TRC Exit Strategy Ends Tangle of Litigation Around Superfund California Superfund Site

Solid and Hazardous Waste Landfill

For 46 years, two adjoining landfills handled the disposal of municipal solid waste and hazardous wastes, including chemicals and used oil, in an undeveloped area of California.

Over time, housing developments crept into the area and contamination leaked into the groundwater. The potential threat to the community forced the State of California to begin enforcement action against the owners, operators, and businesses that sent industrial waste to the site. The site remained unresolved for ten years because of complex liability issues and lawsuits.

As the lawsuits came to a head, TRC structured an Exit Strategy settlement to transfer liability and responsibility for the site cleanup to TRC. As part of the settlement, TRC obtained title to the property and subjected itself to the full enforcement power of the state. Within a year, the landfill was capped in accordance with state requirements, significantly reducing the threat of future groundwater contamination.

TRC continues to work with the state to analyze the risks posed by the original contamination and develop environmentally proactive solutions. When the state deems the site is ready, TRC will work with the community to redevelop the land for beneficial reuse.

TRC Exit Strategy Solutions
TRC’s significant progress at this site demonstrates the effectiveness of the Exit Strategy approach. It shows that TRC’s business model can cost-effectively and efficiently resolve environmental closure liabilities.

• Resolved complex litigation
  Before TRC was involved, the litigation for the site was time-consuming and costly because many of the private parties had substantial issues concerning their liability for the site cleanup. To complete the transfer, TRC had to assure every party that it was capable of assuming the legal and financial obligations for the complete cleanup of the site.

• Capped liability at a fixed price
  For a fixed price, TRC assumed all existing and future liability under the requirements of the State of California. From the time of the liability transfer, the parties were relieved of the ongoing legal and administrative costs.

• Solved a complicated regulatory compliance requirement
  Within one year, TRC finalized the design requirements and prepared all the proper documentation for the landfill cap. In a non-Exit Strategy setting, this process often takes years to complete.

• Structured a comprehensive financial assurance and risk management program
  In order to protect the parties and the state from potential future cost increases, TRC designed and procured a financial assurance and insurance instrument. This guaranteed the cleanup would be completed without any future contributions.

• Maximized balance sheet and tax benefits
  TRC’s Exit Strategy solution allowed every party to resolve balance sheet issues associated with known and contingent environmental liabilities for the site. Tax benefits for the accelerated deductions were also made possible.

1946
Landfill begins operations

1987
Site designated as a State Superfund site.

1992
Landfill closed and litigation initiated between and among PRPs and State of California

January 2001
TRC indemnifies PRPs and takes ownership of site

July 2001
Consent Order signed and work initiated. Consent Order relieved the PRPs of all future site liabilities, with the exception of some past costs they had not paid in full. TRC responsible for executing the site work.

January 2002
Landfill cap completed. Prevents exposure of the landfill material to the environment and community.

December 2002
Groundwater monitoring and treatment system and landfill gas control system in place

2012
Donate site to the community for beneficial reuse, such as, dedicated open space