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Break*UNITED STATES ENVIRONMENTAL PROTECTION Ad^f^

REGION VII726 MINNESOTA AVENUE

KANSAS CITY, KANSAS 66101

JJUN 1 8 >991

VIA OVERNIGHT MAIL

Peter Gillon, Esq.Weil, Gotshal & Manges 1615 L St., N.W. Washington, D.C. 20036

RECEIVED

JUN 191991

REME aeenoN

RE: Administrative Order on Consent for the InterChem Site.Alton. Iova

Dear Peter:

Enclosed please find a copy of the signed, file-stamped Administrative Order on Consent for the above-captioned matter (Docket No. VII-91-F-0021). I understand that you will distrib­ute copies of the AOC to all other members of the PRP group. Pursuant to paragraph 65 of the Order, all dates for activities set forth in the AOC will be calculated from today's date.

EPA appreciates the group's efforts and willingness to address the problems posed by the site. If you need any further information, please contact me at (913) 551-7714.

Sincerely,' (-6, Li, cT?/,

Belinda Holmes Assistant Regional Counsel

cc: Jim Colbert, SPFD

30306918

Superfund

UNITED STATES ENVIRONMENTAL PROTECTION AGENCYREGION VII

726 MINNESOTA AVENUE KANSAS CITY, KANSAS 66101

IN THE MATTER OF:

ARLIN H. POTTEBAUM Hospers, Iowa

WILLIAM A. BLOSKAS Greeley, Colorado

W. H. BLOSKAS & ASSOCIATES, Inc.

Greeley, Colorado

FARNAM- Companies, Inc. Phoenix,.Arizona

KALO, Inc.Overland Park, Kansas

LOVELAND INDUSTRIES, Inc. Greeley, Colorado

CORNBELT CHEMICAL COMPANY McCook, Nebraska

TERRA INTERNATIONAL, Inc. Sioux City, Iowa

and

DURVET, Inc.Blue Springs, Missouri

ADMINISTRATIVE ORDER

ON CONSENT

Docket No. VII-9l-F-0021

Proceedings under Section 106 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. § 9606.

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PRELIMINARY STATEMENT

1. This Consent Agreement and Consent Order (Order) is

issued pursuant to the authority vested in the President of the

United States by Section 106(a) of the Comprehensive Environmen­

tal Response, Compensation, and Liability Act of 1980 (CERCLA),

as amended by the Superfund Amendments and Reauthorization Act of

1986 (SARA), 42 U.S.C. § 9606(a), and delegated to the Adminis­

trator of the United States Environmental Protection Agency on

January 23, 1987, by Executive Order 12580, and further delegated

to the Regional Administrator by EPA delegations Nos. 14-14A and

14-14B. The objective of this Order is to respond to a release

or threatened release of a hazardous substance, pollutant or

contaminant, consistent with the National Contingency Plan (NCP).

By entering into this Order, Respondents do not admit to any of

the factual or legal determinations made by EPA and set forth

herein. Except as specifically set forth in Paragraphs 27 and 28

herein, Respondents reserve any rights and defenses Respondents

may have regarding liability in this or any subsequent proceed­

ings regarding the InterChem site. Neither this Order nor any

action taken pursuant to this Order shall constitute an admission

of liability by Respondents with respect to the InterChem site.

Notice of the issuance of this Order has been given to the State

of Iowa through the Iowa Department of Natural Resources (IDNRj.

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DEFINITIONS

2. As used in this Order, the following shall be defined

terms:

A. "Respondents" shall mean the parties who have

agreed to enter into this Administrative Order on Consent with

the EPA and whose signatures are affixed hereto, their employees,

agents, successors, and assigns. The term "Respondents" shall

also include any party admitted by amendment to this Order as set

forth in Paragraph 66 below.

C. "The Contractor" shall mean a gualified Contractor

retained by Respondents to perform any work pursuant to this

Order and approved by EPA and any subcontractor, employee, repre­

sentative, agent or designee thereof.

D. "EPA" shall mean the United States Environmental

Protection Agency and any successor departments or agencies of

the United States government.

E. "IDNR" shall mean [the Iowa Department of Natural

Resources and its representatives.

F. "The Parties" shall mean the Respondents and EPA.

G. "Deliverable(s)" shall mean all reports, plans or

other documents reguired to be submitted pursuant to the terms of

this Order.

H. "The Site" shall mean the InterChem facility locat­

ed on both sides of 10th Street between 1st and 2nd Avenue in the

east central portion of Alton, Iowa, including lots 2, 3, 4, and

5 in Block 3 in the Auditor'/s Subdivision and Replat of Block 3,

4

Original Plat; block 4, Original Plat? and a strip of land along

the railroad tracks running parallel to First Avenue, which is

located in the NE h of the SW \ of Section 2, Township 94 North,

Range 44 West of the 5th P.M.

FINDINGS OF FACT

3. The InterChem facility (the site) is located on both

sides of 10th Street between 1st and 2nd Avenue in the east

central portion of Alton, Iowa, including lots 2, 3, 4, and 5 in

Block 3 in the Auditor's Subdivision and Replat of Block 3,

Original Plat; block 4, Original Plat; and a strip of land along

the railroad tracks running parallel to First Avenue, which is

located in the NE1/4 of the SW1/4 of Section 2, Township 94

North, Range 44 West of the 5th P.M.

4. One portion of the site is comprised of an office/ware­

house building located to the north of 10th Street on block 4.

This building is divided into 1) an office area, 2) a hazardous

waste storage area, 3) a finished goods storage area, 4) a liquid

processing area, 5) a raw materials storage area, 6) a packaging

area, 7) a blending area, and 8) shower and lunch facilities. To

the south of 10th Street on block 3 is a concrete pad which

served as a base for a toxaphene storage tank. Located on the

strip of land between the railroad tracks and First Avenue are

four storage sheds, liquid storage facilities and a concrete pad.

5. The site is located two blocks to the east of the

central business district. The city park, including the city

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swimming pool, are to the east of the site. Mixed business and

residential districts are located to the north and south of the

site. A small meat packing business is located approximately

one-half block west of the toxaphene spill area.

6. From 1976 to 1989, the Site was used for the formulation

of pesticides. At various times the business was operated under

the names Silak, Inc., InterChem, Inc., WHB Specialties, Inc.,

and DeNova Industries, Inc.

7. At various times, Respondents William A. Bloskas and

Arlin H. Pottebaum were shareholders, operators and/or directors

of the four companies mentioned in Paragraph 6. The United

States Small Business Administration (SBA) held a foreclosure

auction of equipment at the Site in April, 1989.

8. In 1989, after the site was no longer used for the

formulation of pesticides, the site was reportedly used as a

facility for the assembly and painting of hog containment pens.

9. The following chemicals have been detected at the site:

toxaphene, lindane, A-BHC, B-BHC, D-BHC, methoxychlor, malathion,

heptachlor, heptachlor epoxide, aldrin, endosulfan, endosulfan

sulfate, endrin, dieldrin, chlordane, DDE, DDD, DDT, coumaphos,

tetrachlorvinphos, fluoranthene, cyclohexanone, dimpylate,

strychnine, polychlorinated biphenyl (PCB), ethyl benzene, xyl­

ene, toluene, naphthalene, cyclohexanone, diethyl phthalate,

limonene, hexadecanoic acid and Captan. Also, samples collected

by the Iowa Department of Natural Resources detected diazinon,

carbaryl and ethylenebisdithiocarbamic salt (zineb).

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10. Early in 1983, toxaphene was spilled from the toxaphene

storage tank onto the concrete pad south of 10th Street. An

April 1983 inspection revealed that the toxaphene storage tank

had been rinsed three times and all toxaphene removed from its

exterior. Soil samples taken from the spill area contained up to

110.000 parts per million (ppm) toxaphene. In November 1983, a

second clean-up action in the area of the concrete pad reduced

levels to 120 ppm in the soil surrounding the tank. Samples

taken from the concrete pad revealed concentrations of up to

120.000 ppm toxaphene in the cracks of the pad. Analysis of two

concrete dust samples collected in June, 1989 by EPA revealed

toxaphene levels of 160 and 120 ppm.

11. In March, 1989, EPA personnel visited the site to

observe the conditions of the facility. Inspectors noted that

some clean-up activity had occurred; however, a large quantity of

hazardous material remained at the site. Product was spilled on

the concrete floor in the building.

12. In April 1989, EPA personnel investigated the site and

collected samples from the site. Analysis of the samples re­

vealed lindane levels of up to 1600 ppm in floor sweepings col­

lected from the warehouse. Leakage from two 55-gallon drums

believed to contain toxaphene was also documented. In addition,

samples taken from the floors, walls, shelves and equipment in

the manufacturing building were found to contain residues of

pesticides.

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13. In April 1989, the SBA held an auction at the site at

which the SBA sold some of the assets of Respondent operators and

owners of the pesticide formulating businesses. The activity

connected with conducting the auction at the site caused pesti­

cide product and waste to be released from the formulating equip­

ment and drums into the environment outside the building.

14. In June 1989, EPA conducted a more extensive removal

assessment at the site. Soil samples, wipe samples, dust samples

and samples from drums were collected and waste pesticide materi­

al remaining on the site was inventoried. Analysis of the sam­

ples revealed the presence of the chemicals identified in Para­

graph 9 at the Site.

15. According to EPA's Weight of Evidence Classification

System for Carcinogenicity, the following compounds are Class B2

carcinogens: toxaphene, A-BHC, heptachlor, heptachlor epoxide,

aldrin, dieldrin, chlordane, DDE, DDT, and Captan. Lindane is

classified as a B2-C carcinogen. Tetrachlorvinphos and B-BHC are

classified as C carcinogens. A Class B2 designation indicates

^hat there is evidence that the substance causes cancer in ani­

mals but insufficient evidence exists that the substance causes

cancer in humans. A Class C designation indicates that the

substance is a possible human carcinogen.

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CONCLUSIONS OF LAW

16. Respondents are all "persons" as defined in Section

101(22) Of CERCLA, 42 U.S.C. § 9601(21).

17. Toxaphene, lindane, A-BHC, B-BHC, D-BHC, methoxychlor,

malathion, heptachlor, heptachlor epoxide, aldrin, endosulfan,

endosulfan sulfate, endrin, dieldrin, chlordane, DDE, DDD, DDT,

coumaphos, ethylbenzene, xylene, naphthalene, diethyl phthalate,

fluoranthene, toluene, cyclohexanone, strychnine, dimethoate,

Captan, diazinon, ethylenebisdithiocarbamic salt, carbaryl and

PCBs are "hazardous substances" as defined in Section 101(14) of

CERCLA, 42 U.S.C. § 9601(14).

18. The InterChem site property as described in this Order,

as well as the formulation and storage equipment located therein,

are "facilities" as defined in Section 101(9) of CERCLA, 42

U.S.C. § 9601(9).

19. The spilling, leaking, escaping, and emitting of haz­

ardous substances into the environment at the site and the dis­

carding and/or abandonment of pesticide-contaminated containers

at the site constitute "releases" as defined by Section 101(22)

of CERCLA, 42 U.S.C. § 9601(22), and pose the threat of further

releases of hazardous substances into the environment as defined

by Section 101(22) of CERCLA, 42 U.S.C. § 9601(22).

20. Respondent William A. Bloskas is an "operator" within

the meaning of Section 101(20) of CERCLA, 42 U.S.C. § 9601(20).

21. Respondent Arlin Pottebaum is an "owner" and "operator"

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within the meaning of Section 101(20) of CERCLA, 42 U.S.C.

§ 9601(20).

22. Respondent SBA is an "operator" within the meaning of

Section 101(20) Of CERCLA, 42 U.S.C. § 9601(20).

23. Respondents Farnam Companies, Inc. (Farnam), Kalo, Inc.

(Kalo), Loveland Industries, Inc. (Loveland), Cornbelt Chemical

Company (Cornbelt), W. H. Bloskas & Associates, Inc. (WHB

Assoc.), Terra International, Inc. (Terra) and Durvet, Inc.

(Durvet) are "personfs] who by contract, agreement, or otherwise

arranged for disposal or treatment, or arranged with a transport­

er for transport for disposal or treatment, of hazardous sub­

stances" at a facility within the meaning of Section 107(a)(3) of

CERCLA, 42 U.S.C. § 9607(a)(3).

24. Respondents are each liable pursuant to Section 107(a)

of CERCLA, 42 U.S.C. § 9607(a), for all costs associated with the

removal activities required by this order.

DETERMINATION|

25. The Regional Administrator of EPA, Region VII, based on

the Findings of Fact and Conclusions of Law recited above, has

determined that:

A. There is an imminent and substantial endangerment

to public health, welfare, or the environment because of an

actual or threatened release of hazardous substances from the

facility; and

B. The response actions required by this Order are

necessary to protect the public health and welfare and the envi­

10

ronment and that said response actions are consistent with the

provisions of CERCLA and the NCP.

EFFECT OF SETTLEMENT

26. Respondents dispute the factual allegations and legal

conclusions contained herein. The execution of this Order is not

an admission of fact or liability with respect to any claim

raised by any party, including any third party, relating to the

matters set forth herein.

ORDER

27. Based on the foregoing, but without trial or adjudica­

tion of any issues of fact or law, and without Respondents'

admissions of any fact or finding of liability, IT IS HEREBY

ORDERED AND AGREED to by the Parties that:

PERSONS COVERED

28. This Order shall be binding upon Respondents, their

agents, successors and assigns and upon all persons acting on

behalf of the Respondents including, but not limited to, contrac­

tors and consultants acting for the Respondents.

29. Respondents admit and will not contest EPA's jurisdic­

tion to issue this Order. Respondents agree to undertake all

actions required by the terms and conditions of this Order.

30. All activities undertaken by Respondents pursuant to

this Order shall be carried out in accordance with all applicable

federal, state and local laws and regulations as well as all

11

applicable EPA guidance as may be provided to Respondents by EPA.

WORK PLAN

31. Within sixty (60) days of the effective date of this

Order, Respondents shall submit a detailed Work Plan to the EPA

Remedial Project Manager, Jim Colbert, 726 Minnesota Avenue,

Kansas City, Kansas, 66101 for review and approval. The Work

Plan shall address the activities outlined in items 1, 2.a., 4

through 8 and 10 and 11 of the Scope of Work. The Work Plan

shall include, but is not necessarily limited to, the following:

A. The names and qualifications of personnel to be

involved in any phases of the work. All work performed pursuant

to this Order shall be under the direction and supervision of a

qualified professional engineer, certified geologist or other

qualified professional with expertise in hazardous waste site

investigations and the development, design and execution of

response actions. Prior to the initiation of any work at the

site, Respondents shall notify EPA of the identity and qualifica­

tions of such engineer, geologist, or other professional and any

contractors and subcontractors engaged by Respondents to perform

the work. Contractors so engaged shall be subject to EPA approv­

al, and no work will begin at the site until such approval has

been given.

B. A detailed description of the work to be performed in

accordance with items l, 2.a., 4 through 8, and 10 and 11 of

Exhibit A, Scope of Work, which is hereby fully incorporated into

12

this Order. Activities described in the Work Plan should include

but should not be limited to: sampling methods, chain of custody

procedures, and sample analysis; quality control and quality

assurance procedures, to be carried out in accordance with EPA

protocols; health and safety plans for the protection of workers,

visitors to the facility and the general public; and procedures

for the disposition of any soil, debris, pesticide product or

other waste materials generated by or removed in the course of

site investigation activities.

C. The Work Plan shall set forth a timetable for

implementation and completion of the work.

32. The Work Plan shall be subject to EPA review and ap­

proval in accordance with Paragraph 41 of this Order. Upon final

EPA approval, the Work Plan shall be fully incorporated into this

Order.

IMPLEMENTATION OF THE WORK PLAN; SITE CHARACTERIZATION REPORT

33. Within fourteen (14) days of receipt of EPA approval of

the Work Plan, Respondents shall begin implementation of the Work

Plan in accordance with the procedures set forth therein and with\

the Scope of Work.

34. Within thirty (30) days of completion of activities

conducted pursuant to the Work Plan, Respondents shall submit a

Site Characterization Report to EPA for review and approval in

accordance with Paragraph 41 below (Review of Deliverables). The

Site Characterization Report shall describe all site investiga­

13

tion activities and shall summarize all information collected

during implementation of the Work Plan.

SOIL/CONCRETE REMOVAL WORK PLAN

35. If EPA determines, based on the analytical results of

samples from the Site, that contaminant levels in the soil are

above the action levels set forth in the Scope of Work, Respond­

ents shall submit a Soil/Concrete Removal Work Plan within forty-

five (45) days of EPA approval of the Site Characterization

Report. The Soil/Concrete Removal Work Plan shall address the

activities set forth in item numbers 2.b., 3 and 4 in the Scope

of Work and shall be subject to EPA review and approval as set

forth in Paragraph 41 below (Review of Deliverables). The

Soil/Concrete Removal Work Plan shall contain a description of

quality control and quality assurance procedures to be carried

out in accordance with EPA protocols and shall set forth the

procedures to be used to transport all hazardous substances

removed from, treated at, or generated by clean-up activities at

the site to an EPA-approved treatment, storage, or disposal

facility in compliance with all applicable state, local and

federal laws and regulations, including specifically the require­

ments of 40 C.F.R. Part 264, Subpart E. Prior to removal of the

materials generated during the site cleanup, the facility receiv­

ing said materials shall be verified to be in compliance with

Section 3004 and 3005 of the Solid Waste Disposal Act and alli

applicable state requirements, i

\i

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IMPLEMENTATION OF THE SOIL/CONCRETE REMOVAL WORK PLAN

36. Implementation of the Soil/Concrete Removal Work Plan

shall begin within thirty (30) days of final EPA approval.

Implementation of the Soil/Concrete Removal Work Plan shall

achieve the clean-up levels developed by EPA pursuant to the

Scope of Work and shall achieve all performance standards or any

other requirement set forth in the approved Soil/Concrete Removal

Work Plan and the Scope of Work. Failure to completely perform

all requirements set forth in the Scope of Work shall .be deemed a

violation of the terms of this Order and shall be subject to the

provisions of Paragraphs 52 — 56 of this Order (Penalties for

Noncompliance).

37. All work completed pursuant to the Work Plan or the

Soil/Concrete Removal Work Plan shall be performed under the

supervision of the On-Scene Coordinator (OSC), Remedial Project

Manager (RPM), or their designee. If, at any time, the OSC

and/or RPM determine that the work is not being performed in

accordance with EPA guidelines and standards or in accordance

with the terms of this Order, the OSC and/or RPM shall have the

authority to require Respondents to perform the work in accord­

ance with their instructions to avoid or mitigate endangerment to

the public health, welfare, and/or environment which they believe

will occur, to order work stoppage, or to cause EPA or other

parties to undertake any of the response actions specified in

this Order. If EPA undertakes or causes to be undertaken the

15

response actions specified in this Order, such activity shall not

relieve Respondents of liability for the costs incurred by the

Government in undertaking such actions or liability for payment

of civil penalties.

38. Respondents shall complete all activities included in

the Work Plan and the Soil/Concrete Removal Work Plan in accord­

ance with the schedules contained in each EPA-approved Work Plan.

39. Additional time shall be provided to complete the

foregoing activities in the event of a delay beyond thirty (30)

days in EPA's review of any deliverable submitted pursuant to

this Order.

ENGINEERING EVALUATION REPORT

40. Within twenty-two (22) weeks of the effective date of

this Order, Respondents shall submit an Engineering Evaluation

Report (EER) analyzing removal alternatives for addressing the

releases within the abandoned production and storage areas at the

site. The EER shall be performed in accordance with item num­

bered 9 in the attached Scope of Work, and in accordance with all

applicable provisions of CERCLA, the NCP and all applicable EPA

policy or guidance documents. The EER shall be submitted to

EPA's Remedial Project Manager at the address given in Paragraph

42 of this Order.

A. The EER shall be prepared under the direction and

supervision of a qualified professional engineer, certified

geologist or other qualified professional with expertise in

16

hazardous waste site investigations and the development, design

and execution of response actions. Within thirty (30) days of

the effective date of this Order, Respondents shall notify EPA of

the identity and qualifications of such engineer, geologist, or

other professional and any contractors and subcontractors engaged

by Respondents to prepare the EER. Qualified professionals and

contractors so engaged shall be subject to EPA approval in ac­

cordance with the provisions of Paragraph 41 of this Order.

REVIEW OF DELIVERABLES

41. All deliverables required to be submitted pursuant to

this Order shall be subject to EPA review and approval. Upon

receipt of a deliverable, EPA, after reasonable opportunity for

review, shall: approve, in whole or in part, the submission;

disapprove, in whole or in part, the submission, notifying Re­

spondents of deficiencies; direct that the Respondents modify the

submission; approve the submission upon specified conditions;

modify the submission to cure the deficiencies; or any combina­

tion of the above.

A. In the event of approval, approval upon conditions, or

modification by EPA, Respondents shall proceed to take any action

required by the Work Plan or the Soil Removal Work Plan as ap­

proved or modified by EPA subject only to their right to invoke

the Dispute Resolution procedures set forth in Paragraph 57,

(Dispute Resolution) with respect to the modifications or condi­

tions made by EPA.

B. Upon receipt of a notice of disapproval or a notice

17

requiring a modification, Respondents shall, within fourteen (14)

days or such other time as specified by EPA in such notice,

correct the deficiencies and resubmit the plan, report, or other

item for approval. Notwithstanding the notice of disapproval,

Respondents shall proceed, at the direction of EPA, to take any

action required by any non-deficient portion of the submission.

C. In the event that a resubmitted plan, report or other

item or portion thereof is disapproved by EPA, EPA may again

require Respondents to correct the deficiencies in accordance

with the preceding Paragraphs. EPA also retains the right to

amend or develop the plan, report or other item. Subject only to

their right to invoke procedures set forth in Paragraph 57 of

this Order (Dispute Resolution), Respondents shall implement any

such plan, report, or item as amended or developed by EPA.

D. If, upon the first resubmission or upon any subsequent

resubmission, the plan, report, or item is disapproved by EPA,

Respondents shall be deemed to be in violation of the provision

of this Order requiring Respondents to submit such plan, report,

or item unless Respondents invoke the dispute resolution proce­

dures set forth in Paragraph 57 (Dispute Resolution) and prevail

on the dispute. The provisions of Paragraph 57 (Dispute Resolu­

tion) and Paragraphs 52 — 56 (Penalties for Noncompliance) shall

govern the implementation of the Work and accrual and payment of

any stipulated penalties during Dispute Resolution. Implementa­

tion of any portions of the submissions which are not deficient

shall not relieve Respondents of any liability for stipulated

18

penalties under Paragraphs 52 — 56 (Penalties for Noncompli-

ance).

E. All plans, reports, and other items required to be

submitted to EPA under this Order shall, upon approval by EPA, be

deemed to be incorporated into and an enforceable part of this

Order. In the event EPA approves a portion of a plan, report, or

other item required to be submitted to EPA under this Order, the

approved portion shall be deemed to be incorporated in and an

enforceable part of this Order.

DESIGNATED PROJECT COORDINATORS

42. Documents, including reports, approvals, disapprovals,

and other correspondence which must be submitted under this

Order, shall be sent by certified mail, return receipt requested,

to the following addressees or to any other addressees which the

Respondents and EPA designate in writing:

A. Documents to be submitted to EPA should be sent to:

Remedial Project Manager U.S. EPA Region VII 726 Minnesota Avenue Kansas City, KS 66101

B. Documents to be submitted to the Respondents should be sent to:

Peter M. Gillon, Esq.Weil, Gotshal & Manges 1615 L Street, N.W.Washington, DC 20036

43. On or before the effective date of this Order, EPA and

19

Respondents shall designate their own Project Coordinator. Each

Project Coordinator shall be responsible for overseeing the

implementation of this Order. To the maximum extent possible,

communications between the Respondents and EPA shall be directed

to the Project Coordinator by mail, with copies to such other

persons as EPA and Respondents may designate.

REIMBURSEMENT OF COSTS

44. Respondents shall reimburse EPA for all costs incurred

by EPA in the oversight of the Site activities required pursuant

to the Scope of Work, including but not limited to the cost of

analysis of a reasonable number of split samples, within thirty

(30) days of receipt by Respondents of a written statement of

such costs. Respondents shall make payment by cashier's check or

by certified check for the amount of said costs. The check shall

be made payable to the Hazardous Substance and Response Trust

Fund and shall be remitted to:

U.S. Environmental Protection Agency Superfund Accounting

ATTN: Superfund Collection Office Post Office Box 371003M Pittsburgh, PA 15251

RECORD PRESERVATION AND AVAILABILITY

45. Respondents shall preserve all records relating to

response actions at the facility for a minimum of seven (7) years

after termination of this Order unless otherwise instructed by!I

EPA. Such records include sampling, analyses, and chain-of-I1\

\

20

custody records, manifests, trucking logs, receipts, reports,

records of destination of the hazardous substances, correspond­

ence, and other documents relating to response actions at the

site.

46. Upon request by EPA, Respondents shall promptly make

available all records and information within their care, custody,

and control which includes that of Respondents' contractor

relating to response actions at the site.

SITE ACCESS

47. As to such portions of the site as they" control, Re­

spondent owners of the site shall provide site access to EPA,

state and local government authorities and their authorized

representatives to enter and freely move about at the site and in

all other areas where response actions pursuant to this Order are

implemented for the purpose of inspecting records, reviewing the

progress in carrying out the terms of this Order, conducting such

sampling and tests as EPA deems necessary, and conducting any

response actions deemed necessary by EPA. If any portion of the

site or any off-site areas to which access is needed to carry out

the terms of this Order is owned, in whole or in part, by parties

other than Respondents, Respondents shall obtain, or use their

best efforts to obtain, site access agreements from the present

owner(s) within thirty (30) days of the effective date of this

Order. Such agreements shall provide access for EPA, its con­

tractors and oversight officials, the state and its contractors,

and the Respondents or Respondents' authorized representatives,

21

and such agreements shall specify that Respondents are not EPA's

representative with respect to liability associated with site

activities. Copies of such agreements shall be provided to EPA

prior to Respondents' initiation of field activities on property

not owned by Respondents. For the purposes of carrying out the

requirements of this paragraph, "best efforts" shall include the

payment of reasonable compensation to the current owner of any

affected property. If access agreements are not obtained within

the time frame referenced above, Respondents shall immediately

notify EPA of its failure to obtain access, and EPA may obtain

access for the Respondents or perform any necessary tasks or

activities using EPA contractors. If EPA performs any such tasks

or activities, Respondents shall reimburse EPA for all costs

incurred in performing such tasks or activities.

48. EPA shall have the right to monitor and direct the re­

sponse actions being performed by Respondents pursuant to the

iauthority granted to EPA by 40 C.F.R. Part 300 et sea.. including

but not limited to:

A. determining whether further response actions

relating to this site are necessary and requiring Respondents to

carry out any such further actions, pursuant to its authority

under Section 106 of CERCLA, 42 U.S.C. § 9606, Section 7003 of

RCRA, 42 U.S.C. § 6973, and other applicable statutes;

B. requiring Respondents to cease performance of

response actions, any portion thereof or any other activities at

RESERVATION OF RIGHTS

22

the site which, in the opinion of EPA, may present or contribute

to an endangerment to public health, welfare, or the environment

or cause the release or threat of release of hazardous sub­

stances, pollutants or contaminants, from the site. In the event

that EPA requires the cessation of activities at the site, EPA

shall then have the authority to require that Respondents perform

response activities in accordance with EPA's instructions, cor­

rect any work deemed by EPA to have been performed incorrectly,

or to proceed with response activities at the expense of the U.S.

government and proceed under Section 107 of CERCLA to collect the

costs incurred from Respondents.

49. Nothing contained in this Order shall be construed to

prevent EPA from seeking legal or equitable relief to enforce the

terms of this Order or from taking other actions it deems appro­

priate or necessary to protect public health or welfare or the

environment. Because the work required by this Order addresses

only a portion of the response activities EPA believes are neces­

sary at the Site, EPA specifically reserves the right to require

any non-settling parties and/or Respondents to carry out any

further response actions pursuant to its authority under Section

106 of CERCLA, 42 U.S.C. § 9606, or to perform such further

response actions and to seek recovery of any costs so incurred as

set forth in Paragraph 50 below.

50. EPA reserves the right to bring any action against

Respondents pursuant to Section 107 of CERCLA for recovery of any

unrecovered past and future costs associated with response

23

activities at the site, or any action under any other legal

authority including, but not limited to, actions for injunctive

relief, penalties, and punitive damages pursuant to CERCLA.

51. Following satisfaction of the requirements of this

Order as set forth in Paragraph 68 herein, Respondents shall have

resolved their liability to EPA for the work performed by Re­

spondents pursuant to this Order. Respondents are not released

from any liability they may have for any response actions taken

beyond the scope of this Order relating to any response actions

taken by Respondents which are not specifically set forth in this

Order, the Scope of Work, or any EPA-approved plans. Respondents

are not released from any liability they may have for any future

response actions at the Site which may be taken or deemed neces­

sary by EPA in the future.

PENALTIES FOR NONCOMPLIANCE

52. If Respondents fail to comply with any requirement ap­

plicable to them in Paragraphs 31, 33, 34, 35, 36, 39, 40, 44

and/or 47 of this Order or to perform all required work by the

deadlines or milestones set forth in any Work Plan, Respondents

shall pay to the United States stipulated penalties in the fol­

lowing amounts for each day of each and every violation of said

requirements:

Period of Delay Penalty Per Violation Per Day

1st through 14th day $ 750.00each subsequent day 1,500.00

24

53. Stipulated penalties shall begin to accrue on the day

that performance is due or noncompliance occurs, and shall con­

tinue to accrue until the noncompliance is corrected. Separate

penalties shall accrue for each separate violation of this Order

provided, however, that each violation arises from the same act

or omission by Respondents. Unless the provisions of Paragraph

57 (Dispute Resolution) are invoked and penalties are waived as

set forth therein, all penalties payable to EPA under this provi­

sion shall be paid within thirty (30) days of receipt by Respond­

ents of notification of noncompliance. Interest shall begin to

accrue on the unpaid balance at the end of the thirty-day period

at the rate established by the Department of the Treasury under

31 U.S.C. § 3717.

54. Payments of stipulated penalties shall be paid by

certified check made payable to "EPA Hazardous Substances Super­

fund" and shall be mailed to the address listed in Paragraph 44

(Reimbursement of Costs) above.

55. Stipulated penalties as set forth above shall be in

addition to any other remedies, sanctions, or penalties which may

be available to the United States by reason of Respondents'

failure to comply with requirements of this Order.

56. Respondents are hereby advised that:

A. Pursuant to Section 106(b) of CERCLA, 42 U.S.C.

§ 9606(b), any person who willfully violates or fails or refuses

to comply with this Order may be fined not more than $25,000 per

25

day for each day in which such violation occurs or failure to

comply continues; and

B. Pursuant to Section 107(c)(3) of CERCLA, 42 U.S.C.

§ 9607(c)(3), any person who is liable for a release or threat of

release of a hazardous substance and who, without sufficient

cause, fails to perform the removal or remedial actions specified

in an Order issued pursuant to Section 106 of CERCLA may be

liable to the United States for punitive damages in an amount at1

least equal to, and not more than three times, the amount of any

costs incurred by the government as a result of such failure to

take the required actions.

DISPUTE RESOLUTION

57. If Respondents disagree, in whole or in part, with any

EPA disapproval or other decision or directive made by EPA pursu­

ant to this Order, Respondents shall notify EPA verbally within

seventy-two (72) hours of the event giving rise to the dispute

that a dispute exists. Such verbal notification shall be fol­

lowed within seventy-two (72) hours by notification in writing of

their objections and the basis therefor. EPA and Respondents

shall then have an additional fourteen (14) calendar days from

EPA's receipt of Respondents' objections to attempt to resolve

the dispute. If agreement is reached, the resolution shall be

reduced to writing, signed by Representatives of each party and

incorporated into this Order. If the parties are unable to reach

agreement within the fourteen (14) day period, each party shall,

26

within fourteen (14) days, submit a written statement of position

regarding the dispute to the Regional Administrator, EPA Region

VII, whose decision shall be final and binding upon both parties.

Such decision shall be incorporated into and made an enforceable

part of this Order. Stipulated penalties as set forth in Para­

graphs 52 — 56 of this Order shall accrue during dispute resolu­

tion but shall be waived if Respondents prevail on the disputed

matter.

OTHER CLAIMS

58. Nothing in this Order shall constitute or be construed

as a release by EPA of any claim, cause of action, or demand in

law or equity against any party not a signatory to this document

for any liability relating to the site arising out of the genera­

tion, storage, treatment, handling, transportation, release, or

disposal of any hazardous substances, pollutants, or contami­

nants .

59. Nothing in this Order shall constitute or be construed

as a release by Respondents of any claim, cause of action, or

demand in law or equity against any party for any liability

relating to this site arising out of the generation, storage,

treatment, handling, transportation, release, or disposal of any

hazardous substances, pollutants or contaminants.

INDEMNIFICATION

60. The United States government shall not be liable for

any injuries or damages to persons or property resulting from

27

acts or omissions of Respondents or Respondents' employees,

agents, or contractors in carrying out activities pursuant to

this Order, nor shall the United States government be held out as

a party to any contract entered into by Respondents, their em­

ployees, agents, or contractors in carrying out activities pursu­

ant to this Order.

FORCE MAJEURE

61. Respondents shall perform all tasks set forth in this

Order within the time limits set forth herein, unless performance

is delayed by events which constitute a "Force Majeure." "Force

Majeure" is defined for the purposes of this Order as an event

arising from causes entirely beyond the control of Respondents

and of any entity controlled by Respondents, including their

contractors and subcontractors, which delays or prevents the

performance of any obligation under this Order. "Force Majeure"

does not include unanticipated or increased costs, changed finan­

cial circumstances, change in ownership of the facility, non­

attainment of the goals and standards set forth herein or normal

precipitation events.

62. When circumstances occur which the Respondents believe

constitute a Force Majeure event, Respondents shall notify the

RPM orally within forty-eight (48) hours after Respondents become

aware of the occurrence of such event. If the RPM is unavail­

able, Respondents shall notify the Director of the Waste Manage­

ment Division, Region VII. Within eight (8) working days after

notice is given of the occurrence of such event, Respondents

28

shall provide EPA with a written description of such event,

including the cause(s) of any actual delay or noncompliance, the

anticipated duration of the delay, the measures taken by Respond­

ents to prevent or minimize the delay or correct the noncompli­

ance, and the timetable for implementation of such measures.

Respondents shall adopt all reasonable measures to prevent or

mitigate any anticipated delay. Failure to give timely oral and

written notice to EPA in accordance with this Paragraph shall

constitute a waiver of any claim of Force Majeure with respect to

the circumstances in question.

63. If EPA agrees that a delay is or was caused by a Force

Majeure event, the schedule for the activities delayed by the

event shall be extended for a period equal to the delay resulting

from such an event. Whether an event is a Force Majeure event is

subject to the Dispute Resolution procedures set forth in Para­

graph 57 herein.

64. In proceedings on any dispute regarding a delay in per­

formance or other noncompliance, Respondents shall have the

burden of proving (1) that the delay or noncompliance is or was

caused by a Force Majeure event; and (2) that the amount of

additional time requested is necessary to compensate for that

event.

EFFECTIVE DATE AND SUBSEQUENT MODIFICATION

65. This Order shall become effective upon the date on

which it is signed by the Regional Administrator or his delega­

tee.

29

66. This Order may be amended by agreement of the parties

and by the Regional Administrator or his delegatee. Such amend­

ments shall be in writing and shall have as the effective date

the date on which Respondents receive a copy of the amendment

signed by the Regional Administrator or his delegatee. Parties

not signatories to the original agreement may be added by the

amendment procedure set forth in this Paragraph. Any party added

by amendment is fully bound by the terms of this Order and is

jointly and severally responsible, with all other Respondents,

for carrying out the terms of this Order.

TERMINATION OF ORDER

67. The provisions of this Order shall remain in full force

and effect until completion of all response actions required by

this Order, with the exception of the record retention require­

ments of Paragraphs 45 and 46, the reimbursement of costs pursu­

ant to Paragraph 44, or the payment of penalties pursuant to

Paragraphs 52 — 56 of this Order, the requirements of which

shall survive the completion of the response actions required by

this Order.

30

IN WITNESS WHEREOF, the parties have affixed their signa­

tures below:

UI3l 91

Datle

For theUnited States Environmental

Protection Agency Region VII

Belinda Holmes Assistant Regional Counsel

I hereby consent to be bound by the terms of the foregoing Admin­istrative Order on Consent and verify that I am authorized to bind the party named below.

I hereby consent to be bound by the terms of istrative Order on Consent and verify that I bind the party named below.

the foregoing Admin- am authorized to

William A. Bloskas

r z-!\ /i£ 5\*Carms i the

Fhe person

aZ'rS. 1 nO . uereov CollSeoreaving Admin 1 s t vat.ive whose signature appears

■.‘redei1 w

ine is authorized to sign this document on* • 1:. ihosKas <.■>. Associates. Inc.

be <:>•:;nn•_ .nverifies benaii .■

Vi . ri .

&L£&-rvf & ^1/ J

Di.OSk.cl5 «!y As 500 icitOS

l

Farnam, Inc. hereby consents to be bound by the terms of theAdministrative Order on Consent. The person whose

signature appears below verifies that he/she is authorized tosign this document on Farnam's behalf.

Dated-UcD,

Kalo, Inc. hereby consents to be bound by the terms of the fore­going Administrative Order on Consent. The person whose signa­ture appears below verifies that he/she is authorized to sign this document on Kalo's behalf.

Loveland Industries, Inc. hereby consents to be bound by theterms of the foregoing Administrative Order on Consent. Theperson whose signature appears below verifies that he/she isauthorized to sign this document on Loveland Industries' behalf.

r/? ?/

Date ustries^ Inc.

^^^^kslt Chemical Company hereby consents to be bound by the terms of the foregoing Administrative Order on Consent. The person whose signature appears below verifies that he/she is authorized to sign this document on behalf of Cornbelt Chemical Company.

Terra International, Inc. hereby consents to be bound by the terms of the foregoing Administrative Order on Consent. The person whose signature appears below verifies that he/she is authorized to sign this document on behalf of Terra Internation-

f Inc •

/79J

Mark A. Kalafut Vice President

and General Counsel For Terra International, Inc,

Date

tiECu

JUN 1 2 ]or.:

epa cnsl/cercl/REGION VII

Durvet, Inc. hereby consents to be bound by the terms of the foregoing Administrative Order on Consent. The person whose signature appears below verifies that he/she is authorized to sign this document on Durvet's behalf.

v_jt/A/er (j> 199/

--------- 1------For Durvet Inc.Date

IT IS SO ORDERED.

United States Environmental Protection Agency, Region VII

Exhibit A

SCOPE OF WORK

Specific tasks required, under this order, shall include:

1. The removal and reclamation of all drums stored in the wooden sheds located on the eastern portion of the Interchem site. Materials that have been spilled in the sheds shall be collected, transferred to secure containers, and relocated to the main Interchem building. A thorough vacuuming and visual inspection of the sheds will be required to assure spilled materials have been removed.

2a. Contamination of soils (exterior and under sheds) shall be evaluated. Selection of the areas for evaluation shall be based on visual inspection in the field, historical use information, previous sampling data and engineering judgment. A sampling plan, subject to the U.S. Environmental Protection Agency (EPA) approval, will be developed relevant to each area to ensure representative data is obtained. Analysis of soil samples shall be performed for the total pesticides listed in the EPA Contract Lab Program statement of work (the Target Compound List) plus malathion, coumaphos, Captan, dichlorvos, diazinon, dimethoate, carbaryl, and the ethylbisdithiocarbamic salts, Zineb and Maneb. In addition, a limited number of soil samples shall be analyzed for PCBs, as well as volatiles, semi-volatiles, and the inorganic target analytes listed in the EPA CLP statement of work (the Target Compound Lists) plus cyclohexanone. Analytical methods shall be subject to EPA approval.

2b. The results of analyses described in 2a above will be presented in the Site Characterization Report (SCR) and will be used to develop a list of Contaminants of Concern. The SCR shall be subject to EPA review and approval. Contaminants of Concern will be chosen from the pesticides analyzed per 2a above and the list of compounds in Table 1 below. Selection of Contaminants of Concern will be based on prevalence (i.e., frequency of detection), maximum concentrations detected, environmental mobility, environmental persistence, and toxicity and/or carcinogenicity of the individual contaminants detected. Action levels for Contaminants of Concern which are pesticide active ingredients will be 10 parts per million total pesticides, unless alternative health-based action levels are approved by EPA. In addition, action levels for the Contaminants of Concern listed in Table 1 are subject to EPA approval.

TABLE 1

VOLATILES SEMI-VOLATILES INORGANICS

Chloromethane Chloroethane Methylene Chloride Acetone1.1- Dichloroethene1.1- Dichloroethane1.2- Dichloroethene (total)Chloroform1.2- Dichloroethane1.1.1- Trichloroethane Carbon Tetrachloride Trichloroethene1.1.2- Trichloroethane Benzene 2- Hexanone Tetrachloroethene Toluene1.1.2.2- Tetrachloroethane Chlorobenzene Ethyl Benzene Xylenes (total)Cyclohexanone

A Soil/Concrete Removal Work Plan, subject to EPA approval, shall be prepared in the event that representative concentrations of total pesticides exceed the approved action levels for soils or the concrete pad (see item 4), or representative concentrations of the compounds listed in Table 1 exceed the approved action levels for soils. The effectiveness of any removal action shall be verified through confirmatory sampling and analyses. Removal action shall continue until representative concentrations of the Contaminants of Concern are below action levels. After these EPA-approved action levels have been achieved, clean soil will be placed in the excavated areas, compacted and graded.

Phenol2-Chlorophenol1.3- Dichlorobenzene1.4- Dichlorobenzene 1,2-Dichlorobenzene Isophorone2.4- Dichlorophenol Naphthalene Hexachlorobenzene Pentachlorophenol Fluoranthene

ArsenicCadmiumCopperManganeseMercurySodiumZinc

3. Prior to the removal of soils and/or the concrete pad an evaluation as to whether air monitoring and/or special engineering controls are necessary shall be included in the Soil/Concrete Removal Plan. This evaluation will be based on the level and nature of the contaminants found in the soils and/or concrete and the extent of proposed removal actions. Health- based action levels for potential inhalation will be developed using the same procedure indicated for soils in paragraph 2b.The health-based action levels and the implementation of air monitoring and/or engineering controls are subject to EPA approval and will be based on the protection of human health.

Analytical results of air samples in excess of the health-based action levels will require submittal of a plan, subject to EPA approval, that addresses the modification of on-site activities to mitigate the release of the toxic material and verifies these actions are effective. Analysis shall be conducted under an EPA approved QA/QC plan.

4. The exterior concrete pad, where the 1983 toxaphene spill occurred, shall be cleaned or treated to a level equal to or less than 60 mg/kg total pesticides in the top 1/4 inch of the final surface. The target compound list and analytical methods for total pesticides shall be consistent with those listed in the U.S. EPA CLP statement oi; work (the Target Compound List). A sampling approach, subject to EPA approval, will be developed relevant to the concrete pad to ensure representative data is obtained. The effectiveness of any removal action shall be verified through confirmatory sampling and analyses. If 60 mg/kg is not -achievable the contaminated portions of the pad must be disposed as a RCRA waste at an acceptable permitted facility.

5. A groundwater study plan shall be developed and submitted to EPA for approval to determine whether released materials from the site have caused contamination of the groundwater above health based action levels. The groundwater study will be implemented in accordance with the approved plan.

6. A comprehensive inventory of all containers of pesticide formulation raw materials, products, and other wastes will be undertaken and copies of the inventory will be submitted to EPA. The inventory shall include development of container records for all tanks, drums, bags, bottles, and other containers on site. The location of each container shall be photographically recorded and the photograph affixed to the record. Where containers appear ruptured, leaking, or in an unstable position, measures will be taken to stabilize those containers by overpacking, transferring to a new container, or relocating to a more secure location.

7. The Interchem pesticide formulation building and the wooden sheds shall be secured and access shall be controlled. Plywood and, if necessary, plastic covers will be placed over structure openings. New locks will be installed to limit access to those authorized by the Interchem PRP Group and/or EPA.

8. Offsite soils located on Lot 1, Block 3 shall be sampled and removal action taken that is necessary to meet the soil cleanup criteria cited in jitems 2a and 2b above. Additional off-site soil sampling and removal action, consistent with items 2a and 2b above, may be necessary as determined by EPA based upon the evaluation of soil sample analytical results and the

\I

likelihood of off-site migration of contaminants.

9. An Engineering Evaluation will be conducted to address the cleanup of the pesticide formulation building, the wooden sheds, and the above ground storage tanks. This plan shall review alternative site characterization and cleanup plans for the building interior, the wooden sheds, and the above ground storage tanks. The evaluation shall address any pre-cleanup requirements, sampling methodologies, cleanup methodologies, cleanup action levels and post-cleanup confirmation sampling and/or monitoring. The evaluation will review the site history, the nature of the contamination, potential hazards from this contamination to the public, and the future uses of the site. Various corrective measure technologies will be evaluated as to their effectiveness, implementability, and cost. Recommendations will be included for any additional characterization activities and corrective measures. The evaluation will also address removal and reclamation and/or disposal of all hazardous materials. The Engineering Evaluation Report shall be subject to EPA approval.

10. The above ground storage tanks located south of the wooden sheds on the eastern portion of the Interchem site shall be inspected and sampled. Free liquids and product shall be removed and tanks shall be secured at all openings to prevent unauthorized use or accidental exposure.

11. A plan to investigate whether subsurface drums and debris are present at the site shall be developed and submitted to EPA for approval. Upon EPA approval, the investigation shall be carried out pursuant to the approved plan.

The Respondents shall prepare comprehensive workplans that address all phases of this scope of work, as well as comprehensive sampling, QA/QC, and site safety plans for review by EPA prior to the initiation of any on site work. The plans must address in detail the management, treatment and proper disposal of additional liquid and/or solid wastes which may be generated during site actions. EPA reserves the right to oversee and require modifications to the work described in this document at any time during or after completion of the on-site activities. EPA also reserves the right to request splits/duplicates of samples collected by the Respondents or their agents or to collect additional samples of any media or process related to the cleanup effort. The Respondents may request splits/duplicates of any samples collected by. EPA as part of this action. All materials resulting from onsite actions which are scheduled for offsite disposal as hazardous wastes must be transported and disposed in accordance with appropriate state and federal hazardous waste transportation and disposal regulations. Land

Disposal restrictions will apply in accordance with 40CFR Part 268, as amended. The Resource Conservation and Recovery Act (RCRA) permitted treatment, storage and/or disposal (TSD) facility selected for disposal must provide documentation of compliance with all permit conditions (state/federal regulatory requirements) relating to the disposal of wastes from the site not more than 90 days prior to the disposal action. Respondents shall provide a copy of the documentation to EPA.