SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
November 23, 1998
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Date of Report
(Date of earliest event reported)
Consolidated Eco-System, Inc.
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(Exact name of Registrant as specified in its charter)
Idaho
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(State or other jurisdiction of incorporation)
0-25970 82-0464589
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(Commission file number) (IRS employer identification no.)
3201 West 65th Street
Little Rock, AR 72209
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(Address of principal executive offices) (Zip code)
(501) 570-0356
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(Registrant's telephone number, including area code)
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Item 5. Other Information.
On November 23, 1998, Consolidated Eco-Systems, Inc. was provided with a
general notice of potential liability by the United States Environmental
Protection Agency ("EPA"). The notice was given regarding the release or threat
of release of hazardous substances, pollutants and contaminants into the
environment from the premises in Wooster, Ohio which had been previously
utilized by the Company's 7-7, Inc. subsidiary. 7-7, Inc. was effectively closed
in March, 1998 by the action of one of its primary creditors. The notice
specified that the EPA was planning to spend public funds to investigate and
control the releases or threats of release of the hazardous substances,
pollutants, and contaminants.
The notice given by the EPA relates to chemicals and environmental samples
left in an on-site laboratory at the former 7-7, Inc. premises, chemicals in a
flammable storage shed at the former 7-7, Inc. premises, and roll-off boxes and
material in roll-off boxes left on the premises of the former 7-7, Inc.
premises.
The Company believes that there are approximately 100 roll-off cars, each
holding either 20 or 30 cubic yards, on the former 7-7, Inc. premises. It is
believed that many of the roll-off cars contain coal tar wastes or recycled coal
tar wastes.
Without limiting its defenses, Consolidated Eco-Systems, Inc. believes
that its subsidiary, 7-7, Inc., may be responsible for costs in the matter.
Consolidated Eco-Systems, Inc. is attempting to negotiate a resolution with the
EPA.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CONSOLIDATED ECO-SYSTEMS, INC.
/s/ James J. Connors, Jr.
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James J. Connors, Jr.
President
Date: December 7, 1998
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Re: 7-7 Merger Site
Wooster, Ohio
General Notice of Potential Liability
The United States Environmental Protection Agency (U.S. EPA) has documented the
release or threat of release of hazardous substances, pollutants and
contaminants into the environment from the above-referenced facility, and is
planning to spend public funds to investigate and control these releases. This
action will be taken by U.S. EPA pursuant to the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, 42 U.S.C. ss. 9601 et seq.
(CERCLA), as amended by the Superfund Amendments and Reauthorization Act of
l986, Pub. L No. 99-499, 100 Stat. 1613 (1986) (SARA), unless U.S. EPA
determines that such action will be done properly by a responsible party or
parties. Responsible parties under CERCLA include the current and former owners
and operators of the facility, persons who generated the hazardous substances,
and persons who were involved in the transport, treatment, or disposal of the
hazardous substances at the facility. Under Section 107(a) of CERCLA, where U.S.
EPA uses public funds towards the cleanup of the hazardous substances,
responsible parties are liable for all costs associated with the removal or
remedial action and all other necessary costs incurred in cleaning up the
facility, including investigation, planning, and enforcement costs.
U.S. EPA is currently planning to conduct the following actions at the
above-referenced facility:
1. All of the chemicals and environmental samples in the on site laboratory
will be properly disposed.
2. All of the chemicals in the flammable storage shed will be properly
disposed.
3. As needed, the roll-off boxes will be secured from the elements.
4. Material in all roll-off boxes will be characterized and hazardous
materials will be properly disposed.
U.S. EPA has received information that your organization may have owned or
operated the facility or generated or transported hazardous substances that were
disposed of at the facility. By this letter, U.S. EPA notifies you of your
potential liability with regard to this matter and encourages you, as a
potentially responsible party, to agree to reimburse U.S. EPA for costs incurred
to date and to voluntarily perform or finance the response activities which U.S.
EPA has determined or will determine are required at the facility. U.S. EPA is
willing to discuss with you the entry of an appropriate administrative consent
order under which you would perform or finance response activities and reimburse
U.S. EPA for its costs. If a consent order cannot be promptly concluded,
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U.S. EPA may issue a unilateral order under Section 106 of CERCLA, requiring you
to perform specified work. Under Sections 106 and 107 of CERCLA, you may be
liable for reimbursement of U.S. EPA's costs, for statutory penalties, and for
treble damages for noncompliance with such an order.
Because of the conditions described above, U.S. EPA believes that response
activities at the Site must be initiated as quickly as possible. Therefore, U.S.
EPA does not intend to utilize the special notice procedures available under
Section 122(e) of CERCLA.
As a potentially responsible party, you should notify U.S. EPA in writing within
fourteen (14) days of receipt of this letter of your willingness to perform or
finance the activities described above and to reimburse U.S. EPA for its costs.
Your response should be sent to:
Carol Graszer Ropski
U.S. EPA Region 5
Emergency Enforcement & Support Section SE-5J
77 West Jackson Boulevard
Chicago, IL 60604-3590
If U.S. EPA does not receive a timely response, U.S. EPA will assume that your
organization does not wish to negotiate a resolution of its potential
responsibility in connection with the facility and that your organization has
declined any involvement in performing the response activities.
Your response should indicate the appropriate name, address, and telephone
number for further contact with you. If you are already involved in discussions
with State or local authorities or involved in a lawsuit regarding this
facility, you may continue such activities as you see fit. This letter is not
intended to advise you or direct you presently to restrict or discontinue any
such activities already underway; however, you are advised to report the status
of those discussions or actions in your response to this letter and to provide a
copy of your response to any other parties involved in those discussions or
actions.
If you need further information regarding this letter, you may contact Stuart
Hersh of the U.S. EPA Office of Regional Counsel at (312)886-6235.
Due to the nature of the problem at this facility and the attendant legal
ramifications, U.S. EPA strongly encourages you to submit a written response
within the time frame specified herein. We hope you will give this matter your
immediate attention.
Sincerely yours,
/s/ Richard C. Karl
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Richard C. Karl, Chief
Emergency Response Branch
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