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Case 3:15-Cv-01201 Document 2-1 Filed 03/09/15 Page 1 of 46 Case 3:15-cv-01201 Document 2-1 Filed 03/09/15 Page 1 of 46 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF PUERTO RICO UNITED STATES OF AMERICA, Plaintiff, v. CNIL ACTION NO. TOTAL PETROLEUM PUERTO RICO CORP., Defendant. Case 3:15-cv-01201 Document 2-1 Filed 03/09/15 Page 2 of 46 TABLE OF CONTENTS I. JURISDICTION AND VENUE ............................ ......... 2 II. APPLICABILITY ................................................ 3 III. DEFINITIONS .........................•----................... 6 IV. CIVIL PENALTY ....................................... • - - .... 8 V. COMPLIANCE REQUIREMENTS .................................... 9 VI. SUPPLEMENTAL ENVIRONMENTAL PROJECT ....................... 15 VII. REPORTING REQUIREMENTS ................................... 20 VIII. STIPULATED PENALTIES ...................................... 22 IX. FORCE MAJEURE ............................................. 27 X. DISPUTE RESOLUTION ......................................... 29 XI. INFORMATION COLLECTION AND RETENTION ...................... 31 XII. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS ................. 34 XIII. COSTS .................................................... 35 XIV. NOTICES .................................................. 36 XV. EFFECTIVE DATE ............................................ 37 XVI. RETENTION OF JURISDICTION .................................. 37 XVII. MODIFICATION ............................................. 38 XVIIl. TERMINATION .................••-•------.................. 38 XIX. PUBLIC PARTICIPATION ...................................... 39 XX. SIGNATORIES/SERVICE........................................ 39 XXI. INTEGRATION .............................................. 40 XXII. FINAL JUDGMENT .......................................... 40 XXIII. APPENDICES .............................................. 40 Case 3:15-cv-01201 Document 2-1 Filed 03/09/15 Page 3 of 46 CONSENT DECREE Plaintiff United States of America, on behalf ofthe United States Environmental Protection Agency ("EPA"), has filed a Complaint in this action, concurrently with this Consent Decree, against Defendant TOTAL PETROLEUM PUERTO RICO CORP.(hereina$er "Defendant' or "Total") to obtain injunctive relief and assessment of civil penalties for violations of the Solid Waste Disposal Act, as amended (commonly referred to as the Resource Conservation and Recovery Act), 42 U.S.C. Section 6991 et seq. (hereinafter the "Act" or "RCRA"), the federally approved and enforceable Puerto Rico Underground Storage Tank Regulations("PRUSTR") and the federal underground storage tank regulations codified in Part 280 of Title 40 ofthe Code of Federal Regulations ("C.F.R."), regarding numerous "underground storage tanks" or "USTs" and "UST systems" that have been or are owned and/or operated by the Defendant at the Facilities in the Commonwealth ofPuerto Rico ("Puerto Rico") and the Territory of the United States Virgin Islands ("Virgin Islands"). A. The Complaint alleges that Defendant at the Facilities has failed to satisfy numerous requirements mandated by Subtitle I of RCRA and either the PRUSTR in Puerto Rico or 40 C.F.R. Part 280 in the Virgin Islands, including Defendant's failure to meet its legal obligation to:(1) report suspected releases;(2) investigate suspected releases;(3) provide release detection for USTs;(4) provide release detection for pressurized piping;(5) provide release detection for USTs in temporary closure;(6) maintain and provide release detection records;(7) maintain and provide records of annual tests of annual line leak detection ("ACED")equipment; (8) operate and maintain corrosion protection equipment;(9) provide properly calibrated overfill protection equipment;(10) secure USTs in temporary closure; and (11) secure vapor and/or groundwater monitoring wells. -1- Case 3:15-cv-01201 Document 2-1 Filed 03/09/15 Page 4 of 46 B. Defendant admits that it has owned or owns UST systems at the Facilities that are the subject ofthe Complaint and the Consent Decree in this action, and represents that as a fuel wholesaler and/or distributor, it is generally prohibited in Puerto Rico from operating the Facilities under Puerto Rico's Act No. 3 of March 21, 1978, as amended, 23 L.P.RA. Sections 1102 and 1104a. C. Defendant does not admit any liability to the United States arising out of the transactions or occurrences alleged in the Complaint. D. The Parties recognize, and the Court by entering this Consent Decree finds, that this Consent Decree has been negotiated by the Parties in good faith and will avoid litigation between the Parties and that this Consent Decree is fair, reasonable, and in the public interest. NOW,THEREFORE, before the taking of any testimony, without the adjudication or admission of any issue of fact or law except as provided in Section I below, and with the consent of the Parties, IT IS HEREBY ADJUDGED,ORDERED, AND DECREED as follows: I. JURISDICTION AND VENUE This Court has jurisdiction over the subject matter ofthis action pursuant to 28 U.S.C. §§ 1331, 1345, and 1355, and Section 9006(a)(1) of RCRA,42 U.S.C. § 6991e(a)(1), and over the Parties. Venue is proper in this judicial district pursuant to 28 U.S.C. §§ 1391(b) and (c) and 28 U.S.C. § 1395 because the Defendant is located in this district and a substantial part of the events or omissions giving rise to this action occurred in this district. -2- Case 3:15-cv-01201 Document 2-1 Filed 03/09/15 Page 5 of 46 3. For purposes of this Consent Decree, or any action to enforce this Consent Decree, Defendant consents to the Court's jurisdiction over this Consent Decree and over any such action and over Defendant, and consents to venue in this judicial district. 4. For purposes ofthis Consent Decree, Defendant agrees that the Complaint states claims upon which relief may be granted pursuant to Section 9006 of RCRA,42 U.S.C. Section 6991e. II. APPLICABILITY The obligations ofthis Consent Decree apply to and are binding upon the United States, and upon Defendant and any successors, successor affiliates, subsidiaries, assigns, or other entities or persons otherwise bound by law, except as provided by Paragraph 6. 6. No transfer of ownership or operation ofthe UST systems at the Facilities, whether in compliance with the procedures ofthis Paragraph or otherwise, shall relieve Defendant of its obligation to ensure that the terms of the Consent Decree are implemented by Defendant, except as otherwise provided in subsection (a) below. Any transfer of ownership or operation ofthe UST systems at a Facility to any other person must be conditioned upon the transferee's agreement to allow Defendant access to the Facility so it may continue to undertake the obligations required by this Consent Decree until its termination or until transfer of ownership or operation ofthe UST systems at a Facility in accordance with subsection (a) below, as provided in a written agreement regarding the transfer of the UST systems between the Defendant and the transferee. a. Notwithstanding the provisions of Paragraph 6 above, Defendant shal l be released from its obligations under this Consent Decree (except for the obligations to -3- Case 3:15-cv-01201 Document 2-1 Filed 03/09/15 Page 6 of 46 retain records for the period prior to transfer pursuant to Paragraph 67 and to perform the Supplemental Environmental Project set forth in Section VI for the Facility) provided that: (i) Any transfer of ownership or operation ofthe UST systems at a Facility to any other person shall be conditioned upon the transferee's express written agreement regarding the UST systems to specifically assume and undertake the obligations required by this Consent Decree (except for the obligations to retain records for the period prior to transfer pursuant to Paragraph 67 and to perform the Supplemental Environmental Project set forth in Section VI for the Facility), and that such written agreement between the Defendant and the proposed transferee shall be enforceable by the United States as a third party beneficiary of such agreement; (ii) At least thirty (30) Days prior to such a transfer (to the extent reasonably possible given the circumstances, but in any event no later than 15 days prior to that date), Defendant shall provide a copy of this Consent Decree to the proposed transferee and shall simultaneously provide written notice ofthe prospective transfer, together with a copy ofthe proposed written agreement regarding the UST systems, to EPA Region 2, the United States Attorney for the District ofPuerto Rico, and the United States Department of Justice, in accordance with Section XIV (Notices); - (iii) No later than five (5) business days after the execution or completion of such transfer, Defendant shall provide an executed copy ofthe written agreement regarding the UST systems to the United States, in accordance with Section XIV (Notices); (iv) Defendant within the two (2) months prior to the expected date ofthe transfer shall perform tank and line tightness testing to ensure that there are no leaking components in the UST system, and to the extent that any component ofthe UST system is determined to be inadequate, Defendant shall repair, upgrade or permanently close the UST system component (as ~~ Case 3:15-cv-01201 Document 2-1 Filed 03/09/15 Page 7 of 46 appropriate) in accordance with applicable regulations, including the regulations requiring performance of a site assessment and any necessary corrective action(s); (v) Defendant shall take all necessary corrective action(s), in compliance with applicable
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