[Federal Register Volume 84, Number 113 (Wednesday, June 12, 2019)]
[Notices]
[Page 27361]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-12329]


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DEPARTMENT OF JUSTICE


Notice of Lodging of Proposed Settlement Agreement Under the 
Comprehensive Environmental Response, Compensation, and Liability Act

    On June 5, 2019, a proposed Settlement Agreement (``Agreement'') 
was lodged with the Circuit Court of Cook County, Illinois in In the 
Matter of the Rehabilitation of Centaur Insurance Company, No. 87 CH 
8615, entered into by the United States, on behalf of the United States 
Environmental Protection Agency (``EPA''), the Department of the 
Interior (``DOI''), the National Oceanic and Atmospheric Administration 
of the Department of Commerce (``NOAA''), and Robert H. Muriel, Acting 
Director of the Illinois Department of Insurance, who acts as the 
Rehabilitator of Centaur Insurance Company (``Rehabilitator'').
    The Centaur Insurance Company (``Centaur'') is an insurance company 
in rehabilitation under the jurisdiction of the Circuit Court of Cook 
County, Illinois County Department, Chancery Division. In November, 
2017, the United States filed a proof of claim (``POC'') under Section 
205 of the Illinois Insurance Code, 215 ILSC 5/205, which provides that 
claims may be filed against insurance companies in receivership by 
persons with liability claims against insureds covered by the 
companies' policies. The United States, on behalf of EPA, filed a 
$500,000 claim under a 1980 Centaur policy issued to the Sharon Steel 
Corporation (``Sharon Steel'') with a limit of $500,000. The POC 
alleged that Sharon Steel is liable for response costs incurred or to 
be incurred by EPA at the Sharon Steel Superfund Site in Farrell and 
Hermitage, Pennsylvania, under Section 107 of the Comprehensive 
Environmental Response, Compensation, and Liability Act (``CERCLA''), 
42 U.S.C. 9607. The United States, on behalf of DOI and NOAA, filed a 
$1.25 million claim under a 1982 Centaur policy issued to LCP Chemicals 
& Plastics, Inc. (``LCP''), which has a remaining policy limit of $1.25 
million. The POC alleged that LCP is liable under Section 107 of CERCLA 
for assessment costs and natural resource damages related to hazardous 
substances that migrated from the LCP Superfund Site in Linden, New 
Jersey to Piles Creek. Finally, the United States, on behalf of EPA and 
DOI, filed a $10 million claim under two Centaur policies issued in 
1980 and 1981, respectively, to Avtex Fibers, Inc. (``Avtex Fibers''), 
each with a limit of $5 million. The POC alleged that Avtex Fibers is 
liable under Section 107 of CERCLA with respect to response costs 
incurred or to be incurred by EPA as well as assessment costs and 
natural resource damages at the Avtex Fibers Site in Front Royal, 
Virginia.
    Pursuant to the Agreement, the Rehabilitator will (a) resolve the 
claim filed under the policy issued to Sharon Steel by making a 
$500,000 payment to EPA, (b) resolve the claim filed under the policy 
issued to LCP by making a payment of $967,000 to NOAA and $33,000 to 
DOI, and, (c) resolve the claim filed under the policies issued to 
Avtex Fibers by making a $4,330,000 payment to EPA and a $670,000 
payment to DOI.
    Under the Agreement the United States is providing a covenant not 
to file a civil action against the Rehabilitator or Centaur with 
respect to (a) all liabilities and obligations to DOI and NOAA under 
the LCP Policy arising pursuant to CERCLA at any site, (b) all 
liabilities and obligations to EPA and DOI under the Avtex Policies 
arising under CERCLA at any site, and (c) all liabilities and 
obligations to EPA under the Sharon Steel Policy arising under CERCLA 
at any site, whether such liabilities and obligations are known or 
unknown, reported or unreported, and whether currently existing or 
arising in the future. The covenant applies not only to the 
Rehabilitator and Centaur, but also to their respective subsidiaries, 
affiliates, parent companies, successors and assigns and their 
respective officers, directors and employees.
    The publication of this notice opens a period for public comment on 
the Agreement. Comments should be addressed to the Assistant Attorney 
General, Environment and Natural Resources Division, and should refer 
to In the Matter of the Rehabilitation of Centaur Insurance Company, 
No. 87 CH 8615 (Ill. Circuit Ct. Cook County), D.J. Ref. No. 90-11-3-
10462. All comments must be submitted no later than thirty (30) days 
after the publication date of this notice. Comments may be submitted 
either by email or by mail:

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         To submit comments:                     Send them to:
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By email............................  [email protected].
By mail.............................  Assistant Attorney General, U.S.
                                       DOJ--ENRD, P.O. Box 7611,
                                       Washington, D.C. 20044-7611.
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    During the public comment period, the Agreement may be examined and 
downloaded at this Justice Department website: https://www.justice.gov/enrd/consent-decrees. We will provide a paper copy of the Agreement 
upon written request and payment of reproduction costs. Please mail 
your request and payment to: Consent Decree Library, U.S. DOJ--ENRD, 
P.O. Box 7611, Washington, DC 20044-7611.
    Please enclose a check or money order for $3.75 (25 cents per page 
reproduction cost) payable to the United States Treasury.

Jeffrey Sands,
Assistant Section Chief, Environmental Enforcement Section, Environment 
and Natural Resources Division.
[FR Doc. 2019-12329 Filed 6-11-19; 8:45 am]
 BILLING CODE 4410-15-P