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UNITED STATES
ENVIRONMENTAL PROTECTION AGENCY
IN THE MATTER OF: )
) Docket No. MM-HQ-2000-0005
Safety-Kleen Corp. )
1301 Gervais Street )
Columbia, South Carolina 29201 )
)
Safety-Kleen Services, Inc. )
Safety-Kleen Systems, Inc. )
Safety-Kleen (Aragonite), Inc. )
Safety-Kleen (BDT), Inc. )
Safety-Kleen (Bartow), Inc. )
Safety-Kleen (Baton Rouge), Inc. )
Safety-Kleen (Bridgport), Inc. )
Safety-Kleen (California), Inc. )
Safety-Kleen (Chattanooga), Inc. )
Safety-Kleen (Colfax), Inc. )
Safety-Kleen (Crowley), Inc. )
Safety-Kleen (Deer Park), Inc. )
Safety-Kleen (Deer Trail), Inc. )
Safety-Kleen (GS), Inc. )
Safety-Kleen (LaPorte), Inc. )
Safety-Kleen (Lone and Grassy Mtn.), Inc.)
Safety-Kleen (NE), Inc. )
Safety-Kleen (PPM), Inc. )
Safety-Kleen (Pecatonica), Inc. )
Safety-Kleen (Pinewood), Inc. )
Safety-Kleen (Plaquemine), Inc. )
Safety-Kleen (Roebuck), Inc. )
Safety-Kleen (TS), Inc. )
Safety-Kleen (Tulsa), Inc. )
Safety-Kleen (WT), Inc. )
Safety-Kleen (White Castle), Inc. )
GSX Chemical Services of Ohio, Inc. )
)
)
Respondents. )
CONSENT AGREEMENT
Complainant, Steven A. Herman, Assistant Administrator, Office of
Enforcement and Compliance Assurance, United States Environmental Protection
Agency (EPA), and
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Respondents listed on Attachment A agree that settlement of this action without
further delay is in their interest and in the public interest and having
consented to the entry of this Consent Agreement and the attached Final Order
before taking testimony and without any adjudication of any issues of law or
fact herein, Respondents agree to comply with the terms of this Consent
Agreement and the attached Final Order.
I. PRELIMINARY STATEMENT
1. This is a civil administrative action instituted under Sections
3008(a) and 3008(h) of the Solid Waste Disposal Act, as amended by the Resources
Conservation Recovery Act of 1976 and the Hazardous and Solid Waste Amendments
of 1984 (HSWA) (collectively "RCRA"), 42 U.S.C. ss.ss.6928(a) & (h), and
Section 16 of the Toxic Substances Control Act (TSCA), 15 U.S.C. ss.2615.
2. Complainant is, by lawful delegation, authorized to institute and
settle civil administrative actions brought pursuant to Sections 3008(a) and
3008(h) of RCRA, 42 U.S.C. ss.ss.6928(a) & (h), and Section 16 of TSCA, 15
U.S.C. ss.2615.
3. Respondents are debtors-in-possession under Chapter 11 of the United
States Bankruptcy Code. Respondents filed voluntary petitions for relief in the
United States Bankruptcy Court for the District of Delaware (Bankruptcy Court)
on June 9, 2000.
4. The Complainant and Respondents, having sought to informally settle
the matter, have agreed to the terms of this Consent Agreement in order to
resolve this action without trial or other litigation.
5. The terms of this Consent Agreement and attached Final Order
constitute a settlement by EPA for all claims for civil penalties pursuant to
Sections 3008(a) and 3008(h) of RCRA, 42 U.S.C. ss.ss.6928(a) & (h), and Section
16 of TSCA, 15 U.S.C. ss.2615, for the violations of
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RCRA and TSCA as specified in Section VI (Conclusions of Law) of
this Consent Agreement. Compliance with this Consent Agreement and attached
Final Order shall not be a defense to any other actions commenced pursuant to
federal, state, and local environmental laws and it is the responsibility of the
Respondents to comply with all applicable provisions of RCRA, TSCA and any other
federal, state or local laws and regulations.
6. Respondents admit to facts stipulated to in this Consent Agreement.
40 C.F.R. ss.22.18(b).
7. Respondent Safety-Kleen Services, Inc. agrees to pay the civil
penalty specified in Section VIII (Payment of Penalty) of this Consent
Agreement. 40 C.F.R. ss.22.18(b).
8. Each party to this Consent Agreement shall bear its own costs and
attorneys' fees in the action resolved by this Consent Agreement and Final
Order.
II. JURISDICTION/WAIVER OF RIGHT TO HEARING
9. This Consent Agreement is entered into pursuant to Sections 3008(a)
and 3008(h) of RCRA, 42 U.S.C. ss.ss.6928(a) & (h), and Section 16(a) of TSCA,
15 U.S.C. ss.2615(a); and the "Consolidated Rules of Practice Governing the
Administrative Assessment of Civil Penalties, Issuance of Compliance or
Corrective Action Orders, and the Revocation, Termination or Suspension of
Permits," 64 Fed. Reg. 40138 (July 23, 1999)(to be codified at 40 C.F.R. Part 22
(the "Consolidated Rules")).
10. Pursuant to Section 3006 of RCRA, 42 U.S.C. ss.6926, the
Administrator of the U.S. Environmental Protection Agency may authorize a state
to administer the RCRA hazardous waste program in lieu of the federal program
when the Administrator finds that the state program meets certain conditions.
Any violation of regulations promulgated pursuant to Subtitle C of RCRA,
42 U.S.C. ss.ss.6921-6939(e), or of any state provision authorized pursuant
to Section 3006
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of RCRA, 42 U.S.C. ss.6926, constitutes a violation of RCRA, subject to the
assessment of civil penalties and issuance of compliance orders as provided by
Section 3008 of RCRA, 42 U.S.C. ss.6928.
11. Pursuant to Section 3006 of RCRA, 42 U.S.C. ss.6926, the following
states have been authorized to administer a state hazardous waste program in
accordance with the notice provided in the Federal Register.
ARKANSAS: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b),
the Administrator of U.S. EPA granted the State of Arkansas final authorization
to administer a state hazardous waste program in lieu of the federal
government's base RCRA program, effective January 25, 1985 (50 Fed. Reg. 1513
(Jan. 11, 1985)). The Administrator of the U.S. EPA granted final authorization
to administer additional RCRA and certain HSWA requirements effective May 29,
1990 (51 Fed. Reg. 24504 (Mar. 27, 1990 )); November 18, 1991 (56 Fed. Reg.
47153 (Sept. 18, 1991)); December 4, 1992 (57 Fed. Reg. 45721 (Oct. 5, 1992));
December 21, 1994 (59 Fed, Reg. 5115 (Oct. 7, 1994)).
GEORGIA: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b), the
Administrator of EPA granted the State of Georgia final authorization to
administer a state hazardous waste program in lieu of the federal government's
base RCRA program, effective Aug. 21, 1984 (49 Fed. Reg. 31417 (Aug. 7, 1984)).
The Administrator of the EPA granted final authorization to administer
additional RCRA and certain HSWA requirements effective November 17, 1998 (63
Fed. Reg. 49852 (Sept. 18, 1998)); September 18, 1986 (51 Fed. Reg. 31618 (Sep.
4, 1986)); September 26, 1988 (53 Fed. Reg. 28383 (Jul. 28, 1988));
September 24, 1990 (55 Fed. Reg. 30000 (Jul. 24, 1990)); January 25, 1993
(57 Fed. Reg. 55466 (Nov. 25, 1992)); November 24, 1990 (55
Fed. Reg. 38997 (Sep. 24, 1990)); January 18, 1994 (58 Fed. Reg. 60388 (Nov. 16,
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1993)); April 15, 1991 (56 Fed. Reg. 5656 (Feb. 12, 1991)); July 10, 1992 (57
Fed. Reg. 20055 (May 11, 1992)); April 27, 1993 (58 Fed. Reg. 11539 (Feb. 26,
1993)); October 30, 1995 (60 Fed. Reg. 45069(Aug. 30, 1995)); June 27, 1994 (59
Fed. Reg. 21664 (Apr. 26, 1994)); July 10, 1995 (60 Fed. Reg. 24790 (May 10,
1995)); May 6, 1996 (61 Fed. Reg. 9108 (Mar. 7, 1996)); January 23, 1998 (62
Fed. Reg. 62521 (Nov. 24, 1997)); December 3, 1999 (64 Fed. Reg. 55629 (Oct. 14,
1999)).
ILLINOIS: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b),
the Administrator of EPA granted the State of Illinois final authorization to
administer a state hazardous waste program in lieu of the federal government's
base RCRA program, effective January 31, 1986 (51 Fed. Reg. 3778 (Jan. 30,
1986)). The Administrator of the EPA granted final authorization to administer
additional RCRA and certain HSWA requirements effective March 5, 1988 (53 Fed.
Reg. 126 (Jan. 5, 1988)); April 30, 1990 (55 Fed. Reg. 7320 (Mar. 1, 1990));
August 15, 1994 (59 Fed. Reg. 30525 (Jun. 14, 1994)); November 13, 1989 (54 Fed.
Reg. 37649 (Sep. 12, 1989)); March 31, 1992 (57 Fed. Reg. 3722 (Jan. 31, 1992));
May 14, 1996 (61 Fed. Reg. 10684 (Mar. 15, 1996)); June 3, 1991 (56 Fed. Reg.
13595 (Apr. 3, 1991)); October 4, 1996 (61 Fed. Reg. 40520 (Aug. 5, 1996)).
MASSACHUSETTS: Pursuant to Section 3006(b) of RCRA, 42 U.S.C.
ss.6926(b), the Administrator of U.S. EPA granted the Commonwealth of
Massachusetts final authorization to administer a state hazardous waste program
in lieu of the federal government's base RCRA program, effective February 7,
1985 (50 Fed. Reg. 3344 (Jan. 24, 1985)). The Administrator of the U.S. EPA
granted final authorization to administer additional RCRA and certain HSWA
requirements effective December 31, 1990 (50 Fed. Reg. 3344 (Jan. 24, 1985));
November 30, 1998 (63 Fed. Reg. 52180 (Sep. 30, 1998)); October 12, 1999
(64 Fed. Reg. 55153 (Oct. 12,
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1999)).
MINNESOTA: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b),
the Administrator of EPA granted the State of Minnesota final authorization to
administer a state hazardous waste program in lieu of the federal government's
base RCRA program effective February 11, 1985. 50 Fed. Reg. 3756 (Jan. 28,
1985). The Administrator of the EPA granted final authorization to administer
additional RCRA and certain HSWA requirements effective September 18, 1987 (52
Fed. Reg. 27199 (Jul. 20, 1987)); June 23, 1989 (54 Fed. Reg. 16361 (Apr. 24,
1898)(corrected effective June 23, 1989 (54 Fed. Reg. 27169 (Jun. 28, 1989));
August 14, 1990 (55 Fed. Reg. 24232 (Jun. 15, 1990)); August 23, 1991 (56 Fed.
Reg. 28709 (Jun. 24, 1991)); May 18, 1992 (57 Fed. Reg. 9501 (Mar. 19, 1992));
May 17, 1993 (58 Fed. Reg. 14321 (Mar. 17, 1993)); and March 21, 1994 (59 Fed.
Reg. 2998 (Jan. 20, 1994). The EPA authorized Minnesota hazardous waste
regulations are codified at Minnesota Rules 7045.0001 et seq. See also 40
C.F.R. ss.272.1200 et seq.
NEVADA: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b), the
Administrator of EPA granted the State of Nevada final authorization to
administer a state hazardous waste program in lieu of the federal government's
base RCRA program, effective November 1, 1985 (50 Fed. Reg. 42181 (Oct. 18,
1985)). The Administrator of the EPA granted final authorization to administer
additional RCRA and certain HSWA requirements effective June 29, 1992 (57 Fed.
Reg. 18083 (Apr. 29, 1992)); July 26, 1994 (59 Fed. Reg. 27472 (May 27, 1994));
June 12, 1995 (60 Fed. Reg. 18358 (Apr. 11, 1995)); August 23, 1996 (61 Fed.
Reg. 32345 (Jun. 24, 1996)); March 30, 1999 (64 Fed. Reg. 4596 (Jan. 29, 1999)).
SOUTH DAKOTA: Pursuant to Section 3006(b) of RCRA, 42 U.S.C.
ss.6926(b), the Administrator of EPA granted the State of South Dakota final
authorization to administer a state
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hazardous waste program in lieu of the federal government's base RCRA program,
effective November 2, 1984 (49 Fed. Reg. 41038 (Oct. 19, 1984)). The
Administrator of the EPA granted final authorization to administer additional
RCRA and certain HSWA requirements effective November 8, 1993 (58 Fed. Reg.
47216 (Sep. 8, 1993)); June 17, 1991 (56 Fed. Reg. 15503 (Apr. 17, 1991));
September 23, 1996 (61 Fed. Reg. 38392 (Jul. 24, 1996)); March 11, 1994 (59 Fed.
Reg. 1275 (Jan. 10, 1994)); June 8, 2000 (65 Fed. Reg. 26755)).
TENNESSEE: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b),
the Administrator of U.S. EPA granted the State of Tennessee final authorization
to administer a state hazardous waste program in lieu of the federal
government's base RCRA program, effective February 5, 1985 (50 Fed. Reg. 2820
(Jan. 22, 1985)). The Administrator of the U.S. EPA granted final authorization
to administer additional RCRA and certain HSWA requirements effective July 31,
1992 (57 Fed. Reg. 23063 (Jun. 1, 1992)); August 11, 1987 (52 Fed. Reg. 22443
(June 12, 1987)); July 22, 1996 (61 Fed. Reg. 25794 (May 23, 1996)); October 23,
1995 (60 Fed. Reg. 43979 (Aug. 24, 1995)); July 7, 1995 (60 Fed. Reg. 22524 (May
8, 1995)); March 31, 1998 (63 Fed. Reg. 4587 (Jan. 30, 1998)); November 15, 1999
(64 Fed. Reg. 49998 (Sep. 15, 1999)).
VERMONT: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b), the
Administrator of EPA granted the State of Vermont final authorization to
administer a state hazardous waste program in lieu of the federal government's
base RCRA program, effective January 21, 1985 (50 Fed. Reg. 775 (Jan. 7, 1985)).
The Administrator of the EPA granted final authorization to administer
additional RCRA and certain HSWA requirements effective August 6, 1993 (58 Fed.
Reg. 31911 (June 7, 1993)); November 23, 1999 (64 Fed. Reg. 51702 (Sep. 24,
1999)); November 23, 1999 (64 Fed. Reg. 56174 (October 18, 1999)).
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WISCONSIN: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b),
the Administrator of EPA granted the State of Wisconsin final authorization to
administer a state hazardous waste program in lieu of the federal government's
base RCRA program, effective January 31, 1986 (51 Fed. Reg. 3783 (Jan. 30,
1986)). The Administrator of the EPA granted final authorization to administer
additional RCRA and certain HSWA requirements effective June 6, 1989 (54 Fed.
Reg. 22278 (May 23, 1989)); April 24, 1992 (57 Fed. Reg. 15029 (Apr. 24, 1992));
April 24, 1989 (54 Fed. Reg. 7422 (Feb. 21, 1989)); May 29, 1990 (55 Fed. Reg.
11910 (Mar. 30, 1990)); January 22, 1990 (54 Fed. Reg. 48243 (Nov. 22, 1989));
October 4, 1999 (64 Fed. Reg. 42602 (Aug. 5, 1999)); August 2, 1993 (58 Fed.
Reg. 31344 (June 2, 1993)); October 4, 1994 (59 Fed. Reg. 39971 (Aug. 5, 1994)).
12. The Consolidated Rules provide that where the parties agree to
settlement of one or more causes of action before the filing of a complaint, a
proceeding may be simultaneously commenced and concluded by the issuance of a
Consent Agreement and attached Final Order. Respondents stipulate that EPA has
jurisdiction over this matter. 40 C.F.R. ss.22.13(b).
13. Respondents agree not to contest EPA's jurisdiction with respect to
execution of this Consent Agreement, issuance of the attached Final Order, or
the enforcement thereof. 40 C.F.R. ss.22.18.
14. For purposes of this Consent Agreement and the enforcement thereof,
Respondents hereby waive their right to request a judicial or administrative
hearing on any issue of law or fact set forth in this Consent Agreement.
Respondents waive their right to appeal the proposed Final Order accompanying
this Consent Agreement. 40 C.F.R. ss.22.18.
III. PARTIES BOUND
15. This Consent Agreement and the attached Final Order apply to and
are binding upon
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the Complainant and the Respondents. References in this Consent
Agreement to "Respondents" shall be construed consistent with and subject to
this Paragraph 15. Successors and assigns of Respondents are also bound if they
are owned, in whole or part, directly or indirectly, by Respondent Safety-Kleen
Corp. Nothing in the previous sentence shall adversely affect any right of EPA
under applicable law to assert successor or assignee liability against
Respondents' successor or assignee, even if not owned in whole or part, directly
or indirectly, by Respondent Safety-Kleen Corp.
Respondent Safety-Kleen Services, Inc. shall be liable for all
obligations under Paragraphs 82-92, 93 (second sentence), 94-101, 102 (all but
first sentence), 103-105 of this Consent Agreement. Any administrative expense
liability of Safety-Kleen Services, Inc. created by the previous sentence for
closure, post-closure, and corrective action at the Covered Facilities in the
event that Compliant Financial Assurance is not obtained by the Compliant
Financial Assurance Deadline (see Paragraphs 89-91), shall be subordinated to
the extent necessary to permit a pro rata payment of such liabilities with the
allowed claims of general unsecured creditors. Nothing in the previous sentence
or this Paragraph 15 shall adversely affect or subordinate any rights of the
United States and the Participating States against Safety-Kleen Services, Inc.
that would exist in the absence of this Consent Agreement. In addition, the
owner(s) and/or operator(s) Respondent for a Covered Facility and the
Respondent(s) listed on the applicable permit(s) for a Covered
Facility shall be liable for all obligations under this Consent Agreement
relating in any way to such Covered Facility. Any change in ownership or
corporate status of Respondents including, but not limited to, any transfer of
assets or real or personal property shall not alter Respondents'
responsibilities under this Consent Agreement, except that any liability of
Safety-Kleen Services, Inc. for closure, post-closure, or corrective
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action created by this Consent Agreement shall be extinguished upon a transfer
meeting the requirements of Paragraph 94. Nothing in the previous sentence
affects any liability of Safety-Kleen Services, Inc.
that exists in the absence of this Consent Agreement.
Except as provided in this Paragraph 15, this Consent Agreement does
not (i) create joint and several liability among any or all Respondents where
such liability would not exist in the absence of the Consent Agreement; or (ii)
impose liability upon, or create obligations in, any Respondent for, or in
connection with, environmental or other matters at any Covered Facility owned
and/or operated by another Respondent where such liability or obligation would
not exist in the absence of this Consent Agreement. Neither this Consent
Agreement nor Respondents performance thereunder may be used as evidence of
joint and several liability of Respondents other than for the purposes of
enforcing this Consent Agreement and attached Final Order. This Consent
Agreement does not abrogate any joint and several liability of Respondents that
may exist in the absence of the Consent Agreement.
16. Each Party certifies that at least one of its undersigned
representatives is fully authorized by the Party whom he or she represents to
enter into the terms and conditions of the Consent Agreement to, execute it on
behalf of that Party, and to legally bind the Party on whose behalf he or she
signs this Consent Agreement.
17. Respondents shall provide each person performing work on behalf of
Respondents with a copy of all sections of this Consent Agreement relevant to
the work being performed by that person, and shall condition all contracts or
agreements for work under this Consent Agreement on their conformity with the
terms of this Consent Agreement.
18. Respondents' participation is subject to Bankruptcy Court approval.
Respondents agree to exercise their best efforts to obtain prompt Bankruptcy
Court approval of this Consent
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Agreement.
IV. DEFINITIONS
19. Unless otherwise expressly provided herein, terms used in the
Consent Agreement that are defined in RCRA, 42 U.S.C. ss.ss.6902-6991i, or in
regulations promulgated under RCRA, 40 C.F.R. Parts 124, 260-270, shall have
the same meaning assigned to them in RCRA or in such regulations. Furthermore,
unless otherwise expressly provided herein, terms used in the Consent Agreement
that are defined in TSCA, 15 U.S.C. ss.ss.2601-2692, or in regulations
promulgated under TSCA, 40 C.F.R. Part 761, shall have the same meaning assigned
to them in TSCA or in such regulations.
20. Whenever terms listed below are used in this Consent Agreement, the
following definitions shall apply:
a. "Bankruptcy Case" shall mean the voluntary petitions for relief
by Safety-Kleen Corp. and 73 of its U.S. subsidiaries which are being jointly
administered in In re Safety-Kleen Corp., et al., Case No. 00-2303 (PJW)
(Bankr. D. Del.) (Jointly Administered).
b. "Compliance Schedule" shall mean the schedule of work required
under this Consent Agreement to be completed by Respondents as set forth in
Section VII of this Consent Agreement and any modification thereto made in
accordance with this Consent Agreement.
c. "Compliant Financial Assurance" shall mean financial assurance
that meets the standards set out in 40 C.F.R. Part 264 and 265, Subpart H (or
the authorized state requirements), and 40 C.F.R. ss.761.65(g), as applicable.
d. "Compliant Financial Assurance Deadline" shall mean December 15,
2000, except that EPA (after consultation with the affected States) may notify
Respondents in writing that it is extending the Compliant Financial Assurance
Deadline until February 28, 2001.
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e. "Consent Agreement" shall mean this Consent Agreement and Final
Order and all Attachments hereto. In the event of conflict between this Consent
Agreement and any Attachment, this Consent Agreement shall control.
f. "Covered Facilities" shall mean the facilities listed on
Attachments B, C, D and Appendix F-1 (Attachment F) to this Consent Agreement.
g. "Day" shall mean a calendar day unless expressly stated to be a
working day. "Working Day" shall mean a day other than a Saturday, Sunday, or
Federal holiday. In computing any period of time under this Consent Agreement,
where the last day would fall on a Saturday, Sunday, or Federal or applicable
state holiday, the period shall run until the close of business the next working
day.
h. "Debtor in Possession Credit Agreement" shall mean the agreement
among Safety-Kleen Services, Inc., the Several Lenders from Time to Time Parties
hereto, Toronto Dominion, Inc., as General Administrative Agent and Underwriter,
and the CIT Group/Business Credit, Inc., as Collateral Agent and Underwriter,
as submitted and approved by the U.S. Bankruptcy Court on July 19, 2000.
i. "Environmental Cleanup or Response Cost Liabilities" shall mean
any liability for closure, post closure, or corrective action with respect to a
facility under an Environmental Law, for injunctive relief or reimbursement of
costs for the cleanup of substances, wastes, or material, or facilities under an
Environmental Law, or for injunctive relief or damages under an Environmental
Law relating to the release of substances, wastes, or material into the air,
land, soil, surface waste, groundwater, or other medium.
j. "Environmental Compliance Obligation" shall mean any obligation
to comply with an Environmental Law, but shall not include obligations to post
or pay financial assurance
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or pay money judgments under Environmental Laws.
k. "Environmental Law" means any federal, state, or local statute
or regulation regulating pollution, contamination, or the release, management,
treatment, storage, disposal, transportation, or handling of hazardous or toxic
substances, waste or material into the air, land, soil, surface waste,
groundwater, or other medium, including but not limited to statutes or
regulations regulating the cleanup of those substances, wastes, or material.
l. "Interim Compliance Period" or "Interim Compliance Term" shall
mean that period of time from the effective date of this Consent Agreement until
the Compliant Financial Assurance Deadline.
m. "Notify" and "Submit" and other terms signifying an obligation
to transmit or communicate documents and information mean to deliver in person,
deposit in the United States mail or dispatch by express courier not later than
the day that such transmission or communication is required by this Consent
Agreement. Should such a day be a weekend day or a federally or applicable
state recognized holiday, the delivery, deposit, or dispatch shall be made
the next Working Day.
n. "Paragraph" shall mean a portion of this Consent Agreement
identified by an arabic numeral and, in some case, an associated lower case
letter.
o. "Participating State" shall mean a State with an authorized
hazardous waste program that has referred to EPA for further action identified
non-compliances with RCRA Subtitle C, 42 U.S.C. ss.ss.6921-6939e. The
Participating States are listed on Attachment E.
p. "Parallel Action State" shall mean a state with an authorized
hazardous waste program that has notified EPA that it intends to enter into a
parallel agreement with Respondents or take parallel action to EPA with respect
to specified facilities in their States which are
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Covered Facilities under this Consent Agreement. Attachment F is a list of
Parallel Action States. Parallel Action States' rights against Respondents are
governed by any parallel agreements or actions by the Parallel Action States and
therefore Parallel Action States do not have rights against Respondents under
this Consent Agreement. The preceding sentence, however, does not alter or
diminish EPA's rights under this Consent Agreement with respect to facilities in
Parallel Action States or otherwise.
q. "Parties" shall mean the United States Environmental Protection
Agency and Respondents.
r. "Respondents" shall mean Safety-Kleen Corp., Safety-Kleen
Services, Inc., and the other Respondents listed on Attachment A and the term
shall be construed consistent with and subject to Paragraph 15.
s. "Section" shall mean a portion of this Consent Agreement
identified by a roman numeral.
t. "Work" shall mean all activities Respondents are required to
perform under this Consent Agreement.
V. STIPULATED FACTS
21. Respondent Safety-Kleen Corp. is a Delaware corporation that is a
holding company that owns 100% of the common stock of Respondent Safety-Kleen
Services, Inc. Respondent Safety-Kleen Services, Inc. is a Delaware corporation
that directly or indirectly owns the common stock of the remaining Respondents.
22. Respondent Safety-Kleen Services, Inc.'s corporate office is
located at 1301 Gervais Street, Columbia, South Carolina 29201.
23. Certain Respondents own and/or operate facilities that store and
dispose of
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polychlorinated biphenyl (PCB) wastes subject to regulated levels.
24. Certain Respondents are the owners and/or operators of the
commercial storage and/or disposal facilities which handle PCBs, PCB waste, and
PCB Items as specified in Attachment B. Such commercial storage and/or disposal
facilities are "Covered Facilities" for the purposes of this Consent Agreement
and as defined in Section IV.
25. Certain Respondents, as identified in Paragraph 24, received final
approval, while others have interim approval, to operate the Covered Facilities
specified in Attachment B.
26. Certain Respondents are the owners and/or operators of the
treatment, storage or disposal facilities (TSDs) that manage hazardous waste as
specified in Attachment C.
27. Certain Respondents, at all relevant times, were required to
perform corrective action at hazardous waste management facilities (also known
as "TSDs") as specified in Attachment D.
28. Certain Respondents have secured surety bonds issued by Frontier
Insurance Company (Frontier) for the Covered Facilities specified in Attachments
B, C, D and F (Appendix F-1). The surety bonds issued by Frontier were secured
as financial assurance to guarantee performance and/or the payment into a
closure or post-closure trust fund for the closure, post-closure and/or
corrective action at the Covered Facilities.
29. Respondents represent that on March 8, 2000, PriceWaterhouseCoopers
LLP notified Safety-Kleen Corp. by letter that it was withdrawing previously
issued reports on financial statements for Respondents for the years ended in
August 31, 1999, 1998 and 1997 and stated that such reports should no longer be
relied upon or associated with Respondents' financial statements for such years.
30. On March 6, 2000, Respondents announced the initiation of an
internal investigation of certain alleged accounting irregularities that may
have affected the Respondents' previously
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reported financial results. Respondents represent that the board of directors of
Respondent Safety-Kleen Corp. immediately established a special committee,
consisting of four (later five) outside directors, to lead the investigation.
Pending the outcome of the investigation, the board also placed Respondent
Safety-Kleen Corp.'s Chief Executive Officer, Chief Operating Officer, and Chief
Financial Officer on administrative leave. Respondents represent that on May 12,
2000, these senior executives resigned their positions. Respondents represent
that on July 25, 2000, these senior executives were terminated.
31. On June 6, 2000, the U.S. Treasury Department notified the public
through the Federal Register that the Certificate of Authority issued by the
U.S. Treasury Department to Frontier under the United States Code, Title 31,
Sections 9304-9308, to qualify as an acceptable surety on Federal bonds had been
terminated May 31, 2000. 65 Fed. Reg. 35998-35999 (June 6, 2000).
32. Respondents represent that approximately fifty percent (50%) of the
closure, post-closure, and corrective action financial assurance for Safety
Kleen Corp. and its subsidiaries is with Frontier and that all of the financial
assurance provided by Frontier is in surety bonds.
33. Respondents represent that they have retained Marsh & McLennan Cos.
to obtain new financial assurance surety bonds with sureties that qualify as
acceptable by the U.S. Treasury Department.
34. Effective May 31, 2000, Respondents no longer had Compliant
Financial Assurance for the Covered Facilities.
35. On or about May 31, 2000, Respondents contacted EPA regarding their
financial assurance obligations under RCRA and TSCA.
36. On June 9, 2000, Respondents met with EPA regarding their financial
assurance
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obligations under RCRA and TSCA.
37. Respondents represent that they have not yet been able to obtain
Compliant Financial Assurance for the Covered Facilities because of the
withdrawal of their financial statements, among other things. Respondents
represent that they are diligently continuing their efforts to obtain Compliant
Financial Assurance for the Covered Facilities.
38. The Frontier surety bonds for RCRA closure and post-closure and
corrective action activities, as well as the Frontier surety bonds for TSCA
closure activities, are collateralized by an irrevocable stand-by letter of
credit in the amount of $28.5 million from Toronto Dominion Bank to Frontier.
39. On June 9, 2000, Respondents who own and/or operate hazardous waste
management facilities notified EPA and the Participating States that they had
filed a voluntary proceeding under Chapter 11 (Bankruptcy) of the U.S. Code.
40. In a letter dated July 7, 2000, pursuant to its authority under
Sections 3007 and 9005 of RCRA, 42 U.S.C. ss.6927 & 6991d, EPA requested
information from Respondents regarding the financial assurance for closure,
post-closure, and corrective action at TSD facilities owned and/or operated by
Respondents and underground storage tanks owned and/or operated by Respondents.
41. In a letter dated July 12, 2000, EPA requested information from
Respondents regarding the financial assurance for Respondents' commercial
storage facilities that handle PCBs, PCB waste, and PCB Items.
42. On July 26, 2000, Respondents provided responses to EPA's letters
of July 7, 2000 and July 12, 2000.
43. The Participating States listed on Attachment E have referred
violations for Covered
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18
Facilities in their states to EPA for resolution.
44. The Parallel Action States listed on Attachment F have notified EPA
that they intend to enter into parallel agreements with Respondents or take
parallel action to EPA with respect to specified facilities in their States
which are Covered Facilities under this Consent Agreement.
45. EPA has provided notice of commencement of this action to the
Participating States and Parallel Action States pursuant to Section 3008(a)(2)
of RCRA, 42 U.S.C. ss.6928(a)(2).
VI. CONCLUSIONS OF LAW
46. Certain Respondents are "persons" within the meaning of Section
1004(15) of RCRA, 42 U.S.C. ss.6903(15) and 40 C.F.R. ss.ss.260.10 or 761.3.
47. Pursuant to Section 6 of TSCA, 15 U.S.C. ss.2605, EPA promulgated
rules pertaining to the manufacturing, processing, distribution in commerce or
use (or any combination of such activities) of any PCBs.
48. Certain Respondents engage in "storage for disposal" or "disposal"
of "PCBs" or "PCB Items" as those terms are defined in 40 C.F.R. ss.761.3 at
facilities identified in Attachment B.
49. Certain Respondents store and dispose of "PCB waste" as that term
is defined in 40 C.F.R. ss.761.3 at facilities identified in Attachment B.
50. Certain Respondents are "commercial storers of PCB waste" as that
term is defined in 40 C.F.R. ss.761.3 at facilities identified in Attachment B.
51. Pursuant to 40 C.F.R. ss.761.65, EPA regulates the storage for
disposal of PCBs at regulated concentrations.
52. Pursuant to 40 C.F.R. ss.761.65(d), all commercial storers of PCB
waste shall have interim approval or final approval to operate commercial
facilities for the storage of PCB waste.
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19
53. Pursuant to 40 C.F.R. ss.761.65(g), a commercial storer of PCB
waste shall establish financial assurance for the closure of each PCB storage
facility that he owns or operates. In establishing financial assurance for
closure, the commercial storer of the PCB waste may choose from several
financial assurance mechanisms or any combination of mechanisms including a
"surety bond guaranteeing performance of closure" as specified in 40 C.F.R.
ss.264.143(c).
54. Pursuant to 40 C.F.R. ss.264.143(c), an owner and/or operator may
satisfy the financial assurance requirements by obtaining a surety bond which
conforms to the requirements specified in the section and submits the bond to
the Regional Administrator. The surety company issuing the bond must, at a
minimum, be among those listed as acceptable sureties on federal bonds in
Circular 570 of the U.S. Department of the Treasury.
55. Certain Respondents as commercial storers of PCB waste (identified
in Attachment B) no longer had Compliant Financial Assurance as of May 31, 2000
(Stipulated Facts, Paragraph 34).
56. Certain Respondents as commercial storers of PCB waste (identified
in Attachment B) do not have Compliant Financial Assurance as required by 40
C.F.R. ss.761.65(g) (which cross-references 40 C.F.R. ss.264.143(c))
(Stipulated Facts, Paragraph 37).
57. Certain Respondents, who are commercial storers of PCB waste, have
failed to have compliant financial assurance for eighteen (18) facilities
(identified in Attachment B) as is required by 40 C.F.R. ss.761.65(g), which
constitutes eighteen (18) separate continuous violations of Section 15 of TSCA,
15 U.S.C. ss.2614, and therefore subject certain Respondents to the penalties
specified in Section 16 of TSCA, 15 U.S.C. ss.2615.
58. Certain Respondents "treat" or "store" "hazardous waste" as those
terms are defined in Section 1004(5), (33) and (34) of RCRA, 42 U.S.C. ss.
6903(5), (33) & (34), and 40 C.F.R. ss.ss.
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20
20260.10 and 270.2 at facilities identified in Attachment C. See also APC&EC
Regulation 23 ss.ss.260.10 & 270.2 (Arkansas), GRHWM Section 391-3-11 (Georgia),
35 Ill. Adm. Code 720.110 (Illinois), 310 CMR 30.010 (Massachusetts), Minn. R.
7045.0020 (Minnesota), NAC ss.ss.444.850, 444.8546 & 444.8632 (Nevada),
ARSD ss.74:28:21:01 (South Dakota), Section 1200-1-11-.01(2) (Tenn.), VHWMR
Section 7-103 (Vermont), Wis. Adm. Code Section NR 600.03 (Wisconsin).
59. Certain Respondents are "owners" or "operators" of facilities that
engage in "hazardous waste management" as those terms are defined in Section
1004(7) of RCRA, 42 U.S.C. ss.6903(7), and 40 C.F.R. ss.ss.260.10 and 270.2 at
facilities identified in Attachment C. See also APC&EC Regulation No. 23
ss.ss.260.10 & 270.2 (Arkansas), GRHWM Section 391-3-11-.02 (Georgia), 35 Ill.
Adm. Code 720.110 (Illinois), 310 CMR 30.010 (Massachusetts), Minn. R. 7045.0020
(Minnesota), NAC ss.ss.444.850 & 444.8632 (Nevada), ARSD ss.74:28:21:01 (South
Dakota), VHWMR Section 7-103 (Vermont), Section 1200-1-11-.01(2) (Tennessee),
Wis. Adm. Code Section NR 600.03 (Wisconsin).
60. Certain Respondents have received a "permit" to own and/or operate
the "hazardous waste management facilities" (as identified in Attachment C), as
those terms are defined in 40 C.F.R. ss.ss.260.10 and 270.2, that treat, store,
or dispose of hazardous waste (also known as treatment, storage and disposal
facilities (TSDs)). See also APC&EC Regulation No. 23 ss.ss.260.10 & 270.2
(Arkansas), GRHWM Section 391-3-11-.02 (Georgia), 35 Ill. Adm. Code 720.110
(Illinois), 310 CMR 30.010 (Massachusetts), Minn. R. 7001.0520 (Minnesota), NAC
ss.ss.444.850 & 444.8632 (Nevada), ARSD ss.74:28:26:01 (South Dakota), Section
1200-1-11-.01(2) (Tennessee), VHWMR Section 7-103 (Vermont), Wis. State Stat.
Section 291.25 (Wisconsin).
61. Pursuant to Sections 2002 and 3004 of RCRA, 42 U.S.C. ss.ss.6912 &
6924, EPA promulgated rules pertaining to owners and/or operators of treatment,
storage and disposal
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21
facilities as set forth at 40 C.F.R. Parts 264 and 265.
62. Certain Respondents have received "interim status" as defined in
Section 3005(e) of RCRA, 42 U.S.C. ss.6925(e), and 40 C.F.R. Part 270, Subpart
G, to own and/or operate a hazardous waste management facility that treat,
stores or disposes of hazardous waste. See also Minn. R. 7045.0552 & 7045.0554.
63. Pursuant to Section 3004(a) and (t) of RCRA, 42 U.S.C. ss.6924(a) &
(t), EPA promulgated rules pertaining to financial responsibility and these
requirements are set forth in 40 C.F.R. Parts 264 and 265, Subpart H. See also
APC&EC Regulation No. 23 Parts 264-265, Subparts H (Arkansas), GRHWM Section
391-3-11-.05(1) (Georgia), 310 CMR 30.900 (Massachusetts), Minn. R.
7045.0498-7045.0524 (Minnesota), NAC ss.444.8632 (Nevada), ARSD ss.74:28:25:01
(South Dakota), VHWMR Section 7-504(e)(1) (Vermont), Wis. Adm. Code Chapter NR
685 (Wisconsin).
64. Pursuant to Section 3004(u) of RCRA, 42 U.S.C. ss.6924(u), permits
issued under Section 3005 of RCRA, 42 U.S.C. ss.6925, shall contain schedules
for corrective action and assurances of financial responsibility for completing
such corrective action.
65. Pursuant to Section 3005 and 3008(h) of RCRA, 42 U.S.C. ss.6925 &
6928(h), the Administrator may issue an order requiring corrective action or
such other response as he or she deems necessary to protect human health and the
environment, which includes the requirement for financial assurance for such
corrective action.
66. Pursuant to 40 C.F.R. ss.264.140(a), the financial responsibility
requirements apply to all hazardous waste facilities except if otherwise
provided within the section. See also APC&EC Regulation No. 23 ss.264.140(a)
(Arkansas), GRHWM Section 391-3-11-.05(1) (Georgia), 310 CMR 30.901
(Massachusetts), Minn. R. 7045.0498 (Minnesota), NAC ss.
<PAGE>
22
444.8632 (Nevada), ARSD ss.74:28:25:01 (South Dakota), VHWMR Section 7-504(e)(1)
(Vermont), Wis. Adm. Code NR 685.07 (Wisconsin).
67. Pursuant to 40 C.F.R. ss.264.143(c), an owner or operator of
certain types of hazardous waste management facilities may satisfy the financial
assurance requirements for closure activities by obtaining a surety bond which
conforms to the requirements specified in the section and submitting the bond to
the Regional Administrator. The surety company issuing the bond must, at a
minimum, be among those listed as acceptable sureties on federal bonds in
Circular 570 of the U.S. Department of the Treasury. See also APC&EC Regulation
No. 23 ss.264.143(c) (Arkansas), GRHWM Section 391-3-11-.05(1) (Georgia), 310
CMR 30.904(3)(a) (Massachusetts), Minn. R. 7045.0504, Subp. 3 and 4 (Minnesota),
NAC ss.444.8632 (Nevada), ARSD ss.74:28:25:01 (South Dakota), VHWMR Section
7-504(e)(1) (Vermont), Wis. Adm. Code NR 685.07(5)(a)(2) (Wisconsin).
68. Pursuant to 40 C.F.R. ss.264.145(c), an owner or operator of
certain types of hazardous waste management facilities may satisfy the financial
assurance requirements for post-closure activities by obtaining a surety bond
which conforms to the requirements specified in the section and submitting the
bond to the Regional Administrator. The surety company issuing the bond must, at
a minimum, be among those listed as acceptable sureties on federal bonds in
Circular 570 of the U.S. Department of the Treasury. See also APC&EC Regulation
23 ss.264.145(c) (Arkansas).
69. Pursuant to 40 C.F.R. ss.264.148(b), an owner or operator of a
hazardous waste management facility who fulfills the requirements of financial
assurance by obtaining a trust fund, surety bond, letter of credit, or insurance
policy will be deemed to be without the required financial assurance or
liability coverage in the event of bankruptcy of the trustee or the issuing
<PAGE>
23
institution, or a revocation of the authority of the trustee institution to act
as trustee or of the institution issuing the surety bond, letter of credit, or
insurance policy to issue such instruments. The owner or operator must establish
other financial assurance or liability coverage within sixty days after such
event. See also APC&EC Regulation No. 23 ss.264.148(b) (Arkansas), GRHWM Section
391-3-11-.05 (Georgia), Minn. R. 7045.0522, Subp. 2 (Minnesota), NAC ss.444.8632
(Nevada), ARSD ss.74:28:25:01 (South Dakota), VHWMR Section 7-504(e)(1)
(Vermont).
70. Pursuant to Wis. Adm. Code NR 685.07(10)(b), an owner or operator
of a hazardous waste management facility in Wisconsin who fulfills the
requirements of financial assurance by obtaining a trust fund, surety bond,
letter of credit, or insurance policy will be deemed to be without the required
financial assurance or liability coverage in the event of bankruptcy of the
trustee or the issuing institution, or a revocation of the authority of the
trustee institution to act as trustee or of the institution issuing the surety
bond, letter of credit, or insurance policy to issue such instruments. The owner
or operator must establish other financial assurance or liability coverage
within thirty days after such event.
71. Certain Respondents as owners and/or operators of hazardous waste
management facilities (identified in Attachment C) no longer had compliant
financial assurance as of May 31, 2000 (Stipulated Facts, Paragraph 34) for
closure activities as is required by 40 C.F.R. ss.264.143(c). See also APC&EC
Regulation No. 23 ss.264.143(c) (Arkansas), GRHWM Section 391-3-11-.05
(Georgia), 310 CMR 30.904(3) (Massachusetts), Minn. R. 7045.0504, Subp. 3 & 4
(Minnesota), NAC ss.444.8632 (Nevada), ARSD ss.74:28:25:01 (South Dakota), VHWMR
Section 7-504(e)(1) (Vermont), Wis. Adm. Code NR 685.07(5)(a)(2) (Wisconsin).
72. Certain Respondents as owners and/or operators of hazardous waste
management
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24
facilities (identified in Attachment C) did not obtain by July 30,
2000 compliant financial assurance for closure activities (Stipulated Facts,
Paragraph 37) as is required by 40 C.F.R. ss. 264.148(b). See also APC&EC
Regulation ss.264.148(b) (Arkansas), GRHWM Section 391-3-11-.05 (Georgia), Minn.
R. 7045.0522, Subp. 2 (Minnesota), NAC ss.444.8632 (Nevada), ARSD ss.74:28:25:01
(South Dakota), VHWMR Section 7-504(e)(1) (Vermont).
73. Certain Respondents as owners and/or operators of hazardous waste
management facilities in Wisconsin (identified in Attachment C) did not obtain
by June 30, 2000 compliant financial assurance for closure activities
(Stipulated Facts, Paragraph 37) as is required by Wis. Adm. Code Section NR
685.07(b) (Wisconsin).
74. Certain Respondents as owners and/or operators of the hazardous
waste management facilities failed to have financial assurance for closure
activities at twenty-three (23) facilities (identified in Attachment C) as
required by 40 C.F.R. ss.264.148(b) (see also APC&EC Regulation No.
23 ss.ss.264.148(b) (Arkansas), GRHWM Section 391-3-11-.05 (Georgia), Minn. R.
7045.0522, Subp. 2 (Minnesota), NAC ss.444.8632 (Nevada), ARSD ss.74:28:25:01
(South Dakota), VHWMR Section 7-504(e)(1) (Vermont),Wis. Adm. Code Section NR
685.07(b) (Wisconsin)) and 310 CMR 30.904(3)(a) (Massachusetts), which
constitutes twenty-three (23) separate continuous violations of Section 3008(a)
of RCRA, 42 U.S.C. ss.6928(a), and therefore subjects certain Respondents to the
penalties specified in Section 3008(g) of RCRA, 42 U.S.C. ss.6928(g).
75. Certain Respondents as owners and/or operators of hazardous waste
management facilities (identified in Attachment C) no longer had compliant
financial assurance as of May 31, 2000 (Stipulated Facts, Paragraph 34) for
post-closure activities as is required by 40 C.F.R. 264.145(c). See also APC&EC
Regulation No. 23 ss.264.145(c) (Arkansas).
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25
76. Certain Respondents as owners and/or operators of hazardous waste
management facilities (identified in Attachment C), did not obtain by July 30,
2000 compliant financial assurance for post-closure activities (Stipulated
Facts, Paragraph 37) as is required by 40 C.F.R. ss.264.148(b). See also APC&EC
Regulation No. 23 ss.264.148(b) (Arkansas).
77. Certain Respondents as owners and/or operators of the hazardous
waste management facilities failed to have financial assurance for post-closure
activities for three (3) facilities (identified in Attachment C) as is required
by 40 C.F.R. ss.264.148(b) (see also, APC&EC Regulation No. 23 ss.264.148(b)
(Arkansas)), which constitute three (3) separate continuous violations of
Section 3008(a) of RCRA, 42 U.S.C. ss.6928(a), and therefore subject certain
Respondents to the penalties specified in Section 3008(g) of RCRA, 42 U.S.C.
ss.6928(g).
78. Certain Respondents are owners and/or operators of hazardous waste
management facilities that have RCRA permits covering corrective action and
require financial assurance for such corrective action as specified in
Attachment D.
79. Certain Respondents as owners and/or operators of the hazardous
waste management facilities failed to have compliant financial assurance for
corrective action at four (4) facilities (identified in Attachment D), as is
required by the conditions of the RCRA permits (Arkansas RCRA Permit 16-HR-1
[Permit Conditions: Module II.P and Module II.Q.]; Georgia RCRA Permit
EPD-HW-078(s) [Permit Conditions I.F.3. & V.1.I.]; EPD-HW-075(s) [Permit
Conditions I.F.3. & V.I.]; Illinois RCRA Permit (Log No. B-13)[Permit Condition
IV.F.2]).
80. Certain Respondents failed to comply with the corrective action
conditions in four (4) RCRA permits which constitutes four (4) separate
continuous violations of Section 3008(a) of RCRA, 42 U.S.C. ss.6928(a), and
therefore subjecting certain Respondents to the penalties specified in Section
3008(g) of RCRA, 42 U.S.C. ss.6928(g).
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26
81. Certain Respondents are owners and/or operators of hazardous waste
management facilities subject to RCRA 3008(h) Orders, 42 U.S.C. ss.6928(h),
covering corrective action and having financial assurance for such corrective
action (see Attachment D).
VII. TERMS OF AGREEMENT
82. Respondents shall exercise their best efforts to obtain Compliant
Financial Assurance as expeditiously as possible, on any available terms, and no
later than the Compliant Financial Assurance Deadline. In the event that the
Respondents are unable to obtain Complaint Financial Assurance for any of the
Covered Facilities by the Compliant Financial Assurance Deadline, the
Respondents agree that they shall comply with the requirements for closure,
post-closure and corrective action for such Covered Facilities as set forth in
Paragraphs 89-91 of this Consent Agreement.
83. While the Bankruptcy Case is pending or open, Respondents also agree
to seek proposals for replacement of insurance policies providing financial
assurance for any of their facilities (effective upon the expiration of such
policies), and to determine in good faith whether to accept any such proposals,
if such policies do not meet one of the following requirements: a rating of Aaa,
Aa or A by Moody's, or a rating of AAA, AA or A by Standard & Poor's, or a
rating of A++, A+, A, or A- from A.M. Best Company. Respondents have stated
their intention to seek such proposals until the expiration date of such
insurance policies. Nothing in this Paragraph excuses Respondents from having to
comply with any applicable laws or regulations relating to the use of such
insurance policies as financial assurance.
84. Until such time as Respondents have obtained Compliant Financial
Assurance, Respondents agree that they shall not seek to withdraw the
irrevocable stand-by letter of credit in the amount of $28.5 million from
Toronto Dominion Bank to Frontier.
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27
85. EPA recognizes that Respondents may not be able to obtain Compliant
Financial Assurance without the consent or cooperation of third parties,
including Respondents' lenders and the Bankruptcy Court. Respondents will not be
deemed to have failed to use their best efforts to obtain Complaint Financial
Assurance if the consent or cooperation of third parties is required to obtain
Compliant Financial Assurance and cannot be obtained. Respondents shall exercise
their best efforts to obtain such consents and cooperation.
86. Respondents shall throughout the Interim Compliance Period continue
to exercise best efforts to obtain Compliant Financial Assurance.
87. The Respondents shall comply with the provisions and terms
contained in the Compliance Schedule set forth below. Failure to perform any of
the tasks specified below shall result in stipulated penalties and may be cause
for implementation of closure, post-closure or corrective action activities as
specified in Paragraphs 89-91 of this Consent Agreement. The Compliance Schedule
requires Respondents to perform the following work tasks:
a. On or before August 5, 2000, Respondents shall have contracted
with a certified public accountant or certified public accounting firm to audit
Respondents' financial records for the purpose of restating Respondents'
financial statements for the years 1999, 1998 and 1997. Respondents shall
provide EPA and the Participating States notice of the independent certified
public accountant or certified public accounting firm contracted to perform the
financial audit for the years 1999, 1998 and 1997, and perform an audit of
Respondents' financial statements for the year 2000.
b. Consistent with section 9(p) of the Debtor in Possession
Credit Agreement, and as it may be amended, Respondents shall submit to EPA and
Participating States the draft business plan, business plan, and Bankruptcy
Court plan of reorganization at the same time these
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28
documents are provided to their Underwriters; that is, the draft business plan
by September 30, 2000, the business plan by October 31, 2000, and the Bankruptcy
Court plan of reorganization by December 31, 2000, or on such dates as changed
by any amendment to the Debtor in Possession Credit Agreement. The business plan
shall include, but not necessarily be limited to, an assessment of: (1)
Respondents' current financial condition; (2) Respondents' intermediate and
long-term operating plans; (3) modifications made to Respondents' data
management and information systems, such that Respondents may collect its
current and delinquent accounts receivables; (4) Respondents' intermediate and
long-term product lines; (5) Respondents' anticipated transfer or divestiture of
key assets, including but not limited to equipment, Covered Facilities, and real
or personal properties; and (6) Respondents' approach for streamlining expenses,
maintaining customer relationships, and realizing supply chain efficiencies.
c. On or before November 30, 2000, Respondents shall submit to
EPA and Participating States Respondents' revised audited financial statements
for fiscal years 1999, 1998, and 1997. These statements should be complete with
all accompanying reports and include an accountant's opinion signed by an
independent certified public accountant describing the scope of the examination
of Respondents' books and financial records.
d. On or before January 5, 2001, Respondents shall submit to EPA
and Participating States Respondents' audited financial statements for fiscal
year 2000. These statements should be complete with all accompanying reports and
include an accountant's opinion signed by an independent certified public
accountant describing the scope of the examination of Respondents' books and
financial records.
e. Respondents shall throughout the Interim Compliance Period
continuously exercise their best efforts to obtain Compliant Financial Assurance
in as expeditious manner as
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29
possible.
f. Respondent Safety-Kleen Systems, Inc., shall obtain Compliant
Financial Assurance for the hazardous waste management facility (a Covered
Facility) in Barre, Vermont (VTD000791699) for corrective action. This Compliant
Financial Assurance shall be obtained by the Compliant Financial Assurance
Deadline.
g. If during the Interim Compliance Period Respondents determine
that they need to secure Compliant Financial Assurance for a hazardous waste
management facility (or a commercial storage and/or disposal facility that
handles PCBs, PCB waste or PCB Items), Respondents shall notify EPA within five
(5) calendar days of such a determination. Nothing in this subparagraph shall be
construed as altering in any way Respondents' obligations under Environmental
Laws or the other requirements of this Consent Agreement.
h. If at any time during the Interim Compliance Period,
Respondents determine that they will not be able to secure Compliant Financial
Assurance by the Compliant Financial Assurance Deadline, they shall notify EPA
and the Participating States within twenty-four (24) hours of such a
determination. Notification shall be in writing and sent to the addressees in
Attachment G. In the event that Respondents are unable to obtain Compliant
Financial Assurance by the Compliant Financial Assurance Deadline, Respondents
agree to comply with the requirements for closure and post-closure and
corrective action as set forth in Paragraphs 89-91 of this Consent Agreement.
88. Until Respondents' procurement of Compliant Financial Assurance,
Respondents shall comply with the provisions and terms contained in the
Reporting and Monitoring Schedule set forth below. Failure to perform any of the
tasks specified below shall result in stipulated penalties and may be cause for
implementation of closure, post-closure or corrective action
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30
activities as specified in Paragraphs 89-91 of this Consent Agreement.
All data, factual information, and documents obtained by EPA from or on
behalf of the Respondents shall be subject to public inspection unless
identified as confidential by the Respondents in conformance with the procedures
set forth in Attachment H, which Respondents will seek to include in the
Bankruptcy Court Order approving Respondents' participation in this Consent
Agreement. If no claim of confidentiality accompanies the documents or
information when they are submitted to EPA, the public may be given access to
such documents or information without further notice to Respondents.
a. Consistent with sections 7.2 and 7.3 of the Debtor in
Possession Credit Agreement, Respondents shall submit to EPA and any requesting
Participating States each week copies of its Form of Borrowing Base Certificate
and Cash Flow Forecast. At a minimum, these weekly reports shall include: (1)
discussion of Respondents' borrowing base and excess availability; (2) detailed
calculations of Respondents' collections from eligible account debtors; (3)
detailed calculations of Respondents' weekly sales to eligible account debtors;
and (4) interim period cash flow budgets for Respondents' consolidated U.S.
operations. Respondents' cash flow forecasts shall include a detailed accounting
of actual and projected: (1) operating receipts; (2) operating disbursements;
(3) subtotal operating cash flow; and (4) subtotal financing cash flow,
including funds drawn from Respondents' Debtor-in-Possession (DIP) financing,
DIP repayments, and DIP availability. Respondents shall provide these
documents to EPA and requesting Participating States when it provides such
documents to the Steering Committee for the Debtors' Prepetition Senior
Secured Lenders.
b. Respondents shall provide written reports commencing ten (10)
working days after the Parties have executed this Consent Agreement and on the
tenth (10) working day of
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31
every month thereafter, identifying for the previous month the quantity of
hazardous waste and PCBs (and PCB Items) received for each Covered Facility
listed in Attachments B, C, and D. In addition, Respondents shall provide EPA
and requesting Participating States with the quantity of hazardous waste and
PCBs (including PCB Items) managed at Covered Facilities listed in Attachments
B, C, and D.
c. Respondents shall provide EPA and requesting Participating
States a detailed written report every week on the status of its efforts to
obtain Compliant Financial Assurance. This report shall include, but not be
limited to: (1) a summary of discussions and proposals (copies of which shall be
provided to EPA and requesting Participating States) for financial assurance;
(2) a summary of discussions and correspondence (copies of which shall be
provided to EPA and requesting Participating States) seeking the cooperation of
third parties with respect to obtaining Compliant Financial Assurance; (3) a
summary of discussions or correspondence (copies of which shall be provided to
EPA and requesting Participating States) seeking the cooperation of the DIP
Lenders with respect to using DIP financing to obtain Compliant Financial
Assurance; and (4) detailed accounting of all covenants and collateral assets
Respondents have been requested to pledge in order to obtain third-party
Compliant Financial Assurance.
d. Respondents shall participate in weekly conference calls with
EPA to: (1) discuss the financial reports specified under Section VII, Terms of
Agreement, Paragraph 88(a), (c); (2) provide supplemental information about its
financial condition, as appropriate; and (3) update EPA with respect to their
efforts to obtain Compliant Financial Assurance as specified under Paragraph
88(c).
e. Respondents shall provide EPA and any requesting Participating
State with
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32
copies of documents setting forth proposed reorganization plan
structures when it provides such documents to the Steering Committee for the
Debtors' Prepetition Senior Secured Lenders.
f. Respondents shall notify EPA and the Participating States when
they learn of any noncompliance under RCRA and TSCA for the Covered Facilities
during the Interim Compliance Period, which noncompliance would be reportable
under applicable permits or law. Nothing in this subparagraph shall be construed
as altering in any way Respondents' obligations under Environmental Laws.
89. If Respondents are unable to obtain Compliant Financial Assurance for
any Covered Facility by the Compliant Financial Assurance Deadline, Respondents
shall cease taking hazardous waste at that Covered Facility. Respondents shall
then in accordance with their permits and 40 C.F.R. Part 264, Subpart G, 40
C.F.R. Part 265, Subpart G, or the authorized state requirements initiate
closure and/or post-closure. EPA and the Participating States reserve the right
to alter the requirements for and/or modify the permit requirements for closure
and post-closure in accordance with 40 C.F.R. Part 264, Subpart G, 40 C.F.R.
Part 265, Subpart G, and 40 C.F.R. ss.ss.271.32 and 271.41, or the authorized
state requirements. EPA, in consultation with the affected States, may determine
in its discretion and in accordance with applicable law to modify the
requirements of this Paragraph. EPA agrees that if the Bankruptcy Case is still
open or pending then any action that it brings against Respondents under this
Consent Agreement to enforce the requirement of this Paragraph that Respondents
initiate closure and/or post-closure shall be brought in the Bankruptcy Case.
However, EPA reserves whatever rights it has to enforce any Environmental Law,
including for closure and/or post-closure, against Respondents in any court that
would have jurisdiction to enforce such Environmental Law in the absence of this
Consent Agreement.
<PAGE>
33
90. If Respondents are unable to obtain Compliant Financial Assurance for
any Covered Facility by the Compliant Financial Assurance Deadline, Respondents
shall cease taking PCBs, PCB waste and PCB Items at that Covered Facility.
Respondents shall then in accordance with their approvals and 40 C.F.R.
ss.761.65(e) initiate closure at that Covered Facility. EPA reserves the right
to modify or alter the requirements for closure in accordance with 40 C.F.R.
ss.761.65(e). EPA may determine in its sole discretion and in accordance with
applicable law to modify the requirements of this Paragraph. EPA agrees that if
the Bankruptcy Case is still open or pending then any action that it brings
against Respondents under this Consent Agreement to enforce the requirement of
this Paragraph that Respondents initiate closure shall be brought in the
Bankruptcy Case. However, EPA reserves whatever rights it has to enforce any
Environmental Law, including for closure, against Respondents in any court that
would have jurisdiction to enforce such Environmental Law in the absence of this
Consent Agreement.
91. If Respondents are unable to obtain Compliant Financial Assurance for
any Covered Facility by the Compliant Financial Assurance Deadline, Respondents
shall implement any corrective action required at the Covered Facility in
accordance with applicable law and permit requirements. Prior to any expiration
of the Compliant Financial Assurance Deadline without having obtained Compliant
Financial Assurance, Respondents shall meet with EPA, and the Participating
State(s) if appropriate, to discuss the requirements of this paragraph; however,
the pendency of these discussions shall not excuse or delay the timely
performance of required corrective action with applicable law and permits. EPA,
in consultation with the affected States, may determine in its discretion and in
accordance with applicable law to modify the requirements of this Paragraph. EPA
agrees that if the Bankruptcy Case is still open or pending then any action that
it brings against Respondents under this Consent Agreement to enforce the
<PAGE>
34
requirement of this Paragraph that Respondents initiate corrective action shall
be brought in the Bankruptcy Case. However, EPA reserves whatever rights it has
to enforce any Environmental Law, including for corrective action, against
Respondents in any court that would have jurisdiction to enforce such
Environmental Law in the absence of this Consent Agreement.
92. If, prior to obtaining Compliant Financial Assurance, Respondents
enter into an agreement with any of the fifty States providing for a letter of
credit or other security interest to supplement or replace financial assurance
for any facility owned or operated by Respondents where Respondents' financial
assurance is in the form of a Frontier surety bond, Respondents shall provide
EPA and the Participating States the same pro rata amount of supplemental
security interest protection based on the respective amounts of Frontier bonds.
93. Respondents shall comply with all permit requirements for Covered
Facilities, including but not limited to, limitations on the maximum amount of
waste allowed at a Covered Facility. Until such time as Respondents obtain
Compliance Financial Assurance, Respondents shall also ensure that the amount
of waste stored or awaiting disposal or treatment at a Covered Facility does
not exceed the normal historical amounts of such hazardous waste
during the year prior to Respondents' filing for bankruptcy.
94. Respondents shall require that any agreement for the sale, lease or
other transfer of a Covered Facility provides that nothing in the agreement or
the Court order approving the agreement shall be construed to release or relieve
any entity of any liability to a governmental entity under any police and
regulatory statute as the owner or operator of property that that entity owns or
operates after the date of transfer. Respondents shall comply with 40 C.F.R.
ss.270.40 (transfer of permits), or the applicable authorized state
requirements, to the extent that it is not altered by the following: that until
such time as Respondents obtain Compliant Financial
<PAGE>
35
Assurance, Respondents shall not enter into any agreement for the transfer
of a Covered Facility unless the new owner and/or operator of the Covered
Facility, prior to the transfer of ownership or operational controls, has
received approval in writing from EPA and any applicable Participating State
that the new owner and/or operator is in compliance with the financial
responsibility and assurance requirements of 40 C.F.R. Part 264 and 265, Subpart
H or the applicable authorized state requirement. Nothing in this Paragraph
relieves Respondents of their obligation to comply with applicable Environmental
Laws.
95. If during the Interim Compliance Period, Respondents determine that
they need to shut down the operations of one or more of the Covered Facilities
Respondents shall, in addition to complying with other applicable legal
requirements, notify EPA and the Participating States at least ten days prior to
the cessation of operations at the Covered Facility(ies) so that EPA and
the Participating States can provide comments regarding the timing and
prioritization of operational shutdown of the Covered Facilities in accordance
with applicable law. Incorporation of these comments into the Respondents' final
plan for implementing the shutdown of operations at the one or more Covered
Facilities shall be subject to the consent of Respondents, which consent shall
not be unreasonably withheld. Nothing in this Paragraph relieves Respondents of
their obligation to comply with applicable law.
96. If during the Interim Compliance Period, EPA or a Participating
State determines that one of the Covered Facilities is in significant
non-compliance, EPA's Office Director, Office of Regulatory Enforcement, in
consultation with the affected Participating State, may notify Respondents that
this Consent Agreement no longer includes such Covered Facility within the terms
of the Consent Agreement.
97. Respondents shall comply with the provisions and terms of the
"Environmental
<PAGE>
36
Management Systems Analysis" set forth in Attachment I, which is
incorporated into this Consent Agreement. This Environmental Management Systems
Analysis requires that an independent consulting auditor complete a
comprehensive environmental analysis of Respondents' environmental management
systems program for compliance with environmental laws and regulations. The
purpose of the Environmental Management Systems Analysis is to evaluate
Respondents' current environmental management practices and determine if
Respondents' current corporate-wide environmental management system adequately
promotes compliance with environmental requirements. This Environmental
Management Systems Analysis will be commenced by September 15, 2000 and shall be
completed by May 15, 2001.
98. Respondents shall comply with the terms and provisions of the
"Environmental Compliance Audits" set forth in Attachment J, which is
incorporated by reference into this Consent Agreement. Respondents shall hire an
independent auditor to conduct a comprehensive environmental audit in
conformance with all applicable laws and prepare an audit report for each of the
facilities listed in Attachment J (Audit Facilities). The Environmental
Compliance Audits will be commenced on September 15, 2000 and completed by May
15, 2001.
99. Respondents shall continue to pay the premiums and take all steps
within their control to keep current their surety bonds with Frontier Insurance
Company for the Covered Facilities until such time as Respondents are able to
provide Compliant Financial Assurance for those Covered Facilities.
100. Except as stated in this Paragraph 100, all claims or rights to
injunctive relief of EPA and any Participating States against any Respondent for
Environmental Cleanup or Response Cost Liabilities shall not be discharged or
impaired by any plan of reorganization in the Bankruptcy Case, shall survive the
Bankruptcy Case as if the Bankruptcy Case had not been
<PAGE>
37
commenced, and may then be determined in the manner and by the
administrative or judicial tribunals in which such claims or rights to
injunctive relief would have been resolved or adjudicated if the Bankruptcy Case
had not been commenced. This Paragraph 100 applies to all Environmental Cleanup
or Response Cost Liabilities of Respondents to EPA and any Participating States
and is not limited to liabilities related to Covered Facilities or facilities
located in Participating States or Parallel Action States. Respondents agree
that any bar date for filing claims in the Bankruptcy Case shall not apply to
claims covered by this Paragraph 100.
This Paragraph 100 does not apply to (i) any Environmental Cleanup or
Response Cost Liability of any Respondent for a money judgment that EPA or a
Participating State has obtained prior to confirmation of a reorganization plan
in the Bankruptcy Case; or (ii) any Environmental Cleanup or Response Cost
Liability that EPA or a Participating State seeks by filing an action or claim
in a court or administrative forum prior to confirmation of a reorganization
plan in the Bankruptcy Case, if such asserted Liability would prevent a
Respondent from reorganizing. Respondents agree that any general bar date for
filing claims in the Bankruptcy Case shall not apply to claims within subparts
(i) and (ii) of the foregoing sentence. If Respondents wish to assert that a
claim falls within subpart (i) or (ii), Respondents must establish a special bar
date for claims within subparts (i) and (ii) and send out a special bar date
notice that specifically identifies all such claims by case name and docket
number that it believes fall within subparts (i) and (ii). Nothing in the
foregoing abrogates or diminishes any rights that EPA and the Participating
States have in the absence of this Consent Agreement. EPA and the Participating
States may contest Respondents' contention that a claim falls within subparts
(i) and (ii) and the Bankruptcy Court shall have exclusive jurisdiction over the
determination of whether or not the claims fall within subparts (i) or (ii) for
purposes of determining the applicability of this
<PAGE>
38
Paragraph 100.
In addition, because the State of South Carolina has indicated it will
not be a Participating State or Parallel Action State for facilities owned
and/or operated by Safety-Kleen (Pinewood), Inc., this Paragraph 100 does not
apply to Environmental Cleanup or Response Cost Liabilities of Respondents to
the State of South Carolina for facilities owned and/or operated by Safety-
Kleen (Pinewood), Inc. This Paragraph 100 does apply to Environmental Cleanup or
Response Cost Liabilities of Respondents to EPA for facilities owned and/or
operated by Safety-Kleen (Pinewood), Inc. Nothing in this Paragraph 100
abrogates any rights by and between the State of South Carolina and Respondents
that exist in the absence of this Consent Agreement or expresses in any way
EPA's views on Adversary Proceeding No. 00-698 between South Carolina and
Respondents and this Consent Agreement may not be used as evidence of EPA's
views in Adversary Proceeding No. 00-698.
101. In the event that Respondents are unable to obtain Compliant
Financial Assurance for any of the Covered Facilities by the Compliant Financial
Assurance Deadline, the Respondents agree that they shall comply with the
requirements for closure, post-closure, and corrective action set forth in
Paragraphs 89-91. Under no circumstances while the Bankruptcy Case is pending or
open, shall any Respondent file a motion, adversary proceeding, or other request
with the Bankruptcy Court or any other court under Section 105 of the Bankruptcy
Code or any other authority that seeks to delay or avoid Respondents' compliance
with the requirements for closure, post-closure, and corrective action set forth
in Paragraphs 89-91 or that contends in any way that any action by EPA or the
Participating States to enforce closure, post-closure, and corrective action
requirements as permitted by Paragraphs 89-91 is not within the police and
regulatory exception to the automatic stay. 11 U.S.C. ss.362(b)(4). Respondents
also
<PAGE>
39
agree to oppose as being inconsistent with this Consent Agreement any
motion, adversary proceeding, or other request by other parties in interest with
the Bankruptcy Court or any other court under Section 105 of the Bankruptcy Code
or any other authority that seeks to delay or avoid Respondents' compliance with
the requirements for closure, post-closure, and corrective action set forth in
Paragraphs 89-91 or that contends in any way that any action by EPA or the
Participating States to enforce closure, post-closure, and corrective action
requirements as permitted by Paragraphs 89-91 is not within the police and
regulatory exception to the automatic stay. 11 U.S.C. ss.362(b)(4). Except as
provided in Paragraph 100 with respect to EPA, Respondents reserve all rights
related to facilities owned and/or operated by Safety-Kleen (Pinewood), Inc.
Nothing in this Paragraph abrogates any rights by and between the State of South
Carolina and Respondents that exist in the absence of this Consent Agreement or
expresses in any way EPA's views on Adversary Proceeding No. 00-698 between
South Carolina and Respondents and this Consent Agreement may not be used as
evidence of EPA's views in Adversary Proceeding No. 00-698.
102. Respondents shall comply in full with all Environmental Compliance
Obligations throughout the Bankruptcy Case. Under no circumstances, while the
Bankruptcy Case is pending or open, shall any Respondent file a motion,
adversary proceeding, or other request with the Bankruptcy Court or any other
court under Section 105 of the Bankruptcy Code or any other authority that seeks
to delay or avoid Respondents' Environmental Compliance Obligations or contends
that any action by EPA or the Participating States to enforce an Environmental
Compliance Obligation is not within the police and regulatory exception to
automatic stay. 11 U.S.C. ss.362(b)(4). Respondents also agree to oppose as
being inconsistent with this Consent Agreement any motion, adversary proceeding,
or other request by other parties in interest with
<PAGE>
40
the Bankruptcy Court or any other court under Section 105 of the Bankruptcy
Code or any other authority that seeks to delay Environmental Compliance
Obligations or contends that any action by EPA or the Participating States to
enforce Environmental Compliance Obligations is not within the police and
regulatory exception to automatic stay. 11 U.S.C. ss.362(b)(4). This Paragraph
applies to all Environmental Compliance Obligations of Respondents and is not
limited to Environmental Compliance Obligations related to Covered Facilities or
facilities located in Participating States or Parallel Action States, except
that this Paragraph does not apply to facilities owned and/or operated by
Safety-Kleen (Pinewood), Inc. EPA reserves all rights related to facilities
owned and/or operated by Safety-Kleen (Pinewood), Inc. Except as provided in
Paragraph 100 with respect to EPA, Respondents reserve all rights related to
facilities owned and/or operated by Safety-Kleen (Pinewood), Inc. and this
Paragraph does not apply to such facilities. Nothing in this Paragraph abrogates
any rights by and between the State of South Carolina and Respondents that exist
in the absence of this Consent Agreement or expresses in any way EPA's views on
Adversary Proceeding No. 00-698 between South Carolina and Respondents and this
Consent Agreement may not be used as evidence of EPA's views in Adversary
Proceeding No. 00-698.
103. Respondents shall not abandon any Covered Facility if such Covered
Facility does not have Compliant Financial Assurance. EPA and the Participating
States also reserve all rights to contest any proposed abandonment on any other
ground under applicable law.
104. Whenever this Consent Agreement requires Respondents to submit a
report or documentation regarding their compliance with Environmental Laws or
under Paragraph 88(b), it shall be signed and certified as accurate by a
responsible corporate officer as defined by 40 C.F.R. ss.270.11(a)(1), or
his/her duly authorized representative. This certification shall include
<PAGE>
41
the following language:
I certify under penalty of law that this document and any attachments
to it were prepared under my direction or supervision in accordance
with a system designed to assure that qualified personnel properly
gather and evaluate the information submitted. Based on my inquiry of
the person or persons who manage the system, or those persons directly
responsible for gathering the information, the information submitted
is, to the best of my knowledge and belief, true, accurate, and
complete. I am aware that there are significant penalties for
submitting false information, including the possibility of fine and
imprisonment for knowing violations.
105. Whenever under the terms of this Consent Agreement notice is
required to be given or a report or other document is required to be forwarded
between EPA, Participating States and Respondents, it shall be directed to the
individual and addresses specified in Attachment G, unless otherwise specified
in the Consent Agreement. Any correspondence submitted to EPA or Participating
States shall include a reference to the case caption and docket numbers of this
administrative action.
106. The Parties designate the following individual to receive any
other notification or submissions related to the implementation of this Consent
Agreement (unless specified by law), and to communicate informally about
problems incurred or anticipated in meeting the requirements of this Consent
Agreement. Such informal communication is intended to facilitate meeting the
objectives of this Consent Agreement and shall not relieve the Parties of the
notice and reporting requirements set forth elsewhere in this Consent Agreement.
Branch Chief Phil Retallick
Office of Regulatory Enforcement Senior Vice-President
RCRA Enforcement Division Safety-Kleen Corp.
Mail Code 2246-A 1301 Gervais Street
Ariel Rios Building Columbia, South Carolina 29201
1200 Pennsylvania Avenue, NW (803) 933-6430
Washington, DC 20004
(202) 564-4008
<PAGE>
42
107. Upon the effective date of this Consent Agreement, Respondents
agree to provide EPA access at all reasonable times to any of the Covered
Facilities, and any other property owned, operated or controlled by Respondents,
to which access is required for the implementation of this Consent Agreement for
the purposes of conducting any activity related to this Consent Agreement,
including but not limited to:
a. monitoring all work and activities required by this
Consent Agreement;
b. verifying any data or information submitted to EPA;
c. conducting investigations relating to work or
activities required by this Consent Agreement;
d. obtaining samples relating to work or activities
required by this Consent Agreement;
e. inspecting and copying records, operating logs,
contracts, or other documents maintained or generated
by Respondents or their agents related to work or
activities required by this Consent Agreement; and
f. assessing Respondents' compliance with this Consent
Agreement.
108. Upon the effective date of this Consent Agreement, Respondents
agree to provide Participating States access at all reasonable times to any of
the Covered Facilities located in their state, and any other property owned,
operated or controlled by Respondents in their state, to which access is
required for the implementation of this Consent Agreement for the purposes of
conducting any activity related to this Consent Agreement, but not limited to:
a. monitoring all work and activities required by this
Consent Agreement;
b. verifying any data or information submitted to EPA;
c. conducting investigations relating to work or
activities required by this
<PAGE>
43
Consent Agreement;
d. obtaining samples relating to work or activities
required by this Consent Agreement;
e. inspecting and copying records, operating logs,
contracts, or other documents maintained or generated
by Respondents or their agents related to work or
activities required by this Consent Agreement; and
f. assessing Respondents' compliance with this Consent
Agreement.
VIII. PAYMENT OF PENALTY
109. Respondent Safety-Kleen Services, Inc. agrees to pay a civil
penalty in the sum of $184,692.00. 40 C.F.R. ss.22.18(b). Respondents agree to
pay this amount as an Allowed Administrative Expense Claim in the Bankruptcy
Case as of the Effective Date of the Plan of Reorganization and in the same
manner as other Allowed Administrative Expense Claims are paid. EPA's Allowed
Administrative Expense Claim shall not be subordinated for any reason to other
Allowed Administrative Expense Claims in the Bankruptcy Case. It is EPA's
position that it has substantially reduced the amount of penalty for which
Respondents would otherwise be liable on account of Respondents' limited ability
to pay.
110. Respondent, Safety-Kleen Services, Inc., shall pay the civil
penalty by certified or cashier's check and make it payable to "Treasurer,
United States of America," and mailed to:
U.S. Environmental Protection Agency
Hearing Clerk
P.O. Box 360277M
Pittsburgh, PA 15251
The check should indicate that it is for "Safety-Kleen Corp., et al.," and shall
indicate the docket number for this administrative action.
<PAGE>
44
111. A transmittal letter, indicating Respondent, Safety-Kleen
Services, Inc., complete address, and case docket number shall accompany each
payment.
112. Respondent Safety-Kleen Services, Inc., shall send a copy of the
checks and transmittal letters to:
Clerk, Environmental Appeals Board
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue, N.W. (1103-B)
Washington, DC 20460
and
Christine J. McCulloch, Esq.
Office of Regulatory Enforcement
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue, N.W. (2246-A)
Washington, DC 20460
113. Failure to pay the full amount of the penalty assessed under this
Consent Agreement may subject Respondent Safety-Kleen Services, Inc. to a civil
action to collect any unpaid portion of the proposed civil penalty and interest,
as set forth in Paragraph 114, below. In any such collection action, the
validity, amount and appropriateness of this Consent Agreement or the settlement
payment, or penalty assessed hereunder are not subject to review.
114. If Respondent Safety-Kleen Services, Inc. fails to remit the civil
penalty as agreed to herein, EPA is required to assess interest and penalties on
debts owed to the United States and a charge to cover the cost of processing and
handling a delinquent claim. Interest, at the statutory judgment rate provided
for in 31 U.S.C. ss.3717, will therefore begin to accrue on the civil penalty
if it is not paid within thirty (30) calendar days from when due under this
Consent Agreement.
115. Penalties paid pursuant to this Consent Agreement are not
deductible for federal tax purposes under 28 U.S.C. ss.162(f).
<PAGE>
45
IX. STIPULATED PENALTIES
116. Respondents shall be liable for stipulated penalties to the EPA,
as specified below, for failure to comply with the requirements of this Consent
Agreement, unless excused by EPA, in its sole unreviewable discretion.
"Compliance" by Respondents shall include timely completion of the activities
required and/or specified by this Consent Agreement or any other work plan,
schedule or other document approved by EPA pursuant to this Consent Agreement.
a. For failure to submit the civil penalty pursuant to the terms
of Section VIII (Payment of Penalty), Respondent Safety-Kleen Services, Inc.
shall pay stipulated penalties in the following amounts for each day during
which the payment is not received:
<TABLE>
<CAPTION>
Period of Failure to Comply Penalty Per Violation Per Day
--------------------------- -----------------------------
<S> <C>
1st through 30th day $ 2,500.00
31st day through 60th day $ 4,000.00
60th day and beyond $10,000.00
</TABLE>
b. For failure to provide audited financials as required by
Paragraph 87(c), 87(d) of this Consent Agreement, Respondents shall pay
stipulated penalties in the following amounts for each day during which each
violation continues:
<TABLE>
<CAPTION>
Period of Failure to Comply Penalty Per Violation Per Day
--------------------------- -----------------------------
<S> <C>
1st through 30th day $ 1,000.00
31st day through 60th day $ 2,000.00
60th day and beyond $ 4,000.00
</TABLE>
c. For failure to comply with requirements of Paragraphs 89-91
regarding ceasing taking waste/materials if Respondents are unable to obtain
Compliant Financial Assurance by the Compliant Financial Assurance Deadline,
Respondents shall pay stipulated penalties in the following amounts for each day
during which each violation continues:
<PAGE>
46
<TABLE>
<CAPTION>
Period of Failure to Comply Penalty Per Violation Per Day
--------------------------- -----------------------------
<S> <C>
1st through 30th day $ 2,000.00
31st day through 60th day $ 4,000.00
60th day and beyond $ 6,000.00
</TABLE>
d. For failure to exercise best efforts to obtain Compliant
Financial Assurance as required by Paragraphs 82, 85-87 of this Consent
Agreement, Respondents shall pay stipulated penalties in the following amounts
for each day during which each violation continues:
<TABLE>
<CAPTION>
Period of Failure to Comply Penalty Per Violation Per Day
--------------------------- -----------------------------
<S> <C>
1st through 30th day $ 2,000.00
31st day through 60th day $ 4,000.00
60th day and beyond $ 6,000.00
</TABLE>
e. For failure to meet any deadlines established in Paragraph 87
(except as provided in Paragraph 116.b), or Attachments I and J of this Consent
Agreement, and for any violation of interim operating conditions established in
Section VII (Terms of Agreement) (except as provided in Paragraph 116.c),
Respondents shall pay stipulated penalties in the following amounts for each day
during which each violation continues:
<TABLE>
<CAPTION>
Period of Failure to Comply Penalty Per Violation Per Day
--------------------------- -----------------------------
<S> <C>
1st through 30th day $ 1,000.00
31st day through 60th day $ 2,000.00
60th day and beyond $ 5,000.00
</TABLE>
f. For failure to meet any report submittal deadlines established
in Section VII (except as provided in Paragraph 116.b), or Attachments I and J
of this Consent Agreement, Respondents shall pay stipulated penalties in the
following amounts for each day during which each violation continues:
<TABLE>
<CAPTION>
Period of Failure to Comply Penalty Per Violation Per Day
--------------------------- -----------------------------
<S> <C>
1st through 30th day $ 500.00
31st day through 60th day $ 1,000.00
60th day and beyond $ 2,500.00
</TABLE>
<PAGE>
47
117. All stipulated penalties begin to accrue on the day that
performance is due or a noncompliance occurs, and continue to accrue through the
earlier of: (i) the final day of all correction of the noncompliance, or (ii)
the time through which an analogous penalty under applicable law would accrue.
Nothing herein shall preclude the simultaneous accrual of separate stipulated
penalties for separate violations of this Consent Agreement.
118. Respondents shall notify EPA in writing of any failure to meet
Consent Agreement requirements for which stipulated penalties may be due as soon
as they have knowledge of such failure. EPA shall notify Respondents as soon as
practicable of any alleged failure by Respondents to meet Consent Agreement
requirements for which stipulated penalties may be due. EPA reserves the right
to demand payment of stipulated penalties upon a determination by EPA that a
violation of this Consent Agreement has occurred. However, penalties shall
accrue as provided in Section IX, regardless of whether Respondents or the EPA
has notified the other of a violation.
119. The payment of stipulated penalties shall not alter in any way
Respondents' obligation to comply or complete the terms of the Consent
Agreement.
120. All penalties owed to the EPA under this Section shall have
administrative expense priority and shall be paid as of the Effective Date of
the Plan of Reorganization and in the same manner as other allowed
administrative expense claims are paid in the Bankruptcy Case. EPA's allowed
administrative expense claims shall not be subordinated for any reason to other
allowed administrative expense claims in the Bankruptcy Case. Respondents may
contest the amount of any administrative expense claimed by EPA for stipulated
penalties under this Consent Agreement but may not contest the administrative
priority of any claim allowed. All payments under this Section shall be paid by
certified or cashier's check made payable to
the "Treasurer of
<PAGE>
48
the United States" and shall be mailed with a cover letter stating the caption
and docket number of this administrative case to:
U.S. Environmental Protection Agency
Hearing Clerk
P.O. Box 360277M
Pittsburgh, PA 15251
The check should also indicate that it is for "Safety-Kleen Corp., et. al.," and
should reference the docket number for this administrative action.
121. Respondents shall send a copy of the checks and transmittal
letters to:
Clerk, Environmental Appeals Board
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue, N.W. (1103-B)
Washington, DC 20460
and
Christine J. McCulloch, Esq.
Office of Regulatory Enforcement
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue, N.W. (2246-A)
Washington, DC 20460
122. If Respondents fail to pay stipulated penalties when due, the EPA
may institute proceedings in Bankruptcy Court to collect the penalties, as well
as interest. Respondents shall pay interest on the unpaid penalties at the rate
established by the Secretary of Treasury pursuant to 31 U.S.C. ss.3717,
beginning on the date of demand made pursuant to Section IX, and shall continue
to accrue at the rate specified through the date of the Respondents' full
payment. Such interest shall be compounded each federal fiscal year.
123. Nothing in this Section shall be construed as prohibiting,
altering or in any way limiting the ability of the EPA to seek other remedies or
sanctions available by virtue of Respondents' violation(s) of this Consent
Agreement or of the statutes and regulations referenced herein.
<PAGE>
49
124. Nothing in this Section shall be construed as prohibiting,
altering or in any way limiting the ability of a Participating State to seek
other remedies or sanctions available by virtue of Respondents' violation(s) of
the Participating States' statutes or regulations referenced within this Consent
Agreement.
125. Penalties paid pursuant to this Consent Agreement are not
deductible for federal tax purposes under 28 U.S.C. ss.162(f).
X. CERTIFICATION
126. Nothing in this Consent Agreement shall relieve Respondents of the
duty to comply with all applicable provisions of RCRA and TSCA, and other
federal, state or local laws or statutes, nor shall it restrict EPA's (or the
Participating States') authority to seek compliance with any applicable laws or
regulations, nor shall it be construed to be a ruling on, or determination of,
any issue related to any federal, state or local permit. Nothing in this
Paragraph shall be construed to modify or vacate the provisions of this Consent
Agreement providing for a Compliance Schedule for Respondents to obtain
Compliant Financial Assurance by the Compliant Financial Assurance Deadline.
127. Respondents shall comply with all applicable requirements of RCRA
and TSCA, and regulations thereunder at 40 C.F.R. Parts 260-270 and 761, and as
applicable, authorized state programs, provided that in the event that
Respondents do not obtain Compliant Financial Assurance by the Compliant
Financial Assurance Deadline, Respondents shall comply with the
requirements of Paragraphs 89-91 of this Consent Agreement. Respondents agree to
undertake all necessary actions to prevent recurrences of violations of
environmental requirements. Nothing in this Paragraph shall be construed to
modify the provisions of this Consent Agreement providing for a Compliance
Schedule for Respondents to obtain Compliant Financial Assurance by the
<PAGE>
50
Compliant Financial Assurance Deadline.
128. By signing this Consent Agreement, Respondents certify that the
information it has supplied concerning this matter was at the time of
submission, and is, truthful, accurate, and complete for each such submission,
response and statement. Respondents realize that there are significant penalties
for submitting false or misleading information, including the possibility of
fines and/or imprisonment for knowing submission of such information, 18 U.S.C.
ss.1001.
129. EPA reserves the right to revoke this Consent Agreement and
accompanying settlement penalty if and to the extent that any information or
certification provided by Respondents was materially false or inaccurate at the
time such information or certification was provided to EPA, and EPA reserves the
right to assess and collect any and all civil penalties for any violation
described herein. EPA shall give Respondents oral notice of their intent to
revoke which shall not be effective until received by Respondents in writing.
130. Participating States reserve the right to consult with and request
that EPA revoke that portion of the Consent Agreement for Covered Facilities in
Participating States and accompanying settlement penalty if and to the extent
that any information or certification provided by Respondents, was materially
false or inaccurate at the time such information or certification was provided
to EPA, and EPA reserves the right to assess and collect any and all civil
penalties for any violation described herein. EPA shall give Respondents oral
notice of their intent to revoke which shall not be effective until received by
Respondents in writing.
XI. EFFECT OF SETTLEMENT
131. This Consent Agreement and the accompanying Final Order resolve
only those civil claims specified in Section VI above arising prior to Compliant
Financial Assurance Deadline. Nothing herein shall be construed to limit the
authority of EPA, the United States and/or the
<PAGE>
51
Participating States to undertake action against any person, including the
Respondents, in response to any condition which EPA, the United States or the
Participating States determine may present an imminent and substantial
endangerment to the public health, welfare or the environment, nor shall
anything in this Consent Agreement or the accompanying Final Order be construed
to resolve, and the EPA, United States and Participating States reserve their
authority to pursue criminal sanctions against Respondents.
132. This Consent Agreement, upon incorporation into a Final Order by
the Environmental Appeals Board and full satisfaction by the parties, shall be a
complete and full civil settlement of the specific violations set forth in
Section VI, above.
XII. MODIFICATION OF CONSENT AGREEMENT
133. EPA may supplement the list of Participating States, Parallel Action
States, and Covered Facilities by providing notice to Respondents by August 31,
2000. No such supplementation shall alter the provisions in Paragraphs 100-102
for facilities owned and/or operated by Safety-Kleen (Pinewood), Inc. If EPA
provides such notice, the civil penalty required by Paragraph 109 shall be
increased by $4,062.00 per violation for the noncompliances identified by the
Participating State. No change will be made to the Civil Penalty required under
this Consent Agreement for the addition of Parallel Action States, although such
States may require a civil penalty under any parallel agreement. It is possible
that future circumstances may be such that Respondents may choose to request
that EPA (and affected States) extend the Complaint Financial Assurance
Deadline. Any decision by EPA relating in any way to extend the Complaint
Financial Assurance Deadline shall be in its sole discretion (after consultation
with the affected States) and will not be subject to judicial review. Any
decision by the EPA to allow an extension of time will require that such an
extension be put in writing and signed by the
<PAGE>
52
Parties. Any decision by EPA (and the affected States) to extend
the Compliant Financial Assurance Deadline for a period of time no later than
April 30, 2001 will not require further approval by the Bankruptcy Court. Except
as specifically provided herein, there shall be no modifications or amendments
of this Consent Agreement without the written agreement of the parties to this
Consent Agreement and after consultation with the Participating States.
XIII. SUBMITTAL TO ENVIRONMENTAL APPEALS BOARD
134. The Parties agree to submit this Consent Agreement to the
Environmental Appeals Board with a request that it be incorporated into a Final
Order.
XIV. SUBMITTAL TO BANKRUPTCY COURT
135. Respondents shall exercise their best efforts to obtain the
approval of the Bankruptcy Court for their agreement and entry into this Consent
Agreement. Such approval shall specifically include the Court's approval of the
provisions contained in Section VII (Terms of Agreement), Section VIII (Payment
of Penalty), Section IX (Stipulated Penalties), and Paragraphs 100-103.
XV. EFFECTIVE DATE
136. Respondents and EPA agree to issuance of the attached Final Order.
Upon filing, EPA will transmit a copy of the filed Consent Agreement to the
Respondents and Participating States. This Consent Agreement and the attached
Final Order shall become effective after execution of the Final Order by the
Environmental Appeals Board and filing with the Hearing Clerk and approval of
Respondents' entry into this Consent Agreement by the Bankruptcy Court.
<PAGE>
53
IN THE MATTER OF: Safety-Kleen Corp.
Docket No. MM-HQ-2000-0005
The foregoing Consent Agreement is Hereby Stipulated, Agreed, and Approved for
Entry.
For Respondents:
/s/ Grover C. Wrenn 8/24/00
------------------------------------- -------------------
Grover C. Wrenn Date
President and Chief Operating Officer
Safety-Kleen Corp.
/s/ Henry H. Taylor 8-24-2000
------------------------------------- -------------------
Henry H. Taylor Date
President
All Other Respondents
<PAGE>
54
IN THE MATTER OF: Safety-Kleen Corp.
Docket No. MM-HQ-2000-0005
The foregoing Consent Agreement is Hereby Stipulated, Agreed, and Approved for
Entry.
For Complainant:
signature illegible 8/25/00
---------------------------------------------- -------------------
Steven A. Herman Date
Assistant Administrator
Office of Enforcement and Compliance Assurance
U.S. Environmental Protection Agency
<PAGE>
UNITED STATES
ENVIRONMENTAL PROTECTION AGENCY
IN THE MATTER OF: )
) Docket No. MM-HQ-2000-0005
Safety-Kleen Corp. )
1301 Gervais Street )
Columbia, South Carolina 29201 )
)
Safety-Kleen Services, Inc. )
Safety-Kleen Systems, Inc. )
Safety-Kleen (Aragonite), Inc. )
Safety-Kleen (BDT), Inc. )
Safety-Kleen (Bartow), Inc. )
Safety-Kleen (Baton Rouge), Inc. )
Safety-Kleen (Bridgport), Inc. )
Safety-Kleen (California), Inc. )
Safety-Kleen (Chattanooga), Inc. )
Safety-Kleen (Colfax), Inc. )
Safety-Kleen (Crowley), Inc. )
Safety-Kleen (Deer Park), Inc. )
Safety-Kleen (Deer Trail), Inc. )
Safety-Kleen (GS), Inc. )
Safety-Kleen (LaPorte), Inc. )
Safety-Kleen (Lone and Grassy Mtn.), Inc.)
Safety-Kleen (NE), Inc. )
Safety-Kleen (PPM), Inc. )
Safety-Kleen (Pecatonica), Inc. )
Safety-Kleen (Pinewood), Inc. )
Safety-Kleen (Plaquemine), Inc. )
Safety-Kleen (Roebuck), Inc. )
Safety-Kleen (TS), Inc. )
Safety-Kleen (Tulsa), Inc. )
Safety-Kleen (WT), Inc. )
Safety-Kleen (White Castle), Inc. )
GSX Chemical Services of Ohio, Inc. )
)
)
Respondents. )
FINAL ORDER
Pursuant to 40 C.F.R. ss.22.18(b) of EPA's Consolidated Rules of Practice,
64 Fed. Reg. 40138 (July 23, 1999), and Sections 3008(a), (g), and (h) of the
Resource Conservation and Recovery Act (RCRA), 42 U.S.C. ss.ss.6928(a), (g), and
(h); and Section 16(a) of the Toxic
<PAGE>
Substances Control Act (TSCA), 15 U.S.C. ss.2615(a), the Consent Agreement
resolving this matter is hereby approved and incorporated by reference into this
Final Order. It is hereby ordered that:
1. Respondents shall comply with all of the terms of the Consent
Agreement, incorporated herein by reference, and with the requirements set forth
in RCRA, TSCA, and regulations thereunder;
2. Respondents are assessed a civil penalty in the amount of
$184,692.00;
3. Respondents shall, provide EPA with an Allowed Administrative
Expense Claim in the amount of $184,692.00 in Respondents' Bankruptcy Case as
of the Effective Date of the Plan of Reorganization. Payment shall be made by
certified or cashier's check payable to the order of "Treasurer, United States
of America." The check shall refer to the docket number for EPA's administrative
action and shall be mailed to:
U.S. Environmental Protection Agency
Hearing Clerk
P.O. Box 360277M
Pittsburgh, PA 15251
4. A transmittal letter, indicating Respondents' names, complete
addresses, and the administrative case docket number shall accompany the payment
of the civil penalty.
5. Respondents shall send a copy of the checks and transmittal letters
to:
Clerk, Environmental Appeals Board
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue, N.W. (1103-B)
Washington, DC 20460
and
Christine J. McCulloch, Esq.
Office of Regulatory Enforcement
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue, N.W. (2246-A)
Washington, DC 20460
So Ordered, this ______ day of __________________, 2000.
------------------------------------
U.S. Environmental Protection Agency
Environmental Appeals Board
<PAGE>
ATTACHMENT A
RESPONDENTS: The following is a list of the Respondents as referred to in
the Consent Agreement.
Safety-Kleen Corp.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen Services, Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen Systems, Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (Aragonite), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (BDT), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (Bartow), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (Baton Rouge), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (Bridgport), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (California), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (Chattanooga), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
<PAGE>
Safety-Kleen (Colfax), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (Crowley), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (Deer Park), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (Deer Trail), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (GS), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (LaPorte), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (Lone and Grassy Mtn.), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (NE), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (PPM), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (Pecatonica), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (Pinewood), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
2
<PAGE>
Safety-Kleen (Plaquemine), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (Roebuck), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (TS), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (Tulsa), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (WT), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
Safety-Kleen (White Castle), Inc.
1301 Gervais Street
Columbia, South Carolina 29201
GSX Chemical Services of Ohio, Inc.
1301 Gervais Street
Columbia, South Carolina 29201
3
<PAGE>
ATTACHMENT B
This Attachment specifies the "Covered Facilities" for closure
activities under TSCA that have Frontier surety bonds.
<TABLE>
<CAPTION>
FLORIDA:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen (Bartow), Inc. Interim - Closure
170 Bartow Municipal Airport FLD 980 729 610
Bartow, FL 33830-9504
(941-519-6328)
<CAPTION>
GEORGIA:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen (PPM), Inc. Interim - Closure
1875 Forge Street GAD 980 839 187
Tucker, GA 30084
(404-934-0902)
<CAPTION>
ILLINOIS:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen ( Pecatonica), Inc. Final - Closure
6125 North Pecatonica Road ILD 980 502 744
Pecatonica, IL 60163
(815-239-2377)
<CAPTION>
INDIANA:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen Systems, Inc Final - Closure
601 Riley Road IND 077 042 034
E. Chicago, IN 46312
(219-397-1131)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
KANSAS:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen (Aragonite), Inc. Final - Closure
P.O. Box 1328 KSD 981 506 025
Coffeysville, KS 67337 (incinerator)
(316-251-6380)
<CAPTION>
KENTUCKY:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen Systems, Inc. Interim - Closure
3700 Lagrange Road KYD 053 348 108
Smithfield, KY 40050
(502-845-2453)
<CAPTION>
MISSOURI:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen (PPM), Inc. Final - Closure
1628 W. 9th Street MOD 069 277 549
Kansas City, MO 64101
(816-221-6827)
<CAPTION>
NORTH CAROLINA:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen (TS), Inc. Interim - Closure
Route 11, Box 3 NCD 000 648 451
Reidsville, NC 27320
(919-342-6106)
<CAPTION>
OHIO:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen (PPM), Inc. Interim - Closure
1302 W. 38th Street OHD 981 093 420
#2 Whse. 3416 Ann Avenue
Ashtabula, OH 44004
(216-992-8665)
</TABLE>
2
<PAGE>
<TABLE>
<S> <C> <C>
Safety-Kleen (PPM), Inc. Final
1672 E. Highland Road OHD 986 975 399 - Closure
Twinsburg, OH 44087
(216-425-3825)
<CAPTION>
PENNSYLVANIA:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen (PPM), Inc. Interim - Closure
4105 Whitaker Avenue PAD 981 113 749
Philadelphia, PA 19124
(215-425-5144)
<CAPTION>
SOUTH CAROLINA:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen Systems, Inc. Interim - Closure
130 A Frontage Road SCD 077 995 488
Lexington, SC 29072
(803-356-4061)
<CAPTION>
TENNESSEE:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen, Corp. Interim - Closure
2815 Old Greenbrier Pike TND 000 645 770
Greenbrier, TN 37073
(615-643-4511)
<CAPTION>
TEXAS:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen (LaPorte), Inc. Interim - Closure
500 Battleground Road TXD 982 290 140
(P.O. Box 1009)
LaPorte, TX 77572-1009
(803-798-2993)
</TABLE>
3
<PAGE>
<TABLE>
<S> <C> <C>
Safety-Kleen Systems, Inc. Interim - Closure
1722 Cooper Creek Road TXD 077 603 371
Denton, TX 76201
(817-383-2611)
<CAPTION>
UTAH:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen (Aragonite), Inc. TSCA/RCRA - Closure (covers RCRA & TSCA)
P.O. Box 22890 UTD 981 552 177
Salt Lake City, UT 81422-0890
(801-323-8100)
Safety-Kleen (Lone and Final - Closure
Grassy Mountain), Inc. UTD 991 301 748
P.O. Box 22750
Salt Lake City, UT 84122
(800-877-2401)
Safety-Kleen (Clive), Inc. Final - Closure
P. O. Box 22285 UTD 982 595 795
Salt Lake City, UT 84122-0285
(801-323-8400)
</TABLE>
4
<PAGE>
ATTACHMENT C
This Attachment specifies the "Covered Facilities" in Participating
States for RCRA closure and post-closure activities that have Frontier surety
bonds.
<TABLE>
<CAPTION>
ARKANSAS:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen Systems, Inc. ARD054575238 - Closure
11727 Arch St. Pike - Post-closure
Little Rock, Arkansas 72206
<CAPTION>
GEORGIA:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen Systems, Inc. GAD000823096 - Closure
5920 Coca Cola Blvd.
Columbus, GA 31909
Safety-Kleen Systems, Inc GAD000776781 - Closure
5217 Augusta Road
Garden City, GA 31418
Safety-Kleen Systems, Inc. GAD980709257 - Closure
6580 Hawkinsville Road
Macon, GA 31206
Safety-Kleen Systems, Inc. GAD981265424 - Closure
7027 Commercial Dr.
Morrow, GA 30260
Safety-Kleen Systems, Inc. GAD980842777 - Closure
4800 South Old Peachtree
Norcross, GA 30071
Safety-Kleen (PPM) Inc. GAD980839187 - Closure
1875 Forge St.
Tucker, GA 30084
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IOWA:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen Systems, Inc. IAD098027592 - Closure
3035 W. 73rd St.
Davenport, IA 52806
Safety-Kleen Systems, Inc. IAD981718000 - Closure
4704 N.E. 22nd St.
Des Moines, IA 50313
Safety-Kleen Systems, Inc. IAD083489773 - Closure
5318 NW 111 Dr. - Post-Closure
Grimes, IA 50111
Safety-Kleen-Systems, Inc. IAD000678326 - Closure
16 11th St. SW - Post-Closure
Mason City, IA 50401
<CAPTION>
MASSACHUSETTS:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen (NE), Inc. MAD00060447 - Closure
300 Canal Street
Laurence, MA 01940
North Andover, MA
<CAPTION>
MINNESOTA:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen Systems, Inc. MND981953045 - Closure
9261 Isanti Street
Blaine, MN 55434
Safety-Kleen Systems, Inc. MND000686170 - Closure
1302 18th Street
Cloquet, MN 55720
Safety-Kleen Systems, Inc. MND981097884 - Closure
3227 Terminal Drive
Eagan, MN 55121
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
NEVADA:
FACILITY NAME AND ADDRESS EPA ID # BOND ACTIVITIES COVERED
<S> <C> <C>
Safety Kleen Systems, Inc. NVT330010208 - Closure
1655 Stocker St.
N. Las Vegas, NV 89030
<CAPTION>
SOUTH DAKOTA:
FACILITY NAME AND ADDRESS EPA ID # BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen Systems, Inc. SDD000716696 - Closure
2000 N. Westport Ave.
Sioux Falls, SD 57107
<CAPTION>
TENNESSEE:
FACILITY NAME AND ADDRESS EPA ID # BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen (TS), Inc. TND000645770 - Closure
2815 Old Greenbrier Park
Greenbrier, TN 37073
Safety-Kleen (WT), Inc. TND002772277 - Closure
1640 Antioch Pike
Antioch, TN 37013
Safety-Kleen Systems, Inc. TND987777695 - Closure
6617 Pleasant Ridge Road
Knoxville, TN 37921
Safety-Kleen (GS), Inc. TND000614321 - Closure
3536 Fite Road
Millington, TN 38053
Safety-Kleen Systems, Inc. TND981474125 - Closure
215 Whitsett Road
Nashville, TN 39210
</TABLE>
3
<PAGE>
Vermont:
<TABLE>
<CAPTION>
VERMONT:
FACILITY NAME AND ADDRESS EPA ID # BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen Systems, Inc. VTD000791699 - Closure
23 W, Second St,
Barre, VT 05641
<CAPTION>
WISCONSIN:
FACILITY NAME AND ADDRESS EPA ID # BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen Systems, Inc. WID981187297 - Closure
2100 Badger Rd.
Kaukauna, WI 54130
Safety-Kleen Systems, Inc. WID980896641 - Closure
21091/2Ward Ave.
La Crosse, WI 54601
Safety-Kleen Systems, Inc. WID980896633 - Closure
2325 Daniels St.
Madison, WI 53718
Safety-Kleen Systems, Inc. WID000668822 - Closure
902 South Maine Street
Shawano, WI 54166
Safety-Kleen Systems, Inc. WID981097769 - Closure
2200 S. West Ave.
Waukesha, WI
</TABLE>
4
<PAGE>
ATTACHMENT D
This Attachment specifies the "Covered Facilities" in Participating
States for RCRA corrective action that have Frontier surety bonds.
<TABLE>
<CAPTION>
ARKANSAS:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen Systems, Inc. ARD054575238 - Corrective Action
11727 Arch St. Pike
Little Rock, Arkansas 72206
<CAPTION>
GEORGIA:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen Systems, Inc. GAD000823096 - Corrective Action
5920 Coca Cola Blvd. (RCRA Permit)
Columbus, GA
Safety-Kleen Systems, Inc. GAD000776781 - Corrective Action
5217 Augusta Road (RCRA Permit)
Garden City, GA
Safety-Kleen Systems, Inc. GAD000823070 - Corrective Action
3440 Lang Ave. (Consent Order)
Hapeville, GA
Safety-Kleen Systems, Inc. GAD980842777 - Corrective Action
4800 South Old Peachtree (RCRA Permit)
Norcross, GA
<CAPTION>
ILLINOIS:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen (Pecatonica), Inc. ILD980502744 - Corrective Action
6125 N. Pecatonica Road (Closure)
Pecatonica, IL 61063
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW JERSEY:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen (Bridgeport), Inc. NJD053288239 - Corrective Action
Rte. 322 & I-295 (RCRA 3008(h) Order)
Bridgeport, NJ 08014
<CAPTION>
SOUTH CAROLINA:
FACILITY NAME AND ADDRESS EPA ID # BOND ACTIVITIES COVERED
<S> <C> <C>
Safety-Kleen (Roebuck), Inc SCD981467616 - Corrective Action
300-301 Railroad Street (RCRA 3008(h) Order)
Roebuck, South Carolina 29376
</TABLE>
2
<PAGE>
ATTACHMENT E
PARTICIPATING STATES: The following is a list of the Participating States
as referred to in the Consent Agreement.
1. ARKANSAS
2. GEORGIA
3. ILLINOIS
4. MINNESOTA
5. MASSACHUSETTS
6. NEVADA
7. SOUTH DAKOTA
8. TENNESSEE
9. VERMONT
10. WISCONSIN
The following addresses are for the state agency implementing the authorized
hazardous waste program for the Participating State.
Arkansas Department of Environmental Quality
8001 National Drive
Little Rock, AR 72209
Georgia Environmental Protection Division
Department of Natural Resources
205 Butler Street, SE, 1152 East Tower
Atlanta, GA 30334
Illinois Environmental Protection Agency
1021 North Grand Avenue East
Springfield, IL 62706
<PAGE>
Massachusetts Department of Environmental Protection
One Winter Street
Boston, MA 02108
Minnesota Pollution Control Agency
520 Lafayette Road North, Sixth Floor
St. Paul, MN 55155-4194
Nevada Division of Environmental Protection
333 W. Nye Lane
Carson City, NV 89710
South Dakota Department of Environment & Natural Resources
Joe Foss Building
523 E. Capital Avenue
Pierre, SD 57501
Tennessee Department of Environment & Conservation
21st Floor, L & C Tower
401 Church Street
Nashville, TN 37243-0435
Vermont Agency of Natural Resources
103 S. Main Street, Center Building
Waterbury, VT 05671-0301
Wisconsin Department of Natural Resources
101 South Webster Street
Madison, WI 53703
2
<PAGE>
ATTACHMENT F
PARALLEL STATES: The following is a list of the Parallel States as
referred to in the Consent Agreement. Also included as
part of this Attachment: (1) Appendix F-1 which
specifies the "Covered Facilities" for closure,
post-closure and corrective action under RCRA that have
Frontier surety bonds; and (2) Appendix F-2 which lists
the Parallel Action States and notice of authorization
pursuant to Section 3006 of RCRA, 42 U.S.C. ss. 6926.
1. ARIZONA
2. KANSAS
3. LOUISIANA
4. MARYLAND
5. MISSOURI
6. NEW YORK
7. OKLAHOMA
8. PENNSYLVANIA
9. TEXAS
10. VIRGINIA
The following addresses are for the state agency implementing the authorized
hazardous waste program for the Participating State.
Arizona Department of Environmental Quality
3033 N. Central Avenue
Phoenix, AZ 85012
Kansas Department of Health and Environment
Division of Environment
740 Forbes Field
Topeka, KS 66620
<PAGE>
Louisiana Department of Environmental Quality
7290 Bluebonnet Boulevard
Baton Rouge, LA 70810
Maryland Department of Environment
2500 Broening Highway
Baltimore, MD 21224
Missouri Department of Natural Resources
205 Jefferson Street
Jefferson City, MO 65101
New York Department of Environmental Conservation
50 Wolf Road
Albany, NY 12233-1010
Oklahoma Department of Environmental Quality
707 North Robinson, Suite 7100
Oklahoma City, OK 73102
Pennsylvania Department of Environmental Protection
Rachel Carson State Office Building, 16th Floor
400 Market Street
Harrisburg, PA 17101-2301
Texas Natural Resource Conservation Commission
12100 Park 35 Circle (MC 100)
Austin, TX 78753
Virginia Department of Environmental Quality
629 E. Main Street
Richmond, VA 23219
<PAGE>
Attachment F - Appendix 1
APPENDIX F-1
This Appendix specifies the "Covered Facilities" in Parallel Action
States for RCRA closure, post-closure and corrective action that have Frontier
surety bonds.
<TABLE>
<CAPTION>
ARIZONA:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
SAFETY-KLEEN (CALIFORNIA), INC. AZD049318009 - CLOSURE
d/b/a SAFETY-KLEEN SOUTHWEST
1340 W LINCOLN ST
PHOENIX, AZ 85007
SAFETY-KLEEN SYSTEMS, INC. AZD089308803 - CLOSURE
4401 E UNIVERSITY
PHOENIX, AZ 85034
SAFETY-KLEEN SYSTEMS, INC. AZD980892897 - CLOSURE
4401 E UNIVERSITY - POST-CLOSURE
PHOENIX, AZ 85034
SAFETY-KLEEN SYSTEMS, INC. AZD981969504 - CLOSURE
6625 W FRYE RD
CHANDLER, AZ 85226
<CAPTION>
KANSAS:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
SAFETY-KLEEN SYSTEMS, INC. KSD000809723 - CLOSURE
1311 S ANNA
WICHITA, KS 67209
SAFETY-KLEEN SYSTEMS, INC. KSD980973515 - CLOSURE
9317 WOODEND RD
EDWARDSVILLE, KS 66111
SAFETY-KLEEN SYSTEMS, INC. KSD980686844 - CLOSURE
600 E. TRAIL
DODGE CITY, KS 67801
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LOUISIANA:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
SAFETY-KLEEN (BATON ROUGE) INC. LAD010395127 - CLOSURE
13351 SCENIC HWY. - POST CLOSURE
BATON ROUGE, LA 70807
SAFETY-KLEEN (PLAQUEMINE) INC. LAD000778514 - CLOSURE
32655 GRACIE LN. - POST CLOSURE
PLAQUEMINE, LA 70764
SAFETY-KLEEN SYSTEMS, INC. LAD981057441 - CLOSURE
518 RYDER DR.
PINEVILLE, LA 71360
SAFETY-KLEEN (CROWLEY), INC. LAD079464095 - CLOSURE
LA 1112
CROWLEY, LA 70526
SAFETY-KLEEN (COLFAX), INC. LAD981055791 - CLOSURE
3763 HWY 471
COLFAX, LA 71417
SAFETY-KLEEN SYSTEMS, INC. LAD000757708 - CLOSURE
4200 SHREVEPORT HWY - CORRECTIVE ACTION
PINEVILLE, LA 71360
SAFETY-KLEEN SYSTEMS, INC LAD089841902 - CLOSURE
14 26TH ST
KENNER, LA 70062
<CAPTION>
MARYLAND:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
SAFETY-KLEEN SYSTEMS, INC. MDD000737395 - CLOSURE
12164 TECH RD - CORRECTIVE ACTION
SILVER SPRING, MD 20904
</TABLE>
2
<PAGE>
<TABLE>
<S> <C> <C>
SAFETY-KLEEN SYSTEMS, INC. MDD000737106 - CLOSURE
150 PENROD CT, SECTIONS G&H
GLEN BURNIE, MD 21061
SAFETY-KLEEN (TS), INC. MDD980554653 - CLOSURE
3527 WHISKEY BOTTOM ROAD
LAUREL, MD 207249306
SAFETY-KLEEN SYSTEMS, INC. MDD981034291 - CLOSURE
1448 DESOTO RD.
BALTIMORE, MD 21230
<CAPTION>
MISSOURI:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
SAFETY-KLEEN (PPM), INC. MOD069277549 - CLOSURE
1628 W. 9TH ST.
KANSAS CITY, MO 64101
<CAPTION>
NEW YORK:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
SAFETY-KLEEN (BDT), INC. NYD000632372 - CLOSURE
4255 RESEARCH PKY.
CLARENCE, NY 14031
<CAPTION>
OKLAHOMA:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
SAFETY-KLEEN SYSTEMS, INC OKD000763821 - CLOSURE
16319 E MARSHALL ST
TULSA, OK 74116
SAFETY-KLEEN SYSTEMS, INC OKD980878474 - CLOSURE
7825 HWY 152
WHEATLAND, OK 73097
</TABLE>
3
<PAGE>
<TABLE>
<S> <C> <C>
SAFETY-KLEEN SYSTEMS, INC OKD987086774 - CLOSURE
8800 SW 8TH ST
OKLAHOMA CITY, OK 73128
SAFETY-KLEEN (LONE & GRASSY OKD065438376 - CLOSURE
MOUNTAIN), INC. - POST-CLOSURE
5 MILE E. & 1 MILE N. OF JUNCTION - CORRECTIVE ACTION
U.S. HWYS. 412 &
WAYNOKA, OK 73860
SAFETY-KLEEN (LONE & GRASSY OKD000070136 - CLOSURE
MOUNTAIN), INC.
.5M E ON CNTY RD 76-22C
AVARD, OK 73717
SAFETY-KLEEN SYSTEMS OKD000632737 - CLOSURE
(TULSA), INC.
5354 W 46TH ST. S
TULSA, OK 74107
SAFETY-KLEEN SYSTEMS, INC. OKD000829507 - CLOSURE
2827 WEST LINDLEY
OKLAHOMA CITY, OK
<CAPTION>
PENNSYLVANIA:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
SAFETY-KLEEN SYSTEMS, INC. PAD084872043 - CLOSURE
98 SECOND ST
WILKES-BARRE, PA 18705
SAFETY-KLEEN SYSTEMS, INC. PAD000738815 - CLOSURE
670 COCHRAN MILL RD
CLAIRTON, PA 15025
SAFETY-KLEEN SYSTEMS, INC. PAD065716813 - CLOSURE
BLDG PP 9 RIVER RD
TULLYTOWN, PA 19007
</TABLE>
4
<PAGE>
<TABLE>
<S> <C> <C>
SAFETY-KLEEN SYSTEMS, INC. PAD981736143 - CLOSURE
(JOHNSTOWN)
150 ALLENBILL DR
JOHNSTOWN, PA 15904
SAFETY-KLEEN SYSTEMS, INC. PAD980552020 - CLOSURE
5540 MEMORIAL RD.
ALLENTOWN, PA 18104
SAFETY-KLEEN SYSTEMS, INC. PAD000738823 - CLOSURE
10 ELEANOR DR.
NEW KINGSTOWN, PA 17072
SAFETY-KLEEN SYSTEMS, INC. PAD987266673 - CLOSURE
INDUSTRIAL PARK RD.
ATHENS, PA 18810
SAFETY-KLEEN SYSTEMS, INC. PAD987266715 - CLOSURE
77 TOWPATH & CANAL RD.
FAIRLESS HILLS, PA 19030
SAFETY-KLEEN SYSTEMS, INC. PAD000738849 - CLOSURE
1140 GREENHILL RD.
WESTCHESTER, PA 19380
SAFETY-KLEEN SYSTEMS, INC. PAD981737109 - CLOSURE
600 STEWART RD.
WILKES BARRE, PA 18706
SAFETY-KLEEN SYSTEMS, INC. PAD086673407 - CLOSURE
1606 PITTSBURGH AVE.
ERIE, PA 16505
SAFETY-KLEEN SYSTEMS, INC. PAD982576258 - CLOSURE
650 NOBLE DR.
WEST MIFFLIN, PA 15122
<CAPTION>
TEXAS:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
SAFETY-KLEEN SYSTEMS, INC. TX000055045 - CLOSURE
12212 COUNTY RD 31
SLATON, TX 79364
</TABLE>
5
<PAGE>
<TABLE>
<S> <C> <C>
SAFETY-KLEEN (LAPORTE), INC. TXD982290140 - CLOSURE
500 BATTLEGROUND RD
LA PORTE, TX 77571
SAFETY-KLEEN SYSTEMS, INC. TXD000747386 - CLOSURE
3333 FEDERAL ROAD - POST-CLOSURE
PASADENA, TX 77504 - CORRECTIVE ACTION
SAFETY-KLEEN SYSTEMS, INC. TXD000747394 - CLOSURE
900 A HAWKINS BLVD - POST-CLOSURE
EL PASO, TX 79905
SAFETY-KLEEN SYSTEMS, INC. TXD000747410 - CLOSURE
3811 INTERSTATE 40 EAST
AMARILLO, TX 79104
SAFETY-KLEEN SYSTEMS INC TXD000747428 - CLOSURE
1606 MISSILE ROAD
WICHITA FALLS, TX 76306
SAFETY-KLEEN SYSTEMS INC TXD083145656 - CLOSURE
1311 EAST TAMARACK
MCALLEN, TX 78501
SAFETY-KLEEN SYSTEMS INC TXD000747436 - CLOSURE
1301 N REDWOOD ST
LUBBOCK, TX 79408
SAFETY-KLEEN SYSTEMS INC TXD061290276 - CLOSURE
3454 WOMACK ROAD
ORANGE, TX 77632
SAFETY-KLEEN SYSTEMS INC TXD981052061 - CLOSURE
2130 E GRAUWYLER RD
IRVING, TX 75061
SAFETY-KLEEN SYSTEMS INC TXD980876015 - CLOSURE
22006 WOODWAY DR
WACO, TX 76710
</TABLE>
6
<PAGE>
<TABLE>
<S> <C> <C>
SAFETY-KLEEN SYSTEMS INC TXD981053416 - CLOSURE
6529 MIDWAY ROAD
HALTOM CITY, TX 76117
SAFETY-KLEEN SYSTEMS INC TXD981056690 - CLOSURE
10607 COUNTY ROAD 127 WEST
MIDLAND, TX 79711
SAFETY-KLEEN SYSTEMS INC TXD988032595 - CLOSURE
6000 POMPANO ST
EL PASO, TX 79924
SAFETY-KLEEN (DEER PARK) INC TXD055141378 - CLOSURE
2027 BATTLEGROUND RD - CORRECTIVE ACTION
DEER PARK, TX 77536
SAFETY-KLEEN CORP. TXD077603371 - CLOSURE
1722 COOPER CREEK RD. - POST-CLOSURE
DENTON, TX 76208
SAFETY-KLEEN SYS. TXD062287883 - CLOSURE
4234 OIL BELT LN. - POST-CLOSURE
ABILENE, TX 79605
SAFETY-KLEEN SYS. TXD000729400 - CLOSURE
5243 SINCLAIR RD.
SAN ANTONIO, TX 78222
SAFETY-KLEEN SYS. TXD000747378 - CLOSURE
202 MICHAEL PL.
LONGVIEW, TX 75602
SAFETY-KLEEN SYSTEMS INC TXD000747402 - CLOSURE
3820 BRATTON ROAD
CORPUS CHRISTI, TX 78415
SAFETY-KLEEN TXD000001933 - CLOSURE
10272 HICKSVILLE
FORT WORTH, TX
SAFETY-KLEEN TXD000000076 - CLOSURE
900 S. MAIN
GALENA PARK, TX
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
VIRGINIA:
FACILITY NAME AND ADDRESS EPA ID NO. BOND ACTIVITIES COVERED
<S> <C> <C>
SAFETY-KLEEN SYSTEMS INC VAD981042955 - CLOSURE
2146 KING MILL PIKE
BRISTOL, VA 24201
SAFETY-KLEEN SYS. VAD000737346 - CLOSURE
4545 BAINBRIDGE BLVD.
CHESAPEAKE, VA 23320
SAFETY-KLEEN SYS. VAD981043011 - CLOSURE
1200 W. 100 RD.
CHESTER, VA 23831
SAFETY-KLEEN SYS. VAD000737361 - CLOSURE
RTE. 24, 3 MILES E. OF VINTON
VINTON, VA 24179
</TABLE>
8
<PAGE>
Attachment F: Appendix F-2
APPENDIX F-2
ARIZONA: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b), the
Administrator of U.S. EPA granted the State of Arizona final authorization to
administer a state hazardous waste program in lieu of the federal government's
base RCRA program, effective December 4, 1985 (50 Fed. Reg. 47736 (Nov. 20,
1985)). The Administrator of the U.S. EPA granted final authorization to
administer additional RCRA and certain HSWA requirements effective January 22,
1993 (57 Fed. Reg. 54932(Nov. 23, 1992)); September 11, 1992(57 Fed. Reg.
30905(July 13, 1992)); June 12, 1995(60 Fed. Reg. 18356(Apr. 11, 1995)); October
7, 1991 (56 Fed. Reg. 37290(Aug. 6, 1991)); December 27, 1993 (58 Fed. Reg.
57745(Oct. 27, 1993)); May 20, 1997(62 Fed. Reg. 13540(Mar. 21, 1997)); December
28, 1998(63 Fed. Reg. 57605(Oct. 28, 1998)).
KANSAS: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b), the
Administrator of U.S. EPA granted the State of Kansas final authorization to
administer a state hazardous waste program in lieu of the federal government's
base RCRA program, effective October 17, 1985 (50 Fed. Reg. 40377 (Oct. 3,
1985)). The Administrator of the U.S. EPA granted final authorization to
administer additional RCRA and certain HSWA requirements effective June 25, 1990
(55 Fed. Reg. 17273 (Apr. 24, 1990)); August 15, 1994 (59 Fed. Reg. 30528 (Jun.
14, 1994)); September 27, 1996 (61 Fed. Reg. 39353 (Jul. 29, 1996)).
LOUISIANA: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b), the
Administrator of U.S. EPA granted the State of Louisiana final authorization to
administer a state hazardous waste program in lieu of the federal government's
base RCRA program, effective February 7, 1985 (50 Fed. Reg. 3348 (January 24,
1985)). The Administrator of the U.S. EPA granted final authorization to
administer additional RCRA and certain HSWA requirements effective October 25,
1991 (56 Fed. Reg. 41958 (Aug. 26, 1991)); January 29, 1990 (54 Fed. Reg. 48889
(Nov. 28, 1989)); January 23, 1995 (59 Fed. Reg. 55368 (Nov. 7, 1994)); March 8,
1995 (59 Fed. Reg. 66200 (Dec. 23, 1994)); October 25, 1999 (64 Fed. Reg. 46302
(Aug. 25, 1999)); January 2, 1996 (60 Fed. Reg.53704 (Oct. 17, 1995)); June 11,
1996 (61 Fed. Reg.13777 (Mar. 28, 1996)); March 16, 1998 (62 Fed. Reg.67572
(Dec. 29, 1997)); December 22, 1998 (63 Fed. Reg. 56830 (Oct. 23, 1998));
November 1, 1999 (64 Fed. Reg. 48135 (Sep. 2, 1999)); April 28, 2000 (65 Fed.
Reg. 10411 (Feb. 28, 2000)).
MARYLAND: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b), the
Administrator of U.S. EPA granted the State of Maryland final authorization to
administer a state hazardous waste program in lieu of the federal government's
base RCRA program, effective February 11, 1985 (50 Fed. Reg. 3511-02 (Jan. 25,
1985)).
MISSOURI: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b), the
Administrator of U.S. EPA granted the State of Missouri final authorization to
administer a state hazardous waste program in lieu of the federal government's
base RCRA program, effective December 4, 1985 50 Fed. Reg. 47740 (Nov. 20,
1985)). The Administrator of the U.S. EPA granted final authorization to
administer additional RCRA and certain HSWA requirements effective April 28,
<PAGE>
(1989 (54 Fed. Reg. 8190 (Feb. 27, 1989)); March 12, 1993 (58 Fed. Reg.
3497 (Jan. 11, 1993)); December 30, 1997 (62 Fed. Reg. 29301 (May 30, 1997));
July 6, 1999 (64 Fed. Reg. 23780 (May 4, 1999)); April 28,
2000 (65 Fed. Reg. 10405 (Feb. 28, 2000)).
NEW YORK: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b), the
Administrator of U.S. EPA granted the State of New York final authorization to
administer a state hazardous waste program in lieu of the federal government's
base RCRA program, effective May 29, 1986 (51 Fed. Reg. 17737 (May 15, 1986)).
The Administrator of the U.S. EPA granted final authorization to administer
additional RCRA and certain HSWA requirements effective July 3, 1989 (54 Fed.
Reg. 19184 (May 4, 1989)); May 7, 1990 (55 Fed. Reg. 7896 (Mar. 6, 1990)); May
22, 1992 (57 Fed. Reg. 9978 (Mar. 23, 1992)); October 29, 1991 (56 Fed. Reg.
42944 (Aug. 30, 1991)); August 28, 1995 (60 Fed. Reg. 33753 (Jun. 29, 1995));
October 14, 1997 (62 Fed. Reg. 43111 (Aug. 12, 1997)).
OKLAHOMA: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b), the
Administrator of U.S. EPA granted the State of Oklahoma final authorization to
administer a state hazardous waste program in lieu of the federal government's
base RCRA program, effective January 10, 1985 (49 Fed. Reg. 50362 (Dec. 27,
1984)). The Administrator of the U.S. EPA granted final authorization to
administer additional RCRA and certain HSWA requirements effective December 21,
1994 (59 Fed. Reg. 51116 (Oct. 7, 1994)); November 27, 1990 (55 Fed. Reg. 39274
(Sep. 26, 1990)); June 18, 1990 (55 Fed. Reg. 14280 (Apr. 17, 1990)); November
29, 1993 (58 Fed. Reg. 50854 (Sep. 29, 1993)); June 3, 1991 (56 Fed. Reg. 13411
(Apr. 2, 1991)); November 19, 1991 (56 Fed. Reg. 47675 (Sep. 20, 1991)); April
27, 1995 (60 Fed. Reg. 2699 (Jan. 11, 1995)); March 14, 1997 (62 Fed. Reg. 12100
(Mar. 14, 1997)); November 23, 1998 (63 Fed. Reg. 50528 (Sep. 22, 1998));
February 8, 1999 (63 Fed. Reg. 67800-01 (Dec. 9, 1998)); May 30, 2000 (65 Fed.
Reg. 16528 (Mar. 29, 2000)); July 10, 2000 (65 Fed. Reg. 29981 (May 10, 2000)).
PENNSYLVANIA: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b), the
Administrator of U.S. EPA granted the State of Pennsylvania final authorization
to administer a state hazardous waste program in lieu of the federal
government's base RCRA program, effective January 30, 1986 (51 Fed. Reg. 1791
(Jan. 15, 1986)).
TEXAS: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b), the
Administrator of U.S. EPA granted the State of Texas final authorization to
administer a state hazardous waste program in lieu of the federal government's
base RCRA program, effective December 26, 1984 (49 Fed. Reg. 48300 (Dec. 12,
1984)). The Administrator of the U.S. EPA granted final authorization to
administer additional RCRA and certain HSWA requirements effective March 15,
1990 (55 Fed. Reg. 7318 (Mar. 1, 1990)); February 17, 1997 (51 Fed. Reg. 45320
(Dec. 18, 1986)); July 23, 1990 (55 Fed. Reg. 21383 (May 24, 1990)); June 27,
1994 (59 Fed. Reg. 16987 (Apr. 11, 1994)); December 4, 1992 (57 Fed. Reg. 45719
(Oct. 5, 1992)); October 21, 1991 (56 Fed. Reg. 41626 (Aug. 22, 1991)); November
26, 1997 (62 Fed. Reg. 47947 (Sep. 12, 1997)); November 15, 1999 (64 Fed. Reg.
49673 (Sep. 14, 1999)); October 18, 1999 (64 Fed. Reg.44836 (Aug. 18, 1999)).
2
<PAGE>
VIRGINIA: Pursuant to Section 3006(b) of RCRA, 42 U.S.C. ss.6926(b), the
Administrator of U.S. EPA granted the Commonwealth of Virginia final
authorization to administer a state hazardous waste program in lieu of the
federal government's base RCRA program, effective December 18, 1984 (49 Fed.
Reg. 35966 (Dec. 4, 1984)). The Administrator of the U.S. EPA granted final
authorization to administer additional RCRA and certain HSWA requirements
effective January 30, 1986 (49 Fed. Reg. 35966 (Dec. 4, 1984)); August 13, 1993
(58 Fed. Reg. 32855 (Jun. 14, 1993)).
3
<PAGE>
ATTACHMENT G
STATE NOTIFICATION CONTACTS: The following is a list of the contacts for the
Participating States as referred to in the Consent
Agreement, Sections VII and X.
1. Jennifer L. Horton, Esq.
Legal Division
Arkansas Department of Environmental Quality
8001 National Drive
P.O. Box 8913
Little Rock, Arkansas 72209
(501) 682-0892
2. Jim Ussery
Georgia Environment Protection Division
205 Butler Street, S.E.
Suite 1154
Atlanta, Georgia 30334
(404) 657-8626
3. Michelle Ryan, Esq.*
Illinois Environmental Protection Agency
1021 North Grand Avenue East
P.O. Box 19276
Springfield, Illinois 62794-9276
(217) 782-9817
4. Sarah Baron, Esq.
Office of General Counsel
Massachusetts Department of Environmental Protection
1 Winter Street, 3rd Floor
Boston, Massachusetts 02108
(617) 292-5672
5. Marni Karnowski
Minnesota Pollution Control Agency
Metro District - Major Facilities
520 Lafayette Road North
St. Paul, Minnesota 55155
(651) 296-7116
* The State of Illinois will not be requesting regular copies of documentation
required by the Consent Agreement and Final Order, but has reserved the right to
obtain specific documentation from Respondents if the need arises.
<PAGE>
6. Jeffrey C. Denison, P.E.
RCRA Facilities Branch
Bureau of Waste Management
Department of Conservation and Natural Resources
333 W. Nye Lane, Room 138
Carson City, Nevada 89706-0851
(775)687-4670 ext. 3004
7. Carrie Jacobson
Department of Environment and Natural Resources
Joe Foss Building
523 East Capitol
Pierre, South Dakota 57501-3181
(605) 773-3153
8. O.J. Wingfield
Financial Compliance Officer
Department of Environmental and Conservation
401 Church Street, 5th Floor Annex
Nashville, Tennessee 37243-1548
(615) 532-0877
9. Peter Marshall
Department of Environmental Conservation
Waste Management Division
103 S. Main Street, Center Building
Waterbury, Vermont 05671-0341
(802) 241-3868
10. Patricia Chabot
Wisconsin Department of Natural Resources
Bureau of Waste Management
101 South Webster Street
P.O. Box 7921
Madison, Wisconsin 53707
(608) 264-6015
2
<PAGE>
ATTACHMENT H
PROVISIONS TO BE CONTAINED IN BANKRUPTCY COURT
ORDER APPROVING CONSENT AGREEMENT
Pursuant to the Consent Agreement, and in connection its negotiation,
Debtors have produced and will produce documents and information to the United
States and the requesting Participating States. Certain of this information may
be confidential and proprietary under applicable law, including 40 C.F.R.
Part 2. To protect Debtors' interest in maintaining the confidentiality of such
information, it is hereby ordered, that:
a. If Debtors seek confidential treatment of a document, they
shall stamp the word "CONFIDENTIAL" conspicuously on each page of the
document. The transmittal of information designated as confidential
shall be done by letter to the United States and the Participating
States stating that the information is designated as confidential.
b. The United States and Participating States shall not use
documents and information designated as confidential pursuant to this
Order for any purpose other than with respect to or relating to the
Consent Agreement, the Bankruptcy Case, or any other legitimate law
enforcement governmental purpose.
c. The United States and the Participating States shall not
disclose or permit disclosure of documents or information designated as
confidential to any other person except their employees, consultants,
witnesses, experts (including experts' employees) engaged to work or
assist on matters relating to the Consent Agreement, the Bankruptcy
Case, or any other legitimate law enforcement
<PAGE>
governmental purpose. This Order binds any person to whom such
disclosure is made.
d. Any person who obtains access to information designated as
confidential information under this Order may make copies, duplicates,
extracts, summaries, or descriptions of the information or any portion
thereof only for work relating to the Consent Agreement, the Bankruptcy
Case, or any other legitimate law enforcement governmental purpose. All
copies, duplicates, extracts, summaries or descriptions shall be
subject to the terms of this Protective Order to the same extent and
manner as original documents.
e. Any information designated as confidential information under
this Order that is filed with any Court shall be filed in sealed
envelopes or other appropriate sealed containers on which shall be
endorsed the caption of this litigation, an indication of the nature of
the contents of such sealed envelope or container, the word
"CONFIDENTIAL," and a statement substantially in the following form:
FILED UNDER SEAL -- SUBJECT TO PROTECTIVE ORDER
This envelope, containing documents subject to a protective order that
are filed in this case by_________ (the "filing party"), should not be
opened and its contents should not be displayed or revealed except by
order of the Court or consent of the filing party.
f. If the United States or a Participating State disputes
Debtors' designation of document and information as confidential, they
may notify Debtors' of their disagreement. With respect to disputes
about documents or information provided under Paragraph 88(a), (c),
(d), (e) or other confidential financial information provided, Debtors
will then request that the Bankruptcy
2
<PAGE>
Court resolve that dispute. At least until the
dispute is resolved, the document and information will be
maintained as confidential in accordance with this Paragraph.
With respect to disputes about documents or information
provided under Paragraphs 88(b) or 97, and 98 or other
confidential environmental information, such disputes shall be
handled in accordance with the provisions of 40 C.F.R. Part 2.
g. Nothing in this Order affects a party's rights regarding use
of any document or information to which it has gained access by other
means.
3
<PAGE>
ATTACHMENT I
ENVIRONMENTAL MANAGEMENT SYSTEMS ANALYSIS
This Attachment I sets forth the terms and provisions of the
"Environmental Management Systems Analysis" referred to in Paragraph 97 of the
Consent Agreement. The definitions in the Consent Agreement apply to this
Attachment. Additional definitions for this Attachment are set forth herein.
EPA acknowledges that the deadlines set forth in this Attachment and the
Consent Agreement for this Environmental Management Systems Analysis are
predicated upon Respondents' obtaining Bankruptcy Court approval for the Consent
Agreement and retention of the Consultant Auditor (defined in paragraph 2 below)
in early September 2000. If Bankruptcy Court approval is delayed, EPA agrees
that one or more of the deadline(s) associated with this Environmental
Management Systems Analysis may need to be extended, and EPA agrees to consider
the fact of delayed Bankruptcy Court approval in good faith in determining
whether to extend any deadline. Respondents agree to exercise their best efforts
to obtain final Bankruptcy Court approval of the Consultant Auditor if they
determine such approval is necessary.
1. EPA is requiring the Environmental Management Systems Analysis to
assess Respondents' current corporate-wide environmental management systems
("EMS"). To achieve this purpose, an independent, third-party entity, acceptable
to EPA (in consultation with the Participating States) will assess Respondents'
EMS using the elements listed in Appendix I-1.
2. No later than September 1, 2000, Respondents shall provide to EPA in
writing (i) the name and address of the person or entity that it proposes to
conduct the Environmental Compliance Audit ("Consultant Auditor"); and (ii) the
Consultant Auditor's qualifications relevant to performing to Environmental
Management Systems Analysis, including, as appropriate, the Consultant Auditor's
satisfaction of the proficiency criteria described in ISO 14012 "Guidelines for
Environmental Auditing - Qualification Criteria for Environmental Auditors."
3. The Consultant Auditor may have no financial or other conflict of
interest that would prevent it from exercising independent judgment and
discipline analogous to that which a certified public accounting firm would be
expected to exercise in auditing a publicly-held corporation. If the Consultant
Auditor already is under contract to Respondents, Respondents must disclose this
to EPA. Additionally, Respondents shall disclose to EPA any long term or
significant contractual relationship they have had with the Consultant Auditor
since January 1, 1998.
4. After consulting with the Participating States, EPA will notify
Respondents promptly whether EPA approves the retention of the proposed
Consultant Auditor. If EPA disapproves the proposed Consultant Auditor,
Respondents must propose another Consultant Auditor within fifteen (15) calendar
days, and the commencement and conclusion dates for the Environmental Management
Systems Analysis set forth in Paragraph 97 of the Consent Agreement will be
<PAGE>
deemed adjusted accordingly.
5. Thirty (30) calendar days after its retention, the Consultant
Auditor will submit a proposed work plan to EPA and the Participating States for
the Environmental Management Systems Analysis. The work plan will set forth the
Consultant Auditor's schedule for completion of the Environmental Management
Systems Analysis, including the dates of on-site audit activities. In connection
with the work plan, the Consultant Auditor will be available to meet in person
with EPA and Respondents to obtain background information useful to conducting
the Environmental Compliance Audit. The work plan must specify the manner in
which the Consultant Auditor will determine the extent to which Respondents' EMS
addresses the elements listed in Appendix I-1. In particular, the Consultant
Auditor shall assess:
(a) the adequacy of Respondents internal self-assessment procedures
(e.g., self-audits), that are implemented through the current corporate-wide EMS
program;
(b) whether there is adequate implementation of the current
corporate-wide EMS program from the top management down and whether there are
identified, and adequate, lines of communication so that environmental problems
are brought to the attention of management for resolution;
(c) whether Respondents are effectively communicating environmental
requirements to their employees, contractors, or on-site service providers;
(d) whether there are observed deviations from Respondents current
written EMS requirements or procedures; and
(e) whether Respondents' re-evaluate the EMS program on a routine basis
so as to identify problems or gaps that may exist and to resolve these issues
relative to the key elements listed in Appendix I-1.
6. After consulting with the Participating States, EPA will provide
comments on the work plan within ten (10) working days of receiving it.
Respondents also may comment on the work plan. The Consultant Auditor shall have
ten (10) working days to incorporate Respondents' and EPA's comments into the
work plan or explain in the work plan why the comments have not been
incorporated. If EPA is not satisfied with Consultant Auditor's explanation for
the failure to incorporate EPA's comments, EPA will promptly notify the
Consulting Auditor and Respondents and will reserve all rights with respect to
whether the resulting Environmental Management Systems Analysis has satisfied
Paragraph 97 of the Consent Agreement.
7. Respondents will provide any documents that the Consultant Auditor
requests which bear on their evaluation of Respondents' EMS and use of the
elements listed in Appendix I-1. The foregoing sentence is subject to applicable
privileges, such as the attorney/client privilege. Respondents also will give
the Consultant Auditor physical access to pertinent operations as necessary to
conduct the Environmental Management Systems Analysis.
8. The Consultant Auditor shall complete its investigation so that a
written document setting forth the conclusions and recommendations of the
Consultant Auditor. (the "Audit Report") in draft form can be presented to EPA
and the Participating States by April 15, 2001. Respondents also may comment on
the Audit Report. The Consultant Auditor shall incorporate
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Respondents' and EPA's comments into the Audit Report or explain in that Report
why the comments have not been incorporated. If EPA is not satisfied with
Consultant Auditor's explanation for the failure to incorporate EPA's comments,
EPA will promptly notify the Consulting Auditor and Respondents and will reserve
all rights with respect to whether the resulting Environmental Management
Systems Analysis has satisfied Paragraph 97 of the Consent Agreement.
9. The final Audit Report shall contain at least the following:
(a) audit scope, including time period;
(b) the dates on which any on-site portion of the Environmental
Management Systems Analysis was conducted;
(c) identification of audit team members;
(d) summary of audit process, including identification of any obstacles
encountered;
(e) discussion of Respondents' implementation of the elements listed on
Appendix I-1, including a discussion of any implementation of the elements
occurring during the audit process and the potential or actual EMS program gaps
relative to Appendix I-1;
(f) if the Consultant Auditor concludes that Respondents have not
implemented or adequately implemented the elements listed on Appendix I-1,
recommendations of the Consultant Auditor for such implementation; and
(g) the Consultant Auditor's certification that the Environmental
Management Systems Analysis was conducted in conformity to the Consent
Agreement.
10. If the Consultant Auditor concludes that any deadline in this
Attachment or the Consent Agreement pertaining to the Environmental Management
Systems Analysis should be extended, it shall notify both Respondents and EPA.
EPA's decision whether to grant additional time shall be final and
non-reviewable.
11. Within thirty (30) calendar days of receiving the final Audit
Report, Respondents shall incorporate all reasonable Consultant Auditor's
recommendations into their "Corporate Compliance Policies and Procedure Manual"
(the "Manual"). If Respondents conclude that implementation of a recommendation
would not be reasonable, they must notify EPA in writing, so that further
negotiations with EPA regarding the matter may occur. Respondents shall provide,
prior to its discussion with EPA regarding the recommendations of the Consultant
Auditor, a written explanation as to why they plan to implement the
recommendation(s) with modification or why they do not plan to implement the
recommendation (s). Upon incorporation of the Consultant Auditor's
recommendations into the Manual, Respondents shall use the updated Manual. Six
months thereafter, Respondents will, in consultation with the Consultant
Auditor, review their implementation of the Consultant Auditor's recommendations
and determine if further changes need to be made in their EMS. Respondents will
inform EPA and the Participating States of their findings and of any revisions
to the Manual.
12. Until December 31, 2005, EPA and the Participating States may
review the Manual on request and, upon reasonable notice, confer with
Respondents about it and implementation of Respondents' EMS program.
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13. Any submission to EPA (and the Participating States) shall not be
interpreted as a waiver or limitation of the EPA's or the United States (or the
Participating States) authority to enforce any federal, state or local statute
or regulation including permits.
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Attachment I: Appendix I-1
APPENDIX I-1
KEY ENVIRONMENTAL MANAGEMENT SYSTEM ELEMENTS
1. Environmental Policy
a. This policy, upon which the EMS is based, must clearly communicate
management commitment to achieving compliance with applicable federal,
state, and local environmental statues, regulations, enforceable
agreements, and permits (hereafter, "environmental requirements") and
continuous improvement in environmental performance. The policy should also
state management's intent to provide adequate personnel and other resources
for the EMS.
2. Organization, Personnel, and Oversight of EMS
a. Describes, organizationally, how the EMS is implemented and maintained.
b. Includes organization charts that identify units, line management, and
other individuals having environmental performance and regulatory
compliance responsibilities.
c. Identifies and defines duties, roles, responsibilities, and authorities of
key environmental program personnel in implementing and sustaining the EMS
(e.g., could include position descriptions and performance standards for
all environmental department personnel, and excerpts form others having
specific environmental program and regulatory compliance responsibilities).
d. Includes ongoing means of communicating environmental issues and
information to all organization personnel, on-site service providers, and
contractors, and for receiving and addressing their concerns.
3. Accountability and Responsibility
a. Specifies accountability and responsibilities of organization's management,
on-site service providers, and contractors for environmental protection
practices, assuring compliance, required reporting to regulatory agencies,
and corrective actions implemented in their area(s) of responsibility.
b. Describes incentive programs for managers and employees to perform in
accordance with compliance policies, standards and procedures.
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c. Describes potential consequences for departure from specified operating
procedures, including liability for civil/administrative penalties imposed
as a result of noncompliance.
4. Environmental Requirements
a. Describes process for identifying, interpreting, and effectively
communicating environmental requirements to affected organization
personnel, on-site service providers, and contractors, and ensuring that
facility activities conform to those requirements. Specifies procedures for
prospectively identifying and obtaining information about changes and
proposed changes in environmental requirements, and incorporating those
changes into the EMS.
b. Establishes and describes processes to ensure communication with regulatory
agencies regarding environmental requirements and regulaory compliance.
5. Assessment, Prevention, and Control
a. Identifies an ongoing process for assessing operations, for the purposes of
preventing and controlling releases, ensuring environmental protection, and
maintaining compliance with statutory and regulatory requirements. This
section shall describe monitoring and measurements, as appropriate, to
ensure sustained compliance. It shall also include identifying operations
and waste streams where equipment malfunctions an deterioration, operator
errors, and discharges or emissions may be causing, or may lead to: (1)
releases of hazardous waste or other pollutants to the environment, (2) a
threat to human health or the environment, or (3) violations of
environmental requirements.
b. Describes process for identifying operations and activities where
documented standard operating practices (SOPs) are needed to prevent
potential violations or pollutant releases, and defines a uniform process
for developing, approving and implementing the SOPs.
c. Describes a system for conducting and documenting routine, objective,
self-inspections by department supervisors and trained staff, especially at
locations identified by the process described in a. above.
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d. Describes process for ensuring input of environmental requirements (or
concerns in planning, design, and operation of ongoing, new, and/or
changing buildings, processes, maintenance activities, and products.
6. Environmental Incident and Noncompliance Investigations
a. Describes standard procedures and requirements for internal and external
reporting of potential violations and release incidents.
b. Establishes procedures for investigation, and prompt and appropriate
correction of potential violations. The investigation process includes
root-cause analysis of identified problems to aid in developing the
corrective actions.
c. Describes a system for development, tracking, and effectiveness
verification of corrective and preventative actions.
d. Each of these procedures shall specify self-testing of such procedures,
where practicable.
7. Environmental Training, Awareness, and Competence
a. Identifies specific education and training required for organization
personnel, as well as process for documenting training provided.
b. Describes program to ensure the organization employees are aware of its
environmental policies and procedures, environmental requirements, and
their roles and responsibilities within the environmental management
system.
c. Describes program for ensuring that personnel responsible for meeting and
maintaining compliance with environmental requirements are competent on the
basis of appropriate education, training, and/or experience.
8. Environmental Planning and Organization Decision-Making
a. Describes how environmental planning will be integrated into organizational
decision-making, including plans and decisions on capital improvements,
product and process design, training program, and maintenance activities.
b. Requires establishing written targets, objectives, and action plans by at
least each operating organizational subunit with environmental
responsibilities, as
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appropriate, including those for contractor operations conducted at the
facility, and how specified actions will be tracked and progress reported.
Targets and objectives must include achieving and maintaining compliance
compliance with all environmental requirements.
9. Maintenance of Records and Documentation
a. Identifies the types of records developed in support of the EMS (including
audits and reviews), who maintains them and where, and protocols for
responding to inquiries and requests for release of information.
b. Specifies the data management systems for any internal waste tracking,
environmental data, and hazardous waste determinations.
10. Pollution Prevention Program
a. Describes an internal program for preventing, reducing, recycling, reusing,
and minimizing waste and emissions, including procedures to encourage
material substitutions. Also includes mechanisms for identifying candidate
materials to be addressed by program and tracking progress.
11. Continuing Program Evaluation and Improvement
a. Describes program for periodic (at least annually) evaluation of the EMS,
including incorporating the results of the assessment into program
improvements, revisions to the manual, and communicating findings and
action plans to affected employees, on-site service providers, and
contractors.
b. Describes a program for ongoing evaluation of facility compliance with
environmental requirements, and should specify periodic compliance audits
by an independent auditor(s). Audit results are reported to upper
management and potential violations are addressed through the process
described in element 6 above.
12. Public Involvement/Community Outreach
a. Describes a program for ongoing community education and involvement in the
environmental aspects of the organization's operations and general
environmental awareness.
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ATTACHMENT J
ENVIRONMENTAL COMPLIANCE AUDIT
This Attachment J sets forth the terms and provisions of the
"Environmental Compliance Audit" referred to in Paragraph 98 of the Consent
Agreement. The definitions in the Consent Agreement apply to this Attachment.
Additional definitions for this Attachment are set forth herein.
EPA acknowledges that the deadlines set forth in this Attachment and
the Consent Agreement for this Environmental Compliance Audit are predicated
upon Respondents' obtaining Bankruptcy Court approval for the Consent Agreement
and retention of the Consultant Auditor (defined in paragraph 2 below) in early
September 2000. If Bankruptcy Court approval is delayed, EPA agrees that one or
more of the deadline(s) associated with this Environmental Compliance Audit may
need to be extended, and EPA agrees to consider the fact of delayed Bankruptcy
Court approval in good faith in determining whether to extend any deadline.
Respondents agree to exercise their best efforts to obtain final Bankruptcy
Court approval of the Consultant Auditor if they determine such approval is
necessary.
1. EPA is requiring the Environmental Compliance Audit to determine and
ensure Respondents' compliance with the applicable provisions of RCRA and TSCA.
The Environmental Compliance Audit will cover the period January 1, 2000 through
the date the Consultant Auditor's investigation is complete.
A. The Environmental Compliance Audit will occur at the following
facilities with respect to the requirements of TSCA:
Tucker, Georgia
Pecatonica, Illinois
Kansas City, Missouri
Twinsburg, Ohio
Greenbrier, Tennessee
Aragonite, Utah
Deer Park, Texas
B. The Environmental Compliance Audit will occur with respect to the
requirements of RCRA at the drum shredding operations at the following
facilities:
Aragonite, Utah
Deer Park, Texas
Buttonwillow, California
Westmorland, California
New Castle, Kentucky
Chattanooga, Tennessee
<PAGE>
The facilities listed in this paragraph are hereinafter referred to as the
"Audit Facilities."
2. No later than September 1, 2000, Respondents shall provide to EPA in
writing (i) the name and address of the person or entity that it proposes to
conduct the Environmental Compliance Audit ("Consultant Auditor"); and (ii) the
Consultant Auditor's qualifications relevant to performing the Environmental
Compliance Audit.
3. The Consultant Auditor may have no financial or other conflict of
interest that would prevent it from exercising independent judgment and
discipline analogous to that which a certified public accounting firm would be
expected to exercise in auditing a publicly-held corporation. If the Consultant
Auditor already is under contract to Respondents, Respondents must disclose this
to EPA. Additionally, Respondents shall disclose to EPA any long term or
significant contractual relationship it had with the Consultant Auditor since
January 1, 1998.
4. After consulting with the Participating States, EPA will notify
Respondents whether EPA approves the retention of the proposed Consultant
Auditor. If EPA disapproves the proposed Consultant Auditor, Respondents must
propose another Consultant Auditor within fifteen (15) calendar days, and the
commencement and conclusion dates for the Environmental Compliance Audit set
forth in Paragraph 98 of the Consent Agreement will be deemed adjusted
accordingly.
5. Thirty (30) calendar days after its retention, the Consultant Auditor
will submit a proposed work plan to EPA and the Participating States for the
Environmental Compliance Audit. The work plan will set forth the Consultant
Auditor's schedule for completion of the Environmental Compliance Audit,
including the dates of on-site audit activities. In connection with the work
plan, the Consultant Auditor will be available to meet in person with EPA and
Respondents to obtain background information useful to the conduct of the
Environmental Compliance Audit. EPA will, if it deems it necessary, provide a
list of key action items (i.e., those areas under the regulatory scheme that EPA
and the Participating States deem of concern) that need to be assessed under the
Environmental Compliance Audit. These action items will be incorporated into the
Consultant Auditor's work plan.
6. After consulting with the Participating States, EPA will provide
comments on the work plan within ten (10) working days of receiving it.
Respondents also may comment on the work plan. The Consultant Auditor shall have
ten (10) working days to incorporate Respondents' and EPA's comments into the
work plan or explain in the work plan why the comments have not been
incorporated. If EPA is not satisfied with the Consultant Auditor's explanation
for the failure to incorporate EPA's comments, EPA will promptly notify the
Consulting Auditor and Respondents and will reserve all rights with respect to
whether the resulting Environmental Compliance Audit has satisfied Paragraph 98
of the Consent Agreement.
7. Respondents will provide any documents that the Consultant Auditor
requests which bear on determining the Audit Facilities' compliance with TSCA or
RCRA, as the case may be, subject to applicable privileges, such as the
attorney/client privilege. Respondents also will
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provide the Consultant Auditor physical access to pertinent operations at the
Audit Facilities.
8. The Consultant Auditor shall complete its investigation of the Audit
Facilities so that a written document setting forth the conclusions and
recommendations of the Consultant Auditor (the "Audit Report") in draft form can
be presented to EPA and the Participating States by April 15, 2001(1).
Respondents and EPA may provide comments to the Consultant Auditor on this draft
Audit Report, but must do so in a timely manner so that the Consultant Auditor
can provide a final Audit Report to Respondents, EPA and the Participating
States by May 15, 2001. A copy of the draft and final Audit Report will not be
released to the Participating States unless the Participating States agree to
the terms in paragraph 11 of this Attachment. The Consultant Auditor shall
incorporate Respondents' and EPA's comments in the final Audit Report or explain
in that Report why the comments have not been incorporated. If EPA is not
satisfied with Consultant Auditor's explanation for the failure to incorporate
EPA's comments, EPA will promptly notify the Consulting Auditor and Respondents
and will reserve all rights with respect to whether the resulting Environmental
Compliance Audit has satisfied Paragraph 98 of the Consent Agreement.
9. The final Audit Report shall contain at least the following:
A. Audit scope, including time period;
B. The dates on which the on-site portions of the Environmental
Compliance Audit were conducted;
C. Identification of audit team members;
D. Identification of Respondents' personnel who observed the on-site
portions of the Environmental Compliance Audit;
E. Summary of audit process, including identification of any obstacles
encountered;
F. Identification of all non-compliance with TSCA or RCRA, as the case
may be, including the bases for that identification;
G. If the Consultant Auditor concludes that the identified
non-compliance stems from management systems deficiencies, the identification of
such deficiencies;
H. Identification of any such non-compliance that Respondents corrected
prior to release of the final Audit Report(2), a description of the corrective
measure and when it occurred; and
I. The Consultant Auditor's certification that the Environmental
Compliance Audit was conducted in conformity to the Consent Agreement.
10. If the Consultant Auditor concludes that any deadline in this
Attachment or the Consent Agreement pertaining to the Environmental Compliance
Audit should be extended, it
----------------
(1) Participating States do not receive a draft or final Audit Report regarding
the Audit Facilities set forth in Paragraph 1(A) of this Attachment.
(2) Noncompliance corrected by Respondents prior to the release of the final
Audit Report shall be subject to the statements regarding the imposition of a
civil penalty as set forth in Paragraph 11 of this Attachment.
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shall notify both Respondents and EPA. EPA's decision whether to grant
additional time shall be final and non-reviewable.
11. Within sixty days of receiving the final Audit Report, Respondents
shall correct or arrange for the correction of any noncompliance at the Audit
Facilities identified in the final Audit Report and address any management
systems deficiencies that the Audit Report has identified. During this period,
EPA and the Participating States that have agreed to be bound by this paragraph
will not initiate an enforcement action to penalize Respondents for the
identified noncompliance provided, however, that Respondents agree to toll any
applicable statutes of limitations. EPA and the Participating States reserve the
right to impose penalties at the conclusion of the correction period for any
noncompliance that has been identified in the Audit Report. The preceding
sentence specifying a correction period does not apply if EPA or the
Participating States have independent knowledge of the noncompliance.
12. Nothing in this Attachment restricts EPA or the Participating
States from enforcing any Environmental Law against Respondents at the Audit
Facilities.
13. Any submission to EPA (and the Participating States) shall not be
interpreted as a waiver or limitation of the EPA's or the United States (or the
Participating States) authority to enforce any federal, state or local statute
or regulation including permits.
4
