EPA v. CENTURY LAMINATORS, INC.

Case summary

THE OMEGA CHEMICAL CORPORATION FACILITY ( WHIITER SITE ) IS LOCATED IN WHITTER, CALIFORNIA. THIS SITE IS A FORMER CHLOROFLUROCARBON ( CFCS ) RECYCLING OPERATION THAT WAS OPERATED BY DENNIS O'MEARA AND THE OMEGA CHEMICAL CORPORATION ( OCC ). EPA HAS BEEN INVOLVED WITH THE WHITTIER FACILITY SINCE JANUARY 1995, WHEN AN EPA CONTRACTOR CONDUCTED A PRELIMINARY ASSESSMENT OF THE WHITTER SITE AND OBSERVED APPROXIMATELY 3,000+ DRUMS, CONTAINING VARIOUS STAGES OF DETERIORATION, MANY OF WHICH WERE LEAKING. OCC'S CONTRACTOR HAD PERFORMED SOIL SAMPLING AT THE WHITTER SITE IN 1988, THE RESULT OF WHICH REVEALED THE PRESENCE OF NUMEROUS HAZARDOUS SUBSTANCES IN THE SUBSURFACE AND GROUNDWATER AT THE WHITTIER SITE, INCLUDING METHYLENE CHLORIDE, TETRACHLOROETHYLENE, AND TRICHLOROETHYLENE. EPA SUBSEQUENTLY ISSUING A UNILATERAL ADMINISTRATIVE ORDER ( UAO ) TO APPROXIMATELY 170 RESPONDENTS. ONE OF THE PARTIES NAMED AS RESPONDENT TO THE UAO WAS CENTURY LAMINATORS, INC. ( CL ). ON MAY 31, 1995, CL RESPONDED TO THE UAO, AND NOTIFIED EPA (FOR THE FIRST TIME DIRECTLY) THAT IT WAS IN BANKRUPTCY, THAT A REORGANIZATION PLAN WAS IN EFFECT (AND WOULD BE FOR SIX YEARS FROM ITS CONFIRMATION DATE), AND THAT THE STATE AND ANY OF THE PRPS HAD THE OPPORTUNITY TO CLAIM AN AMOUNT IN THE RESTRUCTURING OF DEBT IN CL'S PLAN, AND THAT NONE DID. CL INDICATED ITS INTENT TO COMPLY WITH THE UAO TO THE EXTENT THEY COULD FINANCIALLY AFFORD TO DO SO. ON OR ABOUT JULY 15, 1996, THE CASC CORPORATION, ONE OF DEBTOR'S CREDITORS, FILED A MOTION IN AID OF CONSUMMATION OF THE PLAN AND SEEKING DISALLOWANCE OF CLAIMS RELATING TO POTENTIAL ENVIRONMENTAL LIABILITY; INCLUDING POTENTIAL CLAIMS RELATING TO OMEGA SITE. UPON RECEIPT OF THE MOTION, NEGOTIATIONS WERE INITIATED WITH CL TO LIMIT THE EXTENT OF THE RELEASE AND TO RESOLVE CL'S LIABILITY AT OMEGA. AS A RESULT OF THE NEGOTIATIONS, THE FOLLOWING RESOLUTION OF LIABILITY WAS REACHED: 1) THE U.S. WOULD AGREEIT WOULD NOT HAVE AN ALLOWED CLAIM IN THE BANKRUPTCY FOR THE OMEGA SITE, AND TO RELEASE CL FROM LIABILITY UNDER CERCLA RELATING TO THE OMEGA SITE; 2) AS TO FOUR OTHER SITES CL WAS ABLE TO IDENTIFY AS HAVING SENT WASTE TO, ALL PARTIES AGREED TO RESERVE AND RETAIN THEIR RESPECTIVE RIGHTS AS TO SUCH CLAIMS; AND 3) AS TO ALL OTHER CLAIMS AT SITES NOT LISTED, CL AND CASC HAVE AGREED THAT THEY WILL NOT ASERT THAT SUCH CLAIMS ARE BARRED BY THE BANKRUPTCY PROCEEDINS, AND THE U.S. HAS AGREED THAT IT WILL NOT SEEK RECOVERY OF ANY FUNDS FROM OTHER CL CREDITORS IF SUCH CLAIMS ARISE IN THE FUTURE. THIS WILLAVOID THE NECESSITY OF LITIGATING THESE CLAIMS AT THE PRESENT TIME. THELITIGATION OF THESE CLAIMS WOULD BE RESOURCE INTENSIVE AS THE RELATIONSHIP BETWEEN BANKRUPTCY AND ENVIRONMENTAL LAWS IS COMPLICATED AND SOMEWHAT UNCLEAR. FURTHER, ALL OF THE FOUR FACILITIES IDENTIFIED BY CL ARE PRESENTLY OPERATING IN COMPLIANCE WITH RCRA PERMITS, SO IT IS POSSIBLE THAT NO CLAIMS WILLACTUALLY ARISE IN THE FUTURE RELATING TO THESE SITES.

Defendants (1)

• CENTURY LAMINATORS, INC.Named in complaintNamed in settlement

Facilities (1)

• OMEGA CHEMICAL SITE

  12504 E WHITTIER BLVD, WHITTIER, CA, 90602

  Registry ID: 110000609510

Statutes cited

• CERCLA 107 — Superfund

Enforcement conclusions (1)

• CENTURY LAMINATORSentered 1996-10-25

  Primary law: CERCLA

Timeline (7 milestones)

• 1996-10-25Final Order Lodged
• 1996-10-25Final Order Entered
• 1996-10-25Referred To Dept Of Justice
• 1996-10-25Complaint Filed With Court
• 1996-10-25Concluded
• 1996-10-25Enforcement Action Closed
• 1997-10-16Enforcement Action Data Entered