United States v. Shell Oil Co., Civil Action No. 2:15-cv-07619-R (AGRx)

Decision Date14 January 2016
Docket NumberCivil Action No. 2:15-cv-07619-R (AGRx)
CourtU.S. District Court — Central District of California
PartiesUNITED STATES OF AMERICA, and the CALIFORNIA DEPARTMENT OF TOXIC SUBSTANCES CONTROL, Plaintiffs, v. SHELL OIL COMPANY, Defendant.
JOHN C. CRUDEN

Assistant Attorney General

Environment & Natural Resources Division

United States Department of Justice

VALERIE K. MANN (DC Bar No. 440744)

Environmental Enforcement Section

Environment & Natural Resources Division

United States Department of Justice

601 D Street, NW

Washington, D.C. 20004

Tel: (202) 616-8756

Fax: (202) 616-2427

Email: Valerie.mann@usdoj.gov

(see next page for names of additional counsel)

CONSENT DECREE DEL AMO FACILITY SUPERFUND SITE SOIL/NAPL OPERABLE UNIT (OU1)

MARK A. RIGAU (State Bar No. 223610)

Environmental Defense Section

Environment and Natural Resources Division

United States Department of Justice

301 Howard Street, Suite 1050

San Francisco, California 94105

Tel: (415) 744-6487

Fax: (415) 744-6476

Email: mark.rigau@usdoj.gov

Attorneys for United States of America

KAMALA D. HARRIS

Attorney General of the State of California

MARK BRECKLER

Chief Assistant Attorney General

SALLY MAGNANI

Senior Assistant Attorney General

SARAH E. MORRISON

Supervising Deputy Attorney General

MEGAN K. HEY (State Bar No. 232345)

Deputy Attorney General

300 South Spring Street

Los Angeles, CA 90013

Tel: (213) 897-2611

Email: Megan.Hey@doj.ca.gov

Attorneys for Plaintiff State of California DTSC

MICHAEL R. LESLIE (State Bar No. 126820)

CALDWELL LESLIE & PROCTOR, PC

725 South Figueroa Street, 31st Floor

Los Angeles, California 90017-5524

Telephone: (213) 629-9040

Facsimile: (213) 629-9022

Email: leslie@caldwell-leslie.com

Attorneys for Defendant Shell Oil Company

TABLE OF CONTENTS

I. BACKGROUND ......................................................................................... 1

II. JURISDICTION .......................................................................................... 6

III. PARTIES BOUND ...................................................................................... 6

IV. DEFINITIONS ............................................................................................ 7

V. GENERAL PROVISIONS ........................................................................ 17

VI. PERFORMANCE OF THE WORK BY SETTLING DEFENDANT ..... 20

VII. REMEDY REVIEW .................................................................................. 31

VIII. QUALITY ASSURANCE, SAMPLING, AND DATA ANALYSIS ...... 32

IX. ACCESS AND INSTITUTIONAL CONTROLS ..................................... 36

X. REPORTING REQUIREMENTS ............................................................. 42

XI. EPA APPROVAL OF PLANS, REPORTS, AND OTHER DELIVERABLES ..................................................................................... 45

XII. PROJECT COORDINATORS .................................................................. 47

XIII. PERFORMANCE GUARANTEE ............................................................ 49

XIV. CERTIFICATION OF COMPLETION .................................................... 60

XV. EMERGENCY RESPONSE ..................................................................... 64

XVI. PAYMENTS FOR RESPONSE COSTS .................................................. 66

XVII. INDEMNIFICATION AND INSURANCE ............................................. 74

XVIII. FORCE MAJEURE ................................................................................... 77

XIX. DISPUTE RESOLUTION ......................................................................... 80

XX. STIPULATED PENALTIES ..................................................................... 87

XXI. COVENANTS BY PLAINTIFFS ............................................................. 94

XXII. COVENANTS BY SETTLING DEFENDANT AND SETTLING FEDERAL AGENCY .............................................................................. 103

XXIII. EFFECT OF SETTLEMENT; CONTRIBUTION ................................. 108

XXIV. ACCESS TO INFORMATION ............................................................... 111

XXV. RETENTION OF RECORDS ................................................................. 113

XXVI. NOTICES AND SUBMISSIONS ........................................................... 116

XXVII. RETENTION OF JURISDICTION ........................................................ 118

XXVIII. APPENDICES ......................................................................................... 119

XXIX. COMMUNITY INVOLVEMENT .......................................................... 119

XXX. MODIFICATION .................................................................................... 120

XXXI. LODGING AND OPPORTUNITY FOR PUBLIC COMMENT ........... 121

XXXII. SIGNATORIES/SERVICE ..................................................................... 121

XXXIII. FINAL JUDGMENT ............................................................................... 122

I. BACKGROUND

A. The United States of America ("United States"), on behalf of the Administrator of the United States Environmental Protection Agency ("EPA"), filed a complaint in this matter pursuant to Sections 106 and 107 of the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), 42 U.S.C. §§ 9606, 9607.

B. The United States in its complaint seeks, inter alia: (1) reimbursement of costs incurred by EPA and the Department of Justice ("DOJ") for response actions at the Del Amo Facility Superfund Site, in Los Angeles, California ("Site," more particularly described in Section IV hereto), together with accrued interest; and (2) performance of response actions by the Defendant at the Soil and Non-Aqueous Phase Liquid ("NAPL") Operable Unit ("Operable Unit 1" or "OU1") of the Del Amo Facility Superfund Site consistent with the National Contingency Plan, 40 C.F.R. Part 300 ("NCP").

C. In accordance with the NCP and Section 121(f)(1)(F) of CERCLA, 42 U.S.C. § 9621(f)(1)(F), EPA notified the State of California (the "State") on November 29, 2011, of negotiations with potentially responsible parties ("PRPs") regarding the implementation of the remedial design and remedial action for Operable Unit 1 of the Site, and EPA has provided the State with an opportunity to participate in such negotiations and be a party to this Consent Decree.

D. The State of California Department of Toxic Substances Control ("DTSC") has also filed a complaint against the Settling Defendant and the Settling Federal Agency in this Court alleging that the Settling Defendant and the Settling Federal Agency are liable to DTSC under Section 107 of CERCLA, 42 U.S.C. § 9607, for reimbursement of costs it has incurred, and will incur, for response actions at OU1 of the Del Amo Facility Superfund Site together with accrued interest. Plaintiffs intend to file a motion in this Court to consolidate the separate actions described in Paragraphs B and D of this Consent Decree.

E. In accordance with Section 122(j)(1) of CERCLA, 42 U.S.C. § 9622(j)(1), EPA notified the National Oceanic and Atmospheric Administration and the United States Fish and Wildlife Service on June 13, 2012, of negotiations with PRPs regarding the release of hazardous substances that may have resulted in injury to the natural resources under federal trusteeship and encouraged the trustees to participate in the negotiation of this Consent Decree.

F. The defendant that has entered into this Consent Decree, Shell Oil Company ("Settling Defendant"), does not admit any liability to Plaintiffs arising out of the transactions or occurrences alleged in the complaints, nor does it acknowledge that the release or threatened release of hazardous substance(s) at or

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// //from the Site constitutes an imminent and substantial endangerment to the public health or welfare or the environment. Settling Federal Agency does not admit any liability arising out of the transactions or occurrences alleged in any counterclaim asserted by Settling Defendant or any claim by DTSC.

G. Pursuant to Section 105 of CERCLA, 42 U.S.C. § 9605, EPA placed the Site on the National Priorities List ("NPL"), set forth at 40 C.F.R. Part 300, Appendix B, by publication in the Federal Register on September 7, 2002, 67 Fed. Reg. 56,760.

H. In response to a release or a substantial threat of a release of a hazardous substance(s) at or from the Site, Shell Oil Company and Dow Chemical Company, respondents under an Administrative Order on Consent ("AOC Respondents"), commenced on May 7, 1992, a Remedial Investigation and Feasibility Study ("RI/FS") for the Site pursuant to 40 C.F.R. § 300.430.

I. AOC Respondents completed a Remedial Investigation ("RI") Report on July 7, 2007, and AOC Respondents completed a Feasibility Study ("FS") Report on January 15, 2010.

J. Pursuant to Section 117 of CERCLA, 42 U.S.C. § 9617, EPA published notice of the completion of the FS and of the proposed plan for remedial action on June 15, 2010, in a major local newspaper of general circulation. EPAprovided an opportunity for written and oral comments from the public on the proposed plan for remedial action. A copy of the transcript of the public meeting is available to the public as part of the administrative record upon which the Assistant Director, Superfund Division, EPA Region IX, based the selection of the response action.

K. The decision by EPA on the remedial action to be implemented at Operable Unit 1 is embodied in a final Record of Decision ("ROD"), executed on September 30, 2011, on which DTSC has given its concurrence. The ROD includes a responsiveness summary to the public comments. Notice of the final plan was published in accordance with Section 117(b) of CERCLA, 42 U.S.C. § 9617(b). EPA supplemented the ROD with a Memorandum to File dated July 26, 2013.

L. Based on the information presently available to EPA and DTSC, EPA and DTSC believe that the Work will be properly and promptly conducted by Settling Defendant if conducted in accordance with the requirements of this Consent...

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