Allocation of Response Costs for PRPs at a U.S. EPA Superfund Site.
Background. This case involved 28 potentially responsible parties (PRPs) who had contributed commercial and industrial hazardous wastes to a municipal landfill over a period of 30 years. Contamination of groundwater, wetlands, and a surface water body resulted in the landfill being listed as a U.S. EPA Region I Superfund site.
Risk Exposure. Each of the 28 PRPs were at risk for a share of the estimated costs for investigating the landfill site.
Resolution. As a neutral allocation expert to the PRP Group, DCA developed a computerized "nexus" matrix to establish CERCLA liability and a basis for allocating investigation costs among the 28 PRPs. The nexus matrix consisted of a series of ten factors and associated evaluation criteria. Assignments of weightings for each of the ten factors were based on information and data compiled from multiple sources including: the EPA Administrative Record for the site; interviews of over twenty witnesses conducted by USEPA and the mediators; and 104(e) responses and mediation position papers submitted by the parties.
Results. The nexus matrix was used as a tool during a three-day mediation to facilitate the assignment of shares to the PRPs. Settlements were reached with 24 of the 28 parties.
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