[Federal Register Volume 66, Number 191 (Tuesday, October 2, 2001)]
[Notices]
[Pages 50197-50198]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24593]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-7070-5]


San Gabriel Superfund Site; Notice of Administrative Settlement

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: In accordance with the Comprehensive Environmental Response, 
Compensation and Liability Act of 1980, as amended by the Superfund 
Amendments and Reauthorization Act of 1986 (CERCLA), 42 U.S.C. 9600 et 
seq., notice is hereby given that an Agreement and Covenant Not to Sue 
(Prospective Purchaser Agreement, or PPA) associated with the San 
Gabriel Superfund Site Superfund Site was executed by the U.S. 
Environmental Protection Agency (EPA) on September 25, 2001. The 
Prospective Purchaser Agreement resolves potential claims of the United 
States under sections 106 and 107(a) of CERCLA, 42 U.S.C. 9606 and 
9607(a) against Northrop Grumman Systems Corporation, a Delaware 
corporation, (the Purchaser). The Purchaser plans to acquire Aerojet-
General Corporation's electronics plant, comprising approximately 70, 
located at 1100 West Hollyvale Avenue, Azusa, California

[[Page 50198]]

within the Baldwin Park Operable Unit (BPOU) of the San Gabriel Valley 
Superfund Site. The Purchaser intends to use the plant for the design 
and manufacture of space-based sensors and smart weapons.
    A notice of the proposed PPA and opportunity for public comment was 
published August 10, 2001 at 66 FR 42227. Based on a review of the 
public comments and EPA's independent analysis of the facts and 
circumstances concerning this matter, EPA has modified the proposed 
PPA.
    The primary modification is that EPA has significantly increased 
the amount of consideration required in exchange for the liability 
release granted to the Purchaser. Specifically, the PPA now requires 
Aerojet to provide an additional $40 million in cash for deposit into a 
third-party escrow account.
    The settlement now provides the following benefits to EPA: the 
Purchaser will pay EPA $325,000 in cash, to be held in reserve in a 
special account for future cleanup work at the BPOU; Aerojet, a 
potentially responsible party at the BPOU, will pay EPA $9 million as 
partial reimbursement of its past costs to be held in the same special 
account for the same purposes; Aerojet will pay $40 million into a 
third-party escrow account that may, with EPA approval, be used to fund 
construction of the groundwater remedy at the BPOU; and Aerojet's 
parent company, GenCorp Inc., will provide a written guaranty of $25 
million to assure Aerojet's performance of future cleanup activities.

DATES: This Prospective Purchaser Agreement, as modified, is effective 
September 25, 2001.
    Public Comments: The public comment period on the proposed 
Prospective Purchaser Agreement closed on September 10, 2001. EPA 
received 100 comments from various entities and individuals. Responses 
to these comments have been prepared and are available for public 
inspection at the address below.

ADDRESSES: The Prospective Purchaser Agreement, as modified, the 
Response to Public Comments and additional background documents 
relating to the settlement are available for public inspection in the 
Superfund Records Center, San Gabriel Valley Superfund Site file, at 
the U.S. Environmental Protection Agency, 75 Hawthorne Street, San 
Francisco, CA 94105. The modified Prospective Purchaser Agreement can 
be accessed through the Internet on EPA Region 9's Website located at: 
http://www.epa.gov/region09/waste/brown/ppa.html.
    A copy of the Agreement may be obtained from Lewis Maldonado, 
Senior Counsel (ORC-3), Office of Regional Counsel, U.S. EPA Region IX, 
75 Hawthorne Street, San Francisco, CA 94105. Comments should reference 
``Northrop Grumman PPA, San Gabriel Superfund Site'' and ``Docket No. 
2001-15'' and should be addressed to Lewis Maldonado at the above 
address.

FOR FURTHER INFORMATION CONTACT: Lewis Maldonado, Senior Counsel (ORC-
3), Office of Regional Counsel, U.S. EPA Region IX, 75 Hawthorne 
Street, San Francisco, CA 94105; phone: (415) 744-1342; fax (415) 744-
1041; e-mail: [email protected].

    Dated: September 25, 2001.
John Kemmerer,
Acting Director, Superfund Division, Region IX.
[FR Doc. 01-24593 Filed 10-1-01; 8:45 am]
BILLING CODE 6560-50-P