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99-23103 RESO RESOLUTION NO. 99-23103 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER, AND ALL NECESSARY CITY PERSONNEL, TO ENTER INTO THE OPTION 2 SETTLEMENT FOR DE MINIMIS PARTIES RELATIVE TO THE CASE OF PETROLEUM PRODUCTS CORPORATION SUPERFUND SITE COOPERATING PARTIES GROUP v. DAN BURNS OLDSMOBILE. ET AL, US, DISTRICT COURT, SO. DISTRICT OF FLORIDA, CASE NO, 94-7206-CIV -HIGHSMITH. WHEREAS, the City of Miami Beach is a de minimis member ofthe Potentially Responsible Party (PRP) Group with regard to the Petroleum Products Corporation's (PPC) Superfund Site located between Pembroke Road and Carolina Street just west of Interstate 95 in Broward County, Florida; and WHEREAS, settlement options have been presented to all de minimis parties in the PRP Group in order to resolve that litigation styled Petroleum Products COI:poration's Superfund Site Cooperating Parties Group vs. Dan Bums Oldsmobile. et aI, U.S. District Court, Southern District of Florida, Case No. 94-7206-CIV -HIGHSMITH, which case has been stayed by the Court and which complaint has not been served upon the City of Miami Beach pending a settlement of this matter; and WHEREAS, it is in the best interest of the City to enter into the Settlement Agreement and, in particular, Option Two, which provides, inter alia, for a settlement of all claims for Superfund response costs at the PPC Superfund Site and which does not contain a site cost reopener and, thus, absolves the City of Miami Beach of all future clean-up liability with regard to the Site. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: Section 1. That the City Commission hereby approves the Settlement Agreement, Option Two, which is attached and incorporated herein as Exhibit A. Section 2. That the City Commission authorizes the City Manager and all necessary City personnel to execute the Settlement documents in relation to the Option Two Settlement Agreement. PASSED and ADOPTED this 17 t h day of March ,1999. 1~ MAYOR Lk6 f~ CITY CLERK F:IA Tf()\TI IRNIRESnS\PETRPRtl!l,SET llJr..hfgiJ/lli9 APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION 1t~ ~ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 COMMISSION MEMORANDUM NO. ~ \ 5-9<:1 " TO: Mayor Neisen 0, Kasdin and Members of the City Commission DATE: March 17, 1999 FROM: Sergio Rodriguez City Manager SUBJECT: A RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER, AND ALL NECESSARY CITY PERSONNEL, TO ENTER INTO THE OPTION TWO SETTLEMENT FOR DE MINIMIS PARTIES RELATIVE TO THE CASE OF PETROLEUM PRODUCTS CORPORATION SUPERFUND SITE COOPERATING PARTIES GROUP v. DAN BURNS OLDSMOBILE, ET AL, U.S. DISTRICT COURT, SOUTHERN DISTRICT OF FLORIDA, CASE NO, 94-7206-CIV-HIGHSMITH. ADMINISTRATION RECOMMENDATION Adopt the Resolution. FUNDING: $ 73,767.91 Funds are available in budget account No. 540.1792.000393. BACKGROUND AND ANALYSIS From 1966 through 1975, waste oil generated from the City's Fleet Management Division operations was disposed of at the Petroleum Products Corporation (PPC) used oil recycling facility in Broward County. As a result of the material handling and waste disposal practices of PPC, the soil and groundwater beneath the facility became contaminated with petroleum and other hazardous wastes. The site was declared a Superfund Site by the U.S. Environmental Protection Agency (EP A) in 1990 pursuant to the Comprehensive Environmental Response and Liability Act (CERCLA) . Under the provisions of CERCLA, anyone who has arranged for the disposal of hazardous substances deposited at a Superfund Site is a responsible party and is liable to the United States for costs incurred by the government and private parties to respond to the presence of hazardous substances at the Superfund Site. In accordance with those provisions, the City and several hundred other parties were identified as Potentially Responsible Parties (PRPs) by the EPA. FUNDING APPrmVED AGENDA ITEM c... 1 L DATE 3-17- 91 In an effort to limit the number of parties involved in future cost recovery actions, the EPA has offered de minimis settlement offers to those parties who disposed of less than 100,000 gallons of oil at the facility. The City is responsible for the disposal of 21,250 gallons of oil and is therefore eligible to accept the de minimis settlement offer from the EP A. Two different settlement options were offered to the de minimis parties. Under Option No.1 the City would be required to pay $17,455.41 to settle. However, there is a site cost reopener clause which voids the settlement agreement if the total site response costs exceed the current estimate of $27.7 million. Under Settlement Option No.2, the City would be required to pay $73,767.91 to settle the case. (The documents submitted by the EPA reflect a lower and miscalculated amount of $35,8~.71 which will be corrected in the final executed settlement documents.) Since Option No. 2 does not contain a site cost reopener clause, the City would be absolved of all future clean-up liability with regard to the site. To date, more than $7 million has been spent by the EP A and less than 5 % of the contamination at the site has been remediated. The EP A estimates the remediation of the site will continue for at least sixty (60) years. Because of the slow progress of the cleanup, the extended time frame for its completion, the dwindling number of financially solvent PRPs, and other technical reasons, it is considered likely that PRPs who settle under Option No.1 will be faced with additional future response cost claims pursuant to the cost reopener clause. The funds required to settle this case are available in the Risk Management Department budget. CONCLUSION The City Commission should approve and authorize the City Manager, and all necessary City personnel, to enter into the Option No.2 Settlement for de minimis parties relative to the case of Petroleum Products Corporation Superfund Site Cooperating Parties Group v. Dan Bums Oldsmobile. et aI, U.S. District Court, Southern District of Florida, Case No. 94-7206-CIV -Highsmith. SRlC~~IMSj ~ /' f/ppcstlmtcom , -, . j \. r -'y1 ... ~"IE.O ST41'.. \j~ .C'~ ",. ft t, ~ ~ % \~I~} <<'.... "'~ 01'.., PRO'I~v UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 4 ATLANTA FEDERAL CENTER 61 FORSYTH STREET ATLANTA, GEORGIA 30303-8960 February 9, 1999 .( NOTICE LETTER AND DE MINIMIS SETTLEMENT OFFER URGENT LEGAL MATTER, PROMPT REPLY REQUESTED CERTIFIED MAIL, RETURN RECEIPT REQUESTED City of Miami Beach Attn: Debora Turner, Esq. 17()() Covention Center Drive Miami Beach, FL 33139 RE: Petroleum Products Corporation Superfund Site De Minimis Settlement Offer Pembroke Park, Florida Dear Ms. Turner: City of Miami Beach (hereinafter referred to as you or your company) has been identified by the Environmental Protection Agency ("EPA") as a source of waste oil that was deposited at the Petruleum Products Corporation ("PPC") Superfund Site located on Pembroke Road near 1-95 in Pembroke Park, Florida. Waste oil contains hazardous substances as that tenn is defined by the federal Superfund law (CERCLA, 42 U.S.c. ~S 9601-9675). A person who has arranged for the disposal of hazardous substances deposited at a Superfund site is a responsible party under Section 107(a) ofCERCLA, commonly known as the Superfund law, and is liable to the United States for the costs incurred by the government and private parties to respond to the presence of hazardous substances at a Superfund site. Those costs include the costs to investigate the nature and extent of contamination and to clean up the site in a manner consistent with the standards set by the Superfund law. The federal couns have interpreted the Superfund law to create strict liability (which means that a party can be liable without being at fault), retroactive liability (which means that the law reaches back in time to create liability for the disposal of wastes even if the disposal was lawful at the time it occurred), and joint and several liability (which means that a party can be liable for all response costs incurred at a site, unless the party can demonstrate that the harm caused by its waste was "divisible" from the harm caused by the waste of other parties). THIS LETTER IS WRITTEN TO PUT YOU ON NOTICE OF YOUR LIABILITY AT THE' PPC SITE AND, SIMUL T ANEOUSL Y, TO OFFER YOU THE OPPORTUNITY TO SETTLE THAT LIABILITY BY ENTERING INTO WHAT THE SUPERFUND LA W CALLS A "DE MINIMIS" SETTLEMENT, YOU SHOULD READ THIS LETTER C.-\REFULL Y. YOU MA Y WISH TO SEEK THE ADVICE OF A LA WYER IF YOU ARE UNCERTAIN ABOUT HOW TO PROCEED. EXHIBIT A Internet Address (UAL) . http://www.epa.gov RecycledIRecyclable . Printed wnh Vegetable Oil Based Inks on Recycled Paper (Minimum 25~'. Postcon,umer) PPC De Minimis Settlement Offer February 9, 1999 Page 2 SITE mSTORY AND PAST COSTS The PPC Site is located between Pembroke Road and Carolin'a Street just west of Interstate 95 in Broward County, Rorida From approximately 1958, until approximately 1985, PPC collected used oil for recycling. Oil was stored in a number of petroleum storage systems at the facility. During operations, Site soils and groundwater became contaminated because of releases of oils containing hazardous substances. In 1990, EPA notified certain parties of their liability at the Site much like this letter is notifying you of your liability at the Site. A number of the parties notified in 1990 joined together to form what is called a "Potentially Responsible Party" or "PRP" Group, known as the "PPC Superfund Site Cooperating Parties Group". In this letter, the United States refers to this group as the "PPC PRP Group". Since 1991, the Group has expended over $4 million to investigate the Site and build a remediation system that removes floating oil and contaminated groundwater from beneath the ground, separates out the oil, and treats the contaminated water. To date, however, the Rorida Department of Environmental Protection's ("FOEP") Early Detection Initiative (HEDI") program has reimbursed the PPC PRP Group approximately 15% to 18% of its response costs and is currently evaluating additional reimbursement petitions submitted by the Group. EP A has incurred costs in excess of $3 million in conducting investigations at the Site and in overseeing work performed at the Site by the PPC PRP Group. The total costs to remediate the Site, including these past costs, are estimated to be in the range of $17.7 million to $27,7 million. The lower number represents a remedy that involves waste oil removal, groundwater extraction and treatment, hydraulic containment, and maintenance of an appropriate cap over portions of the Site property, The higher number represents the potential cost of the Site work if EP A determines that the remedy for the contaminated soils should include what is called "in situ" (or "in place") solidification and stabilization of the subsurface soils. This process involves the injection of certain cement-like materials which adhere to the soils and make them less mobile and less toxic. LmGA nON BROUGHT AGAINST YOU In December 1994, you and over 2,000 other parties were named as defendants in a lawsuit brought by the PPC PRP Group in the United States District Court for the Southern Dis.trict of Rorida The case is styled Petroleum Products Corporation Superfund Site Cooperating Parties Group v. Dan Burns Oldsmobile. et al., Civil Action 94-7206-CIV- HIGHSMITH. The Honorable Shelby Highsmith is the presiding judge. EP A is not a party to or involved with this litigation. The December 1994 Complaint has not yet been served on you or any other defendant because Judge Highsmith has stayed the litigation or put it on hold to allow EPA and the PPC PRP Group to put together a settlement offer. Judge Highsmith took this step at the request of the United States and the PPC PRP Group. This stay was sought to provide the parties who have been sued an opportunity to settle before incurring the costs of litigation. The PPC PRP Group has agreed to dismiss from the lawsuit every party that accepts the de minimis settlement offer as presented here. The Court is expected to lift the stay after the PPC De Minimis Settlement Offer February 9, 1999 Page 3 parties eligible for the settlement have had a reasonable opportunity to decide whether to accept this settlement. DE MINIMIS SETTLEMENTS A "de minimis" settlement offer is made to parties who fall below a "de minimis" volume cutoff established by EPA. Being a de minimis party does not mean that you have no liability for response costs at the Site. Rather, it means that you have the opportunity to settle your liability for past and future Site costs on terms that are described below so that you can avoid the transaction costs associated with defending yourself in litigation or otherwise having to deal with the Site. At the PPC Site, EP A has set the de minimis cutoff at 100,000 gallons. Any party that sent a volume of waste oil equal to or lower than this number is eligible to participate in this de minimis settlement DE MINIMIS SETTLEMENT OPTIONS The de minimis offer being made to you contains two options as explamed below. Option I requires you to pay $1.81 for each gallon of waste oil that you sent to the Site, while Option 2 requires you to pay $4.46 per gallon. The settlement also requires an additional payment of approximately 5.3 cents per gallon for past costs incurred by the FOEP in conducting the Remedial Investigation/Feasibility Study ("RIIFS"). If you elect to accept the settlement offer, you must decide which option to select Certain parties are required to pay additional interest charges if they wish to settle their liability in this de minimis settlement These charges are explained below. ODtion 1: Option 1 requires you to make a payment of $1.81 per gallon plus approximately 5.3 cents, for FDEP's RIIFS costs, for each gallon of oil assigned to you based on the evidence in Enclosure A, plus any applicable accrued interest charges, If you accept Option 1, you receive the following benefits and accept the following risks: Option 1 Benefits. Subject to the Option 1 volume and cost reopeners discussed below under "Option 1 Risks," the settlement benefits include: a. You will no longer be regarded by EPA as an active PRP at the PPC Site; b. You will receive protection from the United States from lawsuits brought under the Superfund statute by any other person who might have a claim for Superfund response costs at the PPC Site; c. You will receive a covenant from the United States, EPA, and the FDEP that you will not be sued and/or pursued administratively by these parties under the Superfund statute for your contributions to the PPC Site, subject to certain reservations of rights; PPC De Minimis Settlement Offer February 9, 1999 Page 4 d. The PPC PRP Group has agreed to dismiss you from the lawsuit brought by the Group upon payment of your settlement amount. Option 1 Risks. a. If you accept the Option 1 settlement. you are required to certify under oath to the United States that you have conducted a thorough, comprehensive, good faith search for documents and that you have fully and accurately disclosed to EP A all information known to you regarding your connection to the PPC Site. You must also certify that the volume attributed to you should not be higher based on any documents in your possession, or any information known to you at the time of the certification. You may wish to seek legal advice on the effect of making a false certification under oath to the United States. b. Option 1 contains a volume reopener tied to the discovery of additional non- duplicative evidence that demonstrates that your volume is higher than the amount upon which your settlement is based. If you elect to take Option 1, you lose the benefits of the settlement if evidence is later discovered that increases your volume by at least 10% or 500 gallons, whichever is greater. c. Because Option 1 involves a price per gallon which is less than Option 2, it also contains a Site cost reopener. If total past and future Site costs exceed roughly 29 million dollars, you lose the benefits of the settlement and will then again be regarded as a current PRP at the Site. At that time, you may incur additional Site costs. d. Since the Site cost reopener could occur at any time over the next 20 years or longer, any party electing the Option 1 settlement will be required to keep the PPC PRP Group informed of any change in its address and/or status for notices and. funher. each party will be required to condition any distribution or transfer of all or substantially all of its assets on the assumption of all obligations under this Consent Order by the distributee or transferee of those assets. Ootion 2: Option 2 requires you to make a payment of $4.46 per gallon plus approximately 5.3 cents. for FDEP's RIIFS costs. for each gallon of oil assigned to you based on the evidence in Enclosure A. plus any applicable accrued interest charges. If you accept Option 2, you receive the following benefits and accept the following risks: Option 2 Benefits. Subject to the Option 2 volume reopener discussed below under "Option 2 Risks." the benefits include: a. You will no longer be regarded by EPA as a PRP at the PPC Site; PPC De Minimis Settlement Offer February 9, 1999 Page 5 b. You will receive protection from the United States from lawsuits brought under the Superfund statute by any other person who might have a claim for Superfund response costs at the PPC Site; c. You will receive a covenant from the United States, EP A, and the FDEP that you will not be sued and/or pursued administratively by these parties under the Superfund statute for your contributions to the PPC Site, subject to certain reservations of rights; d. The PPC PRP Group has agreed to dismiss you from the lawsuit brought by the Group upon payment of your settlement amount. e. Because Option 2 involves a higher payment than Option 1, it does not contain a Site cost reopener. In other words, no matter what it costs to clean up the PPC Site, you will not have to pay any more money for that purpose. Option 2 Risks. a. If you accept the Option 2 settlement. you are required to certify under oath to the United States that you have conducted a thorough, comprehensive, good faith search for documents and that you have fully and accurately disclosed to EP A all information known to you regarding your connection to the PPC Site. You must also certify that the volume attributed to you should not be higher based on any documents in your possession or any information known to you at the time of the certification. You may wish to seek legal advice on the effect of making a false certification under oath to the United States. b. Option 2 contains a volume reopener tied to the discovery of additional nonduplicative evidence that demonstrates that your volume is higher than the amount upon which your settlement is based. If you elect to take Option 2, you lose the beneftts of the settlement if evidence is later discovered that increases your volume by at least 10% or 5,000 gaUons, whichever is greater. EP A cannot advise you on which Option to choose, That is a decision that you alone must make. CREDITS FOR PAST PAYMENTS Certain members of the PPC PRP Group qualify for de minimis settlement offers. These parties have contributed monies to the Group already in payment of response actions taken at the Site. EPA is giving credit to these parties for their prior payments, The credit is shown in the cost matrix which is contained in Appendix B of the De Minimis Administrative Order on Consent (AOC), Any parry whose credit exceeds the amount of the payment required under the settlement option chosen by that party will be permitted to accept the settlement offer for no additional payments, except for the above noted additional payment of approximately 5.3 cents per gallon to settle their liability to FOEP for past RIIFS costs, PPC De Minimis Settlement Offer February 9, 1999 Page 6 OPTION 1 AND OPTION 2 PAYMENT AMOUNTS To help you see how much you would have to pay under Option 1 or Option 2, please refer to Appendix B of the De Minimis AOe. It shows the name of each party in alphabetical order, the Option 1 payment and the Option 2 payment and any credits that a party may have because of payments made to the PPC PRP Group. It also shows the above noted FOEP payment for the RIIFS work in addition to charges required of cenain parties as discussed below. Both option prices were determined taking into account past costs incurred and future costs that will likely be incurred, unreimbursed Site costs under the State of Florida Early Detection Incentive program, and a premium to cover the risks and uncertainties associated with this settlement as they relate to current and future Site work. No party is required to enter a de minimis settlement. A party can forego the settlement and defend itself in the pending lawsuit, or join the PPC PRP Group, if it believes that it will be less expensive to do so, or for any other reason. (Please see page 8 of this letter for further information on joining the PRP Group.) ADOmONAL CHARGES FOR CERTAIN PARTIES Certain parties who qualify for a de minimis settlement are being required to make additional payments beyond their Option 1 or Option 2 payment amounts. Previouslv Noticed Parties. Under the Superfund law, prejudgment interest is recoverable from the later of the date of a written demand made against you for Site response costs or the date the costs were actually incurred. If you received either (1) a Special Notice Letter from EPA about this Site in 1990, or (2) you were notified by the PPC PRP Group prior to December 1994, when you were named in the lawsuit, ,,-"d you declined to participate in the implementation of the Site response activities, you are being required to pay an interest charge, These interest charges are entirely recoverable by the United States and the PPC PRP Group. For parties who received Special Notice Letters, the interest charge dates back to 1990. For parties who were notified by the PPC PRP Group of liability and invited to participate with the PPC PRP Group, the interest charge dates to December 1994, the date of the filing of the Complaint against you by the PPC PRP Group. Appendix B of the De Minimis AOC shows each party affected by interest charges and the amount of such charge, GaD Period Pavment. Site records for cenain parties are missing for approximately the time period from 1977 to 1980. There are, however, a number of parties who were regular users of the PPC Site before 1977 and after 1980, or were regular users of the PPC Site beginning in 1981. EP A was concerned that such parties may be hesitant to certify under oath to the United States that their volumes are accurate because of this lack of documents. Therefore, this settlement requires parties affected by the records gap to make an additional payment to cover the estimated volume associated with the gap period. This settlement accepts this estimated gap volume to cover the gap period for certification purposes, where a party is otherwise unable to determine its true volume of waste oil generated during the gap period. This additional gap volume, which is added to each affected party's total volume, is identified on AttaChment A to this letter. PPC De Minimis Settlement Offer February 9, 1999 Page 7 CHALLENGES TO VOLUME If you believe that your volume is overstated, or that your waste oil did not go to the PPC Site during the gap period, or if you believe that you have defenses to liability, you may, of course, elect to forego this de minimis settlement offer. EP A will be unable to devote the resources administratively to address any of these issues until after the de minimis settlements are processed for the parties that elect to settle in response to this offer. EP A has received assurances from the PPC PRP Group that the Group will seek from the Court a delay in service of the complaint for a reasonable period of time to pennit the review of presentations by parties that elect to forego this settlement opportunity in order to present their volumetric challenges. EP A will consider making a second round of de minimis offers some time in the future, during or after the time challenges are reviewed, but the Agency is not in a position to assure any party that elects to forego this settlement offer that a second round of offers will take place or that the terms of such offers will remain the same. INFORMATIONAL MEETING BETWEEN EPA AND DE MINIMIS PRPS EP A has scheduled a series of meetings with the de minimis PRPs who have received this letter for the purpose of answering additional questions about the settlement process and providing information on how EPA will address a de minimis PRP's claim that it is financially unable to pay its settlement amount. You are strongly encouraged to attend one of these meetings. The meetings have been scheduled for March 4, and 5, 1999, and will commence at the following location and times: Location: Broward County Public Library Main Auditorium 100 South Andrews Avenue Fort Lauderdale, Florida 33301. In order to accommodate the potentially large number of attendees, EP A has set up the following schedule: If your company's name begins with A-M: Thursday, March 4, 1999, at 2:00 p.m. If your company's name begins with N-Z: Friday. March 5, 1999, at 9:30 a.m, If you are unable to attend at the designated time, please try to attend the other meeting. HOW AND BY WHEN TO ACCEPT THE SETTLEMENT OFFER The De Minimis Settlement for the PPC Site is being embodied in an Administrative Order on Consent (AOC). The AOC for this settlement is Enclosure B to this letter. Your Company's Signature Page for the De Minimis AOC is the last page of Enclosure B. To accept the de minimis settlement, you must do the following: PPC De Minimis Settlement Offer February 9, 1999 Page 8 1. Sign the De Minimis AOC Signature Page. 2. Indicate on the Signature Page whether you are accepting the Option 1 payment or the Option 2 payment. 3. Transmit the signed Signature Page for receipt by EPA on or before March 31, 1999, to: Mr. Andy Hey Paralegal Specialist Environmental Accountability Division, 13th Floor U.S. Environmental Protection Agency, Region 4 61 Forsyth Street. S.W. Atlanta. GA 30303 DO NOT SEND ANY PAYMENT TO EPA WHEN YOU RETURN THE SIGNATURE PAGE. There are a number of additional steps which must be completed prior to your submitting payment as required under the AOC, After EP A has received Signatures Pages from the de minimis PRPs, EP A will publish a notice of the proposed settlement in the Federal Register. Pursuant to Section 122(i) ofCERCLA, 42 U.S.C. ~ 9622(i), EPA will accept public comments on the proposed settlement for thirty (30) days. In accordance with Section 122(i)(3), EPA may withdraw the AOC if comments received disclose facts or considerations which indicate that the AOC is inappropriate, improper or inadequate. If the comments received do not require modification of, or EP A withdrawal from the AOC, EP A will sign and finalize the AOC and send you a written notice providing instructions as to when and where your payment should be sent. Administrative Record Pursuant to Section 113(k) ofCERCLA, 42 U,S.C. ~ 9613(k), EPAhas established an administrative record which contains documents that form the basis of EPA's decisions on the selection of response actions for the Site. This administrative record is open to the public for inspection and is maintained by EPA at its Region 4 office, 61 Forsyth Street. S,W., Atlanta. Georgia 30303, A copy is also maintained at the Broward County Main Library, Government Documents Department. 5th Floor, 100 S. Andrews Avenue, Ft. Lauderdale, FL 33301. If you have any questions peItaining to this matter, please direct them to Rudy C, Tanasijevich. Esq. at 404-562-9557 or to Mr. Andy Hey, Paralegal Specialist at 404-562-9522. However, your best opponunity to learn more about this settlement and to ask questions will be at the meetings scheduled above, CONTAcnNGTHEPPCPRPGROUP Instead of accepting this de minimis settlement offer, you may wish to consider becoming a member of the PPC Cooperating Parties Group. If you would like information about this alternative, you may contact the following Group representatives: John M. Barkett or Arlene Brummer at the law firm ofColl, Davidson. Caner, Smith, Salter & Barkett. 3200 Miami Center, PPC De Minimis Settlement Offer February 9, 1999 Page 9 20 I South Biscayne Boulevard, Miami, Florida 33131-2312 (Telephone: 305-373-5200 __ Facsimile: 305-374-7296). SUMMARY OF ENCLOSURES The following enclosures accompany this de minimis settlement offer letter: Enclosure A Site records, gap volume, and testimonial evidence for your company, Enclosure B Administrative Order on Consent to be executed by each de minimis settling party. Due to the extent of the costs incurred and to be incurred at the Site and the legal ramifications of any failure by your company to respond to the de minimis settlement offer, EP A strongly encourages you to give this matter your immediate attention and to respond within the time specified above. · ~.7W Frankliri E. Hill, Chief Program Services Branch Waste Management Division Enclosures ENCLOSURE A City of Miami Beach 'HVO,CI: CITY OF MIAMI BEACH ~L.OflllIOA No. A 1'.10 WASHINGTON AV!NU! ~"'ON! U4.7H, -......_- r- I N. t i on. I 0 i I Se rv i c:. I Division of PetroleUM Products, 'nc. P.O. Box 336 ~11.ndel., Floride 33009 F eb rue ry I 2 , I 75 L.. .J PU8LIC WORKS CE~T. Mecnenic.' Heinten.nce W.ste Motor Oilpicked up .anth of J.nu.ry 1975 in .ccordence wi tn Q.uotetion No. 6467. III 617 S 1130175 Receipt 5820 Receipt 5552 300 g.llonl J.22...g.,lonl 1400 g.IIOftI to till for lIOn th 400 gel Ions ~ $.13. per 9.,lon . leu AMOUNT OUE $52.00 s~::: (MeA 68983) 1/27175 I (&~J\J u l.J --- .'UU LA 40 52.00 HeR 68983 2'+.00 ----------------------------------------------------------------------------------------------- .,,"I..C ",C..C" ." ..It \.,., ."0 -C'.I." .,f'. .l)". .''''''''f...:' No. A 2801 ....<C~ "1..1.. ~MC~I(S ...."'...I..C TO: - - I: ::1 ;:: ~:1 :. _ .: CITY OF' MIAMI BEACH ''1.... ..c:.; "0 5:V!::7 /!-z /_ //- 7'r- !J4w~ L~ - /-~4- "" - ,I. /.- 'rI '1-~~-7o -9.=-1,- ?5 ~ .J 1"- 7r // /,,, N ~ . , ~oo laD /0 t r TOLL FREE WATTS LINE '.aoo-232.~~S N'A llONAL OIL SERVICE JACICSONVIl.U 90" . 355~a'1 90'" . 3511.1_ SAVANNAH, GA. . ~ i12 . ~15 MO 1.L. "'fWOOO D5 . _ ''X)Q ..IAMI :ms. S2S-137. '".. 4N1' CITY 813 . 1s.-15G6 TAMPA 81 3 . 23-1 T.I8 "'! AOORESS '"'CICiO UI' .... ( .....,- { I Jl'r~U~'WoU~IONS ~d7)//.3I;~~~ ]- tPd FIY-l.r~rtJ NETG"l... 0"0 -'00 .~~d~. NET GAL.. " NET S f:?' - . I. S. . w. AL.L.OWeO '-f ,4929 ''-ATe....? '!)...... ~ "_-..' ': :.:: I::; .: 1 INVOIce CITY OF MIAMI BEACH ~L.O"'OA 1130 ."5HINC;TON "VeNU! ~~ON! U4.7511 No. A -?C; _. . . 1_ NATIONAL OIL SERVICE DIVISION OF PETROLEUM P.O. Box 336 Hallandale, Florida "I PRODUCT S, INC. _ May 7 " 75 33009 -.J PUBLIC WORKS Oe;,.T. Mechanical Ma~n~enance Charges for Waste motor oil picked up at 430 Alton Road Mechanical Maintenance Division Shop 4/22/75 Receipt 4929 200 gallons ~ .13C/gal. 526.00 JoJ ;7/ LA 40 26.00 ------------------------------------------------------------------------------------------------ -,-C.IC )C".c~ .., ..... ,,'.f ..0 _(T.I." ,..,. -2". .~"I.".":r No. A 2970 ....ICI: "'1..1.. C"I:C~S .....,....1..1: '1'0: CITY OF" MIAMI BF" A~'" INVOIce CITY OF MIAMI BEACH "'l..O"IOA IIJG ."SHINc;TON "V!NUI! ,"HONI! U..7ST I r-NATIONAL OIL SERVICE ~ Division of Petroleum Products. Inc. P.O. Box 336 Hallandale. Florida 33009 May 30 Public Work.s Me=h. Malon:. -1 No. A -;;c;; ,. 75 Oe:"T Charges for waste motor oil picked up at 430 Alton Road Receipt 5263 5/27/75 100 gallons @ .13per gal Total Charge 513.00 LA 40 13.00 ---------------------------------------------------------------------- '- -' ....". -'. .....c...( JeT.c_ .' '.'1 \,...., ..0 .CT..... ..1'. .0". .,..,.,...:, No. A 2991 ....IO:C ........ C"'e:CICS ..."...LoC TO: CITY OF MIAMI BEACH TOLL FREE WATTS L.INE '.800-2929saS NA llONAL OIL SERVICE J...CKSONVII.LE JlEIIlS~~: go.-. J55~911 ~. .~1 go.- . J!S8.1 88J SAVANN"'M. G.... 912 . ~J2.JAAO 1040 I. L'MOO 0 306 . 9. '000 A.II.....' 306 'CI&-1371 P\...ANT CITY 113 . 7s.-15G4 TAMPA 813 .228-1738 RECElveo FRO I~'~ 8.S~_! ~ ADDRESS "CXEO UP TYPE I I W"'TeR' I I ~ ' ~ I I Fl ~ 0 UCTIO'S NET G"'L. /00 NETG"'I../t!IJ~ . NETS/O,t::7 IJ~ .7 II. S. . w. ....LLOWEO ""', f. Jur.,.) -- ~ ~ 12571 .\o.A ".... T '.! --... .....-- ....... c 0 IJ 4:~,::,-l ..... IV,J J f, ,..."o,c:. CITY OF MIAMI BEACH ~L.O"'OA 1130 W4SHINCTON 4VeNue fIlHONe SJ4.TSI I No. A ---, , 'C: ~ational Oil Service ~ DlV. of Petroleum Products, Inc. P.O. Box 336 Hallandale, Florida 33009 L -1 ~epte~=er 30 '. 75 PUBLIC WORKS OE"T. Mechanical Ma~n~enance ~ Charges ~r Waste Motor Oil picked up 9/11/75 at Mecha~ical Maintenance Division Shop, 350 Alton Road in accordance '~1th Quotation ~6467. Receipt #12571 100 Gallons @ .13~/Gallon $13.00 TOTAL C?.ARGE \ .. -. , ~ ... \. \ \ \ . - \. .. ';"';'i \ oJ' _ .' // - l ..... .':>' -', . <I, I . . . ~ . ; .., '- . .-') ,., ( \ \ LA 40 13.00 -----------------------------------------------------------------------------------------------. -",c... Jf".(~ .,. ,..., l".'.' ..0 _(T'"... ..". .''-. .~""""'.:f N A 3200' o. ""OCI: "'-I. C".CI(S ""or".!.c TO: '. I] .:; 1:1 : 1 - CITY OF' MIAMI BEACH ,..,... .cc", ..0 " , I;{ ~ ...- '. . . ~ltA. 9"'" vv \ _' State of Florida) County of Dade APPIDAVIT OP ANDY RICC~ I, Andy Ricci, first being duly sworn, say: 1. I was employed by Ricky's Waste Oil, a business owned and operated by my father who is now deceased. r collected waste oil in my father's business. My father had a relationship with Petroleu~ Products Corporation in Pembroke Park, Florida, As a result of the relationship between my father and PPC, oil collected by Ricky's Waste Oil was delivered to Petroleum Products Corporation during the years 1966-74, except for about six months in 1967 when my father shipped oil to a facility located in North Florida, I set forth below the customers of my father's company that I recall at this time, I will likely be supplementing this affidavit in the future as I am able to review information from other collectors or Petroleum Products Corporation documents. The facts set forth in this affidavit are true and correct to the best of my personal knowledge. 2, The oil volumes reflected below were for the approximate time period 1966-74. I call this "the PPC time period" in the discussion below. In most cases, I have estimated the number of years during this time period that an oil generator was a customer by using the phrase "the equivalent of __ years." This means that while I may not have collected from a customer every month of the 9-year PPC time period, this was the equivalent - 1 - !l.r< number of years that oil was collected from this customer and taken to PPC. The frequency of collection during this "equivalent" time period was monthly unless otherwise indicated. ~o allow the number of pickups that I recall to be easily calculated. For example. in the case of the Texaco training station located in downtown Miami that is discussed later in this affidavit, it was not an exclusive customer of my father's business, but over the nine year PPC time period, I collected there, at least, 36 times, Therefore, I describe it as a customer for the equivalent of a three year period. In the case of the Gulf Station located near the Howard Johnson's in downtown Miami, als~ discussed later in this affidavit, it was a customer for the equivalent of three years. However, the frequency of collection was every other month, meaning that there were, at least, 18 pickups, and so I note that frequency to indicate that it was not a monthly Customer, I am being conservative in these estimates. 3. For the most part, I do not attempt to delineate the material collected from each facility except to refer to it as "used oil" since that was the way we referred to it back then, 4. I single out some service stations, but there were many, many of them that were Customers during the PPC time period. ! recall that there was about 1,000 service stations alone in the Dade County area. These were the days when there was frequently four stations at an intersection, I have not attempted here to identify all of these stations. - 2 - p,P 32. Another governmental customer was the City of Miami Beach. The maintenance facility for the City was located in the South Beach area. There was a 500 gallon tank there. My father collected 200-300 gallons per month on the average for the entire PPC time period. - 9 - )::J, R. l'U1lTJDIJt UPIANT sA-nTH NAO'GBT AndY~~' STATE OF FLORIDA ) )SS COUNTY OF DADE ) THE FOREGOING Affic!avit was acknowledged, sworn to and subscribed before me thi.~day of ~",., , 1994, by ANDY RICCI. He i. per.onally knOWn to me or qrodu~@d a driver's license as id~ntifi~a~in" and did take an oathL My Commission expire.: c ~~~~ prin~re Name: -.. IlATIICIJSnADA NOTAa\' PUIUC $fATI Of COaGmllON NO. c:c:nsca p.(y C01oOai5lON EXP. 5,1" - 3& - PETROLEUM PRODUCTS CORPORATION SUPERFUND SITE CERCLA SECTION 122(g)(4) DE MINIMIS CONTRffiUTOR ADMINISTRATIVE ORDER ON CONSENT TABLE OF CONTENTS I. JURISDICTION ...................................,.... 1 II. STATEMENT OF PURPOSE .............................. 2 m. DEFINITIONS. . . , . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2 IV. STATEMENT OF FAcrS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 V. DETERMINATIONS ..................."............... 6 VI. ORDER . . , . , . , , , . . . . . . . . . . . . . . , . . . . . . . . , , , . . , . , . , . . . " 6 VII, P A Y1v1ENT ....,....., . . '. , : , . . . . . . . . . . . . . . . . . . . . . . . . , .. 7 VIIl, FAILURE TO MAKE PAYMENT .....,......,............. 8 IX. CERTIFICATION OF RESPONDENTS AND SETTLING FEDERAL ENTITY ....."..,',.,...,.".",........"........,.. 9 X. COVENANT NOT TO SUE OR TAKE ADMINISTRATIVE ACTION BY UNITED STATES, EPA, AND FOEP ..,.".,..........,..,..,..........,........ 10 XI. RESERVATIONS. OF RlGHTS BY UNITED STATES, EPA AND FOEP .......,.,...."....,..""."..,...,....... 10 XII. COVENANT NOT TO SUE BY RESPONDENTS AND SETTLING FEDERAL ENTITY ,.,.,....,..".,.,...,....,.....".". 12 xm, EFFEcr OF SETTLEMENT/CONTRIBUTION PROTECTION '" 12 XIV. PARTIES BOUND...................................... 13 XV. INTEGRATION/APPENDICES. . . . . . . . . . . . . . . . . . . . . . . . . . .. 14 XVI. PUBLIC COMMENT ..........,......................... 14 XVII. ATIORNEYGENERALAPPROVAL....................... 14 XVill. EFFECTIVE DATE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 15 PETROLEUM PRODUCTS CORPORATION SUPERFUND SITE CERCLA SECTION 122(g)(4) DE MINIMIS CONTRffiUTOR ADMINISTRA TIVE ORDER ON CONSENT IN THE MA ITER OF: Petroleum Products Corporation Superfund Site Pembroke Park, Rorida Proceeding under Section 122(g)(4) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.c. 9622(g)(4) L JURISDICTION ) ) ) ) ) ) ) ) ) ) ) ) ) U.S. EPA Docket No. 99-06-C DE MINIMIS ADMINISTRA TIVE ORDER ON CONSENT 1. This Administrative Order on Consent ("Consent Orderlt or ItOrderlt) is issued pursuant to the authority vested in the President of the United States by Section 122(g)( 4) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended ("CERCLAIt),42 U.S.C. ~ 9622(g)(4), to reach settlements in actions under Section 106 and 107 of CERCLA. 42 U.S.C. ~~ 9606 and 9607. The authority vested in the President has been delegated to the Administrator of the United States Environmental Protection Agency (ltEP AIt) by Executive Order 12580,52 Fed. Reg. 2923 (Jan. 29, 1987), and further delegated to the Regional Administrators of the EPA by EPA Delegation No. 14-14-E, and re-delegated to the Director, . Waste Management Division, EPA, Region IV, and further re-delegated to the Chief, Program Services Branch, Waste Management Division, EPA, Region IV. 2. This Consent Order is issued to the persons, corporations, or other entities identified in Appendix A ("Respondents"), and the United States Department of the Army (the "Settling Federal Entity"). Each of the Respondents and the Settling Federal Entity agree to undertake all applicable actions required by this Consent Order. Each of the Respondents and the Settling Federal Entity funher consent to and will not contest EP A's jurisdiction to issue this Consent Order or to implement or enforce its tenns. 3. EPA, the Rorida Department of Environmental Protection ("FDEP"), the Respondents, and the Settling Federal Entity agree that the actions undertaken by Respondents and the Settling Federal Entity in accordance with this Consent Order do not constitute an admission of any liability by any Respondent or the Settling Federal Entity. Each of the Respondents and the Settling Federal Entity do not admit, and retain the right to controvert in any subsequent proceedings, other than proceedings to implement or enforce this Consent Order. the validity of the Statement of Facts or Determinations contained in Sections IV and V, respectively. of this Consent Order. n. STATEMENT OF PURPOSE . 4. By entering into this Consent Order, the mutual objectives of the Parties are: a. to reach a final settlement among the Parties with respect to the Site pursuant to Section l22(g) ofCERCLA, 42 U.S.c. 9 9622(g), that allows Respondents and the Settling Federal Entity to make a cash payment, including a premium. to resolve their alleged civil liability under Sections 106 and 107 ofCERCLA, 42 U.S.c. 9S 9606 and 9607, for injunctive relief with regard to the Site and for Past and Future Response Costs incurred and to be incurred at or in connection with the Site by the EPA Hazardous Substance Superfund, and by private and governmental parties, thereby reducing litigation relating to the Site, subject to the reservations of rights contained in Section XI (Reservations of Rights by United States, EPA and FDEP) of this Consent Order; b. to simplify any remaining administrative and judicial enforcement activities concerning the Site by eliminating a substaritial number of potentially responsible parties ("PRPs.") from further involvement at the Site, subject to the reservations of rights contained in Section XI (Reservations of Rights by United States, EPA and FDEP) of this Consent Order; c. to obtain settlement with Respondents and the Settling Federal Entity for their fair share of Past and Future Response Costs incurred and to be incurred at or in connection with the Site by the EPA Hazardous Substance Superfund, and by private and governmental parties, and to provide for fu.ll and complete contribution protection for Respondents and the Settling Federal Entity with regard to the Site pursuant to Sections 113(t)(2) and 122(g)(5) of CERCLA, 42 U.S.c. 9S 9613(t)(2) and 9622(g)(5), subject to the reservations of rights contained in Section XI (Reservations of Rights by United States, EP A and FDEP) of this Consent Order and the terms of Paragraph 29 of this Consent Order; and d. to enter into a final settlement with Respondents and the Settling Federal Entity permitting them to make a cash payment to resolve their alleged civil liability for their fair share of all costs incurred at or in connection with the Site by the State of Rorida's InIand Protection Trust Fund, pursuant to Fla. Stat. S 376.3071 (excluding those costs covered pursuant to F1a. Stat. ~ 376.3071(9)) and the State of Rorida's Water Quality Assurance Trust Fund pursuant to Ra. Stat. 9 376.307. m. DEFINITIONS 5. Unless otherwise expressly provided herein. terms used in this Consent Order that are defined in CERCLA or in regulations promulgated under CERCLA shall have the meaning Page 2 assigned to them in the statute or regulations. Whenever the terms listed below are used in this Consent Order, the following definitions shall apply: a. "CERCLA" shall mean the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.c. 9 9601, et seq. b. "Consent Order" or "Order" shall mean this Administrative Order on Consent and all appendices attached hereto. In the event of conflict between this Order and any appendix. the Order shall controL c. "Day" shall mean a calendar day. In computing any period of time under this Consent Decree. where the last day would fall on a Saturday, Sunday, or federal holiday, the period shall run until the close of business of the next working day. d. "de minimis pany" shall mean a party listed in Appendix B, which according to information obtained by EPA sent less than 100,000 gallons of waste oil to the Site. e. "EPA" shall mean the United States Environmental Protection Agency and any successor depanments, agencies or instrumentalities. f. "EPA Hazardous Substance Superfund" shall mean the Hazardous Substance Superfund established by the Internal Revenue Code, 26 U.S.c. 99507. g. "Future Response Costs" shall mean all costs of "response" as that term is defined by Section 101(25) ofCERCLA. 42 U.S.C. 9 9601(25), incurred by EPA, other governmental entities (including the State of Florida Department of Environmental Protection), private parties OJ' any other person on or after the effective date of this Order, in relation to the Site. h. "Hazardous Substances" shall mean the materials described in 42 U.S.c. ~ 9601(14). i. "Interest" shall mean interest at the current rate specified for interest on investments of the EPA Hazardous Substance Superfund established by 26 V.S.C. ~ 9507, compounded annually on October 1 of each year, in accordance with 42 U.S.c. ~ 9607(a). j. "Past Response Costs" shall mean all costs of "response" as that term is defined by Section 101(25) ofCERCLA, 42 U.S.c. ~ 9601(25), incurred by EPA, other governmental entities (including the State of Florida Depanment of Environmental Protection), private panies or any other person prior to the effective date of this Order, in relation to the Site. k. "Paragraph" shall mean a portion of this Consent Order identified by an Arabic numeral. 1. "Parties" shall mean EP A, the S tate of Rorida Depanment of Environmental Protection, the Respondents, and the Settling Feder~ Entity. Page 3 m "Petroleum Products Superfund Site Special Account" (or "Site Special Account") shall mean the Site Special Account established for maintaining funds collected under this Consent Order. n. "Respondents" shall mean those persons, corporations, or otAer entities listed in Appendix A, with the exception of the United States Department of the Army. o. "Response Costs" shall mean all costs of "response" as that term is defined by Section 101(25) ofCERCLA, 42 U.S.c. ~ 9601(25). p. "Section" shall mean a portion of this Consent Order identified by a Roman numeral. q. "Settling Federal Entity" shall mean the United States Department of the Army, which is listed in Appendix A with the Respondents. r. "Site" shall mean the Petroleum Products Corporation Superfund Site, encompassing approximately seven acres, located at 3130 Southwest 19th Street, near Pembroke Road, in Pembroke Park, Broward County, Aorida and is depicted more clearly on the map attached as Appendix C. s. "State of Rorida Department of Environmental Protection or Rorida Department of Environmental Protection ("FDEP")" shall mean the State of Rorida Department of Environmental Protection and any successor departments, agencies or instrumentalities. t. "United States" shall mean the United States of America, including its departments, agencies and instrumentalities. IV. STATEMENT OF FACTS 6. The PPC Site is a seven acre parcel located at 3130 Southwest 19th Street, between Pembroke Park Road and Carolina Street, in Pembroke Park, Broward County, Rorida, approximately 0.2 miles west of Interstate 95 and 1.5 miles north of Dade County. From approximately 1958 until approximately 1985, the Petroleum Products Corporation operated as a collector, broker, and processor or re-refinery of waste oil Releases and discharges of waste oil occurred in the course of plant operations resulting in soil and groundwater contamination. The United States Environmental Protection Agency C"EPA") listed the PPC Site on the National Priorities List ("NPL") in 1988. 7. Hazardous substances have been or are threatened to be released at or from the Site. 8. As a result of the release or threatened release of hazardous substances, EP A, other governmental entities (including the FDEP), and certain private parties have undertaken response actions at or in connection with the Site under Section 104 of CERCLA, 42 U.S.c. ~ 9604, and will undertake response actions in the future. A Remedial Investigation and Feasibility Study Page 4 ("Rl/FS ") was conducted at the Site in 1986-88. EP A announced its first Record of Decision ("ROD") for Operable Unit #1 ("OU#1 It) at the Site in 1990. Following issuance of the ROD, a group of PRPs, "the PPC Superfund Site Cooperating Parties Group"I, undertook Remedial Design and Remedial Action as part of a Consent Decree or agreement among themselves that resulted in the construction and current operation of a system that extracts both free product for disposal and groundwater for treatment and recharge to groundwater. 9. In performing these response actions, EPA, the FDEP, and the PPC PRP Group have incurred and/or will continue to incur response costs at or in connection with the Site. As of May 31, 1998, the EPA has incurred approximately $3,203,038.0 I in response costs associated with the Site, and the FOEP has incurred $826,115.82 in Site response costs. In addition. the PPC PRP Group has incurred approximately $4,326,483.72 in response costs as of July 1. 1998. To date, however, the Rorida Department of Environmental Protection's ("FDEP") Early Detection Initiative ("EDI") program has reimbursed the PPC PRP Group approximately 15% to 18% of its response costs and is currently evaluating additional reimbursement petitions submitted by the Group. 10. Each Respondent and the Settling Federal Entity, which are all listed on Appendix A. arranged for disposal or treatment, or arranged with a transporter for transport for disposal or treatmem, of a hazardous substance owned, possessed or gerierated by such Respondent, Settling Federal Entity, or by any other person or entity, at the Site, or accepted a hazardous substance for transport to the Site which was selected by such Respondent or Settling Federal Entity. 11. The individual amount of hazardous substances contributed to the Site by each Respondent and the Settling Federal Entity does not exceed 100,000 gallons of materials containing hazardous substances, and the hazardous substances contributed by each Respondent and the Settling Federal Entity to the Site are not significantly more toxic or of significantly greater hazardous effect than other hazardous substances at the Site. Appendix B contains a list of all de minimis parties which includes the number of gallons of waste oil at the Site attributed to each de minimis party. 12. EP A estimates that the total response costs incurred and to be incurred at or in connection with the Site by the EPA Hazardous Substance Superfund and by private or governmental parties will range from 17.7 to 27.7 million dollars, depending on the final remedy selected for the Site. The payment required to be made by each Respondent and the Settling Federal Entity pursuant to this Consent Order is a minor portion of this total amount. The total response costs include all costs incurred to date as well as the Agency's projection of the total response costs to be incurred during completion of the remedial action at the Site. The total response cost estimate includes the United States', other governmental agencies', and private party costs. I In this Consent Order, the EPA refers to this group as the "PPC PRP Group". Page 5 V. DETERMINATIONS 13. Based upon the Statement of Facts set forth above and on the administrative record for this Site, EPA has determined that: a. The Petroleum Products Superfund Site is a "facility" as that term is defined in Section 101(9) ofCERCLA, 42 U.S.c. 9 9601(9). b. Each Respondent and the Settling Federal Entity is a "person" as that term is defined in Section 101(21) ofCERCLA. 42 U.S.c. ~ 9601(21). c. Each Respondent and the Settling Federal Entity is a "potentially responsible party" within the meaning of Section 122(g)(l) of CERCLA, 42 U.S.c. ~ 9622(g)(l). d. There has been an actual or threatened "release" of a "hazardous substance" from the Site as those terms are defined in Section 101(22) and (14) ofCERCLA, 42 U.S.c. 9 9601(22) and (14). e. The actual or threatened "release" caused the incurrence of response costs by EP A and other private and governmental parties. . f. . Prompt settlement with each Respondent and the Settling Federal Entity is practicable and in the public interest within the meaning of Section 122(g)(l) of CERCLA, 42 U.S.c. ~ 9622(g)(1). g. As to each Respondent and the Settling Federal Entity, this Consent Order involves only a minor portion of the response costs at the Site within the meaning of Section 122(g)( 1) of CERCLA, 42 U.S.C. ~ 9622(g)(1). h. The amount of hazardous substances contributed to the Site by each Respondent and the Settling Federal Entity and ~e toxic or other hazardous effects of the hazardous substances contributed to the Site by each Respondent and the Settling Federal Entity are minimal in comparison to other hazardous substances at the Site within the meaning of Section 122(g)(l)(A) ofCERCLA, 42 U.S.C. ~ 9622(g)(1)(A). VI. ORDER 14. Based upon the administrative record for the Site and the Statement of Facts and Determinations set forth above, and in consideration of the promises and covenants set forth herein, the following is hereby AGREED TO AND ORDERED: Page 6 VII. PAYMENT 15. Within 30 days of the effective date of this Consent Order, each Respondent shall pay to the "EPA Hazardous Substance Superfund" the amount set forth in Appendix B to this Consent Order that corresponds with the settlement payment option it selectg pursuant to Paragraph 16 below. The time period for payment shall be extended to 60 days for any local or state governmental agency that requires additional time to comply with certain requirements of law before making any payment required by this Consent Order. As soon as reasonably practicable after the effective date of this Consent Order, the United States, on behalf of the Settling Federal Entity, shall pay to the "EP A Hazardous Substance Superfund" the amount set forth in Appendix B to this Consent Order that corresponds with the settlement payment option it selects pursuant to Paragraph 16 below. This payment shall be subject to the availability of appropriated funds. No provision of this Consent Order shall be interpreted as or constitute a requirement or commitment that the United States obligate or pay funds in contravention of the Anti-Deficiency Act, 31 U.S.c. ~ 1304, 1341, 1342, 1349-51, 1511- 19, or other applicable provisions of law. 16. Each Respondent's and the Settling Federal Entity's payment includes an amount for: a) Past Response Costs incurred at or in connection'with the Site, including 5.3 cents per gallon as reimbursement for FDEP's RIlFS costs; b) projected Future Response Costs to be incurred at or in connection with the Site; c) Interest on EPA's and the PPC PRP Group's Past Response Costs (applicable to certain parties to this Consent Order); and d) a premium to cover the risks and uncertainties associated with this settlement, including but not limited to, the risk that total response costs incurred or to be incurred at or in connection with the Site by the EP A Hazardous Substance Superfund, or by any private or governmental party, will exceed the estimated total response costs upon which each Respondent's and the Settling Federal Entity's payments are based. There are two settlement options upon which payments are based: a. Dotion 1: This settlement option is based on an estimate that total Past and Future Response Costs incurred and to be incurred at or in connection with the Site will not exceed $17,763,963.24, plus a 100% premium applied solely to the remedy costs (estimated to be $11,305,810). Thus, if total costs exceed $29,069,773.24, the settlement shall be reopened as set forth below in Section XI (Reservations of Rights by United States, EPA, and the FDEP). b. Dotion 2: This settlement option represents a buy-out option, based on an estimate that total Past and Future Response Costs incurred and to be incurred at or in connection with the Site will not exceed $27,766,153.24, plus a 200% premium applied solely to the remedy costs (estimated at $21.308,000.00), subject only to a reopener if the volume of the settling Party changes in an amount as set forth below in Section Xl (Reservations of Rights by United States, EPA, and the FDEP), Page 7 17. a. Each payment made by a Respondent, unless no payment is required because past payments within the PPC PRP Group equal or exceed the amount the Respondent would otherwise pay, shall be made by certified or cashier's check (or a similar payment instrument that demonstrates the availability of funds) made payable to the "EP A Hazardous Substance Superfund". Each check shall reference the name and address of the. Party making payment, the Site name, the EPA Region and Site Spill ID Number 04 HS, and the EPA docket number for this action, and shall be sent to: U.S. EPA, Region 4, Superfund Accounting, P.O. Box 100142, Atlanta, Georgia 30384, Attn: Superfund Collection Officer. b. Each payment made by the United States on behalf of the Settling Federal Entity shall be made by a U.S. Treasury check made payable to the "EPA Hazardous Substance Superfund". At the option of the United States, payment may instead be made by electronic funds transfer in accordance with instructions provided by the EP A. c. The amounts paid by Respondents and the Settling Federal Entity pursuant to this Consent Order shall be applied as follows: a) the amount designated as "STATE COSTS" in Appendix B (De Minimis Settlement Cost Matrix) shall be paid to the FDEP; b) the amount designated as "GROUP INTEREST' in Appendix B (De Minimis Settlement Cost Matrix) shall be paid to the PPC PRP Group; and c) the remainder shall be deposited in the "Petroleum Products Corporation Superfund Site Special Account", within the EPA Hazardous Substance Superfund to be retained and used to reimburse Parties to this Order and/or the PPC PRP Group for Past Response Costs and/or Interest accrued on such Site costs and/or to conduct and/or finance future response actions at or in connection with the Site. ~ 18. At the time of payment, each Respondent and the United States (on behalf of the Settling Federal Entity) shall also send notice, including a copy of its check, that such payment has been made to: Paula V. Batchelor Cost Recovery Section Program Services Branch U.S. Environmental Protection Agency, Region 4 61 Forsyth Street, S. W. Atlanta, GA 30303 VIn. FAll..URE TO MAKE PAYMENT 19. If any Respondent fails to make full payment within the time required by Paragraph 15, that Respondent shall pay Interest on the unpaid balance. In addition, if any Respondent fails to make full payment as required by Paragraph 15, the United States may, in addition to any other available remedies or sanctions, bring an action against that Respondent seeking injunctive relief to compel payment and/or seeking civil penalties under Section 122(1) of CERCLA, 42 U.S.c. S 9622(1), for failure to make a timely payment. Page 8 If the United States, on behalf of the Settling Federal Entity. fails to make full payment within one hundred twenty (120) days of the effective date of this Consent Order, the United States shall pay Interest on the unpaid balance. In the event that the United States, on behalf of the Settling Federal entity, fails to make full payment within one hundred twenty (110) days of the effective date of this Consent Order, appropriate EP A and Justice Department supervisors will meet within 10 business days after a request by either agency to resolve the issue of non-payment. and will involve decision-making officials of the Department of Treasury. as appropriate. If this meeting does not resolve the issue, the EP A Assistant Administrator for Enforcement and Compliance Assurance and the Assistant Attorney General for the Environment & Natural Resources Division will meet within the next 10 business days to resolve the issue finally. and will involve decision-making officials of the Department of the Treasury. as appropriate. Additionally, if any Respondent fails to make full payment as described in this subparagraph, the FDEP may, in addition to any other available remedies or sanctions, bring an action against any Respondent under the laws of the State of Rorida for failure to make a timely payment. IX. CERTIFICATION OF RESPONDENTS AND THE SETTLING FEDERAL ENTITY 20. By signing this Consent Order, each Respondent certifies. individually, that, to the best of its knowledge and belief, it has; a. conducted a thorough, comprehensive, good faith search for documents, and has fully and accurately disclosed to EP A, all information currently known to it which relates in any way to the ownership, possession, generation, treatment, transportation, storage or disposal of a hazardous substance, pollutant, or contaminant at or in connection with the Site and funher that, based on such search, the volume upon which each Respondent's settlement is based is not any higher than that identified in Appendix B. A Respondent whose volume has been increased to account for a gap in the Site records may accept that increase to comply with this paragraph for the period covered by the gap protocol; b. not altered, mutilated, discarded, destroyed or otherwise disposed of any records, documents, or other information relating to its potential liability regarding the Site after notification of potential liability or the filing of a suit against it regarding the Site; c. fully complied with any and all EP A requests for information regarding the Site pursuant to Sections 104(e) and 122(e) of CERCLA, 42 U.S.c. 99 9604(e) and 9622(e); and d. The United States acknowledges that the Settling Federal Entity (1) is subject to all applicable Federal record retention laws, regulations, and policies; and (2) has certified that it has fully complied with any and all EPA and State requests for information pursuant to Section 104(e) and l22(e) of CERCLA, 42 U.S.c. 9604(e) and 9622(e), and Section 3007 of RCRA, 42 U.S.c. 6927. Page 9 X. COVENANT NOT TO SUE OR TAKE ADMINISTRATIVE ACTION BY UNITED STATES, EPA, AND THE FDEP 21. In consideration of the payments that will be made by Respondents under the terms of this Consent Order, and except as specifically provided in Section XI (Reservations of Rights by United States, EPA and FDEP), the United States, EPA, and the FDEP covenant not to sue or take administrative action against any of the Respondents pursuant to Sections 106 or 107 of CERCLA, 42 U.S.c. 99 9606 or 9607, and Fla. Stat. * 376.3071 (except for Ra. Stat. 9376.3071(12)), for matters relating to the Site. In consideration of the payment that will be made by the Settling Federal Entity under the tenns of this Consent Order, and except as specifically provided in Section XI (Reservations of Rights by United States, EPA and FDEP), the EPA covenants not to take administrative action against the Settling Federal Entity pursuant to Sections 106 or 107 ofCERCLA, 42 U.S.c. SS 9606 or 9607, for matters relating to the Site and the FDEP covenants not to sue or take administrative action against the Settling Federal Entity pursuant to Ra. Stat. 9 376.307 I (except for Fla. Stat. 9 376.3071(12)), for matters relating to the Site. With respect to present and future liability, these covenants not to sue or take administrative action shall take effect for each Respondent and the Settling Federal Entity upon receipt of that Respondent's or the Settling Federal Entity's payment as required by Section VII. With respect to each Respondent and the Settling Federal Entity, individually, these covenants not to sue or take administrative action are conditioned upon: a) the satisfactory performance by each Respondent and the Settling Federal Entity of all obligations under this Consent Order; and b) the veracity of the information provided to EP A by each Respondent and the Settling Federal Entity relating to each Respondent's and the Settling Federal Entity's involvement with the Site. These covenants not to sue or take administrative action extend only to Respondents and the Settling Federal Entity and do not extend to any other person. XI. RESERVATIONS OF RIGHTS BY UNITED STATES, EPA, AND THE FDEP 22. The covenants not to sue or take administrative action by the United States, EPA and the FDEP set forth in Paragraph 21 do not pertain to any matters other than those expressly specified in Paragraph 21. The United States, EPA and the FDEP reserve, and this Consent Order is without prejudice to, all rights against Respondents and/or the Settling Federal Entity with respect to all other matters including, but not limited to: a. liability for failure to meet a requirement of this Consent Order; b. criminal liability; c. liability for damages for injury to, destruction of, or loss Of natural resources, and for the costs of any natural resource damage assessments, or Page' 0 d. liability arising from any future arrangement for disposal or treatment of a hazardous substance, pollutant or contaminant at the Site after the effective date of this Consent Order. 23. Notwithstanding any other provision in this Consent Order, the United States. EPA and the FDEP reserve, and this Consent Order is without prejudice to the following rights: (1) their right to institute judicial or administrative proceedings against any individual Respondent seeking to compel that Respondent to perform response actions relating to the Site, and/or to reimburse the United States for additional costs of response; (2) FDEP's right to institute any judicial proceedings under CERCLA which it is leg;;;lly authorized to bring against the Settling Federal Entity; and (3) EP A's right to institute any administrative proceedings under CERCLA which it is legally authorized to bring against the Settling Federal Entity, if: a. information is discovered from a source of information (either newly discovered records or a witness who has not provided sworn information prior to the date of entry of this Consent Order) which indicates that Respondent or the Settling Federal Entity no longer qualifies as a de minimis parry at the Site, because based on new and non-duplicative information and/or data which was not already reviewed or evaluated in developing Appendix B, the Respondent or the Settling Federal Entity contributed hazardous substances to the Site which: (i) exceed the de minimis volume cutoff of 100,000 gallons, or (ii) are significantly more toxic or are of significantly greater hazardous effect than other hazardous substances at the Site; or b. information is discovered from a source of information (either newly discovered records or a witness who has not provided sworn information prior to the date of entry of this Consent Order) which, for settlement based on Paragraph 16, Option 1, indicates that Respondent or the Settling Federal Entity still qualifies as a de minimis parry at the Site, but that based on new and non-duplicative information and/or data which was not already reviewed or evaluated in developing Appendix B, the Respondent or the Settling Federal Entity contributed hazardous substances to the site: (i) in.an amount more than 10% greater than its volume listed on Appendix B or 500 gallons (whichever is greater) or (ii) which are significantly more toxic or are of significantly greater hazardous effect than other hazardous substances at the Site. In the case of a Respondent or the Settling Federal Entity which has elected to settle based on Paragraph 16, Option 2, the additional volume must be greater than 10% of its volume shown on Appendix B or 5,000 gallons (whichever is greater); or c. total response costs at or in connection with the Site exceed $29,069,773.24 and the Respondent or the Settling Federal Entity has elected the Paragraph l6a., Option 1 settlement; or d. a Respondent or the Settling Federal Entity has failed to comply with Paragraph 30 of this Order where a Respondent or the Settling Federal Entity has elected the Paragraph 16a., Option I settlement. Page 11 XU. COVENAl"lT NOT TO SUE BY RESPONDENTS AND THE SETTLING FEDERAL ENTITY 24. Respondents covenant not to sue and agree not to assert any claims or causes of action against the United States, EPA and the FOEP or their contractors or employees with respect to the Site or this Consent Order, and the Settling Federal Entity agrees not to assert any claims or causes of action against the EPA or their contractors or employees and covenants not to sue and agrees not to assert any claims or causes of action against the FOEP or their contractors or employees with respect to the Site or this Consent Order including. but not limited to: a. any direct or indirect claim for reimbursement from the EPA Hazardous Substance Superfund based on Sections 106(b)(2), 107, 11 I, 112, or 113 of CERCLA, 42 U.S.c. 9~ 9606(b)(2), 9607, 9611, 9612, or 9613, or any other provision of federal or state law; b. any claims arising out of past and future response activities at the Site; and c. any claim against the United States and/or the FOEP pursuant to Sections 107 and 113 of CERCLA, 42 U.S.c. ~9 9607 and 9613, relating to the Site. 25. Nothing in this Consent Order shall be deemed to constitute pream:horization or approval of a claim within the meaning of Section 111 (a)(2) of CERCLA, 42 U .S.c. ~ 9611 (a)(2), 40 C.ER. 300.700(d), and Fla. Stat. ~9 376.3071, 376.30711, and 376.30713. The Respondents waive any claim to payment under Sections 106(b), Ill, and 112 of CERCLA, 42 U.S.c. 99 9606(b), 9611, and 9612, against the United States or the Hazardous Substance Superfund arising out of any action performed under this Consent Order. No action or decision by EP A pursuant to this Order shall give rise to any right to judicial review except as set forth in Section 113(h) of CERCLA, 42 U.S.c. ~ 9613(h). 26. Respondents and the Settling Federal Entity covenant not to sue and agree not to assert any claims or causes of action against each other, any person who is a signatory to a Consent Decree or Administrative Order by Consent with the United States relating to the Site, or any person who is contributing to the funding of work required by any such Consent Decree or Administrative Order on C~nsent with regard to Past and Future Response Costs for the Site pursuant to Sections 107 and 113 of CERCLA, 42 U.S.c. ~~ 9607 and 9613. XID. EFFECT OF SETILEMENT/CONTRIBUTION PROTECTION 27. Nothing in this Consent Order shall be construed to create any rights in. or grant any cause of action to, any person not a Party to this Consent Order. The United States, EPA. the FOEP, Respondents, and the Settling Federal Entity each reserve any and all rights (including. but not limited to, any right to contribution), defenses, claims, demands, and causes of action which each Party may have with respect to any matter, transaction, or occurrence relating in any way to the Site against any person not a Party hereto, except as noted in Paragraph 26 above. Page 12 28. In any subsequent administrative or judicial proceeding initiated by the United States, EPA or the FDEP for injunctive relief, recovery of response costs, or other relief relating to the Site, Respondents and the Settling Federal Entity shall not assert, and may not maintain, any defense or claim based upon the principles of waiver, res judicata, collateral estoppel. issue preclusion. claim-splitting, or other defenses based upon any contention that the claims raised in the subsequent proceeding were or should have been brought in the instant action: provided. however, that nothing in this Paragraph affects the enforceability of the covenant not to sue or take administrative actio n included in Paragraph 21. 29. The Parties agree that each Respondent and the Settling Federal Entity is entitled. as of the effective date of this Consent Order, to protection from contribution actions or claims as provided by Sections Il3(f)(2) and 122(g)(5) ofCERCLA, 42 U.S.c. 99 96l3(f)(2) and 9622(g)(5), for "matters addressed" in this Consent Order. The "matters addressed" in this Consent Order are all response actions taken by the United States and by private and governmental parties, and all response costs incurred and to be incurred by the United States and by private and governmental parties, at or in connection with the Site. A Respondent or the Settling Federal Entity that fails to make payments required under this Consent Order or a Respondent or the Settling Federal Entity to which Paragraphs 23a., c. or d. become applicable, loses the benefit-of the covenants and contribution protection under this Consent Order. Moreover, a Respondent or the Settling Federal Entity to which Paragraph 23b. becomes applicable, loses the benefit of the covenants and contribution protection under this Consent Order if it fails to make additional payments as required by EP A under Paragraph 23. XIV. PARTIES BOUND 30. This Consent Order shall apply to and be binding upon EPA, the FDEP, Respondents, and the Settling Federal Entity and their heirs, successors, and assigns and any distributee or transferee of all or substantially all of their assets. Any change in ownership or corporate, Agency or other legal status of a Respondent or the Settling Federal Entity, including but not limited to, any transfer of assets or real or personal property, shall in no way alter such Respondent's or the Settling Federal Entity's responsibilities under this Consent Order or those responsibilities of any heir, successor, assign, or asset distributee or asset transferee. In the case of any distribution or transfer of all or substantially all of the assets of a Respondent or the Settling Federal Entity, said Respondent or Settling Federal Entity shall ensure that a copy of this Order is provided to the distributee(s) or transferee(s) and shall condition any such distribution or transfer on the assumption of the Respondent's or the Settling Federal Entity's obligations under this Order. Each Respondent or the Settling Federal Entity shall provide notice of any change of address or any change in ownership, corporate, Agency or legal status to: Page 13 Petroleum Products Corporation Superfund Site Cooperating Parties Group c/o ColI, Davidson, Carter, Smith, Salter & Barkett, P.A. 3200 Miami Center 201 South Biscayne Boulevard Miami, Aorida 33131 or any other address that each Respondent or the Settling Federal Entity shall be notified of in writing should there be a change of address for notice purposes under this Paragraph 30. Each signatory to this Consent Order certifies that he or she is authorized to enter into the terms and conditions of this Consent Order and to execute and legally bind the party represented by him or her. XV. INTEGRATION/APPENDICES 31. This Consent Order and its appendices constitute the final, complete and exclusive agreement and understanding among the Parties with respect to the settlement embodied in this Consent Order. The Parties acknowledge that there are no representations, agreements or understandings relating to the settlement other .than those expressly contained in this Consent Order. The following appendices are attached to and incorporated into this Consent Order: "Appendix A" is the list of Respondents and the Settling Federal Entity. "Appendix B" is the De Minimis Cost Matrix containing the payment schedule and volumetric information. "Appendix C" is the map of the Site. XVL PUBLIC COMMENT 32. This Consent Order shall be subject to a public comment period of not less than 30 days pursuant to Section l22(i) of CERCLA, 42 U.S.C. ~ 9622(i). In accordance with Section 122(i)(3) ofCERCLA, 42 U.S.C. ~ 9622(i)(3), EPA may withdraw or withhold its consent to this Consent Order if comments received disclose facts or considerations which indicate that this Consent Order is inappropriate, improper, or inadequate. Xvn. ATTORNEY GENERAL APPROVAL 33. The Attorney General or her designee has approved the settlement embodied in this Consent Order in accordance with Section 122(g)(4) of CERCLA, 42 U.S.c. 99622(g)(4). Page 14 xvm. EFFECTIVE DATE 34. The effective date of this Consent Order shall be the date upon which EP A issues written notice to Respondents and the Settling Federal Entity that the public comment period pursuant to Paragraph 32 has closed and that comments received, if any, do not require modification of or EPA withdrawal from this Consent Order. IN THE MA TIER OF: Petroleum Products Corporation Superfund Site, Pembroke Park, Florida De Minimis Administrative Order on Consent U.S. EPA Docket No. 99-06-C IT IS SO AGREED AND ORDERED: U.S. Environmental Protection Agency By: Date: Franklin E. Hill, Chief Program Services Branch Waste Management Division, U.S. Environmental Protection Agency, Region 4 61 Forsyth Street, S.W. Atlanta, Georgia 30303 Page 1 5 IN THE MATTER OF: Petroleum Products Corporation Superfund Site, Pembroke Park, Florida De Minimis Administrative Order on Consent U.S. EPA Docket No. 99-06-C Rorida Department of Environmental Protection By: Date: David Struhs, Secretary Aorida Department of Environmental Protection 2600 Blairstone Road Tallahassee, Rorida 32301 Page 16 IN THE MATTER OF: Petroleum Products Corporation Superfund Site, Pembroke Park, Florida De Minimis Administrative Order on Consent U.S. EPA Docket No. 99-06-C Signature Page for Respondent: City of Miami Beach THE UNDERSIGNED RESPONDENT or the SETILING FEDERAL ENTITY enters into this Consent Order in the matter of U.S. EPA, Docket No. 99-06-C, relating to the PETROLEUM PRODUCTS CORPORATION SUPERFUND SITE, in BROW ARD COUNTY, PEMBROKE PARK, FLORIDA, and hereby selects the following Menu Option settlement. Please indicate your selected Option with a check mark. Appendix B to this document contains the de minimis cost matrix which further itemizes your payment option amount. PAYMENT DUE MENlJ OPTION 1 ....................... .............................. $1806.21 MENlJ OPTION 2 ..................................................... $35858.71 FOR RESPONDENT/SETILING FEDERAL ENTITY: Name of Respondent! Settling Federal Entity . Street Address Signature Print Name Date Page 17 APPENDIX A PETROLEUM PRODUCTS SUPERFUND SITE/PEMBROKE PARK. FLORIDA LIST OF SETTLING DE MINIMIS RESPONDENTS APPENDIX B ('l:I '0 ~ o u.. ..lII: ~ ('l:I Q,. cu ..lII: o ~ .c E cu 0.. - cu en '0 C ~ - - - ~ cu cuen Q.en ~- ene en C (,) ~ '0 o ~ 0.. E ~ cu o ~ cu 0.. "' --.... ~~z 00(%0 oi~ ......0 a .-,!!- ~::E% 00(;;:0 ;i~ ~~o ....) ....) 0' C> <0 ..... <0 l.;x,J l.IJ........., 'IQ'" <...:> w \,(') ~ ,......,.....,,....... ,,~O\ MOO<O <1)0'<0 CONCX),......CX)~(QOCON C\I ,......C'\I~U")O. C'\I~. CDN'ltI"CDl.l') U"lln CDCDCD1:FO ...0<0,......,.....,0" ,...... 0' en ..... 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