Notice of Lodging of Settlement Agreement Under the Comprehensive Environmental Response, Compensation, and Liability Act; Resource Conservation and Recovery Act; Clean Water Act; Oil Pollution Act; and Chapter 11 of the United States Bankruptcy Code, 30390-30391 [2011-13051]

Agencies

• Department of Justice

[Federal Register Volume 76, Number 101 (Wednesday, May 25, 2011)]
[Notices]
[Pages 30390-30391]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-13051]


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DEPARTMENT OF JUSTICE


Notice of Lodging of Settlement Agreement Under the Comprehensive 
Environmental Response, Compensation, and Liability Act; Resource 
Conservation and Recovery Act; Clean Water Act; Oil Pollution Act; and 
Chapter 11 of the United States Bankruptcy Code

    Notice is hereby given that on May 20, 2011, a proposed Settlement 
Agreement (``Agreement'') in In re Caribbean Petroleum Corp., et al., 
No. 10-12553(KG), was lodged with the United States Bankruptcy Court 
for the District of Delaware. The Agreement was entered into by the 
United States, on behalf of the United States Environmental Protection 
Agency (``EPA'') and the United States Coast Guard (``USCG''), and the 
three debtors in the above-referenced bankruptcy proceeding: Caribbean 
Petroleum Corporation, Caribbean Petroleum Refining L.P., and Gulf 
Petroleum Refining (Puerto Rico) Corporation (the ``Debtors''). The 
Agreement relates to liabilities of the Debtors under the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980, 42 
U.S.C. 9601 et seq. (``CERCLA''), the Resource Conservation and 
Recovery Act, 42 U.S.C. 6901 et seq. (``RCRA''), the Clean Water Act 
(``CWA''), 33 U.S.C. 1251 et seq., and the Oil Pollution Act (``OPA''), 
33 U.S.C. 2701 et seq.
    The Agreement provides as follows with respect to claims for costs 
for response actions that were taken, and claims for penalties for 
civil violations of law that occurred, prior to August 12, 2010 (the 
``Petition Date''): With respect to USCG's claims under Section 
1002(a)(b)(1) of OPA, 33 U.S.C. 2702(a)(b)(1), related to costs for 
cleanup actions that were taken prior to the Petition Date at the 
Debtors' former petroleum distribution terminal located in 
Bayam[oacute]n, Puerto Rico (the ``Facility''), the United States, on 
behalf of USCG, will have an allowed general unsecured claim in the 
amount of $5,776,301; with respect to EPA's claims under Section 107(a) 
of CERCLA, 42 U.S.C. 9707(a), related to costs for cleanup actions that 
were taken prior to the Petition Date at the Facility, the United 
States, on behalf of EPA, will have an allowed general unsecured claim 
of $1,013,794; with respect to EPA's claims under Section 311(b)(7)(A) 
of the CWA, 33 U.S.C. 1321(b)(7)(A), for civil penalties for violations 
that occurred prior to the Petition Date related to oil discharges 
resulting from the October 23, 2009 explosion at the Facility and its 
aftermath, the United States, on behalf of EPA, will have an allowed 
general unsecured claim of $8,000,000; with respect to EPA's claims 
under Section 311(b)(7)(B) of the CWA, 33 U.S.C. 1321(b)(7)(B), for 
civil penalties for violations of law occurring prior to the Petition 
Date related to the failure of certain Debtors to comply with an Order 
issued by EPA under the CWA on February 19, 2010 (``CWA Order''), the 
United States, on behalf of EPA, will have an allowed general unsecured 
claim of $3,557,385; and with respect to EPA's claim under Section 
9006(d)(2) of RCRA, 42 U.S.C. 6991e(d)(2), for civil penalties for 
violations of Underground Storage Tank Regulations occurring prior to 
the Petition Date at certain of the gasoline service stations owned or 
operated by the Debtors, the United States, on behalf of EPA, will have 
an allowed general unsecured claim of $377,650.
    The Agreement provides as follows with respect to costs for removal 
or response actions that were taken, and claims for penalties for 
violations of law that occurred, during the period of time after the 
Petition Date: with respect to USCG's demand under Section 
1002(a)(b)(1) of OPA, 33 U.S.C. 2702(a)(b)(1), related to removal costs 
at the Facility after the Petition Date, the United States, on behalf 
of USCG, will have an allowed administrative expense claim of 
$4,074,164; with respect to EPA's demand under Section 107(a) of 
CERCLA, 42 U.S.C. 9707(a), related to response costs at the Facility 
after the Petition Date, the United States, on behalf of EPA, will have 
an allowed administrative expense claim of $2,625,836; with respect to 
EPA's demand under Section 311(b)(7)(B) of the CWA, 33 U.S.C. 
1321(b)(7)(B), for civil penalties for the failure of certain Debtors 
to comply with the CWA Order during the period of time after the 
Petition Date, the United States, on behalf of EPA, will have an 
allowed administrative expense claim of $1,404,241; and with respect to 
EPA's demand under Section 9006(d)(2) of RCRA, 42 U.S.C. 6991e(d)(2), 
for civil

[[Page 30391]]

penalties for violations of Underground Storage Tank Regulations 
occurring after the Petition Date, the United States, on behalf of EPA, 
will have an allowed administrative expense claim of $95,759.
    Under the Agreement, USCG covenants not to file a civil action or 
to take any administrative or other civil action against the Debtors to 
recover its cleanup costs with respect to the Facility pursuant to 
Section 1002(a) of OPA, 33 U.S.C. 2702(a). EPA covenants not to file a 
civil action or to take any administrative or other civil action 
against the Debtors: (i) To recover response costs or obtain injunctive 
relief with respect to the Facility pursuant to Sections 106 or 107(a) 
of CERCLA, 42 U.S.C. 9606 or 9607(a), or Section 7003 of RCRA, 42 
U.S.C. 6973; (ii) to obtain civil penalties pursuant to Section 
311(b)(7)(A) of the CWA, 33 U.S.C. 1321(b)(7)(A), with respect to the 
oil discharge violations related to the Facility specifically alleged 
in the proofs of claim filed by EPA and USCG on February 7, 2011 
(``EPA/USCG POCs''), (iii) to obtain civil penalties pursuant to 
Section 311(b)(7)(B) of the CWA, 33 U.S.C. 1321(b)(7)(B), with respect 
to the CWA Order violations specifically alleged in the EPA/USCG POCs; 
or (iv) to obtain civil penalties pursuant to Section 9006(d)(2) of 
RCRA, 42 U.S.C. 6991e(d)(2), with respect to the Underground Storage 
Tank violations specifically alleged in the EPA/USCG POCs. The 
Agreement further provides for resolution of outstanding obligations of 
the Debtors to perform work or pay penalties under the CWA Order and an 
October 12, 1995, RCRA Administrative Order on Consent.
    For a period of seven days from the date of this publication, the 
Department of Justice will receive and consider comments relating to 
the Agreement. All comments must be received by the Department of 
Justice within this seven day period. Comments should be addressed to 
the Assistant Attorney General, Environment and Natural Resources 
Division, and either e-mailed to pubcomment-ees.enrd@usdoj.gov or 
mailed to P.O. Box 7611, U.S. Department of Justice, Washington, DC 
20044, and should refer to In re Caribbean Petroleum Corp., et al., No. 
10-12553(KG) (Bankr. D. Del.) and D.J. Ref. No. 90-11-3-10100. A copy 
of any comment should be sent to Donald G. Frankel, Senior Counsel, 
Department of Justice, Environmental Enforcement Section, One Gateway 
Center, Suite 616, Newton, MA 02458, or e-mailed to 
donald.frankel@usdoj.gov. Commenters may request an opportunity for a 
public meeting, in accordance with Section 7003(d) of RCRA, 42 U.S.C. 
6973(d).
    The Agreement may be examined at the Office of the United States 
Attorney, District of Delaware, 1201 Market Street, Suite 1100, 
Wilmington, Delaware (contact Ellen Slights at 302-573-6277). During 
the public comment period, the Agreement may also be examined on the 
following Department of Justice Web site, https://www.usdoj.gov/enrd/Consent_Decrees.html. A copy of the Agreement may also be obtained by 
mail from the Consent Decree Library, P.O. Box 7611, U.S. Department of 
Justice, Washington, DC 20044-7611, or by faxing or e-mailing a request 
to Tonia Fleetwood (tonia.fleetwood@usdoj.gov), fax no. (202) 514-0097, 
phone confirmation number (202) 514-1547. In requesting a copy of the 
Agreement from the Consent Decree Library, please enclose a check in 
the amount of $3.50 (25 cents per page reproduction cost) payable to 
the U.S. Treasury (if the request is by fax or e-mail, forward a check 
to the Consent Decree library at the address stated above).

Ronald G. Gluck,
Assistant Section Chief, Environmental Enforcement Section, Environment 
and Natural Resources Division.
[FR Doc. 2011-13051 Filed 5-24-11; 8:45 am]
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