EPA, tire recycler work on settlement

Monday, December 1, 2008 12:36 PM CST

The Environmental Protection Agency and the Department of Justice are in settlement negotiations with Tom Springer, owner of Watertown Tire Recyclers, LLC, who currently owes more than $1 million in clean up costs for a tire fire that destroyed his business more than 3 1/2 years ago.

On Oct. 3, 2006, the EPA issued a demand letter to Springer for response costs associated with the fire on July 19, 2005, that burned an estimated 400,000 to 1 million tires in the town of Shields.

At the time of the letter, the EPA's costs for the site clean up totaled $663,457.098 according to Lynn Buhl, regional administrator for the EPA. Since the date of EPA's original demand, EPA has uncovered additional costs associated with the site and sent Springer a revised cost summary for costs through Feb. 29, totaling $1,044,714.19.

According to a letter Buhl wrote to Sen. Russell Feingold following a listening session in Watertown, Springer is liable for the entire amount of EPA's response costs. The costs do not reflect a fine issued to Springer, but rather the costs EPA incurred as a result of its emergency response actions, Buhl said. As of the middle of November, Springer had not reimbursed the EPA for any of its costs and interest continues to accrue as the date of EPA's demand, Buhl said. The EPA does not have the authority to assess penalties, she added.

To recover costs, the EPA referred the matter to the U.S. Department of Justice on Feb. 29.

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Currently, the DOJ and EPA are in settlement negotiations with Springer and other potentially responsible parties associated with the site, Buhl wrote. Failure to resolve the matter may result in civil litigation against Springer, as well as other potentially responsibly parties, to recover al of EPA's costs with interest, Buhl said.

In July, the EPA reportedly sent letters to some dealers, the state of Wisconsin and other businesses requesting that they pay their share of the clean up costs or face civil action in federal court.

On July 17, the EPA's regional office in Chicago notified 37 entities of potential liability. The letter stated the agency had used public funds to clean up hazardous substances created by the Watertown tire blaze, and under the Comprehensive Environmental Response, Cleanup and Liability act of 1980, responsible parties are liable for costs associated with site cleanup. According to the letter, persons who arranged for the disposal or treatment of hazardous substances can be considered potentially responsible parties.

At one time, Springer's business was one of the largest tire recyclers in the state and processed 40 percent of Wisconsin's scrap tires.

In June of 2006, the Wisconsin attorney general's office had reached a settlement in an environmental protection enforcement lawsuit against Watertown Tire Recyclers, which Springer was ordered to pay $320,000 in penalties and costs for the fire. As part of that settlement, the city of Watertown was to receive $120,000, the town of Shields to get $25,000 and $122,893 to be divided among 94 other municipalities that responded to the fire which burned for five days.

The state Department of Natural Resources was to receive $31,000 for its fire response costs and $21,106 was to be paid to the state in forfeitures and surcharges.

According to the settlement, Springer was ordered to close the tire collection and transportation business on Provimi Road by 2010, and until that time the hours of operation would be limited and the DNR would administer quarterly unannounced inspections.

According to the Department of Justice's complaint, prior to the fire, Watertown Tire Recyclers exceeded its allowed volume of tires, failed to maintain adequate fire lanes, stored tires improperly, failed to submit required reports and to notify the DNR of any problems or changes.

The state fire marshal determined that a front-end loader, which was moving tire chips at the business the morning of the fire, got some of the chips into the manifold area and the chips started on fire from the engine's heat. The fire spread rapidly among the piles of tires stored at the facility. More than 100 fire departments responded during the weeklong fire, and a fire suppressant agent and foam was used to extinguish the blaze.

Because neither Springer nor the state were able to treat contaminated surface water that resulted in the firefighting efforts, the federal EPA responded to the site.

According to Buhl's letter, the EPA may consider settling for an adjusted amount where a potentially responsible party associated with the site can demonstrate an inability or limited ability to pay.