ENFORCEMENT (T" or do EXPRESS MAIL— RETURN RECEIPT REQUESTED Mr. Jack Welch, Chairman of Dr. Irvin L. White, President the Board New York State Energy Research General Electric Company and Development Authority 3135 Easton Turnpike Agency Building No. 2 Fairfield, CT 06431 Empire State Plaza Albany, N.Y. 12223 Mr. Delano Wilson, President Power Technologies, Inc. Raymond J. Kazyaka, President 1482 Erie Boulevard Wright Malta Corporation Schenectady, N.Y. 12305 Malta Test Station Plains Road Dr. Richard Schmidt, President Ballston Spa, N.Y. 12020 Mechanical Technologies, Inc. 968 Albany Shaker Road Mr. R.B. Stephenson, President Latham, N.Y. 12110 Advanced Nuclear Fuels, Inc. 600 108th Avenue N.E. T.R. Berner, President P.O. Box 90777 and Chairman of the Board Bellevue, WA 98009 Curtiss-Wright Corporation 1200 Wall Street West Verill M. Norwood, Jr. Lyndhurst, N.J. 07071 Vice President - Environmental Affairs Olin Corporation P.O. Box 248 Lower River Road Charleston, TN 37310 Re: Malta Rocket Fuel Area Superfund Site Dear Sirs: Enclosed is Administrative Order Index No. CERCLA 11-90219 ("Order"), issued on September 28, 1989 by the U.S. Environmental Protection Agency, Region II ("EPA"). The Order requires potentially responsible parties ("PRPs") identified by EPA for the Malta Rocket Fuel Area Site ("Site") to perform a Remedial Investigation/Feasibility Study ("RI/FS") for the Site. 2ORC-NYCSUP:CAPON:VFC:4X4471:10-03-89:F:MALTA\letters\GE-UAO: 20RC-NYCSUP 20RC-NYCSUP CAPON CORMAN 700001 As you may recall, on August 25, 1989, EPA provided the PRPs with a final opportunity to execute a consent order for performance of the RI/FS. In response, on the last day for execution of the consent order, several of you informed EPA of your understanding that EPA and the Department of Defense ("DOD") had achieved an agreement in principle for performance of the RI/FS; based on such an agreement in principle, it was your understanding that an extension for execution of the consent order had been granted, and that you would be finalizing a side agreement with DOD during such extension. EPA notes that at the time such correspondence was received by EPA, the deadline for execution of a consent order had been reached and no extension had been granted by EPA, nor had any agreement in principle been reached between EPA and DOD. Discussions between EPA and DOD concerning DOD performance of an RI/FS for the Site and execution of an agreement for the same were unsuccessful. Therefore, failure to reach an agreement with any PRP for performance of an RI/FS at the Site has resulted in issuance of the enclosed Order. In addition, pursuant to Executive Order 12580 Section 4(e), 52 Fed. Reg. 2923 (1987), EPA is taking steps to require the federal agency PRPs' involvement in the RI/FS for the Site. As indicated in Paragraph 92 of the Order, the named Respondents may confer with EPA to discuss the enclosed Order within fourteen (14) days from the date it is received. Should you wish to request such a conference, or should you have any questions concerning this matter, you may contact me at (212) 264-4471. Very truly yours, Virginia Capon Assistant Regional Counsel New York/Caribbean Superfund Branch Enclosure cc: Frank Bifera, Esq. - NYSDEC Roger Strelow Larry Boggs, Esq. Angus MacBeth, Esq. Phillip Gitlen, Esq. William Willig, Esq. Rodney Knight, Esq. James Takemoto, Esq. David J. Mahoney, Esq. Dana Taylor, Esq. Richard Hodgson, Esq. bcc: Steve Luftig - ERRD Alison Hess - ERRD '' 700002 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION II In the Matter of Advanced Nuclear Fuels, Inc. ADMINISTRATIVE ORDER Curtiss-Wright Corporation General Electric Company (Malta Rocket Fuel Area Site) Mechanical Technology, Inc. New York State Energy Research and Development Authority Index No. II CERCLA-90219 01in Corporation Power Technologies, Inc. Wright Malta Corporation Respondents, Proceeding Under Sections 106(a) of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9606(a) 700003 -4- 12. Between 1968 and 1970, NYSASDA constructed a building ("GE/Exxon-Nuclear Building" depicted in the map attached hereto as "Appendix 1") in the one (1) mile safety easement for lease to Iso-Nuclear Corporation ("Iso-Nuclear"). According to Respondents, the parcel was leased to Iso-Nuclear for use in developing and testing an irradiation process to sanitize hospital equipment and preserve food. In 1971, Iso-Nuclear defaulted on the lease and the GE/Exxon-Nuclear Building was leased to GE. Exxon-Nuclear Company, Inc. ("Exxon-Nuclear") and GE used the GE/Exxon-Nuclear Building for a gas centrifuge uranium enrichment technology research project sponsored by the Department of Energy ("DOE"). GE withdrew from the project in 1974 and NYSASDA leased the building to Exxon-Nuclear. Exxon- Nuclear concluded the uranium enrichment project in 1979 and NYSERDA renovated the Exxon-Nuclear Building until 1981 when NYSERDA leased it back to GE. At the GE/Exxon-Nuclear Building, GE conducted research on pressurized fluidized bed combustion technology and carbonate fuel cell development. Advanced Nuclear Fuels, Inc. is the successor corporation of Exxon-Nuclear. 13. Beginning in April 1972, Wright Malta, a company consisting of former GE employees, entered into a lease of the entire Test Station to continue the same type of defense-related testing activities previously performed by GE and to engage in energy systems research and development. Beginning in 1976, Wright Malta sublet portions of the Test Station to GE for similar activities. 14. In 1972, NYSASDA regained possession of a portion of the Test Station from Wright Malta and leased it to PTI for use in electric power transmission research, some of which involved transformers containing polychlorinated biphenyls ("PCBs"). 15. In 1975, Hew York State legislation reconstituted NYSASDA as NYSERDA to reflect a change in its mission from atomic and space development to energy research and development. 16. In 1976, NYSERDA regained possession of another portion of the Test Station from Wright Malta and leased it to MTI, for use in turbo-machinery and low-level heat recovery systems research and development. 17. On December 20, 1984, NYSERDA sold to Wright Malta approximately 81 acres of the Test Station, including most of the original buildings, test areas, rocket gantries and other facilities constructed and used at the Test Station, as well as the water supply system and water supply wells known as. water supply well "1" and "2". Of the original Test Station, NYSERDA retained the MTI and PTI parcels and the NYSERDA office building (See map attached hereto as "Appendix II"). The additional 280 100004 -5- acres acquired by NYSASDA, on which the GE/Exxon-Nuclear Building is located, were also retained by NYSERDA. 18. In 1979, uranium hexafluoride was released in a portion of the GE/Exxon-Nuclear Building. 19. In October 1978, NYSERDA learned of a concrete storage bed located on a portion of the Site leased to Wright Malta upon which were stored a variety of containers including drums and bottles of hydrazine-based rocket fuels. In July 1980, most of this material was disposed of on-site by burning, pursuant to a NYSDEC permit. In July 1981, the remaining material, consisting of noncombustible dilute hydrazine, was transported to the CECOS International Facility in Niagara Falls, New York. 20. In June 1985, transformers located on the portion of the Test Station leased to PTI were tested and found to contain PCBs. NYSERDA and PTI conducted a cleanup and decontamination of the transformers in 1987. 21. In October 1985, a buried container of triethyl aluminum exploded when it was punctured by a GE subcontractor during earth moving activities. 22. On a site visit in 1988, EPA and NYSDEC observed old and rusting drums and containers at various locations at the Site. These containers were standing in unprotected areas on the ground and some were labeled with the names of hazardous substances. 23. Numerous site inspections, investigations, and engineering studies conducted at the Site by the New York State Department of Health ("DOH"), NYSDEC, and several of the PRPs between 1979 and 1989, identify a number of hazardous substances, as that term is defined in Section 101(14) of CERCLA, 42 U.S.C. § 9601(14). Drinking water, ground water, surface water, septic tank liquid and sludge samples taken during that period confirm the presence of hazardous substances, including carbon tetrachloride, trichloroethylene, 1,1,2-trichloroethane, boron, PCBs, chloroform, trans-1,2-dichloroethylene, 1,1-dichloroethane, 1,2- dichloroethane, bromomethane, and toluene. 24. The presence of hazardous substances in drinking water, ground water, surface water, septic tank liquid and sludge and in containers at the Site constitutes an actual or threatened "release" within the meaning of Section 101(22) of CERCLA, 42 U.S.C. § 9601(22). 25. The possible health effects of exposure to some of the hazardous substances identified at the Site are summarized as follows: *7Q0005 -6- a. 1,1-dichloroethane and trans-1,2-dichloroethylene can damage the liver and the central nervous system. b. PCBs can cause liver damage and adverse reproductive effects, and may also cause cancer. Exposure to the skin can cause chloracne and possible tumor formation. c. Trichloroethylene can induce hepatocellular carcinomas in mice and was mutagenic when tested using several microbial assay systems. Chronic inhalation exposure has been found to cause liver, kidney and neural damage and dennatological reactions in animals. 26. Many of the substances referred to in the preceding Paragraphs can cause a variety of adverse and/or lethal effects in exposed populations. 27. Air inhalation, soil ingestion, and surface and ground water ingestion are pathways that may lead to exposure to hazardous substances and the aforementioned health effects.