Re: Sunflower AAP Early Transfer

[Lenny Siegel <lsiegel@cpeo.org>]

Gibbons, Frank W. wrote:
> 
> Lenny- An excellent analysis but you left out one important
> point. Since the government caused the contamination, the
> government as the PRP can NEVER escape liability. The government
> can, and will, ask the purchaser to provide indemnification
> against certain liabilities which may be covered by insurance.
> However the indemnification does not change the government's
> ultimate responsibility.
> 
> Frank Gibbons

Based upon my reading of the Defense Department's "Comeback" policy, I
doubt whether the Army would come back to do additional remediation at
Sunflower if the developer completes cleanup activities as directed or
approved by the Kansas Department of Health and the Environment, even if
those activities do not provide adequate long-term protection of public
health and the environment.

My fear is that the state will approve inadequate remedies, with too
much reliance upon containment and un-reinforced institutional controls,
in the rush to redevelop the property and pay off the revenue bonds.
It's not the cleanup money, but the development subsidies, that create a
conflict of interest for the Governor.

This result is not inevitable, but to reduce its likelihood all
agreements must be carefully examined by the public, US EPA, and other
parties with no financial stake in the outcome. Since those documents
are still being negotiated, I am not in a position to argue their
sufficiency.

This is a large, extremely contaminated site, that has not been
adequately characterized, and which reportedly has a low intrinsic
property value. On what basis do the parties - Army, GSA, state,
developer, and insurers - think cleanup costs can be cut dramatically
while opening up much of the land to young children - as a theme park?
That question must be answered before the deal goes through.

-- 


Lenny Siegel
Director, Center for Public Environmental Oversight
c/o PSC, 222B View St., Mountain View, CA 94041
Voice: 650/961-8918 or 650/969-1545
Fax: 650/968-1126
lsiegel@cpeo.org