Facts

The United States of America, on behalf of the Environmental Protection Agency, and the California Department of Toxic Substances Control, brought civil actions pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act for injunctive relief and recovery of costs against Shell Oil Co. The suit was related to the cleanup and containment of hazardous substances at Operable Unit 1 at the Del Amo Superfund site in Los Angeles.

PLAINTIFFS' CONTENTIONS:
The government contended that the site used to include a synthetic rubber manufacturing plant in operation from around 1942 to 1972 that released hazardous substances into the environment. Plaintiffs contended that during the time Shell owned or operated the site hazardous substances were disposed of on certain parts of the site. EPA contended that it incurred at least $1,547,629 in unreimbursed response costs by responding to the release or threatened release of hazardous substances at the site. The California Department of Toxic Substances Control also alleged that Shell was liable to it for reimbursement costs the department incurred or will incur for response actions at the site. They sought to hold Shell responsible for such costs.

Result

Shell Oil Co. entered into a settlement, in the form of a consent decree, agreeing to implement the cleanup work selected by EPA to address contamination at Operable Unit 1 of the Del Amo Site. The settlement further provides for Shell to pay EPA and California DTSC for past response costs in the amount of $1,263,993.81, and for future response costs of overseeing the implementation of the remedial action. The proposed settlement includes the U.S. General Services Administration as a settling federal agency as the successor to the former federal government owners of the synthetic rubber plant, and provides that the United States will reimburse Shell for a portion of the costs. Defendants also agreed to establish and maintain a performance guarantee, initially in the amount of $53,893,000, for the cleanup program and payment of the EPA and the state's oversight costs.