Tronox Incorporated Proposed Consent Decree and Environmental Settlement Agreement

506 Pages·2010·2.99 MB·English

PREET BHARARA
United States Attorney for the
Southern District of New York
ROBERT WILLIAM YALEN
TOMOKO ONOZAWA
JOSEPH A. PANTOJA
Assistant United States Attorneys
86 Chambers Street, 3rd Floor
New York, New York 10007
Telephone: [phone]/2785
Facsimile: [phone]
Email: [email protected]
[email protected]
[email protected]
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
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:
:
In re: : Chapter 11
:
TRONOX INCORPORATED, et al., : Case No. 09-10156 (ALG)
:
Debtors. :
: Jointly Administered
:
:
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NOTICE OF LODGING OF
PROPOSED CONSENT DECREE AND
ENVIRONMENTAL SETTLEMENT AGREEMENT
The United States of America hereby lodges with the Court the proposed Consent Decree
and Environmental Settlement Agreement (“proposed Settlement Agreement”). The proposed
Settlement Agreement, and a summary chart reflecting the allocation of funds to be received by
the settling parties thereunder, are attached hereto as Exhibits 1 and 2, respectively.
In accordance with Paragraphs 169 and 170 of the proposed Settlement Agreement, the
United States requests that the Court not approve the proposed Settlement Agreement at this
time. This proposed Settlement Agreement has been executed by all parties other than the State
of Texas on behalf of the Texas Commission on Environmental Quality (“TCEQ”). With respect
to claims asserted against the Debtors by TCEQ, the State of Texas will file its executed
signature page on or about December 20, 2010, following a 30-day public comment period under
state law if there are either no public comments or if public comments do not reveal previously-
undisclosed facts or considerations that would make signing the proposed Settlement Agreement
unwarranted. The public comment period will commence upon publication of the proposed
settlement in the Texas Register on November 19, 2010. Federal notice of the lodging of the
proposed Settlement Agreement will be published in the Federal Register, after which the
United States Department of Justice will accept public comments on the proposed Settlement
Agreement for a 30-day period. After the conclusion of the federal comment period, the United
States will file with the Court any comments received, as well as responses to the comments, and
at that time, if appropriate, will request that the Court approve the proposed Settlement
Agreement.
Dated: New York, New York
November 23, 2010
PREET BHARARA
United States Attorney for the
Southern District of New York
Attorney for the United States of America
By: /s/ Tomoko Onozawa
ROBERT WILLIAM YALEN
TOMOKO ONOZAWA
JOSEPH A. PANTOJA
Assistant United States Attorneys
86 Chambers Street, 3rd Floor
New York, New York 10007
Telephone: [phone]/2785
Facsimile: [phone]
Email: [email protected]
[email protected]
[email protected]
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EXHIBIT 1
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
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IN RE:
Case No. 09-10156 (ALG)
TRONOX INCORPORATED, et al.,
(Jointly Administered)
Debtors.
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CONSENT DECREE AND ENVIRONMENTAL SETTLEMENT AGREEMENT
TABLE OF CONTENTS
I.   RECITALS .........................................................................................................................1 

II.   DEFINITIONS ...................................................................................................................9 

III.  JURISDICTION ..............................................................................................................22

IV.   PARTIES BOUND; SUCCESSION AND ASSIGNMENT .........................................22

V.   THE MULTISTATE ENVIRONMENTAL RESPONSE TRUST..............................22

Multistate Trust Accounts ..................................................................................................28 

Lead Agencies....................................................................................................................39 

Transfers of Funds From the Multistate Trust Accounts ...................................................43

Multistate Trust Miscellaneous Provisions ........................................................................46 

VI.   THE SAVANNAH ENVIRONMENTAL RESPONSE TRUST .................................53

Multistate Trust Accounts ..................................................................................................67 

Lead Agencies....................................................................................................................70 

Transfers of Funds From the Multistate Trust Accounts ...................................................72

Multistate Trust Miscellaneous Provisions ........................................................................73 

VII.  THE CIMARRON ENVIRONMENTAL RESPONSE TRUST .................................79 

The Cimarron Trust Accounts ...........................................................................................85

Cimarron Lead Agencies ...................................................................................................88

Transfers of Funds From the Cimarron Trust Accounts ....................................................91

Cimarron Trust Miscellaneous Provisions .........................................................................93 

VIII.  THE HENDERSON ENVIRONMENTAL RESPONSE TRUST .............................100

Henderson Lease Agreement ...........................................................................................109

Henderson Trust Accounts...............................................................................................116 

Lead Agency for the Henderson Site ...............................................................................118 

Transfers of Funds From the Henderson Trust Accounts ................................................120

Henderson Trust Miscellaneous Provisions.....................................................................122

IX.   THE WEST CHICAGO ENVIRONMENTAL RESPONSE TRUST ......................129 

The West Chicago Trust Accounts ..................................................................................137

West Chicago Lead Agencies ..........................................................................................141 

Transfers of Funds From the West Chicago Trust Accounts ...........................................145 

West Chicago Trust Miscellaneous Provisions................................................................151

X.   CASH FUNDING OF ENVIRONMENTAL ACTIONS WITH

RESPECT TO CERTAIN NON-OWNED SITES ......................................................157

XI.   ADDITIONAL CONSIDERATION ............................................................................163
XII.  ANADARKO LITIGATION TRUST..........................................................................163 

Distributions of Anadarko Litigation Proceeds With Respect to Owned
Funded Sites.........................................................................................................165 

Distributions of Anadarko Litigation Proceeds With Respect to Certain
Non-Owned Sites.................................................................................................174

Distributions of Anadarko Litigation Proceeds With Respect to Other Sites ..................178

XIII.   SATISFACTION OF DOD CONTRIBUTION CLAIM............................................180

XIV.   DISTRIBUTION INSTRUCTIONS ............................................................................180

XV.   OUTSTANDING OBLIGATIONS ..............................................................................185

XVI.   COVENANTS NOT TO SUE OR RELEASES FROM LIABILITY .......................187 

XVII.   RESERVATION OF RIGHTS .....................................................................................196

XVIII. CONTRIBUTION PROTECTION ..............................................................................201

XIX.   TRANSFERS OF REAL PROPERTY INFORMATION AND

ENVIRONMENTAL INFORMATION ......................................................................203

XX.   TAX COOPERATION..................................................................................................210

XXI.   PUBLIC COMMENT ....................................................................................................210

XXII.   JUDICIAL APPROVAL...............................................................................................211 

XXIII. RETENTION OF JURISDICTION .............................................................................211 

XXIV.  EFFECTIVE DATE.......................................................................................................212 

XXV.   PLAN OF REORGANIZATION .................................................................................213 

XXVI.  AMENDMENTS/INTEGRATION AND COUNTERPARTS ..................................213
I. RECITALS

WHEREAS, on January 12, 2009, Tronox Incorporated and 14 of its affiliates
(collectively, “Debtors”)1 filed petitions with the Court under chapter 11 of the
Bankruptcy Code (the “Bankruptcy Cases”);
WHEREAS, the Sites set forth and defined in Attachments A-1 and A-2 hereto
which are owned by Debtors, and for which funding has been specifically allocated as set
forth herein, are referred to herein as the Owned Funded Sites;
WHEREAS, the Sites set forth and defined in Attachment A-3 hereto which are
owned by Debtors, and for which funding has not been specifically allocated herein,
other than as set forth in Paragraph 126, are referred to herein as the Owned Non-Funded
Sites;
WHEREAS, the Sites set forth and defined in Attachment B hereto are not
owned by Debtors, but includes Sites that (i) have known or potential environmental
contamination, or (ii) are the subject of current and ongoing clean-up obligations under
federal, tribal, or state Environmental Laws, and are referred to herein as the Non-Owned
Sites;
WHEREAS, the United States, on behalf of the United States Environmental
Protection Agency (“US EPA”), the United States Department of Agriculture, acting
through the United States Forest Service (the “Forest Service”), the United States
Department of the Interior (“DOI”), acting through the Fish and Wildlife Service and the

1 The debtors in these chapter 11 cases include: Tronox Luxembourg S.ar.L;
Tronox Incorporated; Cimarron Corporation; Southwestern Refining Company, Inc.;
Transworld Drilling Company; Triangle Refineries, Inc.; Triple S, Inc.; Triple S
Environmental Management Corporation; Triple S Minerals Resources Corporation;
Triple S Refining Corporation; Tronox LLC; Tronox Finance Corp.; Tronox Holdings,
Inc.; Tronox Pigments (Savannah) Inc.; and Tronox Worldwide LLC.
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Bureau of Land Management (“BLM”), the United States Department of Commerce,
acting through the National Oceanic and Atmospheric Administration (“NOAA”), the
United States Department of Defense, including the United States Department of the
Army, United States Army Corps of Engineers, United States Department of the Navy,
and United States Department of the Air Force (“DoD”), and the Nuclear Regulatory
Commission (“NRC”); the Navajo Nation; the States of Alabama, Florida, Georgia,2
Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana,3 Massachusetts,4 Mississippi,5
Missouri, Nevada,6 New Jersey, New York, North Carolina,7 Ohio, Oklahoma,
Pennsylvania, Tennessee, Texas, and Wisconsin (collectively, the “States”); the City of
Warrenville, Illinois, the City of West Chicago, Illinois, the Forest Preserve District of
DuPage County, Illinois, the West Chicago Park District, DuPage County, Illinois, the
City of Chicago, and the Chicago Park District (collectively, the “Local Governments”;

2 All references to “Georgia” or the “State of Georgia” are limited to the Georgia
Department of Natural Resources, Environmental Protection Division.

3 All references to “Louisiana” or the “State of Louisiana” are limited to the
Louisiana Department of Environmental Quality.

4 All references to “Massachusetts” or the “Commonwealth of Massachusetts” are
limited to the Massachusetts Department of Environmental Protection and, as to claims
for natural resource damages only, the Executive Office of Energy and Environmental
Affairs.

5 All references to “Mississippi” or the “State of Mississippi” are limited to the
Mississippi Commission on Environmental Quality.

6 All references to “Nevada” or the “State of Nevada” are limited to the Nevada
Department of Conservation and Natural Resources, Division of Environmental
Protection.

7 All references to “North Carolina” or the “State of North Carolina” are limited to
the North Carolina Division of Waste Management and, as to claims for natural resources
only, the Trustee for Natural Resources for North Carolina, along with any successors
thereto.
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the Local Governments and the United States, the States, and the Navajo Nation,
collectively, the “Governments”), assert that Debtors are potentially responsible parties or
may otherwise be responsible for known or potential environmental contamination with
respect to certain Owned and Non-Owned Sites;
WHEREAS, the United States on behalf of the US EPA, Forest Service, DOI,
NOAA, and NRC asserts: (i) that with respect to certain Owned and Non-Owned Sites,
Debtors are liable to it for past response costs and potential future response costs that the
United States has incurred or may incur under the Comprehensive Environmental
Response, Compensation, and Liability Act (“CERCLA”) 42 U.S.C. §§ 9601-9675, for
civil penalties pursuant to the Resource Conservation and Recovery Act (“RCRA”) 42
U.S.C. §§ 6901-6992k, for civil penalties pursuant to the Clean Air Act (“CAA”) 42
U.S.C. §§ 7401-7671(q), and the Clean Water Act (“CWA”) 33 U.S.C. §§ 1251-1387, for
obligations under Sections 62, 63, and 161 of the Atomic Energy Act of 1954 (“Atomic
Energy Act”), 42 U.S.C. §§ 2092, 2093, 2201, and for damages for injury to, destruction
of, or loss of natural resources as defined in 42 U.S.C. § 101(16) (“NRD”) and natural
resource damages assessment costs and restoration actions; (ii) that Debtors are liable for
all post-petition environmental response costs, NRD and related assessment costs and
restoration actions, and the performance of work and/or decommissioning activities under
CERCLA, RCRA and the Atomic Energy Act with respect to certain Owned Sites as
present owner thereof; and (iii) that Debtors are liable for certain protective and/or
contingent claims and causes of action with respect to certain Non-Owned Sites;
WHEREAS, the United States on behalf of DoD asserts a contribution claim
against Debtors, to the extent that DoD is determined to be liable pursuant to CERCLA
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and/or analogous state law in connection with the Fireworks Site in Hanover,
Massachusetts;
WHEREAS, the Navajo Nation asserts that Debtors are liable for past response
costs and future response costs under CERCLA, the Navajo Nation Comprehensive
Environmental Response Compensation and Liability Act, 4 Navajo Nation Code § 2101
et seq., and other federal and Navajo Nation Environmental Laws relating to the former
Shiprock, New Mexico Uranium Mill Site (“Shiprock Mill Site”), and the former Kerr-
McGee Quivira Church Rock Mine Site, including Quivira NE Church Rock Mines I, IE
and II, and all areas where contaminants associated with those mines have been
deposited, stored, disposed of, placed, or otherwise come to be located (“Quivira Mine
Site”);
WHEREAS, the States assert: (i) that Debtors are liable for past response costs
and future response costs under CERCLA or state Environmental Laws with respect to
certain Owned and Non-Owned Sites; (ii) for certain States only, Debtors are liable for
certain NRD and related costs (including assessment costs) in connection with certain
Owned and Non-Owned Sites; (iii) that Debtors are liable for all post-petition
environmental response costs, NRD and related costs (including assessment costs), and
the performance of work under CERCLA or state law relating to certain Owned Sites as a
present owner thereof; and (iv) Debtors are liable for certain protective and/or contingent
claims and causes of action with respect to certain Non-Owned Sites;
WHEREAS, the Local Governments assert: (i) that Debtors are liable for the
performance of work under CERCLA or state law relating to certain Owned Sites as a
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