ANALYSIS OF THE PRELIMINARY AGREEMENT BETWEEN THE LOWER ELWHA KLALLAM TRIBE AND STATE OF WASHINGTON DEPARTMENT OF ECOLOGY

Joel S. Hirschhorn, Ph.D.
for Olympic Environmental Council


March 29, 1999

[Funding for this work was provided by a public participation grant from the Washington State Department of Ecology. This material was reviewed for consistency with the purposes of the grant only; grant funding does not constitute endorsement of opinions or recommendations expressed herein.]

Summary

If the Tribe believed that signing this Agreement was in their best interests because it was the best deal available regarding the cleanup of the Rayonier mill site in Port Angeles, then it was sadly mistaken or it was seriously deceived by government officials. The most important aspect of this agreement is that the Tribe may support state control of the Rayonier mill site cleanup rather than EPA control under the federal Superfund program.

But this support is contingent on the Tribe obtaining "sufficient funding" from Rayonier to support its involvement. Even though Governor Locke has announced the agreement with the Tribe and his decision to not support federal control of the cleanup, the Tribe has not yet concluded its deal for funding with Rayonier. If that deal is consummated, then the Tribe's agreement with the state gets it the right to give or withhold concurrence with state decisions. But giving the Tribe power over the state through the concurrence provision could be challenged in court.

What the Tribe apparently has not realized is that trading away federal control almost certainly means losing a more comprehensive, higher quality cleanup. Any close examination of available materials about the Rayonier case, including a draft agreement already written by Rayonier to be used as the basis of the cleanup under state control clearly shows that Rayonier is convinced that it can greatly reduce its cleanup costs if the state is in control. No element of the agreement the Tribe has signed provides assurance that the plans of Rayonier to greatly limit the extent of cleanup will be blunted. Most significantly there is no explicit language in the agreement regarding full cleanup of Port Angeles Harbor - Strait of Juan de Fuca sediments and contaminated residential areas in Port Angeles. On March 26, 1999 Governor Locke announced his recommendation to EPA to not list the Rayonier site on the federal National Priorities List and said that it was based "on key agreements the state Department of Ecology achieved with the Lower Elwha Klallam Tribe and Rayonier." However, in addition to the Tribe reaching an agreement with Rayonier for funding EPA must formally issue a deferral agreement. This analysis shows, however, that EPA is under no obligation whatsoever to accept the recommendation of the Governor and that there is ample reason for EPA to follow its own deferral guidance and reject the state's desire to avoid making the Rayonier site a federal cleanup.


Was the Tribe deceived?

There are various bureaucratic reasons why EPA might not want another Superfund site to manage, especially one with so much public controversy. But EPA's required scientific evaluation had found the site qualified for the Superfund remedial cleanup program, forcing EPA to notify the Governor of its intent to formally list the site on the National Priorities List. However, EPA knew that the state and Rayonier wanted to keep the cleanup out of the Superfund program. But there clearly was also a strong citizen group, the petitioners who had compelled EPA to assess the Rayonier the site, that could it make it difficult for EPA to not implement its own findings. One way out of this uncomfortable situation was for EPA to facilitate and strengthen the state's case against federal control. Despite the letter to the Governor from Region 10 Administrator Chuck Clarke (Jan. 25, 1999) informing him about the site being serious enough to merit placement on the NPL, it is now known that EPA Region 10 held a meeting between themselves, DOE and the Tribe on February 22, 1999 at which it informed the Tribe that EPA wanted to defer cleanup control to the state and not pursue NPL listing.

At that meeting EPA may have conveyed this message to the Tribe in order to remove a political problem for the Governor by getting the Tribe to believe that its only and best strategy was to work out a deal with the state and Rayonier. If this was the case, unfortunately the Tribe did not see this message as a political ploy that could only be credible and successfully implemented IF the Tribe sided with the state. In large measure the situation was like a poker game where two of the three players (EPA and the state) bluffed a strong hand which the Tribe believed and capitulated to. In fact, if the Tribe supported EPA's written intention to list the Rayonier site, then it would be difficult for the state and Rayonier to prevail and very difficult for EPA to avoid listing the Rayonier site.

It must be emphasized that Administrator Clarke informed Governor Locke that "As part of the Superfund listing process, it is EPA's policy to request support from the Governor of the State in which the site is located." Under current law and policy, however, a Governor does not have to give such support in order for EPA to list a site. Indeed, the Governor's March 24, 1999 letter to Administrator Clarke said that the Governor did not "endorse" such a designation, but favored a state-led cleanup. Moreover, Administrator Clarke had explicitly cited a number of reasons why EPA wanted to list the Rayonier site on the NPL, and it noted that the U.S. Department of Interior, as a natural resource trustee under the Superfund law, also supported NPL listing. There is no statement in the EPA letter that in any way said or indicated that EPA cannot list the Rayonier site if the Governor objects to the listing.

The most recent document from EPA headquarters on the issue of NPL listing and the role of states and tribes is a July 25, 1997 memorandum from Timothy Fields to Regional Administrators. The stated purpose of that document was "to outline the process that will be employed when the State does not agree that a site should be listed, but the Region believes it has sufficient reasons to proceed with the NPL listing process." Clearly, Administrator Clarke has already made the case in writing for having sufficient reasons to proceed with NPL listing. Nowhere in the headquarters document is there any indication that a state can unilaterally deny NPL listing. If a regional EPA office cannot resolve a difference between its view about listing with objections by a state, then the headquarters document indicated that the Assistant Administrator for the Office of Solid Waste and Emergency Response "will then decide whether to pursue NPL listing" after giving a state "the opportunity to present its position in writing." It was also noted that EPA could provide "an appropriate deadline for a response, but the State does not respond. In such a case, EPA may proceed with the NPL listing process."

Moreover, in the letter to Governor Locke Administrator Clarke very explicitly summarized the substantial rights of the Tribe and said: "NPL designation would also ensure that clean up would be protective of Treaty Fisheries and protect the Tribe's authority as a natural resources trustee." He also acknowledged that "the Tribe will be involved in all Superfund activities as a consulted government agency. Therefore, the Tribe will be included as a signatory to Superfund cleanup agreements." Also, Administrator Clarke recounted how EPA had already entered into a Memorandum of Understanding with the Tribe covering site assessment, including funding, and that, given NPL listing, how that agreement "would be amended to address all remedial activities under Superfund." All of this supports the view that the Tribe had the capability to obtain as much from EPA as from the state.


Tribe standing in the federal Superfund program

What the Tribe should have given more consideration to was this: Is there really anything gained from its agreement with the state that it could not have also obtained from using its very strong position within the federal legal CERCLA framework if the Rayonier site was made an NPL site? It is especially significant that EPA Region 10 has already officially concluded that the site's Hazard Ranking System score was sufficient to place the site on the NPL. Such an agreement with the state might have made sense in a situation where it seemed highly unlikely that the site could qualify for the NPL. But this agreement was entered into AFTER EPA Region 10 notified the Governor that the site qualified for the NPL and, as presented above, after Administrator Clarke had clearly specified the extensive rights of the Tribe that would be protected if the Rayonier site was listed. Why did the Tribe believe some verbal statements by EPA Region 10 officials that contradicted the extensive, previous written statements by Administrator Clarke? Why did the Tribe not recognize the inability of the state of Washington to prevent NPL listing of the Rayonier site? There are no obvious, logical answers to these key questions.

Another key question that should have been thoroughly considered was this: Why would the Tribe discount the considerable objections to state control of the Rayonier cleanup by the group of citizen petitioners who had successfully engaged EPA and caused Region 10 to conclude that the site merited NPL listing? The existing formal EPA headquarters guidance on deferral of NPL listing determinations submitted to the regional offices in May 1995 explicitly said the following:

"If, at any time before a site is deferred to the State, the Region, after consulting with the State, determines that the community or other parties have significant, valid objections to the deferral that cannot be resolved, the Region should not defer the site."

The guidance also explicitly acknowledged that:

"EPA will not defer such a site to a State unless the affected Tribe(s) agrees to the deferral through a three-party agreement with the State and the Region."

In view of all of these EPA policies, it is difficult to comprehend why the Tribe has signed the agreement with the state. If the Tribe joined with the citizen petitioners in supporting listing the Rayonier site, it is difficult to imagine how EPA could acquiesce to a request from the state to deny NPL listing, even if various other parties supported the state's position.


Misconception about EPA intervention

In large measure it appears that the Tribe believes it has created some type of safety net for its interests, because even though it is supporting an EPA decision to let the state be in charge of the necessary cleanup it also believes that if things go wrong it can easily bring EPA back into the picture. The Tribe is wrong. Once EPA acquiesces to a request by the Governor to not list the site on the federal National Priorities List (NPL), which will greatly be facilitated by the Tribe's support of state control, the state will be completely able to apply its own legal and regulatory framework. The Tribe may be confused because an option that is preempted by the agreement is making the Rayonier site a Superfund NPL site, but allowing the state to be the lead agency. In that option, EPA retains legal responsibility and the cleanup is implemented under Superfund procedures and requirements, but by the state rather than directly by EPA.

But once EPA decides to not list a site and gives cleanup control to a state, the site is totally outside the Superfund system and the state decides what is an acceptable cleanup. It is virtually inconceivable that sufficient hard evidence could ever be obtained to document a totally corrupt or incompetent cleanup performed under state control. It is technically implausible to obtain evidence that a state cleanup is completely ineffective, mainly because it is always easy for any government agency to argue that its approved actions are sufficient to protect public health and environment. It is also politically inconceivable that having once given the state control that EPA Region 10 would then disgrace the state by concluding that the state completely compromised the public interest. The state could litigate the matter.

The Tribe is also wrong in placing emphasis on the potential for "seeking review and technical assistance from the EPA in responding to proposed decisions." Why would EPA Region 10 use its limited resources on a site that was no longer in the federal Superfund program? Indeed, under what legal authority could it use its personnel and budget for a state cleanup? EPA could not recover its costs from Rayonier, because there would be no legal requirement for Rayonier to provide such funding to EPA. It is inconceivable that EPA would expend significant resources on responding to such a request and EPA would certainly be very sensitive to providing anything that would be viewed by the state as contesting state decisions.

This author certainly has seen occasions where states have sought some very limited technical reviews or advice from EPA offices for narrow aspects of state cleanups. But this is very different than believing that EPA would attempt to take away control of a cleanup from a state agency. Indeed, it would be very difficult to accomplish legally. The Tribe's belief that EPA stands ready to jump into a complex state cleanup process and side with the Tribe's objections and possibly begin the process of NPL listing again is unfounded. Interestingly, the press release from the Governor's office of March 26, 1999, which announced that Governor Locke had recommended that EPA not list the Rayonier site, said: "EPA would review the status of the cleanup annually. In case of dispute, the tribe would be able to request that EPA assume authority for the cleanup under the Superfund process." But viewing such an EPA activity as anything more than a superficial, perfunctory activity is unduly optimistic. EPA might prepare some limited technical reviews, but it would not likely attempt to disrupt state control and actions. What is interesting is that these statements from the Governor are based on the 1995 EPA guidance on deferral of cleanups to sites, which also includes the strong basis for denying deferral of a cleanup to a state when there are significant objections to it.


Who is the real beneficiary of state control of the Rayonier cleanup?

Reasonable people should always ask why some states fight so hard to keep sites out of the federal Superfund system. In this case, the chief beneficiary of giving the state control over the cleanup is Rayonier, and the company has forcefully been using every possible tactic to gain support for state control. Why? Money. This is all about saving money for Rayonier. But saving money for Rayonier inevitably means a lower quality, less comprehensive cleanup. Other arguments, such as a faster cleanup under state control have little merit. Beyond the fact that faster is not necessarily better, lies the larger fact that there is no data whatsoever to show that a state cleanup of the same quality as a federal Superfund cleanup ever gets completed faster.
Under the agreement the Tribe may indeed obtain significant funds from Rayonier to support the Tribe's participation, perhaps several hundred thousand dollars. But this is a small price for Rayonier to pay, considering that a more comprehensive cleanup under Superfund would surely cost the company many millions of dollars more than a state cleanup.



The concurrence issue

A major legal issue can and surely would be raised eventually concerning the state granting the Tribe the right to provide "concurrence at all major decision points in the cleanup process." In fact, however, the power of concurrence may not be what it first seems to be. The agreement actually says in section 5h that "Ecology will consult the Tribe and seek the Tribe's concurrence..." A stronger statement, however, is in section 5i: "Ecology will not move forward with a proposed cleanup decision without the Tribe's concurrence." Has the state of Washington really given up its sovereign power and authority to act under state laws and regulations without the Tribe's concurrence? Examination of the Model Toxics Control Act reveals no basis for the state giving up its power and authority by making all of its decisions contingent on concurrence by the Tribe. WAC 173-340-130(9) only refers to Ecology keeping tribes "informed" and "involved" within the context of "coordination." Nothing in the act refers to granting any governmental entity, including tribes, the right of concurrence without which Ecology could not act. While consulting with the Tribe and seeking concurrence might be consistent with the act, preventing the ability of Ecology to move forward because of the absence of Tribe concurrence has no basis in state law. If this is the case, then any court action, most probably by Rayonier, would surely provide relief and allow the state to move forward with cleanup decisions and actions in the public interest without Tribe concurrence. If the need for Tribe concurrence is not enforceable, then the whole agreement between the Tribe and the state is nothing but a ploy to co-opt the Tribe and facilitate giving Rayonier what it wants.


No effective dispute resolution provision

The part of the agreement dealing with potential disputes provides no comfort whatsoever. The one main sentence on disputes does not really provide a dispute resolution mechanism or process but only states: "In the event that a dispute arises under this Agreement, including the Tribe's non concurrence with a decision by Ecology, it shall be determined by a Dispute Board in the following manner:
Level 1 Dispute: Ecology and Tribe Project Managers Level 2 Dispute: Governor or designated representative and Tribal Chair or designated representative
Level 3 Dispute: The Tribe may request EPA to resume authority of cleanup of the site according to the Superfund process or take other appropriate actions under CERCLA or other applicable law."

The very language referring to a dispute being "determined" seems meaningless. In both Levels 1 and 2 each party has one vote and a fundamental disagreement would not be easily resolved. The Level 3 is essentially meaningless, because the Tribe either believes or has been led to believe that EPA would easily jump into a contentious disagreement under its Superfund authorities. But there is no basis for this belief in law, regulation, policy, or precedent. Even if EPA wanted to intervene, any EPA action would be legally and politically difficult and require considerable time to collect and analyze information and then reach some decision as to which party was right. That such disputes would be happening during a formal state cleanup process would raise serious issues that Rayonier, paying for and implementing site studies and cleanup actions, would surely raise, including delays that would increase costs and pose safety or other hazardous conditions. In other words, the dispute management part of the agreement has no credibility or real value. Endless litigation is a distinct prospect, but this would not stop a cleanup that the Tribe found objectionable. Trying to fix a bad cleanup is certainly far less desirable than getting the cleanup right the first time. Under federal control Rayonier would find it much more difficult to limit the scope and quality of the cleanup.


The magnitude of the Rayonier cleanup

Under section 5f, the agreement specifies that the site boundaries "must include the area of influence of chemical contamination caused by activities at the Rayonier Mill facility." The main technical problem, however, with this is that Rayonier is well prepared to argue that it cannot be proven that the Rayonier mill site was either the sole or dominant cause of all of the harbor sediment and residential soil contamination that has already been identified in EPA's Expanded Site Inspection and much more that might be found in a truly thorough Remedial Investigation. Rayonier's main objective is to limit the extent of the cleanup to the mill site itself and a very limited amount of cleanup in immediately adjacent areas. Rayonier's intent is to greatly limit the extent of sediment cleanup in the harbor to a relatively small area close to the mill site and to totally ignore residential soil contamination. It should be noted that the letter from Administrator Clarke to Governor Locke explicitly noted that "NPL listing will not only ensure the investigation and remediation of onsite contamination, but of contamination that has migrated off site as well."


Role in key site conceptual model

A key part of the agreement is section 5d on cleanup standards and construction of the site's conceptual model, which is extremely important in determining cleanup standards. This section uses much softer language relative to the role of the Tribe, namely: "Ecology shall consult with the Tribe in constructing a conceptual model describing the potential pathways for human and environmental exposure to contaminants." Consulting with, of course, is a far cry from requiring concurrence by the Tribe. Apparently construction of the conceptual model is not the same as a "proposed cleanup decision" even though it is a profoundly important scientific basis for cleanup standards and decisions. In fact, the extensive set of term definitions in MTCA does not include "cleanup decision." However, the proposed changes in MTCA include a detailed definition of conceptual site model and the current act includes a definition for cleanup standards.

Cleanup standards are critically important in the MTCA process because they specify cleanup levels and according to WAC 173-340-700(2) "Cleanup levels also define the area or volume of soil, water, air or sediment that must be addressed by the cleanup action." In fact, this is the only part of the act explicitly addressing the crucial issue of site boundaries and the geographic extent of cleanup. Section 5f of the agreement provides this: "Definition of the site boundaries must include the area of influence of chemical contamination caused by activities at the Rayonier Mill facility." But if the Tribe does not have to provide concurrence for the conceptual site model then it cannot control cleanup standards and levels, nor the actual extent of the cleanup. The subtle technical problem is that "the area of influence of influence of chemical contamination caused by the activities at the Rayonier Mill facility." can be contested by Rayonier. Rayonier has already argued that the extensive contamination in the harbor and residential areas was not caused by the Rayonier facility. Taking everything into consideration it seems clear that the Tribe does not have the ability under the agreement to ensure the most comprehensive cleanup, particularly for the totality of contaminated sediments in the harbor and Strait as well as residential areas, regardless of the evidence about contamination in these areas.


The sufficient funding issue

A key aspect of the agreement is that Tribe participation is contingent on receiving "sufficient funding." But surely what is sufficient funding is open to considerable debate and disagreement. It appears that the Tribe must negotiate a separate agreement concerning the funding, which must come from Rayonier. Having once obtained the support of the Tribe for state control of the Rayonier cleanup, having EPA formally remove the site from the Superfund program, and having initiated specific cleanup activities, neither the state or Rayonier would find it necessary to provide increased funding because of needs of the Tribe to maintain or expand its effective participation.

It should also be appreciated that although Rayonier will surely find it cost-effective to provide some initial significant funding to the Tribe, an important benefit of a cleanup being performed under Superfund would be lost. All NPL sites qualify for Technical Assistance Grants to community groups. Such TAGs provide a critically and significant source of funding to allow affected citizens to hire their own independent technical advisors to examine and interpret all activities by EPA and other parties performing work at the NPL sites. The $50,000 grants can be renewed repeatedly as long as Superfund activities continue at a site. The agreement between the Tribe and the state does not address the needs of ordinary citizens and non-governmental groups such as the Olympic Environmental Council. It should be noted that the letter from Administrator Clarke to Governor Locke explicitly noted that NPL listing "will also ensure that the concerns of the natural resource trustees, the Lower Elwha Klallam Tribe and the citizens petitioners are addressed." The agreement between the Tribe and state provides no assurances that the petitioners who caused EPA to perform the Expanded Site Inspection that has compelled a thorough cleanup of the Rayonier mill site, which the state on its own had never addressed, would have their concerns effectively addressed under a state controlled cleanup.

Darlene Schanfald
Olympic Environmental Council
3632 O'Brien Road
Port Angeles WA 98362
360-417-0855 (Phone & FAX)

OEC blasts DoE for underhandedness