LSI 2010 NRD Santa Fe final conference binder 072110.pdf

Angus Macbeth of Sidley Austin LLP Speaker 24b: 13
and the creation of six acres of riparian wetland in the vicinity of two Superfund sites in Harris
County, Texas (BP Amoco).
Fox River: In June 2006, NCR and Appleton Papers agreed to provide $5 million for restoration
work in the Fox River, following mediation. They also agreed to make a $500,000 payment as
partial reimbursement of damage assessment and project implementation costs. 28
Commencement Bay: In May, 2006, NR Trustees the State of Washington, the Puyallup Tribe
of Indians, the Muckleshoot Indian Tribe, NOAA, and DOI settled NRD claims against thirtytwo
PRPs. The settlement provided reimbursement to the trustees of $1,793,888.46 in
assessment costs, $150,000 for oversight costs, and will fund the construction of a habitat
restoration project in Pierce County, Washington. 29 Also in 2006, PRP Glacier Northwest, Inc.
resolved its NRD liability to the trustees in the Hylebos Waterway of Commencement Bay for
$187,512 in NRD and $20,804.24 in assessment costs, and PRP Streich Bros., Inc. resolved its
NRD liability in the Hylebos Waterway for $181,948 in NRD and $20,189.15 in assessment
costs. To settle the Hylebos NRD claims, NOAA’s Robert A. Taylor, Office of General
Counsel, developed an innovative settlement strategy involving a restoration-based approach,
independent liability allocation, a public review and comment process, and restoration credits
trading. This project was the first nationally to include a formal liability allocation, and the first
to employ restoration credits trading.
8. 2007
a. OPA
Kinder Morgan Oil Spills: Kinder Morgan Energy Partners L.P. and SFPP L.P. have agreed to
pay nearly $5.3 million and to spend $26 million for pipeline improvements to resolve liability
for three oil spills in 2004 and 2005 in California. The proposed settlement, which addresses
discharges of 200,976 of diesel fuel, jet fuel, and gasoline into water and sensitive ecosystems
including Suisun Marsh, the largest saltwater wetland in the western United States, includes $1.3
million for NRD. 30 b. CERCLA
ASARCO LLC: In August 2007, the Justice Department reached an agreement settling its
CERCLA claims, including its NRD claims, with mining company ASARCO LLC at the
California Gulch site in Leadville, Colorado. The government originally claimed damages of
$76.7 million, including $65.4 million in damages and $11.3 million as reimbursement for NRD
assessment costs. ASARCO’s expert estimated its share of NRD liability at $520,000. The
government’s expert, Dr. Josh Lipton, based his estimate on his opinion that the river into which
28 United States v. Appleton Papers, Inc. (No. 01-C-0816; filed January 24, 2006).
29 71 Fed.Reg. 24760.
30 Linda Roeder, “EPA Says Pipeline Companies Will Pay $31.3 million Under Proposed Agreement,” BNA
Environment Reporter (5/25/07), available at http://pubs.bna.com/ip/bna/ENR.NSF/eh/a0b4n7w0w5 [subscription
required]; see, also, “California Oil Spills Cost Kinder Morgan $5.3 Million,” Environmental News Service
Newswire (6/4/07), available at http://www.ens-newswire.com/ens/jun2007/2007-06-04-09.asp.
DC1 1763595v.1
13
Law Seminars International | Natural Resource Damages | 07/16/10 in Santa Fe, NM