EPA v. SAFETY-KLEEN CORP., ET AL

Case summary

THIS ACTION INVOLVES THE SETTLEMENT OF VIOLATIONS UNDER THE RESOURCE CONSERVATION AND RECOVERY ACT (RCRA), 42 U.S.C.  6901 ET SEQ, AND THE TOXIC SUBSTANCE CONTROL ACT (TSCA), 15 U.S.C.  2501 ET SEQ. THE U.S. ENVIRONMENTAL PROTECTION AGENCY ( EPA , AGENCY OR COMPLAINANT ) AND SAFETY-KLEEN CORP., INCLUDING 28 SUBSIDIARIES (HEREIN AFTERWARD REFERRED TO AS SAFETY-KLEEN OR RESPONDENTS ), AGREED TO SETTLEMENT OF ALL CAUSES OF ACTION AS SPECIFIED IN THE CONSENT AGREEMENT BEFORE THE FILING OF A COMPLAINT. SEE 40 C.F.R. 22.13. . RESPONDENT SAFETY-KLEEN CORP. IS A HOLDING COMPANY THAT OWNS 100% OF THE COMMON STOCK OF SAFETY-KLEEN SERVICES, INC., WHICH DIRECTLY OR INDIRECTLY OWNS THE REMAINING RESPONDENTS LISTED IN THE CA/FO. CERTAIN RESPONDENTS OWN AND/OR OPERATE COMMERCIAL STORAGE AND/OR DISPOSAL FACILITIES THAT HANDLE PCBS, PCB WASTE AND OTHER PCB ITEMS THAT ARE REGULATED UNDER TSCA. CERTAIN RESPONDENTS ALSO OWN AND/OR OPERATE HAZARDOUS WASTE TREATMENT, STORAGE OR DISPOSAL FACILITIES (TSDS) THAT ARE REGULATED UNDER RCRA. . RCRA REQUIRES THAT PERMITTED AND INTERIM STATUS HAZARDOUS WASTE FACILITIES MEET THE FINANCIAL ASSURANCE REQUIREMENTS IN 40 C.F.R. PARTS 264 AND 265, SUBPARTS H, FOR CLOSURE, POST-CLOSURE, AND LIABILITY INSURANCE.RCRA REGULATIONS ALLOW OWNERS AND/OR OPERATORS OF HAZARDOUS WASTE FACILITIES WHO USE SURETY BONDS TO FULFILL THEIR FINANCIAL ASSURANCE REQUIREMENT, SIXTY DAYS TO REPLACE THOSE SURETY BONDS IF THE US TREASURY DEPT REVOKES THE SURETY COMPANY'S AUTHORITY TO ISSUE FEDERAL SURETY BONDS. SEE 40 C.F.R.  264.148(B) & 265.148(B). SECTIONS 3004(A) AND (U) OF RCRA, 42 U.S.C.  6924 (A) & (U), ALSO REQUIRE THAT FOR CORRECTIVE ACTION THE OWNER AND/OR OPERATOR PROVIDE FOR FINANCIAL RESPONSIBILITY. TSCA REGULATIONS REQUIRE THAT OWNERS AND/OR OPERATORS OF THE COMMERCIAL STORAGE AND/OR DISPOSAL FACILITIES MEET THE FIN. ASSURANCE REQUIREMENTS IN 40 C.F.R. a 761.65(D)(2)(V) & (G). RESPONDENTS SECURED SURETY BONDS FROM FRONTIER INSURANCE COM PANY (FRONTIER) TO MEET TSCA AND RCRA FINANCIAL ASSURANCE RE QUIREMENTS. ON MAY 31, 2000 THE U.S. TREASURY DEPARTMENT REV OKED THE CERTIFICATE OF AUTHORITY ISSUED TO FRONTIER TO QUAL IFY AS AN ACCEPTABLE SURETY ON FEDERAL BONDS. 65 FED. REG. 35998-99 (JUNE 6, 2000). ON JUNE 9, 2000, RESPONDENTS MET W ITH EPA TO DISCUSS THEIR FINANCIAL ASSURANCE SITUATION AND I NFORMED EPA THAT THEY WOULD PROBABLY BE UNABLE TO REPLACE TH E FRONTIER SURETY BONDS IN THE NEAR FUTURE BECAUSE OF THE WI THDRAWAL OF THEIR FINANCIAL STATEMENTS, AMONG OTHER THINGS. RESPONDENTS ALSO NOTIFIED EPA, IN ACCORDANCE WITH APPLICABLE LAW, THAT THEY HAD FILED A VOLUNTARY PROCEEDING UNDER CHAPT ER 11 (BANKRUPTCY) OF THE U.S. CODE IN THE UNITED STATES BAN KRUPTCY COURT, DISTRICT OF DELAWARE. . EPA CONTACTED THE STATES TO DISCUSS SAFETY-KLEEN'S POTENTIAL NON-COMPLIANCES WITH THE FINANCIAL ASSURANCE REQUIREMENTS. AFTER DISCUSSIONS WITH THE STATES AND REVIEWING THE MATTER, EPA DETERMINED IT IS IN THE BEST INTERESTS OF THE ENVIRONMEN T AND THE PUBLIC TO SEEK A LIMITED SETTLEMENT THAT ALLOWS FO R AN OPPORTUNITY TO REMEDY THE VIOLATIONS. SEVERAL STATES, AFTER EXAMINING THE ISSUES AND THE TERMS OF THE AGREEMENT EP A HAD NEGOTIATED WITH RESPONDENTS, REQUESTED THAT EPA INCLUD E IN ITS AGREEMENT WITH RESPONDENTS THE RCRA FINANCIAL ASSUR ANCE NONCOMPLIANCES FOR RESPONDENTS' TSD(S) LOCATED IN THAT STATE. THERE ARE FOURTEEN (14) PARTICIPATING STATES . OTH ER STATES, IN ORDER TO RESOLVE THE RESPONDENTS' NONCOMPLIANC ES IN THEIR STATES, DECIDED TO ENTER INTO PARALLEL AGREEMENT S OR TAKE PARALLEL ACTION. THERE ARE TEN (10) PARALLEL ACT ION STATES .

Defendants (1)

• SAFETY-KLEEN CORP.Named in complaintNamed in settlement

Facilities (88)

• SAFETY KLEEN SYSTEMS INCORPORATED

  1655 STOCKER ST, N LAS VEGAS, NV, 89030

  Registry ID: 110000701303

• SAFETY KLEEN SYSTEMS INCORPORATED 3 109 01

  215 WHITSETT RD, NASHVILLE, TN, 37210

  Registry ID: 110000619046

• SAFETY KLEEN SYSTEMS 517601

  2100 BADGER RD., KAUKAUNA, WI, 54130

  Registry ID: 110000420964

• SAFETY KLEEN SYSTEMS INCORPORATED

  WAUKECHON RD AT E ELIZABETH STREET, SHAWANO, WI, 54166

  Registry ID: 110002152642

• SAFETY KLEEN 505301

  4704 NORTHEAST 22ND STREET, DES MOINES, IA, 50313

  Registry ID: 110005980527

• SAFETY KLEEN SYSTEMS INCORPORATED 3 109 01

  215 WHITSETT RD, NASHVILLE, TN, 37210

  Registry ID: 110000619046

• SAFETY KLEEN SYSTEMS INCORPORATED 3 109 01

  215 WHITSETT RD, NASHVILLE, TN, 37210

  Registry ID: 110000619046

• SAFETY KLEEN SERVICES GS INCORPORATED

  3536 FITE ROAD, MILLINGTON, TN, 38053

  Registry ID: 110000618902

• SAFETY KLEEN SERVICES GS INCORPORATED

  3536 FITE ROAD, MILLINGTON, TN, 38053

  Registry ID: 110000618902

• LAIDLAW ENVIRONMENTAL SERVICES TUCKER

  1672 E HIGHLAND RD, TWINSBURG, OH, 440870000

  Registry ID: 110000904745

• SAFETY KLEEN SYSTEMS 315501

  ROUTE 24 & O'NEAL DRIVE, VINTON, VA, 24179

  Registry ID: 110000585563

• SAFETY KLEEN ARAGONITE INCORPORATED

  HIGHWAY 169 NORTH, COFFEYVILLE, KS, 67337

  Registry ID: 110017392739

• SAFETY KLEEN SYSTEMS INCORPORATED

  16 11TH ST SW, MASON CITY, IA, 50401

  Registry ID: 110000611927

• SAFETY-KLEEN SYSTEMS INCORPORATED

  6617 PLEASANT RIDGE ROAD, KNOXVILLE, TN, 37921

  Registry ID: 110000702080

• SAFETY KLEEN SYSTEMS INCORPORATED 3 109 01

  215 WHITSETT RD, NASHVILLE, TN, 37210

  Registry ID: 110000619046

• …and 73 more

Statutes cited

• TSCA 6-PCBS — PCBS
• RCRA 3004 — Hazardous Waste Treatment, Storage, and Disposal Standards

Enforcement conclusions (5)

• SAFETY-KLEEN CORP.entered 2000-09-06

  Primary law: RCRA

  Federal penalty: $184,692

• SAFETY-KLEEN ?VA, UT, OH?entered 2000-12-04

  Primary law: RCRA

  Federal penalty: $36,558

• SAFETY-KLEEN ?KY & ME?entered 2001-05-01

  Primary law: RCRA

  Federal penalty: $24,370

• SAFETY-KLEEN ?AMENDED?entered 2001-05-04

  Primary law: RCRA

  Federal penalty: $143,118

• SAFETY-KLEEN ?AZ?entered 2001-05-18

  Primary law: RCRA

  Federal penalty: $20,310

Timeline (3 milestones)

• 2000-08-25Complaint Filed/Proposed Order
• 2001-05-18Final Order Issued
• 2001-10-04Enforcement Action Data Entered