Shell Oil Company, et al. (Board decision, January 30, 2008)

Plain-English summary

Shell Oil Company and related operating entities disclosed financial-responsibility violations under the Resource Conservation and Recovery Act and Safe Drinking Water Act at 17 facilities. The violations involved requirements for closure, post-closure care, third-party liability, and plugging and abandonment. The Environmental Appeals Board approved and incorporated the Consent Agreement, ordered Shell to maintain compliance, and resolved the civil claims covered by the agreement. Shell agreed to pay a $153,949 civil penalty within 30 days of the Final Order.

Decision snapshot

• Cited authorities: 42 U.S.C. §§ 6924(a), 6924(f), and 300h-2(c); 40 C.F.R. §§ 22.18(b), 22.31(c), 264.143(f), 264.145(f), 264.147(f), and 144.63(f).
• Outcome: The Consent Agreement was approved and incorporated into a Final Order, with a $153,949 civil penalty.
• Key point: Shell's voluntary disclosures qualified for Audit Policy mitigation, but the agreement required payment of the economic benefit identified by EPA and continuing compliance.

Full text (EPA EAB public release)

                           T]MTED STATES
                 EITTVIRONMENTALPROTECTION

IN THE MATTER OF: ,\t ? r_1?ililg

Shell Oil Company,et al. DocketNo. OECA

One Shell Plaza
P.O.Box 2463
Houston,TX 77252-2463

                 Respondent.

                                 X'INAL ORDER

   WhereasComplainan!the United StatesEnvironmentalProtectionAgency,and

                                                    by counsel,haveconsentedto

Responden!Shell Oil Company the Partiesherein,represented

the entry of this Final Order,and agreeto comply with the ConsentAgreementsignedby the

partiesand incorporatedherein;and

   WhereasEPA causeda Notice for Public Commenton the proposedissuanceof this Final

Orderto be publishedat 72 Fed.Reg.32,657on June13,2007,asrequiredby the SafeDrinking

WaterAct, Section1423(c),42 U.S.C.g 300h-2(c),and40 C.F.R.$$ 22.45@)and(c),the

public notice andcommentperiod closedon July 13, 2007. Two public commentswerereceived

andresponded
to by EPA.

   The ConsentAgreementis herebyapprovedand incorpomtedby referenceinto this Final

Order. The Respondentis herebyorderedto comply with the termsofthe ConsentAgreement,

effectiveimmediately.

so ORDERED.
i i,t
;,/ ,1 / | 1 i"
s, t(t"fl.d U.)-t'"'

o*", i lg/L,t
EnvironmentalAppealsJudge
EnvironmentalAppealsBoard
US EnvironmentalProtectionAsencv

                             CERTIF'ICATE OF SERVICE

 I herebycertifythata copyofthe foregoingFinalOrderin thematterof ShellOil Co.,

DocketNo. OECA-2005-0081, wassentto thefollowingpersonsin themannerindicated:

By FederalExpress: KimberlyLesniak
SeniorLegalCounsel
ShellOil Company
910l,ouisiana
St.,Room4870
Houston,Texas77O02

By Inter-offrceMail: L),nnS. Holloway(22494)
U.S.Environmental ProtectionAgency
1200Pennsylvania Ave.,N.W.,Room4144
*"\"', D.c.20460-0001

      JAN3 0 2008


                                                              t=l

                                                              FT
                                                              -t_       ,ll i\i -?0 ?it.!

                                                                c$R(t
                         UNITED STATES                          INIIIALS
                ENVIRONMENTAL PROTECTION A

INTHE MATTER OF: )
)
ShellOil Company,et al. ) DocketNo. OECA 2005-0081
)
OneShellPlaza )
P.O.Box 2463 )
Houston,TX 77252-2463 )
)
Respondent. )
)

                            CONSENTAGREEMENT

                              I. PreiiminarvStatement

1. Complainant,the United StatesEnvironmentalProtectionAgency(EPA) and Shell Oil
   company et al. (hereinafter"shell" or "Respondent"),having consentedto the termsof this ConsentAgreement(Agreernent),andbeforethe taking of anytestimonyand without the
   of issuesoifact or law, agreeto complywith thetermsof this A$eementand
   aclju6ication
   attachedproposedFinal Orderherebyincorporatedby reference'

2. On or aboutApril g,z}Ol,pursuantto EPA's Policy on Incentivesfor Self-Policing(Audit
   Policy),65 Fed.Reg.19,618(April 1l, 2000),Respondent submittedits initial voluntary disclosureto EPA regar<lingpotintial violations of the ResourceconservationandRecoveryAct (RCRA),Sections30b4(a)& (t), 42 U.S.C.$$ 692a(a)& (t), andthe SafeDrinkingWaterAct
   its reviewof the.
   iSnWe), Section1421(b),42 U'S.C.$ 300h(b).ln orderto compiete disclosure,EPA requestedadditionalinformation from Respondent.Respondentsubmitted additionalclarifoingdisclosureson August26,2004,December9,2004,andApril 13'2005'

3. Respondent disclosedthatit failedto satisfucertainfinancialresponsibilityrequiranents
   underRCRA for closure,post-closurecare,andthird-party liability, andunderSDwA fot pluggingandabandonment, at seventeen (17) facilitiesbetweenMarch30,2004andMay 28' 2004. Thefacilitieswherethe disclosedviolationsoccurredarelistedin AttachmentA, hereby
   by refetence.
   incorporated

                                   II. Jurisdiction
   

4. Thepartiesagteeto the commencement andconclusionof this causeof actionby
   issuanceof this Agreement,asprescribedby EPA's Consolidated RulesofPracticeGoverning the AdministrativeAssessmentof Civil Penalties,40 C.F.R.Part22, andmore specificallyby 40 c.F.R.S22.r8(b).

5. Respondentagreesthat Complainanthasthe authorityto bring an administrativeaction,
   baseduponthe factswhichRespondent disclosed,for theseviolationsandfor the assessment
   of
   civil penaltiespursuantto RCRA Sections3008(a)& (g), 42 U.S.C.$ 6928(a)& (g)' andSDWA Section1423(c),42 U.S.C.$ 300h-2(c).

6. Respondent hearingon any
   herebywaivesits right to requestajudicial or administrative
   issueof fact or law setforlh in this Agreementand the right to the
   appeal proposedFinal Order
   accompanying this Agreement.40 C.F.R.$ 22.18O).

7. For purposesof this proceeding, Respondent admitsthattheEnvironmental AppealsBoard
   @AB) has jurisdictionoverthesubjectmatterwhich is the basisof this andpersonal
   Agreement
   jurisdictionovertheRespondent.40 C.F.R.$ 22.18(b).

      admitsthe factsstipulatedto in this Agreement.40 C.F.R.$ 22.18(b)'
   

   5. Respondent

                              III. Statement
                                           of Facts
      

8. Respondent is ShellOil Companyr,a globalgroupof energyandpetrochemical
   companies
   with corporateoflicesin Houston,Texas.

9. Pursuanto the EPA's Audit Policy, Respondentherebyadmitsthe factualdeterminations
   referenced specificallycertifiesto the followingfactsuponwhich
   in this Section.Respondent
   thisAgreement is based:

                                                                    underRCRA for
         a. theviolationsof certainfinancialresponsibilityrequirements
   
    t Shell submitteddisclosureson behalf of Motiva EnterprisesLLC (Motiva), with which
   

   it has a joint ventue; its subsidiaryEquilon EnterprisesLLC (Equilon); its limited paftler Shell ChemicalLP; and its subsidiaryCriterion CatalystsTechnologies,LP (Criterion Catalysts). Motiva is the owner/operator of the Delaware City Refinery, Convent Plant, and Port Arthur Refinery. Equilon is the owner/operatorof the Martinez Refining Co., Los Angeles Refining Co, CarsonMarine Terminal, Wood River Refining Co., OdessaRefining Co., and Puget Sound Refining Co. Shell Chemical LP is the owner/operatorof Norco ChemicalPlant-West Site, Bellpte Plant, and Westhollow Technology Center. Criterion Catalysts is the owner/operator of the three Criterion Catalysts facilities in hrdiana. Shell is the owner/operator of the Catalyst Recoveryoflouisiana and Shell Deer Park Refining Co.

closure,post-closurecare,andthird-partyliability, andunderSDWA for plugging andabandonment, occurringbetweenMarch30, 2004andMay28,2004,aI 17 facilities,werediscoveredpursuanto technicalreviewandwork requiredby Shell's parentcorporationto relatedto years
restatecertainoil andgasreserves
prior to 2003;

b. theviolationswerediscovered
voluntarilyl

c. the initial violationsweredisclosedto EPA on April 9, 2004in writing, and subsequent disclosures providingadditionalinformationon August26,2004, December9, 2004,andApril 13,2005werealsoin writing;

d. the violationsweredisclosedprior to commencement of an agencyinspection or investigation,noticeofa citizensuit,filing of a complaintby a third party, reporting ofthe violations by a 'lwhistleblower" employee,or imminent discovery by a regulatoryagency;

e. theviolationshavebeencorrectedandtheRespondent is in full compliance with RCRA Sections3004(a)& (t), 42 U.S.C.$ 692a@)& (t); the implementing regulationsat 40 C.F.R.$$ 264.143,264.145,264.147; andthe implementing stateregulationsat 22 Cal.Codeof Reg. (Califomia);
66264,66265 Del' Admin.
Code?-1000,Part264,SubpartH (Delaware);35 lll. Adm. Code,Pafl 724, Subpt.H (Illinois);LAC 33 PartV. (Loursiana);30 TexasAdmin. Code,Chp.37 (Texas);andWAC 173-303-620 (Washington); andSDWA Section1421(b),42 U.S.C.$ 300h(b),andthe implementingregulationsat 40 C.F.R.$ 144'63,with respecto theviolationssetforth in this Agreement;

f. appropriate of theviolations;
stepshavebeentakento preventa recurrence

g. the specificviolations(or closelyrelatedviolations),identifiedin Attachment A, havenot occunedwithin threeyearsof thedateof disclosureidentifiedin Paragraph1.2.above,at the samefacilities that arethe subjectof this Agreement, andhavenot occurredwithin five yearsofthe dateofdisclosureidentifiedin Paragraph I.2. above,aspart ofa pattem,at multiplefacilitiesownedor operated by theRespondent.For thepurposesofthis subparagraph g., a violationis:

   (l) anyviolationof federal,state,or localenvironmentallaw identifiedin
                             order,consentagreement
   ajudicial or administrative                       or order,complaint,
   noticeofviolation,convictionor pleaagreemenl;  or

   (2) anyactor omissionfor whichtheRespondent     haspreviouslyteceived
   penaltymitigation from EPA or a stateor local agency. Respondenthas
   no knowledgethatviolationsotherthanthosecoveredin this Agreement


                (or closelyrelatedviolations),haveoccurredwithin thepastthreeyearsat
                the samefacilities;nor arethe specificviolationsthat arethe subjectof
                this Agreementpartof a patternofviolationsby Respondent's    parent
                organization whichhaveoccurredoverthepastfive years;

         h. the violationshavenot resultedin seriousactualharmnor presentedan
         imminent and substantialendangerment   to humanhealthor the environment,and
                                                                           FinalOrder
         theydid not violatethe specifictermsofanyjudicial or administrative
         or Agreement;and

         i. Respondenthascooperatedasrequiredby EPA by providing the information
         neededto determinethe applicability of the Audit Policy.

                             IV. Conclusions
                                           of Law

1. For purposesof this Agreement,Respondent
   is a personwithin the meaningof RCRA
   Section1004(15),42 U.S.C.$ 6903(15),and40 C.F.R.g 260.10,andSDWA Section1401(12), 42U.S.C.$300(12).

2. Pursuantto Sections2002and3004of RCRA, 42 U.S.C.$$ 6912attd6924,EP4
   promulgatedrulespertainingto ownersalldlor operatorsofheatment, storageanddisposa- facilitiesassetforth at 40 C.F.R.Parts264 utd 265.

3. Pursuanro Sections3004(a)&(t) of RCRA,42 U.S.C.$$ 692a(a)&(t), EPA promulgated
   rulespertainingto financialresponsibilityandtheserequirementsare setforth in 40 C.F.R.Parts 264 ard 265,.Subpart H. Thoseruleswereadoptedby the Statesof Califomia,Delaware, Illinois, Louisiana,Texas,andWashinglon.See22 Cal.CodeofReg.66264,66265(Califomia); Del. Admin. Code7-1000,Part264,SubpartH (Delaware);35 Il1.Adm. Code,Fart 724,Subpt. H (Illinois);LAC 33 PartV. (Louisiana);30 TexasAdmin. Code,Chp.37 (Texas);andWAC
   | 73-303-620(Washington).

4. Pursuantto Section3006(b)of RCRA,42 U.S.C.$ 6926(b),the following Statesreceived
   final authorizationfrom EPA to implementandenforcea hazardouswasteprogramin lieu ofthe federalprogramon thedatesindicated:Califomia(Iuly 23,1992);Delaware(June8, 1984); Illinois (January30, 1986);Louisiana(Jan.24, 1985);Texas(Dec.12,1984);andWashington (Jan.30, 1986).

5. The Statehasprimary responsibilityfor implementingits federally-authorizedhazardous
   wasteprogram. However,EPA retainsthe authorityto exerciseits enforcementauthorities, includingtakingactionunderSection3008(a)of RCRA,42 U.S.C.$ 6928(a).40 C.F.R. S 272.400(Delaware);5 272.701([linois); S272.951(Louisiana);and$ 272.2201(Texas).

6. Pursuanto Section3008(a)(2)of RCRA, 42U.5.C. $ 6928(aX2),EPA hasgivennoticeof

this actionto the States.

7. Pursuantto Section3008(h)of RCRA, 42 U.S.C.$ 6928(h),EPA mayissueadminishative
   ordersrequiring correctiveaction or suchotherresponsemeasuresasEPA may deemnecessary to protecthumanhealthor the environment.EPA's authorityunderthis sectionincludes,among other things,the authorityto requirefinancial assurarcefor correctiveaction.

8. Pursuantto Section1421(b)of SDWA,42 U.S.C.$ 300h(b),EPA promulgated rules
   pertainingto ownersand/oroperatorsofClassI hazardous
   wasteinjectionwells assetforth at 40
   C.F.R.Part144.

9. Pursuantto Section1421of SDWA,42 U.S.C.$ 300hO),EPA promulgated rulespertaining
   to financial responsibilityandtheserequirernentsareset forth in 40 C.F.R.Parl 144,SubpartF.

10. Pusuantto Section1423(a)(2)of SDWA, 42 U.S.C.$ 300h-2(a)(2), EPA hasprimary
    enforcement
    responsibilityfor ClassI hazardous
    wasteinjectionwells in hrdiana.40 C.F.R.
    $ 147.7s1(a).

11.40C.F.R.$264.143(0(1)establishesthecriteriathatanowneroroperatorofatreatment, storageor disposalfacility must meetto satisfothe financial test andcorporateguaranteefor closure.Section264.143(f)(5) providesthat aftertheinitial submissionofthe documents identifiedby $ 264.143(D(3) asnecessary to demonstrate thatthe owneror operatormeetstlre financial test or corporateguarantee,the owneror operatormust sendupdatedinformationto the RegionalAdministratorwithin 90 daysafterthecloseof eachsucceeding fiscalyear. (The documents requiredby $ 264.143(0(3)arethe ChiefFinancialOfficer'sletter;theindependent CertifiedPublicAccormtant'sreport;andthe independent CertifiedPublicAccountant'special rcport).See22Cal.CodeofReg.66264.l43(D,66265.143(D (Califomia);Del.Admin. CodeT- 1000264-264.143(f) (Delaware);35Il1.Adm. Code724.243(l(Iliinois);LAC 33:V.3707.F (Louisiana);30 TexasAdmin. Code,$ 37.251(Texas);andWAC 173-303-620(4) (Washington).

12.40C.F.R.$264.145(0(1)establishesthecriteriathatanowneroroperatorofatreatnent, storageor disposalfacility must meetto satisfuthe financial test and corporategumanteefor post-closure care. Section264.145(f)(5)providesthat afterthe initial submission ofthe documents identifiedby $ 264.145(f)(3)asnecessary to demonstrate that theowneror operator meetsthe financialtest or corporateguarantee,the owneror operatormust sendupdated informationto theRegionalAdministratorwithin 90 daysafterthe closeof eachsucceeding the fiscalyear. (Thedocuments requiredby $ 264.145(I)(3)arethe ChiefFinancialOfficer'sletter; the independent CertifiedPublicAccountant'sreport;andthe independent CertifiedPublic Accountant'sspecialreport). See22Cal.Codeof Reg.66264.145(f),66265.145(D (Califomia); Del. Admin. Code7-1000264-264.145(f) (Delaware);35 Ill. Adm. Code724.245(f)(Illinois); LAC 33:V.371 l.F. (Louisiana);
30 TexasAdmin.Code,E 37.251(Texas);andWAC 173-303-
620(6)(Washington).

13. 40 C.F.R.$ 26{.la7 G) establishes thecriteriathat an owneror operatorof a treatment,
    storageor disposalfacility mustmeetto satisi/ the financialtestandcorporateguarantee for liability. Section264.147(1)(5)providesthataftertheinitial submission ofthe documents identifiedby $ 264.147(0(3)asnecessary to demonstrate thatthe owneror operatormeetsthe financial testor corporateguarantee,the owneror operatormust sendupdatedinformation to the RegionalAdministratorwithin 90 daysafterthe closeof eachsucceeding the fisca1year. (The documents requiredby $ 264.141(I)(3)arethe ChiefFinancialOfficer'sletter;theindependent CertifiedPublicAccountant'sreport;andthe independent CertifiedPublicAccountant'special report). See22 Cal.Codeof Reg.66264.14'7(h),66265.147(h) (California);Del. Admin. Code7- 1000264-264.147(f) @elaware);35 lll. Adm. Code724.247(f)(Illinois);LAC 33:V.4411.F. (Louisiana);30 TexasAdmin. Code,$ 37.551(Texas);andWAC 173-303-620(8) (Washington).

14. 40 C.F.R.$ 144.63addresses ClassI hazardous wasteinjectionwellscoveredby the
    financialtestandcorporateguarantee.Section144.63(f)(l)providesthattheowneror operator must satisfuthe requirementsoftho corporateguaranteefor plugging andabandonment.Sectron 144.63(0(5)providesthat afterthe initial submissionofthe documents identifiedby
    $ 144.63(0(3)asnecessary to demonstrate thattheowneror operatormeetsthe financialtestor corporateguarantee,the owner or operatormust sendupdatedinformation to the Regional Administratorwithin 90 daysafterthe closeof eachsucceeding the fiscalyear. (Thedocuments requiredby $ 144.63(0(3)arethe ChiefFinancialOfficer'sletter;theindependent Certified PublicAccountant'sreport;andthe independent CertifiedPublicAccountant'specialreport).

15. Basedon theabove,andpursuantto Sections3004(a)& (t) ofRCRA, andSectiou1421(b)
    of SDWA, andtheimplernenting regulations,
    Respondent is subjectto therequirements of 40
    C.F.R.$$264.143(D,264.145(f),264.147(D and(g); the implementingstateregulationsat 22 Cal.Code ofReg. 66264.r43(f),66264.14s(f), 66264.147(e);6626s.143(1),6626s.14s(1), 66265.147(s)(California);Del. Admin. Code7-1000264-264.143(t,264-264.145(0,264- 26aJa7@)(Delaware);35 Il1.Adm. Code124.243(I),724.24s(D,724.247(\ (tliinois);LAC
    4411.c.(Louisiana);
    33:Y.3701.F.,3711.F., 30 TexasAdmin.Code,$ 37.551(Texas);and WAC 173-303-620(4),(6), (8) (Washington);and40 C.F.R.$ 144.63(f),at the 17facilitieslisted in AttachmentA.

16. For purposesof this Agreement,Complainant herebystatesandallegesthat,basedon the
    information suppliedby Respondento EPA, Respondenthasviolated RCRA and SDWA at the 17 facilitiesidentifiedin AttachmentA, by failingto satisfycertainfinancialresponsibility requirements underRCRA for closure,post-closure care,andthird-partyliability,andunder SDWA for pluggingandabandonment, asrequiredby Sections3004(a)& (t) of RCRA, 42 U.S.C.$$ 6924(a)& (t), andSection1a21$) of SDWA, 42 U.S.C.$ 300hft), andthe regulationsfoundat 40 C.F.R.$$ 264.143,264.745,264.147; andtheimplementingstate regulations at22Ca1.CodeofReg.66264.l43(f),66264.145(f),66264.147(e);66265.143(D, 66265.145(f),66265.1a7G\ (California);Del. Admin.Code7-1000264-264.143(0,264- 264.145(f),26a-264.147(g;) (Delaware);35 Il1.Adm. Code724.243(1,'124.24s(l),'724.247(t (Illinois);LAC 33Y.37O7.F., 3711.F.,4411.G. (Louisiana);
    30 TexasAdmin.Code,$ 37.551

                         (6), (8) (Washinglon);and40 C.F.R.$ 144.63.
    

    (Texas);andWAC l'13-303-620(4),

                                   V. Civil Penaltv
    

17. EPA agrees, baseduponthe factsandinformationsubmittedby Respondent andupon
    Respondent's certi{icationherein to theveracityofthis information,thatRespondent has satisfiedall of the conditionssetforlh in the Audit Policy andtherebyqualifies.for a 1007o reductionofthe gravity componentof the civil penalty. Complainanthasdeterminedthat the gravitycomponent of the civil penaltyis $77,546.50.of thatpenalt5$77,391.50 is attributable to theRCRA violationsand$155is attributable to SDWA violations. EPA alleges thatthis gravitycomponent is assessable againstRespondent for theviolationsthatarethebasisof this Agreement.

18. UndertheAudit Policy,EPA reserves the right to collectanyeconomicbenefitthat
    Respondentmay haverealizedasa result of its noncompliance.Basedon informationprovided by Respondent, EPA hasdetermined thatRespondent obtainedan economicbenefitof$153,949
    in this matter. Of this amount,$153,757is attributableto the
    asa resultof its noncompliance
    RCRA violations and $192is attributableto the SDWA violations' Accordingly,the civil penaltyagreeduponby thepartiesfor settlement purposesis $153,949.

                                VI. Termsof Settlement
    

l. Respondent agreesto maintaincompliancewith the applicablefinancialresponsibility requirements imposedby RCRA andSDWA andthe applicableregulations at 40 C.F'R.
$$ 264.143,264.145,264.147andtheimplementingstateregulationsat Cal.Codeof Reg'
22
66264.r43(f),66264.14s(l), 66264.147(g);6626s.r43(f),66265.145(f), 6626s.r47(g) (California);Del. Admin. Code7-1000264-264.143(D,264-264.145(0,26a-264.147(g) (Deiaware);35 lll. Adm. Code724.243(l),724.245(I),724.247(I)flllinois);LAC 33:V.3707.F., 3711.F.,4411.G. 30 TexasAdmin.Code,$ 37.551(Texas);andWAC 173-303-
(Louisiana);
620(4),(6), (8) (Washington); and40 C.F.R.$ 144.63,atthe 17facilitiesidentifiedin AttachmentA.

2. Respondentagreesto pay ONE HUNDRED FIFTY-THREE THOUSAND, NINE
   HUNDREDAND FORTY-NINEDOLLARS($153,949),in satisfaction of thecivil penaltv, within thirty (30)daysofissuanceof theFinal Order(i.e.,effectivedateofthis Agreernentand attached Final Order). 40 C.F.R.$ 22.31(c).

3. Respondentshallpaythe civil penaltyby wire transferwith a notationof"Shell Oil
   Company,DocketNo. OECA 2005-0081"by usingthe foilowinginstructions:
   Nameof Beneficiary: EPA
   Numberof Accountfor deposit: 68010099
   The Bank Holding Account: TreasNYC
   The ABA Routine Number: 021030004

4. Respondent shallforwardevidenceofwire transferto EPA,within five (5) daysofpaynent,
   to the attentionof:

                                 L1'nnHolloway
                           Officeof Civil Enforcement
                       U.S.Environmental  ProtectionAgency
                       1200PennsylvaniaAve, N.W. (2246-N
                             Washington,  DC 20460
   
                       U.S.Environmental ProtectionAgency
                               Clerk of the Board
                          EnvironmentalAppealsBoard
                               Ariel RiosBuilding
                          1200Pennsylvania   Ave, N.W.
                           Washington, DC 20460-0001
   

5. For the purposesof stateand federalincometaxation,Respondentshall not be entitled,and
   agreesnot to attempt,to claim a deductionfor any civil penaltypaymentmadepursuantto the Final Order. Any attemptby Respondentto deductany suchpaymentshall constitutea violation of theAgreementandthe lntemalRevenueCode. 26 U.S.C.$ 162(0.

6. EPA is requiredto assess interestandpenaltieson debtsowedto theUnitedStatesanda
   chargeto coverthe costsofprocessingandhandlingthe delinquentclaim andRespondent agrees to pay theseamountsunderthis Agreement.Interest,at the statutoryjudgmentrateprovidedfor in 3l U.S.C.$ 3717,will thereforebeginto accmeon the civil penaltyagreedto hereinon the datea copy of this AgreementandFinal Order is mailed to Respondent.However,EPA will not seekto recoverintereston anyportionof the civil penaltythatis paidwithin thirty (30)calendar daysafterthe dateon which suchinterestbeginsto accrue.Pwsuanto 3l U.S.C.S 3717, Respondentmust pay the following amountson any amountoverdue:

    a. Interest. Any unpaidportion of a civil penaltymustbearinterestat the rate established
   

   by the Secretary of the Treasurypursuantto 31 U.S.C.$ 3717(aXl). Interestwill be assessed at therateofthe UnitedStatesTreasurytax andloanaccountratein accordance wittr 40 C.F.R.
   $ 1 3 . 1 1 ( a ) .

   b. LatePaymentPenaltv.On anyportionof a civil penaltymorethanninety(90)calendar
   daysdelinquent,Respondentmustpay a late payrnentpenaltyof twelve (12) percentper annum, which will accruefrom the datethe penaltypaymentbecamedelinquent. This late payment penaltyis in additionto chargeswhich accrueor may accrueundersubparagraph a.

                                 VII. PublicNotice
   

I . The partiesacknowledgethat the settlementportions of this Agreementwhich pertainto the

                            wasteinjectionfacilitiesare,pursuanto SDWA Section

violationsat the ClassI hazardous
1a23(c)(3)(B), subjecto publicnoticeandcommentrequirements.
42 U.S.C.$ 300h-z(c)(3)(B),
ShouldEPA receivecommentsregardingthe issuanceofthe FinalOrderassessing thecivil penaltyagreedto in SectionVI., EPA shallforwardsuchcommer,ts within ten
to Respondent
(10) daysof thereceiptof thepubliccomments.40 C.F.R.$ 22.45.

2. As part of this Agreement,andin satisfaction of the Audit Policy,
   of the requirements
   Respondenthasadmittedto certainfacts. The partiesagreethat shouldEPA receive,through public commentsor in anyway, information that provesor demonstrates that thesefactsareother thanasadmittedto by Respondent, theportion ofthis Agreement pertainingto the affected facility or facilities,includingmitigationof theproposedpenalty,maybe voided,or this entire Agreementmaybe declarednull andvoid at EPA's electionprior to the issuanceof theFinal Order,andEPA may proceedwith an enforcementaction.

3. The partiesagreethat Respondent'sobligation to pay a civil penaltyunderthis Agreement
   will ceaseshouldthis Agreementbe rejectedby theEnvironmental AppealsBoard(EAB).

                     VIII. Reservation
                                     of RiehtsandSettlement
   

4. This AgreementandFinal Order,when issuedby the EAB, anduponpa)'rnentby Respondent
   of thecivil penaltyin accordance with SectionVI., shallresolveonly the civil claimsspecified hereinandshallconstitutea final andcompletesettlement ofall civil claimsandcausesofaction occurringbetweenMarch 30,2004andMay 28, 2004,andspecifiedin AttachmentA. If andto the extentthat any information or certificationprovidedby Respondentuponwhich any civil penaltymitigation grantedin this AgreementandFinal Orderwasbased,wasmaterially falseor inaccurateat the time suchinformation or certification wasprovidedto EPA, EPA reservesthe right to assessandcollectanyandall civil penaltiesfor anyviolationdescribedherein. Such revocationshallbe in writing andshallbecomeeffectiveuponreceiptby Respondent.Nothing in this AgreementandFinal Ordershall be construedto limit the authorityof EPA and.iorthe United Statesto undertakeany action againstRespondent,in responseto any conditionwhich EPA or theUnitedStatesdetermines maypresentanimminentandsubstantial endangerment to the public health,welfare, or the environment. Furthermore,issuanceof the Final Orderdoesnot constitutea waiver by EPA and/orthe United Statesof its right to bring an enforcementaction, eithercivit or criminal,againstRespondent for anyotherviolationofany federalor statestatute, regulationor permit.

                                 D(. OtherMatters
   

l. Eachpartyshallbearits own costsandattomeyfeesin this matter.

2. Theprovisionsofthis AgreementandFinal Order,whenissuedby the EAB, shallapplyto
   andbe bindingon the Complainant,
   andthe Respondent,aswell asRespondent's officers,
   and assigns.Any changein ownershipor corporatestatusof the Respondent,
   agents,successors

includingbut not limitedto anytransferof assetsor real or personalproperty,shallnot alter Respondent's underthis Agreement,includingthe obligationto paythecivil
responsibilities
penaltyrefenedto in SectionVL

3. Nothingin this AgreementshallrelieveRespondent of theduty to complywith al1applicable
   provisionsof RCRA, SDWA,or otherfederal,state,or local lawsor statutes, nor sha1lit restrict EPA's authorityto seekcompliance with anyapplicablelaws,nor shallit be construedto be a ruling on, or a determinationof, any issuerelatedto any federal,stateor local permit.

4. Eachpmty certifiesthat at leastone of its undersignedrepresentatives is fully authorizedby
   the party whom he or sherepresentsto enterinto the termsandconditionsof the Agreement,to executeit on behalf of that parry,andto legally bind the party on whosebehalf s/hesigrs this Asreement.

                                         10
   

FOR Resoondent: FOR Comolainant:

Randy .{
for Finance and Controller
Office of Civil Enforcement
U. S. EnvironmentalProtectionAgency

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