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Commissioner Peder A. Larson <br />April 15, 1997 <br />Page 10 <br />additional transactions with Schnitzer during the mid 1970s. The MPCA has determined that <br />any party that supplied transformers to the site should be added to the RP Group. Root <br />Equipment Supply is an active company that is in the business of selling electrical supplies in <br />the Twin Cities. Once again, Root Equipment Supply and perhaps many other companies should <br />be added to the RP Group. <br />These oversights and errors are not insignificant. By passing over parties who should <br />have been named as RPs and overlooking major battery suppliers who should have been named <br />as PRPs under the MPCA's theory, the MPCA has skewed allocation of cleanup responsibility. <br />With a cleanup estimated to cost approximately $5 million, the MPCA's actions have had a <br />major financial impact on Schnitzer Group members, many of whom are small businesses and, <br />in one case, a unit of local government. <br />By the MPCA staff s own admissions, the PRP identification effort was poorly conceived <br />and conducted. The findings of the Group, based on a preliminary review of the MPCA's files, <br />demonstrate the fundamental flaws with the MPCA's work. Based on the information that has <br />been uncovered to date, the MPCA should not proceed with a de minimis settlement. The <br />MPCA's erroneous assumptions about who should be named as PRPs at the Schnitzer site affect <br />all members of the Group. The impact is particularly severe on Group members whose overall <br />contribution of batteries or lead is just over the arbitrary one per cent figure determined by your <br />staff. <br />RESERVATION OF RIGHTS <br />In providing the above comments and objections, the individual members of the Schnitzer <br />Group do not admit that they are responsible for any release of hazardous substances, pollutants <br />or contaminants that may have occurred at the Schnitzer site. The Schnitzer Group, and its <br />individual members, specifically reserve all of their rights and defenses that may be asserted if <br />the State or an other entity seeks to recover costs of any kind from the Schnitzer Group or any <br />of its individual members. This reservation includes not only legal defenses, but also issues <br />related to the scope and cost of the proposed or completed cleanup at the site. <br />Under the federal de minimis process non settling parties clearly have rights to intervene <br />to oppose such settlements. United States v. Union Electric Co. et al, 64 F.3d 1152 (8th Cir. <br />1995). The Group intends to vigorously assert its rights both as to the de minimis process and <br />its ultimate liability. The Group urgently requests that the MPCA stop or abandon its de <br />minimis process and reassess the entire PRP designation process in this case. Failure to do so <br />may force the Group to take other legal action to protect its rights. <br />)0 <br />