Leonard A. Strandley, (PDF)

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D. C. 20460 I n the Matter o f LEONARD A. STRANDLEY, Respondent D o c k e t No. 1 0 8 4 - 1 0 - 1 2 - 2 6 1 5P Judge Greene I Toxic Substances C o n t r o l Act, 1 5 U.S.C. S2614. Under t h e p a r t i c u l a r c i r c u m s t a n c e s o f t h i s case, a p e n a l t y o f $103,500 i s a p p r o p r i a t e , w i t h a11 b u t $5000 d e f e r r e d p e r m a n e n t l y upon a showing, as p r o v i d e d i n t h e Order, t h a t t h e b a l a n c e has been c o n t r i b u t e d t o t h e c l e a n u p o f t h e s i t e . David Dabroski, Esquire, A s s o c i a t e Regional Counsel, U n i t e d S t a t e s E n v i r o n m e n t a l P r o t e c t i o n Agency, R e g i o n 10, S e a t t l e , Washington, f o r t h e complainant. Kenneth S. K e s s l e r , E s q u i r e , t o n 98402, f o r t h e r e s p o n d e n t 543 B r o a d w a y , Tacoma, Washing- II Before: J. F. Greene, A d m i n i s t r a t i v e Law J u d g e DECISION A N D ORDER By c o m p l a i n t f i l e d o r i g i n a l l y o n November 1 5 , 1 9 8 4 , and amended b y m o t i o n g r a n t e d J a n u a r y 1 9 , 1 9 8 8 , t h e U n i t e d S t a t e s E n v i r o n m e n t a l P r o t e c t i o n A g e n c y ( E P A ) s e e k s an o r d e r f i n d i n g t h e r e s p o n d e n t i n v i o l a t i o n o f s e c t i o n 15 o f t h e T o x i c Substances Control Act, 1 5 U.S.C. S2614 (TSCA), and a p p l i c a b l e r e g u l a t i o n s promul gated thereunder, s e c t i o n 1 6 o f TSCA, t h e r e b y i n c u r r i n g 1 i a b i l it y p u r s u a n t t o §2615(a). statements o f 1 5 U.S.C. Procedurally t h i s case i s r i p e f o r decision, facts, supporting exhibits, and a p p l i c a b l e l a w h a v i n g been f i l e d 1989. b y t h e p a r t i e s a n d r e c e i v e d o n M a r c h 3, Respondent o p e r a t e d a s o l e p r o p r i e t o r s h i p s t a r t i n g a r o u n d 1968. The b u s i n e s s i n c l u d e d m e t a l r e c l a i m i n g and t h e r e b u i l d i n g o f l a r g e equipment i n c l u d i n g f o r k l i f t s (respondent's statement o f facts, p. 1). As p a r t o f h i s b u s i n e s s , respondent salvaged p. 3) from including transformer o i l (respondent's statement o f facts, t r a n s f o r m e r s which he purchased from v a r i o u s sources, u t i l i t i e s and t h e U n i t e d S t a t e s government ( r e s p o n d e n t ' s e x h i b i t F, a t t a c h e d t o statement of facts). It i s complainant's p o s i t i o n t h a t t h e s i t e w h e r e r e s p o n d e n t c a r r i e d o u t h i s a c t i v i t i e s was h i g h l y contaminated, and c o n s e q u e n t l y charged r e s p o n d e n t w i t h as- s o r t e d v i o l a t i o n s o f t h e p o l y c h l o r i n a t e d b i p h e n y l s (PCBs) r e g u l ations, 4 0 CFR P a r t 7 6 1 , issued pursuant t o authority contained i n s e c t i o n 6 of T S C A , 1 5 U.S.C. $2605. Respondent r e p l i e s t h a t ( 1 1 t h e s i t e was owned by o t h e r s ; ( 2 ) t h e o t h e r s owned i t l o n g b e f o r e r e s p o n d e n t l e a s e d a p o r t i o n f o r h i s b u s i n e s s , and had t h e o p p o r t u n i t y t o c o n t a m i n a t e t h e s i t e b e f o r e r e s p o n d e n t came a l o n g ; ( 3 ) t h e o t h e r s c o n d u c t e d an a u t o wrecking b u s i n e s s 1 0 c a t e d p h y s i c a l l y a t a higher e l e v a t i o n than respondent's; t h a t b u s i n e s s c o u l d a l s o have c o n t a m i n a t e d r e s p o n d e n t ' s a r e a ; ( 4 ) r e s p o n d e n t d i d n o t have e x c l u s i v e u s e of h i s a r e a ; and ( 5 ) one of t h e o t h e r p e r s o n s , a l i n e m a n f o r a p u b l i c u t i l i t y , had a c c e s s t o t r a n s f o r m e r o i l w i t h which he r e g u l a r l y o i l e d c e r t a i n r o a d s a t t h e s i t e , some i n t h e a r e a of r e s p o n d e n t ' s b u s i n e s s , a t t h e r a t e of a b o u t 1 5 0 g a l l o n s o n c e o r t w i c e p e r month between 1977 and 1 9 8 3 ( s e e r e s p o n d e n t ' s s t a t e m e n t of f a c t s , p p . 1 - 5 , and a t t a c h e d e x h i b i t s A and HI. Respondent f u r t h e r a s s e r t s t h a t ( 1 ) t h e p u r c h a s e r of t h e o i l which he d r a i n e d from t h e t r a n s f o r m e r s c u s t o m a r i l y t e s t e d t h e o i l ; ( 2 ) t h e p u r c h a s e r would n o t a c c e p t " p r o b l e m " o i l ; ( 3 ) t h e p u r c h a s e r n e v e r r e j e c t e d any t h e o i l p u r c h a s e d from r e s p o n d e n t ( r e s p o n d e n t ' s s t a t e m e n t of of f a c t s , p. 4). Respondent v i g o r o u s l y r e j e c t s c o m p l a i n a n t ' s c o n c l u s i o n t h a t t h e violations alleged i n the complaint a r e a t t r i b u t a b l e t o res p o n d e n t ' s a c t i v i t i e s ; r e s o n d e n t f u r t h e r o p p o s e s a s s e s s m e n t of p e n a l t i e s i n t h a t even i f " t e c h n i c a l " v i o l a t i o n s o c c u r r e d , t h e e x i s t e n c e o f numerous m i t i g a t i n g c i r c u m s t a n c e s , i n c l u d i n g r e s p o n - s i b i l i t y o f other individuals, t h e complaint. should r e s u l t i n dismissal of 10, i n Compl a i n a n t r e b u t s t h e s e a r g u m e n t s ( p . c o m p l a i n a n t ' s b r i e f ) a n d u r g e s i m p o s i t i o n o f $103,500.00 c i v i l p e n a l t i e s although i n t h e a l t e r n a t i v e i t would r e l u c t a n t l y a c c e p t r e m i s s i o n o f a l l e x c e p t $5000 o f such p e n a l t y i f t h e $98,500.00 site. CONCLUSIONS AND FINDINGS The f a c t s a n d a r g u m e n t s i n t h i s c a s e a r e p e r s u a s i v e t h a t r e s p o n d e n t h a s v i o l a t e d TSCA a n d c e r t a i n a p p l i c a b l e r e g u l a t i o n s . Most o f t h e s e v i o l a t i o n s have been determined by r e f e r e n c e t o r e s p o n d e n t ' s own r e c o r d s , maintain proper records a n d some o f t h e m b a l a n c e were t o be c o n t r i b u t e d t o c l e a n u p o f t h e -- such as f a i l u r e t o -- are o f a continuing nature. It i s f o u n d t h a t n o t o n l y s h o u l d r e s p o n d e n t h a v e known t h a t PCBs w e r e b e i n g handled, stored, shipped, and s o l d i n a manner w h i c h d i d b u t t h a t these a c t i v i t i e s , n o t conform t o a p p l i c a b l e r e g u l a t i o n s , i n c l u d i n g f a i l u r e t o keep r e c o r d s r e l a t i n g t o PCB i t e m s a n d f a i l u r e t o have a s p i l l p r e v e n t i o n c o n t r o l / c o u n t e r m e a s u r e place under h i s d i r e c t c o n t r o l , p l an, took a t a t i m e and p l a c e where r e s p o n - s i b i l i t y n o l o n g e r c o u l d b e c o m p l e t e l y f o b b e d o f f u p o n o t h e r s who had access t o , o r were a l s o u s i n g , o r who c o n t r i b u t e d t o t h e c o n - tamination a t the site. N o r w o u l d t h e p r i o r and j o i n t c u l p a b i l i t y I t w i l l be f o u n d t h a t r e s p o n d e n t o f o t h e r s excuse t h i s respondent. h a s v i 01 a t e d T S C A a n d c e r t a i n r e g u l a t i o n s p r o m u l g a t e d t h e r e u n d e r . 1. 2. R e s p o n d e n t i s s u b j e c t t o TSCA a n d a p p l i c a b l e r e g u l a t i o n s . Respondent f a i l e d t o use i n c i n e r a t i o n , chemical l a n d f i l l , o r h i g h e f f i c i e n c y b o i l e r t o d i s p o s e o f PCBs i n c o n c e n t r a t i o n s o f 50-500 p a r t s p e r m i l l i o n , 3. O i l filled electrical i n v i o l a t i o n o f 4 0 CFR § 7 6 1 . 6 0 ( a ) . e q u i p m e n t m u s t b e assumed t o b e c o n The f a c t t h a t p u r c h a s e r s t a m i n a t e d w i t h PCBs, 4 0 CFR $761.3. who t e s t e d t h e o i l s o l d t o t h e m b y r e s p o n d e n t d i d n o t r e f u s e t o a c c e p t t h e o i l d o e s n o t c o n s t i t u t e a d e f e n s e u n d e r TSCA a n d applicable regulations. L a c k o f i n t e n t i o n t o v i o l a t e TSCA a n d a p p l i c a b l e r e g u l a t i o n s i s n o t a d e f e n s e t o TSCA c o m p l a i n t s . 4. R e s p o n d e n t s o l d o i l c o n t a i n i n g PCBs a t a l e v e l o f 5 6 0 0 p a r t s This c o n s t i t u t e s improper disposal, per m i l l i o n t o a recycler. 4 0 CFR § 7 6 1 . 6 0 ( b ) ( 4 ) . 5. R e s p o n d e n t d i s p o s e d o f a b o u t 520 P C B - c o n t a i n i n g t r a n s f o r m e r s Grays H a r b o r PUD, S e a t t l e City r e c e i v e d f r o m P e n i n s u l a L i g h t Co., Light, and General M e t a l s , Inc., and t h e City o f C e n t r a l i a by means t h a t v i o l a t e d t h e p r o v i s i o n s o f 4 0 C F R § 7 6 1 . 6 0 ( b ) ( 4 ) . 6. By p l a c i n g a b o u t 300 g a l l o n s o f l i q u i d c o n t a i n i n g 5 6 0 0 p a r t s p e r m i l l i o n PCBs i n a 7 0 0 0 g a l l o n s t o r a g e t a n k f o r m o r e t h a n 3 0 days, r e s p o n d e n t d i d n o t a d e q u a t e l y s t o r e PCBs, i n violation of 4 0 CFR § 7 6 1 . 6 5 ( b ) . 7. R e s p o n d e n t v i o l a t e d 4 0 CFR P a r t 1 1 2 by f a i l i n g t o h a v e a s p i l l p r e v e n t i o n c o n t r o l a n d c o u n t e r m e a s u r e p l an a s p r o v i d e d i n t h a t s e c t i o n f o r t h e 7000 g a l l o n tank and o t h e r a r e a s o f his facility. 8. R e s p o n d e n t f a i l e d t o mark t h e s t o r a g e a r e a c o n t a i n i n g t h e i n violation 7000 g a l l o n t a n k and o t h e r areas o f h i s f a c i l i t y , o f 4 0 CFR S 7 6 1 . 4 0 ( a ) ( 1 0 ) . 9. Respondent f a i l e d t o m a i n t a i n " b a t c h r e c o r d s " f o r t h e 7000 a s p r o v i d e d i n 40 g a l l o n s t o r a g e t a n k f o r t h e y e a r s 1983-1984, CFR § 7 6 1 . 6 5 ( ~ ) ( 8 ) . 10. Respondent f a i l e d t o m a i n t a i n annual r e p o r t s f o r PCB l i q u i d s i n t h e 7000 g a l l o n s t o r a g e tank o r f o r any o t h e r a c t i v i t y i n v o l v i n g PCB i t e m s a t h i s f a c i l i t y , a s p r o v i d e d b y 4 0 CFR § 7 6 1 . 1 8 0 ( a ) . PENALTY C o m p l a i n a n t c l e a r l y has t h e p u b l i c i n t e r e s t as i t s c h i e f c o n c e r n i n recommending s t r u c t u r i n g o f t h e p e n a l t y which w i l l most l i k e l y r e s u l t i n t h e f a s t e s t completion o f t h e cleanup effort. U n d e r t h e p r o v i s i o n s o f s e c t i o n 1 6 o f TSCA, t h e EPA A d m i n i s t r a t o r may 1 5 U.S.C. §2615(a)(l)(C), c o m p r o m i s e , m o d i f y , o r r e m i t, w i t h o r w i t h o u t c o n d i t i o n s , any c i v i l p e n a l t y w h i c h may b e i m p o s e d u n d e r t h i s s u b s e c t i o n . T h e a m o u n t o f s u c h p e n a l t y , when f i n a l l y d e t e r m i n e d , o r t h e amount a g r e e d upon i n c o m p r o m i s e , may b e d e d u c t e d f r o m a n y sums o w i n g by t h e U n i t e d S t a t e s t o t h e p e r s o n charged. Obviously a respondent w i l l i n g t o a s s i s t i n cleanup o f a site, ... . despite denials o f r e s p o n s i b i l i t y f o r the environmental tion, degrada- i s p r e f e r a b l e t o a c o n t i n u e d h o s t i l e r e l a t i o n s h i p w h i c h may C o m p l a i n a n t ' s c o u n s e l m u s t b e commended f o r r e c o m I n these circumstances, it w i l l cause delay. mending an i n n o v a t i v e s o l u t i o n . be o r d e r e d t h a t r e s p o n d e n t pay $5000 i n p e n a l t i e s f o r t h w i t h y w i t h $98,500 b e i n g r e m i t t e d p e r m a n e n t l y p r o v i d e d t h a t t h i s amount i s Respondent must a p p l i e d t o c l e a n u p o f t h e s i t e as s e t o u t below. p r o v i d e w r i t t e n p r o o f w i t h i n 90 days o f t h e d a t e o f t h i s o r d e r , o f e x p e n d i t u r e o f $98,500 f o r the cleanup o f the s i t e . Failure as o f r e s p o n d e n t t o p r o v i d e such p r o o f o f e x p e n d i t u r e o f $98,500 provided w i l l r e s u l t i n imposition o f the entire penalty unless complainant f i l e s for l e a v e t o expand t h e t i m e . ORDER I T I S HEREBY ORDERED t h a t r e s p o n d e n t s h a l l p a y t o t h e E P A t h e amount o f o n e h u n d r e d f i v e t h o u s a n d t h r e e h u n d r e d d o l - l a r s ($105,300) as a c i v i l p e n a l t y w h i c h i s hereby a s s e s s e d and imposed a g a i n s t i t . The t o t a l a m o u n t s h a l l b e a r i n t e r e s t b e g i n n i n g t h i r t y ( 3 0 ) days f r o m t h e d a t e o f t h i s Order a t t h e r a t e o f 9% p e r annum u n t i l t h e p e n a l t y i s f u l l y p a i d , o r u n t i l t h e p e n a l t y p l u s i n t e r e s t t h e r e o n a t t h e r a t e p r o v i d e d above i s f u l l y r e m i t t e d and excused, as provided herein. Respondent s h a l l pay F I V E THOUSAND DOLLARS ( $ 5 0 0 0 ) of t h e imposed p e n a l t y no l a t e r t h a n s i x t y ( 6 0 ) d a y s from t h e d a t e o f t h i s O r d e r by c a s h i e r ' s o r c e r t i f i e d check o r money o r d e r pay- a b l e t o t h e " T r e a s u r e r of t h e U n i t e d S t a t e s , " and m a i l e d t o : U n i t e d S t a t e s E n v i r o n m e n t a l P r o t e c t i o n Agency Region 10 ( R e g i o n a l H e a r i n g Cl e r k ) P o s t O f f i c e Box 360903M P i t t s b u r g h , P e n n s y l v a n i a 15251 A copy o f t h e check and of t h e t r a n s m i t t a l l e t t e r s h a l l be d e l i v e r e d o r mailed t o t h e Regional Hearing Clerk a t t h e following address: R e g i o n a l H e a r i n g C l e r k , Region 1 0 O f f i c e of R e g i o n a l Counsel U n i t e d S t a t e s E n v i r o n m e n t a l P r o t e c t i o n Agency 1200 S i x t h Avenue, SO-125 S e a t t l e , Washington 98101 The payment o f t h e r e m a i n i n g p o r t i o n of t h e imposed p e n a l t y i s hereby s u s p e n d e d and d e f e r r e d t o one hundred and t w e n t y ( 1 2 0 ) d a y s from t h e d a t e of t h i s O r d e r , a t which t i m e i t s h a l l be imm e d i a t e l y due and p a y a b l e t o g e t h e r w i t h a l l a c c r u e d i n t e r e s t w i t h out f u r t h e r proceedings, or notice, or order, except a s otherwise provided i n t h e following paragraph: The s u s p e n d e d and d e f e r r e d payment p o r t i o n of t h e p e n a l t i e s imposed above s h a l l be w h o l l y r e m i t t e d and e x c u s e d a u t o m a t i c a l l y on t h e 1 2 0 t h day from t h e d a t e of t h i s O r d e r t o g e t h e r w i t h a1 1 accrued i n t e r e s t without f u r t h e r proceedings herein i f the affirma t i v e c o n d i t i o n o r e v e n t s p e c i f i e d i n t h e f o l l o w i n g paragraph occ u r s a n d o c c u r s on t i m e . 7. No l a t e r t h a n s i x t y ( 9 0 ) d a y s f r o m t h e d a t e o f t h i s O r d e r , r e s p o n d e n t s h a l l s u b m i t t o E P A an a f f i d a v i t and accompanying a t t a c h m e n t s w h i c h v e r i f y t h a t r e s p o n d e n t 'has c o n t r i b u t e d t o t h e c l e a n u p e f f o r t a t t h e s i t e p u r s u a n t t o t h e CERCLA Orders i n t h e amount o f n i n e t y - e i g h t thousand f i v e hundred d o l l a r s ($98,500) b y c a s h c o n t r i b u t i o n s o r t h r o u g h h i s own s e r v i c e s o r e f f o r t s ( w i t h a n e x p l a n a t i o n o f how t h e v a l u e o f t h e s e have b e e n c a l c u l ated); acceptance o f such v a l u a t i o n of personal s e r v i c e s o r e f - f o r t s s h a l l be c o n d i t i o n a l upon E P A ' s d e t e r m i n a t i o n t h a t t h e method u s e d f o r c a l c u l a t i n g t h i s v a l u e i s r e a s o n a b l e and a d e q u a t e l y documented by s u p p o r t i n g i n f o r m a t i o n . Upon c o m p l e t i o n o f t h i s w i l l condition, t h e p a y m e n t o f t h e d e f e r r e d p e n a l t y o f $98,500 remain forever deferred; of, if not, the penalty, o r portion there- w i l l become p a y a b l e t o g e t h e r w i t h i n t e r e s t a s p r o v i d e d i n paragraph 2 o f t h i s Order. 8. By d e f e r r i n g p a y m e n t o f t h e a d j u d g e d p e n a l t i e s , the bur- den o f p r o v i n g t h a t payment o f t h o s e p e n a l t i e s r e m a i n s d e f e r r e d a n d s u s p e n d e d i s p l a c e d upon r e s p o n d e n t . 9. No l a t e r t h a n t h i r t y (30) d a y s a f t e r s u c h a f f i d a v i t h a s been f i l e d by respondent, EPA s h a l l e i t h e r s t a t e and f i l e i n t h i s cause, o r ( e x p r e s s l y o r by s i l e n c e o r f a i l u r e t o f i l e a s t a t e f o r c i v i l purposes o n l y o f t h i s a d m i n i s t r a t i v e cause, ment) waive, a c o n t e n t i o n a n d t h e s u p p o r t i n g r e a s o n i n g t h a t one o r m o r e c o n d i t i o n s c o v e r e d by o r a l l u d e d t o b y t h e f i l e d a f f i d a v i t h a v e n o t b e e n met o r h a v e n o t b e e n f u l f i l l e d . d i s p u t i n g s t a t e m e n t on time, otherwise permitted by law. I f EPA f i l e s any such t h e n e a c h p a r t y may p r o c e e d a s I f EPA f i l e s l a t e r any s u c h s t a t e then f o r purposes o f t h i s m e n t o r o m i t s f i l i n g any s t a t e m e n t , O r d e r t h e p e n a l t i e s w h i c h a r e s u s p e n d e d and d e f e r r e d a s p r o v i d e d i n paragraphs 5-7 deferred, a b o v e s h a l l b e deemed p e r m a n e n t l y s u s p e n d e d , and r e m i t t e d . / / A d m i n i s t r a t i v e Law J u d g e O c t o b e r 31, Washington, 1989 D. C .