EPA WAS ALSO HOLDING DISCUSSIONS WITH MORRISON CONCERNING WORK RELATED TO GROUNDWATER CLEAN-UP. EPA INFORMED MORRISON THAT THE AGENCY WOULD REQUIRE MORRISON TO FINANCE OR PERFORM RESPONSE ACTIONS RELATED TO GROUNDWATER AT THE SUBSITE, WHILE FARMLAND WOULD BE REQUIRED TO FINANCE OR PERFORM RESPONSE ACTIONS RELATED TO SOURCE CONTROL. DURING NEGOTIATIONS OF THE CONSENT DECREE, EPA RE-EXAMINED THE DATA COLLECTED BY FARMLAND DURI

Defendants (2)

• COOPERATIVE PRODUCERS, INC.Named in complaintNamed in settlement
• FARMLAND INDUSTRIES, INC.Named in complaintNamed in settlement

Facilities (3)

• HASTINGS GROUND WATER CONTAMINATION

  E CENTRAL HASTINGS, HASTINGS, NE, 68901

  Registry ID: 110009297965

• HASTINGS GROUND WATER CONTAMINATION

  E CENTRAL HASTINGS, HASTINGS, NE, 68901

  Registry ID: 110009297965

• FARMLAND INDUSTRIES SITE

  1002 BROADWAY, SCOTTSBLUFF, NE, 693613524

  Registry ID: 110010158248

Statutes cited

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

Enforcement conclusions (1)

• FARMLAND INDUSTRIESentered 1997-05-07

  Primary law: CERCLA

Timeline (8 milestones)

• 1987-03-29Enforcement Action Data Entered
• 1995-09-29Referred To Dept Of Justice
• 1996-03-18Complaint Filed With Court
• 1997-05-07Final Order Lodged
• 1997-05-07Final Order Entered
• 1997-05-07Concluded
• 2004-11-19Enforcement Action Closed
• 2004-11-19Pipeline Closed