Full opinion text
FINDINGS OF FACT AND CONCLUSIONS OF LAW ANITA B. BRODY, District Judge. INTRODUCTION This is a contribution action brought under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) 42 U.S.C. § 9601 et seq. and its Pennsylvania law counterpart, the Hazardous Sites Cleanup Act (“HSCA”), 35 Pa. Stat. Ann. § 6020.101 et seq. The litigation arises from the contamination of the Malvern TCE Superfund Site in Malvern, Pennsylvania (the “Site”). Chemclene Corporation (“Chemclene”) processed and stored industrial solvents and other waste at the Site from approximately 1952 to 1992. By 1983, the Site was on the federal Environmental Protection Agency’s (“EPA”) National Priorities List. The EPA began considering the Site under the Superfund remedial program in 1993. In 1996, the EPA contacted all parties in the current suit to inform them that they were potentially responsible parties (“PRPs”) under § 107(a) of CERCLA. In 1999, plaintiffs, members of the Chemclene Site Defense Group (“CSDG”), entered a consent decree with the EPA and the Pennsylvania Department of Environmental Protection (“DEP”) in which the CSDG promised to undertake the remediation of the Site. CERCLA allows PRPs that settle their liability with the EPA and incur response costs to collect money from other PRPs by bringing suit for contribution of amounts in excess of the plaintiff PRPs’ fair share of cleanup costs. See CERCLA § 113, 42 U.S.C. § 9613. In 2002, the CSDG brought this contribution suit against seventy-four defendants. Only Simon Wrecking, Simon Resources, and Mid-State Trading (collectively, “the Simon Entities”) remained active defendants by the time of trial. All other active parties have been dismissed or have settled with the plaintiffs. What remains before me is the contribution action between the CSDG and the Simon Entities. I held a bench trial of-the action from January 4th through the 20th, 2006. Now, after considering the testimony and arguments at trial, the numerous exhibits of the parties, and their extensive post-trial submissions, I find Simon Wrecking liable to the CSDG for contribution as a transporter of hazardous waste to the Site under 42 U.S.C. § 9613(f) and § 9607(a). I also find Simon Resources, but not Mid-State trading, liable as a successor to Simon Wrecking under the de facto merger exception as detailed in United States v. General Battery Corp., 423 F.3d 294, 305 (3d Cir.2005). After finding Simon Wrecking and Simon Resources hable, I determine the allocable response costs incurred by the CSDG in remediating the Site. First, the Simon Entities question whether all expenses submitted by the CSDG were incurred pursuant to the National Contingency Plan (“NCP”), as required by CERCLA § 107(a)(4)(B). I find that they are consistent with the NCP, with the exception of costs spent on identifying and investigating other PRPs. Therefore I find that the CSDG has spent $4,224,701 in allocable past costs. Next, both parties introduced estimates and expert testimony regarding the future costs that the CSDG will incur cleaning up the Site pursuant to the consent decree. The consent decree requires the CSDG to implement the remedies that the EPA approved in its Record of Decision (“ROD”) regarding the Site. The relevant part of the Site consists of two areas, the main plant area (“MPA”) and the former disposal area (“FDA”). The ROD specifies a different remedy for each area of the site. The Simon Entities argue that I have, the power to choose whether to base my cost estimates on the ROD-specified remedies, or on the cheaper bioremediation alternative it proposes to the expensive MPA groundwater remedy specified in the ROD. I base my estimate of future costs on the ROD-mandated remedies, and find the CSDG’s estimates most credible. Therefore, I find that the CSDG’s future allocable costs at the Site are $17,872,964. Finally, I find that the CSDG is liable to the EPA for an estimated $1,000,000 in oversight costs, which are also allocable in this contribution suit. The total response costs at the Site to be allocated in this suit are the sum of these three amounts: $4,224,701 4- $17,872,964 + $1,000,000 = $23,097,665. After finding Simon Wrecking liable and ascertaining the total response costs, I allocate those costs among the PRPs. CERCLA empowers the trial court to allocate response costs, using such “equitable factors as it deems appropriate.” 42 U.S.C. § 9613(f)(1). The parties devoted much of the trial and their briefs to arguing how costs should be allocated among the parties should the Simon Entities be found liable. After considering the evidence and arguments presented to me, I account for the shares of settled PRPs using the pro tanto approach, subtracting the amounts of earlier settlements from the total costs to be allocated between the CSDG and the Simon Entities. The amount the CSDG will receive from its settlement with Chemclene is still unknown, so I use the variable X to denote it. The total amount of settlements the CSDG has received is ($6,630,670 + X), and therefore the remaining costs to be allocated are $23,097,665 — ($6,630,670 + X) = ($16,466,995 — X). I decide to allocate the orphan share proportionally between the CSDG and the Simon Entities based on their relative shares of waste. I determine the relative shares of the CSDG and the Simon Entities based on the documented deliveries of waste and then discount Simon’s share by 10% to account for uncertainty over whether Simon Wrecking always had substantial input in choosing the Site. This analysis yields relative shares of 93.75% for the CSDG and 6.25% for Simon Wrecking. I reject the CSDG’s arguments for a recalcitrance penalty, but do apply an uncertainty premium of 50% to Simon’s share, which raises it to 9.38%. Therefore Simon Wrecking’s share of the total response costs incurred by the CSDG is 9.38% x ($16,466,-995 — X). I do not award prejudgment interest. I enter an interlocutory order finding Simon Wrecking and Simon Resources jointly and severally liable to the CSDG using this formula, and schedule a hearing on the value of X. After hearing, I will issue a final order for a sum certain according to the formula. In accordance with Federal Rule of Civil Procedure 52(a), I now make and enter the following Findings of Fact and Conclusions of Law, beginning with the parties’ stipulations narrowing the scope of trial. TRIAL STIPULATIONS I accept the following stipulations of the parties submitted January 11, 2006: 1. The Site, located in East Whiteland Township, Pennsylvania, is a “facility” as that term is defined in 42 U.S.C. § 9601(9). 2. The Site is a “site” as defined in section 103 of the HSCA, 35 P.S. § 6020.103. 3. “Hazardous substances” as defined in section 101(14) of CERCLA, 42 U.S.C. § 9601(14), were disposed of, placed on or otherwise became located at the Site. 4. There have been “releases,” as that term is defined in section 101(22) of CERCLA, 42 U.S.C. § 9601(22), or threatened releases of hazardous substances into the environment at or from the Site. 5. There have been “releases” or “substantial threats of releases” of “hazardous substances” and “contaminants” into the environment at or from the Stie, as those terms are defined in sections 101(22), 103 and 501(a) of HSCA, 35 P.S. §§ 6020.101(22), 6020.103 and 6020.501(a). 6. The release or releases have caused the incurrence of “response” costs at the Site, as that term is defined in 42 U.S.C. § 9601(25). 7. The definition of “person” under 42 USC § 9601 and 35 P.S. § 6020.103 includes a corporation. 8. Simon Wrecking Co., Inc., Simon Resources, Inc., and Mid-State Trading Co., Inc. are all corporations. 9. Simon Wrecking Co., Inc., Simon Resources, Inc., and Mid-State Trading Co., Inc. are all persons as that term is defined under both 42 U.S.C. § 9601 and 35 P.S. § 6020.103. FINDINGS OF FACT The Chemclene Site and Its Operations 1. The Malvern TCE Superfund Site (the Site) is located in East White-land Township, Pennsylvania at 258 North Phoenixville Pike in Malvern. (Pis.’ Dietz Ex. 1 at ES 1-2; Tr. 1/10/06 at 139 (L. Balderston).) 2. From at least 1974 through August 1993, Chemclene was the owner/operator of the Site, where it received and distilled waste solvents to recover clean solvents. (Pis.’ Dietz Ex. 1, pat ES 1-2; Tr. 1/9/06 at 5 (J. Lupo).) 3. During at least the period 1974 to 1980, the waste solvent was usually brought to Chemclene in 55 gallon metal containers, sometimes referred to as “drums” or “barrels.” (Tr. 1/9/06 at 6 (J. Lupo).) 4. The distillation process took place at the Site. (Tr. 1/9/06 pat 9-10 (J. Lupo).) 5. After distillation, the recovered solvent was drummed or put in tanks for bulk delivery and then delivered off-site to Chemclene customers. (Tr. 1/9/06 at 10 (J. Lupo).) 6. Some of the drums of waste solvent that Chemclene accepted contained waste trichloroethylene, sometimes referred to as “TCE,” “trico” or “tri” by Chemclene personnel. (Tr. 1/9/06 at 6-7 (J. Lupo); Tr. 1/10/06 at 18-19 (G. Dippell); Tr. 1/10/06 at 119-120 (L. Balderston).) 7. Some of the drums of waste solvent Chemclene accepted contained waste 1,1,1 trichloroethane, sometimes referred to as “TCA” or “1,1,1” by Chemclene personnel. (Tr. 1/9/06 at 7 (J. Lupo); Tr. 1/10/06 at 19 (G. Dippell); Tr. 1/10/06 at 20 (L. Balderston).) 8. Some of the drums of waste solvent Chemclene accepted contained waste methylene chloride, sometimes referred to as “M/C” by Chemclene personnel. (Tr. 1/9/06 at 7 (J. Lupo); Tr. 1/10/06 at 19-20 (G. Dippell); Tr. 1/10/06 at 120 (L. Balderston).) 9. During the period of 1974-1980, it was the practice of Chemclene personnel to sign or initial a delivery document presented by the truck driver, typically on the letterhead of the delivering company, for the delivery of waste solvent. (Tr. 1/9/06 at 11-13 (J. Lupo).) 10. It was also the usual practice of Chemclene personnel to prepare a receiving record that recorded the receipt of waste solvent drums that were dropped off. (Tr. 1/9/06 at 11-12 (J. Lupo).) 11. From time to time, Chemclene personnel made a record of the amount of solvent reclaimed from a customer’s waste solvent after distillation at Chemclene. (Tr. 1/10/06 at 24 (G. Dippell).) 12. Chemclene personnel referred to the record of the amount of reclaimed solvent produced from a customer’s waste solvent by the still at Chemclene as “internal paperwork.” (Tr. 1/10/06 at 24-25 (G. Dippell).) 13. Chemclene employee King Graver began working for Chemclene in the middle of 1975. (Tr. 1/10/06 at 94 (K. Graver).) 14. After Henry Lloyd Balderston died in December 1975, King Graver (“Graver”) was responsible for filing and maintaining Chemclene’s records until his son, Lloyd Balderston (“Balderston”), came into the business approximately six months later. (Tr. 1/10/06 at 96 (K. Graver), at 109-10 (L. Balderston).) 15. From 1976 through 1978, Graver or Balderston did the filing of Chemclene’s documents, which were kept at the Chemclene plant or office. (Tr. 1/10/06 at 95-97, 103-04 (K. Graver).) 16. In the 1990s, imresponse to a written request from the EPA, Balderston produced a large number of documents to the EPA. (Tr. 1/10/06 at 111 (L. Balderston).) 17. The documents produced to the EPA in the 1990s consisted of Chemclene’s business records, which it was Chemclene’s practice to maintain in the office at Chemelene’s premises until they were produced to the EPA. (Tr. 1/10/06 at 115 (L. Balderston).) 18. Ray Dovell, the CSDG’s allocation expert, and Mark Stevens, the CSDG’s liaison counsel, reviewed Chemclene’s original business records at the EPA’s offices in 1998 and arranged through EPA to get the records copied and bates-stamped at an offsite vendor. The copies were then sent back to Dovell’s office. (Tr. 1/13/06 at 22-23 (R. Dovell).) 19. In the 2000s, in response to a subpoena served on him in this case, Balderston delivered another large number of documents to his attorney, Paul Boni. (Tr. 1/10/06 at 116 (L. Balderston).) 20. The documents delivered to Paul Boni in the 2000s consisted of Chemclene’s business records, that, until produced, were maintained in its office at the Chemclene premises. (Tr. 1/10/06 at 116 (L. Balderston).) Simon Wrecking’s Involvement with the Site 21. On May 21, 1973, the Pennsylvania Public Utility Commission granted Simon Wrecking authority to operate as a common carrier of spent oil and solvents. (Defs.’ Simon Ex. 1; Tr. 1/19/06 at 32-33 (D. Simon).) 22. Simon Wrecking brought drums of waste solvent to Chemclene for reclamation during the period of 1974 to 1980. (Tr. 1/4/06 at 116, 119-124 (Simon Entities Rule 30(b)(6) Dep.).) 23. Some of the materials that Simon Wrecking transported to Chemclene are reflected on Simon Wrecking receipts and other documents produced by the Simon Entities in response to Plaintiffs’ Request for Production. (Defs.’ Resp. # 4B to Pis.’ First Interrogs., at 3 of Tab C in Simon Entities’ Rule 30(b)(6) deposition binder.) 24. The materials that Simon Wrecking transported to Chemclene included trichloroethylene (TCE), 1-1-1 trichloroethane (TCA) and methylene chloride, as well as unspecified waste solvent. (Simon Entities’ Rule 30(b)(6) Dep. Ex. 19; Pis.’ Mullin Ex. 3.) 25. Chemclene personnel do not recall or did not know the identity of the originator of the waste solvent dropped off at Chemclene by Simon Wrecking. (Tr. 1/9/06 at 14 (J. Lupo).) 26. In contrast, Chemclene personnel were aware of the identity of the originators of waste solvent dropped off at Chemclene by other transporting firms, namely, RTS, Eldredge and Keystone Block. (Tr. 1/9/06 at 14-15 (J. Lupo).) 27. Chemclene had a different relationship with Simon Wrecking than with these other transporting firms, which only brought waste to Chemclene at the direction of the generators of the waste. (Tr. 1/9/06 (J. Lupo).) 28. Letterkenny Army Depot (“Letterkenny”) was a customer of Simon Wrecking. (Tr. 1/4/06 at 123 (Simon Entities); Pis.’ Stevens Ex. 22.) 29. As far as the Chemclene employees can recall today, Letterkenny was not a customer of Chemclene. (Tr. 1/9/06 at 29 (J. Lupo); 1/10/06 at 54 (G. Dippell); at 104 (K. Graver); at ISO-ST (L. Balderston).) 30. Supelco Company (“Supelco”) was a customer of Simon Wrecking. (Tr. 1/4/06 at 121 (Simon Entities); Simon Entities Rule 30(b)(6) Dep. at 81-82, Ex. 18 at 2.) 31. As far as the Chemclene employees can recall today, Supelco was not a customer of Chemclene. (Tr. 1/9/06 at 30 (J. Lupo); 1/10/06 at 54 (G. Dippell); at 104 (K. Graver); at 137 (L. Balderston).) 32. Adrian Reeder worked as a contracting officer for the federal government at Letterkenny in Chambers-burg, Pennsylvania for over 20 years, until 1982 or 1983. (Tr. 1/17/06 at 6 (A. Reeder).) 33. Reeder was in charge of supervising the soliciting of proposals from contractors for the purchase of goods and services throughout Letterkenny. After getting a proposal, Reeder would execute a contract, usually based on the low bid. (Tr. 1/17/06 at 7 (A. Reeder).) 34. On some days Reeder signed over 100 purchase orders. (Tr. 1/17/06 at 14 (A. Reeder).) 35.’ On November 18, 1975, Reeder signed a purchase order for the removal of various 55 gallon drums of waste from Letterkenny. (Tr. 1/17/06 at 8 (A. Reeder); Pis.’ Reeder Ex. 1.) 36. Reeder did not tell Simon Wrecking where to take the waste that was the subject of the November 18, 1975 purchase order. (Tr. 1/17/06 at 11 (A. Reeder).) 37. During the time that Reeder worked at Letterkenny, it was the policy of Letterkenny not to tell a transporter where to take waste, unless that information was in the contract between Letterkenny and the transporter. (Tr. 1/17/06 at 9-10 (A. Reeder).) 38. Defendants’ Reeder Exhibit 2 is a Straight Bill of Lading from Letterkenny dated September 23, 1976, which consigned materials carried by Simon Wrecking to Chemclene in Malvern, PA. It is signed by Hugh A. Weisman for E.F. Witt, whom Reeder identified as Chief of the Depot Facilities Division at Letterkenney. (Tr. 1/17/06 at 19-20 (A. Reeder); Defs.’ Reeder Ex. 2.) 39. The second page of the November 18, 1975 purchase order signed by Reeder contains a paragraph requiring a “certificate from the contractor that the materials collected will be disposed of or reprocessed for reuse in accordance with all state and federal environmental protection agency laws and regulations.” (Pis.’ Reeder Ex. 1 at 2.) 40. Balderston wrote Sam Simon, president of Simon Wrecking, a letter on Chemclene letterhead dated December 1, 1978, stating: With reference to your government contract no. DAAG34-79-1015, this is to certify that the used “trico” or trichlorethylene received from you will be reprocessed for reuse in accordance with all applicable local, state and federal regulations. (Pis.’ Balderston Ex. 5.) This is the form of certificate required by the November 19, 1975 purchase order, and it references a government contract purchase number from Letterkenny. (Tr. 1/17/06 at 24 (A. Reeder).) 41. The documented waste deliveries that Simon Wrecking made to Chemclene, all during the period of 1974 to 1978, are summarized in the following chart: 42. Simon Wrecking’s adjusted drum count is 878.86. 43. The CSDG’s adjusted drum count is 13,190.51. (Pis.’ Dovell Ex. 2, 8.) 44. The sum of the CSDG’s and Simon Wrecking’s adjusted drum counts is 14,069.37 drums of waste. The CSDG’s share accounts for 93.75 % of that amount, and Simon Wrecking’s share accounts for 6.25 %. Remediation of the Site 45. The EPA listed the Site on the National Priorities List in 1983. (Tr. 1/5/06 at 7 (L. Dietz).) 46. The EPA Office of Superfund Programs took over remediation of the Site from the Pennsylvania DEP in November 1993, under CERCLA. (Pis.’ Dietz Ex. 1 at ES2-3.) 47. A contractor for the EPA conducted a “remedial investigation” of soil, ground water and surface water at the Site to determine the extent of contamination, and prepared a “remedial investigation report” dated January 1997. (Tr. 1/5/06 at 7-8 (L. Dietz).) 48. Part of the Site is known as the “former disposal area” (“FDA”), and another part of the Site is known as the “main plant area” (“MPA”). (Tr. 1/5/06 at 8 (L. Dietz).) 49. Chemclene distilled waste solvents at the MPA. (Tr. 1/5/06 at 10-11 (L. Dietz); Tr. 1/9/06 at 9-10 (J. Lupo).) 50. The remedial investigation revealed that hazardous substances, including trichloroethylene (“TCE”) and 1,1,1 trichloroethane (“TCA”), were present at the MPA portion of the Site, in both the soil and the groundwater. (Tr. 1/5/06 at 12-14 (L. Dietz); Tr. 1/11/06 at 28 (C. Young).) 51. The remedial investigation revealed that hazardous substances, including TCE and TCA, were present at the FDA portion of the Site, in both the soil and the groundwater. (Tr. 1/5/06 at 12-14 (L. Dietz).) 52. In November 1997, the EPA issued its Superfund Program Record of Decision (“1997 ROD”) evaluating and selecting remedial actions for the Site. (Pis.’ Dietz Ex. 3.) 53. The 1997 ROD lists “Chemicals of Potential Concern for Human Health Evaluation” at the Site, including TCE and TCA. (Tr. 1/5/06 at 16-17 (L. Dietz); Pis.’ Dietz Ex. 3, Table 7.) 54. The 1997 ROD had five selected remedy components. (Tr. 1/5/06 at 17-18 (L. Dietz); Pis.’ Dietz Ex. 3 at 52-64.) 55. The first component of the 1997 ROD remedy was to provide an alternative water supply to address contaminated ground water at the Hillbrook Circle area, a residential development, as well as for some other homes adjacent to the Site. (Tr. 1/5/06 at 18-19 (L. Dietz); Pis.’ Dietz Ex. 3 at 54-56.) 56. The second component was an engineered “cap” for the MPA soils, designed to reduce the infiltration of any surface water such as rain and snow to the ground water. (Tr. 1/5/06 at 20 (L. Dietz); Pis.’ Dietz Ex. 3 at 54-56.) 57. The third component of the 1997 ROD was a system for ground water collection, treatment and discharge, commonly known as “pump and treat,” of the MPA ground water. Monitoring wells are also a component of this remedy. (Tr. 1/5/06 at 20-21; Pis.’ Ex. Dietz 3 at 56-60.) 58. The “pumping” part of “pump and treat” includes pumping and extraction of groundwater from the subsurface. The “treating” part includes allowing the contaminated water to trickle down a tower known as an air stripper, in which the contaminants are released as a vapor. The contaminants in vapor form are absorbed by carbon in large carbon vessels, which must be replaced or regenerated because the carbon can absorb only a limited amount of contaminants. After being stripped of contaminants, the water is then reinjected into the groundwater, so there is no loss of groundwater to the system. (Tr. 1/11/06 at 21-25 (C. Young).) 59. The “remedy drivers,” i.e., the predominant contaminants of the MPA groundwater, are TCE and TCA. (Tr. 1/11/06 at 28-29 (C. Young).) 60. The fourth component of the 1997 ROD was excavation of contaminated soil at the FDA and off-site treatment and disposal of the soil, also known as “soil removal.” (Tr. 1/5/06 at 21 (L. Dietz); Pis.’ Dietz Ex. 3 at 60-61.) 61. The fifth component of the 1997 ROD was monitored natural attenuation (“MNA”) for the contaminated groundwater at the FDA, which means monitoring the groundwater as it continues to purify itself. (Tr. 1/5/06 at 21 (L. Dietz); Pis.’ Dietz Ex. 3 at 62-63.) 62. On June 17,1999, the CSDG signed a consent decree (the “Consent Decree”) with the EPA, requiring it to perform the remedy selected by the EPA and set forth in the ROD. By signing the Consent Decree, the CSDG agreed to do the work necessary to hire the contractors and consultants, and to oversee and manage the cleanup of the Site. (Tr. 1/4/06 at 154-57 (S. Zelov); Pis.’ Zelov Ex. 1; Tr. 1/5/06 at 22 (L. Dietz).) 63. At the time the Consent Decree was signed, the members of the CSDG were the 24 “Settling Performing Defendants” listed on Appendix B-l to the Consent Decree. NW Controls is no longer a member of the CSDG, while Tyco Corporation has joined the CSDG since the signing of the Consent Decree. (Tr. 1/4/06 at 159-161; Pis.’ Zelov Ex. 2.) 64. The CSDG hired de maximis, inc. to be the “supervising contractor” as required by the Consent Decree. Chris Young (‘Young”) of de maximis, inc. is the project coordinator for the CSDG. (Tr. 1/4/06 at 166-67 (S. Zelov); Tr. 1/11/06 at 8 (C. Young); Pis.’ Zelov Ex. 1 at 19.) 65. De maximis Inc.’s work at the Site requires it to interact with the EPA’s remedial project manager. The EPA’s remedial project managers for the Site since the Consent Decree was signed have been Linda Dietz (“Dietz”), James Harper and Charlie Root. (Tr. 1/11/06 at 12 (C. Young).) 66. The CSDG performed the water connections required by the ROD in the Hillbrook Circle neighborhood to the satisfaction of the EPA. (Tr. 1/4/06 at 169 (S. Zelov); Tr. 1/5/06 at 28-29 (L. Dietz).) 67. The CSDG, through its contractor, Golder Associates (“Golder”), performed a Pre-Design Investigation (“PDI”) at the Site and submitted the PDI report to EPA. The PDI revealed that the contamination at the FDA was more extensive than was found at the time of the Remedial Investigation. (Tr. 1/4/06 at 168, 170 (S. Zelov); Tr. 1/5/06 at 24-25 (L. Dietz); Tr. 1/11/06 at 9, 131 (C. Young); Pis.’ Dietz Ex. 4.) 68. The PDI Report was approved by the EPA. (Tr. 1/11/06 at 123 (C. Young); Pis.’ Dietz Ex. 4.) 69. Because of the new information about contamination levels found during the PDI, the CSDG commissioned its contractor Golder to perform a Focused Feasibility Study of alternatives other than soil excavation at the FDA. (Tr. 1/5/06 at 25-26 (L. Dietz); Pis.’ Dietz Ex. 5.) 70. Golder performed a pilot test of Soil Vapor Extraction (“SVE”) of the FDA soils as part of the Focused Feasibility Study. SVE is an in situ remedy in which wells in the soil extract vapors coming off the contaminants subsurface, instead of excavating the soils. (Tr. 1/5/06 at 26-27 (L. Dietz); Tr. 1/11/06 at 9 (C. Young).) 71. Following the CSDG’s pilot test of SVE for the FDA soils remedy, the CSDG petitioned the EPA for an amendment to the ROD with respect to that remedy. (Tr. 1/5/06 at 26-28 (L. Dietz).) 72. In September 2004, the EPA proposed an amendment to the 1997 ROD to change the EPA’s selected remedy for the FDA soils from excavation to an in-situ SVE system. The proposed amendment was approved by the EPA in March 2005. (Tr. 1/5/06 at 27-28 (L. Dietz); Pis.’ Dietz Ex. 6 at 3.) 73. The CSDG hired O’Brien & Gere as its contractor to construct the remedy. (Tr. 1/4/06 at 171 (S. Zelov); Tr. 1/11/06 at 9 (C. Young).) 74. The CSDG is performing the FDA soils remedy required by the amended ROD, SVE, to the satisfaction of the EPA. Remedial design of the SVE is complete, and construction of the remedy is nearly completed. Long-term operation and maintenance of the FDA soils component is yet to be performed. (Tr. 1/5/06 at 29 (L. Dietz).) 75. The CSDG is performing the FDA groundwater remedy required by the ROD, MNA, to the satisfaction of EPA. Remedial design for the FDA groundwater component of the remedy is complete and the monitoring wells for this component are in place. Long-term operation and maintenance of the FDA groundwater component of the remedy has yet to be performed. (Tr. 1/5/06 at 29 (L. Dietz).) 76. The CSDG is performing the MPA soils remedy required by the ROD, capping, to the satisfaction of the EPA. Remedial design for the MPA soils component of the remedy is complete, and construction of this component is nearly complete. Long-term operation and maintenance of the component has yet to be performed. (Tr. 1/5/06 at 29-32 (L. Dietz).) 77. In the summer of 2005, drums were found at the MPA that were so old, corroded, and deteriorated that the EPA could not determine their age. In response, the CSDG extended the area of the cap at the MPA to cover the area where the drums were found. (Tr. 1/5/06 at 31 (L. Dietz).) 78. The MPA groundwater component of the remedy, “pump and treat,” has not been designed yet. (Tr. 1/5/06 at 32 (L. Dietz).) 79. The EPA has consented to all the work performed at the Site and has never objected to any of the work performed at the Site by the CSDG. (Tr. 1/5/06 at 22, 28-29 (L. Dietz); Tr. 1/11/06 at 132 (C. Young).) 80. Bioremediation is not part of the remedy selected for the MPA groundwater. (Tr. 1/5/06 at 33 (L. Dietz).) 81. On behalf of the CSDG, Young asked the EPA to consider bioremediation as a viable alternative to “pump and treat” to clean up the MPA groundwater. Under Young’s direction, Golder Associates conducted a pilot study of bioremediation at the site, and submitted a bioremediation pilot test report to James Harper of the EPA in February 2005. (Tr. 1/11/06 at 31-35 (C. Young); Pis.’ Young Ex. 1.) 82. In a letter dated August 22, 2005, Linda Dietz of the EPA told Young that bioremediation could not replace “pump and treat” as the remedy for the MPA groundwater. (Tr. 1/5/06 at 35 (L. Dietz); 1/11/06 at 49 (C. Young); Pis.’ Dietz Ex. 7.) 83. The CSDG, through O’Brien & Gere, commissioned a microcosm study of an alternative bioremediation treatment, which has not been pilot tested yet. (Tr. 1/11/06 at 66-70 (C. Young).) 84. Young wrote to Dietz in October 2005 about further exploration of bioremediation at the site, but the CSDG has not petitioned the EPA to use bioremediation as an enhancement to the “pump and treat” remedy for the MPA groundwater. The EPA has made no decision on whether it might adopt bioremediation as an enhancement to the “pump and treat” remedy. (Tr. 1/5/06 at 35-40 (L. Dietz); Pis.’ Dietz Ex. 7, 8.) 85. The EPA prepared a five-year review of the Site dated September 2005. As part of the five-year review, the EPA has asked the CSDG to perform a vapor intrusion study at the Site, and to do an analysis to see if 1,4 dioxane is detected in the ground water at the Site. The CSDG is complying with those requests. (Tr. 1/5/06 at 41-45 (L. Dietz); Pis.’ Dietz Ex. 9,10.) 86. Any work the CSDG does regarding potential vapor intrusion or 1,4 dioxane contamination at the Site is in addition to the remedial action work required by the ROD. (Tr. 1/5/06 at 42, 45 (L. Dietz).) 87. As part of the five-year review, the EPA has also asked the CSDG to evaluate the impacts that pumping water from a nearby quarry has on ground water at the site and to do modeling to determine the effect on MPA groundwater if the quarry were to stop pumping. (Tr. 1/5/06 at 45 (L. Dietz); Tr. 1/11/06 at 65-66 (C. Young); Pis.’ Dietz Ex. 9 at 13.) 88. In letters dated August 22, 2005, and November 2, 2005, Dietz told Young that the MPA groundwater remedy will likely include contamination in the area of well CC-3 because higher than historical levels of TCE were found in water samples from the well. (Tr. 1/11/06 at 86-91 (C. Young); Pis.’ Dietz Ex. 7,10.) 89. The November 2, 2005 letter also asked the CSDG to include all the five-year review items in a work plan to be submitted to the EPA on the remedial design of the MPA ground water remedy. The CSDG, through its contractor O’Brien & Gere, submitted such a plan to the EPA shortly before the end of 2005. (Tr. 1/5/06 at 48-49 (L. Dietz); Pis.’ Dietz Ex. 10 at 1-2, 11.) 90. The “Main Plant Area Ground Water Investigation Work Plan” includes plans to monitor and remediate 1,4 dioxane and soil vapor intrusion at the Site, as well as additional wells to delineate the contaminant plume, the costs of which are still uncertain. (Tr. 1/11/06 at 82-84, 104-05; Pis.’ Young Ex. 6.) 91. Regardless of whether bioremediation becomes part of the MPA groundwater remedy, additional groundwater characterization studies will continue through the first quarter of 2007. (Tr. 1/11/06 at 112 (C. Young).) 92. The final design report for the MPA groundwater remedy will probably not be complete until at least the first quarter of 2008. Construction of the MPA groundwater remedy will probably not begin until the second or third quarter of 2008. (Tr. 1/11/06 at 119 (C. Young).) Costs Already Incurred 93. Young, the project coordinator, reviews bills from de maximis and the remediation contractors and makes recommendations to the CSDG’s finance committee regarding payment. He oversees the work reflected in those bills, which are for work performed in the investigation and remediation of the Site. (Tr. 1/11/06 at 10-13 (C. Young).) 94. The CSDG finance committee, chaired by Scott Zelov, meets monthly, reviews all invoices submitted to the CSDG, and recommends to the group those invoices that have been approved for payment. It also maintains the cash flow records of the grouat (Tr. 1/4/06 at 161-62 (S. Zelov).) 95. All of the costs billed to the CSDG that Chris Young reviewed and submitted were for work performed in the investigation and cleanup of the Site. (Tr. 1/11/06 at 13 (C. Young).) 96. As of the start of trial, the CSDG had incurred legal fees in this action of almost $1.4 million, including fees to pursue litigation against PRPs at the Site who had or have not yet settled. 97. The payments made by the CSDG to remediate the Site through November 30, 2005 were presented by Zelov in Plaintiffs’ Zelov Exhibits 3 and 4. Through November 30, 2005, the CSDG had spent the following amounts: Supporting Description_Amount Documentation/Evidence a de maximis, inc., supervising contractor_$ 547,872 Pis.’ Zelov Ex. 4 b Golder Associates, contractor $1,469,074 Pis.’ Zelov Ex. 4 e Philadelphia Suburban Water Company, for connecting $ 350,150 Pis.’ Zelov Ex. 3 Hillbrook circle neighborhood to public water supply_ d ERM, for connecting the Hillbrook Circle neighborhood $ 360,612 Pis.’ Zelov Ex. 3 to a public water supply e Connecting an additional property to a public water $ 3,295 Pis.’ Zelov Ex. 3 supply _ f East Whiteland Township, for resurfacing the road after $ 19,663 Pis.’ Zelov Ex. 3 construction of the water line g O’Brien & Gere, contractor constructing the remedy at $1,401,882 Pis.’ Zelov Ex. 4 the site h Reimbursement of Commonwealth of Pennsylvania’s $ 60,461 Pis.’ Zelov Ex. 4 response costs i Nihill & Riedley, for investigative forensic accounting in 1998 and 1999 (Not recoverable as a response cost. ) ($ 9,616) Pis.’ Zelov Ex. 4 j National Fraud Center, for identifying and investigating potential PRPs and their financial condition (Not recoverable as a response cost.) ($ 35,749) Pis.’ Zelov Ex. 4 k Shaw Environmental, for a study of the potential effectiveness of accelerated bioremediation $ 11,692 Pis.’ Zelov Ex. 4 1 Total allocable past response costs $4,224,701 98. Through November 30, 2005 the CSDG had spent at least $4,224,701 in allocable response costs. 99. The O’Brien & Gere bid for construction of certain components of the remedy was approximately $1.98 million, but the cost of that work is now projected to be about $2.3 million. (Pis.’ Ex. Smith 1 at 6 and Ex. C; Tr. 1/11/06 at 167-68 (C. Young).) Future Costs of Site Remediation 100. At trial, both sides presented expert witnesses to give opinion testimony regarding the cost of remediating the Site. Plaintiffs presented Jeffrey Smith (“Smith”), a registered professional geologist with Langan Engineering and Environmental Services, and defendants presented David R. Perry (“Perry”), a registered professional geologist with American Geosciences, Inc. 101. Both Smith and Perry are qualified to give opinion testimony regarding the cost to remediate Superfund sites. 102. I find Smith’s testimony to be a more credible assessment of future costs at the Site, because of his greater experience and because his cost estimates are largely based on the actual O’Brien & Gere competitive bid for the contracting work. I therefore adopt his cost estimates as expressed in his cost tables at Exhibit C to Plaintiffs’ Smith Exhibit 1, and summarized in the following chart. Perry’s estimates from Defendants’ Perry Exhibit 4 are presented for comparison purposes: Court Estimate Remedial Component_(based on Smith) Perry Estimate a Soil Vapor Extraction (SVE) of the FDA soil_$ 2,822,970_$ 2,785,265_ b Monitored Natural Attenuation (MNA) of the FDA $ 1,176,510 $ 1,110,000 groundwater_ c Capping of the MPA soil_._$ 1,147,356_$ 1,305,444 d Costs for PCB soil excavation and disposal, non-demolition $ 438,684 included elsewhere debris removal, and other_ e “Pump and Treat” system for MPA groundwater $12,425,081 $ 6,015,751 (for the ROD remedy) f Monitored Natural Attenuation of MPA Groundwater $ 1,176,509 not included g Total cost of remedy $19,274,846 $11,216,450 h Total future cost of remedy, with amount already paid $17,872,964 to O’Brien & Gere for construction of the remedy subtracted 103. The “pump and treat” estimate I adopt from Smith’s report is higher than the estimate in the ROD because the extent and magnitude of the contamination found during the Pre-Design Investigation was higher than that found in the Remedial Investigation, requiring additional wells, additional piping from the wells to the treatment area, and higher operation and maintenance costs. (Tr. 1/6/06 at 44-45 (J. Smith).) 104. The potential additional costs for vapor intrusion and/or 1,4 dioxane remediation are not included among the contingencies outlined in Smith’s cost estimate. (Tr. 1/5/06 at 105 (J. Smith).) 105. Leo Mullin (“Mullin”) is an Environmental Protection Specialist with EPA Region 3. Mullin has served as cost recovery expert for the Site since 1998. (Tr. 1/6/06 at 36, 39 (L. Mullin).) 106. EPA Region 3 tracks oversight costs at Superfund sites, which are costs the EPA incurs in overseeing the work performed by private parties at a site. (Tr. 1/6/06 at 83, 85-86 (L. Mullin).) 107. In each of the next three years, because of construction of the remedy, the EPA’s oversight costs are likely to be approximately $250,000 at the Site. After three years, the EPA’s oversight costs at the Site could go down to $20,000 to $50,000 a year. (Tr. 1/6/06 at 87 (L. Mullin).) 108. On a present value basis, because the remedy could take 30 years to complete, EPA oversight costs at the Site are likely to be in the neighborhood of $1 million. (Tr. 1/6/06 at 87-88 (L. Mullin).) 109. The Consent Decree requires the CSDG to reimburse the EPA for oversight costs at the Site “if the decision in United States v. Rohm & Haas Co., [2 F.3d 1265 (3d Cir. 1993) ] regarding the liability of responsible parties under Section 107(a)(4)(A) of CERCLA for EPA oversight costs is reversed or overturned by the Court of Appeals for the Third Circuit, the United States Supreme Court, or the United States Congress.” (Pis.’ Zelov Ex. 1, pp. 64-65.) The Third Circuit explicitly overturned Rohm & Haas shortly before trial of this case, in United States v. E.I. Dupont De Nemours, 432 F.3d 161 (3d Cir.2005). Total Site Costs 110.I find that the total site costs are as follows: a Cost of the ROD-specified remedies for the four areas, not counting amounts $17,872,964 already paid to O’Brien & Gere for partial construction of the remedy. b Costs to remediate the site already incurred by the CSDG $ 4,224,701 c EPA Oversight Costs $ 1,000,000 d Total estimated site costs (a + b + c) $23,097,665 The Simon Entities’ Cooperation With EPA and the CSDG 111. The EPA prepared a Volumetric Ranking Summary (‘VRS”) for the Site, totaling the volume of material attributed to specific parties related to the Site. (Tr. 1/6/06 at 39-40 (L. Mullin); Pis.’ Mullin Ex. 1.) 112. The EPA also prepared a Comprehensive Transaction Report (“CTR”) allowing EPA and all interested parties to focus on specific entities and to look at the dates and volumes of each specific transaction. (Tr. 1/6/06 at 42 (L. Mullin); Pis.’ Mullin Ex. 2.) 113. The VRS and CTR were based on primary source documents produced to the EPA by Chemclene, and provided to the various PRPs. (Tr. 1/6/06 at 43-45 (L. Mullin).) 114. The EPA reached a settlement with certain de minimis PRPs at the Site in 1998 or 1999. This first round de minimis settlement charged settling parties an amount using the VRS and the cost estimates in the ROD, and adding a 50% premium to adjust for potential cost overruns, to cover potential shortfalls from PRPs who became defunct or otherwise unable to pay, and to provide a final and expeditious settlement to de minimis PRPs. Over 160 PRPs accepted the EPA’s first round de minimis settlement offer. (Tr. 1/6/06 at 46-47 (L. Mullin).) 115. The EPA made a second round de minimis settlement in 2001 at the request of certain PRPs. The premium for the second round settlement was 50% plus an additional 10% for those parties who were offered but had declined to participate in the first round settlement. Nine parties accepted the second round de minimis settlement offer. (Tr. 1/6/06 at 51-55 (L. Mullin); Pis.’ Mullin Ex. 11.) 116. The third round de minimis settlement offer was made after the Complaint in this action was filed. Over fifty parties accepted the third round de minimis settlement offer, with a premium of 125% for parties for whom the third round offer was the initial offer, and 225% for those parties who were offered but declined to participate in an earlier settlement. (Tr. 1/6/06 at 53-56 (L. Mullin); Pis.’ Mullin Ex. 12.) 117. The premiums charged by the EPA in its de minimis settlements at the Site were consistent with the EPA policy of using a tiered approach to settlements, designed to settle parties quickly, minimize costs, and discourage parties from profiting by delaying settlement. (Tr. 1/6/06 at 61 (L. Muffin).) 118. The EPA counted 289 viable PRPs at the Site, 288 of which have either settled with the EPA or have term sheets to settle with EPA. Simon Wrecking is the only viable PRP that has not settled its liability with the United States. (Tr. 1/6/06 at 65-66 (L. Muffin).) 119. The Simon Entities have been signatories to numerous other Consent Decrees and EPA Administrative Orders by Consent regarding other Superfund Sites. The Simon Entities have paid money pursuant to these agreements. (Defs/ Muffin Ex. 1-9; Tr. 1/19/06 at 46 (D. Simon).) 120. The Simon Entities filed an insurance coverage action against their insurance companies to obtain environmental coverage for their potential liability at fifteen (15) Superfund sites other than the Site (“First Coverage Action”). (Tr. 1/19/06 at 121-125 (D. Simon).) 121. The First Coverage Action was settled and the Simon Entities formed a trust for the purpose of applying the settlement proceeds toward resolution of the fifteen specific covered sites that formed the basis of the First Coverage Action (the “Trust”). (Tr. 1/19/06 at 127-28, 137, 141 (D. Simon).) 122. David Simon and Joseph Simon are eo-Trustees of the Trust, and neither has ever received compensation as co-Trustee. (Tr. 1/19/06 at 5, 9, 118-19, 121 (D. Simon).) 123. The Site was not a subject of the First Coverage Action and is not one of the 15 covered sites for which a separate sub-trust of the Trust was established. David Simon determined in his capacity as co-Trustee that the Trust could not be used to pay for any costs arising out of the Site. (Tr. 1/19/06 at 10, 14, 137-38, 142 (D. Simon); Defs.’ Simon Ex. 1.) 124. On or about November 14, 1996, the EPA sent a “General Notice Letter” and a “Special Notice Letter” to Simon Wrecking c/o Simon Resources and several other PRPs, requesting payment or submission of a good faith offer to do the work at the Site. (Tr. 1/6/06 at 71-72 (L. Muffin); Pis.’ Muffin Ex. 3, 4, 6-9.) 125. The Simon Entities instituted an insurance coverage action to obtain coverage for the Site (the “Malvern Coverage Action”). The Simon Entities had insurance coverage during the relevant time period and brought the Malvern Coverage Action in an attempt to receive insurance coverage to go toward remediation of the Site. (Tr. 1/19/06 at 50-51 (D. Simon).) 126. David Simon met with Mullin at the EPA on several occasions without counsel, beginning several years ago, and provided him with a substantial amount of documentation. (Tr. 1/19/06 at 96-97 (D. Simon); Tr. 1/6/06 at 112-13 (L. Muffin); Tr. 1/10/06 at 25 (L. Mullin).) 127. Simon brought Muffin the Trust Agreement for his review, which Muffin reviewed and questioned him about. Simon did not show Mullin the schedule of funds, and did not leave the Trust Agreement with Mullin because of his concern about the confidentiality of provisions of the underlying insurance settlements and his concern about being sued by the insurers. (Tr. 1/19/06 at 96-98 (D. Simon); Tr. 1/20/06 at 27-29 (L. Mullin).) 128. Under the EPA’s “ability to pay” policy, the EPA is willing to reduce the amount of its claim against a party to an amount that will prevent an undue financial hardship to the party. This policy requires EPA review of certain financial information. (Tr. 1/6/06 at 74 (Mullin).) 129. Mullin participated in telephone conversations with David Simon about Simon Wrecking’s liability as a PRP for a period of a year. (Tr. 1/6/06 at 112-13 (L. Mullin).) 130. Simon provided documents to Mullin at his request, of which Mullin retained copies. Simon provided Mullin with 25 years’ worth of tax returns for Simon Wrecking. (Tr. 1/20/06 at 32, 36 (L. Muhin).) 131. David Simon also had meetings with Joan Johnson and Robert LeFevre of EPA to discuss settlement or participation in the cleanup of the Site. (Tr. 1/20/06 at 40 (L. Mullin).) 132. Since 1997, 90% to 95% of the parties requesting an “ability to pay” settlement in EPA’s Region 3 have not reached one because the parties do not want to comply with the financial disclosure requirements. (Tr. 1/6/06 at 76 (L. Mullin).) 133. Simon Wrecking did not provide sufficient documentation to determine whether Simon Wrecking was eligible for an “ability to pay” settlement with respect to the Site. (Tr. 1/6/06 at 77,114 (L. Mullin).) 134. On December 4, 1998, the EPA sent a 104(e) information request letter to Samuel Simon, President of Simon Wrecking, c/o Simon Resources, requesting information about the Trust and affiliated companies. Simon Wrecking did not provide the EPA with the information requested in the 1998 104(e) information request letter. (Tr. 1/4/06 at 115 (Simon Entities).) 135. In October 2005 the EPA sent another 104(e) information request letter to Samuel Simon, requesting information about trust agreements and insurance settlements. Simon Resources did not provide the EPA with any of the information requested by the 2005 104(e) request letter until after the Simon Entities were ordered by the Court at trial in this matter to produce the trust agreement to plaintiffs on January 18, 2006. (Tr. 1/6/06 at 89-91 (L. Mullin); Tr. 1/19/06 at 92-96 (D. Simon); Pis.’ Mullin Ex. 16.) 136. David Simon, who has assisted his father Samuel Simon with environmental matters on behalf of the Simon entities for 20 years, authorized Simon Wrecking’s joinder in the Malvern Site Study Group, the predecessor to the CSDG. (Tr. 1/19/06 at 47, 68 (D. Simon).) 137. On July 7, 1997, Simon Wrecking forwarded a check for $750 to the Malvern Site Study Group and enclosed a signed agreement to participate in the Group. (Pis.’ Stevens Ex. 2; Tr. 1/9/06 at 22 (M. Stevens); Tr. 1/19/06 at 47-48 (D. Simon).) 138. By letter of January 28, 1998, Simon Wrecking paid a second $750 assessment for its share of expenses of the Malvern Site Study Group. (Pis.’ Stevens Ex. 3; Tr. 1/9/06 at 24 (M. Stevens); Tr. 1/19/06 at 48-49 (D. Simon).) 139. On July 9,1998, Jim Morris, attorney for the CSDG, forwarded to Simon Wrecking and others a copy of a Potential Responsible Parties (“PRP”) Agreement for execution. The PRP Agreement provided for cooperation of PRPs in remedial activities at the Site. (Pis.’ Stevens Ex. 10.) 140. Simon Wrecking’s representative executed this Agreement on July 23, 1998 and forwarded a copy of the execution page to Stevens for the CSDG. (Pis.’ Stevens Ex. 11.) 141. After execution of the signature page, Simon Wrecking was a PRP group member. (Tr. 1/12/06 at 35 (M. Stevens).) 142. In August and September 1998 the CSDG — which included Simon Wrecking and other companies— made good faith offers to conduct or finance appropriate remedial action at the Site. (Pis.’ Stevens Ex. 6,13.) 143. In an August 17, 1998 memo from Stevens, an assessment was made of PRP Group members, charging $5,500.00 to members of the former Malvern Site Study Group, which included Simon Wrecking. (Pis.’ Stevens Ex. 20.) 144. Before October 7, 1998, Stevens had a telephone conversation with Steven Yermish (“Yermish”) of Caplan & Luber, LLP, Simon Wrecking’s counsel at that time. During that conversation, Stevens asked Yermish when Simon Wrecking would pay its initial assessment, but Yermish could not tell Stevens when that would happen. (Tr. 1/9/06 at 53; Tr. 1/12/06 at 84 (M. Stevens).) 145. Before October 7, 1998, the CSDG met and decided that Simon Wrecking was no longer part of the CSDG, because it had not paid its initial assessment and could not tell Stevens when it would pay its initial assessment. (Tr. 1/9/06 at 52-53; at 178-79 (M. Stevens).) 146. On October 7, 1998, Stevens, as acting CSDG liaison counsel, wrote a letter to Simon Wrecking’s counsel explaining that Simon Wrecking had been removed from the group for not paying its initial assessment, but leaving open the possibility that it could be an additional member subject to the approval of the CSDG members. (Tr. 1/9/06 at 54-58 (M. Stevens); Pis.’ Stevens Ex. 18.) 147. By letter of October 21, 1998, Yermish enclosed Simon Wrecking’s check in the amount of $5,500.00 for the initial assessment of shared costs, but Stevens returned the check. (Pis.’ Stevens Ex. 19, 23.) 148. By letter of October 30, 1998, Stevens requested that Simon Wrecking provide the CSDG with corporate and financial information about the company before accepting it as a member. Simon Wrecking never provided the CSDG with the requested information. (Tr. 1/9/06 at 70 (M. Stevens); Tr. 1/12/06 at 103-108 (M. Stevens); Pis.’ Stevens Ex. 20.) 149. The CSDG continued to negotiate with the EPA and eventually signed a Consent Decree with the EPA with respect to the Site on June 17, 1999. Simon Wrecking neither signed that Consent Decree nor a separate consent decree with respect to the Site. (Tr. 1/9/06 at 78 (M. Stevens); Pis.’ Zelov Ex. 1.) 150. On April 12, 2001, Stevens, acting as CSDG liaison counsel, wrote letters to Steven Yermish and Sharon Morgan, counsel for Simon Wrecking, as well as to Samuel Simon, President of Simon Resources, demanding that Simon Wrecking pay $7,997,102.65 to settle the CSDG’s claim against Simon Wrecking with respect to the Site. (Tr. 1/9/06 at 79-82 (M. Stevens); Pis.’ Stevens Ex. 24, 25, 26.) 151. After receipt of the April 2001 letter, counsel for Simon Wrecking met with Stevens on several occasions to try to reach an “ability to pay” settlement, but could not obtain assurances of confidentiality of any financial information provided to the CSDG, and therefore did not provide the information the CSDG requested. (Pis.’ Stevens Ex. 24; Tr. 1/9/06 at 85-86 (M. Stevens); Tr. 1/12/06 at 59-60 (M. Stevens).) Allocation 152. The CSDG has collected or can expect to collect the following funds from settling PRPs, with “add backs” noted for defaulting parties or parties who have joined the CSDG: a EPA de minimis funding Tr. 1/13/06 at 57-58 (R. Dovell); Pis.’ $2,676,894 Dovell Ex. 3 b CSDG cash out settlements and settle- Tr. 1/13/06 at 58-59 (R. Dovell); Pis.’ $3,386,439 ments -with the U.S. Army, NIH etc. Dovell Ex. 3 c smaller settlements and funds from Tr. 1/13/06 at 61-62 (R. Dovell); Tr. $ 128,564 cash-out parties 1/17/06 at 76-79 (R. Dovell); Pis.’ Dovell _ExG3_ d Settlements with Quaker City, Inc., Tr. 1/13/06 at 62 (R. Dovell); Pis.’ Dovell $ 981,861 Ametek, Inc., and McClarin Plastics, Ex. 3 Inc. on the eve of trial e Amounts cash out parties must pay if Tr. 1/13/06 at 63-64 (R. Dovell); Tr. $ 107,711 clean up of the MPA exceeds 1/17/06 at 75-76 (R. Dovell); Pis.’ Dovell $14,925,000 Exs. 3, 7 f Chemclene settlement Settlement agreement of October 5, 2005 X (contingent between Chemclene and CSDG and unknown) g Defaulted settlement obligations of Tr. 1/13/06 at 65 (R. Dovell); Pis.’ Dovell ($ 92,028) Prineo Instruments and Kosempel Ex. 3 h Ametek’s unpaid share of EPA de Tr. 1/13/06 at 65-66 (R. Dovell); Pis.’ ($ 178,787) minimis funding; eventual settlement Dovell Ex. 3 counted separately i AMP’s unpaid share of de minimis funding; AMP later became a CSDG member Tr. 1/13/06 at 66 (R. Dovell); Pis.’ Dovell ($ 264,984) Ex. 3 j Tyco’s partial settlement payment; Tyco became a CSDG member and its share is now accounted for in CSDG drum count Tr. 1/13/06 at 66-68 (R. Dovell); Pis.’ ($ 115,000) Dovell Ex. 2, 3 k Total amount received or expected by CSDG from other PRPs $6,630,670 + X (X represents the amount of the Chemclene settlement) 153. Plaintiffs’ allocation expert Ray Dovell (“Dovell”) is a Certified Public Accountant (CPA) and has been a forensic accountant since 1987. He has expertise in forensic accounting and is qualified to testify regarding forensic accounting issues. (Tr. 1/13/06 at 24-25 (R. Dovell).) 154. Defendants’ allocation expert Christopher Wittenbrink (“Wittenbrink”) is a biologist who since 1989 has worked as an allocation consultant for environmental remediation projects. He has expertise in CERCLA allocations and is qualified to testify regarding allocation. (Defs.’ Wittenbrink Ex. 1 App. A.) 155. Dovell calculated the relative volumetric shares of the CSDG and Simon Wrecking, ignoring the volumetric shares of other PRPs who have settled or have been dismissed. He then subtracted the amount of settlement money received by the CSDG from other parties and split the remaining costs between the CSDG and Simon Wrecking according to their relative volumetric shares. (Pis.’ Dovell Ex. 2.) 156. Wittenbrink calculated the volumetric shares of the CSDG and Simon Wrecking out of the total number of drums documented at ■ the site. He also calculated the volumetric shares of other groups of settled PRPs. (Defs.’ Wittenbrink Ex. 3 at 3.) 157. Wittenbrink objected to Dovell’s inter-class allocation share between waste generators and transporters, which he argued unfairly increased Simon Wrecking’s share, his failure to account for the shares of settled parties in the allocation, his failure to address the issue of orphan shares, the owner-operator share, and its reliance on the VRS. (Defs.’ Wittenbrink Ex. 2.) 158. Because I adopt the pro tanto method of accounting for the CSDG’s settlements with other PRPs in my conclusions of law, I use Dovell’s approach to calculate Simon Wrecking’s volumetric share, taking into account Wittenbrink’s objections to its methodology to arrive at slightly different numbers, as summarized in the following chart: Item Dovell’s Calculation Court’s Finding a Simon Wrecking’s adjusted drum count 1,136.01 878.86 b CSDG’s adjusted drum count 13,190.51 13,190.51 c Total adjusted drum count of CSDG and 14,326.52 14,069.37 Simon Wrecking combined d Simon Wrecking’s volumetric share of the 7.93% 6.25% combined drum count in (c) e CSDG’s volumetric share of the combined 92.07% 93.75% drum count in (c) f Total estimated site costs $23,631,953 $23,097,665 g Settlements received or expected by the $6,630,670 $6,630,670 + X CSDG h Total site costs after settlements are $17,001,283 $16,466,995 — -X subtracted i CSDG’s share of total estimated site costs 92.07% of $17,001,283 = $15,653,081 93.75% of ($16,-less settlements 466,995 — X) j Simon Wrecking’s share of total 7.93% of $17,001,283 = $1,348,201 6.25% of estimated site costs less settlements ($16,466,995 — X) 159. Because the remedy will take many years to implement, the conditions at the Site are changing, and the EPA is already requiring the CSDG to expend resources investigating and possibly remediating contamination that was not addressed in the 1997 ROD (e.g., vapor intrusion and 1,4 dioxane contamination), the actual amount the CSDG will have to spend at the Site is uncertain. 160. An uncertainty premium of 50% on Simon Wrecking’s share is the value of 50% x [6.25% x ($16,-466.995 — X)] or 3.13% x ($16,-466.995 — X). The combined value of Simon Wrecking’s adjusted share plus the premium is (6.25% + 3.13%) x ($16,466,995 — X), which simplifies to 9.38% x ($16,-466.995 — X). Successor Liability of Simon Resources and Midr-State Trading 161. In Simon Resources et al. v. Simon Holdings Inc. et al., Civ. No. 86-02288 (Lycoming Cty. Court of Common Pleas), Simon Resources asserted that it acquired the common stock and physical assets of Simon Wrecking in or about 1979 and continued to operate Simon Wrecking’s scrap metal business at least through 1992. (Aug. 21, 1992 letter from Richard L. Ca-plan, Esq. to Hon. Kenneth D. Brown re: Simon Resources et al. v. Simon Holdings Inc. et al., Civ. No. 86-02288 (Lycoming Cty. Court of Common Pleas) (Lycoming Litigation Binder Tab 4).) 162. At or about the time Simon Resources was formed, Simon Wrecking ceased its scrap metal business, transferred all its physical assets other than two parcels of land to Simon Resources, and became an inactive corporation. Simon Resources, as Simon Wrecking’s successor, continued to operate the identical scrap metal business from the identical location using Simon Wrecking’s former plant and equipment. (Tab 3 at 3, Lycoming Litigation Binder (“Memorandum of Law in Support of Plaintiffs’ Motion for Partial Summary Judgment”.)) 163. Simon Wrecking’s business operations and assets were merged into Simon Resources in 1981. (Tab 8 at 3, Lycoming Litigation Binder (“Plaintiffs’ Pretrial Memorandum”).) 164. In a schedule to its 1981 corporate tax return, Simon Resources reported to the Internal Revenue Services that Simon Wrecking, as a wholly owned subsidiary, had been merged into Simon Resources on January 1, 1981, in a tax-free merger pursuant to § 368 of the Internal Revenue Tax Code. Samuel Simon verified these facts in a verification submitted to the Common Pleas Court of Lycoming County, Pennsylvania. Samuel Simon was the vice president of Simon Resources and on the board of directors of Simon Resources at the time of the filing of the 1981 corporate tax return. (Tr. 1/19/06 at 53-60 (D. Simon); Tab 3 at 4, Lycoming Litigation Binder (“Memorandum of Law in Support of Plaintiffs’ Motion for Partial Summary Judgment”); Tab 2, ¶ 13 (“Motion for Partial Summary Judgment”) and Ex. 2 (at 204a), Lycoming Litigation Binder.) 165. In its Amendment to Plaintiffs’ Amended Complaint in the Lycoming County litigation, Simon Resources asserted that in 1980, Simon Wrecking became a wholly owned subsidiary of Simon Resources; that in 1981, Simon Resources took over the operation of the business of Simon Wrecking and continued it; that Simon Resources retained the same employees, production facilities, equipment, location, customers, assets, management, and ownership of Simon Wrecking; that subsequent to 1981, Simon Wrecking remained in existence only as a corporate shell wholly owned by Simon Resources; and that by virtue of the de facto merger of Simon Wrecking into Simon Resources, Simon Resources became liable for the environmental liabilities of Simon Wrecking. (Tab 5, Lycoming Litigation Binder (“Amendment to Plaintiffs’ Amended Complaint”).) 166. Simon Wrecking cannot be formally dissolved as a corporation because of the outstanding contingent environmental liabilities asserted against it and the environmental lawsuits naming it as a defendant. (Tab 8 at 6 n. 1, Lycoming Litigation Binder (“Plaintiffs’ Pretrial Memorandum”).) 167. The Lycoming Court of Common Pleas did not rule on the issue of whether Simon Wrecking merged into Simon Resources or whether Simon Resources was a successor to Simon Wrecking. (Lycoming Litigation Binder, Ex. 9.) 168. At trial, David Simon testified that waste transportation assets of Simon Wrecking, along with its PUC authority, were transferred to Mid-State Trading in 1981 and 1982. (Tr. 1/19/06 at 38-39.) 169. David Simon was an officer of Mid-State Trading, but was neither an officer nor employee of Simon Wrecking or Simon Resources at the time of the transfer of assets. (Tr. 1/12/06 at 140-48.) Therefore I find his testimony less probative than the litigation papers authorized by Samuel Simon, officer of Simon Resources. 170. David Simon testified that two employees of Simon Wrecking who were drivers in the waste transportation part of the business became employees of Mid-State Trading, where they continued to work as drivers. (Tr. 1/19/06 at 35-36 (D. Simon).) 171. David Simon testified that two employees of Simon Wrecking in the scrap metal operation eventually became employees of Simon Resources and continued work in the scrap metal business. (Tr. 1/19/06 at 36 (D. Simon).) 172. David Simon testified that Simon Resources did not engage in the waste hauling business and did not hold a Public Utilities Commission (“PUC”) license nor did it receive the waste transportation assets of Simon Wrecking. (Tr. 1/19/06 at 43^4 (D. Simon).) 173. Samuel Simon is the president of Simon Resources and its only officer, director and shareholder. (Tr. 1/19/06 at 80 (D. Simon).) 174. Samuel Simon is the sole officer and director of Mid-State Trading. Mid-State Trading is wholly owned by Simon Resources. (Tr. 1/19/06 at 79 (D. Simon).) 175. Simon Wrecking has been an inactive corporation since the early 1980s. Samuel Simon is listed as president and the only officer and director. Simon Resources owns 100% of the shares of Simon Wrecking. (Tr. 1/19/06 at 74-77, 79-80) (D. Simon); (Pis.’ Simon Ex. 5, 6.) 176.Simon Resources, Simon Wrecking and Mid-State Trading all share the same principal location: 2525 Trenton Avenue, Williams-port, Pennsylvania. (Tr. 1/19/06 at 75-78 (D. Simon); Tab 1, Lycoming Litigation Binder (“Amended Complaint”).) CONCLUSIONS OF LAW I. The CSDG’s Right to Bring a CERCLA § 113 Suit Against the Simon Entit