CALEPA Continued Operations of BKK Landfill


November 22, 2004

Mr. Keith Takata, Chief
Emergency Response Section
United States Environmental Protection Agency
Region IX
75 Hawthorne Street
San Francisco, California 94105-3901

BKK LANDFILL SITE IN WEST COVINA, CALIFORNIA

Dear Mr. Takata:

By this letter, the California Department of Toxic Substances Control (DTSC) and the California Integrated Waste Management Board (CIWMB) (collectively, the Requesting Agencies) request that the United States Environmental Protection Agency (U.S. EPA), Region IX, be prepared to assist the Requesting Agencies in addressing the actual release or potential threat of release of (a) hazardous substances, pollutants and/or contaminants at the BKK Class I Landfill; and (b) pollutants at the BKK Class III Landfill, both located on South Azusa Avenue in West Covina, California (the Site). In addition to the landfills, the Site includes the leachate treatment plant (LTP).

If the Requesting Agencies actually request U.S. EPA to begin the assistance and implementation of activities addressed below, the Requesting Agencies will provide U.S. EPA with a signed letter in substantially the form of Exhibit A, enclosed. The letter may be signed by our designees. Until U.S. EPA receives the signed letter, the Requesting Agencies' only request is that U.S. EPA be prepared to assist with and undertake activities addressed in this letter.

State and federal regulatory agencies in charge of overseeing environmental compliance at the Class I and Class III landfills (U.S. EPA, DTSC, and CIWMB) are concerned about the BKK Corporation's (BKK's) ability to meet its regulatory obligations. This includes post-closure care of the Class I landfill, gas monitoring at the Class III landfill, and operation of the LTP on behalf of both landfills. This concern is caused in part by BKK's financial situation and Washington Mutual Bank's (WaMu's) decision to discontinue its financial contributions to BKK to provide post-closure care for the Class I landfill.

1001 1 Street
Sacramento, California 95814
(916) 445-3846
Fax: (916) 445-6401

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November 22, 2004

Mr. Keith Takata, Chief
Emergency Response Section
United States Environmental Protection Agency
Region IX
75 Hawthorne Street
San Francisco, California 94105-3901

BKK LANDFILL SITE IN WEST COVINA, CALIFORNIA

Dear Mr. Takata:

In October 2004, BKK notified DTSC and U.S. EPA that it does not have sufficient funds to continue operating essential landfill functions after November 17, 2004. Therefore, the regulatory agencies have been coordinating plans to prevent the Site from posing an imminent and immediate public health threat to the adjacent residents.

It is critical that certain operations at the Class I and Class III landfills continue to ensure public health and safety. DTSC has identified these critical operations in a contingency plan previously provided to U.S. EPA. As you are aware, DTSC is conducting emergency response activities at the Site and has hired Engineering/Remediation Resources Group, Inc., (ERRG) to ensure the continuity of essential operations and maintenance activities at the Site.

Specifically, we request that U.S. EPA be prepared to assist the Requesting Agencies in undertaking select post-closure work at the Class I landfill, gas monitoring at the Class III landfill, and operation of the LTP on behalf of both landfills should it become necessary to abate an immediate, imminent and substantial endangerment. There are also "deferred maintenance" activities that have not been conducted by BKK that may require replacement and/or significant repairs to abate any emergencies (i.e., replacement of storm drains).

This would constitute a time-critical removal action. We understand that U.S. EPA may be in a position to have its Emergency Response Section conduct critical Site operations to ensure that systems are continued without interruption or replace/repair critical systems if needed. We also understand that U.S. EPA's preference would be to undertake such operations for as short a period of time as possible, with potentially responsible parties taking over the work from U.S. EPA as quickly as possible, which is also DTSC's preference.

Class I Landfill and LTP Activities

Critical activities that DTSC would want U.S. EPA to undertake or assist in undertaking at the Class I facility upon receipt of a signed letter in substantially the form of the enclosed Exhibit A include, but are not limited to:

• Operation, maintenance, and monitoring of the perimeter and interior gas collection system, monitoring of the perimeter gas probes, and operation of the two flare stations for the Class I landfill;
  
  
• Operation of the leachate collection system for the Class I landfill. Ensure that leachate collection lines and extraction pumps are operating and flows to the LTP are unobstructed. Any liquids in remote sumps, tanks and basins not piped to the LTP need to be collected and transported via vacuum truck to the LTP;
  
  
• Operation, maintenance, and monitoring of the LTP for maintenance of the Class I landfill;
  
  
• Operation, maintenance, and inspection of the groundwater extraction system, including wells, sumps, pumps, tanks, piping, lines and other equipment. This includes the Miranda Springs Groundwater Pumping Well (MR-01), which must be continuously pumped;
  
  
• Irrigation and other maintenance of the Class I landfill cap;
  
  
• Site security (i.e., 24-hour site security and perimeter fence inspection and repair);
  
  
• Inspection and maintenance of surface water run-off and run-on control systems and storm drains;
  
  
• Maintenance of Class I landfill roads; and
  
  
• Maintenance of groundwater monitoring required for the Class I landfill.

In general, subject to the provisos outlined below, the activities outlined above would be eligible for reimbursement under the Class I landfill insurance policy. There may also be additional activities attributable to the Class I landfill critical contingency operations that U.S. EPA deems necessary.

DTSC will cooperate with U.S. EPA if U.S. EPA attempts to claim reimbursement for costs incurred by U.S. EPA for post-closure work for the Class I landfill. DTSC cooperation will be consistent with the scope of its regulatory authority provided for in the California Code of Regulations, title 22, sections 66264.145, subdivision (e) and section 66265.145, subdivision (d), and within its understanding of the terms and conditions of the Class I post-closure policy in effect. Please also be aware that in recent months DTSC and its emergency response contractor have incurred costs that qualify for reimbursement from the insurance policy. Therefore, for a variety of reasons, DTSC makes no guarantees as to U.S. EPA's receipt of reimbursements from the insurance carrier.

Some of the systems and functions described above also serve the Class III landfill and adjacent parcels owned by the City of West Covina. For these shared functions and systems, only the proportionate share of the cost that is attributable to the Class I landfill would be eligible for reimbursement, subject to any conditions described above.

Class III Landfill, Gas Monitorinq and LTP Activities

Because the leachate and gas systems for both the Class I and Class III facilities are linked at the Site, the threat of release of pollutants and/or methane gas also emanates from the "non-hazardous" Class III landfill. CIWMB would therefore want U.S. EPA to undertake the same activities listed above for the Class I facility at the Class III facility, upon receipt of a signed letter in substantially the form of Exhibit A.

Post-closure maintenance activities are generally eligible for reimbursement under BKK's Class III post-closure maintenance insurance policy, but only after the Class III facility is certified closed (Cal. Code. Regs., tit. 27, secs. 21880 and 22234). The Class III facility closure is underway, but it is not known when the final closure can be certified. Therefore, it does not appear that work performed at the Class III facility prior to closure certification will be deemed eligible for reimbursement from the Class III post-closure maintenance insurance policy. Thus, it is presently not known at what point any reimbursements for post-closure maintenance activities would be allowed.

Given the above and to the extent possible, CIWMB will cooperate with U.S. EPA if U.S. EPA claims reimbursement for costs incurred by U.S. EPA for post-closure work at the Class III landfill. CIWMB cooperation will be consistent with the scope of its statutory and regulatory authority provided for in Public Resources Code sections 43600 et seq. and the California Code of Regulations, title 27, sections 22225 et seq., and within its understanding of the terms and conditions of the Class III post-closure policy in effect. CIWMB makes no guarantees as to U.S. EPA's ability to receive reimbursement from the insurance carrier.

There may also be other potential funding sources available, for emergency purposes, from CIWMB. For example, CIWMB's Solid Waste Disposal and Codisposal Site Cleanup Program might be available to cleanup and abate the damaged storm drain system, which serves both the Class I and Class III areas. This issue has been the subject of recent orders from the Los Angeles Regional Water Quality Control Board and the City of West Covina, which is the CIWMB's Local Enforcement Agency (LEA).

The CIWMB's Solid Waste Cleanup Program provides a potential funding source for cleanup activities when the responsible party either cannot be identified or is unable/unwilling to pay for timely cleanup, and where cleanup is needed to protect public health and safety and/or the environment. Although CIWMB has no regulatory authority over codisposal sites, the Solid Waste Cleanup Program explicitly allows for funding of cleanup activities for the solid waste portion of codisposal sites. However, any potential CIWMB involvement would be subject to available funding, CIWMB Board approval, and CIWMB's statutory and regulatory authority under Public Resources Code sections 48020, et seq. and California Code of Regulations, title 14, section 18900, et seq.

As the signatories for this request pertaining to the Class I landfill, LTP, and Class III landfill operations, we are authorized to make this request on behalf of the Requesting Agencies. We look forward to a continued cooperative effort at the BKK Site. Thank you for your prompt attention to this matter.

Sincerely,


Watson Gin, P.E.
Deputy Director
Hazardous Waste Management Program
Department of Toxic Substances Control


Howard Levenson
Deputy Director
Permitting and Enforcement Division
California Integrated Waste Management Board

Enclosure
cc: Mr. Colin Lennard
Fulbright & Jaworski
865 South Figueroa Street
Los Angeles, California 90071

Ms. Arlene Kabei
U.S. Environmental Protection Agency
Region IX
75 Hawthorne Street
San Francisco, California 94105

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Exhibit A Mr. Keith Takata, Chief
Emergency Response Section
United States Environmental Protection Agency
Region IX
75 Hawthorne Street
San Francisco, California 94105-3901

BKK LANDFILL SITE IN WEST COVINA, CALIFORNIA

Dear Mr. Takata:

By this letter, the Department of Toxic Substances Control (DTSC) and the California Integrated Waste Management Board (CIWMB) (collectively, the Requesting Agencies) request that the United States Environmental Protection Agency (U.S. EPA), Region IX, provide the assistance and undertake the activities discussed in the Requesting Agencies' November 19, 2004, letter to U.S. EPA. Please consider this request to be effective as of the date of this letter.

Thank you for your attention to this letter. Please feel free to contact us at the following telephone numbers with questions or comments. Mr. Watson Gin: (916) 322-3501 (office) and (916) 825-3036 (cell). Mr. Howard Levenson: (916) 341-6311 (office) and (916) 769-8496 (cell).

Sincerely,

Watson Gin, P.E. or Designee
Deputy Director
Hazardous Waste Management Program
Department of Toxic Substances Control

Howard Levenson or Designee
Deputy Director
Permitting and Enforcement Division
California Integrated Waste Management Board




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