FOR IMMEDIATE RELEASE                                         ENR
TUESDAY, SEPTEMBER 17, 1996                        (202) 616-2765
                                               TDD (202) 514-1888
                                               EPA (202) 260-1384


U.S. ENTERS INTO CASMALIA ACCORD WORTH MORE THAN $30 MILLION

LOS ANGELES -- Under an agreement reached with the U.S. Environmental Protection Agency and Department of Justice, 49 public and private entities will spend at least $30 million to begin the clean up of millions of gallons of liquid hazardous waste and millions of cubic yards of solid hazardous waste at the Casmalia Resources Hazardous waste disposal facility near Santa Maria, California.

The agreement, filed in U.S. District Court in Los Angeles, California, requires the 49 entities, known as the Casmalia Steering Committee (CSC), to take over efforts to stabilize the 254 acre site while EPA evaluates its environmental characteristics and potential risks. In this first phase of clean-up the companies will collect, treat and dispose of contaminated liquids and design and construct a cap for the remaining site landfills. The work is projected to cost $30 million and will take five years to complete. The second phase of work will be the selection and construction of a long-term remedy to be selected by EPA.

"This settlement reflects our commitment to ensure that responsible parties pay for the environmental damage they cause, while also demonstrating the Agency's efforts to work with these parties to promote enforcement fairness and reduce unnecessary transaction costs," said Steve Herman, EPA's Assistant Administrator for Enforcement and Compliance Assurance. "This decree assures that pollution from the site will be stabilized in the short term, and that the remedial actions needed to cleanup the site for the long term will be taken."

"This settlement is a good start in holding those responsible for the contamination at Casmalia accountable for their actions," said Lois Schiffer, Assistant Attorney General in charge of the Environment and Natural Resources Division. "But we also intend to ensure that those responsible parties who have not yet joined this settlement pay their share of the clean-up costs as well."

"This settlement represents another significant accomplishment in the federal government's ongoing efforts to assure that those parties responsible for creating or contributing to hazardous waste sites accept the responsibility for the necessary cleanup," said Nora M. Manella, United States Attorney for the Central District of California.

While this first phase of work is being performed, the government and the steering committee will contact the other responsible parties that sent waste to the site and attempt to bring them into the settlement voluntarily. Cash settlements from these parties will be used to fund the later phase of site work as well as the site's long-term operation and maintenance.

The long-term clean-up will also be funded in part by a $10 million trust fund set up by site owner Kenneth Hunter, Jr. to pay for closure of the facility. The estimated cost of all site work is estimated to be in excess of $100 million. If there is not enough money from the cash settlements and trust fund to pay for the later phases of site work, the U.S. could obtain the shortfall from the CSC.

The Casmalia Resources Hazardous Waste Facility is an inactive hazardous waste treatment, storage and disposal facility which accepted large volumes of commercial and industrial wastes from 1973 to 1989. During its years of operation, millions of gallons of liquid hazardous waste and millions of cubic yards of solid hazardous waste were placed in landfills and surface impoundments at the facility. Since 1992, the U.S. EPA has worked to stabilize the site to control actual or potential releases of hazardous substances from the facility.

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