Practical guide to negotiating Superfund cost allocation agreements

Cleanup of abandoned waste disposal sites presents significant liability exposure to industrial companies and insurance carriers across the nation. While the conduct giving rise to such liability often took place decades ago, it was only recently that federal and state statutes authorized the governmental cleanup of these sites. These statutes explicitly imposed liability for the cost of this cleanup effort upon responsible parties. Because these statutes define responsible parties to include companies and individuals with only the most tenuous connection with these sites, vast numbers of companies have found themselves identified by the EPA or state environmental authorities as potentially responsible parties (PRPs) at particular sites. These PRPs include present and former site owners; waste generators and transporters; waste recycling or treatment firms; as well as individual executives associated with these corporate PRPs. Upon receipt of a PRP notice form the EPA, almost all of these parties have been forced to begin a process of negotiation of litigation that is difficult, time-consuming, and expensive. This article provides a practical guide to coordination techniques that can be used for reducing the legal and transactional costs incurred by PRPs in this area. 19 references.