Opinion ID: 691337
Heading Depth: 2
Heading Rank: 1

Heading: The Clean-up

Text: 3 In 1979, despite the lagoon and filter system, the MDNR ordered the City of Adrian to no longer accept ADC's wastewater because it was tainted with Curene 442. It further ordered ADC to cease producing Curene 442. 4 In 1983, the United States Environmental Protection Agency (EPA) designated ADC's Adrian facility as a site under the National Priorities List, pursuant to Sec. 105 of the Comprehensive Environmental Response, Compensation, and Liability Act. 42 U.S.C. Sec. 9605 (CERCLA). Moreover, in 1985, the EPA sent ADC formal notification that it considered ADC to be a potentially responsible party for the release or threatened release of hazardous substances at the plant resulting in possible soil and/or groundwater contamination. This is commonly referred to as a PRP letter. The letter demanded that ADC agree to provide any relevant information and undertake a remedial investigation/feasibility study. The EPA also warned ADC in the letter that its failure to comply with these requests would result in ADC's being liable for all costs associated with the removal or remedial action and all other necessary costs incurred in cleaning up the site, including investigation, planning and enforcement. ADC notified Travelers, its insurer, of these events but Travelers responded that it was not prepared to provide a defense or coverage with respect to the matter. ADC thereafter agreed to conduct the study which did in fact reveal contamination in selected areas surrounding the lagoon. The EPA later determined that an environmental clean-up would be required. The EPA and ADC subsequently entered into a consent decree wherein ADC agreed to perform the response and clean-up activities required by the EPA. The clean-up has cost ADC roughly six to eight million dollars.