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WINNE, BANTA, HETHERINGTON, BASRALIAN & KAHN, p.c. SDMS Document COUNSELLORS AT LAW ESTABLISHED 1922 COURT PLAZA SOUTH - EAST WING 21 MAIN STREET P.O. BOX 647 HACKENSACK, NEW JERSEY 07602 (201) 487-3800 FACSIMILE (201) 487-8529 (201) 525-9460 www.winnebanta.com NEW YORK OFFICE 10 EAST 40™ STREET, SUITE 1308 NEW YORK, NEW YORK 1 001 6 644-1710 ROBERTA. HETHERINGTON III JOSEPH L. BASRALIAN + ROBERT M. JACOBS GERALD GOLDMAN + GARY S. REDISH + RICHARD R. KAHN + THOMAS J. CANGIALOSI, JR.H CAROLYN GERACI FROME BRUCE R. ROSENBERG MARTIN J. DEVER, JR. + • KENNETH K. LEHN . SCOTT K. McCLAIN' EDWARD P. D'ALESSIO + X RICHARD D. WOLLOCH + MICHAEL G. STINGONE MARCIA R. EAGLE + DOREEN E. WINN + CHRISTINE R. SMITH CHRISTOPHER H. MINKS HELEN GRIFF WEISGAL + ROMAN VACCART 93324 PETER G. BANTA + ARTHUR J. SIMPSON, JR. DONALD W. DE CORDOVA FRANK J. FRANZINO, JR.+ RENATA D. LOWENBRAUN + ELIZABETH EILENDER+' STEPHEN A. HERMAN COUNSEL TO THE FIRM ROBERT E. ROCHFORD SPECIAL COUNSEL i WALTER G. WINNE 11889-1972! HORACE F. BANTA (1895-19851 BRUCE F. BANTA (1932-1983) . CERTIFIED BY THE SUPREME COURT OF NEW JERSEY AS A CIVIL TRIAL ATTORNEY i MEMBER NEW YORK BAR ALSO MEMBER CONNECTICUT BAR ALSO ° MEMBER PENNSYLVANIA BAR ALSO X MEMBER WASHtNGTON, D.C. BAR ALSO i CPA INJ) Email address: [email protected] Direct Dial: 201-562-1033 January 25, 2006 Via Certified Mail - RRR ^ United States Environmental ^ . ' Protection Agency V . '• Region 2 290 Broadway New York, NY 10007-1866 Attention: Deborah Mellott, Esq. Re: E. M. Sergeant Pulp & Chemical Co., Inc. Demand for Reimbursement of Pant Costs Expended at Lower Passaic River Study Area in Essex, Hudson, Bergen and Passaic Counties, New Jersey Dear Ms. Mellott: As you know, this firm represents E. M. Sergeant Pulp & Chemical Co., Inc. (hereinafter "E. M. Sergeant") in this matter. I am writing again in response to your letter dated May 2, 2005, wherein you alleged responsibility on behalf of E. M. Sergeant in the Lower Passaic River Study Area. As previously advised by letter dated May 26, 2005, E. M Sergeant disputes such allegation. As a result of your allegations, E. M. Sergeant retained Great Eastern Ecology to review the matter and prepare a detailed analysis of such, in short Great Eastern concludes that there is no evidence that the alleged actions of E. M. Sergeant had any affect on the quality of the Passaic River and it is clear that the deleterious effects of the other industrial activities should be the main focus of EPA's action. Specifically, Great Eastern's review revealed that the hazardous substances listed on the EPA Consent Order include PCB's and metals, but notably do nor include sodium hydroxide or chlorine, allegedly discharged by E. M. Sergeant approximately 50 years ago. Further, EPA does not point to any specific 933240001

WINNE, BANTA, HETHERINGTON, SDMS Document … · winne, banta, hetherington, basralian & kahn, p.c. sdms document counsellors at law established 1922 court plaza south - east wing

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Page 1: WINNE, BANTA, HETHERINGTON, SDMS Document … · winne, banta, hetherington, basralian & kahn, p.c. sdms document counsellors at law established 1922 court plaza south - east wing

WINNE, BANTA, HETHERINGTON,BASRALIAN &KAHN, p.c.

SDMS Document

COUNSELLORS AT LAW

ESTABLISHED 1922COURT PLAZA SOUTH - EAST WING

21 MAIN STREETP.O. BOX 647

HACKENSACK, NEW JERSEY 07602(201) 487-3800

FACSIMILE (201) 487-8529(201) 525-9460

www.winnebanta.com

NEW YORK OFFICE10 EAST 40™ STREET, SUITE 1308

NEW YORK, NEW YORK 1 001 6644-1710

ROBERTA. HETHERINGTON III

JOSEPH L. BASRALIAN +

ROBERT M. JACOBS

GERALD GOLDMAN +

GARY S. REDISH +

RICHARD R. KAHN +

THOMAS J. CANGIALOSI, JR.H

CAROLYN GERACI FROME

BRUCE R. ROSENBERG

MARTIN J. DEVER, JR. + •

KENNETH K. LEHN .

SCOTT K. McCLAIN'

EDWARD P. D'ALESSIO + X

RICHARD D. WOLLOCH +

MICHAEL G. STINGONE

MARCIA R. EAGLE +

DOREEN E. WINN +

CHRISTINE R. SMITH

CHRISTOPHER H. MINKS

HELEN GRIFF WEISGAL +

ROMAN VACCART

93324

PETER G. BANTA +

ARTHUR J. SIMPSON, JR.

DONALD W. DE CORDOVA

FRANK J. FRANZINO, JR.+

RENATA D. LOWENBRAUN +

ELIZABETH EILENDER+'

STEPHEN A. HERMANCOUNSEL TO THE FIRM

ROBERT E. ROCHFORDSPECIAL COUNSEL

i

WALTER G. WINNE 11889-1972!

HORACE F. BANTA ( 1 8 9 5 - 1 9 8 5 1

BRUCE F. BANTA (1932-1983)

. CERTIFIED BY THE SUPREME COURT OF

NEW JERSEY AS A CIVIL TRIAL ATTORNEY

i MEMBER NEW YORK BAR ALSO

• MEMBER CONNECTICUT BAR ALSO

° MEMBER PENNSYLVANIA BAR ALSO

X MEMBER WASHtNGTON, D.C. BAR ALSO

i CPA INJ)

Email address: [email protected] Dial: 201-562-1033

January 25, 2006

Via Certified Mail - RRR ^

United States Environmental ^ . 'Protection Agency V . '•Region 2290 BroadwayNew York, NY 10007-1866

Attention: Deborah Mellott, Esq.

Re: E. M. Sergeant Pulp & Chemical Co., Inc.Demand for Reimbursement of Pant Costs Expended at Lower Passaic River StudyArea in Essex, Hudson, Bergen and Passaic Counties, New Jersey

Dear Ms. Mellott:

As you know, this firm represents E. M. Sergeant Pulp & Chemical Co., Inc. (hereinafter "E. M.Sergeant") in this matter. I am writing again in response to your letter dated May 2, 2005, wherein youalleged responsibility on behalf of E. M. Sergeant in the Lower Passaic River Study Area.

As previously advised by letter dated May 26, 2005, E. M Sergeant disputes such allegation. Asa result of your allegations, E. M. Sergeant retained Great Eastern Ecology to review the matter andprepare a detailed analysis of such, in short Great Eastern concludes that there is no evidence that thealleged actions of E. M. Sergeant had any affect on the quali ty of the Passaic River and it is clear thatthe deleterious effects of the other industrial activities should be the main focus of EPA's action.Specifically, Great Eastern's review revealed that the hazardous substances listed on the EPA ConsentOrder include PCB's and metals, but notably do nor include sodium hydroxide or chlorine, allegedlydischarged by E. M. Sergeant approximately 50 years ago. Further, EPA does not point to any specific

933240001

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WINNE, BANT A, HETHERINGTON.BASRALIAN <&KAHN, P.C. COUNSELLORS AT LAW

Deborah Mellott, Esq.January 25, 2006Page 2 of 2

evidence suggesting a lasting environmental impact from the alleged discharges at E. M. Sergeant.Finally, tables 1 and 2 of Great Eastern's report establish that EPA's treatment of E. M. Sergeant withrespect to discharges of sodium hydroxide and chlorine is unprecedented. I have enclosed GreatEastern's letter report dated October 11, 2005.

Further, as you may be aware, the New Jersey Department of Environmental Protection ("DEP')has recently brought suit against three other companies for discharging highly toxic dioxin in the LowerPassaic River and delaying cleanup of same. Specifically, the DEP filed suit against OccidentalChemical Corporation, Maxis Energy Corporation and TR Solutions, Inc. for their intentional dischargeof Dioxin and other contaminants into the Passaic River, and is seeking to have such responsible partiesdevelop a plan to dredge the resulting contaminated sediment. For your ease of reference, I haveincluded a printout of the DEP press release. This further evidences that businesses other than E. M.Sergeant are responsible for the damage to the environment in the Passaic River Basin.

Even if a "hazardous substance" was discharged by E. M. Sergeant over fifty years ago, pursuantto the recently enacted "de micromus'" provision set forth at 42 U.S.C. 9607(p), "A party that contributedless than 110 gallons of liquid or less than 200 Ibs. of solid materials is deemed de micromus and isexempt from liability." According to Great Eastern's report, such discharge was not likely hazardousand likely had no deleterious affect on the quality of the Passaic River. In addition, the quantity ofhazardous substances was likely de micromus and therefore, E. M. Sergeant qualifies for suchexemption pursuant to the Federal statute.

According to Great Eastern's review of recent EPA and DEP treatment of responsible parties,EPA's suggestion that E. M. Sergeant accept responsibility for past and future costs is arbitrary andcapricious. We believe the EPA is required to apply a rational allocation to this potentially responsibleparty, consistent with the legislative intent underlying the enactment of the de micromus exemption.

Accordingly, we implore the EPA to provide us with an opportunity to meet and discuss themerits of this case consistent with EPA's policy and Federal statute, rather than continuing to treat E. M.Sergeant the same as those businesses that have been identified as significant contributors to thecondition of the Passaic River, when it is clear that the main contributors are other responsible parties.The above if offered for the purpose of settlement discussions only, without prejudice to the rights of E.M. Sergeant, all of which are hereby expressly reserved.

Very4ruly yours, ..

/ / / / //?.Michael G. Stingone

MGS/jhEnclosurecc: E. M. Sergeant Pulp & Chemical Co., Inc.

Daniele Cervino, Esq.S:\SERGENTPULP & CHEMICAL CO\EPA 1-25-06 Ilr.doc

933240002

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GREAT EASTERNE C O L O G Y

SJtN*w 'P.-UXS79.S8CC

Michael Stingone, Esq.Winne, Banta, Hetherington, Basralian & Kahn, PCCourt Plaza South - East Wing21 Main Street, PO Box 647Hackensack, NJ 07602

Re: EM Sergeant Chemical CompanyDate: October 11, 2005

Dear Mr. Stingone:

Great Eastern Ecology, Inc. (GEE) is pleased to submit this letter report providing ourprofessional opinion regarding the EM Sergeant Chemical Company (Sergeant) in theLower Passaic River, New Jersey.

Background

The Lower Passaic River, a 17-mile stretch from the Dundee Dam to Newark Bay has along history of industrialization with a variety of environmental actions, including thesuperfund site Diamond Alkali (Figure 1). Diamond Alkali produced DDT and otherpesticides through 1969. In 1984 United States Environmental Protection Agency(USEPA) listed the Diamond Alkali site as a superfund site. In 1987 the ROD wasreleased for a land-based cleanup which was completed in 2001.

Following this, in 2003 a 'governmental partnership' was formed and includes membersof New Jersey Department of Environmental Protection (NJDEP), USAGE, USEPA,OMR/NJDOT, NOAA, USFWS, ATSDR, and others to assist in recommending acomprehensive solution for the Lower Passaic River Basin. Several documents havealready been released and are available at www.ourpassaic.org.

According to the Passaic River Directive 1, from (NJDEP), 120 Lister Avenue, Newark(Figure 2) is called the Hilton Davis Site and this site includes the following responsibleparties:

Thomasset Colors, Inc.; Hilton Davis Chemical Company; Sterling Winthrop,Inc.; Freedom Chemical Company; 360 North Pastoria EnvironmentalCorporation; Eastman Kodak Company; Drum Service of Newark, Inc.; H.D.Acquisition Corporation; Noveon Hilton Davis Inc.; SD1 DivestitureCorporation; STWB Inc.; PMC Global, Inc.; Plastics ManufacturingCorporation; SmithKline Beecham Corporation; and Bayer Corporation.

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GREAT EASTERNE C O L O G Y

USEPA has named its own list of companies on the potentially responsible party (PRP)list as part of its Administrative Consent Order. In the six-mile Superfund stretch of theRiver, 16 PRPs have been identified. The 17-mile stretch has 41 PRPs identified.Included on the EPA list are the E.M. Sergeant Pulp and Chemical Company, alsolocated at 120 Lister Avenue, Newark, NJ (Figure 3) for a reputed spill of sodiumhydroxide and chlorine in the late 1950s. According to the consent order, sedimentsampling of 80 and 120 Lister Avenue revealed the following hazardous substances:2,3,7,8-TCDD, DDT, 2,4-0,2,4,5-T and 2,4,5-TCP, PCBs, PAHs, mercury, cadmium,copper, lead, nickel and zinc. Sodium hydroxide and chlorine are not named in this list.

Sergeant has been named as a PRP for activities associated with a known or assumedrelease of materials along the Lower Passaic River. The site, located at mile market1.975 on the Passaic River was a chemical transfer facility. Sergeant closed operations in1984. No products are manufactured on site - all products have been purchased fromother suppliers and then resold for a variety of uses. Currently, the site is used to storecontainers.

Our review of the documents available in this case indicates that Sergeant had briefperiods of discharges almost 50 years ago. Unknown quantities of a solution of causticsoda (i.e., sodium hydroxide) and chlorine contained in a 600 gallon vat were apparentlydischarged to the Passaic in 1956. In late 1956/early 1957 efforts to reduce dischargeswere apparently implemented by the company. Apparently no sediment or chemicalsampling took place at this time by USEPA in response to these discharges (notsurprising given the year). The 1950s discharge does not include chemicals associatedwith the current enforcement action.

According to our documentation, EPA is seeking $2,800,000 in past damages and$10,000,000 in future costs from Sergeant. It is GEE's professional opinion that basedupon the alleged spills, and other case studies, this is an outrageously high assessment.GEE strongly recommends EPA reduce this assessment or treat Sergeant as a Diminimisparty.

Sodium hydroxide and chlorine

The two substances that Sergeant has been cited for are sodium hydroxide and chlorine.These two materials are among the most commonly produced substances in the US.While these materials are known to have adverse impacts to ecological systems in largequantities, smaller quantities are permitted to enter ecological systems. For instance,sodium hydroxide, an inorganic compound, is used as a fungicide, herbicide,microbiocide, and for pH Adjustment. Chlorine, also inorganic, is used as a microbiocideand for water treatment. Both substances are known to be toxic to aquatic organisms in asufficiently high dose. The Surface Water Quality Standards found in the New JerseyAdministrative Code (N.J.A.C. 7:9B) do not list screening values that would be relevantto the quantities released in this case.

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GREAT EASTERNE C O L O G Y

Other case studies in New Jersey and elsewhere

Figure 4 shows examples of caustic soda and/or chlorine discharges that have occurred inNew Jersey. Table 1 provides representative case studies in New Jersey and Table 2provides case studies from elsewhere in the US. This is an abbreviated list. Ourpreliminary analysis indicates that no other company has been held to this level offinancial assessment for a spill that has occurred over 50 years ago.

In most instances, there have been little action taken and any financial penalties areextremely low. For instance, in February of 2005, the New Jersey Department ofEnvironmental Protection (NJDEP) fined Kinder Morgan Liquid Terminals, LLC ofCarteret for discharging sodium hydroxide into the Arthur Kill on October 30, 2004. Atank storing sodium hydroxide collapsed and discharged approximately 457,714 gallonsof sodium hydroxide into the Arthur Kill. In that case, DEP investigators found that areashellfish beds were not impacted by the sodium hydroxide spill. The DEP fined KinderMorgan $320,000 for spilling hazardous substances and $35,000 for dischargingpollutants into state waterways. The Kinder Morgan spills dwarfs in magnitude theSergeant reputed spill of the 1950s.

A fair settlement

We believe that it inconceivable to justify a $2.8M assessment combined with $10million dollars in future costs from Sergeant for such a small spill almost 50 years ago. Ifnecessary, to further this assessment we can:

1) Identify environmentally sensitive areas located on and immediately adjacentto the site;

2) Identify chemical migration pathways to any sensitive areas and documentobservations of potential impact which may be attributable to the presence ofchemicals; and

3) Evaluate the nature of chemicals detected at the site and identify chemicals ofenvironmental concern which may adversely affect ecological receptors.

We do not see that the EPA has made such an effort for this PRP and we assert that forEPA to justify this type of assessment a detailed study should be completed. Without arigorous technical study the proposed EPA settlement is far too high and reflects afraction of the Kinder Morgan settlement due to the similarity of hazardous substances,but relative inconsequential quantity of the Sergeant release. The Sergeant settlementshould reflect the Kinder Morgan settlement on a pro rata basis.

Very truly yours,

Mark S. Laska, Ph.D.GREAT EASTERN ECOLOGY, INC.

Page 3 of 11

933240005

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GREAT EASTERNE C O L O G Y

FIGURESand TABLES

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933240006

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• GREAT EASTERNEC 0 L 0 G Y

Figure 1: New York Harbor Watershed with 17 mile stretch of Passaic River speckled (in centrer)

Page 5 of 11

933240007

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GREAT EASTERNE c o L o G Y

Figure 2: USGS Site Aerial Map

SergentChemical Co

GREAT EASTERNH E C O~L 0 G Y

obtain Ed from

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933240008

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'^S GREAT EASTERNE C O L O G Y

Figure 3: Sergent Chemical Co. Site Location&•"

~~~- - - _J!A£--^• i** - j— * ,[^ . —~• jOTi?Ji':-%~*v

SergentChemical Co.

120 Lester Ave.,Newark,

GEEAT EASTERNc c o L c c v-

<.btoan*[Jcom

Page 7 of 11

933240009

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GREAT EASTERNE c o L oG Y

Figure 4: Recorded Disharges of Sodium Hydroxide in the State of New Jersey

Recorded Discharges of SodiumHydroxide In the State,of NewJersey

GREAT EASTERNE C O L O G Y

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51 GREAT EASTERNE C 0 L 0 G Y

Table 1: Recorded Discharges of Sodium Hydroxide in the State of New Jersey and Elsewhere1992:

Incident Name: CP ChemicalsIncident Location: Sewaren, MiddlesexIncident Date: 07/10/1992

Summary: Approximately at 00:01, July 10 1992, 50 % liquid sodium hydroxide was released into the soil matrix on the CPChemicals facility, Arbor street Sewaren, Middlesex, New Jersey. The release occurred because of equipment failure while the unitwas shutdown for maintenance. The spill was finally stopped eight hours later when an employee noticed the incident.

Activities: Immediate response activities were taken to contain the 154 Ibs. of sodium hydroxide. The facility was temporarilyshutdown and the release was vacuumed. An accident investigation took place and the facility was assessed $4,400.

Reference: The Right-to-Know Network http://www.rtknet.org/rtkdata.html Last accessed September 2, 2005

Incident Name: ScheringIncident Location: Union, UnionIncident Date: 01/30/1992

Summary: Approximately at 17:00, January 30, 1992, 50% liquid sodium hydroxide was released in the pump area of the Scheringfacility. During routine operations, there was an equipment failure causing 3, 060 Ibs of sodium hydroxide to spill. One contractor wasinjured and the spill was finally ceased approximately 2 hours after first leak.

Activities: Immediate response activities were taken to contain the spill of sodium hydroxide. The facility was temporarily shutdownand the release was diluted and neutralized then vacuumed. An accident investigation took place and the facility penalized $10,000.

Reference: The Right-to-Know Network http://www.rtknet.org/rtkdata.html Last accessed September 2, 2005

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GREAT EASTERNEC o L o G Y

1994:

Incident Name: Barge Cynthia MIncident Location. Kearny, New JerseyIncident Date: 3/15/1994

Summary: On March 15, 1994, the barge Cynthia M was found listing 70 degrees to port while tied to a pier at the Kuehne ChemicalCompany south of Kearny, New Jersey. The 202-foot Cynthia M, with a capacity of 340,000 gallons, was loaded with310,000 gallons of a 30 percent solution of caustic soda. Her list was suspected to have been caused by open valves thatallowed free communication of liquids between internal tanks. The weather onscene was winds from the southwest at 15 to20 knots. The tidal excursions for the Hackensack River were estimated to be between three-quarters of a mile and onemile. The port side of the barge was completely submerged from center line to rail, resting solidly on the bottom. TheUSCG, New Jersey Department of Environmental Protection and Energy, and New Jersey Marine Police went to the sceneand assessed the situation. Initially, the capsizing of the vessel and its subsequent loss of cargo were the greatest concerns.On March 16 it was estimated that approximately 150,000 gallons of cargo had been lost into the Hackensack River andNewark Bay. The caustic soda escaped from a vent on deck that had submerged because of the vessel's list. At 1235 watertesting of pH near the barge showed readings of 12; by 1535 the readings were 9, indicating that pH was returning tonormal levels. The responsible party hired a marine salver to raise the barge, and state and federal agencies monitored thewater pH until it returned to normal. The USCG was on scene about two weeks monitoring the spill response and salvage.

Activities: NOAA was notified of the incident at 0735 on March 15, 1994, by the USCG. The SSC told the responders that sodiumhydroxide (liquid) was heavier than water (Sp. Gr. = 1.5) and would dissolve in water, producing heat. It is also corrosiveto metals and tissue (skin); therefore, protection of personnel must be considered. Immediate environmental concerns of thepollutant entering the water were a localized fish kill, possible impacts on birds, and the destruction of marsh habitat. Theaddition of a weak acid to neutralize the pH balance was considered; NOAA recommended the use of prop wash or firehoses to increase dilution of the plume and help mix the chemical into the water column. NOAA supported the response forone day.

Reference: http://spilIs.incidentnews.gov/incidentnews/FMPro?-db=histoi-\'&-fonnat=history detail.htm&-lav=historv&ReclD=35477&-fmd Last accessed September 2, 2005

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GREAT EASTERNE C O L O G Y

2004:

Incident Name: Kinder Morgan Liquid Terminals, LLCIncident Location: Arthur Kill, New JerseyIncident Date: 09/30/04

Summary: On October 30, 2004 a steel tank storing sodium hydroxide collapsed and struck an adjacent storage tank. The tankdischarged approximately 457,714 gallons of sodium hydroxide into the Arthur Kill and surrounding land and roads. In addition,74,979 gallons of sodium hydroxide leaked from the adjacent tank but were contained within the facility. DEP fined Kinder Morgan$320,000 for spilling hazardous substances and $35,000 for discharging pollutants into state waterways.

Reference: EPA Newsroom http://www.epa.gov/newsroom/newsreleases.htm Last accessed September 2, 2005

Table 2: Recorded Discharges of Sodium Hydroxide in Other StatesIncident Name: Chemtech Distribution, Inc.Incident Location: District of Missouri, Kansas CityIncident Date: September 1995

Summary: Convicted of discharging several thousand gallons of highly caustic sodium hydroxide into the Missouri River fromChemtech's Kansas City plant in September 1995. Sodium hydroxide, also known as caustic soda, can kill living tissue oncontact. HCI was ordered to pay a fine of $175,000, $21,200 in restitution and serve three years probation. Rober wasordered to pay a $1,000 fine and serve two years probation. The case was investigated by EPA's Criminal InvestigationDivision, the Missouri Department of Natural Resources and the Kansas City, Mo., Fire Department with the assistance ofEPA's National Enforcement Investigations Center.

Reference: EPA Newsroom http://wwvv.epa.gov/newsroonVnewsreleases.htm Last accessed September 2, 2005

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NJDEP-News Release 05/134 - New Jersey Sues Three Companies for Discharging and ... Page 1 of 3

newsnjdep home 1 about dep I index by topic I programs/units I dep online

FOR IMMEDIATE RELEASE

December 14, 2005Contact: Paul Loriquet, OAG (609) 292-4791

Fred Mumford, DEP (609) 984-1795

NEW JERSEY SUES THREE COMPANIES FOR DISCHARGING AND DELAYING CLEANUP OF HIGHLY

TOXIC DIOXIN IN THE LOWER PASSAIC RIVER

Directs Companies to Fund Cleanup Plan for Most

Concentrated Areas of Dioxin Contamination in the River

(05/134) TRENTON ~ Department of Environmental Protection (DEP) Commissioner Bradley M. Campbell and

Attorney General Peter C. Harvey today announced that New Jersey filed suit against Occidental Chemical Corporation,

Maxus Energy Corporation and Tierra Solutions, Inc. for the intentional discharge of dioxin - an extremely dangerous,

cancer-causing chemical - and other contaminants into the Passaic River.

New Jersey also directed the three companies to pay the state $2.3 million to develop a plan to dredge contaminated

sediments in a six-mile stretch of the Lower Passaic River, the first step in reducing dioxin contamination levels. The six-

mile stretch is located in Essex County in the municipality of Newark, and in Hudson County in the municipalities of

Harrison, East Newark, and Kearny.

"Lower Passaic River communities already have waited too long for a cleanup of dioxin that is an immediate threat to

public health," said Commissioner Campbell. "We have gathered enough data and completed enough studies to know

where the most significant source of dioxin is in the river. The time for New Jersey to act is now, and our actions will

complement those of the federal-state partnership addressing long-term restoration of the river. "

"The owners of this chemical plant poisoned the Passaic River and Newark Bay with dioxin that put the health of the public

at serious risk," said Attorney General Harvey. "Our suit and directive demand payment for the cleanup of this dangerous

contamination and compensation for the severe damage done to these major waterways."

Occidental Chemical Corporation discharged a particular form of dioxin known as 2,3,7,8-tetrachlorodibenzo-p-dioxin

(TCDD) and other contaminants from a Newark plant within this six-mile area. Because of tidal movement, the high

concentrations of dioxin in sediment within the six-mile area is an ongoing source of contamination to other areas of the

river and the NJ/NY harbor estuary.

EPA and other agencies have determined that dioxin, TCDD in particular, is one of the most toxic chemicals ever developed

by man. Human exposure to dioxin at extremely low concentrations can cause severe health effects, including cancer and

reproductive damage. Dioxin (TCDD) contamination associated with Occidental Chemical Corporation's operations has

been found in the sediment of the six-mile stretch of the Lower Passaic River at concentrations of up to 5,300,000 parts

per trillion (ppt) and its continued migration has created one of the largest and most toxic contaminant discharges in the

http://www.state.nj. us/dep/newsrel/2005/05_0134.htm 933240014 1/23/2006

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NJDEP-News Release 05/134 - New Jersey Sues Three Companies for Discharging and ... Page 2 of 3

world.

Dioxin concentrations in Passaic River fish and crabs are among the highest reported in the world and present an

imminent and substantial danger to the public and wildlife. As a result of the dioxin released by Occidental Chemical

Corporation, the state has been forced to impose fishing and crabbing bans in the Passaic River for more than 20 years.

Despite the state's ongoing efforts to alert the public of the dangers of eating these fish and crab, New Jersey residents are

still catching and consuming them.

DEP will develop a source control dredge plan to prevent the ongoing spread of dioxin contamination coming from

sediments in the six-mile stretch. By removing and/or controlling the spread of dioxin concentrations in sediment above 17

parts per trillion, the source control dredge plan will begin and accelerate the reduction of dioxin (TCDD) concentrations in

fish and shellfish tissue to levels considered safe for both human consumption and a healthy ecosystem.

Under the directive, Occidental Chemical Corporation, Maxus Energy Corporation and Tierra Solutions, Inc. must pay the

state $2,298,106 within 30 calendar days. If Occidental Chemical Corporation, Maxus Energy Corporation and Tierra

Solutions, Inc. fail to pay DEP for the source control dredge plan, the state has the authority to sue the companies for

reimbursement of all costs incurred, including an amount equal to three times the cleanup and removal cost.

In addition to the imminent and substantial danger that dioxin poses to human and animal populations, the presence of

dioxin in the sediment has an ongoing adverse economic impact on New Jersey's commerce and port industry. The high

levels of dioxin in sediment significantly increase the dredge disposal costs in Newark Bay and surrounding areas.

Site BackgroundFor more than two decades, Occidental Chemical Corporation and its predecessors (Diamond Shamrock Chemical

Company) and others intentionally discharged TCDD, DDT and various other pesticides and chemicals from their

manufacturing plant at the Diamond Alkali site at 80 Lister Avenue and the adjacent property at 120 Lister Avenue on the

banks of the Passaic River in Newark, New Jersey.

While no cleanup work has been done to address the TCDD contamination in the river, the U.S. Environmental Protection

Agency-under its Superfund program-has completed interim work on land at the Diamond Alkali site to address ongoing

discharges of contamination to the Passaic River.

###

Related Links:

Spill Act Directive (pdf)

http://www.nj.gov/dep/nrr/spill%20act%20directive.pdf

DEP Complaint (pdf)

http://www.nj.gov/dep/nrr/Complaint%20Passaic%20River%20Final%20Signed.pdf

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Copyright © State of New Jersey, 1996-2005Department of Environmental ProtectionP. O. Box 402Trenton, NJ 08625-0402

Last Updated: December 15, 2005

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