Exhibit 8

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 1 of 30
Po^-JFii.t,^^ , 

. \ 

^^<^EDsr.^^^^ UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

# ^ % *"& REGION 10 PFR 1 fi ?nin 

I rSS^ I 1200 Sixth Avenue, Suite 900 ^^° ^ " '^"'^ 

\S|K / Seattle, WA 98101-3140 Environmental 

%PROt^'^^^ Cleanup Office 

OFFICE OF 

REGIONAL COUNSEL 

Febmary 9, 2010 

Reply to 

AttnOf:ORC-I58 

William P. Huchinson 

Roberts Kaplan, LLP 

601 SW Second Avenue, Ste. 1800 

Portland, Oregon 97204 

Re: Portland Harbor Superfund Site, Portland, Oregon; Linnton Plywood Association 

Settlement Offer 

FRE 408 CONFIDENTIAL SETTLEMENT COMMUNICATION 

Dear Mr. Hanson: 

I am writing on behalf of the Environmental Cleanup Office, Environmental Protection 

Agency, Region 10 ("EPA") to respond to Liimton Plywood Association's settlement offer 

contained in your letter dated October 30, 2009. We understand the Association shut down its 

veneer plant in 2001 and has been in the process of liquidating its assets since that time. We also 

understand that, other than rental income from two tenants, the Association has no other 

incoming generating business, but rather the Association's expenses exceed its annual income. 

The property and mill plant is the only significant asset the Association owns. The Association 

is a cooperative corporation, meaning the shareholders are individuals that worked at the plant. 

The Association requested EPA settle its potential liability for response costs under the 

Comprehensive Environmental Response Compensation and Liability Act ("CERCLA") so that 

the company can dissolve and distribute proceeds from the sale ofthe property to its members 

whose earnings were used as capital operating resources. The Association too has a potential 

buyer for the property and it believes that settling its CERCLA liability will help facilitate the 

sale. 

The Association represents that its CERCLA liability is de minimus and that it should not 

need to pay much money toward the cleanup ofthe Portland Harbor Superfund Site. The 

Association has requested EPA determine that it is a de minimus party as defined by the statute. 

The Association has provided EPA with information about its operations and waste handling 

activities since 1951 when it began operations. The Association provided a response to EPA's 

January 2008 Information Request. The Association also provided financial information and 

additional assessments of its contributions of hazardous substances in letters or memoranda dated 

May 29, 2009, October 2, 2009 and October 9, 2009 as well as in a couple of meetings we have 

had with the Association and its contractors. ^ 

7 USEPA SF 

1309996 

o Prlr}ted ort Recycled Paper 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 2 of 30
Because the Association is dissolving and liquidating its assets, EPA is willing to settle 

early with the Association so that costs may be recovered and put towards the Portland Harbor 

Superfiind Site. However, EPA cannot, at this point in the investigation and feasibility study 

phase ofthe cleanup, determine whether the Association is eligible as a de minimus party under 

Section 122(g) of CERCLA, 42 U.S.C. 9622(g), nor can we evaluate the Association's fair share 

of response costs for the cleanup.' As you know, the remedial investigation has not been 

completed and EPA has not made a decision regarding the remedy for the Portland Hafbor 

Superfund Site. No comprehensive cost estimates have been developed at this time. 

Furthermore, EPA still is undertaking its search for potentially responsible parties. 

Attachment 1 to this letter is EPA's assessment ofthe release or potential threat of a 

release of hazardous substances from the LP A facility. There is evidence that hazardous 

substances used, handled, and managed in the Association's operations are in the Willamette 

River adjacent to the facility. Based on the data and preliminary risk analysis for the Portland 

Harbor site, the cleanup cost just for the area off of the Association's facility could be millions of 

dollars. We acknowledge that other parties also contributed to the contamination off of the 

facility and that, based on current information and the nature ofthe Association's operations, its 

contributions were smaller than other potentially responsible parties identified to date for the 

Portland Harbor Superfund Site. -

The Association's offer of $ 100,000 is unacceptable based EPA's review of the evidence 

ofthe release of hazardous substances from the Association's operations and the estimated costs 

to remediate the Portland Harbor site. We acknowledge the Association's ability to pay response 

costs is very limited. EPA's initial assessment (with fiarther verification and information 

requested herein) is that the Association can pay $1,500,000 to settle its liability; We understand 

that the Association's ability to pay that amount is dependent on one ofthe following sources: 

(1) the sale ofthe property for $6.5 Million, which is the offer amount from BP Products; or (2) 

the Association's access to insurance proceeds from most if not all ofthe years of coverage 

without a pollution exclusion clause. 

EPA's agreement to accept $1,500,000 is contingent upon: (1) approval by the U.S. 

Department of Justice; (2) the Association supplying the information and supporting 

documentation requested and any additional information EPA or the U.S. Department of Justice 

may require regarding the Association's financial ability to pay; and (3) no significant new 

infonnation is learned about the nature ofthe release or potential threat of a release of hazardous 

substances from the LP A facility. Additionally, if in the future it is discovered that significant 

additional resources are available, EPA reserves the right to reevaluate the Association's ability 

to pay and revise its offer accordingly. Attachment 2 to this letter contains additional questions 

and document requests we require from the Association. 

Please let us know within 30 days of your receipt of this letter whether.the Association 

will accept EPA's counteroffer, provide the additional information requested, and proceed to 

negotiate the terms and conditions of a settlement. If the Association wishes to continue 

' We riote; however, that given the Association's ownership and operation ofthe mill it would be very difficult for 

it to be eligible as a de minimus landowner. See 42 U.S.C. § 9622(g)((l)(B). 

o Printed on Recycled Paper 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 3 of 30
negotiations, EPA will require the additional information requested in Attachment 2 no later than 

45 days from your receipt of this letter. 

If you want to discuss this matter, please do not hesitate to call me at (206) 553-1115 or 

email me at cora.lori(a),epa.gov. Thank you for your attention to this matter. 

Enclosxures 

cc: Kristine Koch, ECL 

Lori Houck Cora 

ssistant Regional Counsel 

o Printed on Recycled Paper 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 4 of 30
Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 5 of 30
LINNTON PLYWOOD ASSOCIATION - TECHNICAL EVALUATION 

Upland Site: Linnton Plywood Association 

10504 NW Saint Helens Road (Fig. 1) 

26.5 Acres 

RM 4.4 to 4.8 

The Property was used for the past century, with extensive over-water docks, pilings, and water front use, as a sawmill with 

subsequent filling and leveling of the site. 

Ownership/Operational History 

Taxlot 100 (riparian): 

1971 -present 

1951-2000 

2002 - present 

1971-2001 

2001-present 

Taxlot 800 (riparian): 

Linnton Plywood Association 

Linnton Plywood Association 

Forest Products Machinery 

Columbia River Sand & Gravel 

Glacier Northwest 

Plywood Mfg 

Equipment storage 

Sand & Gravel (11 acres) 

Sand & Gravel (11 acres) 

Owner 

Operator 

Operator 

Operator 

Operator 

1974-present 

1987 - present 

Linnton Plywood Association 

Harmer Steel 

Equipment/material storage 

Equipment/material storage 

Owner 

Operator 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 6 of 30
Taxlot 200: 

1971 -present 

1951 -present 

Linnton Plywood Association 

Linnton Plywood Association Office parking 

Owner 

Operator 

Submerged Lands: 

-1952-1988 ODSL Submerged Land Lease #ML9187/APP 16845 

1988-1999 

1999-2018 

Log raft storage 

Easements: 

Taxlot 100: 

2004 - present BP/Arco 

Taxlot 200: 

monitoring wells 

1971 -present 

1972-present 

Unknown 

NW Natural 

City of Portland 

Unknown (City or ODOT?) 

Gas line 

Sewer Line 

Storm water outfalls (1 and 6) 

agreement provided 

agreement provided 

no known agreement 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 7 of 30
Operations - Processes, Chemicals & Wastes 

Plywood was manufactured from raw logs to finished products from 1951 until 2001. In 2001, 

all manufacturing operations ceased and the business closed. A salvage and mothballing 

operation was conducted following plant closure to remove equipment, feed stocks and product, 

and any waste material. 

The Linnton Plywood Association (LPA) peeled veneer from whole logs from 1951 until 1992, 

when it began purchasing rather than making veneer. Logs were stored in rafts along the 

shoreline until 1992. The LPA used purchased veneer from 1992 until 2001, when all business 

operations ceased. 

LPA's operations included, at various times, the following activities: 

• Using a log peeler to produce wood veneer by peeling it from whole logs 

• Processing the veneer through dryers 

• Mixing phenol-formaldehyde resin glue and applying the mixed glue to the veneer 

• Pressing plywood, with glue recovery and recycling systems 

• Sanding and finishing plywood 

• Marking edges of plywood for identification with water-based paint 

• Sealing edges of finished "Ply-form" plywood sheets (used to build forms for poured 

concrete) with water-based paint, and treating the faces of Ply-form sheets with form oil 

(also known as release oil or pale oil) to facilitate release of the plywood from hardened 

concrete 

• Firing drying kilns and reducing solid waste with wood dust combustion 

Logs were received by tmck and then skidded into the river, where they were cut to length, 

pulled into the plant and peeled for veneer. A boom was placed in the water to keep logs in the 

river near LPA's property. After cessation of veneer peeling operations in 1992, veneer was 

shipped to LPA via tmck and rail. Plywood edge trimmings were sold for hogged fuel. Sander 

dust was burned on site for heating the veneer dryer. Resin residuals generated during 

manufacturing were captured and mixed with water for reuse in resin feedstock. Pale oil was 

applied to plywood used as concrete forms. Gasoline and diesel fuel were used to power 

machinery at the plant. Water-based paint was used to protect the sides of the plywood concrete 

forms. Boiler blowdown water was generated during routine maintenance of boilers and was 

pumped into the City of Portland sewer. Hydraulic oil from holding tanks was recycled by 

Spencer Environmental. Recovered wood waste material within the plant was collected and 

conveyed to storage areas via overhead ducts and sold as fuel or landscaping materials. 

Veneers were stored in the green veneer building until ready for drying in the steam dryer and 

gas dryer buildings. Phenol-formaldehyde glues were applied to dried veneers via the spreaders, 

the glued veneers were stacked in layers to form plywood, and plywood sheets were pressed in 

the pressing and finishing room. The mixing and storage of glue was conducted within a roofed 

containment area and glue was piped to the spreaders for application. These spreaders were 

cleaned after each shift, and the wastewater and glue from the spreaders with were directed to the 

glue recovery and recycling systems, where they were incorporated with fresh product. 

• 3 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 8 of 30
In a covered area between the Covered Storage and Dryer buildings, the plywood was marked 

with a water-soluble paint. The edges of Ply-form sheets were sealed with paint and the sheet 

faces were treated with form oil. 

Surface Stmctures 

Main office (1951-present) 

Press and finishing building (1951 -present) 

Veiieer building (I9:5X'Rpl^sent) • -r,-,..•,,. . - :>.,::-:,;,:, 

Dryer building (1951-1974) A new Dryer Building was built on the north side of the 

plant in 1974; : 

Warehouse - A Plywood Storage building was built onto the west end of the main 

building complex sometime between 1962 and 1971. 

Log processing building (1951 - present). 

Maintenance shop (1980 r present) 

ForkUft repair shop (1961 - present) 

Purchasing agent building 

Caustic Storage (1951-present) 

Fire water intake stmcture (1972 - present) 

Boiler house - (1951 - present) 

Propane ASTs - (1972 - ?) 

Bunker CAST (1980? - ?) 

Diesel Storage AST (1961 - present) 

Pale Oil AST (1961-1989) 

Gasoline ASTs (1981 - 1994) 

Hog Room (1951 - present) 

Edge Sealing Area (1951 - present) 

Chip Bins & screen (1961 - present) 

Sander Dust Staging Area/Sander Dust Bin (1961 - present) 

Resin Storage Tanks w/vaults (1961 - present) 

Steam Cleaning Pad (1972-present) 

Sander Dust Bumer (1980-present) • 

Mobile Vehicle Cleaning Area (i995-present) 

Transformers (Tl, T2, T3, T4A, T4B, T4C, T5A, T5B, T5C) - PCB oil in the 

ttansformers was disposed of by GE at 2535 NW 28* Ave., Portland, OR, in 

1999. 

Gas Pumps 

Cyclones 

Potential Sources 

Potential sources of contamination to storm water mnoff were petroleum hydrocarbons 

associated with incidental releases of oils, greases, and ftiels, polychlorinated biphenyls (PCBs) 

from potential releases from site transformers, arid heavy metals from general site operations. 

The maintenance and auto repair shop areas (and associated steam-cleaning area near Outfall 5) 

and the oil and grease room (used for dmm storage of hydraulic and lube oil)were potential 

sources of volatile organic compounds (VOCs), semi-volatile organic compounds (SVOCs) 

including PAHs, and heavy metals to storm water mnoff, groundwater, and riverbank soils. 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 9 of 30
TABLE 1 

Potential Source Area Identification for Linnton Plywood Association and the Site Predecessors 

Date Range for 

Potential 

Source 

1951-1992 

1952 to 2001 

1970- 2001 

1981 to 2001 

Potential Source 

Identincation 

Log Processing 

Dredge Spoil Disposal 

Paint and Pale Oil 

Application 

Sander Dust Bumer 

Scmbber Overflow and 

Scmbber Ash Disposal 

Potential Source Description 

Linnton Plywood Association used the site for 

peeling logs. Logs were brought to site by water, 

rail or tmck. The logs were cut to size in the river 

in the log pond area. The logs were then peeled 

into veneer inside the plant. The lathe knives were 

cleaned using kerosene. The kerosene and oils 

drained off the lathe may have been conveyed to 

the river. Kerosene was the primary cleaning agent 

used. 

The area of river sediments adjacent to the plant 

has been dredged since 1952 and the dredge spoils 

have been placed at the plant and on land on the 

eastern half of the facility. The plant had a 

dredging permit (Oregon Division of State Lands 

Permit No. 3081) for these operations. 

Water-based paint was applied to the edges of 

plywood, concrete forms in a semi-covered area. 

Paint overspray can be carried with storm water 

from this area and discharge to the river via outfall 

6. Metals in paint pigments are typically 

cadmium, chromium, lead and zinc. 

Pale oil is applied as a release agent to the 

plywood near the same area as the paint 

application booth. The oil is applied by rolling 

with a roller application unit. Oil spillage can be 

earned with storm water and discharge to the river 

via outfall 6. 

Sander dust was a by-product of operations, but 

was collected and used to fire the veneer dryer. 

PAHs and dibenzofuran are byproducts of wood 

combustion. A sander dust burner operates on the 

north side of the plant. A scrubber is used to 

remove ash from the air discharge (refer to 

discussion on Air Pollution Controls). Sander dust 

is burned in a sander dust bumer and the heat used 

to mn the dryers and generate steam. Flue gas 

from the sander dust burner is treated in a wet 

scmbber to remove particulate emissions. The wet 

solid stream is collected in a sealed dumpster to 

settle the solids. Water is pumped back to the 

scrubber system. Drips and seeps with ash solids 

occur incidentally to the ground around the 

scrubber. There is a catch basin that goes to the 

city sewer, however there were visible indications 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 10 of 30
Date Range for 

Potential 

Source 

1950s to 1989 

1950s to 1994 

1950'sto^ 

present 

1960s to 2001 

1952 to 2001 

Potential Source 

Identification 

Pale Oil Storage 

Gasoline Storage 

Diesel Storage 

Mobile Vehicle Cleaning 

Glue/Resin Application 

Potential Source Description 

that scmbber water with ash solids flows over the 

parking lot to the outfall system. 

Prior to 1997, when Columbia Sand and Gravel 

began operation, the ash was landfilled on this 

parcel. Columbia Sand and Gravel has placed over 

10 feet of fill on the site since their operations 

started, so the ash in now capped with sand. After 

1997, the sander dust ash were spread on the 

ground to dry and then transferred to Columbia 

Sand and Gravel's sand operation on the east side 

to be mixed with the sand processed by Columbia 

Sand and Gravel in the same area as the original 

disposal site. 

Pale oil is a mixture of pettoleum oils blended to 

meet certain specifications. Pale oil was stored in 

a 5,000 gallon underground storage tank. The 

storage tank was decommissioned in 1989 (DEQ 

File No. 26-89-121) and subsurface soil 

contamination was removed. DEQ issued a No 

Further Action letter for this work on October 19, 

1989. 

Gasoline contains BTEX constituents. Gasoline 

was stored in three underground storage tanks 

(4,000, 6,000, 10,000 gallons). These tanks were 

decommissioned in 1994 (DEQ.File No. 26-

94-019) and subsurface soil contamination was 

removed. DEQ issued a. No Further Action letter 

for this work on September 27, 1994. 

Petroleum hydrocarbons and a small fraction of 

PAHs are likely present in the fuels. Diesel is 

stored in 500 gallon above ground storage tank in 

a concrete contained area. 

From I960's to 1999, mobile vehicles used at the 

plant (lift tmcks) were steam cleaned in an outside 

area adjacent to outfall 5. In 1999, the steam 

cleaning sump was disconnected from the storm 

water system and piped to the sanitary sewer. Soils 

and vegetation around outfall 5 show signs of 

visible staining from oil and grease. 

The plywood is made by gluing dried out veneer 

together inside the building. Glue mixing is 

conducted inside the covered areas of the plywood 

mill. 

A phenol-formaldehyde glue (aka resin) is used to 

adhere sheets of veneer together to make plywood. 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 11 of 30
Date Range for 

Potential 

Source 

^ 

1950s to 2001 

1952 to 2001 

1951-2001 

Potential Source 

Identification 

Maintenance Shop 

Activities 

Transformers 

Boiler seepage well 

Potential Source Description 

Glue contains phenol-formaldehyde resin, wheat 

flour and caustic soda. The phenolic resin (phenol 

and formaldehyde) is stored in storage tanks 

located on the east side of the plant in a beiined 

concrete containment area. Caustic soda is stored 

on the east side of the plant in a bermed concrete 

containment area. These materials are conveyed in 

pipelines to a mix tank located inside of the 

building. The mix tank is cleaned with water 

annually with the tank bottoms placed in a tank to 

dewater. The tank bottoms are then disposed of in 

a dumpster as a solid waste. The wash down water 

is collected and conveyed to a storage vault near 

the resin storage tanks. The wash water is then 

reused as wash water with make up water added. 

Resin residues were recycled into operations and 

reused as resin feedstock at the plant. 

Cleaning of tools and parts using kerosene and 

alcohol, storage area for tools, parts and motors. 

Wet cleanup methods were used up to the 1990's, 

when dry cleanup methods were incorporated as 

best management practices. Metal grinding for 

tool sharpening also conducted. Areas were 

periodically washed down with wash water 

discharging to outside areas and collected in the 

storm water collection system through outfall 5. 

All used oil was reused onsite to oil the dryer 

chains. DEQ also identified that a methylene 

chloride containing adhesive was also stored in 

this area. PCB containing transformers are located 

in this area. Maintenance area washdown could 

have conveyed some constituents to the outside 

areas. Stouii water could then convey mnoff to the 

river. 

Privately owned transformers were maintained by 

GE, including an annual inspection. The frequency 

of transformer fluid replacement was determined 

by GE's staff electrician. LPA had five 

transformers with a total of 1751 gallons of oil. 

The amount of transformer fluid changed over the 

life of each transformer is unknown. Other 

transformers on site were owned and maintained 

by PGE. 

A seepage well was used to manage periodic 

boiler blowdown water. A seepage well that was 

four feet in diameter and four feet deep was 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 12 of 30
Date Range for 

Potential 

Source 

Potential Source 

Identification 

Potential Source Description 

located just outside of the boiler building on 

LPA's property. A sump pump was placed in this 

seepage well to remove water during boiler 

cleaning, with the water being pumped into the 

City of Portland sewer system. An unknown 

volume of water was used to flush the boilers. 

Over-water Activities 

Over-water stmctures at LPA consist of a wood dock, which is attached to the building and 

extends over the river. The dock extending off of the LPA stmcmre is a remnant of the older 

Clark and Wilson Sawmill operation and was not used by LPA. Green end operations include 

raw log barking (equipment located over water) and raw log peeling (conducted in the mill). Oils 

and solvents were used in the process to maintain the equipment. 

A conveyor belt extending from the building to the river was used from 1951 to 1992 to transport 

logs into the building for peeling into plywood veneer. The log conveyor from the river to the 

plant ceased operation in 1992 and vi^as retracted from the river. 

A pier stmcture north of the LPA dock provides access to a fire suppression system housed over 

the water and separate from the plant. There is also a fire suppression pump intake located to the 

north of the plant building site. A PGE Transformer was located on this pier from [installation] 

to 1979. 

Raw logs historically were stored in the Willamette River along waterfront pilings until 

processing began at the dock, where over-/in-water activities included cutting off the ends of the 

logs, cutting logs to length, and loading them onto a conveyor to transport the logs from the river 

to the green end. Over-water work in this area produced wastes such as sawdust, bark, and 

organic debris from log handling. Potential contaminants included machinery and transformer 

oils, metals, fuels, and mbber. Green end and over-/ in-water operations ended in 1992 when 

LPA began to import veneer sheets via rail and tmck. 

Wood debris from the green end in-water area was periodically dredged to remove accumulated 

process material. This material was placed upland along the bank between 1972 and 1986 under 

permit from the U.S. Army Corps of Engineers (USACE). The area subsequently was filled with 

significant volumes of sand and gravel as the Columbia River Sand and Gravel and Glacier NW 

operations expanded and leyeled the soil in the area. 

Although the dredging permits allowed the removal of approximately 2500 to 3000 cubic yards 

of material from the river annually, this is the maximum that could be removed. The actual 

amount of woody debris dredged from the 'log pond' is unknown but is believed to be 

.significantly less. 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 13 of 30
Air Pollution Controls 

An air pollution control device was operated at the plant between 1974 and 2001. This device 

was a wet scmbber, which controlled air emissions from the veneer dryers (No.l and No.2). 

This devise controls emissions of particulates, N02, CO, and VOCs. 

There is one (1) fuel cell boiler which is fired with sander dust and plywood trim. The Georgia 

Pacific (G.P.) scmbber controls the emissions from the fuel cell and the two veneer dryers. The 

fuel cell and the scmbber were installed in 1981. The heat for the two veneer dryers and the 

ABCO steam boiler is supplied by the fuel cell. The air permit for the facility also indicated that 

particulates, N02, CO, and VOCs were to be controlled from the fuel cells. 

There are a total of eleven (11) cyclones. Eight (8) cyclones exhaust directly to the atmosphere. 

Three (3) cyclones vent to a baghouse. The cyclones handle plywood trim and sander dust. 

There are two (2) Carter Day baghouses. Baghouse No. 1 which is in series with the three (J) 

cyclones was installed in 1972. Baghouse No. 1 controls the sander dust emissions. Baghouse 

No.2 was installed in 1973. Baghouse No. 2 controls emissions from the woodwaste that is 

transported across the mill through a pneumatic conveying system. 

Storm Water 

The Properties contain seven storm water outfalls, which collect surface water mnoff from the 

property and water entering the property from up gradient. 

Two storm water drains (Outfalls 1 and 6) receive flow from US Highway 30 and assumed to 

include hillside mnoff from Forest Park and the up gradient surface streets of the Linnton 

neighborhood. There are seven storm water outfalls located on the shoreline pf the property; one 

(Outfall 1) along the southem (leased) portion ofthe property and six along the shorehne ofthe 

northem mill area. Two, Outfalls 1 and 6, appear to originate at Highway 30; Outfall 1 has no 

inlets on the LPA property and Outfall 6 has a single inlet on the paved area north of the LPA 

plant. Outfalls 2, 3, 3a, 4 and 5 drain storm water from the paved mill area. Outfalls 2 to 5 (those 

serving the LPA plant area) are assumed to have been constmcted in the time period of 1952 to 

1974. Outfalls 1 and 6, which drain from Highway 30, have been in place since LPA has 

operated the plant. Outfalls 1 and 6 are believed to also drain. 

LPA prepared a spill prevention, control, and countermeasure (SPCC) plan in 1992 and 

maintained the plan under permit until operations ceased. After the plant closed in 2001, various 

measures were taken to prevent environmental impacts during salvage and mothballing 

operations. These include placing catch basin filters in storm drain grates, draining hydraulic oil 

and lubricants from equipment before salvage removal, and removing unused glue feedstock, 

fuel, lubricants, hydraulic oil, and other petroleum products from the Property. Concrete press 

pits, former used to house plywood presses, were cleaned and inspected for cracks or evidence of 

releases. Catch basin filter socks were installed in 2002 at the Property and have been 

maintained quarterly since that time. 

Storm water in the plant area drains,across paved areas to the north and south of the plant 

building. To the north of the building, storm water drains to a single catch basin that discharges 

to the public culvert servicing Outfall 6. A small section near the river drains to Outfall 5, and a 

smaller section by the Maintenance Building drains off the edge of the pavement to a vegetated 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 14 of 30
and rip rapped section of bank immediately north of the plant. Storm water to the south of the 

plant nearest the entrance drains to the railroad right-of-way, where it is presumed to infiltrate. 

The western portion of the southem area and the building roof drains discharge via Outfalls 2, 3, 

3A, and4. 

Outfall I: drains Highway 30, with no known inlets on LPA property. 

Drainage Area 1/OutfaIl 2: small paved area on southeast comer ofthe industrial property 

Drainage Area 2/Outfall3, 3 A, and 4: northwest of Drainage Area 1, area around storage 

tanks, roof drainage from pressing and finishing building,. 

Drainage Area 3/Outfall 5: small paved area on north side qf property, area contains auto 

repair shop, diesel tank, maintenance repair shop, pipe shop, and steam-cleaning 

area. (The steam cleaning area water currently discharges to the City of 

Portland's sanitary sewer.) 

Drainage Area 4/Outfall 6: mnoff from northwestern and southwestern areas of site. Area 

contains air pollution control scmbber, veneer storage, and contained barrel filling 

area. 

10 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 15 of 30
Outfall 6: The drainage basin for this outfall is the paved area on the western side ofthe plywood 

mill. Drainage basin includes pale oil application area, veneer storage area, scmbber overflow 

(sander dust bumer), sander dust bumer, contained barrel filling area, and transformers Tl, T5A, 

T5B, and T5C; may also include railroad lines, sawdust bin, and wood waste fuel bin area. 

Sampling results may suggest migration of hazardous substances from the pale oil application 

and overflow from the scmbber used to treat the air discharge from the sander dust bumer. The 

PAH levels detected in sediments at the discharge location of Outfall 6 may suggest a historic 

potential onsite source. However, as explained above, the pipeline above Outfall 6 receives storm 

water from upgradient and offsite sources. Accordingly, the recent closing of the facihty and the 

cessation of pale oil application and scmbber usage eliminates these on-site sources as a potential 

present source and migration pathway. The outfall discharges approximately 10 feet below the 

paved area grade at an elevation around 16 feet MSL, close to the facility boundary. The 

discharge then falls an additional 10 feet to the mud flat at the bottom of the slope. Sampling 

shows that the following chemicals exceed screening levels for this outfall: TPH-oil, lead, zinc, 

and PAHs (anthracene, benzo-a-anthracene, fluoranthene, phenanthrene, and pyrene). Phenol 

and pentachlorophenol detection limits were too high (40-60 times SLVs) to determine whether 

these parameters were of concem. 

Outtalie 

•Outfaire 

11 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 16 of 30
Outfall 5: The drainage basin for this outfall is the paved area on the northwest side of the 

plywood mill. Drainage basin includes auto repair shop, maintenance shop, pipe shop, diesel 

tank, steam cleaning area and transformer T2. The floor drain in the maintenance shop and the 

outdoor steam cleaning pad lead to Outfall 5. The floor drains were installed in the 1950s when 

the plant was converted to a plywood mill. Outfall 5 is a small-diameter pipe which discharges 

onto soil near the top of the bank. The outfall discharges approximately 6 feet below the paved 

area grade onto a vegetated slope above the 17 feet MSL facility boundary. Sampling shows that 

the following chemicals exceed screening levels for this outfall: cadmium, copper, lead, zinc, 

and bis(2-exylhexyl)phalate. Phenol and pentachlorophenol detection limits were too high (40-

60 times SLVs) to determine whether these parameters were of concem. 

v^BfeMl 

[ W " 

'ii-^Zr.^-' z 

:'.' • ••^^•- - . 

:• ja&'.iJfe. r^^^ H 

l^jr«tf^ 

(?*2«? 

- ^•=' . •• i'v 4 . 

•Mi 

^HIH I '4^^H 

-* 

--

^ ^ ^ 

-J 

• Oi! Separation 

Catch Basin 

lorOutfaitS 

Abandoned 

Pipe 

Outfall 5 

12 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 17 of 30
Outfall 4: Outfall 4 is located 30 feet downstream of outfall 3. This outfall drains storm water 

from the roofs ofthe plywood mill. The outfall discharges approximately 10 feet below the 

paved area grade onto a riprap slope above the 17 feet MSL facility boundary. This outfall was 

not sampled. 

Outfaa A 

13 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 18 of 30
Outfalls 3 and 3 A: The drainage basin for this outfall is the paved area on the southeast side of 

the plywood mill, west of the drainage basin for outfall 2. The outfall discharges approximately 

2 feet below the paved area grade onto a riprap slope above the 17 feet MSL facility boundary. 

Drainage basin includes hog fuel bin, boiler house, diesel AST, caustic AST, resin AST, propane 

AST, oil AST, gasoline UST, and transformers T4A, T4B, and T4C. Samphng shows that none 

ofthe chemicals analyzed exceed screening levels for this outfall. Benzo(a)pyrene, phenol and 

pentachlorophenol detection limits were too high (40-60 times SLVs) to determine whether these 

parameters were of concem. 

Catch b3£in 

discharge on other 

side of curt>. 

Bank betow 

Outfall 3. 

14 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 19 of 30
Outfall 2: The drainage basin for this outfall is the paved area on the southeast side ofthe 

plywood mill. The outfall discharges approximately 2 feet below the paved area grade onto a 

riprap slope above the 17 feet MSL facility boundary. Land area where sander dust ash has been 

placed may also drain to ttiis outfall. Sampling shows that the following chemicals exceed 

screening levels for this outfall: Phenol and pentachlorophenol detection limits were too high 

(40-60 times SLVs) to determine whether these parameters were of concem. Sampling shows 

that none ofthe chemicals analyzed exceed screening levels for this outfall. Benzo(a)pyrene, 

phenol and pentachlorophenol detection limits were too high (40-60 times SLVs) to determine 

whether these parameters were of concem. 

% 

% .4 

Catch basin 

discharge on outher 

side ol curb. 

Bank belcrtr 

OuMatt 2. 

15 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 20 of 30
Chemicals 

Adhesives 

Aircraft deicing fluid 

Anhydrous isopropanol 

Brake fluid 

Calcium hypochlorite 

Caustic Potash 

Caustic Soda/sodium hydroxide (NaOH) (50%) 

Coil cleaner 

Diesel Fuel 

Disinfectant cleaner 

Epoxy resins 

Formaldehyde-based resin feedstock 

formaldehyde 

soda ash 

caustic (NaOH) 

Gasoline 

Glycols 

Herbicide (Roundup) -

Hydrochloric Acid (HCl) 

Inks 

Kerosene , 

Lacquer Thinner 

LP Gas 

Methylene chloride 

Muriatic acid 

Oils (hydraulic, form, etc) 

Paints 

Pale oil 

Phenol resin 

Polystyrene 

Propane 

Purex 

Sealers 

Set concrete crack filler 

Set vinyl concrete ; 

Soda ash ;\ 

Solvent cleaner 

Stripper 

Synthetic elastomer (Edge Glue) 

Transformer oil 

Transmission fluid 

Water-based paint 

Welding supplies 

16 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 21 of 30
Chemicals of Concem 

The following constituents of concem are identified for the LPA site: 

• LPAHs associated with petroleum product use and sander dust ash from the historical and 

current use review and 1997 EPA sediment data. 

• HPAHs associated with petroleum product use and sander dust ash from: the historical 

and current use review and 1997 EPA sediment data. 

• Dibenzofuran associated with sander dust ash from the historical and current use review 

and 1997 EPA sediment data. 

• Phenol associated with phenolic resin and wood waste from the historical and current use 

review 

• Cadmium, chromium, lead and zinc associated with metal grinding in the maintenance 

shops from the historical and current use review 

• Cadmium, chromium, lead and zinc associated with paint pigments from the historical 

and current use review 

• VOCs associated with paints from the historical and current use review 

Based on the conceptual site model, the following are considered potentially complete pathways 

for the discharge of hazardous substances to the Willamette River: 

• PAHs and dibenzofuran via bank erosion in the area of outfall 2 

• PAHs and dibenzofuran via stormwater discharge through outfall 2 

• PAHs and metals via stormwater discharge through outfall 5 

• VOCs, selected metals, PAHS and dibenzofuran via stormwater discharge through outfall 

6 

17 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 22 of 30
TABLE 2 

Comparison of Chemicals of Concem Upland and In-River 

Class 

Butyltins 

Dioxin/Furan 

Metal 

PAH 

• 

PCB 

Phenol 

Chemical 

Tributyltin ion 

1,2,3,7,8-Pentachlorodibenzofuran 

2,3,4,7,8-Pentachlorodibenzofuran . 

2,3,7,8-Tetrachlorodibenzofuran 

2,3,7,8-Tetrachlorodibenzo-p-dioxin 

Total TCDD toxicity equivalent 

Cadmium 

Chromium 

Copper 

Lead 

Mercury 

Selenium 

Zinc 

2-Methylnaphthalene 

Acenaphthene 

Acenaphthylene 

Anthracene 

Benzo(a)anthracene 

Benzo(a)pyrene 

Benzo(g,h,i)perylene 

Chrysene 

-^ Dibenzo(a,h)anthracene 

Fluoranthene 

Fluorene 

Indeno( 1,2,3-cd)pyrene 

Naphthalene 

Phenanthrene 

Pyrene 

Total PAHs 

Total Aroclor 

PCB077 

PCB081 

PCB 105 

PCB106&118 

PCB 114 

PCB 126 

PCB 156 

PCB157 

PCB 167 

PCB 169 

Total PCB Congeners 

Phenol 

Upland 

Groundwater 

— 

NA 

. NA 

NA 

NA 

NA 

X 

X 

NA 

NA 

NA 

? 

? 

? 

? 

? 

9 

? 

? 

9 

9 

? 

? 

9 

? 

? 

calc 

calc 

NA 

NA 

NA 

NA . 

NA 

NA 

NA 

NA, 

NA 

NA 

NA 

Upland 

Soil 

NA 

NA 

NA 

NA 

NA 

NA 

X 

X 

X 

X 

NA 

NA 

X 

? 

? 

9 

X 

X 

X 

? 

? 

X 

X 

X 

X 

calc 

calc 

NA 

NA 

NA 

NA 

NA 

NA 

NA • 

NA . 

NA 

NA 

NA 

? 

In River 

Surface 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

In River 

Subsurface 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

18 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 23 of 30
Class 

SVOC 

Petroleum 

Phthalate 

Pesticides 

Chemical 

Hexachlorobutadiene, 

Hexachlorocyclopentadiene 

TPH-G 

TPH-D 

TPH-0 

Bis(2-ethylhexyl) phthalate 

Dibutyl phthalate 

Dieldrin 

Sum DDE 

Sum DDT 

Total Chlordanes 

Total of 2,4'and 4,4'-DDD 

Total of 2,4'and 4,4'-DDE 

Total of 2,4'and 4,4'-DDT 

Upland 

Groundwater 

. ? 

? 

NA 

X 

— 

— 

— 

~ 

• ~ • 

— 

Upland 

Soil 

? 

? 

X 

X 

X 

? 

— • 

— 

— 

— 

— 

— 

— 

In River 

Surface 

X 

X 

X 

X 

X 

X 

X 

X 

In River 

Subsurface 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

Notes: 

? Detection limit too high (>10x SLV) to evaluate 

NA Not analyzed 

X Measured in at least one sample greater than SLV 

blank Less than SLV 

Chemical not expected in pathway 

Environmental Releases 

Scrubber ash was generated by the air pollution control device. The ash from the scrabber was 

placed onsite from approximately 1981 until approximately 1997, after which the ash was 

transported offsite to a permitted Subtitle D landfill until 2001. The scmbber ash placement area 

was used for management of scmbber ash. The dimensions of the scmbber ash placement area 

have been estimated by Jimmy Stahly of LPA to be approximately 50 by 50 feet. However, the 

ash may have spread and could have covered a larger area. Scmbber ash placed on the site is 

estimated to total approximately 220 cubic yards. The exhaust from the veneer dryers was 

analyzed for contaminants in 1995. The scmbber ash was tested for toxicity characteristic 

leaching procedure (TCLP) metals in December 1999 and November 2000. 

Soil from the scmbber ash placement area was sampled and analyzed in October 2002 and 

March 2007. The scmbber ash was found to contain 31 mg/kg lead, 52 mg/kg chromium, 13 

mg/kg arsenic, 709 mg/kg barium, and trace levels of polynuclear aromatic hydrocarbon (PAH) 

compounds. After 1997 and before plant closure in 2001 scmbber ash was placed in plasticlined roll-off for transport to Hillsboro Land Fill. Scmbber ash placed on the Property was found 

to be in a hardened state similar to cement, and appears to have had pozzolanic properties. It was 

a medium gray color and consisted of fine-grained material. It contained low levels of trace 

metals and low levels of three PAHs (fluoranthene, phenanthrene, and pyrene, all below 34 

micrograms per kilogram). 

19 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 24 of 30
Woody debris from the 'log pond' (a near-shore embayment ofthe Willamette River) was 

dredged from the river and placed on shore periodically between 1952 through 1992 to facilitate 

use of the log conveyor. This operation was conducted in accordance with permits from the US 

Army Corp of Engineers and Oregon Division of State Lands. Dredge spoils were placed on 

area later leased to Columbia Sand and Gravel. Sand and gravel operations have filled site with 

approximately 10 ft of fill in this area of the site. 

Knife grinding activities between 1951 and 1992 resulted in the accumulation of debris because 

the sharpening wheel was lubricated with water outside the grinding shop. The knife grinding 

debris area received debris from knife grinding activities. The knife grinding debris area was 

estimated to be about 13 by 15 feet. Knife grinding debris was generated between 1951 and 

1992. Debris and underlying soil was excavated and disposed of offsite in 2003. This removal 

was overseen by DEQ. A total of approximately 54 cubic yards'(over 45 tons of affected soil 

were removed from the two areas) of knife-grinding debris and underlying soil was removed in 

2003 and disposed of at the Hillsboro Landfill. Testing showed the debris contained low levels of 

lead and copper and higher levels of chromium. TCLP testing results were well below the 

hazardous waste limit for chromium. The debris and underlying soil were removed in 2003 and 

confirmation samples of underlying soil obtained. A previous removal at an earlier date may 

have occurred but is unconfirmed. 

An estimated 20 to 25 gallons of pale oil (also known as 'form oil', a light, diesel-like material) 

were released in Febmary of 1995 from an aboveground storagetank (DEQ Spill No. 95-381). 

Some of the oil entered the onsite storm drain, discharged through Outfall 6 and created a sheen 

on the Willamette River. The incident was reported to DEQ. 

A PGE-owned General Electric (GE) transformer located on the pier was found to be low on 

mineral oil during PGE's annual maintenance in 1979. No release of transformer oil was 

observed or documented; rather, it was observed that the transformer appeared to be 

approximately one quart low on transformer oil, and the potential; release was inferred from this 

observation. There was no oil staining beneath the transformer, nor any other visible evidence of 

a release. No oil has been observed to be missing in subsequent inspections of the transforrner. 

DEQ was notified of the potential release and DEQ determined that no investigation or testing 

was necessary. In 1979 the transformer was moved by PGE from the pier and installed on land to 

allow emergency shut off and easier access. , 

Approximately 20-55 gallons of pale oil (a light, diesel-like product used for coating plywood 

concrete forms) used in paint booth area were released in Febmary of 1995 from an aboveground 

storage tank (DEQ Spill No. 95-381). Some ofthe oil entered the onsite storm drain, discharged 

through Outfall 6, and created a sheen on the Willamette River. 

A 5,000-gallon form oil underground storage tank (UST) was removed and decommissioned in 

1989. About 200 cubic yards (yd3) of contaminated soil were removed from the excavation and 

disposed of at an offsite facility (DEQ, 1999). Three fuel USTs were removed from the northem 

property in 1994, and 80 cubic yards of soil were excavated, with the soil being aerated onsite. 

DEQ issued LPA a no further action closure determination on September 27, 1994. 

20 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 25 of 30
DEQ issued a notice of noncompliance for failure to submit annual or monthly monitoring 

reports on time in 1992 and 1993. DEQ also issued a notice of noncompliance for exceeding 

opacity and volatile organic compound (VOC) limits for air emissions from a fuel cell boiler and 

veneer dryers (1995). 

DEQ issued a notice of noncompliance for failure to submit an annual hazardous waste generator 

report in 2003. LPA had obtained a RCRA waste generator number in 2002 to facilitate removal 

of unused caustic, and as a closed business was not aware of the need to submit annual reports. 

DEQ noted the closed status of LPA and no further action was taken. 

Sander Dust Ash Disposal. Captured solids from the air treatment system for sander dust bumer 

were spread on the ground to dry landfilled on this parcel. Columbia Sand and Gravel has placed 

over 10 feet of fill on the site since their operations started, so the ash in now capped with sand. 

After 1997, the sander dust ash has been mixed with the sand processed by Columbia Sand and 

Gravel in the same area as the original disposal site. 

21 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 26 of 30
Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 27 of 30
»•, . 

Attachment 2 - EPA February Response Letter to Linnton Plywood Association Offer 

Please provide answers and documentation requested below and sign the Declaration: 

a. Federal Tax Returns Trae, complete and signed copies of the last two years federal tax 

returns were filed. 

b. Annual Financial Statements Tme and complete copies to include but not limited to an 

Income Statement, Balance Sheet, Cash Flow Statement and Expense Statement for the past 

two calendar years. 

In the first instance, armual Financial Statements should be those completed by an outside 

CP A. In order of preference, this would be an audit, a review, or a compilation - and includes 

all attached notes. If an outside CPA does not prepare these statements, then company 

generated annual financial statements should be provided. In the event that final financial 

statements are not yet ready for a just completed fiscal year, then provide a draft copy. 

c. Litigation Provide a statement with relevant details as to whether the company currently 

is, or anticipates being a party to, any litigation which has not been noted in the most recent 

financial statement and which could impact.the company's financial situation. 

d. Financial Settlements Provide a statement with relevant details as to whether the company 

curtently is, or anticipates receiving or paying, a financial settlement which has not been 

noted in the riiost recent financial statement. 

e. Credit 

(1) Does the company have any lines of credit which have not been mentioned in the 

most recent financial statement? If the answer is 'Yes', indicate with which financial 

institution(s) or lender(s), the specific terms and conditions of that line of credit and 

the current financial status. 

(2) Has the company applied for and been denied credit during the review period? If 

the answer is 'Yes', provide a statement containing details of that credit request and 

denial (i.e. date applied for, amount, name of financial institution/lender, date denied, 

etc.). Include a copy of the letter of denial from that financial institution/lender. 

f. Insurance 

i. Please provide complete copies of the confirnied liability insurance policies 

discussed in the October 2, 2009 letter to EPA. If complete copies for every year are not 

available, provide copies for the years available. 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 28 of 30
ii. • Please provide copies of all evidence LPA has regarding the unconfinned 

insurance policies discussed in the October 2, 2009 letter. This request is seeking all 

information, documents and/or correspondence LPA possesses that would indicate the 

existence of such policies (check stubs, invoices, etc.) and the coverage and other terms and 

conditions ofthe policies (correspondence between insured and the insurance company). 

iii. If not provided in response to subpart ii. above, please provide copies of all 

correspondence between LPA and the insurance company(ies) regarding insurance coverage 

and the terms and conditions of such liability insurance policies, including any Reservation 

of Rights and agreement to defend LPA. Please include any information or communications 

that substantiates the claim that the liability insurance policies for all 19 years are "wasting 

pohcies." 

iv. Did LPA have any excess insurance in addition to the primary policies that may 

provide coverage for property damage or other costs being incurred in relation to the Portland 

Harbor Superfiind Site? If so, please describe all such excess insurance and provide copies 

of all such policies. 

V. What type and amount of liability insurance did LPA have prior to 1966, and does 

LPA have any evidence or other information regarding the terms and conditions of such 

insurance policies? If so, please provide copies. 

vi. Please describe what the $400,000 of liability insurance coverage was paid for. 

vii. Was LPA ever a third-party insured on liability insurance of a lessee or other 

authorized company or person operating on LPA's property? If so, please describe such 

insurance policy and provide copies. 

g. Settlement Costs Please provide details ofthe major items constituting the $600,000 of 

liabilities and the estimated $600,000 closing costs that will be paid from the property sale ' 

proceeds. 

h. Share Redemption and Retains Please provide the breakdown between the amount of 

stock or equity redemption and the Retains and any other information that may help explain 

and support the $3.2 Million Retains amount. If the amounts of Equity redemption and 

Retains is different than that shown on the most recent financial statements or tax returns 

(items a. and b. above), please explain the differences. Please provide record evidence that 

supports the company owes $3.2 Million in Retains to its members. 

i. Additional Information The EPA encourages the company to provide any additional 

infonnation which may be relevant to the company's financial status and ability to pay 

response costs related to the Portland Harbor Superfund Site. Also, the EPA may request 

additional information to clarify issues raised by the above requested documents. 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 29 of 30
DECLARATION 

I declare under penalty of perjury that I am authorized torespond on behalf of Respondent and that the foregoing is 

complete, true, and correct. 

Executed on , 200 

Signature 

Type or Print Name 

Title 

Mailing Address 

Case 3:14-cv-01772-MO Document 33-22 Filed 04/10/15 Page 30 of 30