Full opinion text
AMENDED FINDINGS OF FACT AND CONCLUSIONS OF LAW CONSUELO B. MARSHALL, District Judge. The matter before the Court, the Honorable Consuelo B. Marshall, United States District Judge presiding, is the bench trial held on Plaintiff and Counter-defendant United Alloys, Ine.’s (“United Alloys”) claims for cost recovery and declaratory relief against Defendant and Counter-claimant Flask Chemical Corporation (“Flask”), and Flask’s counterclaims for contribution against United Alloys, due to the contamination at United Alloys’ property located at 900 East Slauson Avenue in Los Angeles, California. Upon consideration of the testimony and evidence received, and the Court’s evaluation of the demeanor and credibility of the witnesses, the Court makes the following findings of fact and conclusions of law pursuant to Federal Rule of Civil Procedure 52(a). JURISDICTION The Court has jurisdiction pursuant to 28 U.S.C. §§ 1331 and 1367, and 42 U.S.C. §§ 9607 and 9613(b). FINDINGS OF FACT A. PROCEDURAL POSTURE OF THIS ACTION 1. On August 6, 1993, United Alloys filed the Complaint in this action pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (“CERCLA”), 42 U.S.C. § 9601 et seq., the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901 et seq., and other state laws. (Final Pretrial Conference Order at ¶ 40.) 2. On October 20, 1993, Flask answered the Complaint and filed counterclaims for contribution and declaratory relief pursuant to 42 U.S.C. § 9613 and equitable indemnity and negligence against United Alloys. (Id. at 141.) 3. In 1994, Flask filed bankruptcy. (Id. at ¶ 43.) In 1995, in order to lift the mandatory litigation stay imposed by Flask’s bankruptcy, United Alloys and the bankruptcy trustee stipulated that United Alloys would release Flask from liability if United Alloys stipulated that it would limit any recovery to what might be obtained from claims against Flask’s insurance carriers, Fireman’s Fund Insurance Company (“Fireman’s Fund”) and Chubb Insurance Company (“Chubb”). (Id. at ¶ 44.) 4. On January 13, 1997, the Court approved the settlements of Siskin Investment Company (“Siskin”), Harold A. Baker (“Baker”), and Harold A. Baker Metal Supply Company, Inc. (Id. at ¶ 46.) These settlements totaled $290,000. (Flask Chemical Corp.’s Posh-Trial Findings of Fact and Conclusions of Law at 50 [Doc. No. 301].) As part of the Order Confirming Good Faith Settlement, United Alloys was ordered to place all settlement proceeds in a separate, segregated account for the purpose of funding environmental remediation at the Property. (Final Pretrial Conference Order at ¶ 47.) 5. United Alloys filed a Second Amended Complaint on June 2, 1998, in which it named Southern Pacific Transportation Company as a defendant in the action. [Doc. No. 105.] • 6. On April 11, 2001, United Alloys filed its Third Amended Complaint, in which it named BNSF Railway Company (“BNSF”) as a defendant. [Doc. No. 125.] The Third Amended Complaint also named Union Pacific Railroad Company (“Union Pacific”) as a defendant, and alleged that Union Pacific is the successor-in-interest to SPTC. [Doc. No. 125.] 7. On March 26, 2010, the Court dismissed United Alloys’ claim for relief under the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901 et seq., for lack of subject matter jurisdiction. [Doc. No. 255.] 8. The parties stipulated that United Alloys entered a settlement with BNSF and Union Pacific (collectively, “the Railroads”) in the amount of $50,000 and a settlement with Chubb in the amount of $300,000. (4/21/102 Trial Tr. at 35.) 9. United Alloys thereafter voluntarily dismissed its state common law causes of action, with the exception of its Carpenter-Presley-Tanner Hazardous Substance Account Act claim. [Doc. No. 262.] Flask also voluntarily dismissed its claims for equitable indemnity and negligence. [Doc. No. 261.] 10. At trial, the parties sought a judicial determination as to the extent and scope of the parties’ liability for and contribution to contamination at United Alloys’ property located at 900 East Slauson Avenue, Los Angeles, California. Thus, the Court must determine the liability of each party with respect to the contamination, the appropriate allocation of past costs incurred by United Alloys for site investigation and characterization, and whether declaratory relief is appropriate. 11. In the Final Pretrial Conference Order, the parties stipulated to sixty-three (63) facts, all of which are incorporated into the Court’s Findings of Fact and Conclusions of Law. [Doc. No. 291.] 12. The Court heard live testimony from three lay witnesses and three expert witnesses. Mr. Timothy Wood (“Wood”), who testified as an expert witness on behalf of United Alloys, rendered opinions regarding the source and nature of the contamination at the Property, the impact of the contamination on soil and groundwater beneath the Property, the need for remediation, and the proper apportionment of liability. Mr. Ulf Lindmark (“Lindmark”), an expert witness on behalf of Flask, testified as to the source and extent of subsurface contamination of volatile organic compounds (“VOCs”). Mr. James T. Wells (“Wells”), who also testified as an expert witness on behalf of Flask, served as a rebuttal expert witness to Wood. The Court also received into evidence the deposition testimony of three lay witnesses and hundreds of exhibits. B. BACKGROUND OF THE OWNERSHIP OF THE PROPERTY 13. The dispute concerns real property located at 900 East Slauson Avenue, Los Angeles, California (“the Property”). (Final Pretrial Conference Order at ¶ 1. ) The Property is three hundred sixty-seven (367) feet long and two hundred (200) feet wide. (Id. at ¶ 2.) A building (“the Main Building”) occupies approximately half of the Property, which is located in a heavy industrial and commercial manufacturing area. (Exs. 205, 406.) 14. The Property was owned by Goodyear Tire and Rubber from 1920 to 1928. (Final Pretrial Conference Order at ¶ 1.) 15. In 1924, the Atchison Topeka and Santa Fe Railway Company and the Pacific Electric Railway Company entered into a contract for industry track enabling them to operate in what became the railroad right-of-way on the southern border of the Property. (Id. at ¶ 3.) The railroad right-of-way was a forty-six (46) foot wide easement, half of which occupied the southernmost twenty-three (23) feet of the Property. (Id. at ¶ 4.) 16. The Property was owned by several different investment companies, including Siskin, from 1929 to 1970. (Id. at ¶ 5.) 17. Reese Chemical Company (“Reese”) began leasing and operating a chemical distribution facility at the Property in 1969. (Id. at ¶ 6.) 18. Baker purchased the Property from Siskin in 1970. (Id. at ¶ 7.) 19. In November 1972, Flask assumed Reese’s lease and operated a chemical distribution facility at the Property until January 1979. (Id. at ¶ 8; Ex. 418.) By January 1979, Flask had ceased operations at the Property. (Final Pretrial Conference Order at ¶ 21.) 20. On January 3, 1979, Baker sold the Property to United Alloys. (Id. at ¶ 20; 4/20/10 Trial Tr. (Donn, R.) at 38; Ex. 420.) 21. In 1995, the Railroads and/or their corporate successors-in-interest filed a Certificate of Abandonment for the tracks in the railroad right-of-way. (Final Pretrial Conference Order at ¶45.) Since that time, United Alloys has maintained an exclusive possessory right in the former railroad right-of-way. (Id.) 22. In 2002, United Alloys was purchased by Cronimet Corporation (“Cronimet”) along with all of the equipment on the Property owned by United Alloys. (Id. at ¶ 50.) United Alloys continues to own the Property but leases it to Cronimet. (Id. at ¶ 51, 62; 4/20/10 Trial Tr. (Donn, R.) at 35, 38.) The business has remained essentially the same, but the name was changed to United Alloys and Metals, Inc. (Final Pretrial Conference Order at ¶ 52.) United Alloys and Metals, Inc. continues to operate at the Property. (Id. at 161.) C. FLASK’S OPERATIONS AT THE PROPERTY: 1972 TO 1979 23. During its operations from 1972 to 1979, Flask conducted chemical storage, processing, sales, and distribution at the Property. (Id. at ¶¶ 8, 9.) Beginning in 1972, Robert Heisler (“Heisler”) served as Flask’s operations manager. (Id. at ¶ 15.) 24. The Main Building, which was used as a warehouse and operations building, was situated on the eastern half of the Property during Flask’s tenancy. (Exs. 310, 445.) 25. In the northwestern area of the Property, Flask used a ten-thousand (10.000) gallon gasoline tank. (Ex. 310.) 26. In the southwestern area of the Property, Flask used four (4) above-ground storage tanks (“AST(s)”) to store chlorinated solvents, including perchlorethylene (“PCE”) and trichloroethene (“TCE”). (Final Pretrial Conference Order at ¶ 10; Exs. 310, 445.) Three (3) of these ASTs held twenty thousand (20.000) gallons and one (1) AST held ten thousand (10,000) gallons. (Final Pretrial Conference Order at ¶ 10; Ex. 310.) 27. The ASTs were situated on concrete pads, and surrounded by gravel and a retaining wall. (4/23/10 Trial Tr. (Wood, T.) at 160.) The concrete pad served as a support structure for the ASTs, the gravel allowed for infiltration of spills, and the retaining wall enabled spills to be restricted to a predetermined area. (Id. at 160-61.) 28. To the north of the AST area, Flask used eighteen (18), five thousand (5.000) gallon underground storage tanks (“UST(s)”) to store flammable material including alcohol, acetone, naptha, and methyl ethyl ketone. (Final Pretrial Conference Order at ¶ 11; Deposition of Robert Heisler (“Heisler Dep.”) at 23; Ex. 310.) The UST area of the Property was approximately two thousand four hundred seventy-five (2,475) square feet. (Final Pretrial Conference Order at ¶ 12.) 29. The ASTs and the USTs were separated by a concrete apron, approximately thirty-five (35) feet long. (Id. at ¶ 13.) The concrete apron contained a two thousand (2,000) gallon blending tank, a filling machine for small containers, pumps, a scale, and a conveyor. (Id. at ¶ 14; 4/23/10 Trial Tr. (Wells, J.) at 25; Ex. 310.) 30. There was also a clarifier located in the area between the ASTs and the USTs. (Final Pretrial Conference Order at ¶ 22; 4/22/10 Trial Tr. (Lindmark, U.) at 113.) The clarifier is a multi-compartment concrete structure designed to separate oil from water. (4/22/10 Trial Tr. (Lindmark, U.) at 22-23.) It served as a treatment method for wastewater. (Id. at 23.) Flask used the clarifier for a neutralization system for acids that were discharged into the sewer, not for chlorinated solvents. (4/23/10 Trial Tr. (Lind-mark, U.) at 84.) 31. Flask mixed, blended, and containerized chlorinated solvents in the areas between the ASTs and USTs and north of the USTs. (4/22/10 Trial Tr. (Lind-mark, U.) at 113; 4/23/10 Trial Tr. (Wells, J.) at 14-15, 23-24; Ex. 310.) At this location, it also used pumps to fill the tanks or tanker trucks that arrived with deliveries. (4/22/10 Trial Tr. (Lind-mark, U.) at 113; 4/23/10 Trial Tr. (Wells, J.) at 14-15, 23-24; Ex. 310.) 32. On the southern border of the Property, Flask received chemical and solvent shipments from railcars via the railroad spur. (Final Pretrial Conference Order at ¶ 16; Exs. 310, 445.) Railcars delivered chlorinated solvents, such as PCE, TCE, and methylene chloride. (Heisler Dep. at 25, 60, 65-66, 71-74.) The metal rails were situated on railroad ties. (Id. at 54-55.) Dirt covered the area under and around the metal rails. (Id. at 55.) 33. Flask’s employees were responsible for offloading chemicals from the rail-cars on the railroad spur and transporting the chemicals onto the Property. (Final Pretrial Conference Order at ¶ 18; Heisler Dep. at 22.) Neither Heisler nor other Flask employees had specific instructions, knowledge, or training as to how to unload the chemicals from these railcars. (Heisler Dep. at 104-05.) 34. Flask’s employees were also responsible for unloading chemical and solvent shipments delivered to the Property by tanker trucks. (Final Pretrial Conference Order at ¶ 16; Heisler Dep. at 22-23.) Occasionally, chemicals were put into drums directly from the trucks because Flask did not have sufficient storage to accommodate the deliveries. (Heisler Dep. at 23; Ex. 445.) The drums were stored along the western side of the Main Building. (Ex. 445.) 35. During Flask’s operations on the Property, there were accidental spills. (Final Pretrial Conference Order at ¶ 17.) 36. Specifically, there were four accidental spills of chemicals delivered to the Property by railcars. (Id. at ¶ 19; Heisler Dep. at 60, 65-66, 71-74.) In the first incident, approximately two (2) to five (5) gallons of PCE spilled when Flask’s employees tried to open the rail-car to transfer the PCE onto the Property. (Heisler Dep. at 60.) In two (2) other incidents, Flask’s employees caused approximately five (5) to ten (10) gallons of PCE to be spilled during the disconnection of a hose attached between a pump and the railcar. (Id. at 65- 66, 73-74.) In the final incident, Flask employees caused approximately five (5) to ten (10) gallons of methylene chloride to be spilled while disconnecting the hose attached between a pump and the railcar. (Id. at 71-73.) During these incidents, the chemicals spilled onto unpaved ground and Flask made no effort to clean up the spills. (Id. at 63, 66- 67, 72.) These incidents were also not reported to any agency or entity. (Id. at 63, 67, 73-74.) 37. There were also chlorinated solvent spills during the period in which Flask employees were learning how to transfer chemicals from the tanker trucks to Flask’s chemical containers. (Id. at 59-60.) 38. On other occasions, forklifts punctured drums of chemicals causing spills of approximately twenty (20) gallons of chemicals on each occasion inside of the facility. (Id. at 56-57.) 39. Finally, on another occasion, a vandal opened the valves on an AST containing PCE that resulted in a spill of five hundred (500) gallons. (Id. at 79-80.) 40. By January 1979, Flask had ceased operations at the Property. (Final Pretrial Conference Order at ¶ 21.) In or around January 1979, it removed the ASTs from the Property and took them to its next place of business. (Id. at ¶ 25.) D. UNITED ALLOYS OPERATIONS AT THE PROPERTY: 1979 TO PRESENT 41. On January 3, 1979, Baker sold the Property to United Alloys. (Id. at 1120; 4/20/10 Trial Tr. (Donn, R.) at 38; Ex. 420.) In 1980, United Alloys was owned by Mr. Ron Donn (“Donn”), Mr. Allan Sacks, and Mr. Arthur Sacks. (Final Pretrial Conference Order at ¶ 27; 4/20/10 Trial Tr. (Donn, R.) at 55.) 42. United Alloys used the Property for a scrap metal recycling and refurbishing business. (Final Pretrial Conference Order at ¶ 26.) Site activities included receiving, sorting, stripping, crushing, processing, and re-selling high-grade alloy metals, such as zirconium, nickel, titanium, cobalt, and copper. (Exs. 207, 671 .) 43. At the time of the sale of the Property from Baker to United Alloys, the Property consisted of the Main Building and a work yard (“the Yard”) occupying the western half of the Property. (Final Pretrial Conference Order at ¶ 24.) 44. There was also one clarifier, which was located in the southern portion of the Property between the AST area and UST area. (Id. at ¶ 22; Ex. 312.) The southern clarifier is connected to the sewer main running under the former railroad right-of-way. (Final Pretrial Conference Order at 123.) 45. Following United Alloys’ purchase of the Property, United Alloys made numerous changes to the Property, including the removal, in 1980, of the eighteen (18) USTs used by Flask during its tenancy. (Id. at 1128; 6/2/10 Trial Tr. (Wood, T.) at 6; Ex. 410.) During the excavation of the USTs, there were no indications of soil saturation or vapors emanating from the soil. (Deposition of Darron H. Evans (“Evans Dep.”) at 27-28, 30, 46.) However, the native soil was not tested for the presence or absence of contaminants. (Id. at 42; 4/22/10 Trial Tr. (Lindmark, U.) at 142; 6/2/10 Trial Tr. (Lindmark, U.) at 171.) Likewise, the import fill did not emit any strange odors but no samples were taken of the import soil used in connection with the soil excavation. (Evans Dep. at 36-37; 4/23/10 Trial Tr. (Wells, J.) at 38; 6/2/10 Trial Tr. (Lindmark, U.) at 171-72.) 46. In 1980, a degreasing system was installed inside of the Main Building. (Final Pretrial Conference Order at ¶ 29; Ex. 312.) A one thousand (1,000) gallon PCE storage tank was connected to the degreasing system. (Final Pretrial Conference Order at ¶ 30; Ex. 312.) From 1980 to 1997, PCE was used to clean certain metals and strip off any impurities that had formed on the metal. (Final Pretrial Conference Order at ¶ 31; Exs. 439,671.) There was a spill in the degreasing room. (4/21/102 Trial Tr. (Lindmark, U.) at 48; 4/22/10 Trial Tr. (Lindmark, U.) at 114-15,118.) 47. The purchasing records from 1982 through 1984 demonstrate that United Alloys purchased between two thousand seven hundred (2,700) gallons and approximately seven thousand seven hundred (7,700) gallons of PCE. (6/2/10 Trial Tr. (Wood, T.) at 32; Ex. 438.) United Alloys’ permit with the South Coast Air Quality Management District limited emissions of PCE to eight thousand (8,000) gallons of use per year. (6/2/10 Trial Tr. (Wood, T.) at 32-33.) 48. On April 13, 1984, there was a spill at the Property when a third party attempted to deliver TCE to United Alloys. (4/21/102 Trial Tr. (Lindmark, U.) at 54; Ex. 250.) A 55-gallon drum of TCE spilled into the storm drain catch basin on Slauson Avenue. (4/23/10 Trial Tr. (Wood, T.) at 163-65; Ex. 250.) The catch basin, which was clogged, prevented any waste from reaching the flood control channel. (4/23/10 Trial Tr. (Wood, T.) at 165; Ex. 250.) 49. Until 1990, United Alloys used a ten thousand (10,000) gallon underground tank to store gasoline for its trucks. (Final Pretrial Conference Order at ¶ 32.) The gasoline tank was located in the northern area of the Property, roughly thirty-five (35) feet from the northern property line. {Id. at ¶ 33.) United Alloys removed this gasoline tank in 1990. {Id. at ¶ 34; Ex. 409.) There was no evidence of leakage or spillage during the removal. (Ex. 409.) 50. In 1990, United Alloys installed a clarifier in the northern portion of the Property as part of a storm water system. (Final Pretrial Conference Order at ¶ 35; Ex. 312.) It is located approximately twenty (20) feet from the northern border of the Property. (Final Pretrial Conference Order at ¶ 35.) 51. United Alloys’ operations caused sludge waste to collect in the clarifiers and the degreaser. (Deposition of Arthur Castellanos (“Castellanos Dep.”) at 18-19; 4/23/10 Trial Tr. (Wells, J.) at 68; 6/2/10 Trial Tr. (Wood, T.) at 16.) Sludge is the viscous mixture of grease and PCE, and perhaps even metal filings, left behind due to the cleaning of metal parts, which are often oily or greasy. (4/23/10 Trial Tr. (Wells, J.) at 69; 6/2/10 Trial Tr. (Wood, T.) at 35.) 52. Sludge from the clarifiers and the degreaser was packed into 55-gallon drums and stored on the Property outside of the Main Building, and south of the degreasing room. (Castellanos Dep. at 50-51, Ex. 9.) The sludge was removed, tested, and manifested for offsite disposal every ninety (90) days as required by law. (4/23/10 Trial Tr. (Simpson, T.) at 113-14; 6/2/10 Trial Tr. (Wood, T.) at 16-17.) Laboratory reports from 1991 to 1992 indicated that PCE was found in the clarifiers and the degreaser. (Castellanos Dep. at 12, 16-19, 28, 34, 51-54, 56-57; 4/22/10 Trial Tr. (Lindmark, U.) at 9-18; Exs. 242-47.) 53. United Alloys emitted approximately one hundred eight thousand five hundred twelve (108,512) pounds per year of PCE into the atmosphere through the degreaser. (4/23/10 Trial Tr. (Wells, J.) at 67-68; Ex. 301.) Another four thousand two hundred (4,200) pounds per year of PCE were lost to adsorption onto the metal shavings cleaned through the degreasing process. (4/23/10 Trial Tr. (Wells, J.) at 68-69; Ex. 301.) 54. United Alloys used no more than eight thousand (8,000) gallons of PCE per year until 1997. (Final Pretrial Conference Order at ¶ 31; 4/22/10 Trial Tr. (Wells, J.) at 172-73.) 55. Vapor emissions of PCE from the storage tank, degreaser, and adsorber were approved by the South Coast Air Quality Management District. (4/23/10 Trial Tr. (Wells, J.) at 14; Ex. 439.) E. ENVIRONMENTAL SITE INVESTIGATION AND REGULATORY OVERSIGHT AT THE PROPERTY 56. In 1992, Donn, the then-owner of United Alloys, came to suspect that the Property may be contaminated after attending institute meetings concerning the possible contamination of sites operated by chemical companies. (4/20/10 Trial Tr. (Donn, R.) at 35, 38.) 57. That same year, Green Environmental, Inc. (“Green Environmental”) performed a Phase I site assessment of the Property. (Id. at 40; Final Pretrial Conference Order at ¶ 36; Ex. 406.) Green Environmental’s investigation found PCE and TCE contamination in the soil at multiple locations throughout the Property. (Final Pretrial Conference Order at ¶37; Ex. 406.) Green Environmental identified the onsite handling of metals, the previous onsite storage and control of hydrocarbons, and hazardous material problems in the immediate vicinity as causes for concern. (Ex. 406.) Green Environmental recommended that an additional investigation be conducted at the Property. (Final Pretrial Conference Order at ¶ 38.) 58. The following year, in 1993, Western Environmental Engineering Company (“WEECO”) performed a Phase II investigation at the Property, taking numerous soil samples under the Main Building and in the Yard. (Id. at ¶ 39; 4/20/10 Trial Tr. (Donn, R.) at 41-42; Ex. 407.) WEECO drilled twenty-two (22) exploratory borings to depths between ten (10) and twenty-two (22) feet below ground surface. (Ex. 407.) WEECO concluded that the contamination of PCE and TCE was from a common source. (Id.) WEECO further concluded that there appeared to have been a release of solvents in the southwestern corner of the Property, which served as the AST area and UST area during Flask’s tenancy. (Id.; see Findings of Fact Nos. 26, 28) WEECO recommended that further exploration be performed at the Property through the installation, sampling, and analysis of additional borings. (Ex. 407) 59. Shortly after the WEECO report was published, the fire department was notified of the contamination at the Property. (4/23/10 Trial Tr. (Simpson, T.) at 108,119.) 60. In 1994, AMEC Geomatrix, Inc. (“Geomatrix”) was hired to investigate the vertical and lateral extent of contamination at the Property and whether groundwater had been impacted. (Final Pretrial Conference Order at ¶ 42; 4/20/10 Trial Tr. (Donn, R.) at 43; 4/20/10 Trial Tr. (Simpson, T.) at 155; 4/23/10 Trial Tr. (Simpson, T.) at 107.) Mr. Timothy Simpson (“Simpson”) has been the principal in charge of the United Alloys project since 1994. (4/20/10 Trial Tr. (Simpson, T.) at 155.) 61. Geomatrix conducted additional soil and soil gas sampling and analysis to better understand site conditions and the source of the contamination. (Id. at 156.) 62. On October 1,1999, Geomatrix submitted its Subsurface Assessment Report to the California Regional Water Quality Control Board (“Regional Board”). (Id.; Final Pretrial Conference Order at ¶ 48; Ex. 569.) The report presented the findings from exploratory drilling, soil sampling, soil gas sampling, monitoring well installation, and groundwater sampling. (Ex. 569.) PCE and TCE were detected in soil, soil gas, and groundwater samples. (Id.) 63. As a result of the 1999 report, United Alloys became part of the Regional Board’s Spills, Leaks, Investigations and Cleanups (“SLIC”) Program, wherein the Regional Board appointed a project manager and United Alloys was required to pay oversight fees through a fee-for-service agreement. (4/20/10 Trial Tr. (Donn, R.) at 44-45; 4/20/10 Trial Tr. (Simpson, T.) at 157-58; Exs. 206, 432.) 64. Additional groundwater monitoring wells were installed throughout the Property. (Ex. 203.) Groundwater monitoring wells are necessary for several reasons, such as determining whether: (1) the site is affecting groundwater; (2) there is a regional contamination issue; and (3) certain remedies are effective. (4/22/10 Trial Tr. (Lindmark, U.) at 96-97.) 65. The Regional Board also instructed Geomatrix to install additional soil borings. (Ex. 203.) 66. Geomatrix submitted a 2002 Data Transmittal Summary Assessment Work Plan to the Regional Board which explained that there were significant releases of chlorinated solvents in the southwestern corner of the Property, the location of the ASTs and USTs during Flask’s tenancy. (4/20/10 Trial Tr. (Simpson, T.) at 158-59.) 67. Thereafter, the Regional Board directed Geomatrix to install downgradient wells to the north of the Property. (Id. at 160,163.) The 2004 Offsite Monitoring Well Installation Report described the analysis of offsite monitoring wells installed to delineate the extent of the groundwater plume underneath the Property. (Id. at 159-61; Ex. 575.) 68. The Regional Board required Geo-matrix to collect samples from all monitoring wells and report the results to the Regional Board on a quarterly basis. (4/20/10 Trial Tr. (Simpson, T.) at 160-61.) In the 2005 First Quarter Groundwater Monitoring Report, in particular, Geomatrix found that groundwater moved from south to north, almost perpendicular to Slauson Avenue. (Id. at 162.) It also found that groundwater moved rather slowly and that VOCs in groundwater were moving offsite. (Id.) 69. The Regional Board thereafter required that Geomatrix install upgradient monitoring wells. (Id. at 162-63.) Geo-matrix concluded that the first two up-gradient wells, which were installed in the southern portion on the Property, were too close to the southwestern corner, the location of the ASTs and USTs during Flask’s tenancy. (Id. at 163.) Geomatrix therefore installed an additional upgradient monitoring well on an adjacent landowner’s property. (Id.) The first analysis of samples taken from this monitoring well indicated fairly low concentrations of PCE and TCE. (Id. at 164.) However, Geomatrix collected only one groundwater sample from this monitoring well, on November 15, 2000, because United Alloys lost access to the well due to a dispute with the property owner. (4/21/101 Trial Tr. (Simpson, T.) at 32-33.) There was an increase in both PCE and TCE in a sample collected on December 21, 2009. (Id. at 44-45, 49; Ex. 216.) Thus, the upgradient monitoring well reflected higher concentrations of contamination than the down-gradient monitoring wells that Geomatrix tested at the same depth. (Id. at 46-47.) 70. On June 2, 2005, Geomatrix submitted its Conceptual Remedial Action Work Plan, which addressed groundwater quality and soil remediation, to the Regional Board. (Final Pretrial Conference Order at ¶ 53; Ex. 205.) Site groundwater was predominantly impacted by PCE and TCE with lower concentrations of VOCs also present in groundwater samples collected from onsite monitoring wells. (Ex. 205.) Attenuation of PCE and TCE appeared to be occurring with distance but significant biodegradation of PCE and TCE was not occurring in the groundwater at the Property. (Id.) Geomatrix proposed the use of the bio-augmentation method, which consisted of the addition of a carbon substrate and nutrient amendments, to remediate groundwater containing VOCs after performing a bench-scale study followed by a pilot-scale study. (Id.) 71. With respect to soil remediation, Geomatrix proposed the use of the soil vapor extraction method, the EPA presumptive remedy. (Id.) Soil vapor extraction “is implemented by applying a vacuum using a vacuum blower to extraction wells screened in the vadose (or unsaturated) zone where VOCs are present in soil and soil vapor. The vacuum causes VOCs in soil to be volatilized from soil and the VOC-laden vapor to be drawn to the extraction wells, where the vapors are collected and conveyed to the surface by the vacuum blower. The VOC-laden vapor is then treated to remove the VOCs prior to venting the treated vapor to the atmosphere.” (Id.) 72. The purpose of the Conceptual Remedial Action Plan was to provide an estimate regarding the cleanup of the site, including soil and groundwater remediation, and eliminate a very expensive pump-and-treat system as a potential remedy. (4/20/10 Trial Tr. (Simpson, T.) at 164-65.) The Regional Board suggested that Geomatrix investigate the bio-augmentation approach identified in the Conceptual Remedial Action Plan. (4/21/101 Trial Tr. (Simpson, T.) at 16.) 73. On July 19, 2005, the Regional Board sent a letter to United Alloys stating that it concurred with the Conceptual Remedial Action Work Plan and that a subsequent Remedial Action Plan must be submitted to the Regional Board staff for approval. (Ex. 206.) It also instructed United Alloys to refrain from initiating any field work until the Regional Board approved the complete Remedial Action Plan for the Property. (Id.) 74. On September 20, 2005, Geomatrix sent its Remedial Action Plan (“RAP”) for the Property to the Regional Board. (Final Pretrial Conference Order at ¶ 54; Ex. 207.) The predominant VOCs detected in soil gas, soil, and groundwater samples were PCE and TCE. (Ex. 207.) The RAP proposed a two-fold approach for remediation of VOCs at the Property: (1) removal of source area VOCs from the vadose zone using soil vapor extraction; and (2) degradation of VOC mass in the groundwater using bio-augmentation. (Id.) The RAP also provided that a soil vapor extraction pilot study and bio-augmentation studies were to be conducted at the Property. (Id.) Geomatrix did not include any data from the 1993 report conducted by WEECO because it did not reflect a comprehensive investigation. (4/21/101 Trial Tr. (Simpson, T.) at 25.) Upon request, it disclosed the WEECO data to the requesting public agency, either the Regional Board or the DTSC. (Id. at 25-26.) 75. On August 16, 2006, Geomatrix sent its Responses to Remedial Action Work Plan Review Letter and Site Assessment Work Plan to the Regional Board. (Final Pretrial Conference Order at ¶ 55; Ex. 208.) The letter provided Geomatrix’s responses to the Regional Board staffs comments and questions. (Ex. 208.) Among other things, the Regional Board sought further information regarding soil gas and soil samples, a comprehensive groundwater investigation to determine the extent of the contaminant plume beneath the Property, and additional information regarding the soil vapor extraction pilot study. (Id.) The Regional Board also approved the bio-augmentation pilot study for groundwater beneath the Property. (Id.) 76. On October 19, 2006, regulatory oversight was transferred from the Regional Board to the California Department of Toxic Substance Control (“DTSC”). (Final Pretrial Conference Order at ¶ 56; 4/20/10 Trial Tr. (Krug, R.) at 114.) 77. Robert Krug (“Krug”), a Hazardous Substances Scientist for the DTSC, is the project manager for the Property. (4/20/10 Trial Tr. at (Krug, R.) at 113-14.) 78. The DTSC’s role is to oversee site investigation and remediation. (4/20/10 Trial Tr. at (Krug, R.) at 115, Ex. 671.) The DTSC needed to review previous reports to make an evaluation and determination as to the characterization of the contamination at the Property. (4/20/10 Trial Tr. at (Krug, R.) at 120.) 79. Therefore, Geomatrix resubmitted its prior reports to the DTSC, which were reviewed by Krug. (Id. at 119-20; 4/20/10 Trial Tr. (Simpson, T.) at 168— 69.) 80. In January 2007, United Alloys entered into a Voluntary Cleanup Agreement (“VCA”) with the DTSC. (Final Pretrial Conference Order at ¶ 57; 4/20/10 Trial Tr. at (Krug, R.) at 114; Ex. 671.) The VCA explained that reports indicated that the soil and groundwater at the Property were contaminated with hazardous substances, including PCE and TCE. (Ex. 671.) The VCA set forth the following objectives: (1) United Alloys must implement the RAP under the oversight of the DTSC; (2) the DTSC must determine what additional work, if any, would be required to complete the investigation of the Property; and (3) the DTSC must obtain reimbursement from United Alloys for the DTSC’s oversight costs. (Id.) The VCA further provided that the DTSC shall review and oversee the response activities conducted by United Alloys and all work shall be performed consistent with Health and Safety Code Section 25300 et seq., the National Contingency Plan, the United States Environmental Protection Agency and the DTSC Superfund guidance documents regarding site investigation and remediation. (Id.) 81. Since approximately 2005, United Alloys has also worked with Mr. Ron Hayes from Compliance Administrators and Project Services (“CAPS”), who provides technical guidance and assistance with respect to the site investigation of the Property. (4/20/10 Trial Tr. (Donn, R.) at 50.) 82. On July 6, 2007, Geomatrix sent its Revised Site Assessment Work Plan to the DTSC enumerating the activities proposed in the original Site Assessment Work Plan dated August 16, 2006, and revisions in accordance with comments provided by the DTSC, which were required for approval of the activities proposed in the original Site Assessment Work Plan. (Final Pretrial Conference Order at ¶ 58; Ex. 455.) 88. On September 21, 2007, Alice Campbell (“Campbell”), Senior Engineering Geologist of DTSC, sent a memorandum to Krug regarding the July 6, 2007 Revised Site Assessment Work Plan. (4/20 Trial. Tr. (Donn, R.) at 89-90; Ex. 209.) Campbell concluded that (1) the soil gas, soil matrix, and groundwater data had features indicating at least two different sources of contamination in soil and groundwater; (2) some VOC contamination in groundwater may be part of a larger local or regional plume; and (3) the proposed Work Plan was acceptable provided that Geomatrix respond to the comments addressed in the memorandum. (Ex. 209.) 84. On September 21, 2007, the DTSC approved the Site Assessment Work Plan and provided comments to be addressed prior to the initiation of the soil vapor extraction pilot study. (Ex. 210.) 85. On March 31, 2008, Geomatrix sent its Revised Site Assessment Work Plan to the DTSC. (Final Pretrial Conference Order at ¶ 59; Ex. 456.) The Revised Site Assessment Work Plan was based on the July 6, 2007 Site Assessment Work Plan, which was updated in accordance with the DTSC’s comments and Geomatrix’s responses. (Ex. 456.) 86. On February 22, 2010, Geomatrix sent its Additional Site Assessment and Extended Soil Vapor Extraction Pilot Study Report to the DTSC. (Final Pretrial Conference Order at ¶ 60; Ex. 442.) The report summarized the data collection efforts of the extended pilot study. (4/20/10 Trial Tr. (Simpson, T.) at 171-73; Ex. 442.) It demonstrated that soil vapor extraction was a feasible remedy for the Property. (4/20/10 Trial Tr. (Simpson, T.) at 172.) 87. The work performed by Geomatrix at the Property was conducted at the direction of the Regional Board and the DTSC. (Id. at 173.) The DTSC relied on reports conducted prior to the involvement of these public agencies to characterize the site contamination. (4/20/10 Trial Tr. (Krug, R.) at 120.) 88. The work performed on the Property has been compliant with the national contingency plan. (Id. at 120-21; 4/20/10 Trial Tr. (Simpson, T.) at 174.) 89. The parties stipulated that “the DTSC will, for certain, require the following cleanup actions: (1) additional site investigation, including installation of additional groundwater wells; (2) remediation. The soil vapor extraction system is a presumptive remedy; (3) continued quarterly groundwater monitoring to evaluate the effectiveness of the soil vapor extraction remedy.” (Final Pretrial Conference Order at ¶ 63.) F. RESPONSE COSTS INCURRED TO DATE 90. United Alloys paid Green Environmental the amount of $4,075 for work performed in connection with the Phase I site assessment of the Property. (4/20/10 Trial Tr. (Donn, J.) at 40-41; Exs. 408, 426.) 91. United Alloys paid WEECO the amount of $24,100 for work performed in connection with the Phase II investigation at the Property. (4/20/10 Trial Tr. (Donn, R.) at 42; Exs. 426-29.) 92. United Alloys paid Geomatrix the amount of $232,981.09 for work conducted at the Property through 2002. (4/20/10 Trial Tr. (Donn, R.) at 43; Ex. 430; United Alloys, Inc. Trial Br. at 11-15 [Doc. No. 271].) 93. In 2002 and thereafter, United Alloys’ insurers, Fireman’s Fund Insurance Company and Chubb Insurance Company, assumed responsibility for payment for Geomatrix’s services. (4/20/10 Trial Tr. (Donn, R.) at 43-44; Ex. 430.) United Alloys’ insurers paid $1,283,722.81 directly to Geomatrix for its services. (4/20/10 Trial Tr. (Donn, R.) at 43-44; Ex. 430; United Alloys, Inc. Trial Br. at 14-15 [Doc. No. 271].) 94. United Alloys paid the Regional Board the amount of $6,376.34 for its regulatory oversight of the Property for the period from 2000 to 2007. (4/20/10 Trial Tr. (Donn, R.) at 45-47; Ex. 432.) Due to a dispute with the Regional Board, certain outstanding invoices have not been paid. (4/20/10 Trial Tr. (Donn, R.) at 47.) United Alloys owes the Regional Board an additional amount of $21,414.58 for its regulatory oversight of the Property. (Ex. 432.) 95. United Alloys paid a fifty percent (50%) deposit, which amounted to $25,695.00, to the DTSC for its regulatory oversight of the Property. (4/20/10 Trial Tr. (Donn, R.) at 48-49; Ex. 671.) 96. The total amount of the invoices from the DTSC to United Alloys is $54,631.79. (Ex. 433.) United Alloys has at least one outstanding invoice owed to the DTSC. (4/20/10 Trial Tr. (Donn, R.) at 49.) The DTSC continues to incur oversight costs in connection with this matter. (4/20/10 Trial Tr. (Krug, R.) at 117.) 97. United Alloys paid CAPS the amount of $102,063.82 for its consultant work. (4/20/10 Trial Tr. (Donn, R.) at 50-51; Ex. 431.) G. SUBSURFACE LITHOLOGY OF THE PROPERTY 98. There is a 35- to 40-foot lens — the fine grain layer — impeding the vertical migration of contaminants. (4/20/10 Trial Tr. (Krug, R.) at 137-38; 4/23/10 Trial Tr. (Simpson, T.) at 133; Exs. 205, 212, 326.) The thickness of the fine grain layer varies across the Property. (4/22/10 Trial Tr. (Lindmark, U.) at 32; Exs. 212, 326.) In the northern portion of the Property, the thickness of the fine grain layer is approximately twenty (20) feet whereas in the southern portion of the Property, it is less than ten (10) feet. (4/22/10 Trial Tr. (Lindmark, U.) at 32; Exs. 212, 326.) 99. The soils above this fine grain layer generally consist of sandy soils. (4/22/10 Trial Tr. (Lindmark, U.) at 33.) Contaminants generally travel vertically, not laterally, through the sandy soils. (Id.; 4/22/10 Trial Tr. (Wells, J.) at 178.) Because the fine grain layer has a much greater density, it prevents contaminants from continuing to migrate vertically in the same way that such contaminants migrate through sandy soils. (4/22/10 Trial Tr. (Lindmark, U.) at 65; 4/22/10 Trial Tr. (Wells, J.) at 178; 6/2/10 Trial Tr. (Wood, T.) at 74.) 100. Therefore, the chlorinated solvents travel vertically until they reach the fine grain layer. (4/22/10 Trial Tr. (Lindmark, U.) at 33; 4/22/10 Trial Tr. (Wells, J.) at 178; 4/23/10 Trial Tr. (Wells, J.) at 48.) At that point, the fine grain layer acts as a sponge and absorbs the contaminants. (4/23/10 Trial Tr. (Wells, J.) at 50.) In the fíne grain layer, contaminants disperse in all directions, particularly in the direction of the fine grain layer slope, if one exists. (4/22/10 Trial Tr. (Lindmark, U.) at 33, 65; 4/23/10 Trial Tr. (Wells, J.) at 48-49; 6/2/10 Trial Tr. (Wood, T.) at 74.) Over time, the contaminants can extend through the fine grain layer which causes a very high concentration of the contaminants in the fine grain layer. (4/22/10 Trial Tr. (Lindmark, U.) at 65.) The fine grain layer, however, may not retard all of the contaminants from continuing to migrate vertically into deeper soil. (Id.) The migration of contaminants is an extremely slow process that takes a significant amount of time to occur. (4/23/10 Trial Tr. (Wells, J.) at 54.) 101. The shallowest groundwater beneath the Property occurs at a depth of approximately one hundred forty (140) to one hundred forty-five (145) feet below ground surface. (Exs. 205, 207.) Groundwater generally flows from south to north below the Property. (Final Pretrial Conference Order at ¶ 49; 4/20/10 Trial Tr. (Simpson, T.) at 162; 4/22/10 Trial Tr. (Wells, J.) at 158, Ex. 207.) There is not a significant gradient; therefore, the groundwater is moving relatively slowly. (4/20/10 Trial Tr. (Simpson, T.) at 162.) H. CURRENT CONDITIONS AT THE PROPERTY 102. As part of the site investigation, the entire site, which is relatively small, has been peppered with boring locations. (4/21/101 Trial Tr. (Simpson, T.) at 52; Exs. 313-14.) Geomatrix has installed soil borings (“GMX” or “B”), vapor monitoring probes (“VP” or “vapor probes”), soil vapor extraction wells (“VEW” or “vapor extraction wells”), and groundwater monitoring wells (“MW”) to determine the extent of the contamination at the Property. (Ex. 214.) 103. Soil, soil gas, and groundwater samples have been taken from these locations and analyzed by Geomatrix. (4/20/10 Trial Tr. (Simpson, T.) at 156, 160-61; 4/21/101 Trial Tr. (Simpson, T.) at 52; Exs. 203, 205.) 104. The chemicals of concern at the Property are mostly VOCs, specifically PCE and TCE, which have been detected in soil and groundwater. (4/20/10 Trial Tr. (Krug, R.) at 118-119, 141-42; 4/22/10 Trial Tr. (Lindmark, U.) at 86; Ex. 207.) It is possible that at least some portion of the increase in TCE concentration at the Property is attributable to the degradation of PCE to TCE. (4/22/10 Trial Tr. (Lindmark, U.) at 11.) 105. Geomatrix and the DTSC have investigated potential upgradient sources of contamination but no such sources have been identified as contributing to the contamination at the Property. (4/21/101 Trial Tr. (Simpson, T.) at 24, 31; 4/22/10 Trial Tr. (Lindmark, U.) at 138; 4/23/10 Trial Tr. (Simpson, T.) at 118; Exs. 507, 523, 558, 636, 641-42.) Geomatrix, which had limited funding and required authorization from United Alloys’ insurers to conduct its work, determined that it was more cost-effective to use the available funds to investigate site conditions and initiate a pilot study rather than divert resources to explore potential upgradient sources. (4/21/101 Trial Tr. (Simpson, T.) at 33-34.) 106. Nonetheless, the site has not yet been fully investigated or characterized. (4/20/10 Trial Tr. (Krug, R.) at 124.) The DTSC is focused on soil vapor extraction and has tabled the issue of groundwater investigation for future discussions. (Id. at 141; 4/21/101 Trial Tr. (Simpson, T.) at 40.) Additional groundwater monitoring wells are necessary to determine the extent to which groundwater is impacted. (4/20/10 Trial Tr. (Krug, R.) at 142.) Thus, dilution is currently the only form of contaminant level reduction with respect to groundwater. (4/21/101 Trial Tr. (Simpson, T.) at 43.) 107. Although the entire Property is contaminated, (id. at 26; 4/20/10 Trial Tr. (Krug, R.) at 118), the highest concentration of soil and soil vapor contamination is in the southwestern corner of the Property, the location where the ASTs and USTs were located. (4/22/10 Trial Tr. (Lindmark, U.) at 88; 4/23/10 Trial Tr. (Wells, J.) at 47-48; 4/23/10 Trial Tr. (Simpson, T.) at 137; Exs. 319-21.) 108. The highest detection of PCE at the Property is at VP-05, at fifteen (15) feet, which is directly in the AST area and near where Flask blended and containerized chlorinated solvents. (4/23/10 Trial Tr. (Wells, J.) at 46-47; Ex. 214.) There are also high detections of PCE in the fíne grain layer at VEW-16, VEW-17, and VEW-18. (4/23/10 Trial Tr. (Wells, J.) at 47; Exs. 214, 319.) 109. In addition, substantial chlorinated solvent contamination occurred in the top fifteen (15) feet of soil and in the fine grain layer in and around the former UST area. (Exs. 214, 317, 319.) For instance, GMX-5, which is located slightly north of the AST area, evidenced the highest concentration of PCE in the fíne grain layer but also a substantial level of PCE at six and one-half (6.5) feet. (4/22/10 Trial Tr. (Wells, J.) at 165; 4/23/10 Trial Tr. (Wells, J.) at 40-41; Exs. 213-14, 317, 326.) Sampling at GMX-5 also revealed PCE and TCE as deep as one hundred fifty and one-half (150.5) feet. (4/22/10 Trial Tr. (Lindmark, U.) at 98-99; Exs. 213-14, 317.) Significant concentrations of PCE and TCE occurred in the fine grain layer at GMX-2, GMX-4, VP-04, VEW-11, VEW-12, VEW-14, and VEW-15. (Exs. 213-14, 317, 319.) 110. Similarly, there are elevated levels of PCE in the top fifteen (15) feet at VP-03, VP-04, VEW-11, VEW-12, VEW-14, VEW-15, and VEW-18. (4/22/10 Trial Tr. (Lindmark, U.) at 37-40; Exs. 214, 319.) TCE is also present in high levels in the shallow soil vapor at VEW-14 and VEW-15. (Exs. 214, 319.) This data is indicative of a proximal release, not an AST release. (6/2/10 Trial Tr. (Wood, T.) at 79-81.) In other words, the shallow contamination in and around the former UST area at VEW-11, VEW-14, VEW-15, and VEW-18 was not caused by a spill in the AST area during Flask’s tenancy. (Id.) 111. The 2008-09 data revealed higher contamination in and around the former UST area than the 1993-94 data and 1997 data. (4/22/10 Trial Tr. (Lindmark, U.) at 42-44; 4/22/10 Trial Tr. (Wells, J.) at 158-62; Exs. 320, 321, 323-25.) 112. In 1993-94, the conventional sampling method, which was used by WEE-CO at the Property, was to collect a sample in a brass tube, transfer it to a Ziploc bag, store it in an icebox, and send it to a laboratory. (4/22/10 Trial Tr. (Lindmark, U.) at 143; Ex. 407.) This procedure caused greater volatilization of samples, which, in turn, resulted in lower concentrations of volatiles reported in samples and more variability among samples. (4/22/10 Trial Tr. (Lindmark, U.) at 143-44.) In addition, in the 1993 soil samples, WEECO took and analyzed only one (1) or two (2) depth discrete samples from each boring location. (4/23/10 Trial Tr. (Wells, J.) at 37-38; Ex. 316.) 113. In 2008-09, samples were collected using vapor extraction wells and vapor probes. (4/22/10 Trial Tr. (Lind-mark, U.) at 144.) The vapor extraction wells have screens of approximately thirty (30) feet whereas the vapor probes have screens of roughly three (3) to nine (9) inches. (Id. at 144-45.) The vapor probes consequently provide more depth discrete data. (Id. at 146; 4/22/10 Trial Tr. (Wells, J.) at 192.) 114. The vapor extraction wells, unlike earlier borings, intersect with the fine grain layer. (4/23/10 Trial Tr. (Simpson, T.) at 135-36.) Thus, some of the increased contamination can be attributed to more recent sampling of contaminants in the fine grain layer. (Id. at 136.) 115. The increased contamination levels in soil samples, however, cannot solely be attributed to improvements in sampling techniques, particularly due to a similar pattern of increased contamination in soil gas sampling. (4/22/10 Trial Tr. (Wells, J.) at 160-62; 6/2/10 Trial Tr. (Lindmark, U.) at 156-57; Ex. 320.) 116. The 1993-94 data also showed the presence of TCE in the soil beneath the degreasing room area. (4/22/10 Trial Tr. (Lindmark, U.) at 45; Ex. 320.) The contamination in the shallow soil at B-2 did not come from a release in the AST area. (6/2/10 Trial Tr. (Wood, T.) at 59; Ex. 316.) 117. Notwithstanding, samples taken from 1994 to 1997 show decreases in contamination outside of the building. (Exs. 213-14.) For example, GMX-3, a soil boring located outside of the building to the west of the degreaser area, showed a lower concentration of PCE. (4/23/10 Trial Tr. (Wells, J.) at 40, Exs. 213-14,. 317.) 118. There is also a high concentration of PCE in a discrete portion of the northwestern area of the Property. (Exs. 214, 320.) MW-5, which is located approximately fifteen (15) to thirty (30) feet from the northern clarifier, reflected a considerable concentration of PCE and TCE in the fine grain layer. (4/22/10 Trial Tr. (Lindmark, U.) at 67-68, 135; 4/23/10 Trial Tr. (Wells, J.) at 39-40; Exs. 213-14, 317, 326.) MW-5 is located more than 200 feet from the northern edge of the former AST area. (4/22/10 Trial Tr. (Lindmark, U.) at 28; 4/22/10 Trial Tr. (Wells, J.) at 175; Exs. 213-14, 313.) The contamination at MW-5 did not come from a release in the former AST area. (4/22/10 Trial Tr. (Lindmark, U.) at 28-29; 4/22/10 Trial Tr. (Wells, J.) at 174-77; 6/2/10 Trial Tr. (Wood, T.) at 85-86; Exs. 213-14, 313.) 119. VP-01 and VEW-01, which are also located near the northern clarifier, likewise reflected an increased level of PCE and TCE in or slightly above the fine grain layer. (4/23/10 Trial Tr. (Wells, J.) at 42-43; Exs. 214, 318.) This contamination at VP-01 and VEW-01 did not come from a release in the AST area. (6/2/10 Trial Tr. (Wood, T.) at 84.) 120. There are thirteen samples throughout the Property containing levels of PCE higher than 500 ug/kg at a depth of 1.5 feet: VP-02, VP-03, VP-04, VEW-09, VEW-11, VEW-12, VEW-13, VEW-14, VEW-15, VEW-16, VEW-18, VEW-19, and VEW-20. (Exs. 214, 318-19.) 121. In sum, the data indicates that there are at least two sources of contamination. (Ex. 209.) The contamination in the shallow soil is from a different source than the contamination in the deeper soil. 122. Flask admits that, based on the chemical and soil gas VOC concentrations, soil remediation is necessary. (Pretrial Conference Order at ¶ 63.) Flask also concedes that groundwater monitoring wells installed by Geomatrix are necessary. (4/22/10 Trial Tr. (Lind-mark, U.) at 97.) CONCLUSIONS OP LAW A. FLASK IS LIABLE FOR CONTAMINATION AT THE PROPERTY PURSUANT TO 42 U.S.C. § 9607 123. In 1980, Congress enacted CERCLA “in response to the serious environmental and health risks posed by industrial pollution.” Burlington N. & Santa Fe Ry. Co. v. United States, 556 U.S. 599, 129 S.Ct. 1870, 1874, 173 L.Ed.2d 812 (2009). It “was designed to promote the “ ‘timely cleanup of hazardous waste sites’ ” and to ensure that the costs of such cleanup efforts were borne by those responsible for the contamination.” Id. (quoting Consol. Edison Co. of N.Y., Inc. v. UGI Utils., Inc., 423 F.3d 90, 94 (2d Cir.2005)). 124. Under Section 107(a) of CERCLA, a private party may recover cleanup costs from those persons who contributed to the release of hazardous waste at the site. Carson Harbor Vill., Ltd. v. County of Los Angeles, 433 F.3d 1260, 1265 (9th Cir.2006) (“Carson Harbor Vill. II”). 125. To establish a prima facie case, a plaintiff must demonstrate that: (1) the property at issue is a “facility”; (2) a “release” or “threatened release” of a “hazardous substance” from the facility has occurred; (3) the “release” or “threatened release” caused the plaintiff to incur response costs that were “necessary” and “consistent with the national contingency plan”; and (4) the defendant is among the potentially responsible parties (“PRP(s)”) subject to liability under Section 9607(a). Carson Harbor Vill. II, 433 F.3d at 1265. 126. A PRP may be compelled to clean up a contaminated area or reimburse a third party for its past and future response costs and/or damages. See Burlington, 129 S.Ct. at 1878. 127. The Court previously granted summary judgment in favor of United Alloys on the following issues: (1) Flask is a PRP as an operator of the facility during Flask’s tenancy, (Order Granting in Part and Denying in Part Plaintiff United Alloys, Inc.’s Motion for Partial Summary Judgment Against Defendant Flask Chemical Corp. at 16 [Doc. No. 254]); (2) the Property was a facility during Flask’s tenancy, (id.); and (3) a release of hazardous substances occurred at the facility during Flask’s tenancy. (Id.) 128. The only remaining issue with respect to United Alloys’ Section 107 claim is whether the response costs are necessary and consistent with the national contingency plan (“NCP”). The NCP “specifies procedures for preparing and responding to contaminations and was promulgated by the Environmental Protection Agency (EPA) pursuant to CERCLA § 105.” City of Colton v. Am. Promotional Events, Inc.-West, 614 F.3d 998, 1003 (9th Cir.2010) (quoting Cooper Indus., Inc. v. Aviall Servs., Inc., 543 U.S. 157, 161 n. 2, 125 S.Ct. 577, 160 L.Ed.2d 548 (2004)). 129. The NCP “is ‘designed to make the party seeking response costs choose a cost-effective course of action to protect public health and the environment.’ ” Carson Harbor Vill. II, 433 F.3d at 1265 (quoting Washington State Dep’t of Transp. v. Washington Natural Gas Co., 59 F.3d 793, 802 (9th Cir.1995)). The term “response” means removal and remedial actions, including enforcement activities related to such actions. 42 U.S.C. § 9601(25). The terms “remove” or “removal,” in turn, include actions that are necessary to monitor, assess, and evaluate the release of hazardous substances. 42 U.S.C. § 9601(23). 130. A private party’s response action is considered “necessary” when “an actual and real threat to human health or the environment exist before initiating a response action.” Carson Harbor Vill., Ltd. v. Unocal Corp., 270 F.3d 863, 871 (9th Cir.2001) (en banc). It is “considered ‘consistent with the NCP’ if the action, when evaluated as a whole, is in substantial compliance with the applicable requirements of [40 C.F.R. § 300.700(c)(5)-(6) ] and results in a CERCLA-quality clean up.” 40 C.F.R. § 300.700(c)(3)(i) (emphasis added). Immaterial or insubstantial deviations from the NCP do not preclude recovery in a cost recovery action. 40 C.F.R. § 300.700(c)(4). 131. The private party seeking reimbursement for response costs bears the burden of demonstrating that its actions are consistent with the NCP. Carson Harbor Vill. II, 433 F.3d at 1265; see also AmeriPride Servs. v. Valley Indus. Serv., 2011 WL 1833179, *11, 2011 U.S. Dist. LEXIS 55634, *40 (E.D.Cal. May 12, 2011) (Karlton, J.). 132. United Alloys presented evidence of invoices enumerating costs for, inter alia, conducting site investigations, installing and monitoring soil borings and wells, extracting soil, soil vapor, and groundwater samples, and paying consultant fees. (Final Pretrial Conference Order at ¶¶ 36, 39, 42; 4/20/10 Trial Tr. (Donn, R.) at 40-42, 45-51; Exs. 407, 426.) To date, United Alloys has expended $449,923.04 in connection with such work. (4/20/10 Trial Tr. (Donn, R.) at 40-42, 45-51; Exs. 408, 426, 430-33, 671.) United Alloys’ liability insurers have spent $1,283,722.81 for Geomatrix’s services. (4/20/10 Trial Tr. (Donn, R.) at 43-44; Ex. 430; United Alloys, Inc. Trial Br. at 14-15 [Doc. No. 271].) United Alloys owes the Regional Board an additional amount of $21,414.58. (Ex. 432.) 133. These costs are necessary because PCE and TCE, which are listed as hazardous substances under CERCLA, pose an actual and real threat to public health and the environment. See 42 U.S.C. § 9601(14); see also 40 C.F.R. § 302.4. There is no dispute that PCE and TCE are present in the soil at multiple locations throughout the Property. (See Pretrial Conference Order at ¶¶ 37, 63.) Flask concedes that the chemical and soil gas VOC concentrations require remediation with respect to soil. (Id. at ¶ 63.) The parties also stipulated that DTSC will require: (1) additional site investigation; (2) remediation; and (3) continued quarterly groundwater monitoring to evaluate the effectiveness of the soil vapor extraction remedy. (6/3/10 Trial Tr. at 49-50.) 134. These costs are likewise consistent with the NCP because they are essential to assessing, evaluating, monitoring, and identifying a remedy for the release of PCE and TCE at the Property- 135. Simpson, who has served as the project manager for Geomatrix, and King, who has served as the project manager for DTSC, both testified that the work performed to date at the Property has complied with the NCP. (4/20/10 Trial Tr. (Krug, R.) at 120-21; 4/20/10 Trial Tr. (Simpson, T.) at 174.) 136. Flask’s contention at trial was that Geomatrix improperly focused on the existence of groundwater contamination at the Property to trigger coverage by Flask’s insurance carriers while ignoring potential sources caused by United Alloys. It was also Flask’s assertion that Geomatrix’s work was not cost-effective due to the length of the site investigation and the failure to implement a remedy. Also, Flask contended that Geomatrix purposefully excluded data collected by WEECO in Geomatrix’s reports to the Regional Board and/or the DTSC. 137. The record, however, demonstrates that the costs incurred by United Alloys are NCP-compliant and Flask’s contentions are not supported by the evidence. Geomatrix has collected and analyzed samples from locations throughout the Property, including areas in which United Alloys used PCE, and concluded that the entire Property is contaminated. (4/20/10 Trial Tr. (Simpson, T.) at 156, 160-61; 4/21/101 Trial Tr. (Simpson, T.) at 26, 52; Ex. 214.) Geomatrix and the DTSC have also investigated potential upgradient sources of contamination and concluded that such sources are not contributing to the contamination at the Property. (4/20/10 Trial Tr. (Simpson, T.) at 159-64; 4/21/101 Trial Tr. (Simpson, T.) at 24, 31; 4/22/10 Trial Tr. (Lindmark, U.) at 138; 4/23/10 Trial Tr. (Simpson, T.) at 118; Exs. 507, 523, 558, 636, 641-42.) 138. Indeed, there has been substantial participation and oversight from public agencies during the site investigation of the Property, which further supports the Court’s conclusion that the investigation methods and activities are legitimate. Specifically, a public agency — either the Regional Board or the DTSC — has been involved in the regulatory oversight of the Property since 2000. (Final Pretrial Conference Order at ¶¶ 48, 56; 4/20/10 Trial Tr. (Donn, R.) at 44-45, 47-48; 4/20/10 Trial Tr. (Krug, R.) at 114; Ex. 432.) The Regional Board and the DTSC have also repeatedly required Geomatrix to conduct additional investigation activities and compile supplementary data and Geomatrix has consistently complied with such requests. (Final Pretrial Conference Order at ¶¶ 48, OS-OS, 57-60; 4/20/10 Trial Tr. (Simpson, T.) at 158-74; Exs. 203, 208, 210, 442, 455-56, 575.) Moreover, the VCA expressly requires that all work shall be performed consistent with the NCP. (Ex. 671.) 139. There is also no credible evidence that the work was not cost-effective, even with the delay. Rather, the record reflects that Geomatrix attempted to eliminate the expensive pump-and-treat system for groundwater by submitting a Conceptual Remedial Action Plan to the Regional Board. (4/20/10 Trial Tr. (Simpson, T.) at 164-65.) With respect to groundwater contamination, both the Regional Board and the DTSC have recognized that, at the very least, further groundwater monitoring is necessary. (4/20/10 Trial Tr. (Krug, R.) at 119, 141-42; 4/20/10 Trial Tr. (Simpson, T.) at 188-89; 4/21/101 Trial Tr. (Simpson, T.) at 43; 6/3/10 Trial Tr. at 49-50.) 140. Finally, the evidence establishes that Geomatrix decided not to include WEECO data because Geomatrix concluded that WEECO conducted a preliminary, not a comprehensive, investigation of the Property. (4/21/101 Trial Tr. (Simpson, T.) at 25.) In particular, WEECO installed borings and collected only one (1) or two (2) samples for analysis. (4/21/101 Trial Tr. (Simpson, T.) at 25.) When the data was requested by the Regional Board and/or the DTSC, Geomatrix provided it. (Id. at 25-26.) The Court concludes that there is no basis for finding that Geomatrix’s efforts have not been cost-effective or legitimate. 141. Because CERCLA expressly permits the recovery of response costs, United Alloys does not need to show that